Businesses in Nigeria generally face lots of challenges due to poor infrastructure such as roads, epileptic electricity supply and logistics. They also bear the burden of heavy taxes by various tiers of government, which pushes up their cost of production. Experts, however, say that how businesses and organisations weather the storm depends largely on well-thought out strategies they apply to their operations. AMBROSE NNAJI writes that applying the various tips proffered by development experts could be the tonic to keep organisations and businesses afloat.
WHAT the business operating environment is hostile is an understatement. Operators have to contend with a myriad of challenges such as double taxation, dearth of infrastructure and many more.
The Principal Consultant of Lonadek, an engineering technology and solutions centre, Dr. Ibilola Amao, said the business climate is very harsh.
This, according to her, is caused by poor infrastructure such as roads, inadequate electricity supply and poor logistics, among others. The situation, she said, makes it extremely difficult for businesses and organisations to survive in the country.
To mitigate the threat the nation’s harsh business environment poses on businesses and organisations, the Deputy Vice-Chancellor, Institut Superieur Fopase University, Republic of Benin, Prof. Nwose Ifeanyi Chukuma, said every organisation must have sound administrators/managers to guide them through.
Chukuma spoke on the sideline of the Chartered Institute of Administration (CIA) Third All Administrators’ National Conference in Lagos with the theme: Strategic administration of organisations: Times and challenges.
The institute is empowered by law to regulate the training and practice of administration throughout the federation. And for the institute to achieve its objective, there is the need for administrators to meet periodically.
The conference provided the platform for administrators to compare notes, share new ideas and knowledge, serve the nation better, and meet the yearnings of the people.
Speaking at the conference, Chukuma stated that for an administrator to excel under this framework there is need for adequate and sustained planning, as well as good thinking.
Outlining the qualities that will make administrators excel in challenging times, Chukuma said a manager must set the objectives of the organisation and take note of what the plans to achieve those objectives are.
“You must have a plan and work and perfect that plan. You must be able to know the outcome when compared with the objectives whether you are making progress or not,” Nwose, who spoke on the topic, Short, Medium and Long-Term strategies for economic growth in challenging times, said.
He stated that even if the times are challenging, when there are sound administrators at the helm of affairs, the job is as good as done.
The renowned scholar also said a manager must be a team player, mix freely with others; even be seen in the same canteen with others. As he said, an armchair manager cannot withstand challenging times.
“A good administrator must be a good listener to complaints and ideas of his team mates. Paying attention to complaints of members of staff will reassure them of the organisation’s concern about their welfare. This will in the long run, engender operational efficiency,” he added.
Continuing, Chukuma maintained that a committed administrator must be a good communicator; he must be able to put his life on the line and address critical situations by meeting aggrieved members of staff. According to him, challenges in many businesses and organisations get worsened by representatives who normally add salt to injuries.
He said: “An administrator should be bold in addressing issues, not abandoning the situation to representations in times of crisis. An administrator that is not humble and shuns pride to apologise if need be cannot stand challenging times.”
Chukuma also said a manager that is dedicated to duty should resume early to watch his members of staff clock in and close late, watch his staff members clock out.
Besides, he should be prepared to sacrifice his time and leisure. His subordinates and team mates should be able to reach him easily, even as he added that most issues that bring about margin of safety require prompt and immediate attention.
Apart from the need for an administrator or manager to acquire relevant training, Chukuma said there is need for businesses to fix deadlines as a strategy to achieving set objectives. “If you don’t fix deadlines, things will not work. Deadline must be fixed; your direction is uncertain if there are no deadlines,” he said.
He also stressed the need to reward excellence and early achievement of set objectives. This, he said, will encourage output and increase productivity. Also, there must be incentives for members of staff to encourage them to be committed to achieving set objectives.
Besides, training and education of members of staff, he said, is necessary. He said their level of expertise notwithstanding, there is still need for training and re-training.
Also, identifying a challenge in the community where the business is located and contributing to the development of the area of operation attracts more customers and makes the organisation’s product a household name.
The university don also said without a high sense of discipline, targets and goals can hardly be accomplished. He said effective internal control mechanism is needed for organisational survival. To him, elimination of idle time, spoilages, wastages and shrinkages increases organisational profits.
He also said identifying and increasing operations in areas where a business has comparative advantage is a good strategy, adding that Research and Development (R&D) must be prioritised.
Also, the Head, Coverage, Rand Merchant Bank Nigeria, Ngover Ihyembe–Nwankwo, said 2019 was a tough year for most businesses and organisations operating in Nigeria.
She said, for instance, that people had less disposable income; they had less money in their pockets and could not spend much. She, therefore, recommends cost optimisation and consumer research to help businesses and organisations overcome some of the challenges.
Ihyembe–Nwankwo, who is also Chairperson, Women in Management Business (WIMBIZ), said the key to success and survival for organisations and business owners is understanding their market, keeping their cost very tight, and reaching their end buyers.
She, however, advised business owners to put their messages out for customers to know what products or services they are offering so that people will patronise them.
Ihyembe–Nwankwo also said with cost optimisation, the strategy is keeping cost down, as businesses cannot afford to have products or services that are not competitive.
“If you notice, in the last years, companies have changed packaging, you now have smaller packaging. This is all looking at how to bring the cost of their goods down for people who have less money in their pockets,” she said.
Ihyembe–Nwankwo also said market intelligence is critical. “Competition is very keen. But if you understand your market, understand what they (customers) want, and you understand what drives them, then you can make sure that your product gets to them and they buy it,” she said.
The Rand Merchant Bank Head also listed sectors, such as agriculture, Information Communications Technology (ICT) and media as growth sectors, noting that there is need for the country and for business owners to understand what’s driving these sectors’ growth and key into such sectors.
She advised that it is important to have deliberate strategies to drive the growth of Micro, Small and Medium Enterprises (MSMEs) so that they can explore and exploit opportunities in the afore-mentioned sectors.
She said in doing this, there was the need to understand how women entrepreneurs can be helped to grow and contribute to creating wealth and growth on sustainable and inclusive basis.
Ihyembe–Nwankwo said there is a programme called ‘Women on Board,’ where WIMBIZ teaches and trains women to be effective members of board.
According to her, the programme will also make it easier for women entrepreneurs to get selected to be on the board of big companies even from small companies. It will also ensure that when they get on the board they are effective members of the team.
The President, Nigerian-American Chamber of Commerce (NACC), Toyin Akomolafe, also believes that empowering MSMEs, especially poor, rural women entrepreneurs is fundamental to driving growth and development.
According to him, evidence has shown that women perform enormous tasks in their families and the society at large, which can be replicated in the world of business.
Akomolafe pointed out that women have not been fully involved in decision making to enable them contribute their own quota in national development.
While noting that supporting women empowerment is paramount to the growth and development of the nation, he said NACC remains committed to empowering women entrepreneurs.
Speaking on the theme: Contemporary Leadership & Administration Skills & Strategies as Tools for Achieving Organisational Goals & Objectives, the Founder, Biodun Adedipe Associates Limited, a management and financial consultancy, Biodun Adedipe, said making strategy in everybody’s everyday job is key.
According to him, every member of the team must be able to answer with clarity the question: “What’s my role in executing our organisation’s strategy?”
Adedipe said to deliver organisational goals and objectives, the board, management and staff of the organisation have to be organised in a manner that aligns the company’s strategy with expected outcomes.
He said performance management requires that the organisation or business defines the objectives for each employee, compare their performance with the objectives, and direct their activities accordingly. This, he said, requires that objectives must be specific, measurable, achievable, realistic, and time-bound.
Adedipe said there is need to monitor and measure progress. “If it (progress) gets measured, it will get done. Demand for reports that are relevant, timely and of right quantity and quality,” he added.
On his part, the President/Chairman of council, CIA, Samson Olopade, said a lot of the ills facing Nigeria are manifestations of maladministration over the years in all spheres of national life.
He said the administrators’conference was aimed at bringing administrators from all walks of life to discuss the various challenges bordering on administration, as well as proffer solutions accordingly.
He said: “We say that administration is the mother of all professions. In other words, no area of human endeavour can function effectively or achieve its aims and objectives without effective and efficient administration.”
The Lagos State Commissioner of the Environment, Hon Jimi Bello, could not agree with Olopade on the critical role of administrators in turning around the fortunes of businesses and organisations and by extension, the nation.
Bello: “If the country runs well, and admiration runs well, it then means that we have good administrators. So, all of us must be conscious of the need to have good administrators. No country can proceed or succeed with bad administrators. Administration is life.”
This must be why Olopade said as a body burdened with the responsibility of regulating the practice of administration in Nigeria, the institute will only be fulfilling its statutory purpose if it salvages the nation from the current challenges threatening its unity and continued existence.
“We already know that Nigeria is currently faced with a lot of challenges, which have taken a huge toll on the nation’s economy and by extension, the quality of life of its citizens,” he said, urging the institute to be firm and determined to make Nigeria realise her potential and join the league of developed nations.
The CIA chief said since its establishment, the institute has contributed to human capital development by qualifying professionals in the field of administration who today occupy strategic positions in public and private sectors of the economy.
He said this was done through the institute’s various programmes, which include the Continuing Membership Education and Training (COMET) workshops, symposia, seminars, public lectures, CEOs/Directors and consultants’ forum and several management development training programmes.
The Acting Executive Chairman, Economic and Financial Crimes Commission (EFCC), Ibrahim Magu, advised Ministries, Departments and Agencies (MDAs) to employ evidence based measures of administration to ensure wise usage of scarce resources at their disposal.
Magu, who spoke on the theme, Strategic Change Administration and Innovation to Curb Corruption in Nigeria, said Nigeria’s progress is built on the ability to identify and plug leakages in the economy and adapt to the ever-changing world.
He said the process of change is better managed by a transformational leader who, according to him, is emotionally intelligent and can identify with his/her subordinates.
“Transformational leaders are able to conceptualise a desired future for the organisation and inspire their subordinates to strive towards achieving set vision,” the EFCC boss said.
