Category: Management

V. K. Rajah: The ‘reluctant’ A-G and his ethos of fairness

Mr V. K. Rajah, who retired as Attorney-General last Saturday, hailed the work of AGC staff who work long hours in the belief of “serving a wider cause”. An AGC initiative for lawyers to work with abused foreign workers was also introduced under his watch.

Straits Times, 18 January 2017

Retired Attorney-General reviewed AGC sentencing positions to avoid ‘disproportionate’ punishments

Before he became the Attorney-General in 2014, Mr V. K. Rajah twice declined the offer in 2007 and 2013.

“I was a reluctant A-G, but once I decided to be A-G, I put my heart and soul into it,” he said in an interview with The Straits Times at his office last Friday. “I put in 110 per cent, and as long as I held office, I wanted to discharge my responsibilities to the best of my ability.”

In a wide-ranging interview, Mr Rajah, who left the post last Saturday, said one of the changes he implemented soon after taking the job was a reporting mechanism to review the prosecution’s sentencing positions. If the position was excessive or disproportionate, the Attorney-General’s Chambers (AGC) would inform the defence counsel to go ahead and appeal, and prosecution would not object.

Mr Rajah, 60, said prior to this, prosecutors reported to the senior leadership matters that might attract media or public attention.

“I was more interested in (other) matters and our sentencing position that would affect the larger swathe of the population, from shoplifting to property, offences of any sort… and I wanted us to review our sentencing position on every possible area of criminal activity,” he said.

V. K. Rajah on two cases of significance
  • WHY AGC DID NOT PUSH FOR A HEAVIER SENTENCE FOR DAD WHO KILLED SON Banker Philippe Marcel Guy Graffart, then 42, had killed his five-year-old son last year amid a bitter custody battle.The charge was reduced from murder to culpable homicide as the Belgian national was assessed to be suffering from a major depressive disorder.

    His estranged French wife had engaged lawyers to press for a higher sentence.

    The Attorney-General’s Chambers (AGC), said Mr Rajah, would use the full force of law to prosecute cases that were cold-blooded and premeditated.

    “Where homicide takes place as a result of mental issues, it’s unpremeditated, where there is a momentary loss of control, we appraise the facts differently,” he said.

    He also observed that the case arose out of a bigger divorce squabble.

    This is why family law should be practised in a more collaborative and amiable way, he said.

    Mr Rajah added: “Unfortunately after reading the file – and I went through it very thoroughly – I felt that the lawyers advising the couple added fuel to the fire.”

    WHY PROSECUTION APPEALED TO REDUCE CYCLIST’S SENTENCE 

    Mr Rajah said the public might not be aware but the AGC has informed counsel to appeal when a sentence is excessive or disproportionate after reviewing the case.

    The 2015 case involving Mr Lim Choon Teck, then 35, was different as he did not have a lawyer. Mr Lim had received a jail sentence of eight weeks for knocking down an elderly pedestrian while cycling on a pavement. After a review, Deputy Public Prosecutor Prem Raj Prabakaran appealed to have the sentence reduced, arguing that the prosecution believed the original sentence was disproportionate to his culpability and the fact that he had pleaded guilty at the first reasonable opportunity.

    “If (Mr Lim) appealed, there was no certainty that the High Court judge might agree with him… So I directed my colleagues, and they were taken aback that we should appeal,” said Mr Rajah. Mr Lim’s jail term was cut to three weeks.

    Mr Rajah said: “I’m glad the case was publicised because it also assured the public that AGC was trying to do right rather than to punish people excessively.”

    Ng Huiwen

All cases that were concluded were reported in the form of a summary report and Mr Rajah would review these cases every evening.

In one unusual case, the AGC even appealed for a sentence to be reduced. The accused, a cyclist who had knocked down an elderly person, did not have his own lawyer.

Originally sentenced to eight weeks’ jail in 2015, his sentence was reduced to three weeks after the Deputy Public Prosecutor appealed to have it slashed.

Mr Rajah said his “obsessiveness for looking at things granularly” boiled down to a need to exercise the power of the prosecution carefully. Not all were on board at first with the decisions he made, including the move to appeal to have the cyclist’s sentence reduced.

Some colleagues had told him the decision would not have been possible in the AGC a decade ago, because “that’s not part of our culture”.

“But having said that, I think all of them were immediately on the same side because they realised and appreciated that this accorded with their role as ministers of justice.

“My operating ethos in every … office that I held is to ensure fairness. And fairness includes, apart from due process, proportionality. It’s in no one’s interest for individuals to be punished harshly,” he said.

Another initiative launched in his time involved lawyers in the AGC who volunteered to work with abused foreign workers. They halved the time it took to resolve cases that otherwise would require the foreign workers to stay for months or even years in Singapore to resolve their situation in court.

Mr Rajah hailed the work of AGC staff. “Many officers in the AGC and in the public service work anonymously as they should and get very little credit.

“They put in long, long hours of work over weekends, over holidays, and they do this not because they are looking for recognition, but they do this because they believe it’s the right thing and they are serving a wider cause.”

Mr Rajah spent 20 years in the private sector, becoming managing partner of law firm Rajah & Tann. In 1997, he was among the first lawyers to be appointed Senior Counsel.

V. K. RAJAH…

ON HIS ROLE AS ATTORNEY-GENERAL

I was a reluctant Attorney-General, but once I decided to be A-G, I put heart and soul into it. I put in 110 per cent and, as long as I held office, I wanted to discharge my responsibilities to the best of my ability. There is no point having a half-hearted A-G.

ON UPHOLDING FAIRNESS

My operating ethos in every appointment or office that I held is to ensure fairness. And fairness includes, apart from due process, proportionality. It’s in no one’s interest for individuals to be punished harshly.

ON SELECTING HIS TEAM

I pay particular attention to the way people interact and I am less than impressed by people who manage upwards and are all brown-nosed… I rather let the work speak for themselves.

He was then on the Bench for 10 years, first being appointed Supreme Court justice in 2004 and then Judge of Appeal three years later. It was then, in 2007, that he first declined the Attorney-General post.

“I enjoyed my work. Further, I was keen to continue working with Chief Justice Chan Sek Keong, whom I greatly respected. I regard him as the finest legal mind who has held public office in Singapore.”

Outside of his office, Mr Rajah reads extensively on social and political issues that affect Singapore and the wider world, as well as the sciences, such as psychology and neuroscience. “But since I became A-G, I’ve read only a handful of books,” he said, as he spent more time reading up on ongoing cases, even the minor ones, such as shoplifting.

Mr Rajah said: “I could leave my law firm when I wanted to and the fact that it continues to thrive 13 years after I left it means that I left it with good foundations and in good shape.” Former defence minister Howe Yoon Chong, in a conversation with Mr Rajah years ago, called the same quality a “walking capital” and the term stuck with him.

He entered the role as the “reluctant A-G”, but with his retirement, he said: “I made sure everything that I’ve done, every institution I’ve done, I have left it in better shape.”

An Evening with Jack Ma

Jack Ma or Ma Yun (Chinese: 马云; born September 10, 1964) is a Chinese entrepreneur and philanthropist. He is the founder and Executive Chairman of Alibaba Group, a family of highly successful Internet-based businesses.

He is the richest man in China and 18th richest man in the world with an estimated net worth of $29.7 billion, according to Bloomberg Billionaires Index.

Kwek Leng Beng

Haute Living, 27 June 2007

Kwek Leng Beng is pure business.

He is known for being highly driven, and addicted to making deals. This billionaire magnate and international property developer has amassed a plethora of hotels that span the globe from London to New York to China, but Kwek’s real passion is making an indelible mark on his beloved city of Singapore’s dynamic, changing skyline.

Kwek, whose UK-based Millennium & Copthorne (M&C) Hotels Plc group once owned half of the prestigious Plaza hotel in New York, is taking his hotel know-how and developing the St. Regis Residences, Singapore, among other projects. As Singapore’s first hotel and residence property, St. Regis Residences will introduce world-class designs to this island nation, and set the country’s new luxury real estate benchmark.

Executive chairman of City Developments Limited (CDL), Southeast Asia’s second largest property developer with 20,000 homes and 100 developments in Singapore, and Executive Chairman of Hong Leong Group of companies (parent co to CDL), Kwek’s acumen as a businessman and entrepreneur is renowned worldwide. Chairman Kwek, having just returned from his first holiday in years-he doesn’t enjoy taking time off, claiming, “I love business more.”-outlines his vision for Singapore during an interview with Haute Living, a vision that rings with an enthusiasm that is nothing less than contagious. “We want to be a biotech city, the medicinal hub, a city of amazing integrated resorts with downsized casinos,” he exclaims. He gets excited when talking about Singapore’s rapidly changing landscape, which will position the city as the leading dynamic business and tourism hub in Asia.

Once dubbed ‘Kwek Land Bank’ for his group’s sizable land bank in Singapore, Kwek is the country’s second-richest man, ranked 185th on Forbes 2006 list of the wealthiest people wordwide, and stands to gain as Singapore lures the jet-set with private banking services and new tax laws. He heads up an empire worth more than US$20 billion, with a worldwide staff of 30,000. One of the most influential players in Singapore’s luxury real estate boom that has led to a massive investment by developers in residential, hotel, office, and real estate markets, Kwek has his hands full with the St. Regis, Sentosa Cove, and Marina Bay projects, and as an advisor to the new US$3.6 billion integrated resort being built in Singapore by Las Vegas Sands corporation, set to open in 2009.

Kwek’s twin investment strategy- hotels with a residential component-has been taken to a new level with the St. Regis Hotel & Residences. Situated close to famed shopping district of Orchard Road, Kwek says that he has tried to create an iconic design and a concept of luxury lifestyle living at the St. Regis. Kwek himself loves luxury. He says, “I enjoy the finer things in life; I enjoy a good lifestyle and sense of design. I have the Maybach and the Bentley, Aston Martins and Ferraris.” His main residence is a mansion on one-acre in the prime district of Singapore, but he may choose to live at the St. Regis, where he has already purchased two sky villas. He describes these residences as exclusive, limited edition, and world class. “The arrival of a branded development where residents can enjoy the extended privileges and services from the adjoining six-star St. Regis hotel is a first in Singapore, and very exciting,” Kwek says.

The 20-story St. Regis Hotel, with 299 guestrooms, is planned to open in 2007, while the residences are expected to be ready in 2008. CDL will develop the residences along with Hong Leong Holdings Ltd and TID Pte Ltd (a joint venture company with Mitsui Fudosan, a leading real estate company in Japan), managed by Starwood Hotels & Resorts Worldwide, Inc. The estimated price-range for the 173 chic three- and four-bedroom residences start at around US$3.1 million, ranging in size from 1,500 to 4,000 square feet. Residents will have a private elevator lobby leading directly into their suites. Owners of the illustrious residences will also have access to the prestigious St. Regis Hotel’s Bespoke services, which includes personal butlers, chauffeurs, and flower arrangements. Those with truly deep pockets (a la Kwek) can opt for a sky villa, upper roof decks that will house bedrooms, a private pool, and steam room, coming in between 5,000 to 7,200 square feet each.

CDL has created some of the most extravagant show suites in Singapore for the property’s launch, designed to show off handpicked furnishings and fittings. Kwek says, “I have seen condos in New York and London, and without boasting, I can say that the standard of finishing at St. Regis is far better than I have seen elsewhere. We have the best imported marble, the best of everything… New York might have showrooms and a sales office where you can see the type of material that will be used, but in Singapore, potential buyers get to see the actual showroom apartments.

“At the end of the day, it has to be functional and beautiful.” Kwek brings this philosophy to several other high-end projects in the city, all in very strategic locations. He is building a sail-shaped skyscraper, called The Sail @ Marina Bay, part of the multi-billion dollar waterfront that will include the casino, a marina, and parks. Kwek explains, “I wanted a design of my own. I wanted a ship sailing out into the harbor in the form of a sculpture.” He created this twin-tower project with 1,111 luxury apartments, and managed to sell out within weeks of launch.

His iconic project, One Shenton, was launched in January 2007, and sold out in mere hours. Next to be launched? Quayside Isle, a marina-lifestyle project featuring waterfront homes on Sentosa Island, complete with W Hotel & Residences.

Singapore’s high-end market began taking off in late 2005, after steep declines from a property crash ten years ago. With a slew of new luxury projects, Kwek bullishly predicts a 10-20 percent rise in home prices next year. “Singapore is seeing a buying frenzy,” he says. “We are just at the start of an upward trend as the economy expands.” He also sees a lot more foreigners purchasing in Singapore. “In the old days, it would be about 20 percent, but with the St. Regis, foreigners are 65 percent. Because the population base in Singapore is small, the government has been promoting [the country] to foreign talent as a wonderful place to live and enjoy, and the people are listening.”

While other developers now race to launch new projects, Kwek understands that success depends on the design the developer can offer. “Buyers are very discerning,” he explains. “They understand if you want to sell your project at good prices, you have to do something more than what you have done in the past. A lot of that depends on creativity.”

Creativity is something that Kwek has brought to virtually every project he has gotten his hands on since he entered the real estate world at a very young age. Kwek is 53% owner of M&C, which currently owns 112 hotels and operates around a dozen. M&C’s origins come from the Hong Leong Group Singapore, an empire built from rubber plantations, cement, and property in the 1940′s and 1950′s by Kwek’s father, Kwek Hong Pong. Upon returning to Singapore from London with his law degree in 1963, young Kwek already had a knack of rising to the occasion. “At the age of 30, I took over a company called City Developments Limited, then a loss-making company,” recalled Kwek. Kwek was able to turn the business around, allowing the company-purchased for US$3 million in 1971-to become a favorite blue chip company in Singapore, with a capitalization of US$8.5 billion. “This deal was the start, combining my love for takeovers and property. It was very inspiring.”

He credits his father, whom he described as a tough master, for teaching him high standards. “When I couldn’t stand it anymore, I ran away to Malaysia, and he told someone to go and bring me back,” Kwek jokes. “His way of teaching was not actually explaining. He would ring at any time of the day and say ‘I want you to do this.’ Usually, I would not do it straight away, and within ten minutes, he would ring back and want to know how anything could be more important than what he asked me to do.”
Hiromichi Iwasa, President and Chief Executive Officer of Mitsui Fudosan, has known Kwek and his family for years. He says, “The late Mr. Kwek passed on his legacy of being a far-sighted entrepreneur. Kwek looks after joint venture partners.”

From his father, Kwek learned the importance of following up quickly, how to be innovative, and how to get the best customer. He also credits Leslie Grossman, a man from New York, as being a mentor, along with his father. “Both have passed away,” says Kwek, “but I learned a lot from them, especially that you must be passionate about what you do. If you are passionate, you can push the envelope farther, and be better than others.” He sets high standards, and has a competitive streak that extends to his morning bouts on the tennis courts. But regardless of where he is, his focus is always on work. He explains, “I work ten hours a day, but sometimes, I am so interested in something that I can’t sleep. My wife understands what makes the difference between an outstanding person and an average person, and is very understanding.” His wife, Cecilia is qualified as a barrister. She offers Kwek design tips inspired by her travels to art museums and concert halls, and her trips to art auctions in Paris and Venice. Her main advice is to not be carried away by minimalist or overly modern designs. “I always tell him to respect the local aesthetic, lifestyle, and Feng Shui principals.” She best sums up Kwek when asked what he really is like: “Kwek will not take no for an answer. He discusses five different topics in five minutes, and has extraordinary vision.”

These sentiments are echoed by others who have had the pleasure of doing business with this real estate mastermind. Dolly Lenz, Vice Chairman for Douglas Elliman says, “During my many trips to Asia over the past 20 years I have had the opportunity to meet practically all the movers and shakers shaping the Asian landscape. None has impressed me more with his vision and drive than Kwek. He is truly a man on a mission. He is simply the savviest and most brilliant developer in the Far East.”

Kwek’s talent for identifying trends, and following his gut feeling in business dealings has earned him tremendous respect from others in the industry. “The first time I met Kwek, I flew to Singapore with an offer to buy The Plaza [hotel in New York],” says Mike Naftali, President and CEO of Elad Properties. “My first impression was that he was a very savvy businessman-extremely smart, and knows the business upside down. But he was also a person you could talk to, and try to negotiate with in good faith.” Naftali’s partial condo-conversion plans as a way to boost the hotel fortunes at The Plaza sat well with Kwek, and the deal was completed before Naftali flew back to New York. Currently, the two are involved in other projects together, including a high-end residential condo development in Singapore. “I see he really cares about details; he personally looks into every detail. What I admire about him most is that he’s very focused, very smart, and he is tough with the numbers-Tough in a good way.”

Another friend and co-investor, Dr. K.S. Lo, deputy Chairman and Managing Director of Great Eagle Holdings Ltd in Hong Kong, backs that view. “Kwek does not have the air of a big tycoon, even though he was then already one of the richest men in Asia. He’s very, very intelligent, but he would pretend he doesn’t know anything, and would keep asking questions, and playing devil’s advocate… Kwek drives a hard bargain while negotiating a deal, but he’s reasonable and he’s trustworthy. He always keeps his word.”

For the future, Kwek is keeping an eye on China, where M&C has been awarded its first hotel management contract, with the Millennium Hongqiao Hotel in Shanghai in the prime business district. This move comes years after M&C first moved into China. “We were the first to have gone to Beijing and developed a gated community with single-family homes in 1994. It was very profitable, but then we stopped.” Just last year, he purchased a hotel in Beijing, to be ready in 2008.

In Los Angeles, Kwek is considering creating condos at his Millennium Biltmore Hotel; In London, he is being courted by developers to do condos at five of his hotels. He is considering a hotel/residence project with a partner in Japan as well. Kwek also has a solid presence in Thailand, including a 600-unit residential project, and an additional hotel development in Bangkok as well as the largest shopping mall in Phuket.

His various projects have led him to travel the world, but Singapore is where he chooses to spend the majority of his time. Here, he settles in with his two sons. One son, age 26, just graduated from Wharton Business School, and is studying International Relations and Comparative Politics at Columbia. His other son worked at Credit Suisse, then at one of Kwek’s New York hotels. Now he is in China, trying to take a loss-making company recently acquired and turn a profit. Do we have yet another Kwek that will one day be changing the global landscape in such a dynamic way? One can only hope.

Koh Boon Hwee couldn’t kill a rabbit

That’s why he decided not to be a doctor and became a corporate head honcho instead

Straits Times Aug 10, 2014
Over a two-hour chat with Koh Boon Hwee, one learns three key things about the corporate titan.

One, he does not like to give up on what he has started.

Two, he does not look back.

Three, he believes education is the key to changing one’s life.

These attributes have helped him navigate through life more than just niftily.

Just look at his curriculum vitae. A respected investor who co-founded private equity firm Credence Partners, the 63-year-old has chaired some of the country’s biggest and most successful organisations including SingTel, Singapore Airlines and DBS Bank.

He serves on the board of several public and private companies, both locally and in the United States and Hong Kong. He also chairs the board of trustees of Nanyang Technological University (NTU) and is credited for overseeing its growth into an internationally recognised research university.

“I’m just lucky,” he says, trying to downplay his achievements. Several good mentors and some astute decisions at critical junctures, he suggests, are responsible for who, what and where he is.

Breaking out into a hearty laugh, he adds: “You know, being lucky is better than being smart.”

Perhaps so but Mr Koh – who has a first-class honours degree in mechanical engineering from Imperial College London and an MBA (Distinction) from Harvard Business School – also has one heck of a brain.

Almost sheepishly, the eldest of three children of a trader and a homemaker says: “Studies came very easily to me.” He breezed through his years at St Andrew’s and was Singapore’s top boy in the O-level and A-level examinations.

At St Andrew’s, he met Ms Lenn Mei Ling, a teacher who was to have a lasting influence on his life.

As one of the school’s brightest, he was sent to the pre-medicine stream for his A levels. A couple of months into his first year, he started having doubts if he was suited to be a doctor. “I hated the idea of gassing rabbits and guinea pigs; I just hated the idea of having to kill them,” he says. “So I thought to myself, if I have some difficulty with animals, I may have problems with humans.”

“Obviously, not because I’d have to gas them,” he adds with a chortle. “But if I was not successful in treating them, I might find that difficult to deal with.”

Engineering, he decided, was a good fallback except for one snag: mathematics – a requisite for engineering studies – was not part of the pre-med syllabus.

So he decided to do maths as a private candidate and approached Ms Lenn for help to catch up, even though she was not his teacher. It turned out that he did not need her help that much, but she became a respected mentor.

She died a few years later from leukaemia, in her early 30s.

“The problem with the world is that you have many people who profess to be a lot of things but don’t live according to what they profess to be. She was an exception,” he says. “The way she lived her life, the fortitude she showed, the faith that she had… I’ve not seen that in many people.”

Teachers like her were a reason why Mr Koh – who has sat on NTU’s board of trustees for more than 20 years – is such a strong champion of education. It is a social leveller and can help anyone make his way through the world as long as he is diligent.

Four years ago, he donated $2.5 million to NTU to help deserving students and honour teaching excellence. He has also given generously to his alma mater and other educational causes.

Earlier this year, Imperial College London conferred an honorary doctorate on him for his contributions to education in Singapore. “I believe the award is not because of my personal achievements, rather it is a reflection of the tremendous accomplishments of NTU – how it has gone from a teaching university in Singapore to being an internationally recognised research-intensive university in such a short time,” he says modestly.

It was shortly after sitting the A levels that he met another person who helped to shape his life. With nine months to kill before beginning his degree course in London, he found a job as a computer card puncher with consulting firm Arthur Young for $180 a month.

“But I found card punching very boring. After just two weeks, I was the department’s fastest and most accurate card puncher,” he recalls.

The precocious 17-year-old then approached the firm’s director William Schroeder one Friday evening and told him he wanted to be a programmer instead. “He asked me, ‘What do you know about programming?’ I said, ‘Nothing, but I can learn.'”

Mr Schroeder gave him three books on programming which he read from cover to cover over the weekend.

“On Monday morning, I went to Bill and told him I was ready to write programs,” recalls the skilled raconteur. His sceptical boss decided to test his claims and asked him to write a program calculating mortgage payments, and was stupefied when the young man did just that in a few hours.

“On the spot, he said, ‘Well, you are no longer in the card punching department, you are in the programming department and I’m doubling your pay.'”

Over the next couple of months, Mr Schroeder threw all sorts of programming challenges at the young man.

“One day, he asked me, ‘What would your parents say if you moved to Hong Kong to work for a few months?'”

It turned out that the programming tasks he had been doing were for Hong Kong’s first private housing project – the Mei Fu Sun Chuen – by oil giant Mobil. The 99-tower complex built between 1965 and 1978 was considered the largest private housing development in the world then, home to nearly 80,000 people.

The teenager was made leader of the project to handle computerised billing for the estate’s residents and put up in a suite at Hong Kong’s most expensive and exclusive hotel, The Peninsula.

“Bill introduced me to the head of Mobil who asked, ‘Are you sure this kid knows how to do anything?’ Bill’s response was, ‘I’m telling you, he’s the best.’ After that, I just couldn’t let the man down,” says Mr Koh, adding that Mr Schroeder taught him a lot about mentoring and spotting talent.

At Imperial, he did so well that he won a scholarship to complete his tertiary education. The British government also offered him a scholarship to do his PhD.

“My claim to fame was getting a computer to draw an ellipse with just the definition of the two focal points and the radius. In those days, everyone thought it was a big deal,” he says with a laugh.

But he had to return to Singapore for national service. And that was when his life took another turn.

While in the army, he developed an interest in the stock market. “I had no background in economics but every day, I’d read in the newspapers all these reports of stocks going up and down. Based on what I was reading, I put two and two together, the same thing as I’m doing now,” he says, adding that he and three of his army mates would pool their monthly allowance of $90 to play the market.

To better his understanding of business and economics, he decided he needed to learn how to read accounts. He took up a professional accounting course, completing four of five modules on his own. An engineering PhD no longer appealed to him; he applied for and got into Harvard to do his MBA instead.

Upon graduating, he was hired by Hewlett-Packard in 1977. He started as cash manager, got promoted to accounting manager, and after two years was posted to the multinational corporation’s cost accounting division in the United States. After seven years, he was made managing director of HP in Singapore.

Although sterling, his 14 years at the company had its fair share of bumps. In steering HP from a manufacturing company to a research and development one, he launched two projects, one to develop an oscilloscope and another a disk drive. Both projects bombed spectacularly and cost the company more than $1 million each.

But he did not get fired because his bosses encouraged risk-taking and did not punish failures. It is a philosophy he holds close to his heart, especially since he invests in many technological start-ups and steers NTU, which is very research-based.

By definition, he says, research is a little messy and results are not always immediately tangible.

“It’s not a good idea to pull a tree up by its roots every day to see if it’s healthy. I’d rather have my people try and fail because they would learn from it than not to try. If you don’t try, you are not pushing the envelope and will not make progress,” he says.

After HP, he continued making strides in the corporate world. He was executive chairman of the Wuthelam Group from 1991 to 2000, guided SingTel’s transformation from statutory board to telco giant in 1993, steered Singapore Airlines through a tumultuous time after the Sept 11, 2001 terrorist attacks on the US, and shepherded DBS through the financial crisis after the Lehman collapse in 2008.

Asked how he holds his own in the corporate jungle, Mr Koh, who is married to a former banker and has four children and one grandchild, says: “I don’t look back. Looking back takes a lot of negative energy. There are bound to be setbacks, ups and downs, betrayals. You just have to move along and move on.”

He believes he is lucky to love what he is doing.

“A lot of people in today’s world decide what they want to do based on what they think they are going to get compensated for. And some of them grow to love the job, which is fine. A lot of them don’t, and then they’re actually not very happy.

“I think that’s a tragedy. Life is too short for that sort of stuff.”

Background story

Mentor’s wise words

“One day, I jokingly asked Bill if I should give up the idea of university and continue working for Arthur Young. He looked at me and said: ‘You are fired. No matter how attractive it is, you have to go to college.’ He did not promise me a job after I completed my studies either. He said if I went back, people would say he favoured me. He told me it was important for me to see what was out there and learn to make it on my own. We became friends for life.”

MR KOH BOON HWEE on his mentor William Schroeder, who died a couple of years ago

Don’t try to keep up with the Joneses

“We shouldn’t get caught up with wanting to make sure that whatever we do in life, we want to have the approval and adulation of other people. There is always someone better. If you are famous, there is someone more famous, with a bigger Twitter following. If you are good-looking, there will be someone better-looking. You will never be happy. The important thing is to be happy with what you have. If you wake up every day measuring and comparing, life can’t be much fun.”

MR KOH on contentment

Crystal Jade chief on ‘marrying off’ company

Crystal Jade chief on ‘marrying off’ company

He cried when telling staff about the sale to LVMH’s private equity arm
Published on May 3, 2014 1:16 AM

ST_20140503_IP03_288492e

Crystal Jade Culinary Concepts chief executive Ip Yiu Tung with L Capital Asia managing director Christina Teo. The 65-year-old Mr Ip, who has one daughter, says it is very difficult to find a successor. L Capital Asia will be acquiring over 90 per cent of the restaurant group.

By Rebecca Lynne Tan
Food Correspondent

CRYSTAL Jade Culinary Concepts’ head honcho Ip Yiu Tung treats the well-known Chinese restaurant group he built like one of his children.

And just talking about its impending sale next week to L Capital Asia, French luxury goods conglomerate LVMH Moet Hennessy Louis Vuitton’s private equity arm, makes him emotional.

“I am handing over the company to another father,” he said with a quiver in his voice when asked about the sale, in an exclusive interview with The Straits Times at Crystal Jade Golden Palace at Paragon Shopping Centre yesterday.

L Capital Asia will be acquiring over 90 per cent of the restaurant group, which has an annual revenue of close of $250 million. The deal took about three years to materialise.

“I feel sad,” he added. “I actually cried when I announced it to my people on Tuesday.”

The chief executive, 65, who is also the group chairman and managing director, had to stop to compose himself after the first sentence in an announcement of the sale to 100 key staff members. The usually collected, reserved and matter-of-fact chief then cried, but left the private room at Crystal Jade Golden Palace before he could see their reactions.

On the decision to “marry off” the company, he said: “It is very difficult to find a successor. At the age of 65, even if I keep the business, I can keep it only for another three to five years, that’s all. After the age of 70, will I still have the strength? Already, it is quite tough.”

The Hong Konger, who is now a Singapore permanent resident, usually spends his weekends in Hong Kong, where he lives with his wife and only daughter, then begins travelling on Mondays to the group’s restaurants and offices in other parts of Asia.

The group comprises 120 restaurants, from high-end, fine-dining concepts to ones offering casual Chinese cuisine, in 10 countries from China to India, and 21 cities. It has 47 restaurants here.

Globally, it employs about 4,500 full-time staff.

Crystal Jade has seven shareholders. Some will retain a stake in the business while others will cash out.

Mr Ip has sold all his shares, he said.

The company started out as a single restaurant in the now-demolished Cairnhill Hotel in 1991. Mr Ip invested HK$10 million (about S$2 million at the time) the following year to keep the ailing restaurant afloat, then took on the role of overseeing the strategic direction for the company.

On why he thinks L Capital Asia is a good fit, he said: “Our strength is in providing good quality food and service, but we lack brand building, and good relationships with landlords around the world.”

The fund’s parent company, he said, is more in tune with the landscape of international business than Crystal Jade, and can “add value” to the group in terms of branding.

L Capital Asia’s managing director Christina Teo, 40, said: “Crystal Jade is a household brand with a very strong DNA.”

The fund has already identified a chief operating officer or chief executive for Crystal Jade, Mr Ip said. He will stay on as its interim chief executive for a year, then remain as an adviser and brand ambassador to the company.

The sale did not come about because the group is in debt, he said, adding that it is not leveraged or over-committed. It generates enough money to expand organically and has “a lot of cash, just sitting there”.

He plans to divide his new found time into three parts: one part for Crystal Jade, another for his family and the last part for helping the under-privileged in China.

He said: “I am not greedy. I don’t need more money to make me happy. I was already happy. I need a meaningful life, not just money.”

Cedele by Bakery Depot

Interview with Ms. Yeap Cheng Guat, Founder of Cedele By Bakery Depot
by Teo Sok Huang on 28-May-2009

Founded in July 1997 and with the establishment of the brand name Cedele in 1999, this home-grown chain has expanded to 17 stores comprising of bakery cafes, bakeries and all-day dining restaurants. Bakery Depot has been advocating positive eating, attitude and healthy food, made responsibly and with great passion by artisan bakers. With its philosophy of “Eat Well, Be Well”, Bakery Depot has been creating nutritious and wholesome food, handmade from scratch with fresh and natural quality ingredients, without any unhealthy preservatives, trans fat or additives. The company has garnered numerous positive reviews from the media and public.

Interviewer’s Comments:
Ms. Yeap appeared sincere and self-confident throughout the interview. One can see her passion and enthusiasm in providing food of the best quality for the better health of her customers and the environment. Ms. Yeap was candid with how her previous working experience, family life and personal thinking have structured her business philosophy. Her dedication towards her company was evident, as she discussed her plans to further innovate and expand the business in Singapore and overseas. Ms. Yeap wants to take the lead in educating consumers on what good food is, and generating the interests of consumers in what goes into their food and how their food is made.

1. What is the nature of your business?
Bakery Depot started out as a bakery, which will always be the backbone of our business. Additionally, we bake for wholesale business. When we launched the Cedele brand, our proposition was to serve healthful meals. We offer a wide variety of wholesome, sugar- and fat-free freshly baked breads and have up to 8 different types of breads daily for our signature gourmet sandwiches. We were also the first to offer soups and salads made from scratch, which was like an innovation back then. Our vegetarian and meat-based soups are so hearty that most people would find that one bowl is sufficient. Our food has absolutely no trans fat and Cedele was the first in the market to introduce organic unrefined sugar in our cakes, pies, pastries and cookies. To date, we have 17 stores comprising of retail bakery, bakery cafe and all day dining restaurants. We are happy that we have provided an avenue for people to be given a choice to eat better.

2. When and why did you decide to become an entrepreneur / take over your family business? NOTE: If it is not a family business, ask: Do your parents have their own businesses too? Have they inspired you in one way or another? (Select appropriate question according to the entrepreneur being interviewed.)
I decided to be an entrepreneur as I want to make a difference and be free to express myself through my work. I also want to advocate healthy food and positive eating. My parents did have their own business but it is totally different from mine. Education was a priority in our family. My parents worked hard to ensure that their children received an education so that we can make a difference in our lives. My parents taught me virtue, life values, integrity and the value of education.

3. What are your reasons for choosing to do business in this particular industry?
The barrier to entry into the baking business was low. Also, baking is something that I have always done. Cooking and baking are very therapeutic and come as a second nature to me. So I went for cooking lessons and trained. Besides, I have an academic background and am strong in research, so I was confident that I could survive in the business.

4. How did you put together all the resources needed to start your business? For example: getting the start-up capital, hiring staff, doing sales and marketing, advertising, etc.
I try to hire people who are new to the business as they would not have any preconceptions. Also, you must first understand where you are now and what your business format is. I chose the appropriate marketing vehicle based on my budget and an understanding of where my business is. For example, television commercials may not be the best medium for a niche business like Cedele. It is better to find a medium that is more engaging and therefore, we have a website. In my first shop, I provided samples of our food for customers to try. I realized that sampling was one of the best ways to market my business, and calculated that it was cheaper than putting up an advertisement. We then built our customer base by introducing loyalty programmes such as loyalty cards or discounts. Communication is key and we implemented in-store communications posters and leaflets. Some of my thoughts or quotes even ended up on the blackboards in the stores! It is important to be newsworthy and have the press write about us. It is more credible for a third party to talk about us and this free publicity is a powerful vehicle for the public to learn about Cedele. We will also work with other organizations with the same ethos as us for joint promotions to further build the Cedele brand.

5. How did you go about designing the process? Did you have much knowledge regarding this industry when you first started?
I did not really have much knowledge about the F&B industry. I worked in real estate and telecommunications industries before. It was from an FMCG (fast-moving consumer group) multinational company that I learned a lot about business processes. I can resonate with the working style of an FMCG business. Thus I am very process-driven and would inject this discipline into my own business. Being in an FMCG company helped me understand and identify gaps in the market. For example, I noticed that people had to pay a lot for wholemeal bread and only selected groups could afford to buy. Thus I started a bakery business to make wholesome healthy breads more accessible to the public and sold at a reasonable price.

6. I am rather curious, why did you choose the name Cedele?
We started as Bakery Depot, which was essentially a bakery. When we first opened downtown, we decided to serve drinks and meals, alongside our breads, cakes and pastries. However people thought Bakery Depot was just a bakery and it would not be the first place in mind to go to for lunch. Hence we decided to use a different name – Cedele. It represents our retail brand. It does not have any apparent meaning but just sounds like Deli. We had to put a meaning to the Cedele brand in the initial years, as there was quite a lot of press already written about Bakery Depot. After 10 years of building the Cedele brand, landlords recognize and are comfortable with the brand. For the past few years, we have been positioning Cedele on a foothold emphasizing health, hence our “Eat Well, Be Well” proposition.

7. What are some interesting stories you have about your first few customers / first few years in business?
5 years ago, I met a couple who goes to our Frankel Avenue store every weekend. The husband liked to eat cakes and breads but could not as he was diabetic. I created a sugarless cake for him. He also inspired me to do a higher-percentage wholemeal bread and we now have a 100% wholemeal range. I think it is important to know what the customer needs. If a customer has special dietary needs due to medical reasons, we will try to provide a solution if we can at Cedele. Many years ago, I had a customer whose 12-year-old daughter was a recovering cancer patient and had not eaten a birthday cake for 6 years. I made her first birthday cake – a banana-bread cake – where I eliminated the sugar and ripened the bananas. She was so happy! She now regularly buys sugar-free cakes from Cedele. It makes me smile to be able to find happy solutions for my customers.

8. What were some of the challenges you faced when you first went into business?
One of the challenges would be getting the ingredients that we want. It was hard to get people to understand what I am doing, my philosophy and approach to creating and making food. I had peers in the industry who told me that I would fail and it was challenging to get bakers to work for me. For example, my bread recipes exclude fats and sugar.This was against the norm and many bakers did not believe that I could do it.

9. How did you overcome these challenges? Please share some specific examples of the action you took to overcome the challenges.
I did it the hard way by starting from scratch and training my people. I utilized my skills learnt whilst working in the MNCs which were useful in helping me to train my people effectively. I had to let my first baker go after 4 weeks into business as he would want to order improvers, which I do not allow. I also hired a junior baker, who was a cook but knew nothing about baking. Through training and mentoring, he is still with me today.

10. Can you remember your worst day in business or a time when you felt like giving up? What happened that made you feel that way and how did you triumph over it?
People do let me down, such as suppliers and stakeholders in the company. At times, we were unsuccessful in influencing certain people to join our organization or new workers from doing the opposite of what we want. I do get frustrated and start to question whether I should take the easy way out. However, I have never succumbed to such temptations and am clear of what I should do. I rethink how we should improve the shortlisting process and hire different groups of people. The solution is to hire the un-norm people, who have not worked in this industry, to fit into this un-norm business of ours.

11. What are some of your proudest business achievements to date? And why are they so important and meaningful to you?
I believe that it is the journey, rather than a fixed moment, that you can be proud of. Nevertheless, I did feel proud when I recently saw a local bakery truck carrying a label that said “No trans fat”. Years ago, Cedele was one of the first to introduce food with no trans fat, so I felt that I have made a shift by creating awareness and fighting against trans fat. You look back at your achievements, after a period of time in which you try to do the positive and right thing, and you see what has been the impact. Therefore another proud moment would be looking at how some of my staff have grown to be different and better persons compared to the day they first joined us.

12. How do you differentiate your business from your competitors? Please provide specific examples.
Cedele stands out from other cafe / restaurant operators because of our “Eat Well, Be Well” positioning and we translate this philosophy into creating and making of our food. We differentiate ourselves based on how and when we cook our food, how we buy the ingredients and how long they are kept. We continuously pay attention to our product quality and presentation, such that when a customer comes to Cedele, he knows that he will get a great deal, not of a low price but of quality and taste. Customers can be assured that our food has no trans fat since our “No Trans Fat” campaign was launched 4 to 5 years ago. We are the first company to use organic unrefined sugar in our products. We make our breads by hand, without using any pre-mix, improvers and preservatives, which are considered necessary in most bakeries. That is why we are artisan bakers, as we know what we are doing and follow the fundamentals. Our soups are gluten-free and thickened with only vegetables. Our cakes, cookies, pastries are handmade from scratch and we use organic unrefined sugar. We also buy diligently and responsibly. We purchase good quality and natural ingredients, with a focus on freshness. Our company has always been green. With a motto of “Waste Not”, we always recycle and order exactly to the required quantity. We also believe that we must give back to the society if we have an opportunity to build the business in a sustainable way. For example, our organic coffee is fairtrade and we buy from a UK-based company which contributes 60-80% of its profit back to the grower communities.

13. What are some business ideas you have implemented that created great results in your business or the industry as a whole?
I try to empower my customer with information, enabling them to make informed choices. I am pleased to make a difference and shift the thinking of people in their choice of eating better. Our all day dining concept was introduced in 2003 and it is doing very well. We were one of the first to make breakfast popular by serving a hearty breakfast, which is the most important meal of the day, at an accessible price. At our stores, our products have absolutely no trans fat. It has always been my mission to serve all organic foods in the future, and I see this as a natural progression for Cedele. We are one of the first to introduce freshly-baked organic breads in Singapore in 1997. Initially, there were not many organic ingredient suppliers and virtually no demand for organic products. However there are a lot of people buying organic products now. We are also the first to highlight gluten-free food in our menu. We have a wide range of gluten-free soups and salads for people who are looking for a low-gluten diet. Any small contributions matter and it may take awhile to gain acceptance, but Cedele has always been unafraid to take the first steps and make decisions outside the norm.

14. Can you share with us some ideas of how you maintain the high standards?
We have a buying department whose sole purpose is to examine the freshness of our ingredients and ensure the right temperature for storing them. Our storage capacity is small to discourage holding large volumes. My HACCP (Hazard Analysis and Critical Control Points) team helps to enforce proper production processes to ensure that fresh quality, cleanliness and hygiene practices and standards are maintained. They scrutinize our entire process of buying, receiving, storage, production and delivery of our ingredients and foods. We train our workers from the start on the disciplines that must be adhered to. As we are manufacturers, we control the ingredients for most of the food that we make. Hence we are able to shortlist suppliers who offer innovations (eg. organic unrefined sugar, grapeseed oil) and fulfill certain prerequisites such as having no trans fat, artificial preservatives and flavourings. We work with local and overseas suppliers to deliver quality and freshness according to our specifications. We do not compromise on quality and freshness and if our specifications are not met, we will reject the entire shipment. The method in which we cook our food and the ingredients that we put into our food are also important. Again, we emphasize freshness and the quality of our ingredients.

15. Where or who do you get your business ideas from?
I build my business just from listening to customers who tell me what they need. I always design food by thinking about the impact to the health of my customers, and will not do it if it is not good for them. For example, our flour has no mold inhibitor preservatives and I was educated about this from a customer, who is the president for a club for children with disabilities. Through research, I learnt that margarine has trans fat and is cancer-causing. This was enough reason for me to stick with butter and exclude margarine from my recipes.

16. What do you see for your business in the next 5 years, and does it include any plans for expansion?
It is inevitable for a business to expand and the form must change regardless of which way your business expands. Our proposition is relevant in a Western country and may probably be better-received there than in Singapore. It is our dream to bring our business into the West. Cedele, as a brand, will evolve to a different form, if the market conditions are ready. Another of my dream is to have a group of entrepreneurs working for our company in their own divisions. Our future end-state is to be all-organic. We will also be moving towards more fair trade products. The costs are higher but I believe I can bring positive impact to the lives of the growers.

17. As you are currently working with mainly overseas suppliers, do you have any plans to work with local firms as well?
I do purchase from local suppliers currently. I would love to support and work with more local enterprises. However, it is hard to find suppliers in the region who are able to complement our business. I strongly encourage young enterprises to work with us and we will be very happy to share our thoughts and philosophy. Hopefully, we can create a positive footprint. We admire people with a sense of responsibility and reliability, and they are whom we can resonate and work with.

18. What does entrepreneurship mean to you?
I do not think it should just refer to a quality of a person who has his own start-up. It can also mean a person who works for a company and starts his own project, thus building ownership, creativity and thoroughness in the business. If they drop their ego, which is always what stops people in their businesses, they will succeed. It is about having a thought in the beginning and putting them into a tangible form.

19. In your opinion, what does it mean to have the ‘spirit of enterprise’?
Always think out of the box. Give yourself the permission to take risks and apply the processes that you have learnt. If you do not dare to take risks or only have a small appetite, then work for people but still be an entrepreneur within the organization.

20. Who or what motivates and inspires you?
My ex-company was an US-based multi-national company. It was a socially responsible company which gave back to the society. I had an ex-colleague who stuck quotes at my desk. 2 quotes that stayed with me through the years: One was from Confucius, “If you enjoy what you do, you will never work another day in your life.” Another one is, “The best ideas are usually found in the graveyard.” Many people have good ideas but they never execute or share them in their lives, so their ideas go to the grave with them. This is for entrepreneurs who want to do something but never did. I decided not to procrastinate anymore and drove myself to open my bakery business. Even if things did not work out, I could still go back to the corporate world and my resume will look better. One of my professors told me that we will probably not remember what we have learnt after our course. The one thing he wanted us to remember is the importance of research and to apply this in our working life. I am very lucky to have had many mentors in my life and I pay attention to the people I meet, how they can engage and add value to my life, so that I can be more educated. Education never stops until the end of your life.

21. Would you quit your business and go back to the corporate world again?
It depends. I will not mind if any corporation can engage my service and I can add value to them.

22. What are some of your business values and what would you like to pass down to others, particularly the younger generation?
It is our mission to impact our customers positively by providing higher value in terms of better quality food at very accessible prices. I made a pact with myself years ago that when the company expands, we will not cut back on ingredients: we would want to buy higher quality ingredients but at lower prices because of our larger volume. This will enable us to pass these benefits to our customers. If you have a regular customer base, you cannot take them for granted. You must respect your customers. They will know when you try to cut corners, so do not even try. Believe in yourself. You should learn the right skills as you work and they should become your habits. Be very interested in your surroundings. Be observant, hardworking, methodological and organized. Do the right thing. Do not venture into business just for the sake of money. Stay true and focused.

23. Can you share some of the more significant events / incidents that affected or shaped your business philosophy and the way you conduct your business?
The recent economic downturn affected us a little but not significantly, as we have always been very sensible with controlling our costs. Previous major incidents such as 9/11 and SARS did not affect us adversely. In fact, the reverse was true: it affected our wholesale business to a major airline. When the contract ended with this client, it gave me a new opportunity to focus and open more shops. I see every downturn as an opportunity. I have always been a healthy eater who exercises regularly. When my ageing parents became ill, I read a lot on nutrition to nurse them back to health. This period helped me to be clearer about the position of my company – to advocate “Eat Well, Be Well”. As our customers continue to patronize us over time, we will need to introduce product innovations with health benefits, to provide a solution for their lifestyle change. For example, we just launched grapeseed oil to be used in our cakes and at our all-day dining stores. Grapeseed oil is a better oxygen carrier to the brain. With grapeseed oil, we use less oil now, so less calories. We subscribe to the concept of “less is more”, and it is a win-win strategy.

24. With the changes in the market today, do you think it has become harder or easier to succeed in business? Why do you say so?
Change is constant. In business, you must constantly create a niche for yourself and seek opportunities. There is no such thing as the market being too crowded. The probability of competition is endless. There are a lot of ideas and opportunities in the food business.

25. What advice would you give young people who want to do their own business?
You should start a business that you can handle. Otherwise it becomes overwhelming and you have to give it up when it becomes too difficult. It is about awareness. I hope all young people view their lives this way: apprehension will always be there but enjoy the journey and do not be worried. Ask yourself what is your strength and build your career from there. Think about the topic that you can resonate with, what you can positively contribute to society and never waste time. Do everything legal and help people.

www.cedeledepot.com

Quotes to inspire you toward becoming a good leader

Giftedness, Core Values & Purpose:

“Life is a place of service. Joy can be real only if people look upon their life as a service and have a definite object in life outside themselves and their personal happiness.” – Leo Tolstoy

“Too many people overvalue what they are not and undervalue what they are.” – Malcolm Forbes

“Life is good when you live from your roots. Your values are a critical source of energy, enthusiasm, and direction. Work is meaningful and fun when it’s an expression of your true core.” – Shoshana Zuboff

“Try to forget yourself in the service of others. For when we think too much of ourselves and our own interests, we easily become despondent. But when we work for others, our efforts return to bless us.” – Sidney Powell

“When a man realizes his littleness, his greatness can appear.” – H. G. Wells

“A meaningful life will not be found in the next job or the next car. The way you get meaning in your life is to devote your self to helping others and creating something that gives you purpose.” – Morrie Schwartz, in “Tuesdays with Morrie” by Mitch Albom

“The only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking.” – Steve Jobs

“When you ask people what it is like being part of a great team, what is most striking is the meaningfulness of the experience. People talk about being part of something larger than themselves, of being connected, of being generative. It becomes quite clear that, for many, their experiences as part of truly great teams stand out as singular periods of life lived to the fullest.” – Peter Senge

“How does one become a butterfly? You must want to fly so much that you are willing to give up being a caterpillar.” – Trina Pallus

“However mean your life is, meet it and live it: do not shun it and call it hard names. Cultivate poverty like a garden herb, like sage. Do not trouble yourself much to get new things, whether clothes or friends. Things do not change; we change. Sell your clothes and keep your thoughts.” – Henry David Thoreau

“Whatever you can do, or dream you can, begin it. Boldness has genius, power, and magic in it.” – Goethe

Servant & Transformational Leadership:

“It is amazing how much people can get done if they do not worry about who gets the credit.” – Sandra Swinney

“If your actions inspire others to dream more, learn more, do more, and become more, you are a leader.” – John Quincy Adams

“Far better it is to dare mighty things, to win great triumphs, even though checked by failure, than to rank with those poor spirits who neither enjoy much nor suffer much, because they live in the gray twilight that knows neither victory nor defeat.” – Theodore Roosevelt

“Leadership is lifting a person’s vision to higher sights, the raising of a person’s performance to a higher standard, the building of a personality beyond its normal limitations.” – Peter Drucker

“In the end, it is important to remember that we cannot become what we need to be by remaining what we are.” – Max DePree

“We are not looking for blind obedience. We are looking for people who, on their own initiative, want to be doing what they are doing because they consider it a worthy objective. I have always believed that the best leader is the best server. And if you’re a servant, by definition, you’re not controlling.” – Herb Kelleher

“It could be argued that all leadership is appreciative leadership. It’s the capacity to see the best in the world around us, in our colleagues, and in the groups we are trying to lead. It’s the capacity to see the most creative and improbable opportunities in the marketplace. It’s the capacity to see with an appreciative eye the true and the good, the better, and the possible.” – David L. Cooperrider

“Leadership is not so much about technique and methods as it is about opening the heart. Leadership is about inspiration – of oneself and of others. Great leadership is about human experiences, not processes. Leadership is not a formula or a program, it is a human activity that comes from the heart and considers the hearts of others. It is an attitude, not a routine.” – Lance Secretan

“If you’re the leader, you’ve got to give up your omniscient and omnipotent fantasies – that you know and must do everything. Learn how to abandon your ego to the talents of others.” – Warren Bennis

Emotional Intelligence & Employee Engagement
(Balancing Head & Heart):

“He who has learning without imagination has feet but no wings.” – Stanley Goldstein

“When people are made to feel secure and important and appreciated, it will no longer be necessary for them to whittle down others in order to seem bigger in comparison.” – Virginia Arcastle

“The development of people is an equal partner with the actual results of your organization’s purpose” – Ken Blanchard

“The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little.” – Franklin D. Roosevelt

“The axe forgets, the tree remembers.” – Anonymous

“My day is better when I give people a bit of my heart rather than a piece of my mind.” – Pam Conley

“A special workplace has many ingredients. The feeling that you are part of a team, a sense of community, the knowledge that what you do has real purpose – all these things help to make work fun. But by far the most important factor is whether people are able to use their individual talents and skills to do something useful, significant, and worthwhile.” – Dennis Bakke

“The greater part of happiness or misery depends on our dispositions, and not on our circumstances.” – Martha Washington

“We who lived in concentration camps can remember the men who walked through the huts comforting others, giving away their last piece of bread. They may have been few in number, but they offer sufficient proof that everything can be taken from a man but one thing: the last of the human freedoms – to choose one’s attitude in any given set of circumstances, to choose one’s own way.” – Viktor Frankl

Bengawan Solo

Domestic goddess
by Huang Lijie
The Straits Times

Mrs Anastasia Liew, 62, fumbles to hide her hands from the camera.

Wearing a single diamond ring and no nail polish, the founder and managing director of Bengawan Solo cake shop says to the photographer: ‘Can you not photograph my hands? They don’t look good. These hands have been making cakes for more than 30 years.’

Her remark is more self-conscious than vain. But really she should be prouder of her hands – they have helped build her confectionery business from the kitchen of an HDB flat into an empire with a turnover of $43 million last year.

And its cookies such as gula melaka (palm sugar) kueh bangkit and pineapple tarts will retail at London’s famous Selfridges for a week in October in a shopping aisle dedicated to Singapore food products. This is a tie-up facilitated by International Enterprise Singapore, which promotes the overseas growth of home-grown businesses.

The cake chain is also actively scouting for locations in Hong Kong and Japan to open outlets in the next two years.

She says: ‘Our business in Singapore is stable so I dare to take the risk and open in places such as Hong Kong and Japan where we are well known. Their tourists form a large part of our customers.’

Bengawan Solo’s overseas expansion plans were prematurely announced at least six years ago by her son Henry, the younger of her two children and the company’s business development director.

‘He was new to the business and spoke without thinking. I scolded him afterwards,’ she says while affectionately slapping the knee of the 31-year-old National University of Singapore business administration graduate, who sits beside her during the interview in her Holland Road bungalow.

She acknowledges that her strict demand to maintain the standard of her products delayed the company’s move into foreign markets.

Sourcing key ingredients such as fresh pandan and coconut for overseas manufacture was an obstacle and she refused to compromise by using processed substitutes.

She says: ‘Ours is not a bread business where with one dough recipe you can make many different types of bread. Our kueh and cakes have individual recipes that need to be perfected by the workers.’

Her solution: a second factory. The new factory located in Woodlands Link, built at a cost of $5.2 million, began operating this year, almost doubling its production capacity so it can now export its confections without worrying about inconsistency.

Good quality has been the hallmark of Bengawan Solo since day one.

Mrs Liew would buy fresh pandan and coconut rather than stint and use bottled pandan essence or packet coconut milk for the cakes she sold to supermarkets in the 1970s. The effort paid off. Although her cakes cost more, 45 cents compared to the market rate of 30 cents, because of more expensive ingredients, they were a hit.

‘The supermarket manager asked me why I sold my cakes so expensive but I knew mine were better, more fragrant. My cakes always sold out,’ she says with pride in her voice.

Most of Bengawan Solo’s more than 50 types of kueh and cakes, including kueh lapis and lapis sagu, continue to be handmade by more than 130 factory staff to preserve their homemade goodness.

Yet she readily embraces technology if it improves her confections.

‘In the past, you could throw my pineapple tarts against the wall and they wouldn’t break. Now, they melt in the mouth,’ she says.

The secret: machines imported from Japan in the 1990s that produce a thin and even crust.

Another key to Bengawan Solo’s success: Mrs Liew takes feedback seriously.

Earlier this year, some customers complained that her premium pineapple tarts, which use a blend of top-grade butter from Australia and Holland, tasted too strongly of butter.

Eventually she found out that the quality of the Dutch butter had slipped and she immediately reverted to using just one type of butter.

Madam Chen Lee Fung, 40, head of the icing department at Bengawan Solo and an employee of 16 years, says: ‘If we are lazy and take short cuts, she will tell us off. But she is also patient enough to show us the right way to do things when we make mistakes.

‘Once, when the cake moulds were not cleaned to her standard, she rolled up her sleeves and showed the workers how to do it.’

From young, Mrs Liew was assiduous. When she was schooling, she always made sure she was among the top three in class.

Born Tjendri Anastasia to a housewife mother and provision store owner father in Bangka Island off Palembang, Indonesia, the third of eight siblings grew up in Palembang.

After civil unrest in the country in the 1960s forced her to stop school at Secondary 3, she signed up for baking and cooking classes to upgrade herself.

Improving on the recipes she was taught, she conducted culinary classes for housewives and young women in the kitchen of her family terrace house.

The income from these classes allowed her to take more lessons in cooking as well as dress-making in Jakarta before coming to Singapore in 1970 to brush up on her English.

In 1973, she married accounts executive Johnson Liew, a fellow Indonesian Chinese based in Singapore who is 15 years her senior. They are both Singapore citizens and their two children were born in Singapore.

Two years after marriage, the restless housewife began making butter and chiffon cakes from the kitchen of her four- room flat in Marine Parade to sell to friends. It became so popular that a department store in Lucky Plaza went as far as to set up a special retail counter selling her cakes.

The store, however, did not have a licence to sell food so when the law caught up with it, it pointed its fingers at Mrs Liew, who was unaware that her unlicensed home-baking business was illegal.

She stopped her business immediately but customers kept asking for her confections, so a couple of months later, she invested a few thousand dollars to open a store in an HDB shophouse close to home. She named it Bengawan Solo after the popular Indonesian song about Indonesia’s Solo River.

A 1981 Sunday Times article praising its cakes and kueh turned the already popular shop into an overnight sensation.

All-day queue

She says: ‘People would queue outside the shop before it opened and there would still be a line at closing time when all the cakes had sold out.’

The enthusiastic response led to the opening of another outlet in Centrepoint in 1983 and her husband joined her as the company’s accounts director.

By 1987, Bengawan Solo had five stores and a central kitchen in Harvey Road. It became so successful that investors knocked on her door with huge bids to buy over the company, which has never experienced negative growth and remains in the family to this day.

The tempting offers continue to pour in for her company but she remains unmoved because she cannot bear to part with her ‘baby’.

Besides, her son is interested in carrying on the legacy.

She says: ‘When my son, then about 12, overheard that a company wanted to buy us, he said, ‘Mummy, you cannot sell it. I want to run the company.’ ‘

Her younger sister and daughter- in-law also work in Bengawan Solo as the head of the kueh-making department and store operations manager respectively.

Her daughter, Rissa, 35, who graduated with a bachelor’s degree in business from the University of Wisconsin- Stevens Point, prefers to pursue her interest in real estate for now. The mother of two is a property agent.

Although Bengawan Solo is a family- run business, not all recipes are known only to family members. The heads of certain cake departments know the recipes for products under their charge and they are told to keep them to themselves.

Sure, her recipes may leak out, Mrs Liew admits, but she prefers to trust her employees and few have betrayed her good faith, she says.

She says: ‘Many years ago there was a worker who learnt my recipes and started his own shop. But it did not take off and the shop closed down after a short while.’

Her soft-hearted nature is what endears her to her employees.

Workers with difficulty paying off their home loans for example, have received five-figure interest-free loans from her that are repaid by monthly deductions from their salaries.

Staff who encounter emergencies such as severe illness in the family have also received help from her in the form of doctor recommendations and cash.

And when busy festive periods end, she often rewards her workers with a meal and karaoke session where she lets her hair down and sings along with the group.

Mrs Elizabeth Ong, 58, director of a biomedical company who has known Mrs Liew for 10 years through volunteer grassroots activities with the Jurong GRC, says: ‘She is an unassuming person who is able to relate to people from all walks of life.’

Mrs Liew continues to be hands-on with the business, making trips to the outlets to gather customer feedback and going on inspection rounds at the factory seven days a week.

With the opening of its 43rd store at Ion Orchard next week, she certainly has her work cut out for her.

She is, however, trying to slowly hand over the reins to the next generation because she understands that age is catching up with her.

‘I certainly hope Bengawan Solo will continue as a family business through the generations and become an internationally renowned brand.’

Sim Kee Boon 沈基文

Sim Kee Boon (simplified Chinese: 沈基文; pinyin: Shěn Jīwén) was one of Singapore’s pioneer civil servants – men who worked closely with the Old Guard political leaders and played a key role in the success of Changi Airport and turned the fortunes of Keppel Shipyard around.

He graduated with Bachelor of Arts (Honours) in Economics from University of Malaya in 1953, and joined the civil service that year. By 1962, at just 33, he was made acting permanent secretary in the National Development Ministry, before taking charge of the Finance Ministry as well as Intraco, the state trading company. He was also Chairman and member of the Council of Presidential Advisers.

As Permanent Secretary at the Communications Ministry from 1975 to 1984, he made his name in the history books as the man behind was then the biggest civil project in Singapore – the construction and opening of Changi Airport – managing every aspect of the project from land reclamation to squatter resettlement. To Sim, Changi Airport project was his ‘national service’ to Singapore.

When Sim was given the mammoth task, he knew little about building an airport. Yet he approached the task as a layman, often asking questions and consulting his officers and staff. His hands-on, consultative management style kept staff on their toes, making sure they understand the importance of Changi project and nothing was to be overlooked. Civil Aviation Authority of Singapore (CAAS) chairman Liew Mun Leong remembered that Sim asked for mosaic tile samples from contractors to be displayed so staff could give feedback on tiles for the airport walls.

Sim was also known for his attention to details. As Chairman of the Civil Aviation Authority of Singapore (CAAS) for 15 years from 1984, he ensured that the airport had kept up with if not, exceed world-class quality standards. From airport management software to the texture of trolley handles, he insisted every aspect of customer experience must keep up with its impressive infrastructure. The quality of toilets at the Airport was even under his radar. He was quoted saying that the first and last point of exposure to an airport is the toilet. It gives you an impression of the country.

He also introduced free local phone calls in the transit area and the famous ’12-minute rule’. This means the first bag must be ready for retrieval 12 minutes after an aircraft grounds to a halt. He would even walk around the Changi terminals frequently, instituting the habit of ‘Management by Walking Around’ in CAAS. Mr David Lum, Managing Director of Lum Chang Holdings remembered that he would make an effort to look around airport, by reaching the place one or two hours earlier and board the plane at the last minute. And finally, he also stressed that the different players – CAAS, immigration and customs authorities, airport retailers, eateries – must work together as a team for Changi to succeed.

Sim’s success in his work did not stop with the development of Changi Airport. Between the years 1984 and 1999, Sim was serving concurrently as Chairmen of Keppel Corporation and the Civil Aviation Authority of Singapore. It came to him at first, that he would end Keppel as it was making losses then. Instead he took the reins and once again demonstrated his canniness and swift in his decision-making and implementation. Mr Lim Chee Onn, who was executive chairman of Keppel Corporation at the time attributed Sim’s visionary abilities and his optimism ‘during those very trying times’ as factors which led to the renewed growth of Keppel within 5 years. With first signs of rejuvenation for Keppel, Sim diversified Keppel’s portfolios into other fields like engineering, property, financial services as well as developing shipyards in other parts of the world. Keppel Corporation had become a success story that befits the image of a Singapore business icon.

Another success story of Sim was when he was the founding chairman of Tanah Merah Country Club, where he built it from scratch on a barren land, and into one of Singapore’s best country clubs.

As Sim and his wife Jeannette were avid golfers, Tanah Merah Country Club was like his ‘second home’. He would also personally greet new Tanah Merah Country Club members. In October 2007 his illness took a turn for the worse, and had to undergo chemotherapy. Even so, Mr Edwin Khoo, committee member at the Tanah Merah Country Club, would still see Sim regularly at the club and walking with a tube under his shirt. When he could not get himself on the greens and play, Sim would still putt around and join golf buddies for drinks most weekends for two hours.

Of his contributions to the club, Mr Khoo said Mr Sim, a passionate golfer, single-handedly turned the barren land into the “best-run club in Singapore’, and was very proud of it.

“He always had a simple message for us committee members: to run this club well, and to make the best of what we can do. It was a simple but powerful message,” he said. He added that Mr Sim went to the club’s golf course every weekend for about two hours even when he could not play golf because of his failing health.

Businessman and Singapore’s Ambassador to Turkey, Mr Chandra Das, 68, who worked directly for Mr Sim when he was in the Economic Development Board in the mid-1960s and mid-1970s, said his former boss had taught him two things.

“First, there is no such thing as black or white. There are no fixed answers and there isn’t just one way of doing things. You must be flexible. There is a lot of grey. He was a specialist in the grey,” Mr Das told The Straits Times.

“The second thing he told me when I left EDB to join Intraco: He said in EDB there are two people playing chess and you are giving advice. In Intraco, you are a chess player.”

He described Mr Sim as “a very sharp and intuitive man, and a good teacher.” “He said you can make mistakes so long as you don’t repeat them. He was also very task-oriented and a stickler for work,’ added Mr Khoo.

“I remember I took a day off to go to the Registrar of Marriages to get married. After the ceremony, he called the ROM and said: Is Chandra Das there? Tell him to come back to work.”

Added Mr David Lum, managing director of Lum Chang Holdings, where Mr Sim was adviser since 2000, : ‘Whenever he’s at any airports, he would make an effort to look around. He’d try to go to the airport about one or two hours earlier and board the plane at the last minute.’

A hands-on man with exacting standards, he made frequent unannounced walks around the Changi terminals, instituting the habit of Management by Walking Around (MBW) in CAAS. The demand for the best holds true even on the greens, as the founder chairman built the Tanah Merah Country Club into one of Singapore’s best.

Said the club’s president Tan Puay Huat: ‘He’s not satisfied until everything is near perfect.’

Ms Mavis Tan, who was personal assistant to Mr Sim for 19 1/2 years since 1984 till he retired in 2000, said he was a boss with a kind heart but had high expectations of his staff, always challenging them to come up with solutions.

“I learnt a lot under him as I always had to anticipate what he would ask. It never failed to impress me that he had such wide first hand connections in the region,’ she said.

Staff at Keppel Group also said they benefited from Mr Sim’s leadership during his 16 years tenure as Group Executive Chairman.

Leading the tributes from the group, Mr Lim Chee Onn, Executive Chairman of Keppel Corporation, said: “He developed a strong and stable platform for Keppel upon which we have been able to develop and grow at a sustained pace during these last 8 years. Keppel’s success today is a result of his vision and efforts.

‘As his colleague, I have learnt much from him through his inimitable style, particularly his great sense of optimism and cheerfulness even during very trying times.’

Ms Wang Look Fung, General Manager of the group corporate communications, added: ‘Mr Sim was respected and loved. In all his years at Keppel, he has taught me always to be first a Singaporean and then a Keppelite in my thinking process because what is good for Singapore will be good for the future of Keppel. I learned a lot from one of the finest masters in the art of communication.

‘I will always remember him as one who has a meticulous attention for details as well as an infectious joire de vivre, always affable and charming to everyone he meets.’

Mr Choo Chiau Beng, Senior Executive Director of Keppel Corp, and Chairman and CEO of Keppel Offshore and Marine, said he will remember Mr Sim as a successful man who was always able to balance well the demands of business and public service with family life and a passion for golf.

“He was an excellent boss – he demanded results but was human and caring. He always kept his cool like holing the final putt in an important 18th hole!’

He died on 9 November 2007 at the Singapore General Hospital, after a 17-year battle with stomach cancer.

More Ayn Rand

aston_martin_one_77_images_001

“In the name of the best within you, do not sacrifice this world to those who are its worst. In the name of the values that keep you alive, do not let your vision of man be distorted by the ugly, the cowardly, the mindless in those who have never achieved his title.

Do not lose your knowledge that man’s proper estate is an upright posture, an intransigent mind and a step that travels unlimited roads. Do not let your fire go out, spark by irreplaceable spark, in the hopeless swamps of the approximate, the not-quite, the not-yet, the not-at-all. Do not let the hero in your soul perish, in lonely frustration for the life you deserved, but have never been able to reach.

Check your road and the nature of your battle. The world you desired can be won, it exists, it is real, it is possible, it is yours.”

~ Part Three / Chapter 7 This is John Galt Speaking

Ayn Rand

“The world you desired can be won, it exists, it is real, it is possible, it is yours. But to win it requires total dedication and a total break with the world of your past, with the doctrine that man is a sacrificial animal who exists for the pleasure of others. Fight for the value of your person. Fight for the virtue of your pride. Fight for the essence, which is man, for his sovereign rational mind. Fight with the radiant certainty and the absolute rectitude of knowing that yours is the morality of life and yours is the battle for any achievement, any value, any grandeur, any goodness, any joy that has ever existed on this earth.”

~ Ayn Rand’s last public speech (New Orleans Nov 1981)

Knowledge

Avoid processing more information than you can digest: it is better to know less and understand more.

Data is not information until it has been collected, collated and organized.

Information is not knowledge until it is absorbed and comprehended.

Knowledge is not understanding nor wisdom, until it is associated with life experience and given perspective.

bquote

Don't settle

apple

“Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle.”

~ Steve Jobs

Dirigisme

Dirigisme is an economic term designating an economy where the government exerts strong directive influence.

While the term has occasionally been applied to centrally planned economies, where the government effectively controls production and allocation of resources (in particular, to certain socialist economies where the national government owns the means of production), it originally had neither of these meanings when applied to France, and generally designates a mainly capitalist economy with strong economic participation by government. Most modern economies can be characterized as dirigisme to some degree – for instance, governmental action may be exercised through subsidizing research and developing new technologies, or through government procurement, especially military (i.e. a form of mixed economy).

John Thain

Thain behaviour
FT
Published: January 23 2009 22:03 | Last updated: January 23 2009 22:03

What is it that bankers don’t get? Unable to own up to a collective failure, some still display a sense of entitlement that bears no relation to their current status as wards of the state supported by the taxpayer. Step forward John Thain.

Formerly of Goldman Sachs, he was feted just months ago for securing the sale of Merrill Lynch to Bank of America, just as Lehman Brothers crumbled into dust. BofA even paid a 70 per cent premium. Some deal. Some salvation.

It now emerges that Mr Thain brought forward about $4bn in discretionary bonuses, paying them out in the narrow window after the sale of Merrill was agreed but days before the deal was actually closed.

This wheeze went down just as Merrill headed into record $21.5bn operating losses in the fourth quarter and BofA started seeking additional taxpayers’ funds from the troubled asset relief programme to digest its acquisition.

These bonuses, moreover, came in a year when Merrill’s total operating loss was $41.2bn. Bonuses equivalent to 10 per cent of the profits would be excessive, but 10 per cent of the losses? Furthermore, reports that Mr Thain spent $1.22m doing up his office, including $1,400 on a parchment rubbish bin, after his arrival at Merrill last year will serve to feed popular perceptions that the greed and insensitivity of investment bankers knows few limits.

Whether or not the bonuses were legal – and it seems they were – outside the parallel universe of investment bankers they are seen as looting. Bankers played a very big part in setting fire to the world economy – and reaped large rewards for their recklessness. They are being supported with public money because the economy cannot work without banks, not because bankers should be a protected species.

There may be no tumbrils rolling down Wall Street or through the City of London but a backlash is building. It would be a pity if this translates into regulation more stifling than that required to restrain more foolish risk-taking. But if bankers behave like this, it certainly will.

Only an A-Team will do: MM Lee

IS THERE a need for a new type of leadership to steer Singapore into the future? Or will what has worked in the past continue to work in the future?

These questions flitted through 41-year-old Jonas Ang’s mind as he sat through a dialogue at the Human Capital Summit with Minister Mentor Lee Kuan Yew yesterday.

The human resource director decided to pose them to the man most responsible for building modern Singapore.

Mr Lee’s immediate response: ‘That’s a very pertinent and deep question which I’ve asked myself.’

He said the Singaporeans of today have higher aspirations and are better educated than in the past, but that has also led some to believe that they know better than the Cabinet ministers.

‘You can see it in the letters to the press, which isn’t a bad thing provided they understand that they may not be right, because the ministers aren’t stupid,’ he said.

Changing times notwithstanding, Singapore must continue to have an A-Team of leaders in place, he added.

He said: ‘If we field a B-Team, we are in trouble. We’ve got to have an A-Team. I don’t care whether it’s the PAP (People’s Action Party) or any other party.

‘You need first-class people with good minds, a sense of obligation to do a good job for the people and the ability to execute. That’s an A-Team.’

How is an A-Team picked? MM Lee gave a peek into the process.

First, potential leaders undergo rigorous selection tests. They are then put through at least two five-year terms before they get to higher office, he said. ‘So we know that they got what it takes.’

A type of leader that Singaporeans must guard against is the glib speaker who cannot perform.

Said MM Lee: ‘That you can talk plausibly doesn’t mean you can perform effectively. They’re two different qualities. A good politician must be able to do both.’

One reason for the stringent criteria for future Singaporean leaders is the competition the country faces from up-and-coming economies like China and India, he said.

Still, there is something very much on the side of future Singapore leaders.

This is the Singapore system, characterised by traits like the rule of law, transparency, fair play and meritocracy, he said.

India and China will take at least 20 to 50 years to catch up with Singapore in this aspect, he believes.

Canadian and Singapore PR Edouard Merette, who has lived here for 12 years, agreed with MM Lee.

The peaceful, safe and efficient environment here is one reason why his company, Aon Consulting, decided to set up its regional headquarters and a research centre here.

Said Mr Merette, Aon Consulting’s CEO for Asia-Pacific: ‘Singapore is a modern society in a Third World area. You can give compliments only to Mr Lee’s leadership.’