Character lasts forever

There is currently a strong emphasis on leadership in not only the business world, but non-profit organisations, government departments, churches and religious organisations as well. Such institutions all espouse the attributes that quality leadership provides and I think the INSEAD selection process is very rigorous with the character of candidates under the microscope.

Underpinning the foundations of personal leadership is the character of the team, the function of the leader is to instill within the team the values that the team operates under. In many respects, management is out - this is the process to achieve results. Leadership is all about bringing out the best qualities of the group as the leader; as such, the character of the leader drives the success of the team.

I am a strong believer in empowering team members as the role of the leader is to produce more leaders built through a formal succession plan. For me, leadership is all about producing high performance teams. When the team is eventually disbanded, the legacy of the project is the character forged through mutual experiences.

Ray Ban sunglasses

By far my favourite brand of sunglasses is Ray Ban; I have always liked the glass lenses and the frames of the older series were both stylish and robust. My choice of Ray Ban sunglasses was Cats; much to my disappointment, these vintage sunglasses are near impossible to get hold of now for a reasonable price. I did find a pair online for $585, I nearly passed out, I'm not chasing a pair at any cost and I am guessing they are secondhand and I wouldn't trust the condition.

My first pair were destroyed by my friend's uncontrolable children who belted me from behind while I was sitting on a chair. My second pair were wrecked by a former fat-arse girlfriend who stole not only my sunglasses but a whole load of other stuff and smashed them in one of her irrational outbursts. Back in those days I have some semblance of taste but I let myself down in my youth.

Buy low/sell high

Everybody knows the old adage of buy low and sell high, yet why do so many people buy high and sell low?

I love entrepreneurship and the decision of many people to take risks and either start up or purchase a business should be appalled. I also like trading by buying and selling. A profit is a profit and traders shouldn't be upset in making too small a profit - naturally profit maximisation is optimal.

Likewise, I also believe a trader should never chase a product or service and pay a fair price, there is no value in paying a premium. I know, I have unfortunately done so on many occasions. I have chased shares where the price was too high, the market decided the valuation was too high and the price tumbled.

Likewise, I have considered the price too excessive only for prices to rise considerably and I have missed the opportunity. I am never concerned, I have missed out on potential profits, but this is still better than actual losses.

So I was surprised when I was down an old dive shop where I was employed chatting to the owner when he told me he had sold the shop effective June 30. I know the new owner and I now find out with his mortgage and business loan he now owes the bank a million dollars. We are possibly not at the bottom of an economic cycle, the situation is dire for many but may yet get worse.

Interest rates are at historic lows, but they are at that level for a reason. A rise in interest rates on loans of that size could quickly sink business earnings and we are in the throws of a two-speed economy. Currently the east coast economy is taking off, the residential property market is hot and the Reserve Bank of Australia will one day move to curb speculation. Should the east coast residential property market crash, this would have dire consquences for the economy at large.

I hope he has made an informed decision, any further downturn in economic activity on the west coast whilst the east coast is improving will have major consquences for the local Western Australian economy. The majority of the population lives on the eastern seaboard, the Reserve Bank of Australia is headquartered on the east coast and economic decisions are east coast centric. I only hope he hasn't bought high and will be forced to sell low.

Arizona dive centre

Having dived at Subic Bay on numerous occasions, I would consider myself a reasonably loyal customer. So it takes me a lot to change businesses yet my usual dive centre and accommodation finally ran out of chances. So, I decided to try a new dive centre and accommodation just down the road. In the Philippines they use the word resort very loosely, this isn't a classic resort in the true definition, what it does represent is a well run small business.

The dive centre attached to the accommodation is managed by expat Australian Kent Simmonds, a keen diver and extremely approachable guy. I will not be changing dive centres in the future while Kent is there, I love diving at this place. I have dived Subic Bay extensively; I was aware of other dive sites in Subic Bay but my former dive centre would just never offer more than the usual sites. What Kent offered me was the opportunity to explore so many new sites that were previously unavailable.

This isn't exactly a man crush, what this is amounts to a new found respect for a business proprietor who offers extraordinary customer service to a relatively experienced diver who has been buggered around by plenty of dive centres taking an arrogant view of the people who support their business. I am not offered free dives, accommodation or special rates nor have I ever requested special conditions for favourable reviews, I am a paying customer just like everyone else. So why do I choose to promote this dive centre? That's easy, Arizona Dive Centre is the premier dive centre in Subic Bay and I have dived at a number of Subic Bay dive centres.

The millionaire next door

I have long thought about net worth and who really accumulates extreme wealth. Whilst names like Bill Gates, Warren Buffett, Jeff Bezos, Larry Ellison and Michael Bloomberg easily spring to mind, but what about people who generate enough wealth to be comfortable?

With property prices rising, homeowners are generating wealth at a steady rate and people are accumulating this wealth predominately through real estate investment. Australia had 234,000 high net worth individuals in 2015, that is one million dollars USD in investable assets not including the primary residence or possessions.

Although individuals are not generating income through their primary residence; yet rising property prices are increasing their net wealth. But if the primary residence is not included in the calculation then the valuation becomes a whole lot harder. A modest home may indicate a degree of frugally freeing up capital for investment.

Likewise, an owned property may have a loan as collateral for investment but the whole net worth calculation then becomes clouded. Loaning capital against the family home for investment is fraught with danger, any decline in that investment may require the loan to be called in, margin calls are ugly. If these individuals have any investments in fixed interest, cash, bonds or equities then they have potential for both capital growth and investment income - this is a start.

The problems with classroom training

The issues surrounding training revolve around the rigidness of classroom training delivery and the passive dissemination of information from lecturer to student. As such, student reactions against poorly planned and misguided training programs undermines training effectiveness and return on investment.  

The issue is not training, indeed training should be increased to achieve sustainable productivity transformation. The issue is the quality of training and how learning is embedded in the workplace as training and development are primarily targeted towards workplace outcomes. 

When training is the focus and not learning, the return on investment will not be aligned to strategic goals with the negative connotations of training reinforced. Classroom training tends to fall into the one size fits all the difficulty with classroom training is the ability to apply newly learned knowledge and skills in the workplace. 

To embed training, the skills need to be immediately utilised in the workplace before they are forgotten, learning objectives are not met, managers who are not convinced of the merits of training then have a reason to sabotage its implementation with the resulting resistance to training embedded in the organisation. The follow-up skills practice in the workplace is missed and personal mastery is not achieved.

This isn't to say training is bad, what is required is targeted development that reinforces the learning event that is immediately implemented in the workplace. As such, on-the-job training is the preferred delivery method for majority of the skills after the initial learning event.  

Hugo Boss - Just Different

Hugo Just Different is a fragrance introduced by Hugo Boss in 2011; this fragrance is a new take on one of Hugo Boss' most popular men's fragrance, Hugo introduced in 1995. The fragrance is vibrant, modern with a cool twist and according to the advertising brief made to “inspire whatever you do”.

The notes tell me ice cold mint leaves open the composition and lead to the heart of freesia and basil. The base is composed of Cashmeran® molecule of musk followed up with a woody & spicy scent in the end notes - this is more than just a pretty good fragrance.

Logging sea time on dive charter vessels

As a dive instructor or divemaster working as a deckhand on charter vessels, I wonder why the skipper must be certified, the dive instructor certified, the divemaster certified, the divers certified or at least under direct instruction of a certified instructor, yet the deckhand doesn't require certification.

The greatest ability of the working divemaster/deckhand is to log seatime for future commercial qualifications whilst gaining valuable experience. Now, such qualifications differ from region to region, likewise, logging sea-time on lakes and sheltered waters is enormously different from sea-time under adverse conditions but it is a start.

Using untrained and inexperienced staff has been the norm with informal training sometimes leading to experienced staff. I would prefer traineeships where an unqualified deckhand works under the direct supervision of the skipper. This is pretty much what happens now to a certain degree with the exception of the deckhand being qualified, the industry has resisted qualifications for deckhands and this industry norm should be reconsidered.

The back beach of Boracay

Boracay's White Beach is world renowned as one of the top beaches in South East Asia, this acclaim is thoroughly deserved and the opportunity to stay at a beach resort shouldn't be overlooked. Having stayed on the island of Boracay a number of times previously, a different option became available and I jumped at the chance to stay away from the hustle of White Beach.

I prefer quiet places to stay and Hangin Kite right on Bulabog Beach was too good an opportunity to decline. Bulabog Beach is totally different to its more famous counterpart White Beach, instead of the pure and beautiful white sand, seaweed is washed up on the beach.

This is no issue for me living on the west coast of Australia as the near constant wind and pristine kelp beds ensure a healthy coastal environment. For me, seaweed indicates a diverse and healthy marine environment, this supports a complex eco-system leading to the overall health of the marine environment.

For others, they are seeking pristine white beaches, coconut trees and possible a pina colada on a deck chair. That's fine, it is just not what I am seeking in a beachside setting as coconut trees have a tendency to drop coconuts from a great height on unsuspecting sun worshipers.

Besides, I live 10 minutes drive from one on Perth's premier beaches and there is no way I would even spend a day at the beach, we generally headed down for an hour or at the most two - no longer.

What Bulabog Beach offers apart from seaweed, yes, they do have coconut trees right on the beach is a strong and steady wind. Whilst this is often seen as undesirable for the majority of beach goers, this is exactly what attracts kite surfers to Bulabog Beach.

Forget about stunning sunsets, Bulabog Beach is facing the wrong direction; fortunately, these two beaches are located in the narrow section of the island and a ten minute walk will land you right on White Beach.

My final MBA unit

At the beginning of my MBA journey I decided to document my progress and reflect on where I started, where I am now and where I am hopefully headed. Taking on an MBA in a more advanced stage of life is not without its drawbacks. The average MBA candidate age group in the top schools is around the 28 to 32 age bracket with at least three years of work experience. I just turned 48 and began fulltime work in 1985 after just turning sixteen a couple of weeks before. At least I have workplace experiences I can draw upon.

Starting a technical trade apprenticeship when I should still have been in high school was difficult in some respects, I made so many fundamental mistakes owing to my lack of life experiences and the tradesmen I worked with who were all very much older than me - they were very unforgiving. This however shaped my outlook and I do not suffer fools lightly. I do spend plenty of time developing training strategies so that current apprentices do not have to go through what I experienced.

So I decided to select Integrated Project Management, this unit seeks to develop the skills to coordinate projects. This unit is based on a case study applying PMBoK processes to update project plans that are impacted by change management forces. Evaluation environmental factors are applied with effective management strategies formulated to manage stakeholder relationships via multiple communication media. I think I am going to enjoy this final unit and the challenges presented, I am looking forward to this learning program.  

Renaming Margaret Court Arena - don't think so

There is no doubt Margaret Court was one of the great tennis players of her era after retiring from tennis in 1977 with 24 Grand Slam singles titles to her name. Margaret's first Gland Slam title win was in 1960 after turning professional that year.

Margaret has a fairly impressive tennis CV, she was the first woman to win all four grand slams in a calendar year in 1970 during the open era, she also won 19 Grand Slam doubles titles and 21 mixed doubles titles.

To keep things in perspective, Serena Williams currently sits on 23 Grand Slam titles and even at age 35 has the potential to overtake Margaret in the future. Steffie Graf who retired in 1999 with 22 Grand Slam titles sits third on the all time list.

What we also know about Margaret Court is that she speaks her mind, I don't necessarily agree with her views but I do respect her right to an opinion. So Martina Navratilova with 18 single titles and a bunch of current tennis players are calling for Melbourne's Margaret Court Arena to be renamed because they don't like what she has to say - come on, get real.

I only hope the management of Margaret Court Arena have the backbone to stand up to this impingement of free speech. Whilst I don't agree with Margaret on this issue; I totally disagree with the over-reaction and the threats to boycott the arena calling for it to be renamed. Snap out of your collective self importance and just get on with your privileged lives on the professional tennis circuit.

Welcome aboard

Only last week did I find out that my employer (who will forever remain anonymous) is reading my blog. Welcome aboard guys, I hope you find Observations in an undemocratic world an enriching journey exploring my interpretation of the world.

I cover an array of topics including business, management, travel, scuba diving, training & development, politics, the effect of the media on popular opinion, luxury goods, prestige watches, wine appreciation, workplace bullying, my MBA experiences, finance, economics, yachting, cricket, Australian Rules Football, aviation, naval power, corruption, social issues and so much more. Don't fret, this isn't all about you but my observations, especially on management and business topics are based on the case study method as espoused in MBA education.

Future posts seek to cover more horology, the scuba diving industry, contemporary management issues, strategy, human resources, finance, leadership, good food and wine. I think I might revisit corruption, workplace bullying, the abuse of power, tertiary education, training issues and of course more management failures based on personal observations from an MBA candidate seeking to eradicate workplace bullying and corruption in the workplace.

Apparently my employer (who will remain anonymous) previously "had neither the time nor the need to meet with me" to discuss the intentional breach of an industrial award registered in the Western Australian Industrial Relations Commission, but we had the time to discuss my social media profile. I can use that particular sentence because I have that in writing, much to the embarrassment to others in the organisation when I brought that to their attention.

So once again, welcome aboard, I hope your enjoy reading my blog - feel free to leave some constructive feedback in the comments section and the end of each individual post. So no need to worry, I won't be exposing the identity of my employer on Observations in an undemocratic world and I will seek to maintain the integrity of the organisation as I very much believe in the mission of both the organisation and the sector.

But always keep in mind, this is a public funded organisation and not a private company. I have a duty to report corruption and as a whistleblower I am protected under the Public Interest Disclosure Act 2003 as long as I am not making malicious accusations instead trying to constructively increase participation in this immensely important facet of workforce development.

Chinese wealth management

I was reading a Bloomberg article in regards to the Chinese wealth management industry - I was really quite surprised. Based on what was reported, the average investor is not conversant with the actual details of their portfolios but that would be reasonably normal with the majority of generalised wealth management products. What I found interesting was the large holdings of bonds, usually seen as a fairly defensive investment. More so, the second largest asset class of cash and bank deposits is very high along with money market investments. Whilst not specified, the non-standard credit assets would include property, possibly venture capital, derivatives and forex.

Not that Australians fare any better, the average default superannuation asset allocation although widely reported remains a mystery to the holders of default superannuation funds. However, what is interesting is that the average Australian default superannuation fund asset allocation varies widely as compared to the average Chinese asset allocation. Most Australian superannuation funds are heavy-weight in equities with just over half of the fund consisting of equities with a slightly higher international share allocation in the 24% to 30% range. Domestic Australian equities tend to sit in the 20% to 25% range with both international and domestic equities comprising of more than half of the fund - that's pretty aggressive. 

Bonds and cash are seen as defensive investments along with property, the other section comprises of venture capital, infrastructure, derivatives such as put and call options, warrants, futures and currency hedges. Whilst Bloomberg appears to be worried about the asset allocation in Chinese wealth management funds, the investments are relatively defensive as compared to Australian wealth management products. The real issue is the sheer size of the Chinese wealth management funds as compared to the capitalisation of the Australian counterparts, if domestic Chinese economic conditions change - that's a real issue for world markets.