The Go Green Dilemma

In Malaysia, there’s so much talk about going green and use of renewable energy (RE) more to meet our electricity and power needs – be it for households, business offices and factories. The most common RE is solar. Other popular RE are wind, biogas, biomass and thermal, hydro – mostly used in large scale operations like plantation and factories.

Source: http://www.seda.gov.my/about-seda/re-programmes/

Here I’d like to discuss some about solar as it covers residential – the people. Further search on Google, there are actually a lot of solar companies available in Malaysia – more than 20! I listed some down here:

  • ERS
  • Pekat Teknologi
  • Plus Solar
  • Solar Vest
  • Ditrolic Solar
  • Sols Energy
  • Ray Go Solar
  • Solar System Malaysia
  • MAQO Group
  • Simpli Solar

Some of these companies listed above provide only for business buildings and factories, some cover residential as well. There has been slow take up rate from the residential customers, although many claims that the solar photovoltaic (PV) panel is getting cheaper.

“Solar technology has matured and costs have become more competitive. Solar PV panel prices has fell 80% since 2009,” she said, adding that this is also one reason quota for solar is no longer offered under the fit-in-tariff (FiT) mechanism.

– YB Yeo Bee Yin, Minister MESTECC, Malaysia

Upon checking, on average the price of outright purchase of the PV panel is around RM 25,000 (USD 1 = RM 4.3) for residential houses. For factories it is more because the Kw (kilowatt) will be higher.

There’s also some incentives under the RE incentives provided by the government. However the incentives will be claimed by the solar providers because they will help the customers with FREE roof suitability and installation if suitable (roof angle and access issues).

There are companies offer solar leasing package, therefore customers do not need ot pay any single cent throughout period (depend on the providers). This package is a standard leased agreement called SARE (Supply Agreement for Renewable Energy). Typically the lease will be for 10-20 years. The best part in this period, customers do not need to pay any money, downpayment or installment to enjoy the benefits. This include maintenance and warranty of the system altogether.

Source: http://clipart-library.com/download-solar-panel-gif.html

Will this reduce your electricity bill? According to most solar providers, your electricity will go lower by 5-25% on your consumption before solar. In other words, this lower bill isn’t on monthly basis once you used solar. You get to save the planet along the way! Some providers claim you can save RM 200/month for 21 years (that will add up to RM 48,000). Again, I think this kind of sales-pitch needs clear evidence or stated in the contract; because once you signed, ehem it will be very difficult to get out; perhaps? 😉

Additionally, let say, you have great roof for sun radiation and you generated more solar than you need or use, you can trade (sell) this extra power back to the provider and earn some income. This package is called Net Energy Metering (NEM) scheme. In NEM scheme as explained by the Minister of MESTECC, YB Yeo, there’ll be no price difference in buy and purchase of solar tariffs.

Source: https://www.simplisolar.com/site/resources/what-is-net-energy-metering-nem/

However, as a customer I still have concerns with the design of the contract. Especially it is about getting into contract for 10-20 years, it is actually very long. As it is, car hire purchase is long enough (7-9 years). My challenge is I couldn’t find the exact figure of the fine details to these questions:

  1. What if the solar installed didn’t bring much value in savings for me? Can I change back to normal power supply?
  2. How much supply coming from solar do I need as residential customer? Is it 100% or 80%? How much do I need to pay for the additional cost difference for normal power supply?
  3. What if the solar provider close down? What is my risk?
  4. What if I wanted to sell the house? Will my solar agreement stuck there to new tenant? Or I can take it with me to my new house?
  5. Since the leasing is with Third Part Operator (TPO), what is the cost of change of tenancy (COT)?
  6. How much do I need to pay to get out of the contract?
  7. Does this package have insurance covering the system?
  8. Is there any fee to become NEM provider? Because supply and sell back the power is two different component, am I right to think this way?
  9. What if the person who sign the contract passed away? And I have to sell the property and get out of the solar contract, how do I do this?
  10. Over 10-20 years in the contract, the PV panel price is going down lower and becoming more efficient, would the customer get upgrade included in the package or stuck with the old technology?

“Consumers want to go green, but above all we want to save money.”

– Consumers
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Corporate Innovation Pain Points

*First appeard on LinkedIn in April 2019

Corporate Innovation Program is the buzz word these days for very good reason. The awareness and action of many companies responding to change is getting better because “innovation” a must have agenda for top management and high level discussion including nations alike. The focus of innovation is “awakened” in the last few years so much so the word leadership has become low-key. I for one advocate leaders with big title if they couldn’t innovate their days are numbered or they should be shown the door. Run!

Innovation for it’s best intention solving pain points of the organizations, also carry it’s own inherited pain points. Well, pain points may sound negative. However negative it may sound, it is almost impossible to resolve it indefinitely before any launch of corporate innovation projects. The pain points highlighted are meant to be aware of, taken into consideration and minimized its negativity impact when possible. Let the goals of the corporate innovation be our guiding light, not the pain points. After all, no pain no gain.

Here are the Five Pain Points:

1.Departmental / Divisional Fiefdom

Fiefdom is there not for a good reason, definitely to be tear down in corporate innovation. The fiefdom stems from who owns the corporate innovation project. It could be the IT, Sales, Human Resource or CEO’s office. This way the budget can be better spent and realized, it is just the project impact is risked. Fiefdom mindset drags collaboration on its feet so much so other department rather sees the project fail than doing well. Fiefdom limits the upside potentials of any corporate innovation project.

Steve Ballmer, formerly CEO of Microsoft once said, “After all the things we want to do is aligned, the final piece of the puzzle is how we work together.” The differences of views and opinions are critical to growth, yet, there are also the stumbling block of productivity when not handled well or fully understood.

2. “Seen All Done All Nothing New” Top Management

It is common these days to include diverse at the top management line up. Diversity is key and we all know that diversity has to be worked on and build. It wouldn’t come by itself. There’s a lot of trust building, empathic engagement and sheer intolerance of incompetent senior management. Their backgrounds while may be helpful on their CV, when put to work they find themselves unable to take differentiated point of views and lack of willingness to change. They like the glory days of their past from other workplaces and using force (and bootlicks) to have it their way. New ideas shunned, opposing views silenced and change is too big to address because they have “seen all done all nothing new” mindset. They block any attempt to change by hoarding resources, veto decisions and play the upper hand with the Board or shareholders.

Top management that deter collaboration shouldn’t be in the line up at the first place. As we grow into leadership role at higher level, it is very much less about us, it is about them; our customers and our team members.

3. Only Pedigree Can Give Ideas

In this kind of organization, ideas are treated sacred. Only certain people deemed can give “great” ideas and only selected alumnus from certain universities can voice their opinions. The pedigree culture blocks other people from participating in what matters to the organizations. To make matters worst, pedigrees get rewarded handsomely that further reinforced unhealthy behaviours among peers and employees alike.

Developmental talent programs such as top talent sometimes create this unwanted differences in the day to day operations. The waiting culture seep in where without the pedigree there’ll be no decision of moving forward. No one is willing to make mistake because of huge career setbacks might affected their standing in the company and future development. The behaviours also could be manifested in negative ways such as bullying, narcissism and abuse of authortity.

4. Customer Voices Not Heard

With all the good business strategies and goals for the customers, there’s huge hesitation to talk to the customers to get feedbacks, opinions and suggestions. By the way who supposed to do it? Some say marketing, some say IT or procurement, maybe human resource? Everyone should do it. Sometimes the organization pressuring those “little” staffs at the counters with huge responsibilities to get feedbacks from the customers. Challenge is those little staffs are receptionists or call centre agents that have little means to understand the complexities of interactions happening with the products and services from across the organizations.

Besides, they also have limited authority to do customers recovery or beyond to directly attend to customers needs and wants. The survey provided with checklist won’t be able to extract feelings and emotions of difficulties of getting the services done.

Additionally, there is tendency to lead the customers to tick surveys quickly with long winded survey because customers are always in a hurry. Not knowing their pain points, struggles or hear their stories could lead to organization that is myopic of the challenges faced by their customers. This also applies to internal customers that are using our processes to get things done.

In some organizations, the quality policy used is different to meet certain standards, such as an independent Procurement department, whereby only the Procurement is certified with ISO 14001 and the rest do not. It is a mess!

5. Tools Before Strategy

It used to be Porter’s Five Diamonds, then Organizational Development, then Agile, then Lean, the Six Sigma, then Blue Ocean Strategies, then Design Thinking, then Heart Thinking and so on. These are tools. Someone said, “A tool and a fool seldom differ.”

Organization should put their business strategies above anything else. What do we want to achieve? How do we get there? What is our value? Who should be our target customers? What capabilities that differentiate us to deliver our value proposition? These are strategic questions called Strategic Five by strategy+business knowledge portal – let’s get down to basics.

Our answers (or no answer!) to these questions will help determine the “mix” of tools you might need. No one tool fits all strategic needs of any organization in today’s environment. One thing for sure, our people and workforce needs to learn more than one tool to make them nimble, agile and empowered in decision making when interfacing with the customers. Always remember, “structure follows strategy”.

Brickbats? Please email to donkhairul@gmail.com Thanks!

Top Five Great Ideas in 2017 From “The Field”

In 2017, my team and I met more than 1,000 people from multiple workshops throughout the year when we ran our flagship training,  Design Thinking Innovation workshop. The significance of design thinking workshop is in the fieldwork, which I’d like to call as ‘The Field”. During the fieldwork, the trainees last year interviewed between 2,000-3,000 people last year.

From those multiple workshops we had, they generated lots and lots of ideas. The following were the Top Five Great Ideas in 2017:

 

1.Student loan (PTPTN) becomes the employer’s benefits for employees. 

Most employees, young executives particularly carry substantial student loan – around RM 30,000 – RM 45,000 (locally known as PTPTN). Screen Shot 2018-01-01 at 8.58.49 PM.png

*Source: iMoney

These loans were part of their commitment when they study in local universities. Part of the deal with PTPTN, once the students graduated they need to repay back to PTPTN. Somehow this didn’t happen as effective as both parties wished, PTPTN overall repayment rate is very poor, only 3% .

What if the PTPTN loan is taken over by the employers as part of employees benefits? It could be carve out from the insurance provision or medical benefits. Someone from Compensation & Benefits (ComBen) in HR department could advise this better. Or maybe if you have thousands of staffs with PTPTN loan, it certainly could amount to few millions RM, how about having a company to manage this loans? Well, something to think through.

 

2. Children bank account package just like we used to have 30 years ago.

Wither children bank accounts in our local bank? You probably noticed that many banks these days do not really have an attractive children bank account like we used to have aeons ago such as Yippee, Bank Bumiputra and Tabung Haji (where you get a replica of Tabung Haji building as your coin box). I opened bank account for my kids recently and few years ago, then I received a link via SMS from the bank – excited then I clicked the link – the I was upset – because it was a bad link (automated from their system but poorly maintained either by the marketing department or webmaster – yes let’s start the blame game!)

From “The Field”, we found a lot of respondents wondering why the bank no longer offer beautifully designed children bank account. Actually later I found the answer from some senior bank managers who said, “deposits are outdated, banks prefer offering financing these days.” I was rather upset because the answers we “soooo like bankers”. LOLS. Haven’t they heard Fintech? LOLS

What if the local bank could revive and rejuvenate children bank accounts once again? Make investment and saving as part of everyday lingo in the family. These days, saving and investment is missing in children’s vocab, all they know is buying this and that. I know some local banks offer children bank acccount, most of it dull. Make it fun and exciting please!

 

3. Investment account that’s accessible by “normal and average Joe”

Normal and average Joe has only saving account. Many roll up their eyes when we talk about investment products from banks. They either just haven’t heard about it from the bank or they just said the bankers tell them these investment products are only for the HNWI (high net worth individuals).

Again, I was rather upset because the answers we “soooo like bankers”. LOLS. Haven’t they heard Fintech in Wealth Management? LOLS

What if the bank could give access to their simple product that usually require RM 100k deposits from one HNWI to “100 normal people and average Joe that have RM 1k for investment and wealth creation?”

product-discoverability4

Source: Centric Digital

 

4. Make Top Management (Senior Vice Presidents and C-suites) teaching in the company

The knowledge gap in the company (especially tacit and implicit) is growing wider. The gap is widely seen between the Top Management and Middle Management to Entry level Executives could only be fixed not with hiring external consultants or run training programs after training programs or coordinate leadership development programs after programs, ratther companies have to start to look for the solution internally.

The challenge is often, the management is asking the wrong question and always in a hurry to look for the right answer. The question they usually asked is “why our knowledge gap is getting wider?” which is looking for the right answer. Instead the appropriate question should be, “how to accelerate the spread of knowledge between the management faster?” which is to explore possibilities. One of the popular ideas generated in our workshop is to “teach the top management how to teach their managers”.

What if we could teach leaders how to teach their strengths and transfer their skills? Further research would validate this idea that General Electric (GE) have done this many years ago via Crotonville University.

Things+Leaders+Do+GE_s+Jeff+Immelt+on+the+10+keys+to+great+leadership.

Source: Slideplayer

5. “Dress down” day to Productivity

In Malaysia, the proliferation of new generations as the workforce is already between 50-70% at the executives and junior managers level. Some companies that have thousands of employees, could save money from providing uniforms for white collar executives and junior managers. In some companies, the top management still frowned upon the concept of “Dress down” day. The concept allows the employees to dress with anything they like within the formality guidelines, although some companies have little guidelines, having something to rely on will do more good than harm.

The new generation prefer freedom of expression and they do have nice collection of wardrobe simply because fashion these days are cheaper and with so many options. Therefore allowing them to “dress down” in most of the days, it will give them the “extra benefits” to stay in the company and would boost their morale and consequently productivity while working in the organization. In other words, when you allow them to wear jeans, slip on shoes, hoodies etc, they will work harder.

In our interviews with the millenials respondents, that was the feedback and the great idea was “Dress down day”. Check out this analysis from NY Post on “Dress down and productivity”.

What if “Dress down day” could boost productivity and increased morale of the employees, would that save the company in medical bills and unproductive work habits? Of course, save of the uniform tailoring too!

dress-down-day-or-no

Well, those are the Top Five Great Ideas in 2017. I will be sharing more stuffs and great ideas from “The Field” from my LinkedIn-Khairul Anwar. See you there!

Brickbats? Email me at donkhairul@gmail.com