Calis

Ignore the back-end to your peril
Joseph Tay
Today Online, Voices, Monday, January 8, 2007

THE power outage late last month highlighted how, in the midst of our re-invention and obsession over the next big new thing, we must ensure the basics are still intact.

All the glitz will come to naught if we can't get uninterrupted basic necessities such as power supply. Breakdowns have also plagued our trains and telcos with some regularity.

The truth is, we don't give these utilities another thought until there is a breakdown. We become suddenly mindful that things don't just work by themselves — not even in this automated age. There is a human face monitoring and intervening to ensure things work.

From the stories many in operation and support jobs tell me, it is thankless work. They are largely taken for granted in their organisations and forgotten until something breaks down. Even then, they might not still be appreciated. The breakdown may be blamed on them for not doing their jobs right in the first case.

It does not matter whether the organisation is a business, charity or the civil service. Backroom people share the common fate of performing the unglamorous toil of making things work. They are just the hands and legs of the organisation.

Sales people get the limelight and the lion's share of the rewards in performance bonuses and incentives. The backroom people who also put in the work to turn the sale into reality do not bask in glory or share in the payout.

With few exceptions, no one who had supported the private bankers' business efforts will share in the fat bonuses they will reportedly earn this year. Yet, without the efficient backroom efforts, would these bankers be able to make their deals?

In its zeal to attract and retain teachers, the Ministry of Education now finds itself saddled with morale issues of some administrative staff who feel unappreciated. While schools don't exist just so the administrators can administrate, without the able support of administration, could the teachers fulfil their roles effectively?

It is an issue laden with strong emotions in any organisation.

Years back, in a company I had worked for, the struggle between sales and administration came to a head. Administrators tried to equalise the lopsided financial incentives that sales people were given versus the relative crumbs that administration arm was handed.

Sales managers immediately retaliated by asking to switch jobs with administrators, as there were no incentives to continue in the higher-risk sales jobs, where performance was pegged to aggressive sales targets.

It is not the intention of this commentary to take sides. While it is a reality that in any organisation there is a function that invariably takes the glamorous spotlight, it is important for leaders not to neglect the rest, the backroom functions.

While praising the "stars" in the workplace, it is also important to recognise — and be seen to be doing so — those who contribute behind the scenes to make things work.

In our eagerness to get things done, we become very focused on the task. We forget to pause and appreciate the contributions our people make in the workplace. We take the clockwork functioning as a given and jump at every malfunction.

Years back, an American multinational corporation retrenched staff en masse in its US factories. Soon after an old maintenance mechanic lost his job, the production machines under his care started developing technical problems.

The disruptions and quality headaches were costly. Despite all the hard work by the engineers, the problem persisted.

The old mechanic's assistance was finally sought. He said he knew about the problem. It had always been like that. He learnt from years of working with the machines that when they began to creak, all it took were a few squirts of oil on a couple of parts and the machines would continue to function normally.

He had never reported the problem and so it never got documented — because, as he put it, no one bothered to ask about his work. It was too mundane and insignificant.

Calis

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Calis

Business Times - 31 Jan 2007

LETTER TO THE EDITOR
Crazy Horse: Entrepreneurs need to run free

I REFER to the articles 'Eng Wah confirms Crazy Horse closure from Feb 1' and 'Wrong formula for Crazy Horse' (BT, Jan 26).

On the reasons for the failure, the articles note that even when the Media Development Authority (MDA) lowered the age limit for entry from 21 to 18, it did not help - few knew that the show existed, because of initial rules that prohibited advertising, even at the airport.

Crazy Horse could only have black-and-white advertisements on the cinema pages of The Straits Times and Lianhe Zaobao, and coloured ones in The Business Times. It could not advertise in most of the mass media like TV, radio, bus stops or taxi tops. Last February, it was allowed to have leaflets in taxis, Sistic outlets, and Singapore Visitor Centres.

Why is it that the show, which is a Parisian icon and has drawn thousands to Las Vegas, the location of its second outlet, despite charging two or three times more than Singapore's $85 per head, cannot succeed in Singapore?

Not too long ago, it was the food-vans scheme which started with much fanfare that failed, primarily because the Urban Redevelopment Authority (URA) decided where and when they could operate, regardless of demand or market conditions.

Now, Crazy Horse has failed, primarily because of the restrictions on advertising and publicity.

Entrepreneurs need to be able to be free and run wild like horses, and it would be crazy for government agencies to arbitrarily decide on all kinds of restrictions. This lesson should be learnt.

The significance of the Crazy Horse saga is that it is not just another normal business failure, but, in a sense, hopefully, a final wake-up call to those who regulate businesses. The Crazy Horse failure may be a milestone in Singapore's coming to terms with truly embracing an entrepreneurial culture and spirit.

It would really be crazy, if another high-profile entrepreneurial venture fails again in the future - no thanks to maybe even more crazy restrictions.

Leong Sze Hian
Singapore

Calis

ST Forum - Feb 6, 2007
Crazy Horse keeled over for want of 'starving crowd'

THE local chapter of the Crazy Horse revue has closed. Interestingly, when it was opening, I made the comment that it would not last long in Singapore.

The commentary by Mr Frankie Chee (ST, Feb 3) asked, 'Was Crazy Horse a losing bet from the start?' I would say 'Yes'.

Most businesses started with the people thinking about all the different strategies - the retail mantra: location, location, location; the marketing strategies; the budget; the decor and renovation; the promotions, etc.

But a lot of times they just miss the biggest thing: Is there a starving crowd for this business?

A check at Far East Plaza will show that many shops keep changing hands. Here's the typical scenario:

Entrepreneur-wannabes go to Thailand, Vietnam, etc.

They see beautiful, cheap, unique things they think can be sold locally.

Enthusiastically, they decide to get a shop or pushcart at Far East Plaza, The Heeren, etc.

They renovate and decorate the shop.

They import the goods and finally open shop, only to find out that there is no starving crowd. The rent is killing them and, finally, they bail out.

Where Crazy Horse is concerned, it is the same story. just that the budget, location and everything else are bigger. Here's the familiar scenario again:

The powers that be go to France or Las Vegas.

They see the beautiful, unique Crazy Horse performance and think the concept can be sold locally.

Enthusiastically, they decide to get a big venue (a building) at Clarke Quay.

They renovate and decorate the building.

They import the concept, the dancers, etc., only to find that there is no starving crowd watching the girls strut their stuff. The rent is killing them and finally they bail out.

If there had been many, many more tourists, it might have worked. If it had opened in one of the integrated resorts it might have worked. But Singaporeans will not frequent such a place, especially with such high prices. They might go there once for the experience and never return.

After Crazy Horse announced its imminent closure, it saw full-house shows. Ms Cynthia Goh, executive director of Eng Wah, said: 'It's proof that if there's a lot of exposure for the product, it will move.'

I disagree. The people were going for the 'once for experience' experience. The scarcity factor was in play. These are not the starving crowd.

Sant Qiu

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Calis

Business Times, Executive Lifestyle - 23 Feb 2007

In search of good service

GEOFFREY EU talks to industry professionals about the standard of service in Singapore and what can be done to improve it

WHEN Day-Lin Koh went on a special dinner date to a well-known up-market restaurant a few years ago, she was expecting an experience to match the establishment's reputation as one of the most romantic places to dine in Singapore. What she got was a meal to remember - but for all the wrong reasons.

First, she was greeted with news that the restaurant's chef was away for the evening, attending a culinary awards dinner. Then, there were a few niggling issues when bread was served without butter or olive oil, and her main course was accompanied by items that differed from what was stated on the menu - something which the serving staff had neglected to mention.

The final straw came when two staff members at the serving station directly behind her began complaining loudly about a guest who had just left the restaurant - in full-blown and colourful Hokkien dialect, along with the relevant exclamation marks. Ms Koh wrote a two-page letter to the management, resulting in a half-hearted courtesy phone call from the restaurant manager that was of little consolation to her.

Not surprisingly, Ms Koh, who is marketing communications manager at the Grand Copthorne Waterfront Hotel, says she will never go back to that restaurant, even though it is unlikely she will go through the same experience again. Like many people, she has a tendency to remember negative experiences, such as lost luggage by an airline or being told by a clueless restaurant manager that the corkage charge depends on the type of wine one brings.

Both the government and the various service industries are aware of the need for Singapore to improve service standards and project an image of a destination that is at least on par, if not better than the rest of the world where good service is concerned - and recently, steps have being taken to promote more of a service-oriented culture. Last month, at the launch of a publication to highlight service excellence, Minister for Transport and Second Minister for Foreign Affairs Raymond Lim said that hosting prestigious events such as the IMF meeting last year provided an opportunity to showcase Singapore hospitality.

As part of the government's ongoing GEMS (Go the Extra Mile for Service) initiative, the Singapore Tourism Board commissioned a survey of businesses from a customer perspective. Between April and September last year some 500 companies in the shopping, dining and nightlife categories were visited by 'mystery shoppers' who compiled a magazine that listed 150 establishments that met or exceeded the criteria for good service. In total, 62 restaurants, 71 retail stores and 17 night spots made it to the magazine list. Of these, 40 establishments made a Top 40 list and were given write-ups in the magazine.

According to Sulian Tan-Wijaya, director, Service Quality Division, at STB, the purpose of the magazine is to recognise the places that set the standards and encourage more companies to vie for recognition as good-service establishments. 'The GEMS Service Leadership Workgroup has been tasked to encourage employers and service leaders to take the lead in making service competitiveness their business strategy,' she says.

'The launch of this publication is a significant step in driving home the key message of the importance of service excellence among service leaders. It celebrates their hard work, consistency and success. We are certain that individuals and organisations in the service industry will find it valuable to model themselves on these best practices.'

In his speech, Minister Lim said that 'even as we strive to enhance our service standards, other countries are improving rapidly and visitor expectations are rising'. He added: 'To remain competitive, we must strive to sustain and improve our efforts on a continual basis.'

He said Singapore is capable of developing its own quintessential Singapore brand. 'It will be associated with what we are best at - efficient, effective, friendly but not subservient service. This is something which the agencies will have to work with workers and business to put into practice. I think it will take our service culture to the next level.' To reach that level, the government will have to consider easing restrictions on foreign workers - especially in the F&B industry. In addition, employers will need to look at training and motivating staff to improve existing standards. 'As much as we'd love to have better service in Singapore, we have to be able to bring more people into the industry,' says Anthony Wong, managing director of Creative Eateries, which owns and operates some 20 restaurant outlets representing seven mid-market brands in Singapore.

Not enough workers

'The positive economic growth over the last year hasn't helped and over the last few months, it has been really tough to find workers,' says Mr Wong. 'First of all, there are just not enough people. Next, the level of English is not good enough, so it's hard to communicate with customers.' He adds: 'We are a victim of our own success - young people demand a certain salary level (between $1,200 and $1,600 for entry-level jobs) and then they go too quickly from trainee to supervisor. We may end up in a situation where it is the blind leading the blind.'

According to Mr Wong, whose family also owns 30 fashion and eye-ware stores in the retail industry, salaries have gone up considerably over the past six months. Recognising quality service is one thing, bringing quality personnel into the service industry is another, he points out. 'The only way to improve service levels is to find more people, and if locals are not keen, then we have to open the floodgates and let foreigners come in.'

The outlook is perhaps a little brighter at the high end of the industry, where customer expectations are similarly raised. 'In many ways, our service is good but we still lack product knowledge and communication skills,' says Ignatius Chan, owner of the modern European restaurant Iggy's, which is popular among some of the most discerning and demanding customers in town.

'Generally, people in the service sector are not dedicated,' says Mr Chan. 'They could be selling Prada shirts today, working in a hotel tomorrow and at the airport the next day. For super high-end products like Hermes, it's only a small selection of staff that sticks on; we need more people who take it as a career and not job-hop. They try hard to be polite but they lack professionalism and a complete understanding of their products. Clients can be very demanding but we have also come to accept mediocrity.' Mr Chan says that paying higher salaries is not necessarily a solution. 'It's the mindset that we're after.' He adds: 'In Hong Kong, the staff may not be as patient and they are a little more aggressive simply because they are trying to multi-task and be more productive - they don't baby-sit you.' Mr Chan is pleased about the overall perception of his restaurant (which is on the STB's service excellence list) but feels there is still a long way to go. 'If I benchmark it against some of the restaurants I've been to in America and Europe - they have a deep knowledge of food, ingredients and so on.'

Yenn Wong, owner of a number of trendy restaurants and Jia brand boutique hotels in the region, including Singapore, Hong Kong and Shanghai, says her staffing problems are the most acute in Singapore. 'Sooner of later, there is going to be a high demand for good-quality staff. Local people just don't have the drive - the attitude needed to be service staff is very different.'

She adds: 'Customers also play a big part - by paying the 10 per cent service charge, they expect the world.' Ms Wong adds that service staff at her hotel restaurant in Hong Kong each earn up to about HK$5,000 (S$982) per month in tips, on top of the standard service charge. 'They are motivated to work harder. As much as Hong Kong people are demanding, they are also generous to service staff, but here in Singapore where there is a no-tipping culture, it is very tough.'

High turnover

Anderson Ho, chef-owner of the nine-month-old restaurant Le Papillon, agrees that Singaporeans are harder to convince when it comes to making a commitment to the service industry. 'There are lots of training schools but the students are all going somewhere else. Service industry graduates from the local polytechnics tend to drift away from what they studied,' he says. 'The IRs (integrated resorts) will help to push the level up but to find quality, the government must relax the laws.'

In Europe, people take pride when they serve but here, it is the equivalent of being a servant - that's the general mentality, says Mr Ho. 'A major problem is that turnover is extremely high. Your guests start to complain, but it's not because the service is lousy - it's because there's not enough service being rendered to them.'

Having too few people to fill too many jobs is an endemic situation, says Beppe de Vito, owner of Il Lido restaurant on Sentosa. 'It is impossible to get qualified people at supervisor level and new players simply don't think about training schemes - they just poach and start people one week before opening.' Still, he says that while more needs to be done to motivate more Singaporeans to treat it as a career, the industry is on the right track. 'I can feel changes in the industry, but it's going to get tougher before it gets better - there's way too much happening and the workforce is not there.'

Meanwhile, the situation doesn't appear to be as grim in the nightlife industry, which requires a different type of service from restaurants. The STB service excellence survey even took factors such as crowd control at front entrances - the places where 'door bitches' reign supreme - into consideration.

At the St James Power Station, which is the destination of the moment, there are plenty of crowds to control, and plenty of service to render. With nine outlets in the complex and 350 staff to oversee, St James operator Dennis Foo has a lot of juggling to do. 'Singapore's service standards have definitely improved over the last decade, but they can be better,' he says. 'Although the labour market is tight, the different initiatives and schemes implemented by the government have created awareness among industry players to have a strong service culture.'

Before opening last year, St James sent staff to training schools for two or three weeks of intensive training. It also staggered the opening of its outlets so that employees were able to familiarise themselves with operating procedures. 'To date, I am quite happy, the staff - most of them Singaporeans - seems eager to learn,' says Mr Foo.

'In Hong Kong, there is a huge source of labour from China, but Singapore is on par if not better as we have a genuine will to improve. I'm sure our government policy will shift as demand for more workers in the service sector grows.' He adds: 'In the coming years the demand for service staff will increase and I am confident more measures will be implemented to help meet this. The challenge is not to just have quantity but quality service as well. Our service, compared to other clubs around the world, is close to being on par with the best.'

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