Professor Tommy Koh, Chairman, IMAA Awards Council

Distinguished Guests, Ladies and Gentlemen

We live in an uncertain world. As French writer, Paul Valery, put it: "The trouble with our times is that the future is not what it used to be".

The political and economic climate today is characterised by changes and uncertainty. This is the new normal. Rather than waiting for the economy to return to ‘steady-state’, businesses today have to find ways to operate successfully in an uncertain world; because the ‘steady-state’ of the past may never return.

A recent Accenture survey of some 500 managers in the United States shows that managers in leading organisations focus on strengthening their position for growth and competitiveness with uncertainty as the new normal.

In uncertain times, we must pay more attention to fundamentals to ensure competitiveness and productivity. Ultimately, the creation of wealth depends on the effectiveness of organisational strategies and practices. Michael Porter refers to this as 'microeconomic competitiveness'. Wealth is created at the microeconomic level -- in the ability of companies to identify new opportunities, create value and capture these values in innovative ways.

While the government shapes the business environment through policies and infrastructure, our companies must enhance their entrepreneurial ‘killer’ instincts and craft effective strategies to remain competitive, highly productive and relevant.

What are some good management practices? The Evergreen Project, a ground-breaking five-year study of 160 companies by Harvard & McKinsey reveals some fundamental management practices for superior business performance in the new age. The study, published this year, reported that companies which outperformed their peers excelled in eight management practices – strategy, execution, culture, structure, talent, innovation, leadership and partnerships.

The study suggests that strategy will work if it is clearly defined, communicated and understood by employees, customers and shareholders. Consistent operational execution is fundamental to business success. Culture is about maintaining high expectations in performance. In winning companies, structure is demonstrated by cutting bureaucracy and simplifying work. Ability to retain and attract talent, responding to change through breakthrough innovations, selecting outstanding leaders and leveraging on partnerships are all practices of winning companies.

Many of the practices highlighted in this recent Evergreen Project are also the criteria in the Singapore Quality Award (SQA) business excellence framework since 1994.

This year, the World Competitiveness Yearbook ranked Singapore 14^th in availability of competent managers. This is a significant decline from Singapore’s 7^th position five years ago.

In a survey by SPRING last year, three-quarters of CEOs agree that the number of competent managers has declined in the last five years. An important finding is, the set of managerial skills needed in the new economy is much broader.

More than ever, managers must know how to manage knowledge workers. They need team-building skills to tap the ingenuity and talents of individuals, and capitalise on the diverse strengths of team members to unleash their creativity.

Second, managers must know how to manage a complex and fast-changing environment. They must have the skill set to facilitate and manage innovation and change.

Third, managers must know how to manage relationships in a business environment that is increasingly networked and interconnected through technology and globalisation. The skills to manage across geographical and cultural boundaries are critical because now there is only one market – the global market.

Managers are the key to transforming organisations and the economy. The challenge to re-making the economy is to boost the capabilities of Singapore enterprises and grow more world-class organisations. For this to happen, we need managers who can nurture world-class companies and manage a world-class workforce.

To step up the development of managers, I am pleased to announce that SPRING will launch a Management Excellence Programme. The programme comprises four key components -- development, incentives, partnerships and model development.

The development component will address the need for training to enhance the capabilities of managers to implement the business excellence framework. It will cover the five dimensions of organisation excellence -- business, people, process, service and innovation excellence.

The second component is incentive schemes, to encourage managers to participate in the development programmes.

The third component is partnerships. It seeks to forge alliances between companies and training providers to develop and deliver management excellence training programmes.

The fourth component, model development, will identify outstanding managers to serve as role models of management excellence. This is where the International Management Action Award comes in. Seminars will be organised for award winners to share best practices in leadership and management.

The target participation rate of the Management Excellence Programme is 20,000 managers by the year 2010. Through these managers, the programme will be able to impact 60% of the workforce and contribute to better staff development, improved work processes and superior business performance.

Tonight, five individuals will be recognised for their outstanding management skills and leadership. Through their management actions, they have overcome adversities and challenges during these uncertain times. They are the role models of management excellence. My heartiest congratulations to them.

I wish you a pleasant evening. Thank you.

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