Saturday, December 29, 2012

CIMB Selling Off Insurance Arm

 


The sale of CIMB Group Bhd and British insurer Aviva plc's Malaysian insurance joint venture (JV) could fetch up to US$1.2 billion (RM3.67 billion). CIMB's 51 per cent controlling stake and Aviva's 49 per cent stake is said to be worth US$500 million each.

It was learnt that Aviva's 49 per cent stake would cost another US$200 million as it includes a potential strategic alliance agreement between the winning bidder and CIMB on top of the stake sales.

The deal would be the second biggest transaction after ING sold its Malaysian life insurance unit to AIA recently for US$1.68 billion.

The strategic alliance will allow the winner to distribute bancassurance products through CIMB Group's subsidiaries across the region. The JV partners sell life insurance and takaful products via CIMB Aviva Assurance Bhd and CIMB Aviva Takaful.
CIMB has become one of the top regional banking groups in the region with an impressive network. It has a full banking business across Malaysia, Indonesia, Singapore and Thailand.

Recently, the group completed the acquisition of Philippines Bank Of Commerce (BoC), which expanded CIMB's retail network to 1,239 full branches, maintaining its largest branch footprint in Asean.

CIMB Group is in nine out of 10 Asean nations - Malaysia, Indonesia, Thailand, Singapore, the Philippines, Cambodia, Brunei, Vietnam and Myanmar. CIMB wants to raise its overseas revenue contribution to 60 per cent by 2015, and selling insurance products would expand its retail-based fee income substantially.

In 2007, when Aviva paid RM500 million for its 49 per cent stake in the JV, it included a long-term bancassurance agreements with CIMB.

However, the JV failed to live to its potential. It is believed that the sale of CIMB Aviva JV is a two-horse race between Manulife Financial Corp and Sun Life Financial Inc. Other suitors that have shown interest are Prudential, AIA and Khazanah Nasional, which made a late bid.


 

Malaysian Insurance Industry 2013

Malaysian analysts has projected a high single-digit growth in premium income for the insurance industry next year. The growth would be supported by the growing affluence amongst the middle-income population, healthy consumer spending power and an under-penetrated market, compared to that of a developed nation.

In addition, innovative products through channels like bancassurance and agencies have enhanced the profits from life insurance. Industry's growth will continue to outpace the gross domestic product growth as the government has pledged to increase insurance protection of the low-income household segment.

Asian region countries are facing pressure to elevate their respective minimum wage and should Malaysia follow this trend, it should be able to channel more disposable income to purchases of insurance policies.

Takaful segment is expected to continue registering a high double-digit growth of around 20 per cent through 2014. Insurers increasingly identified takaful as a high-growth profitable segment and with a penetration rate of 13 per cent for family takaful, it indicates the latent potential for takaful versus conventional life insurance's 55 per cent.

It added the takaful industry is still at an early stage of development with growth expected to outpace the growth of conventional insurance. The growth is expected to be supported by the increasing awareness to diversify takaful from being a niche segment catering to Muslim communities, enhanced regulatory reforms to support takaful infrastructure and identifying common grounds or workable solutions for issues faced by Shariah committees and industry leaders.

Factors such as stronger participation and liquidity in sukuk and Shariah-compliant instruments to support investment income and strengthening takaful and retakaful capacity will enhance takaful growth.

Tuesday, December 25, 2012

Thailand Automobile Industry

The Federation of Thai Industries (FTI) has revealed that a record 256,581 automobiles were produced in the country last month - the highest since car production began in 1961, reports the Thai News Agency. This represents a year-on-year increase of 982.85% and a 1.75% increase from the month before. FTI spokesman Surapong Paisitpattanapong cited high demand after last year’s massive floods as a contributing factor.

161,768 of this record production number were sold in the country and the rest were exported, said Surapong. The spokesman also revealed that in the first 11 months of this year, Thailand’s auto production for domestic and export markets totalled 1.29 million and 941,351 units respectively.

Total Thai vehicle production is projected to hit some 2.45 million units by the end of the year, 2.5 million units next year and three million units by 2017, allowing the Kingdom to become one of the ten largest car producing nations in the world, added Surapong.

Thursday, December 13, 2012

Takaful Iklas Medical Plan

Takaful Ikhlas Sdn Bhd aims to achieve RM66mil in contribution from its health insurance products for the financial year 2012/2013. This compares with RM41mil in the financial year 2011/2012.
Since its launch, the ChoicePlus health insurance products have more than 14,000 policy holders from about 19 corporations

“Our collaboration with the National Heart Institute (IJN) and several other hospitals, will act as a catalyst for our efforts in achieving the target through our ChoicePlus product,” executive vice president Wan Mohd Fadzlullah Wan Abdullah said.

He was speaking after signing a memorandum of understanding (MoU) with IJN here yesterday. Under the MoU, IJN will function as a strategic partner and panel hospital, for the medical card offered by Takaful Ikhlas under the ChoicePlus brand.

ChoicePlus, introduced in September, is a medical aid card targeting all employers in Malaysia for the purpose of looking after their employees' health and welfare. At the same time, the card helps the employers manage the escalation in their medical costs.

In the collaboration, IJN will work with Takaful Ikhlas in its promotion activities, including giving health talks and health check-ups. Cardiovascular disease was the foremost cause of death globally, including in Malaysia, and was expected to increase further with an aging population, an increase in diabetes cases and a unhealthy life-style.

Thursday, December 6, 2012

New BAFIA Act

The new Islamic banking and Takaful Acts, currently undergoing legislative process towards its enactment, will be effective next year, says Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz.

It has already gone for first and second reading in Parliament, she said, adding that it would be called the Islamic Financial Services Act and Islamic Finance and Takaful Act.

"Right now the industry is covered by the Banking and Financial Institutions Act 1989 (BAFIA) and the Islamic Financial Services Act which will come into operations...we expect next year, " she told reporters on the sidelines of the final day of the Eighth World Islamic Economic Forum (WIEF) here today.

Earlier, in her keynote address, she said this new legal framework would not only streamline the legal requirements across sectors but would also ensure that the law was reflective of the nature and features of Shariah contracts.

It would also ensure that the degree of regulation would commensurate the level of risks that Islamic financial institutions, markets and products pose to the overall financial system, Zeti said.

"The greater clarity on the legal and prudential requirements underpinned by Shariah principles will enable participants of the Islamic financial system to align to their practices and expectations accordingly when undertaking Islamic financial business and transactions," she said.

The central bank Governor said while Islamic finance practitioners and scholars continue to draw from the source of fiqh muamalat to create new and innovative instruments, the legal framework needed to be further strengthened to ensure alignment with new market developments.

This is to ensure that it continued to lend certainty and predictability to innovative products and financial transactions, she said.

Furthermore, as Islamic financial activities venture beyond national boundaries, the development of legal frameworks that was facilitative of cross borders transactions was pivotal, she added.

Monday, November 26, 2012

Move Up The Chain

Here are 7 ways to help rising stars make sure they aren't shot down or overlooked when it comes to being singled out as a future leader...

BE RECEPTIVE
Can you take to feedback and constructive criticism? "You will get staff members who are really vocal about what they have achieved or have done, but when you give them feedback, they reject it," says Busine. That's the mangers cue to reject you as a potential leader of the future...

SOLVE PROBLEMS, DON'T CREATE THEM
Great employees show initiative rather than just sit back and hope someone else will solve the issue for them or give them a step up. Ask your boss if you can become involved in new projects, get onto training programmes and be exposed to how management works.

BE AGILE AND OPEN
Do you have an aptitude for learning new skills, technology and programmes? "Managers should be looking for learning agility here," says Busine. "They want people who can learn quickly and adapt to new environments."

KNOW WHAT TALENT MEANS
Try to get a full understand of what talent actually means to the organisation you are working for. Ask your boss or the HR department to give you information on what is valued and what skills they believe the company will need in the future.

AIM FOR BALANCE
Getting results is great, but not if it is at the expense of the values of the organisation you are working for. "An employee may get results, but they could be leaving a trail of disaster," warns Busine.

THERE'S NO ‘I' IN TEAM
If you want to be a future leader, then you need to show you are a team player; share your success, give credit to others, be inclusive and don't blame other people for failures. You will be demonstrating to your boss that are good at building relationships and it will also help to build your good reputation too.

BE COMPLEX
Can you deal with complex issues and problems? You may know that you can, but you need to demonstrate that to your manager if you want to move up the chain.

Thursday, November 22, 2012

Sony & Panasonic Is Dying

Ratings agency Fitch cut the debt ratings of Japanese consumer electronics makers Sony Corp and Panasonic Corp to “junk” status, citing weakness in their businesses. The downgrades deal a further blow to the floundering Japanese tech giants which have been facing weak demand and fierce competition from Apple Inc and Samsung Electronics.

A strong yen and bumps in China, where growth has slowed and Japanese goods have been targeted in sometimes violent protests recently, have also weighed on their earnings. The credit rating agency today downgraded Sony by three notches to BB-minus from BBB minus, saying meaningful recovery will be slow.

“Fitch believes that continuing weakness in the home entertainment and sound and mobile products and communications segments will offset the relatively stable music and pictures segments and improvement in the devices segment which makes semiconductors and components,” it said in a statement.

In a separate statement, Fitch cut Panasonic to BB from BBB-minus, a two-notch downgrade, citing weakened competitiveness in its TVs and display panels as well as weak cash generation from its operations.

Last month, Panasonic cut its forecast and warned it will lose close to US$10 billion (RM30.61 billion) in the year to March, as it writes off billions of yen in tax-deferred assets and goodwill related to its mobile phone, solar panel and small lithium battery businesses.

Ahead of its earnings revision, Panasonic won US$7.6 billion in loan commitments in October from banks including Sumitomo Mitsui Financial Group and Mitsubishi UFJ Financial Group, a funding backstop it says will help it avoid having to seek capital from credit markets.

Rival Sony made a small operating profit in the July-September quarter, helped by the sale of a non-core chemicals business, and kept its forecast for a full-year profit of US$1.63 billion.

But the two companies, along with Sharp Corp, racked up combined losses of US$20 billion last year, leading them to have to axe jobs, sell assets and close facilities.

10 Reasons - Get A Life

10 reasons why we need life insurance.

To replace lost income for your family- The most obvious reason why we need life insurance is to provide money to replace our income if we die so that our families can maintain their standard of living. Even in two-income families, the loss of one income can be overwhelming without adequate life insurance.

To cover burial and funeral expenses- Even if you don’t have family to provide for, you still need life insurance to pay for your burial and funeral so that you don’t financially burden adult children, siblings, or others with those costs.

To pay medical expenses associated with your death- Unfortunately, many deaths are prolonged and a mountain of medical bills can accumulate.

To pay off a mortgage or other debts- Medical bills aren’t the only debt you need to worry about. A life insurance death benefit can allow your surviving family to eliminate monthly house payments, car payments, credit card bills, or other debt obligations.

To provide money for settling your estate- If there is an estate to be settled, death benefits are paid immediately upon death, so money will be available to pay costs related to the estate (e.g., taxes) while it’s being settled.

To leave an inheritance- A life insurance policy is a great way to leave money behind for your family or for a charitable cause. Unlike capital gains, death benefits are not usually taxable.

To provide for future needs of children- A life insurance policy can supply money for children to go to college. Or, in the case of special needs children, it can provide for ongoing care and living expenses.

To provide a source for emergency cash- Many insurance policies allow for cash accumulation, from which you can borrow. Although this borrowing will reduce your death benefit, you may want to have the option if a personal financial crisis arises.

To maximize your pension- When you retire you will likely be given an option to receive a higher pension in exchange for allowing the pension to stop when you die. With a life insurance plan, you can eliminate the need for an after-death pension, freeing you to select the higher-pension option.

To allow for business continuity- If you own or co-own a business, then life insurance that benefits the company is a way to protect the company’s future in case you die. The same issues that apply to families apply to businesses—if a vital income creator dies, there needs to be money to make up for the loss.

Tuesday, November 20, 2012

3 Types Of Friend You Dont Need

The three types of people to invite out of your life:

Energy vampires. Some people just wear you out; you feel more tired and stressed, less vital after interacting with them. These folks seem to believe that the main job of their friends and colleagues is to help them feel better. I once had a friend who required hours and hours of “processing” – his pain, difficulty, emotional upheaval, the unfairness of his past life: everything needed to be gone over ad infinitim. Sadly, no matter how deeply you listen, no matter how much counsel you offer, no matter how much you put your own needs on the back burner to support these folks, it will not be enough. Think about the friends and colleagues who consistently take more from you than they give back, and ask yourself why you’re still offering yourself to be sucked dry.

I Me Mine: Someone who expected much more from others, on a daily basis, than she was willing to give. For instance, she had no problem asking someone to babysit for her child, or watch her house, or run an errand for her…but when it came time to reciprocate, somehow it just never seemed possible. When she came to visit, everything had to be oriented to accommodate her: the foods she required, the quietest room with the proper light, the cats farmed out to friends because of her allergies. No such accommodations were possible when others visited her. “I Me Mine” people are the center of their own universe, and if they’re in your life, you are always going to have to work around their needs and preferences. Collaboration, reciprocity and give and take are not part of their vocabulary. Do what you can to minimize your interactions with these folks (although they may let you know in no uncertain terms that you’re being unreasonable or unfair not to be available to fulfill their every whim).

Liars. Fool me once, shame on you. Fool me twice, shame on me. Fool me three times – why are you still on the list of people whose calls I return? If someone is consistently unreliable, or tells you things that aren’t true, or says one thing to you and another thing to someone else in order to protect themselves….cut them loose. Liars are the worst. Energy Vampires and I Me Mines are a pain and make your life more difficult – but Liars can create honest-to-goodness legal and moral problems.

The great thing to realize is that you actually have the power to do this. You don’t need have to these people in your life. You can kindly but firmly minimize your interactions with them. And that frees you up to invite wonderful people into your life.

How to Gain Trust From Employees

All great leaders know getting there is the challenge, of course. Here are 5 behaviors for leaders and hiring managers to adopt when struggling to keep employees happy and loyal:

1) Tell the truth. Not everyone is a star. Pick out those with leadership or other valued talent potential and nurture them. This will come back to the business as these individuals, in turn, nurture other workers.

2) Communicate roles and responsibilities. Provide a path to success not only for those with leadership promise but for all employees. Sometimes this will mean difficult changes, but remember the most important skill of a leader: never surprise an employee with bad news. Have a development plan for all, and a get-well plan for those whose performance lags. Make sure everyone knows the plan.

3) Create a workplace culture that values real people relationships. For many employees, workgroup relationships and relationships between managers and workers drive engagement and loyalty more effectively than foosball machines, logo T-shirts, and Thirsty Thursday gatherings.

4) Be fair and open. This does not mean treat everyone equally – it means have transparent processes for managing and leading. Employees are more likely to respond positively to change when the process used to manage change is fair.

5) Model the behaviors you seek. Just as the headmaster at the high school did, accept your responsibility as a leader and act with engagement, commitment and responsibility. Do this every day.

Each of us possesses skills, strengths, talents and flaws. Each of us seeks to belong, to be engaged, to relate to those around us. Loyalty is built on relationships, shared understanding and trust. Engagement and commitment require loyalty, shared goals and fair treatment. Don’t take loyalty and engagement for granted – create a remarkable culture where there are possible and rewarding outcomes of the workplace.

Engaged Leadership


               
Being a socially-engaged leader may not be an innate skill for many leaders, but it is increasingly necessary as the multi-generational workplace puts more strain on corporate cultures and social media is opening up channels to “what it’s really like to work at this company”.

Without further ado, here are five skills social leaders possess – and which detached leaders should add to their management repertoire:

1) Sensitivity to non-verbal cues. A skilled social leader does not rely on one form of communication, but practices all – verbal, written, non-verbal, viral, and so on. Being sensitive to non-verbal cues is difficult because it requires a leader to have a well-integrated personality – to understand where her issues start and stop. I’m not saying you have to be a paragon of mental health, but you do need to be able to shut off the noise in your own head long enough to read people and understand what’s going on with them (at a meta level, of course.)

2) Socially interactive. You don’t have to know everyone’s name or how many kids they have, but you do have to be adept at interacting at a social level. If your CEO says ‘Hi’ to everyone but his, her eyes say ‘Stay away’. This person is not comfortable with social interactions and thus is unaware of how managers and employees are thinking, feeling and reacting.

3) Shared sense of value and purpose. People join companies for lots of reasons, but what’s more interesting is why they stay. They stay because they share the values, the purpose, the mission and vision. If you’re a leader and you don’t share your sense of the company’s value and purpose, you’ll be doing a lot of remedial recruiting.

4) Socially committed to a building an engaged community in the workplace. Okay, committed is not an S skill, but what I’m driving at here is the importance of social communities and social media in today’s world of work. Paternalistic managers, top-down leaders, sometimes have trouble with this skill, but it’s critical. Your company is no longer in a bubble, it’s in a social sphere where online communities can influence business results and your company reputation – even, perhaps especially, when they’re not your customers. Is anyone in your company tweeting, blogging or creating social community? Is it even encouraged? Are you blogging as a leader figure?

5) Sincerely interested in your employees, your social talent communities, your environment. You can learn some skills and fake others but it’s tough to fake sincerity. I’m sure some will argue it doesn’t belong on this list, since it’s a personality attribute, not a skill per se. But for me, sincerity is what makes the difference between a leader and a task manager. If you’re not sincere you’ll do things which might make business sense but which will eventually backfire – as did the CEO I mentioned earlier. Bringing in new tech talent made sense, but neither the CEO nor the CTO valued sincerity or honest communication, and now the company is paying a heavy price.

Social engagement is not a management overlay on a toxic culture; it’s not a Band-Aid. It’s a way of thinking about business, and doing business, in a socially aware and engaged fashion using the power of social networks and communities to relay your personal leadership brand, your employer brand and your employee brand. It’s how the world of work is today, and how it will be in the future. So engage! Make the move to socially-engaged leadership. No time like the present.

Monday, November 19, 2012

Australian - Under-Insured

AUSTRALIANS are putting themselves at great risk by failing to take out insurance to protect their families if they become sick, injured or die. A study has found women fail to plan their insurance cover before starting a family, and many do not have a policy for themselves or their partner. The Westpac Women Insurance Survey, to be released this week, reveals six out of 10 women find insurance complicated and do not have life insurance cover.

Because superannuation has a component of insurance in there, people think their families are covered and that's not right. Insurance just keeps getting put aside because they feel it's too complicated and too expensive.
There are several types of insurance that can cover policy holders at critical times, including life cover, total and permanent disability cover, trauma cover and income protection. 95 per cent of Australians do have adequate insurance.

Annalise Law, managing director of marketing services company The Kanga Group, was diagnosed with thyroid cancer at 24. The 35-year-old says her decision to take out trauma insurance, which pays a lump sum in the event of a critical illness, helped her get through the ordeal. She received a one-off payout that helped her during her recovery.

"Literally 90 days after I took out trauma insurance, I found out I a lump in my throat," Law says. "If you have dependents or assets, you must have life insurance. If you are leaving behind a spouse or children, you don't want them to be grieving you and they are worried about finances."

The Westpac survey found 26 per cent of respondents without cover say they could not afford the premiums. However, people can often increase their life insurance cover within their super fund, with the premiums effectively paid by their employer contributions instead of their household budget.

"About 83 per cent of Australians will insure their cars but only 23 per cent will insure their ability to earn an income. When you look at the value of a car, it might be $30,000 but an income might be worth millions over your life."

Tuesday, November 13, 2012

Innovate, Inspire & Delegate

There are many different ways to lead. CEOs with markedly divergent styles can be successful in different ways. The same leader will often adopt different styles in different circumstances. There is no one correct way to lead or manage. Ultimately the right way is the one that works for you and for the organization in delivering the goals you set out to achieve.

Let’s contrast two extremes of leadership style that I have designated as the command and control leader and the innovative leader. The command and control leader is goal-oriented, authoritative and decisive. He or she is well suited to a structured regime with clear tasks. The innovative leader, on the other hand, is better suited to an ambiguous or fluid situation. He or she is much more focused on creativity, innovation and helping the team to find new ways forward.

The command and control leader…The innovative leader…
Leads from the front.Leads from the side.
Directs.Inspires.
Checks and controls.Trusts and delegates.
Improves effectiveness and efficiency.Finds new approaches.
Thinks he knows best (and often does).Harnesses the abilities of others.
Has a strong sense of direction and purpose.Has a clear vision and communicates it.
Prioritizes operational over strategic issues.Prioritizes strategic over operational issues.
Gives directions and orders.Asks questions and solicits suggestions.
Treats staff as subordinates.Treats staff as colleagues.
Is decisive, often without prior consultation.Ponders and solicits input before making decisions.
Builds a team who can execute policy and implement plans.Builds a team who can create and innovate.
Instructs.Empowers.
Hires based on experience, track record and qualifications.Hires based on attitude, creativity and latent capabilities.
Discourages dissent.Encourages constructive dissent.
Cares about results above all.Cares about ideas, peoples and the vision.
Promotes himself as the leader and figurehead.Shares exposure and prestige with the team.
Encourages action, activity and work.Encourages ideas, innovation and fun.
Rewards performance.Rewards entrepreneurial action.
Is numbers-oriented and analytical.Is ideas-oriented, analytical and intuitive.
Sees technology as a means to do things better, faster and cheaper.Sees technology as a means to do things entirely differently.
Minimizes risk.Takes calculated risks.
Abhors failure.Is comfortable with failure.

It may appear that I am painting one of these characters as a saint and the other as a sinner but it is more complex than that; each has a role to play. There are times when you need take command and there are times when you need to empower. But you cannot micro-manage everything in a large organization – especially in turbulent conditions. You must inspire and delegate.

The command-and-control leader’s approach is fine for improving operational efficiency in a well-defined environment. However, in today’s fast moving, complex situations, we need to supplement conventional approaches with more of the skills of the innovative leader.

Innovation - Key Driver

Innovation is a key lever for growth – a top strategic priority for many organisations as they shift from crisis mode to recovery mode. As economic and competitive pressures increase, companies need competent leadership to engage their talent to work smarter and more productively.

This means being innovative – looking for better solutions, better products and better processes that address current and emerging needs that drive the company forward. Failure to innovate means no risks are being taken, no new ideas implemented. Growth is not possible for companies who are simply maintaining the status quo. But what is innovation? Where does it come from, and whose job is it?

Most corporate leaders understand that innovation is essential for survival in today’s business world. However, the definition of “innovation” varies among business leaders. In some cases, any change in product offering can be defined as “innovation,” while other companies reserve the term for dramatic changes in product or process.

Some define innovation as creating competitive advantage in the marketplace by finding new ways to solve a customer problem or filling existing and emerging needs. Regardless of different definitions, there are a number of common practices for promoting a culture of innovation:

Embrace Failure, but Learn Quickly
When business leaders model a tolerance for risk, others become more willing to take the chances needed to realise promising ideas. It’s important to learn from failure but in addition to accepting failure, innovative companies need to avoid perfectionism. The goal is to get the new offering to market as quickly as possible rather than to achieve perfection. Creativity is all about failure so don’t punish mistakes— learn from them.

Provide the Right Rewards
Innovation springs from individuals and teams as part of a creative process to solve problems and address existing and emerging needs. It’s critical that organisations provide compensation structures and other rewards that encourage innovation across all functions of the organisation.

Build a Diverse Team
Diversity goes beyond race and has moved past simple demographics. It can be defined much more broadly to include various ways in which groups of people differ significantly from other groups of people. You need people that are different than yourself in order to be successful. Companies seek smart people, who display talent and communication skills.

Foster Connections with External Stakeholders
Employees are not the only source of innovation. Inside and outside stakeholders are able to see the project with fresh eyes, assure that it meets customer needs, and will be invested in a positive outcome if they have been involved in the development and implementation processes.

Identify and Develop Leadership Competencies that Drive Innovation
Many organisations develop leadership competency models to define the characteristics or behaviours that will drive innovation. Some of the competencies that are associated with driving innovation include emotional intelligence, social intelligence, analytical capabilities and technical competencies. Emotional skills and the ability to have a vision are ranked as some of the most important.

There is no single path to innovation; that path must originate in the minds of the organisation’s executive leadership. The executive office isn’t just the place where the buck stops. It’s also the place where the future begins.

Leadership Lesson From Politican

It has been a long election season for U.S. citizens, the press, pollsters and presidential candidates alike. But with Election Day upon us, there are lessons to be learned about how to sway people, inspire them and lead change, not just for voters and those seeking office, but for business executives, too. Here are some campaign-inspired dos and don'ts for leaders in the corporate world:
1. Don't Be Political, But Do Know What People Care About. Like the candidates, leaders need to know the hot-button issues that people care the most about. What are the people in your company most anxious about, and what do they need direction on? Provide that direction, get those resources, but avoid posturing and manipulation -- it causes trouble and mistrust. There will be politics, but, as John Bell, former CEO of Jacobs Suchard said, "Deal with politics, but don’t be political."

2. Don't Pander, Be Authentic. Leaders don't have to kiss babies to show that they can connect with regular people, but they do need to use emotional intelligence. It's important to be likable, to actually listen to employees, not just act as though you are, and to show that you care. That's how good leaders garner followers.

3. Don't Peddle Your Influence, Align Your Interests. Politics is often about trading on quid pro-quo relationships -- and using one's "influence" to get votes. In business, leaders must "lead with influence," which should not defined as "influence peddling," but as "the ability to generate results collaboratively, in a variety of contexts, without direct or positional authority." Leaders must understand the importance of authentic relationships and actively seek to align interests with people at all levels inside and outside the organization around shared goals. If they can't do that, they will go nowhere.

These skills are important to both win the White House and be successful throughout the presidential term, but they are also imperative to running a successful business of any size. It's a matter of time before we learn which candidate meets the above criteria in the eyes of the prospective constituents, but for business leaders, there is no better time than the present to evaluate the role you play in your company's success.

Insurance For Mid 20s

Many people in their mid- to late 20s lack the skills needed to manage their money and are unaware of the variety of financial products available to them. Purchasing a life insurance policy, for example, is something that rarely crosses the minds of most young adults.

There are specific questions most young people need to ask themselves. “Can you or should you depend on your parents to bail you out if you have an accident or suffer critical illness? Are they going to pay your rent? Your parking? Your cable bills? How is that going to affect your family situation?”

Is it really necessary for young adults to purchase life insurance?
Yes. Life insurance needs arise when you have a financial improvement or increased responsibility such as marriage, a new baby, the death of a parent, a home purchase, a promotion or new job, an increase in pay or when starting a business as a key person.

Can I afford to pay the premiums?
Compare the cost of insuring a vehicle that declines in value. Then look at the price of premiums that insure your life. Is it worth insuring a $10,000 vehicle, but ignoring the cost of a $100,000 life policy that will pay off the balance of the debts should you pass away? In certain cases, premiums are tax deductible.

Will I qualify?
If you are insurable, then risk determines the rating of premium based on age, sex, smoking status and lifestyle risk. Even speeding tickets can double your premiums, so insure while you are young and risk-free because once you start living fast and furious, you may no longer be insurable.

What are the benefits of purchasing life insurance at a young age?
The popular belief about life insurance is that it is only useful when you die to cover final expenses, to ensure your family maintains their standard of living and leave an estate. What many young people don’t realize is that life insurance is also useful while alive. It can be used as debt protection, to access liquidity, to organize your business succession, to supplement your retirement income and to provide for long-term care or home care.

How do you select the right life insurance for your needs?
Seek professional advice! The first thing any legitimate adviser will do is conduct a needs analysis and examine your entire financial situation. Never take any advice from someone who skips this step, as no fund recommendations should be made without a clear financial picture of the client.

Wednesday, November 7, 2012

A Leader That Unite Not Divide

Acceptance Speech from Obama
No surprise he is the President of USA

"I also want to say to Governor Romney, congratulations on a spirited campaign. I know that his supporters are just as engaged and just as enthusiastic and working just as hard today. We feel confident we’ve got the votes to win that it’s going to depend ultimately on whether those votes turn out. And so I would encourage everybody on all sides just to make sure that you exercise this precious right that you have that people fought so hard for, for us to have.”

“I’m looking forward to the results. And I expect that we’ll have a good night. But no matter what happens, I just want to say how much I appreciate everybody who has supported me, everybody who has worked so hard on my behalf. And again, I want to congratulate Gov. Romney and his team for a hard-fought race as well. OK?”

Tuesday, November 6, 2012

Another Giant Falls

Eastman Kodak will be scaling back benefits paid to retirees as part of a restructuring program aimed at pulling the century-old photography pioneer out of bankruptcy.

Medical, dental, life insurance and survivor income benefits, which were costing the company $10 million per month, will be terminated at the end of the year as part of a proposal agreed upon with an official committee of retirees.

Kodak, which filed for bankruptcy in January, has said it will have eliminated some 3,900 jobs by the end of the year. The company plans to sell off its consumer film business and focus on digital printing, graphics, entertainment and commercial films.

The Rochester, New York-based company, started in 1892, led the way in popularizing cameras, film, slide projectors and home videos. At its height in the 1980s, it had 145,000 workers. But years of poor performance in the age of digital cameras forced it to lay off thousands and close 13 manufacturing plants and some 130 processing labs since 2003.

The company pioneered research into digital photography beginning in the mid-1970s. But it was Asian manufacturers that stole a march in that market in the 1990s as Kodak failed to see the need to break from its old business lines.

Sunday, November 4, 2012

Increasing Motor Insurance Premium

Yesterday at the Dewan Rakyat, Deputy Finance Minister Awang Adek Hussin said the new, higher vehicle insurance premium rates will be implemented gradually in stages from this year until 2015 so as not to burden vehicle owners.

Insurance agents in the country are against a proposal to raise premium payments on motor vehicles. The General Insurance Agents Association Malaysia (Perwakim) instead wants the government to conduct a thorough study before implementing the new streamlined motor vehicle insurance framework.

Its president Athi Rao said the new scheme is only a short-term solution as the claims settlement system is still not optimal. He suggested instead that the government sit down with industry representatives to reach a mutually beneficial solution. Athi said inefficient supervision had led to higher claim settlements as the process involves external factors such as payments to intermediaries.

He added that in 2011, motor vehicle premium payments totaled RM6.3 billion but payments for repair of vehicles amounted to RM4.7 billion including RM600 million as compensation for stolen vehicle claims, just 76 per cent of the total premium collection, meaning insurance companies made a 24 per cent profit.

Thursday, November 1, 2012

Plain Insurance Agreement

Insurance companies should simplify the products they sell and make them transparent for customers, according to Swiss Re managing director (property and specialty) Asia Mike Mitchell.

“Insurance companies must know what their consumers are looking for. Simplicity of products is important and they should be tailored to meet the specific demand of the consumers,” he said at one of the panel discussions at the 26th East Asian Insurance Congress here yesterday.

He added there was a pent-up demand for life insurance products based on a recent survey by Swiss Re. The findings revealed that the aggregate mortality protection gap across 12 insurance markets in the Asia-Pacific region had expanded significantly over the past decade from US$16 trillion in 2000 to US$41 trillion in 2010.

The study was intended to encourage the life insurance industry to better engage with the public in Asia and educate them on the importance of life insurance matters, he added

Mitchell said the survey also showed that consumers were willing to buy life insurance products at or above their market value and it was important to make the consumers aware of the products.

Chartis Singapore Insurance Pte Ltd chairman Leslie Mouat felt that it was the duty of the insurance industry to act upon customers needs so that pricing of insurance products was robust and accurate.

To this end, he said communication on the right products to customers was vital for the development of the industry moving forward. He said agents, as intermediaries of insurance companies, needed to trained accordingly.

ACR Capital Holdings Pte Ltd of Singapore group chief operating officer and group chief underwriting officer Clarence Yeung said agents represented the insurance companies when selling products to consumers.

The key here, he added, was to switch from merely selling insurance products to that of meeting what customers wanted in a product.

Saturday, October 27, 2012

Heavenly Guidance Apps

A temple in southern Taiwan is to launch a smartphone app that allows the faithful to seek advice from the heavens while on the move.

“With the increasing popularity of smartphones, we will launch our own divination app next year,” said Hung Yang-chen, website designer for Jhen Hai Temple in Pingtung county, according to Central News Agency.

The temple launched a website in 2005 offering online divination services, enabling Internet users to ask heavenly advice about what action to take, whether in love or commerce.

Since the website was launched, the temple has seen an increase in physical visitor numbers of 30 per cent, prompting it to expand into mobile apps.

Divination is an important part of Taoist practices in Taiwan, and local temples are often full of worshippers seeking divine guidance.

Friday, October 26, 2012

Barriers To Success

These barriers to success are easy to overcome, but only when you know they're there.
 


 

Why do some people achieve their goals while others fail? I believe it's because successful people manage to overcome five barriers that, in many cases, guarantee failure. Here are those barriers and how to overcome them:

1. Uninspiring Goals

When most people set goals, they envision a "thing," such as a particular amount of money, an object (like a new car), or a specific achievement (like writing a book). Unfortunately, these "things I'm gonna get or do" goals don't appeal to the core of what motivates you, because they miss the point that what you're actually seeking in life and work is the POSITIVE EMOTIONS that you believe those things will produce.

Fix: Rather than envisioning a "thing" as your goal, envision--with all the strength in your imagination--how you will feel when you achieve the goal. That way, you'll be inspired to do whatever it takes (within legal and ethical bounds) to achieve that goal.

2. Fear of Failure

If you're afraid of failing, you won't take the necessary risks required to achieve your goal. For example, you won't make that important phone call, because you're afraid that you'll be rebuffed. Or you won't quit your dead-end job and start your own business because you're afraid that you might end up without any money.

Fix: Decide--right now!--that failure, for you, is a strictly temporary condition. If things don't go the way you'd like, it's only a setback that, at most, delays your eventual success. In other words, accept the fact that you'll sometimes fail, but treat that failure as an unavoidable (yet vital) component in your quest.

3. Fear of Success

In many ways, this fear is even more debilitating than the fear of failure. Suppose you achieved something spectacular, like enormous wealth. What if it didn't make you happy? What then? What if you ended up losing all of it? What then? Would your friends start acting weird? Would your family be envious? Such thoughts (and they're common) can cause even a highly motivated person to self-sabotage.

Fix: Decide that you're going to be happy and grateful today and happy and grateful in the future, no matter what happens. Rather than focus on possible problems, envision how wonderful it would be to be able to help your friends and family achieve THEIR goals. (Hint: Watch the last season of the TV series Entourage!)

4. An Unrealistic Timetable

Most people vastly overestimate what they can do in a week and vastly underestimate what they can do in a year. Because of this, most people try to cram too many action items into the short term rather than spacing out activities over the long term. The inability to get all the short-term steps accomplished creates discouragement and the impression that the final goal is slipping away.

Fix: As you list the activities and steps required to achieve a goal, schedule only the 20% of the activities that will produce 80% of your results. Beyond that, set ambitious long-term timetables, but always leave some "wiggle room" when you plan short term.

5. Worrying About "Dry Spots"

It's easy to get discouraged when you reach a point at which nothing you do seems to advance you toward your goal. For example, suppose you're trying to master a certain skill. You make swift progress at first but then, after a while, it seems as if you're not doing any better, or maybe a little worse. Some people use these "plateaus" or "dry spots" as an excuse to give up and therefore fail.

Fix: Whenever you reach a plateau or dry spot, it's time to celebrate rather than give up. A plateau is almost always a sign that you're on the brink of a major breakthrough, if you just have the patience to stick with it and trust that you'll eventually achieve your goal.

Someone Not Trustworthy

It's easy to ignore the tiny red flags that can indicate someone is not trustworthy. Here are four you must pay attention to.
 
Warning sign, road, blue sky
 

Do you ever wonder what dishonesty looks like? Do you find yourself replaying Enron: The Smartest Guys in the Room, so you can study Jeffrey Skilling’s facial expressions while he testifies before Congress? I found myself doing this after being surprised by the extent of someone’s dishonesty--someone that I had dealt with for years. In hindsight, though, there were plenty of little clues along the way. Over time, they should have added up. But I ignored them.

It’s not just that people lie (although they do). Some people are so wrapped up in a delusion, and tell themselves a story so many times, that it becomes reality in their mind. Someone who is also a smooth talker can be a master of generating excitement and momentum. If that person has a title or position with some prestige, or perhaps has been a media magnet, the pull to jump into their opportunity can be even more compelling. “It’s got to be a winner,” you might say.

No, it doesn’t. And all that excitement can cause you to discount the little red flags that pop up along the way. Don’t make my mistake – pay attention to those red flags. Dishonest people are banking on the fact that you won’t want to dig into their story, for fear of ruining the opportunity or being left out in the cold. You need to dig.

Here are four red flags you cannot ignore:

Unwillingness to answer questions directly. Honest people answer questions directly. Period. If you ask about customer interest in a product, and the answer starts with, "We are talking to...," that means there are no committed customers. A company needs to be honest about where they are in their sales process, because it is key to revenue generation.

Any roadblocks to due diligence, especially the phrase, “We need to stay stealth.” Anything that hinders your due diligence is a problem for your decision-making process and for your potential partner’s ability to raise capital down the road. You want to know that your would-be partner has clean financials and truly owns any intellectual property he or she claims to have. Any savvy investor would want the same assurances. I've seen the "we need to stay stealth" excuse used to obfuscate patent assignment issues that later became a nightmare. Don't fall for it.

An opportunity that is so 'hot' that other people aren’t asking the right questions. It's easy to be taken in by people who manipulate details to create the illusion of massive momentum. Their ultimate goal is to get others to come to rash decisions, without asking too many questions or negotiating. Only later will you discover that the reality doesn’t match the pitch: the funding hasn’t actually closed, the other team members haven’t actually committed, and what was billed as product development is really a science project with titanic levels of technical risk.

A would-be partner who acts as if their title or status as a media darling should put all your concerns to rest. Just because someone has a prestigious chair at a top university or is frequently featured in the media does not mean you can trust them, unfortunately. Only some people get to the top because of their own brilliance. Enough said.

I’m not advocating paranoia, but a cautious skepticism can be healthy. Integrity (or lack thereof) travels with people: deal to deal, institution to institution, company to company. Stick with good people, and save yourself a lot of grief.

Check Your Life Isurance Policy

The life insurance products is making breakthrough each day as insurers offer products to match modern lifestyle and needs. One of the many breakthrough products focus on Medical Insurance combined with Critical Illnesses.

Take the example of a typical policy coverage - ie
Male Age 30
Basic sum assured for death or total permanent disability RM300,000
Rider critical illnesses RM100,000
Rider medical insurance RM100,000 annual limit
                                                                   Rider waiver of premium

Critical Illnesses Cover
There are 2 types of critical illnesses rider. The accelerated and the non-accelerated.

Accelerated Critical Illnesses
The accelerated critical illnesses cancel the basic sum assured. For example, if the claim is made on crisis illnesses cover, then the insurer will pay RM100,000. If death occurs subsequently (policy conditions is after 30 days from date of diagnose) then the insurer will pay RM200,000 (not RM300,000).

Non-accelerated Critical Illnesses
The non-accelerated critical illnesses does not cancel out the basic sum assured. For example, if the claim is made on crisis illnesses cover, then the insurer pay RM100,000. If death occurs subsequently (after 30 days from date of diagnose) then the insurer will pay RM300,000.

Impact After Claiming Critical Illnesses Cover
This critical illnesses rider will cease upon paying the claim. The waiver of premium then waives all future premium for the Basic death or total permanent disability protection and medical insurance. Therefore the Basic coverage (death or total permanent disaability and medical insurance is still inforce).

Impact After Claiming Crisis Illnesses Cover and Total Permanent Disability
In the event the insurer pays the claim for Critical illnesses (RM100,000) and subsequently total and permanent disability (RM300,000 for non-accelerated  critical illnesses) - many policyholders should be aware and purchase the right policy ensuring that the waiver of premium kicks in and waive the premium for medical insurance until death or age 81 whichever is earlier.

Medical Insurance Up to Age 81
If a policyholder is diagnosed cancer at age 33 - this means he is entiltled to RM100,000 medical benefits per annum up to age 81. If the policyholder does not suffer death immediately, this means the insurer will contiunue to be liable for another 48 years or RM4,800,000 potential medical benefits for the policyholder in case he/she needs treatment in the hospital.

Important Note
Many policyholders are not aware of this unique benefits. Most insurers and agents would have sold you a policy - (that is cheaper but not better) - that cease completely upon paying Critical Illnesses plus Total Permanent Disability. Policyholders would have lose-out RM4,800,000 on the Medical Insurance if the whole policy cease completely after paying Total Permanent Disability.

Please check to ensure your policy remains intact (inforce) even after claiming critical illnesses and total permanent disability. "Good things are not cheap - and - Cheap things are not good"

Debt After Death

Nearly 60% of people don't have a life insurance policy and 64% have a mortgage which they haven't fully paid off, potentially jeopardising their families' financial futures. Despite the potential advantages of life insurance being all too clear, many people still don't have this protection.
 
Most people (60%) don't have life insurance to protect their family financially if they pass away, even though nearly two-thirds (64%) still have a mortgage - which means they would leave their loved
ones with a hefty bill if they passed away.

However, one in three (34%) are prepared for any eventuality and admit they are worth more dead than alive due to the size of the life insurance policies.

According to the Association of British Insurers (ABI), insurers in the UK pay out on average £37 million every day to help people cope with the financial burdens that come following a death in the family.

Yet the research found that the loved ones of more than one in ten (11%) of those polled would be homeless if they died. Insurers are concerned that many people are not sufficiently covering their families for such eventualities.

And with (30%) of couples having a joint mortgage and more than half (57%) holding a joint bank account, many would struggle with bills if one party dropped out and this could also mean they'd have to take on joint debt on their own without life insurance.

The loss of a loved one is a stressful time without having to worry about not being able to afford the mortgage bills. A debt such as a mortgage should ideally be backed up with life insurance so that it can be paid off in part or in full if one of the mortgage holders should die.

Term insurance, the most common type of life insurance, is what is usually used for mortgage protection. It will pay a tax-free lump sum if you die within a specified period of time, for example 25 years.

The aim is for the lump sum to be used to clear any outstanding debt against the property, which will ensure loved ones are not left without a roof on their head or with hefty bills they cannot service if you die.

Monday, October 22, 2012

Non-Disclosure No Claim

He is young, earns well and has just become a father. Just the kind of customer insurance companies want to target. Yet, when Harshad Doshi applied for a policy, his request was turned down. "When I disclosed that I had kidney stones, they refused to insure me," says the Mumbai-based manager in a financial services firm.

Despite the condition, Doshi (see picture below) has managed to buy a Rs 2 crore life cover for himself—not without putting his ailment on record, and disclosing that he had been denied life insurance by another company. "I made full disclosures because I didn't want to leave anything to chance when it came to the claim settlement," he says. Doshi had expected a higher premium, but he was in for a pleasant surprise. The final premium was the same as that charged by the company for a person with normal health. He's paying Rs 23,740 per year for the Click2Protect online term plan from HDFC Life.

Not many insurance buyers are as transparent as Doshi. A sizeable percentage prefers to keep its medical problems under wraps. For some, it's tempting to conceal facts that are likely to push up their premium, or deny them an insurance cover altogether. For others, ignorance is bliss because they let their agents fill up the details. Almost 22% of the respondents to an online survey conducted by Economictimes.com, last week, said they would either not mention their illness or seek the agent's help in concealing it to keep the premium low. Another 8% said they would not disclose the full extent of the problem, and water it down.


Despite the condition, Doshi has managed to buy a Rs 2 crore life cover for himself

Withholding crucial information on the state of your health from your insurance company can have serious ramifications. If an insurance company finds out that a policyholder has concealed information that affects the risk to his life, out goes the claim. Don't expect a company to be lenient because the policyholder's family is without support. Every year, about 2% of the claims received by life insurance firms end up in the trash can.

Some are crude attempts to defraud, while others display greater finesse. In 2010-11, nearly 17,500 death claims were rejected (see details). An equal number of claims is under investigation and some of these might also get rejected. This is just the tip of the iceberg. As our survey shows, up to 30% of insurance buyers submit incorrect information that could lead to rejection of claims.
 
One of the most common lies in a life insurance application is the disclosure of tobacco use. The premium shoots up by 25-50% if one consumes tobacco in any form. So, it's quite tempting to say that one doesn't smoke or chew gutka to keep it low. Insurance companies have sophisticated ways of finding out if a policyholder has lied in the application form, hidden facts or submitted fake documents. Most companies have a panel of medico-legal experts, who scan the documents submitted with a claim, for any discrepancy or attempt to mislead. For instance, there may be no traces of nicotine in the bloodstream of somebody who kicked the smoking habit 2-3 years ago, but his chest X-ray might have some tell-tale marks of the damage done by smoking.

The most important thing to remember is that you will not be around to do the explaining. It will be your nominee running around to get the sum assured promised under the policy. Will your spouse or children be able to stand up against the legal onslaught of the insurance company? Buyers must consider whether the money saved on the premium is worth the risk they take when they submit incorrect information that may lead to claim rejection.

Even if there is a ghost of a chance of rejecting a claim, a company is likely to take the gamble. Private detective agencies are called in to ferret out the medical history of the deceased. Field investigators fan out, inquiring from neighbours, relatives, pharmaceutical stores and hospitals.
 
In every insurance contract, there is a clause that gives the insurance company (or an agency appointed by it) the authority to access any information from a hospital or clinic where the policyholder was treated.

Term Life Good Whole Life Bad


Term life insurance vs whole life insurance. Which is a better choice for you? Every insurance plan serve a purpose - be it - Term life insurance, Whole Life insurance or Edowment life insurance. But what do you need? Even a good product, bought for the wrong purpose, will fail.

The purpose of term life insurance is to protect your family for a specific time period. If you buy the right term life insurance, it does the job beautifully well.

On the other hand, whole life insurance has two purposes. The first is to protect your family. The second purpose of whole life insurance is to make insurance companies and agents lots of money.

When you buy insurance (whole or term), the insurance company knows what your odds are of surviving during the period of the insurance. This is actuarilly calculated - called mortality risk. Your mortality risk increases (the chances of you dying go up) with age.

You can either buy annual term insurance and pay higher premiums every year. Or buy 10, 20 or 30-year term. When you buy term insurance for many years, you pay a higher premium the first year than you would if you bought annually renewable term, but the premium is level for the period. So if you buy 10-year term, the premium for the insurance is going to stay the same every year for 10 years.

When you buy a whole life policy, the insurance company has the same exact mortality and administrative costs, so they charge you the same costs. But it doesn’t stop there. The insurance company actually needs to collect more. A lot more.

Why? Because with whole life, the deal is, you not only pay the cost of insurance, you pay extra. The insurance company takes that extra money and invests it. In theory, the earnings from those investments should earn enough to pay the premiums for you. So, in other words, after a certain number of years pass, the insurance is paying for itself. Isn’t that wonderful?

The only problem is that the insurance companies charge very high commissions for the investment elements when you buy whole life insurance, and it rarely works as they project. They also charge very high expenses. The bottom line is, you could invest that extra money yourself and grow it much quicker than if you bought whole life and let the insurance company do it for you.

That’s why term life insurance is much cheaper than whole life.

Sunday, October 21, 2012

Takaful Malaysia Berhad

Group managing director of Takaful Malaysia Bhd Datuk Mohamed Hassan Kamil has been awarded “The BrandLaureate Transformational Corporate Leader Brand Icon Leadership Awards 2012” by the Asia-Pacific Brands Foundation for his outstanding and iconic leadership in spearheading the growth and development of Takaful Malaysia.

The award was presented by APBF chairman General (Rtd) Tan Sri Dr Mohamed Hashim Mohd Ali.

“To be given this honour gives me a sense of satisfaction as this recognition makes all my years in the insurance industry very rewarding. I dedicate this achievement to all the shareholders and stakeholders for their continuous support and loyalty to Takaful Malaysia,” commented Mohamed Hassan at a gala dinner held recently.

Under Mohamed Hassan’s stewardship, Takaful Malaysia’s business has grown to a group total assets of RM6.3 billion, with annual growth exceeding 14% per annum and a group profit growth that exceeds 30% per annum since 2007.

The insurance company’s strong performance lies in its rebranding campaign which has been effective in repositioning itself as a dynamic and vibrant image in the marketplace whilst creating awareness as well as increased appeal amongst the general public on the company’s products and services.

“If previously, the market saw Takaful Malaysia in a conservative light, we are progressively altering these perceptions and creating connections with customers from all walks of life. The brand has expanded its market reach by implementing new and innovative solutions that meet the needs of all Malaysians,” he added.

Mohamed Hassan was also recently awarded the Jewels of Muslim World Award 2012 by the OIC Today magazine in recognition of his achievements and contributions to the Muslim world.

Saturday, October 20, 2012

You Can Lead But Can You Inspire

Ten attributes senior managers need to lead organizations through the recession and its demoralizing consequences on their workforce. Pick up any business publication, and you'll see a plethora of stories on individual leaders and how they cut costs in a down economy. Their efforts have frequently included slashing jobs and overhead to improve the bottom line.

What we hear too little about is the mammoth undertaking of remotivating the workforce left behind, one grappling with pain and uncertainty and often understaffed to accomplish the organization's goals. The ability to manage well amid these challenging circumstances distinguishes the average business head from the truly inspirational leader.

From my own experience, I've learned there's no magic in the way inspirational leaders operate. They understand the business and its metrics for success as well as anyone else on the team. But they do one thing particularly well: They give employees roles consistent with their unique skills, core values, and primary passions.

Inspirational leaders focus unrelentingly on tapping the right people for each job and helping others determine where they can be their best; then they create that opportunity inside the organization. Given the economy-driven seismic shift that has occurred in most companies, leaders who can inspire others to achieve more than they believed possible have never been as essential for survival as they are today.

In reality, many business heads fail to merit the label "inspirational." Instead, they fall on a continuum somewhere between cynical and inspirational.

The following Inspiration Continuum lists 10 characteristic signs of an inspirational leader, the very traits and behaviors that will prove critical in the months ahead as organizations seek to motivate a pared-down and scarred workforce. Take a moment to rate your own leadership over the past year on a scale of 1 to 10 (with 10 being the best) for each of the following characteristics.

Authentic rather than phony. The words, actions, and beliefs of inspirational leaders are consistent. These leaders are not phony or pretending to be someone they're not.

Reliable rather than erratic. Employees know they can count on inspirational leaders to guide the organization to clearly defined goals on a well-thought-out course. They do not confuse an already struggling workforce with erratic behavior and constantly shifting priorities.

Anchored rather than disconnected. These leaders are well-positioned in the flow of the business and the organization's culture. They are clued in to contemporary trends and issues rather than disconnected from current realities.

Optimistic rather than pessimistic. Inspirational leaders demonstrate a world view of possibility and abundance. They are not unaware of the challenges and difficulties the organization may be facing, but they choose instead to focus on both how and why the organization will be successful.

Self-aware rather than unconscious. They understand their strengths and passions as well as their vulnerabilities and blind spots, and they work diligently to leverage the former and minimize the latter.

Driven by purpose and passion rather than power and fear. Inspirational leaders understand the tremendous power of a well-articulated purpose and a passionate workforce that embraces it. They get results not through wielding power and inculcating fear but rather by creating a vision in which others can become engaged.

Inclusive rather than divisive. These leaders value the input of others and seek out opinions from a widely diverse base. They recognize that divisiveness and exclusion do not lead to quality results or strengthen teamwork.

Focused on others rather than self-focused. Inspirational leaders focus first on creating a positive environment for others and leaving a valued business legacy, and only secondarily on their own needs. They will make tough choices that benefit the business over the long term rather than trade the future for a short-term gain.

Respectful rather than manipulative. As the economic dust begins to settle and organizations reinvent themselves, inspirational leaders recognize that the business environment is dynamic and may require even more changes that affect jobs. They appreciate the importance of treating employees at all levels with respect and insist that any implemented programs or processes are consistent with this core value.

Able to foster other leaders rather than demanding followers. Inspirational leaders spend a significant chunk of time identifying and grooming leaders throughout the organization. They are fully aware that the future of the business is directly related to developing individuals who are even better leaders than themselves and recognize that a business dependent on any one leader for its success puts itself in a vulnerable and tenuous position.

If you scored at 85 or above, you are practicing inspirational leadership. Asking members of your team to evaluate you using the Inspiration Continuum would provide even greater validation. As we enter into the New Year, the most important goal of inspirational leaders is to provide employees with the license to thrive.

Great leaders connect others' work to a larger purpose and harness the energy of the organization to achieve results. If you're not pleased with how you've scored on the Inspiration Continuum, perhaps it is time to conduct an evaluation of your overall leadership style and plan for a stronger and more inspiring performance next year. Your employees, your business, and indeed our economy will benefit.