Tag Archives: attitudes

Mandates vs voluntary action

We all want to make the world a better place. And in Singapore, we’ve somewhat cultivated the idea that we need to force people to take the right action or they won’t. Often it is because they will point to others who have not done it and say ‘why don’t you ask them?’

The people who failed to bring their trays back to the shelves at the hawker centres before NEA’s mandate had excuses – they were busy, the cleaners had to have something to do, they forgot, and so on. But it was never clear enough that they ‘had to’ do it. Once the mandate and the penalties came, it was clear. As clear as day. So, mandates make requirements clear to a large extent. It makes people sit up and recognise they had to take some action. More so than the consequences of dirty hawker centers, or when you have to take over a messy table.

What can we learn from this that we can apply to climate change?

If we don’t feel hit by the experience of a messy, unclean hawker centre, it is even harder to feel like we need to take any particular course of action just because we have a few more hot days. After all, one could turn up the air-conditioning (which worsens the problem at the system level). So mandates are needed to help with the coordination. The direct consequences alone are insufficient because of externalities, so the government should step in to ‘make them feel the pain’.

Promoting into oblivion

One of the big struggles of corporate is that when you have clearly defined roles where there are job titles, managers, and the ‘managed’, there is this false sense that you get promoted because you’ve proven yourself. Now, you start being required to work with entirely new skills, and you no longer have to use that much of what you were good at.

The tricky bit often in management is that the corporates are not sufficiently focused on training and bringing you up to the level required because mass training is easier to justify than just training a handful of people. Moreover, in many organisations, being in management has a lot more to do with handling internal politics and jostling for resources than to do with getting the real work done. Politics is of course important because that enables the delivery team to be able to deliver but if you just got promoted from being the best performer in the delivery team, you’re almost completely oblivious to what this new management role really is about! Not to mention growing the skills overnight to be able to do the new job well.

Some organisations, like the military that operate based on the old British aristocratic style tries to overcome this problem by having two classes within the service. The commissioned officer and the non-comissioned officer tracks are ways in which you focus one group on the ‘leadership’ (really, it is more management) skills. In contrast, the other group are more focused on ‘operations’ (or what is deemed more as ‘follower’ type) tasks. Of course, reality is a lot more complex than that but this form of organisation, while crude, aligns expectations and allows the specialists to focus on the frontline nitty gritty and have the ‘leaders’ focus on the big picture elements. Over time, though the commissioned officers have ever been trained in the basics, they lose their ability to really keep up with the changes on the ground to be able to command at high level.

Yet that form of organisation is probably not ideal as it can be a bit elitist and does not incentivise people to perform in ways that allows them to utilise their potential well. It boxes people into neat categories that serves the organisation more than the individual, and at some point, a lot of people would give up on the system as they find themselves uninterested in being thumbed down as second-class citizens, or being forced only to do the big ‘leading’ kind of stuff.

The market presents a new way of organising people, and as our markets develop, I’d expect a lot more small tiny firms to exists and serve large swathe of people when technology enables them to.

Solving the right problems

One of the greatest challenges confronting our modern world is the sense that when there is a solution for something, the idea that we didn’t apply it indicates a lack of responsibility or some kind of mistake on the part of a human. The fact a surgeon could have healed someone but failed to puts the blame on the surgeon even when the chance of success is probabilistic. Of course, some things require a lot of resources to achieve even when they are feasible, so that doesn’t mean that the feasibility of a solution isn’t the only parameter to determine whether it should be applied or not.

Yet somehow at the back of our minds, if we didn’t apply it, that seem to imply we did not try hard enough or do our best. The issue is that with limited resources, you probably can’t ‘do your best’ in everything. There’s only this much you can give. This applies even to the government, whether it is taken from the budget perspective or the use of manpower.

And for a small country with a lean government like Singapore, solving for the ‘which problem’ to tackle is perhaps increasingly important as there will always be some fringe issues that you can deal with to make yourself look as though you’re doing your job when you’re not making any progress. The recent cigar dish case seems like one of those situation where it is probably not significant enough to escalate to higher (or more mature) decision-makers while seeming to have that easy solution of ‘order them to remove it’. We have a limited attention span available for our public servants, especially those handling frontline issues.

Learning to struggle

If there’s one big thing we need in society that the education system is not properly teaching us, that is the need to struggle. There’s this sentiment in the education system that struggling suggests something is wrong, that is a state to transit away from, and to be avoided if possible. But what if struggling through difficulties, challenges is actually an important aspect of life? What if it takes struggling in order to truly learn something? Not just to acquire head knowledge but also to have a practical sense of how to use that knowledge?

How do we teach people to be resilient otherwise? How do we cultivate a generation of people who can actually deal with those problematic issues confronting mankind (eg. climate change, sharp inequalities, cracks in market capitalism, etc)?

Non-profit organisations

We can organise our economy in very different ways, and even as the free market and the idea of capitalism reign, there can be different extents to which goods and services are produced and supplied to the end consumers. The non-profit organisation can serve as a way to coordinate activity that delivers real economic results in the form of goods and services.

I think we have overlooked the ability of such a form of economic organisation to do more for the world. The advantage of a non-profit that it explicitly pursues resources specifically for a cause. It doesn’t mean it will squander resources inefficiently, but the stated purpose of it, is to generate the impact or advance towards the mission. Ironically, some of the more profitable companies in the world can tend to make claims that are similar to non-profit in terms of the contribution it brings to society.

And since non-profits often have to deliver results in exchange for funding, or to unlock pre-committed funding, they will learn to optimise their budget and utilise resources optimised to deliver some of the results or at least provide inputs to the causes they are trying to champion. The funding portion of non-profits may be different but the way it should be ran operationally is probably not so different from a typical company, with the exception it may not be able to use the usual incentives for its staff (in those circles, they sometimes call it a passion tax).

Yet perhaps more forms of organisations should be acting as non-profits. For example, banks should potentially operate without profits, with the key objective of optimising risks in the system while providing access to credit for organisations and people. In fact, I think that all financial institutions, even those providing payment solutions probably should have limitations placed on their profits because ultimately, it is the real economy that they are trying to drive and allowing them to extract too much from the real economy can hinder the more fundamental process of capital allocation – which is what we are already seeing. Everyone needs to contribute to the real economy and finance in particular, has become the tail wagging the dog, in name of the pursuit of profit. That is a shame.

Geopolitics-driven transition

There is increasing acknowledgement of China’s leadership in a huge range of technologies around the energy transition and yet the struggle is that a lot of narratives in the Anglo-saxon world seem to be rather negative about this whenever the conversation on economics of equipment starts talking about using Chinese products.

I’m not sure if trying to re-invent the Chinese leadership in the technologies should be a key priority. Isn’t it the typical ‘western’ idea of trade that every country can develop their comparative advantage and should stick to it? One of the huge comparative advantage that the west has lies in taking seriously very preliminary, immature and ill-formed ideas and persistently exploring, improving, refining them until they are good enough for the market. At that point, the Asian economies with its ability to scale up further and drive costs down takes over those hardware aspects and this allows for prosperity and mutual gains.

The innovations in business model, technology and regulations that are needed probably will proceed the same way. Geopolitics can seem to drive the climate transition at times (such as putting a price on carbon, regulating flow of goods based on carbon content, enforcing carbon disclosures for companies, etc.), but they could also drive things in another way. When America or Europe puts tariffs on China batteries and other technologies, it can set back more advanced technologies that their local ecosystems are trying to build on top of solar, or batteries.

The truth is, more developed markets with more firms in the ‘traditional’ industrial sectors will definitely have to deal with some can of stasis introduced by incumbents lobbying, the inertia from having to restructure the economy, whereas the newer and up-and-coming markets have less to lose, or less industries to cannibalise when they are trying to develop their own industries. China’s advantage of leapfrogging some of the fossil fuels and moving straight from coal to renewables is simply something more fundamental.

The question as a global society is how we can lean on the strengths of different countries to deal with this global climate problem. Geopolitics and global competition can sometimes help. But not when competition turn towards having to re-invent the wheel.

Character development in sports

Continuing my series of musings about the nexus of sports and life. Something more important than winning in the sports arena is that your character is being built. How do you measure the extent of character development? What am I thinking about exactly? And why does it matter?

You can’t measure character. It doesn’t mean it is not important but you just cannot measure it. In the film Les Choristes, the Maths teacher, Mr Mattieu, formed a choir believing it would help reform the badly behaving boys. And it did! But how do you measure it? What changed? Maybe the school grades, maybe the noisyness of the classroom, perhaps even their sense of aspirations. In sports, the players’ performance can be seen in their behaviour on the pitch or courts, as well as their scores, but perhaps also in their lives, the way they treat the people around the sport, and so on. Even how they treat their competitors and how they talk about them. Max Maeder, the Singaporean kite-foiling Olympic medalist, impressed everyone by giving kudos to his competitors after finishing third in his final race when asked to comment on the race.

So that’s what I’m thinking about. There’s something unmeasurable that we can achieve in sports and sporting culture. Are we going to invest into that as a nation? Do we care enough about our people’s lives and their mental fortitude, resilience in face of struggles, competition, and need to perform? Those are precisely what sports offers us an opportunity to train and build up. And so investing in sports is not just about shiny stadiums, sport science degree programmes but also providing athletes with sport psychologists, equipping athletes with the science involved in training, practice, self-care and so on.

An excerpt from Roger Federer’s commencement speech for the graduating class of 2024 at Darthmouth this summer:

In tennis, perfection is impossible… In the 1,526 singles matches I played in my career, I won almost 80% of those matches… Now, I have a question for all of you… what percentage of the POINTS do you think I won in those matches?

Only 54%.

In other words, even top-ranked tennis players win barely more than half of the points they play.

When you lose every second point, on average, you learn not to dwell on every shot.

He could be considered perhaps the most long-running, persistently successful individual athlete of our times, and the lessons he can draw from his experience are timeless. If we could have more of such models and examples to train, motivate, and encourage our next generation of Singaporeans – for their lives not just in sports but other aspects, won’t it be great?

Judging yourself

For some reason, despite not being particularly sporty or athletic, I’ve had the benefit of knowing good athletes and learning a lot from them about psychology, personal development, and mindsets. While not being involved in the sporting scene, I’ve come to recognise the many ways our attitudes or behaviours during sports can mirror some other aspects of our lives.

One of them shared a really good practice introduced by her coach in Australia. After each training, he would get the athletes to go down the line to describe how they thought they performed for the training and why. And he’d listen to them, and then tell them whether they are judging themselves accurately regarding the performance and reasons provided. Often, people could judge their own performance correctly, but they come up with the wrong explanation, which means they are not going to correct it properly. And the coach would then offer his thoughts. Compared to Asian coaches who typically just drops his feedback directly, this Australian coach was challenging because he required his athletes to develop their judgment of themselves.

I thought this practice is great because over time, the athletes are building up a stronger ability to judge their own performance and pinpoint why. That creates a strong ability to coach oneself and also develop the right approach towards improvement. Many aspects of sports is about psychology and even getting oneself to put in the effort to practice can be something psychological. By coaching this way, athletes can come to see sports as more than just about performance but learning about oneself and one’s body even more intimately.

This is important. In Asian societies, especially with strong examination cultures, we never learn to judge or discern our own performance in things nor develop that independent sense about our abilities. This is a shame because once you’re at work, you will need to form judgment about the quality of your own work before you make submissions, you’ll have to determine if coworkers are doing what you need them to do, and of course, you’ll need to do so on many different dimensions including the social performance aspect of things. We strengthen our mental resilience and fortitude when we can judge ourselves more objectively.

Paying for outcomes

As a consultant, we sometimes encounter clients who only want to pay for the outcome but not the inputs or the efforts. It is probably true that a client takes on the cost of the work and all of the risks when they are just paying someone for the efforts, but they do also get most if not all of the upside pertaining from the subsequent business success. Of course, the consultants get a track record or credential but that’s probably a win-win situation, not something you’d expect the consultant to be paying the client for.

But paying for effort, monitoring it and managing the risk continuously can sometimes be the only way to achieve success, rather than striking an agreement with someone whom you would only pay for success. You see, outcomes are often not a function of incentives, they are a function of effort, timing, chance and many things outside the agent’s control. By paying for success, you might not even be optimising the effort for success.

And that brings me to the payouts for Olympic medalists. A gold medalist for Singapore gets a payout of a million SGD, whereas an Australian gets a payout of $20k AUD, which is about $17.5k SGD at current market exchange rates. The point isn’t about whether that is a lot or little; and in any case, the Singapore government might say there are so many Aussie gold medalists that it would not be worthwhile paying them too much. The point is that Australia probably already spend a lot more money upfront in terms of public infrastructure for sports, supporting local sport teams, supporting talented coaches, and promoting a culture of sportsmanship. The ‘outcome’ of Olympic success is already ‘bought’ when they make those investments.

On the contrary, Singapore still thinks that sporting excellence and investing in sports is out of a desire to win. I think that’s a shame, because there are so many other great outcomes that comes from a strong sports culture. And I think the many years of ‘investing’ into Olympics thus far had been out of that desire to ‘buy outcomes’, which is probably why we are offering such a big payouts to the Olympic medalists for Singapore. It allows us not to spend taxpayers money if we don’t get the medal – but at what costs to our sporting culture?

If we are prepared to secure a gold medal, why not take 90% of that million dollars and spend it on something like paying coaches better so they can focus on coaching a one or two teams rather than two handfuls? And why not alter the education system so that civic values are also taught through sporting interactions? There are so many possibilities only if we are willing to put our minds to it, and think about the effort we want to pay for, rather than trying to buy an outcome.

Profitable transition

What does it mean if companies declare that they are committed to the energy transition including committing resources towards it, and massive investments, only to make a U-turn when oil & gas turns out to be way more profitable? It tells you that it had always been about the money it makes rather than the transition. Never mind that the fossil fuels continue to drive up carbon emissions and hurting the climate. In fact, maybe climate change would drive up demand for energy – especially in terms of heating or cooling, or requiring more activities in the economy to deal with and mitigate the impacts.

Can the work of accelerating the energy transition be left to the markets? Can profits really motivate companies to support the transition and reduce carbon emissions? Does the market demand understand, appreciate and would be willing to drive and pay for the transition? I don’t think so. Absent regulation, it is unlikely for the markets to drive the emergence of the solution. It is as if we want seat belt manufacturers to drive the messaging around safety and benefits of having seat belts rather than legislate it as a requirement in cars. Or just waiting around for cars to adopt them as the standard feature in a car.

We probably don’t have enough time for all that to make an impact on mitigating climate change. Regulations will be required. To put a price for carbon on the market, to push technologies and options in the market that will reduce emissions. We must also evolve and steer the regulation as our understanding of the technologies and impact on environment advances. We don’t have to get everything right on the first try but we do need to be trying.