The leader of a family has the duty and responsibility to provide two things to the members of that family: protection and provision. In return, it is expected that he or she will receive cooperation and participation for the good of the household.
It is an exercise in futility if the house has strong doors and secure locks and family members forget or are too lazy to close the doors at night. Likewise, those who dwell under the same roof that waste food or electricity, for example, in effect steal the provided provision from all the rest.
From Francis of Assisi—“The deeds you do may be the only sermon some persons will hear today”—to Mahatma Gandhi—“An ounce of practice is worth more than tons of preaching”—is the idea that a leader must show the example to follow. But too often we may be caught up in what might be called the “moral” qualities of leadership. Integrity, professionalism, truthfulness, honesty, being diplomatic, and communication are important.
However, what the “followers” say they want, as evidenced by studies in the corporate sector, is perhaps something different. Topping the list of what subordinates all the way down the ranks want from their “boss” is decisiveness, dependability, loyalty, and reliability.
Perhaps the same applies to nations.
One person that is a private leadership consultant says this: “Effective leaders are those who can make decisions with the information they have. Effective decision-making comes with experience. Effective decisiveness requires research, evaluation, and problem solving, often with a quick turnaround. Decision-makers should be able to pull from their own experience with similar tasks, evaluate what might work best, make the decision, and be confident in taking responsibility for the result.”
We have seen many instances of both competent and incapable leadership—if results are any measure—from local companies in the past 18 months. Some companies were in the right place at the right time and took advantage of opportunities as they presented themselves. Others made opportunities. And yet others are still trying to figure out what happened.
The 21st century is proving to be more difficult almost on a daily basis for the person in charge, both in the private and the public sector.
If you want to protect and provide for your family, company, or nation, you must take into account crucial external factors. You must know what is going on and figure out ways to prepare. Lack of knowledge and lack of experience is not an acceptable excuse. Two words: Google it.
I have mentioned many times in the past five years that “interest rates haven’t been this low in 5,000 years.” That is a quote from David Jones, director of global investment strategy at Bank of America in 2021. Oil is the lifeblood of every economy and the oil price is the “blood pressure”.
Interest rates are the “cost” or “value” of cash, not simply how much your “1-pc. Chickenjoy w/ Double Rice” is in pesos. And this 5,000-year low is not going to last forever. Here is the “so what?”
In April 2020, the local price of gasoline was about P40 per liter, the lowest price since 2007. Now the price is about 35 percent higher, at 2014 levels. We did not care back in April 2020 because we were not allowed to drive. A “good” leader would have been at least mentally preparing for the future, thinking low gasoline prices will not last forever and neither will the lockdown.
When the trigger is eventually pulled on interest rates, are you contemplating what the effect might be on your business and personal finances? What will happen when cash becomes “expensive” again? Think about it. It might not be a pretty picture that you want to be surprised by.
E-mail me at mangun@gmail.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis provided by AAA Southeast Equities Inc.