Why CEOs need to take the long-term view in decisions

Gerald Mahinda, the Kellogg’s managing director in charge of Africa,and Middle East. FILE PHOTO | NMG

Former East African Breweries Limited (EABL) #ticker:EABL MD Gerald Mahinda last month got a promotion at Kellogg’s which expanded his role from managing Africa-wide portfolio to include Turkey and the Middle East. He spoke to the Business Daily on a wide range of issues.

YOU FLY AROUND THE WORLD ATTENDING MEETINGS WITH GLOBAL EXECUTIVES, WHAT ARE SOME OF THE LESSONS YOU HAVE LEARNED ABOUT WORK ETHICS?

In the 48 countries I have visited during my career, good leadership is best exhibited by leaders who value employees. Employees who understand and possess a willingness to work that extra mile are most sought-after by leaders. Every leader wants dependable and highly responsible workers. Another important work ethic most have is a very positive and engaging attitude that makes their work environment admirable. We want workers who evolve and adapt fast to today's ever-changing landscape.

WHAT ABOUT LEADERS?

Successful leaders have a high degree of honesty and integrity, they are mostly self motivated and play a big role in motivating and growing their teams for their firm's success.

HOW HAS THIS SHAPED YOUR VIEW OF CORPORATE MANAGEMENT?

One has to always take a long-term view in most of your decisions as a leader so as to get the right balance — both the shareholder objective, and nurturing the environment and looking after the communities where we operate. A good example in Kellogg SA is responsible sourcing, proper management of our waste. Our “breakfast for better days” programme in South Africa is feeding 25,000 children with free breakfast every school day. My experience is that a short-term view will almost certainly mean a compromise between profits and the environment and communities, with all three probably losing out.

WORKING AWAY FROM KENYA PUTS YOUR LIFE IN A SPIN. WHAT HAVE YOU DONE TO RETAIN A WORK-LIFE BALANCE?

My weekdays are usually very busy, so I try not to travel and work over the weekends. When at home, I spend quality time with my family. I enjoy sports and watch lots of it either live when I can or on TV. My family also enjoy sports and I have watched a couple of live football and rugby matches with them, which is a great way to connect with the family.

YOU HAVE BEEN AWAY IN SOUTH AFRICA FOR FOUR YEARS. HOW DOES ITS ECONOMIC DEVELOPMENT COMPARE TO KENYA’S?

Good infrastructure is a major enabler for economic development. People may have forgotten but today's Kenyan roads, telecom, ports and rail network when compared to 20 years ago are a major enabler to economic activities. South Africa developed infrastructure to host the World Cup. Kenya is still not there yet as there is still much more to be done!

IS THIS SOMETHING KENYA CAN BORROW FROM SOUTH AFRICA?

For you to develop at pace you must be open to learning. I know it does not matter at what stage any country is but when I have visited, I have always learnt something that has helped me. In terms of learnings from South Africa infrastructure management comes to mind e.g. roads power, tourism conference and medical tourism, large-scale farming and agriculture .

WHAT ROLE DO CORPORATE EXECUTIVES PLAY IN NURTURING A CONDUCIVE ENVIRONMENT FOR BUSINESS ?

I see corporate leaders as providers of vision and strategy. They are enablers in providing the resources that are needed for business growth. They motivate and inspire their teams to do their best.

HAVE YOU BEEN INVOLVED IN MENTORING EXECUTIVES IN KENYA?

Yes, I mentor several Kenyans, many of whom are now in very senior positions in their organisations or running businesses. Others are in self-employment. This is one area where my links with Kenya and East Africa are still strong. I mentor a blend of senior executives as well as young and up-and-coming executives. May I add that I mentor the CEO of Nation Media Group #ticker:NMG, Stephen Gitagama.

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