Business

October 16, 2010

Conflict of Interest Risks: Company and Country

By Okechukwu Onwuka

I need you to develop a program to train my field people on Project Management and Management of Change. Please treat this as critical. I can’t continue this way. I have to educate my staff members on how to run projects properly and save the company money. How soon can this training be organized? Next week, two weeks?- NAME WITHHELD.

This was a request I received some time ago from the Managing Director of a company we provide Technical and Risk Management consultancy services to. He was actually livid. He simply could not understand the rationale for the latest project cost escalation and delay. A new equipment had been bought for installation to replace one that the company had been paying heavy monthly rental costs. On the surface, the installation and hook-up process was quite simple and straightforward. It should not take more than two weeks but its two months gone by and the completion date is neither firm nor defined. The scope and costs continued to grow bigger. While I truly sympathized with him on the problem, I told him right away that the solution does not lie in Project Management training or any other training per se. It was easy for us to plan a program and get paid but there is no satisfaction at all attached to making money without adding value or solving a problem. I told him plainly that we would not conduct any such training.

The problem was much bigger than that. The field people have had significant experience working with us on several projects where simple engineering judgement and risk management principles were applied to resolve challenging issues on the production facilities.

The problem was that such focused approach through diligent planning, design and packaging had one major weakness; it minimized or eliminated the opportunity for scope creep, escalation or manipulation. Although the standard process helped the company save costs and increase profitability, it did not satisfy the individual aspirations of some key members of staff who would otherwise have benefited from an inflated contracting and execution process.

It is only employers of labour and business owners who expect employees to be very satisfied with regular salaries and remunerations. Afterall, there are many jobless people out there, so the guarantee of salaries through stable jobs should be more than enough reason to render selfless, committed and ethical service. Unfortunately, this expectation is usually far from the reality in many organizations.

I informed the director that the people already knew the importance of project management, cost control, risk management and engineering design.

But because these concepts do not satisfy interests that may not exactly be in alignment with that of the corporation, any such training would be a waste. Training and education makes sense only when the persons receiving the education believe enough in the value of the new knowledge to at least put it to practice.

This discordant and harmful worker attitude, otherwise known as conflict of interest is a high risk condition that many companies have to deal with all over the world. It is not a uniquely Nigerian problem, though we see the consequences of this risk condition all over our community. Many media columnists focus on pointing out the flaws and weaknesses in our national leaders.

We all know that corruption is a major obstacle to our progress as a nation. But how has the various criticisms over the years helped the situation? Successive leaders have tended to be more corrupt than previous ones. We all know the benefits of selfless leadership that factor in the future of children unborn. But why do we not imbibe these values and transform our nation? Simple. We are more interested in what we can get out of the national cake for now.
The goal is to steal enough money to take care of our immediate family down to the 20th Generation, while the others suffer. Afterall, as Governor or President, I’m only guaranteed the 4-year one term to steal as much as possible. Never mind that if I steal enough in one term, I’ll get bolder and realize I can pay more to secure a second term. If I amass enough wealth, I can buy over the critics. Is it then possible for a party whose modus operandi has been to rig her way to power to change overnight and enthrone a corruption free election process? As for me, in my personal research, I find that adults don’t change.

Or better still, it is extremely difficult for an adult to make a drastic transformation away from a deeply formed value system, simply because they are told to change.

Corporate Conflict of Interest controls, for the same reason have very little chances of success if enforcement is loose. Conscience as a control measure can never be reliable.

The surest way to get adults to comply with company policies on conflict of interest acts is to institute stiff penalties for default. Consistent disciplinary measures, from queries to demotion, salary deduction, termination of employment and even jail terms are better control strategies than salaries or salary increments.

The excitement over salary increase or promotion wears out very rapidly. But the fear of disgrace goes a long way to force alignment and minimize conflict of interest acts.

Rewards should never replace controls. The value of rewards is defined and enhanced when stringent controls are in place. Such controls can be difficult to implement in corporate cultures where everyone is ‘eating’ from the side.

If tough control measures can help put a reign on corruption in the work place, how does one implement a similar control on the leaders of the country to force them to adjust, not out of love for integrity but out of fear of the consequences of corrupt leadership? On the grounds that Nigerians are deeply religious people, at least going by the number of people who belong to one religious body or another, my thinking is that the solution lies with the family heads and leaders of religious organizations. Every mother and father has direct responsibility.

Pastors, General overseers, Imams, have this great responsibility. All parents who criticize the Government should never be involved in buying exam papers for their children. They should refuse to respect or court the favours of any politician with a corrupt reputation. They should not be proud to be seen in the company of corrupt people, indicted or not. J

ust like it was in the 60s and 70s. Traditional rulers should not grant Chieftaincy titles to thieves. Religious leaders should announce boldly every Sunday that offering and tithes from stolen wealth will not be received or accepted. Prominent yet corrupt leaders should not be given warm receptions and special seats in the religious gatherings.

Religious leaders should encourage sharing of testimonies for breakthroughs in solving national problems. Leadership at all levels should reward community development acts.

At least, no religion I know approves of corruption and stealing. That is enough motivation. When national leaders know they will be ostracised back home for corruption, a measure of control can be realized.