ABMP – Advanced Business Management Programme

Boosting Senior Management Skills in a Changing World

Supported by:

27, 28 & 29 May 2013 • Tanjung Rhu, Langkawi MalaysiaSecurities Industry Development Corporation3 Persiaran Bukit Kiara50490 Kuala LumpurTel : 603 6204 8667Fax : 603 6201 5811Email : sidc@sidc.com.my www.sidc.com.my

The SECURITIES INDUSTRY DEVELOPMENT CORPORATION (SIDC), the training and development arm of the Securities Commission Malaysia (SC), is the leading capital markets education, training and information resource provider in ASEAN.

Established in 1994 and incorporated in 2007, the SIDC has been in the business of training and developing capital market participants in Malaysia and internationally for almost two decades. We design and facilitate training programmes for Malaysian and foreign regulators, company directors and market professionals as well as conduct public investor education seminars on wise investing and investors’ rights.

www.sidc.com.my

The SIDC also builds human capital for the Malaysian capital market through our talent development programmes. In addition, we work closely with the SC to develop, maintain and administer the SC Licensing Examinations and the mandatory Continuing Professional Education (CPE) programmes as part of the licensing regime for Malaysian capital market intermediaries.  

Through our ability and success in developing and delivering innovative, high quality, �t-for-purpose programmes for speci�c target audiences, we have established a reputation synonymous with professional excellence and have been acknowledged by international institutions such as the International Organisation of Securities Commissions (IOSCO), the Asian Development Bank (ADB), the Asia-Paci�c Economic Cooperation (APEC) and ASEAN.

ABOUT US

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The ABMP is jointly developed and organised

by the SIDC with the International Institute for

Management Development (IMD), Lausanne,

Switzerland; the leading executive education

business school. IMD brings its top faculty

to Malaysia to deliver the ABMP focusing on

leading edge thinking in strategy, innovation

and change, corporate governance and finance.

A 3-day residential programme, the ABMP

provides a platform for the industry players

and the regulators to share knowledge and

experience; discuss real issues; and identify

implementable business solutions. The ABMP

is supported by the SC and is targeted at

regulators, senior bankers, senior management

of market intermediaries, public listed

companies, government-linked companies and

government-linked investment companies.

This year’s programme, entitled “Boosting

Senior Management Skills in a Changing World”,

is delivered by renowned world-class speakers

Professor Didier Cossin and Professor Pasha

Mahmood. It will scrutinise the evolution of

risk practices at senior management levels

as a result of poor governance caused by

illiteracy and misinterpretation of universal

risk. Participants will also be brought up to

date on the latest innovation techniques in the

new world order, predominantly on The Art of

Frugal Innovation. In addition, the programme

will discuss approaches for setting contextual

strategies, and the financial market trends for

corporations and financial institutions.

The ABMP’s emphasis on continuous learning

means that its alumni will have the privilege

of joining the IMD Learning Network, a

programme that provides just-in-time learning

on a variety of senior management issues and

technical subjects.

Advanced Business Management Programme (ABMP)

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Learning Outcomes: At the end of this programme, you will be able to:

• Challenge and improve the risk practices of your organisation;

• Understand what drives successful governance and how to apply it to your organisation;

• Understand the fundamentals of strategic thinking;

• Formulate corporate strategy in the context of fast-growing economies;

• Develop insights for benefiting from the disruptive forces of frugal innovation;

• Recommend and implement change management strategies;

• Articulate and explain the relevance of structured and exotic financial products;

• Evaluate market trends in the area; and

• Evaluate and make decisions for acquisition in a high-risk environment.

MethodologyThe programme is delivered via multiple methodologies, designed to create an environment of intellectual sharing such as:

• Group discussions• Lectures• Case studies• Presentations• Simulation

The programme is designed for top management and Board members of companies.

Programme DirectorProfessor Didier Cossin, IMD.

Programme DetailsDuration27 – 29 May 20139.00am – 6.00pm

VenueTanjung Rhu Resort, Langkawi

CPE Points20 CPE points

CostRM 17,000 / USD 5,730*

*cost includes meals, accommodation and programme materials for 1 participant

PROGRAMME

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All information on this brochure is correct at time of printing. The SIDC reserves the right to amend the programme as deemed relevant, without prior notice.

Tuesday, 28 May

9.00 - 10.15

Fundamental Principles of Good Strategic Thinking

10.30 - 11.45

Corporate Strategy in Fast Growing Economies

Cases:• TheCiputraGroup: Shaping the City In Asia

12.00 - 13.00

Change Pro Introduction

Pasha Mahmood

LUNCH

14.00 - 18.00

Change Management:Change Pro Simulation

Pasha Mahmood

Wednesday, 29 May

9.00 - 13.00

Innovating in theNew World Order:From Classical to Frugal Innovation

Article:• HowGEisdisruptingitself

Case:• TheParadoxofSamsung’sRise

Pasha Mahmood

LUNCH

14.00 - 16.00

Financial MarketsTrends for Corporations and Financial Institutions

16.15 - 18.00

Acquisitions: From Deal to Integration

Case:• ABNAmro

Didier Cossin

Monday, 27 May

9.00 - 13.00

Risk Governance:The Evolution of Risk Practices for Senior Managers

Cases:• TheUBSCrisis• TheBPMacondoFieldExplosion

Article:• CrisisRiskThinking

Didier Cossin

LUNCH

14.00 - 18.00

Governance Successes and Failures:Lessons from Around the World

Case:• ICBC – Governance East to West

Didier Cossin

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Risk Governance:The Evolution of Risk Practices for Senior Managers

During this session together, we will explore what lessons best-practice corporations are taking from the risks they are confronting. We will analyse the processes and abilities developed by the top players. We will look at the implications for senior leaders on executive and supervisory boards to master or manage the incredible diversity of risks and opportunities confronting businesses today.

While a senior manager does not need to be attuned to the complex details behind some of the techniques used, an overall awareness of the tools, processes and behaviours used by top players is essential. We will also contemplate the level of technology that is being brought into risk thinking, notably in some industries, and how increased sophistication could keep uninformed or uneducated senior managers themselves at risk.

Overall, the session will give an overview of the latest thinking in risk governance and of what senior managers should expect to see, whether on the corporation as a whole or on specific deals considered at senior management level.

BackgroundReading:Case:TheUBSCrisis(IMD-1-0283),IMD,2009,D.CossinCase:TheBPMacondoFieldExplosion,IMD,2011,D.Cossin

OptionalReading:Article:CrisisRiskThinking,IMD,2009,D.Cossin While reading the cases, you can think about the following questions for your preparation:

1. Was the economic crisis predictable?

2. What are the main internal causes driving the UBS crisis?

3. Amongst the decisions taken by Tony Hayward and Carl-Henric Svanberg, which ones seem particularly poor? Why? How much impact do they have on BP’s growth opportunities? On the industry overall? On other stakeholders?

4. What do you think led to this failure of decision making? What drives the ability to take the right decision in difficult times?

5. Can the oil industry and the banking industry regain trust? How?

Monday, 27 May

9.00 - 13.00

Risk Governance:

The Evolution of Risk Practices for Senior Managers

Cases:• TheUBSCrisis• TheBPMacondoField Explosion

Article:• CrisisRiskThinking

Didier Cossin

DAY ONE

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Governance Successes and Failures:Lessons from Around the World

Boards are failing companies around the world. From the financial crisis to major disasters such as the BP Macondo field explosion or the Tepco nuclear disaster in Japan, boards are under stress. At the same time, the rise of economic, social and business complexity makes effective boards an even more competitive advantage to well-tuned, well-managed companies than in the past. Today’s CEO needs sparring partners to emulate the challenges he is confronting. And who else can do this but a strong, well-informed, well-connected board? We will look at examples of successes and failures around the world and analyse what makes some boards a liability while others a true competitive asset. We will use the brand new ICBC governance case to look at governance evolution in China and what it can inspire us with.

BackgroundReading:Case:ICBC–GovernanceEasttoWestCase:BP-MacondoFieldExplosion(seq)

Monday, 27 May

14.00 - 18.00

Governance Successes and Failures:

Lessons from Around the World

Case:• ICBC–Governance EasttoWest

Didier Cossin

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Fundamental Principles of Good Strategic Thinking

This summary to what constitutes good strategic thinking will be a good introduction to the more topical issues that will be dealt with in the program.

BackgroundReading:Article:TowardsanintegratedperspectiveofstrategyThevalue-processframework

Corporate Strategy in Fast Growing Economies

A big problem in many emerging economies is that much of the institutional infrastructures that firms in the West take for granted are either missing or underdeveloped. While such institutional voids present challenges, they also provide enormous opportunities for entrepreneurial foreign or domestic companies to build businesses based on filling these voids. The goal of this session is to discuss how companies can identify and exploit opportunities to build businesses by filling in institutional gaps. Detailed examples of companies like Ciputra in Indonesia, LG in Korea, and Li & Fung in China illustrate the opportunities, as well as the challenges companies face in today’s fast growing markets.

BackgroundReading:Case:TheCiputraGroup:ShapingtheCityInAsia(RichardIveySchoolofBusiness9B09M084)

You can think about the following questions:

1. What are the challenges of inadequate institutional infrastructure in Asia that make it difficult for firms to operate and grow?

2. How to identify and exploit opportunities to build businesses by filling in institutional gaps?

Tuesday, 28 May

9.00 - 10.15

Fundamental Principles of Good Strategic Thinking

10.30 - 11.45

Corporate Strategy in Fast Growing Economies

Case:• TheCiputraGroup: Shaping the City In Asia

Pasha Mahmood

DAY TWO

2

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Change Management:Change Pro Simulation

In this session, you will have a chance to test your skills of influence without authority and change leadership in a computer-simulated organisation. Working in teams, you will be given the task of getting the buy-in of 24 simulated managers to adopt a Six Sigma quality programme. You will have a wide range of tactics available to you and much information to consider. After you have finished the simulation, we will have a plenary debrief session so that you can learn from the experiences of other teams and identify the general learning points. We will discuss how we can translate the lessons of the simulation back to the real-world contexts of change that you face.

BackgroundReading:“The Change Pro Simulation® User Manual“

Timing of the session

12:00 - 13:00 Introduction to the Change Pro Simulation14:00 - 16:30 Group work on the simulation16:30 - 16:45 Break16:45 - 17:15 Debriefing in small group and preparation of group presentation17:15 - 18:00 Presentations, discussion and conclusion

Tuesday, 28 May

12.00 - 13.00

Change Pro Introduction

14.00 - 18.00

Change Management

Change Pro Simulation

Pasha Mahmood

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Innovating in the New World Order: From Classical to Frugal Innovation

From $2500 cars to $35 laptops,  innovations that characterize the art of improvising effective solutions using limited resources have been the hall mark of many emerging economies. As many developed economies face economic downturn, MNCs from these economies need to look to emerging economies for ways to do more for less, while serving broader markets. Detailed examples of companies like Tata in India, Haier in China, and Cemex in Mexico illustrate the typical challenges for frugal innovations and learn how firms can overcome those challenges. In particular we will explore what are some of the unique features of innovation in emerging Asia that can disrupt the way business is conducted by firms everywhere and what can firms do to cope with missing or inadequate institutional infrastructure in Asia that make it difficult for them to grow.

BackgroundReading:Article:HowGEisdisruptingitself?

Questions: 1. Can you think of some examples of frugal innovations in your industry that can

disrupt the way business is conducted by firms everywhere?

2. What are the missing gaps in the business system that you need to fill in order for you to capture the value from frugal innovations?

Case:TheParadoxofSamsung’sRise(HBRR1107N)

Questions: 1. What allowed Samsung to transform itself from being an imitator to an innovator?

2. What are the key HR practices behind Samsung’s hybrid management system?

Wednesday, 29 May

09.00 - 13.00

Innovating in theNew World Order:

From Classical to Frugal Innovation

Article: • HowGEis Disrupting Itself

Cases:• TheParadoxof Samsung’sRise

Pasha Mahmood

DAY THREE

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Financial Markets Trends for Corporationsand Financial InstitutionsThis case will provide a rich platform to think not only about financial structuring but also about risk management, the options (and real options) attached and unusual underlying risks. It is also a good case to go from corporate finance concerns to financial markets concerns as corporations try to play sophisticated financial markets instruments more frequently. It will also address the role of the banker in that environment.

This session will also allow us to go into further technical sophistication (jump risk, bimodal distributions) and address information asymmetries issues in OTC options. Most importantly, it will exemplify an interesting use of an equity derivative structure for contingent financing in a high growth-high risk industry.

BackgroundReading:Case:Cephalon,Inc.(HBS9-298-116)

Questions:1. Why is Kevin Buchi considering the equity derivative proposal from SBC? If Cephalon does not use the proposed financing, what will happen in case of FDA approval? In case of rejection?2. Does the SBC proposal seem fair? How would you evaluate it? What difficulties are you facing in doing it? Would SBC face any further

difficulties? Please be as precise and complete as possible.3. What are the risks associated with the proposed structure? 4. Should Buchi push Cephalon to do it?

Optionalbackgroundreading:PrinciplesofCorporateFinance,Brealey&Myers

Acquisitions:From Deal to Integration

The ABN Amro acquisition, the largest acquisition of a financial service firm ever, was unique in many ways and triggered questions on the evolution of M&As in Europe. A hostile bid from a consortium of three competitors, a hedge fund getting involved with activism on its mind and the background of a tremendous drop in bank share prices during the so-called “subprime crisis” led to new structures and new risks. Today, we can capture with more balance the tensions, the stakes and the lessons learned. We will explore them in depth during this session together.

BackgroundReading:Case:DealMakinginTroubledWaters:TheABNAmroTakeover(IMD-1-0276)

Questions:1. What are the strengths and weaknesses of the consortium’s deal structure?

2. What are your concerns regarding integration planning and integration implementation?

3. What lessons do we take for the future of banking in Europe and worldwide?

Wednesday, 29 May

14.00 - 16.00

Financial MarketsTrends for Corporations and Financial Institutions

16.15 - 18.00

Acquisitions:

From Deal to Integration

Case:• ABNAmro

Didier Cossin

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Professor Didier CossinProfessor Cossin is the Director of IMD Global Board Center. He works with senior leaders, executive committees and boards to provide the latest thinking on best-in-class governance, risk and opportunity optimisation, investment selection and strategy design. He favours an adaptive and interactive approach to finding distinctive solutions for organisations on a wide range of management topics. His latest research focuses on the role of the board in achieving success. His past research has dealt with risks, M&As and financial decision making.

In his work with boards, Professor Cossin helps them enhance organisational performance through strategy involvement, best-in-class decision making, information management and general governance (including board restructurings). He is an advocate of adapting board work to the economic transformation taking place in many regions of the globe, and through his international experience he has gained insights into the different ways in which societies and economies deal with the issues at stake.

He also looks at the latest approaches to risk issues. His work addresses not only technical risks (for which he uses his finance background) but also those arising from a number of different factors: psychological biases, social and cultural environments, technological changes (such as in information issues), strategic choices and/or from governance structure (for which he levers his long experience with senior leaders).

Professor Cossin is an Advisor and/or Executive Teacher with the United Nations, central banks of several countries, the boards or executive committees of corporations, financial institutions and funds in Europe, Asia and the Middle East. His most significant experience is with the oil and gas industry (Schlumberger, Shell, Sinopec, Saudi Aramco and others) and the banking industry (HSBC, Bank of America, Goldman Sachs, ICBC and others), but he has also worked with many other industries (media, luxury goods, retail, shipping, etc.). He is a member of the Risk Who’s Who Society, the American Finance Association, the Eastern Finance Association, and the European Finance Association.

Professor Cossin holds a PhD from Harvard University (Robert C. Merton Chair) and is a former Fulbright Fellow at the Massachusetts Institute of Technology, Department of Economics (USA). He is a former student of ENS rue d’Ulm (France) and holds Master Degrees from Sorbonne University and EHESS (France).

Before joining IMD, Didier Cossin worked for Goldman Sachs (London, UK) and pharmaceutical company Roussel-Uclaf (Tokyo, Japan) as it was considering an initial offering on the Tokyo Stock Exchange. He has taught at Harvard University, where he obtained two Derek Bok Awards for excellence in teaching, and was associate then full professor at HEC, University of Lausanne (1993-2002). He chaired the university’s Department of Management (1995-1997); was the Director of both its Institute of Banking & Financial Management (1997-2002) and its PhD in Management (1997-1999). At IMD, he has led or co-led the pension fund, the recruiting process, a strategy review as well as other administrative responsibilities supporting the success of the organisation.

He is the author and co-author of two books, a number of book chapters and many articles, several of which have obtained citations of excellence or other awards.

He holds the UBS Chair in Banking and Finance at IMD and has also received distinctions such as the Febelfin BFI Chair and the Deloitte Risk Management Chair.

Professor Didier Cossin

Professor of Finance and Governance

Director of the IMD Global Board Center

PhD in Business Economics Harvard University

FACULTY

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All information on this brochure is correct at time of printing. The SIDC reserves the right to amend the programme as deemed relevant, without prior notice.

Professor Pasha MahmoodIshtiaq Pasha Mahmood is Professor of Strategy and Asian Business.

Pasha’s research covers the interface between corporate strategy and international business and is driven by his fundamental curiosity regarding why some firms continue to prosper while others stagnate. A large part of his research is about how firms make the transition from being imitators to innovators. The other main strand of his research focuses on how firms respond to major environmental shocks. Pasha won the Haynes Prize from the Academy of International Business (AIB) for the most prominent scholar in international business under the age of 40. He also sits on the editorial boards of Strategic Management Journal, and the Journal of International Business Studies.

Diversified business groups such as Samsung in Korea, Tata in India or Formosa in Taiwan are an integral part of the corporate landscape that intrigues Pasha. In one of his current working papers, Pasha focuses on director interlocks among group affiliates to examine when and how strategic centralisation can improve group performance. In another paper, recently published in the Strategic Management Journal, Pasha and his colleagues show that the networks of inter-firm ties within business groups can either enhance or depreciate firm capabilities depending on the way the ties are structured. Pasha’s recent research interests include frugal innovation and Islamic business.

Pasha comes to IMD from the National University of Singapore, where he pioneered a highly innovative and popular module called “Business Environments in Asia,” and also won the university level Outstanding Researcher Award. Prior to his doctoral training, Pasha worked as a management consultant in Chicago and Boston.

Pasha obtained his B.A. in Economics from Oberlin College and his Ph.D. from Harvard University.

Professor Pasha Mahmood

Strategy and Asian Business

PhD HarvardUniversity

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TRAINING VENUE & ACCOMMODATION

jennie

Sticky Note

Pocket here

ABMP – Advanced Business Management Programme

Boosting Senior Management Skills in a Changing World

Supported by:

27, 28 & 29 May 2013 • Tanjung Rhu, Langkawi MalaysiaSecurities Industry Development Corporation3 Persiaran Bukit Kiara50490 Kuala LumpurTel : 603 6204 8667Fax : 603 6201 5811Email : sidc@sidc.com.my www.sidc.com.my