Benefits of Islamic banking

Islamic banking and the finance industry is growing at an annual rate of 20%. Many international as well as local institutions have stepped into this multi-billion dollar booming industry by establishing its Islamic wings and units. International giant banks such as HSBC (HSBC Amanah), Citi Bank (Citi Islamic) and Standard Chartered have already established their Islamic units and functioning in the Middle East region.

In Sri Lanka, despite the Muslim population being just 8% of the total population, a considerable growth is reported in the past few years with the establishment of Amana, Ceylinco Profit Sharing, First Global and a new comer ABC Barakah. Recently it is reported that the largest state owned commercial bank, Bank of Ceylon intends to commence its Islamic banking unit in early 2008. All these new entries imply that this alternative banking system has drawn the attention of Muslims as well as non-Muslims due to its unique developmental characteristics.

The underlying principle of Islamic banks is the principle of justice which is an essential requirement for all kinds of Islamic financing. In profit sharing of a financed project, the financier and the beneficiary share the actual or net profit/loss rather than throwing the risk burden only to the entrepreneur. The principle of fairness and justice requires that the actual output of such a project should be fairly distributed among the two parties. If a financier is expecting a claim on profits of a project, he should also carry a proportional share of the loss of that project.

In contrast with conventional finance methods, Islamic financing is not centered only on credit worthiness and ability to repay the loans and interest; instead the worthiness and profitability of a project are the most important criteria of Islamic financing while the ability to repay the loan is sub-segmented under profitability.

One of the unique and salient characteristics of Islamic banks is that the integration of ethical and moral values with its banking operation. The ethical and moral consideration of Islamic banks cannot be detached and their behavior should be consistent with the moral and ethical standards laid down by the Islamic Shari’ah.

Unlike the conventional banks, the financing of Islamic banks are restricted to useful goods and services and refrain from financing alcoholic beverages and tobacco or morally unacceptable services such as casinos and pornography, irrespective of whether or not such goods and services are legal or not in a given country.

In contrast with conventional banks, Islamic banks do not consider only the credit worthiness and interest rate as standards; instead they must apply Islamic moral/ethical criteria in their provision of financing. This adds another merit for Islamic banks since there is a benefiticial impact on the productivity in the economy as it reduces the social and economic cost of such harmful products and activities.

Another important characteristic which forms the basis for the development of Islamic banks is the relationship with depositors. They deal with their customers on investment grounds rather than a pre-determined fixed interest rate. They invest the money of their depositors on high profitable projects after going through a strategic analysis in order to give a substantial return to their depositors.

Thus in Islamic banking industry, each bank will attempt to out-perform other banks if it wants to attract funds from investors. And the ultimate result is that a high return on investments for the investors, which is unlikely in a conventional bank where it deals with their depositors on a pre-determined fixed interest rate.

Furthermore Islamic banks eliminate the barrier between those who save and those who invest, and bring them closer to the real market. The nature of the financial intermediation of Islamic banks significantly defers from conventional banks and it is in harmony with real market and developmental changes in it.

It is important to highlight some of the challenges faced by the Sri Lankan Islamic banks. Although there are many, the most important challenges are the lack of Islamic banking professionals and the lack of Shari’ah scholars who have specialized in Islamic economics. Further the Shari’ah board should have a fair influence on the bank’s operational and strategic planning. For this process to be successful, the Shari’ah boards of our Islamic banks should absorb Islamic scholars based on their technical expertise rather than their popularity.

Build A Team

Build a Team - The Right Team (There is a Difference)

Creating the right team is imperative to your success. A team is comprised of people who can bring necessary skill sets to the venture. A team is different from partners. Partners are financially and legally tied to the venture while team members are brought in to create and continue the process. Team members can be employees or sub-contactors.

These are people you can control - you get to pick them. You can use their services for as long as you like. If they don't work out as planned, you can find a different team member or you can find a place on the team where this person can be more effective.

Creating the right environment for the team is equally important. People will give their best when they feel that their services are being valued and that they are entrusted with producing a part of the success of the venture. Team members must have the same values as that of the venture and they must follow the same code of conduct consistent with your desired outcome. They must truly want the venture to be a success and feel that they are a part of that success. They must work well with the other team members.

Differences are encouraged only if they are presented in a positive fashion, recognizing the efforts of the others. Each team member must give more than they are asked for in their areas of expertise. This does not mean extra hours; it means working with heart and soul, working with the creative minds flowing, working with a positive mental attitude, and working together with the others so that all are winners.

What ideas do you have that will create a positive, successful team? How can you create this team and have each person feel that they are as important a part of the success of the venture as you are? Study successful entities to find out how they treat their team members. Find out what motivates team members in successful entities to keep them successful - is it money, power, trust, fear, etc.? Thinking these things out before you create the team will help you in putting together the right team for your venture.

You should write out all the positions of your team and keep updating it as you grow as when you grow you will need to change out some positions on your team. This is a big mistake that people make as they grow. They keep the same team members that were effective when they were small and they do not re-evaluate the need for replacing members who have not grown to levels where they are now needed. Therefore the overall team growth is limited by the lack of ability of one or more members. Just like upgrading your peer group, always be open to and active in upgrading your team members.

You must strive to place the right people on your team. This goes for all positions you pay for, including lawyers, accountants, advisors, sub contractors etc. Be clear on what is a must upfront and make the positions open as specific as possible.

If you are just starting out then make your team as simple and complete as possible. Just be sure that your team members are able to excel and have knowledge in the industry and direction you are going in. The last thing you want to do is to have to micromanage your team members. If you find you are doing so you have made a mistake and replace them right away.

Your team members must be proactive to your needs and outcome. If not replace them or place them in a position where they can be more effective. Please always keep in mind that in most cases you are paying for their services in one manner or another. Never pay a team member 100% upfront for their services as this always gives them something to aspire to. Placing the right team members in the right place will make your endeavor soar.

Web Conferencing

Web Conferences Versus Video Conferences

Web conferences allow users to attend 'virtual' meetings from all over the world. All that's usually required is an Internet connection and the software if a particular client
is being used.

Video conferencing will allow two-way audio and video so that participants can see and talk to people in real time. In many ways, it's reflective of the technology glimpsed in
the future of videophones, but on a larger scale.

The effectiveness of videoconferences lies in the ability of participants to observe and react to the body language, facial expressions and intonations of voice. While web
conferences are still limited somewhat in this feature.

Conversation is possible in both mediums, though it takes some experience with web conferencing to make it personal. Though it is true that web conferences are about the
dissemination of information and not the socialization of individuals for business purposes.

There is an international standard for videoconferences and this allows diverse software to communicate easily. There is usually one standard location for a video conferencing
server that takes in all the information and then distributes it to the other conference locations.

This can be expensive depending on the number of connections. Also, the hardware that this requires includes video cameras (or a web cam), microphone, and speakers in
addition to the P.C. hard line connections and hub server. Web conferences are limited by only the requirement that an Internet connection be available.

Web conferences can run to tens of thousands of users, but the number of users in a channel limits videoconferences by the capacity of their own server. Web conferences are more flexible because they can run over most any Internet connection but videoconferences require broadband.

There are broader costs in utilizing video conferencing beyond the initial expense of setting up the connections to maintaining ISDN lines.

Both types of conferences answer needs in the business community. Ultimately an end user, in most cases the companies that require these services, will have to decide
what serves their own interests. For some, the cost of video conferencing is going to be prohibitive versus the value it returns.

Still others may value the personalization of video conferencing. While it's true that web conferencing has an edge because of its relatively low initial costs, this too could vary upon usage.

Domain Names

How To Really Profit from Domain Names

Have you heard about domain names that sold for over a million dollars? Inspired by this, you imagine registering a great domain name, hanging onto it for a while, and then selling it off to become the next multi-millionaire. It could happen, but don`t count on it!

First of all, many of the truly great domain names are already taken. Second, the dot com bust took some of the wind out of inflated domain name prices. (If you sell your domain name for millions of dollars worth of stock in a publicly traded dot com flop, what is the name really worth?).

The cybersquatter buys domain names totally on speculation. Sometimes he will register names of famous brands, companies, or individuals. Time and again, these domain name speculators learn the hard way that they must respect intellectual property rights. They hope that some large corporation will pay big bucks to them for the use of the company`s own (already trademarked) name. Instead, they end up with threatening letters from a law firm for their attempts at extortion.

However, you can still make money from domain names if you are sensible in your approach. Here are some suggestions on ways to profit.

1. Affiliate Programs: Use your domain name to promote an appropriate affiliate program. Either redirect to the affiliate site or write a review that links to them.

2. Informational Sites: Create content and then profit from it by earning advertising revenue through Google AdSense or a similar program.

3. Redirect to Your Own Site: Some reasons you might want to do this include preventing competitors from using a particular domain name and benefiting from searches some users perform by domain name. (For example, if they wanted to order flowers, they might just type "flowers.com" in their web browser. You could get some traffic and sales this way.)

4. Product Sites: Create your own or sell someone else`s product appropriate to your domain name.

5. Park Your Domain Names: You might feel that your name has real potential for resale value. There are companies that will allow you to park your domain on their servers, advertise that your name is for sale, and split advertising revenue with you.

The trick is to generate traffic for your domain name. That traffic in turn will create revenue. Then, when you go to sell your domain name, you will have a few things going for you.

First, you will have a fully developed website. A fully constructed building on a piece of land increases the value of the real estate property. Similarly, the value of your domain name is enhanced by a complete and operating website.

Second, you have traffic. Just as a shopping mall with no traffic results in no sales, so a website must have traffic to generate income.

Third, you have income. An income property, such as an apartment building, can be appraised on the basis of its income (as well as other factors). Similarly, the gross income, net profits and cashflow of a website have value. For example, if someone offered you $1,000 for your domain name and website when it was generating $10,000 per day in profits, you would likely laugh at him.

You really can profit from your domain name investments by adding value and properly developing your web properties.

Employee First

Examining the Relationship Between Employee Satisfaction and Customer Satisfaction

Numerous studies have been done to look at the connection between customer and employee satisfaction. A majority of these studies were able to uncover a correlation between employee satisfaction, customer satisfaction and profitability.

In a recent study for an international computer firm, the data reinforced the crucial link between customer satisfaction, employee satisfaction and profitability. Some of the key factors they found:

Profit and growth are stimulated primarily by customer satisfaction and loyalty.

Employees who are satisfied in their jobs provide higher levels of customer service.

Employee satisfaction results primarily from internal high-quality support services and policies that enable employees to deliver results to customers.

Putting employee and customer satisfaction in the spotlight when planning strategy is one of the top priorities for organizations committed to continuous improvement, both internally and externally. Maintaining a continuous flow of information from both employees and customers is how successful organizations are able to continually maintain their high rankings in the marketplace.

At the heart of these endeavors is a strong belief that today's employee satisfaction, loyalty and commitment influence tomorrow's customer satisfaction, loyalty and commitment-and, ultimately, the organization's profit and growth. This belief in practical management is reinforced by a growing body of empirical research. These all-important "links" comprise what is generally termed the "value profit chain."

A recent Gallup survey of 55,000 employees matched the following attitudes with higher profits:

Employees felt they had an opportunity every day to do what they do best

They believed their opinion counted

They sensed that their co-workers were committed to quality

There was a direct connection between their work and the company's mission statement

Yes, it’s true that people need to feel as if they are fairly compensated; but they also want to feel like they are a part of the company and that their ideas and suggestions are important. They also like to feel that they add value and aid in the company's growth.

According to many management experts, the single greatest key to productivity is employee happiness. Satisfied employees are usually energetic and tend to be highly motivated. But, determining what makes workers happy can be a mind-stretching exercise. For years, the belief was that money was the source of employee happiness and retention. While there is no question that money is important, management studies show that it does not buy employee satisfaction. While employees want to be fairly compensated for their efforts, they also want to be challenged and treated with respect.

Here are some suggestions on how organizations can increase employee satisfaction:

Understand why people are working and commit to helping them achieve their goals on the job. Develop a plan that will assist them in getting where they want to go.

Empower workers to do the job you hired them to do. A work environment in which employees are constantly monitored, micro-managed and bossed around can be stifling. While most employees are capable of receiving empowerment, not all will seek it. The overriding motivation for all employees is respect.

Keep employees informed. Share the big picture as to why they are being asked to do what they do and how their work can benefit others. Invite them to share their opinions. Allow them to actively participate in the discussions that lead to business decisions. By including them, you signal that you value their expertise and recognize that they are a valuable asset for the organization. Remember, involvement equals commitment!

Communicate your expectations. Let your employees know what you expect from them in terms of work ethic, quality, honesty and job performance. Do not assume that employees somehow inherently understand what is required.

Take care of the people who work for you. Acknowledge their accomplishments with frequent and sincere recognition. Take time to single out employees who have gone well beyond the call of duty.

Hire the best people for the job, give them directions and tools to do the job and step aside. But, be sure to follow up.

Treat employees the way you would want to be treated. Think about how you would want to be informed of changes and recognized for a job well done. Then do the same with your employees.

Time Is Money

Time Management and Money

I remember how intrigued I was when years ago, and long before I had heard of time management, I recognised the link between time and money - we say that we 'spend' both time and money, and also talk about 'saving' time and money.

Moreover we usually find that in order to save time, we have to spend money, and vice versa. For example, to save time cooking, we

Our decision depends on our circumstances and priorities - someone else might well prefer to save some money and spend more time preparing and cooking a meal.

We make these choices all the time and often have no objective yardstick to show us how effective they are - unless our choices are so extreme that eventually we are totally overloaded with commitments, or on the other hand we run out of money! Constantly trying to keep a balance between spending and saving time and money demands a willingness to keep checking priorities.

This is particularly true of self-employed people starting or growing a business. It can be tempting to try and keep all costs as low as possible and do everything yourself. But this can be counter-productive when you realise just how much is involved in starting and building up a business.

You need to think carefully about money and time management. If you can pay a specialist to do a job and thus free yourself up to do something else, that may be the better solution. Here are just a few examples:

* You might be able to tinker on the computer and come up with a logo and some marketing literature, but how long will that take and will the results justify it? Paying a designer might be a good move.

* Business these days is wrapped around with bureaucracy and you must comply with all kinds of government agencies. Is it better to do all your accounts, wages and admin work yourself or would an employee or virtual assistant do it better and quicker?

* Selling is an essential part of any business and one loathed by many. You can either spend hours on the phone working through directories, or hire professionals to do your cold calling and set up appointments.

* Running business systems efficiently can be time-consuming and repetitive. There are software programs available which reduce the monotony, but they cost money. Another choice!

* If you need to travel some distance for work, consider the respective merits of driving yourself or taking a plane or train. A plane or train ticket may be expensive but you might be able to do some work while you travel and still arrive in good shape.

* You are probably constantly receiving invitations to attend conferences, seminars and workshops. These are often held in expensive hotels and can be pricey. It is tempting to think you can save both time and money by not attending! But you can meet some valuable contacts this way who will refer you work, thus saving your marketing time and costs. At the same time, you may well be inspired with some new ideas to transform your business growth.

* Personal development - when you are working for yourself and have no employer to pay for these on your behalf, training and executive coaching looks very expensive and you may barely even consider it. My own personal experience and that of many of my clients shows that the spurt in growth which comes about when you commit to personal development can move you further and faster than you ever dreamt.

* Holidays and breaks - it is so easy to feel that we cannot stop working or everything will start to crumble. The descent from enthusiasm and motivation to worry and stress is an insidious one which we may not even notice and which has a profound impact on our time management. Give yourself the gift of some time away from your desk, however, and you will return feeling newly inspired and be so much more productive.

Time and money - our investments in both will ultimately pay off in the success of our business and the happiness of our lives. It makes sense to think carefully about the balance.

might buy ready- prepared food.

WHAT DO YOU REALLY WANT TO BE WHEN YOU GROW UP?

DESIGNING YOUR CAREER SWEET SPOT

After a childhood, teen years and early professional life filled with angst trying to please others, it wasn't until I truly allowed myself to focus on where I knew I excelled (or could), on what I was passionate about and on what kind of place would bring out my best that I was able to be intentional about what I really wanted in my career.

Now I know. To be truly satisfied in a career, it must be comprised of exactly those three elements above and a somewhat selfish perspective. Before you start looking for a new house, for example, you make a list of "must haves" and "nice to haves." Same with a new car, yes? Treat your career plan or job search no differently.

It has to start with YOU and your goals.

Get intentional about first carefully understanding what constitutes the three key elements of your ideal role, at the intersection of which you'll find the sweet spot: your ideal career.

3 ELEMENTS OF YOUR IDEAL CAREER

Whether you are a highly motivated job seeker looking for a new position or a gainfully employed professional looking for the "next opportunity" internally, consider these three elements when asking yourself, "What do I really want to do?"

Function

This is the what you do piece. The tasks and activities you're responsible for completing, the role you play, the duties and responsibilities in the job description. Marry your unique MO - how you naturally do the things you do - and your strengths with a role that needs those talents to accomplish the job most effectively and you have a match that allows you to do what you do best every day.

For example, if you are a gregarious brainstorming type who adapts every documented process to address the needs of the current situation and who thrives on experimenting with new ideas to see if they work... perhaps a role in direct marketing planning and analysis isn't for you. (That was me, by the way. For the first 15+ years of my professional life.) No, no, leave that job to a systematic planner who decides, through strategic data analysis, what is feasible to try then carefully measures the results to gauge success and gather information on how to do it better next time. (Thank goodness for me there are people out there like this!)

Passion

The why you do what you do piece. What difference do you want to make? What impact? What will be your legacy? What would make you excited to get out of bed every morning to work on and invest 8+ hours a day?

I'm not necessarily talking about finding the cure for cancer or saving the whales here. Unless that's truly your thing. I'm talking about what you feel is important... what is meaningful to you. Just because your father wanted to fill the world with song doesn't mean that's what would make you race into the shower after turning off the alarm every morning. When you can work toward making a difference in some area that you feel strongly about, you will apply what you do best every day to something that matters

Environment

The where you do what you do best piece. What does the "place" look like that will allow you to do your best work? Bright, open shared space? Private office? Your car? Outside? What is the culture/core values of the organization? Who are your colleagues (if any) and what are their attitudes, beliefs, work ethic? What are the ideal benefits and compensation?

From the physical space to the intangibles like values and benefits, outlining the characteristics of the right environment is just as important as what you do and why you do it in order to find - or design - the exact right fit for YOU.

How to Build Strategic International Relationships

Just learning how to shake hands doesn’t make you culturally aware. A few learned copy-cat mannerisms and a couple opening lines will not put the global executive into the good graces of their regional leaders. It used to be fine, considering the small amount of time that leaders spent abroad. But more and more, as we see top-level local management strategies that have transparent relationships with each other for alignment and success, building relationships that are strong and solid are absolutely essential in today’s highly competitive marketplace.

In Japan, during the 1980’s boom years, foreigners were falling over each other to grab some of the success that Japanese businesses had created. Many managers learned a little bit of the language, how to eat soup, etc., but they missed a great opportunity to build real bonds. Unfortunately, those bonds could have also helped the Japanese businesses during the ‘90’s.

Today, we are in the midst of a series of dynamics such as, rising new economies, immediate access to customers and speed decision making, so creating and nurturing long lasting connections is a must. Maya Hu-Chan of the Global Leadership Development Center so correctly states, ‘In my work with multinational corporations, my global clients have often pointed out that building partnerships is one of the most important competencies for global leaders of the future’.

To develop powerful partnerships and prevent problematic situations, integrate these five pieces of advice.

· Have a real interest in other cultures and learn about them through food, the arts and music, literature and the areas that give uniqueness to their place the human experience.

· Build partnerships wherever you go with ease. You never force a friendship. You develop it. Become an open access point of assistance to your host reports, superiors and especially those horizontally. Encourage others to do the same.

· Listen, Listen, Listen! This may be one of the great challenges for human beings, but it is an essential skill for trust. Don’t just listen with your ears, but apprehend the individual with all of your faculties. Go beyond their special behaviors and reach for what they are trying to communicate.

· Never be patronizing. This may be very difficult for some cultures that have been taught they are the best. Be careful not to appear paternal or on a higher level than other people. Also pay close attention to how you phrase comments about their culture. This is also true for spouses of expatriates.

· Get out of your shell. The higher you go up in an organization, the more insulated you become. Mingle with different people with different interests and you will be well prepared to meet the exciting challenges of interacting with all types of personalities from all over the world.

By putting these five points into action will give you a basis for working in all environments and with all cultures. Of course, each culture has unique aspects that give them their own perspectives on business and life, and we are all unique individuals with unique behaviors, but having a real sense of how we can make deeper connections profoundly helps us move forward together.

Making Your Mark

Key elements for a lasting impression with your customers

This Week's focus: Unicycles, Foreigners and Free Publicity

My time in the South Island earlier this year was eventful. Amidst the myriad of accents, the flying unicycles, the dizzying altitudes and small armadas of insects, I found very little in the way of normalcy.

The month was January, the tour was SINZ (South Island New Zealand), the people were insane. Not just your regular insane either, this is insane to insane people, the kind of people who've gone all the way through insane and come out the other side, complete with unicycle, annoying bell, and novelty straight jacketNaturally, they were celebrities. From my perch in the support van, I attempted (and often failed) to make myself useful to Connie, the superwoman who held everyone together, and I discovered something wonderful. When people think you're crazy, they're a lot nicer. I became a hit with everyone I met, in Wanaka one of the riders received a hi five from a passing skaterboarder and went head over heels in mid pedal, I later met the sister of the flatmate of the offending skateboarder at a bar and engaged in a twenty minute conversation while Ken, the tour organizer, waited for the wine I had been sent to order. The riders were immortalized in a million photos from foreign cameras as tourists came to wonder whether this was a regular occurrence in New Zealand. Reporters came from everywhere to meet the group; interviews were conducted at backpackers, on roadsides and at the occasional café. The jokes kept repeating themselves, I can tell you just about every unicycle joke in existence, and Ken has a bulging scrapbook of press clippings containing each and every one of those awful, awful one liners. Let me reiterate my point to you though; these people are crazy. They tackled the steepest street in the world on unicycles, one of them punched a glacier (I still have the water from the chunk of ice that fell off), they rode 160km in one day through gale force winds, they even have their own slang, their own community, hell, they've got their own website.

The point? These people didn't pay a cent for publicity, and everywhere we went I was hearing about them before they arrived. People love a nutter. They love a group of nutters even more. Ken sent out a simple press release, and bang, every newspaper in the South Island wants to meet this loony bunch. So how can we harness this powerful tool of free publicity and twist it to suit our nefarious purposes? Well… Gimmicks

Having something just that little bit strange about your business is a great conversation starter, it's a way of getting people laughing, and more importantly, getting them talking. An ongoing gimmick, even better, one that's interactive, is fantastic way to not only get attention, but to build your business a long lasting market presence, it also gives you a base from which to work your marketing, an ongoing theme, adding a consistency to your image. Events

Organise something a little bit different, sponsor a teddy bears picnic, hold a funny hat day, if you do something a little wild, and then let people know, you'll attract interest, it's a great of throwing your name in a positive light. You can use it to reach out to your market and the people around them and reach them in a way that builds trust, because you took the first step without pushing them to buy. And better yet, you did it will they were laughing. Press Releases

One of the best ways to get the word out to traditional publications is a press release, it doesn't have to be long, the press release for the SINZ tour was less than half a page, but it detailed when the riders would be in certain locations, what they were doing and generally outlined how funny and bizarre these people truly are. This was more than enough to entice reporters out to meet us as we entered and left towns, and the best part is, they did all the work. Ken, the tour organizer, simply had to email half a page to fifteen or so newspapers, and the word got round. People were talking about us days before we got to them, and you only had to mention a unicycle before people knew who you were. And what did it cost? Not a thing. So be a little funky, and let the people come to you. Wealth, Success, and Unicycles,