Corporate Governance is a Journey

 Joseline Kateeba is not a natural runner. She however loves to run. She says that she travels to run and has participated in marathons in Uganda and Nairobi, Kenya. It is the sense of achievement she derives from running that leads her to sign up for these marathons. And as she runs in marathons, she also runs a business. She is the Managing Director at Crest Foam, a leading manufacturer and distributor of flexible foam in East Africa which is based in Kampala, Uganda. Before she assumed her current role, she had amassed a wealth of experience in the corporate world which she has used to formalize her family’s business. Here is her story:

 Are you a lover of books?

 I am, though I sometimes struggle to make time to read. But I am trying to get that discipline to where it needs to be.

What book are you currently reading?

 My current read is Africa’s Business Revolution. Typically for me, I am very reflective at the beginning of the year. Its focus is on success stories in Africa and helping people who want to do business in Africa understand the continent’s dynamics and navigate their way to success. I was surprised when I learned that as of 2017, 400 businesses had annual sales of 1billion dollars or more. This goes to show that there are very many opportunities in the continent and that we are growing at a fast pace. It is a very interesting book, and I am looking forward to getting through the rest of it.

What do you do to kick back and unwind when you are not at Crest Foam?

 I love to run.

Running represents many things for me. It helps me to stay fit and clear my mind. I also get a sense of accomplishment from running. I have done a couple of half marathons and I would like to push myself to do a full marathon.

I also love to travel and making connections. New experiences excite me. They force me out of my usual mode of thinking by exposing me to new people and ideas. I find that this enriches my perspective.

What is the one destination that is top of your bucket list that you would wish to travel to soon as a semblance of normalcy returns?

I want to explore Asia a lot more. I have been to China, Thailand, and Malaysia, but I have not been to Korea and Japan.

Japan would be exciting because of the amazing advancements in technology. They also have the fastest trains and traveling in one would be an incredible experience.

Just so you know, dear reader, the Japanese bullet trains are called Shinkansen. They run at speeds of up to 320km/h and are known for punctuality, comfort, and safety.

I am very keen to expand my Asian experience because we also have suppliers from the region. I would love to understand how those countries function and explore the opportunities there and hopefully expand our supply base there.

Talk about your first-ever board experience. How was it and how did it impact your professional life?

 It was short-lived. My then employer was transitioning out of a joint venture and I was appointed to represent the business. I only attended one board meeting and therefore it was not as exciting as I would have wished.

My most impactful board experience has been with, NC Bank Uganda – now known as NCBA after the merger with CBA Bank.  Banks have very strict corporate governance.  They have very clear guidelines that they must adhere to, and they endeavor to get it right. This experience has broadened my understanding of what corporate governance is all about.

In your mind what constitutes an effective board?

 For starters, an effective board has an excellent understanding of its mandate and is also empowered to execute this mandate.

Secondly, a board is like a team and an effective board is a high-performing team. A board requires strong leadership and thus the role of the chairperson is critical. The chairperson plays a pivotal role in steering discussions, encouraging participation from all members, and ensuring that key decisions are made.

One other crucial aspect is on board composition. There must be a diversity of perspectives on the board. At an individual level, board members must be committed to the course. They should read the board papers prepared for them and try to have a good understanding of the environment in which a company operates. An inquisitive mind is a character trait I would go for in a board member.

Dear reader, does this mean that the Inquisitor’s inquisitiveness might make for a good board member?

What would you tell an entrepreneur out there who is oblivious of corporate governance?

 Corporate governance is a journey. If you are a startup, you might want to consider establishing an advisory board. Your focus should be on how the board member’s experience will help you surmount the challenges you will encounter as you grow your business.

You need not have the ‘traditional’ committees while you are starting but you need to have a ‘table’ where you can present your strategy, business performance and have a debate on these issues. Your ‘corporate governance’ setup need not be like that of a mature company. You need to have an informal framework that gets you started on this journey.

Do you have a board at Crest Foam?

 We do.

We have had an advisory board for a couple of years, and it comprises four members: two executive directors, myself and my mother, and two independent directors.

As I have mentioned before, corporate governance is a journey, and we are making strides. We are hoping to end the year with three independent directors on the board. 

How has your board experience impacted your approach to leadership at Crest Foam?

It has been very instrumental. When I joined the company in 2014, I was intentional about empowering the board. We had a board, but it was not meeting regularly. In my position as managing director, I felt that I needed to be held accountable for my decisions. I felt that it was important.

There is no major decision that I take at Crest Foam without an extensive debate at the board. If it means that we slow down and take more information in so that everyone is comfortable then that is exactly what we do. I find it very beneficial when you have people ensuring that you have considered every possible angle in the decisions that you make. It is helpful and refreshing all at the same time.

What should entrepreneurs be aware of as they set up and incorporate family members in their businesses?

 Professionalism for me is non-negotiable. Family members should be subjected to the same screening process and performance reviews as everybody else. For someone you are grooming for purposes of succession, they should start at the lowest possible level. It is very important for people to appreciate jobs at all levels as well as to understand and build relationships at those levels. This will make one a strong and capable leader with time.

A business exists to make money and to achieve this objective, people and talent management is essential. Therefore, the right person must be appointed in the right position and subjected to performance assessment and reviews. Family members are no exception. Professionalism is a ‘culture’ thing and a functional culture in an organization is a prerequisite for prosperity. That is a no-brainer.

What led you to go back home following your exploits in the global corporate space?

 My mum had been hounding me to go back home for about two years. Laughs.

It was not an easy decision, to be honest. I was enjoying working for Cummins at the time and I was excited with the direction my career was taking. I had however been doing a lot of functional roles, focusing solely on strategy, and in my heart, I desired to get into general management and run a business. I could have done it at Cummins, but it would have been a very different experience because Cummins is a mature and well-financed organization. I needed a challenge.

Cummins is a 101-year-old American multinational corporation that designs, manufactures, and distributes engines, filtration, and power generation products.

I had also been advising for so long and I wanted to be held accountable for some of the advice I had been giving as a consultant. Crest Foam seemed like the perfect opportunity because I felt it was a place I could drive and have a serious impact. I also yearned to give back to my mother because she had worked tirelessly at the company and managed to send us to study in schools abroad. It felt like a daunting challenge but a meaningful one as well. And so, in 2014, I came back home and took up the role of managing director at Crest Foam.

 What challenges have you experienced and had to overcome that you feel other entrepreneurs would relate to?

 People and talent management has been and continues to be a huge challenge for us. Identifying, attracting, and retaining the right staff is difficult. As a small company, you may not have the ability to promote people every two years or increase their salary the way corporates do. Multinationals can offer transfer opportunities and excite people with different experiences.

We rely so much on our network to identify and attract talent. We do this because relying on people’s resumes is not enough. People are quite good at crafting impressive resumes. Secondly, having the right people in leadership positions has helped us build strong teams and therefore ensured that we manage our talent well. It means that people in slightly lower positions have someone they can emulate and desire to become as they grow in experience within the company. Having the right people in the right positions serves as motivation in some way.

We also empower our people by ensuring they have an all-rounded view of their work and company. We move people around within departments and have them represent the company in different forums in industry-related engagement all of which create unique learning opportunities for them. We also encourage and support our staff to advance their education.

What opportunities do you see for youth particularly in Uganda and what can they do to fill these spaces to enable them to impact their societies and their environment?

 The opportunities are immense. It depends on what lens one is looking through and how one is approaching things. Uganda’s importation bill is far higher than our exports and the government has been pushing for import substitution as well as trying to encourage entrepreneurship.

The Ugandan Investment Authority has compiled an interesting list of opportunities and I would encourage the youth to have a look at their website. Opportunities range from producing fertilizer to making rubber and many more. I would start here if I wanted to get into business but had no idea of what to do.

But some of these businesses are capital intensive…

Every endeavor starts small. I draw inspiration from a gentleman I met in 2014 by the name Andrew Mupuya. He is the founder of Youth Entrepreneurial Link Investments. His business has a humble beginning with only 14 dollars worth of investment but has now grown to the level of supplying restaurants, supermarkets, and medical centers with paper bags. In 2012, Andrew was awarded the Anzisha Prize that celebrates young African entrepreneurs. He was also featured on Ventures Africa, CNN. I love Andrew’s story because it shows that no matter how little you think you have, you sometimes actually have so much more than you think. It is your determination and resilience that counts. It also requires an understanding that there are seasons in business, some days will be good, and some will be bad. As an entrepreneur, you must persist.

Crest Foam has 30 years of heritage as you have it on your website, how do you plan to sustain this?

 We celebrated our 33^rd birthday in October 2020. We have had our fair share of challenges, but I am grateful that we are still here and pushing on.  When I joined the business in 2014, my focus was on formalizing the business both at the board and organization level. I am proud because we have made lots of progress. We now account, report, and manufacture better.

Our focus is on growth because we are fortunate to be in a country where the population is growing and as the country’s fortunes grow, so shall ours.   We are hopeful that the discovery of oil will bear wealth for the country. All our energies are now focused on growth.

 The people aspect both at the board and organization level remains a top priority. I mentioned before that people are a company’s greatest asset. We have been cautious in our recruitment, management, and succession planning. We are committed to making sure the organization is professional as it can be. It does not have to be led by a family member in as much as it is a family business. I think we shall make the right decisions that will get us the best outcomes as time unfolds.

Is there any contrary opinion to Joseline’s view that people are a company’s greatest asset? I doubt there is but it would be interesting to hear one. Ideas inspire innovation and innovation drives growth. People, therefore, drive growth. The elements of people management are largely intangible. They cannot be quantified and this explains why it is difficult to manage.

 Here is the Inquisitor’s take: Joseline is a seasoned director who sums up corporate governance pretty well. She says that it is a journey. I would add that it’s a voluntary journey. One that you willingly go on. It is a journey that will be successfully traversed when the individual understands that people are the drivers of growth in a business. As the African proverb aptly states, if you want to go fast go alone but if you want to go far, go together.

 The Inquisitor