All We Have are Moments

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Written by Charmaine Attard, General Manager Hilltop Gardens and Simblija Care home
Elements of the “Butterfly Model” were included in the framework used for the Butterfly Unit in Simblija Care Home. The Butterfly unit is a memory support unit that houses residents who suffer from different degrees of dementia.

Dementia is not a specific disease. It’s an overall term that describes a group of symptoms associated with a decline in memory or other thinking skills. The condition can become so severe that it reduces persons’ ability to be themselves. Unfortunately there is no cure for Dementia. What we can do is help ease the symptoms and concentrate on giving person-centred care to individuals suffering from this disease which in turn would give them a better quality of life.

People are fundamentally emotional beings and although they might forget how to boil water or might forget the name of their child – they will react to the kindness they will react to something like a smile. The “Butterfly Approach” for dementia is based on empathy and activities that are focused on the moment.

It is a feeling of “being with” and not “doing to” the person.

One example that I would like to share is one of the resident rooms’ doors. Following the “Butterfly approach” which promotes individuality, we introduced the “memory box”. In n a regular unit the door would have a number however numbers might not mean much to a person with cognitive decline. A memory box is instead put outside of the client’s room with pictures the client may recognise, be it of them as a child, a picture of a parent, their wedding day, or a logo of their favourite team. These images act as wayfinding and help clients identify their room. Things like these touch people at the core of their emotions and in turn produce a reaction.

Another element used is colour and imagery on the walls. In all the rooms, the common room, corridors, and bathrooms colour is used to either colour-code a particular area, such as the toilets where the colour serves as a guide or acts as a trigger to elicit positive emotions. Doors of client rooms are made to look like front doors painted in the client’s favourite colour giving a sense of home and belonging.

Latest statistics show that there are around five thousand Maltese suffering from Dementia and this number will double by 2030. This means that measures to assist and care for people with Dementia have to receive wider recognition and use.  Nurses and carers need to be trained to think differently where dementia care is concerned and trained in giving person-centred care instead of the normal clinical care sometimes lost in bureaucracy, systems and procedures. In this way, dementia wards can portray real homes, heartfelt staff, engaging environments, and people really living good quality lives.

“As we become more emotional and less cognitive, it’s the way you talk to us, not what you say, that we will remember. We know the feelings, but don’t know the plot. Your smile, your laugh and your touch are what we connect with. Empathy heals. Just love us as we are. We’re still here in emotion and spirit, if only you could find us.” (Christine Bryden 2005)

The Answer is in the Balance Sheet

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Written by Michael Warrington, Chief Executive Officer AX Group

Business restructuring is tricky. There are a number of angles that can be adopted to turn a business around but the approach that I have always preferred is to start with a close examination of the balance sheet. It is there that many of the answers to the strategies that would be adopted will lie.

The balance sheet tells the story of what the business owns and what it owes. By delving into the numbers one begins to understand the challenges and opportunities that the business is facing.

Throughout my career, I have found business transformation exciting. I have been involved with numerous businesses in different industries varying from banking, travel and tourism, airline, construction, development, hospitality, healthcare, and financial services. In each of the businesses, I was always able to identify the key elements that made the business successful and then to look at the processes and identify ways to simplify and automate things.

I have been involved with the AX Group for almost 20 years and during that time I have seen the group grow and flourish. In the early days, the group was asset rich but like many companies in their growth phase, cash flow was challenging. I developed a good working relationship with AX Group chairman Angelo Xuereb. The combination of his entrepreneurial skill and my own financial acumen has served the AX Group well. One of the biggest tasks for the group was the transition from a family-run business to a corporation with a clear second-generation succession plan in place and strong management structures being implemented.

I think our prime objective now is to build clear structures within what is a very complex group of companies and to instil a culture of how structured decision-making should be undertaken. It is growing into a more formal and corporate structure than the one that existed in the past.

The group is also focusing heavily on its IT infrastructure to efficiently analyse market information and make informed decisions at all structure levels. I continuously ask myself questions about how we can improve things as there is always room for investment.

The group is asset rich and given the nearly 45 years of the company history, there are assets that are already in different stages of their ‘life’. AX Sunny Coast, which has been the first hotel investment is now 40 years old. One has to look at the property and ask if it stands the test of time or should be adapted? AX Group pioneered the timeshare market at the time. The self-catering apartments were big with large kitchens. Maltese and foreign holidaymakers alike travelled in big numbers. Perhaps families were bigger, perhaps the way people travelled was different. In either case, today people hop on a Ryanair for a weekend break and they don’t necessarily need large indoor areas for their leisure. These are the types of discussions and decisions that one has to make when looking at the business and its balance sheet. It will make me ask these questions and dig deeper to find the answers.

Spread the net wide but don’t spread yourself thin

The diversification from AX Construction to AX Development happened fairly quickly and was a natural progression. The Group built capital on the construction work that was contracted and started investing in the development of its own properties. The big jump was into hospitality. AX Group wanted to be involved in long term projects that would contribute to the economy of the country. We acquired land in Qawra that was ideal for hospitality development. With the right set of people managing the projects, we developed two properties that mark the beginnings of the AX Hotels chain. The next step was diversifying into care.

Before the AX Group decided to branch out into the care business, which in itself has certain similarities with the hospitality business, the management team carried out a gap analysis in order to understand the strategic assets that were essential prior to take this bold move. In this process, we learnt that we already acquired a number of them already namely the centrality and neighbourhood of the identified site, secondly the technical expertise required to develop a large scale project and thirdly an extensive experience in the four-star and five-star hotel industry. The gap analysis clearly identified an opportunity to acquire talent and expertise from the healthcare sector. We moulded it into the business and created a unique concept – the first retirement village on the island – Hilltop Gardens and Simblija Care Home.

Additionally, the reason for going into the care business was that unlike the construction and tourism sectors it isn’t characterised by cyclical fluctuations.

Work smarter not harder

Innovation more often than not is not revolutionary. It’s what they call creating a better mousetrap. Creating an evolution to what is already there but adding value to a process, to the operations in the restaurant, responding accurately to the market’s needs. These are very important mechanisms that improve the success of the group and the efficiency of my teams. When we acquired Luzzu a couple of years ago we knew that it was a very popular family place. We felt however that it didn’t address an important element that families encounter when going out with small children – entertainment. And so we created Luzzu with a dedicated large play area.

All I can say is that it’s been a very successful journey so far and I am looking forward to the exciting projects in the future with a view to delivering significant shareholder value and returns.

Don’t Put all Your Eggs in One Basket

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Written by Albert Bonello, Chief Financial Officer AX Group

One of the most difficult decisions that businesses face across the globe is whether to diversify or not. Business diversification can open up a number of opportunities, but the risks and uncertainty tied to this strategy can have long-term repercussions. So why do businesses opt for diversification?

The first thing that comes to mind is the concept of spreading the risk. It’s smart to hedge against fluctuations between industries, looking towards different audiences, evolving what the company knows about customers’ needs and their expectations.

Unfortunately, I have seen some businesses realise the need for diversification at a very late stage and hence the circumstances in which this critical decision is taken are generally rushed and not properly thought out. Managers and financial analysts are under pressure when asked to prepare projections, analyse market trends and look at competitive benchmarks. So what factors are to be taken into consideration to achieve a structured approach towards diversification?

Companies need to carry out internal analysis to identify the processes and abilities that generate sustained competitive advantage, which competitors cannot easily obtain. These are very often referred to as strategic assets. Such strategic assets may be a management team with strong entrepreneurial skills, the company’s superior purchasing power, or an extensive customer knowledge base in a specific industry. For instance, for the AX Group, the diversification from the construction industry into development happened fairly quickly. The Group built capital on the construction work that was contracted and started diversifying into the development of its own property portfolio.

Very often, companies fail with diversification because they assume that having some of the identified strategic assets is sufficient. Therefore, companies must ensure that a proper gap analysis is carried out to ensure that they have all the identified strategic assets in hand prior to moving forward with diversification. Any missing strategic assets can either be acquired externally, developed internally or be adapted to accommodate better customer expectations. Very often the strategic assets held need to be moulded and adapted to fit with the strategic assets acquired in order to create synergy and finally result in a successful diversification strategy.

A long-lived successful diversification strategy is one that is unique; not easy to imitate or substitute. How easy is it for competition to catch up by acquiring or imitating strategic assets built? Can competition create similar strategic assets that might be an alternative to customers? For example, Amazon had initially started as an online bookseller but eventually, the company became the largest retailer of consumer goods, even if it lacked a physical store network. Amazon was able to leverage its existing strengths by identifying and adopting the strategic assets necessary to create an alternative to the traditional retail industry.

Shareholders and investors alike would expect that a successful diversification strategy will give a competitive edge against other players. Before the AX Group decided to branch out into the care business, which in itself has many similarities with the hospitality division, management carried out a gap analysis to understand the strategic assets that were essential prior to take this bold move. Many of the strategic assets were already held by the Group. A few of these strategic assets were the centrality and neighbourhood of the identified site, the internal technical expertise on how to properly plan and develop the property and the extensive experience in the 4-star and 5-star hotel industry. Notwithstanding, a number of strategic assets and processes had to be adapted and acquired. For example, the Group had to acquire knowledge of the healthcare industry and eventually mould this knowledge with the existing hospitality and development processes to create a unique concept.

Above all, a structured approach towards diversification will lead to organisational efficiency that will enhance the internal expertise and knowledge for future diversification decisions. If planned well, diversification will lead to organisational growth and ultimately increase shareholders’ wealth.

 

Succession Planning in Family Business

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Written by Michael Warrington, Chief Executive Officer  AX Group

In Malta, most local businesses are family-owned and managed. Many of the businesses are passed from one generation to the next. A relatively small percentage of businesses make a successful transition to the next generation. The reasons why so few transitions succeed are varied. Internal family differences often play a major role in the demise of successful businesses.

Finding the right balance between the business needs and the family perspective is never an easy task. The family interactions and motivations are normally very different from those of the business. The challenge is to balance the interests and conflicting goals of family and business.

Although many business people talk of succession planning, in practice there is a significant difference between what the owner/manager perceives and what needs to be done in reality to ensure the continued success of the business and the maintenance of a healthy family rapport.

Succession planning needs to commence at a very early stage in a business-owning family. Children are naturally curious about their parent’s work. Many founders of successful family businesses find it challenging to balance the family needs and the business demands. The consequence is that one or the other gets more attention at one time or another. These compromises are then the root cause of the long term issues that undermine family unity and ultimately the business.

There is no universal route to success. Every family needs to discern and discover the path to adopt to optimise the probability of the business surviving a transition from one generation to the next.

Here are some suggestions on strategies that should increase the probability of a successful transition.

 

1. Freedom of choice

Every parent will tell you that each of their children is different and unique. Much as the founder of a business may wish that their children will follow in their footsteps and do a good job of it, it is not a given. From an early age, children need to be allowed to understand that they are free to determine their life’s journey, that success is not only determined by them being active in a family business nor that there is an automatic place for them in the business.

2. Family and corporate values

Strong businesses are those that adopt family values and apply them within the organisation. These values guide the employees and stakeholders who interact with the company on what can and cannot be done. Businesses then set the tone on the work ethic, loyalty, honesty and integrity expected from both the family members and employees.

 

3. Meritocracy

Businesses tend to do well when authority and responsibility are determined on the basis of merit. Hard as it may be for family members to accept, it is in the long term interest of the family as much as the business that people are appointed to positions of authority on the basis of their competence and skill.

 

4. Setting the rules – The family charter.

Developing a family charter which is a document that sets out some key principles that each family member should understand and follow is also an important milestone for success. The charter would reflect the family values and set rules on everything from ownership rights, active participation in running the business and passive ownership, appointments to key roles within the business, engagement and participation of spouses and children in the business, compensation and drawings from the business, the resolution of disputes and non-competition with the business interests.

Most family-owned companies start off with a single founder or a founding couple. The founders are usually ambition-driven, passionate and very focused on the success of the business. They are usually very hopeful that their offspring would be inspired by the business and choosing to stay in it would be a natural choice.

The hardest part of the transition process is letting go. The founders are often reluctant to let control out of their hands. The ease with which they can do so is determined in a process very similar to when their children took their first steps to start walking – the initial interest, learning the ropes, building confidence, failing and trying again – with the firm but gentle hand of the parents to guide the children along.

The Pitfalls of Part-Time Work

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Written by Denise Micallef Xuereb, Construction & Development Director AX Group 

I believe in women and feel strongly about their entrepreneurial skill sets. As a company, we have always promoted women, even in high ranking positions. Locally, however, I feel that, although the situation is constantly improving there is still a long way to go. The figures still highlight poor female representation on boards and in leadership positions. Now the reasons for this are many but one element I can see is that many companies offer women part-time work instead of allowing women to work full-time and on flexible terms. Part-time work will only set them back and, potentially, will not allow them to achieve the same goals as their male peers. Now obviously that does not go with every position and with every role but that is very a probable cause why we don’t see as much female representation in higher corporate positions. They are just not around for the promotions! 😀

Another reason is also a question of mentality, I call it sometimes “self-limitation.” There are many women I know that are insecure about their own abilities, clouding themselves with a lot of doubt, questioning their abilities to venture out to be able to arrive at those top positions. Sometimes it’s just a simple thing of asking for what one deserves. This, coupled with social pressure coming from extended families or friends to quit jobs when they marry or have kids, or even possible guilt feelings when it comes to the family-work balancing act. Yet, these feelings of self-doubt need to be tempered with the realisation that women are capable and have much to offer. Women are born organisers and multitaskers. At least all women I know are! ☺️ Indeed, women should be on boards knowing they have earned the right to be on that board just like anyone else.

Quotas may be counterproductive since they might create even more insecurity. Women should be on boards because they want to and are encouraged to do so. If I were a woman on a board that had a quota imposed on it, I could question why I really am on that board. Am I there because I really deserve to be there or am I there to satisfy the requirement? This might create even more insecurity.

On the other hand, businesses that adopt more family-friendly practices and allow for continued awareness will encourage other women who are still contemplating how they can succeed at managing their work-life balance. Part of this is the realisation – across the board – that both parents need and should be able to opt to go to work. The moment we see husbands going to parents day, husbands (partners) also asking for reduced hours or demanding paternity leave I can see the mentalities shifting even further than today.

We should be able to decide for ourselves what we want in our do in lives. I am proud to be surrounded by women in my office. So, what we need is for policies to catch up to really make it easier for women to get to the top.

Every Cloud has a Silver Lining

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Written by Romina Pace, Head of Human Resources-AX Hotels

None of us could really understand the impact of COVID-19 when it struck us way back in March.  The only certain and common factor amongst different nations and communities was our undeterred focus to protect and safeguard our loved ones, the elderly and the vulnerable, healthcare workers and front liners.

Over the past eight months, we’ve all witnessed the global impact and severe consequences of this virus and it has shocked us beyond our core. The pandemic has challenged us all to rethink, reassess and re-evaluate our priorities, amongst great difficulty, ambiguity and uncertainty, both on a personal and professional level.

Many companies went above and beyond to ensure that their task force retained their livelihood during these hard times and the government’s grant to support employment has surely helped to save jobs.  Unfortunately, I also recognize that not everyone is as fortunate or well-equipped, especially businesses that were small or had just started out.

The strategies that the authorities implemented to flatten the covid-19 curve such as social distancing, stay-at-home orders, travel and mobility restrictions have resulted in the temporary closure of many hospitality businesses and significantly decreased the demand for businesses that were allowed to continue to operate.

There are times where in this situation, most people feel deflated, disheartened, and drained and it is normal that most of us feel this way.  I always remind myself that there is no harm in looking at the bright side of things and thinking with a positive outlook.

I strongly believe that the only way to cope with this upheaval is by sticking together and making the best use of everyone’s strengths. Throughout all the chaos that characterised 2020, we’ve come to the realisation that life is too short, and tomorrow is not a guarantee.  We must find ways to make it better for our own good. Let us remember that every cloud has a silver lining so we must never give up on life, life is beautiful. Let us be a light in someone’s darkness.

Don’t Try to Fit a Square Peg in a Round Hole

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Written by Denise Micallef Xuereb, Construction & Development Director AX Group 

Speaking at the Malta Chamber’s A Family Affair conference, Ms Xuereb said that the key to success was by not trying to fit a square peg into a round hole – meaning that the succeeding generations had to take up the role not out of obligation but out of choice.

“Many people in Malta don’t distinguish between shareholder and director. One can remain a shareholder but not necessarily be an executive or non-executive director,” Ms Xuereb said, adding that not everyone necessarily had the expertise to move the business forward and that there was nothing wrong with having a non-family member at the executive level.

Ms Xuereb said that there needed to be time allowed for the process and that the first seed for transition dated years back. “The extent to which non-family members are involved varies from one business to another.” She said the company implemented the necessary organisational and financial structures, including an audit committee and a board of directors. “We needed to have the right checks and balances in place. We were thinking of children and further generations.”

The second generation of a family business is only as successful as the first allows it to be, Ms Xuereb stated. “It’s not easy for the founder to accept that their time is nearly up and that they might have to take a step back to, but in our case, my father had the foresight to start early. He would ask for my opinion and encouraged me to pursue my own solutions even when we disagreed. He said we would need to be able to stand on our own two feet, even when he was out of the picture.”

Ms Xuereb also shared some tips on navigating the relationships involved in a family business. “You have to keep work at work and family. Arguing at work is not a bad thing, but then you may end up facing that same person at a family event. You can’t bring sisterhood into the boardroom – you have to maintain the distinction between family and home. It’s not easy, but as long as everyone tries to keep the two apart, it can work.”

Stating that there were no hard and fast rules to follow in success, Ms Xuereb said that what can work for one may not work for another. She concluded by sharing three key thoughts – “respect the core values of the business; know your personal strengths and limitations; and accept that change doesn’t happen overnight.”