Deloitte Malta will hold its first annual forum this week, bringing together business leaders from a range of sectors for key discussions on ‘driving change and transformation’.
“We wanted to get people together to discuss the difficulties, challenges and opportunities facing businesses today,” the company’s financial advisory business leader, Raphael Aloisio, told Times of Malta.
“It’s a catalyst for debate and about trying to find ways we might enhance discussions about important topical issues… to allow business to share their experiences.”
Noting that many Maltese businesses are in their third generation, Aloisio highlights that “87 per cent of companies don’t get beyond the third-generation hurdle”.
This, he says, in addition to a tendency for companies in Malta to be “slower to take the actions needed to evolve and grow”, means looking ahead is more important than ever.
“Today, it’s about putting in place new structures that enable you to face the challenges ahead and turn those into opportunities. This is what it’s all about: can you turn challenges into opportunities?”
Typical examples
Aloisio notes the importance of this on the national level as well as in terms of individual businesses, pointing to the development of Malta’s gambling industry as an example.
“When gaming was first identified, it was a niche, an advantage,” he says.
“The things that it needed to succeed were addressed and now it represents over 20 per cent of our economy. There are other examples of this, such as aviation and tourism.”
“Essentially, whenever we put in place a structured and holistic approach, because of our size as a country, these things turned into a big advantage” he adds.
Global employer services leader at Deloitte Malta, Chris Curmi, agrees, stressing the need for such changes in today’s rapidly changing business environment.
If people just keep adding to supply because that may have worked in the past, as a long-term strategy it becomes ineffective
“There has been such unprecedented disruption in marketplaces and in the global situation that, unless companies are looking towards radically transforming their business model and creating growth opportunities, they fall behind,” he explains.
“Companies need to constantly be implementing an ongoing strategy for reviewing their business model, including points such as acquisition of talent and use of innovative technologies,” Curmi adds, highlighting the importance of tools such as artificial intelligence (AI).
“There’s a panel discussion at the end of the conference featuring leading business entrepreneurs such as Matthew Bezzina from eCabs,” he notes.
“They all represent companies that have revolutionised their operations due to successful business transformation models.
“Take Toly Group, for example, headed by Andy Gatesy who will be joining us on the panel.
“Over 30 years they have grown their turnover from €6 million to €100 million. Had they not undertaken the business transformations they have over that time, they would not be where they are today.”
Changing dynamic
Malta looks set to be one of the fastest growing economies in the European Union this year alongside Portugal and Ireland, according to statista.com.
In addition to investment, this is likely to attract more workers from abroad, a changing dynamic which, in Aloisio’s view, will necessitate businesses taking into account the expectations and experiences of international workers and the younger generation.
He points out that, while 20 years ago a multinational workforce would have been unusual for a company, this “has become a reality” in today’s business landscape.
In 2021, one in four of Malta’s population was born abroad, with 76 per cent in employment, according to the National Statistics Office (NSO).
When discussing the challenges and opportunities the country faces internationally, Curmi is clear that continuing to enhance infrastructure to support the adoption of new technologies is important, “as is making the cost of doing business out of Malta efficient and retaining a competitive edge”.
“Malta needs a competitive edge,” he stresses.
“Certain businesses in this country would have issues with the increasing costs of doing business out of the country, which is fundamental bearing in mind that our main resource is human capital at the end of the day.”
Continuing existing business practices can also be dangerous, Aloisio warns, citing the issue of oversupply in the hospitality sector as an example of this.
“If people just keep adding to supply because that may have worked in the past, as a long-term strategy it becomes ineffective.
“Some decisions can be seen as taboo in a company,” he contended, pointing to alternative strategies such as large-scale structural changes.
“However, it is important to realise that continuing one aspect of your business, acquiring new assets or merging with another company are things that need to be considered in the current climate.”
Forum to focus on six area of business transformation
Deloitte Malta’s forum on January 19 focuses on six main areas of business transformation – mission, insights, process, technology, talent and integration.
These, alongside digitalisation, are fundamental, global employer services leader at Deloitte Malta, Chris Curmi says, reiterating the need for change in a holistic and comprehensive way.
While encouraging businesses to adopt these strategies as soon as possible, Curmi goes on to stress that the changes the forum that will be held this coming Thursday will advocate are built on “the experience reaped by the work of Deloitte International, in addition to the wider overseas network. In summary, clients need to anticipate and own the disruption. If you don’t own the disruption, you’re going to fail.”
”Financial advisory business leader Raphael Aloisio warns that “if we don’t change our pace of reacting to changes, we could see serious repercussions, not just on an individual company level but on a national level’.
“When you’re reactive, you go through pain and losses before turning things around; when you’re proactive, it’s much easier to stay ahead of changes,” he says.
“In short, accept it then own it.”