Dar es Salaam. After having kept a low profile since stepping down as Managing Director of CRDB Bank in October 2018, Dr Charles Kimei is once again making a name for itself.
The Former Banker is the author of a book that shows what top management in the banking industry needs to do to take their institutions to the next level.
Entitled Career, Finance & Leadership, the book emphasizes the need for senior management to focus on the diversification of production and distribution systems, as well as the successful implementation of strategies.
It suggests the need to be methodical, empirical and consistent. Board members and CEOs need to be “aware of hindsight or bias in results.”
According to the author, CEOs – especially in banks which are primarily ICT-focused institutions – should seek to know the basics of basic banking systems, as well as define the right vision and mission.
Diversifying production and distribution is the strategy for sustainability, while staying in the same market is the strategy for maximizing profits, he pontificates in the book, which was officially unveiled in Dar es Salaam on Friday.
“You have to find a balance; but most CEOs strive for sustainability more than profit, ”notes the longtime banker. Dr Kimei – who has successfully led CRDB Bank’s turnaround strategy for more than two decades – believed that if banks are to make profit maximization a priority, they need to focus on one important thing that would add to their competitive advantage for a defined period.
Without being methodical, empirical and consistent, he says, the institution would be like a ship with an erratic captain trying to do things he has never done before in the face of a storm. Emphasizing that positive reinforcement works better than negative reinforcement, he states that “no creativity or innovation can take place in an institution where leaders act like terrorists every time someone makes a mistake – or misses a target.” .
When it comes to awareness of the results bias, he says, decisions made by CEOs should not be judged on the basis of their results, but rather on whether or not they were made according to healthy and acceptable processes – and within approved limits.
Regarding ICT, Dr Kimei urges banks to be aware of all the changes needed in ICT to cope with globalization and disruptive trends.
“This is currently the most difficult of all risks in banks – and it is the area most neglected by the old CEOs,” he says in his book.
Above all, the right vision and the right mission are essential because they set limits for everything, including risk appetite and policies to limit risk.
The future of the banking subsector
According to Dr Kimei, the future is bright, especially given macroeconomic conditions and digitalization: artificial intelligence / robotics, mobile digital financial solutions, blockchain and more investment banking and advisory services.
Bank of Tanzania (BoT) Governor Florens Luoga – who had the honor of reading the book ahead of its launch – said Dr Kimei recommends adopting strategic inflation control, as well as a more market-based approach to monetary policy.
Prof Luoga noted that Dr Kimei also advises on using the capital adequacy requirement as a monetary policy instrument to increase credit to the private sector.
“Coming from a person with such a rare experience, the wisdom of his warnings must be heeded,” Professor Luoga said in a press release made available to The Citizen.
“Dr. Kimei set the tone for all to emulate. We need to share our experiences and shape the next generation of banking professionals. The Deputy Speaker of the National Assembly, Ms. Tulia Ackson, described Dr. Kimei as a person who believed in the ideas of others …
It is because he understands that no one has a monopoly on ideas… It is for the same reasons that he has succeeded in taking the CRDB to the next level.
Dr Ackson – who was the main guest at the book launch – said “for an organization to be successful it is very important to recognize that other people can do better than you, instead of thinking that you are. the best of all ! “