COLUMNS
HEADLINES [click on headline to view story]:

Money matters

Snap Shots

Modern Medicine

Learn to Live to Learn

Heart to Heart with Hillary

Psychological Perspectives

Money matters: Keyman Insurance

Graham Macdonald
MBMG International Ltd.

With more and more foreign investment arriving, seemingly by the day, it naturally follows that there will be a large influx of new managers – both local and expat. One of the things that many companies forget when they set up a new operation is how valuable the senior people are to the success or failure of the new operation.

Recently, a managing director of a trading company here on the Eastern Seaboard extended a business loan for a new venture. As the main ‘face’ of the company, he travelled extensively all around South East Asia developing his network of contacts for the various projects he was trying to promote.

After some initial disappointments the company began to do well; it was growing rapidly and, for the first time, started to make significant profits. In fact, the MD had recently persuaded his fellow directors and shareholders to reject the offer of a merger with a large international group. This was because he saw his firm as his passport to eventual financial freedom as he believed that when he did come to sell his shares the company would be a lot larger, well recognised and more profitable. Thus, he would be able to fund his retirement.

Two months ago he was diagnosed as having inoperable cancer and given six months to live. Although he had taken care of the personal side of things by insuring against his personal liabilities, mortgages and his children’s educational costs he had done nothing to protect his company nor had his partners and shareholders. In other words, there had been no Company Keyman Insurance taken out. Also, there was no share purchase partnership cover.

The remaining shareholders and senior personnel then struggled to raise sufficient capital to cover the company’s vastly increased commitments, especially the instalments on the new loan. They also had problems hanging onto orders, clients and staff – all of whom were concerned about the company’s future without its driving force. As well as this, they had to find the funds to pay for the right person to take over as managing director and maintain, nurture and develop the contacts made by his/her predecessor. Eventually, the cost and impact on the cash-flow proved too great and the company folded. However, it would not have done had adequate provisions been made. The cost of good advice on setting up a company, maintaining suitable documentation and taking advantage of the appropriate shareholding structures is insignificant compared to the potential costs of not doing so.

Surprisingly, the cost of Keyman Insurance cover is far less than one may think and could save a bad situation from getting worse.

Every company has at least one key person whose death or disability would have a serious affect on the company’s future or, at least, profit margins. A business owner or sales director may have valuable contacts that, together with the business they provide, could be lost in the event of his/her death. A key technical person such as a research scientist may be vital to the development of a new product. The aforementioned are just a couple of the numerous examples that one could proffer.

As stated above, companies that suffer the loss of a key person will also incur the cost of finding and training a successor. Loss of business may seriously affect cash flow as the company’s overheads, salaries, etc., still need to be paid. When all the facts are considered then case for insuring key personnel becomes crystal clear.

Traditionally, Key Person Insurance has only been taken up by companies in the USA and Western Europe. Businesses throughout the rest of the world seem reluctant to follow this example thus leaving themselves exposed to a huge potential and considerable risk.

It was ironic therefore that a client came to see me recently and asked what had to be done to protect his business if something happened to the senior personnel. After finding out what was required our client looked at Life and TPD (Total Permanent Disability) cover for himself and the other senior director of the company. The insurance was for USD800,000 and USD 400,000 respectively. This would cost the company a total of just over USD3,600 per annum for the two of them on a Whole of Life basis and, if there were no problems, would result in a maturity value payable either to the company or director upon the retirement of the key individual.

As an SME, the company in question pays tax at 20%, so the real cost of the cover was in fact only just over USD2,900 per annum as it is claimable. They are also considering Term Cover as well that would provide protection against a range of critical illnesses as well as giving the option of income protection. This was more expensive at a total of USD5,025 per annum. After a 20% deduction the net cost will only be USD4,020 per annum.

All the client has to do is pass a straightforward series of medical tests – which the insurance company pays for in full.

The case for Keyman cover has been so compelling that some companies including Nestle, Proctor & Gamble and Wal-Mart have chosen to insure every single one of their employees in their home countries.

The above data and research was compiled from sources believed to be reliable. However, neither MBMG International Ltd nor its officers can accept any liability for any errors or omissions in the above article nor bear any responsibility for any losses achieved as a result of any actions taken or not taken as a consequence of reading the above article. For more information please contact Graham Macdonald on [email protected]


Snap Shots: The Man on the Moon controversy

by Harry Flashman

If you are into old, historical cameras, there’s twelve I know of that you can pick up for free! The cameras are Hasselblads, and were commissioned by the US government, and typical of the wasteful throw-away society of today, they just left them when they’d finished. Discarded like an empty Coke can.

There’s only one catch, these Hasselblads were left on the moon! However, with the advent of space travel being just around the corner, someone is going to get themselves a bargain, so it may as well be you. And don’t think that you’re too old for the trip, as the Americans successfully sent John Glenn up into space again at the ripe old age of 77 years. And brought him back again!

They took the cameras up into space, much the same as we take them on family picnics. The concept was to record what life was like for our early space travelers and in fact some of these images were artistically so good that they became a photography exhibition that toured the world in 1984.

The cameras they used on the space missions were closely related to the motor driven Hasselblad ELM, and were actually made by the Hasselblad Company in their research facility in Gothenburg. By the way, I do not follow the lunacy (nice word when we are talking about moon landings) that the Americans faked the whole thing, and it was shot in the Nevada desert. Nor do I believe that Bill Gates is going to send me $500 for sending emails to one thousand people, or similar hair-brained claims.

When NASA began to look at the logistics involved in the moon landings, and the fact that they would like a photo or two for posterity, they began to design their own ‘moon’ camera, which began to look like a Hasselblad ELM. Rather than totally reinvent the wheel, Hasselblad was contacted and the Hasselblad engineers began modifying ELM’s to be suitable for a walk in space, and on the moon.

At the camera factory in Gothenburg a design and research group was set up solely to modify and develop cameras for NASA. At its peak, six people were employed full time to work for NASA and its requirements.

While the camera looks very similar to an ELM of 35 years ago, many features in the ELM were dispensed with, to simplify the use in the weightlessness of the moon’s atmosphere, and the fact that the astronauts would be wearing bulky suits with built-in gloves, so small ‘fiddly’ controls were out of the question.

Mechanical modifications were also made. The mirror and secondary shutter were removed and the focusing screen for the reflex viewfinder was replaced with an opaque plate. Certain shutter functions were unnecessary because the lens would remain stopped down between shots. As a result the mechanism that opened the shutter on cocking could also be removed.

The specifications for the moon camera were finally settled in September 1968. The removable back system used by Hasselblad was retained, and Kodak was commissioned to produce extremely thin film, so that around 200 shots could be recorded on one roll in the camera back.

A completely new lens was designed by Carl Zeiss. This lens would have a maximum aperture of f/5.6 and a focal length of 60 mm. At that stage it was unknown what would happen to the optical characteristics of a lens, operating in a vacuum, and much testing ensued on earth first! Naturally it had to exhibit minimal radial and tangential distortion. These were to be scientific cameras, remember, not just “Here we are on the moon” cameras.

The design was not complete until February 1969, and the finished cameras for the Apollo 11 space mission were delivered by Hasselblad on 1 March 1969, six months after the specifications were detailed.

The astronauts practiced with the cameras on earth (which perhaps gave the notion of the conspiracy theory), because there was no focusing screen, and they had to become adept at literally “pointing and shooting”, there being no way that they could ‘frame up’ the pictures either. That they got so many good photographs is quite remarkable.


Modern Medicine: Psoriasis - a sorry sight for many

by Dr. Iain Corness, Consultant

A very unattractive skin condition exists called Psoriasis (pronounced “Sawryasis”). It is much more common than you would imagine, as many of those afflicted with this condition hide away from the public gaze, keeping their skin condition hidden.

Psoriasis affects more than 4.5 million people in the United States alone. Patients with psoriasis are often frustrated because the condition can be both physically and emotionally challenging. In addition, if the skin problem were not enough to contend with, around 25 percent of patients, mostly between the ages of 30 and 50 years old, may develop psoriatic arthritis. It also runs in families. For those who have one parent with it, each child has a 25 percent chance of developing psoriasis, and if both parents have it the risk goes as high as 50 percent.

Characterized by thick, red, white or scaly patches on the skin’s surface, this chronic skin condition is caused by the unusually rapid growth of skin cells due to faulty signals from the body’s immune system. The extra cells build up on the skin’s surface and form plaques - usually around the knees, elbows, scalp, hands, feet or lower back - causing itching and severe discomfort.

The effects of this disease have been studied by psychologists as it comes under the “psycho-social” umbrella, and young people under 35 years of age are particularly adversely affected. Can you imagine not being able to go to the beach or a public swimming pool with friends because you would feel people were staring at you, or thinking that you were “unclean”? This leads to difficulties in the workplace, socializing and probably even more importantly, in sexual relationships. Imagine a skin disease which has such an effect on your everyday life and ability to enjoy it.

Currently, there is no cure for psoriasis. However, there are many treatment options that can clear psoriasis for a period of time. Each treatment has advantages and disadvantages, and what works for one patient may not be effective for another. It requires skin specialists to confirm the diagnosis, and to work out the best treatment options that are available.

The actual treatments are many and varied, but the type of treatment really depends upon the type of psoriasis, how widespread it is and how resistant it is, so it is impossible to generalize too much. For some sufferers there is a “trigger” and this can be such diverse happenings as a streptococcal sore throat while some anti-malarials and anti-hypertensives can also produce psoriasis as an unwanted side effect.

The types of treatment generally fall into three categories:

Topical (applied to the skin) - Mild to moderate psoriasis.

Phototherapy (light, usually ultraviolet, applied to the skin) - Moderate to severe psoriasis.

Systemic (taken orally or by injection or infusion) - Moderate, severe or disabling psoriasis.

While each of these therapies is effective, there are also drawbacks. Some topicals are messy and may stain clothing and skin. Phototherapy can require two to five weekly visits to the dermatologist for several weeks. Many of the systemic medications can also have serious side effects and must be combined or rotated with other therapies to maximize effectiveness and minimize side effects. Research is ongoing, to find therapies that provide safe, effective, easy-to-use treatment options that provide long-term relief.

For the psoriasis sufferer, the message this week is not to hide in the cave, but to come out and seek treatment again. As there are so many treatments, one will work for you and should give the psoriasis sufferer some hope, and like most medical problems, a positive outlook gives a positive response.


Learn to Live to Learn: Reports

with Andrew Watson

This is the time of year that traditionally, teachers despise and some students dread. In the wake of examinations, whilst the clear blue water of the vacation is in sight but not yet in reach, there is the onerous task of marking, followed by report writing.

If you can tell a great deal about someone from their library (or lack of it) or perhaps by the contents of their fridge, you can tell a great deal about a school by the quality of their student reports. At the end of the school year, when tempers can be frayed and fuses short, it takes a great deal of professionalism to summon the energy to write sometimes hundreds of reports (my record is 327) which do credit to the student, parent and teacher.

Just as there exists an apparently infinite number of types of school, so there is an extraordinary range of reporting styles. But, what should a parent and student look for in such a document and what, I would like to conjecture, should teachers be expected to write?

I think presentation makes an enormous difference. From a school’s point of view, a report amounts to a prospectus. It is that important. Professionally bound, well-written, coherent documents on high quality paper, provide parents with reassurance even before they have read its contents.

Equally, loose, irregularly assorted pieces of small paper with evidence of correction fluid and photocopying, betray a reporting system beset by a culture of taking short cuts.

Then there is the quality of the writing. How demeaning it must be for a fee payer to read a series of generic comments, bereft of any acknowledgement of the person within the student. Surely, you are paying, at the very least, for a personal response?

Of course, many teachers who pluck generic comments from a database resent the very idea of spending what amounts to a considerable amount of time thinking about “little Issy” who might very well have been a veritable pain in the neck all year. They will reject the suggestion that professionalism demands a personal touch, on the grounds that writing reports of this nature eats into their weekends and evenings

Actually, in the past, I have overheard (hilariously) resentment at having to use their “free periods” for report writing (too much personal admin to attend to, I suppose?). When else do you think you’re going to do it?

As for me, I cannot write generic comments. I find it anathema. When I sit down to write reports, I think about two things. Firstly, I think deeply about the student. Secondly, I think about the parents/guardians and what they will think and feel when they read what I have written.

In being critical, compassionate and honest, I believe that I am imbuing the report with the integrity that such an important document deserves. The amount of time it takes me to write them is not a factor. Indeed, a stack of reports represents an opportunity to manage time well.

Looking at the big picture, an international school teacher is required to work something in the region of 180 days a year. On this basis, I see every reason why a teacher should commit themselves to evenings and weekends on the small number of occasions that it becomes necessary. Call it vocational; call it a professional calling, but I say, “Let’s just do a great job on this”.

I heard of one school, which encouraged the use of generic comments, damned expressive language and ridiculed the use of any “long words” whilst simultaneously discouraging staff from writing ‘too much’.

When I have reorganized and upgraded report systems, I have done the opposite. Give the teacher a chance to express themselves! Let their personalities shine through! I think it is terribly patronizing and ignorant to assume that your readers won’t understand what you have written. After all, we are in the business of education so let’s Learn to Live to Learn!

I would advise parents to inquire after the school reporting system, its presentation, its regularity and its detail. You can ask to see an examplar. Can you tell from reading the report what your child has studied at school during the year? It would seem bizarre not to include such obvious information.

In overhauling one reporting system, the first thing I included that had previously been absent was the IBO Mission statement. That seemed a pretty obvious thing to do, actually, considering the Mission statement was supposed to be at the centre of all the teaching! You’ll learn a lot just from the cover.

In my best experiences of schools, teachers have actually enjoyed reading each other’s comments, in an almost festive celebration of the end of the school year. It’s a huge team effort, but an essential one.

Here’s an anecdote to end: my mother (bless her) once came to a parent’s evening following an annual reporting session, to find out why I had not received an Art report (I was taking ‘A’ level Art). When she approached my teacher, a wonderfully kind, queeny old boy from Camberwell, he saw her coming, “Good evening, Dr Watson. How wonderful to see you! What can I do for you?” My mother never had any reason to enjoy this kind of evening and this experience was to prove no exception. “I’d like to know how Andrew is getting on at Art. He didn’t receive a report”. The old boy didn’t bat an eyelid and replied quite innocently, “Oh, he’s doing Art, is he?” For students out there fearing the worst, don’t worry. I’ve been there.

[email protected]
Next week: Holidays!


Heart to Heart with Hillary

Dear Hillary,
My regular partners clean their teeth, shower and then hop into bed, but not this one. She takes ages under the shower washing off the last traces of perspiration left over from her strenuous chrome pole dancing activities. After towelling herself dry, she commences her moisturising routine.
First, she combs a thick liquid mousse into her waist length hair, massaging it into each strand with her fingertips. Then she applies a generous layer of heavy night cream to her face, throat and neck. This is followed by an application of baby oil that she slops all over her body. Next her fingers and toes are smeared with a large dollop of green, gooey grease, her lips are then smothered in vaseline and finally she applies a rich, oily eye cream. She then literally slides into bed. She is so greasy I’m surprised that her freckles haven’t slipped off.
Should I tell her that I don’t like sleeping next to a soggy sponge or, should I just hang her out to drip dry?
Mighty Mouse

Dear Mighty Mouse,
Have you no shame, Petal? Running around with all these women! It was the road sweeper last week and some other poor hopeful the week before that. Where did this slippery siren come from? From one of the chrome pole palaces it seems, complete with the entire contents of the local beauty salon. However, it appears that once again I have to save the show for you. What I suggest is that you help with the baby oiling and green greasing and see where it goes from there, and other than the fact that you will end up with greasy paws, you could score quite well, and the oil should stop your squeaking.
Dear Hillary,
I caught my boss’s wife out with some of her friends at a boys club bar. They were drinking and having a great time it seemed. I am kicking myself that I didn’t take some photographs, but do you think I should tell her husband, my boss, about this even without the hard evidence?
The Detective

Dear Detective,
It sounds to me more like you are a blackmailer, rather than a detective, my Petal. A few questions from Hillary first: to begin with, why were you there at the boy’s club? Are you hiding something too? If you enjoy your job, and the monthly salary, I would forget about being Vinnie Calvino or Mickey Spillane, and just remember that you saw nothing, that’s a good boy!
Dear Hillary,
I was standing at the urinal in a hotel the other evening, and looked over and saw a very important Thai person at the urinal alongside mine. What is the correct thing to do under these circumstances? Should I wai or salute?
Willy

Dear Willy,
You must be kidding. The correct protocol is to look away. Definitely do not wai unless you want to end up peeing in his pocket.
Dear Hillary,
Why is it that some of the tourists that come over to Thailand become ugly fat, pawing, groping drunks. You can find them in any bar in any town in Thailand, and most of them seem to come from English speaking countries. It does the local scene no good, and doesn’t do much for them either. Do you know why, wise Hillary?
Drunken Bums

Dear Drunken Bums,
Yes, of course I know why, Petal. It’s because they are ugly, fat pawing, groping drunks at home, but probably their wives kept a tight leash on them. They don’t change when they come here (and some don’t change their shirts either, judging by the smell), but our more free and easy scene in the bars means they can give vent to their animalistic desires. As long as they pay for it, in the fee-for-service point of sale bars, they get away with it. There is no hope for people like that, but unfortunately all inexpensive tourist cities get them. That goes for other countries as well as Thailand. The good news is they only come over here for three weeks. The bad news is that they come back again next year!
Dear Hillary,
I have been a non-smoker for five years, so I do not smoke cigarettes these days, but I am getting tired of people saying, “Do you mind if I smoke?” and then just lighting up as if it were their ‘right’ to do so. I don’t like it, I don’t like the smell of smoke in my hair and clothes. How do you stop this?
Anti-smoking Aunty

Dear Anti-smoking Aunty,
There is much you can do. When the smoker drops the “Do you mind if I smoke?” into the conversation, you have to come straight back by saying, “Actually I do mind. It gives me very bad sinus and I don’t like the smell in my clothes. I’m sure there’s an area outside for smokers. Thank you. I am sure you will understand.” You have not been rude, as the smoker had not been rude either by just lighting up without asking, but you will have firmly stated your position, and given the smoker a face-saving alternative.


Psychological Perspectives:  Researchers identify factors responsible for change in psychotherapy

by Michael Catalanello, Ph.D.

Although still somewhat of a novelty in Thailand and other developing nations of the world, the use of psychological therapies to resolve interpersonal issues and alleviate emotional suffering has exploded in recent years. In 1996 researchers reported that the number of professional therapists had increased by 275% since the mid 1980s.

Today people in the developed nations of the world seeking help with mental health problems need not look far. Mental health services are currently provided by numerous categories of professionals, including psychologists, psychiatrists, psychoanalysts, social workers, licensed professional counselors, marriage and family counselors, psychiatric nurses, alcoholism counselors, addiction specialists, members of the clergy, and any number of others who profess competence in the area.

A similar trend has been seen in the growth of therapy models and techniques used to treat mental health problems. It has been estimated that there are more than 200 therapy models to choose from, each one claiming particular effectiveness and curative power embodied within their various rituals and procedures. Studying growth trends in psychotherapy techniques during the 1980s, researcher Sol Garfield predicted, “…that sometime in the next century there will be one form of psychotherapy for every adult in the Western World.”

Before long, the appearance of rival therapies generated an interest among researchers to identify the most effective therapies, and to weed our therapies demonstrating little or no utility. The ensuing 40+ years of therapy outcome research, taken as a whole, produced a very surprising conclusion: Although therapy clearly works, no specific system of therapy has emerged as consistently more effective than the others. Luborsky, Singer, & Luborsky dubbed this the “Dodo Bird Verdict” borrowed from Alice in Wonderland. “Everyone has won and all must have prizes.”

This finding eventually led to efforts to identify elements common to various forms of psychotherapy that might account for their general effectiveness. As early as 1936, psychologist Saul Rosenzweig suggested the notion that the effectiveness of different therapy approaches might be attributable to common elements, as opposed to their theoretical foundations.

In their recent book, The Heart and Soul of Change, building on the work of Dr. Michael Lambert of Brigham Young University, psychologists Mark Hubble, Barry Duncan and Scott Miller identified four factors they believe to be the “active ingredients” of effective therapy. They consist of 1) client/extratherapeutic factors, 2) relationship factors, 3) placebo, hope, and expectancy, and 4) model/technique factors.

According to these investigators, characteristics of the client and his/her life circumstances are the primary contributors to the therapeutic outcome. Each client brings to therapy a number of personal resources, such as a sense of responsibility, persistence in the face of adversity, supportive family members, religious faith, an education and work history.

Chance factors that periodically affect clients’ life circumstances would also be included here, such as landing a new job, the establishment of new supportive friends, winning the lottery, and the readjustment of life stresses. According to Lambert, client and extratherapeutic factors are, by far, the most potent contributors to change in psychotherapy, accounting for 40% of the outcome variance.

Relationship factors are those that result from the quality of the relationship or “alliance” between the client and therapist. These are identified as “caring, empathy, warmth, acceptance, mutual affirmation, and encouragement of risk taking and mastery.” These factors are believed to account for 30% of the therapy outcome variance.

It is a widely known fact that the client’s hope and expectancy also contribute to favorable treatment outcomes. When a person enters treatment with a credible professional, he generally expects a favorable treatment outcome. Drug researchers, aware of this fact, routinely utilize inert substances, known as “placebos,” to control for such factors in clinical drug trials. This expectancy, in itself, can contribute to a patient’s feelings of relief, and a sense of well-being. Lambert places the contribution of these factors to treatment outcome at 15%.

Model/technique factors consist of the set of beliefs and procedures promoted by the particular treatment approach. Lambert suggested that these characteristics, like those of expectancy, account for only 15% of the outcome variance.

The surprising conclusion offered by this body of research and its implications have yet to be fully absorbed by professionals in the mental health field. Some theoretical camps continue to squabble about the differences among various techniques. Controversies over theoretical models seem minor, however, compared to the relative importance of the more salient common factors in affecting treatment outcomes. During the coming years it will be interesting to see to what degree practitioners modify the way in which they provide mental health services, in response to the compelling findings produced by these clinical investigations.

Dr. Catalanello is a licensed psychologist in his home State of Louisiana, USA, and a member of the Faculty of Liberal Arts at Asian University, Chonburi. You may address questions and comments to him at [email protected], or post on his weblog at http://asianupsych.blogspot.com