The Asian Manager, December 1999 Issue by Sherbet Manalili

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Asian Banks Reallv Need to Reform ro"*rr,*o . Lessonsin Marketing for Tough Times FINANCE

How DerivativesHelp RepairRelationships in Post-CrisisAsia DEVELOPMENT MANAGEMENT

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It's Not Enough That People Participate, They Have to Own POLICY

Competitiveness:HowAsia Can Regain Lost Ground

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rWhat Asian Banks Really Need to Reform J The bankingindustry is being reformed,but the mindset of most bankersremainsunchanged.Ifbankersjust realize they are in the serviceindustry- not the bankingindustrythey can useTQM principlesto becomemorecompetitive.

Presidenr:Roberto F. de Ocampo Dean:JesusG. GallegosJr Asociate Deans MBM: Horacio M. BorromeoJr. ExecutiveEducation:Gloria M. de Guzmar Research:Patricia Denise Lopez MM: Elenita C. Panganiban CDM: Mctor E. Tan EMBA:CorporateChangeProgram:Kim Y Wolf ChiefFinanceOfficer: Ma. Elena B. Herrera ChiefKnowl€dgeOfficer: Gaston D. Ortigas Jr.

DJ fiene uomtngo Felipe B. Alfonso EtecutiueDitettor RamonV del RosarioSr, Asian Cenrerfor CorporateSocialResponsibility

Ten Marketing Lessonsfor Tough Times !

Leading companiesaround the region prove what marketing approacheswork in bad times and good. ByJoseFauxino, Josiah Go, and Eduardo Roberto

Ere How Derivatives Help Repair Relationships in Post-Crisis Asia e

Creditderivatives keepbankbalance sheers healrhy. -1 "3 More than rhat,rheyhelpbanls keephealrhyrelations with clients,now that lendinehasbecomea dead-endbusiness. By GraciaS. Ugut

Feli:derto U. BustosJr. ErecutiueDirertor Gov JoseB. FernandezJrCenter for Bankingand Finance Marvee P Celi Eteutiue Diretnr InrernationalRelarions& ScientificResearch Foundation Eduardo Morato Jr. Etecutiu Director AsianCenter for Entrepreneurship: Chito B, Salazar ExecutiueDirecmr wl SJCip Policy Center

The Asian Manager Itt Not Enough That PeopleParticipate, They Have to Own of Mt. Makilingreveals thatit takes | ( The reforestation

more than panicipationfor a developmentprojectto succeed. The criticalvariable:a senseofownership. By Benjamin C. Bagadion.lr.

rtilrrv Competitiveness: How Asia Can Regain Lost Ground ofAsian enterprisesis decreasing. ],Q The competiriveness An analysisof the factorsrevealswhy, and what governmentand businessleaderscan do to reverse the trend. ByJuan Miguel Luz

Editor-in-Chief: Jet Magsaysay Managing Editor: Jocelyn de Jesus Art Director: Manny L. Espinola Jr. Operarions Officer: Yvene Bautista-Erangelista Circulation Officer: Eden S. Cardenas The Asian Marager is a quanerly publicationofrhe tuian Insritute ofManagement [MITA (P) 042110/98 K D N P P ( S ) 1 0 7 6 / 3 / 2 0 0 0I S S N0 l l 6 7 7 9 0 1w . ith ediroriatofliccsat rhe Asian Institure ofManagemenr, 123 P*eo de Roxc. Makari Ci!v, Philippines. Tel: (632) 892-401t -25; 892-0435-43; 'tetetax (632) 891 3341. Intener Address:tan@dataseru. din.edu.ph Co /ight I999'fhe Asi^n Manager. All rights reserved. R e p r o d u c r i ornn r n . m r n n e ' ' n w h o l eo r i n p a r i n Englishor other languages wirhout prior wrirren permissionprohibned. PrinredbyTimes PrintersPte. Lrd., Singapore.

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WhatAsianBanks ReallyNeed to Reform just realize The banhinginduxry is beingreformed,but the mindsetofmost banhersremainsunchanged.If banhers theyare in theseruiceindusny - not the banhingindustry - thq, can useTQM principles to becomemorecompetitiue By ReneT. Domingo

Asian banks' short-term liquidity problems may have grabbeda big shareofthe newsin the last two years,but it is the low prioriry they give to customer satisfactionthai will createbiggerproblems in the long term. To createthe neededturnaround in the banking industryt thinking regarding customerservice,ReneDomingo appliesthe concept of Total Qualiry Managementto banking. In this excerpt from his new book, h's the Customer(Your Real Boss), published by Options Information Company, Domingo describeshowAsian banls can achieveworld-classlevelsof qualiry and customer satisfaction- the key to surviving the crisiswhich still plaguesmany sectorsin the region.

undreds of retail shops and department stores in China, wanting to learn a few lessonson satisfring customers,visit the branches of The Industrial and Commercial Bank regularly, Like them, before it made sweeping changesto its customer policies,the bank was also known for bad service.One of rhe new policies - radical yet highly effective- was to ban the use of a list of phrasesits employeesused when "\Vhen dealing with customers.The popular expression, will you stop complaining?" was included in the list of banned phrases.And while other banks may refuse to changesoiled or old currency notes,this bank will replace such noteswithout question.

their customers.Perhapsone important reasonbehind this oversight is that many bankers believe that banks are in the financeindustry and not in the serviceindustry.Thus they tend to competein terms offinancial prowessrather than servicequality. People,resources,time, and systemsare devoted more to managing assetsthan managing customers and service.In fact, most bank systemsaredesignedto control customersrather than satisfycustomers.Productsand proceduresare set up for the convenienceofthe bank rather than that of the customer. A big bank may have asmany as threevice-presidentsresponsiblefor guardingits assets,but no seniorexecutiveto take careofcustomer service,Banks usually give customer satisfaction very low priority, and accordinglyassignit to a low level, ifnot lowly paid, manager.Few or none ofthe bankt elaborate systemsand structures are designedto maintain customerloyalty. Customer retention is the only key to surviving the regional financial crisis, It is alwayscheaper,easier,and more profitable to retain an existingcustomerthan to acquire a new one. Customer retention hassuddenlybecomecritical to survival for companiesacrossindustries - including banking - which are still reeling from the crisis.In a recession,it is usudly too late to recoverlost customers.They may have irreversibly decided to switch to a better and cheapersupplier or substitute_product. Implement TQM in Banking

If banks accept that they are in the service industry As a benchmark for customer service,The Industrial in the sameleagueasSingaporeAidines, McDonald's, and and Commercial Bank is a rarity. The banking industry Marks & Spencer- they can appreciate the excellent lesoften the biggestserviceindustry in any country depends sonsin customerserviceand peoplemanagementprovided . on customersatisfactionand loyalry for its survival.Ironi- by theseworld-classinstitutions, for free. Fastfoodchains, cdly, very few really pay much attention to the plight of airlines,and other servicesectorshave started to embrace )

"reason servicequality as their for being," following the successof the quality movement,known asTotal Qualiry Managementin the manufacturing sector.

Perhapsthe most blatant flaw committed by many banks basing their capacityplans on total dollar value of business.But tellering, whether manual or automated, is transaction-driven,not value-driven.The bestway to deTQM is about providing total customer serviceand termine teller deployment is to usethe number of transaccontinuouscustomersatisfactionthrough quality processes tions - regardlessof clients or value of transactionsand quality people.It can be applied not only in the manu- and translatethese to transactionhours, and then to facturing industry but in the servicesectoras well, where headcount. the customeris just as important. Ifthe transactionshould passthrough severalstations, The best gaugeof total quality in a bank is how well it is necessaryto match all their capacitiesto the demand the bankt managementand employeeshave internalized volume being receivedat the first station. It would be a the principles of quality managementand total customer wasteof resourcesif tellering were increasedto match desatisfaction.High deposits,high profits, and zerocustomer mand, when the bottleneck capacity is determined by a complaints are not necessarilyaccurateindicators of total slowerback-room operation, like signatureverification or quality success. computer processing.In this case,systemcapacitywill remain lower than demand, in spite of the investment. Other common mistakesare empowering employees without training them or changingcompany poliry, placSatisry Customers Faster, More Consistendy ing the highestpriority on financial performance,and having control and security policies that are anti-qualiry and In the busy domestic ticketing offices of Japan Airbasedon mistrust. A total quality bank should be able to lines in Tokyo, there are no chairsor sofaswhere custommaintain securitywithout sacrificingservice. ers can sit. There is no need: it is company policy that customersshould get their airline tickets within 3 minMatch Capacity to Demand utes.Serviceoperationsshould be designedsuch that they do not waste the customer'svaluable time. There is only The key to efficienry and fast customerseryicein the one criterion for efficient service:customer satisftcdon. serviceindustry is the correct and dynamic matching of Customerswant to get out ofthe bank assoon aspossible demand and capacity.Given the unpredictabiliry of the - assatisfiedcustomers. various typesofbanking transactions,this processmay be difficult but not insurmountablc. They also want consisrencyin servicedelivery.Consistencyimplies samâ&#x201A;Źness,uniformiry and fairnessin the The important step is to separatethe bank'smore or delivery of all servicefeatures,regardlessof time or place. less standardizedfactorylike transactions- like check Many bankssufferfrom outlet serviceinconsistency. Variaencashment,withdrawals,and checkdeposits- from the tion in serviceis so wide, customerstend to patronizeone more personalizedones,like loan applicationsor market- branch over another ofthe samebank. \7orld-classservice ing a new service.Bankersshould recognizethat the former providers require all outlets in various locations - anyconstitutesthe bulk ofbanking transactions.FactoryJike where in the world - to provide the samelevel ofservice. transattions are fairly predictablein terms of duration or cycle time. By matching the demand and capaciryof its Most servicelevelsvary by time of delivery - by the factoryJike transactions,a bank can decongestits lobby or hour, day of the week, day of the month, and month of ATM booths, and provide its staffwith ample time to at- the year.But customerswant to be treatedwell any time. tend to the morepersonalized transactions. Servicelevelsalsovary dependingon who is being served, andwho is serving.To establishworld-classstandards,banks Long-term capacityplanning is anothercritical taskof should avoid thesetime and people inconsistencies. bank management.In many banks,capacitymanagement is characterizedby fire-fighting and gut-feeldecisionmakOne sureway to dramatica y enhancebanking sewice ing. A bank needsto carefullymatch long- and short-term is the reduction or elimination ofhand-offs. A hand-offis capacityto their particular environment. the passingofwork - either documentsor the customers

themselves- from one )vork station to another. Handoffs increasebank clients'waiting time. How canyou eliminate hand-offs?Reexaminethe whole servicedeliveryprocess.Tiust your employees.Empower your employees.Finallv. listen to vour customers,I

ReneT. Dominqoholdsthe SimeDarbyChairfor Manufacrurins at rhe Asian Iniritureof Management. Thir articleis an excerpi from his larestl:ook, lti the CustomerMur RealEasrl reprintid with permission lrom OptionslnformarionCompany,publisher of tlie AFTA Monitox Aiyanmar Busines, and Atian baihins Di3err,and organizerof rhelnnual A.siaPacificBankersCongre"ss.

Creatingand deliveringworld-classbankingservices By Felix Bustos Jr. Creating and deliveringworld-classbanking servicesbegins(and ends!)with the realization that the Customer is the Bankert Real Boss.That in a nutshell is what Domingo prescribesto the banking industry in 86 pithy pagesofhis latestbook, h's the Customer(YourRealBos), an applicationof the principlesembodiedin his very popular 6ook, QualiryMeansSuruiual(Prenrice HaII, 1997). Domingo startsout by stating that mosr banks rhink they are in rhe finance industry and not in the serviceindustry. rVhile this is probably not technicallyaccurate,sincemost banks do classi$.themselvesasbeing in the fi nancial.seruices industry he is in a practicalsensecorrect.He citesasevidencethe nonexistenceor relativelylow rank ofofficers responsibleonly for customer service,which is true for most ofthe banks I have come across.Indeed, the primary focus of most banls' systemsand proceduresis the "control of cash,the most liquid of assets,"rather than the monitoringofcusromerservice. Domingo has four proposalsto correct the situation. First, by applying the principles of Total Quality Management(TQM), now widely practicedin the manufacturingsector,to banking operations.He recommendsthe eight steps,which he first espousedin Quality MeansSuruiual. The first five, which will haveto be management-driven,are: Step 1: Step 2: Step 3: Step 4: Step 5:

Formulate a quality or customer-drivenmission statement. Have top managementlead the way to total qualiry. Align all company policiesto quality goals. Continuously train all employeeson quality. Empower all employeeson qualiry.

After managementhas implemented all five steps,employeesare expectedro: Step 6: Step 7: Step 8:

Behaveaccordingto qualiry rules and responsibilities. Develop quality anirudes. Help realizea new qualiry culture

Domingo'ssecondproposaltoward aftaining customersatisfactionand qualiry serviceis by delivering fast and friendly banking services,which he discusses in Chapter 2. The key concept hereis the dynamic marching ofdemand and capacity.Presentpractice,he correctlypoints "overcapacity out, is based on account balancesthat leads to either and idle resources,or undercapacityand long queues."

For developing friendly banking services,Domingo suggeststhat the banking industrys "how large training budget focus on to sewe fwith a smile] rather than solely on compliance to "tellers procedures."He cites the Japanesebanks where are trained to thank the customersall the time ... and to apologizeif he was kept waiting longer than the standardtime." Domingo's next set of proposa.lshas to do with developingworld-classserviceproviders.I think the most significantamong thesewerethosethat relatedto minimizing clericalerrorsin banking. By analyzingtheseerors (for example,work overloadbecauseoffailure to adopt dynamic work balancing, unclear instructions, lack of standardsand training), he demonstratesrhat thesewere causedby'poor managementdecisionsand inadequatemanagemenrsupport." Any solution, according to him, would have to start with improving the quality of managemenr. Vhich brings up Domingot other major recommendationof this chapter:Reinventing the Banking and FinanceManager (B&F Manager). In a sweepingstatement,which might make current bank managementuneasy,he saystraditional banking skills such as cash flow management, "sufficient transactionmanagement,and cost reduction as no longer or even relevant."Instead he "a cites the need for the B&F Manger to be processmanager,servicedriven, customer-focused, global in outlook, and literate in cutting-edgetechnology."Under the lattet he lists electroniccommerce,data warehousing,call centers,and intranets,and offers examplesof current applicarionsin foreignbanls and serviceinsrirutions. Finally, Domingo discusses creatingproactivebanking servicesasa way ofretaining existing clients. Customer loyalry he states,can only be maintained by going beyond customersatisfaction, and continuously delighting and surprising customers.Satisfaction,for Domingo, implies provic.ing a statedneed within customerexpectations(e.g.,releasinga loan within the industry norm of, say,a week).Delighdng a customerwould meanproviding an unstatedneedwithin customerexpectations (e.g.,releasinga loan beforethe promised date).And surprisinga customerinvolvesproviding an unstatedneed beyond customerexpectations(e.g.,releasinga loan before the promised date AND delivering the loan proceedsto the customert office without his request). Domingo feelsthat customerretention is the key for banls surviving the current financial , crisis.\(4y? Becauseit is cheaper,easierand more profitable to retain an existingcustomerthan to get a new one. Therefore, banls should designcustomersatisfactionmeasurementsystemsthat are 'easy to learn . .. and replicate".And finally, there must be incentivesto attain customersarisfaction and quality targetsrather than merely maintain the financial measuresofvolume and profits. As a former practicing banker I had alwaysbeenleeryofdealing with well-meaningconsultants who were long on how-to-do-it theories but short on the practical experienceof generating depositsor approving loans. But after reading Domingo's latest book, I realizethat I might have missedout on a lot of good ideasby not listening to more nonbankerslike him. r

Felix BustosJr is the AII Asia Capital Professorfor InvcstmentBanking and a memberofthe MBM core faculry His areasof specialization include financialmanagemenr,managerialaccountingand control system,and banking and privatization.

TenMarketing Lessons for ToughTimes Fromfood to technohgst, direct sellingto consumerretailing, toothpasteto d?pliances branding tofoundations,sauuymarhetingsauesthe day. By JoseFaustino,JosiahGo and EduardoRoberto

The nameshavechanged.So havethe productsand their consumers,along with the times, particularly in recession-hit markets.But, as the successstoriesin the book Marketing Strategiafor Good Times& Bad edited by Jose Faustino,Josiah Go, and Eduardo Roberto will shoqr, moments-of-truth in marketing have put people and product aheadofeverything else.These l0lessons distill the reallife experiencesof marketing experts in what could be describedas Total Quality Marketing to give you the edge- in good timesor bad. in the accompanying Asia View, international brand learning expert Chris Macrae describestwo marketing models for Asia, and invites the readerto think about how these- or other - models might develop.

while focusing on distributors' stabiliry as a prerequisite for the company's own stability. Similar strategies by Chowking revealedexpansionthrough new usersand wider usage. Implications: Companies must determine what windows of growth opportunities are availablefor their firms basedon their strengths(be it in resources,manpower or other areas)plus considerationof competitive standing.Strengths must be basedon the critical successfactorsin the industry. Furthermore,the right product value (or product quality-price equation) spellslongevity in business.It would be extremely difficult to have a good marketing program to push a defectiveproduct value. Ifone ofthe marketing Ps (product) is poor, all the Ps of marketing (to include place,price and promotions) becomepoor.

l. Growttr strategies are specific and qmchronized. lVhile different firms adopt different strategies,consistencyand focus have become the distinguishing factors. Smart Telecom positioned itself as the cost leader, importing its own cellular phone sets,with expansion gearedtowardincreasingsubscriberbasethrough low price and more cell sites.Abenson'sgrowth, on the other hand, hasbeenbasedon broad differentiation strategy.This not only included an increasein the number ofstores with a full product range, but regional expansionas part of im nationwide coveragegoal. Avon's growth srraregywas to continuously increaseits number of customersand improve repeatpurchaserelationshipthrough new products and a wider delivery system.Foodsphereand Lintas also emphasizedrepear reladonship with customers.Vaters Philippinespositionedits consumerdurableasa basicneed for everyhome. It increasedits number ofdistributors by announcing new models and by timing its price increase

2. High dependence and reliance on consumer feedback need to be emphasized. Thesewereemphasizedwheredifferent forms of communications with consumerswere utilized to formulate, evaluateand redirect the effectivenessof the marketing program. Foodsphereusedinformal chat with clientswhile Chowking asked for consumer perception. Vaters conducted annual year-endsurveyson distributors' satisfaction. Hapee formulated 200 samplesuntil the mosr acceptable (among consumers)had been validated. Smart usedvarious market studieswhile Abenson benchmarked retail practicesabroad.Red Bull utilized attitude and image(UAI) studies. Implications: Researchwill be usedincreasinglyasa tool to justi$' new product and price acceptabilityto the trade.How-

ever,as in the caseof Foodsphereand Abenson, informal researchpracticesby ownersmust be usedwith caution, as with strongunderstandthe ownersarehands-onexecutives ing of the businessdynamics. Formal researchsometimes becomesa mere substitute to the lack of time spent with consumersby top managementincreasinglyloaded with "empire." the many responsibilitiesof their growing 3. People and organization are sourcesof competitive adYantage. Product-marketchoicesarebasicto the company.Since marketing programsare getting to be similar,people,especially in rhe serviceindustry becomethe differentiation in an increasingparity scenario.Collectively,peoplemake the organization.To cite examples:Avon ladiesintensifiedtheir fanaticalzealthereby further propagatingthe Avon spirit. Both Lintas and Abensonhad a team approachto marketing with the latter shifting from the one-manstorementality to a systemorientation. Zuelligt 500-strongfield force was made awarethat some common behaviorwas needed to carry out the sameprogram.Jollibeeand Chowking became the serviceindustry norm with exceptionaltraining programsfor their people.SmartTelecom'shiringwas based on an applicant'sconsumer(rather than technology)backgrouno. Implications: As peopleformulate and implement marketing strategies,it is tl.remarketing talent that will determine the successof a brand of business.Tiaining then becomesindispensablein being marketing-oriented.And yet it is not enough to grow the business.An advantageis reinforced or prolonged by building a positive culture of the firm. Competitors can pirate key peoplebut the firm's collective spirit would be hard to imitate. Valuesbecomeimportant ingredientsin determining peopleperformance. 4. Srong brand equity makesa good corporate asset. A strong customer loyalty increasesbrand equiry. In a parity scenario,the brand becomesthe differentiation when buying products. Brandsexist by and stress-reducer "relationship" developing a with consumersas they need not limit their associationwith functional benefits.Emotional or self-expressive benefitscan in fact be highlighted. Avon, being selling-driven,ensuresit is trusted by its distributors, an emotional brand attribute. l0

Already a well-establishedname in the industry, Abensonchoseto useother nameslike lValterman, to introduce home and office products (including a supermarket section for fast moving consumer goods), and Electroworld for office automation to avoid diluting the equity associatedwith the name Abenson.This was a deliberatedecisionto protect the Abensonname,which was synonymous with appliancesretailing. Tang launched a refill pack (in the mid-1980s) to reduce packagingcost without sacrificing product qualiry. Savingswere passed "Super" on to consumers.Unilever prefixed the word to "Wheel," an existing and trusted brand name and came "SUPERVHEEL," out with the name which spelledimmediate recall. Implications: A brand name hasmeaning to the consumer.You can stretcha popular name to the other product lines and ease entry barrier but an unsuccessfirlline extensionmay also afitct the coreproduct prestige.In fact, Interbrand,a U.K. consulting firm, identified that a brand needsto have a strongbrand equity. Brand awareness is a prerequisite,but it does not necessarilylead to brand equiry. It is just the first ofa seriesofsteps leading to a purchase.For a brand to be known, choosing the right market segmentis imPortant. 5. Good corporate citizenship helps. This hasbeenincreasingamongcompanies.Thosethat have been launching their own public relationsprogram do so asa brand associationtool. Red Bull is a major sponsor of the Tower award for blue-collar workers, a prime targetmarket.Jollibeehas,amongothers,a Christmascampaign for the underprivileged.Avon promotesbreastcancer preventionand sponsorsawardsfor outstandingschool principals, both important issuesto women. WatersPhilippines has \fater for Others Foundation run jointly by the managementand its distributors to help improve the standardofliving among the poor. Implications: Brand awarenessis important bu.t brand association "feel from a good corporatecitizen program increasesthe good" portion on the brand. Good corporatecitizenequals good marketing.

6. Attitude plays an indispensableand differentiating role in marketing decision making.

A positiveframe of mind influencesone'smindset. Red Bull was launched at the tail of an economic crunch in 1993. Abenson believed in opportuniry in crisis. lVaters used internal communication in regular interval to influencetheir salesforce attitudes during rhe height ofthe devaluation crisis.Smart'sassumprionofcell phonesasa basic needran counter to the luxury-product mindsetof competition - and how right it was. Implications: "$7ei-chi"

8. Roles of individuals are defined. Communicating who will do what is the right steptoward building the harmoniousrelationshipneeded to carry out a defined marketing raskpromptly and accurately.Abenson undâ&#x201A;Źrstood the role of an entrepreneur in contrast to the role ofits professionalmanagers.It has alsodefined its expecmtionsto its suppliersaswell aswhat they can expectofAbenson. Avon clearlydefined the role of its sales managers and its representativeswhile Chowking's choice of actor Vandolph as its advertising talent was from a defined criterion.

is the Chinesecharacterfor crisis- lit"problems erallyinterpretedas areopportuniries," depend"concept" ing on the individualt point of view. This may result in an increasein consciousnessto be positive and realistic (not necessarilyoverly optimistic or too pessimistic). Interpreting market researchdata dependson one'sattitude, so it is possibleto havedifferent action plans from two companiesusing the sameinformation.

Implications: Failuresoften occur in the imolementationohase. Performance can only be measuredif go"l, "r. defined. and if the role ofeach one in helping reachthe corporate or marketing objectivesis clarified. Strategyin itselfcannot makemarketingwork; it musr besupporredwith other organizationalconcernslike structure, sysrem,stamng, skills, style, and sharedvalues.

7. A clear understanding ofthe dynamics ofthe industry is critical.

9. The corporate vision and mission guide marketing decisions.

This is important for defining and managing success factors.Avon has irs efficient delivery system,motivation (recognition,support) and product rangeaspart ofits successfactors.Smart defined its critical few, arnongothers,as having adequatecellular sites and being cost leader ro a price-sensitivemarket. Waters defined and conrinued to manageproduct value, credit, sizeof motivated salesforce and availabiliryasits successfactors.

The successofthe firm dependson the extent to which it attainsits vision and missionbeing attained.Part of the WatersPhilippines mission is to allow distributors "...hauc the easiest time to build, grow, ex;pandand sustain thebusiness. . .'i rhis led ro posrponingpriceincreases even in the face of currenry depreciation (while competition increasedprices much sooner).Abenson focusedon the home and office market so all new businesses were related to eitherone or both. Avon focusedon rhe perpetual opportunity of giving women beauty and hope. Foodsphereprovided nutritious food ar affordableprices while Zuellig provided serviceexcellencein the pharmaceuticalindustry asespousedin their corporatevision and mission.

Implications: Competitive benchmarking is important. There must be a thorough determination of why companieswin or lose.The differenceidentifies the key successfactorsin their indusrry Lessonsfrom both the local industry aswell as from other countries will help in reading the marketplaceand thus aid in the formulation of the right marketing strategy.However, srrategymusr be selecrive.lff4ren competition has implemented a berter alternativenot thought of by the firm, they havethe edge.

Imp lications: Marketers must test if their strategycan contribute to the direction and the successofthe firm. Ifno defined vision and mission statement exist in a firm, the chief marketing executiveshould initiate rather than wait for one. Cascadingand internalizing the vision and mission help crearea senseofowning it.

10. Faith increases one's courage to manage against the unknown. Having faith meansknowing that sooneroflater, things will improve for the better. Hapeewas an aluminum-tube supplier to multinational toothpastecompaniesbeforebecoming a consumermarketeroftoothpaste when rheir customers shifted to plastic tubes. l7aters relied on spiritual guidanceon the timing ofkey marketing and businessdecisions. Implications: 'We arealwaysbeing preparedto do greaterthings. Increasinsour consciousness level that another dimension

does,in fact, exist, can help us determine what step to do next, given our limited experienceand knowledge.That somethings cannot be explained- like why, despitemarket researchdata, some (and not all) experiencedsuccess - points ro the unexplainable.This has beenstrongly affirmed by Hapee as well as the \7aters, as they acknowledgethe 5'hP of marketing asPMYER. t Jose Faustino is the Goodyear Professorof BusinessManagement and the ProgramDirectorofthe Marketing StrategyCourse at AIM. Josiah Go is the author of five bestselling marketing books and the president of Waters Philippines. Dr Eduardo Roberto is the Coca-ColaFoundationProfessoroflntemational Marketing atAIM. This article is an excerptfrom the book, Marketins Excellence in Good Times & Bad.

Asia'sTtvoMarketingExtremes Asia exhibits the extreme caricaturesof the two best brand-marketing models in the history of the world. \X/hile I think this appliesglobally, Asia probably representsall the extremesfrom the worldt most developedmarkets (infrastructures, sophisticatedconsumers)to the ones that most need developing. The classical mass marketing brand ralue chain model of the secondhalf of 20th century driven by advertisingand product, is greatwhere: . I uncrowdedmarketsarebeing developed,including building whole distribution and media infrastructures. I economiesof scaleprovide win-win for market-creatingproduct developersand consumers a the markerrequiresconstanrenrerraining It is poor, however,where: a marketsare crowded with too many potential me-too suppliers o retailchannelsalsocompetewith own brands o media costsescalate o companiesstop integrating organizational improvementsin quality/valueand believebranding is merely an imagewar. In the extreme,this model'saddedvaluechain becomesa tax on the end consumerwho has to

pay everyone'scut all through the chain including the costofrivalries betweenchain members.In the 2l"-century consumer lalue circle model - potentially rypical of all e-commerceand real webmarketing - the value chain becomesa circle at which a consumerrepresenrarive or cooperarive sits equally with all other members.Equaliry between membersinvolvestransparentinformation sharing and insistencethat each partner keepsimproving or getsthrown out ofthe network circle. In the value circle, the consumâ&#x201A;Źr is an equal partner,and getsa better deal by throwing out the fattest cost-adderof the previous chain members - sometimesthe retailer,sometimesthe advertising expenditure,sometimesthe manufacturerthat doesnt improve. This model, however, may not relevant in markets where infrastructure is undeveloped. The presenceof these two marketing models in Asia posesinteresting questions:S7ill the Chinesenetwork form of organizationhave a natural advantagein building value-web/circles? How does the Japanesemodel, where the corpioratebrand comesfirst, overlapwirh the two models?Are there hybrid or other greatvalue-addingmodels?-Chris Macrae Institute of Brand Learning Organization (Londonand Vashinrton,D.C.)

HowDerivatives HelpRepair Relationships in Post-CrisisAsia The harsh truth is that commercial lending has becomea dead-end busines. The smooth solution: credir deriuatiues, uhith are usefulfor maintaining banb-client relationship

By GraciaS. Ugur

Derivativesare at once the most hyped and leasrpublicized of financial products. Their volarility has given derivativesa bad reputation around the region,yet their utility in post-crisisAsia is unquestionable.This is particulady true ofcredit derivatives,the subsetofderivativesdiscussedhere,which will come into greateruseasbanksstrive to maintain good relations with their clients and at the same time take loans off their balancesheets.$7ith their ability to createsuchwin-win relationships,derivativesrepresenrone fad that is here to stay.

A credit deriuatiue is broadly defned asafnancial contract outlining apotential exchangeofpalments, in which at 'petformance" leastonelegofthe cashflous is linhed to the of an underfiing credit-sensitiueassetor liability. The underlling creditsinclude banh loans, corporatedebi tradz receiuables,emergingmarhet dtbt, conuertiblesecurities,as well as the credit exposuregeneratedfrom other deriuatiues-linhed actiuities. Wlry the suddeninterest in credit deriuatiues?

Becauseof this inescapabletruth: A great portion of commercial lending has long since become a dead-end e r i v a t i v e sa r e a m o n g t h e f a s t e s t - g r o w i n gi n businesi,done primarily as a type ofsophisticated client novations in banking. And credit derivatives relationshipexercise. The commerciaibank that madethe are among its fastest-growingsegments.Credit de- loan facesthe delicatetaskofnegotiating payment from a rivativespermit investorsto managetheir risk exposure,by financially weak borrower with which it wants to mainseparatingcredit fiom other variables.Banks like lending tain a Iong-term relationship. money to cement relationships.Vith a credit derivative they canget the loan offbalancesheetand lend somemore. The Ability to Maintain Client Rehtionships Still, credit derivativesmean many different things ro many different people becausethe market for theseproducts is still in its infancy and still lacksuniversalstandards. Some find credit derivativestoo highly structured.Tiansactions in them take too long, sometimesweeks,to complete. There is no liquidiry in the market. And pay-out practicesand definitions of defaultsstill need standardizi.g.

Credit derivativesenablethe lending bank to generategoodwill that will come from a generousdebt rescheduling. This should more than make up for short-term losses.In contrast, an insur4ncecompany from which a bank had taken out loan insurancewould be unconcerned with the long-termbank/ borrowerrelationship,and might play hardballand forcerhe borrowerinro liquidation.

Arother benefit of credit derivativescomparedwith These cannot stop a sure trend: the credit derivatives loan insuranceis time va1ue.Dependingon how the docurnarket is revolutionizing the way banks handle credit and mentation is structured, the derivative could pay out to their balancesheets. the commercialbank within a week of the borrower miss-

ing payment.With cashavailablealmostimmediately,commercial bankerscan afford to be far more generousto their client than if they had to go through the tediousprocessof claiming from an insurancecompany.

ways seftled in cash. On reaching the trigger point, the sellerofthe derivativepaysthe buyer a cashsum.The seller is most unlikely to deal with the defaulting parry. A Solution to the

Credit derivativesalso provide an efficient means of hedging credit risk. They offer tremendousflexibiliry in tailoring a structure to individual specifications,enabling usersto overcomea variety of impediments to their desired objectives.By reducing capital requirementsand greatly easing back-office administrative burdens, these derivativesare often a more efficient, lower-cosralternative to cashmarkets.Userscan choosethe degreeof debr that best suits their particular investment and risk-managementstyle. 'Without

access to credit derivatives,a commercialbank would eventuallyreacha ceiling beyond which it could no longer [end. This might not havemuch effecton immediate profits, it hampers the clienr-relationsaspectof lending, and so might affect future business.Since credit derivativesinsure againsra loan default, the risk attachedto the loan is eliminated. The bank can consider it cash in hand. The corporateneednot know that the loan hasbeen effectivelywritten off the bank'sbalancesheet. The most common type of credit derivativecontract is "credit called swap," in which the selleragrâ&#x201A;Źesto pay rhe differencebetweenthe full facevalue and the current resalevalue ofa particular bank loan. This happens,for instance,when a borrower has been acquired a lesscreditworthy corporation.Paymenrwould rhenbe basedon the fall in value causedby the increasedrisk attached to the new corporation. Should the loan be sold to anotherbank, it would havea reducedresalevalueowing to the increased risk. The reducedvalueis exactlywhat the credit derivative paysour. In a total-return swap, which is not yet documented by (ISDA), the buyer of derivative,regardlessofwhether the borrowerdefaultsor not, will assumeall economicbenefits ofthe loan and receiveabsolutelyall proceedsarising from it, such asthe principal and interestrepayments.The original lender effectivelysells the entire loan yet maintains the valuable client relation wirh the borrower. It is expectedthat ISDA will produce total-return swap documentauon soon. The payment ofa credit derivativeis triggeredwhen a scheduledrepayment is missed. Paymentsare almost al-

"Credit

Paredol'

Credit derivativesserveanothervital function in postcrisisAsia, where resourceshave been stretchedthin: they enable banks to diversifr their portfolio more efficiently while managingrisk. These two goalsare not alwayscompatible, and have given rise to the credir paradox. Most institutions now have limited credit-relatedresourcesand must specializeto maximize efficiency.This specializationinherently results in a concentratedcredit exposure.For example,a regional bank may lend mainly to corporationswithin a limited geographicalarea,a certain industry, or both. Yet modern portfolio theory dictares.har a diversified portfolio is required to achievean optimal risk/return profile. Covenantsand collateral,even ifimplemented, providepartialprotectionat best,and cashmarket diversificationmay not be practical.The regional bank must maintain and enhanceits existingrelationships, which may be endangeredby selling its loans. Credit derivativescan be usedto diversifr credit exposute from an economicperspectivewhile allowing the user to continue its on-balancesheetactivitiesunabated,thereby solving the credit paradox.The following descriptionsillustratea few of the hedging strategiesavailable. o HedgingDefauh Rish. Credit derivativescan be used to provide default protection in respectofa singleassetor a portfolio ofassets.Let'ssaya commercid bank hasexposure to a loan for which it seeksdefault protection. The bank entersinto a default swap in which it receivessome statedamount ifdefault occurs.In return, it makesa fixed periodic swap payment. The sellerofa credit derivativeoften has a dual role, i.e. asa broker profiting only from a bid-askspreadand as a leveragedinvestorseekingto take a position with aslittle cashaspossible.For example,a Hong Kong bank writes a credit derivativeon a dollar-denominatedIndonesianROI Eurobond maturingin 2007.It can hedgewith a back-toback trade- that is, buying the samederivativefrom another party. Here, the only profit for the Hong Kong bank would be simolv the difference between the bid and ask

prices.The only risk assumedwould be one of non-deliv- mercialbank effectivelyhasdiversifiedits concentratedloan ery by the counterparties,which is the standardrisk in the ponfolio as desired,while retaining the original loans on its balancesheetto maintain good client relations. brokeragebusiness. At the sametime, the Hong Kong Bank might want to o Freeingcredit lines. Credir derivatives can be used invest in the Indonesian ROI Eurobond direcrly. Selling the credit derivativeand holding the proceedsprovidesthe to free internal credit lines to borrowers,trading partners, same economic benefit as buying and holding the bond or traditional derivativescounterparties.Assume a comitself. In almost everycredit derivativetransaction,thereis mercial bank has reachedits internal lending limit with a combination of someof the risk being hedgedby simply respectto a certainclient but must continue ro provide for conducting back-to-backtradesand someofthe risk being the upcoming funding needsor the deriyativetransactions The bank held asa rype of investmentthat doesnot require a direct ofthe client,to maintaina strongrelationship. entersinto a toml return swaptied to the underlyingloan(s) purchaseof the instrument in the cashmarket. with the bank. Under the swap, the bank pays the total o Defauh swap to hedgerish of loan defaub. In rhis return on the existing loan(s) in considerationfor a paystrategy,the bank exchangesthe credit risk ofthe borrower ment. In so doing, while the underlyingloan(s)stayson for that of the swap counterparty.The periodic payment the books,the bank effectivelyhasswappedthe borrower's amount will dependprimarily on the amount to be paid in credit risk for that of the bank. the eventofdefault or credit evenr.A crediteuentisdefined Potential Market Growth in Asia by ISDA asany ofeight different rypes:bankruptry, credit eventupon merger,crossacceleration,crossdefault, downThe credit deriuatiuesmarhet worldwide. estimatedat $ grade,failure to pay,repudiation, and restructuring. 50 billion in 1997, has the potential to becomea tillionAt the time of credit event,the defaultswapmost prob- dollar plus sectorgiuen the expanseof the underlying credit ably would be cash-settled,basedon a pre-agreedfixed marbetscombined with the compelling inuestmentand rishamount or on the difference between the initial price of management4p?licationstheseproductsprouide. Cuxomized the assetand the prevailingpost-defaultmarket value.The products can be expectedto emerge,particularly the increased swap may also be structured such that, in the event of de- useof loan indices, corporate-bondindices, and bond-sector fault, the underlying loan is put to the bank at a price equal indicesas inuestmentand hedging benchmarks. Consequentlya liquid, ouer-the-countermarhet should to the agreedmarket value of the loan at the inception of deuelopfor optionsand other deriuatiueproducx tied to these the trade. indices,as well as to the more widely traded underlying bonds Moreover, the definition of default is another key to and loani themselues. the default swap and its pricing. A default may include \Vhile there still needsto be vast developmentin volbankruptcy, insolvencyor merely the failure to make payments within a pre-determinedtime. A downgrading of ume beforethe credit derivativesmarket can be described the credit by a public rating agencyto below certain pre- as universallyliquid, a huge variety of tradeshas already specifiedlevel might alsoconstitute a default. In short, the beensuccessfullyconcluded.For example,risksassociated more broadly default is defined,the higher the defaultswap with many illiquid emergingmarket infiastructureprojects havebeen hedgedthrough credit derivatives.They won t feesand vice versa. be the last ones,as banks and their corporateclients cono Total return suap to diuersifi concennatedloanport- tinue to rebuild their relationships. I folio. Consider a commercial bank that, like mosr banks, can best leverageits limited râ&#x201A;Źsourcesby specializingin a few industiies, geographicallocales,or both. This results in a concentratedloan portfolio that it seeksto diversify. However,becauseclients expectit to hold the loanson its balancesheet,the bank cannot diversif' by traditional secondary loan-markettrading. In this case,the bank can enter into a total return swapto diversi$' its risk without sell- GraciaS. Ugut joined the MBM corel-aculryin 1998.She ing the underlying loans.As a result ofthe swap,the com- handlesFinanceelectives.

It'sNotEnough ThatPeople Participate,

TheyHaveto Own The reforestationof Mt. Mahiling reaeahtbat the critical uariableof a deaehpmentprojecti success is a senseof ounership. By BenjaminC. Bagadion Jr.

Many lessonshavebeenlearnedabout why non-participatory approachesin development projects fail, but we do not have a good understandingof why the participatory approach works. indeed, the notion that participation is the crucial ingredient for project successis simplistic. The successfulreforestationof Mt. Makiling - which reversed three decadesof destruction amid often violent conflict betweenthe land'sownersand settlers - illustratesthat it is not participation that resultsin the successof a project, but peoplet senseofownership in the project.

It was no surprisethat UPLB was not able to mount a successfiireforestadonprogram.The forestdwellersuprooted newly planted seedlingsto protect their interest. Belligerenceeruptedin sporadicviolence.Meanwhile,the ecologicalstateofthe forest becamecritical. Biodiversiry was severelythreatened. Topsoil and water resources, among othersJwere rapidly depleted.Nature's devastating force beganto be felt aslandslidesclaimedhugeproperty losses,even lives, in the areassurrounding Mt. Makiling. ti(4rat went wrong?

First, the strategyof eviction and punitive action againstthe forestdwellersbred mutual hostility and snowballed into a mutually destructiveconflict. The strategy ver the last three decades,the Mt. Makiling was UPlB-centered and resultedin the alienation ofthe ForestReserve(MFR), located65 kms from Ma forest dwellers.What was meant to be law enforcement nila, servedashome and a livelihood sourcefor evenruallyimpingedon basichuman rights. many people. By the 1990s, 1,225 peoplewere living in Second, UPLB was not in a position to effectively the reserve,joined by 800 farmerswho tilled land in the fulfill its mandate. It was hampered by scarcefinancial MFR but lived elsewhere.From this uninterrupted and irreversibleinflux of people arosea major threat to the and manpower resourcesand their injudicious use. forest. Third, the erosion ofleadership credibiliry as manifestedin the forestdwellers'urifavorableperceptionofthe forest guards,was not addressed.The persistenceof the problem hindered dialogueand destroyedany morsel of goodwill left among the stakeholders.

Tension grew between the forest dwellers and the MFR caretaker,the University of the Philippines at Los Baf,os(UPLB). To UPLB, the forestdwellerswere squatters.The farmers thought the UPLB guardswere inefficient and corrupt, accusingthem ofunlawful actssuch as In sum, the UPLB strategywas insensitiveto social bribery ownershipoflandholdingsin the reserve,and conand political dimensionssuchasbasiclivelihood concerns nivancewith illegal loggers. and power relationships. 16

Mapping a New Course of Action

r Mobilize varioussecrorsof the university, such as students, faculry The failure ofthe universiry-cen- and campusorganizations teredstrategytriggeredurgentrethinko Enlisr rhe supportofvarious ing in the early1990ssothat by 1992, organizations within the universityt UPLB gearedup for a changein the perimeters, such as the International stateofaffairs in the reserve.To srem the tide of reforesration,prorect rhe Rice ResearchInstiture and the Boy remaining forest cover,and rehabili- Scoutsof the Philippines rarerhe denudedareas,rwo rrraregic o Launch an information camoptionswerâ&#x201A;Ź considered. paign to raiseawareness of the plight of the forest reserveand the imporT h e f i r s tw a st o i n r e n s i fp' u n i r i v e tanceof forâ&#x201A;Źst conservation operationsto drive out the settlers eventually.This would entail a huge The new strategy,called the Mt. budget and the useofstrong-arm tacMakiling Community-BasedConsertics. Violence was a likely outcome. vation Program (MCBCP), was launched on the ground with the deThe secondwas to transform the ploymenrof communiryorganizers in dwellersinto alliesand a forcefor conrhreepilot barangays. The organizers servation.The investmentrequired set up residencethere, allowing them w o u l d b e s m a l l e rc, o n s i s r i n g primaconstant, interactiveinteraction with r i l y o f s a l a r i eosf c o m m u n i r yo r g a n i z community members.Soon enough, ersand operaringexpenses for rhe inthe rwo proragonists werediscussing formal education of the forest dwellm u r u a lc o n c e r n ss,u c ha sr h ed e l i n e a ersand stakeholders. Goodwill-engention ofboundariesbenveenthe inhabdering tacticswould be employed,ini r e d a r e a sa n d t h e f o r e s rp r o r e c r i o n cluding a willingnessto negotiateon area. the issueoftenure and rhe useofforestresourcgs. The assumptionbehind ITithin rwo years,the project exthe secondoption was that if people rendedbeyondrhe rhreecommunities weregiventenure,they would be willto include five others.In keepingwith ing to cooperatein preventingthe furtheir agreement,the eighr organizather deterioration of the forest. tions initiated measuresto protect the forest.They practiced skills gained Reflectingthe populariry ofcon'participation' "empow- from training coursessponsoredby the ceptslike and MCBCP The ecologicalbalancern e r m e n t . 't h e m o m e n r u mo f o p i n i o n the forest reservepassedftom critical favoredengaginglocal people to parto a more manageablestate:encroachticipate in forestprotection. The new ment into the forestwas curtailed, reschemewould: forestationofcritical sitesbegan,and o Introduceprojectsin support cultivation of new lands stopped.As ofsourcesoflivelihood,to reducethe the MCBCP's project life drew to a closein April 1995, the last of the pressureto exploit forest resources community organizerswere pulled a Supporreconomicdevelop- out. By then there were eight local ment efTorts,such as the marketing people'sorganizations,a federationenof nontimber products like honey

compassingthem, forest-farmboundary lines in all the communities, partnership agreementsbetween the forest communitiesand the universiry and nor rheleasr.a watersupply.Seven yearsafter the MCBCP embarkedon a project using a strategywhich only a few endorsedand evenfewer thought would succeed,the farmers of Mt. Makiling have stood their ground, keeping true ro rheir avowed foresr watch. SuccessThrough Collective Action In sum, the programwasnot only able to attain its goals, but achieved them with a high degreeof people's participation. \i/hat went right? The communiry organizers (COs)had earnedthe communities' trust and confidence.Immersedin the areaand sharing the life of the communiry the COs played a key role in h e l p i n gs o l v ep r e s s i n g c o m mu n i t y concerns.To the forest dwellers, rhe organizerswerehighly credibleagents of the entireprocess. The people had developedownership rights over the project. They were consulted as partners and were active decision makers in each phase o f p r o . j e citm p l e m e n r a r i o nO. n l y i n such a climate was it possibleto reach a consensus on a sensitiveissuelike boundary delineation. Third, ground researchguided MCBCP actions"The srraregyrecognized that while UPLB wasthe owncr of the land, the farmerswere in possession. This meant that a mode of negotiation and consensus-buildinghad to be adopted,which would ensurea

win-win outcome.Ground data,gathe r e df i r s th a n d .w a sc r u c i a il n t i m i n g and determining the mix of inputs.

producethe desiredoutcomes.Several Dynamic fit is a composireof eighr variablesstandout ascharacteristic fea- key principles: turesof successfulprograms: First, the project strategymust be o Communityneeds. This refersto The project assuredtimely supply b a s e do n r h e f u s i o n o f c o m m u n i t y o F i n p u r s .T h e u n i v e r s i r a y n d i t s a l - an aspectoflife perceivedto be useful needsand external organizations.In but lacking in supply. The lied agenciesprovided expertise.The Mt. Makiling, the interest of the forCanadianInternationalDevelopment communiryt needis articulatedby the estdwellersinitially collided with that Agency provided fi nancial resources. community membersrather than de- of the university.A common ground fined by outsiders.Often, external had to be found betweenthe two conThe MCBCP had a decentralized a g e n c i e sa r e u n a b l e t o s p o t t h e flicting interests,which would serveas organization. The community orga- communityt felt need. the core of the strategy. nizershad the authoriry to make deo Inputs, which areresourcesaswell cisions within pre-approvedparamSecond, the capacity of an impleas processes inrroducedin a project. erers.Decisionsand acrionswererigmenting organization must fit the These may include the project budorouslyreviewedin a weeklysession. A groupsassessment ofa situg e t , c o u n t e r p a r t i n gs c h e m e s a , n d srraregy. ation may be irs correct and capaciry training courses, The MCBCP team had the colbeyond reproach,but its capacirymay lectiveexperienceand capacityto pera Snakg), a blueprint for acrion not be appropriate to the strategy's form the job and lead the conserua- to achievea pinpointed goal basedon needs. rion efforrs. The ream'scollecrive an assessment ofthe organization'senmanagerial experienceamounted to Third, project successensuesfrom vironment. The Mt. Makiling prohundred years. almost a gram employed the strategyof trans- the trust and confidencestakeholders forming farmersFromagentsofforesr have in each other. The initial step The MCBCP had the supportof desrrucrionto agenrsofconservarion. taken in this particular project was to top management.ActivesupPortcame preparethe stagefor the collaboratron o Capaciryrefersro rhedistincrive of the two parties. from the highestofficesofseveralorexpertiseof an organizationand its ganizations:the chancellorof UPLB, the director generalof rhe Southeast leader.It consistsofknowledge, skills, Fourth, the project must have a AsianResearch CenterforAgriculture, technologies,and practicesthat enable m e c h a n i s mr o r e s p o n dr o e v o l v i n g the director of Institute of Environ- an organization to respond to needs s i t u a t i o n so n t h e g r o u n d . I n M t . mentalScienceand Management,and and situations. Makiling. rhis was rhe weekJyractic the presidentofthe Asian Institute of Management. Creating the Dynamic Fit

o Leadership,the ability to drrect or guide a process. o Senseof ounershzp,the peoplet proprietary s€nseover a pro.ject,or a communiryt senseof solidarity with it.

sessionduring which the COs reported developments,problems, and €venIs.

Fifth, the people must develop a senseof ownership of the pro.jecr. Previous reforestation projects tn Mt. Makiling and elsewherehave These six variables do not them- been destroyed by forest dwellers who neither identified with the proselvesexplain project success.Their "project At the outset, success" m€re presencedoes not guarantee ject not thought of it as their own. musrbe defined.Simplypur, projecr projectsuccess. Peopleparticipate in a project not Success proceedsfrom success is ensuredby the presenceofa because they are consulted about it the way in which the variablesintersetofvariablesthat must interactwith or because rheyareallowedto particiact to achievea dynamic fit. each other following certain rules to pate in it, but becausethe project Criticalinsightscanbe drawnFrom rhe Mt. Makiling programto derive an explanation for the successes attained there.

touchestheir fundamental needsand interests.

Seventh,to crearedynamic fit, the the unconventionalapproachof the inputs must be congruent with the program.I needsof the situation and with the Sixrh,breakdor.rn rhe srraregyinro strategy.They must also be timely. Dr Benjamin C. Bagadion,Jr. is a member of smallsegmentswhich peoplecan comthe faculryofthe AsianInsrinLreofManagementt plete by themselves.The net effect Finally,a dynamic leadershipensures Cenrer lor DevelopmcntManagemenr.l his arof the smaller actions leads,objec- equilibrium amongall variables.In Mt. ricleisan excerprliom hisbor*, llendingthe\X/ind ( A I M B o o k s ) ,w h e r e h e d e s c r i b e sr h e M r . tively,to implementationof the strat- Makiling, leadershipwasd€monstrared Makiling project ({escibedin this article)where egyand, subjectively,to a senseofown- by the university chancellorwho had he workeclasconsulranrfor coummunity-baserl ership. the vision and who stronglysupported resourcenlanagcmenf.

SuccinctLessonsand UnresolvedQuestions By Gelia Castillo EmeritusProkssor,Universityof the Philippines, Los Bafios Benjlf s l>ook Bending the Wind is rhe realizationofmy dreamfor somebodyelse.Because,you see,socialscientistsin the development field are of three ryp€s:those who do, those who write, and those who advocate. To me, it is a great achievementthat someonewho doesalso writes and thus has more credibiliry. I was involved in the Makiling implementation task force and I went to the field trip and sawthe area.There wererimeswhen the tacticsessions that Benjy mentionedwere conducted. I was the only one from UPLB and I was very interestedin what they were doing. Benjy summarizesthe lessonsand failuresof the project succintly.

mentioned what he meansby community. The community is not ready-madeand he mentions that it is through collectiveaction, rhe process ofworking togetherand participation, rhar you c r e a r er h e c o m m u n i r yA . n d r h e c o m m u n i r yi s made up ofpeople who have day to day access to the resources.This is a very good beginning and definition of a communiry especiallywhen we relateit to narural resourcemanagement. There is also one statement I particularly "UPLB Iiked, he says was the jury ownersofthe land but the farmerswerede facto in possession." I think that is the secret to why they finally agreed.

I am very happy that Benjy maderevisitsand he promisedto do more. I hope AIM will allow Benjy mentioned the paradigm shift. I him to. Benjy said "the farmers scoredthe vicam sorry, Benjy, I think there has been no tory'' and throughout you will find vicrories of realignmentofstructure and thinking. There the farmers.Can you everfind the occasionwhen was, however,a renaming of the structure, UPLB scoredrhe vicrory?I think iL is imporranr bur the thinking is the sam€.Furtherwork is to do that. neededon this one. Also, one of conceptsI would like more researchon is that ofcommunity. Everything now is community-based.But what is community? 1 am glad that in Benjy'sbook he

Benjy mentionedthe importanceof a sense of ownership.When farmersfeela senseof ownership,do they also feel th€y own the land?And if they feel they own the land, how far would this go? r

Competitiveness: How Asia Can RegainLost Ground In all the mdjorfactors that connibute to global competitiueness, Asian counties droppedsignifcantl. Tb improueto pre-crisisleuek,policy makerscanfocus on six major areas.

By JuanMiguelLuz

o Domestic Economy: an evaluationof the domestic economy o Internationalization:the extentro which the country participatesin international trade and investment a Government: the extent to which government policiesand pracLices areconducivero compeririveness a Finance:the performanceof capital markets and qualiry of fi nancial services a Infrastructure:The extentto which resources meet the needsof business o Management:the extent to which companiesare managedin an innovative,profitable,and responsiblemanner a Science& Technology:scientific and technologie i n g r a n k e d a s t h e 3 2 ' d m o s t c o m p e t i t i v e cal capability ecohomy, out of 47, may not be cause for ceo People:availability and qualifications of human lebration. But the Philippinesdisplayednotable re- resources silience,as 1999 marked its fourth year in thar position. Its neighbors,with the exceptionofThailand, continued Asia Falls Behind in Key Fectors rankings. to fall in the Malaysia,Indonesia,Korea,and the Peoplet Republic of China dropped significantly in rhe Domesticeconomy.Reflectiveof the Asian economic Thailand rose five standings. placeson the strength of its crisis,all EastAsian economiesshoweda significant drop governmentand finance sectorreforms. in competitivenessin the domestic economy, including those that weatheredthe crisisfavorably (e.g.Taiwan). By comparison,membersof the EuropeanUnion, for rhe most part. showedmarkedimprovemenrin comperiInternationalizatioz.A sign that perhapsthâ&#x201A;Ź Asian critiveness,although the gap betweenthe top economiesvis- sis has bottomed out, a number of Asian economiesi-vis a strong United.Stateshaswidened. Japan,mainland China, the Philippines,tiwan, Thailand, and South Korea- haveimproved in rank in internationThe World Competitiveness Yearbookattemptsto rank alization. Only Malaysia and Indonesialost ground. Per47 nat:Lons' environments and their ability to provide an ceptionsshow a shift toward being more inwardJooking, environment in which enterprisescan compete.The fac- and this is true for all ofAsia. rors usedin rhe rankingincluded: At the end of the recent W SyCip Policy Center conferenceon competidveness,a respectedindustrialist stood up "From what I seetodaj', and delivereda succinctresponse: it looks like there'sno firture for the manufacturing sector. Thankyou." His statement,plus excerptsfrom the conferencepaperswhich appearbeloq sum up the severechallengesAsia facesas it tries to regain lost ground. The accompanying commentary from Luis Lorenzo,Jr. presents a view from a CEO ofan Asian comoanv that hasachieved global competitiveness.

Gouernment.Themeasures for governmentaredivided Focusonpeopleand human capital.Investmentin edubetween statisticaldata (debt, budget surplus/deficit, re- cation and an emphasison quality education will go far serves,expenditures,tax rates, crime incidence) and in- towardsimproving output and productiviry country residents'percepdonsthrough surveys.With the exceptionofThailand and Japan,which both rosein rank, Focuson basicarchitecture.Alack of competitiveness in all Asian countries showed some decline in ranking. this critical areawill only leavethe country lesscompetiSingapore,Hong Kong, and Malaysia,however,retained tive in the immediate, medium, and long term. their ranking at rhe top of the survey. Fouu on technologicalinfastructure. Here, the private Finance.Four Asian economiesreversedtheir signifi- sectorcan be the driver provided government createsthe cant drop in rank from the previousyear: the Philippines, right policy environmenrfor lraircomperirion. mainland China, Thailand, and South Korea.This is a sign again of a bottoming out of the crisis.Malaysiaand IndoFocuson economic fundamentals.Sustainedgrowth can nesia,however,continued to slide in rank in this category. only be attained through sound fundamentals.In addition, eachcountry should work hard to manageits vulnerInfastructure. None of the SoutheastAsian counrries abilities.For the Philippines,for example,if trade and in the surveylanded in the top 10 in infrastructure.Indo- exports are to be major drivers for susrainedgrowth, nesia,Thailand, mainland China, and the Philippines are export market diversification and a concerted effort to grouped together in the bottom sevenofall countriessur- replaceimports with more locally produced value-added veyed.Infrastructurehas beenthe baneofthe Philippines, components must be major goals of government and in particular,and is a major reasonfor the low overallrank- business. ing it has receivedover the years.Relativeto endre survey, the Philippines is ranked 45 out of 47 . Focusonproductiuity. Productivity will be a major driver in any knowledge-based economy.All sectorsmust be made Management.Theranking for managementof all Asian more awareofproductivity (or the low levelsthereof,where economiesdid not changesignificantly from the past sur- these apply), and prepared to increaseit in all respects. vey period, though ir remains low (except for Singapore There'sa needto communicatewith everybodyso that they and Taiwan). South Korea and mainland China fell even link the outcomes to improving output in productivity. further. There must be a strong link between productiviry and education. Scienceand Tlchnologlt. Nl the SoutheastAsian countries in the survey lost ground in 1999, with mainland Governmentmust work on perceptionsabout its value. China, Malaysia, and China recording the most signifi- If governmentsare to provide policy leadership,percepcant drops.Except for Taiwan and Singapore,which are in tibns about their abiliry to deliver must be bolstered the top 12, the Asian countriesarein the low-middle group by real output. Governmentsmust be seento deliver in such factors as R&D, technology management,scien- quality servicethat is fair, transparentand, aboveall, value tific environment, and intellectual properry added. r People.Theavarlabilityofqualified human resourcesis a key factor ofcompetitiveness.In this viral categoryAsian economies,with rhe exception of Thailand, dropped in ranking. The Philippineswas particularly hard hit. The Agenda for Policy Makers To regainlost ground, and to improve beyond pre-cri sis levels,policy makersneed to addresssix ma.jor areas:

Juan Miguel Luz is the rnanagingdirecrorof rhe Center for Social ResponsibiliryoftheAsian Institute of Managemenr.He wasprogramdirectorofV- SlCip PolicyCenter,which is the public policy think-tank ofthe AsianInstituteofManagementand is the Philippine partnerof IMD Internationalin the preparationofthe Philippine portion ofthe Vl'orldCompetitiueness Yearbook.

'What

We Learned,and Unlearned,on the Way to Competitiveness By Luis LorenzoJr Chairmanand CEO of LapandayHoldings,Corp.

I d like to sharewhat we aspireto be in regard to being globally competitive. Our core businessis processedand fresh fruit and vegerables.We are in an environment where the multinationals have dominated rhe world markets for so long and are well-entrenchedin the distributionchannels. To be globally competitive I have had to overcomemy initial bias.I usedto be extremely nationalisticin termsofhiring Filipinosabove any other nationaliry. But I have found that if the individual is willing to shareour values,is very people-oriented,self-motivated,extremely committed to being a changeagent,and hastremendousenergy,he or shecould come from anywhere in the world and work for us. Ve've madea significanrinvestmenrin exposing our personnelto the best marketsin the world. It's been expensive,but it's been worthw.hile. We'veempoweredour people.Thatt so important, but it's painful. Weve allowed them to make mistakes,including some very expensiveones. But hopefully they don't repeatthese mistakes. In terms ofinvestments, we investon assets relevantto global competition. For only in assets example,we built a cold storagefaciliry which hasgiven us the abilir/ to be in the marketplace with a product that can stay fresh one week longer. Ve like to securefinancing outside of the PhiJippines. whereprovidershavemorecreariv-

iry and flexibility, and where there'smore long term money available. 'We've cut layers of communication and bureaucrary.Wete flatter and leanerfor faster decisionmaking. Becausewe havefocusedon niche marketing, we strive for a fast response time to our customers.In Japan,when whateverwe areselling is openedat the port we get immediate feedbackon quality through a mobile phone. If there'sa shipment leavingwe make the necessary adjustmentsifthere are issuesrelativeto a particular shipment. I got the ultimate compliment from Chiquita USA. I asked their represenrative, how do you addressyour strategicplan exer"You cise for Asia?He looks at me and says, know, anlthing you start one year from whatever day you started,we copy and test." I tl like to end by sayingthat alliancesare necâ&#x201A;Źssaryfor survival in any industry. A few yearsago, we couldnt sell our fruit into New Zealand. I told them, I'll work with you. I'll bring my ship down therewith our fruits. The ship will go back sayto Japanwith your fruit, and you'll piggybackon our distribution system. So we started this processand achieved congruence. Finally, behind most companiesthat are globally competitiveis a 24-hour workday.All our managersare keyed-in and they're under instruction to be accessible 24 hours a day.We talk aboutproductiviry but we rarelytalk about discipline.Disciplineis so important. r

Your Very Own Networking Tool Dear Fellow Members of the AIM Alumni,

THpAsnN Meuecrn A PurLrc,ttloNor tgE AsrANINsrrrurE or Mau,rcturNr

\Welcomc to your magazine.

4d Quarter 1999

Make that, to your magazines.Wharyou re holding is a package consisting of a formal managemenrpublicarion and an 'I'he alumni magazine. aim of this package is rwofold: O To showcaseAIM researchand content asa way ofhighlighting AIM s position as the authority on Asian managemenr practice

24 Alumni UpdateForm Beyondthe Box

O To encourageyou to strengthenyour ties to the Insritute and to the powerful network of businessand government leaderswho comprise the AIM alumni body

AIM Update Faculty Profiles

As the openingTableofContents proclaims,the missionof I he Asian Manager, nurtured by TAM: esteemedformer editors and updatedhere,is to influencemanagemenrthought and practicein Asia.'l'his reflecrsrhe strengthofAIM asan institution unparalleledin its ability to teachthe practiceof management in Asia. '1'his strengthof AIM in teachingand influencing practice reflectsthe realitiesin the region, where the pushing the frontier of management theorv is secondarv to applying managemenr toward the successofenterprise and the development ofeconomies.Each issuewill coverthe increasingrangeofAIM content businessmanagement,developmentmanagement,entrepreneurial management,and policy advocac* And, startingon this page,you will seethe alumni-focused part ofthe nragazinc.This parr of TAM atms ro esrablishongoing communicarion betweenyou the Institute and the alumni regardingthe Institute'sprogramsand plans.The alumni section containsnewsabout the alumni and featuresprofilesofour fellow AIM-bred Asian managers,aswell as rhoseof our distinguished laculty members. The professorswill also contribute regularly to making TAM as fun as it is informative, asyou'll see i n . o m e o f t h e : e c r i o n sr h a r l o l l o w . Class Notes is your very own section: Is your class repre, senred?Check quickly, and sendus mail at tam@aim.edu.phto send your notes and to send feedback to your magazine. Sincerely,

Jo^ry-'fZ Jet MagsaysayMM

'89

Forum: The Asian Manager, ca.1999 InsideMBM ' What'sIn It for Me? . TwentyYearsof Boot Camp On Campus: At Play in the Major League Alumni Profiles . A Chief Talksto His Staff ' How an International EntrepreneurTurnedHis MRR into Gold ' An AIM Grad Takeson Europe AboutAIM . Six Pillars of Management Wisdom ' Tiger Circle . AIM oh the WWW Gadfly! ClassNotes

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E BOX By Maria Milagros T. Garcia

Cook lt Right byAnne \Villan. Coversthe basrcs like how to achievethe right degreeofcooking, technical terms and how to get them right.

ClassicCookingSeries b1Allen & Unwin. Coversthe basicsagain,pasraro puddings and noodles.A must havefor everykitchen.

CookingFor Two by SuzieSmith.Cooking optionsfor when numbers arelimited.

How To Cook Everything b1Mark Bittman Evenif you dont havethe time, at least you klow how.

Boy MeetsGrill byBobfuFlay.Boygetsgrill,boyloses grill,Boybuysa bettergrill and other gripping grill stories.

Usefultips on how to live simp l y . A I s o a v a i l a b l er: h e S i m p l e L i v i n g C u i d e b y J a n e tL u h r s offerswaysto save,paredown and minimalize. www.gourmetgardener.com For t h e S u n d a y g a r d e n e r .O r d e r herbs,vegetables,flowers,edible and not, from this site. Quality seedtesting done by the site's owner in Northern France.The products get to you a week or so. Catalog also available.

The MarthaStewart Cookbook b1Martha Steuarr. The guru ofentertainingshowsyou how to entertaineasilyeveryday of the week.

tIFESITES

wwwlushcanada,com Smell great at those board meetings. The favoritesoapand shopofthe trendy Londoner. \(ebsite in Vancouver, Canada featuresfavorites like the Bath Bomb (throw into your bath and get an explosion of suds and scents),intoxicatingorangeand cinnamon-scentedsoapand luxurious bananabody moisturizers. www.lim,com S p e c i a l i z e si n difficult-to find h igh-designfurniture from Eames coat racks ro N o g u c h i L a m p s C a s s i n a ,B & B Italia, Artelano,etc.

www.intedoc.com If youte in searchfor vintage publications, this website will track them down. A privatedatabasesystem with over two million books, maps, manuscripts,photos and information on upcoming book fairs and events. www.art-online.com Browse through current gallery shows and artists on the \7EB. Prices, stock, who's showing what and where are postedregularly for the avid art collector and investor. www.slnet.com A simple switch website for those who want lessart and morebarewalls.

www.restof ationhardware,com Chic hardwarehotel coffeeservers,old style metal showerrings, p o t t i n g b e n c h e sa n d c h r o m e plated brasspharmacy table lamps.The sitedoesntmkeonline ordersso this makesfor frustrated browsing. www. reel,com The webt largestmovie store.Find rare,vintage and contemporarymovies- more than 85,000 titles-formovie buffs and seriouscollectorslooking to round off their collection. www.calmcentre.com Check this one out in'the middle of a stressfulday. Featuresa meditation cloud you can synchronize your breathing to, plus audio tapesand boola to help you become more sereneand centered daily.

LIVINGWITH

LESS:

You Can Do It

fthe 80! werethe decade J I of excess-* ith Joan Collins as the reigning queen of the luxurious lifestyle,and 'Acquire! the slogan: the just the opposite. Par90'sare ing down and simplifring are the primary goal. Peopleall over the world are embracing "Downshifting" the valuesof "Less and is More" and applying them to various areasin their lives,like work, relationships,family and friends. Hence, the proliferation ofbooks and websiteson simple living that caterto cuttinS down or evengiving up the rat race altogether. The more popular boolcson living a simple life are by author Elaine Saint James,who was a practitioner of simple living even before Joan got her jewels, Here are somesuggestionsfor living with less(itt lesspainful than you think) from her first book, Living the Simple Life: Reduce the clutter in your life by adopting the first in first out principle. \Vhen you buy something,youve got to toss somethingout. So beforeyou buy, askyourselfiis thereanything I want to get rid ofQ

Basic gift-giving maxim: dont. If you can avoid rhe Chrisrmasgiftgiving frenzy rhen you re way ahead of the game. If not, give simple items that can be usedimmediately and don't add clutter or take up space:food, a massage,gift certificates,soapsand candlesaregood examples. Live on halfofwhat yorr earn, save the other half. Sounds simple but dificult to do if youte used to a high consumption lifestyle. Better yet, pretend you only earn half of what you do (takessome imagination) and plan your budget based on that.

Cut your grocery time in half buying only oncea weekor twice a month with a specificlist cuts down on the time you spend wandering around the store thinking about what you want to buy and buying what you dont need. Buy in Bulk. This works if you live alone, but not if you have limited space. Move to a smaller house. One basicprinciple in home-owning: the smallerthe roof, the lessleals and headaches. Build a simple watdrobe. Men are ahead with this one, which goeshand in handwith the FIFO purchasingprinciple. Stop the junk mail. Stop it ar your end by throwing it out immediately or be proactive and call the company and requestto be taken off their mailing list.

Simplifryour eating habits. Itt no coincidencethat the foods that are healthy on your waistline are also healrhyon your waller: fruit, vegetables,home-cooking,one dish versusthree, etc, Stop making the bed. An offshoot ofa rigid childhood,leavingthe bed unmade induces all sorts of guilt feelingsand allows a senseofanarchy to permeatein the household. But those 10 minutes could be spent on more productive ventures (evenMartha Stewartleavesher bed unmade)The question to all compulsivebed-makersis: who areyou making the bed for?

If you're interestedin furthering yoursimplelifesryle checkout these booksby simpleliving guru Elaine LiuingtheSimpleLife, SaintJames: Your Life, Inner Simplicity, Simpffi Simplifi Your Life uith Kids, SimplyYourChristmas.

ErfianoeYolrerâ&#x201A;Źsdvlff tep into any bookstore today and you'll find a handful of bools on Creativity in the business section. These books all oromise to show executiveshow to turn themselvesinto dazzlingly creative leaders.Not surprisingly,most ofthe books havebecome besmellers, lappedup by executives and entrepreneurs alike. This trend isnt merely new-agemillennium mumbojumbo. Businesses are turning to creativeprinciples and pracdcessimply becausethey havenowhereelseto go. In order to innovate,remain dynamic and at the forefronr of rapidly-changing industries-swamped with intense competition-today! leadersneed to be their own Creative consulranrs. A basicsrepro unleashingyour crearivepower is to unlearn. li(/hile education provides a usefi.rlstructure from which logicaland rarionalrhinkingcan spring.ir is notorious for killing the natural creativeprocess. Unlearning involvessteppingaway from structuredthinking that has been rigorously instilled in one'spsyche. It isn't easy.However there is one natural way to disengage:through play. For example, when confronted with a problem at work, one creativeexecurivekeepsa sketch pad next to his desk and gives himself permissionto doodle away,ignoring the problem for the meantime. After five minutes he returns ro the issueat hand. If he hasnt found an answer to the problem, he can at leastseeit with a freshereye and broader perspective. Another busy entrepreneur,a basketballfan, keepsa basketballhoop in his office. \fhen his problem-solving well runs dry, he practicesshooring a foam ball through the hoop. Severalrounds later, the entrepreneurcomesaway much more relaxedand open to alternativeways of viewing the problem. Sometimeshe may even come up with a specificsolution. Another way to enhanceyour creativity is to develop an interest in many different tlings. It's no fluke that balance is the new buzzword "balance" for the hanied executive. In this case is relatedto choiceswe make about things that are important to us in our lives.Moving closerto a balancedlife

implies a basketwith a number of eggsin it (and maybe one golden egg wirh the end goal of creating a fruitful and stimulating life that is filled with a number of interestsand activities. H a v i n g o t h e r i n t e r e s t s a l s o e n s u r e st h a t y o u get a constant flow of information from many iueas. Theseideascan be appliedto your work in differentways. For example,spons have,for a long time, beenacceprable counterparts to business,wirh lessonsimmediately applicableto organizationaland personalchallenges. Other areaslike art, writing, music and books can also assistin creativity-building by exercisingdifferent parts of the brain and allowing one ro experienceother structures.Activirieswe enjoy alsoboost our mental state and createa relaxationresponse-fertile ground for the creativeprocess. One harried lawyer,a bird enthusiast, plays a tape ofbird songshe collectedin the wild, while workins on a difficult case.

Swivel Screen from Apple Britishindustrial designer lve is currentlv Jonathan head of Apple'sdivisionhe'sthe creative geniusresponsible for theMaca bestseller, with its vivid colors and huggable ' contournowlve has developed a sleek displayscreenwitha flexibleswivelstandhis designmission: to move beyondthe boxand approach eachproductdifferentlyby craftinga distinctdesignpersonality foreach.

10ThingsTo Packon a BusinessThip Another way to enhance creauury $ to practice overcoming judgmental inhibitions both ertemallv and internallv. As children we flow with creativeideaseverysecond. These ideasbegin to dwindle down to more acceptablesolutions aswe get older in order to satisry adult perceptions of what makes sense. In the creativeprocess,all ideasmust be considered,even, or especially, the ones "stupid" nodons that dont makesense.These may,in hct, be seedlings of brilliant,creative thought. Finally, and probably the most difiicult to do in our sped-up information age: slow down. The creativeprocessdoesnot lend itself to instant brainstorms or quickie solutions. A CEO of a Fortune 500 company closeshis door from the hours of 12 to 2 PM (easyto do if you're the CEO) to just sit, think, let his mind wander and to break down the eventsofthe day into bite-sizeportions. It is during thesetwo crucial hours that he feels he doeshis best,most incisive thinking. Finally,we needto rememberthat, while the outcome may not be equal to the artistic creationsofa Picasso or a Da Vinci, everyone possessesthe same creative potential-itt all just a matter of applying the proper brushstrokes.I

For more information on the Principles of Creativiry check out the following websites: edwdebono.com meditationroom.com enchantedmind.com ozemail.com

Umbrella Vith La Nifia and her siblings,you neverknow when the rain will strike and what part of the world will be dry or wet. Bathing Suit Not that you'll wear this at a businessmeeting. But taking advantageofthe hotel pool is good for your health. Especiallyif you'rea frequent travelerin needof exercise. Sweater Somemalls and officesin fuia are colder than an Alaskan glacier,so a warm sweateror jacket will help keep the chills away. Raincoat Hopefully something that matchesthe umbrella. Legging or jogging pants Instant exercisewear or for traipsing around a new ciry after your meeting has beensuddenlycancelled. Evening suit or dress 'While most executivesthink their daytime businesssuit just worls aswell for evenings,things are a little more formal in Asia, so be prepared. Sunglasses For those lunchtime treks acrossthe city, under the glare of the midday sun. Saveson migraine pills. Varm nightgown Ditto for hotel air-conditioners.Dont be fooled by lower settingson the thermostat.Next to the offswitch, the settingsare zero,subzeroand deep freeze. Sneakers You wouldn t want to wear your dressyshoesduring g?hoons and flash floods. Plastic bags Can be usedfor anything from wet and dirry clothesto breakablepurchasesand laundry

onnr U PDATE

; i

DeOcampols NewAlMPresident

ormer Secretarvof Finance F h I Roberrode OcampoJr. was installedasthe fifth presidentof the Institute on September1, 1999. Hts predecessors areDr. StephenFuller,Sixto K. Roxas, GabinoMendoza,and Felipe Alfonso. The new AIM presidentwas the first ASEAN finance official "Best to be honored Finance Minister" by Euromonry.He was "Asiat alsojudged BestFinance Minister" by the samepublica'ASEAN tion, and Finance Minister" by Asiamon4tmagazine. He worked asseniorloan officerat the W'orldBank aftera stint at the Office of the Presidenr and the National Electrification Administration. He became chairmanof the Development Bank of the Philippines(DBP)

during the administrationsof Pres.CorazonAquino and Pres. Fidel Ramos. His other past positions:governorof the board of governorsof the Vorld Bank and the ADB, alternategovernor of the IMF, chairmanof land Bankof the Philippines, Philippine DepositInsurahceCorp. and the PhilippineExport and Foreign Loan GuarantyCorp., chairmanof APEC and ASEAN financeministers. In addition. he hasservedaschairmanof the boardof trusteesofDe La Salle Universiry directorof the PLDI PhilippineStockExchange, Meralco,United Pulp and Paper Corp., and DavaoUnion Cement Corp. At present,he is senior adviserat SGV,an futhur Andersenmemberfirm founded by lVashingtonSyCip,current

chairmanofthe AIM boardof trusrees. De Ocampo,a black-belter who plays golf well, and the classicalguitar, receivedhis economicsdegreefrom Ateneode Manila Universiry his MBA From the Universiry of Michigan, and his Ph.D. in businessadministration (honorisa causa)at DLSU. He was alsoa fellow in developmentaladministrationat the London Schoolof Economics. Vith de Ocampo at the helm, AIM is expectedto further strengthenits institutionalties with the business communitiesin the Asia-Pacificregion,which is the institute'straditionalturf. To date,around25,000 alumni from AIMI variousdegreeand nondegreeprogramsarestrategically placedin key managementpositions in more than 60 countries worldwide.

1999TripleA AwardsSet of The Alumni Association t , tne lnsfltute Davstnbute to a selectgroup of memberswith excellentperformancein various fieldsof professional, entrepreneurialor developmentwork through the annualTiiple A Awards. Nominationsarenow beingacceptedat the AIM Alumni ofiice on the 4th floor of the ACCEED building beside AIM. The awardingceremony will be held in Thiwan on November 6, 1999 durin8 the annual ,U

U PDAT E conferenceof the Federation of Alumni Associationsof the Institute.

FilAlfonsoNamed Vice Chairman

IM's boardof trusteeshas announcedthe electionof Felipe("Fil")Alfonso,former AIM president( 1990-August lq99),asvicechairman.Concurrentto this new position,he remainsholder of the William Soeryadjaya professorialchair in business management. He is.currently chairmanof the boardof Meralco,and director of PHINIT4AGroup,Jollibee FoodsCorp., BenpresHoldings Ltd., BacnotanCementCorp., ChemoilAsia,Hembrecht& Quist Philippines,TA Securities Berhad(Malaysia),Wockhardt Lrd (lndia),All AsiaLifeAssuranceCorp., All Asia PlansCorp., All Asia SedgwickInsurance BrokersCorp., First Metro Investment Corp.,DuvazCorp., PhilippineDepositInsurance Corp.,and the Coca-ColaFoundationoIthe Philippines. Fil hashad over20 yearsof collectiveexperiencein conducting management development A ^

programs for private and public entitiesin ASEAN countries. His current consultancies include Citibank NA, SanMiguel Corp;, MB FinanceBerhad (Malaysia), FederalAuto Holdings Finance Berhad (Malaysia), PT Caltex Pacific Indonesia, Bank Umum N a s i o n a (l I n d o n e s i a )a, n d M a n agement Dynamics, Inc. Before joining AIM, he was a practicing lawyer and corporate secretaryin various companies, such as the Thbacaleragroup of companies. He was also a consultant at SGV a professor of the AdMU MBA program, and a casewriter for the Harvard advisory group.

H e j o i n e dA I M i n 1 9 6 8 , becameassociatedean for resarch and associatedean for development, presidentof the AIM Scientific ResearchFoundation, and publisher of TheAsian Manager. As a management p r a c t i t i o n e rh. e h a sd o n e e x t e n s i v e work on management patterns of family-owned corporations in Asian countries, as well as behavioral concepts in management. Prof Alonso receivedhis liberal arts education from the San Jose Seminary, then finished a law degreefrom the Ateneo de Manila law school, and an MBA from

NIrtJ.

Sycip Inducts ltls\flA/tuAlMBoard

ashingtonSycip, chairman of the board of trustress of the Institute and founder, forme r'chairman of SGV,recentlyinductedthe members of the board of directorsof the AAAIM for 1999-2000. The AAAIM is the associationthat groups the 13,000-strongFilipino alumni of AIM. This year'sboard is composedof newly-electeddirectors whose terms will end in 2001, namely:RenatoMartinez (chairman), Bienvenido Araw (vice chairman), CaezarEvangelista (secretary),Venie Ranosa (treasurer, founding editor of AIM

Alumnois), Jose Roxas,Joselito Yabut, Wellington Ty, and Eduardo Banaga. Also on the board are Dulce Casaclang, Ofelia Odilao-Bisnar,and Mark Anthony Bagatsing. Former AAAIM presidentJose Ma. J. Fernandezis ex-officio member. He is also the adviser of FAAAIM, wherehe is the past president. The incumbent directors whosetermswill end in 2000 are Victoria Garchitorena, Ruperto Nicdao Jr., Augusto Bengzon, Enrique Hernandez, Ma. Corinna Parungao,and Bernardino Ramos.

RobertoF. deOcampo

The RightTime,The Right Idea

TheAIM Presidentis conuincedthat the internationalprestigehe enjoys will helpstrengthen,maybeeuenexpand,the Institun'sglobal linhages

think the timing is perfect,"saysRobertoF.de Ocampo ffi "I | | | of hislatestjob asthesixthAIM presidenr. shouldbe ^ | | ableto help the Institute in its nerworkingeffortsoverseas,and in effectits projectionasan inrernationalinstitute." Projectinginstitutionsonto the internationalstageappears prominently on de Ocampot resumd.A starringrole as FinanceSecretary of the Ramosadministrationearnedhim rave reviewsin internationaland fuian businessoublications.For deftlymanagingthe Philippineeconomyfrom "being the proverbialsickman ofAsia to an emergingtiger,"Euromone!rnagazine named him "Best FinanceMinister" in 1995, the first ASEAN financeofficial to be soesreemed. The followingyear "Asia's the samema9azine taggedhim BestFinanceMinister."

him the honorThe winning streakwent on until 1997 whenAsiamoneymagazinebestowed 'ASEAN ific FinanceMinister." Timing things perfectly would seemto be another de Ocampo trait; his high-octane performance could perhapsbe beter appreciatedin the context of his having beenin the right placeat the right time . The Ramosadministration coincidedwith a precrisisAsia, when economic trends, and spirits, were on the upswing. The rest of the world was looking to do more businesswith Asia, and in thoseyearsde Ocampo did the round ofinternational financial institutions, forging or strengtheningties with thesewhile cleaningup houseto stimulate revenueefficienry. "During those yearswe were have put in place a lot of economic reforms," he says. doing our best to open up the Philippine market in order to bring the Philippine economy to conditions in our more successfulneighborswhoseexportswereincreasingand who were enjoying more substantia.ltrade. As such they were more capableof attracting more foreign investmentsthan the Philippines." "We

Though the Asian crisismay havearrestedeconomicgrowth in theseparts, the man they call "We "Tiger could still developour Bobby'' insistson maintaining an enthusiasmfor the possible. capability to have a good revenuebasewhile working on a poverty alleviation program with emphasison job creation rather than only on safetynets- becausein the end, poverry is alleviated ifyou provide jobs for the poor and make them un-poor. It is ofcourse important to establish what segmentofsociety needsextra help no matter what we do. But we mustnt developour entire approachto povefty alleviation on the basisofthat." Networking As a Citizen De Ocampo brings the same bright-eyed energy to his presidencyin the Institute, whose "The Instiinternational characterhe expectsto enhancewith his equally international persona. tute is the preeminent school in the region and we must make surewe project that," he says.As "quick to embracethe leading idge in e-commerce,and distance such, the Institute must be l'earningas the wave of the future." He vows:

"I'll

now do the best I can to make sure that happens."

He's new on the job all right, having taken over the presidencyin September 1, but his "known in the confidencecould be contagious.Het quick to point out his advantageofbeing "relatively easytime establishinga international community," which he believeswill give him a network that will be very helpful to the ob.jectivesof AIM." The network ofwhich de Ocampo speakshasgrown out ofhis extensiveprivate- and publicsectorpositions.Beforesewing asFinanceSecretaryde Ocampo worked asseniorloan officer in the World Bank followine a brief stint with the Office of the Presidentand the National Electri

is important to establishwhat segmentof societ!nee^ extrahelP

no matter what wedo. But we mustn! deuehpour entireaPProach to Pouerty alleaiation on the basisofthat" 4)

"We couldall benerttfom returning to the basics, suchascommonsente- sometimes peoplewith a high degree of sophisticationrun thort on commonsente."

fication Administrarion. During the administrations of PresidentsCorazon Aquino and Fidel Ramoshe was chairman of rhe Development Bank of the Philippines. He was alsoa member of the board ofgovernors ofthe W'orld Bank and the Asian Development Bank, alternategovernor ofthe International Monetary Fund, chairman ofthe Land Bank ofthe Philippines, Philippine Deposit InsuranceCorporation and the Philippine Export and Foreign l,oan Guaranry Corporation. In 1997 de Ocampo alsoservedaschairman of the APEC finance ministersand ASEAN financeministers. De Ocampo has also servedin various capacitiesin other private corporations,and is currently senior adviserat SGV an Arthur Andersenmember firm founded by lVashington SyCip, current chairman of the AIM board oftrustees. "Doing

Sometfiing Different"

The presshasoften likened de Ocampo to his former boss(former PresidentRamos),in that they both thrive on work. A busy scheduleis the only kind de Ocampo seemsto abide by. No magic to it, he'd be the first to swear.'Vecould all benefit, he says,from returning to the basics, "Because such as common sense. somâ&#x201A;Źtimespeople with a high degreeof sophisricationrun shorr on common sense,"he laughs. He copes,he admits, by turning to someofhis earliestpassions,the most notableofwhich is the classicalguitar. He wasin high schoolwhen everyoneelsewasinto the "surfing" sound ofthe "Everybody Ventures.De Ocampo recalls: then tried to havea little combo, instrumentals,and so going along with my friends I dabbled in chord proglession,but neverreally got seriouswith it. I havea tendencyto want to do somethingdifferenr from the crowd. But I alsohad an interest in music so I didnt want to do the combo sruffbecauseeverybodyelsewas doing it." In collegehe and a handful of classmaresat De La Salle came under the tutelage of the maestro,Jose Pellicer,an ex-BenguetMining employeewho went on to launch the classical guitar coursein the University ofthe Philippines' Collegeof Music. "I was so enthusiasticabout "I it," de Ocampo recalls. rememberbeing crazyenough to practiceintensivelyso that my fingertips hurt. I'd evenwear glovesto make sure I didnt break my practice.So it got to a point when I becamegood enough to inspire other people to get into it." He has neverreallyput the guitar down. He hasalsobeen honing his golf game- which is reported to be alreadysharp.There are a couple ofother imagesofde Ocampo that the Philippine media haveimmortalized - the karateblack belt and the singer- at the height ofspeculations about PresidentRamost likely successor. He'd been one ofthe fair-haired boys,remember,only to be shor down, among other things, for speakingFilipino with a laughabletwang. But that'sall in the past now, de Ocampo says,and common senseshould tell us all ro moye, more boldly, into the future. t -J. dc Jew;s

JesusG.GallegosJr.

"Grandeur

in This View of Life"

The Dean reflectson AIM's remarhableeuolutionunder his /eadership, and bow the Institute tuill continueto quicbly euolueinto an euenhigherform. i

: ^--T s JesusC. GallegosJr. entersrhe homesrretchas Dean of | ,s ixed I A I r h e I n s r i r u r er.h e i u n c r u r eu n d e r s r a n d a bal yr o u 5 e m , ieelings. He leaves rhe office in 2000 his proud rhar adminisJune l.1f]l |ltrationlaunchedandsustainedmajorprojectsinthelastfiveyears. f |

Among theseareinstitute-widecomputerization,an Environment Management Systemthat will leadto an ISO 14000 certificationfor AIM, and rwo landmark programs:the ExecutiveMBA and the Master in Entrepreneurship, aswell asthe start-upand successful operationsofthe l2-story conferencecenter- all of theselorming part of an empoweredorganization.And yet thereare many more things he would havewanted to accomplish. In the end, he pulls conflicringemotionsinto one - by being asexcited as the next man about things to come, in the Institute and in the world it moves. "Ve're

working hard ar becomingthe first schoolof choicefor people

"rW.e wantingto work in Asia,regardless of nationaliry"saysJess. intendto

do this by being true to our mission,which is responsiveness to our diverse markets,henceour diverseportfolio mix in both businessand development areas."In his view the Institute doesnot stop at merelyturning its students

into fine professionals; its alumniareequippedwith criticalthinkingskills and the entrepreneurialedge.

"Thats

why we areheaw on the entrepreneurial foundationin our courses, an orientationthat hasbroughtaboutrhe Mastersin Entrepreneurship. And rhis,I think, will be key in the next millennium."Jessis confidenrthat the Institutewill leadresearch on Asian management,and conrributesignificantlyto the storeof worldwideknowledge on managementpracticesand trends. He cites rwo rich researchareasin Asia - entre- tharrhe Institutehaspluggedinto. He observes: preneurshipand family corporations "Our research in entrepreneurship in Asiatendsto shorvthat Asianbusiness is lackingin \West, the right-brainapproach.Most, if nor all, business schoolsin the or evenin Asia, 'left-brain' aredisposedto a learningrnode.So I believewe'll makea differencethere.In fact, a recentlyconcludedsurvcyof recenrgraduatesand their superiorsconfirm rhat creativiryskillsareindeedrhe more importantskillslearnedat AIM." All Things Asian Jess,in helpingrhe Institutefulfill its mandatero preachand practice'Asianmanagementwith a globalperspective," clarifiesthat the research direcrivero developspe"in cialization rhingsuniquelyAsian"is not a stepbackinto regionalisrn (read:parochialism).On the contrarl',it's a bold challengeto the old saw "Eastis Eastand Wesris 'West / and ne'errhe rwain shallmeet," rernember? Jessis in completeagreementwith the proposition's first parr;the conclusion,however,hed rathertreatasa solvablepuzzle. "\We are different from the lfest," he savs,but thar shouldn't stop us froni melding "globalization" the bestofboth possibleworlds,especiallv now that n'ewakeup to realiriesnearly everyday. He citesthe way Asian conglomcrares the Ayala nerwork of the Philippines,ro cire one exemplarycase- haveshownthat it can handlemultiplc diversebusinesses successfully evenasconventionalwisdom madea pitch fbr stickingto the knitting and corecompetencies."Therewill alwaysbe new developments, particularlv in the way Asia will respondto the demandsofglobal business. But rhe Insrirure's missionis clear,and while we'rereadyto adaptfiom a clearerAsianstandpoint,this will not change:we will continueto be practitioner-oriented borh in the research we conduct and the faculw we atrract. Faith and the Deanshio "liked" \X/hen being Dean, one is hard pressedto iniaginewhich Jesssaysthat he nuancehe meansour of a possiblehundred.Bur hereis a man who knowswhat comes with the territory: fbr five yearshet had ro managea swellingnumber of facultyand staff,a job that couldn'texacrlybe done door to door.But he rried,he said."Prior to my beingelectedDean I wasteachingstrategyformulationand implementation,and even in my consultancies I encouraged my clientsto do rwo rhings:to be mission,driven, and to bc an empoweredand change-friendly organization.So when I becameDean I dccided to walk the talk. lVe now havea flat organizationwhere I servetwenry-fivepeople

"\X/hether you'rethejanitor or thepresidentof thecompany, " lou can makea dffirence in )/oar own Lua!.

louethisfacuby,I louethestaffand thestudents. ThesupportI receiued from themwasliterally Awesome."

direcdy.V/hile implementing this I realizedwhy most organizations,eventhough they know its importance, didn't do it. It's so difficult. You need to be talking to everyoneconstantly.But therewasno choice,for the complexity and diversityof AIM's portfolio of activitiesdemandeddecentralizedSBUs and support units." "bad And he hasdone it. Not painlessly,ofcourse. He hasplayed cop" when "ofstudents, needed,clearingobstaclesin the way stafl or faculty achievingexcellencein whateverit is thefre striving for." Ifanything, the entire exercisehas deepenedhis patienceand strengthenedhis faith. Prayer,Jesssays,hasalsoworked miracles. "But...weve

done it-AIM is an einpoweredorganizationand agileorgani"I zation," he says. hardly make decisionsanymore.A number ofthe Institute's major projectswereinitiated, implemented, maintained and improved on by the faculry and staff. I wasjust there for show; they made me look good. I love this faculry I love the staffand the students.The support I receivedfrom them was literally awesome." "Empowerment"

is widely known in the Institute asJesstengineof improvement. He is a true promoter of self-actualizationas the foundation of a creative "\Thether youte thejanitor or the presidentofthe company,you organization. can make a differencein your own way. You are in a position to do your work much better than anyone else.And once you makâ&#x201A;Ź people believethat they can make a difference,and that they indeed know bestthe right way ofdoing it, they will do it the right way." \X/hileJes looks forward to spendingmore time with his family (beingDean required his presenceeveryday in the Institute) and more time in the classroom teaching,his commitment to the Institute isnt co-terminuswith his office.There's "should more to do, but what his administration hasbegun, he says, give a good enough running stan for the next administration." Something about Jess'stranscendentvision of the Institute that choosesto honor changeand potential recallsDarwin's finale in his revolutionarybook, the No ringing endorsementshere of the human intelligence'sinOrigin of Species. "There is grandeurin evitableupward march to somepreordainedapex.Rather: this view oflife. Whilst this planet hasgone cycling on to the fixed law ofgravity, from so simple a beginning endlessforms...most wonderful havebeen, and are being, evolved." t - J.deJesus

A Constant Need to Reinvent the \7heel

AIM's outgoingPresidentreflectson theInstitutei constanttransformation, asit responds to the changingneedsof business and gouernment.

he greatthing aboutAIM is that it hasreinventeditself time and again,"saysFil Alfonso.And if theret anyone who cansaythat,itt Fil,who participared in thedevelopment of the MM and MDM programs,and presidedover rhe Institute when the Asian Center for Entrepreneurship,\M Sycip Policy Centet and the ExecutiveMBA were launched. Now fittingly, the Institutet ourgoing Presidentwill lead the thrust in anothernew field with the launch the Center for CoroorareSocialResponsibiliry. "The

idea croppedup becauseof the changingsocialconrract among the different major institutions in sociery,"saysFil.

"Business is no longer just purely business,governmentis nor iust pure government, and schoolsarenot just purely schools.The Asian crisishighlighted this all the more. Peoplebeganto clamor for more transparencyin the way rhings are being done by the corporations. I thought it would be appropriate to set up a centerfor Corporate SocialResponsibiliryand researchwhat is happeningwithin the Asian context on a number of relatedissues."

Fil Alfonso: A Constant Need to Reinvent the ri(/heel AIM's outgoing President reflectson the Institute'sconstant transformation, as it respondsto the changing needsof businessand government. '\i7ith

the new Center and its relevancebeyond the businesssectot Fil completes the circle back to his involvement with what was then called the Rural DevelopmentManagementProgram.This happenedat a time when AIM, which until then had beenlargelya clone ofthe Harvard BusinessSchool,beganasking itselfhow it could becometruly relevantto the developingregion it served.The faculty realizedthat unlessAIM startedlooking at the rural sector,it would be less than relevantbecausethat'swhere the majority of the regiont peoplewere. "I Fil says, was fortunate to head a group of faculry members that started doing researchon rural developmentmanagemâ&#x201A;Źnt.Ve dropped the word.Rural so it becameDevelopment Management,and we have now a whole wing of the Institute devotedto it." The new Center tackled the issuesof managementoutside of the business sector- in the development,NGO, and governmentsectors.Someof the faculry membersalso taught in the businessmanagementprograms,so that the new professorshired for the Mastersin Development Management Program becameexposedto the businesssector,creatinga cross-poflinationbetweenrhe businessand developmentsectorswithin the Institute. By moving into the deyelopmentsectot AIM was no longer just a businessschool,but a managementinstitution, dealing with many different contextsof management. Eagerto move into new fields. Fil, along wirh senior membersof the faculry startedre-emphasizingthe regionalperspectiveofthe Instirute. Thatt when AIM enteredinto parrnershipsfor the ManagementAwards.Todaytheret a much greater thrust towardshaving much more regionalcontext in the different programs,to addressrhe challenges of globalization.

By moving into the development sector,AIM was no longer

just a businessschool,but a managementinstitution, dealing with many different contexts of management

If you believethat you needro work with the communiw ' whereyou operate,do it. Servethe community and the communify will respondto your business r

At the sametime, the Institute also respondedto the renegotiationof the rolesof the different major institutions in sociery Businesspeople realizedthey neededto become involved in policy dialogues. "This

wasquite different from the time the Institute wasfounded, when we had a relativelystableenvironment, and poliry issueswere rather stable," Fil recalls."Back then, CEOs concentratedon making suretheir firms wereprofitable. But now a CEO has to becomeinvolved with policy issuesbecauseof the fast changesthat are taking place." AiM askeditself what role it could play in this policy dialogue.The answerwas the \Yl SyCip Poliry Center. AIM reniventeditselfonce again, and becamea forum where many different stakeholdersdiscussedpolicy issuesin different industries,from energyto housing to a whole serieson competitivenessofcertain industries. The final eventsduring Filt presidencywere rhe development of the Entrepreneurship Programand the birth of the ExecutiveMBA. Reflectingon this productive decade,Fil says,"I'm glad that a lot of thesetransformations took placeduring my watch asAIM President." He's not one who keepshis eye on the rearviewmirror, though, and he instantly shifts back to talking about his new projects,especiallythe Center for Corporate Social ResponsibiliryHe would like to seebusinesses considersocialresponsibilirynot as an additional activiry but part of their mainsrreamthinking. "It is one thing to say you have a program for corporatesocialresponsibility.What is more importanr is ro seeit integratedinto the strategicthrust ofyour own business." So, what, you say,is in it for you asan entrepreneuror corporatemanager? "rVhat

drives this are the personalbeliefsof managersand owners.Ifyou believe that you need to work with the community where you operare,do it. Serverhe community and the community will respond to your business.You have to build these linkages." Fil, who hasalwaysbeenactivein communicating with rhe alumni, leaveshis best "'ff4rat messagefor last: I would like ro say ro the alumni is thar there is a mutual dependenrybetweenthe Institute and its alumni. As its alumni becomemore successfuI, AIM becomesan evenmore important institution. fu the Institute becomesmore important, the alumni alsoprofit from it. Theret a symbiotic relationship,and I hope they continue to suppoft the Insdtute in its activities."t -Jet Magsaysay

QuintinG.Tan

"I'Will RemainTrue"

that while he hasmoretime in his hands, AIM's frx oficial retireediscouers he'sneuerbeenbusierpursuingthedreamstheInstituteinspired

"QT" by every sk Prof. Quintin G. Tan, fondly called o n e i n t h e I n s t i t u t e i t o s u m m a r i z eh i s 3 0 - o d d y e a r s i n "Collecting and sorting AIM in an action and he laughsinstantly:

"l PaPers!"He turns seriousjust asquickly and says, expectto do more ofthat in my retirement."

"busy and Retirehe did in August 1999 and he swearshet neverbeenmore on the road." The spry mainstayoF the ExecutiveEducation and Entrepreneurship programs, who goesdown in AIM history as the Institute's first retiree, hasa number of things he wants to accomplishespeciallynow that he has more time in his hands. and user-friendlybook on entreFirst, he wants to write a comprehensive preneurship,the material for which is containedin his vast collection of regain searchpapers.Second,he wants to help small and medium enterPrises accessto financial and management assistanceenough to make a real difference, and to seeequity funds made availableto them.

;J This dream is close to QT's heart becausehe believesthat small and medium industries that are technology-basedhold the key to creatinga successful global environment.Only suchfirms, QT insists, havethe capabiliryto customizeproduc$, the lafter being the imperativeofglobalization.Third, he says: "I want to feed my soul." This meanssortiesto the haunts of his fiery youth - the boolstores, coffee shopsand restaurantsin old Manila, where he nurtured life-altering friendshipsand alliances.

"Entrepinoy," III's a movement for and in behaifof the growing entrepreneursin Cebu. Teaching ReaI Entrepreneurship

QT believesentrepreneurshipis not just about putting up a business.It's all about new products and new ways of doing things. "Businessescan succeed without necessarilybeing entrepreneurial,"he notes. And corporations,if they want to stay aheadof the competition, have much to gain by thinking "Entrepinoy'' "entrepreneurially." "reaching A Push for the The key, then, lies in entrepreneurshiptruthfully and meaningfully,"withQT has carried on a lifelong involvement with out losing sighr of the mother ofthe entrepreneurial "SME small and medium enterprises. arehis middle mind-set: extremeneed. "Problem initials," remarksan Institute old-timer. From 1980 solving has proved to be the first step to 1985 QT interrupted his teachingatAIM to serve in many a business'sopportunity building," QT obasDirector of the Bureauof Small and Medium In- servessageiy. dustriesof the former Ministry ofTiade and Industry where he helped establishpoliciesand straregies A mechanicalengineerand an MBA graduateof for the developmentof SMIs in the Philippines. It the Universiry of the Philippines, QT takespride in wasduring his rerm thar the third SMI Vorld Bank having helped establishand managerhe first metal Loan and the Small and Medium EnteroriseDevel- impact extrusionplant in the Philippines,for the San opmenr Projecr,funded by rhe USAIb were ap- Miguel Corporation. Yes,he says,thatt an argument proved and implemented. for technolog;r- creatingrhe need for a highly specializedproduct - that enterprises,big, small or meIt wasalsoon his watch when regionalnetwork- dium ought to pursue to its lucrativeand life-changing projectsand conferencesweregivena boost.No- ing conclusion. table of these were the Subcontracting Exchange "From (SUBCONEX) and rhe cooperationprojectsbetween the start, AIM has helped entrepreneurthe Cebu and Cagayande Oro Chambersof Com- ship in its different programs,"saysQT, who founded merce and the Handwerkskammer,Kasselof Ger- the AIM Alumni EntrepreneursClub yearsago and "The many. continues to serve as senior consultant. reeimen offieldwork hashelpedstudentsdeuelopenrieOver cofFeeabout a month after his retirement, preneurial skills and a sink-or-swim mindset. Pres"In the 1980s,all ofthe industriesthat sirrealmost alwaysbrings out the entrepreneurin all QT confided: seemedto enjoy government support were on the of us." low-tech end. Things haven'tchangedsubstantially since.There has been a real failure in government Meanwhile, QT is on a virtual road tour to fulfill policy making, in that there has been no real and his variouscommitments to entrepreneurshipand to sustainedsupport for technology in all this. That's small and medium enterprises.His farewell message why my heart bleeds. rl,(4-rythe oversight, when we to the AIM faculty and staffindicates,however,that need technologyin all aspectsofour life?" he and the Institute are far from parted: Among other things, QT has organizeda foundation to provide expert financial and technicaladvice to small and medium enterprises."We haveno "but clients yet," QT smiles, I believethis is a good start." He is alsosolidly behind Rep. SergioOsmena

"tVhen

I leave- I leavethe caseroomand the teaching function - but not the things that AIM stood for. I considermyself an AIM faculry evenin retirement and will remain true to all that AIM is about." I -l dcJesus

TheMultidimensional CEO TheAsianManager,

By Prof. Fil Alfonso

c . tggg Itt the end ofa decadewherc Asian economiesreachedboth their zenith and nadir, and consequenrlythe confidenceand pridc of Asian managersreachedtheir highest and lowestpoints. Itt the end of three decades that saw the emergenceof an Asian managementand leadership sryle, and of Asian organizations infused with Asian values. It's a marking of a milestone: the continuingriseofa classof managersand leaders,schooledin the AIM tradition to be professional,entrepreneurial,and sociallyresponsible. lVho, then, is the Asian manager,ca. 1999? 'What

do Asian managersleave behind and look lorward to? What are their philosophicalviewpoints How and emotional perspectives? continuously educated will they be and trained?How will they manageand lead? TheAsian Manager invired some faculty membersto shed light on thesequestions...

he manager of the 1990s was caught up in social issues. In the Philippines this was the post-EDSA era, and around the world similar revolutionshad taken place.Becauseof these, socialissuesbecamemuch more pronounced.Managersweremoving from looking at issuesthat werecorporatein nature to thosethat were more social,and trying to seehow the two were related.The manager ceasedto be purely a businessperson.He or she realizedthat there were many more situationswhere professionalmanagementwas neeoeo. Then, Asian managersmoved toward having a regiona.lperspective. They beganto look at competition on not just a nadonal basis, but from where the forcesof globalizationand liberalization became more intense.At the same time, managersstarted to consider how they could better servethe individual countries in which they oper"thinking ated. The idea of global, acting local" caught on. These changesthrew Asian managersinto an arenathat was completely unknown to them-the policy formulation process.They realizedthat they had to be involved in the policy-making process,or else their interestswould not be taken into accounr. Today I would saythat the Asian CEO spendsup to 30 percentof his or her time dealingwith poliry issuesand being where the policymaking processtakesplace,making sure that his or her organization's interestsare being considered.And it's not just a ceremonialrole, but one where their organizationsdemonstratetheir socialresponsibiliry. On top ofthat, the unique challengeto Asian managersis that they are subject to constraintsmanagersin the more developedcountries do nor face.For example,when a CEO in the United Statesneedsto make his or her company leaderand has the option ofclosing a few plants and laying offa couple rhousandworkers, he or she can more easilytake rhat option. The socieryhas its own way ofsoftening the impact, through mechanismslike retraining programsand unemployment insurance.In the developingeconomiesofAsia, we do not have thesesaferynets,so managershaveto becomemuch more creative,ln most caseswhile continuing to employ more people than they can, becauseof the socialobligations their companieshave. All thesechallengeshave spurred the development of the Asran managerfrom a one-dimensionalindividual solelyconcernedwith increasingthe viabiliry ofhis or her firm to a leadercapableof performine in all theseother new dimensrons.

Think? CanAsianManagers By Prof. konardo Silos

try

he question is not Vho is the Asian Manager?This can be answeredby pointing to a managerwho is in Asia or comesfrom Asia or is a citizen of an Asian counIt leavesunansweredthe real intent of the quesdon: rX/hatis the Asianmanager?

The question might neverhad been askedif somewiseacrehad not claimed that 'twain West wasVest and the Eastwas Eastand ne'er rhe the would meet.The latest "Asians version of the claim is that cant think," as ^ rccent Time essayasserted:If Asianscould think, why are there so few Asianswinning the Nobel Prize? Happily, there is a book on the very qu estion: Vhat Is Thinhing?(lVasheisxDenhen) It claims that scientificand technicalrhinking (the kind that Asianscannot do) is too one-sidedto be called thinking; that Western unthinking should be submitted for destruction;that this destruction aims ar openingir up ro quesrionsbeyond the ken of scienceand technology. By studying not sciencebut scientistsdoing science,Thomas S. Kuhn came ro understandsciencenot as a textbook ofaccepted theoriesbut asa human enterprise. So it was that he came face to face with the facr of community.On this showing, a human scienceis not like studying physicsso much asit is like studying physicists.k is aboutpeople. Besidesthinking, then, there is directingthinl<tng.No country thinks or actsasif its concernswere purely economic, in the samemanner that managershavelearned that no man is purely rational-economrc. That is why, when asking about the Asian Manager the question often turns to Asian values.For, in the final analysis,it is valuesthat direct thinking. \*/hat, then, is the Asian manager? I think the Asian manageris the modernizing managerwho might stumble a lot in the process(who doubts his thinking will catch up soon enough?)but who still believesin the old tradition of communiry; who thinla that studying the starsis not quite like studying human beings;that scienceis for man, not man for science;and rhar rhinking. therefore,needsdirecting. What zi an Asian manager?is a question that asksus to pauseand take stock, if only to let the smoke settleand get our bearing and be clear that this global causeis not merely trying to catch up with the Pied Piper. With a bow to Heidegger,the question suggestsnot to succumb to a forgetfirlnessofbeing.

TheAsianManager ls a Global Manager By Prof. Maria Milagros T. Garcia

WithHi-Tech Comes the Needfor HigherTouch Prof. Gaston D. Ortigas Jr.

echnology enables - and demands- greaterinreracrion." The Asian managers'immediate task is to update themselvesboth in the workplace and in a risk-freesetting, such as the classroomor the forum, in which they could shareideas with other managers,academics,and policy makers.Information technology provides the infrastructure through which managerscan do all ofthese things. Yet as managersstrive to be in runewirh theglobalbusiness environment, they discoverthat with highertech, comes the need to be even higher-touch. The Institute, for example, is wired, but its stakeholders arent completely wired to it. So we have begun experimentingwith distancelearningand virtual interacnon. This hasyielded an interesting insight: the more senior the managersthe grâ&#x201A;Źater the need for face-to-face interaction.

he fuian manage r is a truly glohal who I leader has learnedro adapr to the incrediblechangesin the Asran region and around the world. The Asian manager is well equipped to lead into the future, as he or she is able to inspire the global worker and to view cultural challengesasseedsfor innovation and cultural excellence.

The Asian managerwould therefore benefit from a flexible and ongoing education that dealswith current issues,sharpensskills and helps develop structuresthat are immediately applicable to the workpiace. More important, Asian managersare alsoglobal managers. Today the managercan no longer be circumscribed by cultural boundaries-precisely why the Asian managermust be a global manageraboveall else.

Continuing Education As a Management Principle By Prof. Rogelio. R. Reyes

he Asian manageris easierto describe than to define. Even when he or she deploysWesternmanagementtheoriâ&#x201A;Źsand thus developedin the contexr ofwestern cultural values-the Asian manager has adapted these to the demands of his or her setting.Multinational companieshavein fact accommodatedAsian cultural valuesas part ofthe businessenvironment for management in Asia. In a sensethe Asian managerhaslearned managementby doing, having had linle formal training. Nothing wrong wirh trial and error, except it's not the most efficient process.Tiue, we learn more from our mistakes, but it is far more efficient to learn from the thingswe do (or practice)basedon the knowledgewe alreadyhave.Asia took a while to accept that managementis a prolessionin itself that required some formal training, whether degreeor nondegree.

There is a real need to combine exposure to cutting-edgemanagemâ&#x201A;Źnr theories and actual experience,which the casemerhod approximatesin that it exposesthe student to a broad variery of managementsituarionsthat can only be acquiredover a long time in the real world. But this knowledgedoesnot necessarilylead to wisdom (or the effective useofknowledge) unril this knowledge is tried in actualmanagementsituauons. It would thus be correct to use both methodsand allow for rhe acquisirion of wisdom evenin limited management situations.Or shortenthe rycle time for p i c k i n g u p k n o w l e d g ea n d a c q u i r i n g wisdom or learning by doing what has been acquiredasknowledge.The Master in Entrepreneurshipand the Executive MBA are examplesof that step in the right direction. A variation of this d e s i g nc o u l d b e d o n e o n t h e M M , MBM and MDM, with a view to rntersperseactualmanagerialwork with academic experience. Now this might be worth a trythe corporateuniversiry.A largecorporation could set up a management schoolfor its employeesor set up an alliancewith a university or a similar institute and work out a training (maybe evendegree)program. Now that we're in the threshold of a new centurywe should be willing ro acceptcontinuing educationas a managementprinciple, no matter rhe source ofknowledge. That meanswe must acknowledgethat we arelinked in a worldwidc system,which then becomesour sourceofnew knowledge. r

Adept,YetStillTrulyAsian Cross-culturally By Prof. Horacio BorromeoJr.

he Asian manaser must exhibit sheer competencein doing businessinternationally. He or she must know the markets and regulations,opponunities and tradeagreements.In fact that hasbeenthe expectationsince,say,15 years "Cross-cultural ago, and will be for the next 15. would alsobe a more promisingprism adeptness" "cross-cultural than management," given the constant mutual adaptation among cultures that dealwith one another. "Asian' Besides,to fix or ASEAN on point of ethnicity can strain some commonly held notions. For example,I was in a conferencein Australia in 1982, togetherwith otherASEAN delegares. Ar the time there was this burgeoning consciousnessof ASEAN vs. the rest-at leastamong the Ausrralian hosts.Those of us from ASEAN of courseshared some cultural affiniry each of us having traveled extensivelywithin the region,in fact enoughso that we had a working grasp of the region! languages. But we were certainly not consciousof belonging to or forming an ASEAN bloc, and as such would think the samethoughts or speakas one. And yet, we found ourselvesreactingto this subtle pressure "be to ASEAN" by actually closing ranla! 'Asian So, does the term manager"refer to ethnic origin or geographiclocation? I think rhe "both," answeris although I suspectthere is a third meaning, with which our alumni feel a strong "an affiniry and that is AIM graduate." We have tried over the years,consciouslyor unconsciously, to ingrain in our (degree)students'minds the idea "Asianthat we arean Asianschoolcommitted to the ness"of Asian management.I suspectdrat when our students leaveus, they do so with the feeling that, during the time they were with us, they have becomi truly Asian managers.

No Dichotomies Prof. Rene T. Domingo

heAsianmanagerhasbecomemoreglobaland, perhaps,IessAsian-not by intent or design 'Asian" but by necessiry.Being has become more a context than a particular managementsryle. The breaking down of national and industry boundaries,the opening up ofworld economies,the rapid diffusion and siandardizationof management know-how and education through information technology will eventually render any parochialism in managementthought and pracriceuntenableand noncompetitive. Thesedevelopmentshavedemanded(or caused) changesin the way the Asian manager is being educated,such that he or shenow learnshow to adopt global management practices in the Asian setting, rather than how to Asianizror adapt these.This kind of rrainingwill ensurethe Asian'managerisurvival and effective managementin any sening, Asian or not.

The managertoday hasto think and act globally, no dichotomies.Presentlytherewill no longerbe local competition in a local environment. As the market increasinglybecomesfree for all global playersthe manager who acts locally will be seriously handicapped.

AreResponsible Students Forthe Learning Process By Prof.GabinoA. Mendoza

xcellencein teachingbeginswith the realizationthat it is not teachingbut learningthat is important. From time immemorial, the processof education has alwaysbeen teacher-centered. The focus has unrelentingly been on teachers' qualificationsi on the knowledge, skills, and values that teachersseekto impart to their students;on the curriculum that eachers cobble together and, thereafter,religiously folIow; on rhe text books that teachersprescribe;on the lesson plans that teachersprepare;on the methods that teachersuse to enliventheir classes and to keeptheir studentsinterested; on rhedisciplinethat teachers imposeon their students.Teachjudge ers how well their students have done by giving them testsin which the studentsmust prove to the reachers'satisfaction that they havelearnedwhat the teacherswanted them to learn. Academic administratorsjudge how good teachersare "covered on the basisof how faithfully they have their material."

How musttheAsianmanagerbeeducated? Tbanswerthisquestion, GabinoA. Mendoza,K.T Li Professor of InterxationaI MaTugcmant euobedprinciplet of lemning that are as uniuersdland timeLess asmanagement itse(.' \Y/hathe describes hereis the essence ofuhat 1ou learnedJion AIM.

"What Seldomis the questionasked, and how much has "lf the studentlearned?"Of course,we sometimesquip, the studenthasnor learned,rhe reacherhasnor raught."This is a stepin the right directionbut it is, ar best,a half-step.It does not go far enough.It still concentratesattention on the teacher. It is time we teachersacceptthe realiry that although we may teachaseruditely aswe know how and as skillfully aswe can, "speak we may even with the tongues of angels,"bur if our studentsdo not learn,educationhasnot takenplace.Basically, fundamentally, at root, educationis an activitythat shouldbe concernednot so much with teachersteachingbut with stud e n t sl e a r n i n s .

: I

It is time we put studentswherethey rightfullybelong;at the center of education.Teachersare not so much sourcesof wisdom,dispensers of knowledge,and transmimers of culture, managers learning responsibility is stubut ofthe process. Our dent learningand not merelyrhe teachingofsubjects.\7e can bestprepareour studentsfor life by helpingthem developthe basicintellcctualand interpersonal skillsrequiredto continue

learning,to understandand absorbnew information, to processthese into usable knowledge,and to employ the insightsthey arrive at in making balanceddecisionsand carrying out effective action. \7e should dedicateourselvesmore to helping our studentsto grow ascompetent,responsiblehuman beingsthan to the pursuit ofour own academicinterests.

upgrade the manner in which we conduct our classes.

In our classrooms,our primary function is to createan environment that will encourageour students to think boldly, to talk freely,and to act judiciously. We must pique their curiosity. Quicken their memory. Provoketheir imagination. Challenge their reason.Prick their pride. Build Learningis bestattainedwhen students up their selfrespect.Make availableto them actively participate in the opporruniriesro exerciseinil e a r n i n g p r o c e s sa n d a r e tiative in classand out. Give principallyresponsible them room to grow. Chances for its As managersof the success.Excellencecomes to make mistakes.Ultimately, from rigorous and repeated the responsibility to shape learningprocess,it is exercisein thinking, feeling, their own development. deciding, and doing signifiour task to choosethe cant things. We should Most important, we should meet with our fellow thereforedemand from our modesof learning, studentshard work and teachers,regularlyand often, specifr the teaching dedication to their studies to review, critique, agonize and requirethat they stretch over or celebratethe progress materials,guide the "plot" ofeach ofour students; their talents and abilities, with one anotherhow bestwe exert their bodies, minds, manner in which the may motivate and inspire evand wills to the utmost. "to studentsrelateto and ery individual be rhe best As managers of the that he can be." learn from us and from learning process,it is our task to choosethe modesof In short, we should manone another learning, speci$' the teachage all the elementsof the learningprocesssuchasto eni n g m a t er i a l s , g u i d e t h e manner in which the stusureour students'greatestpossiblegrowth asempoweredthinkers and redents relateto and learn from us and from sponsibledoers. one another. Beyond these,however,we should listen to our students.Find outwhat their view of the world is and how this affects their learning. Determine what their learning needsare, what problems they encounter, what opportunitiesthey seekto exploit. Discoverhow they bestcan learn and how they can retain and truly own what they have learned.Reacdngto cuesfrom our students, and learning from them, will enableus to continually renew our programs and our courses,updatethe materialthat we use,and

Finally, we must be single-minded,relentless,ruthlesswith ourselvesin the pursuit ofour ultimate ob.jective: studentlearning . We must never allow the meagerness ofour resources to retardour consrantsrnving for excellencein our craft as managers of the learning processnor to slackenour continuous seekingof excellencefrom our students.The greatesttestofand the crown to our success should be the fact that by the dme our studentsgraduate,they no longer need us. t

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\[hat'sIn It ForMe? By Bill French

joins an MBM fresbmanclass An entrEreneur and discouerswhat lou really harn at AIM

ho wantsto openthe case?"asla Prof.RichardCruz, It's a quesrionMBM 1999-2000 studentswill hear hundredsof times over the nexr two years.Here, iri the first month of their first year,somewould haveheard it often enough to be readywith an answer. Half of the caseroomt occupants snap their notebook PCs open and shoot their hands up in the air, elbowing to be first to recite.A femalestudent gets picked and she opens the casewith an earnestsummary the plot, the main characters, thâ&#x201A;Ź main issues.The goal of the caseis simple enough:to determinethe break-evenpoint at which a manufacturing company'ssalesmarch irs costs, V/hat makesit tricky is that the protagonists,who come from different departments,have their own interests. The volunteer,let'scallher Ann, dutifully outlines thesefor her classmates. Simple and straightforward srory-relling.no numbersor equarions. Ann breezesthrough it with evident confidence. V4rensheisdone,rwo *rinJsof*re das bgin to prompdy

slide down their seats,like protruding objectsin a storm being retractedso asnot to attract lightning. Ann herself thinks her job is done. But the teacherdoes not - will not - cut eye contact and follows it up with the first technical question "Vhat of the day. werethe assumptionsimplicit in the analyst's mistaken equation of the company's current profit projections?" Itt the sort of question that strikesfear in the heart of any MBA freshman.Assumptions?Equation? Profit projection?Mistaken? Such details need a strong grasp of the underlying numbers, and how they relatewith eachother. This, after all, is FinancialAccounting 1. Ann hesitates, tries to ta.[k her way out of it, and stumbles. Hands go up all around her as classmatesfind an opening to get involved.The profes' sor, however,is not letting go. He hones in on his prey, asking for more details. Ann sinks deeper into her seat,her perplexiry and embarrassmentgrowing by the second. I shrink in my seat,feeling very small for her. Itt worse than awkward. Back in collegewhen you didnt know the answeryou just didn't bother.And sometimesyou just didnt bother evenifyou knew becauseyou were learning how to talk your way out ofa bind. 'Well, maybein a managementschoolyou tried your bestto manage.Ann did, in groping mumbles and unarticulated criesfor help from seatmateswho are obviously bound by rulesnot to treat her like a child. Finally, Prof, Cruz lets her go and movesaround the class. 'Welcome to MBM boot camp, more formally known asAIM's iersion of the MBA program. On a lark, I had decidedto sit in - just to havean ideaofwhat peopleget in exchangefor the kind of money I, a budding entrepreneur,already consider as start-up capital. Somewherein the vicinity of severalthousand U.S. dollars. As some-

one who has put up his own business,I think I have learned a simple lesson,which I can only describethis way: Businessis all about people.The product or serviceis just the processby which you demonstratejust how good or bad you are with people. And money is just one of the consequences, You can make a businessout ofany'thing. But will you succeed?$?here does hard work fit in? And perswerance?And cunning? And debts?I may not yet be a success story but I'm excitedabout it. After five years ofhard work, I still wake up with an urgent need to deliver what clients order. To a fellow businessperson it must be obvious thar what I'm experiencingis growingpains. To a managementBrahmin it must be obvious that whatever rudimenary techniquesI use are no longer adequate.I know what that homegrown "gut principle called instinct" meansand I often ffust it, but itt not much help in explaining why double entry book keepingis crucial. Well, then, FinancialAccounting 1. How do I fare?\7ell, much worse than the brave lady who opened the casedid. Short ofducking under the desk to avoid being called on, I feel like a total 'Accounting moron. And now I also know why ' for Non-Accountants was in the bargain bin when I picked'it up - it's got ever)'thing about Accounting except what you need to know to do well in an AIM class.Still, I thought I was prepared becauseI had read the casethe day before and had brushedup on the finer points ofaccounting fixed costsand variable costsand margins ofsafety and percentagecontribution and enoughofother conceptsso I wouldnt get lost in the shuffle. Shuffle? Skirmishis more like ir. The remaining third of the class,poised to satis& the teachert unmet challengeto Ann, are obviously armed to the teeth with numbers and prepared to use them as weurponsagainst each other. Discovery number one: casesummary is the easiestpart ofthe session,and ifyou weregood in public speakingbut not in numbers,this wasyour

spot.You grabbedit now becausetheremay not be another non-numerical question againJater.

he has a good stan toward mastering the politics of tne caseroom.

I wouldnt have delivered a summary as bright and eagerasAnnt. Did sheput all her effort in one areaof the case?And what does it mean that a student almost half my age was better than I was at public speaking?ttr7illmy businessstagnate?I want ro go nome,

Case conclusions?Prof ABC doesn'toffer any. "There Instead,he says, is no single solution to this case.How you resolveit will depend on the relative importance to you of the consequences."

Further, it dependswhat the boardt priorities were, and I supposethat in big business,a leadershepBut the notebookbrigade,it seems,is not ready herdsthe flock, but somesort ofdemocracy doesget to call it quits yet. The pushing ofnumbers begins practiced,real or put-on. In this particular problem in earnest,punctuated by the sliding ofthe black- on this particular &y, the potential leader in each of boards and the screechof chalk. the student waschallenged:ifyou werethe chairman of the board, what would have been your prioriry "-i(4-rat Prof ABC again: level of operations given the &.cts and all the right formulas? must be achieyedto meet both dividends and expected union requirements?" More tapping on The sessionendswith a buzz among the differnotebools. â&#x201A;Źnt factions favoring this or that camp. The process of integration continuesoutside the classroom. "Can the break-evenanalysishelp the company decide whether to alter the existing product emSo, if there was no clear-cut answer to the case, phasis?"More sliding of blackboardsand screech- what was there to learn?Certainly therewere all the ing of chalk. formulas, along with a dozen new terms of which I, and I'm sure the members of the class,now had a At first it's apparent that the Indians are the better grasp. dominant number crunchers,but as the caseunravelsdown to the finer points, it becomesclearer But toward what resolution?Perhaos.asa senior that the kind ofsolution proposedby a particular member of the faculry told me, "Managemenr is 85 student is influenced to a largeextent by his or her percerit performance."Did that mean that, like the bqckground. The engineers-Indians, Chinese, star of the classshowed, itt all about communicaMalaysians,Filipinos- dominate questionsregard- tion? Leadership?Politics,even? ing production machinesand mainrenancecosrs and how they affect the big profit margin picture. As for me, I've come away more excited about peopleand what they can think ofgiven a reasonable The social sciencepractitioners,who also cut challengeand a reasonableopportuniry to meet them. accrossregionaldivides,are more reliableon labor Nothing new, ofcourse, but now my excitement about issuesand how that spills over to rhe profitability my own businesshas been colored by an hour and a equation.The governmentemployeeskeeptabson half of witnessingthe possibility that growing pains legalities,tax shelters,and just about everyareaof have a cure, and that you can do it alone or with the businessin which you dont want them snoop- other, like-minded people, which is what it's all about irg. to begin with. But best of all, the latter is more fun than slugging through the process on your old One of the engineersseemsto be able to inte- boring self. grate these different points of view in a \,t/aythat has a number ofheads nodding in agreement.But And hen all this from an hour and a half of does he have the risht answer?-i(/hat is clear is that sitting through FinancialAccounting? r

t979

Twenty Years of

No one knew what to expect. There was no flow of discussion. trgets camefrom left to righr. It's like freshmancollegeagain,only faster, "grownup" more formal, more and with more edge to it. We were no longerteenagers, but werealso.justinro our first month.

Everyonecan recall the first day. The drama could be ofa hundred versions. But the initial trepidation wasgone after the Burred Panels,MBM '79s baptism of fire. The succeedingdays have been relegatedby now to amnesia,as the regular dosageof caseskept us all stuck-up to our Mofire chairs most of the day. Every nook of AIM then became a setting in molding the MBM. In this institution, everyplacewasa placeo[work - the caserooms,the library, sunkengarden,the dorm, roof decks,cafetorium,swimmingpool. But for '79s, the hub of all experienceswas - CASEROOM 1, then later the MBM on CASEROOM 2. One could hardlyfathom the individualtriumphs,the frustrations,the vindications,the disillusionrnents,the discoveriesand turning points that unfolded in theserooms. Casesare neverjust a part of life in AIM. They form the very life - as they have alwaysbeen. Funny how evenwith the simplestproblems, there cameasmany solutions as there are number ofheads. It is, in fact, the very essenceof the casemethod that different background and perspecrivesare brought out in the final solution ofthe problem in point. It was perhaps,in '79s wherethe greateststrengthwas.In simulating the diversityof the MBM the real world ofbusiness,the casemethod was an invaluabletool. At last, eachone developedhis own way ofapproaching eachcase- the front-doot the back-door, the over-kill, etc. The beaury of it was that there were no "it rea y right solutions.It was alwaysa matter of depends".

"Great

ideaspersist \(/e bequeath them to the that as they tested they will hold Technologiesmay alter the but in another it will still be true that

unril ir

MBM )4

Yearbook

through generations. next with the knowledge true in the past, true in the future. appearanceof learning itself, rwenty years, nothing is really learned is applied."

"Characters"

soon cameout oftheir shellsand developedtheir own stylein contributing to the discussionand learning.BUT! for most MBM studentsnow, learning doesnot anymore come from jusr the caseroom. Crucial learningson human behaviorand peoplemanagementarealready happening in the srudent organizarions (like AIM Perspectiuesl Management,ofcourse, cannot be fully learnedin rhe classroom;it can be bestlearnedin conjunction with real world activities,in dealingwith realpeople.Managemenris not just about managinginformation;more important,itt about management ofpeople. Parties,gimmicks, bar-hopping, "guarxi"-ing were all part of the MBM nerworking experience.The occasional"concerts"are always welcome,wherethe musicallyinclined belt out their frustrationsand those who cant sing dance to rhe beat of the unbeatable.These tie the loose endsand allow eachstudent to be himself/herselfwithout the pressures of academics.Also, they hre tools to keep one'ssaniry inract.

{i:

It was an experienceoflearning, and learning fast. \W4rethertackling unfamiliar subjectsor having to reasonin unfamiliar terms, in spending long hourswith readingmaterials,calculators,plus the never-endingpressure ofparticipation. Somecall it contribution. It did not matrer.It wasalwaysa agony. daily burden, sometimesweekly,evena once-in-a-semester

'79

The caseroomsservedasvenuesfor the "rnoment oftrutli' for most, if not all, of us. Anyplace would do ro prepare. Hot and humid in day time, the tablesaround the sunken gardenservedasbackstagefor breaks berweencaseroombattles,roundtableforum for the lastten minutesbefore the next one beginsand, at night, a commune for the day'sbattlc-weary the idle chatter of rhosepreparing for the day after and those endlessly batding rhe mosquitoes.

BOOTCAMP

'79 was a tall order, indeed. One that cannot be filled without MBM some strain, some real sacrifice.The environment was often extremelyfastpaced.The feeling could havebeenlike learning in a pressurecooker.fhus, the necessityof some discontinuity of sorts. The beer pubs, sing-alongs, excufslons.

MBM was not only an intense individual experience,it was a group experienceaswell. There was the interactivespirit that fosteredfriendships or bred competition. For many, the MBM experiencewas not just two years out ofour lives.They weretwo yearsthat could very well change the restof our lives.They openeda new chapter- of providingand vindicating.For ofhigh, his responsibilities theAIM graduateknowsthat peoples'â&#x201A;Źxpectations will be great. He hasto prove that he is reallyworthy of carrying the AIM's name.And with it, the honor and the tradition.

t999

The best contributions ofAIM to most ofus are the experienceof 1) Continously learning fast, 2) Dealing wirh real people from different cultures,3) Readjustingour priorities and managing-or more like budgeting-our .time, given our new outlook in life (granted we have one) and where our new set offriends fits into the picrure.

(MBM)19791999 rNBUSTNEiIANAGEMENT 20YEARS OFMASTEB Numberdf Graduates

2,159

% of Gradson Grants

30v.

Numberot Men

1,553

Age of YoungestGrad

Numberofwomen

606

Age ot Oldestcrad

Numberot Nationalities

40+

Largesl Age Group

30-35

Given the new technolog;r,the challengesof tough times and out there in the realworld and how we are arming ourselvesup intellecrually and professionallyto dealwith it all, the bottom line is still people.In the end it is still the effectivemanagementofpeople thar prevails.The value of MBM is only asgood asthe effort pur in by the individual student.As "garbage they say, in, garbageour." AIM providesrhe path. It is still up to the individual if he or she wants to be a poor-excuse-for-a-managâ&#x201A;Źr or a shining leader. Jun Juntilla, MBM 2000 Ediro r, AI M Persoectiues

ftIlrrhmkhrt;ilr How doesan entrePreneur Plal in thefast-foodgame,while iti a matterof continuoutb copinguith fast growth?For Ana Mar;a Thnchanco, innouating...andenrollingin AIMi netaMasterin EntrlPreneurthiP Program. By Jocelynde Jesus

turning pointsin their usuallyassociate ntrepreneurs with hard numbers- sales,profits,divibusinesses dends.For Ana Maria C. Tanchanco,it was potatoes.One hundred kilos in one day,to be precise. That's when the founder and presidenrof Thters SnackLeaguerealizedher businessconcepthad caught fire. She alsounderstoodthat sheneededhelp - help with operatingthe stores,help with planning, help with managingher fast-growing business,a businessthat had seeminglystartedby hitting a home run in its first turn at bat. A lot ofpeoplethink that Taters,the now-ubiquitousPopcorn consciousand nachostorethat haseateninto Filipino moviegoers' ness,is an all-Americanfranchise.But the only thing American about Tlters is its unrelievedbaseballmotif--the logo, the menu and the servicecre#s uniform screamhome runs.All elseis pluck and. asAnnie admits,a bit of luck. "fashion designer"who alsomanuThe gregarious Annie wasa facturedbagswhile keepingup with two growingsonssmittenwith junk food. The artist in her figured that quality shouldnt elude fries, popcorn and hotdogs. She went on to â&#x201A;ŹxPerimentwith inhealthierversionsof theseusingcanolaoil and cholesterol-free shelvesfor gredients.Shescouredsupermarketand specialry-store "healthy''friesand chips spices,powdersand condiments,ordered from friendsand relativesin the United States,andworkedon combinationsand variationsin her kitchen night and day.Sheloved "I "creative which reapedpiaises. startedthesourher experiments," creamflavorin Manila,"shebeams.The breakcamein 1994,when, in convincedby friendsand believers,shegot a theaterconcession Greenbelt.

And steppedonto a fast-moving treadmill. People couldn't haveenough ofher snacls. $(/ith five people manning the stall on a nearly 24-hour shift, and with neither office nor commissary Annie was soon forced to conscript her rennisrraineras additionalhelp when rhe flow of pa"I trons wouldn't stop. was designingthe businesswhile it wasoperational," saysAnnie, whosesenseofadventure and daring wouldnt haveallowed a more conservativetack anyway.Of courseit helpedthatAnnie'sfamily could be counted on to fill the parts ofthe burgeoningcorporation. Still, with her father,two sistersand a brother in the Board, a middlemanagemenrtier hasyet to be created. Like many entrepreneurs,Annie admitshaving playedan all-in-onerole. ShewasTaterspromotions and purchasing manager,R & D chief and publicist. She likes being in control, which showsin the way tters has developed "healthy" a strong identity as a food store associatedwith the wholesome massappealof baseball.

needed.But shewasin a realfirnk-"I felt I waslookine at a blank wall when I imaginedwhereTaters would go fr-om here," shesays-and realizedsheneededrealhelp in terms of business planning.Annie arrendedrhe ME oiienrarion in May 1999 in a last-ditch effort to be convinced. She enrolled despire her misgivings, telling herself that this could be the breaksheneededfrom beins on the frontlines for years.Also, the coursedesignwoulJnt tear her away from her business,headachesand all. She still eot a kick from improvising,which shefelt couldbesusrained, maybe even nurtured, while in AIM. The return on her educational investmenthas quickly materialized. "I haverealizedthe valueofdiscipline," Annie says,lessthan a ycar "Writing later. everl'thing down requiresdiscipline,and this coursehas forced me to do just that. Vhen everythin! is on paper one is forced to anallze.And when one anallzesthe fine print one gets a much stronger s e n s er h a t i r i s b i n d i n g ,r h a r i t ' s a commitment."

"will Her passionfor tennis,rather than The ME's design help baseball,didnt stop her from soaking somebody who really wants the up dl the baseballliterature she could help," she says,with rhe student beget her hands on. Painstakingresearch ing no lessfree to steerhis or her enis borne out by a menu named after Annieb baby: Tatershas grown terprise toward greater growth. She up baseballstadium staples(e.g., Battert adds that the courseis a good marOnion Hits, Crunch-BaggerChips, and Catcher Nachot riageofthe practicaland the academic,which helpsmoor Box, Fieldert Choice, Stuffed Home Plates),while product an unfetteredsoul such asherself. developmentgoeson with undiminished imagination. "Of courseI'm worse off in terms of time manageBy 1998 there were 115 employeesand 10 Taters ment," laughsAnnie, asshepreparedto launch ThtersStabranchesall over Manila and in the South (Cebu and dia, the dine-in (and biggest)versionofthe original while Bacolod).But expansionbluessoonhitThnchanco.The busi- fulfilling courserequirements.Shehasalsosincehired exnesswas growing way too fast for her own comfort, and it pert assistance, though she hasyet to delegatesome funcdidn't help that until then she'dtaken chargeof main operations sheconsiderscritical at this point. "The usualprobtions. Time for seriouspause,she figured, becauseshe was lems still crop up, and I'm still yearning for private time. burning out pretty fast. Shereacheda point when sheactu- But on the whole I am looking at *re developmentofsound ally wanted to sell her baby.The urge to put werything down expansionstrategiesthat will makeThtersmore widely availon paper - businessplans and strategies,long-term goals ablehereand abroad."To keepa businessirony from play- was overwhelming,becauseuntil then shed played it by ing itself out - "\?hat made Thters is actually limiting - she is rirorkine overtime to broaden fantastic ear, improvising, almost fearful that the moment it," she confesses "hea.lt-hy" sheactually mappedout her business's destiny all the mean- the Tatersimage ro include fine dining rarher ing and excitementwould end. than merely one of wholesome take-outs.A lot of hard work, she admits, but it kieps the temptation to sell out "I've The Last Temptation far at bay. sacrificeda lot for this business,"shesays, and shet determined to seeit through as far as it will go. One day Annie saw a newspaperad for a Master in And then what?Annie hesitates,then smiles:"You know, I Entrepreneurshipat AIM, clipped it, tucked it away some- havent gone to the United Statesin the last sevenyears." . where, and told herselfthat a degreewas the last thing she In the meantime, more ME courseworkbeckons. r .__ \/

AllAbout ME In addition to the case-method,which usesinformation from actual businesssituations,the ME involvesaction learning. This includes selflearning, computer-aidedinstruction, one-on-one mentoring and interactiveexchanges using a whole-brain approachto finding opportunity and innovaamong students. Creativity and inruition exercises tion are an integral part of the program. The ME areaof study beginswith the foundations of entrepreneurialmanagement. It introducesstudentsto the understandingthar to take chargeofonet environment,one must first be completelyself-aware.Self-masteryskills are learnedand practicedthroughout the program. This expertiseis then continually applied to masteringthe enterprise itsell Next, studenrsexplore Situation Mastery - circumsrancesthat impact both the individual and the business. the environment, the market and evaluatingtechnology operations,organizarional This involvesproperly assessing design, as well as finance. The actual life rycle of the Enterprise is then examined along with how each phaseis sustainedeffecrively.As enterprisemasters,the studentsare able to translateideas,conceptsand creationsinto workthat will lead to productivity and profitability ofthe enterprise. able and viable managementfirnctions and processes ME Program Content The ME program srrucrure is a two-loop study program. The First Loop is a continuous eighteen-daycourse, coveringthe dimensionsofself-mastery,situation masteryand enterprisemastery.The SecondLoop is a dual training systemwhere entrepreneursarend formal classesfour daysa month for eighteenmonths (mo-day weekends,preferably Friday and Saturday)and apply their learning to their own enterprises.

karning To Be

2 l 4

Assessing the Entrepreneur LearningToFeel Learnineto Think-

Environment/Industry Assessmcnt-

Critically

5 6

Marke r Asscssment Learningto ThinkIrarnins to Intuir

14 I5 l6 17 18

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Ooerations Assessment

Technolosv Assessment Learninero Lcad

3-4

7 8-9

Creativelv

7 8

I 2

Orsanizational Assessment FinancialAssessmenr Financial Assessment

Learningto Communicate

l0-l I

Implementingthe EnterprisePlan Repositioningthe Enterprise Integrative Enterprise Analpis, Strategr and Presentation

Evaluationof Aftetnatives,Feasibilityor Viabiliry Study, Vduarion of Enterpriseand InvestmenrDecision ImplementationPhaseof the Enterprise Operatrons: CommercialOperations/Enterprise The Entrepreneur EnterpriseDevelopmentLife Cycle:CommercialDevelop-

ment EnterpriseLife Forces:OrganizationalDevelopment CommercialOperations:The RelevantlVorld (The Outer Life Force)

t2-13

EnterpriseLife Cycle:Expansion,Integration,Contraction and Consolidation The Entrepreneur:His Person,Values,Vsion, Objectives,

IntegrativeEnterpriseAssessment

Enterprise Life Cycle and Life Forces Enterpriseand ProjectPlanning

Marker Assessrnent and Quantification The Entrepreneur:The Person,His or Her Values,Vision, Objectives,Mission,Talentand Sryle EnvironmentalScanningand Industry Assessment

t4-t5

r6 t7 18

Talentsand Style Reorientation,Reorganization& Rehabilitationof Entcrprise Revisitingthe Pastand Repositioningfor rhe Future Mentoring and Action Consultancy Culmination of StudentsPerformanceend Achievements

PojcctftonrMonthl-18: Gutinuing EntcrprireFolioandFntYc$Burine$Plan

A ChiefSpeaks to HisStaff A CEO joins his peop/eto reuiew their careers,and arriues at fundamantal conc/usionsthat tre sigrificant ttt any manlger

ast August 21, a special classuds conductedat AIM. In dttendancewat '74, Gen.AngeloReyu,MBM Chiefof Staf of the Philippine Armed Forces.Tbgether with hirh weremorethan20felloa AIM alumni, al/ of themdt onetime or anothermembers of' the Armed Forces.Like many AIM classes, this onereuolued arounda clse. Thecase:the military men thetnselues, and their careers.l'he question:Vhar option: rhc.v had when theygraduatad, whih optionsthel pursued,and why. Eachparticipant sharedhis own insightsinto profissionalisru,matagement, and careers. Finally, it wasthe CEO'sturn to speah,and he did so with characteristiccandor. lYhdt he toll his staff, excerpxofu,hib appearbelow,is a messdge to any professionil orgllnizotnn or managerseeking excellence andprofes:ioxa/im.

I am amongfriends,amongmy peers,graduates ofboth the military insrirurion and this prestigious,respected, venerableinstitution.The difficulry with beingthe Chief of Staff is that you'realwaysexpectedto saysomethingprofound! AnJway,we'reon the subjectofoptions. Everybodyherehasa storyto tell and all ofyour storiesareunique.The optionsthat you finally choosedepend,ofcourse, on your own individual, unique circumstances. Nobody can prescribea correct for you. Youhaveto makeit yourselfandwhetheryou madethe right decision-tree decisiondependson what you wereafter in the firsr place. I m quite disrurbed by the insinuation that when you graduatefrom this institution, the world owesyou a future.Your graduaringfrom this schooldoesnt "Do entitle you to say, you haveplansfor me?If you haveno plansfor me, I'm out." It is asmuch a responsibilityofthe Armed Forcesto makea plan for you as for you to carve'outa plan foryourselfandmakeit work. Youareprivilegedalready to havebeengiven the opportuniry and the time to study here.Not so many are givenrhat opportunity.I dont seeany reasonwhy you shouldwant to be treated extra well. The privilege gives you greater responsibiliry.You have a grearer responsibilityto the institution that sentyou here.I'm not sayingthar you should go backto the Armed Forces,that is your own decision.But asI said,it is asmuch your responsibiliryto makesomethingofyourself.It is your primary responsibiliry ri(/henI graduatedfrom AIM, I had options.I wasinvited by Prof.SergioSalas to join him. For abouttwo months,while I wason my leaveaftergraduation,I was aireadyworking with FertilizerIndustry Authoriry under Prof. Salas.I was not getting any huge compensationfor that. I just wanted to work. And then Prof. "To Salassaid, whom do I makerepresentations so that you will continueto work here?"Vell, there were only rwo bossesin the AFP then, GeneralRamosand "I GeneralVer He said, think I'll talkwith GeneralRamos."So,hewroreto Genera.l Ramosand it wasnot approvedthat I work with the FertilizerIndustryAuthority asan officer. So, I went back to the service.I speakwith candor here. I think what we "I should try to correctis the belief that am a graduateof AIM. I am entitled to preferentialtreatment,they should respectmy credentials."If you removethat from the back of your mind and just go back to the service,you are an ordinary soldierwanting to do a good job, wanting to contribute.Then, you will perform better.Forgetthat you graduatedfrom AIM. You arejusr like any other soldier. Forgetit, then you will be more at easein your job. Ifyou arecontinuallybugged "l by the impressionthat am entitledto somethingmore;I dont desewethis," you will havea problem. Now, what I'm sayingis that your AJM degree,ifyou plan your careerwell enough,will enableyou to fit into the service.Find a nichefor yourself;find where

you can contribute,and thereareplenty ofareaswhereyou can contribute. I went backand I performedwhateverjob rhey gaveme. If they sentme to this and that position,I would say"Okay." I didnt get to usefancyfinancialaccounting, or anythinglike that. No problem.The world doesntowe me a firture. I owe myself my future.They will not determinehow far I will go. I will determinethat. Somepeopleretire becausethey feel they havebeendiscriminatedagainst,that they werenot given an opportunity by this particulargeneral,it's a deadend. \Why shouldyou allowan episodeor a particularpersonto determineyour firture?I ve seen guys like that. Vhy did you retire? "I was assignedhere, this general,he was discriminatingagainstme, he didnt know how ro useme, I retired."Ifyou cannot move up, you move sideways.I think you learnedthat in managementof change. Move sideways,then upwards. So,I went there,I worked therefor the next six yearsdoing researchwork. Reading, writing, which did me good. I'm very thankful for that. Any job that you take will improve yourself.And, you haveto look at it that way.Any job that you rake can contribute to your persona.l well being.rVherherit is in research, writing, running, jogging,leadingmen,fighting,you endup a betterman.So,haveno fearwith whatever job is givento you. Dont worry aboutproblems.\fell, ifyou havefinancialproblems, then I cannotblameyou. Ifyou havesomefinancialobjectives,then the bestofluck to you. If your ultimate ambition in life is to end up a millionaire,that'sa different story You shouldnot enterthe servicein the first place. I stayedwith the service.Itt nor becausenobody elseofferedme a job. I always had thesejob offersbut I didnt eventhink about them.The reasonI did not accept any ofFeris that I picturedmyselfto be in the serviceup to rhe year2001. Come the end ofthis centuryI would retire.I askedmyself,"IfI stayon, would I makeit?" And I didnt want that quesrionunanswered.So, I said,Im sticking it out, I'll find out. SfhetherI makeit or I dont makeit, it doesntmatter.At leastI will know. Now, taikingaboutoptions.At all points in my career,I alwaysthought:I haveto makegood in this service.I haveto improve.But ifat any time it would be clearthat I wasntgettinganl.where,I d getout. And that is the reasonwhy I continuedto study. I'm not going to impressyou by sayingthat from day one I wasa dyed-in-the-wool military man. Ifl sawthat I had no future, I wasntgoing ro pushit, I wasgoing to ger out. So,I studied,I wenr to AIM. I prepared.And I'm going to preparefor when I get out, beforeor after compulsoryretirement.You neverstop preparingfor retiremenr. You neverstop preparing.So, prepare.If you get it, thank you, if you dont get ir, continuepreparing.I

(tl

HowAn International Bntrepreneur

Ttrrned HisMRRinto GOtn RobertKuan, MBM 1975, creditshis MBM degree,and thesis, for honingbeyabilities he international company neededto build a successfi.rl

n M B M d e g r e ei s s a i d t o b e o n e of the best investments a manager can make. Robert Kuant ROI can validate rhis: He parlayid a 4,500-pesotuirion into a 2.3-billion-peso business empire.

All Robert Kuan wanted was the opportunity co take his MRR and see it through. His thesis,written in 1975 for his MBM degree,was on the expansionsuategyfor a family-owned noodle specialtyrestaurant.Using the strategy - franchising - in the familyowned chain ofrestaurants,he establishedfive storesby 1980. In 1981 he was given the Alumni AchievementAward. Kuan decided it was time to lay the groundwork needed for a full-blown expansion plan. This included investmentsin property and kitchen equipment'and the services offranchising consultant.Little did he know, however,that the conflicting interestsof fam-

Many executivesconsider an MBA degreeessentialin advancingtheir careers.Would you say that it's a prerequisirefor success?

ily memberswould hinder his plans. Their objections led him to resign,evenwithout cashing in his company shares.He startedhis own company, Chowking Food Corporation, in 1985. The lessons of adversiryand his AIM educa,. tion haveservedKuan well. He tu t"oy!_ng fn:o into the biggestPhilippine-basedchain of Chinesefasrfoodrestaurants,with 162outlersincludingfour in ft. F United Statesand threein Dubii,

and 2.3 billion p..o. i., g.oss sales'ln NovemberlasrYearhe sold rhe companyto Jollibee Foodscorp. He hasnow sethis sightson newventures.

| I I I

To be a successfulentrepreneur,you dont ."".1 "" vp ^,---.. ,,,J4. Possessingthe entrepreneurial skills and drive to succeed,businesssense,and a *illino'ess to work hard-these are the more i m p o r t a nr r e q u i r e m e n t s f o r .,....r..

To be a successful

-"-''''--* you doni I enrrepreneur, I possessing I needan MBA. I

I | | I

Havingsaidthat, I creditmy tuy defree for boostingmy confidence-and honingmy "tiriry ,o fo.u, o., porsiblescfna.ios.I've alsogainedmuch from rheAIM

,r.t*"ork,

I | I I I

advised orof.rrorswhirauehiand .., ,u.h ,. G""by Mendoza, I QuintinTan,andJessGallegos. Uit;.u. ,hr, on..'"n indiuidurl b.--., -y,.acher,heorshewill

the entrepreneurial skills

Kuanretains strongtieswirh | AIM, returning to atrendtheTop I Management Programin 1993' continuously sharinghis ideas I | with theAlM staffonhow rhey I

, . to , ano, orlve succeeo' business sense,and 'a wi ingnessto work

can increasedonations'and in-

especially from the

always be my teacher.I always fluencingotherpeopleto extend | hard-these arethe more | .on.,rl, thesJ frofessorswhen I I | financialsupportto the instirure. .rk .ru.i"l d.'.irionr,in buon... | ,__^*^_. _^^--:-^_^_-| In this interviewwith TheAsian I important requirements | ffi*;; Managercontriburor Dinna for " -*-* I success

lngise c. Dayao, he describesthe | benefits he has gained ftom an I AIM education and the challengeshe has facedas an entrepreneur.

Why did you decideto takefunher studiesat AIM? My late father encouragedme to take the entrance exam at AIM and pursue the MBM program in the 1970s. He opened a bank account for me with a 20,000-pesodeposit and told me to usethe money for my books and tuition fees. At that time, the annud tuition at AIM --- about 4,500 pesos- was consideredexpensive.That's why I m really thankful to my father for providing me wirh rhat valuableopportuniry.

, | I

| wt ". was the biggest challenge I you faced as r11"i-trep.r.*? "RobT. clone myselfl Gaby once told me, ert, ifyou cannot duplicate yourself, if you cannot find somebodywho thinks like you and who is committed to the vision of Chowking like you are, forget about going international." I was fortunate enough to have found franchisees who are entrepreneurial and driven to manageChowkingt ovâ&#x201A;Źrseasstores.They have been key to the successofthese outlets. For example,the franchiseefor the store in Abu Dhabi provided key insights which helped us adapt the Chowking concepr to that market.

He pointed out that since the 2.5 million popula- the right position to bring out their full porenrial of tion there has a higher purchasingpower-and are each person. I alwaysried to instill this mindset in willing to pay for biggerportions, qualiry food pre- my key managersso they could help me identifr who sentation,and better ingredican rise from the ranks. ents-than our massmarket You're known to be an avid in the Philippines,it would reader. What do you enjoy not make senseto use the reading? same marketing and pricing Having stratâ&#x201A;Źgles. I like books about the life s t o r i e s o f s u c c e s s f ue l ntreAs a result, the store in the right preneurs and executives Abu Dhabi was positioned b e c a u s e t h e i r e x p er i e n c e s from in differently those the mirror mine. Some of my Philippines.It becamea cross favorite books are about the between a fastfood and fine PeoPle founders of Kikkoman, dining restaurant. Because Sourhwest Airlines, and marginsarehigherrhere,there McDonald's, and CEOs like was no need to serveas many customersas in Manila. Jack Welch and Lee Iacocca. 'Vhich managerial skill do you practice the most? Peoplemanagement.Having the right peopleis crucial to ahe successof a service business.Chowking's workforce grew to 7,000 employees,'including those of franchisees,in our stores,kitchens, and commissaries. Running a handful of storesis relatively easy.You can sdll manageto be thereduring a store'sgrand opening. But when you have more than a 100 storesand you open 20 or 30 storesa year, you cannot physically be there. This is why having the right people is very important. I believethat all employeeshavetheir own skills and strengths. The challenge is for managers to identi$ these,inspire employees,and put them in

rVhat thesepeoplehavein common is the drive, vision, and willingness to work hard. I'm learning from their experienceswhich I feel substantiate a lot ofthe things I ve done. I (The merger of Jollibee Foods Corp., the Philippines' largest fastfood chain, and Choruhing Foods Corp., the leading local oriental fastfood chain, was announced in Nouember 1999. Chouhing is a 50-50 joint uenture bet?aeen RobertKuan andJFC ouner and Tan Caktiong. chairman, Antonio Thn Caktiong had ffired to issue new sharesof Jollibee to buy out Kuanls group. Chowhing has 162 branches,four of which are in the United Statesand three in Dubai. On the other hand, theJollibee brand has329 branchesin the Philippines and seueralin some , , . , . . ' . ^ parrs of Asia and the United States-JFC also operates other fast-food chains such as Greenuich Pizza and Marvi Ci;chen.)

nnnn?lfiJJlfl Europe By Cristina Lopez,MBM '99

AIM is knownfor training.Asianmanagerswith aglobalperspectiue. A recentgraduateoftheMBM programPuts this training to the testin a studyand-uork stint in EuroDethis summer.

astApril, I qualified for a scholarshipto the AsiaEurope Programmeof SciencesPo in Paris.After two yearsofAIM, I wasnot quite surethat I neededto go back to schoolasmuch asI neededto land a new job. However, spending a couple of months in Europe was an offer I couldnt refuse. More than allowing me to experiencelife in Paris, the Programmeappealedto me becauseof my desireto know more about Europe. The European Union today is hard to ignore. \fith a population ofover 370 million people,it represents one ofthe worldt largestsinglemarkets.It would be interestingto undersrandthe complexiry ofthe EuropeanUnion, its implications for business, and its impact on the lives ofEuropeans - and Asians. Getting to nprworkwith different studentsfrom Asia and Europe and exchangeideaswith them was another plus. Plus, it would be a greatopportunity to get a first-. hand feel of what it's like to do businessin Eurooe. I would get rhe chanceto seebusiness practicesI m"y nor havebeen exposedto yet. "grande SciencesPo, a ecole" or elitist school in France,hasa 125-yearold,radition ofeducating French leadersin businessand politics. About halfofall top government officials in Francegraduatedfrom SciencesPo. The teachingstaffincluded rop businessand government officials,and professorsfrom the bestschoolsin Europe. The participantscamefiom 11 differentAsian counrries: South Korea, Taiwan, Japan,Sri Lanka, India, Indonesia,Malaysia,Singapore,China, Thailand, and the Philippines. \7e were all betweenthe agesof22 to 34, and of the besrschoolsin fuia. sraduates

ln font of Marir Antoinettci hamht, in Wrsailles

All in all, a greatway to test my just-concluded AIM education. Early in the Programme,we had group work and were pressedfor time to finish it. I volunteered to finish our work. I don't supposeit will surprisefellow alumni to hear that my group mateswere quite impressedthat I did most of the work by myself, and in a short spanof time. Credit that to all those Written Analysesof Cases(\fACt, w h e r cw c l c a r n c dt o w o r k u n d e rt i m ep r e s : u r e . T h e r ew o u l d b e a m p l eo p p o r t u n i r i et!o r e s tu s further. Major themescoveredin the Programmeincludedthe hisroryofEuropeanconstruction,the political economyofEuropeanunity, EU institutional and regulatorystructures,the Europeanbusiness world; Financeand Marketing; socialchangeand marker responses;the role of Europeantechnology; and Europe-Asianeconomic relations.Integratedin the academic programmewere field trips to Brussels and Frenchcompanieslike LOreal and Aerospatiale. My favoritediscussions werethoseon Banking in Europe, Marketingin EuropeandTelecommunicationsin Europeand, especially,Women in Europe. \Weknow that the role ofwomen today is changing. lf women used to just stay home before, today we AIM exchange student AnneReutaneur Top:lYith see women leading government and businesses. Below:Resting bycreekin Versailles in Strasbourg. Should Europehavespeciallawsthat benefit women (like not allowing women to work at night, for safety the most. lWeknew what our professorswere talking reasons)?But ifwomen are given too much protec- about. tion by the law, they may, in the process,loseout on For instance,when we were taking up banking work opportunities that men have. in Europe,I wasthe only one ableto answerthe proVhile discussingWomen in Europe, we got to fessors'questions (in fact, my other classmates told talk about rhe role of women in Asia as well. W'e me to askrhe lecurer for a job!).That wasbecause I rriedrti comparework opporruniries givenro women took up an electivecalledManageme nt of Banking here and over there. Vhat cameout was that today, Institutions. In other instances,Anna, Yudi and women, whether in Asia or Europe,haveto dealwith Mukhlis (also fiom AIM) were able to impressthe someskepticismwhen it comesto their worth or get- classwith their knowledgein marketing.This proved ring the work done. Thanks to thesediscussions, r h a r w h a tw e l e a r n e da r A I M i s t r u l y r e l e v a n t . making a difFerenceas a woman, which has always Our training at AIM helped immenselyby givbeen one of my goals,has taken on an evengreater ing us the confidenceto speakup when we knew the meanrng. answer.AIso, our AIM professorshad taught us that when you speak,you haveto know what you aretalkAIM Grads Stand Out ing about and be readyto defendyour thoughts.And defend we did! Our discussions on Bankingin Europefocused The classaho traueled to Brusselsfor an intensiue on how the banking world is evolving. With all the three-dayuisit. \Yemet with a lobbygroup who briefed competition, how do banls in Europemakesurethey uson the intricate processofnegotiating uith European where ministers. Weako attended a briefng at the European keepgrowing?Samewith telecommunications, Telecom we srudied how FranceTelecom,Deutsche Parliament; it uas the ueeh when the Prodi Commisa n d B r i t i s h T e l e c o m a r e c o p i n g w i t h i n d u s t r y sion uas beingput tlgether F;nall!, we had an enlightchanges.In our casediscussions,everyonecould see ening discussionuith senior research fellorusat the Eu' rhat the AIM studentswere the onescontributing ropeanCenterfor Asian Studies.Tbconcludeour hectic

"I Tina: don't thinh I canfool you into thinhing all I did in Europe wassrudy stu$,, sudy or worh, uorh, worh.I uent aroundand sawEurope,too!"

Brussek trip, theclastoohd daytip toBrugefor a bit to go for an internship for the Philippine National of R&R. Bank in Paris.After the MBM and the Asia-Europe Ratherrhan just study about Europeanbusiness, Programme,this seemedto be a worthy assignment. 'We we got to observethem up close.The plant tours of all know how much money overseascontract LOreal (one ofthe worldt leading manufacturerof workers send to their families in the Philippines, consumerproducts)and Aerospatiale(with very spe- which makesremittancea truly big industry.YetPhilcialized products like satellitelaunchers),two very ippine banks in Pariscannot take advantageof this werevery eye-opening.We got to situation. They can only be a representetiveomce diversebusinesses, seehow they operate.I loved knowing about the lat- and give out information. Could I find a way to do est technolog;rand practices it, after the lawyersof PNB they employ. advisedthat it was not posHere, again, our AIM sible?Aha, a challengewor"We education proved to be adthy ofan AIM graduate!To all know how much vantageous.Our classesin make a long story short, I Operations Management was able to find two ways, money oYefseascontract definitelyhelpedus to apprewhich they are studying toworkerssendto their families ciate how Europeans run day. My boss mentioned their plants.Ve sawfamiliar that other Philippine Banlis in the Philippines,which concepts like 5S and the would kill for this informaKanbansystemin operation. tion.... makes remittance a truly big I don't think I could After MRR, Nothing's fool you to think that all I industry. . . I was able to find T""gh did in Europe was study, study, study. And work, two ways, which they are To get the diploma, we work, work. I went around had to passa find written exand saw Europe, too! I had studying today. My boss amination and complete a fun eveningsand weekends. researchpaper.I did a comI got to see a lot of the mentionedthat other Philipparative analysis on ComFrench countryside, and petitive Intelligence Practices nearby countriessuchasthe pine Bankswould kill in Europe. I was lucky to UK, Spain, and Italy. Alrd have the help of Mr. Pierre for this information..." of course, Paris. Visiting Sohl, head of the Business friehds said I would make a IntelligenceUnit of Ernst good tour guide. and Young in Brussels. On your next trip there, 'Well. after the MRR. the AIM a.lumni in the here'swhat you can do: tour the Champs Elysei in Programmeall felt that a 2}-page paper was noth- the morning, have a picnic at the Floral Parc or ing! (Thosewere the exactwords ofone ofthe AIM PyreneesParc for lunch, seethe Eiffel Tower in the participants).Our MRR training enabledus to avoid afternoon. End with the spectaculardinner cruise procrastinating,and to finish our papersbefore the on the Seine.\7ith myAIM degree,I might actually deadline.Upon finishing the Programme,I decided be able to afford that the next time I visit. I o/

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MANAGEMENT MASTERIN BUSINESS 'lhe

SIX PILLARS OF MANAGEMENT WISDOM

N l a s t eirn B u s i n r s\sl l n l g e n c n t r c v o l v r sa r o u n ctlh e t h , . : r n eo si q L r : r l i t iu. l o b . r l i z l r t i o n ,c r r s sc u l t u r a la n d c r o s s - f i r n c r i c i n r r l s k i l i sa n c el t h i c s .l i r cc o m p o n c n tosf t h c c u r r i c u l u m i n c l L r d c. r s i x - * ' c c kb l u s h u p p r e M R A p r o e r a r r .F u r r c t i o n aSl k i l l sa n d l b o l s . (,eneraltrlanagcmen r, Straregylrornrrrlation r n d I . c a d e r s ha i pr t cE l l r c t i v e( , o u r s e s . M B N , lu s c sc l , r s s l o o n - b e s r cl rl .i g h l l i n r c r : r c t icr r u r c lp a r r i c i p r r t i v cn r o c ] c so f l c a r n i n gb, c f l r r i n g :cr a s er r c t h o csl c h o o lT. h r m o s tn c t i v ca p p l i c a t i o nosf t l r i sp r c l a g o q i c a l p h i l o s o p h va r c t h c A c t i o r t( - o n s u l t l n c r l' t, t i n t e r r r s h ippr o j e c rt v h e r et h es r u c l e ni sr q i l e n r b co p p o r t u n i nt o a p p l vr h es k i l l sa n c kl r o * ) e d g cl e a r r r e .iln t h c i r f i r s t v c a r t o r c a l - l i f e m:rnagernenr siruarions anclrhe N'lanagemenr anci Rcscarch Rcpolr.ol N'lRR,a rceiitv-basecl fleld rescarch activin,t'hererhc snrdentis cxhe/ pccrcdto drawon all the functional,rre,rs shehasstudiedin l'ritine a corporatcstlategr', r enrurc a lcasibilin'stuclr', andentrepreneurial 'l or evena seriesofcases. he srudcntgctsin touchrvithindustries andprovidcsa grcatdeal fbr nenvorkingrclcvirntto his/herintendecl careerin the future. l n a d d i t i o n , M B M b e n e f l t sl i o r n t h e strongrel:rtionships AIM maintainswith over 2 0 Ul o . . r l. t t t dt r a u . n . r t i r n r\t1l ' n l [ r , r n i ra\ .r e larionshipformalizcdthroughan interacting n e ( \ \ ( ' r Lo l - m a r ) J g e m e cr )dru . . t t i . r tgt u r u ' and lncalledPRIM F.(Partnersfrrr Relevance novation in Managenent liducation).Tl.ris rapidlyexpandingnetworkprovidesa rvidcr baseofsrudv lbr studcntson the lookout fbr Action Consultancvsubjectsand casesfor MRR.

',-/ , ,'i MASTER IN MANAGEMENT -l'he Nlasterin \lanrrgcmcntl)roglrrnrjs rrn i t t t c n s i cr I I - n t o n t h i t - t t c q r . r r ecrol u r s cf h : l t c o v r r sr h cc o r ef i n c r i o n so i n r l n a g e r n t r lr rhi l c developingthc srudent'skev rrrrnaqcri.rl .rncl l c a d e r s h ispk i l l s . l h c p r o q f A nrrc . u r su p s r r L c l c n r sa n d f a c u l t vi n r r l n r r g i n { t h e l c a l n i n g ploccss, Dcsigneclfirl manlgcrsuith .rt lc:rsr s i r v c r r s i n t h e f i e l d . M N l p r e p u l c sr h e prectitionclto ilssunregreatcllesponsibilities anclarriruclcs ,rsqeneralnrrlnrqcrs.rncllclrdcrs. ( - o r n n r u n i c a t i osnk i l l sa l e h o n c d i n r h e l i q h t o f n e * t e c h n o l o g i cisnrs t r u c t i o n ar rl e r h o c l o k r gicsnake useof Asianpcrspectivcs anclc,rses. 'flrc First i\{odule tloclops thc strrclenr's . k r l l . i r r l r , r n . l l i rign l i , r r r r , r r i , , r r , l l r . r n r i r . r i \ r rnall'sis.systemaric anclcrcarir.e thinking, tlc, cision-rnaking and jrrdgnrcn t. In this nroclulc,rhestudentsprcp,rrca prrposal for the NlanagemcntResearchRcport (equivalentof a rhesis)and subnrirrnt{ clefencl Palt I (irn indLrstrvstudr')of thc NIRR. The SccondModule irrrcsratcsrhc flrsr, 'l t h c n f o c u s e so n s t r a t c q yf b r n r u l a r i o n . h t studcnts:rlso h a v e t h c c h : r n c et o s t u d l ' : r companvof their choiceand to subnrit an<l dcfi'nd Part II (corporarestrategr,)of rhcir It{RRs. 'l'he Third Modulc takcsrhe stuclentaway from the sanirizedrvorld of c:rscsrudiesan<l into the realworld of The Walkabour,rvhere hc/sheis requiredto choose,desiqnand implementa three-u'eek undertakingon his/hcr' own wirhout guidanccor assistance fiom the Iacult1,. Inspiredby rhe Australianaborigine's rite of passage, The Walkabourcan bc anl. projectso long as it is a n.ranagerial learr.ring experience, is original,and involvesan eiement of risk.

EXECUTIVE EDUCATION Thc f.xccrrrivc I-tlrrcarion proqrrnls trrrrrsfi)fnr , . ' r e c r r tci rs p r r r c t i c i n qi n t h c , \ s i r r nr e q i o ni n r o s l < i l l c c { antl ucll-r'crseclglob.rI nran:rqcrs.F-xccirtivci:cluc.r, l i o n c o L r r - srrr. rscf i r l l r i n r ec e l r i f l c . r r c o L l r s c(s) r s l r o r t d t t t r r r i o t r t. i p i c l r l l i l r s r i n q b e r r l c c n r r r r r r r n i l e i q h t uctks. l hcl llc cLsigntclfirl orgrrnizrrrions rvho u.anr t o i n l c s t i n t r ; r i n i n gt h c i r p c o p l e t o c l c a lr r , i r hr h e c l t u l l c n q c so i t h e b u s i n c s ss o r l t l o l t h r f l t r r l e [ - . x , ccutivc EclLrcarion proqmrn incltrtlc public oflirings, i n - h o u s cp n r g l a n r s s. p c c i a lc o u r s c s . . r u s'cll asjoint pf(xrlirls that thrite on a rvealth ofqiobal r.n:nager n c r r r c x p r e r i c n c c s I. ) u b l i c r e f t ' r s t o r c g L r l a r l v corrducted programs. In housc progranls ale custorr-clcsigncclto a companv'suniquc needs. Spccial l)rogranrsarc conduced fbr specific or firnctional rrrc:rs of rr:lnagementor specificindusrrics.I-xecutive Eclucationalso conducrs joint prosrams rvith local and ovcrsels nenvorks. Among these partncrs are rhe Insulancc lnsrirute fbr Asia and thc Pacific,the W ' h a r t o n S c h o o l , t h e A s i a n S e c u r i t i e sI n d u s t r y I n s t i t u t er.r r J r h eJ u r a n l n s r i r u r c .

MASTERIN ENTREPRENEURSHIP 'I'hc \{asttrin f-ntlcprcnturship se c l c u r eper r o , qr.ttl th.rrtl]ics oll fiorn rvhcrctrrrclirionril busincss l ( . r r ) i n t\ \ . t ( r r . i . . r v .r , ' r l l l t l t , . r t l e l ' r ' . l , r r r ' . ' . P c . cial ncecls.It disresscs fionr rhc sralderdfirnctionrl c o u r s ec o n r c n ra n c l r n c t h o d o l o g i casn c l i s q e a r c d torvarcl houing thc cntrcprcncurial pcrsor.ralin', skills rrtrclentcrprisc.'l'hcN4his rrcoursein crcarivcle:rclcrship,rvirh a viervro bringing rhc cnrrepreneur ro optirrum Io'clsof productivitl',profirabiiiry-and profession:rlism.

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EXECUTIVE MASTER IN BUSINESS ADMINISTRATION I - h c E x c c L r r i y eN ' l r s t c r i n [ J u s i n e s s Administlatioa n c l t l r e s stchse n e c col f c o r r p a n i c s to cle,rlttith thc rlpid ch,urges in toclar'sbusincss 'l c n v i r o n m e n t . h e p r o g l a r r 'psr i r n eo bj e c r i v c s : r r c to irnplementc{esirecl strategicchangethrough conrpan\Lsponsofed participunts anrlto clcarcimnrcdiatebusincss:tnclstlarcgicbcncfltsrnelsur,rblein nronet,rrlterrrrs. The EMBA (.orpotate(ihangeI'rosrarris rhc besrinvcstnrent l companvcan rrlkc in thc miclst of'clifllcultresource choices[recause both palticig e r p a n t sa n d t h e i r c o m p a n i e s i m m c d i : r t c : r n d l o n g - t e r mb e n e f l t sW . i r h c l a s s chse l do n eu e e k : r month fbr eighteenmonths,the EMBA plovides learninqexperience, u'herethe particia seamless pating manegersapplr.rvhat rhev learn clirectlv to real-lifestrategicconcernsofthe com;ranr'.In s o d o i n g , c o m p : r n i e se n j o v r h e : r c l v l n t a q eo f cquipping thcir managersu'ith critical strutegic n a n a g e m e nat n d e n r r e p r e n c u r isakl i l l sr v i t h o u r losingtheir services.In fict, participatingfirms havescrrtkey marragers to thc prograrnpreciselr, for this reason. IVanagersand rvorkerswho recognizethirt they'arein:r rvork environmentrvherepersonal, inrellectual,corporatc,and carecrqrowth arc actuallv parrofrhe processwill want to staylonger 'l i n r h e i r r e s p e c t i v ec o m p a n i e s . h c E M B A CorporateChangeProgramis possiblebecause ofa three-way partnershipinvolvinethc company asthe prime beneficialy,the AIM flcultv as the process facilitatorand skill builder,and rhe man-lb ager-participant as the changeagent. ensure that the sponsoringcompanv getsa good return from its investmentin the program,participants are requiredto produce realbusinessresultsfrom their straregicmanagementprojects before thev can be granredan EM BA degree.

MASTER IN DEVELOPMENT MANAGEMENT -fhc

\lasrcr in L)crclopnrrnt\{iur:rgcrnenris a one vearfiLll tinteclegrc.progfrnl t l c s i q n c cf o l r clevclopnrcn e rx c c u r i l e sa n r l m a n a q e r si n t h e c l e r e l o p i n q r v o r l c l .T h c flagshipprogranrof thc Ccntcr tirr l)clclo p n r c n t \ l r r n a q c n r c n r .\ 1 [ ) \ l i s r cleveloprrentphikrsophl th:rt elollccl out ol r\]Nli ol n erpcrirnccs,rnc{rese,rrch on t h c f i c l d . ( i o n c c p t L r :frl le n r e s o r k s u c he s I n t c g r i r t c dL ) e v c l o p n r c nS t r r a r c q r 'A. r c , r B a l r n c cS h e c tA , r e aA c c o u n r i n ga,n d F o r c c F i e l dA n a l v s i su e r r i n n o r r t e d ,e p p l i e ctlo A s i a n s c c n l r i o sa n c l i n t c q r l r c d i n r o a c o h e s i v ed e v e l o p m e n tp h i i o s o p h v r h a r stressb eo s t h r a t i o n aal n c il n r u i r i l et h i n k i n g . It hasclevelopecl a subjecron Analvtical a n d I n t u i t i v eM a n a g c m c ntth a t p r o v i d c si r ' $ 7 h o l eB l a i nM a n a e e n r e A n tp p r o a c h .T h e c o r e r , : r l u eo f n u t u a l h e l p i s e s p o u s e d rhror.rgh rhc lornation of damayans or srLrdrgroups, rvhere students rvork rvith rhroughoutthc coursc. MDM exposes srr-rdenrs to real-lifccascs thar deveiopskills in arca anirlvsis, managcmcntof functional areas(financc, m a r k e t i n q ,o r g a n i z a t i o n adl e v e l o p m e n t , o p c r a t i o n s n ra n a g em er rt ) a n d t h e i r interrelationships, strategvformulationand c r r l t r ar i o r r . p r o g r l m l n . l p r o i e . r managementand managementof change. In addition to the casemethod, which is AIM\ major learningmeth6dolog,v, students undertakean areastudvand a management research report(theequivalentofa graduate rhesis)on developmentissuesconfronting communitiesand orgairizations.

A Tradition of Giving inceits foundingin 1968, The Presidentand Dean'sFund t h e A si a n I n s t i t u r e o f This unrestrictedfund allowsthe Managementhas received President andDeanto initiateanddea generous ourpouringofsupport velop new programsand curriculum, from the region'sbusinesscomexperiment with promisingideasand muniryandphilantropicinstituresearch, andinvesrin peopleandtechtions. This exemplarysharingesnology. tablisheda unique rraditionof givingthat hasenabledAIM to ElectronicBusinessLibrary This fund helps to obtain the hardwareand sofrware becomethe centerof excellencein Asian resource development,research and training.In 1998a new partnership AIM's ElectronicBusinessLiwas neededto fully operationalize launchedberweenthe AIM Alumni Association(AAIM) and brary locatedat the ACCEED ConferenceCenter. the Institute, The \91 SlCip Policy Center TheAIM TigersCirclewasformedasa vehiclefor alumni This fund supportsresearch on policy issuesconcerning supportto the Institute'scontinuinggrowthanddevelopment. the business community,emphasizing business-government Alumni supportwill ensurerhatAIM continuesto maintain relationsin the contextofcompetitiveness and development. and elevateits preeminencein Asianmanagementeducation. By giving to AIM, alumni enhancesthe valueand prestigeof Gov. JoseB. FernandezJr. Center fo Banking and Finance their degreeswhile building a legacyfor thosewho follow. This fund supportscurriculumdevelopmenr andresearch AIM Alumni canjoin in the Tiadition of Giving by supporc on policy issuesaffectingthe banking industryand other aling any of the following funds: lied services in the financialand capitalmarketsin the PhilippinesandAsia. Area of ExcellenceResearchFund Research andthe casemethodform the backboneofteach- RamonV Del RosarioSr. Center for Entrepreneurship ing at AIM. This fund supportsrhe generationof original This fund seeksto promote entrepreneurship by develcasesand textbooksin the Asian context. Researchis con- opingbusiness, corporate, and socialdevelopment entrepreneurs. ductedunderAreasof Excellence suchasMarketingManagement.

EndowedResearchChair An endowedResearch Chairwill sponsorthe research and other academicactivitiesof the AIM faculry to further the knowledge anddevelopment of conceprs andskills. AIM EquitableLibrary This fund supportsthe Library and givesit flexibiliry to makespecialacquistions.

Buildings and Equipment Fund This fund helpsin the improvementand mainrenance of the AIM Campus,caserooms and funcion rooms. The fund alsosupportsthe acquisitionof technologies suchas audio-visual equipment. Alumni Lounge and ServiceCenter This fund seeksto developthe venueand generatethe alumni activitiesthat will helpin promotingalumni networking. I

Endowed Faculty Chair The fund supportsa professor's teachingand research acFoun, tivities, providing him/her with the ma-rimumflexibility to To join rheTigersCircle,contact:AIM ScientificResearch dationInc.JosephMcMicking Campus,123Paseo de Roxas,Makati pursueacademicinterests.

Ciry MetroManila,Philippines, DL: (632)817-2852I 867-2114, (632) TL: 892-4011ro 25 loc. 151, 275, 344, 103, Fax:(632) ScholarshipPrograrn 817-2852E-mail:SP.f@aimldu.ph.Upgradeyour Tiger Category T h i s f u n d a l l o w sA I M r o m e e r o n e o f i t s h i g h e s t over time and be among rhe rarerand more prestigiousgroLrpsof obligations: to attractand provideeducational opportunities AIM Tigers.Simplv contribure rhe balanceberweencategoriesin for promisingstudents. installments or in whole.

. l

Of Tides, Mice, Gods, Mazes, and

figure CEOs mostly spend their time trying not to drown. Judging from the amount of shelf spacedevoted to managementbooks these days,it's a wonder any CEO hasthe time to managea companywhile trying to keep up with what everyoneelse seemsto think the boss must know. Hey, therecant be that much to remember.My psychologyteachertaught me thar rhe normal human brain can only handle about seventhings ar any one time.

Monsters

"Ifyou

In tahich

CEOs need to use their eyes.

the GadJly sbarestips on what he thinhs CEOsreal$ do, or don't

" go with theJlow,1ou'll uhimately drown in the undertow. - Al Dunkp

It's really important to figure out whatt under the wavesbeforejumping into the water Hitting your headon a coral reefis not a good way to start the day. Good CEOs know how to ask questions.Thatt how they can figure out where they should and should not go. Sometimes,avoiding danger is all it takes to win. But that's only when no one'sracing you. Otherwise,it reallydoespay to know whereyou'reheadedand how to get there alive.

"The

uniuerseis gouernedby the laws ofprobabiliry. Youare no exce?tion." - lVilliam Lareau Peopleare important. Followersdecideto follow. Leaderscant forcethem. The tidesof businesscome and go.'Vhen the boat is in trouble, the mtce leavethe ship. The Captain goesdown with the boat. Id rather reporr ro the mouselDrowning should neverbe part ofthe job description. CEOs should be clearabout what they haveto do - sometimesit meansleaving a sinking ship. \X/ho, in their right mind, would follow a suicidal boss? "Intelhgence " hasmuch lesspraaical application thanyou think. - ScottAdams CEOs must inspire. It's like being in the deity business.You give people the rules, some free will, and then searchout the oneswho aregoing to be your chosenpeople. Then you let your personalMosesrun the show.That, ofcourse, is after you put the fear of god into him. Technical job skills just cant beat a burning bush. All that's neededafterward is an occasionalparting ofthe watersor rain of manna to keeppeopleon their way. "You

can't blou.'an uncertain tum?et" - Fathel TheodoreHesburgh

CEOs preparethe playing field.

The averageemployeefeels like going to work each day is like entering a maze. Some days, it meansscaringup a monster to slay.Other days are for discovering specialrewards.Most days,it's lust blank walls. Everyoneneedsa map. Mostly, people look to CEOs for that. You cant let people make up their own map. Empowerment'sall fine and dandy but people need to know where the goalpostsand foul lines are.Abdicationt srictly for royalty. Rules shouldn't changein the courseof the game.Audiencesget it - goalsget applauseand fumbles get boos.Ain't rocket science.Bossesshould ger rr. CEOs can do all talking they can beforehand,but when rhe gamestarts,rhe players determine the plays.The CEO can only watch and screamfrom rhe sidelines.You confirsethem, you lose the game.Remember,theret a limit on time-outs. "h

realQ heQsto be lored" - The Gadly

CEOs need to know how to bind. Vhen the going getstough, peoplewill work harder for someonethey love.A good CEO binds employeesto many things - the company,its products, eachother, the CEO, the firm's overriding ob.jective.The more ties, the better. 'Hold

on to your compasi"- The Gadfl1

Implementation is essential- all plans end up being rewritten in someway. Flexibility is important bur eventuallyreachingthe goal is crucial. There are always many ways to get to the sameplace. Some days,you end up taking many unexpecteddetours. Ifyou know whereyou'regoing but haveno way ofsearchingit out, youie not going to get there. It's good to be optimistic - but cheerwont get you out ofa hole. As the General said,Hope is NOT a merhod. 2ll great truths begin as blasphemies.i- GeorgeBernard Shaw Many times, the only way to be kind to the organization is to be tough with it. Managementisnt a popularity contest. Ifbeing liked becomesa pa.ramountdesire,profits fly out the window Pretty soon, we'll all be without jobs. Having something to eat beatsbeing liked. Besides,some peopledeserveto be canned.Keeping them around just tells the resrofus ir's okay 'bleep to be a bleep'.Hey! Itt never too late to manageby fear. 'What's that? You still need a life saver?\i?'ell,there'sthis manaqementconsultant I know...t Gadfly is a real manager with real obseraationsaboat real companies. Tbgiue him !ou/ olan reality chech,send mail to: gadJlt-ahnph@nhoo,com

Welcome to ClassNotes, your very own bulletin board for announcingyour career opportunities,your searchfor long-lost your milestonesin life, your business achievements, to the attentionof the world at and anythingyou feelwill bring your classmates classmates, sendus mail at If find your class,here, you dont large...andcloserto eachother,of course. tam@aim.edu.phand we'll be h"ppy to publishyour notes.If you do find your classhere, in eachissue,so sendus mail rememberto updarethe world aboutyou and your classmates regularly. TheEditors

heffiwil '83: So Danny Saracin MBM "life begins at forry?" what if MBM is sweet at sixteenll Whooaah!!lJusr wait a minure. We never realized it until the Office of Career and Alumni Services broached the idea ofa class update. Itt been sixteen ridercoasteryearssincethe classof'83 took on the world!! And let'ssee how!! Noel Royandoyan, the new Director for Career and Alumni Services,fellow'AIM'76 higher" and batch mate of at National Steel Corporation. must have been curious after we reminisced about our Iligan years! But that is going aheadof "individual" stories... the our Nissan Patrol I can't believe y o ur Mazda bumped into Hortinela, Van...Helen of Controller Financial DANZAS (the worldwide transportation network ) one morning called me. \What a way to bump into each other againl But soon enough we forgot ( for a while ) about the dents and needed repairs on my van and the damage to their companyvehicle, as we talked of Ramon Opulencia at Ayala Corporation. The mention of one banker set off an enumeration of financial hazards er, wizards: Raffy Pertierra at BPI, Michel Aguilar at Standard Chartered, Zufueta at ING Barings and who else? Oh, yes, Manolet Salak, also

with Barings. The bankers and financiers rarely get into the papers.But notJoelValdez, who as top honcho of Corporate Access Holdings is into development financing, like the small investors programs, and various other schemeswith local governmenrunirs. Jojo Rosario is teaming up with Joel. And borh arejust too eagerto sign a MOA with Land Bank Realry Development Corporation for inivariousLGU inFrastructure tiatives except that General Manager Daniel T. Saracin cannot act on it quickJy enough due to timing and other consrraints at GOCC. Wait until I'm governor ofSurigao del

Sur - six years from now. Mention Jojo Rosario and a "double" Rosario Kintanar Rosario needsmentioning too. Is she still with SGV? What? How can one stayso long in one company?!! You must be missing a lot for not trying out the others-before you venture into your own!!! And speaking of entrepreneurial ventures there's Nelso Yu and his ( his familyt? ) dealershipsirt Cebu Ciry for agri-chemicals, cooking gas, gasoline, etc. Richard King, also in Cebu, with his real esrateand relatedvenruresinto the hospitality (?) industry. And how about Butch P. "heredero" and Muyco, the

"haciendero"

from Iloilo Ciry?

His computer dealershipand his San Dionisio Rural Bank must be making good -enough for him to launch a political career along the Palmares tradition!! "heredero," Ramon Another Jarencio, was last known to be with an investment banking group-did their mergers and acquisitions cause him to remain on low profile? Like the low profile of Hong Kong-based Kerry Chunaco, now First VP of International Bank of Asia. On the side though, he is looking for very promising Philippine start-up companiesto acquire, not necessarilyfor the bank. Going entrepreneurialin international banking and finance? Most probably. And where have all the others gone? George del Fiero and Kathy Holcombe are in the U.S. Same with Lorna Morte. Honestly, based on memory alone, I don't know anymore where the others are. But their Alex names stand-out: Pamandanan, Greg Atienza, Jimmy Lina, Rajiv Kulkarni, Bong Prijatno, Djoko F i n a l l y , t h ere's Arjonillo. I get Everytime Rivera. Ronnie Bankard, of from my billing

which he is the AVP for Marketing, I remember him. I hope he reads this and calls me. \7hen October comes, I remember he always celebrateshis birthday. Invite me, Ron. '89: The Fred Utanes. MBM Asian manager is that seasoned mammal who rose from the pits of the millennium's worst financial crisis. Thatt how I would put it. But the rest is actually not that evolutionary from 'Work is just the where I stand. curse mankind inherited from the fall of Adam and money is still hard to find especially ifitt clean. But that's the barebones essenceof a life well-examined, right? And with faith you never have to lose sight ofwhatt really important in life-family, your spouse and life partner, the children, and a sound and clear perpective of the future. But before you melt into tears under such intense glare of sentiment, let me give you my card. I'm in computef training and I'm proud to inform you that we serve all computer learning needs at all levels. At Informatics, we teach information tdchnolory no-knowledge-at-all level to cuttiqg edge IT. Get on with the next centuryt steepest

excitins learning :l*.:"' Vitoon Puripunyavanich, '91: MBM My favoriteteacher in AIM? Etsu Inaba.And my favorite subject was Environmental Analysis 2. It's been a decadeand I still remember school! in fact, I like studying so much I amback in school.I am a Ph.D. studenthereat the University of Tsukuba in Ibaraki, Japan. Two things I learnedfrom AIM that remain applicabletoday: Communication skills will get you through when nothing elsewill or even if im the only thing you haveleft. The other is: faceis an impor' tant thing in doing business in

Asia. The finer points of onet bearingon the other is something I m still working out. \flill drop by againwhen I geta break. C h e e r sa n d k e e p m y A s i a n Managercopiescoming.Vitoon Puripun-yavanich,Ichinoya3 53 I 5, Tennodai2- l, Tsukuba-shi, Ibaraki-ken, 305-0006, Japan <uit oonpu@hotmai l. com > RubyCampos,MBM'95: Hi everyone.Thanla for the info on the reunion in March 2000. \[e'll check if we can make it. \We'rebeing transferredout of Connecticut and into Nebraska for the next 2-3 years. Our addressrhere:3646South77th St., Lincoln, NE 68506, USA. Tel. and fax to follow. Fmal:"<rubycanpas@bigfot cnn2 It's an emailforwardingservice, so I get my email regardlessof what provider I am using. I'm surea lot ofyou guystravela lot like us. and a combination of Bigfoot and an internet e-mail likeYahoo and Hotmail keepus "undisruptedly." connected '95: Dino Nilo, MBM Isabelle,Alex and I are still living inJakarta,Indonesia,amidst all the political, economic,and socialupheavals.Ir'san exciting time to be living in Indonesia right now. The air is thick with the atmosphereof change.Of coursethereare someanxious and nervousmoments,especially when we evacuatedJakartain May 1998. Looking back,that was an exciting pre-dawn dash to the airport although we were scaredsh*tlessat the time. Presently, we are in the processof moving to Brussels,Belgium. Not as adventuroussounding, but probably a good changeof pace for the family. If the paperwork gets done efficiently, which neverseemsto happenin Asia,we areout of hereby midOctober. After a brief stop in Singapore,we will be in Manila for a quick holiday. How I wished we had more time ro

as his other BJ Alora divideshis organizing asidefrom timebetween ICCPandhis businesses, Spoofs. ChowKingfranchise. StellaJaro haspractiMei Mei Bauzon is he woddwith probably stillthemanager callytraveled 4. lmaginewin- herbnss,a formerPresiofGlorietta dow shoppingand trying dent t his staffon his outthelatestandthebest busi, s trios. eatingplacesin townas Nilo Rodriguezis partol yourjobdescription ! Northwest Airlines'new MeeraBendreisVPat CFO.Hassomepersonal of hisown LarkspurCapital(New achievements Yok)andonoccasion, she (you'llhaveto askhimlor and Sanjayhavebeen thejuicydetails). flownby heremployer on RajivShuldais a new jet. thecorporate parent, besides beingavP Vicky Betita is now atCitibank. CFOandmemberofABB Joser Santos is Power'sExOom.Nope, helping buildthe city of not pregnantagain- but FortBonifacio, tomonow everyone'scatchingup practically ingand establish withherl runninga transpoftcomCharlleDoblescounts panyas itscFo. publishing and events

Arnold Bengco &Trichie

(&Arlene) YetMalixi

Bernardo

(&Chepps) Rolex Marcelo

(&Pinky) Eric Buenaflor

Mehul Maru &Myla Munoz

(&Joyce) Noby Cabanero

(&Mia) Mike Miranda

Ramos &Dana Cordero (&Angeli) Andoy Nong Nong Calanog (&Eric) JoyCaraet

Bendre Murdeshwar &Meera Sanjay

(&Polly) Rina Puno & Ram Chandrasekharan Tuan Wei&Hazel Labasbas Priya Gopalen Queek (&Diane) Santico (&Dadang) Vinchy Damiri Sartika (&Gina) Dobles Charlie

(&Beth) Joser Santos

(&Norbert) Estrada Sylvia

(&Roman) Tinsay Sally

(&Jose) Faustino Jolene

(&Loren Esposo) Joonie Tolosa

. (&Myling) EricHernandez

(&Chona) Pao Ventura

(&Renvy) Gae Limsiaco

(&Cecile) Mimick Vergara

(&Arnold) Joan Limson

(&Christine) Mike Yap

PamAmorcs is now a buddingTV commercial model. Watchout for her PrudentialifeTVad. Herbie Arabelo is slowlywigglinghis way into politics and the showb'izindustry(aren't fteythe samenou/?). Rina Azcuna is the glorifiedchaperoneof her PBA team, but enjoy buzz, mornents of shourbiz

JohnA&GigiAquino Amold& TrichieBengco

thankstothem. RarffyClernenteisnotonly a buddingsinger,but also has the best karaoke in hishousethat equiprnent couldgive lO, Octaveand family(takenote, whatever type)KTVa thewholesome runfor itsmoney. MobinaHasanis,believe it or not,teachingBBAand MBAclassesinanAustralian &AmericanUniversity.

\Gt&ArleneMatixi

Noby &Joycecabanero I["-:T:ffiH:-

Joy & Ericcaraet Slvia& NorbertEstrada

Abk shankar

&Lorie Louie Ganano Eric& MylingHemandez

!al'^a^s,ni\ lfta Pao& ChonaVentura

nr.a;enny{acaffi'-Hil*il"" Rolex & CheppsMarcelo

DUBAI MobinaHasan AlokShankar GER['ANY Vikraml-amba }IONGKONG RohinaBandari Mei*aGutyani AshishMalhotra ShokesRammohan Vikas$harma JoseXa/ier MAI.AYSIA Rajesh Kdshnamufthy MANII.A DiggyDey

MehulMaru RajivShulda PORTUGAL JoleneFaustino SINGAPORE Vilos Raipal SridharRama*swamy (soonmovingtrcMalaysra) ArnoldBengco USA MeeraBendre(NY) Terede Leon(NY) JoanUmson(l-A) (CONN.) SanjayMurdeshwar CatfryRequesto(NY) (NY) Sawahaney Gagandeep l'lormanTilos(VA) (CA) JoonieTolosa

spend so we can get together and have a few drinks and maybe have a round or rwo ofgolf, But, as Manette has graciously offered, we extend an open invitation to all batchmares stop by and visit us anytime you happen to be in Brussels.'W'e'll only chargeyou half rhe going hotel room rates (ha-ha-ha :). Here's a picture of my family raken last December- just so you have something to look for us by in the suburbs ofBrussels. Cheers! <idnilo@ibm.net> Mela Chupungco, MBM'95: There are as many ways to achieve it as there are to skin a cat, as they say.I'm talking about the abiliry to think on one's feet. For some it is something of a birthmark, a gift to use wisely or wantonly. For orhers it is a birthright, to be nurtured and honed. For me it is the culmination oF an education pursued with hard work and dedication, to be applied and shared, to cherish for its rewards, to take up the cudgels with for its challenge.The most enduring value an AIM education bequeathed to me? The confidence - real and tried true - that I can make a difference. <mek@aim.edu.ph> Manette Bernas Boesgaard, '95: MBM Thought I might drop a line to say hi as well... H e l l o f r o m C o p e n h a g en , Denmark! Just came back from my holidays and its quite a treat to get this kind of mail. \fell, a brief update... Lars and I are doing fine. Two years in this country has made me a lover of beer, pork and red wine (though I have to work on my volume capacity * it does not take much to get me red on the cheeks). Any of you cross the Nordic borders... your welcome at our little hut. Med venlig hilsen, Manette

Bernas-Boesgaard

<mab@nauision.com> Ted Sumulong, MBM am currently with

'97: IBM

Philippines in Marketing and Sales.From my end AIM and all '97 batchmates, all my MBM the researchstudies that would fit in all the hard disk I can get my hands on. Lest I sound like the robot spokesman from Silicon Valley, all are wellinformed to know that the best thing I like about the Information Technology businessis CULf URE. Believeit or not, all roadsin the information super-highway leads to the same informed democracywe all strive for.. Two Asian Manager staffbrs ambushed Hershey Baluyot, '97, on her way to work MBM with two ponderous questions and here's what she tossed back at us: Q What is the most enduring knowledge or philosophy that you feel you acquired in your education at AIM? A. That you workwith people first - and second only with tools, machines and abstractions. What management a. education coftcept, beliefor theory haue you since proued right or urong? A. Becauseof or despite the i m p l i c a t i o n so f t h e p r e v i o u s question, the bottom line must then be and always be, people. Tommy Reyes, MBM'97: Greetings to all friends at AIM and batchmates the world over: Here's to a great new century and may this be an even more fun one than the last. I am now the Key Accounts Manager for Nabisco Philippines Inc.'What do you say to a night out on a roaring reunion and talk about old times? Shankar Raman, MBM'97 : I am working as a consultant in the Singapore office of a management consulting company called Towers Perrin, a global managemenr consulting firm in helping orwhich specializes ganizations improve their busi-

nessperformance.Specifically, human regeneralmanagement, sources,changeand risk management,employeebenefitsand re-insuranceconsulting. \We have 8000 consultantsworldwide and have offices in 32 countries.The lastproject I was i n v o l v e dw i t h w a s a r e e n g i neeringjob during whereI got to work all overSoutheastAsia. I am currently working on a posr-merger integrarionProjecr here in Singapore,so anyone travellingthis way give me a call-322669. Nito Lopez, MBM'97: There'san entire group of us AIM alumni here in Dole and we are solidly behind our comPany to keeP it a strong contenderin the industry.\Wed

like to keep in touch with the AIM family and we appreciate this new venue- it would seem old-fashionedin the age of electronicmail, but actually theret still nothing like the feel and texture and accessibiliryof print media. Email is amazing, ! but it canalsoconk out on you. Keepin touch and I'll spreadthe new alumni network: <nlopez@doleasia. com>PS. for what'sit worth, I do havea couple of tomesto tossinto the lifetheme forum. One, work is what keepsus going - it is our selfworth and esteem.It is what we leave and bequeath to the world whenwe aregone. Family is what holds us together,our sourceof inspiration. And finally, the future is what you _ plan for. It is what you do today t h a t m a k e s o r b r e a k sy o u r future... Arup Maity, MBM'97: I have starteda new realestateconsulrancy company with my officematesfrom Landcoaswell asRoy Golezfrom MBM 99. I am the Senior/Managing partner strugglingto make it work, with a lot ofhelp from the group (weare 12 in the company)and ' our first project is the Luneta

'Waterfront Marina (behind the grangstand).The name of the companyis LandExcelConsulting. W'edo realestare-relared as well as all kinds of consulting proiectsthat requirestarr-ro-finish attention.If it is neededI cansendyou a copyof the Company Profile (and then may be you canreferus to someclients?) Marc Singson,MBM '97: I dont know if this is newsor if it would be somethingto include in TheAsianManager,butl am currentlytakinganotherMasrers degreecoursein BostonUniversiry. I am taking a Mastersin Public Health with concenrration on Health Services.I will be graduatingon May 2000. I wonder where my batch mates are?I'll keep you guys ar AIM postedon the sryleof education hereif you keepme posredon my batchmates. Hazel Sangalang,MBM'99: Since ClassNotes is a first for TheAsianManager,it might be timely to write aboutotherfirsts. How about first jobs for starters?The MBM 99ers,barelysix months out of graduation,are on their first attemptsar making a differencein their respecrive enterprises and organizations. Quite a few were successful checkingout the job market in the United States. Gaurav Malhotra has joined Deloime and Touche Consulting, Kaps Kapur will be basedin New York with Chase Manhattan. and Anand Batepati is doing projectswith the W'orldBank in \TashingtonDC. I heard that Ninan Thomas will be transferringto the USA officeof Motorola. Also now basedin '99ers the US are pursuingIT, (and related)careers,including Bharat Badrinath who is with 'Vhynot Creations,Abe SyCip with CambridgeGch Partners, Dipesh.Mainiwho is with Cisco Systems,and Amit Chaudhry who is with ChicagoHCLGch. The last time I heard from

SanjaYrJ0'agle,he and wife Arti Pandit werealsoin the USA; I'm told Vivian Chua, Mylene Ulama and Rohit Mehra arealso working there. Two are in Singapore; Balaji Boovarahanis with Frost and Sullivan and Prateek Madan joined Credit Suisse. Sai Athreya is also now basedin Citibank, Singapore,aftera brief stint with the bank in Manila. DannyOtanesis in Dubai, UAE with a third parry logisticsfirm called Gulf Agency Co. HG Yudihishter on the other hand, is with Nortel Networks in France.Returningto be basedin India areVinay Hebbar (Arthur D. Little), Murty Shahpurwala (family business), Sunil Talloo (CambridgeTechPartners),and Amit Vasudev (Citibank NA India). Pinky Duong has also returned to her orevior.rscm-

ployer, the Vietnam Central Bank.A few of the overseas srudentshaveopted to be basedin Manila, including Gaurav Agarwal who is with Northwest Airlines, Jojo Das with Caltex Philippines,Mohit Misra at \Tatson \Wyatt, Amit Somaiya at Mobil Oil Phils.,and Aditya Vir with S&G International Consulting. Rejoining their sponsor-employers are Tetel Fernandez (Bankof the PhilippineIslands), Irene Castillo and Rinna Ramos (Citibank NA), Armand Barlis (Solidbank). 'i7e also had our own batch of PMA-ers, including Jun Bas (Philippine fu-y), Conrad Dieza(Presidential ManagementStaff),Jay Divino (Philippine Navy), and Gary Fallorina (AFP-RSBS). Returning to SGV & Co. are Dinty Cauan, Em Cunanan,

CMBANK AmoldBengao GaeLimsiaco RajivShukla CintySantos

ZUELLIG EloAlilio JohnAquino MikeMiranda DesiUdasco

FABERCASTEL(rdna) Aseerrr Dostri George Paul

ABNI-AMRO SoniaBatac QffiiaSadang EricBuenaflor NobyGabanero

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ClobeTelecom Investment & CapitalCorp.Phils. KraftFoocls Phils. Dole,$iaLtd. American Inrernadonal Group AyalaLand,Inc. Maynilad\ilaer Services ICCP Abacus Seeurities DiarnondIabs ING Barings Deloitre &Touche RizalCommercial BankingCorp. UnisysPhils. All /sia Capital Danlexkbs IntelPhils. BlueCirclePhils. RCBC Eli tilly Phils. ZuelligPharma SGV& Co. Dole.Asia Ltd. UnitedCoconutPlantenBanL Abacus Securities UnitedPucelService ,ltsiatrugBank I"andF.rcel Consulting Avon

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Ileto James JBJimenez DaydayJoseph RickLaig DexterLee EricLim ButchManingat EmilMoralm NapNg GonzoOcampo RiclryOcampo JobOrquina JedPantig PauickPuungao ElleryPaulino Mia Polintan JulikPranaa MarlaPulido RoeQuirmbao RobbyRamos' JaySadorn lawr See \4cki Tan VivianTan TanchTaachoco VegieTranco JayTulao BeniieUy AlonaVugas

GlobeTdecom RCBC SGV& Co. [,1iLilly Phils. OgdenEnergy IBM All.A'siaGpital DTI/Universiry of Sto.Tonu SGV& Co. ArgosyPartners MayniladWaterServices L{aynilad,DeIa SalleUniveniry Infoscape MartinandCo. James HydtoQuebec EdwardKellerPhih Alcatel RCBC lsiatrustBank Bankofthe Phil.klands lnrclMfg. Phils. Sratexpo*Asia Pioneer Allianz GlobeTelecom CitibenkNA Dept,of TiadeandIndusuy RCBC IntelPhils. MayniladV/aterServices Aadersen Consulting

Benette Daplas, Martin Guantes,Vicky Lee, Beng Panganiban and Rica Quial. Lilanie Magdamo has rejoined the Dept. of Finance,while I am now backin AIM. Someopted for the entrepreneurialor familybusiness route, including Osler Fajardo, Pris Cados, Argie Esguerra, Mike Lim, Joey Reodica and Steve Yau. Peter Huang set up an IT consulting firm called KnowledgeOnline Inc. with severalpartners. A trickle decidedthey want more school. Raj Solanki is rep o r r e d l ys t u d y i n gi n B o c c o n i Italy, Prashant Balaji is doing advanceRisk Managementin New York, and Nonoy Kato is in Tokyo for studies and business.Tina Lopez recently retutned from the Asia-Europe Programat Institut d'Etudes SciencesPolitiquesde Paris. Gino dela Concepcionis now with PhilcomMoney Services Inc. The last I heard from Paninder, he was finishing off his MBA at the De La SalleUnivefsiry. Other firsts are weddings after graduation. Bird Cristobal and JasonCabreragot married to their respectivegirlfriendson t h e s a m ed a y s o m e t i m e i n August of this year.Scheduled soon are Ria Sanchezwedding to John Januszczak,a Canadian IT consultant,in October,Myra Laforteza'swedding to longtime boyfriend Jojo Rondaris (MBM i97) in December,and my wedding to Eric Yaptangco, anotherIT/Systemsconsultant, in November,alsothis year. zua plans to migrate to Toronto, Canadaafterher wedding,while Eric and I arerelocatingto New Jersey,USA by the end of the year. Furthermore,Pris Carlos and Randy Eustaquio (MBM 98) havealso set their wedding aroundthe firstquarterof2000. In casecertain factsand figures are inaccurate.kindlv inform

inform TheAsianManager,give me a call, or drop me a note at <hazelcs@aim. edu.ph>

MM It suddenly dawned on me that we're the classwith the most graduateswho went through the AIM bureaucracy. It started with Mab Santos, who was the AIM Controller, then. The last time we met in Jakarta (1996), he was the Commercial Director of PT, ASEAN Aceh Fertilizer which plant is located in (hold your breath!) Lhokseumawe, Aceh, Indonesia. This is followed by Nishi Mukherji, our Distinction graduate who taught in the MBM. He left AIM last year to join Oberoi Hotels andwill rejoinAIM next year. Nishi is credited for bringing more Indian students to AIM. I am the third after capping my career in HR, now in placement and alumni services. The fourth by affiniry is Tony Abalde, who together with Pilar from Admissions, are now basedin Seattle,\Washington. In Jakarta,'too, I talked to Zaini and Tony Celis over the phone. The former is the Gen. Manager of the Indonesian branch of Maybank. while the latter is a finance head of an Indonesian conglomerate. Our lone Indonesian classmate. Ansyori Bachri is with Bank Indonesia,whom they regularly meet in rdunds of golf. A month ago, in a tlte-a-ty'te with Jomai and Rudy, we Iearned that Jomai Parroco, SA President then is now SalesMarketing Manager of Manila Broadcasting Company. Rudy Kintanar, our class President, owns and managesa number of companies, among them S e n s o m e dP h i l s . ,l n c . , a m a j o r

supplier of ophthalmic products. Thlking of ophthalmic, Kong is

of the Eppie's garments fame. Isagani Daba heads one of the

the general manager of CIBA Geigyt (now Novartis) ophthal-

biggest cooperatives in Cagayan de Oro. Butch Tan is a business consultant. Nestor Pestelos is the UNDP ChiefTechnical Adviser in the Provincial government of Honiara, Solomon Islands. -Noel Royandoyan, MM'87

mic planr in Batam,Indonesian. \7e once chancedon him in Manila. Also with us rhen were Tommy Chua, a street smart ent r e p r en e u r , who owns Labelworld Philippines and Nestor Co, an entrepreneur par excel-lance.'Wemissed Steve Bal-con, who owns his real estate businessand currently Presidenr of Rotary Club of Biak-na-bato and Mario Chan, who was away on a business venture. At the homecoming the year before, we met Faustino Feliciano, the banker, and Minda Ledesma, ouf accounting exPert,the other half of Alba Ledesma (an acc o u n t i n g f i r m ) w h o a l s o s i r sa t the board of PICPA.. Ronnie Almero, our NPC guy, is the Senior Project

Hi, this is Mohamed Hassan '99: Akhtar, MM Looking out to invest in Bangladesh?I m the man to call. I am currently the Executive Officer for Credit Operations at Dutch-Bangla Bank Lrd. Our head office is in the capital, Dhaka. I enjoy my work immensely, and although my landing this job was no picnic, I think it was inevitable. You see, my lavorite subjecr at AIM was (MM 99) was Man-

Manager of CRC Environment R i s k m a n a g e m e n ri n I r v i n e ,

agement of Change, and as a banker working for the best playerin the industryhere,I can say that I have a direct involvement in the economic progress

California, USA. We lost contact with Eppie de los Reyes

of my country. This kind of work requires, among others,

mental endurance and strength of character,rwo characterisrics I inherited from my mother, who supported me untiringly, and Professor Azanza, who inspired me. Still on the subject of memories, does anyone know the whereabouts of the following batchmates? Mr. Edison Bako, Mr. PhamThangand Mr. Rafi Hidalgo? Nice to hear from AIM friends. You guessedit right-I'm tied up with supply chain management and ERP orientation in Life Saving products. As you know I'm with J&J right now and I have been traveling a lot. I meer 20 new people every day. I think of them for the commonality. Anyway, I am presenting a seminar for the international businessgroups organized here. I just had a meeting with the new AIM president, Mr. Roberto de Ocampo, as well as with Prof. Borromeo and Prof. Miranda at a recent alumni night. It was good to meet old

AAAIM Board of Directors Oath Thking, July 27,1999.L to R: Co-chairmanAIM BOT-BOG'Washington SyCip, RenatoMartinez (Chairman), BienvenidoAraw (Vice Chairman), CaezarEvangelista(Secretary),Venie Rafiosa(Tieasurer),Augusto Bengzon(Director), EnriqueHernandez(Director),Ma. Corinna Parungao(Director),EduardoBafraga(Director),JoselitoYabut(Director),Ruperto Nicdao,Jr. (Director),Bernardino Ramos(Director),VellingtonTy (Director),DulceCasaclang (ExecutiveDirector), JoseMa. J. Fernandez(Ex-Officio/Adviser),Ofelia Bisnar (AIM RepresentativeT.

Since retirement I have been trying to get in touch with some A I M b a t c h m a t e s .I g o t a directory from AIM and I have written to someclassmates in the Philippines I am happy to say that quite a few have replied. Two classmates I'm keento hear from but havefailedto sofar are: Mr. Ignacio Bylon Thn Jr., of 1532-E Quintos, Sampaloc, Yen Sai Cheow, MDP'74: It's Manila and Mr. Godofredo amazing how time flies when PerezPefiasof #8 SajamaSt., you're working on improving Filinvest, Quezon City, both your trade.Beforeyou know it, from the Philippines. I'd itt time to retire!And theret still appreciateany newsfrom them. somuch more to learnlIt doesnt Here's my email address seemlike such a long time ago, yscheow@yahoo.com.m! when I was trained in building Ma. TeresitaR. Martin-Palo, construction in 1963. Those MDP'78: \7hat do I like about were fast, exciting times. In my profession?Itt challenging. berweenI specializedin arcane I'm in educationand training a r e a s i n c o n s t r u c t i o n - s u s - and time and again I am rep e n d e d a c o u s t i c a l c e i l i n g , minded that the balancing act demountablepartitions, raised describesthe professionwell. computerfl ooring, architectural The learner cornâ&#x201A;Źsqtoyou for aluminum works and the like. k n o w l e d g e ,s k i l l s , m e t h o d , Very exact, meticulous work. philosophy. But it is also One smalldetailthat goesoffthe imperativethat you learn from mark and the whole thing is no them as well - how their langood. And then theret a life to guagedescribestheir thought live outsideofwork, with family, process,how their very culture with friends,with community. informs their way of looking at friends from AIM. Keep in It is good to touch. communicatewith like-minded friends. <ramhi2h@yaltoo.com>

the world. It is in education whereit is most clearthat ideals, pursuedfor its own sake,spills over into all areasof what we recognizeasa personaliry, which, ofcourse, eventuallyspills over intb the stream of community one choosesto belong. As a pracdcing educator and AIM graduate, I would say that, through constantobservation, people in generaldo not walk their talk. But once you bump into someoneor a group of individuals who do wanr ro makea difference,you could do nb wrong by keeping an open mind. Because nine out of ten. my alternatives,methods or approachmay be good, but in concert with others they are b r i l l i a n t . < b i b b e t @d a t a serue.aim.edu.P Angelito Sarmiento,MDP' '78: I have50 yearsofreal estate experienceunder my belt, and as you know, the businessis commonly visualizedby land and meadowsand dreamhouses and buildings. In my experience, one might as well do geographicsurveywork on the barrenmoon.

I still feel that there remains vastunexploredareasofpartnerships and commitments betweengovefnmentand business, especiallybig businesslike real estate,the kind of partnerships that could improve the qualiry of life in the country. Of the many insights that I took to heart from my stayat AIM, the mostvaluablearethosethat kept the venuesof communications open berweenenvironmentand development,betweenindustrialization and agriculture,betweenthe peopleforwhom these changeswill be most beneficial and the systemthat will follow it through. In actual practice these insights demand timetablesthat taxthe soul,and more often than not the sincerepublic servantis caughtin the crossfire of conflicting interests.My educationat AIM taught me to find solutionswhereindividuals are heard and group decisionmaking still happen with minimum friction. In shorr, ro behavedemocraticallywithout getting carried away with democracy,

Enrique Navarro, PPDM'78 was top of his class. He is currently a consultant to the International Rice Research Institute (IRRI) in Los Ba6os, Laguna,Philippines.Pridein his work with the world'spremier researchhouseon the one crop that feeds continental Asia, Japan,the worldt secondlargest economy, and the ASEAN tigers, is evident in Navarrot description of IRRI's work when he dropped by AIM recentlyto deliveran invitation to his former mentors. "IWe help improve the wellbeingof presentand fururerice farmers of the world," he summed up IRRI's mission. Navarro is alsoin chargeof the Institute's 40th anniversary celebrations, to beheld on April 3 and 4 in the year 2000, with Philippine PresidentJosephE.

Estrada,asguest of honor. All interestedpaniesarewelcometo attendthe ceremonies. For more information, call (632) 8450563 lFax: (632) 845-0606.Or visit IRRIT websire ar <in@cgianorg>

Antonio M. Ortiguera, TMP'78: The most enduring philosophy I took home from AIM? To make decisionsbased on well-groundedfactsborne by exhaustive study. And the importance of values in the conductof one'slife. Money is not the end all and be all of business. Everyone is challengedto excelin whatever one does by first improving oneself.Justice and equity, honestyand fair play are basic tools of the trade.TMP put all

that I sought to achievein this lifetime into focusfor me. Itt a short course.but for me ir was an education for life as well. I am still married to the samelady, TeresitaAbello, who runs her own businesses. My childrenare in agriculture'computerservices,and my youngestis now a practicing lawyer. I am still in banking,hasbeensosince1964 when I wasfirst hired asa legal counsel.I like lawyeringbecause it developsmy mental faculdes. Keeps me on my toes, so to speak,and it is a meansto help the poor get representationin court. My thoughtson the following subjects? Monqr-money is good; more money is better, but the best money is that which is useful. Success-is everyrhing,but one has to give everything to succeed. Worh-isneithereasynor hard-work is just necessary. Famifi-is where your heart

and mind are. Th e Fu ture-is uncertain but it can be saved today. The'4sian Manager-is a tiger in the tank, ready to leap into the next century.

Mariano Un Ocampo III, '76: BMP It is interestinghow s o m e t h i n gm o m e n t a r y o n e went through ten years ago could have a lasting influence on what one does onwards. I supposewhen onet mind was setto go throughlife asif it were a chorâ&#x201A;Ź to perform, retirement would be somerhingratherser and predictable, a conclusion to a life merely endured.I was very lucky I took that courseten years ago-the feeling is still genuine, that there is always something more to learn, and thatgetting thereis half the fun. For this healthy and positive oudook on life, I owe a debt of enlightenmentand inspirarion to my favorite professor, Quentin T"" (QT). Heret to vou. Sir.

Roberto C. Uyquiengco, ABMP' 78: The lTth Advanced Bank Managâ&#x201A;Źment Programsynthesizedthe tenets that have guided me all these 1 years in my professionas a banker and manager. It is a matter of values,priorities and attitude towards life. Decision Analysis, my favorite subjecr, made me appreciate the importance of hands-on experiencein reconcilingtheory and practice, numbers and emotions, the real and the ideal. r

eqllinenILAIM Qhmni!

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