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Francis G. Estrada, MBM 1973 The First Alumnus-President of the Institute


Susan Africa-Manikan ASSOCIATE EDITOR

Sherbet Katigbak-Manalili MANAGING EDITOR

P.N. Singh Maya Herrera Rey Angeles Prakhar Sharma Thillaivarrna Selvaratnam Aloke Dasgupta Widyo Gunadi Rose Cheryl Orbigo Edythe Bautista Dainty San Jose Joel Jorge Gaviola CONTRIBUTORS

Levi Lacandula Carl Vicente PHOTOGRAPHERS

Jason Moss Fran Ng Cecil Sundiang Marlon de Leon ILLUSTRATORS


Contract Publishing & Marketing, Inc. ADVERTISING REPRESENTATIVE

J U LY - S E P T E M B E R 2 0 0 6




n Francis G. Estrada, MBA 1973, Assumes AIM Presidency n AIM applauded at Being Globally Responsible Conference n AIM Achieves ISO14001 Re-certification n Aim President Francis Estrada Conducts Dialogues with Alumni Batch Leaders n AIM Ties Up with Universiti Kebangsaan Malaysia n Alumni Newsmakers n Estrada, Limon and de Claro Honored at Triple A Club Testimonial Dinner n New AAAIM Board Of Directors Inducted n AAAIM-Philippines Donates to the AIM Alumni Leadership Fund for Learning Space

Maritess Aniago-Espiritu Jei Javier Kalinisan Khristine Revilla Voltaire Masangkay Lourdes Co







The AIM Alumni Leadership Magazine (AIM Leader) is a quarterly publication of the Asian Institute of Management with editorial office at the Alumni Relations Office, Asian Institute of Management, 123 Paseo de Roxas, Makati City, 1260 Philippines Telephone No.: 892.4011 locals 331, 540 and 533 Telefax: 893.7410 | Email: aimleader@aim.edu Copyright 2006, AIM Alumni Leadership Magazine. All rights reserved. Reproduction in any manner in whole or in print, in English or other languages, without written permission is prohibited.


n Gourmet: Winged Snacks n Travel: Indonesia n Bookshelf: Seeing Fuschia on the Peso “The Peso Exchange Rate: Why Are We So Poor?” Book Review



FAIM Staff




cover story


Datuk Ir. Mohd Annas Hj. Mohd Nor.




n The Business of FIlipinos in the Age of Globalization n The United Nations: A Market Analysis of Diplomacy n Strategy and Change: The Marketing Communications Industry



n From Management Games to the Enron India Project n Life as an Entrepreneur Special Feature: AIM Commencement Exercises...........................................24 On Change and Things that Should not Change .........................................................26

ISSN 1908-1081

Cover Painting by FRAN NG


alumnileadership spotlight


n Ricardo Pascua, MBM 1971: The Salt in the AIM Dish n Jesli Lapus, MBM 1973: His Own Tough Taskmaster n Bun Bunan E.J. Hutapea, MM 1980:



At the Bottom of an Upside Down Pyramid

n Marlon Young, MBM 1979: Common Sense, Discipline, Values, Balance


AIM 37th Commencement Ceremonies Program Feature: AIM Placement Boosts Up.........34 Alumni Associations: Gathering IAAIMI ....................36 AIM Alumni Fund .................................................................52 Class Notes ...........................................................................54 End Note ................................................................................57

Leadership is good discipleship: to be led, empowered, and driven by the spirit to serve, not to be served...

57 24

I AM PRIVILEGED TO ADDRESS YOU, MY FELLOW alumni, and the AIM community as President of the Asian Institute of Management. More than thirty-three years after receiving my MBM (now, MBA) degree, I have been blessed with an opportunity to serve an institution that has played an important role in my life. In no uncertain terms, the challenge is to define and occupy AIM’s rightful place under the sun. AIM is an outstanding institution. It consists of many exceptional, dedicated and very capable individuals within its ranks of faculty, students, staff and a worldwide alumni community of more than 30,000 men and women. The Institute is proud to have contributed to the development of many outstanding leaders in the Asian region. It is a legacy we take seriously—and one which we are determined to preserve. The senior manager’s life in a rapidly globalizing world has become extremely demanding. Not only does he/she have to deal with an often-Darwinian competitive environment, he/she must operate effectively in the face of many uncontrollable variables Moreover, he/she must contend with the need to produce short term results while at the same time ensuring the sustainability of his/her enterprise. These challenges reinforce AIM’s raison d’etre. I am eager to hear your views on how best to implement our mission for the benefit of the future generations of graduates and, of course, the Asian region as a whole. In this context, the President’s Advisory Council, consisting primarily of successful alumni, is being organized to counsel the President on issues ranging from strategy and policy, to faculty development, relationship with the business sector, and the desired “AIM Experience”. I welcome a much more substantive involvement by the alumni on these key issues. As an important and growing stakeholder in the Institute, AIM has allocated a third of the seats in its Board of Trustees to representatives of the business sector—most of whom are alumni. It has also, for the first time, elected an alumnus as President of the Institute. I look forward to meeting you, our alumni, in the coming months. A series of small get-togethers among representatives of each class is currently being organized for this purpose. I am eager to tell you where the AIM is today, solicit your views about the Institute and personally, seek your support for the future. With your active involvement, I am confident that the future of AIM is bright. After all, we live and work in the most economically (and arguably, culturally) exciting region in the world. The need to prepare professionally capable and socially responsible leaders and managers for Asia, will be even more important in the years to come. I thank the many individuals who have already expressed their commitment to support the effort to re-invent our beloved AIM—building upon the strengths that have been bequeathed to us. The mission is daunting but it is clear. More importantly, I am convinced that the strength of the AIM community is only beginning to be felt. I am confident that our community will prove more than worthy of the challenge. I enthusiastically look forward to traveling with you on this most exciting of journeys.





THE AIM ALUMNI COMMUNITY is proud and privileged to have, for the first time, a fellow alumnus to lead the Institute. Mr. Francis Estrada, MBM 1973 was proclaimed the new AIM President in simple turnover ceremonies held last May 16 at the AIM’s Zen Garden. This marks a milestone in the history of the Asian Institute of Management, as the primary responsibility of moving the Institute forward rests on the shoulders of an outstanding product of the school. I have to agree with the congratulatory message of FAIM Chairman Datuk Annas who remarked that the Board of Trustees honors the alumni network by their selection of the first AIM alumnus-President. President Francis has many wonderful memories of AIM. His leadership and acceptance of the position was inspired by his love for his school. His class continues to hold monthly reunions thirty three years after graduating from AIM. As part of the legendary Class of ’73, he is hopeful that his classmates and fellow alumni, regardless of batch or program, would step forward and join hands with him in reinvigorating the Institute, and to propel his vision: “We want to become the graduate management school of choice for anybody who wants to operate or do business in Asia”.

Mr. Estrada has been an international investment banker and financial entrepreneur over the last thirty-two years, twenty-two years outside the Philippines. He co-founded and served as President and CEO of the international investment firm, William E. Simon and Sons (Asia); he co-founded and served as COO of the international merchant bank, Asian Oceanic Group; he led the turn-around and served as Managing Director of First Indonesian Finance and Investment Corporation, the merchant banking subsidiary of the Indonesian central bank.  With AB/BSBA undergraduate degrees from De La Salle University, Mr. Estrada graduated “With Distinction” from AIM with a Master in Business Management (MBM) in 1973. He completed the Advanced Management Program (AMP) at the Harvard Business School in 1989. In the same year, he was conferred the AIM Alumni Achievement Award (or Triple A), the highest recognition given by the Asian Institute of Management to its outstanding alumni.  AIM is in very good hands indeed. But our president will only succeed as long as we are there to help him. Share your views and he will surely listen. You may contact him through us at aimalumni@aim. edu. When he visits your country, we hope that you can be there. When he asks for your support, we hope that you can say yes. After all, the success of AIM can only be ours as “co-owners” of the Institute.

“AIM is in very good hands indeed. But our president will only succeed as long as we are there to help him. When he visits your country, we hope that you can be there. When he asks for your support, we hope that you can say yes. After all, the success of AIM can only be ours as “co-owners” of the Institute.” It is a vision that should ripple throughout the AIM community around the world. It is a vision that we should support and uphold as we rally behind the flag of AIM, and be the leader in management education in Asia. Even now as he meets with his fellow alumni to share his vision through a series of town hall meetings called “The President’s Briefing”, his energy is indefatigable, his enthusiasm and fervor consistent. Five successive Fridays meeting with alumni leaders of thirty six different batches would perhaps enervate the uninitiated. But his consultations with fellow alumni does not stop there. He will be visiting the alumni communities in India, Singapore, Indonesia and Malaysia in the coming months to share the vision and continue these dialogues. Other alumni communities will be reached by videoconference. Inspired by touching base with members of his own community, he is always keen to listen to the views of the best and the brightest. Judging from the very positive responses from the various alumni batches including the Indonesian alumni last Aug. 25, it is clear that the vision and strategy will be embraced by the alumni network as well.


A I M A LU M NI LEA D ERS HIP M AGAZIN E J u ly to September 2006

THANK YOU! As we welcome our new president through the cover story of this issue, we would like to thank the many who have supported this publication with your sparkling insights and articles. Our gratefulness can never be measured to all alumni who have contributed to our magazine in one way or another. And to those who have not yet shared their news, articles, books, views, and thoughts on management, leadership, spirituality, and all topics which will interest your fellow alumni, please do not hesitate to send these to us for publication in the succeeding issues of your quarterly magazine. We also hope that you can continue to support us through advertisements, as we seek to make this alumni publication self-sustaining through your ads. Please do contact us at aimleader@aim.edu. In this new era with a new president, we look forward to your unwavering support for AIM, as we continue building up an enlivened and enlightened community of alumni members from around the world. God bless!

Greg Atienza Editor-in-Chief, AIM Alumni Leadership Magazine Executive Managing Director, Alumni Relations Office Secretary General, Federation of AIM Alumni Associations, Inc.
















receive your free copies, all alumni are encouraged to contribute articles and Class Notes to aimalumni@aim.edu so that we can include you name in the AIM Leader distribution list. -Ed.

Manila next, I would like to address the MM Class, which I had done once.

I just read the latest issue of the Alumni magazine. Pretty good work.

I went through the recent issues of the Alumni Leadership Magazine and found a new young look with a new voice. Dynamic and trendy, this seems like a welcome change in tune with the changing context. Much as I liked it, I would also want it to be more international.

Raymond Ledesma ME 2001

alumni AT PLAY

AIMers are as powerful a force at play as in the boardroom

5/26/06 5:05:23 PM

Great job on the new magazine—very well packaged, has great content. Keep up the good work, and congrats to your staff! Ricardo A. Lim, Ph.D. Associate Dean, GSB

Congratulations! I just received the magazine and it looks great! Greater still that pose on page 3 of the Editor-in-Chief. I am not clear on subscriptions. As a graduate of MBM ‘75, am I entitled to a lifetime free delivery and supply of the magazine? Or must I pay for them and this issue I got is the only item free?

Saan mo ba pinapa-print ito? Magaling, eh. (Where did you have this printed? It’s good.) Rey Angeles MBM 1975

Hi Rey! AIM degree program graduates (MBM/MBA, MM, MDM, ME, eMBA) will still get their copies for free (as long as they have their home addresses updated with us). However, non-degree graduates are encouraged to subscribe (see page 10 for the subscription form) since alumni publication fees were not built into their tuition. To further guarantee that you

It’s a big improvement from the old publication. I enjoyed reading articles written by AIM graduates, and about fellowalumni as well. Danny Otanes MBM 1999

Alumni At Play certainly lives up to its name! Compared to the old Asian Manager, this magazine issue offers a lighter fare thus a breather from the usual stuff we get. Aside from keeping us abreast with our batchmates and other alumni, it reminds us of the fun side of life­­­—a side that is often forgotten. To the editorial team, congratulations for a job well done!!! Ginny Lomarda MBM 2003

I have just received the Leadership Magazine. It is well produced and quite readable. Please keep up the good work that you are doing. When I visit

Dr. P.N. Singh MM 1975

Prakhar Sharma MBM 2003

My honest opinion about the AIM Alumni Leadership Magazine is that Greg Atienza did a very good decision in insisting to reformat our previous magazine. The new magazine is more alumni friendly. We could relate to the news and articles better. I feel good reading the magazine again and again from cover to cover. I’ve heard a lot of good comments about the magazine, like the one of Professor Nieves Confesor. She said that she would like to really congratulate Greg Atienza for a marvelous job well done. Others said that “at last there is magazine done by alumni for the alumni.” My heartfelt congratulations!!! Make it a fresh-looking magazine always. Coratec Jimenez MDM 2002

AIMLeader invites all AIM alumni to contribute articles, Class Notes and Letters to the Editor to aimleader@aim.edu or aimalumni@aim.edu. 4

A I M A LU M NI LEA D ERS HIP M AGAZIN E J u ly to September 2006


Francis G. Estrada, MBA 1973 Assumes AIM Presidency


RANCIS G. Estrada, MBM 1973, the first AIM alumnus to become President of the Asian Institute of Management marked his first day in office last May 16, 2006. A simple turnover ceremony at the AIM Zen Garden marked the commencement of Mr. Estrada’s term as AIM President. Former AIM President, Dr. Roberto F. de Ocampo, presented the AIM mace to AIM Board of Trustee, Ramon R. del Rosario, Jr., who conferred it to Mr. Estrada on behalf of the AIM Board of Trustees and Board of Governors. The ceremony was well attended by AIM faculty, students, alumni, guests and staff. Congratulatory messages were delivered by representatives of the AIM community: Mr. Alex Tanwangco, Chairman, AAAIM on behalf of the alumni community; Dr. Francisco L. Roman, Associate Dean, Asian Center for Entrepreneurship (ACE) on behalf of the faculty; Mr. Abhra Dam, MBA 2007 on behalf of the students; and Ms. Mayumi Juris Luna, Executive Managing Director, AIM Human Resource Services on behalf of the staff. Mr. Greg Atienza, Alumni Relations Office Executive Managing Director, delivered the invocation, as well as the congratulatory message from FAIM Chairman, Datuk Ir. (Dr.) Mohd Annas Hj. Mohd Nor.

Mr. Estrada has been an international investment banker and financial entrepreneur over the last 32 years. He co-founded and served as President and CEO of the international investment firm, William E. Simon and Sons (Asia). He co-founded and served as COO of the international merchant bank, Asian Oceanic Group and led the turn-around and served as Managing Director of First Indonesian Finance and Investment Corporation, the merchant banking subsidiary of the Indonesian central bank.

With AB/BSBA undergraduate degrees from De La Salle University, Mr. Estrada graduated “With Distinction” from AIM with a Master in Business Management (MBM) in 1973. He completed the Advanced Management Program (AMP) at the Harvard Business School in 1989. In the same year, he was conferred the AIM Alumni Achievement Award (or Triple A), the highest recognition given by the Asian Institute of Management to its outstanding alumni.

A I M A LU MN I L E A D E R SH I P MAGA Z I N E Ju l y to Septem be r 20 0 6



AIM applauded at Being Globally Responsible Conference

AS PART OF THE SOCIAL Entrepreneurship in Asia and Europe Project, the Asian Institute of Management sent Prof. Jay Bernardo and a delegation of four MBA students—Pranay Bhargava, Analisa Fernandez, Yumiko Hatori and Drupad Upadhyaya—to the Being Globally Responsible Conference (BGRC) organized by the China-

Europe International Business School (CEIBS) in Shanghai, China from June 9-11, 2006. Among others, the conference provided a venue for a cross-cultural exchange of perspectives on corporate social responsibility (CSR) and social entrepreneurship (SE) among MBA students from different parts of the world, with the aid of

resource persons on CSR and SE. A highlight of the conference was when AIM was given a round of applause as one of the speakers cited a survey that showed AIM to be among the top 20 business schools in the world and the only one in Asia with serious initiatives in social entrepreneurship and corporate social responsibility.

AIM Achieves ISO14001 Re-certification THE AIM ENVIRONMENTAL Management System (EMS) Team held a thanksgiving mass officiated by Fr. Edmundo M. Martinez, SJ on June 9, 2006 at the AIM chapel for successfully attaining ISO14001 re-certification and in celebration of the World Environment Day last June 5, 2006. “The mass is also our way of asking God to specially bless the AIM and ACCM rank and file operations staff, including our agency personnel and subcontractors. As the direct handlers of our various EMS programs and activities, their efforts at managing, and continuously measuring and monitoring our environmental performance have ensured that the Institute lives up to its ISO14001 commitment as a socially responsible corporate citizen,” said Ms. Mary Grace Tirona, AIM EMS Overall Coordinator.



HE FIRST OF A SERIES of meetings of AIM President Francis Estrada with alumni class leaders commenced last July 7, 2006 at the AIM Conference Center in Makati City. “The President’s Briefing”, headed by the first alumnus to serve as AIM’s president, is an opportunity for Mr. Estrada to have regular dialogues with the alumni and to solicit their invaluable inputs in an effort to reinvigorate the Institute amidst an intensely competitive global environment. Mr. Estrada presented to the alumni the value proposition of why graduates should stay connected to AIM, where the Institute

is today globally and regionally, the circumstances under which the Institute is operating, and an elaboration of his vision for AIM. The lively discussion between the president and the alumni focused

on how AIM can move forward to continue to be a leader in management education in the region. More than twenty alumni leaders representing the degree

and non-degree classes of 19701974 attended the first briefing last July 7. Class presidents, members of the Board of Directors of the Alumni Association of AIM, and faculty attended the forum. The Alumni Relations Office, headed by its Executive Managing Director, Greg Atienza, MBM 1983, hosted the event. The importance of AIM alumni as major stakeholders and co-owners of the institute is highlighted in these important meetings. Mr. Estrada is scheduled to visit AIM communities in India, Singapore, Indonesia and Malaysia in the coming months to continue these dialogues.

Memorandum on student exchange signed


President de Ocampo Receives Regional HR Award



AST JUNE 8, 2006, the Asian Institute of Management welcomed a delegation from the Universiti Kebangsaan Malaysia (UKM). The signing of a memorandum of understanding on student exchange highlighted the series of meetings between the two

schools. The memorandum will take effect in SY 2006-07. AIM president Francis Estrada and Dr. Mohd Fauzi Mohd Jani, dean of the UKM Faculty of Economics and Business, sealed the agreement. Witnesses to the signing were AIM Alumni Relations executive managing director A L U M N I

Lt. Col. Arnulfo Marcos, 13th PPDM (Project Planning, Development and Management) alumnus, was awarded the 2005 Metrobank Foundation Search for The Outstanding Philippine Soldiers (TOPS). TOPS is an annual search to pay tribute to outstanding examples of gallantry, competence, professionals, and integrity among members of the Armed Forces of the Philippines.

Sarita Bahety, MBA 2007, placed second in the World Bank International Essay Competition 2006. She was awarded on May 29, 2006 at the Annual Bank Conference on Development Economics (ABCDE) Conference in Tokyo, Japan. Awards were presented by Mr. Paul Wolfowitz, President, The World Bank Group and Mr. Masahisa Fujita, Professor, Kyoto University of Japan and

President, Institute of Developing Economies - Japan External Trade Organization (IDE-JETRO). Of a total of 1,950 essays submitted from 136 countries, nine winning essays will be published by World Bank. Sarita writes: “I was also invited to give a short message to the audience along with other three winners during the award ceremony. I was introduced on stage as an MBA graduate from the Asian Institute of Management. Indeed my MBA education at AIM has boosted my confidence and has helped me to structure, organize and present my thoughts in a better manner.”

named “Rotarian of the Year” by the Rotary Club of Sto. Domingo, Quezon City, Philippines. The award recognizes Prof. Angtuaco’s civic contribution, especially in the Club’s “Share a Limb” project. Using technology from Jaipur, India, over 100 indigent patients from the National Orthopedic Hospital were fitted with artificial limbs. Aside from working directly with the patients themselves, Prof. Angtuaco raised donations from as far as Korea to help finance the effort.

Prof. Francisco “Jay” Bernardo III, MBM 1993, is one of the 24 Young Leaders recognized in Philippine Graphic’s 17th Anniversary Issue (June 19, 2006 issue, page 12).

Located near Kuala Lumpur, UKM is a research university that has been listed among the 100 World’s Top Science Universities by Times Higher Education Supplement. It offers more than 170 higher degree programs and has 12 well-established faculties, four institutes, and nine centers.


Prof. Rico Angtuaco, MBA 1974, has been recently President Gloria Macapagal-Arroyo (front, center) presented the awards during the Metrobank Foundation Search for The Outstanding Philippine Soldiers awarding ceremonies at the Malacanang Palace in January 2006. Lt. Col. Arnulfo J. Marcos, PA is 3rd from left (front). Lt. Col. Marcos is currently assigned as Commanding Officer of the 45th Infantry Battalion, 5th Infantry Division of Gamu, Isabela.

Greg Atienza, AIM Asian Center for Entrepreneurship associate dean Dr. Francisco Roman, AIM International Programs director Jun Borromeo, UKM Graduate School of Business chairman Dr. Nor Ghani, and UKM Master Programme head Dr. Norman Mohd Saleh.

Sec. Jesli Lapus, MBM 1973, assumed his new post as Secretary of the Department of Education during turnover ceremonies at the DepEd central office in Pasig City, Philippines last July 28, 2006. Mr. Lapus is a former chairman of the Land Bank of the Philippines and is a Triple A awardee of AIM, the highest award given to alumni achievers of the Asian Institute of Management. He is also the Chairman of the Triple A Club Philippines. The former Tarlac lawmaker cited the need to strengthen the teaching force by providing public school teachers with a lot of teaching aids and support through distance learning, mass media and mass communications. Lapus also vowed to work for the setting up of an achievement test for high school students entering college. As Secretary of DepEd, Lapus said that he would work for the passage of a supplemental budget of P7.5 billion to augment the P 12 billion re-enacted budget for 2006. He said he would also work for the approval of a P 130-billion budget for 2007. He also disclosed that DepEd and the Department of Environment and Natural

Resources (DENR) would be signing a memorandum of agreement for confiscated logs to be donated to DepEd so that they can make school desks. DepEd is also pushing for the amendment of the charter of the Philippine Amusement and Gaming Corp. (PAGCOR) so that 10 percent of its gross sales, or around P2.5 billion a year, will go to DepEd to be used for building classrooms. Another project they have in mind is the re-launching of the Adopt-a-School program to renew the interest and support of the private sector. “My life would have full meaning if I make a little difference, if at least I was able to direct efforts towards restoring the Philippines’ world-class rating in education and literacy, “ Lapus said during his speech last July 28. He took over the reins of the department from Undersecretary Fe Hidalgo, who was officer-in-charge for 11 months. Lapus also asked Hidalgo to stay at the DepEd to help him in the huge task of improving the country’s education sector. SOURCE: THE PHILIPPINE STAR, JULY 29, 2006 ISSUE

A I M A LU MN I L E A D E R SH I P MAGA Z I N E Ju l y to Septem be r 20 0 6



From left: Jesli Lapus, MBM ‘73, Perpetuo de Claro, MBM ‘73, Edgardo Limon, MBM ‘74, Francis Estrada, MBM ‘73 and Napoleon Nazareno, MBM ‘73


EWLY INDUCTED AIM President Francis Estrada (MBM ‘73) and two of the three recent Triple A awardees, Mr. Perpetuo de Claro (MBM’73) and Edgardo Limon (MBM’74) were honored at the Triple A Club Testimonial Dinner and Dance held at the Manila Polo Club last May 18, 2006. With Congressman Jesli Lapus (AAA 1980) as Chairman of the Triple A Club Philippines, 12 out of the 40 Triple A awardees from the Philippines gathered to pay tribute to their fellow club members—Ernesto Garilao (AAA 2000), Manuel Cojuangco (AAA 2002), Alberto Villarosa (AAA 1982), Napoleon Nazareno (AAA 1992), Rene Valencia (AAA 1990), Ricardo Pascua (AAA 1993), who delivered the Welcome Remarks, Jesus Francisco (AAA 1997), Jesus Gallegos, Jr. (AAA 1998), Arturo Macapagal (AAA 1978), Roland Young (AAA 1991), Gen. Angelo Reyes (AAA 1981) and Roberto Garcia (AAA 1979), who was the Master of Ceremonies for the evening. Among the distinguished guests who graced the event were 8

Dr. Roberto de Ocampo, former President of the Asian Institute of Management; H.E. Peter Beckingham, Ambassador of the British Embassy; H.E. Tsewang Namgyal, Charges d’ Affairs of Embassy of India; H.E. Mahmudin, First Secretary of the Embassy of Indonesia; H.E. Chinh Taduy, Charges d’ Affairs of the Embassy of Vietnam; Mr. Joachim Von Amsberg, Country Director of the

World Bank; Mr. Hiroshi Togo, Chief Representative of the Japan Bank of International Cooperation (JBIC); Mr. Jon Linborg, Mission Director of the United States Agency for International Development (USAID); Mr. Reza Baqir, Resident Representative of the International Monetary Fund (IMF); Atty. Nelly Villafuerte, Board Member of the IMF; and Mr. Gilbert Teodoro, Congressman of Tarlac. The night was highlighted by the amusingly humorous testimonials by the honorees’ classmates—Mr. Francisco Alampay for Mr. Edgardo Limon, Mr. Ramon de Vera for Mr. Perpetuo de Claro, and lastly Mr. Ramon Abad for Mr. Francis Estrada. Before the program ended, Congressman Lapus, on behalf of the Triple A Club Philippines, pledged support to the Alumni Fund for Scholarships by sponsoring one deserving student to AIM’s MBA Program for SY 2006-07.

Alumni Achievement Awardees of the Asian Institute of Management

A I M A LU M NI LEA D ERS HIP M AGAZIN E J u ly to September 2006

The AIM Alumni Achievement Award or Triple A is the highest recognition given by the Asian Institute of Management to its outstanding alumni. To date, there are a total of 107 Triple A awardees from 10 countries— Bangladesh, Hong Kong, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand.

news AAAIM-Philippines Donates to the AIM Alumni Leadership Fund for Learning Space

New AAAIM Board of Directors Inducted


HE NEW MEMBERS OF the Board of Directors of the AIM Alumni Association - Philippine Chapter were inducted last June 6, 2006 at the SGV Conference Hall of the AIM Conference Center Manila. Senator Mar Roxas, chairman of the Senate committee on economic affairs and the committee on trade and commerce, led the induction and was also the distinguished guest speaker. The new directors include: Chairman: Ricardo Pascua, MBM 1971 Vice-Chairman: Ramon de Vera, MBM 1973 Secretary: Henry Tenedero, MDM 2003 Treasurer: Vitaliano Nanagas III, MBM 1972 Directors: Tomas Agana, MDP 1996 Myrna Alberto, ME 2001 Francisco Alampay, MBM 1974 Danilo Antonio, MBM 1978 Francisco Bautista, MBM 1971 Gil Genio, MBM 1986 Barbara Gonzales, ME 2001 Celso Lopez, EMBA 2003 Francisco Villanueva, MBM 1985 More than a hundred guests from the AIM community graced the event, including AIM Co-Chairmen Mr. Washington SyCip and Mr. Jose Cuisia, Jr., AIM Board of Trustees members, Mr. Napoleon Nazareno and Dr. Roberto de

Estrada, MBM 1973, in executing Ocampo. Past chairmen of the alumni association such as Messrs. AIM’s new strategic plan “that seeks to position AIM as the Felipe Diego (MBM 1973), Roberto graduate business school of choice Garcia (MBM 1973), Mon Abad among the best and brightest stu(MBA 1973), Phillip Juico (MBM dents, not only in the Philippines 197), Teddy Villanueva (MBM 1973), and Ed Bañaga (MBM 1979) but in the Asian region as well.” Mr. Pascua also noted that as AIM also lent their support, as well as develops the future leaders of Asia, AIM faculty represented by Center the wisdom for Development ... the board will support and experience Management of successful (CDM) Associtheir fellow alumnus, AIM alumni could ate Dean Fr. Ed President Francis Estrada, Martinez, Profs. MBM 1973, in executing AIM’s be tapped as a veritable reBobby Lim, Jun new strategic plan “that source, both in Borromeo and seeks to position AIM as the and out of the Maya Herrera. AIM Presi- graduate business school of classrooms. The outgodent Mr. Francis choice among the best and Estrada introbrightest students, not only ing members of AAAIM, namely duced Sen. Mar in the Philippines but in the Ms. Ofelia Roxas during Asian region as well.” Odilao-Bisnar the ceremonies. He also thanked the past members (MBM 1988), Mr. Conrado Dayrit, Jr. (MBM 1977), Ms. Elsbeth of the AAAIM Board of Directors, MacDonald (TMP 2001), Jose Ma. particularly former chairman Mr. Parroco (MM 1987), Emil Reyes Alex Tanwangco, MBM 1973, for (MBM 1979)—were given certifihis “dynamic and indefatigable leadership.” Mr. Estrada also noted cates and plaques of appreciation. that he looks forward to a deepen- Former AAAIM chairman, Mr. Alex Tanwangco will continue to serve ing partnership with the alumni with the new AAAIM Chairman, as as an ex-officio adviser to the new board, with Ms. Rhia Ramirez as “Mr. Pascua assumes leadership executive director of AAAIM, and in very challenging times.” Mr. Greg Atienza, executive manIn response, Mr. Ric Pascua aging director of AIM’s Alumni vowed that the new directors of Relations Office as the school’s the board will support their fellow representative on the board. alumnus, AIM President Francis

MAY 31, 2006, GENY LOPEZ Gallery, AIM. Mr. Alex Tanwangco, Chairman of the AIM Alumni Association-Philippines, and Prof. Maya Herrera, Treasurer of the AIM Scientific Research Foundation signed the deed of donation for three brand new Panasonic plasma televisions and two LCD projectors to the AIM Alumni Leadership Fund for Learning Space. The signing ceremony and turnover of the equipment was witnessed by Mr. Ricardo Pascua, Chairman of the AIM Alumni Association-Philippines, and Prof. Gaston Ortigas, Jr., Chief Information Officer of AIM. The donation shall be allocated and utilized for the following purposes: (a) one plasma television and one LCD projector for the Executive Education and Lifelong Learning Center’s (EXCELL) use; (b) one plasma television for the AIM main lobby for event announcements; (c) one plasma television for the AIM Conference Center Manila (ACCM) main lobby; and (d) one LCD projector for AIM’s general use. Present during the signing ceremony was Mr. Hiroki Miyaji, adviser of the Systems Sales Department of Panasonic Philippines & Listening in Style, who gave the acknowledgment remarks. Special discounts on Panasonic items have also been given to AIM Faculty, staff and alumni. Please get in touch with: Mr. Patrick D. Raz, Section Manager Office Automation Section System Sales Department Panasonic Philippines 3rd floor, Montivar Bldg., 34 Jupiter cor. Planet Sts, Bel-Air IV, Makati, Philippines Trunkline: 899.4595-98 Fax: 897.4558 Email: patrick.raz@ph.panasonic.com

A I M A LU MN I L E A D E R SH I P MAGA Z I N E Ju l y to Septem be r 20 0 6



your profile now! A I M



YES! I would like to subscribe to the AIM Alumni Leadership Magazine. One-year subscription (4 issues) Two-year subscription (8 issues)

$20 $30

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The Business of Filipinos in the Age of Globalization R E Y


A N G E L E S ,


1 9 75

THOUGHT OUR IMPORT COMPANY, much less our export company, could not continue to do the same strategy and last within this generation with the opening of the Philippines to the global economy. I began to think that our company problems went beyond business cycles and certainly beyond the scope of corporate strategic management. Our company has now entered, I thought, the whirlwind of macroeconomic realities way beyond our limited capacities to control. When I read the article on Mr. John Gokongwei’s lament on the Philippine economy in November of 2005, I knew that we had to find the real causes of our economic difficulties by looking into our economic history and comparing it with those of South Korea, Thailand and Taiwan. I thought that knowing what we did differently from these advancing economies would 12

show us the causes that made Filipinos now so poor compared to the people of these countries. Yes, the Philippine economy was way ahead of all these three other economies after the Second World War. But, we lost our leadership along the way as Mr. Gokongwei indicated. So, how did we do things so differently from Korea, Taiwan and Thailand? The answer: the lack of recognition by our leaders of exports as THE engine of economic growth and the exchange rate as a tool for national economic development. My studies led me to discover facts and figures long forgotten on how the structure of our economy was severely deformed by the mismanagement of the Peso exchange rate since the postwar era—a unique experience to the Philippines. Now we are going through another unique experience that is deforming our economy—the Phenomenon of the OFW’s. My studies led me to the conclusion that

A I M A LU M NI LEA D ERS HIP M AGAZIN E J u ly to September 2006


any answer to the question, “Why are we so poor?” must take into account the history of our Overvalued Peso as a major cause. My studies made me think that for the good of the country they serve, our people in Bangko Sentral cannot afford to view the economic development of the Philippines in the time spans and perspectives of investment bankers, bonds and stock brokers, or funds professionals. Bankers, brokers and capital market professionals have specific and beneficial roles in the world of business. However, they cannot and do not represent national interests and they look at returns in a much shorter range and much different light than national economies. For example, it is to the best interests of the Filipino people for our government to pay up all our foreign loans at the soonest time. Is it to the interest of fund managers and capital market operators to lose the Philippine government as their permanent customer?

Another matter on the Bangko Sentral is the need for them to establish a clear, longterm position on which way the exchange rate is going and must go. They declare that it is best to let market forces determine the rates—like what thermometers do. That is a nice, brief answer. But in the real world of globalization, to run the economy without a plan is a plan. Not to intervene in the Peso exchange rate market is intervention. Believe it or not, for a country that is consistent with earning foreign trade deficits through the years, there are only two reasons for going through a massive devaluation: a country devalues its currency because it has a brave long term strategy for devaluation or it must devalue because it does not have a brave long term strategy for devaluation. There is another alternative unique to the Philippines—let our people go to Egypt separated from their families and work like slaves in a foreign land, let their remittances pay for our accumulated foreign trade deficits and let them perform the work that our poor economy fails to accomplish.


y studies also told me that our society has relegated export concerns in the background - second-class businesses with inferior contribution to the economy. Exporters must understand development economics. They must know the economic strategies adopted by successful neighboring economies. Export companies must organize, shed off their inferiority complex and make their role in the economy known and understood by people. Altogether they must be effectively represented in all power blocks in government, including the electorate. They must believe that they can become BIG business, as big as export companies have become in Thailand, Taiwan, Korea, China and Japan. They must hold the conviction that in all these countries EXPORTS, not IMPORTS, are the engine of economic growth and they, Philippine exporters, have a great responsibility in the advancement of the economy. What, for example, will export companies and organizations DO when they listen to a newscast that says: “Malacañang on Saturday brushed aside concerns that a strengthening peso is bad for the economy, stressing that a robust currency will benefit the country in the long run. The President’s spokesman and press secretary, Ignacio Bunye, said a strong peso has positive

and negative effects, but “overall, a strong peso would be much better for the economy” since the country is a “net importer.” (William B. Depasupil, Manila Times Reporter) This study has also led me to recognize in the development of an export-led economy the great importance of the youth, teachers, government employees, soldiers, policemen, farmers, fishermen, government workers, OFW’s, balikbayan, labor, management and owners of companies producing products and services with high-local-content value. They too must understand global economics. They too must organize. They too must put pressure in changing the mindset of our leaders on exports as the primary engine of growth of our economy. They have the people’s power to influence leadership in the land. Along with exporters they will provide the answer and solution to the age-old question of Filipinos, “Why are we so poor?” After all, it is their lives that are at stake. Finally, my study has provided me opportunities for paradigm shifting of my own as a hardcore importer. In this regard, I would like to address the concerns of thousands of importers like me in the new environment under growing globalization and in the inevitable role exports must play if our country is to survive. Think of China, Thailand, Korea and Taiwan. Their economies have been and continue to be export-led. They have successfully

with a strong purchasing power. With their new found wealth, these countries have turned to be lucrative markets for imported products and services. This is the natural sequence of market developments. First, poor people must develop whatever little resources they have that will give them employment. Second, employment creates greater employment and people start earning and saving. Third, only then will they have purchasing power and develop the capacity to buy better things the world has to offer. If we continue with our age-old approach of economic development, our economy will not develop our middle class, our people will not acquire strong purchasing power and OFW’s will continue to leave us because our local industries have no means to absorb them with well-paying jobs. As they bring home their dollars, they exchange them for less Pesos, and our economy is not wealthy enough to purchase imported products. What should matter to us, importers, is the development of an economic strategy that would bring greater wealth to more Filipinos in the long term. As stated earlier, in the end a wealthier Filipino would buy more products, local or imported, and a poorer Filipino would buy less and less products, local or imported. It is our entrepreneurial agility and adaptability that will guide us to succeed in the new environment.

“(Exporters) must believe that they can become BIG business, as big as export companies have become in Thailand, Taiwan, Korea, China and Japan. They must hold the conviction that in all these countries EXPORTS, not IMPORTS, are the engine of economic growth.” turned their domestic economy into a captive market for their local industries with their undervalued currencies. Their domestic and export industries are able to generate jobs for their people with increasingly high pays. Entrepreneurs find opportunities in greater numbers in producing products and services with high-local content. They have developed an economy with a wide-based middle class

Aurelio “Rey” O. Angeles, MBM 1967 is the President & CEO of Filipinas Mulit-line Corp., a holding and management company for five import companies, one export company and one lending company. Excerpt reprinted with permission from “The Peso Exchange Rate: Why Are We So Poor?”, Copyright 2006. “The Peso Exchange Rate: Why Are We So Poor?” is available at National Bookstore (Philippines) outlets or email reyangeles@ multi-line.com.ph.


The United Nations:

A Market Analysis of “Diplomacy”


S H A R M A ,


20 03


ONTRARY TO POPULAR opinions and fashion statements, the United Nations has been one of the most important creations of the century. Often held hostage to curious and inalienable oddities, the UN has, to the surprise of most, done more good than harm. The world is a better and safer place today because we live in a world based on the rule of law and one that is dictated by reason—because of the existence and influence of the United Nations. This paper attempts to analyze the principal UN service to the world, “Diplomacy” using a basic framework of demand and supply, and through the analysis, draw crucial insights to understanding the gaps in UN Diplomacy.


International Diplomacy refers to the “art and practice of conducting international relations with regard to issues of peacemaking, culture, economics, trade, and war, among other global issues”.1 Diplomacy can be of various forms; bilateral, multilateral, and regional. Today, the United Nations is the largest diplomatic organization of global scale and significance. Form of Market

As a global entity and in terms of its ability to exercise and exert unrivalled and unchallenged2 power and influence, the UN diplomacy qualifies as a monopoly because it “owns” a key resource, i.e. membership of 191 nations, that no other entity comes close to owning; and because there are no close substitutes of the supply of diplomacy by UN. There are a few substitutes (although, not PHOTO -ILLUSTRATION: MARLON DE LEON

close substitutes) in certain supply mechanisms; these are primarily entities of regional cooperation (primarily socio-economic cooperation) like APEC, OECD, OPEC, ASEAN, and SAARC, among others. Yet, each one of the aforementioned is either a regional entity (constrained by its sphere of influence) or is focused on one specific aspect of co-operation (constrained by its operational influence). Analysis of the Market Structure: Demand And Supply

The market for UN Diplomacy covers almost all parts of the world through its member nations. Since United Nations is an organization of nations united for “common purposes”, the consumers of UN diplomacy are the same as its producers/suppliers, i.e. the 191 member nations who, on paper, have

“The elasticity of ‘effective’ demand for diplomacy would largely be influenced by the actions of nation states that cannot support themselves (weak/failing states), or those who undermine and/or violate the principles and purposes of the United Nations, and the ability of the nation state to afford, tangibly and intangibly, the ‘costs’ of diplomacy.” equal rights in the conduct of UN Diplomacy. The UN is, however, not a classless society. The rights to influence the diplomacy of the UN are uneven; the crucial decisions are often made in light of the balance of power between few significant3 nations. It is also to be noted that while the consumers and suppliers are the same group of countries, their objectives and constraints are different while playing the two different roles. Demand Triggers: Any significant failure of a nation or any action by a nation state that violates the UN charter principles4 generates a demand for UN diplomacy. Recent examples of such actions have been human right abuses (Somalia), humanitarian crisis (Sudan), intrusion of a nation’s sovereignty (Iraq), state sponsored terrorism (Afghani-

stan), and proliferation of weapons of mass destruction (North Korea/Iran). The demand for diplomacy is, at first blush, price inelastic because, under a stable5 environment, regardless of the amount of tax imposed on the nation, it is obliged to keep its membership of the UN to remain as a part of the world order.6 However, the effective demand from a country is different from the membership demand. Giving up the membership simply means not participating in the market as a demander and shutting down as a supplier. The price of diplomacy is actually broader than merely a membership tax or fee, and includes all intangible “prices” a demander would have to incur when it requests diplomatic services from the UN. The demand is therefore a bit elastic. The elasticity of “effective” demand for diplomacy would largely be influenced by the actions of nation states that cannot support themselves (weak/failing states), or those who undermine and/or violate the principles and purposes of the United Nations,7 and the ability of the nation state to afford, tangibly and intangibly, the “costs” of diplomacy. Supply Interventions: The supply of diplomacy would primarily represent the interventions taken by the UN to exercise its diplomacy. Such interventions include undertaking diplomatic negotiations and talks, imposing economic sanctions and trade embargoes, military interventions,8 among others. The supply of diplomacy appears price inelastic at first glance, because the purpose of the UN diplomacy is to serve and protect all its members regardless of their share of the total payment. The supply of all those diplomatic interventions, however, also entails real costs, beyond the membership fees, such as payments to diplomats, buildings, and any other real resources. Therefore, the supply of UN Diplomacy is not totally inelastic. The elasticity of supply for diplomacy would largely be influenced by the strategic interests of the permanent members of the Security Council and the strategic urgency of the issue. As suppliers, these countries would want to maximize their objectives, the total benefits to them and their strategic interests, considering the costs of providing these services.

Market Mechanisms: Price, Cost, Revenue, Surplus

Price. The price of diplomacy is the annual fee that the member states pay for their membership. The UN system of taxation is regressive,9 i.e. the poorest countries pay a larger share of their incomes to UN than do the richest countries. Thus, price discrimination works against the poorer countries. The intangibles of requesting the service would also be factored in the price. Cost. The cost of diplomacy to the UN is the cost of maintaining peace, order and stability in the world. Some of the costs are the peace building operations, military interventions, economic assistance, infrastructure development, technology transfer, among others. Revenue. The United Nations, through conducting its diplomacy, does not earn revenues; therefore its revenue is the achievement of global public goods – peace, order, security, education, and healthcare, among others, that it seeks to achieve through its operations. Producer Surplus and Consumer Surplus. The concepts of “producer surplus” and “consumer surplus” are difficult to estimate as the cost for UN diplomacy incurred by the beneficiary or consumer, or the amount paid to the supplier or the UN, is not exactly, in tangible terms, the actual cost of intervention, but an annual membership fee/tax.

“The elasticity of supply for diplomacy would largely be influenced by the strategic interests of the permanent members of the Security Council and the strategic urgency of the issue. As suppliers, these countries would want to maximize their objectives, the total benefits to them and their strategic interests, considering the costs of providing these services.” A Moment of Retrospection

Since the birth of UN in 1945, the world has changed profoundly and fundamentally with new issues and challenges emerging in Continued on page 22 >>

A I M A LU MN I L E A D E R SH I P MAGA Z I N E Ju l y to Septem be r 20 0 6



Strategy and Change:

value shared within an organization: in that incessant change is the pre-requisite of organizational success. This constitutes part of organizational culture, which in turn establishes an organizational- wide preparedness for behavior change. AT N A M , E M BA 1 9 9 8 For this state to be present, there must be some compelling reason (e.g. dynamic comneed to operate at the intersection between petition, changing technology) why incessant business strategy, interactive technology, change is needed for organizational success. marketing communications and media. This is because today’s world is multi-platform and That cause or justification must be imparted multi-channel, and communications must be and shared convincingly among members of the organization, which in turn point to created and executed accordingly. Organizational change capability decides leadership, communication and change, reinforcing sysan organization’s effectiveness in In the context of the dynamic conditions tems within an organization. executing marof the environment of the advertising The effects keting strategy. industry, strategy execution is a process of market In the context of successfully leading and managing orientation of the dynamic comes from the conditions of incessant organizational change. emphasis agenthe environment cies give to gathering and analyzing market of the advertising industry, strategy execuinformation and using that knowledge in tion is a process of successfully leading and executing a type of strategy dynamics. managing incessant organizational change. Greater market orientation ensures that Organizational change capability relates to creating and executing specific change initiamarket orientation and learning orientation, which together affects the positive outcome of tives are cognizant of the wants and requirements of (current and potential) customers, dynamic strategy. so that the agencies’ intended type of strategy Incessant change is to be considered the is accomplished in a manner that is more in usual state of an organization, rather than tune with the market and is successful. something unusual. An appropriate basis Learning orientation is said to have three for incessant change resides in an essential components based in organizational culture: commitment to learning; open-mindedness; and shared vision. Commitment to learning is a shared value that impels members of an organization to seek understanding of the causes and effects of their actions. Open mindedness prompts them to use this understanding to challenge the status quo, and to seek better ways of doing things. A shared vision speeds up the organizational learning process. The critical challenge for marketing communication agencies is to create the combination of culture and climate that maximizes organizational learning on how to create superior customer value in dynamic markets, because therein may be the source of competitive advantage.

The Marketing Communications Industry T H I L L A I VA R R N A



HE ONLY CERTAINTY IN BUSINESS today is change, creating new complexity in meeting customer needs and demands. This has brought about high performance business with new business marketing approach, which in turn mandates high levels of performance from every advertising and marketing communications effort. In order to get your message through the information rich economy, the marketing and advertising efforts provided to customers must outperform the competition. Continuous business intelligence and insights from the marketing communications agency are important requirements of the partnership. The agency-client relationship is founded on a true business involvement and measured by commercial results. Markets mature, product lifecycles reduce, audience shift and technology evolves rapidly. Agencies must provide integrated solutions in a constantly changing environment. Conventional marketing methods are no longer attracting customers as they used to. Consumers have altered in their habits and their behavior. Marketing communication agencies

Thillaivarrna Selvaratnam, eMBA-KL 01, is the principal of a Management and Business Consultancy, THILLAI VARNA & ASSOCIATES. He can be contacted at thillaivarna@time.net.my ILLUSTRATION: CECIL SUNDIANG



Right This Way to the Right Venue J O J O

B .


THE ASIAN INSTITUTE OF MANAGEment Conference Center Manila (ACCM) is the perfect setting for clients looking for the all-in-one convenience of a strategic location, several rooms for functions big and small, fully furnished guestrooms, superb amenities as well as the right amount of intimacy. Nestled in Makati City, the Philippines’ business capital, ACCM is located within the AIM Campus (Benavidez corner Trasierra Streets, Legaspi Village). The Institute’s succession of programs throughout the year are held at ACCM’s several function rooms, namely: 20 meeting space options, with room for videoconferences, Internet access and catering upon request. Moreover, ACCM’s function rooms service meetings and trainings of social investors, corporations, government agencies, non-government organizations and AIM alumni—with clientele coming not just from all over the country but from all over the world as well. Besides function rooms, the 12-storey ACCM has 110 guestrooms. Students and guests can choose between one-bed and

twin-bed units. Each room is equipped with phone lines for international and national direct distance dialing (IDD/ NDD), a mini-bar, a safe, a cable TV, a computerized door lock, individual shower and bath rooms, free Internet access, and complimentary coffee and tea-making

Bistro Duets offers a special 10% discount to all Food and Beverage selection exclusively to all AIM Alumni. AIM students and alumni can also avail of a promotional room rate of just PhP 1,700+. facilities. Room service is available as early as 6 a.m. up to as late as 11 p.m. Laundry, dry cleaning and pressing services, as well as bell service is offered, along with a truly hospitable, 24-hour front desk. Aside from the Institute’s open-all-day student cafeteria, ACCM has an outlet of Delifrance, the French-style restaurant owned and managed by the Philippines’ largest food chain, Jollibee Foods Corporation. Further

dining and unwinding can be held at Duets Bistro acoustic bar and restaurant located at the 5th floor that’s open seven days a week. There’s more! Bistro Duets offers a special 10% discount to all Food and Beverage selection exclusively to all AIM Alumni. Basic ACCM room rates are only PhP 4,400+ for an Executive Room and only PhP 8,800+ for an Executive Suite. AIM students and alumni can avail of a promotional room rate of just PhP 1,700+ with the presentation of their new AIM Alumni Card. Special rates are also available for guests intending to stay longer: just PhP 1,900+ per day for a minimum of seven nights, and just PhP 1,800+ per day for a minimum of 14 nights. Inquiries and reservations are most welcome. Guestroom concerns can be addressed via ACCM’s Room Reservations office {tel. no. (632) 750-1010 local 2015 and 2020}, while meeting room matters can be discussed with the Sales and Marketing department {tel. nos. (632) 750-1010 locals 2035 to -41 and (632) 750-4467}. Further details are available at www.accm.aim.edu.


From Management

Games Enron India to the



<< Aloke Dasgupta, receiving the award from ASIAMONEY Hong Kong representative. Aloke can be reached at dg.aloke@idbi.co.in.

Editor’s note: In 2005, with Aloke Dasgupta, MM 1998 as General Manager, the Industrial Development Bank of India (IDBI, Ltd) was recognized by ASIAMONEY, Hong Kong for the uniqueness and success of the restructuring plan for the Dabhol Power Project. IDBI Ltd. was awarded “THE BEST INDIA DEAL OF THE YEAR 2005” for the transaction.

Student Days with Azanza, Perez, Manoj and Alpa

I remember the date very well. May 3, 1998. The graduates of 1998 were conferred the degree of “Master in Management” at a glittering ceremony. Along with it came the AIM diploma confirming that I had indeed passed the three modules. I remember having 18



looked at these two certificates and thinking to myself…WOW! At last, after a year of efforts, the professors have been able to transform me in the areas of “Analysis & Decision Making”, “Strategizing & Synthesizing”, and “Leadership & Implementation”. I remember Professors Rafael Azanza and Errol Perez for putting me through the MRR grind. Even after almost 8 years, it still makes me want to ask them out of curiosity, “Why did I not get a Clean Pass?” Thank you, professors, and my apologies to you for having to try so hard! Amusingly, before the MRR, I knew Monte Carlo to be a mythic place, an exotic destination between the Alps and the Mediterranean - a romantic getaway for the rich and famous. The two gentlemen, however, gave a whole new meaning when they suffixed two words -’simulation technique’- to Monte Carlo. Manoj my classmate (Manoy to friends), had to spend extra hours with me to translate what the professors wanted me to do. We created fancy macro-commands on a

A I M A LU M NI LEA D ERS HIP M AGAZIN E J u ly to September 2006

1 9 9 8

football ground sized excel sheet. I did not pay him in cash or in kind, but I remember and am grateful for the fantastic rooftop dinner that his wife Alpa hosted for all of us who were missing Indian food. Great Friends

The year in AIM was also an “investment for life” for me with the great friends that I acquired. When I think of AIM, I remember the weekends spent elsewhere other than the vicinity of Makati. On week-ends, I was luxuriously “kidnapped” along with my classmates, Nieves Lim and Baby Angeles, to review MRR financials. We were brought to the beautiful house of Prof. Bobby Lim in Tagaytay. The ladies had a unique time frame for work: Nieves, a day person, worked from 3 a.m. to daylight, and Baby, a night person, worked from daylight to 3 a.m. My apologies to those whose “discussion hour” I gave away in favor of these ladies whose simple pleasures were cigarette breaks with a

great view of the lake, and non-stop munching on chocolate chip cookies. Three meals a day were served by Professor Lim’s excellent cook. Early morning was the time to drive to the countryside with Professor Lim. Talk about effective strategy and implementation of a plan. AIM also took me to places as far north as Baguio, and as far south as exotic Puerto Princesa, Palawan for the CLASS WALKABOUT. This gave me an opportunity to present strategic plans to City Mayor Hagedorn. I also fondly remember our class election, when I was part of the winning campaign of Mme La Presidente, Nieves. This campaign was merely, in AIM buzz words, an “effective implementation of strategy for effective leadership”. Nieves thrust on me the thankless and unenviable job of being the class Treasurer. I also recall the Management Game when we were selling detergents across the world and got to know what a “what if” analysis was. The victory of our group was due to team work, the “brain food” and the ad slogans supplied by Baby, the co-leader of our team, and the financial and marketing acumen of Felix, our team’s VP for Finance. Professor Azanza of course ascribed our victory to “plain luck”, but I believe you need luck in real life too. Jack was just great on the computer, churning out the simulations without losing his cool despite the team members presenting to him absurd scenarios from all directions. Admittedly, the Management Game, after a few hours of fun, was no longer a game, but turned out to be a hard fought battle spread over three days. At the end of the year, I spent a wonderful few days with Felix and his family. His Mom and Dad gave me a treatment that in India was only reserved for the Maharajas. What hospitality! And then, how can I forget the day a few of us got “invited” (I do not want to use the term “gate-crash”) to the dinner that Professor Gavino was hosting exclusively for his CAN group. Thank you, Professor Gavino for the wonderful Japanese dinner that was spread out. The Enron India Project

After graduation, I thought about how I would get to use my AIM learnings in the real world. I did not have to wait too long to find out. Shortly thereafter, I went back to my

employer, the Corporate Finance Department of the Industrial Development Bank of India, the company from where I had taken a year’s break to pursue the MM program in AIM. I found myself deeply involved in financing the private sector power projects. This sector is recognized as a key driver of overall economic growth in a country. In 1991, the quantum increase in demand for power in India had triggered the government to announce major policy initiatives. The power sector needed to be transformed within the broader framework of progressive economic reform that was launched in 1991. The policy attracted private capital for the quick transformation of the moribund power sector to be more vibrant and to ensure its growth. New legal, administrative and financial policies were put in place that allowed a power generation business with 100% private ownership. Exciting! This was where I always wanted to be! Project Finance and Corporate Risk Management! I saw my days (and a good part of the night) structuring projects and negotiating terms of lending. A high was achieved when “financial closures” were reached. And then the “Mother of all Project Finance Transactions” came. The Dabhol Power Project, aka “The Enron India Project”.

Export Credit Agencies participated in lending to the project. The project ran into rough weather on account of certain commercial disputes, and a litigation process that involved the main sponsor versus Enron, which filed for reorganization under the US Bankruptcy Code. On one hand there was plethora of litigation/arbitration in international fora; on the other hand a comprehensive restructuring plan acceptable to the key stakeholders of the project was to be developed. My days swung between briefing Solicitors and Queen’s Counsel, to negotiating with various stakeholders around the world. Whew! A comprehensive restructuring package crafted by the Indian Lenders, led by IDBI Ltd, hammered a settlement of mutual claims for all stakeholders, with the ultimate objective of developing a viable business model. The emerging financial architecture of the project now reflects a moderate capital charge and economic tariff, thereby ensuring commercial viability. The plant in now being re-furbished and is expected to go on stream shortly. During my MM days, Professor Quintos would ask at the end of every case discussion, “What are the ‘learning points’?” Well, my experience took me everyday to the case room discussing “Analysis & Decision Making”,

“...my experience took me everyday to the case room discussing ‘Analysis & Decision Making’, ‘Strategizing & Synthesizing’, and ‘Leadership & Implementation’. The classes on SAPADAPA, Negotiations Strategy, BATNAs, and ZOPAs were no longer residing in the realm of academics.” If I recall right, there was a case study by MBM 1998 which dealt with the subject, but that case study was on Enron’s entry into India. The project, with an investment to the tune of USD 2.9 billion, involved development, construction and operation of a 2184 MW Combined Cycle Gas based power plant and a 5 mtpa of LNG storage and re-gasification terminal with associated port/marine facilities. A host of Indian and international banks, and

“Strategizing & Synthesizing”, and “Leadership & Implementation”. The classes on SAPADAPA, Negotiations Strategy, BATNAs, and ZOPAs were no longer residing in the realm of academics. Everyday reminded me of the time when I was defending my MRR. Mercifully, I am now on the ‘other side’—getting reports not preparing them. I am aware that case writers the world over are now busy researching the transaction!

A I M A LU MN I L E A D E R SH I P MAGA Z I N E Ju l y to Septem be r 20 0 6


insights 1998 was the most difficult year of my life. I had problems all around me. My wife had an attack of angina on the beach of Bali in Indonesia. Our family company was in the dumps, thanks to a “well-wisher”. He was charging fees >>


>> greater than the revenue. He was also backstabbing us. What a man! He was a twoheaded snake, one head was full of honey, the other with poison. It took me time to recognize him. One of my children had a serious personal problem. However, the mother of all problems was my boss. His desire to get me out of his corporate group was more intense than his desire to get me in. I had only two-options: search for another job or jump on the bandwagon of entrepreneurship. I decided for the latter out of compulsion.

2nd of a series of articles shared by Dr. P.N. Singh from his book “From Bullock-Cart to Mercedes-Benz, The Story of a Bihari Boy”

as an D R .

P. N .

S I N G H ,


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Entrepreneur Lesson No. 60 When you face problems from all sides, you should realize that things are going to be far better. Seven Laws for First Generation Entrepreneurs

I learnt a few lessons the hard way. These seven laws were developed based on my experience. They are being shared here with prospective entrepreneurs free of any consultancy charges. THE LAW OF INGRATITUDE: It is quite natural to help people when you are in a job. You expect them to return the favour when you start your own venture. It does not happen. Those you helped are the first to flee. In my case, the person who had been helped the most not only did not return help but also backstabbed me. This law indicates that you should forget all those whom you’ve helped. 20

Lesson No.61 Always beware of backstabbers.

company came back to black because of these assignments.

THE LAW OF DIVINE INTERVENTION: But, you don’t have to worry about the ingratitude of people. God’s angels will unexpectedly arrive to help you. In my case two Indians and a Canadian arrived as angels. Ramesh Bhadauria’s brother Ashok was known to me. Ramesh was not. Both of them landed one day in my small office. Ramesh gave me a recruitment assignment. It got us some much needed revenue. A C Augustine of ONIDA visited my office for the first time and offered me a training assignment. Alex Kyserlingk, a Canadian and Charles Minor, a Liberian offered me a three-month assignment in African Management Services Company (AMSCO), a World Bank organization based in Holland. It was extended to the fourth month. I was in no position to return their favor. At that stage, I needed assignments. The family

Lesson No.62 Based on your karma, angels arrive to help you when you are down.

A I M A LU M NI LEA D ERS HIP M AGAZIN E J u ly to September 2006

THE LAW OF FOCUS: The stress associated with a changeover from a cushy job to an entrepreneurial role is very high. You actually move from certain to uncertain. In this state of anxiety you want to do everything from multi-level marketing to HR consultancy. This may prove to be the beginning of the end of your entrepreneurial venture. You must decide on your focus area. As training was our strength, corporate training became our focus area. We were aware that when business was down, the training budget was first to be slashed. Therefore, we hedged the future of the company by choosing book publishing and HR consultancy as supplementary areas of focus. The strategy worked.

THE LAW OF MARTYRDOM: This law stops you from becoming an entrepreneurmartyr. It needs some explaining. I will do that with my personal example. When we were in our village in Bihar, my grandfather had taken some loan. It was repaid by my father.

THE LAW OF THE DEMISE OF PET THEORIES: You can have your pet theories. But, they may not necessarily succeed. One of my pet theories was to recruit employees from my village. It demonstrated my social sensitivity to general poverty there. It failed. The

of the organization. You have to forget your pet theories for the sake of the organization.

This created a revulsion for loans in my psyche. This continued even when I became a full-fledged entrepreneur. But, how could we grow without loans? In the meantime, my chartered accountant son had succeeded as an entrepreneur. His success was primarily based on his skill in raising funds from banks to finance his growth. I had to change my mindset. We took moderate risk based on a 50:50 formula. Under this formula growth has to be financed by 50% internal generation and 50% loan. This should guide the first generation entrepreneurs. Excessive risk-taking may create a Birla or Tata or Ambani. In 99% of the cases it makes you an entrepreneur-martyr. You should avoid this.

employees tried to get our enterprise closed. Their disloyalty was visible. The second pet theory was to recruit the ordinary and make them extraordinary. I recruited three employees from economically disadvantaged segments of the society. Their academic records were nothing much to speak about. They ensured failure of my theory by leaving together when no director was in the office. The reason was clear. You cannot build a consultancy organization on the strength of mediocre employees. You have to recruit talent and pay for it. While some large companies can claim to convert ordinary into extraordinary, small entrepreneurial companies should recruit talent and only talent for the survival and growth

it prudent to “buy the system.” That is their short- cut to success. For a new entrepreneur, however, it could prove to be a disaster. There is no end to human greed. A bribe is like ghee which when put into the fire of greed will only increase its intensity. Therefore, we decided our values as hard work, openness and integrity. We cannot say that we have freedom from babudom. But, at least we are able to sleep peacefully at night. Lack of integrity can ruin your business.

THE LAW OF INTEGRITY: With a plethora of laws it is certainly very difficult to do business in India. Many businessmen consider

THE LAW OF PERPETUITY: You don’t do business for a day. You want your organization to survive and prosper even after you: you Continued on page 22 >>

A I M A LU MN I L E A D E R SH I P MAGA Z I N E Ju l y to Septem be r 20 0 6


insights “The United Nations:...” cont. from page 15 >>

more ways than one. The UN was set up to overcome the limitations of the League of Nations—to prevent another world war. So far, this purpose has been achieved through its diplomacy. It remains to be seen if peace has been consolidated for the future. Protracted and localized civil wars, frequent and unpredictable and deadly terrorist attacks are also instances of destruction of peace. UN is unable to be a “proper” or “effective” service provider in these cases. The aforementioned demand-supply analysis raises several questions and issues regarding the United Nations’ Diplomacy that challenge certain basic assumptions behind the framework: Has the supply of diplomacy been satisfactory and timely, commensurate to the demand? Have the exceptions or failures to supply been deliberate or accidental? Have the demands been genuine, enlightened and warranted? If consumers have also been providers of diplomacy and vice versa, is it not true that only a few consumers and producers have been reaping the benefits of the system thus exposing the inequities in the system? Under what specific cases and at what stage of crises has the service (diplomacy) been provided and with what results? How

“Life as an Entrepreneur” cont. from page 21 >>

want to make it immortal. Here comes a problem. Most businesses are started based on the skills of an entrepreneur. If these skills are not passed on to the next generation, skillbased organizations will flounder. How do we perpetuate them? There are two strategies: institutionalize or develop products. L&T has prospered because its founders institutionalized it. Professional managers have taken charge of the organization. Systems in all areas have been established. It has grown from strength to strength. In complete contrast Mother India, edited by the legendary journalist Baburao Patel closed down after his death because his skills of personalized journalism could not be passed on to somebody else. He was inimitable. While the magazine closed down, his other products like homeopathic medicines continue to do well. Therefore, you have to choose the appropriate strategy to ensure that your organization does not die with you. 22

fairly are those decisions taken? If the diplomacy service also includes sanctions, have they been both legal and legitimate in all cases? What are the effects of these sanctions on the nations? Have the imposition of sanctions translated into extended peace or stability for the nation? Many times the UN Diplomacy is provided without a demand, i.e. service imposed upon a nation. It is difficult to quantify the cases of “urgency” and “strategic importance”. State and UN behavior are largely predictable (unless under exceptional circumstances). A Final Word

The United Nations is an international bureaucracy with several drawbacks and failures to its name, as accentuated in the aforementioned discussion. Yet it is the only entity truly representing global interests and international expectations. The UN is not a nation state in itself and is just a representation of all the nation states—the effectiveness of UN diplomacy therefore depends on the efforts by the nation states to make the UN effective. While it is difficult to find absolute tailor made solutions to address the aforementioned issues, a search for global will and universal vision, by those for whom the promise and potential of the future are more appealing than Future of the Company

Ours has not been a high growth company. It has registered modest growth. The biggest weakness of the organization has been the lack of marketing thrust. We have not been proactive. At best we have been reactive. My name has brought some business. Grid has sold because of the product excellence. I think that the biggest plus point with us has been our motto: We preach what we practice. Market has appreciated our stress on integrity. They are aware that we will not cut corners for a few rupees. Succession has been an issue. I have prepared my daughters to take over the company. Sunita has joined a full time PhD course at the Management Development Institute in Gurgaon. Anita has joined part-time PhD programme with BITS, Pilani at its ITM Centre in Mumbai. When they complete their PhD, they would have acquired the knowledge and skills to take the company forward on the path of profit and growth. I hope they don’t

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the past, and a world based on reason and fairness is the world that we want to establish, can be considered as a starting point. http://en.wikipedia.org/wiki/Diplomacy During the last two decades in general and last five years in particular, the Unites States has come close to unilaterally exercising its military power to resolve certain issues, without the consent and support of the UN. It can thus be argued that, when it comes to military interventions, the United States, because of its unparallel military supremacy, qualifies as a substitute of UN military intervention. 3 Economic and Military powers, especially the five permanent members of the Security Council 4 To maintain international peace and security; to develop friendly relations among nations; to cooperate in solving international economic, social, cultural and humanitarian problems and in promoting respect for human rights and fundamental freedoms; and to be a centre for harmonizing the actions of nations in attaining these ends”. (Source: HYPERLINK “http://www.un.org” www.un.org) 5 Characterized by, among other things, steady and well functioning governance systems, economic, political, military stability, and an absence of strife or wars. 6 Taiwan and the Vatican City are the only two “national” entities not part of the UN system. 7 This is, however, a view of extreme situations and does not focus on the “everyday diplomacy” of the United Nations. 8 Often taken upon the failure of diplomacy, but needs to be sanctioned and legitimized by the United Nations. 9 Kishore Mahbubani, Can Asians Think? 1


Disclaimer: The ideas mentioned in this article are solely of the author and they do not in any manner represent the views or opinions of any institution or organization that the author is associated with.

lose sight of their social responsibility. This has been very close to my heart. Desires Fulfilled

Life as an entrepreneur has been extremely fulfilling. It has filled me with some pride. Some of the luxuries of life we could never have dreamed of have come to us so easily. I never had many desires. However, there were two desires I could not curb. They bothered me a lot. One was for a flat with a view of the sea. I have a fascination for the sea. It looks infinite. So is knowledge. The other was for a Mercedes-Benz car. Traveling in a bus, I had admired such cars. When all my efforts to curb these worldly desires failed, I contacted my older brother, who is quite religious, to guide me. He advised me to replace these desires by a desire for God. I tried it. Probably God got worried about being contaminated with my worldly desires. He fulfilled both my desires during 2004.


AIM 37th

Commencement Ceremonies THE ASIAN INSTITUTE OF MANAGEment held its 37th Commencement Ceremonies at the Meralco Theater, Pasig City last May 7, 2006. AIM President Dr. Roberto F. de Ocampo and Dean of the Institute, Victoria S. Licuanan conferred degrees to 80 MBA, 34 MM, 32 MDM, 8 EMBA and 2 ME alumni. They were assisted by Dr. Ricardo A. Lim, Associate Dean, W. SyCip Graduate School of Business (WSGSB), Rev. Fr. Edmundo M. Martinez, S.J., Associate Dean, Center for Development Management (CDM), Dr. Gracia S. Ugut, Associate Dean, Executive Education and Lifelong Learning Center


(EXCELL) and Dr. Francisco L. Roman, Associate Dean, Asian Center for Entrepreneurship (ACE). Dato Timothy Ong Teck Mong, Acting Chairman, Brunei Economic Development Board and Deputy Chairman, National Insurance Company of Brunei Darussalam delivered the commencement address. Distinction Awards were given to the following alumni: Master in Business Administration (MBA) Saurabh Anand, Harish Chawla, Amrita Elizabeth Philips, Janet G. Salazar

A I M A LU M NI LEA D ERS HIP M AGAZIN E J u ly to September 2006

and Vishal Srivastava Master in Management (MM) Angelo Q. Lahoz, Jae Won Lee and Sudipt Maitra Executive Master in Business Administration (EMBA) Anna Karina Pe単a-Gerochi Student Leadership Award 2006 Carlos Lorenzo L. Vega, MBA 2006 The Chairman of the Federation of AIM Alumni Associations (FAIM), Datuk Ir. (Dr) Mohd Annas Hj. Mohd Noor, MM 1984 led the induction of all graduates to the worldwide AIM alumni associations.

Master in Entrepreneurship (ME)

Master in Development Management (MDM)

Executive Master in Business Administration (EMBA)

Master in Management (MM)

Master in Business Administration (MBA)

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On Change and Things that Should Not Cope, Manage, and Profit from Change DAT O





Last May 7, Dato Ong delivered this address during the 37th AIM Commencement Ceremonies for the graduating classes of 2006

am a third generation entrepreneur. My grandfather left his village in Southern China about 100 years ago and came to Brunei when the country was very poor. Today, when one speaks of Brunei, one thinks of oil. But a hundred years ago, oil had not been discovered. The main product that Brunei produced then was a tanning dye extracted from Mangrove trees. I do not know why my grandfather chose to come to Brunei but I do know that he was very poor when he arrived. He had very few possessions. He started his business in a small wooden boat on the waterfront of what was then known as Brunei Town selling sweets and others small items. I do know that he worked hard, that he was a man of his word, that he was a good marketer, and that he built a successful business based on property and trading. I never knew my grandfather personally because he passed away when my father was a boy. But what I know of him tells me that business success, to be sustained, requires hard work, integrity, and what a well known Harvard professor refers to as the marketing imagination, which is another way of saying that you must do things differently in a way which your customers value. I believe, that even though the world has changed remarkably in the last hundred years, these values of diligence, of integrity, of innovation in presenting yourself remain critical to business success. When my father came of age, he inherited most of my grandfather’s estate. But because my grandfather was an enlightened man, he left a part of his estate to his daughters as well. In that respect he was different from any of the Chinese patriarchs of the time where women had very little role in business. My aunts took little bits of the estate and turned it into very successful businesses. From my aunts, I learned that entrepreneurial success is gender blind, that women, given the right opportunity, can be just as successful, if not more successful than men. My father worked hard at building the business. He was a pioneer of the hotel and cinema industry in Brunei. But in the later years of his life, he had a kind of transformation of spirit in which he began to focus more on what he could contribute to the community of which he was a part. My approach to business is very different from my father’s. 26


We are of completely different generations. But I learned from him that business success requires caring for the community of which a business is part. Corporate social responsibility is not just good for the soul but it is good business practice as well. There is a Chinese saying, which says that the first generation establishes the business, the second generation builds on it, and the third generation spends it. Because I am the third generation, I often think about what this saying is meant to say. Like all popular sayings, it is not to be taken literally. There are many

examples of successful third generation entrepreneurs. But like all popular sayings, there is a kernel of truth in it. And for me that kernel of truth means that success cannot be taken for granted, that past success is not a basis for future success, that what works well in one time need not necessarily work well in another, that each generation must make its own mark, earn its own respect, and make its own difference. How can you, the graduates of the Asian Institute of Management, make your mark? I will limit myself to one simple message. And it is this: the world that you go into is one of rapid change. The key challenge that you will face is to anticipate that change, to learn how to cope with it, to manage it, and to profit from it. Let us reflect about what change means. Let us reflect a moment on how the world has changed. When my grandfather arrived in

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Brunei as a poor trader a hundred years ago, the richest country in the region was Burma. Today, Burma is one of the poorest economies in the world. Fifty years ago, South Korea was a poor agrarian society with an income per person roughly the same as that of Ghana. In 1954, a World Bank report looking at the region declared South Korea and Taiwan to be basket case economies. These were economies that no one in their right mind would invest in. Today, South Korea is a member of the OECD, is a modern, industrialized economy. Its income per head has exceeded that of the world’s largest oil producer, Saudi Arabia. It is 2nd in the world in the manufacture of electronic memory chips, third in the world in the manufacture of automobiles. South Korean actors and rock stars are idolized throughout East Asia, and Samsung is the fastest growing, probably the most powerful brand in consumer electronics in the world. Fifty years ago Japan manufactured 30,000 cars. The United States manufactured seven million. Made in Japan fifty years ago was synonymous to poor quality. Fifty years later, despite being in recession throughout the 1990’s, the country is a major force in the global economy. Toyota is now the most successful car manufacturer in the world. Fifty years ago, China, our present miracle economy, was an extremely poor country. It was estimated that fifty years ago, the standard of living in China was not much different from what it was in the year 1700. Fifty years later, China is the world’s most dynamic major economy in purchasing power parity terms. It accounts for 30% of global output, greater than that of India, Brazil, and Russia put together. Forty years ago, our region, Southeast Asia, was in the process of disintegration. There was conflict within and between most of the countries within the region. A distinguished English scholar by the name of Charles Fisher in 1962 described Southeast Asia as the “Balkans of the Orient”. He saw a region that was falling apart before his eyes. Forty years later, today, the Association of Southeast Asian Nations (ASEAN), despite its challenges, is often cited as the model of regional cooperation. Twenty five years ago, Malaysia was an agricultural plantation economy. Twenty five years ago, Malaysian exports were roughly

80% primary commodities, 20% manufactured goods. Today, the situation is reverse. Malaysia is a newly industrialized economy. Its exports are roughly 80% manufactured goods and 20% primary commodities. Twenty years ago, when most of the members of our MBA 2006 class were toddlers, India was widely cited as an example of economic stagnation. Today, India is one of the hottest economies in the world, with an average growth rate of 7%. It is often cited with China as the face of the future. I tell these stories not because they are interesting in themselves, although I believe that they are interesting, but to demonstrate in concrete terms what change means in our lives. A hundred years ago, the 12 largest companies in the United States were American Cotton Oil, American Steel, American Sugar Refining, Continental Tobacco, Federal Steel, General Electric, National Lead, Pacific Mail, People’s Gas, Tennessee Coal and Iron, US Leather, and US Rubber. Except for General Electric, none of those names are recognized today, because none of those companies continue to exist in their original form today. Today, the 12 largest corporations in the United States are Exxon Mobil, Walmart Stores, General Motors, Chevron, Ford Motor Company, Conaco Phillips, General Electricthe only name from the list a hundred years ago, Citigroup, AIG, IBM, Hewlett Packard, and the Bank of America.


o what is the point that emerges from these two lists? Well one point is this: a hundred years ago, out of the 12 leading American companies, 10 were in the business of selling commodities. A hundred years later, the situation is almost completely reversed. Of the top 12 companies in the United States, only three are in the business of selling commodities. The other nine are in the business of services, manufacturing, and high technology. When you go out there into that world, you will want to know what are the industries of the future. Juan Enriquez, who is the founder of the Life Science Project at the Harvard Business School and the author of a fascinating book called “As the Future Catches You”, has said that the industries of the future are likely to be the following in the United States 30 or 50 years from now: software, aerospace, genomics, bio informatics, nano technology, photonics, micro materials , finance, Information Technology, robotics, and entertainment. Now how many of you know what genomics, bio informatics, nano technology, photonics, and robotics are about? If you do not, I suggest that you should commence your education immediately because you are likely to be working

or dealing with one of these new industries in the next decade of your working life. What do these changes tell us? What do these stories tell us? For me, they tell me that success, whether we are talking about nation or company or individuals, cannot be taken for granted. Competitive advantage is always changing and constantly shifting. The winners of today, unless they are prepared to adapt, are unlikely to be the winners of the future. The future belongs to those countries, to those companies, to those individuals that are able to anticipate, adapt to, and manage change. But they also tell us that in the future the basis of wealth creation will not rely on natural resources or on size but it will rely increasingly on knowledge and how knowledge is applied. They tell us that the future lies with smart countries, with smart companies, and with smart individuals. The Chief Executive of Rolls Royce in a recent interview that was reported in an issue of Newsweek said that the time is coming soon when we will no longer be speaking of developing and developed countries. The time will come soon when we will distinguish countries in terms of whether they are smart and not so smart. And smart countries are countries that create an environment where knowledge and its application can flourish. But there is a caveat in everything that I have said. In his very large book on the history of the world, a very distinguished English historian called John Roberts said that the study of history basically teaches us only two things. The first is that things will change much more quickly than what one would expect. And the second is that things will change much more slowly than what one would expect. And I suppose wisdom in life requires that we understand what the things are that are likely to change much more quickly and what are the things that are unlikely to change quickly. And let me make this point in another way. There is no doubt in my mind that in a world driven by knowledge, in a world that’s characterized by Thomas Friedman as a flat world, millions of intelligent young people in Bangalore, in Shanghai, in Estonia, and in Silicon Valley can all participate in creating new products and new services. It is a world in which our fate and our destiny are all connected, so that a crisis in a distant part of the world can affect the stock market in the United States and in Europe. There is no doubt in my mind that these two forces of a

knowledge-driven world, and globalization and technology, will mean that things will change much more quickly than what one would expect. In such a world, economic competitive advantage will constantly be defined and redefined. Economic success will constantly shift from one country to another depending on their ability to anticipate and adapt to change. But in focusing on change we need to also understand that not everything will change. Technology doesn’t replace the real values like courage and determination. Economic success is no substitute. Economic success will continue to require the kind of values that I learned from my grandfather and my father like hard work, integrity, social responsibility. And knowledge and technology are not the same things as wisdom. So in our focus on how to advance our own positions in life, the positions of our businesses, and our countries, we need to focus on change. We need to anticipate the things that are going to change quickly. We need to be prepared for those changes. But we need to also remind ourselves that some values do not change—courage, resilience—and that economic success itself is no substitute for human values like faith and love. The last word goes to a great man, Andrei Sakharov, a man of knowledge and wisdom. He lived in terrible times and at the height of the cold war, amidst a great deal of persecution in the former Soviet Union, he never lost his love and his faith in humanity. And at the height of those miserable times he wrote: “The future may be wonderful but it may not be. That depends on us.” So to you, graduates of the Asian Institute of Management, I say to you, have a wonderful future. Look at this rapidly changing world of ours with confidence. Realize that in order to do well you have to anticipate change. You have to understand its drivers. You have to prepare for it because it is unavoidable. But realize too that some things will not change, that there are perennial values that we should continue to uphold. Realize too that knowledge is not the same as wisdom and that economic success is no substitute for values like love and faith and courage.

Wisdom in life requires that we understand what the things are that are likely to change much more quickly, and what are the things that are unlikely to change quickly.

Editor’s Note: Dato Timothy Ong, a member of AIM’s Board of Governors is the managing director of the National Insurance Company Berhad and holds directorship positions across the industries of banking and finance, insurance, trading, and services.

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cover story


at the

Alumnus R O S E


R .

O R B I G O ,


20 0 5



e is probably the only President Estrada ever to succeed the incumbent,” joked Mr. Estrada’s predecessor, Roberto de Ocampo. With Mr. Estrada’s assumption of the helm of the Institute on May 16, 2006, AIM welcomed back one of its sons. A graduate (With Distinction) of Class ’73 and an international investment banker, Mr. Estrada not only has built a solid record of career successes and a global network that would benefit AIM; he also has the family background to boot. “I come from a family of educators,” he says. His father, Antonio Sr., was a doctor of laws who wrote different texts on the philosophy of law. His mother, Josefa Gonzalez, is a doctor of philosophy who taught at the University of Santo Tomas for 50 years. She obtained P H O T O G R A P H S



a Ph.D. in philosophy in the ‘30s—one of the first women to gain such an accomplishment. Her thesis adviser at UST: none other than Antonio Estrada Sr. “My father was the humanist; my mother was the disciplinarian,” relates Mr. Estrada. “We were five brothers; I’m the youngest.” As a child, he was “quite shy and reticent.” “I didn’t have all that many friends at that stage,” he recalls. “I probably had much more exposure to adults rather than kids my age. My mother was president of the Catholic Women’s League. In a flash of optimism in 1957, she ran for senator under an independent party called the Progressive Party of the Philippines.” It hardly helped curb his reticence that his brothers were oceans away. Three of the brothers lived with his father, who became a diplomat. Antonio Sr. was asthmatic and allergic to humidity. >>






‘ 9 9



cover story “He had terrible attacks; that’s why he became a diplomat. He moved to a dry place, to Madrid,” he explains. “Because I was the youngest, I stayed with my mother.” Despite this, Antonio Sr. died at a relatively young age in the early ’60s. “At least my eldest brother, Anton was already on his own,” notes Mr. Estrada. “Still, my mother was supporting me—in a school that was not cheap, De La Salle University.” Nevertheless, at De La Salle, he made his mother proud. He was elected Student Council chairman, and he obtained a double degree—

remembers how a young Francis would burn the midnight oil and ask to be woken up in time for the 8:00 a.m. class. “I had to play catch-up,” reasons Mr. Estrada. “A great majority of my classmates had work experience; I did not. We had a spectrum of ideological beliefs in my class... We had a great deal of diversity in terms of nationalities as well as professional backgrounds.” AIM tested his limits and in this way created his best memories of those days. “The case method is a great equalizer in the sense that every day is a battle for credibility,” he

However, the strike did not achieve its aim. “We still had to do the MRR,” he remembers with a wry smile. After a memorable time at AIM, he joined Procter & Gamble’s(P&G) brand management team. However, much as he enjoyed and learned much from the experience, it was in investment banking that he built a career in the following decades. “When I began my career in investment banking, I had no clue what that animal was,” he admits. “I was basically hired by the chief executive and president of what was then the leading investment bank

“Every day (of my MBM years) was a battle for credibility. If you didn’t have work experience, you had even more of a challenge. You had to learn and sound like you made sense. You began to understand behavior patterns: how to communicate, how to persuade, and most of all, how to listen.” BS Business Administration and AB, major in Literature, minor in Economics. But when he graduated with honors in 1971, the Philippines was in turmoil; his job prospects were dim. “I was involved in the First Quarter Storm,” he confesses. “It was apparent that the major companies would be somewhat concerned about hiring a student activist… People wouldn’t want to hire a rebel.” With no work experience, the “rebel” decided to take his Master in Business Management (now MBA) at AIM. “If we’re going to have a really just society, to me, what is important is management–independent of whatever social and economic system may prevail. It is a neutral set of skills,” he explains. To finance his studies, he borrowed from the Social Security System. The balance was a grant from his brother, who was AIM’s dean of external affairs at the time. Catching Up

From day one, he took his studies very seriously. His dorm roommate, Alex Tanwangco,

says. “If you didn’t have work experience, you had even more of a challenge. You had to learn and sound like you made sense. You began to understand behavior patterns: how to communicate, how to persuade, and most of all, how to listen. Those are all basic skills and rules of life… We were challenged intellectually, socially, emotionally. So it really was a microcosm of a race, a race that is life.” But however tough the race was—or precisely because it was tough—the classmates became friends. “To this day, 33 years later, our class remains very, very close. I have a number of very good friends in our class, as well as in the class ahead and behind us as well.” MBM ’73 made AIM history—by becoming the first to stage a strike. “It was a strike against the MRR (management research report). We had strong feelings about the MRR… The basic thesis, I believe, was that for the amount of effort involved, it really didn’t achieve the integrative objectives for which it was set.”

young Francis with mother Josefa

Francis spent his teenage years at the De La Salle College

in Asia, Bancom, to be his executive assistant. That was Sixto K. Roxas—an exceptionally gifted technocrat and investment banker who later became president of AIM.”


r. Estrada first met Mr. Roxas at a “teach-in” in the latter’s home, when he was a student leader. “Then I didn’t hear from him for another two years, until I got a call inviting me to lunch at his office: he was looking for an executive assistant. Because he was a visionary and an exceptional intellectual, to me it was a no-brainer,” he says. “I didn’t even ask him how much I was going to be paid. I made a leap of faith… It was going to be an exciting journey.” The excitement began soon enough. As a king orders a knight to build him a castle, so Roxas sent him to Indonesia to “establish an institutional presence” for Bancom. “What I had

He graduated with a double-degree, with honors, in BS Business Administration and AB, major in Literature, minor in Economics from the De La Salle University in 1971.

to work with were his regional merchant banking concept and his relationships. He obviously knew, and was well regarded by most of the Central Bank governors and finance ministers in the region,” he narrates. In the early ’70s, following a trend towards consortium banking, the Central Bank of Indonesia, in partnership with a number of leading international banks, established a consortium merchant bank. But by the mid-‘70s, it was on the brink of collapsing. “The proposal was to turn this merchant bank around. And a team, of which two were AIM graduates, led by this 26-year-old who had been a year and a half in investment banking, was going to do this,” he continues. “When you are young, you are bold and fearless. And when your boss believes you can do anything…” But the young man proved his boss right. “We formulated a strategy and, with a lot of luck, turned the institution around in a year,” he states. In the second year, First Indonesian Finance and Investment Corp. (Ficorinvest) became the country’s largest and most profitable investment bank and maintained that position for the next 15 years. In contrast, the situation was far from rosy on the home turf: after years of success, Bancom was encountering difficulties in the Philippines. As a result, the Bancom board mandated Mr. Estrada, the country head, to sell their interest in Ficorinvest. It was, for him, a “most painful experience.” “Having put your heart and soul into it and having achieved some measure of success, you then

realize you had no ownership in the enterprise. So, I had to negotiate with our partner, the Central Bank. They agreed to buy back our position at a profit to us—something heretofore unprecedented in Indonesia.” He subsequently left Indonesia to join the Bancom regional holding company in Hong Kong for a year and help set up its regional base in Singapore for another year. “But that wasn’t as exciting in the sense that you’re not really running your own shop,” he observes. The sobering episode at Ficorinvest fed a germinating idea to start his own business.

In 1971, Francis entered the Asian Institute of Management at the age of 21.

Francis obtained his Master in Business Management degree, with distinction, in 1973. His academic concentration was in Finance and Marketing.

After identifying a market niche, he developed an Asian merchant banking concept—without immediately knowing to whom he would sell it. “But this was going to be my next step in my life,” he declares. “At this time, Mr. Roxas, apart from being my boss, had become a very dear friend and mentor. He had also become vice chairman of American Express International Banking Corporation. His chairman, Richard Bliss, had been a co-founder of Bancom. I showed Mr. Roxas my concept… He said, ‘As it happens, Dick Bliss is thinking of retiring from American Express, and he’s always been interested in Asia. Maybe I should get you guys together.’ Of course, I knew Mr. Bliss as he was a co-founder of Bancom and chairman of a major shareholder… So, with the arrogance of youth, I sent him my concept.” The concept materialized into the regional merchant bank Asian Oceanic Group. Bliss underwrote its pre-operational working capital requirements, during which time they (Bliss and Estrada) were able to raise the capital for the bank from a major U.S. insurance company (Cigna), the Kuwait Investment Authority, and a group of international investors. Headquartered in Hong Kong, Asian Oceanic soon had operations in Hong Kong, Singapore and New York, and joint ventures in Manila, Jakarta, and Istanbul. “We started rocking and rolling, and did so for 10 years. Dick was chairman and chief executive, and I was president and COO,” he explains. “After 10 years, it became evident

cover story the idea of taking the risk and, hopefully, realizing the returns... Thus, William E. Simon and Sons (Asia) was established to make investments in Asia, and I was the chief executive.” The partnership lasted for six years, after which he decided to return home. After establishing a number of companies and after more than thirty years in the “extremely exciting, intellectually challenging” field of investment banking, he has assumed a post that may prove to be the most challenging so far—to help his alma mater “find its place under the sun... in the face of contemporary realities.” Making a Difference

that to do what we wanted to do, we were going to require substantially more capital. We therefore started discussing with potential sources of additional capital.” One potential source was former U.S. Treasury Secretary William Simon, the “inventor” of the first leveraged buy-out. “He negotiated to buy Asian Oceanic,” recounts Mr. Estrada. “We couldn’t agree on price.” In the end, Simon convinced Mr. Estrada to join him and establish a partnership that would focus on the risk-taking function of an investment bank. “I was much more enamored by

During the turnover ceremony on May 16, Mr. Estrada announced, “To me, AIM bears witness to the struggle, the learning, and the many deep relationships forged here.” But sentimental value aside, he had other reasons for accepting the position. “After 38 years, AIM is at an important crossroad. The choice of direction will have a profound impact on its sustainability and its success or failure,” he states. “With a sound multi-stakeholder strategy, goodwill all around, and a willingness to execute decisively, perhaps I could make a difference.” His fellow alumni received the news warmly. Still, “a number of my local friends

asked, ‘What sort of insanity has overcome you?’” he shares. “While the challenge may well prove insurmountable, I am a believer and I am determined to give it my best shot.” The moment he received the presidential mace, Mr. Estrada acted out a favorite phrase of his: he hit the ground running. He conducted one-on-one meetings with faculty to gain their insights and suggestions. He met with key clients, lined up research initiatives and met with potential partners. He rationalized functions of units under the president. And most relevant to alumni, he began townhall style briefings with various classes and programs, which would be replicated during his visits, starting in August, in Indonesia, Singapore, Malaysia, and India. “The purpose is to introduce myself, let them know what is happening, share a vision of the future and secure their engagement with AIM,” he says. His plans and projects are related to the implementation of AIM Strategic Plan 2011, which focuses on building an “AIM Experience” for students. “I like the term AIM Experience. I think that should involve a combination of various things,” he states. “No. 1, I believe every student in whichever program must appreciate and experience the rigor of that learning experience. No. 2, it is important that the AIM Experience is founded on a very firm and strong ethical base. No. 3, it will require much more work—I would like AIM to be much, much more Asian… Our students—to a far greater degree than any other institution in the region—should be immersed in the business practices, culture and nuances of Asia.” To realize these, he is sticking to an old formula—KISS. “We’ll try as much as possible to ‘keep things simple’—overcoming an academic tendency to manifest brilliance in the form of complexity... Being a multi-stakeholder community, we will seek to engage various partners, supporters, and donors internation-

Francis took the Advanced Management Program in Harvard Business School in 1989. Photo shows him with classmates belonging to CAN group 10

With daughter Ana Cristina, 100 year-old mother Josefa, son Anton, and wife Cristina

ally. Finally, the hardest of all—we will try to walk the talk. This has everything to do with thoughtful and disciplined execution.” As a great believer in this, Mr. Estrada detests the ‘pwede na’(this would do/anything goes) attitude. AIM influenced his drive for excellence and gave him a strong work ethic. “At AIM, I was brought into a rigorous learning environment. I had many more knowledgeable and experienced classmates. I had to survive,” he explains. “In what was an eminently competitive but meritocratic culture, it was important that you not be considered a ‘bolero’ (joker).”


dded to his AIM experience were his years at P&G and Bancom, two institutions renowned for their excellent work ethic. “I was privileged to work with enormously gifted people,” he notes. That was where he learned that “there are many smart people around”. He concludes that, “if all you’re betting on is your smarts, you are on a ‘slippery slope.’ The real difference is often character, determination and, a strong work ethic.” Mr. Estrada’s daily schedule seeks a desire to achieve a balanced life. Each morning he is up before 6:00. Three times a week, he is at

dean of graduate school at age 75, feeling that her family was making an undue fuss about this,” he relates with a smile of bewilderment. “In all my years, I can only remember once when she had a vacation. She always carried a full teaching load.” A “great fan” of his 100year-old mother, he was thrilled to be able to buy her a home during his expatriate days. His voice resounds with warmth when he talks of her. “She now lives with me.” The other person that inspires pride and affection in Mr. Estrada is the other significant woman in his life, his “wonderful, wonderful partner” Cristina, a Literature teacher, a painter, and a board member of several NGOs. “She is my best friend,” confesses Mr. Estrada. “My wife Cristina is an incredible person… She keeps me grounded.” The couple became grandparents last January, when their daughter, Ana Cristina, bore a baby girl in Denver. “Cristina and I were delighted to be with Ana Cristina from her first contraction,” he reminisces, smiling. His son Anton, is a bachelor who “worked in IT in Hong Kong and then decided to rediscover his country. He has been working in the Philippines for a couple of years.” The Estradas usually vacation in Europe. They have a home in Madrid which they use

On weekends he would visit and bring the Castila prisoners some food. One day, he brought along his young daughter. And that was how the romance began. After being freed and after finding work with the ‘Tabacalera,’ my grandfather asked to marry my grandmother.” Mr. Estrada is “very grateful” for having been given the opportunity to travel extensively and live overseas. “Cristina and I genuinely enjoyed every place we ever lived in; we have good friends in each of those places.” Apart from travel, Mr. Estrada relaxes by playing tennis, enjoying wine, good food, and the company of friends, and reading history, philosophy, Deepak Chopra, and “innovative approaches to better understanding ourselves.” He is also into light jazz, Broadway, Latin, and traditional Filipino music. “I don’t have anywhere near as much time as I would want to,” he reveals. “The one thing I would like to do regularly, but have not been able to, is meditation.” He describes himself as “a person who wants to be spiritual.” He considers himself blessed in countless ways, particularly having been “exposed to so many exceptionally talented and wise people.” “As you grow older, you begin to see your limitations more clearly,” he notes. “It brings home the point that we are simply stewards of

“After 38 years, AIM is at an important crossroad. The choice of direction will have a profound impact on its sustainability and its success or failure... With a sound multi-stakeholder strategy, goodwill all around, and a willingness to execute decisively, perhaps I could make a difference.” the gym for one and a half hours. On Mondays, Wednesdays, and Fridays, he hears Mass at 7:30 a.m. He usually arrives in the office at 9:00 and stays until 7:30. On weekends, he catches up on his correspondence. The foundation of his work ethic was laid by his mother. “She reluctantly retired as

as base. “My maternal grandfather was from Santander. He was a conscript who came to the Philippines to fight in the SpanishAmerican War,” narrates Mr. Estrada. “He was captured and became a prisoner in Isabela. My mother’s maternal grandfather was a prominent member of the local community.

all we have. Any advantage or unique endowment we have is of no merit to us. These simply represent ‘chips’ given us at the start of our ‘game’. As the parable of the talents teaches, everything depends on what (and for whom) we do with those chips... and that is the bottom line.”

With wife Cristina, his “wonderful, wonderful partner” Francis with former AIM President Roberto de Ocampo, AIM Co-Chairman Joey Cuisia and AIM Alumni AssociationPhilippines Chairman Ricardo Pascua


AIM Placement Boosts Up THE CAREER MANAGEMENT SERVICES has embarked on aggressive placement of AIM students to reputable business organizations in Asia, Europe and the US. Last year, 75% of MBA students were placed six months after graduation. With the active help of alumni GSB did company visits in India, Singapore, and HongKong in the last quarter of 2004, resulting in several international recruiters such as Cognizant Technologies Solutions, Johnson & Johnson, and British American Tobacco coming to AIM. In addition, UK-based CC Sons Consulting firm recruited three MBA students, who are now based in London. In 2005, we leveraged the summer internship program in our placement. IBM, J&J, HCL, Satyam and HSBC have short-listed and given final offers to our first year students. CMS is also building relationships with top local firms like San Miguel, PLDT, IBM, and Unilever. A total of 12 companies did on-campus recruitment, 13 did video-conferencing, and 15 recruited through job postings. CMS also invited 95 companies to view the profiles of the students on-line resulting in 79 job offers. Upon graduation, 52% of batch 2006 were placed. This number excluded students who pursued entrepreneurial tracks or who were company-sponsored. The placement web page was also put in place to allow both prospective recruiters and enrollees to browse through our placement statistics. Profiles of our students may now be viewed at http://www.wsgsb.aim. edu.ph/login.asp. The password and username to access the profiles may be secured by sending a request letter to placement@aim.edu. While there has been a quantum leap in AIM placement activities, we are still not as good as competitors like the IIMs in India, which boast and deliver 100% placement from day 1 of company visits. Much has to be done to be at par with them. In todayâ&#x20AC;&#x2122;s hyper-competitive environment, an MBA school placement record has become the main driver of quality applicants and enrollees. We will continue to make quantum leaps in upgrading this service for students. We will continue to ask alumni to help build contacts, introduce us to recruiters, and even place grads themselves. 34

A I M A LU M NI LEA D ERS HIP M AGAZIN E J u ly to September 2006

AIM Jobs! Advertising, Systems/ IT, Consulting Operations

Sales & Marketing

General Management


Abu Dhabi, Australia, Dubai, Hong Kong, Indonesia, USA & Vietnam











300 250 200











Philippines (in million pesos)


150 100

India (in lakhs)

Hong Kong (in hundred thousand HK$) Based on annual income

3M, ABN-AMRO, Accenture, Adventity, Alcatel, Ambergris Solutions, American Express, Astec Power, Ayala Land, Bain Company, Bank of America, Barclays Capital, BAT, C&C Sons Ltd. – UK, Cadbury, Chemoil, Citigroup - New York, Chinabank, Nokia, Cognizant Technology Solutions, Convergys, Creative Technologies, Credit Suisse First Boston, DBS, Delbros, Dell, Deutsche Bank, Diageo, PWC, Eli Lilly, Emerson-Copeland, Enderun Colleges, Ernst & Young, Essar, Unilever, E-telecare, Filinvest Land, First Gas, Fundacion Santiago, Genpact, Globe, Great Depot, HCL, ICI Paints, SMART, IBM, ICICI, IFC, Pfizer, Indiabulls, Indian Tobacco Company, Infosys, ING, Intel, Intellectual Property Ventures Group (IPVG), San Miguel Corporation, Investment & Capital Corporation of the Philippines (ICCP), J&J, JG Summit Holdings, Johnson Electric, KPMG, Lehman Brothers, Lucent Technologies, Manila Water, Mastek, MD Juan Enterprises, Meridiantelekoms, Mckinsey, Microsoft, MindTree, MISnet, Morgan Stanley, Nestle, OCBC Oracle, Orange, Ortigas Group of Companies, PDS, Pepsi, Philam Financial Advisory Services, Philip Moris Int’l, PT Bintang Toejoe – Indonesia, Q-tel – Qatar, Reliance, Satyam, Seaoil, Sencor Systems & Encoding Corporation, Singtel, Headstrong, Standard Chartered, Tata Consulting Services, Temasek Holdings – Singapore, Toilette - Australia, Japan, Korea, China,Hongkong, Singapore Turner UN World Food Program, Wipro

ALUMNI S.E.R.V.E. Lifelong Opportunities for AIM Alumni to Stay Connected The Asian Institute of Management provides a wealth of resources to you, our graduates, to enhance the continued impact of your education even after graduation. With a network that consists of more than 30,000 alumni from five continents and 70 countries, the Institute envisions a vibrant community life and relationship between the Institute and its alumni. To help build and strengthen the AIM-Alumni relationship, AIM Alumni Relations services the Institute’s graduates through S.E.R.V.E.: Services and benefits Executive education Recognition Ventures Events

AIM ALUMNI RELATIONS OFFICE Tel.: (632) 892.4011 locals 541, 533, 540, 331, 340 or 359 Fax: (632) 893.7410 E-mail: aimalumni@aim.edu Website: www.aimalumni.org


A I M A LU MN I L E A D E R SH I P MAGA Z I N E Ju l y to Septem be r 20 0 6


alumni associations Ikatan Alumni AIM Indonesia (IAAIMI)


THE ASSOCIATION OF AIM ALUMNI OF Indonesia (Ikatan Alumni AIM Indonesia, IAAIMI) held a gathering last June 2, 2006 at the Rama Room of Bumi Karsa Hotel - Bidakara in the South of Jakarta, to share knowledge and experience among the alumni. The activities included a welcome dinner and a panel discussion on the topic, “Indonesia’s Medium and Long Term Economic Prospect” (“Prospek Ekonomi Indonesia Jangka Menengah-Panjang”). Speakers were Dr. Dradjad Wibowo (Member of House of Representatives Republic Indonesia (DPR-RI) Commision XI ) and Dr. Raden Pardede (Vice President of Priority Director of Management

Asset Company). The panelist was Mr. Dennis Firmansjah, MM 1994, while the moderator was Mr. Christovita Wiloto, MM 1998. Mr. Bun Bunan EJ Hutapea, MM 1980 and chairman of the Association of AIM Alumni of Indonesia provided the welcome remarks. Mr. Gatot Sugiono, MM 1998 and Secretariat General of IAAIMI was also present both as an advisor and official of IAAIMI. This forum was part of the implementation program of IAAIMI for 2006, which is a continuation of the last conference conducted in 2005. In his message, Mr. Bun Bunan EJ Hutapea said that the gathering was a great


opportunity to share information and ideas among all AIM alumni. At the same time the networking opportunities can benefit each alumni in terms of improving their performance and dedication to their own company or organization. Mr. Bun Bunan hopes that the result of this forum could improve the function of IAAIMI, and will give a solution to national issues. Mr Bun Bunan added that this kind of forum should be held regularly. Mr. I Made Subaga Wirya, chairman for this activity, reported that the gathering was well attended by 60 people. This attendance was an achievement for IAAIMI, considering the busy schedules of the Indonesian alumni community. Furthermore, this activity is expected to strengthen the existence of AIM alumni in their respected communities. The enthusiasm of the participants was well perceived especially in the panel discussion presented by Mr. Raden Pardede and Mr. Drajat Wibowo. The panel discussion focused on giving suggestions to the government to drive the growth of the economic real sector and on exposing ongoing country issues. The summary of this forum will not only be sent to Indonesia’s government but also to the members of IAAIMI.

Presidentâ&#x20AC;&#x2122;s Cup

NOVEMBER 1-4, 2006

SPECIAL PACKAGE RATE: US$595* Inclusive of airfare via Royal Brunei Airlines, land arrangements, accommodations (twin-sharing) and breakfasts at the Inna Putri Bali Hotel, shopping and cultural tours, and lunch during the shopping tour. Excluded in the rate: Travel tax of US$31, YQ tax US$57 and Golf Package of US$120 at the Nirwana Golf Club. Rate is for participants from the Philippines. Rate for participants coming from other countries is at US$236 (excluding airfare, taxes and golf package). For inquiries and reservations, please send an email to Ms. Tere Aniago-Espiritu of the Alumni Relations Office at maniago@aim.edu or call 892-4011 local 340, 331, 2103 or 2105, (fax) 893-7410 or send an email to aimalumni@aim.edu. A I M A LU MN I L E A D E R SH I P MAGA Z I N E Ju l y to Septem be r 20 0 6




Hereâ&#x20AC;&#x2122;s an easy-to-do Dragonfly Stew recipe for exotic food lovers

Dragonfly Stew Ingredients: 6 shallots, sliced 1 tbsp. coconut oil 2 cloves garlic, sliced 75g ginger root 1 fresh chili pepper, diced 330g dragonflies, wings removed 1/2 liter coconut milk

Preparation: Brown the shallots in the oil and add the garlic and ginger. Mix in the chili and dragonflies then stir-fry for about 10 minutes. Once the dragonflies are browned add the coconut milk and simmer for 5 minutes. By leaving out the coconut milk and serving the fried dragonflies with rice and peppers you can create a different dish.

Note: Dragonflies must be thoroughly cooked before being eaten.


How does roasted dragonflies sound for a snack? Nauseating? Perhaps for the less adventurous. S H E R B E T

K AT I G BA K- M A N A L I L I ,


N INDONESIA, PARTICULARLY in Bali, dragonflies are a popular snack. These beautiful and spectacular flying creatures are either charcoal grilled or stewed in coconut milk with ginger, garlic, shallots and chili pepper. Dragonflies, with more than 5,000 known species, are extremely difficult to catch. The Balinese have an effective method by which they dip strips of palm wood into a sticky jackfruit tree sap. The stick with latex is then tied to a longer and sturdier stick. With a quick tap, a resting dragonfly is stuck to the plant juice. It is interesting to note that many people all over the world, especially in the Asian region, eat insects and other ILLUSTRATION: JASON MOSS


A I M A LU M NI LEA D ERS HIP M AGAZIN E J u ly to September 2006


20 0 5

arthropods both as a delicacy and staple. Disgusting as it may be for others, insects such as dragonflies are actually nutritious. They are a very good source of protein per pound as lean beef. And they are surprisingly delicious! If you can stomach dragonflies, why stop there? Try other Balinese exotic dishes such as flying foxes, rice-field eels and worms. Dragonflies are among the most ancient of the animal kingdom, dating back 250 million years. They do not bite or sting humans and play a significant role in controlling the populations of harmful insects, such as mosquitoes. Recipe source: http://www.liverpoolmuseums.org.uk

The AIM Graduates Association of Malaysia was established in 1976 with the objectives of furthering management education through representation and development in social, economic and community enterprises, providing an avenue for past graduates to meet each other and to keep in touch with their Alma Mater. Since November 1984, Tun Musa Hitam has served as Patron of Kelab AIM. The Kelab also benefits from the advice and leadership of the AIM Governors for Malaysia, who are Tan Sri Dato’ Seri (Dr.) Ahmad Sarji Abdul Hamid and Tan Sri Dato’ Dr. Lin See Yan. Past Governors include the late Tun Ismail Md. Ali and Tan Sri Geh Ik Cheong. Structured in line with modern management organizations, the alumni is managed by a Board of Management consisting of 10 members called Directors. The Board comprises a President, a Vice-President, a Secretary, a Treasurer and three Directors, all of whom are elected by the general body. Among its primary objectives are “to enhance and maintain the highest standard of management practice in Malaysia” and “to provide advice and other related services to students intending to pursue a course at AIM.” Renamed on 20 December 1994, Kelab AIM Malaysia takes pride in having organized several activities including seminars, management courses and continues to work in ways to serve its members and its community. The Board pursues its 3Ps Motto - Participation, Proficiency and Professionalism. With a network of more than 4,000 Malaysian alumni who have assumed managerial positions in corporate enterprises, family corporations, government and development agencies, the Kelab provides a large pool of resources that can be tapped into by accessing its 30,000 AIM professionals in Asia and the world. The Kelab is taking steps to make this network a reality readily available to all especially to its stakeholders - the alumni!




Jamu-Secret to Better Health

For the treatment of mild complaints and sometimes quite serious ailments, most Javanese and Madurese will swear on the virtues of Jamu, a traditional herbal concoction. Hundreds of different Jamu remedies have nearly the solution to all kinds of illnesses. Batik

For the Javanese, beautiful hand-painted batiks are not merely pieces of clothes but carry much more significance that symbolizes life itself. Different regions have their own unique style; Pekalongan with its Chinese influence design and pastel color; Batik made in Solo and Yogya are traditionally coloured blue, symbolizing earth, brown symbolizing fire and white symbolizing water and air. Ancient Kingdoms

The oldest kingdom in Indonesia is the Kutai Kingdom, located in what is known as Tenggarong, 39 km from Samarinda, the provincial capital of East Kalimantan. Size of Papua

To get a rough idea: 1,200 kilometers 40

from west to east, or from Sorong to Jayapura while it is 736 kilometers from Merauke to Jayapura or from north to south. Simple Bahasa Indonesia

The following basics might prove useful during your time in Indonesia and could help you make some new friends. GREETINGS AND CIVILITIES: Good Morning (until 11 a.m) = Selamat Pagi Good day (11 a.m. to 3 p.m) = Selamat Siang Good afternoon (3 p.m. to 6 p.m) = Selamat Sore Good Night (after 6 p.m) = Selamat Malam What is your name? = Siapa Nama anda? My name is.... = Nama Saya.... Thank you = Terima kasih You’re welcome = Kembali How are you? = Apa kabar? I’m fine = Kabar baik Please (asking for help) = Tolong Please (giving permission) = Silahkan

A I M A LU M NI LEA D ERS HIP M AGAZIN E J u ly to September 2006

Say it with Flowers The largest flower in the world, Rafflesia Arnoldi, is native to Indonesia. The flower was named from Sir Stamford Raffles. Even though it is huge, it doesn’t smell nice like roses or jasmine flowers, for Rafflesia is an insect-eating flower.

Sorry = Maaf Excuse me = Permisi QUESTIONS: How much? = Berapa? What’s the price? = Berapa harganya? How many kilometers? = Berapa kilometer? Where is....? = Di mana ada? Which way? = Ke mana? May I take a photo? = Boleh saya foto?

Where do you live? = Anda tinggal di mana? What is this called in Bahasa Indonesia? = Apa namanya ini dalam bahasa Indonesia? Do you have.....? = Ada....?

Giant Sea Creatures

In Derawan, sea turtles (green, hawksbill, scarlet and star fruit turtles) come on shore at night to lay their eggs.

Four Names for Everyone

Balinese have four basic names for their children, namely, Putu/Wayan, Made, Nyoman and Ketut. If a Balinese has the fifth child, he/she will be named Putu/Wayan.

Dragons of the East

USEFUL WORLD AND PHRASES I don’t understand = Saya tidak mengerti I don’t want it = Saya tidak mau I want to go to.... = Saya mau ke.... Yes = Ya No = Tidak Toilet = Kamar Kecil, WC (pronounced “way say”) Telephone number = Nomot telepon Hot = Panas Cold = Dingin Delicious = Enak The Best Diving in the World

With an average 200 feet and an outstanding display of marine habitat, Flores is

A komodo dragon may reach up to 3 meters in length and weigh 150kgs. These descendents of dinosaurs may lay up to 30 eggs at a time. United in One (Language)

Indonesia has more than 300 ethnic Indonegroups and languages. However, most Indone sians converse in Bahasa Indonesia. The Flag: Symbol of Freedom

Indonesia’s national flag is red and white. During the War of Independence against the Dutch (whose flag is red, white, and blue), countless freedom fighters fell for trying to

a haven for divers, snorkelers, photographers and marine biologist. With up to 40m visibility, the coral reefs of Flores Sea are among the best in the world and beautifully preserved. tear the blue part from the Dutch flags at every military station. The Irony

Even though Bali is almost identical to arts and artists, Balinese language has no word for art and artist. The Artist’s Dreamland

Many celebrated painters from across the globe chose to reside in Indonesia. Antonio Blanco is one of them. More Than You Can Count One of the Seven Wonders of the World The largest Buddhist temple in the world is Indonesia’s Borobudur. It even inspired the building of Angkor Wat in Cambodia.

Indonesia consists of more than 13,000 islands, making it the largest archipelago in the world. However, most of the islands are uninhabited.

The Indonesians’ Love of Celebration

Even though national income per capita per annum is US $ 1140 (World Bank, 2004), an average wedding in big cities approximately costs about US $ 5000. It’s usual to send out 1000 invitations and more.



“The Peso Exchange Rate: Why Are We So Poor?” Book Review

“Peso falls to 2-month low of P51.71 to $1,” screamed an Inquirer headline last Saturday. As many now recognize, this is either good news or bad news depending on the reader. C I E L I T O F . H A B I T O

IF YOU’RE AN EXPORTER OR WORKER in an exporting firm including a tourism facility, or an OFW or his/her family member, or simply have some dollars stashed away, you would be probably cheering. But if you are an importer, have a foreign loan to pay, or were planning on a vacation abroad, you’d be unhappy. If you are an economist taking a longer perspective and looking at the overall welfare of the Philippine economy, you’d be more cautious and would probably reserve judgment until a longer term trend becomes apparent. Fuschia book

A new book just out makes interesting reading to one who’d like to take this longer term perspective on the exchange rate. The thesis of the book is compelling: Our economy has performed the way it has (i.e. miserably) over the past decades primarily because of mismanagement of our foreign exchange rate all through these years. What makes “The Peso Exchange Rate: Why Are We So Poor?” unique is that it was written not by an academic economist but by a practicing one. Rey Angeles, who studied economics in Ateneo and management at the Asian Institute of Management, writes on this burning issue not just on the basis of what textbooks and journals say, but more importantly, from what he has learned directly as a successful entrepreneur who has left and weathered the direct impacts of the peso movement over the years. I can’t tell whether his well-researched book will be read in spite of his not being among the familiar names in economics circles, or will in fact be read because of it. 42

I’d say the book’s credibility and authoritativeness precisely draws from the fact that it was written by one with both the academic training and the hands-on experience to thoroughly understand what he is writing about. In any case, the book’s color (Angeles calls it his “Fuschia Book”) is as provocative as the thesis it expounds, and will at the very least draw attention on the bookstore shelves. Tool, not thermometer

Angeles debunks the notion that the foreign exchange rate should be seen as a mere thermometer that reflects the state of the economy. It should instead be seen as a tool for national economic development. He asserts that the Philippine economy’s structure has been severely deformed by the mismanagement of the Peso’s exchange rate since the end of the Second World War. Our past economic managers, and perhaps the Filipino public in general then (“our parents”), made the choices they did then for understandable reasons, choices which essentially boiled down to making the peso more valuable than other currencies in the neighborhood. Our neighbors’ currencies started out much weaker than ours in the postwar period (e.g. the Korean Won at 2.50 to a dollar, Thai Baht at 22 a dollar) and purposely kept weak, which ultimately became the very reason why they are much stronger now. Economic evolution

In other words, the evolution of our respective economies was determined rather crucially by how our authorities managed our respective exchange rates from very early on. As a grade schooler in the early 1960s, I distinctly remember how the P2=$1 exchange rate was printed on the back of school notebooks along with the metric conversion tables and the multiplication table. That’s how fixed it was. The 1946 US Bell Trade Act fixed it there upon the end of the US rule. Our trade deficit successively widened in

A I M A LU M NI LEA D ERS HIP M AGAZIN E J u ly to September 2006

the ensuing years, but rather than devalue the peso, the government chose to impose exchange and import controls that set the future course of the Philippine economy to be marked through the decades ahead by subsidies, incentives and trade protection to hand-picked industries and companies. It also provided the fertile ground for the dollar black market, smuggling, bribery, and general rent-seeking that became deeply ingrained in Philippine business culture ever since. It was not until the ‘60s when the P2 exchange rate was finally abandoned by President Diosdado Macapagal, and the peso devalued by close to 100 percent, to P3.90. But the culture of selective controls and protection had been ingrained, and more overvaluation was to come. Equalizer

The Philippines could have chosen a different course in the ‘50s, Angeles asserts, and brought us to a very different situation now. Devaluation then could have provided graft-free and across-the-board protection for domestic import-substituting industries without the need for import controls. It would have also made smuggling uncompetitive against local products, preventing it from taking such a foothold in the local market. In short, devaluation could have been the great equalizer, providing a level playing field for all industries to find their proper place in the economy based on viability and performance, with minimal government intervention and without the cost of subsidies and incentives. The book makes a compelling case against having too strong a currency, and does so in language that is more like red than fuschia (i.e. a lot easier to spell, if you remember that old Erap “favorite color” joke). Editor’s Note: Reprinted with permission from Mr. Cielito F. Habito’s “No Free Lunch” column from the Philippine Daily Inquirer, April 24, 2006, page B4. “The Peso Exchange Rate: Why Are We So Poor?” is available at National Bookstore (Philippines) outlets or email reyangeles@multi-line.com.ph.

South Korea China




Malaysia Singapore



AIM President Francis E strada Alumni Meetings and Networking

Aug. 20-26 Aug. 31-Sept. 1 Sept. 8-10 Sept. 9 Sept. 10 - 12 Sept. 27 – Oct. 4 Oct. 6-7 Oct. 16 - 22 Nov. 1 - 4 Nov. 12 - 17 Dec. 1-2

Jakarta, Indonesia Cebu, Philippines Kuala Lumpur, Malaysia Kelab 30th Anniversary, Malaysia Singapore India Davao, Philippines China President’s Cup, Bali, Indonesia South Korea – Japan Clark – Baguio, Philippines

For more information, contact the AIM Alumni Relations Office at (632) 892.4011 local 340 or email aimalumni@aim.edu.

Ricardo Pascua, MBM 1971 The Salt in the AIM Dish


A I M A LU M NI LEA D ERS HIP M AGAZIN E J u ly to September 2006

spotlight IF THERE IS A MODEL FOR SUCCESS AND THE CONFIDENCE that comes with it in stance and in spirit, an ideal representation would be Ricardo “Ric” Pascua. And yet, unbeknownst to many lies a deep spiritual rock from which he draws his strength and inspiration. His formidable presence commands instant respect when he saunters into a meeting. The self-assured bearing, the “no-nonsense-let’s-get-things-done-quickly” air commands vigilance and attention from all who encounter him. The silence that pervades a room when he enters is respectful but friendly, businesslike but casual. He minces no words to address situations immediately without patience for the usual meeting meanderings and lackadaisical personalities. Ric Pascua, as the new Chairman of the 17,000+ members of the Alumni Association of AIM, Philippine Chapter, will surely get things done—and done fast. AIM Memories

After graduating from Ateneo de Manila University in 1969 with a Bachelor of Arts in Economics (Cum Laude), Pascua proceeded to the Padre Faura campus of the Asian Institute of Management for his MBM where he graduated in 1971. His fondest memories of AIM have to do with WACs (Written Analysis of Cases), poker games and elevators. Dealing with the pressures of WAC deadlines found Ric and his dorm mates staying up very late, accomplishing their papers…and having a mean round of the card game to dispel stress. “One time, as one of my classmates rushed to beat the 8 a.m. WAC deadline, he found himself accompanied in the elevator by our professor, Santi Dumlao. As he was about to drop his WAC in the box when the elevator opened, Santi held his arm and declared- You’re late man!”. When Pascua submitted his first WAC, he fondly recalls Prof. Dumlao storming, “I did not ask for a laundry list!” Pascua also recalls other excellent professors such as Fil Alfonso for HBO, Bobby Lim for Business Policy, and Mel Salazar for Management of Change. “In the first quarter of the first sem, the professors scared us to death. In our pigeon holes, we were given a lot of materials to cover with so little time. CAN groups were still informal then- you could choose your group mates. But after we survived the first sem, we figured out how to deal with the system and understood the rules of the game—so we were better able to manage our course, our professors and ourselves to enable us to speak up in class.” Their class theme song? “The Impossible Dream”, reflecting their quixotic aspirations for perfection.

“It is very important to choose to do the right thing, not just do things right.”

“In our strategic planning session with the AAAIM Board in Canyon Woods last June 15, we were talking about a battle cry—‘AIM Reborn!’ Aside from this, we have decided to have one major tradition to establish and one major thing to accomplish during the start and finish of the term.” Although the latter is still under wraps, Pascua enumerates their other plans for 2006-2007. “We would like to redesign the homecoming event and have a two-day alumni conference where our graduates will feel that there is something worthwhile to come home to, something that responds to their very often expressed desire to have the Institute provide opportunities for continuing learning to be updated in current management and leadership trends. We are thinking of inviting speakers on the first day to share their views on topical issues—maybe on corporate governance, maybe on political issues such as charter change, and on new business trends like business process outsourcing. The second day will be laced with a lot of fun with activities such as the golf, badminton, and bowling tournaments, a tour of Manila for our alumni from abroad or from the provinces, with their families. “We will also continue an intensified revival of the alumni chapters in the provinces, using the template that Frankie Villanueva of Pampanga is experimenting with. We would like to create another organizational unit for alumni which is chapter based, aside from the class which is what we have right now. With the city chapters, there could be a more territorial approach. They could attend homecoming conferences and events per region, and perhaps for some, compete with each other in terms of attendance among other things”. These, in addition to their daily management of alumni cards, the student association store, and AIM merchandise enumerates the basic projects of AAAIM under Pascua’s helm, without mentioning the numerous ones in line with the Office of the President. Pascua wants to be remembered as “a fun leader to follow”, and his message to fellow alumni is “this time participate! Good things are going to happen to the school under the new president,” and it will be the alumni’s gain to stay active with the Alumni Association of AIM at this time.

On Being Chairman of AAAIM

What excites Pascua about being the new Chairman of the Alumni Association of AIM is “the chance of being able to contribute. I think the alumni has just begun to make their presence felt in the school. This is actually just the second year when the alumni have been invited into the AIM Board of Trustees, and have been intensely consulted in the crafting of programs, setting strategies, redesigning the MBA, so being chairman at this time is very heartening. There is a large opportunity now of being able to contribute to the development of the school. There is a new AIM president, himself an alumnus, whom we should all support, and there is a new strategy being executed.

On Leadership and Life’s Lessons

Pascua’s accomplishments in his career speak of volumes about his leadership acumen. His numerous achievements include being the Vice Chairman/President & CEO of Metro Pacific Corporation, Vice Chair/President & CEO of the Fort Bonifacio Development Corporation, Chairman of United Savings Bank-San Francisco, Chairman of First Pacific Capital Corporation—Manila, and Chairman of First Pacific Bank-Hong Kong. Pascua is also a recipient of the AIM Alumni Achievement Award (Triple A) in 1993, and his civic affiliations at present include his positions as National Co-Chairman of the Bishops Businessmen’s Conference, Chairman of the Board of Continued on page 56 >>













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RISIS MANAGER, EXEMPLARY LEGISLATOR. Jesli Lapus’s tenure with different firms and government agencies is marked by complete turnarounds. As a member of Philippine Congress, he has sponsored laws that are both practical and implementable. 1999’s WTO Safeguard Measures Laws is one of his brainchild. It is a law that was responsible in protecting local industries. In doing so, it secured the economy of the country as well by not allowing like products by foreign importers to be sold at a lower price. Also, through his initiative, he overhauled and streamlined the DECS automatic-salarydeductions scheme for public school teachers’ loans. These loans have previously made the public school teachers’ earnings very vulnerable to staggering interest rates. Subsequently, he has been called the “Champion of Public School Teachers” because of this. Recently appointed as the Secretary of the Department of Education, Lapus faces his toughest challenge. With 6,000 employees, the department is the largest government agency. As an educator himself, it would be an easy fit for the congressman, now Secretary of Education, to set things right in an agency where bureaucracy is at its worst. Lapus shares with the AIM Alumni Leadership Magazine details of his achievements and views of the future. The Crème de la Crème

Lapus remembers his time with the AIM with a certain degree of fondness. Their batch (the legendary batch of MBM 1973) may perhaps be best described as heterogeneous, with students from different backgrounds and nationalities, albeit all with impeccable qualifications and expertise in their respective fields. Although he felt that they were made to be guinea pigs for the Institute, the composition of the batch proved to be a formidable one. The variety of their batch brought out the best among their members. Having to interact with individuals from different backgrounds helped them to enrich their interpersonal relationship skills. A prodigious talent at 19, Lapus went on to become a Certified Public Accountant (auditor in charge) with SGV & Co. Ten years later, he was the youngest recipient of the very prestigious AIM Alumni Achievement Award or the Triple A for his outstanding achievements in the practice of management. He plotted the acquisitions and consolidations of RAMCAR, Inc. to catapult the erstwhile tail ender to become one of the leading battery manufacturers in the Philippines. Thereafter, he became the first Filipino Managing Director of the German Multinational subsidiary Triumph International (Phils), which then became the biggest operation of its kind in the world under his management. He also takes pride in being the youngest to ever hold this esteemed post at 29. Jesli Lapus’s sterling performances have left an indelible mark on the firms that he’s worked with. Two years after receiving the Triple A Award, he was dubbed a “Management Whiz Kid in the Asean” by the international magazine, Asian Finance. His extensive experience in management is supplemented by solid academic credentials. Lapus has attended postgraduate studies at Harvard University in the US and the INSEAD (European Institute of Economics and Business) in France. He also completed specialized programs at the University of California and the BITS in Sweden. Moving into government and development as President and WOR DS





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CEO of the Land Bank of the Philippines in 1992, he led the bank to become the premier state universal bank (from a bottom feeder to becoming number three in the industry) and also the highest echelon bank for rural and micro-finance in the country. With all these achievements, Lapus has not considered any individual as competition. “I do not set out for a position. I set out for achievements. The rewards come as a matter of course. Work is not set out against any individual. You are your own tough taskmaster.” He makes himself as his harshest critic to be able to come up with results. Results that more often than not exceed even our expectations. Miracle Worker

Versatility is a byword when we speak of Jesli Lapus and his accomplishments. He has managed a battery company (RAMCAR), a garments factory (Triumph International), and a bank (Landbank). Aside from these, he has, in his capacity, acted as an educator, a columnist, a radio show host, and most importantly, a legislator. When asked about his shift from the corporate world to Congress in 1998, he has this to say: “I learned that Makati is not the Philippines. If we remain too limited in our perspective such as the corporate world, we should chip in to give our contribution to nation building as well.” He remembers thinking that the shift wouldn’t be an easy one, but he felt nevertheless that it was not impossible. Legislation is important because it could make life, including business, easy or impossible. Expertise in management and expertise in business are advantages that cannot be overlooked to be able to come up with laws that are useful and can be carried out. Management expertise will come into play for the benefit of something “... Makati is not the more important. Philippines. If we Having spent years in the remain too limited in private sector drove him to our perspective such spend time in the government. as the corporate world, It was virtually impossible for Lapus to compare these with we should chip in to his experiences in public office. give our contribution to “There is a distinct difference nation building as well.” between the political and the corporate arena, as far as management is concerned. There is the difference of magnitude, as far as the impact of your work is concerned. With the corporate setting, the work is dynamic relative to the tasks concerned. And, you have more tools to work with.” He continues: “In developmental work, you meet a lot of resistance. There is also a shortage of competency as you might find in a formal organization.” Lapus feels that the government needs more professional managers. The government has a lot of mismanaged agencies and that these agencies need someone competent enough to get them back on track. Valuing The Human Component

The most important managerial skill that he learned is to value the human component of any industry. It is with this skill that he was able to do a 180º turn for RAMCAR Inc, Triumph International, Landbank, and ultimately, Philippine Congress. He admits that the Continued on page 56 >> P HOTO G RAP H




Jesli Lapus, MBM 1973

His Own Tough Taskmaster

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Bun Bunan E.J. Hutapea, MM 1980 At the Bottom of an Upside Down Pyramid


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spotlight THE NEW PRESIDENT OF THE AIM ALUMNI ASSOCIATION - Indonesia Chapter is an amiable and affable man, passionate about finance and accounting, as well as organizational and strategic planning. As Deputy Governor of Bank Indonesia, Bun Bunan E.J. Hutapea is a leader who works hard and dreams big. He joined Bank Indonesia in 1974 and started his career as a Credit Supervision Staff. After twenty years of rising up the ranks—with a plethora of functions and roles ranging from credit analyst, organization research, and development, he became director for the bank’s Supervision Department and served as Head of Non Foreign Exchange National Banks Supervision and Regulatory Affairs. In 1999 he became the director of The Directorate of Internal Finance. During this time, he was able to develop the Bank Indonesia Accounting Standard and Principles and International Financial Reporting System in order to comply and align with International Accounting standards. Bun Bunan E.J. Hutapea was appointed as Deputy Governor of Bank Indonesia in 2002. As the Bank’s highest decision-making body, the members of the Board of Governors deliberate and decide on general policy on monetary affairs, and evaluate policy implementation. The AIM Experience

As an AIM student taking the MM course in 1979, Hutapea recalls his earlier lessons: “At an introductory session, a professor told us that one of the objectives of AIM was to develop excellent oral skills in the students, to enable them to express their ideas through clear and systematic thinking. Later on, I found out that even if one had excellent writing skills, it became meaningless if he/she could not express his/her thoughts verbally. It is also a critical skill for executives. That explains the AIM principle: ‘No Talk, No Pass!’ “Another important lesson that I’ve gained from AIM is that to be a leader, one should be willing to work harder, smarter and more strategically. I also learned that each one has a potential to be great - the question is how we use and maintain our gifts by thinking positively and staying in focus.” He also recalls a tip from a professor: “Always keep your enthusiasm at work to exercise your brain. This conditions one to be a leader.” Learning the lessons of competitiveness and dealing with conflict is also an AIM legacy. “Participating in class discussions everyday allowed me to learn how to listen carefully to the conversation before joining in to solve the conflict. This basic listening skill is sometimes forgotten by executives. I have disciplined myself to take action only after I have understood the bottom line, the cause of the problem, the objectives to be achieved and other aspects which concern others. I call this process ‘environment scanning’. This practice allows me to act wisely and approach the conflict in a positive manner. But it should be noted that it is important to balance the need to have a complete picture, with the need to act fast.” A Lesson from the Future

Being in his position in Bank Indonesia is a daunting task and requires excellent leadership and management skills. “Everyday I find numerous documents piled on my desk. Each requires my focused attention, opinion and approval. Each one is unique and has its own specific requirements so I have to maintain my concentration and think strategically at the same time.” Recently, he has been given a exceptional assignment: to provide WOR DS




inputs for the President of the Republic of Indonesia about the Economic Framework for their country for the year 2025. “As you may be aware, planning for neither economic development nor for a macro economy is not my competency. But being an AIM alumnus, I did not refuse the job. Instead, I accepted it with eagerness!” Hutapea’s approach to the challenge was to set up a small team consisting of experts to be able to construct a big picture of how Indonesia would be 20 years from now. “I adopted an approach called ‘a lesson from the future’. I also push my team to think out of the box. The result is awesome! They could deliver a comprehensive and deep insight of Indonesia in 2025, and also plot a roadmap to get there.” He is currently bringing his team to the next level by establishing ‘a community of practices’ to foster creative thinking within the group. Leadership and Alumni in Indonesia

“Leadership is about motivating people to perform to their limits. To do so, I always like to listen to my subordinates. It is important to hear people on the field to get the real feel of the situation. A leader should also always be ready to make a decision and give his final word. Furthermore, a leader should be able to guide his team to face their future existence, and should have the vision, ability, and sometimes, bravery, to turn that vision into a reality. “To me, an ideal leader could have the following description: a visionary who is balanced and gives a clear direction, smart and hard working, accepts risks, and is open to many creative alternatives and approaches. “Recently I read an interesting book called ‘Serving Leader’. I think it perfectly matches my leadership style. The book said that a leader is not a person on the top of a pyramid, rather they should put themselves

“... a leader is not a person on the top of a pyramid, rather they should put themselves at the bottom of an upside down pyramid, meaning leaders should serve their teams and drive them to give back the best for you.” at the bottom of an upside down pyramid, meaning leaders should serve their teams and drive them to give back the best for you.” As the president of the AIM Alumni Association in Indonesia, Hutapea has simple plans. “I would like to leverage the existence of the alumni association. In my perspective, the competitiveness of our fellow AIM alumni is in logic and strategic thinking. Based on this idea, I would like to maintain, and if possible develop this by holding fora related to business practices.” Hutapea recognizes the global network of alumni and the potential for knowledge sharing. “We are currently in the bliss of a knowledge based economy. It is important to excel in our capabilities by learning from each other.” As an inspiration to the youth, Hutapea encourages the young and ambitious to dream—and dream big. “Having a dream makes our life more livable. It also gives us the enthusiasm to perform our best and to push our creativity to find ways of achieving our dreams. While pursuing our goals, it is important to stay focused and maintain our objectives. Keep asking yourselves—what is important in your life? Where are you heading to? Are you on-track or off-track? Visualize!” And for one who has achieved so much, Hutapea is indeed a model of leadership with qualities that many could only emulate.







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ere is a resume that reads like a fresh graduate’s version of a dream career. Excerpts from the Bloomberg press release about his most recent career move says it all. “HSBC Private Bank, a division of HSBC Bank USA, N.A., today announced that it has hired Marlon Young to lead the private bank’s U.S. expansion efforts. He will be a managing director and head of U.S. domestic private banking. “Young joins HSBC after 27 years at Citigroup where most recently he was the head of private client lending at Smith Barney. He has held various leadership roles including head of the Northeast region for Citigroup Private Bank, head of investment finance and senior credit officer for the U.S. Northeast and Mid-Atlantic regions. His international private banking experience encompasses assignments as team head of the Hong Kong ultra high net worth segment and global markets manager for Thailand. Young also has extensive corporate banking experience covering the commercial real estate, automotive and energy industries.”  As difficult as it is to attempt to conduct an interview by email, Marlon Young, MBM 1979, Student Association President and recipient of AIM’s Outstanding Leadership Award, is clearly a man worth writing about.


What comes through even through email is that Young is a man with very definite ideas. For fresh graduates, he has this advice: “When you embark on a career, do not select a profession because it pays the highest salary. Make sure that the company you are joining has the core values that you have. Find out how the company views professional development and career growth for its employees.” Fittingly, when he graduated from AIM 27 years ago, Young joined Citigroup, well known for being an extremely challenging place to work. Here was a place where talent was necessary but not sufficient. “Citigroup was an extremely challenging workplace. It is based on meritocracy. I thrived in this type of culture because I am highly individualistic, very independent and I am motivated to achieve.” In Citigroup, Young found a fit for both his drive and talent. Young says he is at his best in situations where the business has not succeeded in the past: turn-around situations, start-up situations, new business initiatives. But when asked about his top two learning experiences, only one of them had to do with the business side of managing. “I was given the opportunity to take over a product organization that needed to be restructured. I spent the first 15 months putting a business plan in place, hiring top talent, restructuring the roles and responsibilities of different job functions and putting in place an aggressive compensation program based on performance and competencies. The business generated annualized growth in excess of 30% during my three year tenure. “Another learning experience was in dealing with an unprofessional supervisor. After working for him for three years, his behavior did not change. I told him that I would no longer work for him. I would not compromise my work ethics and values even though I had not found another job. This turned out to be an extremely positive turning point in my career. I landed in a senior management position that gave me even broader management responsibilities in an environment that was healthy and refreshing.” Clearly, in Citigroup, Young had also found a fit for his own personal values. WO R DS



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Young on Leadership

Young joins HSBC after 27 years with Citigroup. “This new position as Head of US Private Banking for HSBC provides me with considerable challenge. I am given the mandate to manage a full operating platform, from sales and service, to product delivery and operations. My 27 years of financial institution experience, both domestic and international, has provided me with a unique background few executives have in this market place.” “In the US, Citigroup is the dominant player in corporate, retail and private banking. All three business sectors are firmly grounded in the US and are mature businesses. HSBC, the third largest bank in the world and headquartered in the UK, gives me a unique opportunity... I have the opportunity of shaping “I keep myself a business and leading the charge of becoming a major private bank challenged by player in the US market place.” believing that As he talks about the things he there is more to be believes are important in becoming globally in the finance done and there are successful industry, Young weaves the harmony always better ways between discipline and values, technical skills and people management. of getting things Asked to choose the five things accomplished.” managers in the banking sector must focus on, Young names: (1) product innovation, (2) sales leadership, (3) process enhancement to drive scale, (4) define a strategic vision; and (5) successful execution of the strategic plan. “To be a successful international manager, your approach to business must be global and you must be more adaptable in your dealings with clients and employees. Sensitivity to cultural differences is critical.” In addition, he says, managers must have common sense, be socially sensitive, have language skills, have a global mindset and an aggressive personality. And, of course, in the financial sector, various specific licenses are necessary. But the competencies he says he has relied on the most have been common sense and proper social skills. “Whatever position you are in, whatever job you do, it’s a people business. “Communication is so critical in managing a business effectively. Often, managers fail because they do a poor job communicating. There is no such thing as excessive communication. As a manager and leader, you have to find all avenues to communicate to all levels of your staff. I am a very organized individual. I keep a daily log of my activities and regularly review my “to do” list to make sure that open issues and tasks are not forgotten and are completed.” He does keep balance, though.“You must make time for family and friends. There must be balance in your life. I make a conscious effort to block quality time for myself and my family and friends. “I am a very active person and I enjoy the outdoors. I enjoy working out in the gym three to four days a week. Weekends, I am out in the Hamptons. I also enjoy traveling to interesting places.” Young’s personal role model for leadership is Nelson Mandela. “He stuck to his beliefs and values and never wavered even in the most difficult of circumstances.” He feels very strongly about what a leader in the business environment must be. Continued on page 56 >>




Marlon Young, MBM 1979 Common Sense, Discipline, Values, Balance

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Let your light shine before others. LEADERSHIP IS A GIFT BESTOWED ON AIM ALUMNI. THEIR LIGHT shines before others to enable, to transform, to empower and to inspire toward a better tomorrow. Their torch of leadership must be kept ablaze to be passed on from this generation to the next, to ensure a future radiant not only with hope for a better world but with the means to attain it. Many remarkable transformations have unfolded in your school, the Asian Institute of Management that call upon the further exercise of alumni leadership. The most significant of these is that AIM alum­ni are now members of the eminent policy making body, the AIM Board of Trustees. You, our alumni, are now a major stakeholder of AIM. Your leadership response is essential in impelling AIM forward to the fore­front of management ed­u­ca­tion in a highly competitive re­gion. AIM invites you, our alumni, to help ensure that the flame of leadership keeps burning. Only with your support can AIM maintain its position as the leader in Asian man­age­ment education.

Keep the Flame Burning! Make a difference in the lives of our future leaders. Make a gift to the AIM Alumni Leadership Fund. Alumni Fund for Scholarships Whether you wish your contribution to go to a degree or a non-degree scholarship fund, your donation will support AIM’s vision of increasing the quality of our student body. Your generous support will be an important reserve for attracting exceptional students with limited resources. Alumni Fund for Learning Space Learning Space is what we call the AIM infrastructure. This includes all rooms where continuous learning is done—the case rooms, library, dormitory, and the AIM building in general. Contributions to this fund will go to the imminent maintenance requirements of your school. Currently, these include major renovations for the dormitory and the purchase of new chairs for the case rooms. Donations in kind to help in the upgrading of equipment and other facilities are also most welcome.

faculty exchange. The fund will ensure AIM’s growth into the future through the continuous development of an international, academically qualified, practitioner-oriented AIM Faculty. Alumni Fund for Research and Development Supporting this fund will allow AIM to develop research and write cases on Asian business and development management systems. Options are open to specific causes, depending on a graduate’s or a batch’s particular topic or school of interest.

Alumni Fund for Faculty Development This special fund is focused specifically on the development of the Faculty, whether for increasing the number of Doctorate degree holders, upgrading the skills of the faculty, or supporting 52

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Perpetuo de Claro P 1,000,000 to the Alumni Fund for Scholarship Greg and Mekit Atienza P 12,000 Annual Pledge Datoâ&#x20AC;&#x2122; Syed Ahmad Idid RM 3,615 to the Alumni Fund for Scholarship

Your gift is important to us. Your participation in the AIM Leadership Fund Campaign makes a statement about how you value your degree. Your gift countsâ&#x20AC;&#x201D;whatever the amount. AIM is grateful to all graduates who support the AIM Leadership Fund. As a token of gratitude, AIM has dedicated a wall at the J.V. Ongpin Quadrangle (Zen Garden) where Leadership Fund Plaques in honor of alumni donors are installed permanently. The AIM Leadership Award will also be given during the Annual Alumni Homecoming upon reaching specific landmarks in the following categories:

Blue Light

Green Light

Orange Light

Yellow Light

Red Light

(more than P 1,000,000)

(P 500,000 to P 1,000,000)

(P 100,000 to P 249,999)

(P 250,000 to P 499,999)

(P 50,000 to P 99,999)

The Flame is a revered symbol of humanity. Light. Hope. Passion. Life. The Flame represents what the AIM Alumni stand for: Leadership. Like a burning flame, leadership illuminates through vision and direction. Leadership provides a guiding light during darker moments, inspiring hope and motivating action. Ultimately, leadership, like a flame, tempers and transforms.

YES, I want to invest in the future of our leaders I wish to support the AIM Alumni Leadership Fund.


Please have someone contact me for my donation at:

Annual Gift


One-Time Gift


P 1,000 (approximately US$ 20) P 2,500 (approximately US$ 50) P 5,000 (approximately US$ 100) P 10,000 (approximately US$ 200) P 15,000 (approximately US$ 300)


AIM Program

Year Graduated

P 25,000 (approximately US$ 500) P


This year, I choose to designate my gift to: The Alumni Fund for Scholarships

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Company E-mail

The Alumni Fund for Learning Space The Alumni Fund for Faculty Development The Alumni Fund for Research & Development

I wish to have my donation acknowledged as follows: Individual Donation



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Corporate Donation Class/Batch Donation Alumni Association/Chapter Donation Alumni Association/Chapter

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Please fax to Alumni Relations Office (632) 893.7410 or email aimalumni@aim.edu

A I M A LU MN I L E A D E R SH I P MAGA Z I N E Ju l y to Septem be r 20 0 6


classnotes M B M MBA Dr. Leo Yballe, MBM 1978, presented cutting edge management thinking through his sessions on “Appreciative Inquiry: Launching a Revolution in Creating Positive Change for Organizations” last April 2006. Leo is from Cebu City, Philippines. He finished his Ph.D. at the Case Western Reserve University in Ohio. Currently he is Professor of Management at Nazareth College, Rochester, New York State. By launching his “revolution of positive change”, Leo prepares the ground for achieving business leadership in the context of the world’s biggest economy, the United States. Nolan Pidor, MBM 1978, President and CEO of RYMEK, is an entrepreneur in the $1.3 Trillion US Health Care Industry. He is also a member of the American College of Healthcare Executives (ACHE ), and chapter member of the Association of Healthcare Executives of New Jersey (AHENJ). Healthcare Staffing, Medical Transcription, Backroom Business Process Outsourcing, and Healthcare Professional Education are the fields Nolan is deeply involved in, which he feels are barely scratching the surface of the most complex industry in the US! (Harvard Business Review, May 2006). No matter the size of the enterprise, Nolan demonstrates and shares his 28 years of “street smarts” as a leader in the US Healthcare mainstream, a model for global aspirants to learn from. Nolan is from Davao City, Philippines.” Daniel Saracin, MBM 1983 writes: “Greetings! We are specially proud to have our own fellow alumni become part of the learning resource base of the First Business Leadership Program organized by ISEP Inc., based in Paramus, NJ, USA.” Maria Cynthia Tanega, MBM 1988 writes: “Greetings from Paradise! Honolulu’s weather is getting warmer but still perfect for outdoor activities. Come and visit Honolulu and enjoy the spirit of aloha. Don’t forget to give me and my husband a call. We’ll be glad to spare some time entertaining you.” Roy Reyes, MBM 2000 writes: “Hi everyone! How’s everything? Hope everything’s great! Well, just to inform you that the Ortigas group holds a get together at Metro Walk twice a month for lunch, or for busy moguls, you can follow for coffee which is around 1-1:30pm. The venue is normally Duck Wok, Icebergs, or Starbucks. Agenda : work, career (shift/upgrade), racket, sports, or food trip. It’s held during the first and last


Wednesdays of the month. For those coming, please email or YM at senyores2000@ yahoo.com. Cheers! From Senyor.”

“I really loved the case methodology method, which gave me the ability to appreciate the fact that there is never one

“I was also invited to give a short message to the audience along with other three winners during the award ceremony. I was introduced on stage as an MBA graduate from Asian Institute of Management Philippines. Indeed my MBA education at AIM has boosted my confidence and has helped me to structure, organize and present my thoughts in a better manner. “ MM M Xiang “Max” Niu, MM 1998 is now the GM of Shanghai Otis Elevator Company. Alumni from Shanghai recently had a get together to celebrate Max’s promotion. In photo below (from left): Cai Bin Steven, MM ‘99, Jiang Peide Peter, MM ‘95, Zhu Huicong, MM ‘97, and Li Feng Alex, MM ‘98. Rear (from left), Niu Xiang Max, MM ‘98, Catherine Chen, MBM ‘98, and Wu Yi, MBM ‘98.

Michelle Marquez Boquiren, MBM 2000, is currently Managing Director of Sales and Marketing at Overture Financial Services with primarily responsibility for client relationship management. She joined Overture as the company was being formed in 2004. Michelle has more than a decade of financial services experience. Previously, she was Vice President for Global Product Development at Merrill Lynch Global Private Client where she was responsible for project management of new product initiatives working with strategic partners in operations, technology and legal. In that capacity, she headed the project team that launched Merrill Lynch Global Selects, an open-architecture asset management product for non-US investors that has raised US$3 Billion. Michelle has been residing in New York City since 2001. Last April 12, 2006, Michelle visited AIM and gave a talk on Global Finance for the students of MBA 2006. AIM is grateful for alumni like Michelle who take the time to give lectures to the future alumni of the Institute. Arun Joshi, MBA 2005 is now a Senior Business Analyst for Cognizant Technologies based in Hinjewadi, Pune. Arun writes: “AIM provided a significant learning experience for me, with knowledge coming not only from the classroom but also through my friends, and from my experience as vice chairperson of the Students’ Association.

A I M A LU M NI LEA D ERS HIP M AGAZIN E J u ly to September 2006

correct answer or one viewpoint. Different people based on their background and thought process can give different solutions to the same problem. “We also learned how to work in groups and that I guess is a very important lesson for me because most of the time in our academic life we have been graded on individual performance. This would really help us in the corporate world where team spirit is the name of the game. Arun’s message to his classmates and professors: “Always live life king size. Work hard but party harder and always remain in touch because at the end of the day it is how many friends you have across the world which is going to define your success in the corporate world.” Sarita Bahety, MBA 2007 writes: “I am very pleased to inform you that I have won a second prize out of 9 finalists in the International Essay Competition 2006 organized by the World Bank. A total of 1950 essays were submitted from 136 countries. Our essays will be shortly published by the World Bank.” “We nine finalists were required to present our papers in front of a jury after which the awards were decided. We had an award ceremony at the ABCDE conference in Tokyo which I attended with my mother. Awards were presented by Mr. Paul Wolfowitz, President, The World Bank Group and Mr. Masahisa Fujita, Professor, Kyoto University of Japan and President, Institute of Developing Economies - Japan External Trade Organization (IDE-JETRO) .“

Jocelyn Bernal, MM 2001 writes: “I am pleased to announce that on May 1, 2006 I started working for the New York Times as a Financial Analyst. I am quite excited since this is the first time in 9 years that I will work for another company. From a private company to public entity that is known worldwide—sure can’t beat that. I am definitely looking forward to learning a lot. So wish me luck as I embark on this new adventure!” TT MM PP J. Ferdinand R. De Luzuriaga, TMP 1991, is the Chief Innovation Director of 2c3i.com Innovating Institutions thru Communities, with mailing address at 76 Playfair Road, #05-04 LHK 2, Singapore 367996. He is also concurrently an Executive Director of Malayan Bank, a Chief Financial Adviser of Inquirer Holdings and Philippine Daily Inquirer, and a Senior Adviser of Singapore-Business.com. His e-mail addresses are JFdeLuzuriaga@malayanbank. com, JLuzuriaga@inquirer.com. and JayLuzuriaga@2c3i.com.

classnotes MMDDP P Mohd Tajudin bin Mohd Alias, MDP 1975 writes: “Hi! This is Tajudin, better known as Dino to my Filipino friends of the MDP Class of ‘75. Thirty years has since passed and I am wondering as to what is happening to all of you out there everywhere! “I am now CEO of an ISO (9000, 1400 and the likes) registration company. There are openings for the kind of work that I do that would enable anyone of us to be our own boss. “I realize that the majority of us are around 60 so don’t worry we need only to PODC. The actual work can be farmed out to the younger ones!!! “Come on pares, contact me at tapintrnational@myjaring.net or Mobile ++60 1605 0045. Who knows we may be able to meet again over a glass of lambanog! (Oops... our colleague, the Fuji Branch Bank Manager would kill me for this!)” P D M Efren Pimentel, 20th PDM 1995 is now with Global Inner Circle. “We connect business leaders globally to maximize their potential and deploy themselves and their inner circle to help and empower others become global business leaders. We have existing connections for brand new double hull oil tankers, dental products and services, thermoplastic piping products, cement sacks, yarn, etc.” Efren is also with PANSUN Hardware Philippine Corporation. “We are one of the leading and innovative importers and distributors of thermoplastic piping products and other state of the art technical products. We supply the key industries, builders, contractors and end users of thermoplastic piping products and other state of the art technical products in the Philippines.” Efren may be contacted at ephraim.20pdm95@aimalumni.org. Mirza Abdullahi, 12th PDM 1992 is now a Director for IARCSC with company address at Sadarat, IARCSC, KabulAfghanistan. Mirza writes: “I am proud of being one of the students of AIM because I learned how to make changes and to facilitate progress for the people. I remember Prof. Eduardo Morato very well, and I am very happy for the lessons he taught our class. I am now working on reforms for our Government’s public services and here in

Afghanistan, it is a challenging task both for the Government and me.” VV I EI E Sharlyn Ann Javellana, 5th VIE 2004 After graduation from VIE, Sharlyn started her own interior design/ architectural firm, Absolute Spaces Partners in Design, Inc. with company address at 77 12th Ave. Cubao Q.C, T/F 911-3112. e M BB AA e M Michael Sherwin M. Macatangay – eMBA Manila 6. After earning his Executive Masters in Business Administration (eMBA - Manila 6) at the Asian Institute of Management (AIM) last May 2006, Mike was appointed as Managing Director and Head of the Philippine Operations for R.A.K. Ceramics – the United Arab Emirates (UAE) based world’s leading manufacturer of High Quality Ceramics, Gres Porcellanato Wall and Floor Tiles, and Sanitaryware products. R.A.K. Ceramics products are available in 135 countries with 10 modern and high-tech manufacturing plants worldwide. It is a public shareholding company with H.H. Sheikh Saud Bin Saqr Al Qasimi, the Crown Prince and Deputy Ruler of Ras Al Khaimah as the Chairman and owner. Mike is responsible in strengthening the company’s presence in the entire Philippine archipelago as he handles the company’s overall sales, marketing, management, and business operations. Mike has more than ten years of excellent professional experience gained from different top multinational and industry leading companies having held various top management level sales, marketing and operations positions in the food and beverage, consumer goods, telecommunications, and service industries. He is also a top-notch, strategic management and marketing consultant to various companies. He also holds the position of President and Managing Director of STRATMAN Consulting Group Inc. (Strategic Management Consulting) and is presently a Professor and Faculty Member of De La Salle University - College of Saint Benilde. MDM M D M Min Bahadur Ranabhat, 16th MDM 2005 “Currently, I am working with TRSE/ESAT/ DANIDA as a Financial Expert. The Technical Review of School Education (TRSE) was established by DANIDA to evaluate the de-

Please send your latest Class Notes and photos to the AIM Alumni Leadership Magazine at aimleader@gmail.com. Should you need to contact our alumni, please contact the Alumni Relations Office at aimalumni@aim.edu. velopments in education independently.” “May 1, 2005 is one of the most memorable day for our batch. Wow! It was almost a year ago! I remember that day, all the AIM students were so cheerful, happy and excited to receive their world class AIM Degree. I also remember quite clearly my first day in class, when the AIM President, Dr. Roberto F. de Ocampo welcomed us and advised “No pain, No gain”. “To accomplish and achieve such a degree is not painless work. So many hours, weeks, and months were used for the completion of this course. My days at AIM were both terrible and memorable, as we had many case studies, reflection papers, assignments, group works, presentations, class participations, group discussions and consultations with professors. There are other memorable experiences- groups dynamics, interpersonal relationships, different cultural, socio-economic and political backgrounds and experiences which were sometimes so complex and complicated. “It was wonderful time for every AIM student’s life and I admired how AIM could organize such a complex course and to give a full work load for all the students considering their different capacities in terms of experiences and absorption. From the beginning, all the AIM students were eager to commit and ready to accept such a challenge, and take on opportunities to successfully complete the course within the stipulated timeframe. “I would like to acknowledge from the bottom of my heart the AIM family and, more particularly the team of professors, directors and their staff, who designed and implemented such a wonderful, applicable and useful course. Now I can proudly say that I am a graduate of AIM. Not only that, I am also one of the AIM funded students- it would not have been possible to enroll and complete my MDM course from AIM without a positive decision from the CDM

management team, particularly Prof. Edel Guiza (former Dean of CDM). “I would also like to thank many other supporting hands and cordial hearts namely Prof. Macaranas and Prof. Confesor, Talaver (ED in TESDA), Coratec Jimenez (President of IMDM), Marge Barro (former Director of IMDM), Greg Atienza (Executive Managing Director of the Alumni Relations Office), and Ricardo Mejia (Director in TESDA). TESDA, CPSC, IMDM, and the Alumni Relations offices are some of the prominent institutions and departments whose staff really provided their time, effort, and support for the completion of my MDM degree. “Today I feel that I have a commitment with AIM to help promote the world class degree programs (MBA, EMBA, MM, MDM) and other non-degree courses. My past and present work experiences ascertain that these degrees are extremely useful to learn about resource allocations, mobilization and effective delivery, which will help many deserving beneficiaries and the less fortunate in society. “In this connection, I would like to express that I am quite interested to work with AIM in promoting and contacting the deserving students/candidates for degree or non-degree courses from Nepal. I would like to invite a team from AIM to my country as soon as possible to explore the future opportunities for AIM. Nepal could be a hub for South Asia (especially for Bhutan, Bangladesh, and India) in promoting AIM courses. “All AIM graduates from Nepal are continuously in touch. If AIM really wants to work in Nepal, we are ready to support and contribute to the AIM activities in our country, as well as in the South Asian region. The working modality and procedures can be finalized later. Again, thanks a lot for AIM and a great country, Philippines.”


Honorato Bonus, ABMP 1979, passed away last June 6, 2006 Mr. Awesh Shrestha, MBA 2005

A I M A LU MN I L E A D E R SH I P MAGA Z I N E Ju l y to Septem be r 20 0 6


classnotes >> “The Salt...” continued from page 45 Trustees of the Environmental Science for Social Change Foundation, and a Trustee for Business for Integrity and Stability of Our Nation Bisyon 2020, among many others. With these bountiful experiences and achievements, what are the invaluable lessons that life has provided? “I can name three lessons which I learned from my life: “One: It is very important to choose to do the right thing, not just do things right. If you do the right thing it will have a very great impact on the direction of the organization you are leading. My analogy would be the one Dr. Stephen Covey used about learning how to climb the ladder very well. If the ladder is leaning on the wrong wall it is not going to get you anywhere. You have to get the ladder leaning on the correct wall so that if you climb it right, something is really accomplished because you are doing the right thing the right way. “Two: It’s really best to lead such that people will feel that they are doing things themselves. The best leader is the one who at the end of the day will have followers who could say ‘we did it ourselves’, and the leader is just self-effaced.” Pascua

>> “His Own Tough Taskmaster” continued from page 46 human component is always the best place to start to succeed in the workplace. In addressing the issues that currently plague the workforce, you will be able to unlock the potential of the workforce. He has been deliberate in developing the potential of his people to the maximum. This way, his people learn from him. These lessons will be carried over when they eventually move on. These lessons will turn, in time, to skills, and then these skills will turn into competence. In normal times, and more in a crisis, balance is important. That may be the reason why Lapus can easily adapt from one extreme to another. He can speak with everyone and make himself heard, and listen to their grievances as well. Future Projects Under Lapus’s watch as Chairman, the Triple A Club recently re-launched the Testimonial Dinner last May 18, 2006 to honor the new AIM President, Francis Estrada, and the two new Filipino winners of the Triple A awards, Perpetuo de Claro and Edgardo Limon. During that event, delegates from the World Bank, Japan Bank, USAID, and even the British Ambassador Peter Beckingham were guests. As 56

likens the ideal leader to salt: “Without salt, the dish is flat. You can taste it, but you really cannot see it– it just blends into the dish. The good leader is someone whose followers become so good, so accomplished, so confident, and so skilled that they believe they have accomplished the projects themselves. “Three: You must go up in an organization in a moral and ethical way. At the end of the day, everything that we do should be for the glory of our Creator. At the end, we will die and face our Creator who will not ask you ‘How many cars did you have, what positions did you achieve, how much money did you make, how big is your bank account?’ He will ask, ‘When I was hungry did you feed me? When I was thirsty did you give me a drink? When I was naked did you clothe me? Were you somebody who made a positive difference in the world? Did you leave the world a better place than when you found it?’ because that is what will be asked of you. You must be able to tell your Creator, ‘Yes, Lord. With Your grace and your help I was able to do it. I ran the race with your help and thank you for the opportunity.”

Message for Young Graduates Pascua’s moral values hold true as he advises the younger generation of MBAs. “Don’t ever think you can get ahead at the expense of your colleagues. If you bad mouth anybody, the people listening to you will think, ‘What is this guy saying about me when I’m not in front of him?’ so you become an untrustworthy colleague. It’s not worth it in the long run.” The three qualities which he would look for when he would hire a newly graduated MBA are the 3 Cs: Competence, Character and Capacity. “If you’re hiring an accountant, he has to know how to account for your finances and demonstrate knowledge in the content of the job. That is competence. Now a person who has a low moral character would be untrustworthy and is dangerous to any organization. But if the person is an integrated whole- if he says what he means and means what he says, then that person would be a gem as he is trustworthy.” Needless to say, being healthy and fit for the job defines having the capacity to work. He also advises the youth to emulate his priorities in life to maintain focus and balance. “My priorities are my relation-

ship with my God, my family that He has asked me to steward, and my career and what he wants me to do for society, in that order.” When Pascua wakes up in the morning, he asks, “Lord, what adventures will you take me to today? What will we do together? Then you never get bored.” As a doting grandfather to five grandchildren whose ages range from two to five, Pascua flashes a winsome smile as he remarks, “I tell my kids my job is not to discipline my grandchildren. My job is to spoil them.” A good round of golf and traveling with friends and family define the man as someone who has a gift of being able to balance his life, and enjoy the fruits of hard work as well. It is no wonder then that the man has achieved so much with a purpose of vision, a focus on direction, and a gift of leadership that is strengthened with a spirituality that humbles. He has used his talents well for the betterment of his family, society and the people he has and continue to work with. Indeed with Pascua as an AIM alumni leader, the salt in the AIM dish will be tasted and recognized, along with the vision, passion, and the profound spirit of the leader at the helm.

a result, a tie up between the Manchester School of Business and AIM has been founded, the thrust of which will be to offer scholarships and grants to deserving students. On that night as well, Lapus pledged a full scholarship for an AIM MBA student. He feels that it is fitting for a deserving student to continue with his studies. In a way, this is his manner of giving back to the school that has given him the opportunity to hone his managerial skills. He is also currently working on a book about the Triple A Awardees. It will tentatively be titled “Taking AIM: Asian Management Breakthroughs”. This will serve as a comprehensive guide for role models in management. The book will feature all the graduates of AIM who have made relevant contributions in the area of management, and are still currently making splashes wherever they go. Clearly this former chairman of the House ways and means committee has many challenges to face, especially now that he confronts his toughest but most crucial job as the newest secretary of the Department of Education. But with his immense talent for steering firms to success, and with his executive and legislative expertise, Lapus will surely succeed as he faces his own tough taskmaster— himself.

>> “Common Sense, Discipline...” continued from page 50

see in the AIM management curriculum: (1) Effective design of a strategic plan for your business, (2) Successful execution of a business plan, (3) Effective Change Management, (4) Performance Management, (5) Building an effective Team, (6) Community service, e.g. helping disadvantaged communities improve their livelihood, (7) Business ethics and values in conducting your business, (8) Taking problems, customer complaints and client issues and learning from them and making them a key business advantage against competition, (9) Roles and responsibilities of a successful entrepreneur; (10) How to survive in an emerging market. All very tall orders. But Young believes in challenges. “There are always more to be done and there are always better ways of getting things accomplished. I always have a near term goal as well as a medium term target. Once these goals are achieved, I establish new sets of goals and targets. It’s a 360 cycle, non-stop.” And that, of course, explains the dream resume. For Young, clearly, the road is forged and not just followed. He charts his own course and that course is guided not just by ambition or talent, but by values and common sense.

A I M A LU M NI LEA D ERS HIP M AGAZIN E J u ly to September 2006

“A leader is an individual who is a strategic thinker and a respected manager. These two qualities are different and a leader must have both. A leader should have a vision of where he wants to take the business and must have the mandate from his staff to lead. He must be respected for making difficult decisions, delivering results and rewarding his team members fairly.” Educating the Asian Manager: Past and Future “My AIM experience challenged my creative thinking, both in and out of class. As the AIM Student Association President, it gave me the opportunity to demonstrate my leadership ability. I also learned to deal with pressure well.” As to the future, the three things Young would put at the forefront of management focus: “(1) community service, (2) professional development for its employees; and (3) leadership by example.” The seven characteristics Young would look for in a newly graduated MBA: “Energetic, balanced, intelligent and practical, self-motivated, pleasing personality, team player and results-oriented.” The ten things Young would want to


Leadership is good discipleship: to be led, empowered, and driven by the spirit to serve, not to be served. A good leader is a dreamer who steps into his dream and takes control. He breathes the same air as his people. He cracks the whip to energize and transform, never in anger, then nurses the wounds himself and learns from the scars.

“History is made by the people who have changed the flow of the stream and not by the people who went with the flow.”

Francisco Bautista (MBM 1971), Director, AAAIM

Niranjan Seelam, MBA 2006

“Competitive advantage is always changing and constantly shifting. The winners of today, unless they are prepared to adapt, are unlikely to be the winners of the future.” Timothy Ong, Member, AIM Board of Governors

Leading people and the organization in a hostile environment. Mirza Abdullahi, 12th PDM 1992, Afghanistan

“I define the role of leadership this way...A leader that prepares our children to become masters, not of other persons, but their own destines. Helping our children appreciate the creative dynamics between personal fulfillment and social responsibility, between freedom and social order, between cultural diversity and shared aspirations, between national interests and international cooperation. A leader that breaks down the walls of ignorance, myth and complacency, and in their place help build bridges of new knowledge, new structures, new ways of thinking, doing and being.” Henry Tenedero, MDM 2003, Director, AAAIM

“The best leader is the one who at the end of the day will have followers who could say ‘we did it ourselves’, and the leader is just self-effaced.” Ricardo S. Pascua, MBM 1971, Chairman, AAAIM


eadership according to me is the ability to mentor the people you are leading in such a way that it leads to the overall development of the person and he is able to take over the responsibilities that you currently have. I believe if you want to be a good leader you have to allow your team members to do what they want within a certain parallel lines of guidelines. This is the result I want, you do it however you want to but I am there by your side if you want advice or help. Arun Joshi, MBA 2005

Leadership is about motivating people to perform to their limits. It is important to hear people on the field to get the real feel of the situation. A leader should also always be ready to make a decision and give his final word. Bun Bunan E.J. Hutapea, MM 1980, Deputy Governor, Central Bank of Republic of Indonesia (Bank Indonesia)

Profile for AIM Alumni Publication


Francis G. Estrada, MBM 1973 JULY - SEPTEMBER 2006 | VOLUME 1 ISSUE 3


Francis G. Estrada, MBM 1973 JULY - SEPTEMBER 2006 | VOLUME 1 ISSUE 3