TttE Asmu It{,lr,ulGERsrc0ND 0uBSTER 2000

HUMAN BEHAVIOR IN ORGANIZATIONS

Sexuality in the'Workplace

E.COMMERCE

What Happens Underneath Those Dot-Coms

LEADERSHIP

How to Reinvent the GM for the 2000s

NEW ORGANIZATION FORMS

Beyond the Coercive Organization

PERSONAL PHILOSOPHY

Your Life As a Business

SAIM

ASIAN INSTITUTE oF MANAGEMENT

Praidenc Robeno E De OcarnpoDean of the lnstitute: Pml fduado A. Montd, Jr,

SCHOOL MANAGEMENT BOARD

kof. Alejar&ino J. F€rrcdaA:tociatc Dean,,4:ian Cortet for Entt?Mtu/rh ip

Pr0f Erneslo D. cadlaoh'odat Dean, Ccnter fat Dwhlmmt Managtmat

Pmt Sonny B. ColomrA'!o.kt Dean, &urttu Edulaion anl Lifehrg Learning Gnta

Prof. Gloria s. ChanAttociat! D.aa Matkr in Bbines Mdnag.mcnt

Prof Enrico C. AngtuacoAttaciat D?afl, Matb in Manag.nent

CfNfiR MANAGEMENT BOARD

Prof. Eduardo A. Mornd Jr.Exccutitr Managrng Dirunt, A dnn E$. .ne

dnd FatsbJ Da.lolne I/HP-D

Prof. Reynundo L. RobenoEfttutive Manating Ditctrt, Phnning and Finana

I,rof. Dnila-tugim I. Foja!E*attu Maruging Dircctor Marhaixg and Cwano Rrhtiont

Ms. Mrncc P CeliBwdr. Maragin| Dne$or, I*ndonal anl Invettor Rthtion

Pmf G3.ton D. O.tigr$ Jr.E'.cunue MtMgng Dftcto. Na It,gda' D.v.bpad'

Prof. Mrriaro S. l2CmenEtdri"c Manating Directo. Fatilitic Managnnt

and Tuhnical Snica

Prof Sonny B. ColomaE .runte Mdtuging Dircct,r AIM Confnncc Antet Marih

Pcter K FemendezChief Wnatin Wcl

CENTERS FOR f,XCELLENCE

Pmt Felilb€no U. Burro'&?ruti,e Dilectot, Gu Jl'e B. Fene $" Jr Centet

Ji)r Banhi gand Finance

Prof. Fcdcrico M. MacerrnasExcotntu Dnunr.Washingan Sfcil PILE AnEl

I,rof. rdipe B. AlfonsoE*runw Dirccnr, tunon V &l Rosaio, I AIM Cnwr

fo I C o ry olat R?' I o Ni bi litJ

A IUBLIcATIoN oF THE Asml Iusrlrun oF MANAGEMENT2'd Quarter 2000

E-COMMERCEWhat Happens Underneath Those Dot-Coms

...And what they - and you - should be doing tomake a real impact in e-commerce.By Dado Banatao

LEADERSHIPHow to Reinvent the GM for the 2000s

As they transform themselves to respond to thechallenges ofthis decade, Asia's business leaderscan find their soul mates among their Europeancounlerpans.By Jose M. Faustino

HUMAN BEHAVIOR IN ORGANIZATIONSS€xuality in the Workplace

A survey and forum on gender issues revealsurprising perspectives about gender issues intoday's workplace in Asia.A forum facilitated byPatricis Denis€ Lop€z and Horscio Borrom€o Jr.

NEW ORGANIZATION FORMSBeyond The Coerciye Organization

We strive to empower people with one hand, andstill use coercion with the other There must be abetter way to manage people.Bv Steve Minett

PERSONAL PHILOSOPHYYour Life As a Business

It doesn't imitate art, it's not a bed ofroses. To themanaget life is what else a business. Howprofitable is youm?By Chung Po-Yang

THE JOURNALa Corporate Finance: Do Managers Manipulatethe Timing ofAsset Sales?

a Manag€ment Control: Three-Step Control o{Subsidiary Corporations

Thc Arian Ma-trager is a quarterly publication ofthe Asiar Instirure ofM"n€emenr IMITA (P) 042l l0/98 KDN PP (S) 1076/3/2000 ISSN 0l l6-77901,with editorial ofiices ar the nsian Institure ofManagement, 123 Pas€o d€ Rox?!, Makari Ciry philippine s.

"tet: (632) SgZ4Ott-25;892-0435_43:.fetefax:(632) 893-334 I E-mail Ad dress: un@dataterue.aim.edu.ph Copyigft2}}o The A'ian Manag€i All rishts resrrved. Reproduction in any manner in whoteor in part in English or other languages without prior written permission is prohibired. Printed by \forld Press Inc., eu€zon City, philippines.

What HappensUnderneath Those Dot-Coms...And uhat they - and you - should be doing to mahe a real impact in e-commerce

By Dado Banatao

In case vou've been marooned on a desert island for

the last six years without any means ofelectronic com-munication - and, anlway, does that kind of island

sr i l l ex is t? - the b ig rh ing in busine 's is e-commerce.

The only things possibly bigger are the hype, misin-

formation, and confusion that surround it. To help

scrape away those un*anted effccts, the \7. SyCip

Policy Cenrer invited Dado Banatao of the Mayfield

Fund, and one of Silicon Valley's most prominent Asia-

born entrepreneurs, to address its 3rd Asian CEOs

Policy Roundtable. In this article based on his key-

note speech, Banatao sifts through the main trends

using his objective investor's eye.

hat actually happens underneath thosedot-com names? Some of the things I'l l

expose here are the things that the dot-

coms, if they want to be successful, should be attend-

ing to.

Lett first take a second layer approach to e-com-

merce . "E-commerce" can be simply defined as a pro-

cess offacilitating commerce between buyers and sell-ers using online intermediaries enabled through the

web. The majoriry of businesses today, whether they

are in the United States or Asia, is in B2B (business-to-

business). That is the focus of much of e-commerce.

In the early 1990s, major developments in the data

backbone ofthe enterprise transformed enterprise com-

puting. By late 1990s there was a major build-up of

wide-area infrastructure, which is the internet as we

know it today. The web became user-friendly. There

was a slew ofapplications that enabled us to do e-com-

merce on the web.

This brought about the fast growth of companies

like CISCO, because there was much-needed infrastruc-

ture ro enable e-commerce. PC penetration continu-

ously accelerates. A-nd these brought about what we now

call Internet computing, which is enabled by that con-

vergence between the infrastructure and the web.

At the same time, corporations started to focus on

spending money away from excellence in production

and shifted to excellence in commerce. It is not surpris-

ing that a maior i ry of rhe money spenr in e-commerce

today is in B2B. In 1999 the figure was US$100 Bil-

Iion. The ratio ofspending between B2B and B2C (busi-

ness-to-consumer) was 10 to 1. Corporations are put-

ting a lot of rponey into improving their buying and

selling processes. They are saving and, in some cases,

4

making a lot of money in buying and selling, comparedwith just making products.

Every.thing now depends on the rate of adoptionand execution. Predictions in market srowth are almostalways linear in nature. Bur usually-whar happens isthat it is an S curve. In other words, people are usua.llybehind and so you initially have a flatter curve, butwhen people recognize that they are behind, they try toaccelerate. The slope of the S curve depends on how aspecific company executes its strategy. E-commerce fol-lows the S curve ohenomenon.

Intermediaries will facilitate other processes. Ifyoulook at the existing purchase flow within a company,there is usually a form that gets fil led out by therequisitioner, which goes to a manager who approvesthat purchase. Successful intermediaries will automatethose things and make it so much easier such that buy-ing and selling become second nature. And the same istrue on the selling side. Intermediaries will facilitateinventory and pricing. There are some products forwhich you need to run an application before you caneven decide whether you want to sell or buy the prod-

uct. These are specific applica-tions. Intermediaries will enableyou to run those applications tohelp you decide. Another impor-tant fi.rnction is developing mar-ket metrics and anall'tics. It is notsufiicient to .just post your prod-uct. Most of the successful onlineintermediaries actually give yourelevant information on whetheryou are deciding properly on apurchase. They give you perfor-mance parameters for a productso that when you finally makethat final click, you feel that youmade the right decision.

Three Market Segments

There are three major B2B

This new e-commerce para-digm created a new set of busi-ness facilitators called online in-termediaries. The way we havebeen doing business for a longtime has been through estab-lished distribution channels. Alot of those channels will bedisinte rmediated if they dontbecome an online intermediary

A Value Proposition Is a Must

So what are those acdviriesthey have to get on with? First,they must have a value proposi-tion. They have to add value rothe channel. They have to cre-are original content. They haveto aggregate and d is t r ibutethird-party content. They mustcommunications.

enable personalized

One of the major activities, obviously, is matchingbuyers and sellers. Once you have those addresses andenough statistics in terms ofthe buying and selling traits,then e-commerce engines will be able to match buyersand sellers. One of the other activities would be to fa-cilitate dynamic discovered pricing. An example ofdis-covered pricing would be auctions or bids where thereis no set price. Online intermediaries should facilitatethese auctions.

Traditional

distribution

channels wi l l be

disintermediated

if they don't

become online

intermediaries..

segments:

' a) The vertical marketplaceb) The horizontal marketplacec) The marketplace enablers, supporting both the

vertical and the horizontal marketplaces.

A characteristic ofthe vertical marketplace is com-merce in a specific industry orchannel. A perfect modelof this would be the site on petroleum. E-petroleum isa v€rtical e-commerce site. They deal with everythingthat has to do with oil and petroleum and all its deriva-uves.

Horizontal marketplace transcends numerous chan- complex content. Value propositions here would be

Marketplace enablers are completely indifferent to

the channel they serve. Examples of these are trading Vith all these segments, even at this young age ofe-

exchange applications. These are technology-oriented. commerce we already have a proliferation ofthe differ-

They give you the tools to become an e-commerce type ent types of e-commerce sites. Most of them are consid-

ofcompany. In some cases, solutions are used by tradi- ered distributors and publishers, although brokers and

tional non-internet-enabled companies. exchanges are moving fairly quickly.

There is anotherway to seg-ment the market - by the wayparticipants look at pricing and

content;

a) A distibutor is character-ized by simple content and es-

tablished pricing. You can be adistributor ifyou have that kind

of characteristic. Some of thevalue propositions are volume

aggregation across suppliers,cross-vendor shopping and a

greater variety of products.

b) A publisher also has es-tablished pricing, bur has more

complex content on its site. An-other characteristic would be a

personalized use ofthe data. Be-

cause you have more complex

nels. They deal with common characteristics across

multiole industries or markets.speed, which promotes direct bidding in transactions

and solves costly and labor-intensive searching and ne-

What to do?

First, they must have

a value proposition.

They have to add

value

to the channel.

They have to create

original content.

Whele to Invest

V/hen people want to invest,

there are rhree considerations theylook for:

o Channel and commodityfactors

o Company factors

o Business model factors

Ar Mayfield Fund, we have a

current investmenr of about halI

a b i l l ion dol lars . Hal f o f rharamount is invested in dot-coms

and the other half is in rhe com-

munications inFra-:tructure, which

is as good, if nor better, rhan theinternet dot-com rype ofreturns.

content, you can begin to do things like one-on-one

marketing. You may even have community member-

ship to target markets with your content. A value propo-

sition here is, by having a lot ofdata, you can now do

rapid supplier search.

c) An exchange would feature simple content and

discovered pricing. Ar example would be auction sites.

A value proposition here is that you have hedging and

speculation, which is good in some markets.

b) The last classification would be brokers, which

feature complex content and discovered pricing. Items

rend to be offairly complex description, hence you need

But clearly you need to look for a large addressable mar-

ket and look for technologically sawy companies. These

companies will adapt to the net much faster You need

to look for a favorable relationship between shipping

cost and product value. For example, ifa company has a

product value of $ 1 and it costs them $2 dollars to ship,

we stay away from investing in it.

'We prefer perishable commodities. If the value of

the product diminishes over time, you really need online

commerce. Those businesses generate a lot ofprofit. The

first factor to observe is that there should be no signifi-

cant customer'behavioral change. To put it simply, do

not go into extensive training ofthe customer base just

for them to get online. You do not have time to teachthe customers. So get into businesses where there is litdeuaining done or behavioral change. Second, manage-ment teams must have domain expertise. And lastly,create events to generate quick adoption.

Value proposition should also be quantifiable to thebuyer and seller If the user has a hard time justifying

that he is saving money or making money on that trans-action, you can bet that he would not use that site. So itshould be very clear on his mind that he will save a lotof money or in the case of selling, he will get a betterprice.

Finally, some of the important business model fac-tors that one should remember when makins invest-

ments ar€ first, invest into companies that want to exploitthe channel through the web. Second, they have to havesome defensible channel strategy. Third, they should havefavorable margins. Wall Street is punishing a lot of compa-nies now because they keep on losing money, because theydont have enough margins. For example, for every clickthat happens, they give one dollar to the user. So favorablemargins are things that we watch out for. And finally, itshould be clear that we can monetize the value orooosi-tion.

Dado Banamo i Wnnre Partner at the Matf.eld Fund, a SiliconVall.ry aentute caphal frm that has more than $ I billion andtr man-agement and has inuested. in more than 300 companies, witb afocat oxtechnohgy and heabh-related basinesses

"You Must Embrace It"

How does a company go about developing an e-commerce strategy? To start, you must really believethat to survive in the future you must embrace online straregy in all its applications. You have to changethe culture of your company. The important point is that e-commerce is not simply adding anotherdistribution channel or introducing some new efificiencies, it is driving customers to do business rn afundamenrally different way.

kt me give you an example. \Vay back in 1960 my formei company was one of the pioneers in EDP'We

knew we had to change our products to electronic. 1Ve knew we had to change the skills and mindset

ofour employees. However, we thought the transformation would be gradual and we could take our timeto phase out our mechanical machines and substitute electronic ones. Our customers wanted to movefaster and our competitors beat us to it. Our company was in serious trouble in 1972 so I was brought into save it. In less than a year, I forced the complete transformation of the company from mechanica.l to

elecconic. From manufacturing to marketing and service, everybody had to think and act as if we were acomputer company - 100 percent. It was traumatic for everyone but it saved the company. Ifit had been

done gradually, the company would not exist today. To get their employees to live in the e-commerceworld and think accordingly, the Ford Motor Company is giving a PC to every employee to use at home.

\Vhile I dont think your companies will fall ifyou dont adopt an e-strategy soon, I do believe you

would be left behind by your more nimble competitors.

- William S. An derson, former Chairman of the Board, NCR Corporation

:i.r' : . ",'

" tEngra

As they transform themsehres to respond to the challenges ofthis decade, Asia's busines leaders can fnd their

soul mates among European counterparts.

By Jose M. Faustino

Customers are now talking back and challenging

the big companies. They have become better informed,

receive better service qualiry and expect everyone else

they do business with to keep up with their growing

expectauons.

Aside from customers, the challenges and changes

are coming from disruptive new technologies, from ef-

fects of globalization, from suppliers of materials and

funding, from employees with higher expectations.

Many IT applications have disrupted and will continue

to disrupt "normal" operations (translation: old para-

digms). For example, the internet now allows buying

products from music to insurance to financial services

directlywithout need for intermediaries. And while the

European manager would previously be forced to make

a decision on incomplete information, new informa-

tion syst€ms are bringing so much information that

rime is now the problem.

New Skills to Cope with New Challenges

The 2000s demand a new type ofgeneral manager

with upgraded skills and knowledge to cope with the

growing complex i ry in rhe operat ing enr i ronment .

First, the new GMs must be Visionary I'eaders who

have a strategic understandirig of their industries and

their own organizations. Thus, they can define what

business their organizations are in and, more impor-

tant, what they should not be in. Together with their

key people. rhey then develop the st raregic posi r ion ing

rheir organizations must create to fulfill those ambi-

tious visions.

How to Reinvent theEuropean GM for the 2000s

One of the great conceits of managers is to see their

challenges as uniquely theirs. But globalization opens

our eyes to the universal pressures ofchange that ap-

ply any-where in the business world. This particular

study of the. challenges to European general manag-

ers in this decade serves to enlighten Asian managers

regarding universal leadership needs. This is especially

significant if you agree, as many do, that the Asian

models for how to globalize a company are closer to

Eurooean than to American models. The article then

brings the fuian situation within this broad context,

through the accompanying sidebar. The aurhol who

splits his time working with both European and Asian

GMs, provides an informed perspective of how man-

agers - wherever they may be in these two conti-

nenrs.- need to transform themselves so they can,

in turn. transform their companies.

ny European manager would admit to as-

rounding changes in the operat ing envi ron-

ment in the last 10 years ofthe 20th century.

Paradigms he has grown to accept are either eroded or

eliminated. Challenges to the European company are

now coming from every side, whereas it used to come

only from competitors.

For example, the idea of international expansion

used to take the form ofdirect investment across bor-

ders, a joint venture, or a friendly buyout. Now a for-

eign company can buy any public company, whether

rhat companyt manag€ment is in agreement or not.

Visionary leaders a re also Tiansformational Lead-ars, who make certain their organizations will changein the direction and shape defined by their visions.

Jack Welch took over General Electric in the eady1980s and found a giant company that had been stag-nating for years: slow growth, stagnant profits, profit-less divisions, unexcited workers. He developed a newvision for GE that was at once ambitious and exhila-rating. He made sure that all GE people could easilyunderstand the vision, and that they could identifi'withit - although it was obvious thev i s i o n w o u l d n o t b e e a s y r oachieve. He involved himself inhiring people, making sure eachone would exily adopt and sup-port his vision.

\Jflelch mode led whar the Er,ropean General Manager mustlearn to accomplish the role oftheCredible Communicator. He neycrrired oftalking, explaining his vi-sion to the GE people, first in theUnited Srates then rhroughout rheworld. He loved face-ro-face meetings with employees so rhey couldask quesrions. express doubrs. andobject to the vision - all directly

Visionary leaders are

Tranformational

Leaders - they make

certain their organizations

change in the direction and

shape defined by

their visions.

The Age of Collaboration and "Coopetitiori'

'$7ith mega-mergers continuing to redraw the busi-

ness map, European GMs must function as astute Caa-lition Managers.They musr have a strategic perceptionthat enables them to anticipate future developments,opportunities, and threats. They are able to seek mergerpartners, or acquire organizations that will complementthe strengths of their organizations. They are able towork even with competitors, as long as it makes sensefor both parties. This "coopetition" has resulted in faster

product launches, lower compo-nent costs, and lower investment.

Coalition manage rs also knowhow to defend their companiesfrom unfriendly rakeovers. Yer fordesirable partnen, they are able tonegotiare win-win agreements.\0itness the chief executive pro-tagonists, Vodafone's Christ Gentand Mannesman's Klaus F-sser, bothcapable coalirion managers. Genrtries hard to merge his companywith Mannesmaris, knowing thatis what it would take to become aglobal telecoms player Esser ablydefends rhe inreresm of his srock-

to him. He expected GE managers to have the sameamount of direct availability and communication withtheir people. As a strong leader, he insisted that hismanagers align themselves with the vision he so tire-lessly communicared. He disciplined those unwillingto do so.

Contrast this with the style ofthe CEO ofone ofGermany's major corporations. He communicated onlywith his direct reports, objecting when a direct reportwould bring a lower-level manager to a meeting withthe CEO. He was a brilliant man but he lacked com-munication and leadership skills. Thus, lower manag-ers had a vague notion of the corporate vision. Endresult: this corporation has been broken up and itsname is no longer in the news.

holders and man€ers with well-conceived fi nancial counrer-stnregies.

The coalition manager GM also extends his handofcooperation with suppliers, creditors, and stakehold-ers, building alliances for new products, new systems,and other mutually beneficial programs. Good coali-tion managers must also be good Capital Managers.They must have the financial skills to be able to valuetheir companies' assem, how to squeeze as much capitalfrom their balance sheets without buildins excessive rishinto rheir funds portfolio. fhey must build financialinfrastructures that optimize cash flow, yer do notstrangle the decision-making capability of competentmanagers. Their network ofcontacts must include lead-ing financiers qhat can help their organizations expandouicklv.

Especially after acquiring or merging with other

organizations, the GMs as Cubure Buildcrs and Moti'

aators mtust be able to persuade their own people to

adopt visions and objectives as their own. The new GMs

recognize instinctively that competent people at work

are best motivated ifgiven room to decide and act on

their own. They build learning organizations that con-

tinuously gain skills and knowledge. To this end, they

invest in people development and in the intellectual

capital of their organizations. They know that one of

the most critical sources of competitive advantage is

for their people to be more knowledgeable than those

oftheir competitors.

They insist on systems that will identifr the best

people, keep them growing, and ensure their loyalty

with multiple rewards - only one of which is money;

On the other hand, they do not hesitate to discipline

those that do not deliver as committed, or those who

do not align with their companies' visions and values.

Obviously, they are the walking, talking models for the

culture they build.

Marketing kader, Not Follower

The GMs must develop such a high level of mar-

keting expertise that their companies become the Man-

ter Marhekrs in their industries. The new GMs must

develop,markedng strategies that always correspond to

their companies' core competencies. Their marketing

people manage the value chain so the overall value cre-

ated by their companies exceeds that of their major

competitors. Their companies' brands maximize their

potential over time.

V/hen Michael Eisner took over the CEO job in

i984 at the \(l'alt Disney Company, it had ovo world-

famous but declining theme parla and a collection of

canoon films for children. It was going nowhere but

down and had no idea how to grow the market for its

products. Eisner and his managers studied the custom-

ers, their lifestyles, needs, spending and leisure

habits, then launched an astounding series ofnew prod-

ucts, using the very same cartoon characters. He cre-

ated a new Disney world, not only at the theme parks,

but also on TV cinema, and in cruise ships. As a Mas-

ter Marketer himself, he said his leadership style has

not changed through the years. As a leader, he said he

created a working culture ofcreativity that carefully al-

lowed and controlled conflict, stabilized by common

sense. He said his main role was that of an "idea gen-

erator, all the time, all day, all night." Disney's business

has grown enormously through the years, from less than

$l b i l l ion to $23 b i l l ion in 1999.

The GMs of the 2000s must be ZcD nohgical Man-

agars. Although they need not be technical people, they

must know how technology can help achieve visions

and ob.jectives. One of the most pressing needs of the

new GM is to determine how information technology

can continue ro help his business.

Internal communication systems have brought in-

formation instantly to those who would need it in their

work. The internet is dramatically changing the expec-

tations and increasing bargaining power of all buyers,

consumer and industrial.

There is no choice bur to invesr in lT systems rhat

will caprure the economies, facilitare communications'

and provide innovative services to the customet lest

competitors put you out ofbusiness. ti(4ren organizing

businesses to expand via the internet, the GMs rnust be

able to understand that this new business system needs

a different mindset, work style, and reward systerns. And

they will need padence as it takes a long gestation pe-

riod for o'rganizations to profit in the new medium.

Conclusion

' The business wodd has become more complex each

year, less predictable, a more difficult, riskier place in

which to survive and make profits. But for those who

are skilled and prepared, the same environment has op-

portunities and challenges which, ifproperly managed,

will resulr in consistent success over rime.

Fortune's Asien Businessman of the Year, Yun JongYong, found his operating environment for Samsung

Electronics excruciatingly difficult in 1997. South Ko-

rea had just fallen into vinual insolvenry. Though con-

sidered the best-managed chaebol (b:usiness group) in

all ofSouth Korea, the Samsung Group was not spared

losses amountinq to hundreds of millions of dollars,

l 0 '

shrunken markets, runaway inflation, and protestingunions. \With creativity and sheer guts, Yun dramati-cally reduced rhe overhead and bureaucratic layers atSamsung Electronics while driving R&D to quicklylaunch a stream of highly innovative high-tech prod-ucts. He had all the attributes outlined in this article:an attractive vision, abiliry to communicate and per-suade, nerworking skills to collaborate with stakehold-ers and even competitors, a good understanding oftech-nology.

Yunt first message was simple to understand: "First

survival, then growth." Once survival was assured by astreamlined organization, he worked on the new cul-ture ofmerit instead ofsenioriry accountability insteadof apology, open dialogue instead of camouflage andsubterfuge. He traveled far and wide, spending halfhistime to announce and explain his vision. To optimizecommunication, he encouraged Samsung people to

communicate directly with him from any level. He wasable to discover problems that had been in hiding foryears, which were costing the company millions andmillions of dollars.

The lesson for young European managers is thatthey need to prepare for this new demanding environ-ment now. They need to develop habits and skills tharwill result in sharpening rhe multiple roles required oftnem. I

Prof ssot Jose M. Fa*tino is the Goodyear Tire axd Rabber Com-pany Profetsor ofBusines Management, and the Program Directorof the Etecatite Edacation Marheting Strategy Coarse. He is con-cartently tbe Peter Curtius aisiting professor at USV located inErfstadt, neat the ciry of Cologne, Germany. Before becoming aprofessot in 1980, he had. worked fot t9 yars with global compa-nies as a profetsional manager He is a coxsuhant to nameroat AsiaPacifc companies, includixg major European ghbal companies.

Asiat GMs Watch and Learn

Asiat general managers are typically flying highand feeling very confident in rhe 1990s -- untilthey were pulled painfully down to earth by theregional financial crisis. Surviving that debacle, theyshould evaluare now whar they need to become.

They still have visions, albeir in humbler form.There are still opportunities, but they know nei-ther they nor their organizations are ready to ex-ploit them. Very likely they need to implement dra-matic changes, first in their leadership sryles, thenin their companies. They expect to lead their orga-nizations permanently out of the crisis and intoprofitable growth.

Asia's GMs should become more open to alli-arces as globalizarion demands grearer scale, grearerfi nancial resources and stare-of-the-art technology.More than ever, they should have the financial andcontrol skills to quickly evaluare opporruniries.mergers, and acquisitions, to propel growth dra-

matically and create global mass for their compa-nies. \*4-rile Southeast Asia's businessmen have notcome together as partners as quickly as their Euro-p€an counterparrs, there are high-profile examplesof recert inter-Asian ventur€s. Thus, Asia's GMsshould likewise learn how to manage rhrough dif-ferent national cultures to create a single corporateculture.

Asian and European GMs have one thing incommon, when compared with the American GM.The latter aJ lows younger managers more participa-tion, more power, faster development, and greaterfinancial rewards. The young American manager isthus able to contribute more and sooner to his orga-nization. This explains the dynamism of Americancompanies in general, not iust corporare srart-upsand spin-offs. The Asian and European GMs arewatching and learning.

-Prof. Jose M. Faustino

l l

Sexuality in theWorkplaceA suraE, and forum on gender issues reueals surprising perspectiues about gender issues in todqi workpkce

in Asia.

A forum facilitated by By Patricia Denise J. Lopez and Horacio M. Borromeo Jr.

That more and more women have invaded the work-

place and have risen in organizations throughout Asii

is not news anymore. But are organizations ready to

deal with this continuing trend? Many such questions

have been raised about gender-related issues in the

workolace. To arrive at answ€rs, the Asian Institute

of Management conducted a survey and public lec-'

ture on the hot subject. Excerpts from the survey re-

sults, and the lively exchange that occurred in the fo-

rum, are presented here. The forum was chaired by

Professors Patricia DeniseJ. lopez (PDL) and Horacio

M. Borromeo, Jr. (HMB). A number of participants

shared their views, and they are here identified by their

gender only. See how your own perceptions compare

with theirs.

MB: A grotp of professors in the field ofHuman Behavior in Organizat ions con-ducted a survey on gender issues in the work

place. Respondents to the survey included AIM stu-

dents, alumni, and prospective students. The objec-

tive was not to obtain a statistical sample, but quite

simply to generate data that would allow us a starting

point for an exchange of insights, experiences, and

sentiments about gender issues in management. l,et's

go to the first question: a man and a woman are ap-

plying for an administrative positton. . .

Administrative Position: Who Will Likely Be Hired?

Femak Participant: The woman will be hired. Since

we are talking about an administrative position, I think

a woman would be more effective because women are

easy to mlk to. They understand the problems of the

employees.

Mab Partitipant: I'm in Human Resources Man-

agement and I agree. Women would tend to be more

meticulous and more patient.

Female Participanr.' I totally disagree because it re-

a.lly depEnds on the kind ofcompany you work for and

the kind of service your company provides.

Engineering Position: Who Will Likely Be Hired?

. HMB: Anyonehere thinks that the woman is more

likely to be hired for an engineering position?

Female Participanr.' It doesnt make any difference.

HMB: lVy'eIl, 80 percent of the men say it will be

the man.

PDL: More women think that the man will be

hired: 86 percent.

Femalz Parlicipanr; But I think it depends on the

rype of engineer ing: in management engineer ing

women do very well, so with chemical engineering'

t2

Female Panicipanf: I agree. It also depends on the

place. You would be very surprised to see how many

women in Vietnam are engineers

PDZ: Statistics show that the number of women

engineers is actually increasing. \Whether the public

accepts that is a different matter. But as more and more

women engineers join the workforce and model be-

haviors for other women, this may become less of anlssue.

Who \?ill Likely Be Promoted to Middle Manage-

ment?

Ma le Parti cip ant : Eithen

Female Participanr; The best one, regardless ofgen-

der

PDZ.'The survey respondents agree: 71 percent of

the males say, may the best man or woman win. The

females say much the same thing. Both groups displayjust a slight bias for their own gender.

HMB:Broken down by age group, theret no change

in what male respondents say. But the responses from

female age groups look interesting.

PDI; Fewer ofthe younger females (born 1970 to1979) would say that a man would be chosen for middle

management. Theythinkwomen can actually do a goodjob being in middle management.

Who Will Likely Be Promoted to Top Management?

PDZ; At the highest level, mobility becomes an is-

sue. There will be more travel required, more responsi-

biliry, and more conflicting issues between work and

family. Males in the survey were split almost 50-50:either men, or whoever is the most qualified, will be

promoted. The response of the females is interesting,

but rather disappointing for me: 63 percent of them

still believe it will be a man. There are many possible

explanations for this. One could be that the women

accept the fact. In other words they see it as the norm

and think, "Ifthatt the culture we might as well accept

A man and a woman are about to be promotedto middle management level. Whb do youthink will likelv be Dromoted?

MALE 22 6 71

FEMALE 1I 16 73

Who will likely be promoted to middlemanagement according to:

MALE RESPONDENTS(by birth year)

WOMAN EITHERYo lo

10 703 7 9

10 69

Who will likely be promoted to middlemanagement according to:

FEMALE RESPONDENTS(by birth year)

MAN, WOMANYo Yo

1950.1959 18 18 641960-1969 13 8 79

1970-1979 g 22 69

MAN WOMAN EITHERolo lo %

aa

, MAN%

1950-1959 201960-1969 181970-1979 2'�1

EITHER%

t 3

ir." The other more dangerous and more disappointing

reason for me would be if they were not as confident. In

other words if rhey feel they are not qualified, or they

will never reach that point wherein they can actually act

as CEO or COO. Comments?

Female ParticQant: I am one ofthe respondents. The

reason why I answered that it's most likely to be a manis because of the rype of company I work for. There's a

glass ceiling for women. It's all about perception. And

perception is greatly affected by the culture of the.^-^^. ' ' . ' ^ ' , ' . . : .

Female Participant: I believe it also depends on the

Asian culture. Even if that female is qualified for the

rop management position, it depends on her priorities.And for many females, that means the family. The maleis

prioriry can always be his career.

PDL There is a lady in the United States whose research

indicates that the phenomenon of the glass ceiling occurs

also in the S?est, not just in Asian countries. One commonreason why women see m to stop at that level is that women

are often not sure ofwhat they want. And the women who

acnlally reached the COO/CEO level have sacrificed a great

deal oftheir families, may have not gotten married, or mayhave postponed having children because they prioritized

their careers. A lot ofwomen are not prepared to make

that sacrifice.

HMB: If we look at the responses by generation,

among the younger generation ofour male respondents,

there seems to be a larger percentage who says the man

will get the top management job.

But you want to note here also that the proportion

of female respondents among the younger generationwho believe that a man will be the automatic choice for

rop management is now smaller than those ofpreYious

generations.

PDZ: The younger generation is more empowered.If you break the responses down by rype of company,

you see some interesting results for the local companies.Thirty eight percent said either man or woman, but 62

perc€nt still said it would be the man. For those whowork in multinationals, you see an almost 50-50 split.

Bosses: V/ho Are You More Comfortable With?

F1M& Now we get into the more managerial aspect

ofthis study where we asked, "In your presenrjob, which

superiors do you generally feel comfortable working

with: a male boss, a female boss, or either?" So let's ask

our audience once again. Are you comfortable with a

male boss or a female boss, or does it really matter?

Female Participant' I am more comfortable with a

male boss because he expects you to do the details and

he'll make the decisions.

HMB:What abott the female boss? What does she

expect?

Female Participant l guess you always argue with

each other

Female Partiripaw; Based on my experience, I am

more comfortable with a female boss because with a

male boss there still is a gap.

HMB: V4at do you mean by "gap"?

Female Participanl; For example, with my female

boss, whatever I can do is enough. Unlike with my male

boss, it's "Dont do that. Dont do this."

PDZ: So you're saying males are more directive.

Female Participanl: I have been in many jobs. And

in all those jobs I only had one opportunity ro work

with a female boss; most of them have been males. I

don't see any difference. My female boss rhought like

my male bosses.

Male Participant: I worked with both a male and

female boss. I found my female boss more

participative, helpful, and urlderstanding. I think male

bosses tend to be more aggressive and try to boss people

around.

HMB: Ve've heard a variery of opinions. Let's flash

the results. Half the men said it doesnt make any differ-

ence. 40 percent said they are more comfortable with

male bosses. Lett see what the women said.

t 4

A man and a woman are about to be promotedto top management level. Who do you thinkwill likely be promoted?

MAN WOMAT.I EITHERo h Y o %

MALE 53 1 47

FEMALE 63 () 37

Who will likely be promoted to topmanagement according to:

MALE RESPONDENTS(by birth year)

WOMAN EITHER% %

1950-19591960-19691970-1979

PDL: The main finding is that the perc€ntageof women who are more comfortable with femalebosses is more than double that of the men. Maybeit has to do with the participative nurturing rype ofstyle, which ofcourse women expect from their su-peflors.

HMB: Let's see now how the males are progress-ing from one generation to the next. \fhar is inrer-esring here is rhar wirhin rhe youngesr generation.people are more comfortable dealing with femalebosses.

Femalr Participanr: They are being realistic, be-cause more and more women are becoming bosses.

HMB:There are more women bosses. Therefore,they might as well learn to live with it? Or are theyin fact more comfortable with rhis so-called partici-pative, understanding, nurturing sryle?

PDL: The lady has a point when she said thatwhen more and more women enter the workplace,the likelihood ofhaving a female boss increases. So,more males will have the opportunity of workingwith a female boss. So this may not have been truefor the older generation.

Let's move to the female respondents. This isquire inreresting, as the younger generarion seemsto prefer male bosses. Maybe because, as one oftheparticipants mentioned earlier, men have a directivesryle. Men tell you exactly what they wanr you rodo. Maybe that sryle is appealing ro rhe youngerpeople who still need to be trained. Thatt one theory.Howevel there is still a strong preference - 31 per-cent - as well for the female bosses.

Highly Successfir.l Man: Top l0 Characteristics

PDL: Ve also asked our respondenrs to thinkof a highly, successful man and to enumerate someof the characteristics that describe this individual.

002

Who will likely be promoted to topmanagement according to:

FEMALE RESPONDENTS(by birth year)

MAN WOMAN EITHERolo o/o o/"

1950-1959 82 0 181960-1969 62 0 381970-1979 53 0 47

MAN%

464760

545339

r5

'We also grouped the answers in terms of female respon-

dents and male respondents. 'i{4-rat do you think are

the characteristics ofa highly successful man?

Female Panicipantr He's compe ririve.

Female Parthipanl: He has a well-rounded person-

aliry.

Male Participant: He knows what he wants.

Female Participanr; He's a risk taker. He has a high

self-esteem. He's highly confident, effective.

PDL: Leis look at what the women respondents

said are the top characteristics ofa highly successfi:l man.

You

see something interesting with the first three, es-pecially the No. 1 answer. It appears women really value

good people skills. So the ability to interact well withpeople, the ability to communicate, to build a good team

all seem to be important to females - even more im-

portant than being hardworking. The No. 3 character-istic, good communications skills, is related to No. 1,

people skills. So, interpersonal skills seem to be moreimportant to women rather than technical skills.

HMB: The ma.le respondents seem to agree with

rheir female counterparts in terms ofthe first two char-acteristics: being hardworking and having good people

skills. But they seem to place a higher emphasis on be-ing ambitious and goal-oriented, followed by being fair

and honest, and having integriry - which the femalerespondents didn't rank quite as high.

PDZ: Another finding is that for men, being inno-

vative and having a vision is important. Forwomen you

wouldnt see that reflected as much.

Male Participant: Note that the female respondents

are talking of the present. The male respondents are

talking more of the future and where they are going.

PDL: That women are very "here and now" comes

from their role of managing the family. Their concerns

are dominated by the present. Men have dreams -

looking forward and strategizing is important to them.It may or may not be as important to women or they

may not have as much experience doing that. As you

know, male and female children may have been social-

ized in a different way. Even ifyou look at the games

boys play versus the games girls play when they were

young - they'r€ very different. A tea parry for the girlsis very relationship-oriented and nurturing. Sports for

boys are goal-oriented, competitive, future-oriented.

Strategy is important for them. The socializing of kids

builds expectations ofthe future roles they will play.

Highly Successfrrl Voman: Top 10 Characteristics

PDZr Now we look at the top 10 characteristics of

highly successful women. 'What do you think would be

some of these characteristics?

Female Parr ic ipazt ; Compet i t iveness, beinghardworking.

Ma le Par ticipan t: Assertiveness.

Mak Participant:The ability to deal well with men.

I think she should be a very good cook and very good

homerriaker. Now dont get me wrong. Many success-

ful men.are actually products of excellent marriages

because their wives have been very successful home-

makers. Arrd managing a home is very difficult.

. PDL: On top of ever)'thing else, yes, that's very cha.l-

Ienging.

HMB:That's one of our senior faculty members,

Capt. Bobby Lim, talking. He is a strong believer in

tnat.

Female Participant; V/hen we were talking about

the traits of successful men, I said a highly successful

man would be a happily married man or family man.

And I agree with Capt. Lim. If a man or a woman were

happy with their family lives they would become suc-

cessful in their careers. For instance, if a woman has a

r6

Who will likely be promoted to topmanagement according to:

WPE OF COMPANY

WOMAN EITHER% %0 3 8

MULTI.NATIONAL 49

husband who will ask her - "\X/here did you go afterwork, maybe you were with somebody else?" - that

would stop her from progressing in her career. Or vice-versa: if the husband had a nagger for a wife, how canhe be successfirl?

Female Participanr: Oh, come on. If the wife andthe husband are both working, they should tell eachother, "Look we are both working, we both dont have

the rime to nag. Let's not spend the time we have nag-- : - - ^ . - ^ - L ^ . L - - "

PDL: That's a phenomenon being observed now.

Sometimes marriages can be successful because the part-ners are focused. You have limited time together ifyou

are both working. Therefore, you try to use that to the

best ofyour ability. You dont waste time with nones-sential things like nagging. But thatt true, if the part-ner respects the wishes of the other or the spouse thenyou have a strong marriage which results in a strongercareer and happy personal life.

Female Participanr: There was a study conductedin the States involving the top executives of Fortune

500 companies. The results were surprising because most

ofthe top executives are married to their high school orcollege sweethearts or most ofthem were never divorced.

PDZ.'You would think the opposite: that these men

would prioritize their careers over their families. Butthe other way of looking at it is that these successful

men had somebody very supportive behind them.Female Participant: But why is the success ofa man

or woman dependent on somebody else? \fi/hat if oneparrner changes? I think the factors are within the in-

dividual. You succeed according to your own yardstick

and not by external measures.

PDL: Let's look at what female respondents

thought. They felt that to be successful the womanwould have to be hardworking, intelligent, competent,

and also ambitious and goal-oriented. So, clearly thiswoman has to have drive and must be decisive. Deci-

siveness is rypically related to a man, but here you willse€ that it now gem reflected in a successful woman.

HMB:Ve can see that good communication skills

rated much higher in the previous question about suc-cessful men, but these skills are rated much lower for

successfirl women. Perhaps the female respondents takeit for granted that a highly successful woman alreadyhas this as part of her interpersonal skills repertoire.Let's look at the mal€ respondents. Again we see:hardworking, good people skills, intelligent, ambitiousand goal-oriented. Competence is higher than in the

rankins of characteristics for a successful man. I

Prof Patricia Denise J. Lopez joined the AIM faal4t in June1996, teaching Haman Behauior in Organizations for the Masterin Business Management (MBM) program. Sbe * co-cbaitpersonof AIMiArea ofExcelbnce in Human Bebauiot in Organizations(AOE-HBO), a facuhy group specializing on furthering researchin human resources and peoplz management in ASEAN organiza-tions.

Prof Horucio M. Bonomeo, Jx I tbe USIPHIL Professor of Busi'ness Management. His major ateas ofspecialization are organiza-tional behauior and ttrategy formuktion. He ha: been with the

facuhy of AIM since 1977, seruing as the Astociate Dean fot theMatet in Business Management and the Master in Managementprograms. He is concurtentl the Program Ditector of the Execu-tiue Edacation Tbp Maxagement Program.

MAN%

LOCAL 62

51

1 7

Bevond theCdercive OrganizationWe striue to empouer pelple with one hand, and still use coercion with the other. There must be a bexer way to

manage ?eople.

By Sreve Minert

Modern organizations face a common dilemma:

while remaining structurally coercive, they try to imple-

ment non-coercive methods of management, such as

empowerment and deJayering. -Vhat is needed is an

emergent, non-coercive organizational form. The au-

thor oresents an alternative: "Self-Selected Value Com-

munlties," which he has first-hand experience

in being a part of, through association with a volun-

tary organization. Instead ofusing coercion to resolve

internal conflicts, this new species of organization

would implement technologies of personal growth.

These "psychological technologies" have deep roots

in Eastern spirituality but have been developed in

the West as tools for individual personal development'

They can now be effectively applied to organizational

development, but only in organizations which have a

non-coercive structute.

wo merchant capitalists maintain relationships

with local craftsmen and artisans who would

carry out particular types ofwork for them.

One of the merchants is more successful and becomes

richer. Along wirh his growing superioriry in resources'

he sees an opportunity to reduce the dependency he

feels on the skilled workers ofthe area, a dependenry

he has shared with his closest comPetitor. The idea

that these workers also work for his competitor poses

a threat to this greater merchant. He sees this threat in

terms of what they charge him for theit labor. These

workers could potentially exert power over the greater

merchant because they had an alternative merchant

who might offer them more money'

So, to protect himself against the risks posed by

this dependency, he decides to cut them offfrom other

sources of income. He sets up a ftirmal organization,

e.rgages them in a contract of employment, and thus

cuts offtheir relations with all other owners ofcapital.

In otherwords, he monopolizes their labor time, skills,

and knowledge.

This is one of the main explanations for the ori-

gin of modern organizations. The owner reversed his

dependency on free-exchange relations by making his

workers 100-percent dependent, for their income, on

him. He was then in a position to coerce them (with

societal legitimacy) by threatening to reduce their in-

come to zero - a threat which he was now structur-

ally enabled to crrry out at any time.

This is howcoercion came to be an essentia.l com-

ponent in the structure ofconventional organizations.

r8

a

Organizations have used coercion to resolve internal

conflicts for some time .

However, environmental forces in organizations are

making coercion counterproductive. The coercive or-

ganization is now functionally in decline because of

changes in organizational environments. This has cre-ated the dilemma faced by organizations which, while

remaining structurally coercive, are trying to implement

non-coercive methods ofmanagement, such as empow-

erment and deJayering.

Consequently, organizationsnow have a need to find alterna-tives to coercion to resolve inter-nal conflicts.

The Difference Between Powerand Coercion

The question, "lVhat is coer-cion?" can be transformed into:"lVhat does 'power' mean?" Al-though 'power" is commonlyused in everyday language, most

people find it difficult to definethe word. Itt one of those classesofphenomenon which are easy torecognize when seen or experi-enced but difficult to verbally de-fine. Social scientists, however,have come up with a fairly con-

sensual model ofwhat it means to have power.

This is a very simple model involving two actors A

and B. The idea is that A exercises power over B by

getting B to do something which he or she otherwise

would not have done. In this model B wanted to do X,

and because A intervened, B did Y instead. In otherwords, power is being able to alter other peoplet be-

havior in an intended way.

How can one attempt to alter another's behavior?Perhaps the most obvious method is to offer an incen-

tive, the most obvious being money. Another powerful

motivator in human relationships is personal love."Spiritual love," or the power of ideas and values, can

be a third motivator. Finally, there is coercion - trying

to enforce changes in behavior via the use of threats.

This movement from incentives and motivators to

threats is one of the great divides in power theory:

there are clear and essential differences in qualiry of

relationship between the two behavioral approaches.

These d i f ferences are now cruc ia l for modern

organizations.

Overwhelm ingly. people donor react well to being coerced; it

provokes fear. resentment. and re-

belliousness. This is why coercionin organizations is now becoming

dysfunctional.

Why Coerc ion is BecomingCounterproductive

For a long time we have lived

wirh coe rcion wirhout much dis-

tress because we lived in an envi-ronment of comparative stabilityand predic tabi l i ty . However,

change in this environmenr is be-coming chaoric ard unpredictable.Markers. fdr example. are becom-ing more and more fragmented by

cusro mer segments: d i f ferent

rypes of customers are constantly

evolving. Customers are becoming mote and mote

demanding in terms of ultimately individualized

products.

Organizations need to react much quicker, to be

nimbler on their feet and more flexible than ever be-

fore. Their reaction time has to be minimized and, in-

deed, their behavior needs to become much more pro-

active. They have to get closer to markets: information

from markets can no longer be filtered up the organiza-

tional hierarchy. Information must get to the actual

decision makers faster so they can respond to markets

faster. This requires shifting decision-making down-

...coercion works

in stable and

predictable

environments -

but these are

chaotic and unpre-

dictable times...

19

wards. This, in turn, requires employee initiative and

responsibility.

Consequently, we are in a situation where employee

obedience is no longer enough. It is now not enough

that employees should simply obey commands -

organizations now want the "hearts and minds" of their

employees as well. This represents a true revolution in

organizational behavior: the trend toward the use of

coercion as a means of control-ling behavior has gone through a

180-degree revolution and is nowmoving in the opposite direction.

Let's look more closely at the

current organizational strugglefor rhe hearts and minds of its

employees. Managers have useddifferent methods to win this

battle. "Empowerme nt" is themost famous and widespread ofthese. In a nutshell, the centralconcept of empowerment is to get

employees to act like entrepre-neurs. This requires high levels of

commitment by employees to theorganization's goals, values, andvision. .

The problem is that top man-agers trying to achieve this are

...the problem with"empowerment" is

that top managers

who "give" it have

their other hand

tightly clutched

around the

coercion lever...

The Alternatives to Coercion

This brings us to a consideration of the alterna-

tives. Here, I would like to introduce the concept of

the "self-selected value community." If we extrapolate

from the notion that the conventional organization is

deconstructing itseli there will come a point where the

organization has cea.sed to exisr. Most organizarions may

have a long way to go before they get to this point, but

I think you can see it comingSome organizarions already claim

to have what Charles Handy has

called a "clover leaf" structure: the

top managers form a nucleus fromwhich all irs acriviries are sub-con-

rracted. Eventually, these nuclear

individuals may decide that they

will simply form partnerships, andrhe formal organizarion will disap-

pear €ntirely.

Other routes can be imagined,

but what rhey will all lead ro is a

group of individuals who form a

sort of virtual organization based

on their preference to do businesswith each orher. This is what I call

a "self-selecred value communiry"People sele cr who they wish to

work with based on shared values.

keeping their other hand tighdy clutched around the

coercion lever, which enables them to maintain con-

trol over their organization. The message to the em-

ployee is: "We would like you to personally commit to

our. organization. \7e, on the other hand, are going to

rerain our legitimate right to expel you and/or threaten

to expel you from this same organization any time thatwe judge that your behavior, attitudes, and opinions

do not contribute positively to the development ofthisorganization. (In the event of any dispute about this,

we guarante€ that we will win and you will lose.)" This

has a dis-inspiring and de-motivating effect. It also

undermines the growth of rust, which is essential for

effective communications,

Sharing values with another per-

son is very close to the idea oftrusting that person. The

method ofadaptation will be personal growth. People

in this new organizational form will have to adapt to

each other, the only other alternative being to volun-

tarily leave the organization.

The personal growth method could work to resolve

conflicts. If, by definition, the self-selected, value com-

munity pledges itselfnot to use coercion to expel people

from the organization, how then is it going to resolve

its internal conflicts?

There are a number of negative alternatives. The

most basic is chaos and disintegration leading to orga-

20

nizational death. Another is the rise of factions creat-ing an informal intra-organizational power structure.Iftwo or more factions have approximately equal power,this could lead to internal power struggle and ultimatelyresulr in schisms, splirring rhe organization inro rwo ormore separate organizations. Another alternative is toreturn to coercive methods of solving problems. Avari-ant of this that might afflicr self-selected value com-munities is the cult.

The positive aJrernarive can becal led rhe "co l lecr ive

personalgrowrh organizariona.l transforma-tional" route. This would have anumber ofattributes: it would beboth liberal and radical. Liberal irrthe sense of Mikhail Gorbachev'sword Glasnost - open and trans-parent; openness of informationand debare wirhin rhe organiza-tion. This would clearly differen-tiate rhis rype ofcommuniry fromboth a conventional organizationand a cult. Liberal would also in-clude rolerance and respect for in-dividual inregriry. The radical ele-m e n r , r o u s e G o r b a c h e v ' sPe res 4o i ha - encompasses a will-ingness ro change borh ar rhe in-dividual and organ izarional levels.This should be underpinned by afaith in progress through collective structural change.These elements taken all together can create the basisfor collective transformation.

This is not necessarily a new phenomenon: tradi-tional religious centers such as ashrams and monaster-ies nurture this kind ofcollective consciousness. It canhave transformational effects both for individuals andfor the collective community in which they pardcipate.A major difference for the self-selected value commu-nity would be that this consciousness would be value-open and not linked with any particular religious rra-dition. Two essential elements in creating and main-taining this transformational collective consciousness

would be, first, collective transformational practice and,second, heart-centered discourse. The first of these re-quires that all participants in the organization be collec-tively engaged in some type ofdevelopmental technique.This could be meditation, breathwork, inner voice dia-logue, or any ofthe various self-development techniquesavailable today. As regards heart-centered discourse, akey element would be what I am calling here "peer-to-

peer" communication, with nohierarchical distinctions berweenpeople in the organization. Peoplemay be differentiated by functionalrole, they may be responsible foradministration, or for certain tasks,but they have no higher status thanany orher individual in the orga-nization.

Instead of using coercion toresolve internal conflicts, this newspecies of organization wouldimplemenr rhe technologies of pe r-sonal growth, which are now wellestablished in modern societies.Signi f icant organizar ions of rh istype are now emerging in the vol-untary sector. It remains to be seenwhether they can succeed asorganizations which are predomi-nanr ly economic in purpose -

a notorious graveyard for idealis-tic, non-coercive forms.

Steu Mixett, Ph.D., is a Witing Lecrurer at Paxeridgebury Man-agement Centre and an Extemal Examiner in OrganizationalBehauioar at Luton Uniueuitl. He bas contibuted ouer 180 ar-ticles to more tban 50 dffirext international joumah and is a fullrnember of the Cbar*red Institue of Mathaing, the Bit*h (&Earopean) Astociation ofCommanicatorc in Business, and the So-cien ofAutbors.

In a "self-selected

value community,"

people choose who

they wish to work

with based on

shared values,

which is close to

shared trust.

2 l

.PERSONRt

Your LifeAs a BusinessIt doesn't imitate art, it's ,tot (t bed ofroses.

How prof.tabk is yours?

Tb the manager, life is - what else - a business.

By Chung Po-Yang

The co-founder and Chairman Emeritus of DHL In-

ternational Ltd. Hong Kong SAR is a self-proclaimed

toist manager. It may appear that Taoism and man-

agement are at two opposite philosophical poles. But

Po-Chungt humanist ideals have been effectively in-

corporared into the prominent package-delivery name's

system, proving that lifet concepts can be used in do-

ing good business. His three philosophies behind the

success of DHL company culture include "decentrali-

zation," "strategic thinking at all management levels,"

and the preservation of a positive 'Asian family atti-

tude." Not one to stop at the l8O-degree mark ofa

cycle, Chung poses the next inevitable question: "Can

we use business practices to better manage our lives,

live them with mor€ purposeJ and increase our happi-

ness?" To this he oroposes a new mental model.

ife can be looked at as a business: it has clients,

products, and services. It has product quality

standards; and it has profits and losses.

'!7hen businesses fail, they can declare bankruptry

and start over again. -Vhile human beings cant liter-

ally start afresh, they can undertake "mental and emo-

rional reengineering" to ensure a high level of quality

service, happiness, and self-esteem.

The Business of Living

Each of us is an operating entiry who has social

contracts to provide service to all of the people with

whom we come into contact and to receive service from

them. From the moment of birth, when we first re-

ceived service from our mothers, the doctors and

nurses, until the time we die and receive service from

the grave diggers, we are in a constant transacrion ser-

vice network with all of the people with whom we

come rnto contacr.

This requires us to judge the success of our life in

terms ofthe service successes and failures that we have

in our interactions with others, our customer, and cli-

ents. We use our personal evaluation ofthese interac-

tions with orher people to derive our personal service

qualiry records. Our positive or negative evaluation of

our service qualiry direcrly affects our sense ofhappi-

22

ness, our peace of mind, and ultimately our self-es-teem.

When we view our lives as an operating enriry.we will see that many important aspects of businesshave counterparts in our personal lives. A business!customers correspond to our family, friends, and as-sociates. Its corporate culture equals our personal phi-losophies. Its product or service equals our professionalor personal serv ices. Acompanfs strategic plans cor-respond to our personal plans.

In a sewice business, servicequality performance record,profit and loss statements, andbaiance sheets reflect the stateofthe business. There are simi-lar records that reflect the stateof one's life: "service qualityrecords " are reflected in the ac-complishments we are proudof; "profit and loss" can be mea-sured as a sense of happinessand peace of mind; and a "bal-

ance sheet" is comparable toonet level of self-esteem.

'Our profit and loss accountcan be interpreted as the netsum of our accumulated posi-tive emotional scores over ournegative emotional scores for agiven period of time. '*4rile a

In business and

in life, there is

a strong

correlation

between the

quality of service

and the level.of

happiness..

'When a person starts to provide poor service, he

or she begins to expect to receive poor service. After awhile, once seemingly insignificant sewice quality losseswill mount up and wipe out any accumulated capitalon the emotional balance sheet. The end result is emo-tional bankruptry and low self-esteem.

Mental and Emotional Reengineering

To ger a new srart. you cantake an inventory ofour lives andthrow out all service failurcrecords - all the mental baggagethat negatively affects the serviceyou give your customers. You canthen use a four-step process.

Tahe a full inuentory of yourpositiue and negatiue emotions.

'Taking a complete inventory

helps put your abstract rhoughr' in to words. Somet imes, thesimple act of writing down wharhas always been fleeting clarifiesthe problem or may even makeir go away. You may even noricerhat your lisr ofsignificant nega-tive e motions is a lor shorrer rhar,you imagined ir would be. Also,putting a handle on each eventmakes it easier to manage.

business uses product qualiry corporate mora.le, anddollar profits to measure its success, a human beinguses accomplishments which he or she is proud of,peace of mind, and the feelings of contentment re-sulting from high self-esteem to measure his or herlevel of fulfillment and happiness.

Both in the business world and in the business ofliving, I believe there is a strong correlation betweenthe quality ofservice and the level ofhappiness. Ilalzuel ofpersonal quality = the Ttrtl ofnrsonal happiness.

The most important aspectof making a personal inventory is honesry You mustnot try to deceive your live-in client. Kick yourselfonlyonce. Instead of saying, "if only I hadnt done that,"say, "next time I will do this."

Get id of negatiue emotions.

This process allowed me to make decisions thateffectively gave me the power to reengineer mymission in life and the will to realign my lifestyleto correspond with my basic value system.

) 1

Draw a blueprint for a purposeful hfe.

After taking an inventory and cleaning your house

of negative emotions, the next step is ro start writing a

business plan. The rypical headings of a business plan

correspond to headings in a personal plan. For example:"mission statement" corresponds to "life goal."

Monitor and ensure high-qual'

One of the most important

elements required to achieve the

mission ofa business is to €nsure

high-quality service by installing a

quality assurance process.

In addition to reviewing your

service record on a daily basis, you

can gain other benefits from iour-nal writing. You will develop the

habi ts of having quiet r ime for

yourself and syste matically rhink-

ing emorional issues through. And

you will have a record so you canmoniror changes in your positions

on issues over time.

Who's In Charge of Your Life?

Most businesses are built by

owner-entrepreneurs. In the early

stages of their development, the way each business is

developed reflects the individual personality and phi-

losophy of the owner-entrepreneur. We see this style

nowadays in the "mom and pop" store or business.

One hundred years ago. this was also the way rhe

industrial companies were managed in their infancies.

Reactionary sryles of management were the rule of the

day. 'Vhile such companies remained small, all business

planning could be done and kept in the ownert head.

ln the past,

people lived

their lives like a

mom and pop store-

they made

short-term plans

and their important

decisions were

mostly reactivel

Today, management is proactive and knowledge-

able. Successful companies have a clear sense of pur-

pose and produce predictable results. Because a clear

vision and business plan exists, the owner of a large

corporation can redre or die without causing any ma-

jor disruption ofoperations. The evolution ofthe busi-

ness plan documents a shift from reactive business man-

agement to proacdve business planning characterized

by clearly defined business goals and strategies.

Looking at the business of

life, I think itt possible to estab-

lish a similar rationale for taking

the time to write a personal busi-

ness plan for living our lives. In

the past, people lived their lives

like a mom and pop store - they

made only shon-term plans; and

their important decisions were

mostly reactive. But change is in

the air. \4sit any bookstore and

you will find shelves full of self-

improvement books.

Given the circumstances, itt

reasonable to ask ourselves, "\7ill

we run our lives or will our lives

run us?" Ifyou want to live a pro-

active and managed life, it's not

too late to get started. I

Dinna Louise C. Dalno (dizzadalgeghgaqillpu, is afreelance

witer and editox Th aniclz is excerpted fom her boob, "Asian

BusinesstVidom: Lessoxsfom the Regioni Best axd Bightest Basi'

ness Leaderi (Coplright 2000, John Wilel dt Sons Atia Pte. Ltd.).

Tbe booh feanres insightfvl and informatiue atticbs fom 32 ui'

sionary Asian leadzr and is auailabb at Amamncom and Na-

tional Boohstore.

24

Research on specific management practices from some of the rcgion's leading academic minds

Corporate Frnance :Do Managers Manipulate the Timing of Asset Sales?

1 r is widely believed that corporare managers are eco-

I nom ically, morivated to.choose accounring rech-nrques ano manage tnelr IlrmS earnlngs ln a vafl-

ery ofways wrlArn tAe overall Gamewo rk o{ gener ly

accepted accounting principles. However, they may a.lso

achieve a target level ofreported earnings through the

timing of actual transactions, such

as asset sales.

E. Bartov, writing in AccountingReuieu, argued, that managers at-

tempt to manipulate reported earn-ings through the timing of asset

sales. This position is difficult to

support because asset sales have im-

portant economic, and not .just ac-counting, motivations. lVe examine

rwo common motivations for a con-nection between asset sales and earn-ings manipulat ion: earn ingssmoothing and gearing.

. The earnings smoothing litera-

ture proposes that managers have incentives to man-

age earnings to report a lower variance earnings figure.

The proposition is that when current earnings per share

net ofasset sales (NEPS) is below (above) the previous

NEPS, managers time asset sales to increase (decrease) '

the current earnings per share. The other proposition

is that firms with higher gearing ratios are likely to time

asset sales to increase equiry and thus improve their

ratios.

Ve studied 44 randomly chosen companies listed

on the main board ofthe Stock Exchange ofSingapore

from 1989 to 1991. A key variable useci in the empiri-

cal results is total income from asset sa.les per share(ASPS), the sum of gains and losses of all asset sales

that are included in net income for the period. Specific

results of interest of this Singapore study indicate that

for firms with ANEPS <0, there is a negative relation-

ship between earnings from asset sales and ANEPS, con-

sistent with the earnings smoothing motivations, but

also consistent with non-accounting-related economic

motr'vatrons. Thus, the results of thk study are parrially

consistent with Bartov that managers attempt to "mis-

represent" actual earnings through the timing of asset

sales to achieve an earnings-smooth-ing objective. However, on balance,the evidence indicat€s that the process

of timing assets sales is decidedly more

compl icated than the earn ings-

smoothing reason alone would indi-

cate. The empirical evidence is more

consistent with the reasoning that as-

set sales, which are real variables, are

determined by economic and finan-

cial considerations, which are also realvariables. The results do not indicare

that managers time asset sales to avoid

accounting-based restrictions in debt

covenants.

The study indicates that manag-

ers ate not likely to have been motivated to make asset

sales for purposes of managing reported earnings.

Rather, these managers appear to have been mote con-

cerned with: (a) financing their firms' activities through

regular investment asset sales, and (b) selling their fixed

assets irregularly as part of optimal asset sales and re-

placement programs. r

From a paper by Geoftey Poinas, Asociate Profesor Fac-

ul4t of Businas Administation, Simon Fraser Uniuersity;

Ti'eaor tVilhins, Associate Professor Department of Fi'

nance and Accounting National Uniuersity ofSingapore;

and Yohe Shang Kuan, Credit Oficer, Malayan Bank-

ing Berhad, Singapore. The paper was uritten uhik G.

Poitras ui a Senior Fellou in the Department of Eco'

nomics and Stathtics ltt the National Uniuersity of

Singapore.

.,<

Management Control :Th ree-St-ep Gontrol of Su bsid iary Corporations

ue to the par t icu lar character is t ics of

parent-subsidiary corporations, the manage-

ment control orocess in such coroorations is

an exclusive issue, different from the control pro-

cess in normal corporations.

A three-step model pre-

sents systematic perspective ineffective control of parent-

subsidiary corporations.

Step 1 is the preparationstep, including three major

procedures controlled by the

parent. These are strategy

control, investment control,and executives control. Strat-

egy control involves setting

goals in a discussion among

the executives of the parent

and the board of the subsid-

iary. The goa.ls of the subsid-iary shopld be coordinated

Investment control involves decisions on in-yestment amount and share of stock. Executives

control involves those who are responsible for man-

agement control in the subsidiary. A significant,

although easily neglected, procedure here is the

design ofthe contract between the board and the

managers of the subsidiary.

Step 2 is the executive step

in which the subsidiary proceedsin its independenl'control pro-

cess as it and the parent interactwith each other. A parent can ef-

fectively control the subsidiary

through functional control. Ex-

amples are controlling the key

technology (like Coca-Cola does

by controlling its formula), or

controlling the supply (as Philips

does by supplying more than 60percent of the components used

in its China factories), or control-l ing the sales funct ion (as

with that of the parent. And since goals are gener-

ally abstact, they must be translated into concrete

and operable strategies. These can be classified into

three types: (a) Profit-oriented: the parent invests

in the subsidiary only for profit. (b) Function-ori-

entid: the parent invests in the subsidiary to pro-

mote the professiond competency of a specific func-

tional part that is important to th€ parent. (c) Scale-

oriented: the parent invests in the subsidiary to en-

large its scale.

The two corporation, .ur, p"y -ore attention

to this classification since it affects the whole con-

trol process. The profit-oriented strategy is inclined

toward loose conrol, the scale-oriented strategy

toward tight control, and the function-oriented

strategy uses control somewhere in the middle.

26

Johnson & Johnson does by selling all subsidiar-

ies' output in China).

Step 3 is the revision step, including three ma-jor proiedures controlled by the parent corre-

sponding ro the three in Step 1, that is, strategy

control, investment control. and execurives con-

trol. The parent decides whether to expand, main-

tain, or close the subsidiary; whether to increase

or decrease the investment; or whether the man-

agers should be changed or retain€d. I

From a paper by Ge Chen and Xa Jinfa, Zhejiang[Jniaersity China, College of Commerce and Busi'ness Administration.

From End to BeginningSince the start of the year, people have talked endlessly of

new beginnings. Yet as management writer William Bridgesreminds us, we must always start at the end. We can't beginanything without properly ending those ideas, behaviors, andmindsets that we need to leave behind.

This issue's content signals quite a number of endings. Tocelebrate them. we summarize them here:

The end of the old economy. That's the pre-digital economy,the one we all worked in until recently. The one that the internethas pushed into our past. Dado Banatao's piece, "What's Un-derneath Those Dot-Coms." takes us beneath the surface of thenew economy and presents us with a privileged perspectiveinto how we need to recalibrate our thinking to thrive in it.

The end of sexuali6,. In terms of how it has traditionallymapped the Asian workplace, that is. Participate virtually inthe forum presided by Professors Denise Lopez and JunboBorromeo, "Sexuality in the Workplace," and see how you mighthave answered their questions.

The end ofnarrow skill sets. The European model for man-aging in a global economy has been cited as being the mostrelevant for benchmarking by Asian organizations. By describ-ing the new makeup of the European general manager, Prof.Joe Faustino could, indeed, be describing you...or how youneed to grow as a leader. Check out his checklist and evaluateyour development.

The end of AIM as you have known lr ro be. That's the mes-sage of the Institute's newly elected dean, Prof. Eduardo Morat6.Chances are, the AIM you know is just one of the four, or five,or more AIMs that have been invented. or will be developed inthe next two years.

The beginning of real networking. With the coming of thenet comes the mechanism we've all been waiting for that willprovide wide, real-time networking. The alumni associationnearest you is working hard on this project. Be sure to connectwith them and be counted as the alumni network clicks intoplace.

Sincerely,

The Asian Manager

Editor-in-Chiei Jet MagsaysayAssistant Editor: Kristine DomingoArt Director: Manny EspinolaOperations Ofhcer: Yvette Bautista-EvangelistaCirculation Officer: Eden S. Cardenas

28 Prevision

30 Beyond the Box

32 AIM Update

34 Faculty ProfilesI Prof. Purba Raor Prof. Mel Salazar

40 Interview with DeanEduardo A. Morat6, Jr.:The Five AIMs

44 A-List 2OOO/The Decadet FirstTiiple-A Winners:r Datuk Saripr IlN. Singhr

'Wenent Pan

r Emie Garilao

55 Class Distinctions:MBtrd'73 and EnhancingClass Networking

62 Class Notesr FAIM General Assemblyr Homecoming 2000r International Nightr AIMI Father in the Streetsr Individual Class Notes

73 Gadfly

=Jzy' y4v-Var7frf vv'zs- / / t /Cover Art Cender Adfacts AIM-ART

ldeas For the Up+o-Date Manager

The ABCs of

I n previewing Management 21C (Financial Times/Prentice' Hall, 1999;, Tom Brown of Management General (mgeneral.com)

could only agree with the bookt premise : "someday we'll all manage

this way." The book's author, Subir Chowdhury, the thirrysomethingExecutive Vice President ofthe American Supplier Institute, askedmore than two dozen prominent management thinkers to submrt

their thoughts about the future (which, in our nanosecond culture,means "right now"). Glimpses from Chowdhury's tour of business

and organizations in the 21" Century include:I Leaders will rely on tools such as imagination, vision,

mission, and dedication.I However, their strategies definitely will be different:

process will be ever more important.r They will employ "Peoplistic Communication" and will

require a "Next Mentaliry" - perhaps the two dominantstrengths of 2l C leaders.

Chowdhury introduces a new measure of management

effectiveness: ROT (Return onTalent), which measures the paybackfrom investrnent in people. Yes, the future will still be filled with

buzzwords, people will still be important, and managing them will

still be a demanding profession.

How AreYou FeelingToday?I t 's whatwe al l need,talking aboutlearning how tomanage ouremotions.

21C ManagemontThe future

will stil l be fil ledwith buzzwords,

people will stil l beimportant,

and managing themwi l l s t i l l be a

demandingprofession.

Llntil recently, .professional

managers - indeed, anyone who worls for a modernorganizarion - have been xked ro leave their emotions at the door Throughout Asia,

theres a saying in the local dialect that translates to "It's just business, nothingpersonal."These days, organizations are encouraging the opposite perspective: It's OK

to talk about emorions at work. In fact, its more thar just OK: It's what we all need,talking about learning how to manage our emotions. Ever since Daniel Goleman

put)ished Emotional Intelllgence (Bantam, 1995) and wrote two articles in HarvardBusiness Review, "emotional intelligence" has become a mantra, offering knowledge

workers a way to come to terms with their feelings - and to perform more effectively.At the Minneapolis training facility of American Fxpress, all of the companys new

financial advisers take an eight-hour course where they are taken through a range oftopics that include such skills as self-awareness, self-control, reframing and self-talk.

Aside from Goleman's work, the interest in emotional intelligence, says &tst Companl,comes from 'the increasing presence ofwomen in the workplace and the higher

comfort level they bring to the territory of emotions. And the arrival ofthe neweconomy hx made companies realize that what they need from their workers goes

beyond hands, bodies, and eight-hour days." Time will tell whether this is another fador a firndamenml organizational reality. Meanwhile , the evidence mounts. The U.S.

Air force reporrs a 95 percent chance ofsuccess ofa potential candidate with a "good"

or "excellent" EQ profile. The top five qualities that were associated wirh rhe highest-performing associates were asseftiveness, empathy, happiness, self-awareness, and

problem solving.

28

Your Products,As FreshAs Fruits

Arou ndthe worldthere are

tr i l l ions of dol larsworth of products

sit t ing idlyin warehouses.

V ,I oure concerned abouc having too much invenrorv in vour ware-

houses, or somewhere else in the system. You're not alone, of course.Around the world rhere are tril l ions ofdollars worrh ofproducts sirringidly in warehouses, or stuck somewhere between the factory and theconsumer's hands. If these products were all as perishable as fruits, thisproblem would be a real stinker. This image apparend,v lir up a light bulbin someonet head, or manv simultaneous light bulbs in manv peopletheads. The result is that the business world now has new models formanaging the supplv chain so that products are delivered ro rhe cusromeras fresh as if thev were fruits picked from a rree.

Or even fresher, as in the case of,, for example, Hewlett-Packard PCs.Upside (upside.com) quotes an H-P executive computing the losses ofacomputer sitting on a shelf. That PC "loses about one percenr of its valueevery week because technologv is making it obsolete. \Jl/ith profir marginsof 10 percenr to 20 percent on PCs, that doesnt leave anybody much idletimc. "

H-Pi solution: technologv. Here's the script: Computers rake ordersfor computers, and those orders are processed by other computers thar usethe interner and private networks to communicate the derails to comput-ers on the desk of everyone involved in creating and delivering the prod-uct. Factory floor compurers spit out, pick tickcts and assembly orders fortechnicians to build rhe compurers that are then tesred bv computer andshipped with rracking numbers rhat can be followed to their destinationby computer. This enables a customer ro place an order online for acustom-configured PC and see rhe delivery truck coming to his or herhome or office within a few davs

People's Great ExpectationsofYour Company

The numbers are in. People do not onlv hold governmenrsand public leaders responsible for socieral concerns - they holdcompanies responsible. This was the key finding of the Millen-

nium Poll on Social Responsibiliry which asked more rhan 25,000people in 23 countries ro name the facrors that most influence

their impressions of individual companies. The majoriry relatesAcross the Board, mentioned facrors related to the companies'

social responsibilities; labor practices, business ethics, responsibilityto society at large, or environmenral impact. Only one in three

mentioned characteristics related to business fundamentals, such asfinancial factors, company size, business strateg,v, or management.Most of the respondents who were interviewed want companies togo beyond the traditional business role of "making a profit, paying

ta-xes, and providing employment in ways that obey all laws." Inshort, people dont hope for companies to become socially

responsible. Thev exoecr them t..

Peopledon't hopefor companiesto becomesocial lyresponsible.They expect them to.

29

Insights for boundaryless thinhing and liuing

Instructions for Life

This is supposedly a Chinese-lizntraTotem thnt ahen passed on to Jiiendswill bring good luck. Euen if theydoni, you l/!nd rimeless sense in at

least one of the reminders.

Q iu . people more than"'t rhey expect and do it

cheerfully.

I Marry a man/woman you loveto talk to. As you get older, theirconversational skills will be asimportant as any other.

o Dont believe all you hear,

spend all you have or sleep allyou want.

a Never laugh at anyone'sdreams. People who dont havedreams don't have much.

o Love deeply and passionately.You might get hurt but it's theonly way to live life completely.

o In disagreements, fight fairly.No name-calling.

r Dont judge people by theirrelatives.

o Talk slowly but think quickly.

I SThen someone asks you aquesr ion you don' r want ro answer.smile and ask, "Whv do you want toknow?"

o Remember that great love andgreat achievements involve great risk.

o When you lose, don't lose thelesson.

o Remember the three R's; Respectfor se l f ; Respecr for others;Responsibiliry for all your actions.

o Dont let a little dispute injure agreat friendship.

o When you realize youve made amistake, take immediate steps tocorrect it.

o Smi le when p ick ing up rhe phone.The caller will hear it in your voice.

o Spend some time alone.

o Open your arms to change. burdont let go ofyour values.

o R e m e m b e r t h a t s i l e n c e i ssometimes the best answer.

o Share your knowledge. Ittawayto achieve immortaliry

o Be gentle with the earth.

I Never interrupt when you arebeing flattered.

a Once a yearJ go someplaceyou've never been before,

o l fyou make a lo t o fmoney. puri r ro use help ing others whi le youare l iv ing. That is weal rhs greatestsatisfaction.

a Remembe r that not getring whatyou want is sometimes a stroke of

30

luck.

Language of the New EconomySure, yoube got to walh the talk. In the New Economy Ghat's the digital econorny in case youre still

wondeing), you haue to first know uhat the talh is. Here are some defnitions from Hot Wired(uww.hotwired.com) to help you out.

rt

Ch urn : Customer disloydry.

Conuergence: The idea that thetwo most powerful devices of thelare 20th century (TV and PC) canbe merged into a single seamlessinformation system. (Oh, andthrow in the telephone, too.)

Data rnining: Extractingknowledge from information.The combinat ion of fas tcomputers, cheap storage, andbetter communication makes it

easier by the day to tease usefulinformation out of everythingfrom supermarket buyingpatterns to credit histories. Forclever marketers, that knowledgecan be worth as much as the stuftreal miners dig from the ground.

D is intermediatioz; Cuttingout the middleman, the shonestdistance between supply anddemand. Theret a lot ofscope for

that on the net.

Tiiple bonom line: Envi-ronmentalists have come upwith a set of earth-friendlybusiness pr inc ip les, o f tencalled the triple bottom line,which urges companies to be: ,

(1) socially responsible,

(2) environmentally sound,

(3) economically viable.

' There are more where theseterms came from. Go to the webaddress above and, well, you

. know all aborr surfngby nowright? I

Some tips for reducing stress:

o Look out the window. In-dividuals who work near a win-dow have 23 percent fewer stress-,.1"..,.t ̂,^hl.-.

o Exercise outside. Out-door settings generate positive

effects that indoor environ-ments dont. Thatt why peoplewith indoor exercise equipmentrarely use them.

o Work out slowly. More

is not better; slower is better.

ti(4rat all these amounr tois a prescription for moving upthe ladder more quickly: Geta corner office with a window,and a job with time to playgolf. But dont rake the gametoo seriously. I

Hot Ways to Ghill Out-Q peaking ofthe New Economy,a ) : i ,\-- ' l l t gets Dlameo IOf an Increase

in stress - and that includes yours,in case you've started to feel fatiguefrom the ringing tone of yourmobile phone or the "Youve GotMail" icon on your desktop.

New research suggests that it's

not those, nor having a Type A per-sonaliry that causes ihe most sressthese days. The main source: beingin a middle management position,where you are most likely to sufferthe emotional strain of trying to

appease a boss, a staff, and personalambitions.

3 1

ffiAIMtam@dataserve.aim.edu.ph

De Ocampo Installedas AIM PresidentRoberto F. de Ocampo was installed as President of theAsian Institute of Management in formal ceremonies atthe AIM Conference Center's SGV Hall last March 2.These featured excerpts from De Ocampot speech showthe range of issues that AIM faces, and the competenciesit brings to the challenge.

The Winds of Chanee"Looking back, we can

declare proudly...AIM managed

the winds ofchange and re-

mained at the forefront ofmanagement education in fuiaHow did we do it? By practicing

what we preached: we stuck to

our core comperence of manage-

ment education and adapted

quickly to market changes."

/\ Lrlsls or bovernanceft . ,.gron i, i*isis again

- a crisis rhat is nor jusr finan-

cial in nature, but goes beyond

economic boundaries: a crisis of

Governance. \X./har use a remark-

able GNP growth amid a tidal

wave of poverry? \X/hat use high

per capita incomes when wealth

is in the hands of only a few?'What

use rhe crearion of wealth'

without expansion of opportu-niry? What use globalization,

liberalization, and structuralreforms when safery nets areinadequate to shield economiesand peoples from lower incomesor unemployment? 'What usesound monetary and fiscal mea-sures if public money is wasted bymismanagement and corruption?"

The Essence of AIM"For growth and development

to be real and effective, Asia needsstrong political and economicleaders who will lead our societieswith justice, honor, and withselfless dedication. And strongleadership is basically managementtraining and capacity building, thevery essence of AIMt existence."

Srronser and SmarterThrough Skills

"AIM s response ro every crisishas been to make Asian business

32

stronger and smarter to confrontand surmount the crisis throughmassive human resource educa-tion and skills raining. Someproblems need solutions and notjust money to be thrown atthem."

The New Centurv"As we begin this new cen-

tury we need to address directlythe accelerating pace ofchange rnmanagement practices, and inparticular the profound impact ofinternet-related technology,which has posed some funda-mental questions about the bestmethods for the delivery ofgraduate management education.Another challenge for AIM in thenew era is what Peter Druckercalls the 'challenge of changeleadership.' This requires that we'accept the inevitabiliry ofchange, see it as opportuniry andembrace it."'

A Knowledse Center of Asia"Through

our trained man-agers, we will respond directly toAsiat needs - to help make thepoor un-poor, ro encoufagesecondary cities to grow as hubsofdevelopment anew, to createprofitable enterprises with a senseof social responsibiliry \7e willmake AIM a leading KnowledgeCenter ofAsia where there is aconvergence of people withdiverse cultures and beliefs, butwith a common aspiration: tosucceed and thrive in a competi-tive world that mandates us tomove management and leader-ship to higher levels ofexcel-lence."

AIM-World Bank Instituteto Deliver Development Training

In the World Bank 1999 meeting, President James D.'Wolfenson stresses the need for capaciry building as integral toits development strategy.

'Io answer this need, Vinod Thomas,

Vice President of the World Bank Institute, and Roberto F. DeOcampo, AIM President, signed a memorandum of understand-ing on February 26 to collaborate in developing and deliveringcore courses, distance learning courses, and associated activities.

"This strengthens AIMI position of leadership in develop-ment management education, especia.lly in developing governancefor an emerging knowledge economy," says De Ocampo.

33

AIM Named One of Asia's Top Schools

AIM emerged among the rop three and, in one caregoryNo. I among Asia's advanced management schools surveyed byAsiaweek, the Hong Kong-based news magazine.

In its first-ever ranking of Asia's schools offering master ofbusiness administration (MBA) courses, Asiaweek rated AIM,along with Indian Institute of Management at Ahmedabad,Singapore's NUS, and the Melbourne Business School, as oneofthe few schools with grades in the four-point range.

AIM was ranked No. I in the executive education category,for havine "the

best executive MBA."

Purba Rao

Gree4lngAsian Managers

Dr Rao s passion for tuo disciplines helps to ensurethat./uture MBM graduates v,ill be as obsessed with the envirutnmental

t top line rs rhey are v'ith the./inancial bottom line.:l -I

here are two recurring four-syl lable wordsthroughout half an hour of Profl Purba Rao's time,

and they are "environmental" and "quantitative."

They sum up her current preoccupations, including herlatest book on management and her teaching career at theInstitute,-both of which reveal her natural (if not supcr-natural) abiliry to communicate the language of quantita-

34

tive management in everyday speak.

fowards A Green Mi/lennium is her most cur-rent contriburion to management in the writtenword. lt focuses on environmenr nanagementsystems in South East Asia, as explored in twoextensive suryeys conducted in the area.

ln the Philippines, for instance, there is a pro-gram recentlv formed to gencrate ideas on howt o m ln lm lze was te , c l I -

cumvent pol lu t ion, andincrease product iv i ty .Banks have a lso star teds c r u t i n i z i n g p o t e n t i a lloaners' records under thee n y i r o n m e n t a l m i c r o -s c o p e . ' f h e l n d o n e s i a ngovernmcnt has a new rat-ing svstem for hctory pol-lution. Malaysia's majorjo int ventures are nowconsistently in accordancewirh the Vision 2020 poli-cies. Thailands NGO sec-tor cooperates with the

Bovernment in the orga-nization ofvarious sanita-tion projects.

additional elective called "Sustainable Enter-prise." As part of "greening the Asian manag-ers," she also plans to trv ro include the Envi-ronmental Impact Asscssment in somc of rherequired management reports of srudcnrs. Asia'sfuturc decision-makers who come to AIM, shehopes, 'would thus be well-equipped to imple-menr greening in i r i r r ive ' in rhei r f r r rure respec-

tive companies."

S h e h o p e s t h eMBM 2000 graduareswill share her optimism:"Our wor ld is real ly a

To make your world

a great place, you always

have to look beyond

yourself . . . think of the

greenery around you. . .

do something

constructive to keep

them sus ta inab le . . .

around you, and make

rise above i t .

wonderful place, if youmake and keep it thatway. To make your

world a great place, voualways have to look be-yond vourself. . . think oft h e g r e e n e r v a r o u n d

) . o u . . . d o s o m e t h i n gc o n s t r u c t i v e t o k e e pt h e m s u s t a i n a b l e . . .think of materialism allaround you, and makean effort to rise aboveI t .

She confesses tohaving considered thematerialist wav of life inher vouth. Although shewas raised in a family ofexcellent teachers, sheinitiallv entertained the

The book discovers think of mater ial ism

that companies have be- all

gun work ing towardgrowing "greener pas-tures" in place ofconcen-t r a t i n g o n e c o n o m i cachievements. Their newmarket-dr iven pol ic ies

an effort to

prove there's no need for governmenrs ro moti-vatc companies to become enyironmentallv con-sc ious. Another d iscoverv is the success ofISO 14001-certified companies ar becoming morecompetitive while remaining committed to envi-ronmental sustainability.

Dr. Rao is as enthusiastic abour her book asshe is with regard to plans for rhe resr ofthe schoolyear. These include integrating environmentaleducation in the MBM curriculum rhrough an

thought of banking. However, after acquiringa full scholarship in a management doctoral pro-gram of the Indian Institute of Management(Calcuttai MIT), she lound herself engaged invar ious posi t ions, among them reaching at

Jawaharlal Nehru Universiw. For some time, sheuorked for BHEL. a power generar ion equip-ment manufacturer, then for the Ministrv ofRailways in India where, as she proudly recalls,she contribdted to high-tech railway operariontechnlques.

35

30

- Kristine Domingo

Then, in the midst of professional break-

throughs, she found herself gving the knot.

Her tried-and-tested quantitative brill iancehad to be utilized howevel bevond the purl stitch

counts of doily knitting. When her husband came

to the Philippines for Asian Development Bank

work, she found her way into the classroom again,

this time as a visiting pro-

fessor in the College ofSci-e n c e a n d t h e G r a d u a t e

School of Business andE c o n o m i c s a t D L S U .Then, it was at AIM thather sray turned from flukeincident to fate.

"Being the traditionalAsian wife, I followed my

husband. He was initiallythe reason I came here, burI've stayed in AIM sincebecause I love it here. Thisis the best job I've had. I en-jov ir because the studentsare absolutely brllliant. Inthe previous schools I've

been, I would deliver a lec-ture and see some studentswere yawning. Here, thestudents have to participateso it! the best classroom aprofessor could ever have.I learned ro be a professorin a multicultural setting. I

also like it here because my

Her book cover, meanwhile, displays a vibrant

leaf that marchet the u i r id ian of her m i r ror-s t rewn

dress. It's easy to regret having to spend the last

minutes with what has been yur greatest tccom'

plishment ("It's reaching," she replies), particularly

when she reveals an appreciation oflndian classi-

cal music and starts to relate her trips ro New

Zealand and China.

Neverrheless, the timeis extended witb what do

Jou try to impaft to lour stu-denxlI try to impart to my

students the knowledge

that numbers can real ly

he lp in dec is ion-mak ing .

I also try to remove

from their minds the

fear of numbers.

Numbers can be very

interesting. They just

have to be presented in

terms of their appl icat ion.

"I trv to impart to my

srudents the knowledge thatnumbers can reallv help in

decision-making. I also try

to remove from their minds

the fear of numbe rs .Numbers can be veryinreresting. They just haveto be presented in terms ofthei r appl icat ion. The

devotion to pure numbers

can be a very lonely voca-

t ion. Share i t rv i th theworld, especiallv those whocould real ly use i t forproductive ends. Numbersare very usefirl tools. Youhave to figure its role in sales

or advertising. Only thenwould the students see thepoinr. You have to showrhem how the numbers can

be used in making not just appropriate but rational

and tenable decisions. This is what I've tried to do,

and I think I've become successful. I can make

people see numbers for what they reallv are -

simple .

Thati what makes you a uerl eJfectiue professor?

"Sometimes, I hope."

best friends are also my colleagues. I feel totally at

home here, perhaps even more so than I would

back in India. I see mvself retiring here."

True enough, no sooner does she mention her

friends than one ofthem gives her a call. "Good!"

she exclaims. "That's very nice. Thank goodness

thats finally happening." One can't help but as-

sume this is the kind of positive energy that ema-

nates from her, and has made her a favored pro-

lessor in the Institute.

a

Mel Salazar

Change and Continuiry

Management is an idea, wrapped in continuity, delivered amid change and,if you've been lucky, taught by one of AIM's pillars.

tevie Smith is the Emily Dicl<inson of 1930s subur-ban London. She is also known for her quirky minorpoetry. In an imaginary exchange titled "God and the

Devil," she writes, "But why should bowels yearn and cheeksgrow pale?/ \7e're here to point a moral and adorn a tale."

Mel Salazar names her alone with a number of canonicalfigures in poetry from Y."t, ".rJ Arrden to Lowell and Siwellwho have been taking up a considerable volume of shelf spaceboth at home and at work. \i7hat prompts him to include hermay be attributed to a quirkiness of his own, for he gives arather standard definition of poetry: "The idea is like a seedwrapped in emotion. Poetry, a form of communication, is anabiliry to transfer the idea."

37

38

It's not difficult to form an assumption as to

why he has chosen, in the course ofrhree decades,

to specialize in personnel management, buslness

ethics, human behavior in organizations, behav-

ior modification, labor relations, the management

of change, business polio., strategv formularion

and, currentll', general management- all ofwhich

could be rendered as "sofi'skills. It does not point

toward a disinterest in statistics and financial

management (both of the quantitative orientation)'

but to his preoccupationwith the "transfer of theidea."

Indeed, communica-tion can easily be inter-

preted as the thread of his

career in consulting, teach-

ing, and managing. The

t h e m a t i c c h a l l e n g e , h e

sighs, is in evolving with

the unpredicrable develop-ments in communication,and thus, management .And his CV shows he /al

seen a great deal of conti-n u i t y a n d c h a n g e t h a twould account for the sigh- he's spent mote than

twenty years with Func-

tional Services Inc., almost

thirty years with Caltex in

commerce were simple.

Management was a

simple business

when industry and

Back then there were

clear-cut industries,

demands, customers,

nat ional boundaries.. .

He's seen hou'it changed the managers iob and'

rvith it, the old way of training managers. "'fhe

managing job has changed completeh'. For instancc,

in rhe beginning, AIM's aim was to make middle

managers out ofstudents. If his field rvas advertis-

ing, we rrained him, and he became advertising

manager. Vith the onset of l 'I, middle managers

as we knew them disappeared. Then in another in-

stance, a certain rranslator's job was to translate the

superiors' orders to lorver-ranking employees He's

gone because the translationjob is finished. Ant'one can

simplv rype iuto the com-

puter, eliminating the need

for someo ne to translatc.The job disappeared alongwith the differcnt clear-cutsegments in the market. It 's

so difficult nowadals to pre-

dict where one student is

going."

Though he prefers not

ro drvell on it, he himselfhas

been a distinguished part of

the management practice, at

least here in Asia, from the

baby boomer generation to

the wired. As a lounding fa-

ther of AIM, lor instance,he can easily recount the

Institute's fi rst steps.

Indonesia, and the past thirtv years with the Asian

Institute of Management.

"Management used to be a relatively simple

business because industrv and commerce were also

verv simple. There were very clear-cut industries,

demands of the market. Customers could easily

be classified and the market, understood. There

were very strong national bo.undaries. The prod-

ucts were relatively simple. The n customers became

much more sophisticated. lndustrv boundaries and

national boundaries began to blur. Product lines

began to grow. Technological discoveries began

breaking through almost all the boundaries you

could think of."

"When we started, it was very narrow, very Pa-rochial. It was simply an interest in trving to de-

velop a good MBM program. Gradually, oPportu-

nities came up.'We started teaching segments of

the MBM as executive programs. MBM gave binh

to Executive Education courses like MDP and BMP

Then we finally branched out into MM that slighdv

widened our market to include those with an ad-

vanced level of MBM experience, and corporations

we partnered who wanted to develop their manag-

ers. It was the logical thing to include seniors.

Whenever thq ls were program oPporrunl l iqr . we

eventually devel6ped the equipment for such."

From there, Prof. Salazar leans back, his handsforn.ring a cathedral arc in contemplating the rela-tionship between change and continuitv. First, hedebunks the theory that the "M" in AIM has beenswung to a more "functional" direction, rhat irs gen-eralist nature has become wallpape r. 1'he MBM, forexample. i , ' ' r i l l mo' r ly genera l i r r .

He himself belongs more to the "continuity"

class, having stayed since he acquired an MBA inHarvard, 1969. His man-ner of teaching has pro-g r e s s e d a l o n g w i t h t h eterms. For the f reshHarvard grad, he mostlyzeroed in on the case issues,underlined order. "The ex-perience instructed me notonlv on the MBA program,but also on how to be a fac-ulry member of a graduatebusiness program. One ofthe courses I started, theequivalent of my thesis ,was manageme nt ofchange. This generated ourown innovat ions. Nowthere's very little Harvardcontent." His teaching ma-terial acquired texture asstudents became more par-ticipative, and his own ac-

One good thing

about the cr is is

is that it brought

to the surface

many of the region's

faults, so the world

has become stricter in

Asian deal ings.

associations. $7here regret or indifference may of-ten take root in long-term situations, he sighs onlyas grandfathers can - with conrentment.

"What I'm glad about is that my relarionshipshave always been very long. I'm proud of all thosevears. This is perhaps because when you get intosomething, you learn, you contribute, and the morevou do so, the more you appreciate your work. Youlearn lrom your mistakes, so you stay."

This contentment hasnot given in to complacency,however, particularlv becauseofthe Asian economic crisis.More than anvthing, it hasshown him just how muchcont inu i ry is in t r ins ica l lyI inked wi th change, and i thas helped him accept hisown mortaliry in terms of hiscareer. One good thing aboutthe crisis, he notes, is that itbrought to the surlace manyof the region's faults, so tharthe world has become stricterin Asian dealings. He casu-ally mentions he will cer-tainly not be around to seethe complete transformationof Asia into "a modern worldwith modern values." As forAIM's contriburion to this

complishments (e.g. from personnel managcr to future transformarion, he advises it should reallvpresident of DRB Marketing Corporation) piled up. ask itself *'here ir wanrs to make a difference and

what that difference would consist of.Otherwise, his basic requirement of his stude nts

has stayed essentially the same: the studli and thus,the understanding of theorv. "The objective is forthe students to eventually apply the theorv. For now,understanding is cruc ia l . . . par t icu lar ly when i rcomes to strategy formulation, since this involves avery detailed set of activities. They really have tostudy ir, let it revolve in the mind, find examples tobe able to understand it."

"The real world" to Salazar has been an endur-ing relationship between theorv and application, in ltere to point a mora/ and adorn a tale."

- Kristine Domingo

'I'here isnt a trace ofregret in accepting his even-

tual turnover of responsibilities, though he admitshe stil l derives pleasure from the challenge of read-ing new material, gathering new ideas from stu-dents. "There's stil l the challenge of communica-tion - translating something from your mind tothe minds ofothers, hopefullv as completelv as youcan," he says, his hands parted. Somchow, with thesinceriry of the deep lines of his palms exposed, itseems he has'just uttered a verse instead - " We're

the same way he has sustained his lasting businessl

39

AIM's New DeanTalks About the Five AIMs

'The majority of alumni lotow ofAIM as one oJ the region sleading business schools. That'sjust o4e of its identities, andbefore'bis term is ove4 the newDean wants to see the fourth or

fifth AIM in place.

ewly elected Dean Eduardo A. Morat6,

Jr. is a self-described AIM "lifer,"having

graduated from the Institute in 1972 (MBM,High Distinction), being a member of the faculryfor much of the period since then, and planning tolead the Institute to even greater heights.

There is one point of significant difference be-

tween his perspective and those ofmany other lifers',

or those of alumni who have become familiar with

whatAIM stands for The new Deant version ofAIM

is not the AIM that most people know. The latter isjust the "first AIM," as he calls it. It's time to becomefamiliar .with the four or five (or more) AIMs thatare as important or will become so, if Pro[ Morat6's

plans are carried out in his two-year term.

Morat6 is redefining the identiry (or identities)of the Institute using the management discipline thathe most recently championed: entrepreneurship. He

has the entrepreneurt love for the product/service,nose for market opportunities, and boundless opti-

mism regarding the possibilities. His multi-faceted

background also helps (or is responsible for crystal-lizing) his vision of several AIMs. He has headed vari-ous government, non-government, international, and

business organizations in the last three decades. From

June t he is set to enter what he calls 'the highlight

of my life," serving as Dean ofAIM. The Asian Man-

ager ralked to Morat6 just a few days before that,about his grand vision for the Instirure.

4tl

TAM: Congratulations on being elected Dean.Could you describe your plans for the Institute?

Moratd: In mv platform I srressed academic excel-lence and building the inrellectual capiral of AIM. Thisposition is brought about by the lact that over the last

30 years or so, we have really changed the Institute'scharacter AIM started as a business school. That was(and is) the first AIM. Then we cre-ated the Center for DevelopmentManagement (CDM) and offeredthe course Master in DevelopmentManagement (MDM) in 1989. Ispearheaded that under former DeanGasry Ortigas. That became the sec-ond AIM.

In the mid-1990s we started rc-searching entrepreneu rsh ip. locusingon small- and- medium scale enrer-prises. \We created a draft plan forwhat is now the Asian Center for En-trepreneurship (ACE), offering aMaster in Entrepeneurship (ME)

progrrm. I asked rhe faculry for fouryears of research. We developed ourown cases and methods. It's a com-pletely new approach. Last vear therewas excess demand; we had to openthree sections. This year the demandis so overwhelming we might openseven sections. ACE is the third AIM.

TAM: Yet most people stil lequate AIM with "business school."will this change?

We have

homegrown courses

developed here

in A lM, no t

copied from any

other school. They

were researched,

developed,

des igned,

and offered right

here in Asia, based

on a very close

relat ionship with

the market.

These are homegrown courses, developed here atAIM,not copied from any other school. They were re-searched here in Asia, developed here, designed here,and offered here - based on a very close relationshipwith the market. So you can see that these are the onesrobustly moving up.

In fact. with the second AIM we are now rnro

Vietnam and China. \We are goingto Bhutan in June. CDM i , ' go ingto be all over the place. And rheyare interested in the Master in En-t r e p r e n e u r s h i p i n S i n g a p o r e .Malaysiat interesred, and so are In-donesia, Thailand, and India.

TAM: Let's revisit the firstAIM. \i,(/hat are the plans for thebusiness school?

My idea is to differentiare rheMaster in Business Management(MBM) from all the other MBAprograms. The MBM has to bestate-of-the-art in rhe functionalareas where our graduates find thegreatest emplovment. Some yearsback we.,rarred offering a major inFinance. We increased the numberof electives from 5 to 20. When I

- . made a s tudy of where MBMgraduates landed after graduatton,I learned that 46 percent ended upin financial insritutions and 14 per-cent in finance-related jobs. That

Morat6: The last two AIMs are the ones that arenow crirically irnportant. The first AIM (the businessschool) is the one that faces stiff competition fromschools around the region and American and Europeanschools that are opening branches in Asia. However,nobody can rouch the markets served bv CDM andACE because we are ahead in research, design, andcourse development and oflerings. MEt innovative de-s ign. nobody real ly has rhar for ex is t ing enrrepreneu15.

was m1' justification for proposing a major in Finance.Thatt what the market demanded. You must be sen-sitive and responsive to the market. We might addmajors in Marketing, Operations, and OrganizationDevelopment. The MBM will stil l be a general man-agement courser but it will be integrated with deeperfunctional expertise and a greater amount of actionlearning. And we have to be competitive price- andtime-wise. There are a lot of full-time MBA programsrhat run for just one year, and there are a lor ofpart-time programs.

4 l

TAM: How about the Master in Management ing with empowered students, teaching out of the box.

(MM) program? That's what I call the fourth AIM. And there's a

fifth one: the use oftechnology for management cduca-

Morat6: The MM will be olfered as a course on tion. ti/e've created a Nerv Products Development team,

leadership. The strongest modules should be on lead- which will be the R&D unit of AlM. Part of its brief is

ership, corporare governance, goal setting, strategizing, to develop new products by discovering different ways

organizational building, and cross-functional manage- to tap technology for cvber learning. I hope that bv the

ment J'he MM is the grooming ground for an elevated end of the second 1'ear' AIM will be in a position to be

leadership position. It is also for man-

ager . look ing lor a change in career .looking for se lf-de velopment and self-

renewal. They want to be able to ex-

press themselves in a fuller way. I

think the MM will be an exciting pro-

gram, people will clearly see that this

is not an ordinary MBA program. It's

a selFmastery process. It provides the

CEO's perspective.

T)4M:Yhat do you envision for

the Executive Education programs?

Corporations are moving toward

customized cont inu ing educat ton

programs. (lur Executive Educatton

courses and Executive MBA (EMBA)

programs must redefine their roles

and become partners in organizatton

building. That's one trend. The sec-

ond trend is toward shorter courses

and more specific skills. We will offe r

more one-, two-, three-day seminarson special ropics. We will feature AIM

gurus and tap their expertise in spe-

cific fields.

Developin g

new cases is

nice, but that 's

just for

maintenance.

l f you want

something to

bring you to

great heights,

you have to

have a grand

plan for research.

And you must

be innovative.

strong in this area.

TAM: Are there even more

AIMs after those five?

Moratd: AIM can explore mar-

kers with high potential, such as

banking and finance, micro-entre-

preneurship, public governance, en-

vironmental management, technol-

ogY management, and others, As

long as we re main within the field

of managcment, these new initiatives

can be exhilarating.

TAM: lt's an ambitious under-

taking, bringing the five or more

AIMs to the forefront in two short

years.

Moratd: I think it can be done.I was able to launch some initiatives

by my lonesome self. Whv can't a

whole institute launch its five initra-

tives togerher? So I think it can be

done. It can launch these five initra-

tives together. I can see how cyber

learning can be tried out in different institutions. We

TAM: Movingon to teaching methods: the In- can also try out environmental management Programsstitute has been largely built on the case method. But together with other schools in Asia. In other words, we

it wont be known for just that anymore? can rry to make AIM the center for all these things.

Thatt the exciting part for me.

Moratd: AIM should experiment with new learn-

ing technologies that engage srudents more intensely. TAM: Yoive also said that you ll take an active\We should innovate and go beyond AIM s traditional lead in research' Could you elaborate?

caseroom walls. My dream is for Asian management

schools ro send their reachers ro master new methods Morat<i: All these major initiatives require a drive

oflearning: tacric learning, participative learning, learn- for academic excellence and intellectual capital. Research

42

will focus on its impact on these - not so much theprofit bottom line, but the academic upper line. I lookat the academic top line. The way Ive operated inCDM and ACE, if I focus on the academic top line,the bottom line follows.

TtL-ful: How did you carry out that top line fo-cus?

Morat6: With CDM and ACE, I did years of re-search before I launched these academic finds. Usu-ally, my timetable is three years. I do intensive R&D- market research, academic research, program de-sign, a lot of creative thinking, brainstorming. I putmy heart and soul and life into it, and then wham!

It's more than just developing new cases. That'snice, but thatt just for maintenance. Ifyou want some-thing to bring you to great heights, you have to have agrand plan for research. And you must be innovative.From the stan I said I would not copy ideas from any-body. Ifyou do, thatt being responsive to the courseofscience and academics. We'd know nothins aboutthe market.

For ACE, I did cases on public entrepreneurs,talked to them, did workshops for them, and foundout what they needed. I did corporate planning forind4stry associations, for chambers of commerce. Ireally immersed myself in entrepreneurship at differ-ent levels.

For CDM, I did not go to the development man-agement studies in London or even in Asia. I talked toheads of civil society and gov€rnment bureaucrats. Iimmersed myselfin the boondocks ofSouth Cotobatoand Cordillera in the Philippines to find our what theNGOs were doing, what the church groups were do-ing, and what development is from their point ofview.It's a matter of geting involved with the whole mar-ket milieu, imbibing all of it, finding out what peopleneed, and then designing a whole program for them.

TAM: Does the bottom line follow the top linebecause the academic top line always has to be re-sponsiY€ to the market?

Alumni: "Participate in the Life of AIM"

The new Dean sees a definite place foralumni in helping to raise the academic ex-cellence of the Institute, thereby enrichingtheir own pursuit ofexcellence.

"You will find a new, excitingAlM. You'llwant to come back for courses thar are newand relevant. AIM will have much to offeralumni to help them become whole-brainedleaders. lVe will build new experiences foryou, and we hope you'll come.

"I invite you to continue your lifelonglearning in the Institute. You may also sit inthe programs we are developing and conduct-ing. MBM graduares, for example, may wantto sit in MBM classes, to join as studentsand help to audit these classes.

"You will discover that, with our newthrusts, AIM has much to offer you."

Moratrj: And in a big way. It must be in a big way.\7e're looking for what are the major markets that peoplehave been missing. CDM was one of that. Nobody waslooking into that. There were development studies, butno program for development management. Asiat knownfor entrepreneurship; it was right there under our nosesand nobody else saw it. We have to be responsive to themarket in a big bang sort of way. It cannot be a smallnppr€.

TAM: So no to niche marketing?

Moratd: Niching is for those who want to hide inthe cracks, who dont want to be noriced. I want ro benoticed. AIM has to be noticed. t

li

tI

43

/tut2000:The New Arlan Managcru

he four winners of this yeart niple-A

Awards collectively personi$' the new t'?e of Asian manager that will lead the region's

next resurgence. There are only nine more to go before the list of Alumni Achievement

awardees reach a hundred. The magic number is not needed for symbolism, however.

Year 2000's AJist already symbolizes a momentous step in the evolution of the fuian

manager: the socially aware servantleader.

Federation of AIM Alumni Associarions(FAIM) founder Jose Ma. J. Fernandez (MBM

1973) set the tone by saying that the Tiiple-Aawards is a firrther incentive for the alumni andInstitute to be "conscious of their socially rel-evant role in the uplift of the many in Asia whoremain marginalized and who have yet to savorthe sweet taste ofvictory in the larger war against

Penury."

The Tiiple-A has always stood for the goalof excellence tl-rat each member of the alumniaspires for. Since 1978, FAIM has honoredgraduates who have exhibited outstanding work.Filipino artist Franco Patriarca first conceived ofthe Tliple A concept, where the first letter of theEnglish alphabet stands for Asian, A.lpha, as wellx the hnoun constanrin math, the highest marka student can attain.

The three As further denote "a visual inter-play that echoes the coming together into theunion; graphically expressing the harmoniouscharacteristic of that bond. The fusion of theletters (or the figures) evolves into a singular, yetindividually autonomous new form - a delta(literally'the door") which means the mouth ofa river or a point ofentry a beginning."

This yeart fab four include Datuk Sarip binHamid (MBM 1979), DlP.N. Singh (MM

1975), Dr. Wenent Pan (TMP 1988), and ErnestoGarilao (MM 1982). \i7hat did it take to best thebest and the brightest ofAsia? Usually, it takes thehallmark of a career, a substantive contribution tothe growth of management. Increasingly, candidateshave won for contributing to the improvement ofindigenous entrepreneurship, advocating empower-ment and sustainable development, excelling in per-sonal endeavors, and aiding in the uplift of the lessprivileged membersof society. Together, 2000t win-ners complete this trend. Sarip has the establishmentofa semiconductor plant to his name, one that pavedthe way for employment by the thousand, and for-eign exchange increase in Malaysia. Dr. Singh hashis articles and books on management, his unparal-leled HRD accomplishments. There's Dr. Pan's re-markable transformations and innovations inTaiwant most prominent peroleum company.Then, thire are ofcourse Prof. Garilaot significantreforms in the Philippine goyernment through hisinroduction ofhighly effective agrarian policies, his

success at generating funds for the poor sector.

In hearing first-hand how they managedto accomplish as much as they have, and howAIM made a difference in their lives, The AsianManager files Sarip revisiting his hometown, Singhdiscussing h is ' mismanagement ser ies, Panresponding to the threats of competition, andGarilao expounding on government work ryithexperientij depth. €+

. i

!

5.

44

Datuk Sarip

An A-student of Life

Datuk Sarip applied the lessons from others' success in hisov)n career. Now we're ready to apply lessons from him.

atuk Sarip has been called one of the region's

most successful entrepreneurs. Yet he didnt

think hed be startins his own business, Iet

alone become a celebrated entrepreneur, when he

started working. Indeed, his profile looked like he was

far from becoming that. He was a teacher, then a pro-

fessional manager in a bank, and looked set to sPend

his enrire career in a stable senior management Posi-tion until retirement. Fate had a different plan for

Datuk Sarip. Or perhaps he realized he had another

plan, and gradually, painstakingly built his dream. His

story is not one of blazing, quick success, or ofhigh-

profile wheeling and dealing.

4)

Rather, itt a carefully measured path, one step as

well-studied and well-taken as the next one. It's no

surprise, therefore, that Datuk Sarip anchors his prin-

ciples of entrepreneurial management on sound per-

sonal values, which are a product of both his poor

background and his keen study ofwhat makes entre-

preneurs succeed. The .*ian Manager talked to him

about these principles, in the context ofhis inspiring

career.

How have your goals changed now that you have

maintained a level of success for some time?

The main goal is stabiliryand to have ample time to doimportant things. A-fter a while,just making money and more

money looses its significance.That's why, for those who want

to go into business, I always ad-vice them, "You must stan be-fore the age of 35." If you do it

earlier, you may not be mature

enough. Ifyou do it much later,you won't have time to reap thefruits of your labor. Also, whenyou reach the top, you cant af-ford to make too many mistakes.If you make the wrong invest-ment, you dont have much timeto recover rt.

Your career story has somany twiits and turns. You'vebeen e teacher, a banker, an autoparts maker, and now a semi-

the best places to gain exposure. I was hired in the

loans department, and learned a lot about different

businesses.

And what were the most important things you

leamed?

I studied our clients to understand why they suc-

ceeded in business, or why they failed. I learned that

the most important thing is having the right attitude- not being sman, but being determined. A lot of

the businesspeople I studied became successful not

because of their mental capacity, but because of their

attitude and determination.

I learned

that the most

important thing

in business is

having the right

attitude -

not being smart,

but being

determined.

Factor number two is goodrelationships. Success is not somuch based on one person's abili-

ties, but on how well he manageshis relationships. You need differ-

ent people, wi th d i f ferentstrengths, to succeed.

Number three, I think the

most important thing in businessis honesty. Some business peoplework hard at manipulating thestock market, or similar dishon-

est activities. The moment you

cheat, people will not believe you

or your business anymore.

But despite learning a lotfrom being a banker, you left

banking. Why?

To gain a broader perspective, I studied for an

MBM degree at AIM. 'fi4ren I came back, the bank

wanted to post me overseas. They would post me in

London as an officer. with a view to promoting me

when I got back. But the style ofwork needed did not

suit me - the constant socializing, and wining and

dining clients that were needed for the job were not

for me. I also rea.lized that I wanted to make manufac-

turing as the area of my interest. Plus, my masters

had given me the perspective of always thinking

like the CEO of a company. $Thether we were

conductor rnaker. Whatt the common thread?

'You have to understand my background. I was

born to a poor family, the eldest often children. I got

a good result in high school, but I was too poor to go

to the university. So I became a teacher in our village,

to make both ends meet. Life was difiicult, but there

can be surprises. I was offered a scholarship and stud-

ied for an economics degree. I was teaching for awhile,

but decided that this was not the career for me.

So I went into banking. To me, banking is one of

t

\

t,

L46

!

studying finance, or marketing, or organizations, wealways had to integrate these functions and think andsolve problems like a CEO. I also became much moreanalytical because ofwhat I learned in managementschool. I was always thinking about what are the im-portant issues in a business.

So, because ofthis change in perspective, I joinedan auto parts maker as a general manager. I had torepay the bank for my studenr loans. Back then, Itold my wife that my career was neyer easy. But itdidnt matter, as there was a new challenge.

And what did you learn from tackling thatchallenge?

A new perspective of business. For six years Iworked at the new company. First as general man-ager, then as a director. I gained equity from being adirector. As a general manager I saw the companyfrom an operating perspective. As a director I saw theimportance ofreturn on capital, and the function ofthe board.

I developed a simple principle for how to valuemoney. If you earn 100, and spend 120, you are aspendthrift. Ifyou earn 100, spend 20, and save 80,you are stingy. But if you earn 100, spend 20, andsave 80, then you will be okay. That was demonstratedto me clearly during the recession ofthe mid-1980s.Buiiness was slow, and companies were collapsing allaround. With the money I saved, I could survive whilebuilding the foundation for the future. So I workedhard to develop a network of contacrs.

Which was when rhe next opponunity came: tobuild a factory.

Someone approached me to offer a piece ofland.But I only had savings worth a fraction ofthe askingprice. $(i ith the help of friends I bought the land. Vestarted with three people. Our main business was as-sembling safery belts for selling to rhe local car pro-ducer, Proton.

That was in 1994. Now we have more than ahundred workers. Our share price has gone up bymore than ten times.

The auto industry has slowed down in the last year.How do you cope with that?

In business you always have to be sensitive to theenvironment. Vith the downturn in the industry andsome uncertainry in our main clients, we decided wewere at a disadvantage. \W'e anallzed our company'sstrengths and weaknesses and looked for alternatives.So we invested the money in semiconductors.

But that wasnt your core business. And most man-agem€nt experts will advise you to focus on your corebusiness.

It's our core business now. Ve studied the businesscarefully, and talked to experts. We hired good people,and combined with our management experience we hada chance.

It doesn't matter that you dont know anything abouta business. You learn about it. You need to have a goodbusiness, hire good people, have the right attitude, behonest and associate with honest people. That's it.

'Vhat are the best things you learned at AIM?

At AIM I learned to be more analytical, to commu-nicate better. I was not one ofthe ton students in class.but I.did study each case carefully. I always pur myselfin the shoes ofthe CEO in the case and rried my best tothink like one. I also learned ar AIM that you must pro-gram cash flow very well and take care of money verycarefully. Even with my children I teach these things. Ihave a child who's studying in an Australian universicy.For each dollar that she asks fiom me, she has to show arecelPt.

Now that you have more time, in which actiyitiesdo you spend more of it?

I like to do social work. Having been blessed withso much, now is the time to help people. rVhat good isit for a country to have a high GNP and to still havemany poor people? I really think entrepreneurs shouldcontribute more to society than just providing.jobs andproducts or s€rvices. The world does not belong to busi-ness alone.-Jet Magsayay

4,/

Dr. Pashu Pati Nath Singh

A Blend of "Mismanagement"

and Leadership

Tb Dr. Pashu Pati Nath Singh's prolifig mind, there are not enough booksto terite, and not enough development managers.

eadership comes naturally to Dr. Pashu Pati Nath Singh.Upon earning a degree in Petroleum Engineering, he gradu-ated (MM with Distinction, in 1975) from the Asian Insti-

tute of Management, after which he wasted no time in applyingthis degree in various international ffaining and consultancy ser-vices. In 1998, his expertise throughout a four-month assignmenron HRD Policy at Amsterdamt'World Bank Organization earnedhim numerous awards. Accepting plaques of recognition seems tohave come as naturally to him as assuming leadership. He chairedthe Federation of Alumni fusociation, became president of theForum ofAsian Managers, the Bombay Management Association,and the Indian Sociery for taining Development.

48

Right after receiving his Tiiple A award, he flew

back to oversee Grid Consultants Pvt. Ltd., thefamily company he chairs. But not before launch-

ing three new boola at AIM.

Pash, as his fellow AIM grads call him, hasparticularly exhibited a passion for writing. He has

over 500 articles to his name, spread out in variousnewspapers and magazines, and a dozen books,including People Plus Management, Deueloping En-trepreneurship for konomic Growth, Success Unlim-ited, end Profle of an Asian Manager. His writinghas won him the Tarneja Award (1995), Best Pa-

perAward at ISTD (1991), RukminiThread Com-municator of the Year Award (1984), and IMM

Cinni-Fan Award (1980).

He launched no less than three books at theInstitute in March, as they are dedicated to AIMprofessors who each had a hand in his desire tobegin his "mismanagement series" (there are fourso far). This is not the first instance he has expressedgratitude to AIM, as he has previously offered Pro-

f.le of an Asian Manager to the late Dean GasryOrtigas. This time however, there was an elementof suspense that night - he kept the titles underwraps until the ceremony proper started.

What is Wrong with MBAsl rhe first of the se-ries unwrapped in the occasion, was revealed tohave been written in honor of Prof. Fil Alfonso's

effortless flexibiliry his outstanding people skills:"l've never met anyone like him...who can dealwith the dull srudent, the intelligent one, the leader,the buffoon...," he says. Pash also commends ProfAlfonso for governingAlM during its crucial years,

at the same time stressing that he wished to en-

courage the profes sor with Vhat is Vrong. . . to findmeans to strengthen the MBM program.

Prof. Victor Limlingan is the second facultymember honored in the series. ChangingJobs Profitabfi recognizes the unassuming personaliry he

possesses, that coupled with the wide range ofmanagerial knowledge can only be atoibuted to

wisdom. The third book belongs to Prof. TobyCanto, a "professor offew words" who encouragedhis class to develop their analytical skills, and inother words, to be more insightful. The author a.lso

dedicates Management B! Cutlzry Set - which, he

says, "was written in a lighter vein'- to Prof Canto,

because he admits to never havins seen this rathersomber professor laugh.

The "mismanagemenC' series, Pash emphasizes,

is not merely to promote AIM as "a great institu-

tion that has made a difference in my [his] life and

the lives of thousands of alumni in Asia." Some-how, this does not come out as mere press release in

relation to his recent Tliple A award acceptance, ashe sincerely wishes to contribute to the Institute

which helped him overcome his own self-esteemissues. "I learned to speak through AIM. Maybe it

is perhaps because I had a 'tough' father - beforeAIM, I had a fear of power."

-*/hat he fears now is that not enough manag-

ers are changing fiom the private-enterprise track

to the development-management route .

He constantly echoes AIM's main principle: the

menager must be socially responsible. "If you are

an AIM graduate, you are part ofthe privileged class,

so it is your dury to.give back to society." He him-

self has fulfilled his obligation in founding Shri

Bishwanath Singh Memorial Educational, and'Welfare

Tiust, which were funded by his frie nds and

books. Both were conceived in memory of his fa-ther, in the aid ofchildren in the slum areas. Then,

of course, there is a.lso the Dr. PN. Singh Founda-tion that has undertaken a "Leaders ofTomorrowProject" for youth from slum families in a Mumbai

school. He is optimistic such projects will encour-

age more contributions. "Once the process has

started, I am confident the vision will become a

realiry."

Pash hopes the Institute can produce more par-dcipative leaders beyond the corporate sector ofthe

Asian economy. "One thing worth being remem-

bered by is the difference one makes in the lives of

people. AIM needs to produce more than good

managers, and to graduate worthy leaders" who not

only possess a socia.l conscience, but also carry theresponsibiliry'it dictates, as he does.

The nouble is, he muses, 'Et,eryone uants to haue

hi own jet, hh wo, three, four cars." I

49

Dr. Wenent Pan

The Critic Pan

he art of management co Dr. 'Wenent

Pan is es-

sentially "a reasoning process." It calls for him

t lto balance a crlflcs cold eve and a leadefs warm nano.

V/hen he was appointed as the youngest president

of the Chinese Petroleum 'Corporation

(CPC), Dr.

\Tenent Pan immediately faced tough obstacles, in-

cluding queries regarding the privatization of the firm.

In response, he single-handedly conserved more than

ten million NT dollars with a cost leadership strategy.

He facilitated the Point of Sale System that reduced

operating costs and highlighted the importance of cus-

tomer service. He shifted the organization to a decen-

tralized decision-making process. He established a lin-

ear planning technique, as well as designed the blue-

prints to the implementation of the Enterprise Re-

sources Planning System.

50

These days, CPC has nine oil wells (spread

around the world), fourteen oil tankers, three do-mestic refineries, one domestic petrochemical plant,three naptha crackers, a gas pipeline, six hundredfilling stations in the island, and in a sense, overnineteen thousand employees. Pant managerialartistry did not go unnoticed. He has been cited"Outstanding Manager of the Year" by the Chi-nese Professional Management, and given the high-est honor bestowed upon a government employee- pertaining to his being assigned to attend th€National Strategy Institute.

As a turn-of-the-century response to global-ization, economy nosedives, and threats to thecompanyt monopoly, CPC announced earlier thisyear ofits plans to lease out four hundred and sixty-two kilometer optical fiber backbone systems run-n ing a long p ipel ines between Keelung andKaohsiung. The telecom department is designedto "mark the first milestone of CPC's determina-tion to widen its business. CPC will invest to in-crease rhe currenr fiber optic carrying capacirythreefo ld, and to upgrade the currentPlesiochronous Digital Hierarchy (PDH) to theSynchronous Digital Hierarchy system." To wit,there is more money in the oil bank, and conve-niently in the name of competent technology atthat: "We expect to save seventy million NT dol-'lars

in long-distance communication costs by uti-lizing the optical fiber line more efficiently." Alsothis year, Dr. Pan proves saving financial resourcesis nor his only forte. "fu far as generaring moreincome is concerned," he assules CPC "will alsoconsider going into the real estate business to gen-erate more profit."

On the whole, Dr. Pan prefers to downplaythe company's progressive monopoly. He finds itnecessary to play the critic, as much as possible atdl times. During the late 1990s economic upheaval,he demonstrated a lack of ambivalence toward theissue of early employment dismissals: "Of coursewe are not so efficient. I believe that liberalizationand privatization should work together. All ofthesestate-run industries need to and will be restruc-tured no matter how painful it may be." Part of

the restructuring included the designs of"respon-sibiliry centers" through which the employeescould get a grasp of the concept of operationalcost, as well as that of th€ accountability whichcame with it. He also expressed concern over thethen growing competition berween CPC andFormosa Plastics Group.

To balance his firm pragmatism, Pan turnedto the academic excellence of AiM. His olderbrother (an electrical engineer) succeeded in trad-ing without formal management training. Thisinitially showed him all he had to be wasreasonable. All he had to do was sharpen hisinstincts and evaluate his moves to be able to growthrough experience. But he opted to earn a TopManagement Program degree because of theprogram and the Institute's reputation for speed-ing up the process of honing managerial skills.

Enrolling in AIM's courses, which he reportsare similar to the ones at Harvardt, was evidentlyworth every penny and second. He attributes hiscurrent presidenry at Taiwant largest and mostprominent oil company more to the TMP thanto his chemistry scholarship (from NTNU). Itwas at AIM where all his chemistry knowledgesolidified not only into currency for material gain,but also into high qualiry cost-efficient service,through the study of the managerial art.

And perhaps even more significantly, it wasAIM that developed his value of exercising so-

. cially relevant managemenr. In his company, heemploys two hundred and forry disabled indi-viduals. He initiates fund raising for victims ofcalamiry the recent one being the earthquake inTaiwan. He continues in the development ofcountless programs that support gray, impover-ished neighborhoods within the locale of hisplant. His critical eye and managerial sixth sensegive him a firm grip on the future of the indus-try; his social conscience commissions him toextend both hands to the next family in need.

The art of management, by his definitionafter all, is also a reasonable one. r

5t

Ernesto D. Garilao

Management Goes Public

eople normally associate l'gouernment" rl)ith "politics," notmanagement. " Yet, as Prof Gariko's experience Proues,

a better gouernment nee^ bettir managers.

Certain individuals are endow€d with a profound un-derstanding of cause and effect in the world. Recent TiipleA recipient Ernesto D. Garilao continues to bless both privateand public sectors with this gift - whether as Executive

Director of Philippine Business for Social Progress, Vice Presi-

dent and Lead Convenor of Social Reform Council, Secre-tary ofAgrarian Reform, or as current professor and AssociateDean of the Center for Development Management at AIM.The .,4sian Manager :calked to Ernie about his several careers,since he opted to do rural legwork after college in favor ofasix-fisure offer behind the desk.

I

. \Yhat do you fe is Jour great^r accomplishment. u-

i reer-wise?

uere resolued. How were 1ou able to accomplish as

muchi

In a business enterprise, how do you produce

1,000 cars?'{4lat are the resources required? \X4rat is

the production system? At DAR, the output for in-

stance, are resolved cases. There are adjudicators who

hear and resolve the case. You have a production pro-

cess, so to speak. Itt essentially a matter ofexaminingan operating system. You find out why case resolu-

tion is low. Once reasons of thewlrl areiden:ul.frcd, you can initiatepol ic ies, improve operat ions,check resources, maybe changeadjudicators. And at the end oftheday, ifyou sayX number ofadju-dicators should resolve Y numberof cases monthly, you'll surely

wipe our your backlogs. It's noth-ing really great. Any manager who

is trained, politically sensitiveshould come up with the sameconcluslon.

The trouble is people dontreally believe in government. The

government can resolve 9(r per-cent, and the world hears, com-plains about the 4 percent. Notrhat I'm saying the 4 percent is

Vith PBSB I can say I left the organization sus-tainable. Overseas linkages were developcd, fundswere raised, a good work ethic was imbibed. Man-power, resources, programs - allwere improved. This

is also true for DAR. Limited foreign partners, prob-lems in the management of its operations, legal andland distribution systems were eased with improvedwork performance , funding, andoperating systems before I left. Es-sentially, the pattern to accomplish-ing things involves surveying the re-sources initially provided, then ana-llzing how vou can use rhem to cre-ate better institutions and morcsubstantive contributions to thc^ ^ - ' - , , ^ : - , ^ , I ^ - - -

Many managers won't euen cofislderworhingfor the gouernment. Are thEtwrong?

The government gets bad

Private sector

managers who join

the government

learn to deal

with d ifferent

characters

in different

environments.prets. Abu<e. corrupr ion. inef f i -

ciencies - these are what are high-Iighred. My government experiencewas very fulfilling. Private sectormanagers who join governm€ntlearn to deal with different characters in a different

environment. The key is how you're able to managewith integriry. It can be done, so long as you defineyour boundaries in terms of superiors, the bureau-cracy, and everything else. To be thrown to the pri-vare secror and be able to manage your inst i tu t ionwell, rhen to be thrown into the public sector, and to

be able to manage as well according to the param-eters you set - that can be a good challenge for anymanager. The unfortunate stigma is perhaps becausethere arent many effective managers in the govern-ment. A better government requires better manag-ers.

tYhen you headed DAR, 2.7M hectares were distrib-

uted, P22B raised, and 96 percent ofthe agrarian cases

negligible. You could present asolid public policy pro-

posal, but it depends on whether the minister in chargewill accepr or nr-tt. [f he hal no inrerest in improvingoperariont. rhe proposal won r go anpvhere.

How were you able to raise huge suml lihe for pro-

grams such as the Pouert! Alleuiation Fund?

It's a good program to begin with. There arealways donors looking for good management pro-

grams. If they see that, you get the resource. Goodprogram management leads to good program re-

sults. In a sense, that's what I've emphasized.

Do you think worbingfor the gouernment hds made

you q'nical, Pessimistic?

It's not a question of cynicism. Like any man-

ager should approach it, you examine your con-straints, then how you can manage them. Those

who can't manage constraints properly end up be-coming cynical and throw back the issue to the en-

vironment. The fact remains that the poor person

blames the environment when, in truth, he cannotmanage his own environment, he cannot identifrhis niche, his stakeholders, and manage them well.

You can a.lways name your

term of reference. When youcome in, you define your rolesand anticipated results. Set thetime. In that process, you give ityour all in a sense, since the job

becomes top priority. If the re-

sults are not up to par, I dontthink you should blame yourself,You should aiways be able to say," Well, I gave it my best shot."In certain situations in life, ittbest to put a closure. This doesntnecessarily mean, howeve! thatI'd never return. Ifthe opportu-nity and the challenge weregiven, I could go back.

\Y/hy did you come to AIM?

Governance in the

21st century will be

geared toward a

trisectoral

interaction

among the state,

the market, and

civil society.

I originally offered an elective on managing state-

civil relations. In the future, managers must know how

societal or market issues are really resolved with inputfrom state market or civil sociery tWhen you examine

the state policies, there are a lot of recommendationsfrom civil society and the market. Ages ago, business

operadons could operate unrestricted. Now they are

regulated by the state, they face civil society pressures.

Therefore, enterprises and their managers must be sen-

sitive to other publics other than their primary ones."How is he able to manage these re-lationships?" We offer that elective.'Weie

thinking of expanding thatcourse where the discussion ofissuesis a three-way interaction among thestate, market, and civil sociery andit proceeds with the question ofmanaging a trisectoral process. More

and more, I think students shouldbe exposed to that direction, because

governance in the 21" century willbe geared toward that.

Vlhat are your cunent Projects?

In AIM, we're uying to wotk

on good country research pro-grams, specifically of Vietnam,Laos, Cambodia, Indonesia, andChina so that the output (case

\Vhen you go to the classroom, you bring with

you your experience in managing institurions, issues

both in the private and the public sectors, and you

have an experiential depth the students may find

useful in case studies. You could steer the studentsin cenain directions with that depth. After govern-ment workwas an opportune dme to teach, prima-

. rily because I had a lot ofexperience to impart. AtAIM there's the rigor in the classroom, the academic

excellence. Your class is a multicultura.l, multina-tional student body. I was also interested in regionalissues. Essentially, I think, theret a lot ofthat here.

Yoabe specialized on oisis management and state-ciuil society rektions, institutional dzuelopment, ?ub-lic sector reform, conflict resolution and mediation.'Which

uoald yu like to discus?

study miterial) can lead to better electives, courses,

and new seminars. We would like to see whether we

can offer short-rerm courses in rhose countries or

not. I think thatt part of making the AIM presence

more distinctive.

\Vhat da you thinh is AIM| main contribution to the

world?

It develops managers for the region. Hopefully,

the institutional managers tike on the role ofsocietalmanagers as wel l , that they ' l l br ing in to the i r

countries and organizations certain principles that

value societal good, and that they situate their

organizations - whether private or public - within

that overall context.-Kristine Domingo

54

MBM'73t rfroroing C [a* Alztwozfl.Lng

MBM 1973 has been called a model alumni class.In a speech at the FAIM General As-

sembly, Roberto Garcia talked about hisclass and gave insights into what a modelalumni class is and does.

'We've been ralking about Enhancing ClassNerworking but I think a more appropriatetopic would be Enhancing Class SolidariryMaybe this is because I leel if you have thesolidariry then nerworking would come outnaturallv

I d like to tell you a few things about ourclass MBM '73 to give vou an idea of how ourclass has networked. First of all, we were themost rebellious class, mainly because we werethe only one with stage 2 strikes against rheadministration. We joined the class of EdMorato in 1972 in their protest against theMRR. Then in the second year, we decided tolead our own strike against the MRR. Ofcourse, both strikes were unsuccessful. \Xle stillhaue rhe MRR roda1. I rh ink what *as uniqueabout our class at that time was we had quitea few student leaders. Reme mber the time was1971 and we were then in the presence ofstu-dent leaders who were a part of the "First

Quarter Storm" during the Marcos years. Notonly that - we had student leaders in theirown righr from Korea and Thailand. I thinkthis chemistry was important to get our classunited. In fact, Ninoy Aquino talked in AIM,and after his talk, where he exposed the OplanSagittarius, he left AIM, went straight toHihon Hotel and was picked up thar very same

t { 1

55

#RODOLFO G. BERMUDEZ

@GUILLERMO D. BELLA

RENATO R, BERNAL@ \$ 'B{ER

sF Bu sr N :;it*

*cs,&r64?

ffD4Rnight. At that time we weren't soconcerned about how martial lawwould affect our classes. \(/e wereconcerned about how we were go-ing to dispose ofthe firearms in thedorm. Again, this was alsoa crisis that brought ourclass together, so there werespeculations on how mar-tial law would affect us.

Our class founded TheAsian Managers Fraternity.I don't know ifyoure famil-iar with this -it was ille-gal then. We did not havethe blessings ofthe admin-isrration. Thar fraternity isstill active. \(e have over at h o u s a n d m e m b e r s .Among our distinguishedmembers is Senator GringoHonasan who we had thepriviledge and pleasure toh a z e . O u r c l a s s a l s op r o d u c e d s i x t e e n ( 1 6 )Tiiple-A awardees. Amongthese are Angelo Reyes,who is the present Chief ofStaff of the Armed Forcesof the Phi l ipp ines; PolyNazareno, President andCEO of Metro Pacific; JingLapus, our debonair con-gr€ssman of the third dis-trict ofThrlac; Popov Juico,forme r chai rman of the

ARTURO T. CHU PERPETUO M. OE CLARO MAUROG. CLEMENTE+

Philippine Sporrs Commissionl and Mon Abad, who isnow the President ofthe Development Bank ofthe Phil-ippines, among others.

(lur class is also active in the AIM Alumni Affairsand I rvould like ro make a correction - this is not thefirsr FAIM gathering. I remember attending two FAIM

0

on*"-,

EOUARDOJ.CORTES

conferences. One was in Bangkok and the other in

Singapore. This was during the time of Digoy Fernandez,

the founder of FAIM. We pushed Gaby Mendoza andGasty Ortigas to include the alumni fees as parr of rhetuition fees. The alumni association (at that time wewere a voung organization) was trving hard to put up

ROBERTO S. CRTSOSTOMO JOSE VICENIE l\rl. CUIZON

projects, but ofcourse we did not have

enough funds. So we told Gab,v, whenyou bill them for the tuition, bill themalso for the alumni fees. As you buildup the alumni through providing them

I

with funds, this will all goback to the Institute. Theyeventually approved this re-quest . Our c lass a lso pro-duced three FAIM presidents:Digoy Fernandez, Mon Abad,and myself. Ve also had fivealumni association chairmen.Our class has presided for 10ofthe 30 years ofthe associa-tion. ln fact, Benny Araw, theincoming chairman for rhcPhilippine Alumni Associa-tion is also a member of classl ) / J . I n ts rs our way ot g lv-ing back to the Institute. Weare also proud to say that wewere able to donate, our oftheproceeds earned during our20th anniversary, the MBM'7

3 Pres ident 's Room.Through class donations andnetworking, we were also ableto donate to the Institute rheMBM '73 room on the Phil-ippine Floor ofthe AIM Con-ference Center

'l7e have a comple te class

directory and what has beenvery important for us is theemail network. Each ofus has

PETER C. OIAZ JR. +

A. CRUZ

56

l :

{&glY;utsruvru sss,rsnn *o sab*d$ 57

- \ . . f i * r FLlstr ' *ESs i t r , ' \ i t .4G;,

\1,!:*' ' '- '

MBM -'' it '*].">

i J

a complete list of email addressesof our c lar rmare ' wi rh emai l lnd i tfacilitates communications greatlv.The efforts of many classes andFAIM chaprers ro build rveb sitesare. f [or t ' in rh. r ighr d i rect ion bc-cause we can keep in touch this wav.Anything and evervthing that gocson in the class - people just haveto post it via email and everybodvgets to knorv about ir. \X/e also havcper iodic c lass meet ings. Oncc aquarter we get together here at AIMro ha ' e . r couple ofdr ink ' . Thrr i .a lso very important in rerms ofkccping abrcast ofwhat is happen-ing. Vhat we found very importantwas the planning for the homecom-ing. This tradirion ofthe 20th vearclass of taking care of the alumnrhomecoming is a great tradition. .EdMorato's class startcd this for barch1972.In fact I remerrber the headcoutrt reached 650. Vhen batch1 9 7 3 b e c a m e t h e h o s t s o f t h calumni homecoming, rl-e rvere vcrvcompetitive. This rvas a big thingfor us. Our cl:rss was so obsessedwith beating that numbcr, trving toreach onc thousand. Actually wet u r p a r s e d t h a t s i n c e w e h i t 1 . 2 0 . .'We

had our 20th homecoming arthe EDSA Shangri-La. And sincethen, the homecoming has been a\uccessfu l wdv ofgetr ing rhe a lumnitogether. You are forced to work asa class and I think even the recenralumni homecomings of the pasrcouple ofvears have all been rrvingto outdo themselves. They've beenworld-class productions, the onethis year at the Ayala Centcr and

,.qilp

JOHARI BIN HASSAN +

DELFIN VICTOR R. MACEDA

RUFINO LUIS MANOTOK JR,

MBM, r .1 _/ : )

the one lasr vear at Fort BonifacioThc . r lumni of f ice rs in-charge de-,erue a round ofapplaure for r hat ,

Our own annivetsary reunionsrvere also very important to usWhen wc celebratcd our 25th arr -n i r e r s a r v . 6 0 o f o u r c l a s s m l t e .g. r rhered in Mani la . We went to

Subic for three days rv i th our\pouses. I t was a great exper ience.I L h i n k m a n v o f v o u * i l l h e . r r r -

prised because one ofthe questionsrhar we postcd,Jur ing rhe reunionwas " What are vou most proud ofin terms of achievement? Eighwpcr tent d id not ra lk rbout career ' .Thev were ta lk ing about howproud they rvere of their families,and ho* proud rhev were of the i rcareers in the sense that thev built

up rhei r own bu. inet rer . In fact . i t

uas so rucce ' ' fu l that *e har e de-

cided to hold another class reunionin June in Bangkok. One of rhem o s t i m p o r t a n t a c t i v i r i e ' t h a tkeeps us together i. goli \\ e hau<regular gamcs. We in i r iared an in-ter-class golf MBM '73 vs.'74 andwe hear rhem roundl ; . Ia , ' r ly . wefounded a class corporation calledE n r e r p r i . e T r a i n i n g C o n c e p t r .chai red br Franci , ' Lr r rada an. iPro[ Derek L ieu. l t wa. ruppo.ed

ro gather ftrnds for the class fbrventures. Ir has been a financiale m b a r r a s r m e n t . o * c r e , , r i l l r r v -ing. But vou know i r ' r great be.caute *hen *e get rogerher etertmonth lor rhe hoard meet ing a l lo f rhe got . ip .ome. our and ue getto see business proposals thar comeon rhe r . rb le. Mal he one dav rv< ' l l

hir ir better.

@RAMON O. MITRA

@.NAPOLEON L.NAZARENO

SURESHPALSINGHMAHINDROO

JOSE MA. FERNANOEZ

JESUS G. GALLEGOS JR.

eE

IRWIN JASMINES

H -rtr, 1E!

\dr ... tI

bt. n',,OSCAR JAIIIIE R. MAURICIO

I

I

1rROBERTO V GARCIA

58

'*'**t

OEREK KONG.FONN LIEW

ANTONIO GO KIAN

SENEN L. MATOTO

59

/ )

*r, p".s! aK -t --il;;-;rtA r{Actn{€*,r

MAXIMINA N.SINOIONGI - . \

EDUAROO N. SISON

. , r *h rJUSt f {E$S l r ; { i , . , . , r r_ t__.

,,,:,ir: 'v " MBM

''*' 'r:$,r,.:..

73

TEODORO R. VILLANUEVA

j

Y

,:I

ALBERT F. S, VILLAROSA

I'ANUEL C, YU +

It

STEPHEN S, DE LOS REYES

BENJAMIN STA, CA-TALINA

CLODUALDO VOLIAIREB. SANTOS ffi

MASANORISUGIURA

TANCHOCO JR.

In closing, I d just like to say that I thinkfor rhe solidaritv and for networking, the' ing le most imporr . tn t th ing i . communica-r ion. Somct ime. guv. uc haven' t seen s ince

graduation, thev just show up. When we hadthe testimonial dinner for Angie Reves, there

were guys that rve haven't seen since gradua-tion who showed up. It was a great way of

gerting together. That's my advice also, as faras alumni networking is concerned. I've vis-

ited the AIM Alumni Business Net and it's a

great web site. Ifyou can just get the alumni

to be aware that that site is there and enhanceits capabilities. Wharton even had a $0'AVE- Vharton Alumni Virtual Expenence tnwhich an alumnus can log on the web site

and locate anvone from the alumni, classi-

iii ,tlI{x a

fied by industrl', working experience, and so on. Fellow ib a t c h m a r e . , w c a r c t h e g e n e r a r i o n f o r w h i c h \ ,

technological revolutions like this was first thoughtf

iLetl see it go to rvork. Impress us. Then afterrvards . *teach these children a thing or tu'o about revolutions in

' .\

thought. lt has been a privelege to be a part of this

extraordinarv batch - I stand on the shoulders ofgiants when

I face the future with open arms and a sense ofu'onder: "$flhat

exrraordinarv times, what extraordinary people." I

+ \\'t \\'ll.l RFI\I1.\'IBLRTHLII: Thet Jrllnor gtou olzl,^urul'oareltlts"," oH

A!: t ! /dt l not utr t l , thtn, u, tht tea,s,ot , lorr At l rgoirgdoutol r / .etnadirr lvurttirg. ur.ull reneubetlrzr. t aurcncc Dinron Songs lor Hercer'

' ' I

t

i-*1":i1"

,*k

t G

. {i \ ta

GOMERCINDO L. REYES +

60

% v6 1

c|assNotesisyoulbul|etinboald,yoUrown'ofm|olannounclngcalgelachievements'mi|sstonesin|ife,b!s|n������������������������������������������������������youfee|wi | |bd;g 'e| |dvAlMgEduaiestotheatrent ionol lhewo dat |arge' ' 'andc|oss| lo€achothe(olca!re. � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �;e,ll be happy t; publish !gu-r notes. lt you do find your class hefe, remembq to update the wo d about you and yolr classmales in each issue, so send us mail fegula r

AIM's Father in the Streetsa wholesome home atmosphere.The Training or TechnologyCenter o f fe rs techn ica l /vocational sources that allowthe indigent youth to learnemployable skills in the foodt rade, garment t rade, andelectronics technology. TheLINK Center (Launching tolndusrries Networking andKick-off ) provides employmentassistance to trainees who havecomple ted courses in theTiaining Center

Last May, Laura Vicuiaheld a party for its street chil-

dren at the Institute, perhapslargely sti l l in memory of its

Jesuit founding father. But as theyears progressi the selflessprojects he init iated wil l nodoubtcontinue, as long as othersuphold his philanthropic vision.

Those who w ish tocontribute to the faura Vicuiafoundat ion can do so bydonating and volunteering forits tutorial services. For details,call7\47793 or drop by 3500V Mapa extension, Sta. Mesa,Manila, 1016

"Without Father Jim, AIMwould never have beenfounded," Prof. GabinoMendoza has said. Itt been alitle over two years since Father

James F. Donelan passed away,and more than thirry years sincehis vision helped to lay thefoundations of the Institute.With his countless inspiredcontributions as facultymember, chaplain, adviser, andconf idant o f the AIMcommuniry he lived up to everyinch ofhis idealistic blueprintsfor the Institute.

The laura Vicufia Foun-

dation, Inc. is one of the lastprojects he breathed life into

and left behind for the alumniro develop. Organized with theSa les ian S is te rs in 1990, i taddressed the plight ofthe lessfortunate children, since the

62

name belongs to the Sisters'model of virtue - a girl whoentered the convent in place ofsraying in an economically,spiritually impoverished house-hold and was beatif ied atthirteen.

Today, the foundationremains true to its original goal:to he lp the s t ree t ch i ld renbecome honest, productive, andself-reliant Christians. It hasevolved into an integrateddevelopment program called the

Journey of Hope, and has fourCenters - the Drop-In Center,Temporary Shelter, TrainingCenter, and LINK Center. TheDrop- l n Center she l te rs ,oourishes, and gives medicaland educarional assistance. TheTemporary Shelter welcomesbattered, molested, orphanedgirls, and educates them within

FAIM Gathering

l . r r l r r l r . \ l . r r . r r r . r r r i r . r . , , 1

r h . 1 . . 1 . r . r L i , , r r , , t \ ' r . L n l r : ' r : r L r r .

, , j \ l . r r . r l q n r . ' r ' r \ r L r r r : i q . L r l r

. r . J r , , . r J J r . " r i r . j i r r r r r r , r l r h r

l f r r i i L r r . r r r , L l l l , r , i l r l r r r r r r t r . . l . i

i t I

l , , L r l . . t L r . r : r r r r i r r r l r .

r i \ 1 1 , \ i , l l l r l . L l , . 1 ( r , ) l r , , t

\ s i . r r l n ' r r r r r r , , , l \ l . r r . r : . r r : . r r t

\ l L r r r r r r l . \ l \ i \ l \ l . r l r L r r r r r r

f l J l ( \ ! r ' r . L : \ r \ l r , r r r r I , \

. l i t i . r . r r r \ ' r . L n . h . r 1 , r . : .

r ( i n \ L l l L ( l r r r . r { ! r l r l . l . l \ \ ! l l l L r \

L . r ' r \ 1 . [ \ 1 . r r l r . r \ L ) i r l ] L

. r L r r r r r , ' i r r . , l r r ( r r r . l i I r , \ l \ 1

( . , r r r f ! r r n i ( | r : r l r l L ( i r l \ ( 1 1 . .

r h . p , , . ' r l , i r t . T , ' b . ' r r . :

r r , r r r . r [ ; r r r . . , r r . 1 h t r i . t r , , r L r . r

i L l i , r r . . l i r r r t : r . l r r ' t L L r t .

l i r . ' r . . r , 1 . , , 1 1 h ! ! r r . L f r r .

. , , : r : r r L r r L , . i i l r ! i r I L , L l r ' ( r ' ,' . , ) ( , r \ , n r l i r . l L , r . i L r . L l t l r , , L r : l r r .

' , J r f l r ( i u t r L r r ( , i I \ l \ 1

l , ' L , , l L r r . L ! r \ \ . r l i r \ r 1 , r r l

: r r r r r r | o r r i .

( . h r i s t ophc r I i n . J i h - f L r r rg l , i i

r i . r r , , L r ! o i r r I \ l \ l ( l r . r L r

r r r : r \ J r . r r r , i : r r , . . r r . . r l r i . L .

, r r L r t L . i ! i l . . t L " : , i r t l ( ) : ( l l i L l ( i r l

r , ' * r , , r r i r , ' , , , r L r p , ' r . r r r i . L l r .

\ { r t L l ! r \ L r r ( ' L l r r l l ( ' \ l l r l ! ( 1 1 ' t L \ . 1 \

\ ! ( \ r l r . r r t . 1 L . . r L L . r . . r 1 . L r r t t .

l ' , , ' . . . . I L L . t r r r . l . r r ! r i ( r r i I , r L I

r , r : . l . , , L r i r l r . \ . . l . , , r t , r r r r r

l f . . L r r L . L . . ( , r l ' . l h . t i t l r r I r r L ) ' l

r , r . . , , L r . . . , f L r . L l r . r r ( ) ( , ' r r l r I

i . l l f . l . L . i ! . r L ) r . r l . l L i . . r l . r , r h .

. l r l r r r , ' r r i r r r . 1 , . : r . . r i . . t 1 , r . l L : , ,

r . L . r t L , , r r . I r r i , . . r : , r r . r r . L t l r r t t I r ] t '

: . i . r r , ' r . t r 1 , . . r p . r . r l l r , , L . i . . r : . r . . r r

. r r r l i . . r r . . L , . , l L r r r r r r . \ .

i l r r : r ( , r . \ \ ! ! 1 \ : i I i r l r ' l l l l r l r

\ l \ 1 . r l r . : r . L f r ' . i , L r t ' r r l r , ' L L r

! L ) I I I I I I L I I I I . . i : : ( I I I . I h . . ' ( , . 1 I I I 1 I

. L l r r r r r r i . r , , L L n J r r . , . , , r 1 ' l ' i r .

. , , r r . 1 r , , " " . r ' t . . t I r : r i r r L ' t l r L .

L i f f 0 r ' t . r r t r r . r . r r r : , , o r l t , t r L t r

I t r \ i i | \ \ l . t i r . t L r r L ' . r r r r o r I

( , ! , r l r . r r , , \ t r r r t ! t i r , r r l l r i r l r l

r . L , l : . \ ( r 1 l r . i I ! L , r . l i , i l ) l ( l l

. . r ! l r \ o . r r I r , . . r : r l , . r r . t l r \ \ . . r r .

i ( r \ r r r r L r l r r , r l , . J t l l I l , l l r r r I l l !

l . . i r r . t r : , r | ! , , 1 1 x , , r 1 . I t r l L t l r . r

I t , \ \ . l r ! 1 . l l r l ! l r t f r . l r l r l : l l 1 r l !

l r r . r i l L L l r L ( 1 L r l

\ l o h e n \ l . r J h e ' I ' h . r . l L e l r r , l r . L

r r , o r r r r r l l \ l \ 1 t L , L i r r r r . L r r , :

I l r . , . , r r 1 ' , ' r . r r r l r l r . r l ' . r r r l : . , i r r J

l , u r i t r . r ( ! l t L r , , \ l \ j l ' r . ' i . l L r r r

I n r b l . l r t ) c ( ) c . r r n p o h ' : 1 , . r r i r r 1; r ' i r r , , l r , 1 i , r . , r , , r : ' ' i r l r I ' n r l .l irrronreo . L rr,1 Prof. \Jirenda.\ \ . l r . r J . r 1 1 1 1 1 I 1 q 1 1 . 1 r r i ' L r

. p r . . r , 1 , , r c r \ i L L r r r L ' , r : . r r r L i t ) . l l r

l i , , b b r r r . r , , , 1 , , L L : , i r : r r L L . t l l r r . t

r r r - . L r r ( l \ l j " L \ ( l , j L L \ . l L r r ) l l l l l ( r \ !

\ l \ i . . . ' i . . l r . r l r r g ! ' . r r r . , , ! 1 .

L r . l h , , " r r r ' . r l i r r r r , , . , , r r t r i l r

L L t . t , ' , t . l r , I , l ' i r l l : . r r t r L l r . ' r l

r r . ' I l l : l L . l l l r l l l r l l :

\ l \ l . . r l l r l , r ' . r I L . , . L r L L , r : . r L \

r , i L r l ' i r t r r t I r ' o t . L c . r J r : ! . , r 1 i . , ,

f . u . l r ' r : \ r : j r I : r J , r ' r j : l : r r l r , r r r r

a€

a.

best to keep up the interactionwith visiting faculry and alumni.Doni hesirate to let us know viaemail either in Mumbai, Delhi,or Calcutta. The sub-chapters orexecutive committee memberswho are responsible for each re-gion are very approachable andwewillonlybe too happy to talkand share at least a few bortlesof beer. We welcome very muchany effort from you to commu-nicate with the alumni.

Alfredo Torno, Indonesia; Vehave close to 3,500 alumni inIndonesia. This is about l4 per-cent of the total alumni ofAIM,making Indonesia the countrywith the rhird highest numberof AIM alumni.

The AIM club of Indone-sia has been actively helpingpro-fessors flying into Jakarta togather alumni to discuss man-agement issues. The AIM clubsponsors book launches to helpprofessors Iaunch their books inIndonesia. The club sponsorswe've been examining the pos-

sibiliry ofAIM programs in ln-dia. We actively look forward rohelping to make this plan ma-terialize.

Prof. Borromeo and Prof.Azanza visited us again, and asusual we made sure we spenttime with them. We always helpthe Instirute in conducting in-terviews and exams, Prof. FilAlfonso visited us sometime inSeptember. Ve again hosted aneveningfor him in MumbaiandDelhi.

\Ve've been trying our bestto encourage interaction withour Board ofGovernors. RatanTata has since last year been pay-ing us quite some time to inter-act with us. !0e had a couple ofget-togethers with him and heshared with us his intentions tohelp the alumni and promoteAIM.

The programs for this yearinclude the FAIM meeting,

64

which will be held this year inDelhi. We are also planning tohave an Indo-Asean Entrepre-neurs meeting. The idea is tobring entrepreneurs to sharetheir views and experiences, andsee what we can duplicate. Thesubcontinent really is an entre-preneurs' continent.

The association undertookseveral activities on the benevo-lent side. lndia was hit verybadlywith a cyclone and also bya war that left millions in de-spair. The association collectedfunds and gave these to thePrime Minister. One of thethings that we have initiated isthe formal installation ofa pro-lessorial chair from the alumniassociation of India. \0e areworking toward this and theinitial reaction from the alumniin India is very positive. Ve willcome back to the lnstitute to seeifthis can be considered.

'We have been trying our

mail your notes to F tam@aim.edu.ph

public seminars and workshops,and helps the Indonesia repre-sentatiYe omce condrjct open-house events,

Vith Indonesia currentlyon the road to recovery we arenow back to strengthen the link-ages among AIM Indonesianalumni. We have realized theimportance ofa strong nefworkamongalumni. Ve are planningto conduct back- ro - the-caseroom seminars and work-shops, and update alumni onsome management issues. weare creating a web site for Indo-nesia for all the alumni oflndo-nesia chapter to have their ownaddresses. All data will be avail-able for anybody who wants tolocate somebody

Han "Sugar" Tae Sook, SouthKorea. I am a graduate of MBM1984 and am currentlyworkingas a public relations manager fortwo Intercontinental hotels inSeoul. Ifyou have any plans tovisit, just let me know

As you know, in AIM theKoreans belong to the minority.\Ve have around 50 graduatesfiom the MBM, MM and MDPcourses. Howevet the most ac-tive members are from MBM.They hold high positions. Soour members find it beneficialto network with each other, es-pecially as the economic crisishit Korea hard. Some of ouralumni had to change theirjobsor discard rheir own business,There were many changes.

However, these difficulttimes actually made our Koreanalumni very strong. We had ameeting months ago in our ho-tel, and I could assess rhar theynot only survived, but they suc-ceeded. In fact, they are in bet-ter positions now. Some are innew business, panicularly in e-commerce, and are quite suc-cessful.

AIM trained us well to copewith stressful days, and thismade our alumni strong evenduring these hard times. AII ofour chapter members haveagreed to support our AIMfunctions and events. Again,anyone who wishes to visitSeoul, pleasqcontact the Koreanchapter.

Rene S. Martinez, Philippines:Of the approximately 26,000AIM alumni, 13,000 are Fil ipi-nos. Of that number we onlyhave eighr percent who activelyparticipate. We have tried to getas much feedback from ouralumni as we can on what theyexpect fiom us. In doing so, welearned that they are looking forvalue-added alumni events thatare meaningful for everyone.Limited participation is a real-iry due to the limited executivetime of the alumni, There wasalso a lack of awareness on rhealumni association of the Phil-ippines itself. More casually,

' there was a desire for more inti-mate gatherings.

The Philippine Alumni As-sociation responded to these de-mands. We wanted to addressthe needs and wants ofall AIMalumni roward continuing de-velopment. \Ve also wanted towork closely with the Instirutein the implementation of boththe Institute's and AAAIM'sgoals and aspirations. Ve alsowanted to initiate avalue-addedproject with greater meaningand benefit to current and fu-ture generations - AAAIM be-ing the millennium administra-tion itself.

To stan the year, we revisedthe Triple-A guidelines !o comeup with deserving millenniumawardees for 2000. It was thevery first t ime the Triple-Aawarding was held in Manila. Itwas originally scheduled to beheld in Taiwan, but it wasmoved due to last yeart earth-quake and because we wantedit to be a more fitting celebra-tion by coming up with guide-lines that will serve and exem-plifr the aspirations ofthe AJMalumni.

Ve undertook joint pro-jects with the AIM alumni foun-dat ion headed by Bobby

Benares and which has adoptedcharitable projeca as ia primarycause. This was translated to theVsion of Hope program, whichcalled on the alumni to supportorphans. During the Rizal Mil-Iennium day held on December30, 1999, we opened Splash Is-land to orphans in cooperationwith the Instirure, the alumniassociation, the alumni founda-tion and-a host of non-govern-ment organizations.

On March 4, we had theMillennium 2000 grand home-coming. Despite everything thatwe had to do, we wanted to giveeveryone a night oflaughter andmemories. AJong with that camea golftournament that was heldat Southwoods. To reach ourcustomer base, we came outwith an alumni newsletter, aproject that was ably spear-headed by Venie Ranosa, one ofour directors. Al ongoingeffortis the Alumni Night, a tie-upwith the C2 Restaurant. Thisprovides a perfect venue forcocktails and more inrimategatherings. We had hoped tocome up w i th an a lumniconsu l tancy group, wh ichwould serve as a business clinicfcir small- and medium-scale en-terprises. It involves the alumnias physicians to companies inneed of professional help. Thisis an ongoing project, and wewould appreciate the involve-ment ofall alumni, faculry andthe Instirute itself in this en-deavor,

On May 19, we held theLaura Vicuna Foundadon Char-iry cause. This is a project thatwas started by Father JimDonelan, and we wanted to con-

65

t inue this kind of effort inmemoryof Fr. Donelan himself.And of course, there's the real-ity of having to raise revenuesfor the association.

Last and most important isthe alumni database. A lot ofalumni, as soon as lhey comeback to AIM, would inquireabour their qlassmates and theircolleagues and we felt that wewere in the best position to

guide them, to renew their net-working ties.This project Ieavesmuch to be desired, and hope-fullywewill be able to come outwith better results in the nextfew months.

Thelong-term goal of Phil-ippine AAAJM is to create analumni association capable ofuniring all alumni and servingas an effective medium ofmean-ingful change for its co-alumni,

the lnstitute, and the generalpublic. All of these ideas andprograms will not materialize ifwe do not have the involvementof the very alumni we are tryingto serve. So to all our Philippinealumni: will you be a spectaroror a participant in this wholeendeavor? Ve really look for-ward to hearing what you havein mind.

Peter Fan, Hong Kong: I washere some rwenty-two years agowhen I joined the ManagementDevelopment Program. I wasnot able to come back until thisyear, so I know I really missed alot. Definitely, I will come backmore frequently, and I hope wecan contribute moae to theschool.

For Hong Kong, we have avery loose lisr of organizedalumni. Ve have a name list of80, but most ofthem travel con-stantly. We get in touch fromtime to time wheh we have anactiviry together. We have anannual garhering where AIMpeople fly in, and we get to-

gether on the AJM issues. Someofour activiries include negoti-ating with a magazine calledKobi Kr.rdge, a free magazineavailable in MTR stations. Theyhave asection reporting news onmanagement education. Ve tryro negotiate with them to fea-ture articles we have writtenabout AlM. lVe try to promotescholarship and recruitment.

The HK chapter's new of-ficers will be Lucius Lai (chair-

man), Ellen Tin (vice-chairman)

and fuca Salmon (secretary).

Anwar Islam, Bangladesh: Igraduated from MBM in 1990,which was also the year the AIMalumni assoc ia t ion inBangladesh was founded. Afterforming the organization, wetook different cities for market-ing the different long-termcourses offered by AlM. So far,there are about l0 participantsfrom Bangladesh who partici-pated in different long-termcourses,

'We have been trying to

maintain a good, effective rela'tionship with AIM in providingsupport to the admissions office,and rendering logistics forAlMprofessors or representativ€swho conduct admissions testsfor the various students, coor-dinate with the students, andmaintain liaisons with the fund-ing agencies. 1i0e regularly re-ceive and distribute The AsianManager, as well as the bro-chures for different coursesamong the par t i c ipants o fBangladesh. Ve represented the

. FAIM Head meetings and dif-ferent management conferencesin Manila.

Ve expect the updated listofAIM alumni Bangladesh stu-dents so we can contact them tobecome members of Bangladeshchapter. rVe plan to register thealumni chapter with the con-cerned authorities of Bangla-

desh. Ve look forward to AIM'scontinuous support and coop-era on so we can vow !o set aneffective and firnctional one.

Dr. Gan Cheong Eog, Singa-pore: Singapore holds an opendoor policy and because ofthis,there are some 30 universitiesoffering MBA and related busi-ness courses in the ciry You haveheard that some ofthe primaryschools in the States have startedoff-campus and they havebought buildings to house thesecampuses in Singapore, Now,under such a context, AIMAS,the AIM Alumni ofSingapore,continues to uphold the flag ofAIM. Any time we can call upon80 to 100 loyalists. 1X/e can callon our registrants, over 600 de-gree s tudents work ing inSingapore and a lot of AIMgraduates who want to work inSingapore. Ifwe call on the non-degree studenrs and graduates,they range From rwo to threethousand. As a small associationwe keep a tight ship. We werethe first overseas alumni associa-tion apart from rhe alumni as-

sociation in the Philippines. \7eformed ourselves in 1973 a ,have run the whole gamut ofactivities.

But ld just like to reporton some things where you maywant to be ioformed. One is tharour motto is give. It is more of ablessing to give than to take.And so those people who wantto join AIMAS must be willingto give. Of course, those whojoined AIMAS actually tookback more rhan what they give.The reason for rhis is ifyou havesome $20 in any subscriprion,they get in terms of dinnerssomethint from $60 to $80 ev-ery year, This is a secrer to thosewho don't want to ioin, Qurcompetitive edge is the qualiryof service. We respond veryquickly to any inquiry on AIM.The reason for this is that thereare so many alumni associations- all of them tempering theirown causes. The moment we getan inquiry, we reply within oneor two days.

AIMAS is going to host theFAIM Conference in 2001. Veare going to gather something

like 400 people. We hope thatAIM will use this as a plarformto really re-establish us as theNo. 3 ifnot the No. I in a coun-try where competition in edu-cation is very fierce. I have al-ways said that if you cannotcompete in a most fierce arena,you are nowhere near the top.

John Abad, United States ofAmerica: Our main projects in-

volve establishing a US alumniweb site; creating a database;helping AIM with recruitment,media and PR; and lastly,strengthening the interactionamong AIM communiry in theUnited Srates, \i?e believe theweb site is the best way to geteverybody involved. Initially wehave a budget of$50,000 bothfor the alumni activities and thedevelopment ofthe web site, buteventually we want it to run it-self tWe've also contacted mostof the alumni on the databasegathered from the associationlast year. But it's not that easyupdating ir and we hope we getmore help from the local chap-ter Vith regards to recruitmentthere's an increasing trend ofalumni going to the UnitesStates, specifically to the SanFrancisco area, mainly becauseof the dot-com opportuniry inSilicon Valley. Chemoil just thisyear has already taken in threegraduates from AIM, We'vesponsored their papers and weexpect a lot this year, and theyears to come.

Another target would bethe network build-up. !0e'replanning to link our web sitewith all the sires around the

o,/

number of activities that we'vecarried out. First, we always con-sider important people l ikethose from the Malaysian gov-ernment. \i?e've had consulta-tions with them and we havesome idea on what the clubshould do, like be able to con-

tribure to soci-ery In fact, thenecess i ty tomake a contri-bution to soci-e ry must begreat ifthe clubwants to be rec-ognized.

The otheractivity is theannual dinner,which is goodbecause itt nor-mally easy to or-gan ize annua ldinners that wecouple with lec-tures. Last yeatwe invited theMinister of En-ergl Commu-n ica t ions andMarketing Me-dia. He talked

about communication and mar-keting media and the role ofeach in shaping our economyand culrure and it rurned out to

be an engaging dialogue. Theimportant part of the annualgeneral meeting is the netlvork-ing we brganized. Normally,

people at the top are avid golf-ers so we organize golf eventsoften and attract a good num-ber of them. The problem is

how to get them to stay oncerhey are with us.

Our activities also includesupponing AIM iaell In Ma-laysia, the Institute conductedEMBAfor the second time, andthe club is trying hard to mar-ket the program to assist AIMin getting a consistent numberof parricipants. We have also

assisted AIM in marketing otherprograms, and in this respect,the relationship between theAIM rep and the AIM club is

definitely close. We are actuallyhoused in the AIM Rep Oficeard its staff is also the staff ofthe AIM Club of Malaysia

'W'e are also setting up a web

site to house the database ofhuman resources in Malaysia.The idea is when people are try-ing to get good managers andgood leaders, theywill go to thehuman resource database.Therefore we hope the AIMMalaysia web site will automati-cally become one of the refer-ence points for them in seeking

world for the AIM alumni. In-

donesia is puning its own websirc. I ve heard batch 1998 hasirs own site, so what we need todo is have one main web site andconnect everlthing. Then there'sthe global database. Hopefullywe'll have the structure there,bur again we need the inputsbecause it's not that easy. I'm

sure everybody here who hastried to update his or her data-base knows what{ mean, Com-munity features are also goingto be there: email, bulletinboards,.job openings, job place-ments. There will be added fea-

tures like enabling alumni topost their resum6s and ads.

Datuk Ir. Mohd Annas HJ.Noq Malaysia: Malaysia has4,000 alumni. The members ofthe club reach about 300, whichis still not a very high percent-age. Like any other ofthe clubs,we have dificulry to enroll mostof the alumni. Notwithstanding,we believe theAIM Club popu-ladon is quite active.

'Ve have a

68

good managers, \(e hope to dothat by next year. The one thingthat constrains us is money, sowe are looking for ways to putup the site and maintain it forfree. That is the reason we arelooking for orher databases thatwould like to house our site.

Bimal Chapagain, Nepal: Thisis the third year of the AIMNepal chapter's establishmentunder the FAIM affiliation. Al-though rhe Nepalese came toAIM as early as 1975 to acquirethe highest levels of manage-ment learning, the formation ofthe AIM Alumni AssociationNepal took place only in 1997 .The AIM Alumni AssociationNepal is registered under theministry of home affairs, thegovernment of Nepal, as re-quired by the law ofthe land.

A seven-member executivecommittee meets as regularly aspossible (once every twomonths) and tries to implementactivities of common interest.The dissemination of AIM'sprogram-related information(both degree and non-degree)has been one of the key activi-ties ofthe Nepal chapter. Infor-mation dissemination on theFuture Leaders Circle has been,for example, one ofthe promo-tional activities carried out bythe association. More than 200interested candidates were indi-vidually informed about theprogram and application pro-ces,eirher through personal dis-cusslons, telepnone conversa-tions, or emails.

The AIM Nepal Represen-rative Office, established in1998 and directed by the chap-ter president, is the mediumAlM-related information dis-semination in Nepal. Applica-tion materials are being pro-vided ftom here as well. We haveconducted several formal and

' informal interaction sessions

with the planners, policy mak-ers, administrators of the gov-ernment, NGOs, bilateral andmultilateral agencies regardingAIM programs, and thevalue ofeducating their people in these.Also, individuals who envisionan upward mobility in theirpro-fessions through enhanced skillsand capabilities are being in-formed about rhe Instirure. Veadvise them on arailing requiredrcsources so they could benefitfrom the opportunities at AIM.One individual has secured fam-ily support for required re-sources very recently and is com-ing to the Institute for MBMstudies this year.

'$l'e assist those who have

already heard of AIM but re-quire additional information/clarification, or need assistancein communicating with AIM.Those who have applied or areabout to apply to the Instituteand are to be examined and areassisred by the Nepa.l examina-tion center,

Despire efforts being madeby some alumni it has been dif-ficult to attract many graduatesro the association. V'e are devel-oping an updated database ofAIM graduates, which is not re-ally moving well due to the lackof response from them. In thearailable list ofNepdese gradu-ates from AIM, there are about150 names registered. Howwer,at present we are able to contactonly 60 people. Although thereis some information base in thelist, due to changes in job, re-tirement or migration elsewhere,it has been extremely difficult tolocate and bring many ofthemunder the umbrella of theAlumni Association. Even theinterested group ofits memberscannot participate in chaprermeetings because they are scat-tered in various places in thecountry (due to their profes-sional requirements). Since it is

a mountainous country mobil-iry in Nepal is still rather diffi-cult and communicationconstinues to be aproblem. Mostmembers are still not reachableby email. Nevenheless, we knowrhis whole endeavor is no holi-day and so we continue our €f-forts to r6ach out, touch bases,and support each other. I

DIRECTORY

Christopher Lin Jih-FungBMP 1977Chief Knowledge OfficerPrice Waterhouse Coopers2/F, International Tiade Bldg.333 Keelung Road,Section 1, tipei, Thiwan,ROQ

^fel: (88 6 -2) 27 29 6 666Fax: (886-2) 27576371127576372Enail: ch isjpemail. gen. net. tu

Mohan Madhav lhadkeMM 1980Vice President -

Business DevelopmentBallarpur Industries Limited

Thapar House, 124 Janpath,New Delhi, IndiaTel: (9r-rt) 3368332| 3368811 | 3368902Fax: (91-ll) 3368729Res-GI:6857610EnaiI: mp h adh e @ b i b. c o mot m4hadhe@wnl.com

Leonard TanubrataMBM 1977ChairmanFAIMAA Indonesia ChapterFAIMAA Secretariat OfficeRoom 254, Sahid Jaya Hoteland Tower, Jalan Sudirman 86

Jakarta, Indonesia^fel: (6221) 5702305Fax: (6221) 5702306Email: j kttep@indo. net. i.d

. Suk Jae fceMBM 1975PresidentData Mew Company, LimitedU-l 106, 1698-3, Seocho-Dong,Seocho-Kum Seoul, Korea^fel: (82-2) 5218696Fax: (82-2) 34864222Email; c o n t ac t @ da tau i aa. c o. h r

69

mail your notes to F tam@aim.edu.ph

Rene MartinezMM 1996President

J. Morsem Croup

738 MJG Bldg.,Aurora BIvd. CornerBalete Drive, Quezon CiryPhilippines^lel: (632) 9250668Fax: (632) 9250675Ernail: res a m ar @ p w o r ld, n e t. P b

Lucius K.P. LaiMBM 1980Senior AdviserVocational Tiaining CouncilThe Management DeveloPment

Center ofHong KongI I /F VTC Tower,27 Wood Road,'!?an

Chai, Hong Kong-lel; (852\ 2836128Fa-r: (852) 25727130Enail: luciuslai@utc. edu,p h

Milon B. PaulMM 1988Deputy Executive DirectorPopulation Services andTiaining Center103 New Circular RoadDhaka, 1217 BangladeshTel: (880-2) 842569Fax: (880-2) 8322568Email: ps tc@ b angla. n et

Dr. Gan Cheong EngMBM 1982Associate ProfessorSchool ofBuilding &Real EstateNUS, Kent Ridge Crescent,Singapore 119260Tel: (65) 8743424Fax: (65) 7755502Email: bemgance@nus. edu. sg

Robert V ChandranMBM 1974PresidentChemoil CorporationEmbarcadero Center

70

Suite 1800, San Francisco,cA 94l l, U.S.A.Tel: (415) 2682700Fax: (415) 2682701Enall: RVC@mex. ch e mo i L com

Datuk IR. Mohd AnnasHJ. Nor, MM 1984Director GeneralDepartment of Electricityand Gas Supply

20lF, PVTC Bldg.,

Jalan Tirn Ismail

504 Kuala Lumpur,MalaysiaTel: (o3) 2323777Fax: (03) 2329776Emajl. a imma lay s ia@ P dj a i n g my

Bimal ChapagainMDM 1996

AIM Association - NepalGPO, Box 11918,Kathmandu, NepalTel: (9771) 47 1583Fax: (977l) 434433Email:c h a b ima l@w I i n h. com. nP

or phc.mm@undp.org

,4.-4.,,4

lo*-,a

'44,'J

-a-4

.*',r:^kr#*.$r'I"t""'--W .^".".)11..:;

WHAT'S IN A NAME?

lau';"l"""ws',^

'; ^{*:;1*$:$;f;qt:&? _,__*$*1*T.l',ffi"'"*$,it,ii$ffi,,;;,:.r:^:r$ " ", LT":;!,::"'xffi.*nggg6s,gr*

"*dl''s:i...$''I$tr$"r*"\r$g;Ji;"';

ggsl'

Q&A: NOTA DULL MOMENTRINAAZCUNAMBM'96Piltel, 9/F Bankers Ctr 6764Ayala Ave., Makati City.Emasl:arutzranz @p i be I rct p h

T){M: Vhat's your line ofbusiness now and how longyou ve been in it?

AZCUNA: Seven years intelecommunications.

TllM: !7hy are you in thisbusiness?

AZCUNA: It's one of themost dynamic industr iesworldwide and is in the pro-cess of converging with otherinteresting industries as wellsuch as computers - infor-mation technology - and themost powerfu I technologicalinnovation of the last cen-rury: television.

T?{M: rifhat do you like bestabout your business, andwhat do you feel you havedone best in this field?

AZCUNA: There isnt a bor-ing day in this business. Hereas nowhere else in main-stream 'society is change theinescapable constant. Youalways have to be on yourtoes or you will be left be-hind.

TAM: \X/hat does your busi-ness need that AIM alumnimight be able to supply?

AZCUNA: Potential sub-scribers who will use ourcommunication services.Potential tie-ups with ser-vices that may be compli-mentary with those we of-fer.

Tl{M: -{4rat could you sup-ply as a service or productto AIM alumni?

AZCUNA: Vireless com-munication services. It'swhere the action is.

Tl{M: $Vhat Asian trair doyou feel meets the challengesof business in the new cen-rury?

AZCUNA; Our talent to-wards the technica.l. Some ofthe best programmers areAsians. Since the new cen-tury will signifi cantly evolve

around computers, this willbe a great advantage.

Ti{M: $7hat good has theinternet done to you lately?

AZCUNA: Oh, just keep-ing everyone in the loop viae-mail. Sometimes I catchmyself tiking for granted.The bother it has saved me,that is, and the ease it hastaken off the informationloid when just ten years agoI would have been laboringover still.

TAM: Did the cradle-to-grave model of employmentdie ofnatural causes or is itjust on leave, waiting for thegood times to return?

AZCUNA: In this period ofglobal competitiveness, Idoubt if it will ever return.

T){M: r{/lrat would the ben-efits be, for you as a man-ager, of an Asian monetaryunion?

AZCUNA: Bet ter pay?Philippine managers are oneofthe lowest paid in the re-gion (given the same quali-fications and work respon-sibilities).

ThM: How do you imag-ine the business you are innow to be coming along,had you not enro l led inAIM?

AZCUNA: It would comea.long just fine, but I mostlikely be involved more onthe customer service side ofthe business rather than themarketing.

TAM: Does the power tohire and fire appeal to you?

AZCUNA: No.

TAM: Outside AIM, howfar have you taken the ideaof tapping non-manage-ment school concepts andpractices as resource formanagerial skills develop-ment, for instance theatrear$?

AZCUNA: I personally usesports to help develop team-work and strategy formula-tion. My company, on theother hand, still tends to usetraditional methods. Bothhave relevant strengths to

Intrcl";ng

7I

offer the manager, but he/

she has to want to try it.

TAM: How do you feel

about the statem€nt "EYery

nation gets the governmentit deserves."

TAM: rVho is your favoriteAIM professor?

AZCUNA: Mel Salazar.

Tl{M: Your favorite subjectsas an AIM student?

TAM: Please finish the fol-

Iowing sentences-----t) Money is...not everything2) Success is . . .hard toachieve but is well wofth theeffort3)Work is...not somethingthat should take up all yourtime.

4) Fami ly is . . .not to be

taken for granted.

5) The future is...very excit-ing6)The Asian manager (the

Person,not the magazine)is...someone who will bemore apPreciared in thecomlng years. IAZCUNA: To some degree, MCUNA: GM and SUPR

the people do have to

take responsibility forthe people they put intopower. But just as well,the people in power doneed to learn the valueofthe role given to themby the people.

Ti{M: 'i{4rat is the mostenduring knowledge orphilosophy do you feelAIM bequeathed toyou?

AZCUNA: Thinkingon a larger scale - be it

thinking out ofthe boxor thinking globally.

TAM: \7hat manage-ment education con-cept, belief or theoryhave you since provenright or wrong throughac a.l practice?

AZCUNA: Never besatisfied with the status

quo (Sources and Usesof Power, c/o CaptainLim)

TAM: Above all else, anAIM educat ion has

given you what?

AZCUNA: The value ofbelieving that hard workwill get you what youwant.72

WHERE ARE YOU? @Name MBM Year Last Known Base

Raul Roxas Leveriza Jr.Pramod Kumar PandoyGualkerto Senano MorcoEduardo Shinn EnriquezMariano Tabuena Katipunan Jr.Ting-Min LinMoises Sanchez MillenaQuintin Agra PalileoPatnam Shivashankar RaoAugustine Yoke Chaw SohAlfredo Villavicente TinioJack Wong LokePedro Flores YlaganMa. Socono Castillo Palma-GilMabini Lata DizonFred C-L. LiuAida Mijares-MondiguingAlexander Aguado PatricioAmitabha PaulAntonio Castillo RosalesJesus Sainz BinamiraGloria Juana P Crisostomo .Jane Huang WeiSudhir Vasant RisbudPi Sek Sook San Sing KeoYong Kong TiongMukesh Harkishin GidwaniRoseanne llchon-GonzalesCeferino Gonzales LaudeFemando Roxas Santico Jr.Dinesh Kumar SrivastavaEvelyn Viado CreenciaNeon Diwa EbuenReynaldo Linao RobertoDeepak ShwklaAlex Douglas Triyana

MBM 1974MBM 1974MBM 1974MBM 1975MBM 1975MBM 1975MBM 1975MBM 1975MBM 1975MBM 1975MBM 1975MBM 1975MBM 1975MBM 1976MBM 1976MBM 1976MBM 1976MBM 1976MBM 1976MBM 1976MBM 1976MBM 1977MBM 1977MBM 1977MBM 1977MBM 1977MBM 1978MBM ,1978

MBM 1978MBM 1978MBM ,1979

MBM 1979MBM 1979MBM 1979MBful '1979

MBM 1979

U.S.A.SwitzerlandUnknownUnknownPhilippinesTaiwan, ROCAustraliaUnknownlndiaSingaporeCanadaMalaysiaUnknownU.S.A.UnknownUnknownPhilippinesPhilippinesUnknownUnknownUnknownu.s.A.Taiwan, ROCPhilippinesUnknownMalaysiaPhilippinesPhilippinesUnknownUnknownPhilippinesu.s.A.PhilippinesCanadaPhilippineslndonesia

CHIEF OF POLICEOn behalf of CFOs euerytubere

I h",re yet to meet anyone outside the Finance department who will actually

confess to afFection for the fellow who controls the purse. Respect or aPprecia-

tion, maybe . But when was the last meeting you were in when the President

asked you to give the Finance department a big hand? Not even his boss likes

to see him ... he is too often the bearer ofbad tidings.

Are you surprised? Of course not! We are, after all, talking about that

execudve whose fayorite word is "no." The one who demands a dozen Presen-tations of your business plan before he approves the budget - and then, you

still have to re-defend every single expenditure following the approved bud-

get!!

And those rulesllll rifho makes them up? Sometimes, I figure Finance peoplejust enjoy watching us run around in circles.

Maybe we iust need to understand this animal called Finance?

Beware of littlz expenses; d small leah uill sinh a geat ship. - Bnjamin Franklin

The first commandment ofFinance is to keep the ship ofthe firm afloat.

Everything else is secondary. Afirr all, the promise of a jackpot in year five is

useless ifyou cant survive to next year.

Most people in Finance are extremely risk-averse. They will scrutinize

your plans for the tiniest loopholes. You just need to learn the language' Ifyou

speak about risk, you must follow with how you are mitigating that risk' If

you talk about threats, you need to follow through with your cont;ngency

plans. $Vhen in Rome. ...

Financial sense is hnouing that certain nen uill promise to d'o certain things,'and

fail. - Ed Houe

And, even when all the bases seem to be covered, you STILL get a reiec-

tion! The unfonunate thing about plans is that Finance types are pagan -

nothing is taken on faith. A track record ofsuccess can go a long way to short-

circuiting the approval process. Too new? Botrow someone else's track record- ger a supPorrer.

Have you

huggedyour

ChiefFinancialOfficertoday?

73

I uorry uhen a busines phn\ onb strateg! flr fnding custlmers reads: "$400,000 for

ad.aertising " - Mark H. McCormach

You do need to have a story behind those numbers. Too many PeoPIe throw

money at a problem without any real plan. And your CFO probably had a ringside

seat at every one ofthose fiascoes. He is certainly not going to want to be blamed for

another disaster.

Do your homework before you push your numbers.

h is always sound busines to uhe any obtainable na gain, at dn! cost and 4t an! isk to

the rest of the community - Thornstein Veblzn

The second commandment of Finance is to achieve a gain You need to know

how your company d€fines gain. Some use net income. Some use return on equiry

Some use economic profit - the excess ofnet income over cost ofcapital. t*4ratever

that is, that's what your CFO is looking for.

Some people thinh numbers mereb reflect realiry.. . but we belieue that numbers create

reality. - Scott Ada.mt

I know it sounds strange, but Finance types tend to worship numbers. That's

because they're about the only thing almost guaranteed to clarifr thinking and guide

decision making. You know the old saying - what gets m€asured gets managed.

Know what your firm measures. Make sure you know how those key measures

are affected by your plan - thatt 80 percent of the approval game.

Authoriry is no stronger than the man uho uields it. - Dolores E. McGuire

He's no angel. You see, good guy; ger rrampled. In the world of money, a certain

level of fear and apprehension is deemed healthy. Don't worry too much - a lot of

that is playacting. But dont let him know that you can see through him - you do

need to appreciate the effort. It's especially important for you to keep the fear alive

among your own subordinates - he'll see it as teamwork.

h turns out the corplrate phihso?b! is a uery flexib/z dtcunent. - Scott Adoms

If you can play by the Finance rules, you can even be a member of that very

private club that actually get to work outside the rules . . .. sometimes.

After all, at the end ofthe day, aren't we all in this for the money???

Gadfly is a real manager with real obsertations about real companies. To giae him yur

own reali4t check, sencl rnail to: gadfly-aimph@yahoo.com

ln the worldof money,

a certain levelof fear and

apprehensionis deemed

healthy

/ +

Asian management with a global perspective