The Asian Manager, January 1997 Issue by Sherbet Manalili

1997 JANUARY-FEBRUARY S U B S C RB E R ' SC O P Y

r','-t';NI{EAS IAN

A/IANAGER

. Learning f rom Winners in Hong Kong, Indonesia, Malaysia, Philippines, Singapore, and Thailand - Zen in The Art of Awards Management

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SAIM TheAsianManaget A Publication of theAsianIn stituteof Managem€nt with lhe Federation of Asian Instituteoi Management AlumniClubs. Intemet Addrcss: tam@aim.edu.ph Copyrjghto 19q7 TheAsianManager All rights feseNed.Repfoduction in any mannerin whole prohib' or in part in EngLish or otherlanguages Ited. TheAsianManagerispublishedbi monthly by the AsianInstituteof Management. EditoriaL andAdvertislngOffice:AsianInstituteof Manage m e n r ,I L g e n i o L o p e zF o u n d a t . o nl o. , e p hR . McMickingCampus,123Paseo de Roxas, Makati City,Philippines. Ter 1632)892 4011-25;892 043543; 8933341Fax:(632)817 9240.Photo graphssourced by the AIM Library. Pfintedby TjmesPrintersPte.Ltd.,Singapore TheAsianManagetMI'l/\(P)196,/10,/95 KDNPP(S) I076./3./93 ISSN 0 1 1 67 7 9 0 EditorialBoard JesusG. Gallegos, Jr, ReneI Domingo,VictofS. Limlingan. Paoic:a I . Lonro(.Edudrdo A. \,4orar6. l,ehokK. Nath Editorial Department PatriciaL. Lontoc,EditorinChief Ma. Teresita MartinPalo,ManagingEdjtor Associate Ediro. JudithAngelaE.A-lpay, Ricardo A. Lim, Contributing EdiIof Editodal Production AmyC. Espiritu,Research, DesignandProducuon Officer-in.Charge FrancoM. Pahiarca, DesignandProductjon Consultant BusinessDepartment FelipeB. Alfonso,Publisher PatriciaL..Lontoc,Co.Publishel Millie C. Ferrer,Directorfor Opefations and Circulation MariorieY Polador, MarketingOfficer Van€ssa M. Jaballas, Advertising Assistant EdenS.Cardenas, Circulation l,ssistant MEDIA REPRESENTATIVEOFFICES Philippines:DeliaGutierez,Far {632)894 4809; AlumniAssociation of AIM, lnc., Fax{6321893 7408 Hong Kong:Pamela Choy,Fax{852)834 5980 Singapore:TeddyTan,Fax165)440 8760 lndonesia:RamaSlamet,Fax.1622ll799 2A90, 797 3784 Malaysia:ConnieNg,Fax(6031717 5370 India Sub-ContinentMediaSoufttuia 1P)Ltd., Fax\9771)227336 Pakistan:S.l.Salahuddin, Fax19221)5682271 Korea:Y K. Chun,Fax18l3)3582.9104 Fax1813) 35829104 Japan:TokujiNiinuma, Thailand:Dr AnthonySharma, Fax(66213319303 United Kingdom:BrianTaplinAssociates, Fax10442) 246 034 France:St€phane de Rdmusat, Fax(331)39896341

TI{EASIAN

A/IANAGER VOL.X, NO- 1

, FEBRUARY I997 JANUARY

The 6th ManagementAwards of Asia: I€aming ftom the Winners byJudithAngelaE. Alpay,rAM

Zen in the Art of Awards Management byPrafessorMa. Milagros T Garcia,AtM

Migation Issuesin APEC:HRD for ManagementExcellence byPrafessorNievesR. ConJesotArM APEC and AIM: CruisingTides of Globalization byPro;fessor EtsuInaba,nu TrailblazingBusinessResearch: On Coursetowards the APECCommunity byDr FedeicoM. Macaranas, 1QQ6 APECSOM Chair

APECWithoutTears:NGOs'Callfor ParticipationandTransparency by ProfessorChito B. Salazar;,tru, with Marianne Carandang,and CelesteLecarcz,wspF

HobnobbingamongExemplars byJudlth AngelaE. Alpay,rAM

A Casein Poinl A Job for RubenSantos by PrcJessorGlo a 5. Chan,uu

Gems of Communication:SevenDeadlyCommunicationVices byProfessorMa. Milagrcs T Garcia,uu

Entrepreneur'sCorner: Meeting the Challenge byRobertV Chandran, MBM'74

,.,APEC,StrategicPositioningand 55 + I

1997 | TheAsianManaget 3 January-February

SAIM BOARDOFGOVERNORS Cbairmen Mr. warhincron SlCrp. fo,,lde,. Ihe SGv Croup Mr. JoseL.auri'a. Jr.,P'.\ident & CEO PhilamlifeInsuranceCompany Members Australio Dr Brian W. Scott, Craizda" ManagementFrontiers Ply. Lid. Baunei I)arussakm Mt.Timorhy Ona.Manasinp Director NationalIniuranie Comiani, Inc. Canada Mr. CedricE. Rirchi€,O.C.,CoryorateDin.toa Fonncl Chairnnn and CEO,TheBank of Nova Scoria Hongkong Dr The Hon. David K.P Li, Depua^Chaimnn anl CEO The Bank ofEast Asia. Ltd. Mr. Jack Tans. P/srdefl, TristateHoldingsLrd. Indla Dt. I^EdishPar.kh,Mdndqins Dirccbr L c e a n dM u i r h e a d( l n d i a )P ! t . L r d . Mt. Rat^n'l ata. Chai tma n TataIndusrries,Lrd. Indonesia Drs. RachmafSaleh.Prcrident Conmissionel Bank Muamalat Mr HaroenAl Rasjid.Cn,irnan oI the Boanl ofConnb. rioneruPT. CaltexPacificIndonesia Japan M. Reiiiro Hattori. Crai.r/r,r Hattori ,SeikoCo. I-td Mr Yotaro Kobayashi, Cl,aimd, Fuii-XeroxCo. Ltd. Mslaysia Tan Sri Dato' Dr Lin See-yan.Chaiman anl CEO Pacific Bank Bhd. Tan Sri Dato' SeriAhmad Sa4i Bin AMul Hamid PermodelanNasionalBhd. Phil!ppin€s_ Nlt. rreotae ly. ahatrmanatd (l:o MerroDolitan Bank & TrusrComoan! Mr. Andre\ SorianoIIl, C/l.? imai ol the Board & CL.O SanMiguel Corporation Republic of China Hon. WansChren-Shien. t€?iildrur t egrslarorauanof Republic;t Chrna Mi Sr^n Shih. Chaiman an l CEO The Acer Group Singaporr Mr.Boon Yoon Chrang.Chdimdn and Mmasins Dtu tor (S' n:ga pore) Lrd. JardineN4atheson Mr. Lua ChenAEnA.Dpru^ Chairnan & CEO NeptuneOriedt Lries South Korca Mr Pyong-HwoiKoo, Craifta" Lucky-Coldsbr IntemationalCorp andthe KoreaForeign Tradd Associatbn Dr Duk-Choong Knn. trecutire Counselor DaewooCompany,Ltd. Thailand Mr Viroi Phutrakul.ErecutiveChaiman BoonrawdAsia Co. Ltd. Dr. tunnuav Viravan.D?rud Prine Mtnstel Govemmerirot Tha,land

u.lc

Mr. David K. Newbiesins.Cldirnan tqulta\ Holdrngs,Ltd.

u.s.A.

Mr. William S. Anderson.Retire.lChairmanofthe Boad NCR Corporation Mr Mark B. Fuller. CtO MonitorCornpany Alumni Repr€s€ntative Mr Robert V Chandran. P/erd?nr ChemoilCorpomtion.U.S.A.

TheAsianManagerJanuary.February 1997

TAMin Transition Thankyou,RAL. When Professor Ricardo"fuclry"A. Lim, RAL to us, cameon board TAMin I q94,thenagazinewasreadyfor a "renovation." Thishe did with the gustoof a buiider.He engineered the lookof the magazine to rcflectits mission.Thecoverpagehe designed featuredfoursquares within a square expressing solidcommitmentof the magazine to providecontinuingeducation in management. painted The coiorshe highlightedthe academic substanceof theedito als.Thebluepdnts of thethemeshe mappedoutshowed hisenthusiasm for boththevedtiesandthevogue.Thelanguage he crafted, youthfuland adventurous. Over 13 issues,Sir Rickydug in to build the foundationfor TAM. And so.lookingback,the TAMstaffhasLhisto say: Youare thefoundation, unseenin lts stabilttyand strength. I,yhaLrisesaboveit the visiblestructure-is beautiful astheJoundationundemeathit is strong.

Welcome,PLL.

Professor Patricia"Patt"L. Lontoc,PLLto us, comesinto TAM ready galvanizing to buildon RALSfoundation, everyone to producea magazine for the active,dynamic,competent, forwardlooking, change-ftiendly, manager'leader readers of TAM.Herfirstsuggestion became thestaff'scollective decision: to produceanelectonicMicrosoftWord.readable TAMsupplement on APECin two weeks,in timefor specialdistributionto APECministers and delegates attendingthe EconomicLeadersMeetingin Manilain November1q96.Thecoverpage,buildingon the EditorialBoard'sguidance to showpeople,becameanotherstaffbrainstorming effortwith her,spotlighting Dr. the Hon. DavidK. P Li, AIM'SGovernorbasedin HongKong,an economyexperiencing sociopolitical transition, handingoutthefragileManagement Awardof Asiatrophyto rccognizeexcellence amidstvicissitudes of globaltransformations, settingthe tonefor issuesto come. Lookingahead,the TAM staffhasthisto say: Youare the structure that ises abovetheJoundation. Toyour imageandyoutfulfllment are our pledgesto beyout plllars oJcommitment, windowsoJcreativity, doots of dynamism, wallsof comDetence. All theseunder a roof of inspiredvisian. | ,--)

061"/fu/1;-

MigrationIssues in APEC:HttD for Management Excellence Thetime is at handwhengovernments look to thelr humanresources as the reservoirof thetrcompetitiveadvantage: but how doyou turn an economy'sbratn-and-brawn drain into the region'srenaissance gain? The Context d e v e l o p r e g i o n a lc o o p e r a n o m i c a n d s o c i a lw e l l - b e i n g Begunin 1989asaninformaldialogue t i o n i n h i g h e r e d u c a ti o n . of our people. Such efforts groupwith limitedparticipation, Asia-Pas t u d y k e y c u l t u r a la n d i n t e l will also facilitatethe groMh (APEC)has cificEconomic Cooperation l e c t u a le x c h a n g e s e , nh a n c e oftrade and investmentin the to become the buzzword of the l a b o r m o b i l i t y , a n d f o s t e r u n Asia Pacificregion. $own PacificCentury the primaryvehjclefor d e r s t a n d i n go f t h e d i v e r s i t y promotingtradeand practicaleconomic o f o u r r e g i o n .W e a r e t o e s programsin this area Cooperation cooperation in theregion now themost t a b l i s ha n A P E Cb u s i n e s sv o l coverexpandedHRDsuchas education powerfuland dlnamicregionin theworld. u n t e e rp r o g r a m t o p r o m o t e andtIlaining, especially improving manageWith an increasing shareof the world's c o o p e r a t i o na m o n g u s i n t h e mentandtechnical skills,thedevelopment tradeat morethan 50% and with trade a r e a so f h u m a n s k i l l sa n d ofAPECstudycenters, cooperadon in sci am0ngmember-economies accountingfor t e c hn i qu e s . enceandtechnology includingtechnology 7 I o"o"totalrraoe, APECremains Lhefasr r r a r s r em t e a s u l east m e 0a ' p r 0 n o u n g estgrowingregionaleconomyof the decIn 1994,theAPECLeaders' Declara, small-and mediumscaleenterprises and ade.By year2020,it is projecred that tion of CommonResoive in Bogotlndo- stepsto improveeconomic inffastructure, sevenourof the len ldrgpst economies in nesiafirmly enshrined the concernfor teiecommunication, andtourism, to con t h e w o r l dw i l l c o m ei r o m r h i sr e g i o n . HRD: tdbute to sustainable development. namely, China,USA,Japan, Indonesia, Re. ln the 1996Leaders' Forum,APEC publicof Korea,Thaiiand, and Chinese Our objectiveto intensifydechair and PhilippinePresidentFidelV. Taipei. v e l o p m e n t c o o p e r a ti o n Ramosfurtheradvanced the recognition I t w a si n t h e l o oJ L e a o e rM s eerirg among the community of of the concept of internationally shared i n B l a k Iesa n oS , e a L ltinea rt h ee c o n o m i c A s i a P a c i f i ce c o n o m i e sw i l l lesources.and the extensionof national visionstatementincludeda commitment e n a b l eu s t o d e v e l o pm o r e treatmentin GATT/WTOto HumanRe, to HumanResources (HRD) Development e f f e c t i v e l yt h e h u m a n a n d (HRl,whichhadearlier sources beenconasamongthecornerstone objectives of the natural resourcesof the Asia t a i n e di n t h eA n n e xr ot h el 0 Q 4D e c l a r a cooperation: Pacific region to attain sustion: tainablegrovvthand equitable W e a g r e et o m a k e a n i n v e s t developmentof APECecono1 .J u s t a sA P E Ci n t e r d e p e n d ment in our future generam i e s w h i l e r e d u c i n ge c o ence is basedon sharingof t i o n s b y e s t a b l i s hi n g a n n o m i c d i s p a r i t i e sa m o n g c a p i t al . n a t u r a l r e s o u r c e sa, n d A P E Ce du c a t i o np r o g r a mt o them and improvingthe ecointellectual property rights, so 1997 January-February

lhe AsianManaget 5

too must HR be shared. 2 . C o n t i n u o u sa n d r a t i o n a l u p g r a d i n go f H R w i l l p u t a l l A P E C e c o n o m i e si n a h i g h e r e c o n o m i cd e v e l o p m e n tl e v e l . 3 . T h e d y n a m i cc o m p a r a t i v e a d v a n t a g ei n H R i s b a s e d o n e d u c a t i o na n d t r a i n i n g .T h e s e r e s o u r c e s m u s t b e a f f or d e d opportunitiesto realizetheir full potential. 4. HR must be assured pro' t e c t i o n i n t h e i r p u r s u i to f h i g h ' e s t r e t u r n s ,j u s t l i k e c a p i t a l , natural resources,and intellectual property rights.Needlessto say,this protection will respect t h e l a w s a n d r e g u l a t i o n sp r e v a i l i n g i n t h e c o u n t r yo f o p e r a uon. 5. HR deservethe protection to which they are entitledas persons imbued with dignity and basic rights.

andnaturalresources. ta], technology, topman' At thelevelof corporations, tiat HRshouldbedriving agersrecognize stategy,not reactingt0 it. corporate At the levelof nations-both devel' opedanddeveloping-thetimeis now at lookto theirHR handwhengovernments advan' asthe sourceof their competitive promotingandenriching tage,proactively it.

Seedsof ManagementExcellence economies Developing anddeveloped of in the regionhavenotedfour aspects HRin laborproductivityin EastAsiande' andhard-workveiopment: {1Jdisciplined r2l high levelof enuepre' ing workJorce: of humancapital neurship;(3)deepening througheducationand training;and (4) ratefof women. dsingparticipation In the lastdecadealone,manyof the in mostpronounced region'seconomies, the two tiers of Newly Industrializing (NlCs),haveestablished special Countries lundsandspecialeducationandtraining of an HRD systemsto respondto positivepressure declaration Theministerial later ftom the gowing needfor moresophistiwas translated in framework Jakarta program cated,skilledmanpower.In some,ecoaction a more detailed into through wasachieved nomic development note of seven It took adoptedin Osaka. low-wage large, relatively unskilled and a as leaders' developed sub-programs onesuse. Themoredeveloped ministers'initiatives.Indeed,the 1996 workJorce. "high performance" production (AELNll instead, Meeting Leaders APECEconomic technology. in Manilalaunchedthe LaborMarketIn' methodsaswell asadvanced "re-visited" of labor comparative advantage Thus, the the formationNetworkand "that increases due to wage costs is diminishing the development HRDDeclaration techandprotectionof HR not oniy is an area in all countriesaswell asincreaised countdes. nology in othef for economicand technicalcooperation andopportu' All of thedevelopments but aninstrumentfor tradeandinvesL'nent with people. to do nities have something facilitation." In manyAsiancounriestoday.a maior shiftis takingplacein viewingthetasksof People at the Core Market Information manpowerplanning. In .thepast-upto The APEC-Labor wason laboraba computer'based theeightjes-theemphasis Network{APEC-LMI), workof unskilled isthe sorptionor utilization netlvorkamongmember'economies, poiicy linking makers talk of forum (viaInternetandin printedform) ers.Today, alldskillsdevef to shareand exchangeinformationon investnentsin education growth and stluctural policies. opment with labormarkettrends,prospects, inte$ate HR in the economyto and changes programs, and anallticaltechniques de' shifts in At core,thismajorprojectofthe supplywith changesand methods. De- mand-a human resourcedriven aPWorkingGroupon HumanResources velopment{HRD)of APEC,is aboutpeo' proach.Indeed,therelies seedsof man' aopmpnt pYaPllpnae ple. For the importanceof HRDin creat' ing and susuining$owth and develop' People on the Move justification In achievinginternationalcompeti' today.Tn menthardlyrequires rec0gnize countriesincreasingy the globaleconomyof our time,HRDhas tiveness, concems for that having a flexible and adaptive alongside risento centerstage to mate andkeep anduflizationofcapi worKorceis essential efficientdevelopment 6

TheAsianManager I Jaruary'February 1997

the gade. As regionaleconomicintegra' tjon propelsthe movemento[ people:inoeasingllberalizationand globalization will requirepeoplemobility,including by "liberating"polithosedisadvantaged cles. More ald more then, nationalemplo)'mentand economicplanswill need for to be "regional"in scope.Standards categories, of skills, skills the movement and commoncertificationsystemswill Rehaveto supportthispeoplemovement. gion-widefundingschemes will haveto collaboration be setup andcross-country ol HRDwill needto be in otheraspects intensified. these,APECeconomies Recognizing "aimedat adopteda work planfor HRD, preparing andpeopleto re' organizations mainproductivein the faceof national/ economic andtechnologiregional/gobal calchange." This goal incorporatesequiry as a concern,togetherMth the cross-cutting lmpli' focuson socialandenvironmental Underdevelopment. cationsof economic pinningthework planis astategytowards bettertrainlngin key economicsecto$. To rcalizethis, moreand bettertaining of labormarket priofitiesiequireanalysis tends, andneeds forecasts, adjusffnents in HRD. Peopleon the movemeansfine'tuning soclalreformsandeconomicchange. HRD Progam as Building Blocks for Excellence beginswith ensuringsub' Finetuning stantivesareon the ground.A stong state' ment of commil'nentto the Osakaaction programon HRDwas madeastheprogram of educatheimportance nowemphasized tion and trainingfor developlnga fledble comworKorce,an essential andadaptable gowtl. ponentin sustaining economic In brief,the actionprogramcalledfor: (1) Acceleration of work towardsmuto faof skillsqualiications tua.lrecognidon cilitaterationalandorderlyHR mobility; invest(2) Provisionof cross-member ment in the deliveryof educational seffices andskillstraining basedon the of pdnciplesto be agreed0n establishment andto beformedpartof bilateralald other in the mid' to lonS'term; agreements (3) Accelerationof labor market in HRD; analysis (4) Development of HRDfor SMES,

throughsuchmeasures like the APEC Centerfor Technology Exchangeand Trainingfor SMES{ACTETSME) as resourceinformationnetworking,short trainingopportunities, andtheslndication of technology transferprojects. Mutualrecognition of skills,cross membeteducational and traininginvest' ments,labormarketanalysis, HRD supportforSMES: whatcouldbebetterbuilding blocksfor management excellence? TheAPFC-eqnr hasa depnhLman capitalreseruoir: apopulation of morethan twobillionanda workforce oIdiverse ]evelsof skillsandtechnology. The keyis to taptheseenergies for theenhancement of theregions quantiq/andqualityof growth anddevelopment.

Philippines) aswell as the world'sthree l a r g e sdte s r i n a d ol n o sr p e r m a n e n r ' m n i gration(the US,Canada,andAustralial. APECalsoincludes economies whichbotir sendandhost foreignworkers.Thistran sitionperiodbroughtaboutby the economies'fastgrowthnow urgentlyneedsto be managed systematically.

ment amongsegments of their societies, who feelthatthepresence ofworkersflom anotherculturehasthreatened to "dilute" theirculture. Or the resentment mayadseamong segments of societyin a labor-sending economywho feelthathostcountries have oppressed theirwomen,their daughters, thejryoungmen,andhavebrokenuptheir TowardsA New, farnilies. TheFIorContemplacion c sisbeCommon Framework tween the Philippines and Singapore, -nrp. l^p-e arpin'-'ar'vpsar '\e bi. nearlytore the relationship of the two lateraland APEClevels,to supportand countiesinto shreds, erodingtheASEAN facilitatemobjlityof qualifiedpersons coreof APEC,hadit not beenmanaged throughthe sha ng of labormarketinfor- we]1. mationon skills,wages,andotherterms andc0ndjtions of employment. However, Migrants in APEC themorecriticalissueof governments coLet us look at the situationmore operatingtogether to manageandcope closely. Whoarethemi$ants?Whattlpes EmergingMigration Issues betterwith legalandillegalmovements of ofHRmoveacross borders? Today, noclear Whyis tiere an almosr palpable'eel- Iaboracrossborders,particularly in terms tlpologycanaccurately describe thequalingofextaordlnarycautionin somecoun- of protectionof mi$ant workers,hasnot ity of migrants.Unskilledor semiskilled triesand"over-eagerness" in othersto dis receivedthe sameattentionand action makeup maiorityof thesemigantsastley cussthe movementof humanresources commensurate to the problemsbrought searchforwage'paid activities. Skilledmi' across borders? Asmember-economies re- aboutbythissituation. Several economies, ganr workersareincreasingly becoming structure nationaleconomies, astheworld i n c l u d i n g t h e P h i l i p p i n e s ,h a v e a significant portionof theseflowsin the e c o n o moi cr d ear n di n l e r n a d o ndai vl i 5 i o n endeavored to raisethisissueof how best region,whethertheymoveasindividuals of laborundergoes continuingtransition it cantakecareof the skilledandthe un or as part of a company's"package"or wlth giobalization andliberalization ofthe skilled,the legaland the illegal,but the "contract."Highlyqualifiedprofessionals world, studiesin the regionhavemade resolulion cutsacross membeleconomies. and managershavealsoincreasingly strategic HRDanimperative. Politicalrisk It is not uncommon, for example, to movedacross borders. A smallbut signifi goupshavepredicted analysls majorlabor find TradeandFinanceMinistersat odds cant number of young workershave will be experlenced shortages by almost with Labor (especially where there are crossed bordersand differentlevelsof all member-economies in the nearfuture. strongunions)and Interioror HomeAJ- economies to upgrade theirskills,through godown,andinvestment fairsorJustice Astradebarriers Ministersat oddsin thedis' govemmentsponsorships, in foreignenllowsconLinue to moveacrossborders, cussionof foreignworkersin tlteir coun- 'erprises. wilh the end in viewof being privatize,HR will tdes.FortheTradeMinister,hisobjective a b s o r b e di n t o t h e h o s t c o u n t r y ' s and publicenterprises crossterritorialboundaries into multina is to ensurethatfactories continueto run worKorce,or with a sufficientamountof Lional andglobal corporare entides. legallv efficiently:foreignworkersare required funds.of beingaccepted asan entrepre or not, goingwherethe grassappears when the nationalsdo not wish to work neur willingandreadyto acceptemploygreener. Thus,ftomonepe$pective, itwlll in them.The LaborMinisterwill haveto ment of othernationals into new busi' looklikea newbrain-and-brawn drain.On facethe issueof managing a workforceof nesses. theorher. it promises cross.member brain diverseculturesand nationalitiesand TheAPECregionalsoincludes counand-brawn fenaissance. home-based workers'groupswho will re- rriesof smallpopulations fsuchasBrunei Sadlv, theissue ol inremational migra. senl "competition"fiom foreignworkers Darussalam or Malaysialwho arein need tionforemployment hasnotfiguredpromi f o r l o c a l j o b s , e s p e c i a i l w y h e n t h e of mi$antsfor thefull rangeof skills.The nently,andindeedhasbeenplayeddown economy is in recession. FortheInterior, US, Canada,and Australiahaveopened in APECdeliberadons on HR.Thisc.ips HomeAffairs,or rhe JusriceMinislers, theirborders fof specific skillsand,in many thewingsofcomparative advantage, at the their resentmentis generatedby their occasions! to dependents of workersfor nationalandAPEClevels. concernfor internalsecudty:a concentra- familyreunification. Yet,the issueof international miga' tionof a sizeable numberof expatriates With thefastrestructudng in asa result tion, whetherpermanentor temporary a particular industryor area.A newftame- of liberalization, deregulation, andglobaliprovides eachAPECmember-economy an workhasto bedeveloped in aworldwhere zation,evendeveloping countdesin the opportunityto balancewhat the future globalization hasnot beenpartof govem' regionhavefoundthemselves in a laborholdsandwhatthepastandpresenthave ment'smigrationvocabulades position until today. sending aswellaslabor.recejving told of "foreigners" who toil on theirsoil. Today,we seemember-economies- hostto an increasing numberof otherexAPECholdsthe world'stwo largest especially labor hostingcountries having patdates, evenbeforethey havereached labor'sending countries(Mexicoand the to resolvesuchconflich,includingresent- the pointof erasingtheirlaborsurpluses. 8

TheAsianManagerI January-February 1997

(ompetition must Since 1991, theentirePhilippines surrender tothefact. has been Mobiline Turf. Rightfrom the start,the battlefor Nationwide Coverage hasbeenwon. Mobilineis the only cellularphonecompany

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andensome18% enteringthe domestichousehold Within APEC,the fastest-growing230,000workers,comprising worse made South- of the worKorce.Sixteenyearsago,for- tertainers'categories laborflow is betlveendeveloping $ew, eastAsiaand industlialEastAsia.Most eignworkersnumberedonly 80,000ot sincesuchcategoesafe not coveredby primary aswellasillegal,work- 7.4%of he workforce.Most of these laborlawsnor aretheyaccorded areunskilled,legal jobs norms in which the status by the cultute or cerlain Kong, Tai workers are in the service from SoutheastAsia to Hong ers expe ence is wish thelr the land. But the Philippine labor locals do not to handle and./or wan,andJapan.Anothersignificant varyjng exone and is replicared in educational system no longer trains for. only steamiswithin ASEAN.Workersfromthe periences of migrantwomenin other Philippines areto befoundin bothMalayprofeseconomres. Trends and Threats: manage$and sia ald Singapore; Beyondlabor rights,human rights andThailand. HRD and Human Rights sionals moveinto Indonesia Whatis significant is, plays migration, rend to be abused. mosdy in For intra-Asian labor hostto Filipinos. Malaysia responses, both host and may well threats for human even ln remedial be the domesticservice;aswell asa million trends in itsplantations andotherag- rightspromotionandprotectionaslabor, sendingcountdesjointlyseekto prevent Indonesians is ffeated h , , m r n a v n l ^ i f r f i ^ n sodangerously, sosurreptitiously, riculturalareas. growth Theanatomyof exploitationis clearascommodities: of triangles occasionally The ernergence (l isheavilydetermined by est with the unbridledrecruitmentof suchasthe Indonesia-Mdaysia-Singapore ) migration propelled ,'th fo- demand, basicallyby national women:the impositionof high recrultlinkages Gro\ Triangleis expanding government decisions on the directionof ment costsfor a job abroadmay seem cusedinto oneareathatseeksto enhance thanlow wagesathome.Some ol member-counuies in fieir economic compeddveness $owth. srategicchoices acceptable "mix" of indusffiesto compete youngwomenaccept"legitimate" jobsbut rhe area. The EasrAsianGrowti Area asto the "sup' prostjtutjon whentheyarrivein endup in (Brunei,Indonesia, Malaysia, ard thePhil' ln, and the speedwith which the ippines)on the otherhand,mayaccom- ply" sideof laboris formedthroughedu- the host country becausethey did not exist to enplish,at a fasterrate,thissub-regional know any better. S),ndicates in- r d u u ' r d r r u u 4 r u r E , (21the increasein the flowslargely sureadequate supplyofsuchshofichanged tegration,givenworkermigrationrates. of the women.They are often delibelatelyreSouthKoreaandTaiwanhaveopened, followedthe rapidtransformation to ensuredocruitedftomthecountryside basis,their labormarkets econ0mles; in a graduated (3) someeconomies, undera spectreol suchas Korea cility and obedience, andfac' to chosenexpatriate construction policiesre- f o r r r n d n i i o ( ^ f d o h i wages, andJapan,have"amblvalent" toryworkersat initiallyregulated "opening" gardingthe entryof foreignlabor; Violenceagainstwomenmigrants The Iowerthanthe nadonals. (4)theliberalization regard- havenot only beenthroughabusefrom ofpolicies in Taiwan,Korea,andJapan,throughits Theyhavealsobecome tainee andrestrictiveimmigrationrules, ing theenlryof foreignworkershasmainly their employers. practices v/hich wasfosteredmainlyby inffeasinglabor beenpushedby theneedto be comped- victimsof socio-cultural thatale tive,whichrequiresa flexibleworKorce; inhibit free movementwithin the host shottagesin certainoccupations "ambivalence" in cer- country includingeventhe practiceof low-paying,hazadous,or dirty,dangerous, t5Jdueto the instances in the small- t a i n e c o n o m i e ism m i g r a t i opno l i c i e s , theirreligion.Therearerecorded and demanding,especially victimsof racialhostherehasbeenanincrease in theinfluxof of womenbecoming enterpdses. andmedium-scale countries haveconsid' illegallabor.Notethatthis"ambivalence" tility. Libor-receiving Violencecanbe condoned, if not acto wayofgovernment of foreignworkers. maybea deliberate elableconcentrations In Sinwithoutendan. tuallycarriedout,bygovernments. workers Forexample,in Japan,the foreignwork' allowin needed of legalsas geringits positionwith laborunionsor its gapore,the stateenforcesa policyof reers' communityis composed to take femaledomestjcs well asillegals:mole than 300,000pet- avowedpositionon securityandthe ex' quiringoverseas manentKoreanworke$,legaltemporary lstenceof unduly largecommunitiesof a s r a n d a r dp r e g n a n c tye s t e v e r ys i x nonths.In HongKong,domestichelpers professionals, tainees,workerswith stu- f6rpion wnrkar<.and (61thegrowingfeminizadon ofAsian areonly allowedto strayfor a maximum from South dent visas,ethnicJapanese in thePhilippines of fwo weeksto flnd a new employeror mothersor laborstreams, especially America,childrenofJapanese In othercountries, whereabouthalf of total elsefacedeporEdon. fathersfrom other countries.In Hong and Indonesia, and womenmigrantworke$aredetained Kong,some130,000ate Filipinohouse- miglantworkefsarewomen. Theshort-term contractemplolment deportedbeforethey are ableto file or holdhelpandsome60.000otherforeign employers. against abusive cases is a conuoversial aswellas complete nationalsareskilledworkersemployedas ofirsnadonals per- Inflexible immigationlawsandpoljcies anemodonal issuein rhePhilippines, technicians. thecycleofviolence.How TheRepubiic of SouthKoreahasdis- hapsmorethananyothercountryin L\e canperpetuate playedthe fastestmigrationtansitlon.In world, due to the rapid increasein the doesthisreconcilewith the APECprom' of exploitation andabuse in host iseof community? 1982,some200,000Koreansemi$ated incidence Highly-skilledlabor has grown treto Japan,rhe US,and othercounfies, counfiies.In the earlierwavesof women categories in- mendouslyin the pastyears.Thereis a basis. migration,occupational eitheron a temporary or permanent and steadyflow of Asiansto andfrom North Foulteenyearslatet Koreahas some cludeddoctorsandnurses,teachers, serviceworkersin big establishments.America,Australia,Europe,aswell asde100,000legalandillegalworkers. however,thenumberofwomen velopedeconomiesin Asia and Middle In Singapore, thereareapproximately Recently 10

Manager I January.February 1997 TheAsian

EastAsiawho informally tansfertechnolo. what prosperity is about? onlyan individualeconomy's responsibif giesandskillsandenrichrheeconomie5 We will seeadjustment of laws to ity but the region'saswell. they go to with their experiences. New respond to the"rea1 demand" ratherthan The call for harmonization of policy "tolerance" a n d b e t t e r ' p a y i nogp p o r t u n i t i easn d a wheregovernment tefuses andoccupational language which will fa. seruices haveemergedin the region.To to accepttherealityof its needfor more cilitateralionalallocationfor HRD on a getherwith the greaterflow of highly workersby ignoringtheir exlstence. Any actionto be Ja- regionalscaiebeckons: skilledlabor and professionals, this cat. pan and the [JS,for example,havead takento carryout the avowedob;ective egoryofworkerswill increase rapidly.But justedtheirimmigration rulesto aliowthe of HRD would be effectiveif a global thiswill not guarantee a humaneworking selective entryof necessary skillsoverpe andhumanistic approach is used."Gfowth environment. dodsof time. with equity" may be as much a conun, Experience in recentyearsseemsto It wouldbe best,to seemorelong- drum,asa modalityforAPECHRDwork, go againstconventional wisdomthat the termandtransparent planslor a multilat- if it is to be tlue to creatingthe futureit freerflow of goodsandservices will sub- eralresponse to the rapidrestructuring of haspledged. stitutefor the movements of laborwithin botheconomy anddivisionof laborasa FORFURTHER READING: I h e se c o n o m i eSst .u d i ei n) d i ( d treh a tt,o resultof globalization AbreraMangahas,A. "ViolenceagainstWomen andregionalization. Worken: A PhilippineRealityCheck." Papef a greatextent,the relationship between Prosperity alonecannotleadto manage, Migrant prcsentedat the Ixpefts Croup Meeiing on Vio]ence fteetraderegimes andrnigration flowsis mentexcellence, whosebottomIine,be- againstWomenJlligfanrWorkerstManila,27 3l May . complementary. yondprofit,is enrichingthe livesof peo. 1 9 9 6Amjad, R. 'lntemarionalLaborMigrationand hs p1e. lmplicalionsin The APECRegion. Papefpr€sentedar t h eR e g i o n a l C o n l e r eonicteh eS t u d y( i e n t e NN e r w o f k ProsperitysansExcellence? As hlghly-skilied workerscrossbor. 1 s1 0M a y 1 9 9 6. Giventhesetrends,demandfor labor ders,investment Levinson,,\,1. Ofl to \\brk.' Nev,sweeklocto. in upgrading laborsup bef 17,lgg,l ratherthan laborsurplusis propelling piy to meetdemand requirements necesSaith,A. EmigrarionPressufes and StJu.ruml migationwithin theregion.Re-allocating sarilyleadus to.theissueof cross-border( i h a n g F .I"L O / U N D PT S S l suchflowsafe demandsof restructured investments in education and training. P/ofcsso/ Corr&sor i|as Phil4+1inc S.(.retarVof intl E 41lov'nnr! ltct'on,sli, ioitd,ltU asi economies. Oneseesagrowingpreference Evenwhendeveloped economies telocate Lrbor S.tliot Ft!!i.t,t1t theAIM Washittg|ottSVCipPolicV amongeconomies, suchasJapanandthe I o a d e v e l o p i e ' t cFo n o n yo b e n p l ' t r o m F o r u t , t t a c l t i ' t !N r t - t i . i t l t u M B M n d M D M US, to move their plantsto lower,wage itseducated andhardworkin€ilabor force, lrogrnt s. This nrttl. is a txcrrpl fronr h.r forth bookon H ,talt Resourrusfl d fh. Dt1'et economies, wherethe laboracceptsthe the matterof ensuringa steadysupplyof 0conitry ] t n t f t t t n t l t l C r ) r r l , f l r l i t , i ' , r . s so f N f l t i o f i s n n d tlpe of work offeredby the plants.Is this suchlaborto theeconomies becomes rr0r

Frotn Actiwtg -based cositn{ to 7*ro-wm ghmes, we cc/uerthe range of topics CFOsneed to undetstand.

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APECandAIM: CruisingTides of Globalization AIM hopesto continueto contribute to mutualunderstanding amongAPECeconomtes resources. throughthe development of managerial wereratherunfamiliarwith. tanceofAPEChadbeenkeenlyfeltbythe Arother dilemmaAIM facedwasbe Ambassador. He arguedthat AIM'Sining called"nationallead institution" volvementin APECwould not diluteits amongother representatives to the net' regionalnature;insteadAIM'sexperience Asiawould wotks under the wofking group.While and reputationin Southeast AIM, sinceits establishment, considered bean addedvalueto both APECandthe It wasimportantforthe Philitselfas a regional(not nationalleduca- Philippines. primarilySouth- ippines roplayanactiverolein thisemerg. tionalinstitutioncovering initiatve. On the other eastAsia,the term "nationalleadinstitu- ing international tion" seemsto associate AIM only with hand,governmentbudgetconstraints of the rhe Philippines. might limit effectiveparticipation in APECinitiativesand AIM Thethird dilemmawasthatthethird Philippines APEC-HRD workinggroupmeetingdis- maybe in a betterposiilonto sharesome In 1991,thePhilipcussedthe possibleestablishment of the of its own resources. APECBusiness Schoolwhichmaypoten- pineeconomywasyet to recoverfully from Dllemmas tially becomea competitionto AIM. the 1989failedcoupd'etat. Until theendof theMarcosera,AIM Afterthisinitialcontact,AIM facedsev- WhetherAIM shouldactasa repfesentainstjeraldilemmas.SinceAPEC-HRD is a gov' tive ro APEC-HRD andhelpestabiish an asa pdvate,non-profiteducational itselfwith the was tution,hadnot associated emmentinitiative, AIM did notseemto fit APECschoolor stayoutof tie process government. Philippine DuringtheI 980s into the then emerging"APECculture," a consideration. sufferedfrom stagwheremeetingswerepdmarilyfocusedon A meetingwith AIM Trustee,Mr. when the Philippines documenhdonsminutesof themeedng. Ramondel Rosario,Sr, the then Philip- nationand instability,AIM was affected imageof the countryThe toJapan, andAIM Presi' by thenegative crossing theT's anddottingthe I's. Since pineAmbassador process of the decision-making hadnot been dent FelipeAlfonsotook placein mid- APECsituationis different.Convinced muchof tie negotiafons of beinginvolvedin what established, took 1991. Arnbassador del Rosarioadvised thesignificance placealongthe coridors-the so-called thatAIM shouldgetinvolvedasthe Phil' promised to bethewaveof thefuture,AIM "conidordiplomacy"business professors ippinerepresentative. acceptedtheresponsibility Thepotential impor- management Invltatlon Theinvolvement of theAsianInstitute of Maragement(AIM) in the Asia Pacific Economic Cooperation started with {APEC) the invitationto attendthe third APEC (APECDevelopment HumanResources goup HRD)working meetingin February 199I . Thismeetingwashostedby Canada to encouagebetter andheldin Singapore attendance fromtheAsia-side of thePacific. At thattime,APECwassdllonthedrawing boafd,havingstartedthefirstworkinggroup meetingtheyearbefore,whereprocedures werestillbeingworkedout.

TheAsianManagel January-February 1997

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to APEC-HRD. commudcationanddecision-makingproc- come.On the otherhand,therewould be representative asPhilippine ess,which was immediatelybroughtfor' no trackrccordunlesssomeonefundsthe wald andendorsedby the workinggoup. activities.The network found itself in a Formulation Process in BMN which chickenandeggsituation. During the fourth working group AIM choseto participate meetingin July 1991,threenetworks, was mandatedto considerHRD at the "Ad Balloons": AIM Takes A Stand Net- managedallevel, recognizingthis as the Management namelythe Business AIM initiated Toresolvetheimpasse, contdbution. De' areafor its greatest work (BMNI,Networkfor Economic activity.AIM the first APEC-HRD-BMN velopment(NEDM), and Human manageinternational had beenholding Networkin ln- Chicken and Egg Development Resources time and so for some members ment conferences AlthoughAPEC-HRD'BMN dustrialTechnology(HURDIT)underthe 'Searching gettjng conference, the lo92 ald ona process of communication HRDbanner,helda networkformulation agreed in Year2020," off theground making,they werestillnot clear for Managers seminar.Thesethree networkswere decision taskedto provideinputsto the working what activitiesandprojectstheycouldand with speakersacrossAsia looking into loose futureHRDneedswasnot dimcult.AIM $oup, whosemembershipconsistedof shouldperformunderan exffemely "APEC." thefirst to makethisconference APEC proposed umbrellacalled governrnent offcialsin chargeof economic initiatives and members activity haveequalfooting APEC-HRD-BMN thatmembers The net- sffessed and internationalcooperation. group andinitiativesshouldnot be dictatedby agreedto supportthe projectby sending a specialists' workswereconsidered to advisethe workinggroupandprovide the alfluentto the lessaffluentcountries. speakersand more than 500 participants andotherpartsof that APECwas nol a ftom APECeconomies sincegov- It emphasized continuityto theAPECprocess, Manyrepresentativestheworld. ernmentofficialstypicallyturn overtheir fundingmechanism. actively AIM also,subsequently, exceptfor a few econo wereself'funded, everytwo to threeyea$. responsibilities seminaJ, mieswith govemmentsupport.Eventhen, supportedthe secondand the third ln thisnetworkformuladon activitiesof BMN, namely,international BMN membersagreedon oneof the cri- fundswere still minimal. "Cross'cultural earlyyea6, c o n f e l e n c e s o n Likeanyinitiatvein APEC'S teriafor theAPECproject:therequirement in the APECregionin the par- APEC'HRD-BMN did not havea track management of at leastthreemembereconomies' ticipationwith no objectionftom theoth' recod.Untl proventlat theinitiativeiswor' year 2000", held in Bangkokand on "lndusfial environmentmanagement in ers.Thisbecamethecorefor themodeof ttry of funding,finarcialsupportwouldnot t h e A P E Cr e g i o n "h e l d i n T o k y oi n 1992andMarch1993respecSeptember nndingsand tively.AIM sharedresearch projects: APECjointresearch encouraged buildingintellectualcapitalwaskey. Eachof theseactivitiesattracted SUB5CRIAE NOWAND OBTAIN FREE attentionof local communitieswho were ON SCH(,OI]S tNFORtiATION unsureof whatAPECwasfol at thattime. coNY EURoPE q cmtndge uaA wien wr wien atwr at oAdo,ru.r " oAdo,ru.r Iqqnnnerd !*L. !*L then seemed t' O solvay osorvd' membergovemments I o O d"-. Boru.h APEC It cEsMA t o B.nrley 9 P.Inln '1ENP( q Edinbu'sh of I o e-o" the contribution recognized to have o H'rcr wr olsc'\rnh t o er-' O EstscMFAM 9rmP€nr : DceFs'e Mellun which had activities BMN these initial fl EssEc : ochrcio I !.tr: "ad balloons"for APEC. actedas : n::*1" Bi!8iJl 3*#iffJd

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t997 TheAsianManagetI January'February

ar,irl n

Gr€at I€ap Forward \4hile BMN memberswerestruggling to identify legitimate APECactivities, projectschartedits direction.A breakthroughcamewhenJapan,led by the In' stitute of lnternationalStudiesand a workshopin Bali, Training,sponsored substan' in April1993to discuss Indonesia tive strategiesfor APEC-HRD-BMN, buildingon gainsof initial activities. MembersageedthatBMNwouldfocuson the followingAPECconcerns: . EnvironmentalManagement(later Development) changedto Sustainable . Cross-Cultural Management . Managementof SmallandMedium Enterprises . ExecutiveEducationandDevelop'

menl Thesethemeswould be carriedout in the followingmodes: o JointResearch . CurriculumDevelopment o Trainingof Trainers . InformationDissemination . Peopieto PeopleExchanges o InternationalConferences

Researchers and senior the Philippines. executives conductedfield visitsof companiesin theUS,Canada, andChiJapan, neseTaipei.Leuningsweresharedamong members, henceclariffingandenhancing understandingof variousassumptions. findingswere publishedby Research Canada.

Joint Cuniculum Development AIM actedasco-chairwith Australia fuound this time, the initial ideaof management cuniculum Schoolwas on cross-cultural establishing anAPECBusiness leadingin thesharingof exmore development, it wasconsidered shelved.Instead, importantto strengthenexistingeduca- pertise.In additionto progamdesign,mawere compiled. andenhance coopera- terialsanddatasources tionalorganizations tion amongthem. The workshopclarifiedideasandthe directionto the APEC- Training AIM conducteda casedevelopment HRDBMN community.Membersalso goodworkingrelation- projectwith Japanand Indonesiato enstartedto establish ships.Theinformalworkshopatrnosphere hancefacultycapabilityto developteaching materials andcasestudies.Theproject aswell. helpedshapedthe process producedcross-cultural case management studiesasa joint effortof the threememInvolvement de- ber-economies. In thecourseofAPEC-HRD-BMN One major BMN activity was the velopment,AIM initiatedprojects,pro"Trainingof SeniorManagers in Economic vided ideas,and participatedin many Zonesin APEC,"proposed activities,eventhosebeyondHRD-BMN. Development But the niche had alwaysbeen BMN. by China.Thispilotprojectwassupported SomeBMN activitiesAIM took a maior by Canada,Japan,Hong Kong,and the Philippines.Needsassessment in ecorole in wereasfollows: nomicdevelopment zonesfor HRD,curriculumdesign, andprogramdeliverywere Joint Research . "lndustrialEnvironmental Manage- all carriedout as a joint effort among Threetrainingpromentin APEC"wastheflrstjointresearch projectsupporters. projectunder BMN, participated in by gramsincludedtwo weeksof classroom Taipei,andthePhilippines. studiesfollowedby field visitsin a third Canada, Japan, camefrom andIndone- world country.Participants AIM coveredthe Philippines sia asits researchareason currentenvi- China,Indonesia,and the Philippines. practices in enter- AIM wasin chargeof the secondtraining ronmentalmanagement prise. The researchteamparticipated in programin mid-l995in Manilaanda field visit in Singapore aswell aseachstageof to sharetheir findings. conferences . "Trendsin Management Training projectimplementation. AIM actedasproin APEC"wasanothet gam directorand taughtat the first proandDevelopment joint researchprojectundertakenby gramin Shanghai.Puticipantsobtained for theirscholarships fromtheAssociation Canada,Australia,Japan,Malaysia,Chi (AOTS)in Technical Scholarship neseTaipei,and the Philippines.Each Overseas expertiseof memberpublishedlocal findingswhile Japan.With its accumulated pictureof the trainingmanagers in the region,Chinaas AIM drafteda comparative projectleaderwelcomedthe contribution membereconomies. . uKeySuccess Factors behindOual- of AIM to thisproject. Conity Improvementin a Cross-Border text" wasinitiatedby ChineseTaipeiand Information Dissemination puticipatedin by Canada, WhiieAIM hasparticipated in majorJapan,andthe projects,somedid not Research wasbasedon joint ity of the proposed Philippines. Varioustrainmembers. requiredirectparticipation. casestudiesof participating o "Management of Change:Execu- ing seminarsconductedunderAPECinitiatedby Canada HRD-BMNrequiredlead institutionsto tive StudyResearch" AIM, Taipei,and identifyappropriateparticipants. andsupported by China,Japan, 16

TheAsianManagerI January-February1997

linkageswith the priwith its established vatesecto!identifiedsuitablecandidates. In addition,researchfindingswere published in The Asian Manager circulatedto morethan25,000CEOsand worldwideand in the seniormanagers AIMwebsite.Throughthesemedia,APEC was betterunderstoodin privateand publicsectors. Conferences In additionto the first international AIM initiatedanother interconference, "ASEAN10: Towards conference: national in 1995. Market" An Emerging Common practinumber of scholars and A sizeable the two conferences. tionersattended AIM alsoparticipatedin otherinterorganizedby other nationalconferences APECeconomies underBMN, including "EnvironmentalManagementin APEC" "Key in Tokyoand in Jakartain 1993, FactorsbehindOualityManageSuccess Context"in Taipei mentinACross-Border Technology in 7994," Cross-Cultural Transfer"in Tokyoin 1996,amongothers. Focused Commitment WhenAPECstarted,itwasstatedthat On it wouldnot bea fundingmechanism. the otherhand,it wasclearthat without couldnotbecarfundingsupport,activities ried out. AIM dependedon its own resourcesto pafticipatein variousprojects. With this initial contribution,member governmentsrecognizedthe need for commitrnent fundingsupportandstronger to APECinitiatives. In 1993,the APECsedetariatand theAPECcentralfundsunit subsequently With thesemechanisms, wereestablished. the interestto join APECactivitieswas raisedevenamongnon-activemembers. of APEC inMeantime,the membership creased fromits initial11 to 18 by 1995. EducationForumwasaddedto theAPEC HRDWorkingGroupwhich linked eduThe Philippines, acting cationminiStries. as the HRD leadshepherd,changedthe workinggroupmeetingsfrom merelyreportingpastaclivitiesto discussing future directions.As such,APECsawthe need to add other networkingmechanisms, HR suchasthefinanceministers'meeting, sectors'inministers'meeting.Business volvementalsostarted.Thesemulti{ayer, meetingsamongAPECmemface-to-face

bers enhancedunderstanding and producedresults whichcouldonlybe imag ino.l in fha haoihnind

Into The Future In thepasr,mostof the ideasfor activitiescamefrom BMN members, many ofwhomwerefromhighereducational in. stitulons,productivitycenters,andgovernmentagencies. Membership wascon, centrated among"providers" of education and training as well as policy makers. BMN membersrecognized thatthepdvate (businessJ sectorperspective neededto be enhanced.Eventhoughin someprojects, privatesectorparticipation and linkages weresought,theh involvement wasstill ad hocBMN members arenow considering a new projectto establish an APEC-wide networkof HRexecutivesto accelerate the process. APEC-HRD Throughthis network.sharing of bestpractices, learning aboutotherAPECeconomies, and coming up with new HRD approaches may emerge.AIM is committedto takean ac. tiverolein thisprocess. AIM considers itselfsuccessful asthe leadinstitutionof BMN, if only for the manyinitialideasgenerated within BMN which are reflectedin APEC'saction agendanow. AIM will focusits futureinvolvement mainlyon cross'cultural management as well asexecutiveeducation. As it did in the formativeyearsof APEC,AIM hopes to conffibuteto mutual understanding amongAPECeconomies and thistime, evenmore,throughthe development of APEC's managerial resources. Tothisend, AIM'Sthrustfor cross-cultural manage. ment andlifelonglearningfor executive educationwill not only go handin hatd with futureAPEC-HRD activities:it will continueto shapeit.

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The Asian Manager

Zenin TheArt of Awards Management he phoneringsfor the fifth time andI finaliypickit up, In the end,you know who your realftiendsare.Theoneswho succumbing to the iar ng langlethathasbeenunsett.ling arestill alive.thatis. Awardsof Asiaofficeis a sight Backstage at theManagement my nervesfor the lasthalfhour.The voiceon the other fodderat everydesk, in a rapidfireaccentI canbarelycompre- to behold.Asidefiom nutdtiouslysuspect lineis ftantic,speaking ringcansendtie highandeverylelephone is palpably hend.I smileto myself,leanbackon my chair,andconsciously rension slow down my speech,hopingto inducethe samereactionin entireroominto silentcardiacarrest. Thereare alwaysprob' to to be repaired,challenges the other.It work. In hvo minutes,the voiceis considerably lemsto be fixed,communications "Computerkey bemet-dl in theself-effacing Asianwaythatseemsto work so calmerandI realizewhatit is tryingto tell me. "Excef well. Nicotineconsumption "they got us five keyboards." and n0 one is quiteconspicuous boards!"is what I hear, "Yes,"the countstheirchickens "that oftentimes, untiltheyarehatched.Because, meanswe havea lot ofkeyboards." lent!" I say, goldenegglayingbird a notch or two, "but what we askedfor were the factthatthisis definitelya feathered, voiceincreases Andwe onlyhave30 minutesieftbeforetheprogramme is left unconfirmeduntil the lastminute. Soonecannevelas' cables! begrns!"My eyescloseandI forcemyselfto refeat into a state sume. Lackof sleepdoesnot createdarkcirclesunderyoul eyes. will' of calm,achievedonly by recentlyacquired,superhuman power I reply,"Wellthankthemanyway.Thenaskthemif they The dark circlescomefrom staringinto the computerscreen, compawouldbesokind asto W to findusthe cablesbeforetheyserve encodinganddecodingdataon Asia'smostprestiglous arld tack have the mettle or not they whether nies, determining the fish.'' not a iob It is placed the indusuy stalwarts. among record to be communication bar cultutal and can transcend A migraine what sleep Which is definiteiy Or the skinny. fainthearted. you matter where for the no have a headache, everyone, riers.When Youpointto youl deprivationinduces-startlingweightloss. The Management theyspentthet formativeyears,understands. On your face Awards'diet.Do not try thiswithouta doctor'ssupeNision. fashion, scrunch your in an agonizing eyes head,roll to I have come unwelcome. it is not entirelv pop your the other hand. eyes and suddenly a Sharpei's, until it approximates nor too thin. you be too rich can nâ&#x201A;Źitier with the maxim: agree everyone backs of explosion. Suddenly somesort opento simulate for At thispoint,thereis no impendingdangerof gettingtoo dch. andunderstanding away,shakingtheir headsin compassion yourmiserable plight.Youbreathea sighofreliefandrealizethat So,at the Awardsprogamme,we havedecidedwe will settle this is the only time you will receiveany slmpathyor respite for too thin. The lightsgo on andthe familiarmusicplays.The venues from your clients.Not when you are runninga fulfblown,re KualaLumpq Manila,Hong Singapore, Vasco seem eerilyalike:Jakarta, Like gionalsearchfor Asia'smostexcellentcorporations. lills the air,the samequeasy The same tension Bangkok. is rough, Kong, the voyage da Gamain searchof new landandspices, compa' mostprestigious night Asia's that this is the the expectation in the midsl of your fiiendsarefew,andthe threatof death bench' and get showcase due recognition-tie you nies will their the brave discover process is alwaysimminent.But,oh,when Four Vivaldi's is also the night region. This for the entire after all. mark a bad deal new world.scurw doesnot seemlike such 18

TheAsianManagel January'February1997

Learningfrom the Winners evencategories; 35 winners.Sevenpathsto excellence; 35 waysof gettingthere.Whatfuelsthe engineof excellence? These profilesof what caughtthe judges'eyein thisyear'sbatchof awardees underscore a commontrait:workinsat it withoutletup-be it productivityimprovement schemes, financialreengineedng, marketingcampaigns, or teamworking. Readon and discoverthe gemsthatcanfuelyour own company,s engine.

getsplayed100Umes.I pirouettebacktageto easethe hasbroughthis youngsonto wihess the event.His sonis in Seasons a tension.Mine and everyoneelse's.Our facultyrepresentative suit that looksa little too largeandhe scansthe tableapprehendoeshighkicks.Thetechnicaldirectorletsloosea loud suffaw sively.I smile,and,to put him at ease,askhim whathewantsto andseemsrelievedthe feverishinsaniryhasspreadandinfecred do whenhe growsup-which, fiornthe looksof it, shouldhapthe normallycool and detachedorganizers. We are all in this penany'time now.Hesmilesbackandrepliesthathe wouldlike together. Sailingthe highseasin searchfor the hiddentreasure. to flnishhisschooling at universityandthenwork lor hisfather's And hidden teasures there are many.The voyage,while firm. Thepddeis eyidentin hiseyes.As he tumsto tell tie rest tensionfilledandall consuming, hasits own inherentrewardsas of the table,I am calledbackonstageto presenttheyear'swincamaraderie increases. Thingshappenthatleadus to believein ne$, the visionandmissionof what we aredoing. In HongKong,a I callout the namesof the companies at the helmof Asia's fax arrivesfrom our Malaysian sponsor. He wishesus well and Ieadership. Thevisionaries. Theexplorers who areconstantly in hopesthe eveningis a success. We arevisiblytouchedandpass searchfor pathsthat leadto management excellence in the rethenotelrheequivalent of theaue s 'breakaleg"1aroundrever- gionandtheworld. ently.In Jakarta,the supportof keyplayershelpsrevivespidts I callout thefather'snamelastandscantheroom.Theman whentheculturalseasseemunbearably rough.In Bangkok, our standsup eagerly andclutches hisspeech ashe makeshiswayto hotelsponsortagsalongto everymeetingto makesurehe can the tallpodiumonstage. Thesonat thetableis clappingeagerly. anticipate theprogramme's everyrequirement. In Singapore, our Beforethe kleiglightstum backonstageandblind me, I catch representative andcounfy partnersspendthe entiredaygoing hiseye.Hethrowsmea broadgrinandnodstowardhisfather.I throughthe programme to makesurewe havenot missedany- grinbackandjoin in the applause. Theson'sproudsmileis the thing,technicallyor culturally.In HongKong,the counfy part- lastthing I seebeforeI leavethe stageand seekrefugein the ner gamelystayson until theweehoursof the mornlnsandsits coolcocoonbackstage. rhroughwhat seemslike 20 "run.throughs" of the programme Suangelyenough,I do not evenrememberthe missingcascript.Thededication andcommitment catchusbysurprise. The bles. teamspidtseemsremarkable afterail we havebeenthroush. Duringthe breakat dinner,I sirnextto a manwho tellsme MilagrcsT CarciaisExecutive Directorof theManagement he starteda smallcompanyalmost20 yearsago.Thisevening, ProJessor AwardsofAsia.lnternet:<dtgarcia@aim, edu.ph>. that samecompanyhasreceivedan awardfor excellence. He January-February 1997 | TheAsianManager

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HONGKONC Kowloon-CantonRailway Corp. (KCRC)

INDONESIA P.T.Ongko Muldcorpom

Kowloon-Canton RaiiwayCorporation Althoughlongsuccessful, (KCRCIlaunchedjn 19gl a management initiativeto changeits corporateculturelo onewhichcombined satisfaction andconcustomer wasinvolvedin developingthe Eachemployee tinuousimprovement. mission,vision,and corevalues-the foundationof KCRCTTOM is thefounOuestforExcellence systemandquestforexcellence.This plan.The greater driveto achieve efficiency, suategic dationofKCRC's and customelfocushasenabledKCRCto maximize effectveness, quality. performance whileimprovingseruice commercial haveimprovedproductivltyto the point Process improvements whereKCRChasachieved an 18%reductionin realcashcostssince 1990. It hasenableKCRCbothto reducefaresby 13%in realterms KCRChasalsofoandploughmoremoneybackinto the business. includingthe devel' cusedon impfoyingthe safetyof its operations, systemwhich hasreopmentof an integatedsafetymanagement iniuriesin te' sultedin a 50%reductionin the numberof emplovee centyea$.

SinceL\e OngkoGroupwasfoundedmorethan 30 yea$ ago, PT. OngkoMulticorporahasgrown to becomeone of the latgest in the Gloupeach in Indonesia. Corecompetencies conglomerates providinga stable hasa longhistoryin its particularareaof business, players arekey in tlleir respecbasefor expansion.Mostcompanies marketshare. tive indust esandholdsignificant putsa premiumon professionalism andreOngkoMulticorpora It addsvalueto operadng comsponse to marketneedsanddemands. paniesnot only throughmanagement supportandplanningbut also support. andbusiness deyelopment by offeringhumanresource with someof the worldk leading alliances Ongkoestablished which further frameworks anchored in strategic business companies s)'nergies.Thesejoint venturesare strengthened cross-marketing competitive edgein tile market viewedasa meansto expandOngko's andtechnology. throughsharingof knowledge the organizaThis entire managementeffort to professionalize andstockfuturevalueofshareholde$ tionhasresultedin enhanced improvesthe qualityof ib worKorceand holdeffasit continuously to its customels. deliversbetterproductsandseruices groMh in Indonesia hasprovidedopportunities Rapideconomic competition. TheOngkoCrcup for stiffbusiness andanenvironment "one-stop"supplierwith a full benefitsiiom its uniquepositionasa established dist brandrecognition, rangeof productsandservices, expertise,and cost bution networks,extensivetechnological efficiencies.

MALAYSIA MalayanBanktngBhd. adoptsa proactiveapproach MalayanBankingBhd.(Maybank) Its access to lelevantlT-based opportunites. to identityingbusiness marketinformationenablesthe bankto projectmarkettrendsand positionitselfaheadof otirerproductinnovations. IT alsosupports of strengths and andanintegrated analysis informeddecision-making limitations. sophistication of cus aswell asincreasing Growingcompetition ofthe banking relationship demands require high maintenance tomer include: cutting-edge sffategies betweenbankersandclients.Specific procedures to improve recontinual re engineering of business {1) packages; provision product optiof customized sponse time; {2) i3) product mumuseof technology to extendreachandfurtherenhance (5) entities within the and s).nergy among diverse business features; goup. plans,qualityis a comerstone in fromits corporate Asevidenced prontability,/ its strengths are superior Among the bank'soperations. productivity, superiordMdendrate(atleast18%from1986to 19951, policies management andpractices. andprudentbutefficientfinancial

TheAs[anManaget January-February 1997

PHILIPPINES Jolltbee Foods Corporadon With customersatisfacuon at theheartof its products,store operations, andseNiceconcepts andstandards, JollibeeFoods Corpofationhassecuredstong customerpreference-thehighest brandand productloyaltyamongall food serviceoperators-as indicatedin independent marketsurveysandsyndi catedstudies.Jollibee'sleadership(55%share)in the local fastfoodindusfy and pioneeringeffortsasa championof enUepreneurship has provedthat Philippinecotporations can competeeffectivelyagainstglobalgiants. Jollibee,the 1990winnerin marketingmanagâ&#x201A;Źment, ini tiatedaggressive expansion, evenduringuncertaineconomic -the-artmanufactuingfacility,/commissary times;state-of invest. mentsfor productionandlogisticalsupport;innovativeadvertising,marketing, andpromotions; anda successful IpO listing in the Philippinestockmarket. Fromsevenoutletsin 1979,Jollibeehasgown to 175 company-owned and ftanchisestores,nine of which are 10catedoverseas. Jollibeehasalsosucceeded in expandingits poruolioof loodseNiceconcepts andbrandsthroughacquisi joint ventues (Delifrance), tions(Greenwich), licensing(lce CreamCopenhagenand Donut Magic). As opportunities emerge,Jollibeewill continuallyscanthe business enwonment to be the totalfoodservicecompany SINGAPORE Singaporc Telecommunlcadons Ltd. A three-timewinner of the management awards,SingaporeTelecommunications Ltd.(SingTeU hassuccessfully transformeditselfinto one of the mostmodernand efficienttelecommunications operators in thewofld. It is rapidlybuilding a portfolioof strategicinvestnentsin Europeand the Asiapacific.Itsworld-class infrastructure andseryiceincludeaninter. activevideo-on-demand usingbroadband switchingtechnology;a cellularpersonal communications networkia fullyautomatedpagingseryice;a fully digitalizedtelephonenefwork; .seampublicaccess to the Intemet;Worldsource, a one-stop less"voiceanddatacommunicauons alLiance wirh la strategic AT&TandKDDI,amongothers. SingTel's earthstationsoffermaritimeandaeronauticalsat, ellitecommunications services. Its Immarsat-p globalsatellite systemwill provideworldwide coveragefor mobilephoneus, ersin the year2000. SingTelis cunently investingin an optic flber broadbandnetwork thatcat supportmullmedia servicesby transmitting integratedvoice,data,text, imageand videosignalsat highspeeds. Meanwhile, foundationwork of a new Singapore PostCenuehasstafied.It will at. low increased automationand computerization of postaloperationsto improvecustomer seffice,enhanceproductivity,and improve

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THAILAND Alphasource Manufactudng Soludons pCL Buildingon existingtechnology andlogistics, Alphasource ManufacnrringSolutionsPCLswiftly bargedinto the growing contmctmanufacturing industry.It diversifiedits productrange while it remainedamajorsupplierof AT&Twith licensingrights to matufacturephonesin otherAsiancounues. Asit readies to competewith older,moreestablished muf tinationals, Alphasource hasnot stintedon research anddevelopmentinvesfinents, capitalizing on ffainedexpertsfor design andcomponent engineering, andtestdevelopment forcustomers. It hasbeendaringenoughto acquirea prototypealldhigh volumesubcontract manufacturing firm in theheartof the US SiliconValley.Plansfor a manufacturingplant on the Chinese mainlandarealsoin the works. Alphasouceis re-engineering its entirebusinessto become a one'stopsolutionfot internationalcompanies,by offeringa fulfservice range,from the developmentof an integratedcircuit tq the finishingtouchesof a sophisticated prcductthat can be shippeddirectlyto custome$.

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1997 | TheAsianMan4get 23 January-February

HONCKONG Hong Kong Tourist Assoctatton(HKTA) (HKTAIis the drivingforce The HongKongTouristAssociation destination overthepastfour international behindAsia'smostpopular with molethantenmillionvisitorsin 1995.HKTAhascon decades, tourismrecelptsat US$7.765million in 1993, sistentlyincreased millionin 19q5. millionin 1994,andUS$9.691 US$8.324 8%of grossdomestic HongKong'stourismindusty contributes productin 1995. Employmentopportunitieshave increasedto 350,000(about12"/.ol $e worfforce),makingtou sm crucialto economy. HongKong'sservice-oriented by improYing HongKongasa haveldestination HKTAdevelops publicityof tou st attactionsin visitorfacilities,securingoverseas travelactivities. HongKong,andcoordinating tooka bold. The"HongKong-wondersNeverCease"campaign marketing.It adand innovativeapproachto tourism'destination and maindressed the 1997concelnon the ffansferof sovereignty

rolein Asiantourismin the21stcentainedHongKong'spreeminent tury throughan integratedframework-from advertisingto informa' publicrelations directmailto cus' to merchandising, tion technology, tomelsef\lce. mediausageon airlinein flightchanThevideogainedextensive in theregion.Otherattention nels,andhotelandcableTV channels gabbingtoolsincludelogodisplayon a fleetof Londontaxis,TVC at screeningon TimesSquarein New York,and neonadvertising via Intemetwhere it was headquarters.HKTAadvertised HKTA'S information ratedamongthe top 5%sites.It alsohasan interactive kiosk,a CD'ROM,anda libraryservice.Itsmobiiepavilionattracted millionsof visitorsduringits 151-daytour of 50 citiesthroughout tourswerealsoconductedin the ContinentalEurope.Promotional with Southeast Asian USandJapan,togetherwith ioint promotions countries.

TheAsianManaget I January.February 1997

"products" the inauguralHong HKTAinhoducedtwo new KongChineseNewYearParadeandHealthandthe fustFortunExpoprcgram.HKTAidentifiedspecial to supportits five'yearmiLlennium itineraries for eachof thembasedon andgenerated targetsegments gorousmarketresearch andfocusgroupstudies. "Thinkinggioballt actinglocal1y,"HKTAhasrepositioned the "product"in the world market. HongKongtoudsmindustryas a publications, giveaways, litemturenow andpromotional Souvenirs, with a unifiedlook. designs sportnew packaging

INDONESIA P.T.Mustika Ratu herbaliamuand aditionalcosmetPT.MustikaRatuproduces ics. Its productline includesfacialtreatment,basemake-up,colot make'up,hair care,and bodycale. A.ilof MustikaRatuJamuand derivedftom domestlc aremadefromnaturalingredients Cosmetics Grosssales herbsknowl for their efficacythroughoutgenerations. sharebased at US$57million.Overallmarket worldwideis eslimated on salesvolumeis 45%. and60 beauq/conMustikaRatuemploys700 beauryadvisors sultantswho teachproductusageto consumers.lts productscanbe and departmentstores foundin shops,drug stotes,supermarkets, andarealsoexpoltedto otherAsiancountdes. throughoutIndonesia in ffadefairsby runningpromotion MustikaRatualsoparticipates standsanddemonstrations. tadition andbeliefareconsidTo ensurecustomersatisfaction, requires CulturaldiYersity anddevelopment. eredin productresearch andsaleseffortsreflectthe heritage thatmarketingcommunications to study in storecounters areavailable of eachisland.Ouestionnaires satisfaction consumer needsandwants. Main indicesfor measuring alsoincluderepeatorders,marketsharegrowth,andminimalretum of goods.

PHILIPPINES Procter & Gamble,Philippines, Inc. Procter& Gamble,Philippines, lnc.,lastyear'swinnerin generalmanagement, is an indusfy leaderandis amongthe mostprofita.ble goodscompanies consumer in the counfy. Overallmarketsharebasedon sales volumein l9q4 is 45%.Crosssalesrevenueln LhePhif ippinesreachedUS$451million. ShareresultsshowP&GPis the comoraremarKer leaderin laundry(Tide:29%),personal (Safecleansing guard:48.7%),andshampoo (cumulative 37.8%)andis a strongnumbert$roin catamenials (Whisper:31.7%)and diapers (Pampers: 25.5%). P&GPconsiders customer satisfaction asthekeysuccess factorin groupsareidentifiedby eyaiuating company$owth. Consumer the marketplace vis-a-vis the productofferingand assessing which seg, mentwouldbestappreciate or needtheproduct.Satisiring thistarget groupwill, in turn,in(easevolume,share,andprofit. P&GPrevolutionized themarketwith newproductinnovations: RejoiceShampooand Conditionerin One was the fi$t two in,one productto beinroducedin thePhilippines (19901, Whisperwirh Dri Weaveand Whisperwith Wingswere the first of their kind threedimensional topsheetand wide wing protectoff(19S01, TideUlha was the nrst compactslntheticdetergentganule (lgql), Pantene wastle ftrstpro-vitamin (1993),Safeguard basedshampoo addressed andcombinedthetwo consumer needsfor supe or skingermprotec tion andfiagrancein five variants. P&GPpioneered consumer andtradepromotion innovations: soap operason radio,wrapperredemption premium-on-packs, campaign, bunot{drawlpromotions, house-to-house sampling, sellingdrives,etc. Throughthe years,competitors havefollowedP&GP'S footsteps. P&GPreassessed how bestto fostelcustomerloyalw. P&GP movedawayfTomshort-term promotioneffortstowardsmoreequity, buildingmarketingeffortsto reinforcethe valueof its products.

SINGAPORE Excel Machine Tools Pte.. Ltd. ExcelMachine ToolsPte.,Ltd. is the only high technology companyin psia with the capabilityto manufacturea full range

of CNC{computer numericcontrollmachines.About90%of itsmachines areexportedto majorindustdalized marketssuch asthe US,Japan,andWesternEurope. Excelrecentlyestablished an after-sales andmarketingof. ficein the WestCoast.Operations aredecenfalizedvia subsidiades in Singapore, Malaysia, andThailand.Excelcuffently hasamemomndum ofunderstandingwith Chinese state,owned Ming-Jing MachineryWorks to manufacture machinetools(for

car,aerospace, computer atd diskddveindustdes) in Tangchen, Shanghai. A previous winnerfor operations management, Excelproducesmorenew productinnovations qualwithoutsacdficing ity or seruiceto its customers.New productsexperience less competition and,therefore,commanda betterprofitmargin. Excelhasgrownup froma start-upfirmofferingonlytech, nicalseruices to a highqualityinternational competitor.It has managedto gainfootholdsin manyadvancedindustrialized countriesandhascompeted successfully againstmachinetool globally.Itsproductivityhasalsoincreased manufacturers dramatically, followingheaq/investments in automation aIIdstalf rainingandcompared favorably with itscomperitors.

THA]LAND SahaviriyaOA FCL. In littlemorethana decade, Sahaviriya OA PCLglew hom a seven-man outit to becomeThai, land'slargestdist butor of personalcoFputenandperipherals. Liberalization and intellectual piracywoeshavefailedto gowth. Ina haltthecompany's grappling regionstill with the c o m p l e x i t i eo sf free trade, Sahaviriya hasusedclassic statproduction eges-betterservice, efficiency-toovercome fiercecompetition.It con ols 24%of the generalIT marketand is the undisDutedleaderin software. Ciientsensitivity liesbehindthe company's success.Sahayiriya achieyeda marketbreakthrough throughthe innovativeuseof the Thallanguage on PCswitilout expensive add-ons.It developed the onepassprintingfor Thailanguage, cuttingdownwork timefor cusSahaviriya wasalsothe firstflrm to ventureinto the upcounty marketand continuesto draw plansfor morecounq^ide facilities while mostmajorcompanies continueto concenhate in Bangkok.

lg97 January.February

l'heAsianManaeet 25

WINNERS

General Menagement

Marketlng Mrnagement

Informadon Technology Management

Reach

SouthemChina

No.of employ€es Salesrevenues Netprofits

3,500 $385M $117M

Hong KonSToudst Assodadon Intemationalorganizalons andotherterritoriai bodies A.sia,Australia,Europe U.S.A., SouthAfrica 363 M $9.691

No Winner

Industry

Kowloon Canton RailwaysCo.poradon Transportation sewices

PT Ingko Multicorpo.a Manufacturing, Constuction,marketing financing, insutance, tealesurc Asia,Australia, Eufope, U.S.A.

PI Mustika Ratu Herbalanduaditional cosm€ticindusuy

PT Indofood SuksesMaldnut Manufacudng-food,beverage, tobacco malkedng {onsumefproducts

Asia,MiddleEast, Europe

Asia,Austalia,Euope,MiddleEast, U.S.A.,SouthAftica,SouthAlnerica

15,000 $700M

2,350 $56,815,514

21,000 $897M $ 1 3 1M

Conpany

Maybank

No Winner

Industy

Bankjng

l{oNc (oNc Company

INDONESIA Compa!y

Reach No.of employees Salestevenues Net profits MALAYSTA

R€ach No.of employees Salesrcvenues Netprofits PHlrJPPINES Company Industly

Procter& GamblePhllippines SocielSecu.ity System Jolllbee FoodsCorloration RestauJants-f asdoodseNices Manulactudng and Financialintermediades {non'banktandother marketingof consumer socialandrelatedcommunityseMces prooucI5

Reach

Asia,Australia, Europe, andU.S.A. t6,t27 M s126.2

Asia,Australia, Europe, andU.S.A 103,500 M $33,400

55%

45%

Company Indust!y

SingaporeTelecom Communication and telecommunications

ExcelMachineToolEft€. Ltd. Comfort Group, Ltd. gerlandtransportation Manufacturing Passen services

Reach

Asia,Australia, Europe, andU.S.A. 11,000 M $2,752.4 $ 1 , 1 9 9M .5

Asia,Europe, and U.S,A 300+ $44.2M

ChinaandMyanmar

Abhrsourrelr8. Sotnions, rcL

No Wlnner

Manuiacturing, design, andengineedng

SahaviriyaOA Croop ol Companles Manuhctrdng-fabricat€d metalprcducb,marketinS, storag€andwarchousing

Reach

Asia,Europe,andIJ.S.A.

Asia

No. of ehployees Salestevenues Net pronts

10,000 $48,338,835 $3,853,754

i)"rZoro,eot

No.of employees Saleslevenues Nel profits MarketSharc

Asia,Australia,Europe,andU.S.A 3,071 $ l , 1 8 4 .M 2

SINCAPORE

No.oi employees Salesr€venu€s Netprofits

645 M $l 18,839 M $ 28,415

THAILAND Company

1997 TheAsian ManagerJanuary-February

People I).velopnent and MamSen€nt

Fln ndd Msn{emetrt

Ciodam Holdings,Lihited

Hang SengBank

Th€ StockExchanse ot tlong Y.oug,UD]ted Marketing,retailuade FinaDcing, custodian seFices, Marketdevelopmen( and paymentseNices,peNonalfinancial rcgulation,tading systems planning Asia,Ausmlia,MiddleEast, NewZealand Asia,Austalia,Euope,U.S.A. HonSKong

HonBKong Hospltal Authority Healthselvices

E rployee Ret aining Board Education arld

HongKong

HongKoDg

2,069 $299,U8,077

7,926

456 $ s 1 .M 8

46,000

1,300 $15,436,570 $1,369,032

FI TaDbanSTlrneh Metailic oaemining

PT Indo..ma SYnthetics Manufacturingol texlile,wearing apparel, chentcals andchemical producrs, coalrubber, andplastic Asia,Western Europe, Ausfalia,MiddleEasr, SouthAmedca,andAftica 6,600 $290

UniversltasTerbuka Education

E p.ndrtorcp€remploy../y.d{arinjnsl

Op€radons Man gement

DeveloDmetlt M.natam€nt

XX$2,153,.154

PT Onetreco Corporadon Agricultureandishery manulacturlng, electdcity, nnaIlcmganonsurance Asia,Australia, Europe,U.S.A.

Asia,Ausualia, Europe,U.S.A

7,700 $484M

5,630 $215,45I ,308

Epatrta pa aptoytczlw ltrnneFl2,333

Nowlnner

$s8,28r

Public B.nlr, Bhd No Winner Banling---<ommercial, nerchant;venturecapital investnent;depo6it bkingand6nance; rcrexmanaSeme[t, nomineeservices; y',sia,Australia,NewZealand

Asia,Europe, U.S.A., and Australia I,815

MIDA Industdal development

9,028 $q66.3M M $167.7

AyalaCorporadoa Colnmerce---{ongomem!e investmentholdin$

Metropolitan Bank alrd Ttust ComDanv Banhng[lstituti6nflnancin&insuance, rcalestate, andbusiness sector

Asia,EuropeandU.S.A. \5,679 $867.5 $199.8

Asia,Europe, U.S.A., MiddleEast 8,464 $483,618.2

A.sia,Ausfalia,Euope,andU.S.A. Asia 35,000 993 $ t 1 , 5 r2B

Westio Stamiordand Wertin Plaza Restaurants andhotels

Clty Developments,Ltd. propeny Kealesu|te,

SinSaporeGeneral Hospital No Wloner MedicaYh€alth seMces, laboratoryandhospitalconsultancy

Singapore

Asia,Australia,NewZealand Euope,atd U.S.A. 10,000+ $1,398M

Singapore

tup.ndltutrr.r.ndor./y.d

Intel PhilippinesMt& Inc.

City Govemmentof PuertoP.incesa

MaDuJacturinS of semiaonouclors

Agricultureandfishing,educationand training,envitonmental management

l!rlDrndlh75.73

il'+i,soo r',l

4,783 M $273,362 l25,r55M

ErFndilrE pn oplotE/yd

G.bi4lE

2l,m0

Landend HousesPCL

4q) Exp.ndiM p.r mplolE/y@

tt:x n3lF 665

No winner

:ea8te TedmoloS$Inc. uatatechnology

ChaipattanaFoundation Communitydevelopment, attspromotionand developrnent

Asia,SouthAmerica, Europe,andU.S.A.

Asia,Europe, U.S.A., A$tralia, Russia, Canada, Aftica.LatinAmerica, MiddleEast,NewZealand 119

86,942 $4.540M $r:89M 6 Market Share34%

1997 | TheAsianManager 27 January-February

HONG KONG P.T. Indofood Sukses Makmur Makmu is highlyinformation'driven PT.IndofoodSukses with online datecapturedat source,linkingitsvariousmanufacturinganddistributionfacilitieswith the headoffice. Besidesspeedand accuracy,Indofoodhas realizedincreased its competitiveness andslnergy,furtherenhancing efficiencies in the market. Indofoodhad madethe transitionfiom manualand PC' on'linetransaclonprocessing to an integrated basedsystems systempackagefor all main factoriesand operatingunits through throughoutthecountry Thesystemis satellite'linked in the headofficeandenVSATSto IBM AS/400 computers costingand salesinforma' suresthat on-linemanufacturing, tradeand marketintelligencedata tion, and weeklysales'to to keydecision'makers. areavailable hasoptimizedprotechnology useof information Strategic ductionplanning,inventorycontol andyield/output. Total and qualityhasbeenenhancedas productioninemciencies wastageare minimized,and customerservicesafeguarded systemhasin' throughjust'in'timedelivery.The CA-PRMS but alsoin manu' productivitynot only in accounting creased anddistdbution/ factu ng, productionplanning,purchasing, effectiveness management It hasalsoenhanced warehousing. anddecision-making. strategyformulation, in dataanalysis, Indofoodis now betterinformedaboutits key buslness processes andits custome$.Thecompanyhasadopteda cor' its porate-wide mailings)6tem,whichhasbenef,ted eiectronic contactslocal]yand partners,andotherbusiness disffibutors, abroad.

The AsianManager I January'February 1997

SINGAPORE Comfort Group, Ltd. ComfortGroupLtd.,operatingmainlyttuoughits wholly Pte.Ltd. andYelComfoltTransportation ownedsubsidiaries US$24million low TopCabPte.Ltd.,investedapploximately andin' telecommunication to developa s)'stemthatcombines formationtechnologyto,set-upComfortCablink, a state-ofvoiceleinteractive the-arttaxi bookingsystem.lt integrates with globalpositioning sponse(IVR)andcalltakerapplications technology. Through Cablink, the customerbook a taxi simply by identifying himself through a pelsonalldentificationnumber instructions)'stemto indicateone andfollowsa pre-recorded of the five frequentlocationswherethe taxi couldpick him taxi to locatean available up. Cablinkwill thenusesatellites pick-up the nearest Point. min' The whole processtakesonly abouttlvo-and-a'half increased Cablink 100%. time by booking utes,decreasing the numberof matchedcallsftom 2,200to 3,700per day. [t currentlyhandles66%morecallsttlan t]le previousoperator system. Apartfrom meetingthe needsof the commutingpublic' asinputintothe downloaded callsareautomatically successful hirers. The taxi invoicing to the facilitate bitling systemto intervalsto at designated the bank with systemcommunicates of douthe incidence thus diminishing of hters, settleaccounts ble handling. Though information technology,the Group can gather to fromMISreportsgenerated moreinformationandstatistics pattem. may be Such disuibution gaugemarketdemandand usedfor futuremarketresealch.

PHILIPPINES Soctal Securtty System (SSS) TheSocialSecuritySystem(SSS) is a winnerin financial andoperations management in 1994and 1995,respectively. Assuch,it hasthedistinctionof beingthefi$t Philippine com. panyto be citedby theManagement Awardsfor threeyearsin a row. SSSembarked on comprehensive decentralization through informationtechnology, andtranslated a hugevolumeol data into strategic informationthathas$eatly improvedcustomer service.Its relationaldatabase management slrtem (RDMS), pioneered in 1987,enabled cross-referencing of members'em, ploymentandcontributionhistodes. ItsInformation SlstemsPlal (lSPlconnects allkeybranches pavingthe way for rel into a singletunctionalorganization, evant,accurate, andtimelyinformationfor decisionmakers.

Its24-hourinteractive voiceresponse s)Ttemallowsmem, bersto directlyaccess informationabouttheir contributions, loanstatusandbalances thrcughthe telephone. SSSis the fimt in Asiato implementimagingtechnology that reducedloan processing time ftom two monthsto tlvo days;pensions flom threeweeksto two days.Manpowercost in theloansdepafimentalsodropped73%. SSSsetup theMembership Assistance Center,a one-stopshopwheremembe$canmakepayments forbenefits andloan applications. This translatedinto a 300% improvementin frontlineservices, with an average10,000membe$served daily,reachinga peakof 25,000. SSSmakesquantumleapsyearafteryearin pursultof its missionto providemeaningful socialsecurityproteclonto its membersandthet families.

UTATER IS LIFE

(Therestareiustdropsinthebucket)

UniKleen Water Solutions Industrial . EngineeredTreatmentSystems . Water . Wqstev)ater . Package Type "Corupact" Sewqge Treatment P lants . S)stem Autonultion

Community . Water Treatment Systems . CommunitySewageTreatment Plents

Residentinl . Bottled Wqter . WaterPurifiers/Filters

A strategic partnership with Alenco Intetnational Corporation, a major US-based water and wastewoter treatment company with tnore thqn 20 years of world-wide experience in the industry, enables UniKleen Internalional Corporation to offer the late,tt, most cost-and-energy-efficient treatment technologies available in the narket todny.

UniKleem lNrrDral|ciial

cof Doaartc||

A Subsididry of Asio AMlsdnated Holdings Corpo.atb" lMenber Unieide Sdl.s Gmup ofCodpdnies)

UgqOfrr?: Unit E 3U)l C Philippir. Road. Otiqos

E\rhrrye

Sto.k E\.hana. Conplet

Cente

Pali8 Ci,]l, Philippin.s

Teteph.r. No!. l6i2 ) 635.4727 or 1632 ) 633 | 566 T.bJL\: 1632) 635-1915 Intemet AddEf : @ch@.rb.rcrb.ltve.oh

GeoryeP. ihebn, T.chnical ond Mar*ctiq Dire.tor r/o PROTEC E43i.eeriry. ln.. 2361 6fod Caun, Salett Eaftor Fl. J4695 TelephoneNo. Bt 3) 726 67a7/ Facsinil. No. (81J) 725-1567 Int.met Adnr.ls: ptuk.@M ltanet con

January-February 1997 | TheAsianManager

HONGKONG Clordano Holdings, Ltd. not strategyfocuses GiordanoHoldings,Ltd. humanresources learningandsharing valuesbut on self-ddven on company-imposed valuealandindividualvalues.Giordanosupports of organjzational insteadof behayiormolding.The company ternationof individuals themselves. shouldcomefromtheemployees thatmotivation belleves Thisshategic shiftis basedon the premisethatvaluesysbehavior attitudewhich,in tum,influences temsinfluence is anchored on strategy humanresources Giordano's service threemajorpro$ams: peNonaldevelopment, Personal development excellence, andsupportprograms. rockclimbingexercises coversa widennge of activities: interdependwargames to emphasize to buildself'esteem, parto explore,p oritize,andbalance ence;actiongames vis-a-vis theirvaluesrstems. ticipants'desires prcgrams caleel includesta.ff empowerment, Support debasicskillstrainingand management developmenl, planning, and a feedback system, development velopment, andbenefitscheme.Forinstance, soundcompensation goup comprises hom employees the serviceexcellence diffi' all ranK who helpcowolkerssolvesenice-related cuifles. to decidehow to improve The staffis empowered serviceto its intemalandexternalcustomers. Giordano's is a joint programwith line managCareerdevelopment ershom design,nominaion,trainingprogramdeliveryand eYaluaat all levels.Generalskills andconsistency tion to ensulededication haining,computingsklls, communica' of language fainjng consists enhancement, sales interpenonal skills,productknowledge tionskiLls, toolupgadeson the-jobperhaining,etc. A multimediaassessment to eliminatebiasandto fromco-wolkers throughfeedback formance rewardsitsstaff improvement. Giordano desireforperconal stimulate 10%to 20% abovemarketsala esfor their effort.

INDONESIA P. T. OmetracoCorporation Corpoworldwide,P T.Ometraco With nearly8,000employees The people future. are the key to the company's that rationbelieves communityin thrceaspects: business companyleadsthe Indonesian planningsystem;(21performance andrewardmanage(1Jstrategic ment systems incentivepaysup to four monthssalaryfor the top 10%performers; and (3) ongoingtnining pro' gramsat all levelsfocusedon generalmanagement,technicalskills,andiust-in-time. canavaiiof Englishandother Employees a leadianguage cou$es.Oneof itssubsidiaries, ing integratedpoultrycompanyin Indonesia, providesa secutesourceof incomefol localfarmChristianfellowships ersthroughcooperatives. reiafor stongerinterpersonal areencouraged tionships. Other informalgatheringsduring Easter, andanlikeChdstrnas, special occasions different niversades breakdownbarrie$across management levels. havebeen The success of theseprograms atr butedto thesuongcommihentol senior to staffempowermentandinvolvemanagement helpcreatetheirown career ment. Employees path asthey developchallengingyet attainable "suetch"goalswith quantitative andqualitative culcreateda corporate thef superiors.Ometacohassuccessfully loyalty,and shongcompany turewhichfostersa familyenvironment, low turnoverrate. beena companyto promotewithin. Ometacohashistorically Peoplewho startedwith the company20 yearsagoin a line stafJ positionmaynow be directorsandmanagels.

PHILIPPINES Ayala Corporation key AyalaCorporation's 1990winnerin generalmanagement, corporateintemalthrustsare:centalizationin missionand values leadership-centered in operations, developing and decenhalization goup synergyandnetworkmanagement units,enhancing business cultureandcoryorateclimate,andenorganizational ing,managing designthat fostergeater in organizational acilngstategicchanges effectiviwand efficiency. credoarebuiltonshared andcorporate mission statement Ayala's integrityandp macyof tie valuessubscbedto by all employees: person,pridein excelience, dignityof work, concernfor othe$,and commitmentto nationaidevelopment. The missionandvisionwere formulatedthrougha democratic andstaff.The process thatinvolvedbothmanagement anddeliberate process insuresthat Ayala'svisionis an actualreflectionof the per"Avalacitizen." sonalidealsof eachandevery people inltiauYesare developmentand management Ayala's wholisitic-uainingis gearednot only to enhanceproductivityand 30

The AslanManager January-February 1997

servicetrainingsuchas"FirstClassCustomer Service;"12)new employees Uainingandon.the-job trailing;and(31management and leadership development pro, suchas effectivesupervisory gam, teamchallenge, program. andintetactionmanagement Traininganddevelopment anda thirstfor leaminghasbeen enuenched in Westin's prinorganizational culture.Itsbusiness ciplesare deeplyanchoredin its 12 valuesof Kampongspirit, empowerment, excellence, familllfun,integrity, learning, respect, safety, success, teamwork,andhust.

@, pedormance but alsoto givemeaningandmotivationto the employee'swork. Ayalabelieves gro&this the foundationfor that personal skill developmentandjob proficiency. More than45%of the total humanresources budgetfor 1994 wasallocated to personnel development. Ayala'sbaininganddeyef opmentinitiauveshaveseyencoretrainingprogamsgearedtowards the employees'professional andpersonalgroMh: work and personal program(WorkPEP), empowerment leadership andpersonal empow ermentprogram{LeadPEPl, the valuesintegrationproganl (\/IP)I andII, StephenCoyey'sSevenHabitsof HighlyEffectivePeople,Dennis Waitley's WinnerbEdge;andEdwardde Bono'sSixThinkingHats. Potentialleadersare sentto high-endtrainingcoursesat the Harvardand the AsianInstituteof Management (AIM).More than half of the manage$rosefiom the ranksandhavebeenwith Ayala Coryoration for morethan 15years.Over85%of management have beenwith the companyfor more than ten years{averagelength of servicein the companyis 14.4years). Ayalaconducts regularorganizational (OCSIthat climatesuruei/s lookinto fivekeyareas:morale,jobsatisfaction, motivatingpotential pracices,andhumanneedsstructures. index,leadership The OCS proceeds planningstageto mapstategiesto reto a feedback/action solveproblemareasandto reinforceareasof shength.Thefinalstage of the OCSinvolvesactualimplementadon of changemanagement stmtegies.

SINGAPORE

Westln Stamfordand Westin Plaza The first recipientof the awardsfor operationsmanagementin 1990,WestinStamfordandWestinPlaza's closeto 1,800workforce laysout plansandiasl6to realizeirsVision2000: "To be the undisputedhotelof choiceof Westin'stargetcustomers, employees, and stakeholders."The processmap advances in stages:(1) customer alignment-meetingexpectations; (2) employeealignment-exceedingcustomer (3Jprocess expectations; alignment--{elighting thecustomer;(4) partneralignment-customer as advocates, supplie$as pafiners;(51becominga leamingorganization; and {6Jbecominga worldclassorganization. Pu$uingitstadition of caring,qualityseMce,Westinembarked on a totalorganizational reengineedng anddeyelopment.HRinitiativesincludeself-directed teamsassuming differentrolesasstategic partneN,management consultants and coaches, changeagentsand catalysts,andanalystsandproactiveplanne$while Westinmaintains its business orientation. WestinhasinvestedUS$20.48millionfor traininganddevelopmentofits associates since1986. It hassponsored closeto 150local staffforvadousdegee,diploma,or certificate programs in hotelmanagement. Its trainingprogramsinclude(ll prop etarycustomer

THAILAND Land and HousesPCL LandandHouses PCLis oneofThailand's largestlistedproperty developers with a marketcapitatilization of US$2.7billion.Sinceits publiclistingin 1989,LandandHouseshascompleted18 developmentprojectJ, with 46 othersunderwayin andaroundBangkokand otilermajorcities. LandandHouseshasestabiished a reputationfor quality,reliabillry,andexcellentafter-sales service,a keyfactorthathascontributed to its20%annualgro\dhrate.Behindthissterlingperformance is the companyb dynamicteamof 500professionals committedto steerthe companyfrom suengthto greatersffength. LandandHouses equallybeiieves that peoplewill work harder for goalstheyhavejoindydetermined with the managerThus,mutualgoai-setting anddecision.makng is thenorm. LandandHouses believes thatfurthereducation andtrainingas well asa personal planfor eachemployee development will utimately 'benefit both the organization and the indiyidual."Condition-fiee" scholarships absolutelyno obligationrequfements-are giyento deseryingemployees. Lastyearalone,Landand Housesspentalmost US$350,000 for vaious trainingand development programs for itJ emDlovees.

1997 | TheAsianManager 3l January-February

HONCKONG Hang SengBank HangSengBank'snnancialpolicyis to improveits ROEby en hancingnet interestincome,raisingthe contributionof non-interest income,containingthe costto incomeratio,andmalntalning a low easieraccess baddebtratio. ToimproveROE,HangSengemphasizes phonebanking,and througha wide distdbutionnetwork(branches, PCbanking),imagebuilding,prcactivesalesandmarketing, service quality,innovative productdevelopment, andloanqualiry To better premises useitssizeable capital,HangSengacquired in KowloonBay at HK$l billionto cenfalizeall back'office operations. HangSenghasbeenprofitablein the lastthreeyears;financial returns(2.46%1, costleade$hip(27.2%),stong capitalbase(24.8%), andhighliquidity(47.1%).From1992to 1995,1ts atributableprofit per shareby 40%,sharepriceby 58%,and $ew by 40",4,earnings pershare dividends by I l8%. HangSeng's flnancial highlights in December 1995:consolidated assets at HK$345billion;shareholders' tundsat HK$43billion;profit attdbutable to shareholders at HK$7,984million;retum on average total assetsat 2.5%;ard retum on averagesharcholde$'fundsat 20.3"/".

INDONESIA P.T. Tanbang llmah PT. lambangTimahis the largesttin miningcompanyin the world.Its activitiescoverexploration, miningsmelting,andmarket ingof tin metal.Timahproduced almost37,500tonsof tinemetalin 1995(about18%of world production).Approximately 95%ofthe producuonis exportedto Asia,North America,and Eu. company's rope. With theworldwidecollapse ofthetin marketin 1990,Tambang Timahelectedto undergoa majorcorporate restucture. It reduced productivity its 25,000worKorceby 75%whileincreasing by several hundredpercent.It improvedits ffainingfaciiities,infioducedthe latestcommunications andmanagement informatlon systems, andim plemented program. a comprehensive environmental management As a result, this otherwisebanhupt companyregisteredgross sales rcvenues of morethanUS$215millionin 1995.Today, Tambang Timahis one,if not the lowest,costproducers of tin earnings.Its sharesarehadingover40%aloveissuepricelessthanninemonths afterits initialpubliâ&#x201A;Źoffering. TheAsianManaget I January-February 1997

TambangTimahfoliowsa conservative financial strategy to main' tain a strongbalancesheet. Key policiesincludemaintenance of a strongliquidworkingcapitalposi tion, costcontrolprogams,fund utilizationandcontrolovercapital expendilureprograms,minimum debtleverage, andprudentfinancing suateglesfor diversifications. Tjmahintendsto diversibrits rev enuesourceandassetbasebyseek' ing other miningopportunities in Indonesia and in the Asianregion

MALAYSIA Public Bank Bhd. PublicBankBhd.,the thirdlargestfinancialinstjtutionin Malaysiawith shareholders' fundsat US$840.3million,boastsof quality assets(low non-performing loanscomparedwith total oulstanding loanslat an average of 23.1%per annumto US$3.4bil]1onin 1gq5 its assets, high from US$1.5billionin l99l without compromising riskweighledcapitaladequacy ratioat 13.38%(farabovethestautory minimumat 8.0%andalsoabovethe i n d u s t r ya v e r a goef 1 1 . 3 % )a, n d steadygrowthin tolal assetsat an averageof 24.3%per annumto US$13.1 billion in 1995fromUS$5.5 billionin 1991. Totaldeposits also at anavelage of 20.0% $ew steadily perannumto US$9.5 billjonin 1995 frornUS$4.6billionin 1991. profitgrewsteadily Pre-tax at an averageof 37.9%per annumto US$236.2 m i l l i o ni n 1 9 9 5f r o m US$65.3 millionin 1991.Eamingper sharealsoincreasedsteadilyat an average of 31.1%perannum.Every yearhasbeenprofitablefor Public Banksinceit startedin 1966.Even duringtheeconomic recession in the mid'80swhen manylargecorporations and financialinstitutionssuf feredlosses,PublicBankwas resil' onlysomedropin ient,experiencing profits.

With its strongcapitalbaseand capitaladequacy ratio,Public Bank'slendingcapacifyto supportand pursuefurtherloangrowth hasbeenincreased. PublicBankgenerates a fat returnon stockholders'equityin termsofprofltsandinvestments, minimizes costofdebt, andmaintains low debyequityralio. PublicBank'scompetitive edgeis pardyatt butedto its lnforma, plandesigned tion technology to upgadeandre-engineer its computer systems on a massive scale.It is intendedto improveefficiency, reduceoverheadand transaction costs,and positionits operations underadvanceds,stemsto effectivelymeetchangingbusiness requiremenm.

SINCAPORE Clty Developments Ltd. (CDL) City Developments Ltd. (CDL)is Singapore's largestlisted propertycompany with a marketcapitalization of US$9.07billion asof April 1996. Operatingin 13 counffiesin Asia,Eu, rope,NorthAmerica,andAustaiia,CDLemploysmorethan 10,000peopleworldwide.CDLhasmorethan 180subsidiariesandassociated publiclistedcomcompanies, includingseven paniesin theStockExchalgeofSingapore, London,HongKong, andAmsterdam. CDLhasbuiltsomeofthemostdistinctive landmarks across Asiaandis oneof the biggestcommercial landlordsin Singapore. The Group'sflagshipRepublicPlazalocatedin Rames Placeis oneof the tallestbuildingsin Asia. CDLHotelsInternationalLtd., the Group'sfastexpandinghotelsubsidiaryis thebiggest Singapore-based hotelpropertyownerin theworld. Currently,the Groupholdsapproximately six millionsquare feetof landthatis slatedfor development. CDLhasexpanded its propertyprofile. Its totalcommer, cialandindustdalspacegJewby 167%fromI .4 millionsquare feetin 1993to 3.8 million squarefeetin 1995. Volumeof residentialprojectsalsoreachedalmostUS$455million, an ircreaseof 222%in the sameperiod.After-taxprofitssoared by 99.5%andturnoversurgedby 73.1"/"in 1995. CDIJsmission,"Not onlyto be Singapore's largestbut the propertyandhotelconglomerate bestmanaged with a worldwide.presence" is sharedamongthemanagement andstaff.In 1991,CDL startedreinforcingits positionasa leadingdevel, operof qualitybuildingsthrough(1) dgorousselectonof con' (2)independent quaf tractors, subcontractors, andconsultants; ity audit system;and (3) constructionprocufementsystem which allowsdeliveryandqualityto be proactively improved

PHILIPPINES Metropolttan Bank & Tfust Company (Metrobank) MefopolitanBank& TrusrCompany(Metobank)is the leadingprivatedomesticunibatk in the countryandthe larg, est capitalized bankin the Philippines, with a net worth of P22.1billionand293branches nationwide. It isanactiveplayer in allmajorglobalfinancialmarketsthroughits315conespondent banksworldwide. Its judiciousfinancialmanagement provides stockholders with fair retums and enhancedvalue on their investments. Earningsper share continueto appreciate,ftom US$0.35in 1992to US$0.82in I gg4. Averagemar' ket per share increased five-fold,from US$16.39 o v e rt h e Conservation is the cornerstoneof Metrobank'snnancial policy.Riskmanagement and long'termconsiderations take precedence gains.Thisstanceemanates overshort-term from its corporatestrategyof takingprof,tsfrom steady,ratherthan volatilesources.Innovation,however,is still encouraged, as new markeB,products,andservices areexplored. Metobank spearheaded the development of the localfinancialcapitalmarketby broadening the scopeof its products and traded markets:internationallixed incomeand debt infuments, dedvatives, equities,USteasures,and initial public offerings. Metobank intendsto beakeyregionalplayer,asevidenced byitspioneering marketdevelopment activities. It successfully launchedthe flrst US$50milliontrancheof its EuroFloating RateCertificateol Depositfollowedby the Euro-Convertible NoteIssue-the firsteverby a Philippinefinancialinstitution. Forfour yearsnow,it hasbeenthe only domesticmarketfor PhilippineBradyBonds.

thr.\fl oh^llt

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Propertyanalystsquotedin TheStraitsTimesandTheBusi' nessTimesnotedthatCDIISprojectshavebuckedthe current tlend of slowtake-upratesamongrecentlylaunchedproperty "Themainreasons developments. for the goodresponse {un. pricingand der the currentmarketconditionslarereasonable CDLsgoodtrackrecordfor qualityfreeholddevelopment.'

Janmry-February f997 I TheAsianManager

HONG KONG Stock Exchange of Hong Kong, Ltd. of HongKongLtd. has Since1986,the StockExchange of HongKongasan internacontributedto the development marketcapitalization, tionalfinancialcenter.It hasincreased established theftameincreased thenumberoflistedcompanies, enterprises, improvedthelistwork to list Chinaincorporated andintoducedstockoptionasa productto ing environment, be tradedin its pdmarymarket. market,the StockExchangeenhalced In its secondary to tradingsystemsand improvedrisk management protectinvesto$,members,and the market. They introduceda computer'assisted tradingsystem.The AutomaticOrder Executionand MatchingSystem (AMSIhasloweredtradingcostsfor members.The per day and AMS can handle200,000transactions has achieved100%continuousftadingavailability sinceits launchin 1993. The markethasbecome moretansparentthroughthe almostinstantareous givingaccurateand timely reportingof transactions priceinformation. A secondterminalintroducedearlvthisvearhas enabledmembersto tradefrom their offices. The (TOPSIlaunchedin SeptemTradedOptionsSystems q95, ofl ber I enables tradingto be donecompletely tefminals installed at brokels office. floor through and includeChineseNew Systems Otherreinforcers process. datadissemination listedissuers measures consistof a brokers'f,delity Riskmanagement of theStock scheme, a codeof conductfor membem insurance polished malket and Exchange,improvedinspectionvisits, qualityadequacy requirements, enhanced membersurveillance, regulated shortselldisciplinary rulesandprocedures, effective in CCASS,which ing activities,and membefs'participation fund. maintainsa suarantee .*''

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r.rtl

1997 TheAsianManagetI January.February

INDONESIA P.T. Indorama Synthetics PT IndoramaS)'ntheticsis after customersatisfaction is throughqualityandtimelydelivery.Customerrelationship proactiveand interactiveas Indoramabuildstrust,identif,es andimsolutionsto thef problems, customerneeds,presents products. provesproductivityby offeringdifferentiated qualitypolicy. It is the only Indoramahasa well-defined with ISO9002 Cer[flcationfor qualitysys' firm in Indonesia temsfor polyester andspunyarns.Oualitycontol checksstart with receiptof raw materials andotheracqualitychecks, flnished cessories, in-process producr inspecdon. andonlinemonitoring andcontol throughoutthetotaloperation for timelypreventionandcorectiveactions. O u a l i t y a u d i t s h a v e c o n f i r m e dt h a t but also Indoramahasnot onlymaintained thatwereinitiallycertiimproveds)'stems fied. Externalqualityindicesform vital inIndorama dicatorsof qualityimprovement. enjoyscontinuousreductionof customer complaints,returns,and claims.The bar codings)'stemon finishedproductsallows Indoramato tracethe date,shiftof manufacture,and production,/qualitycontrol personnel for the product. accountable . asthe industryleaderfor its Indoramais acknowledged technology, efficientaIId continuousgrowth,state-olthe-art production,high marketshare,wide product cost-effective markets,committeddeliv' range,nichemarketing,diversified prices,andmotiery proactivecustomerservice,competitive vatedmanpower.

PHILIPPINES Intel Phtlippines Manufacturing, Inc. at IntelPhilippines in operations management Excellence people year's wlnnerin development Inc.,last Manufacturing, in well'en meansexemplaryperformance and management, trenchedvaluesthat enablethe companyto achievesupreme qualityanddeliverproductsandservices throughhighproducimprovement. innovation,andcontinuous tivity,technology "To premier one-stop shopfactoryof Intel'svisionis be a strategicva.lueto thecorporationandits custome$,andasource Its values-risk taking,resultsoriof prideto its employees." orientation, andgeat-place-to'work entation,quality,customer exmotto-fuel everyIntel endeavortowardmanufactudng cellence.

"Breaknew grounds,""Go all the way to the finish,""Oualitywins and keepscustomers,""Do whatwe oughtto do...allthe time," "Our customer is king,"and'Our peoplemake the difference" arepopularIntelslogans. Intel'squalitycontol systemis anchored on the total qualitymanagement philosophy (product,/process,/people), management sup. port, total employeeinvolvementvia process controlteams,qualityassurance gatesandmonitorsin criticalstations, realtimelot inspection for earlydetectionandcorrection of in-process defects, end.oflinereliability monitors. andinternal audirslstems. lntel usesstateof the art equipmentandinstrumentation complemented by robustprocesses,/product andfailureanalysis,/development capabilities. Statisticalprocesscontroland qualitysystems comprehensive arein use,andautomated data collectiontechniques assuretimeliness ard accumcyof information.

SINGAPORE Singapore General Hospital (SGH) Singapore GeneralHospital(SGH)hasput strategy andvisionat thecenterof its management systems to promoteinno, vationand creativify.SGHhasdeveloped and implemented strategies to address IouI criticalaspects of hospitaloperations: customerfocus,intemationalbusiness processes, financialviability,andinnovationandleaming. SGHestablished ahighlevelServiceOualityCounciltasked to reviewqualitystrategies, systems, andpdorities;andto de, qualitypolicy,values,andgoals. In 1994, nne the hospltal's theSOCouncilmappedouta Service OualityJourneyto foster a corporateculturewith programmes involvingall the stafffrom top management down to healthattendanh.By implementing variousimprovement facilitiesand servicedeliverySGH hasbeenableto meetits financialtargetsandcontol operating costswithoutinoeasingmedicalfees. A recipientof the l9g2 PeopleDevelopment andManage, mentaward,SGHhasbeenableto sustainits marketleadership despiteseveralcompetitionand in the midstof higher demandftom the public.Technology hasalsobeenusedfor improvement of patientconvenience, servicequality,andproductivity: enterpriseresourceappointments and scheduling system(ERAS) ard patientselfregistration s),stem.Someexamplesof creativetechnology in the fleld of medicalservices includeAC deviceforfasterhealingandvirtualrealitysurgery.

,i.:li::ii

State-ol-the-art technology hasalwaysbeenpartof SGH'S particularlyin the field of medical edgeoverits competitors, and informationtechnology.Examples in the medicalfield includethe gammacameras usedin nuclearmedicineimaging,radiotherapy services, andtheteleradioiogy network.The hospitalhasalsopilotedinformationtechnology systems such asthelaboratory andradiology resultsclinicaldisplaysystems, computerradiography anddirectresultsreportingsystems to imDroveefficiencv andservice.

THAILAND SeagateTechnology, Inc. Seagate Technology, Inc. is the leadingdatastorageproductscompanyenjoyinga 34%marketshare.Its productlines includediskdrivesandcomponents, datastorage, management andaccess softwareandtapedrives.Seagate's headassembly operations arethe largestin the industry,with the capacityto producemore than 3.2 million head-glimal assemblies each weeK. Wth morethan30,000employees in thecountrySeagate Tllailandis thelargestbaseof operations of a muchbiggerglo. balcompany.Grosssalesfor 1995reached US$1,896million, up fron US$989millionln 1993. Oualityis an inherentpartof Seagate's corporate culture. problemsandim, Oualitycontrolcirclessolvemanufacturing proveproductivityineachstepof the manufacturing process. TheSeagate Excellence Teamcombines the experience of pro, ductionworkerswith the skillsof a multidisciplinary teamof engineers andsupervisors to solveproblems relatedto product yieldandoverallquality. Seagate hasimplemented varioussystems ploto increase ductivify."Man-Man"is a rcaltimetackingsystemfor stock/ shopfloorconuol,materialmovement,and materialrequirementplanning.Dataentrypanelsin its "paperless project"are designed to controlprocess efficiency, monitorrealtime productionflow,reducecontamination in cleanrooms,andelimi natepaperin the productionarea. 1997 January-February

lhp Aian Udnaget 35

HONG KONG Employees Retraining Board (ERB) TheEmployees Retrajning Board{ERBJ retrainslocalempioyees affected by economicrestructuring. job market ERBpfogramsincludejob searchskjllsconfidence, informadon, adjustment training,interviewing techniques vocational vocational skills,andtailormadecourses, language, basiccomputer programs courses, skillsupgrading, for theelderlyandthedisabled. Unliketfaditional teaching, ERBpro gramsare groupintefactions, role playing,anddiscussions. jobseafch Asidefuomacquiring and relevant skills to displaced iob programs workefs,ERBsretraining workersregain havehelpeddisplaced selfconfidence, developa positive attitudetowardwork andiife,proye thef workingabiliries despitephysi cal disabilities, andbe economically relieving independent, the pressure on socialwelfare.Retraining hasinstilledin the relrainees a concept of lifelonglearning. "Sfive forexcellence" ERB's mottoresultedin training125,000 localemployees in threeyears,exceeding the government's original target.Over 70%of the unemployed retrainees wereableto flnd a jobwithjn thelirstmonth.Therisejn Labor participation rateappears to bestronglyassociared with ERBs success.Femalelaborparticipa' hasreversed tion,in particular, its downwardtrend.

Hong Kong Hospltal The HongKongHospitaL Authorityis a non.government healti g0%ofsecondaryand services organization. It provides tertiarymedical care,2%of primarymedicalcare,andalmoslall institutional medical rehabililation in HongKong. lts policyis "No oneshouldbe denied adequate medicaltreatmentlhroughlackof means."TheAuthoriq/ serves all HongKongresjdents, especially the poor Thevisionof theAutho ry is to createa healthoutcomejocused, seamLess healthcaresystem, leveragingon itscollaboration with other TheAsianManager January-February 1997

healthcareprovide$andcommuniq/organizations andbulldingup infuasfucture andkey strategies. Hospitaldeliverys]'stemhasbeen restructured throughhospitalclustefing andservicenetworking.The ultimategoalisto improvethequalityoflife to ofthe communityand lo maximizehealthcarebenenb. The Authority'sdevelopment objectives are to developand to managethe publichospitalsystem,to deljverthe bestquaiitycafe withinavailable resources, to improvepublichospitalseryice to achieve patient-centered service, andto meetthein$easing demand for high qualitypublicservices and changesociopolitical parameters economic in thetotalhealthcareenvironmenl. The Authorlryachieved95%of its annualtargetsin the lastthreeyearsthrougbstrategic management. Itsan nualplanningplocess ensuledprioritization, costeffective decision making,andpublicconsultation andincorpomtion of societalvaLues in programintoductions.Alignmentof globaland localneedsand long-andshort'termneedsis alsoachieved in the process.

INDONESIA UniversitasTerbuka (UT) Universitas Terbuka(UT)is a learninginstitutionthathasgraduatedcloseto 98,000studentsin the past12 years. Learningobjectivesaregearedtowardhighereducation andaptitudeof everyIndo nesiannational.TheDepartment of Education andCulturehascommissioned UT to conduct"The Teaching ProSystemImprovement gramfor Teachers andInstructors." Currentrecordsregistercloseto 400,000studentsin teaching politicalsciences, andeducation, economics, socialand andmathand physics.Teachingmaterialsare relevantto the workjngstudents' dutiesdndre.pon.ibiliLjes in theirrerpecLjve careers. UTpromotes cooperation amongschools andcolleges for knowl edgeand educationenhancement throughthe shaing of academic professionalism informadon. Itreinforces andadministrative thatleads to maximumutilization ofprograms andfacilities. Operatjng expenses is thuskeptat the minimumwhile maintaining its high standardof quality. academic Non-UTstudents mayaisosha.re in thelearningprocess through govemment massmedia:television andradio.Several andpdvatein stitutionshavebeeninterested to adoptUT'scorrespondence study system.In additionto its headoffice,UT has32 branchofficesro facilitatedistance lealnins.

MALAYSIA MIDA Forthelast30yea$,MIDAhasbeenspearheading Malaysia's thrusttowardsindustrializationamong foreignandlocalinyesto$.Sinceitsinception, MIDA hasundertaken manyinvestrnent promotiondrives: generaland specificinvestnentsemina$,specific projectmissions, roundtablemeetings, information dissemination, mediapublicity,andotherpromotional campargns. With its network of intemationaland regional offces,MIDA hassuccessfully porhayedthatMalaysia is anattlactve locationfor industrialprojectJ.More than 3,000foreigncompanies hayesetup manufactu ng operationsin the country,usingMalaysia asa profitableexportbaseto penetratethe world market. Apart from its activeinvolvementin policy formulaton, MIDA will continue to facilitateits role as a one-stopinvestrnentagency. Amongits importantfunctionsare the evaluationand grantingmost of the requiredapprovals (licenses,/incentiyes/duty exemptions/expatdateposts)at the federallevel,givingadvice,/information on investnentpoliciesand procedures, assisting inyestorsseekingjoint venturepartners, andworkng closelywith stategoyernments.

SINGAPORE Nadonal Arts Council (NAC) TheNationalArtsCouncil{NACIwasorganized on thepremise thatart hasthe powerto makea difference in the livesof the people ol Singapore. Towards riis end, NAChasformulaled broadobjec tives,developed shategies, andsegmented the market. Forartistsandart goups,NACprovidesfinancialassistance and workingspacefor artistsaswel1asfundingfor thedevelopment ofart schools.Forstudents,NAC hasdeveloped the futs Educatjonpro. gam thataimsto educatetheyouthin the arts.Forthe generalpubljc, NAC sponsors variousalts events,organizes outreachprograms for the masses, andprovjdesfundingfor the activitiesof community art groups.WhileNACis a government organizadon, it doesnot rely on statefundsalonefor its operauons. It tapsthe pivate sectorby secu ng colporate sponsoN.NACis alsodevotedto maintainins and up$adingva ousart facilities.

PHILIPPINES City Governmentof Puerto Pr.lncesa The City Government of PuertoPrincesa servesits community throughthe followingmajorundertakings: agricultureand fishing, educadon andhaining,environmâ&#x201A;Źntal management, healthseryices, housing,infrasffuctureandconsbuction,nutrition andfoodprograms, andtourism. Thecity govemmentconductedtrainingseminarson foodprocessing,hillsidefarming,backyardandbio-intensive gardening for cooperatives. Fatmers lelearned thevalueof Dalanlran(community spirit) andshadngof limitedresources for optimumharvest. BantayDagat{BayWatchlis intendedfor marineresources protection,secudngthe city'sseawaters against localandforeignpoachersandillegalnshermen. Cleatliness drives,beautification campaigns, proiects, sanitation sagipdagat,sagiphangin,andinformationandeducationarecomponentJof the Oplan Linisprogam. Fifty (50) leaming centerswere consfucted-five two,storey schoolbuildings with 60 clasrooms,two technicalschoolbuildings, onecity highschoolbuilding, 18 elementary schoolbuildings, 15 day carecenters,andninesatellitelibraries. Thecity healthofficepreserves healththroughmatemalandchild care,immunization, disease controlprograms, dentalseffices,family planning,and laboratorytests.FouIsatellitehospitals are currently operating in strategic locations. pursuesa comprehensiye The city government solutionto the housingneedsof constituents iivingalongthecoastallines andsguat ter areas.In addition,inftastuctureand colsuuctionprojects asphaltplant,kilosagad(quickaction)taskforce,bridges,mdioroom maintenance building,city publiccemeterywharves/boat landing, andpublicmarket areongoingwith the ultimategoalof boosting economic deYelopment.

THA]LAND Chaipattana Foundation TheChaipattana Foundation wasestablished to promotethede, yelopmentof socialwelfare,improvethe people's qualityof 1ife,and enablethemto become self-reliant. Hismajesty theKingandHisRoyal Highness Princess MahaChahi Siddhornimitateand spearheaded ploiectsin environmental development andpreservation. Chaippattana focuseson deYeiopment actiyitieswhich complement ratherthandupli,-. prcjects. categovemment It has developed andpatentedan effectiveand inexpensiveuserfTiendly machineto treatwaste water The rehabilitation of mangroves in Laemphukbea sub-disuict in Petchaburi isapi lot forenvironmental conseffationanddevelopment. ludith Angela E. Alpay is the Associate Editor of TheAsian Manager Internet: <jalpay@aim.edu.ph>.

fg97 I TheAtan Managq January-February

Hobnobbing among Exemplars Awenns oFAstA Tnr 1996MeNecritttNr Asians eurtsies, bow to one another as a siqn of respect anctr friendship.

Eight Moments. lt Lsnot al! hard work and na plau...ke!:1de(ision t'nakers alsa take ttme ta enjo1 the fruits of thetr labor. After all, the 1995 winners deserve their tittes.

lluilding Eridges. The awards cerernonqis not onlAan opportunitt4to celebratevictories but t"noreso to strengthen nett/'lorks.

JulI Qizllerg, 9nternationallq renowned rnanaqernent experts ana rcp executives across Asia share ideas. rnsiqhts, experiences, personalities, and cultures in pursuit of rnanaqement exce!lence.

JYledia @overage. A wide ranqe of media relations netwot h allow- neiqhborinq cowmunities information on current developments in the A9.lvl thoroughfare.

And the winner 8... prof Maria /WilaqrosT. Qarcia.)4anaqement flwards of /lsia ExecutiveDtrector, de,lares /lsia s be>l , ampaniesin Honq Konq,9ndonesia. .Mala4sia, P hiIipp ines. Sinq apore, and'L-hailand.

Sense of purpose...and Staging Power Dean Jesus Q Qalleqos. Jr. challenqes this qear's awardees to uphold their commitment to manaqement exce enae.

Close to 3OO partici Jeast for Ehe "Jittest". pants attend the awards dinner to honar outstandir!a perlormance !n host (ountries acrass Asia.

jellow wtnners applaud and welcoyne Qheers! their colleaques ta. the ranks of industrq leaders and tra ilblazers.

Congratulations! Candidates are evaluated throuqh a qualitative review of their manaqement fun(tions. culture and environment, and .ommitynent to total qualttu.

APECWithoutTears NGOs'Call for Participation andTransparency ImplementingAPECin the Philippinesis not the question:

social, sett@ up safeunetsalongwith economic, andpolitical reformsin continuingdialoguesis. do n this era of globalgovernance, mesticpolicy is increasinglyinfluencedby internationalfora and re' gimes.Global,regionai,multi-,and sub' areplaying$eater regionalorganizations policiesacrossborrolesin harmonizing Amongthese is theAsia de$ andcultures. (APEC). PacificEconomicCorporation the in' However,for the Philippines, of APECin the yearsto stitutionalization comeoffersbothptomisingandfrighten' on t]Iesectorconing options,depending of policy changes cerned.Stakeholders are basedon APECpolicydiscussions industdes, manyandvaried.Competitive havingthe capacitylor higheroutputat efficientcost, look forward to a global marketfor their products;whereassmaller andmorerulnerablesectorssuchasagri' are culturistsand smallentrepreneurs survival in a new with thet concerned Giventhe inevi economicenvironment. prospects of tradeand investment table l1betu)inttonin thecoun[y industriesthat have flourished behindwallsofprotection 40

The AsianManager January-Febrtary 1997

justifrably and mechanized, muchIo learin thefaceof g]o- the highly subsidized, baleconomicintegration andnewmarket efficientfarmsof North America;small from facenew competition thataccompany thisprocess. entrepreneurs dynamics Therefore,while opportunitiesand largeforeigninvestors;and labore$risk These risksaboundin theadoptionofa fteetrade losingtheiriobsdueto downsizing. may stakeholders aswell mustbeheardin disregimeand althoughopportunities outweighrisks,a guarantee is neededthat cussions,policies,and implementing thesewould affectnot only tie concerns ofthosefacingthemostrisks mechanisms: extentpossi- theirlivelihoodbut theirlives.Philippine be heardand,io whatever thatitwas expressed ble,assisted. Itis anevenmoreurgenttask, NGOrepresentatives giventhe concernsthat APECprocesses not importantfor governmentto agree takenby NGos,for the and with thepositions havebeentermed"not transparent" 'undemocratic" by somesectors.Imple- timebeing:Whatis mostimportantis the is not a opportunityto statetheirpositionsin the mentingAPECin the Philippines question:rather,tie set-upof protective hope for working togethelfol concrete actionflom govemment. measures, or safetynets,alongwith the responsive pu$uit of economic, Thus,believingin the needfor grcater social,political,and participationand uansparency,the AIM legislative reforms,is. SyCipPolicyForum(WSPF) Recognizing the need to involve Washington through' APEChasinstitutionalized initiateda seriesof consultations stakeholders, Actingas dialogue the participationof the businesssector out the Philippines.* WSPFbtoughtto' Advisory moderator/facilitator, throughthe APECBusiness andnon-govbusiness, APECwill af gethergovernment, However, CouncilIABACJ. Consultations sector. etnmentalorganizations. fect more than iust the business with werc held in the citiesof Cebu,Davao, Fa-rmers arewoniedaboutcompeting

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stateshould"bethere,"but forwhomand to what extentis not yet clear.Thereis that proteclionof small someconsensus playersandmorevulnerablegoups such and SMEsis as farmers,cooperatives, canaddress neededbut how government is similarwith the general theseconcerns debatebetweenNGOsand government, e.g.,how to furtherthe Comprehensive AgrarianReformProgam;protectparticularcropsectors suchasmeat,corn,sugar; somesectorsat a safetynets. and set up long-promised APECIssues liberalization shouldpush While economic Theforarevealed theneedto underdisadvantage,the through,a strongstateisneededto smooth in APEC standour nation'sparticipation inequalities in the process. suategic level,t.e.,queson a conceptual issuefor NGOsis The negotiatingrole of government impli tionson Philippinecommitments, not competitiveness vis-a-vistheAPECprocessalsoneedsclarications, andtimeframes. concelnis how to flcation.Therepeated raisedwason conThefirstquestion but equity levelthe internalionalplaytngfield since fiamework tentof theAPECliberalization countriessti11 adhereto somedeveloping andlts apparentclashagainstsustainable while thePhilippines to longover- protectivemeasures NGOs sidiesandtariff adjustments development. andpeople-centered madeclearthatAPECto themwasguided due infrastructure.At the sametime, is unilaterallyliberalizingits own market. pro- Understandabiy, the concernof NGOsis calledfor anagenda ideologyratherthan NGOscollecilvely by a growth-oriented perspective. Regional moting"faif," ratherthan "free,"trade, how to ensurethat their input is incorpoa developmental and ratedin the nationalpositionor,in develtradeand investmentand economicco- one which would be sustainable par- opmentterminology,how to guarantee promote in terms of opportunities would equityboth are understood as operation "sharingof the "civil sectorparticipalion."Likewise,they performance in the in the marticipation and for competitive with ongoingconsultations. areconcerned thegate bounty." ket and,in thebestof scenarios, of governThere is hope for convergence encouraged ecoTherole of the statewas way to efficient,fair,andtransparent "activist," "interventionist," positions if, as the govNGO ment and if not thatis beneficial to all. to be nomicinteraction "fieeing willing to accept perceived promoting NGOs are ernment said, consumetadvocacy andawareBut the matkets"was "notion of compolicies on the a dialogue based more asalsoopeningthe marketto big andfor- nessregardingcompetition the present Although petitiveness,"-concurrently, eignplayersand eliminating smalland than enactingmorelegislation. "unnecessary" participation APEC. in APECwas acceptedin frameworkof localplayers. TheNGOagendahasto do primarily the varyingdegrees by differentNGOsectots, the consultations, Throughout develWas one commonthemewastheii urgingfor with the promotionof sustainable wasquestioned: roleof government par presence to Philippine in socio-eco- opmentasthebackbone de- continuedstate it capable of makingsoundeconomic unwitwittingly or ilcipation. If APEC Wouldgovernment nomicaffairs. for all sectors? cisions tingly,placessomesectorsat a disadvanIf desistin timesof marketimperfections? tage,the issuefor NGOsis not compeilwerefaringworsethanthe Recommendations somesectors be The most perceptibiegapbetween tivenessanymore,but equity:the protecrest,would or couldthe government andNGOsis thelatter'sideo- tion of the rightsof women,farmersand for theirtroubles? Can government heldaccountable to economicliberaliza- fisherfolk,indigenousculturalcommuniHence, a para- logicalresistance theproblems? theyremedy regime, the tion fiameworksthat do not seemto in- ties,laborersandmigrantworkers.If the fiee-market dox:in a complete to miniscenadois supposed area-basedfree-market to bethe terfacewith people-centered, seems mostimportantguarantee "guidingpresence" intervention recognize mizeineffectivegovernment NGOs,however, of agovernment which development. directlyin economic thatwhiletheypropoundtheirsustainable andfostereconomicgrowth,thenat least doesnot participate on emphasis guarantee agenda,what is moreprac- theremustbecorresponding fair- development affairsbut cannonetheless wealth in terms distributingthls newly-generated ticalin thelongrun areguarantees nessin theprocess. andexecutiveactionsto help moreequitably. sectoralconcelnswere also of legislation Specific have Morespecificrecommendations Representatives fiomcooperatives,weaketsectorspreparefor foreigncomraised. for petition.Partof the gapbetweenthe sec- to do with physicalinfiasttuctureneeds, andNGOsrequested smallbusinesses, to marketinandaccess measures thatwouldprotectthemin the torsis widenedby the lessoptimisticatti- creditassistance, andhelpthemin thetransition tudeof NGOsagainsta moredetermined formation,whlch againhaveto do with short-term levelingthe playingfield. The following and adjustmentto tradeliberalization. o n v p r n m e n t drawnoutfromthefora Thus,thefustsetof recommendationsrecommendations to financeand Giventheirlimited access institutionalization fewvenuesof informationor networking, hasto do with the role of the state.Most mayensurea smoother theywould not be ableto surviveagainst sectorsseemto agreeor imply that the of APECin the Philippines: de Oro. In August1996,a +r lLr s^ ku :l B^ P^ lr^d,y, t^r-r-J . andCagayan Other questionsraisedwere related dialogueinvolvingthe Philippinedelega the or- to how governmentcouldguarantee tion to APEC,19 non-governmental ganizations, organizations set-upof safetynets that it had already andI 1 business took placein MetroManila.WSPFthen promisedGATT/WTO,rangingfromsubtheresults documented anddisseminated to bridgethe gapbe of thesedialogues tweengovemmentand varioussectols, If APEC,wittingly or issues andworkingoutrecomunearthing unwittingly,places mendations.

TheAsianManagerI January-February1997

1. Tocomeup with a consensus on thePhilipptnes' r liberalZaframeworkfo tion. This entailsclarifyingthe rationale for unilateralliberalization andtheroleof government in a globalfreemarketregime in termsof decisionmakingandaccountability. 2. To give high, if not the highest, preferenceto sustainabledevelopmentas aguiding imperativein the drivefor liberalization.Lawsmust be reviewedor developedto protectand preserveproductivefarmlands, endangered forests,watersheds,andmarineresources; 3. Toprovidefullsupportto smalland medium enterprises,cooperatives,and enterprises of peopleborganizations and communitiesin termsof technicalsupport and uedit ftnancing; 4. Tofoster a market enyironment where marketplayerswill not, by them selves,not createinefficientstructuresor enterlnto monopolisticatangementsto thedetrimentof numeroussmallplayers; 5. Tocontinuegivingthe htghestsupport for massiveinfrastructuredevelop. ment: the constructionof seaports,airports,and roadnetworks;andmakeprovisionsfor safetynetsthat wouldtempo.

rarily protect wlnerable sectorssuch as agriculture;and 6. Tolnitiateandconttnuewith a social reform agendathat is consciousof labo4 environmentalrlghts, and issues such as equitable wealth distribution wealth. Conclusion Any policy passedwili alwayshave upstreamand downstreameffects.This howeverdoesnot negatethe necessity of continuingconsultations and dialogue. Stakeholders must be givena chanceto contributeto the shapingof their own future.Only then doesthe process become genuinely democratic andtransparent, and consistent with APEC'sown parameter of consensus. While greatereconomicefficiency thtoughliberalizarton maybebeneflcialto most,therearevulnerableand muginal sectorsin societywho mightsuffer,especiallyin periodsof rapidtransitions.The task,therefore,is to providethesesectors with protectionand the meansto make the transitionto the new economicenvironment.More importantly,structures mustbe put in piaceto ensurethat these

sectorsbenefitfrom economicdevelopment. -* AIM Washington SyCip Policy Forum actsasa neutral"convenor"on oitical issuesthat requiremulti-sectoral participationfor their resolution.WSPF conferences emphasize actionand"getting thingsdone." Meetingsarenot primarily analyticalor academic. Theprocessis intendedto resultin botha qualitydecision, the "correct"or "right" solution,aswell asa mutually"acceptabie" decision, which allinvolvedstakeholders canlivewith and work towards.The NGO consuitations were supported by Philippine APECWorkingGroups, TariffCommission, Department of Tradeand Industry NationalSecurity Council, CebuChamber of Commerce and Industry PhilippineBusiness for Social Progess- CebuChapter,MindanaoBusi nessCouncil,DavaoCityChamber of CommerceandIndustry, NorthMindanao Counci1of Chambers, Inc.,andFreeTradeAsia. ProfessorChitoB. Salazaris the Director ofthe SystemsCompetitiveness Deskof theAIM Washington SyCipPolicyForum.Intemet:<csalazar@aim.edu.ph>. MarianneC. Carandang andMa. CelesteS.Lecaroz areAIM WSPFResearchAssociates.

Meetthewho'swho of thephilippines His ExcellenryPresidentFidel V Ramos, Honourable Melito SalazarJr, Head,Boardof Investments SecretaryCesarBautista,Departmentof Tradeand Industrv Honourable Richard Gordon, chairman, SubicBaytvtetropolitanAuthority Honourable Amado lagdameo, Secretary of the Departmentof Transportition and Communications Ilonourable GregorioVigilar, Secretary, nepartmeni of fublic works and Highwap Honourable FranciscoViray, SecretaryDepartmentof Energy Honourable Robertode Ocampo, Secretary, Departmentofiinance Honourable Gabriel Singson,C,overnor,BangkoSentralng pilipinas Honourable konardo Quisumbing, secretaryoepartmentof iabour and Employment

SIXTH ROUNDTABTEWITH THE GOVERNMENTOF THE REPUBLICOF THE PHILIPPINES SHANGRI-H. EDSA PLAZA'HOTEL' MANILA' FEBRUARY Lyzt, tggl Forfinther tnJormntion pl.easecontact CAROLINE

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Trailblazing

Business Research: On CourseTowards the APECCommunity HRDfor SMEs,whichcomprise90%of APEC'sbustness enterprises,is a keyavenuefor researchcollaboration

hen the businesssector,the instituacademe, andresearch tionsfrom 25 countriescame togetherin the InternationalBusiness oftheAssociation of Research Conference Deans'ofSoutheast Asian Graduate (ADSGM), itwas, ofManagement Schools to my mind, a first step to shapeits collectiverole in the AsiaPacificregion's drive toward sustainedslowth and rlarralnnmont

It is in this contextthat two points arekey,now that the 1996 APECEconomicLehders Meeting(AELM)is over and actionplansof the APECeconomies aresetinto motion: first, everysectorof the APECcommunityhasan evenmore oitical role in shapingthe courseof $obal development; and second,sustained and intensifiedcooperationwill haveto may be pursuedsothatAPECeconomies collectivelycontinueto reapthe benefits occurringin recent of the development years. The Interplay of Collective Roles andreHowdoesbusiness, academe, roleinterorganizations' collective search playwithvariousdevelopments in thearea As economies of regionalcooperation? soshould to cooperate, deemit necessary lt both and organizations find institutions practical to establish a comrelevantand rethe complex mon agendato address 44

quirementsof our changingworld. On bilitiesof engaging otherregionalbusiness the way to APEC'saim to fulfllling a vi- and private sectororganizationsin the sionfor anAsiaPacificcommunity,it rec- APECprocesssuchas the PacificEcothe Council(PECC), ne- nomicCooperation ognizesthat globalization of business cessitates thedevelopment of region-wide PacificBusinessEconomicCouncil practicesandpoliciesto facilitatethe fiee (PBEC), NetBusiness andtheAsia-Pacific flow of goods,services, andcapitalwithin work. APEC'swork is alsobeingactively the region. Thus,APECsffongiyencoursector, pushedby ourpartnersfromtheacademic agesthe civil society,the business sectols.Studycentershave and the academicinstitulionsacrossthe andeducation in at least14 member regionto participate in itsvariousprogams beenestablished servingasa rich baseof infortradeand economies, andactivitiestowardactualizing which can be teadily investmentliberalizationandfacilitation. mationresources by variousworking and tappedand accessed This meansfor business, academe, re- groupsand fora of APECto advanceits both industry-and university-based for indeed, visionandthrusts.TheAsianInstituteof seilchto getthefuacttogether, (AIM),oneof thefirststudy the interplayof collectiverolesform cogs Management centers,has contributedimmenseiyto of theAPECwheel. in the developConsiderthe first meetingin Blake APEC'swork, especially among Islandin 1993,APECeconomicleaders mentof commonpolicyconcepts governments, that andacademe Forum(PBFI business, createdthe PacificBusiness to mani- guidetoday cooperativearrangements andtheAPECEducation Program fest the businesssectol'sessentialand amongeconomies. More andmorestudycentersarebeand relevantlink to thework of academic to help APEC'sgrowing ing established institulions. educational in informationrequirements In 1995 at Osaka,the leadersreaf- research'and firmedthe importantrole of the business the region,given an ever challenging growthanddesectorin APEC'sagendaby creatingthe coursetowaldssustained APECBusiness AdvisoryCouncil(ABAC). velopmentin the AsiaPaciflc.Thestudy ad' Convened in 1996underthestewardship centersofferqualifiedandsubstantive of the PhilippinesasAPECchair,ABAC vice on variousmattersof interestin isprovidespolicydirecilonsto APEClead- APEC-from economicto pedagogicai mat- sues,suchas thosethat affectlearning erson business andbusiness-related possi potentials of schoolchildrenin theregion's tersin the region.It alsoexplores

TheAsianManagerI January-February1997

variouseducational centers.

From Role To Relevance: ResearchCollaboration Business ResearchRole: Foryouwho interface business, civil HRD for SMEs society, academe, you will andtesearch, Trailblazing business research is par- findgreatrelevance in theBusiness Manticularlyimportantin the areaof human agement Nenvork.It hasidentified tacitly resources development for SMEs.APEC both a commonagendaand a common greatimportance attaches to the role of actionarenawith itsrecentinterestin ensmallandmediumenterprises (SMEs)as vironmentalmanagement education. agentsof economic$owth andprogress Fromthe conductof conferences on fuin theregion,comprising 90%of its busi turedirections in environmental education nessenterprises. TheAsiaPacific's gowth of engineers to the establishment of a rehaslongbeenfueledby thissectorandit gionalcooperation network for critical is expected thatit will continueto do so, strategies to respond to HRDimplications providedits capabilities are constantly of environmental industrlestechnology upgraded to matchthedemands of a grow- issues, to the establishment of the APEC ing globalized community.And how will sustainable development trainingandinthishappen? formationnetwork,I see,too,how busiIn the HumanResources Develop- nesstesearch collaboration in thisareacan ment WorkingGroup,a networkof re- enhance people's well being.Theinsight searchcollaborators is belngestablished is clear:the research modeis coliaborato follow throughindustrialtechnology tion,if it is to be relevantandresponsive and humanresourcestrategies in the to our kaleidoscope of interlocking lnterAPECregion. More than 350 ioint ac- estsandgoais. tivitiesare alsobeingundertaken under theEconomic andTechnical Cooperation Of, By, and For the Common Weal in APEC.Thereareno easyanswers, as As APECevoivesand strivesto imyel, but theprocess is on track. plementmeaningful measures andinitiatives,business, civilsociety,academe and Cooperation at Core: not only comprise cogsof APEC'swheel People'sWell-Being but alsoits commonweal. AsAPECpartners, collaboration In recentyears,APEChasgtownto isinseeresearch collaboration, includingthat evitableto continueto makethingsmove. Leaders Meetingin with civil society,in variousconsultation TheAPECEconomic processes The especially in economic andtech- Manilahasfleshedout manyp1ans. that bindsthe economies nicalcooperation to whichdeliverstangible consensus gainsto people.APEC'sultimategoalis fulfill them restson collaboration that works. Together then,1etus collaborate thepeople's well-being, afterall. For example,the APECCenterfor andfulfill thevisionof anAsiaPacificcomTechnology Exchangeand Trainingfor munity. SMEs(ACTETSME) in the Philippines, functionsasa resource centerlinkingSME EDIIORS' NOTE: This article is support agencies, entrepreneurs, services adopted from the Stdtement of the for informationnetworking,mobilizing Chairman of the APEC Senior Offitechnical ski11s trainingopportunities, and cialsMeeting before the International organizing specializedtechnology transfer Buslness Research Conference of of Deansof Southeast activities. NotehowallAPEC's areas con- the Association vergein a centerwithin everyman'sgrasp. Asian Graduate Schoolsof ManageAnotherexample is theAPECYoung ment, chaired by the Asian lnstitute Entrepreneurs' Conference in Manila,a of Management,held in August 1996 stimulatingvenuefor ideasand business in Manila, Philippines. partnerships. M. Macaranas zuasEconomics DepartA third arethe ioint projectswhich Dr. Federico mentChairman of PurdueLlniuersity in NewYork capturetheessence of networkingandthe and the only Filipino (to date)inoited to particivalueof humancooperation. TheHuman potein thePugwashConference of NobelPrizezuinResoutces Development WorkingQroup nerswhen he optedto zuorkfulllime in the Departmentof ForeignAffairs after the Philippine hassuchnetworkswith cross-cutting con- EDSAReoolutionin 1987. He is currentlylJncelns. dersecretary ond'1996 Choirman of IheAPECSen-

1996 PHILIPPINES GOVERNMENT DIRECTOW With an index, this directory conlains names, addresses,fil and phone numbeF ol otties in the thrae branchesol government,includingprovincial, city,municipalauthorities, embassiesand@nsulales o l t h e P h i l i p p i n e s ,g o v e r n m e n t c o r p o r a t i o n s , constitutionalbodies,state @lleges and universities. P550 r copy In the Phlllpplne3.US$30a opy for overseasordeF, inclusiva ol meiling and handling,

1996DIPLOMATIC & CONSULAF DIRECTORY OtfthepfessJune 10, I 996 withlil &lelephone numbers, this comprehensive64-page dirsctory containsupdatedlists ol 1) embassies,@nsulales, international organizations in Metro Manila, 2) embassies, consulales, honorary consulatesof the Philippines,3) DFA otlicials,DFA attachedagencies, ottices in th6 provinces; and 4) ambassadorial resumes. Includesthe DlplomatlcSoclrl U3rge, a guide tor U. S. Represenlatives andtheirfamiliesDublished by the Foreign Service lnslituts, U. S. State Oepartrcnt, Washington D. C. This protocol guide may also be usetul to oiher diplomals, govirnment otficials, internalional business exgcutives, school otficials,teachgrs and studenls of toreign service, P250I copy In lhe Phlllpptne3.US$l S a copy f oroverseasordes, inclusiveol mailing and handling.

1996 AD.MEDA.PR DIRECTOW With an ind6x, this is a 96-page directoryot trimediE and allied organizations in ths philippines, includingFilipinotri-redia based in other€untries. P350! copy In tho Phlilpptnes.US$21a copy forov6rsgasorders, inclusivaol miling and handting.

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ior OfficialsMeeting(APEC-SOM). January-February1997 ) TheAsianManager

AJobfor RubenSantos CorporateObiectlvesvs.FamilyTies?

"Ruben,I'm ED|IORS' NOTE: ln this new section' into her ofnceandtold him: managementcases are presentedfor leavingfor Batgkoktomorrowbut I'll be discussionby scholarsandpractitioners backa weekfiom today.NoW I haveall thesematerialsthatneedto beprintedby the of head ubenSantoswasthe thetimeI getback.I know I don'thaveto fl sayanphingmore.Youknowwhat should be doneaboutit." Rubensmiledandnodded-when did with the Centerfor threeYealsnow Rubenusedto work as a tlTesefter he eversayno to theheadof the Center? left the next dayfor BangDr Jacobs with an Englishdaily newspaper,the in BangPhittDoinelrtAane.When the Centerset kok. Asit tumedout,herbusiness up its own PrintingSecton, they started kok took only threedaysandbeforethe to look aroundfor a personwho hadex' weekwasover,shewasbackin Manila. pedence in'printingworkandwasreliable Everyonein the once wassuryrisedt0 see retuln. and hard-working.Rubenwas recom- her backbeforeher scheduled The printing job Dr. Jacobsgave mendedby anunclewho knâ&#x201A;Źwthedirec' in her mindwhen tor andwashired immediatelybecause Rubenwasuppermost shecameback.Shewantedto seehow of hisexcellentcredentials. with Ruben's he wasdoingandif he wasablet0 meet Dr. Jacobswas haPPY performalce.Shefeltthathe couldbere- the deadlineshegavehim. to Rubenwas surprisedbut Pleased liedon for aIIykind of pdnting.Rubenwas alsowell-likedby hisstaffol three.Under see Dr. Jacobswhen she suddenlyap' could pearedin the PdntingSection.Hesaidto thePrinungSection hissupervision, her: "Welcomeback,ma'am.Asyou can do ary iob requiredbYthe Center' for print' see,we'te all workinghard to get your Thecenterwasresponsible andculturalorienta- orderdone." ing Englishlanguage lookedarcundthemediumD[ Jacobs Uon materialsfor use by Indo-Chinese in Morong,Bataan.Therewas sizedroomandnotedthatit wasespecialy refugees constantpressueon Rubenandhis stafl crowdedthis morning. Shenoted five to meetdeadlinesgivenlittle leadtime. moremen workingin the roomandshe 'Where haveI seen Dr Jacobsneverheardanyof the Printing thoughtto herself: Whydo theirfaceslook staffcomplaining'Shelelt g00d thesemenbefore? Section's shere' overher decisionto hireRubenlniUally. sofamiliar?"Aftera few seconds, calledRuben membered: thesef,veothermenwereall A monthago,Dr.Jacobs

;::::m5:;liT.'."; fft :ffi::

1997 ManagerI January-Febmary me Asian

ShehadbeeninEoduced relaflves. Ruben's hostedbyRuben to themata get-together whenhisthirdchildwasbaptized. hozeand facesuddenly Dr Jacobs' botheringto becametaciturn.Without she Section' greetthemenin thePrinting turnedaroundandsaidin aflrmandstem I wantto seeYouln mY voice,"Ruben, office.RIGHTNOW!" for a minuteto think Rubenstopped back:therewasnothingwhichhe felt Hescratched couldhaveupsetDr.Jacobs. her' andlollowed hisheadin puzzlement WhatonearthhadhedonewronS?

A Question of Values is to de' A commonuap fol managers stetch targetsandexmandaccomplished andfollow to alsoguess pectsubordinates is their way to get there.This clearlya a differencein in perspective, difJerence values.Who is right? Typicdlof anypeoplesituation'thean' obsweris alwayscontextual.Dr.Jacobs sees viouslyseesnepotismwhile Ruben nothingwrongwith hhingrelativesaslong ashe couldgetthe iob done.A question of values.Thetaskis cled but theway to getthereis not. An outstandingquestionis, could Rubengetthe job done? If it so matters

to anybosshowajobshouldbedone,then Trompenaars identifiessevencultulal ir shouldbe communicated. Hiringrelapatternson how eachculturedeflnesimtivesis theway Rubenknowshow. It was pormntlifeconsideraonsandrheirvarianot an issuefor him. He couldnot even l0ns: immediatelysee Dr. Jacobs'ssourceof I . how we goaboutdefiningrelationNepotism!Abuseof authority!Tribal c0nstetnan0n. ships andrules(universality versusparticu famillsm!...And thereforebackwardand All-in-the-family hiringis notnecessarlarity]; BAD. Thesethoughtsran throughthe ily bad.\ryhi]eit is commonlyequatedwith 2. our concepts of the individualand mind of Dr Jacobsif she is a typical conflicts olinterest,someprogressive comhis relationships to the group(individualwesternerwith a northern European,/ paniesseeit asa competitive advantage. Anglo-Saxon primarylevelcultureandlit" ismversuscoilectivism); Southwest Airlines,the only U.S.air3. our yiewsaboutfeelings andrela tlesignincant exposure to moretraditional line thatmakesmoney,hasmarriedcou(affective tionships versus neutral culculturesasmay be foundstill predomiples accountingfor nearly 7% of its tures); nantin manyprovinces ofthe Philippines. worKorce. OuadGraphics, a Wisconsin4. the natureandmagnitudes of our Eachculturerepresens a worldview. basedbilliondollarcompany, operates with And (specificity involvements versus diffusetheseviewsdiffersubstantially.Given nearly60%ofits 8,416employees related theIocations ofthe (\4etNameseJ refugee nessJ; by bloodor marriage.MotorolaandDou5. how we accordstatusto people centersin the Philippines(Palawanand ble Treelikewise"smile"at a genepool. (ascdption versusachievementl ; Bataan) hasmostlikelybeen , RubenSantos Thesecompanieshave extendedthe 6. how we view and manage time; provincial raisedin a town away from meaningof "corporate family." and, large,westernized metropolitancenters. In the Philippines, SanMiguelCorpo. 7. how we relatewith nature. While the caseis silent on Ruben's rationhasits own generations of Limiaps, Trompenaars' work is not the only socialization andformalschooling, much S a n t o s e sM, a u r i c i o s ,a n d C e l d r a n s . framework for understanding culture. of it, certainly, themostbasicwouldhave UnileverPhilippines, ahighlycompetitive Edward T. Hall's work Silent Lan{The beena traditionalhomein a taditional productscompany, consumer hasits own and The Hidden Dimension to name &Agg town in a prcvincialschoolwhich reinpoolof couples, fondlyfeatured in one popular twol andhisconcepr of forcedtaditionalvalues.Somewhere in themost Valentineissueof rhecompanymagazine polychronicand monochroniccultures thateducation, Rubenwouldhavebecome as"Unilovers." jusr people viewandhandle acquaintedwith what his teachersand fhowdifferent Whetherby accidentor design,these "modern the concept of time) are equally useful. other superiorslooselycall or companies choseto look at nepotism Maybury-Lewis' work on tribal westernways." To which introduction Certainly, throughthe lensof genedcs. Because ral(Mjllennium: Wisdomin cultures Tribal they would haveaddeda phraselike entis genetic,thebestpotentialsourceof "which A Worldr Modern shows how we may is differentftom ours." Mostlikely, excellentnewhiresis thepoolof relatives have thrown babies out with the water hisdailylifewouldhavebeenlivedashis "modernize." of excellentemployees. in our mindless ddve to pa-rents andgandparents livedrheirs. Sornecompades arguethatfamilyties work is simplyeasierto use Over half a centuryof behavioral Trornpenaars' promotehonesty. Thereis an abundance because it was wdtten with managers in scienceresearch hasyieldeda wealthof of storiesaboutfamilymembers coming mind. insights,farfromcomprehensive but useoutin theopenaboutanotherfamilymemEx-patslike Jacobsowe it to them' ful thathavebeenconvertedby peoplelike ber's{dislqualification on the job.Then, selves, to organizations theymanage, and FonsTrompenaars (RidingTheWavesof claimsof familytiesbeinga retentiontool to locals theywill hire to be more mindful Cultue:Understanding CulturalDiversltv is not difficultto believe.After all, how Learnto work in Business. NicolasBrealeyPublishing, of culturaldifferences. manypeoplefind it easyto leavea happy within its rubric for a start, and as they London,1993)into usefulmodelsfor unfamily? gain an understanding of the local culture, derstanding behavioralpatternsof peo. "westHiringrelativesbecomes a problemif ple leam to mutually adopt their own ftomtwo extemepol culturaltypes, it is not a conscious business decision. like pragnatically adopt Rubenand Dr.Jacobs. Socialscien. ern"workingmodels, That is when ir becomes rhe breeding get inginto it forms that things done faster tistsarelikelyto recognize TalcottParsons' groundof favoritism,whitewashing, and "patternvariables" and less wastefully. while slowly and el in the Trompenaars' confllctsofinterest.However, theflipside fecrively changing less efficienL and less model. is,whenoneis openaIIdclearaboutwhy Trompenaars saysin his firstchapter: effecdvewaysof rhe locals.so thar rhey it is beingdone,all-in-the-family employ- "ln everyculturein the world,suchphe- andthe restof their teamcanfunctionat mentbecomes lessof an issueandmore nomena as authority, bureaucracy, its peak. of a chosen,possiblypowerful,way of creativity,goodfellowshipverification,and - Prof.Maio Antonio G. Lopez working. accountability areexperienced in different PilipinasShell CorporationProfessor wayl That we use the same words to - RhodoraPalomarFresnedi of Public Administtation describethem tendsto makeus unaware M anager for Remuneration Asian Instttute of Management that our culturalbiasesand ou accusandManagement Development tomed conduct may not be appropriate UnilevetPhiltppines nr <h)rpd" lit^li.< rr'ino'|

BeingMindtul of CulturalDifferences

1997 January-February

TheAsianManager 47

SevenDeadly Vices Communication At core,culpabilityarguesfor moresustained, positive interactionin the workpkce

. Be as speciflcas possiblein the suchas "My managerdoesnot sponses "l you use. am not important wordsor phrases careaboutme," . Actively share informationand here.." . Paronizing.Thereareoccasions feelings. . Talk to employeesasone adult for praises, for evena complimentcanbe takenthe wrong way, if ilftimed. The to another (theway you would like the experience with the current managerto talk to you). Alwayssolicit employee's and reacideas,suggestions, haveto employee andwith pastmanagers manager "l A comment like amglad uons. beconsidered. . Follow through, always-no ex' you finallygot the projectdone..."may be thoughtof aspositiveby the manager ceptions. . Recognizethat the job of the ifbrought bytheemployee, butasnegative manageris to removeroadblocks,ir up outsidea meeting. . Avoidingissues."l will lookinto ritants, and frustrations, not to put "Let . Threatening. Statements with that..."; mecheckit outandgetback them there. "You "Youmust.r.or beThesemay seembasicbut they are haveto...ol royou. Thisge$themostcomplainb else..." or Comget often difficultlo spotandchange. in time to rarely back cause managers produce anresentment and often e1se..." "lfyoudont..." resolvethe issue. else likeeverything effectively, municating ger;thosebeginningwith "You . over does not happen want to do well, Con' we Name calling/Sarcasm. rebellion better..." encourage or had vlces with "Youatecareless" night.lt isa lifelongjourneybetween fiontingemployees andattemptsto beatthe system. "You usto keepretum' . Giving unsolicitedadvice. The or aregettinglazy"will producede- andvirtuesthatrequires our enerlike "Who do you think ing to the basicsandrefocusing onlyadvicethatis valuedis advicethatis fensivereactions "What positive. Falling judge gies the and sustaining that you me?" Wisecracks are to you askedfor. The statement "l am gladto shortof thesepointersdoesnot necessar"l'11 put people as down, such do it in shoulddo is..."oftenresults "Yourproblem of$eat com' is..."pfo' seeyouf,nallymadeit ontime..."will even i1yexileusfromtheparadise myownway..."; "You us to b ngmore it challenges municators: with hostility. be met do not reallyknow anything duces our communication peers beneath if substance out with Meanwhile, check you takecareof aboutme. why don't youareableto successfully developseven styleswith thosewe work, love,andlive yourprobiems?" we may,in theend, with, sothatperhaps, . Vague tanguage. Saying"We virtues: . for heavenly opportunities create endless is not automati Develop trust. lt needto comeup with a bettersystem" given; dlscourse. it must be earned. cally get' createsconfusion.Is the employee . Openly communicate more going Isthemanager dnganassignmenll Mila.rosT. Gnrcii is the Erec liitt Di Profcssor you have to or need to. Makeit than to do it? ls the managerlookingfor sug n,cior of lhe MonagoncnlA ,alds ol Asia and yourropprioriLy. whatever back leoclrtsCorpomfuCotrollwliant Supplv gestions? ions|ni Ad|lttt is' . W i t h h o l di n g i n f o r m a t i o n . gound informationand reasonspeople i n g i n t h e M B M p n g r a n . I n t e r n P ! : Beabsolutely <dtgnrcia@ai tn.cdu.pIt>. changes. suchas "That'sconfidential," needto understand Phrases "Youdo nol needto know..."resultin re- honestwith al1employees.

hisallstartedwhenI clippedDrake "The Top Ten Business Revieds Sins,"carryingit Communication aroundasa reminderof what lo do and setting,helpingtrack not do in a business an how far I havegonein developing style,especially communications effective in an Asiansetting. The result: seven deadlyvices.Solicitadviceof trustedcolleagues to confirmwhetheror notyouare at of thefollowing,remembering cuipable fot more sustained, the vices argue core, positive in theworkplace inreracrion

The AsianManaget January'Feb.uary1997

MeetingThe Challenge

Shtfrgearsandmoyeahead Successor fa ure is causedby mental attihrde rather than mental capaci\l -Sir WauerScott

theylearnedto selfcorrect their problems discipline,delaygatification,and empa. andmanagethe downsides well. thyl, highscorers aregeneraily successful 2. Focus on customers.Walk the employees. mile in customers'shoes to understand Someof the mostintellectually gifted their "routlnes"say,buyinghabits.In employees in Silicon Valleyarehardto man. arelike driving Chemoll(operations, invoicing,quality age.Sometimes f, 1f, ost businesses highI0 peoplesolveprob. we areplanningto lemsintellectually I It I a familycarat 55 mph on the controldepartments), but failto deveioptheir I Y I'US freeway. Theoil business is provideourcustomers instantaccess roour socialskills.Effective teamsarerareiybuilt like ddvingthe Indy C at 220 mphon webpageto keeptheminformedhowfuel by selfish,pafanoid, andegotistical people the racefack. If you takeyoul eyesoff oii is deiiveredto theirships. butby thosewith sffongsocialskills. the road.you will hir rhe wall. ferraris E-mailcommunications to custoners 5. Enhancepersonalperformance don't win races;it is a NigelManseil, andallowthemaccess to anyonein man- through feedback. Employees perform EmersonFittapaldi,or a Mario Andretti agement to makeit easyfor themto draw betterwhen theycan get constant,non who makesthe difference. attentlonto theirproblems. Everyone's e, t h r e a t e n i n g f e e d b a c kW . e c r e a t e da Who will work in this environment? mail addresses are on the web page.We TechnoFeedback, a rule-based system Letme giveyou a profilethe peoplewho access oul e-mails daily,andreplypromptly whichprovides earlywamingon multiple work in this companyandthe challenge to bringcustomers closero ine organiza- variables of the busines5. II invenrory is to keepthem motivatedandmakethem tion evenwhenwe arefaveling. r u n n i n go u r . i t s o u n d o sfl a warning. performasa team. Wehavealsoinroducedhe Inranet. Whenemployees biendfueloii at the ex. The oil business is a 24-hourhighly Allfinancial statemen6andbusiness analy- penseofqualify,thecomputer wamsthem volatileinvestment. Everyone in Chemoii sisin someone's harddiskis mihatedto of the total cost.Whenignored,it auto, hashis,/herpersonalhomephonenum- the Intranet.With the searchengine,all maticallysendse-mailsand getsothers berson their callingcards.Frompagers, articlesmaybecrossreferenced andmade involved.Warningdesigns maybecustom cellularphones, to portable computers, we electronically available. ized.Everyonecandesignthe systemto are on call.We fly half acrossthe world 3. Encourageand reward creativ- followdifferentwarnings.Erors become for one-daymeetings.We take in moti ity, Wehaveaninstantbonusprogamthat a resultof oversight. vatedpeople who enjoywhattheydo,take rewardscreativesolutions Ihat addvalue S i n c ea u t o m a t e dc o m p u t e r sc a n pridein themselves andthecompany they to the company. Chemoiiissuescashand process routinejobs,people carconcentrate work for,havea greatpassionfor living, recognition certificates everyday. lmmedi 0ndatamanagement anddecision makng. andalsohaveunderstanding spouses. ate recognitionfiom officersand peers 6. Changethe role of managers, How doesone facethis challenge? pushoneto becomemoreinnovative. Remove rhemfromtheirlinefuncdon; in Takenoteof the followingpointe$: Anotherway to encourage creativify volvetheminsteadin makingdeals.Less l. Keep up with cutting-edge is by letting peoplework on their own than20%of thetimeshouldbespenton thinking-the chaostheoryforinstance. problems. Makeroomforexperimentation managing people.Corporatelayersmust Exploit opportunities by amplifying andbereadyto acceptfailuresasa costof be deliberately keptto a minimum. actions; dumpingtheeffectsasin manage- rhe learningprocess. Afrerall, business Youneedleaderswho believe1nacmentbv excepdon. Duringwild oil price sksarehuge;againstthese,all elselook tion, set themselves asexamples, havea swingsin theGulfWar,ourmanagem' con- comparatively small. positive disposition, arecreative, are probyiewpointsfromsellto tinuouslychanged 4. Manage change with the right lemsoivers, andcansharetheirvisionwith buy and exploiledmarketinefficienciespeople. Note when you rate youl em, othem. f i a t h e l p e du s m a k e$ 1 2 m i l l i o ni n . s i x ptoyeeson a scaleof 0-10 on emotional months.Surelythey mademistakes our quoflent,(e.9.,commitment,passion, in- Mr. RobeftV Chandranis the PresidentoJChemoi! . of lackof experience in thesituation.But fluence,positiveattitude,pefseverance, Carporatian,U. S.A.I nternet:<Rvc@Chemoit.cont>. January-February 1997

TheAsianManaget

APEC,StrategicPositioning a n d 5 5 +1 "Asia'laciflc "APEC"meansomething dec' morethan eooperation" Economic Will theacronlryn "Amidst like communify, vision of Asia-Paciflc Prosperity, to its adesafter-somethingcloser "Alongwith Empowerment Progress, andeommltrnent"to buildingthe human;or Excellence ASEAN'S strategic hom much debate: peoples? to stir APECcontinues of atl and Qonsensus" "global,asia' for education of management reinvention posltioning to economicrestuctudngto Meeting(ASEM)-a goupingdlfferentstillfiom Meanwhile,theAsia'Europe Pacificmanagers". nations'Headsof StatesandGovernments APECandASEAN-saw tenAsianand 15 European progessof theircountryinitiatives. and reviewing mullingovera commonvisionfor the future, "Management by muddlingalong",somy old ftiendNoordinSopieeandI usedto banterabout will evolvein Asiaalmosttenyeafsago.Webothforesaw mechanisms how conflictmanagement declineof PaxAmedcanain the of informal$oupingswith the apparent therise(proliferation?) night' andthe management (strain?)thesewill poseon ASEANconsensus, region,challenges "Muddle constituency. stakeholder andanenlarging marethesewill bdngto planners,implementors Instituteof pdvatesector-supported along,but clearthe nationalmlnd."He headedMalaysia's President of the in the Offlce andI wasthenUndeffecretary Studies, andIntemational Strategic the keepers I, among Group, and Today, he is amongAPEC'sEminentPe$ons of the Philippines. any is any nation' how of AIM'Sflame.Yet,the questionstill remains,morerealthan before: groupings position these itself-with any firm, to manageitself-to stategically organization, Afterpatientlyhearingme out ponderaloudAIM'Sstategic andtheircontinuingphenomenon? "Thiscallsfor TotalOuality says: terseness, in his characteristic positioning,DeanJessGallegos, Thinking!" "TOT",aninventionbornof paranoidnecessity, doesmakesenseof themazeof APEC,ASEAN' AFTA,GATI WTO, PBEC,PECC,AIM andTAM. Goodol' 55 maybe a usetul,albeitrather positioning asour TAM groupsaw: of strategic irreverent,checklistwhenappliedto questions 1. Seirr-Sort mandatesfrom agendaoI informalandformalgroupings; 2. Seitott-Systematizeinformationfrominformalandformalgoupingswith thosefromyour your firm's"intelligence"; to formandsffengthen own marketandproductresearch clearlyyoul options; thebetterto recognize 3. .'eiso-Sweep cleanyour mindset of biases, 4. Seiketsu-Saiinze your attitude to betterbenchmarkandtrackyour desiredpositioning;and when as' 5. .Sltitsufte-Self-disciplinesteersclearof wild swingsof optimismandpessimism in evolvinggroupwhethergainsoutweighpainsforyou or yourfirm whenparticipating sessing rngs. in to beyourcaseroom it promises posifionitselfandits readers, ln TAM'sattemptto stategically andthematiccontexts:we begn with the Everyissuewill giveyou geographic the maelstrom. next,EastAsiaandcapltalmarkets. excellence; andmanasement Asia'Pacific andhisteamrouses piquesyourintereston migration,andChitoSalazar And if NievesConfesor for business-academe propoqed avenues PochMacaranas' yourpassion consider for participation, EtsuInaba'saccountof AIM'Smodeuingfrom the muddleof APEC's research collaboration, Asianflrms,asguides fromexemplary yea$, GarciaandJudithAlpay'slessons and Deedee early for your action.Thenfufihertestyour mettle,by askingyourselfif you were GloriaChan'sDr. Maybethen,you'll go through5sandaddone whatwouldyou havedonewith Ruben? Jacobs, through,andwon, withoutsacriflcing muddled still be world cal the acronym'ddden more:for "soul."APECcanthenbe,likeAlM, an enablel: with cited as leading Chandran once what Bob with Espfltd'Corpsl . Addressing Problems-at'hand

1997 I January'February TheAsianManager

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