The Asian Manager, March 1989 Issue

E=_-\. "l==if FEr=lt !F,

.

APUBUCANONOF THEALUMNIREIITIONS AND PI.ACEMENTOFFICES AND OFTHE FEDERATION OF THE ASIANINSTITUTE OF MAMGEMENT ALUMNIASSOCIATIONS

voL. il No.I/MARCH1989

ilMlsA

EDITORIAL fiomtlrc fublislrcr

andRealities On Perceptions Truth, Saint Thomas says,lies in the understanding in so far as it is in agreement with the kiown obiect;and one could add that, if a man is not humble, he will find it difficult to know and acceptthe truth just as it'is, in all its scopeand with all it entails.

-Jose Maria Escriua

Change", he tells the story of cotton farmers violatiirg an exclusive marketing agreement, of a government corporation withdrawing its institufiional support is a conse-Q]fnc-eand of farmer ioutt* t"tt"ied on in the end. The farmers side: low pii"ir anJ harsh ginnery policies..It took the iiriott of one ma.t lrrd an understanding of what others did not to stem the deterioration of an in-

dustry.

Thete is an old puzzle about a father who died To bL sure, we are guided by frrst impressions, I in a car accident. Fortunately, his son who uttd thit is both a strength and a weakness'-As itscove,rbeL'J rr uuuA by a book put rf,' it, we we judge wasalso in the car did not die but was nevertheless ro-"ott" someone puf, J uuB,e i1 all books'If a re-ad to rushed to was ti*e son The ttt6 do not'hav6 critically injured. !rospital ;G;;; do,or'39 resioffice the our of peeplrg through attention to the nearby-and brought *" r"u a face to attached body a therJi:s tttit "ttri-" ""t"mttv dent surgeon. probably it room' into the hesiktingly manwalks surgeon iithe the And it. ena boy, Upon s6eing the I "I refused to op6rate explaining, can not. The boy i;'; -"". Weseewhat seemsto be the ordinaryand we seewhat we chooseto see. is mY son."

Like the Galbraithand the Drucker we know, ThL answer to the p:uzzle,of course, is that the surgeonwas the boy's mother. How simple the.ex- peiceptiottbecomesa gift in the higher batting -aliperceivingarealitythat others nlaiation but sobaiic the reasonwhy the story has iu"tui"t, in simply ittracted to the truth, are we L""n putt"d on from one person to the next: the ao "oI. f" "." qualities' storyplays upon a talent in all of us-the abilityto not? It is another of our innate g;t-if l-evel,it evolves gift this at p"tception is a percerve. ^ perception the gin".t theiirection geiius This innate capacity is manifested in manyways' into caracus. takes Like the puzzle-ofth-esonwho survivedthe material wealth cident, for example.Butbeyond the amusing,-p91- fo. titot" of us chargedwith the mes-sage..InL942,he a had Druckei it is both *"ild, when "itrrir ."otioit becomestruly inteiesting "truth" is its ability.to operative and creative. This kind of perception wrote: The true test of the ing'oesbeyond any common defrnition. It is more o.o"ia&"alth for the many.The future of the answers the by lhatr utt awareriess of environment, more than f,ustrial svstemwill not be decided *"-sit"... d"ther, it wilt bejudged by its ability to mere conjecture or inference.

Ifwe are to be accurate, perception is an 4ility to nroiide -A;;il. full employment. is It manYof ris will read what we chooseto reality' new to-infera or truth a conjecture it is, let us like the moment we realized that the doctor was r;;? i";hat brucker wrote.Whatever the cotand Callao Henry like that i"tt **urnUer the bov's -of mother. It is a talent sharper in somebe- ';;i;il;;t, of faith amount a certain is "t" tt cause experience and if coup-ledwith idealism good' On of creative be to perception fot good. """a"a and activitv becomes creative of be true? to Perhaps Prof. Eduardo A Morato was more exact lfrir t"tt p"iitt, do you perceivethis to leading perc,eptiogs when hb spoke of new G.S. 1"*"The Management of nag artic-le, realities.^In In his article, realities.

Lettersto the Editors GraftandCorruPtion The articleson graft and corruPtion in the December1988issueof THE ASIAN MANAGERPresent on the subject.broadperspectives Anoinei major concern of

be developingcountries,particularly Mav I proposethat an issue insurgency of subject ttie devofed'to is thecommuntst in thePhilippines, insurgency.While the insurgency and management? oroblemmavhavemultiplecauses - Erol I. Untalan(MM'76) (political,soi:ialanoeconbmic),it is Commissionon Immigration esPeconcern' and Deportation, also a management cially to the government.

Intramuros.Manila

2 lqElsl,ntr MANAGERr MARcH1989

o Twcnfy Yearr of Edgcrtirg

respectfor the individual,for the wholesalerwho wantstop display.

M

Ia|egers

SpecialSection: DevelopmentManagement

19

The Managementof Change byProf. EduardaA. Morat6, Jr. (MBM'73) The developmentmanager'sfirst job is to establishrherequisites for positrvechange. t

CoverStorv

4 Corazon

Aquino ChallengesAIM to Help the Philippines.Scale the Heights of Progress. byBenjamin C. Bananta At the final commemorationof the philipInstitute's20th Anniversary, pine p_re_sident CorazonC. Aquirio saysAIM hasa critical role to play in the redevelopmentof the couniry and deregulationof the government.

Editorial tFf

z

Fromthe Publisher

Features

t

Looking for Value, Not Cost byKeith Sharp Corporateidentity programsand publicandmediarelationsaremoving from the staff room to the strategi; operationscenterof Asian corporations.But managerscontinueto grap_ ple with yardsticksto quantify the 'non-quantifiable.n

11

Ambulant Vendors: Their Business and Marketing Signlflcance byhof, Edtardo L. Roberto Non-traditionalretail entrepreneurship is thrivingin a reviralizedphilippine marketplace.Important her-e, Ned says,is personalintegrityand

25 A_nAIM Degree

for Development Managers:Masterin Development Management Program

byProf. EduardoA. Morat6, Jr. (MBM'73) T h e I n s t i t u t e r i s e st o C o r a z o n Aquino's call forassistancein training developmentmanagers the AIM way.

The fiist MDM cliss beginssrudies June5.

27

Empowerlng Rural Communities byAssociateDean FelipeB. Alfonso F i l r e c o u n t sa m a i o r s t u d vw h i c h helped form the foundatioh of the Institute'soriginal Rural Development Managementprogram fifteen yearsago.

Somecooperativesactuallymake money,and Jessshowswhy.

Articles

47

The Generlcs Law: Vlews from the Pharmaceutlcal Industry byEdmund Tamayo Pharmaceutical companiessupport Manila's new genericslaw. But Ed Tamayosaysquestionsremain on the guidelines.

LO -J! WMBOCaseHistory:Janet Lim bySoconoPemia-Veloso

@

54

Class'74: WhereAre TheyNow?

THEASIANMANAGER

APuuicdioncttheAiumni Rebtimsard pl&emstOfiic6 ed ihs Fede6tim of the Asian Insiitut. of Mmagemcnt AlumniAssiations

38

Kalakalan 20 to Bring propperity to Rural Areas byBenjamin C. Bananta A revolutionarydevelopmentstrates/ developmentby AIM professorVic-tor S. Limlingan may.ioonbe law in rhe Philippines.

39 EthicsCases:

FatherDonetan's

Responses byProf.JamesF. Donelan,S.J.

40

42

Pollcles Concerning Promotion and Development of Cooperative Processing of Agrlcultural Produce byDeanlesusG. Gallegos,Ir.(MBM '73)

Why We Need Managers for Economlc Development byhof. Romulo L. Nei Romy assertsthat developmentmust be the taskof talentedline managers and not staffbasedin Manila.

Publisher Edgar Santos

Editor-in-Chief MiqhaelHamlin

Editors Emv de Vewa, Susie Anovo

DesignEditor Al Ballesca

EditorialBmrd GastonOrtigas,FelipeAlonso GabinoMendoza,FtcracioEbrrom6o To.masLopez,SonnyColoma

AssocrateEditors Eflie Goh (Mataysia,MBM'78) fshtiaq Qureshi (Pakistan,BMp Z7l '82) _ Gan Cheong Eng(Singapore,MBM TeerachaiChemnasiriffhailand, I,|AI\|'l3t BhaskarBose (lndia,MM'77) Copyright J98a by Thr Asim trramr"r. ltt rgtrlsEwa-. rcpr@uctron In my |rffnq in \,*tole or put in English d oihcr lsguagG Fghibitrd. Thc Asian Managa is p-ublistrcd qurtdly by thc Alumni Bolatbns and p|&lmmi Officc ot thc Asim lretitutc of iibnagcmcnt.

COVERSTORY As the htstitutecelebratesits20th anniversaryand inauguratestheMasterin Development Managementhogram...

CorazonAquinoChallengesAlM ilippines Ph To Hel the "Scalethe eightsof Progress"

by Benjamin C. Barranta

officials, 1] peakinSbefore 300Asian Instituteof Management(AIM) governors,trustees,administration "the needtopreparethe Jfacuttyi supponersandftiends,fhifippine presidentCorazonC.Aquino cited, servicesthat must social in production, agrtcultural anA qnd gr-eat in indwtrializaiion strides grouid 7o, the "survive a itnt, compasas to and be made" if thb fhilippines is to regain itsformer ranking in the region sionate,and democraticsociety."

Thepresidentcalledupon the Instituteto assistthecountry nturnout in meetingthis needby undertakinga programto new developmentmanagersat a fasterrate. nOnceupon a time, AIM met the challengeof Asian growth. Now I give it the challengeof Filipino progress,' Aquino declaredat the luncheonFebruary28 marking the culmination of AIM's 2fth anniversaryactivities.

Justover nventy-fourhoursearlier,the Institute'sboardof governorsandboardof trusteesmeetingin joint sessionhad approveda proposal to offer a masterin development managementdegree(see"An AIM Degreefor Development in this Managers:Masterin DevelopmentManagement" developmentpractitionersin issue)to "professionalize according governmentand non-governmentorganizations,n

PresidentCorazonC. Aquino atAIM 4 THE ASIAN MANAGERO MARCH 1989

to AIM professorEduardoA Morato', Jr. 'The Managementin DevelopmentManagement(MDM) program respondsto AIM's mission to developAsian inanagenwnoseskills,knowledgeand attitudesare relevant to Asi-anconditionsandconcerns,whoaresensitiveto Asian valuesand sensibilities,and who are committed to the developmentof Asia and its peoples,particularlythedisadvantagbd,the underprMlegedand the poor,nMorato'says.

A productofa decadeofaction research,hands-onconsultancies,workshops,casestudies,seminarsand short training programson developmentmanagementinvolving internath-eprogram tional,governmentand privateorganizations, presenis"a holistic view of development"and focuseson thelr pursuitsin life and the enoironlglt ttIE line

s'

in. The program,nMorato adds,ntherefore embraces the the House.A similar measureis currentlybeforethe Senate. economic, social,political,culturalandfspiritual concernsof Becausegovernmentand non-governmentorganizations man by taking an integrativeapproach(to development are not for-profit entities,AIM intendsto obtain sufficient management).' fundingto providescholarships for the one-yearMDM, at Aquino feltsetM-traineddevelopment managers canhelp leastfor the first two yearsit is offered.The CanadianInterin administrationprogramsto fostereconomicdevelopment national DevelopmentAgency(CIDA) hasagreedto offer in the countryside, but alsoto "deregulate our economyand ten fellowships"to applicantswho havedemonstratedcomevenpublic service.We must not only loosen,we must mitment to developmentandhigh potential forleadenhip in releasecompletelythe stranglehold of regulationthat is their country,nMorato' says,nandanotherten tuition chokingprivateinitiativeand turning off localand foreign scholanhipshavebeenmadeavailableby other donors.n investments, anddiscouraging developmentassistance.

Aquino noted that prior to her administrationand the cur"I havestarted tobelievethatthereisno regulatoryaimthat rent economicresurgencein the Philippines,nourcomis worth the costin lostopportunitiesandin frustrationasa petitorswere not standingstill whenwe were falling back. result of governmentregulationof economicactivities.Not Now, they have achievedsuch a high level of economic a singleaim hasbeenworth the delaynor the missedoppor- growth that they can well afford to match it with generous tunity for moregrowth,"the presidenttold her audience. prograrnsof socialservices.

BesidesAIM'scontributionto enterpriseanddevelopment 'We on the contrary,must addresstwo equallypressing management in Asia, Aquino notedanotherrecentcon- priorities: economicprogressand socialamelioration.Both tribution of the Instituteto the economicdevelopmentef- priorities presshard upon the samelimited stockof resouri forts of the Philippines,theKalakalanng 20 measureintro- ces.

"Not the leastof thoseresourcesis the managerialcomducedin the PhilippineHouseof Represenratives.

"One of the most important measures of economicde- petenceto put limited meansto the most productiveand regulation- the Knlakalanng 20 program- hasmet with honestuse.nshecontinued. someresistance.

The measurewill hopefullybecomelaw W i t h t h e o f f e r i n g o f t h e M D M p r o g r a m ,A I M i s verysoon.This and other measures designedto releasethe demonstratingits commitmentnot only to enterpriseand productivepowerof Philippineindustryandagriculture,on entrepreneurial management, but to developmentmanageeverylevel- from the big to the grass-roots- needfriends ment,the alleviationof povertythroughcatalyzinglong-dori n C o n g r e s st o m a k e t h e m l a w , a n d m a n a g e r si n t h e mantcountrysidepotentialsfor economicgrowth,anda betcountrFideand on the shopfloor to makethemwork,"she ter life for all FilipinosandAsians. said.

TheKnlakalanng20 programwas@nceivedasthe resultof a seminarconductedby the Institutefor the Houselastyear Joint Meetingof the Boards ( T H EA S I A N M A N A G E R ,D e c e m b e r1 9 8 8 :a l s o .s e e lrluring the two-dayjoint board meetingof rhe AIM 'Kalakalanng 20 ygovernors to Bring Prosperityto Rural Areas"in this and trustees,a numberof other matters issue).The measurecallsfor deregulationof smalland were discussedincludingprogramdevelopmentsover the mediumenterprisesand subcontractors locatedin rural one-yearperiodsincethe lastjoint meeting,recruitmcnt areas.Non-retail operationsengagedin value-added and marketing,the twentiethanniversaryfund raisingproproductionwithfewerthantwentyemployees areexempted gram,and the developmentof an Asian management. from all governmentregulationsrelatedto taxes,licenses, awardsprogram. andlabor codesother thana modestregistrationtax.

Concurrentto the meetingof the governorsand trustecs, March 3, the proposedbill waspassedon third readingby the AIM Federationof Asian Institute of Management

:\, :|\\t.\. {

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* AIM's 20-year chairman, Washington Sycip addressesthe AIM comntunuy.

THE ASIAN MANAGERo MARCH 1989 5

Mr. and Mrs Reijiro Hanori, Washington Sycip,Rachmat Saleh, Mon-Hui King and Tun Ismail Bin Mohamed Ali view thc Institute's 20th Anniversary exhibits

Alumni Associationsexecutivecommitteemet to reviewthe for 1989. activitiesof the pastyearandto establish'objectives

Awards AsianManagement fhe joint board approveda proposalfor the developI ment of an Asian awardsprogram.According to the "third decadein an proposal,the Institute is beginningits Asian environmentwith significantcontraststo that which greetedthe founding of AIM... and the faculty and administration havereaffirmedtheir convictionthat a more focused,concertedeffort to project the missionand of the Institute is critical. programs - "Specifically, the faculty and administrationproposethat the Institute establisha seriesof annual awardsto be presentedto excellentAsian managerswho haveestablished in their managementundertakinp strongrecortlsof success and hhveothenrise contributedto the managementprofes- BiIt Andersonand FelipeAlfonso view sion in termsof resources,values,and development.The the 20thAnniversaryexhibits awardsshould be on the level of the Ramon Magsaysay Awards in the Philippinesand the selectionprocessshould 1fZf .:S:US$1) sincethefundraisingprogramwasofficialinvolvea panelofjudgesinternationalin makeupto evaluate ly launchedin May last year.During the conference,an additional P2 million in commitmentswere received,includnominationsfrom throughout the region. nWhenappropriate,the recipientsof the awardswill be in- ing commitmentsfrom AIM governor Stan Shih, FAIM vited to presenta distinguishedlecturerseriesoftalks at the presidentHsieh [ai-Fa, and SRF trusteeThomasT.N. Hsi. Institutb during the annualjoint board meetingsof the Snin nasalsomadean equipmentdonation to the Institute. governorsand trustees.An alternativespeakeror repre- Other AIM governorsand trusteeswho havedirectlyor inby the awardrecipient.Feature directly contributed to the program include JoseL. Cuisia, ientative maybe desigrrated will be distributed to regional Eugenio M. Lopez, Jr., Tun Ismail Bin Mohamed Ali, articlesand newsreleases mediaand arrangementsshall be madefor the recipient of AndresSorianoIII, and William S.Anderson.A numberof the award or his representativeto appear on various informal commitmentswere madeby other governorsand trustees,and thereforeadditionalcommitmentsfrom the televisionprogramsand in managementfora.' are expectedsoon. boards two-year^periodwith overa Theprogramis to bedeveloped and AIM associatedeanFelip.eg.-4f-^o^1ry presidrlnt SRF in February,1991. presâ‚Źnted to be awards the first aho prbposedthat the Institute raisean additional US$2.5 millibn 6y 1993to directly expensefor scholaniip's' facYltyFundRaising support,and research.To perpetuare,after1993the level of commithe AIM Scientific ResearchFoundation (SRF) fuiiting current commitmentsand the proposed that the suggested further possible, Alfonso r e p o r t e d c o m m i t m e n t s o f o v e r P 4 3 m i l l i o n mentswill make MANAGERO MARCH 1989

Wy $i.'

$$ Ntu

#

Scenesfrom AI M's 20thAnniv ersary Instituteundertakeprogramsto generateaUS$4millionen- Korea),JohariBin Hassan(MBM'73, Malaysia),P.ICYeap dowmentfund to generatescholarshipsanda US$ 10million (MDP t73,Singapore),ThomasHsi (MDP '78,Taiwan)and professorialchair fund.

ChainarongMonthienvichienchai (MDP'7L, Thailand).

NewSRFBoard ln order to givea directvoiceto the Institute'salumni in Ithe fund raisingprogram,the SRF boardwasreorganizedin February.The new board includesten alumni and five administrationofficials.Sevenof the alumni are from countriesoutsidethe Philippines.

Meeting after the joint board meeting,the SRF board discussedfund raisingin the regionandtheir role in rheactivity.

Alfonso saidafter the meetingthat he expectsthe newboard to be intimately involvedin the fund raisingand developmentprogramsof the Foundationandthe lnstitute,and indicatedthat hewill beworking closelywith all the trusteesin this critical effort.

WashingtonSyCipand Roberro T. Villanuevawill continue asco-chairmenof the SRF board.Other administration otficialsservingastrusteesareJoseL. Cuisia,GastonZ Ortigasand Felipe B. Alfonso.

Alumni electedto the boardare Arsenio M. BartolomeIII (TMP'86), RobertoV. Garcia(MBM'73), Antonio A.S. Valdes(MM'77), Ric Pascua(MBM'7'L,HongKong), Surasa(TMP'82, Indonesia),Min Sankee(MBM'73,

FAIMMeet fhe board of the Federationof Asian Institute of I ManagementAlumni Associations(FAIM) met February27 and 28. The annual conferenceand business seminartoppedthe agenda.Theannualconferenceis slated for September28 through October 1 in Taipei, Taiwan.The venuewillbe thel-ai I-ai Sheratonandthe themeof the conferenceis "Transferof High Technology."

During the meetings,it wasalso agreedthat the Alumni RelationsOffice of the Institute will serveas the secretariat of theassociation.Programsinvolvinggovernors,facultyand alumni in the activepromotionof the Instituteand its mission in eachcountry were also discussed.Other mattersincludedthe developmentof a newsletter to be distributed with THE ASIAN MANAGER,the Asian Management Awards,researchthrustsof the Institute,and the Triple A nominationsfor 1989.

Triple A nominationsmustbe receivedby the secretariatby July 1, 1989.A completeresurneand a photographmust accompanythe nomination.Awardsshallbe limited to one per country.

THE ASIAN MANAGERo MARCH 1989 7

FEATURES Theprice of time...andwhat is inyour head...

LookingforValue,NotGost

by Keirh Sharp SeniorVice President & ManagingDirector Burson-M arstellerIHong Kong It wasan emergencysituation and Ithe public relationsconsultant was called in at short notice. The meetingwas longish - two hours or more- but someProgresswasmade.

At the close,the client turned to the consultant.

'Thanks for coming over at such short notice,nhe said, genuinelY enough.And then,with just a touchof sardonic humor, becausehe liked "And keeping people on their toes: thank you so much for giving us so much of your valuable time" - with somestresson theword'valuable.' "['m just pleasedyoucalledmy time 'valuable',"said the consultant.nIf you'd said'expensive'then I'd have hada problem."

That little exchangecaptures, I think, the essenceof a fundamental challengefacing public relations in its b i d t o b e r e c o g n i z e da s a m a j o r managementfunction - the needto talk in termqof impact, aot output and in termsof vafue,notcoJ,ot 6pense.

After all, public relations budgets theseda)6 are large enough to merit client managementattention. And it is healthy to haveclients askingabout the value of public relations services.

If you, as the client, are only spending a minimal amount of moneyon public relations,then frankly its value or impact are hardly major concerns.

You're not spendingenoughfor it to matter.

Asking the question nWhat'sthe value and impact?"showsan awarenessthat public relations can havea major impact on businessperformance.It is a questionpublicrelations professionalsshouldwelcome- and one that they must know how to ans:wer.

So howshould the impactof Public relations be measured?[ think we ncounting would all acceptthat simply

8 THEASIANMANAGERO MARCH1989

the newspaperand magazineclippingshassuchsevereshortcomingsas to be at timesmisleading.

How do you comparea nnaturaln storythat inevitablygarnersthe headlines,with a more difficult individual placementfor a less-obviousstory angle?How do you evaluatethe importanceof keepingan apparently headline-worthy,possiblydamaging story,in perspective?

But measuringthe impact of public relationshasfar more fundamentalissuesthan eventhat to address.As an example,rather lessthan half of Burson-Marsteller'sHong Kong 1987income came from media relations.

Modern public relationsis a multifaceteddiscipline,linked by the common threadof communications.

Under this umbrella comesdesign and productionwork, counselling,internal communications,audio-visual programmesandvideos,training.- oh yes,and media relations-among others.

No number of pressclippings can demonstratethevalue of all theseactivities on businessperformanceand yet value there must surelybe, or companieswould quickly stop paying for the service.

If an activity hasvalue, then that value has to be measurablein some way,for both the satisfactionof the client companyand the public relations professional.For the latter, it is, aswe havesaid,a fundamentalissue, since a client convincedof value will continUeto invest.Ifhe is not, you can be sure that sooneror later he will stop.

We have all heard the reasons.

"Nothing againstwhat you guys are doing - we really like you - but headquartersis on a cost-reduction programright now and somethinghas to go.nOr, "You fellounsuredoagood job but we don't knowwhere it's getting us."

The many different wap of sayingit shouldnot blind us to the fact it is essentiallythe samereason:nI'm not sureof the value of what you do.n S o d e m o n s t r a t i n gv a l u e i s f u n damentalto the growth and development of public relations- and it's up to publicrelationspeopleto findwap of showingclients what has been achieved.It's no good for consultancy people to blame clients for nnotundentandingwhat we do." If that is the

case,it is our fault, not our client's.

But let usnot despair.I believethere is an answerto this challenge.It lies in usageofresearch.Good researchcan measurethe impactof publicrelations programsand I am delighted to say that the past three yearsor so have seenan upsurgein the useofresearch in public relationsin Hong Kong.

I think the client companiesmust take credit for this. It hasbeentheir growing insistenceon knowing the

3lTheproblem with research is that it

costsmoney.

Hereyou are, facedwith

the needto improvethe valueof the campaign moneythat is to be spentand all you can do is recommend moreexpendi-

ture. ,, impactof their publicrelationsdollan and on having information-driven programsthat hasled to this upsurge.

Of course,researchhasequalimportanceas an information gathering basisfor a targeted,strategicprogram aswell asfor impactandvaluedmeasurement- but that'sperhapsanother story.

The problem with researchis that it

costsmoney.Hereyou are,facedwith theneedtoprovethevalueofthecampaignmoneythat is to be spent- and all you cando is recommendmore expenditure.

That's a C.atch22 situation - and I frankly can't offer you an easysolution. I can,however,offeryou a guide which our New York researchhasestablished.If usingresearchto measure the program impact costsmore than LoVoof the total programbudgetthen do not do the research.You would bebetter to put the moneyinto the campaignand trust to good faith -although hopefully not those potentially misleadingpressclips!

Nevertheless,I am optimisticon the 1.0Vorule and for two reasons.First, public relations budgetsin Asia are growing,in somecasesrapidly as managementbecomesconvincedthat successfulcommunicationsis essential to businesssuccess.

As thebudgets grow,it is increasinglypossibleto conduct useful impact researchwithout exceedingthe lOVoleveL Second,researchneednot be totally comprehensiveand all-embracingto be useful.As long asthe basictechniquesof qualitative researchare followed, a little ingenuity can devise some simple, cost-effectiveresearch approaches.

Don't be afraidto approacha market researchcompanyfor help. Focus groups for exampleqln cost lessthan US $2,000in Hong Kong - a lessthan frightening sum for most public relations budgetstheseda)6.

The type of researchwe are lmking for needs to be qualitative,or attitudinal, and it needsto be repeated, so that changesin attitude over time can be measured.

I think wewould all acceptthat a fundamentalpurposeof public relations is attitude changing,which makesthis sort of researchappropriate.we don't necessarilyneedstatisticallyvalid, quantitative researchto seehow our public.relationsprogramis doing. lâ‚Źt's look now at someexamplesof how researchcan help validatea program.

An essentialpre-requisiteis to define target audiencesand agreâ‚Źon objectivesand messagesfor the prog r a m .Y o u s h o u l d t h e n g o t o t h e peopleyou want to sayit tG- the targetaudience- andfind out whatthelr current thinking is. This becomesthe

THEASIANMANAGERo MARCH1989 9

benchmarkfor the program,against which you will measureprogress,perhaprssix monthsor a year hence.

Attitudinal surve)6do not necessaril y r e q u i r e e x t e n s i v es a m p l i n g .

Remember,we are trying to get a senseof how your targetaudience feelsandthinks.A samnleof 60or 1fi) intervicwccscanbe sufficient,evenif the total audienceruns into many If major conflictsand inthousands. comeout ofthe findings, consistencies then the samplecanbe extendedto gain further consistency.

Otherwise, largersamplescansimplybeawasteof money.

This type ofsurveydoes,however, requiretime - often more than an hour - at the individual interview.

W h i l e s t r u c t u r e d ,t h e i n t e r v i e w shouldbe open endedso that the interviewer can learn the opinions, attitudesandfeelinp of theinterviewee.

Focusgroupsalso involve relatively few people- normally no more than ten - taking part in mediateddiscussionswhichcantaketwo hoursor even longerto complete.

Without being quantitativelyor statisticallyvalid, the feedbackfrom all ofthis researchcanbe invaluablein measuringthe performanceof a communicationsprogram. Naturally, whenthe researchis repeateda yearor so later for tracking purposes,the sameformula should be applied,so that an accuratecomparisonof attitude changesqln be made.

There areseveralwap in which these techniquescan be applied.For example,a majorleisuremagazineinthe United Stateswasdue to carry an article prominently featuring a major leisure product. The companyinvolvedwantedto measurethe impact of this particular article.

This was achievedby quickly interviewing,by telephone,one hundredof the magazine'sreaden about their attitudesto the leisureproductcategory and the leadingbrandnames,immediatelyprior to the publicationof the magazineand then repeatedshortly aftenvards.

The resultantdifferencesin awarenessof the variousbrand namesand attitudes towards the product categoryin general,were clear indicatorsas to the impactof that particular article. This is an exampleof measuringa particularactivity,rather than an entire program,and this ap-

managerpreferto receiveinformation about computerservicesvia trade advertiseshows,companysalesmen, ments,editorialwrite-ups,or other wap?

Researchingcommunicationschannelsoften revealsthat someare more trusted than othersby different target audiences.It thereforehelpsthe impact of a communicationsprogramto target expenditureto getting messagesthrough thosepreferredchannels.This will againgenerateconfidencein the clientcompanyoverthe valueof a proposedprogram.After a l l , i f r e s e a r c hc a n s h o w t h a t a p proachinga targetaudiencea certain wayis likely to haveimpact,then confidencein the value of the program risesaccordingly.

We've talked a lot about the imPortanceof impactresearchin justiffing client budgetsfor public relations programs.But this is of courseonly a part of the benefit. Perhapsthe fundamentalpoint is that demonstrably impactful programselevatepublic relations in the client'seyesfrom being a tactical to a strategicdiscipline.

Once the CEO or communications director hasrecognizedthe long-term valueof public relations,then there is a much greater chanceof his incorporating it into his own long-term businessplan - and this is where public relationsought to be.

I hope I haveillustratedhow important it is to prove to clientsand prospectiveclientsthe valueof our work. You and I would hesitateto invest in an intangiblein which it is difficult to discern real value. And we I would suggestthat there is an alshouldnot expectclients to.

Only this way can we ensurethat most limitlessvarietyof impactrepublic relationstakesits rightful place searchof this type,which can be implementedonceyou realizethat rein the board room and is increasingly searchneednot meancomprehensive recognizedasa crucial management function. and expensivemarketsurve)6.

Another valuableapproachis to impact, measurenot only the mâ‚Źssage b u t t h e c h a n n e li m p a c t a s w e l l .

Rememberthat communications programsrevolvearoundchoosing the right communicationschannel, whethercompanyliterature,editorial, advertising,seminars,etc.,to get the to the right people. right messages Researchnowadaysincreasingly revolvesaround how people like to receiveinformation. For examPle, Keith Sharp doesthe electronicdata processing

proachtoo hasits placein impact measurement.

A similar resultcan be achievedby takingan editorialarticleor a comp a n y b r o c h u r ea l o n g t o t a r g e t and asking audiencerepresentatives, f o r t h e i r c o m m e n t so n i t . t o s e e are having whetherthe right messages this the right impact.On occasions, hasled to our peoplegoingto major shoppingcenterswith literatureor pressarticlesand askingfor comment and reaction.

10 THE ASIAN MANAGERO MARCH 1989

For the innovative entrepreneur...

Ambulant Vendors: TheirBusiness andMarketing Significance

by Prof.EduardoL. Robefto,Ph. D. I'

marketing mix element fhe I chargedwith the marketingtask of making the product availableis "placement.n The marketingprinciple statingthat"Nothingmovesunlessit is first in place" suggeststhe marketing significanceof this variable.In practice and in the concrete,placement takesthe form of trade outlets.

Most trade outletsare fixed in one location.Theseare the more wellknown.They include supermarkets, department stores, groceries, drugstores,provisionshopsor neighborhoodstores,andpublicmarketand sidewalkstalls.Other tradeoutletsare ambulant.They moveeither extensively around a wide geographicalarea,or intensivelywithin 31d ilsund a narrow location suchas a street intersection.

The extensivelymoving ambulantoutletsaremobiletakingtheform of either a motorizedor a man-pushedor pulled vending cart. They are known by various names in the region. Indonesianshavegiven them a picturesque name,kaki lima, meaning "five feet." The cart's three wheels counted as feet plus the vendor'stwo equalsfive feet.

The intensivelymovingtype is a portable dispensercarryingvendor.The portable dispensermaybe a wooden, tin, plastic, or carton box. Those belongingto this categoryare also known by different names.In the Philippines,they are referred to as "jumping boys".The nameprobably derivesfrom their most observable presenoe.They are mostnoticeablein jeepnep commuterbusesor passenger when theyjump out of them. As the traffic lights turn nred"and these vehiclesstop, they board them to sell their wares.When the traffic light sigaalszngon,theyareseenjumpingoutto get backto their intersection.

For certain product categories,the portable ambulantvendorsaccountfor a substantialproportion of product movementandvolume.Cigareftesand candy(including chewinggum) are the two mostpopular products amongthis outlet type. Newspapers,magazines, flowers,fang peanuts,rags,softdrinkg and car accessories are productsthat

tions. For instance,its display of the product and its brand in the dispenser makesit a moving awarenessmedium.

Its face-to-faceinteraction with prospectivebuyersconstituteit as a point of purchasesalesmanfor the product or productsit carries.

Inspite of its contribution to the product availabilityfunction and its m a n y o t h e r m a r k e t i n g u s e s ,t h e marketingliterature hasnot giventhe portable ambulantvendor its fair share of studyand analysis.The intent of this paper is to redressthis void. It considerstheportableambulantvendor from threeperspectives: o Who are thesevendors? o What are they doing as availabilityoutlets? o Why are they doing those things?

The answersto these questions should be useful to the marketing managerin understandingand effectivelyutilizingthis outlet.

We will start with the data basethat we will use to draw our answersto thesequestions.

Research Base and Data

can be sold by the portable ambulant vendor.One cigarettemanufacturer estimatesthat thesevendorsgenerate as much as 15 - LSVoof their retail volume and at least40 - 45Voof their per cigarettesales.A leadingconfectionerycompanyobservesthat these outletsaccountfor closeto30 to35Vo ofthe totalvolumeof themarketleader brand in menthol candy.

In its performanceof the placement function, the portable ambulantvendor alsoservesother marketingfunc-

fhis studygatheredfield data in I the latter half of April and first half of May 1988.The field datasource wasa sampleof 120portableambulant vendors working in 20 major thoroughfareintersectionsin Metro Manila.A quota sampleof sixrespondent vendors per intersectionwas specifiecl.

Data gatheringwasthrough face-tofaceinterviews.The studymadeuseof the servicesof two professionalinterviewerswith fieldwork experiencewith respondentssimilar to vendors.They madeuse of a pre-tested,structured questionnaire.

The interview typically took three to four "go"or green light signalsto com-

THEASIANMANAGERo MARCH1989 1l

plete.The respondentvendorswereall doing their job of sellingduring the fieldwork. However,they could only sell when the nstop"or red light sigrral was on and their prospectivebuyers waited in their vehiclesfor the "go"or green light to come.Each greenlight typically lastedfor about three minutes.Somerespondentsactually took the time out to be interviewed.

They stoppedsellingand stoodwith the interviewer on the island or sidewalkby the intersectionto get the interview completed.

Socio-Demographic Profile a nd Operating Practices is thisvendor?What, for exllfho U U ample,is the typical portable ambulant vendor like sociodemographically?

According to our surveydata, the typical portable ambulantvendor is fairlyyoung about 15to 24 yearsold, and a man. Given the physicalrigor anddemandsof thejob,youth is a must and being a male is a cultural e4pectation.

He hashad someschoolingup to high school.He lives either in a squatter houseor a rentedroom.He isnot alone where he resides.In fact, the place is a fairly crowded household.It is a room of frveto sixpeopleasidefrom himself.

Table 1 presentsthe surveydatabase supporting this profile.

What about the vendor asa worker?

What is he lilte?

The typical portable ambulantvendor works for eight hours a day, seven dap a week.A fourth of them work 12 hours or more a day, and another fourth work sixor lesshoursa day.

Closeto three quarterscarry cigarettes and a little over half have,in addition, candies.The vendorswho retail this combinationconstitutethe group who are the eight hours and above workers. A fifth to a fourth make up anothergroup who are in the sixhours or lessworking schedule.They sell newspapersand magazines.The rest who are joined by some of the newspaper/magazinevendorslater in the morning,sell all sorts of items: flowers or garlands,soft drinks or juice, fans,wiping rags and small towels,peanuts,and car sunvisorsand other small car accessoryproducts.

The po(able ambulantvendorworks 'with a higltly limited spacedispenser.

r2 THEASIANMANAGERr

For example,the cigarettesit contains.

He limitshischoiceofbrandsto thetop sellingbrands.Thosewho carrycandieswith their cigarettesalmostall to one candybrand, limit themselves "Storc(" a mentholcandy.

Most ambulantvendors,that is, a little over three fourthsof them,are in this job on their own.The rest are hawkingfor somebodyelse.Almost alf specificallyeight to nine out of ten of them, sourcefrom a singlesupplier.

They acquiretheir stockmostlyfor cash(for 72 percentof them). Those who enjoycredit privilegeshavereally very little of it: one-daycredit extenslon.

Nine out of ten startedout usingtheir own savingsfor operatingcapital.

The Economics of Ambulant Vending lrloes the portableambulantvenlJdor makemoney?How much?

To answerthesequestions,we will takethe caseof the highestsellingambulant vendor, namely, the vendor. cigarette/candy The cigarette/candyvendor group grossesa modal daily high of P200and a modaldailylow of Pl"fi)on cigarettes.

In almostall cases,salesare by the "stick."Theysella cigarettefor P0.70or 0.75.This meansthat at a daily high of P200gross,thesevendorsare ableto move13to 14packsin their eighthours of work, or six to sevenpacksduring

TableI Chracteristicsof the PortableAmbulantVendor Socio-Demographic InteMewed) (Base: Total120Respondents Characteristics

% of Base

the low sellingdap.

Sourcingis by pack or carton.Per packacquisitioncostis typicallyabout P9.10to P9.20.Comparedto their per packsaleof P14to P15,thisacquisition cost definesa grossmargin rangeof 35Voto 4OVo. Most of thesecigarettevendorsalso carrycandies.Candysalesgetto a daily averagehigh of P35and a daily low of

P17. Per piecesellingprice is P0.30.

TheybuyfromtheirsourceatP0.17per piece.Grossmark-upis thereforeat 43Vo.Candies thereforehavea higher grossprolitability rate than cigarettes but moveat a muchlower volume.

In this combination,cigarettesand candiesyield a dailygrosssalesof a low of Lt7 and a high of P235.Table2 presentsthe completesurveydata es-

timates.

The typical crgarctteI candyambulant v e n d o r e s t i m a t e sh i s " t o t a l d a i l y operatingexpensesat a high of P30and a low of PZ). Food and meal expenses takeup to two-thirdsto threequarters of this total. At this expenserange,his "net" margin or more accurately,his contribution to overhead,salary,and profit comesto an averagedailyhigh of P63and a daily low of P16.

Table 3 givesthis conclusion'ssupporting estimationbase.

Table2 EstimatedDailyGrossSalesof the AmbulantVendorSelling Gigarettesand Candies (Base:Respondent VendorsSdlingtheTwo Products) Modal/Median CandySales ClaimedLow

vendor fhe portable ambulant I looks at his job as "better than none."The fewwho expressa liking for it (7 percent of them), do so for two reasons: o There is no "boss.n o What one grossesis all his to keep.

Modal/MedianCigaretteSales ClaimedLow ClaimedHigh Pl7+P10:

ClaimedHigh

The Social-Psychology of Ambulant Vending

P't't7

P17+P200: P217

P35+P100: P135

P35+P20: P235

Table3

t

Estimatesof Net marginor Contributionto Overhead,Salary and Profitin the Cigarette/Candy Vendor's DailySellingOperations (Base: DatafromRespondent VendorsSellingtheTwo Products) Items

GrossSales

Lotv Candy/ Low Cig. Sale

LowCandy/ High Cig. Sale

High Candy/ Low Cig. Sale

HighCandy/ High Cig. Sale

P117

P212

Cosiot Goods: Cigarettes Candies

62 10

122 10

62 20

122 20

Total c.o.G.

72

132

82

142

Gross Margin

45

80

53

93

Avg. Lovrr

20

20

20

20

Avg.High

30

30

30

30

At LowO.E.

P25

P60

P33

P73

At HighO.E.

P15

P50

P23

63

P135

P235

Less:Operatirg Expenses

"Net"Margin/ Contribution:

THEASIANMANAGERr MARCH1989 13

the ambulantvendorshnd specihcally customersmake moneY.TheYgive Here are two of the waysthesetwo relatively larger discountsthan they do good aboutthem? reasonswere statedtogether: to other conventionalsources.At The way the vendorsdescribetheir o "If I were to get employed,I times,someevengiveadditionalextra goods portrays a supplier sourcesof would havea boss.Here what hawkdiscounts: his marketing to knows own who I earn is all mine."(Ktng he First, customers. ing resellers and o "He givesit to me at a much marnamasukanako may amo and status the economic understands lower price. Then he even po. Dito saili ko angkita.) a him. from hawkers sourcing needs of takesaway10 centavosfor cigarette/candyvendor,15-19 He knowsthey will occasionallybe eachpack of cigarettes.*(Mas yearsold financiallyhard-up.During thesetimes angbigayniya sa akin. mababa "I a don't havea bossand I keep of need,he doesnot hesitateto give Tapos,binabawasanpa niya ng what I earn."(lilala akong smallloansor advances.

10 centimosbawa'tkaha.) - a amo at saili ko pa angkita.l"I can alsoborrow money cigarette/candyvendor,27Years o cigarette/candy/newspaper/maold whenI needto." (Nakagazinevendor,15-19yearsold kautangdin ako ngpera kung Fourth, the supplieralsoknowshis If giventhe choiceof the kind ofjob kailanganko.) -a customerservicingresponsibility.He theywould ratherbe in, a pluralityof dy vendor,?n-24 cigarette/can attendsto buying ambulantvendors the ambulantvendors(31 percentof yearsold immediatelyand treatsthem with them to be exact)do not know exactly respectand honesty a "Whenwe are unableto sell what thatjob is. Thosewho expressa he lends us some anything, o "EverytimeI buy, he attends.to choiceare not looking up to anything (Pag wala kaming money." me at once."(Tuwingbibili much.The mostmentionedpreferenbento,pinapahiramkami ng ako, inaasikasoagadako.) ceswere all "blue collar"jobs suchas pera.)- a hand fan vendor,45 vendor,36 a cigarettelcandy facworkingasajanitor or messenger, years old years old tory worker, driver, construction o "WhenI askfor a loan. he worker,mechanic,or electrician.Only a "Whenthey find we haveovergivesright away."(Pagnangtwo of the 120vendorsinterviewed paid, they return the excess hiram ako ngperq nagbibigay wish they could someday be back to us."(Pagsobraang agadsiya.) - a newspaper businessmenon their own. Almost all kuwentanila, sinusolinila ang vendor,3Lyearsold these82 vendorsdesiringto be somesobrangibinayadnamin.) - a "When thingelsebelieveand hopetheywill be cigarette/candyvendor,15 I don't haveany o in thosetarget positionsat somelater years old a cash admoney,I cantake time.

"They vance."(Kungwala akongpera' don't mind if I leave o Hawkingmaybeajob that isjust betpuwedengmag-advance.)- a overnightwhat I boughtin ter thannonebut it personallyengages newspapervendor,17years their store.They don't tamPer the ambulantvendor.He lastsin its old with the stock at all."(Yung physicallystressfuldaily routine, and paninda ko, puwedengiwanan Second,most suppliersknow their its heavywear and tear demands.He sakanila. Hindi nila gifts, give especialPR. Some customer seemsableto do sobecausethe quality binabawasan) - a give "not Others ly Christmas. during too of its interpersonalaspectsis cigarette/candyvendor,28 bonusesandincentivesincludingtreatbad." In fact, accordingto practically years old free vendors to a ing visitingambulant all the vendors,they are good. Most meal or snack.

T a b l e 4 s u m m a r i z e st h e m a j o r policemenare alsogoodto them.Only Third, suppliershelp their hawking categoriesof ambulantvendor coma few customersare ill-mannered. "decent" Nine out of ten of them are people.

Table4 What aboutin the long-term?How long doesthe ambulantvendor see MajorCategoriesof Commentson WhatAmbulantVendorsFind himselfon thisjob? Most of themhave Good in their SuPPliersof Goods been around for at leastthree years about VendorsWhoLikedSomething (Base: Total117Respondent (i.e., 56 Voof them). There are a few theirSuppliers) (2Vo)who haveworked as ambulant 06of Base* Mentioning vendorsfor more than L0years.Most Categories intend to remein vendorsfor another oneto threeyears,at least57percentof ".'....""'31 loans/advances......

Canbonow;give them do.

--' .......'...."""23 incentives Givesgifts,bonuses, The Suppliers 1|,!oing back to the portableam\I uu6"t vendors'supplysources, whatarethesesupplierslike?What do

21 '.......'.....""' .............'.... at a discount Sellsgoodscheaply, .""" 20 Attendsto us,treiti uswdl andhonestly 6 payments.......""...."""""

Acceptsunsoldreturngoodsandinstallment *Onlythosewith5%or morementions areincluded.

14 THEASIANMANAGERe MARCH198e

mentsabout supplysources.These categoriesare about what they liked with their sourcesof goodsand with the waythesesourcestreat them.

followedby all to the letter.For excigaretteI candyvendor, 17 yearsold ample,considerthe rule: "Firstto contact,first option to sell."

Sellingtime partitioningand rotation a "Whoevergetsfirst to a cusagreementsare simplyand directly tomer,getsthe right to sell to reached: The Ambulant Vending that customer."(Kungsino ang "Communitf' o "We agreeand exchange. nakaunanglumapit sa cusThere are dayvendorsand tomeray siyana angmagbebenthere are night onesover a oerm b u l a n t v e n d o r s h a v e a l s o /l ta.) - a cigarettevendor,15tain duration.^(Bigayana l{evolved a-ong themselves an in1-9yearsold palitan kami. May pang-araw formal systemof friendly competition "My regularcustomeris mine o pang-gabi at moy sa iba't ibang and orderly co-existence.The system panahon.) - a cigarettevento sell to. Nobodvcan claim includesmutual self-helpoptions. him." (Angsuki io, ako lang dor, 18yearsold There seemsto be morerelianceon ang magbebenta kaniya. sa the informal than on a formal vendor Partitioningby customersis basedon Walangsusulot.)- acigarette association.

Only 16 percentof amcategorizing customersdichotomousvendor,31-yearsold bulantvendorssaythat their work ly: a vendor'sregular customersand l o c a t i o nh a ss u c ha n a s s o c i a t i o n . a "We'reunitedhere.We don't nonregularcustomers.The rule is Where it exists,not everyonein the quabble.Our agreementis simple:One's regular customersare locationis a member. that whoevergetsup a bus one'sown.

So how doesthe informal system first, getsthat market for himThe major strokesin this picture are work? It operatesby unwrittenbut self."(Nagkakaisakami dito. given their supporting surveydata in mutuallyacceptedrules.For example, Hindi kami nagkakagulo.Kosi Table 5. there is first an unwritten "give-andusapannamin na kungsino Thereis alsoa rule prohibitingunfair takenagreement: angunangnakaakyatsa bus price competition: siya lang angdapat na nana nWetake turns here.There's o "Our itemssellat the same doon.) a cigarettelcanno crowdingone anotherfor price so that there'sno taking dylpeanutvendor,32 yearsold customers.n (Bigayankami of unfair advantage."(Pareito. Iltalang agawankung may The practiceof partitioningand pareho angpresyong tinda bibili.) - a cigarette/candy rotatingselling"territory,"sellingtime, naminpara walanglamangan.)

- a cigarettevendor,22years vendor,45 yearsold and evencustomersalsoavoidshostile competition.Territorial assignmentis old o "We give ourselvesequaloppracticedthisway: portunitiesto sell.Customer . "We haveagreedhere on "We pirating is a no-no.n(Nagc assignone anotherhis uniform pricing of what we bibigayankami sapagbebenta. particularplace.No one sell."(Nagkasundokatni dito Walangagawan.)- a trespasses in the areathat's sa isangpresyong mga tinda cigarette/candyvendor,21 beenassignedto mb."(Nagnamin.) - a cigarette/candy yearsold bibigayankatni ng lugar.Ang vendor,28 yearsold puwesto ko hindi nild How is this accomplished?

Thereare Mutual help comesin variousforms. pinakikialaman.)- a unwritten rulesknoumto evervoneand One is direct help in sellingwhenever

Table5 MajorCategoriesof Commentson WhatAmbulantVendors Regardedas GoodAboutTheir FellowVendors (Base: Those115Respondent VendorsWhoFoundSomething Good in theirFellowVerdors) Gategories

0,6of Base* Mentioning

A spiritof giveandtake;no crowding of thesamecustomers ......................

45 No unfairpricing;helpingoutwithselling......... ..................21 Foffowa firdtto @ntact,firsfito sellrule ....,.,..1T readyto lendmoneyintimesof need,emergency ............

12 Partitioning ard rotatingby sellingarea, sellingtime, andcustomertype............. ..................8 No buflying,no scaretacticson oneanother....... ................7 *Onlythosewith5% or morementionsare included.

THE ASIAN MANAGER r MARCH 1989 15

Table6 Majorcategoriesof Commentson WhatAmbulantVendorsFound SpecificallyGoodaboutTrafficPolicemen'sTreatmentol Them (Base: Total9'l Respondent VendorsWhoExpressed Positive lmpressions) 06of Base* Mentioning

Categories

...........27 Theylet/allow usto sell..... .......................21 T h e yd o n o ta r r e sut s . . . . . . . . . . . . . . . . protection Theydo notasl(dennnd"grease" 20 ........ money,freegoods,fiavors......... withoursellingnor Theydo not interfere prohibft ......17 usfromsellingnorsendusaway.......

15 ....................

Theypaywhentheybuy.............

Theybefriendus,helpin timesof trouble pester ..........

10 or whentroublemakers us................ *Onlythosewith5olo or morementions areincluded one'sproduct or effort is hit by slow movement. a "WhenI can't sell all I have, they help me.n('Pagdi ako naka-ubos ng benta"tinutulungan nila ako.) - a newspaper vendor,16yearsold . nWehelp one anotherhere.If one ofus hasno sale,we help out in selling."(Nagtutulungan kotni dito. Ktngisa sa amin ang walangbenta,tutulungan namin sapagbebenta.)- a cigarette/candy/newspaper vendor,31yearsold o "Theyhblp me herewhen my saleis slow.They offer to their own customerswhat I sell."

(Tinutulungannila ako kung mahina angbentako. Inualok din nila angtindako sa kanilangcustomen.)- a cigarette/ candyvendor, 50 yearsold Another is referral.[f a customeris looking for somethingelseother than what one is selling,the fellow vendor carryingthe soughtafter item is summonedimnediately. o "If the customeris askingfor a newspaper,then I'll call the gas sellingnewspapers."

(Ktng nagtatanongangcustomer ng diyaryo,tatawaginko yung nagitinda ng diyaryo.) a cigarette/candyvendor, 40 yearsold .

o "If someone is looking for another cigarette brand or another candy brand that I don't have, then I pass him on to the one who has." (Kung moy naghahanap ngibang sigailyo o ibangcandy na wala sa akin, ipinapasa ko siya sa mayroon.) - a cigareftelcandyl peanut vendor, 32 yearc old.

A third form of help is in completing a transaction. For example, when a vendor runs out of change, others are ready to lend him the needed coins and small bills. Another help is in times of trouble or even a fight with a [elligerent customer: o "They're okay. They don't abandon me when trouble comes from a bad customer."

(Okey sila. Hindi nila'ako pinabayaan sa gulo kung magka-trouble ako sa salbahengcustomer.) - a cigarette/candy/newspaper vendor, 17 years old . "When one of us gets into a fight, we all come to his rescue." (Pagntay napaaway sa amin, nagtutulungan kaming lahat.) - a newspaper vendor, ?-0-24years old A fifth and final form of assistance is monetary. Those who find themselves needing an additional operating capital or who experience an emergency have their fellow vendors to turn to for the needed pesos.

16 THE ASIAN MANAGER r MARCH 1989

Traffic Policemen f,lost portableambulantvendors f Uf (76 percentof them) regard positivelythe traffic policemenin chargeof their marketintersection.

They claim to receivefair and good treatment.The remaining 24 percent relatethe oppositeexperience.

The positivelypredisposeddefine what specificallythey feel positive about.For instance,there is a sentiment of gratitude about how these policemenare not makingany arrest whenthey haveeveryright to. After a[ their vendingactivitiesare unlicensed.

Municipal lawsprohibit suchstreetintersectionambulantselling.And yet, theselaw officerstolerateand at times evenlend help to their hawkingactivities.Theyneitherinterferenor send them awayfrom the area.They also refrain from askingor demanding "grease"or protection money,free goods,or other favors.In fact, when they buy cigarettes,they pay. When they borrow a newspaperor magairne, they give it back afterwards.Many are their police evenfriendly and e>rercise vendorsin in favor of the authority timesof troubles.

Table6 presentsthe surveydatasupport for this predominantlyfavorable impression.

The24 percentnegativecomplainof a contrastingtypeof traffic policeman.

This is the public's stereotypeof the traffic policeman:routinelycollecting "grease"or protectionmoney,not

awaywithout payrng.Someambulant vendorswho work in an intersection mannedby a friendly and sympathetic Major Categoriesof FavorableGomentson WhatAmbulant traffrc policemanhatrcmade an arranVendorsFound Good in Their Gustomers gementwiththelatter to foil suchinci(Base: Total106Respondent VendorsWhoAreFavorablylmpressed dents.At the agreedsignalfrom the agwiththeirCustomers) grieved vendor, the policenan attempts an arrest of the speeding 0,6of Base*Mentioning Categories vehicle. If heeded,the policeman togetherwith the vendor approachthe Theydo not shor any disrespect;they treat vehicle.With the policeman'slelp the usaseqtnl. ....................22vendor exactsthe right price or payTheypaythee)â‚Źcvrigtrt pdce....... ..................

18 ment.

Table7

Theygiveawaythechange;givetips;payexcess.

TheypayrQhtaway Theydo notshout;theycallpropedy Theydo notbargain abort price.

Theyalwayspay;whenu/antto pay later,pay on theirorn............

Theyaregoodto us...............

............ t7 ....................

12 .........,..,12 ....................

10 g ......... g .......

* Onlythosewith 5%or morementionsare included. paying for what he gets from the vendor'sdispe.nser bo4 andmakingarrests everynow and then to raise his collectionor to remindvendors\phois the bossaround here.nFortunately, this type seemsto be in the minority.

TheCustomers lllost customersare good.Only a I U I few are not accordingto at least 88 percent of the portable ambulant vendors.

What specificallymakesfor this impression?What havecustomersdone to createit? First, they showrespector at least do not look down on the vendors: o 'nThefre courteousto us even if we're onlyvendors.n (Magalangsilasa amin kshit vendon langkarni.) - a cigarette vendor, 18 yearsold o nTheydon't look down on us.

They treat us asequals.n (Hindi kami minamaliit.

Pareholangnila angtingin sa arnin.) - a cigarette/candy vendor, 22 yearsold A portable ambulantvendor seems consciousofwhat he perceivesashis low socialstatus.Sucha face saving customerattitude that showsno disrespect is endearing to the observant, sensitiveambulantvendor.

What is an act of disrespect?The mostmentionedis rhisone:

r "Throwing the palment down the road.n(Hinahagisangryra sa kalsada.) - a cigarette/newspapervendor, 31"yearsold The other is shoutingor improper calling o "Shoutingwhsn gallingus."

(Naninigawpag tinatawag kami.) - a cigarettevendor, 15yearsold o "When buytog,not properly cailing us but shoutingat us instead.n(Pagbumili, hindi tumatawogngmaayos; . sinisigawonkami.) - a magazinevendor,18yearsold The good customeralso paysthe right or exact price. They pay right awayso the vendor doesnot have to run after them when the traffic signal lights turn green.They are often generous.They give awaythe small changeas tip. They do not bargain about price.

All thesecharacterizationsaredravm from the surveydata shoumin Table 7.

TheLZ percent who find customers unpleasantin more rather than lessoccasion$uniformly picture them as cheaterc(madaya). They follow a commonroutine.Whenbuying,theyaskfor the product,askfor the priceaftergetting hold of the product, complain about the price and bargainwith the vendor,and oncethe greenlight is or\ eitherpay shortof the price or speed

Conclusions and lmplications discussionsuggestssome Aut Vthings about portable ambulant vendors as businessand marketing manpowerresources.It alsosuggests some things about what marketing managerscan do with suchmarketing resouroes.

To start with, the practice of portable ambulant vending represents an accumulation of physically demanding trading experiencesand skills. They are the kind of e4periencesand skills that makeup the rawmaterialsfrom which strong willed businessand managemententrepreneurscome.It is true that amongthe ambulantvendors interviewed, only two percent envisioned themselvesasbecomingsuch businessmen.But this is two percent that volunteeredtheir dreamwithout being draumout nor led into it. In each one of the 20 study sites,there wasat leastone functional vendor leaderwho attendedto the commonneedsof the goup.Those who follow him eall hin "Big Brother' (Ktya).In thoseintersectionswhere the vendors organizn themselvesby dayversusnight vending trro functional leaderstake charge.

Within the study sample,this number represents17percent to 25 percent of all ambulantvendors.

Somedevelopmentplannersand strategistsbelieve in the development theory that businessentrepreneursare a keyand critical factor in initiating and sustainingeconomic development.

Planningand implementingdevelop ment efforts under this theory start with the crucial search step.

Entrepreneursmustbe found, trained, set-up,supported,and giran free play.

But first, they must be found. This study suggeststhat the searchmay fruitfirlly be directed at the population of portable ambulantvendors.

gottenusedto receivingfrom their current suppliers.

Notes

For the marketingmanagerlooking at thesevendorsas a potential or prospectiveplacementoutlet, the presentstudy suggestsa numberof marketingpossibilities.First, it is possibleto expandthe ambulantvendor's product line. The buying situation where he sellsis an impulsebuying situation.

Therefore,in additionto cigarettes, candies,newspapers,and magazines, this trade outlet may be openedto impulseproductsthat: (1) sell at low prices,(2) aremassdistributedandare self serviceitems, (3) have a short product life, and (a) are smallenough in sizeto fit into the easystorageand displayneedsof the portableambulant vendor'slimited spacedispenser.

Accordingto our surveydata,to participate in the market servedby the portable ambulantvendor, the effectiveentrynegotiationstrategymustaddressboth the ambulantvendorsand their suppliers.Penetrationof the portableambulantvendoroutlet must be initiated through their big brother or kuya.To touch base with the on the other hand, vendors'suppliers mustsetup the the marketingmanager kind of trading practicesand personalitiesthat this studyhasidentified.

Sustainingthis market participation requiresconsiderationof theambulant .vendor'ssellingcircumstancesand

sourcingneeds.Our data suggestthat the prospectingmarketingmanager mustbe ableto offer hisproductin the ulOto 45 percentgtossmarginrangeof the candyline or the high volume thoughlower grossmarginrate of cigarettes.Unlesshe hasthis basic motivatorin his impulseproductoffer, the marketingmanagerwould have verylittle to look forwardto in termsof a sustainedrelationshipwith the ambulantvendor.

If he meetsthis businessrequirement,the marketingmanagermust now managehis ambulantvendor relationshipbasedon the vendor's sourcingpracticesand needs.Our studyhasidentifiedwhat thosepracticesand needsare.They suggestthat in dealingwith ambulantvendors,the marketingmanagermust: o be preparedto extendsmall loansor advanceseventhough he will be transactingin cash; o know and practicethe kind of customerPR vendorsuppliers are nowpracticing; o provide occasionalor promotional discountseither in price termsor in kind suchas"free goodsn;and, . glvethe vendorsthe kind of attentiveand accommodating customerservicethevhave

18 THEASIANMANAGERr MARCH198e

1. For a discussionof this thesis.see Alfred D. Chandler, The Visible Hand: Managerial Revolution in American Business.Cambridge:Harvard UniversityPress,1977;andHerman Daems,"The Rise of the Modern IndustrialEnterprise:A New Perspective,"in A.D. Chandlerand H. Daems, ManagerialHierarchies.Cambridge: HarvardUniversityPress,pp. 2frT223.

2.The retailing and consumerbehaviorliteraturedistinguishamong four impulsebuy,ogsituations: o the pure impulsebuyingsituation wherepurchaseis for varietyor novelty; o the reminder impulsebuying situationwhere purchaseis madebecausethe product is seenand the buyer was "reminded"of his/herneedfor it; o the suggestionimpulsebuyng situationwhere purchaseis madebecausethe buyer was persuadedto do so at point of purchase;and, o the plannedimpulsebuytog situationwherepurchaseis basedon the buyer'sprevious intention to buy if the product is at price specialor coupon.

For further details,seeJ.S.D'Antoni "ImpulseBuying and H.L. Shenson, Revisited:a BehavioralTypology," Journalof Retailing,Vol. 49 (Spring 1973),pp.63-76;and H. Assael,Consumer Behavior and Marketing Action. Boston:Kent, 1981,Chapter20.

Prof. Eduardo L. Roberto,Ph.D.

DEVELOPM ENTMANAGEMENT

TheManagement of Ghange byhof. EduardoA. Morato,fr.

(MBM'74) Fhange startsin the mind or in \rtheenvironment. In the former, changeproceedsfrom a new perception of things,a newvision or a new realization of what could possibly happen.In the latter, there is a phpical rearrangementof reality that elicits reactionand new behavioral responses.At the perception level, the mind subjectivelyevaluatesthe situation and rejectsthe statusquo. It therefore seeksto changereality. .tt the environment level, objective reality itself changes,providinga stimulus for thoseperceivingthe changeto change.It therefore alters perception.

Newperceptionsarousethe needfor change,while changesin realitynecessitatechange.

Qf Msjonariesand Heacttonaraes Jo illustrate the changeprocess, I two caseexamplesare given in this reading.The fiist one his ro do with the'work of a privatevolunteer organization,the South Cotabato Foundation (SCF), in its artemptsto changethe lives of the T'boli and B i l a a n t r i b a l c o m m u n i t i e si n t h e highlandsof South Cotabato province. The secondone narrates the efforts of a governmentofficial who quit his corporate post to organize the cotton farmers in the lowlandsof the sameprovince.

SCF wasled by its visionary,Bong Garrucho,who possessed a missionto improve the lives of 'depressedand remote communities"among the Tbolis and Bilaans.The tribal gfbups were the subjectof a paper he wrote during his undergraduateyearsat De La Salle University. His mental picture of a better world for the upland communitiesstirred him to change their qdstingwap of doing things.

The story of the United Cotton

Growersof Mindanao,Inc. (UCGMI) sprangfrom a reaction to the harsh realitiesthat befell the cotton growers of South Cotabaro.The Philippine Cotton Corporation (Philcottonj had withdrawn its support for the cotton farmersdue to the latter'sviolation of their exclusivemarketing agreement and the former's low pricing and ginnery gare delivery policies. The farmerswereforcedto renegeon their loan obligationsto the banks,forcing thesebanksto stop financingthe cotton crops.

This drasticchangein the aotton industryenvironmentmotivateda Philcotton production engineer,Henry C a l l a o , t o l e a v eh i s j o b a n d c o n centrate on organizingthe cotton farmers.He praisedand championed the federaringof the small iotton f a r m e r s ' a s s o c i a t i o n si n t o t h e UCGMI cooperative.This led to severalchangesamongthe organized

farmers.First, they developedstructures and systemsto re-avail of the loansthrough UCGMI's 'paper guaranteesland to accesswilling markets(i.e.,rhetexrilemills) through which they obtained letters of credit.

Second,they becamemore conscientious in payingtheir loansand honoring their market commitments.

The two casesmanifest how change happens.Bong Garruchohada vision.

This led to changeswithin the tribal communities.The deterioratingcondition of the cotton industrv shook Henry Callao to act and changethe reality that he saw.

Attitudesand BesponsesTowards Chahge ln both the tribal and cotton l farmers'situations,the people welcomedthe changesintroducedby

THE ASIAN MANAGERo MARCH 1989 19

n o t a l t e r t h e t r i b e ' s s y s t e mo f the two changeagents.For the cotton r e l a t i o n s h i p s .B o n g G a r r u c h o straw farmers,it wasperhapsthe only coursedhis intervention through the that they could hold on to. For one bongfulongorthe tribal chiefwho ensitio, Balnabo,amongthe Tboli and B i l a a n t r i b e s , t h e r e w a s e v e n joyed very high statusin the community. He presidedover a council of adamancefor change to be introelderscomposedof the mostsenior of Balnabo leaders The tribal duced. sawBongand his friendsmotorbiking to other sitios carryingseedsand other harbingersof change.They becameenviousenough to stop Bong and demandthat they too be helPed. Thus, the attitude towardschangeby both recipient groupswaspositive.A hostile or negativeattitude might have prevented or delayed change from happening.In betrreen the positive and negative poles, there is a neutral or wait-and-seâ‚Źattitude that could go either waydependingon the changeagent'sefficacy.

Not all positive attitudes towards change,however,lead to compliance.

Nor do all negativeattitudesresult in resistance.For sitio Balnabo,there was a very positive attitude toward road or trail building. That waswhat all the T'boli communitiesexpressed as a priority need.However,they did not make any move to contribute toward meeting this need until the elderly first wife of the tribal leader reprimandedthem. Sheshamedthe sitio'smen into following herbybeing the first volunteer.

A negativeattitude thus can lead to compliance, especiallyif the order emanatesfrom avery powerfuI source.

In essence,positive attitudes still ,, have to be'activated by trigger mechanisms(like a directive,an incentive or motivator). Negativeatand most respectedmembersof the titudes can be overcome by power community.He headedthekasfala, sourcesor by extreme necessity.This the indigenousjudicial court,with the is whereleadenhip and organization- elden ashis advisers.Hewas alsothe al slntemsand control come in. They final decisionmaker in the sikokum, are the important ingredientsthat the regulargatheringofelders. In the translateattitudesinto action.They sikohtm, most of the important comdefinehow the qubjectsofchangecan munity issueswere taken up (e.g., transforrh themselvesinto initiaton division of lands,decisionson major of change(i.e.,act on their own to efundertakings,dowry conflicts and fect change). others).Although the bong{ulong did not presideinthe sikohtm, he wasthe Technicaland Social ultimate arbiter and decision-maker.

Changes Tlrebongfulongwasalso the grand counselor for all community activities. Once the SCF had convinced I n the caseof the Tboli and Bilaan I tribes,the changeagent (SCF) inthebongfulong,therestwereeasierto troducedtechnicalchangesinto the mobilize and organize. communitiesthrough the very strong The changesthat SCF introduced s o c i a l p o w e r s t r u c t u r e sa l r e a d y i n t o t h e T ' b o l i a n d B i l a a n c o m present among the people. They did munitieswere all technicalchanges.

33 It was only

whenthe T'bolileaders were GoIl-

vincedby an outsideforce that change would im-

provetheir livesthat the

community took on the challenge.

20 THEASIANMANAGERO MARCH1989

They had to dowith improvedwaYsof planting,better technologyapplicaiions, animal raising,trail building, marketing,health,landinputsand the like. The changeagent taPPedthe strongsocialpowerstructuresin place to effect thesetechnical improvements.

In the caseof the cotton farmers,the changeswere largely social.They involved the modification of the farmers' social structures,slntemsof relationships and operating procedures.The farmers alreadyknew the technicalaspectsof cotton farming, havingbeentrainednot only in raising that crop but other commoditiesas well. These farmers or their forefatherswere migrants from Luzon or the Visayanislandsup north. They were mobile, pioneeringand adventurous Christian lowlanders who embracedenvironmentaland technical changesreadily. They were willing to try anything new which they thought would benefit them.

What they lacked,however,wasa social structureanda slttemof engaging and controlling themselvesfor their own benefit. This is what Henry C:llao did for them. He reorganizedthe farmers'associationsand federated them into the UCGMI. He linked them to the textile market and designeda pricing structure that would avoid the previous practiceof polevaulting (or selling to other buyers).He built up their moral and social foundation through leadership training and value formation seminars.He negotiatedwith the banls to relate and deal with the farmersbut this time with a better financialpackageand systemthat motivatedhigher repaymentrates. In effect, the social relationshipsof the farmerswith their fellow farmers, the banks and the tâ‚Źt(tile buyerswere alteredand improved through organizationalrestructuring, systemsdesigningand procedural changes.

In both cases,leadershipand organizationalcontrol werevital components of change,one indirectly through thebongfulong and the sikohtm, the other directly through the sheereffort of the changeagent himself acting as leader and pushing for organizational changes.What seemsobvious thereforeis that significant technical changescan be intrduced â‚Źasi$ if a strongsocialstruc-

t ture is in place to absorb them. Social changescan be achievedreadily ifthe technical aspectsare already known and accepted.And for both technical and social changesto attain optimal lerrcls,strong leadenhip andorganizational controls should be present.

ldeoloov.Valuesand OrganE&itional Tradition

accept the new vision. A secondis to replace, conquer or destroy that pouterbloc by charismaor by force.A third is to erode the people's confidence in their leadership by manifesting a better and more attractive alternative outside of the sptern This is to make the existing ideologr appear irrelevant and obsolete.A fourth is to incite the followers to rebellion by orposing the weaknesses, frailties and negative efrects of the statusquo. value s'6temsare a little bit harder

fhe most difficult siruation to I change is when the ideology, value systemand organizational profile of a group reinforce each other towards a oertain modus vivendr A changeagent can succeedonly if he breaks the weakest link in the chain or, through sornefortuitous event,destroln the strongestlink. As a rule, therefore, the more cohesive the group in their ideology, values andorganizationalprofile, the harder it is for changeto happen.c-onvenely, the lesscohesiveit is the easierfor changeto occur.

The ideologicalfacet is often championed by the most powerful memben ofa group.Ifrhe ideologyhasbeen handed down from generation to generation,the power bloc in the group can hide behind the doctrines, dogmasand beliefs laid down. For o(ample,take the caseof thoseancient societiqsprofessingtheir king to be a descendantofthe gods,attributing to him mystical and supernatural powers.This belief would then get p e r p e t u a t e do v e r t h e c e n t u r i e s without question.Thus, even if the reigning monarchwere an absolute idiot, he would still be reveredas the absoluteruler.

Historically, ideologyhasplayeda large role in capturing the imagination of the human race.Communist to changein the short run. Most of countriesaswell as capitalistnations them have probably been derived mouth slogansthat raily the people to from centuriesof practice.However,if their causes.Most religious leaders the leadershipis weak and the orrely on spokenand written traditions ganizationalstructuresand slstems to galvanizetheir followers into total are falling apart, then valuestend to submission.Political demagoguesand drift with the ride. sincerepatriots, Keynesianand classiThere are individually-held values cal economists,anthropological and which people imbibe from their home behavioral scientists,management and school training and from their enand labor unions haveall found advironment. These are already very herentsthrough persuasionor ooermuch formed and ingrained as a percion, education or indoctrination. A son approachesadulthood"There are changeadvocatemust therefore try also collectively-imposed values one ofseveral schemesto effect a new which are called norms or standards. order. One is to convincethe leaderTheyset the limits for the interaction ship and the controlling porerbloc to and behavior of people while they are

under society'scontrol How does a change agent modify value slatems?One effective method is to get involved in participatory group processesthat try to changethe rules or normsof the game,therebyestablishing new standads of behavior.

This becomesviable only when a majority or the key influentials of the group take part in the decisionmaking proess. Another method is o work on individualsbyexpcingthem to other behavioral patterns and lifestylesoutside of their own society.If a good number of theseindividuals start to oonstitute a critical mass,they can be brought back to their own group !o espousethe changesdesired.

Rather than try to changevalue sptems,valuescan insteadbe usedto initiate change if they are reinforced.

This is an easiertask than modi$ing the valuesthemselves.A changeagent must, however, be sensitive to what the people hold dearly and treasure the most.

The organization'sprofile is another determinant of change.For groups continually â‚Źnposedto change,change comeseasier.For isolated societies, changeis regardedas an intruder.

Urban centersthat are exposedto media bombardmentand possess transport networks that witnessthe traffic of people and eventsare more likely to be centersof change.Outlying rural areastend to lag behindcity changes.Changecomesto themwith more reluctance.Changesin remote rural areasoften startwith the impressionableand youngersegmentsof the population, unless their leaders stronglydecreeothenrise.

Change also occurs more freely when the organization is heterogenousand not tightly structured. The more homogenousand orclusive the group, the harder it is for c h a n g et o h a p p e n . T h u s , g r o u p cohesivenessis a deterrent forchange.

Unless,and that requiresunders@ring, the group's power bloc ops fora change In which case,cohesiveness becomesa highwayfor change.This is exemplified in the T'boli tribes who haveclung to their age-oldnomadic practioesfor centuries.However,their exposureto the more successful Christian lowlandersopenedtheir vistas somewhat.But this alone did not produce change.It wasonlywhen the T'boli leaderswere convincedbv an

THE ASIANMANAGERe MARCH1989 21

-

outsideforce that changewould improve their livesthat the community took on thechallenge.

And thestrong, cohesivestructure took over to perpetuate change.This was also manifestedin the caseof the cotton farmers.The changeagentusedhisorganizationalingenuityto assume leadership.His ability to organizeand produce resultsgavehim the moral right to lead.

for Managing Strategies Chanfe

high respectfor or fear of the power holder. Powerplaysare likewiseeffective when the approval of the changesubject is not necessarybecauseof establishedsystemsand relationshipsthat are recognizedand followed bv all concerned.

i3Thechange agentcan playthe role of negotiator

fhere are manywaysof introducI ing and managingchange.It all dependson the circumstances at hand and the subject of change.Theseare expoundedon below.

Get to know the rublect of change "neverwrite a Jl guru once said f{letter to your superiorunless you know the response.n Hewas exaggeratingof coursebut the messageis clear.An action producesa reaction.

And if the chancesof a negativereaction are high, then the action should never take place, especiallyif the reactionwould be coming from a superior force. The gist of the wise sayingis "know the personyou are dealingwith." And if the giverof the stimulus(i.e.,the letter writer) expectsa certain response,then he should know how to phrasehis sentences.He sho.uldknow the psyche and the behavioral idiosyncraciesof his addressee.The more intimatelv known the respondentis, the mor6 one can fashion a tailor-crafted s t i m u l u s .O n e s h o u l d a s k w h a t motivatesthe respondentor the subject of change?What turns the subject oII? How did he react in the past to varioussituations?What is his decision-makingprocess?What concerns the subject most? What least bothershim? What exciteshim? How broad-mindedor tolerant is he?How bigoted and biased?

Power Plays /l quick and direct wayof introFlducing changeis to useone's power or to nborrownpower from a potent source.It is most effective when the subjectofchange hasa very

to find out if

the rangeof choicesof oneside has someoverlap-

prngzones with the rangeof choicesofthe other side. lf

thereare, thenthe processof givingand takingcan proceed. ,, Bong Garrucho of the South CotabatoFoundation borrowedthe bongfulongbpower in introducing change.BongYe, the elderlyfi rst wife of.the bongfulong in Balnaboasserted herown powerbasetoget the menfolk m o v i n g . I n t h e s e c a s e s ,f o r m a l authority or accessto it provedsufficient to producechange.

Powercanbe definedasthe abilitv to

22 THE ASIAN MANAGERo MARCH 1989

makepeoplecomplybecauseof one's (or the group's)control or authority over some critical aspectsof the people'slives.Theseaspectscan be their economicpursuits, their lives and properties, their social relationships,their political status,their children'seducationand well-being, t h e i r a c c e s st o r e s o u r c e s ,t h e i r freedom, etc. Power can likewise be derivedform one'sability to gain followers through charisma,character magnetism,and symbolicpenonification.

In the control or authority-based power source,the organizational structureandslntemsdefinethe resultant behaviorwhichis moldedaccording to reward mechanismsand sanctions imposedby society.In the personality-basedpower sourcethe leader'sactions, thoughts and words becomethe inspiration for change.

Power is strongestwhen both the leadershipand the organization's authority and control functionsare simultaneouslyat play.

How is power used for change?

There are two ways:1) changethe people'sperception;or,2) changethe environmentand the rules governing the environment.In changingperception, the objective is to convincethe changesubjectthat hewould be better off if the changeoccurs.In other words,thevision of a better tomorrow is presented.Alternatively,the power source can draw a very bleak scenario if the changesubjectdoesnot change.

In changingthe environment,the power source can provide benefits, rewardsand higher statusfor the changesubjectwhich he could take advantageofifhe changes.

Thus,the rules of the gameare altered in favor of thosewho comply.Alternatively, the power source can make the environment difficult for thosewho do not change.

Empowerment Strategles ln contrastto power playswhere I the leaderor the organizational authority and control hold sway,empowermentstrategiesare designedto transfer power to the changesubject so that theycanaffecttheir own changes.Empowermentstrategiesrequire three essentialingredientsto succeed.First, the changesubjectmust be givenor taught to demandacoess

to resources.The subject must be provided or must secure the wherewithal to gain power. Second, the changesubjectmust assumecontrol over resourcesand build up its capacity to seekopportunities, exploit and usenatural resources,multiply its productive baseand benefit ftom its own efforts.

ExternalAllianceand FailicipatoryProcess

:l

f\ ccess,control and capacitycan AUe gainedwitn Usting etre6tsty changesubjectsifthey are helped to acquiretheseand they get involvedin the processof acquiring them. The combinationof an externalallv and a self-internalization proaessworked to the advantageof the tribal communitiesand the cotton farmen. The externalallies (Bong Garrucho and Henry Callao) promoted the idea of self management.Bong got the tribal communities and the cotton farmen to choosetheir own crops. To express themselvesmore vividly, the community elders literally drew their vision of how their mountains and hills should look after the successful !!nplementation of their project.

They participated in designingiheir uslon.

Henry put the burden of performanceon the cotton frrmers'associations which adopted rules and regulations for their own benefit. The associationssetaside10percentoftheir net income for bank guaranteepurposesand 15percentasa resen,e.This reserveformed the core of their capital formation. They adopteda riiksharingsptem to get rid of polevaulting practioesand undertookmeasures to help one another should the crop,s of an individualfarmerfail. Theobj&tive of both changeagentswasto ensure that their changesubjectsworked together and protected eachother.

They used participatory processes within the tribe or the associationto achievehigh levelsof involvement.

Educatlon and Tralnlng ln the Tboli case,the tribespeople rwere trainedand educatedon the t e c h n i c a la s p e c t so f a g r i c u l t u r e through exposuretrips, demonstration farms,and upland development skills traini ng (90Vopracticel and

lOVote,chnical).

On the socialaspect, they underwent awareness workshopsand sessionson organizational development.Sincethe social structure of the T'boli was alreadv quite established,technical training was dominant. In contrast,social training wasthe focus in the aotton farmers'case.Four seminarswere held annually. Three had to do with cooperativedevelopment,advanced leadenhip training and value formation. Only one wason the technical side and this was on accounting and internal control procedures,which were in effect also organization strengtheningin nature. Thus, there waslesstraining on the purely technical aspectand more on the socialbecauseof the cotton farmers'strength in the former andweaknessin the latter.

through a give and take of two or more forces,then negotiatingand arbitration strategiesbecomeuseful.

The changeagentcan play the role of negotiator to find out if the rangeof choicesof one side hassomeoverlapping zone.swith the range of choices ofthe other side.Ifthere are,then the processof giving and taking can proceed.

Gholcc of Change Strdegy

tituations and people are not al9ways the same.A changeagent must therefore carefully evaluate his strategic options for introducing change.This choice must be made only upon a thorough analpis of the situation in order to pinpoint what needstobechanged.This is especially important becausethe changeagent might not be given a secondchance.

Sometimes,irreparable damageis done through faulty entry strategies and the relationship betweenthe changeagent and the changesubjea becomespermanently estranged.As a rule, a changeagent must try to und e r s t a n dt h e s i t u a t i o n f r o m t h e . changesubject'sperspectiveand not from his own. He should get behind the subject'sthinking and takeit from there. The changeitself must be explained from the subject'spoint of view no matter how irrational the changeagentmay think it is.

If there is bound to be someresistance from the subject's perspective then the changeagent must find the probable root causesof that most Gollectlve Assertlon and Unlty resistance.

It may stem from fear of of Purpose losingthe statusquo or fearof failure.

It may spring from a feeling of helpfo enablecommunitiesor change lessnessand resignation to one's fate. t s u b j e c t st o d e m a n dc e r t a i n It maycomefrom diffidenceto display rights to resources,they must be anysign ofweakness.It maygoagainst taught to assertthemselves.This can grain the of the subject'sbelief and only be attainedif the communiw is valueslntems.Or it mayevenbe dueto organizationallyunified and hasa the changeagent who doesnot have commonpurposeto pursue.Collecthe acqeptanceof or credibility with uusm generatespower through numthe subjecl bers.It alsoallounlouderarticulation Corollarily, the changeagentshould of needsvia formalizedchannelsof also examinethe conditions that comniunicationexpressedthrough might facilitate change.When the t h e i r c o m m u n a l g a t h e r i n ga n ' O agent himselfdoes not haveaccepleadersh ip structures. tance,a credible go-betweencan be employed.Another alternativeis to Negotlatlng Strategles usethe clout ofthe power sourcethat controls the changesubject.If the l n i n s t a n c e sw h e r et h e c h a n g e r p r o c e s sc a n o n l y b e a c h i e v e d c h a n g e a g e n t c a n c o n v e y knowledgeabilityand sincerityto the

THEASIANMANAGERo MARCH1989 23

change subject he becomespermanently estranged.

As a rulg a changeagent must try to understandthe situation from the changesubjects'perspectiveand not from his own. He shouldget behind the subject'sthinking and take it from there. The changeitself must be explained from the subject'spoint of view no matter how irrational the changeagentmay think it is.

Socialand mental preparednessare likewisechangefacilitators.The idea is to open the heartsand mindsof the changesubject through adequate groundwork. Awarenessand understandingofthe purposeand effectsof c h a n g em u s t b e n u r t u r e d b y t h e changeagentto their proper fullness.

Misconceptionsand half-knowledge oftentimesderail the changeprocess.

In making the actual choiceof the changestrategyto be adopted,the changeagent must take an adaptive approach to fit the strategyto the situation and the peopletargetedto change.

Power playscan be usedwhen the leadershipor power bloc is strong.

Directive power approachesshould likewisebe employedwhen resources are limited and time is of the essence. meaningthat an immediateresponse is requiredfrom the changesubject.

The trouble with power plap is that there hasto be constantpressureapplied to makethe changesubjectcontinuously comply. Otherwise,laxity takes over. If "too much pressureis given, however,the changesubject might rebel and refuseto oomply.

Empowerment strategiestransfer the burden ofchange to the change subject'sown internal processes.They arequite effectivewhenthe total comrnitmentof the changesubjectis mandatory. It is also a better strategr if the changeagent does not have much power to exert on the subject. He therefore facilitates the subject's growth in power to initiate its own change.The agentcan useeducation and training when the subject's deficiencylies in ignorance,fear of failure and lack of confidence.Participatory processescan be instituted to elicit maximumcooDerationandinvolvement.

Organizationaldevelopmentand team building are potent meansto empowerchangesubjectswhen the changeagent realizesthat they must

act as a collective force to counter other forcesthat are trying to depress their status.The drawbackin empowermentstrategiesis that theytake time, patienceandkeenorganizational skills.The changeagentmustsubordinate himself to the processand prevent the subjectfrom depending too muchon him. Thewholeobjective is to allow power to grow independentlyand within the changesubject.

Getting to know the changesubject is important no matter what the circumstancesespeciallywhen one is operating on a person-to-person

J3 Poweris usedand abusedfor power'ssake.

In the end it

corruptsthe changeagent andthe change subject's respectis lost forever. ,, plane. The only backlashis overconfidencein that knowledge,and thereon the part fore pre-sumptuousness, ofthe changeagent.

Negotiating strategiesshould be usedwhen one is dealingwith two or more opposingforcesthat can be brought to termsthrough a processof givingand taking and finding areasof compromise.

In the final anallais,one hasto adopt strategiesthat are contingenton the peopleand their environment.There

24 THEASIANMANAGER. MARCH1989

is no one correct strategy,just effective and ineffective onesdependingon the circumstances.Flexibility and adaptabilityare the key elementsof suocâ‚Źss.

Monitorlng Changes lty nature, changeis volatile. lJfts5penses to changemust be monitored closely lessunwanted effectsnegatethe relationshipbetwern changeagent and changesubject. l-ooking forward to what the possible responsesto changemight be and planning how to cope with them would be a useful exercise.Fallback positions must be establishedalong with strategicshifts should unexpectedreactionserupt. Constant dialoguingand feedbackmechanisms are important for the monitoring of change.In a group situation, the changeagentshould cultivate friendly allies or the whole group itself should prove advantageousto the interestofboth the changeagentand the changesubject.

Finally, there is no substitutefor everyonehavinga full understanding of the changebeing introduced,the reasonfor the changeand the effecs of that change.High expectationsonly lead to high levelsof disappointment.

And deceit carrieswith it an overwhelming backlash.This kind of misunderstandinghappenswhen overconfidentpower playerstake the changesubject for granted. Power is usedand abusedfor power'ssake.In the end it corrupts the changeagent and the changesubject'srespectis lost forever.When this happens,the only way the power player can stop the changesubject'srebellion is to exert more and more power.At that Point, the changeagent bcomes the change subject'sobject of change.

hof. HuardoA

Morato

AIM's contributionto development...

AnAIM Degreefor DevelopmentManagerc:

Masterin Development Management Program

by Prof. EduardoA. MoratdJn (MBM'73) f\ fter a decadeof action research, Flhands-on consultancies, workshops,casestudies,seminars a n d s h o r t t r a i n i n g p r o g r a m so n developmentmanagementinvolving international, governmentaland private institutions, the Asian Institute of Managementis launching the Master in DevelopmentManagement (MDM)program in June 1989.

The MDM is a one-year,full time degree program. It seeksto professionalizedevelopmentpractitioners in governmentand non-government organizations.Thesepractitionersinclude public administrators, economic planners, social d e v e l o p e r s ,p r i v a t e e n t e r p r i s e managers,international funding and aid officials and development bankersand financiers.

The MDM program respondsto AIM's mission to developnAsian managenwhoseskills,knowledgeand attitudesare relevantto Asian mnditions and con@rns,who are sensitive to Asian valuesand sensibilities,and who are committed to the development of Asia and its peoples,particularly the disadvantaged, the underprivileged,the poor."

The MDM is a unique international offering which recognizesthe weaknessof training professionalsin the fi eld of developmentthroughseparate disciplines by subsumingthesedisciplinesunder the uni$ing umbrella of management.Usually,development is taught under the divene purviews of economics, sociology, anthropolory, political science,businessmanagement,technologydiffusionand public administration.The practitioner-orientedMDM eptures t h e e s s e n c eo f t h e s ea p p r o a c h e s throughtheveryactiveinterventionof a generalistmanagerwho is both

results and processoriented. He is concernedwith both the objectives and the means.Thus, the goal of the MDM programis to educateits students for top level, hands-on, m a n a g e r i a lp o s i t i o n s . I t i s n o t designedto train technicalspecialists but to producegeneralmanagersand strategistsin development.

While researching,conductinginterviewsand focusedgroup discussionson the designof the MDM, the AIM faculty found that while hardnosed,no-nonsensemanagerialskills are of imperative importance,such aspectsas value formation, social responsibilityand the articulationof effectivedevelopmentphilosophies play a critical role in the molding of the completedevelopmentmanager.

The researchalso indicatedthat the MDM programmust adopt a holistic view of developmentwith its fotus on people,their pursuitsin life and the environmentthey live in. The programshouldembracethe economic, social,political, cultural and spiritual concernsof man by taking on an integrativeapproach.

The Model Development Manager ln trying to find out whar rhe ideal f M D M g r a d u a t e ' i so r w h o i s a model developmentmanagerthe AIM faculty invariablygot the messagethat he must be a total person.

He must be a manager,catalystand teacherall rolled into one. He must be a linkage builder and networker.

He shouldbe an organizerand mobilizer.He shouldbe a plannerand implementor.He shouldbea manwith a purpose,a missionaryfor prosperity, productivity, and organizational maturity without sacrificingthe equitable distribution of development benefits,the quality of people'slives and the unifying concept of community. The product of the MDM program must be a personwho will

not only be ableto managea development institution, program or project but who will also be able to multiply himself by transferring his skills to others.

Market Surveys ln its surveyof Asian countriesto lgauge the interestof dwelopment institutions in the MDM, the highest levels of interest camefrom three countries:Bangladesh,Indonesiaand the Philippines.India, Pakistanand Malaysialikewise expresseda positive responseto the program.The surveyindicatedthe preferenceofthe respondeesfor a one-year,full-time programwith a clearsignalforenrolling or endorsingsomeoneto enroll in the program asearly asJune 1989or June 1990.

In-depth Delphi interviewsand focusedgroup discussionsrevealed training requirementsandaspirations that led rhe AIM faculty to designa unique MDM course.

Program Design fhe one year Master in DevelopI ment Managementdegreeprogram is divided into three modules which addressdifferent facets of managementintervention.

The first module gives the student the basicgroundingin the managerial skills and proaessesof analysis,problem solving, decision-makingand communicating.Theseskills and processesare applied to functional areasof managementlikâ‚Ź financing and resourceallocation,operations, marketing, people developmentand organizational control. Tools and techniquesof analysis,idea generation, evaluationand judgment,implementation and risk management are sharpenedto facilitate the thinking and doing tasksof the development manager.

The secondmodule shifts the em-

THEASIANMANAGERo MARCH1989 25

p h a s i st o t h e t r a i n i n g o f t h e t o p development managerwho has to grapplewith volatile environments and situationsat a fairly high level of intervention. The managementskills of conceptualizing, synthesizing, strategizingand integratingare honed through thee major themesor learning modes- strateglformulation and implementation,programand project managementand the managementof change.These three themesare carried out in the contextof three developmentprocesses.

The fint one is the environmentaldevelopment prooesswhich looks at area management, sectoror industrymanagement and the managementof development institutions. The objectiveof the first processis to improve productivity while not sacrificingthe quality of the e n v i r o n m e n t . T h e s e c o n di s t h e economicdevelopmentprocesswhich looks at the twin objeoives of creating and distributing wealth through resourcemobilization, investment generationand market exploitation.

The third proaessis socio-political developmentor humaninfrastructure

building that aims to increasethe c a p a c i t yo f p e o p l e t h r o u g h t h e dynamicsof their organizational development,valuesand ideologies.

The third module delvesinto the specificfunctional areasof expertise required of a senior developmentexe c u t i v e . T h e s e a r e a sa r e s o c i a l entrepreneurshipand enterprise d e v e l o p m e n t ,s e r v i c e d e l i v e r y , managementof people'sorganizations, social marketing,strategic managementfor developmentinstitutions, developmentfinance,applied researchmethodologies,and learning methodologies.

To providea field-basedapplication of the managementskills taughtin the MDM, the program requires a ManagementResearchReport that bringstogetherthe learningsfrom the three modules.The Report demands an environmentalassessment of an areaor sectorin the first module,the designof a strategicintervention in a developmentsituationin the second m o d u l e ,a n d t h e f o r m u l a t i o n o f recommendations,action plansand contingenciesthat would actually

benefit a developmentorganization and its target clientele in the third module.The MDM studentis therefore able to contextualizehis education in the realworld of development.

Finally, the MDM utilizes the basic teachingmode of the Asian Institute of Management,the casemethod.

Education expertsinterviewedsaid that the highly participativestyleof the casemethod waswell suited for the developmentmanagerwho hasto interactin a lessdirectivemannerwith client systems.The MDM will, however,also uselectures,role-playing, field immersion exercisesand group presentationsto round up its pedagogicaltools.

ProgramDesign Flrgt Module

Thlrd Module

Second Module

Basic lt/bnagoment Skills and Processes

Crcnceptualizing,Synthesizing,Intâ‚Źrating and Strategizing

FunctionalAreasof ManagementExpertise

Analyzing,'ProblemSolving, DecisioflMahng, Communicating

and lmplementation StrategyFormulation

Social Entrepreneurshipand Enterprise Development Strategizing for DevelopmentInstitulions

Programand ProjectManagement Management ol Change

Social Marketing DevelopmentFinance Service Delivery Managementof People'sOrganizations Applied FlesearchMethodologies LearningMethodologies

Financingand FbsourceAllocation Marketing Operations People ElevelopmentOrganizational Control

(Area,lnEnvironmental Dovâ‚Źlopment dustry,Sec'tor, lnstitutions)

Same as Trainingand Learning Mode

EconomicDwelopment(Fbsource Mobilization, hvostmentGeneration, MarketExploitation) Dewlopment(ldeology, Socio-Folitical Values,Organizational Development) ManaoomcntReeearchReporl

I Areaor Sec'torAnalysis

26 THE ASIAN MANAGER O MARCH 1989

I Strategy Formulation

I

Action Plan and Recommendalions

AcryitirgCtilicalSdlsfu Mf-Miow-.

Empowering RuralCommunities byAssociateDean Felipe B. Alfonso |rlevelopment programs were Vcriticized in the sixties and seventiesfor concentrating on increasingproduction but ignoring issuesof equity. While they yielded dramatic short-term benefits,these appeared of dubious sustainability.

They transferred technologiesand assistanceresourcesto the poor, but made the poor more and more dependent on central bureaucraciesfor the satisfactionof their needs.These developmentprogramshavebeen labeled production-centered.

The growing disenchantmentwith production-centeredstrategieshas gradually led to greater emphasison ngrowthwith equityn and on more people-centeredprocesses.

The underlying assumptionbehind this new thrust can be summarizedbv the ancient saying: nGivepeople fish, and lhey can eat that day. Teach people to fish, and they can eat for the rest of their lives."Advocatesof this new strategl arguethat developmenthasto $s self-susteiningand must necessarily be seen as a capacity-buildin! process.'

Experiencewith the people-centered processesindevelopmentorcr the past decade has made it clear that bureaucraciesmust use new methods of i*errantion which allow client conmunities to build up their capacity to take careofthe4nsehesand to manage their resources.2The new strat"gr utb requiresthat rural communitiesbemobilized to enablethem to participate more meaningfully in their own development.

This paper summarizessomeof the major insightsthat the Rural Development ManagementProgram (RDMP) at the Asian Institute of Management (AIM) haslearned about community mobilization. The conceptslaid out in this paper, particularly on the objectives and the methodsof mobilization, are basedon a number ofcase studies and on actual involvement with development programs where mobilization of the communitvwasa major component.

The fust part providesa su--ary of three casestudiesdealing with the mobilization of three rural communities undertakenby non-government organizations(NGO) in the Pffippines. The secondpart identifies somegeneral patterns emergingfrom the casestudies.

ThreeCaseSUdies lailures far outnumber the $logeSI sesinattemptsatmobilizingrural communities. The following case studiesdocumentrelatively successfrrl attemptsat crcrmmrrnity mobili.ation They also offer someinteresting contrasts in the methodsusedto organizn the target communities.

Kagawasang (Q ometimern l9l 4, thr ee,viilage.sin rJthe town of Kagawasanwere threatenedwith eviction from the land theyhad farmed for five decades.The town mayor had informed them that the land would be usedfor a Boy Scout Jamboreesite and the developmentof a watershed for the town's water system. Feeling that this wasjust a ployby partieswho wantedto acquirethe land they were cultivating, the residents soughllfts 6elp of the Roman Catholic priests in the town. The priests invited community organizers to come and help the residentsof thesethree villages.

After a seriesof meett.gswiththe uganiznrs,a group ofresidents decided to go to the provincid capital to ohain information on the statusof their land"

THEASIANMANAGERo IIARCH l9O9 2T

For matty,it wasthe first time they had compan/s buses. set foot in a governmentoffice. They discoveredthat their land was clasOrganizing Process sified as forest land and that only a presidentialdecreecould changeits fhe organizersin Kagawasanall I had experiencein organizing classification.Shortly thereafter,3(X) residentsconfrontedthe mayor and squattersin the urban areasin Manila demandedthat he stopharassingthem to securetitle to the lands they were with eviction threats.Subsequently,the occupying.The work in Kagawasan residentsengagedin a number of acwas their first attempt to organize rural groups.The original organizsls tivities to get their land reclassifiedand titled. Committeeswere formed which were all collegegraduates,mostly from the Institute of SocialWork and engagedthe regional director of the Bureau ofForestry and other government officials in a seriesof confrontations.Although the peoplefailed to obtain title to their land, they effectively repelled effortsby the mayorandother entities to take the land from them" Many minor and major disputes aroseamongthe people of Kagawasan overthe four yearsthat theyworked on the land issues.One of the major disputessurfacedin the courseofthe survey of landholdings,undertakenas a first step in acquiring land under the jurisdiction of the Bureau of Forestry.

Many of the traditional boundaries, often consistingof bushesand trees, had disappeared.Rather than settling boundary problems in court, the people constituted a nJusticeand Peacencommittee,whosedecisions were respectedin everycase.

While the menfocusedon the land issues,the women were organized for University of the Philippines.In the community activities.They obtained course of the organizingwork in food from the Catholic Relief Services Kagawasan,they trained other orand distributed this amongthe schoolg a n i z e r s .T h e m a j o r i t y o f t h e s e children. They formed lefun committraineeswere also collegegradudtes: tees,underwent paramedictraining 2A-n% were collegedrop-outs.Most -6 asenged for the visits of the rural of them camefrom the neighboring health doctors. They discoveredthat mrrnicipalitiesand provinces. the rural health midwife was selling The organizing methods used in medicine that should havebeen disKagawasanwere basedori the belief pensed free. They successfully that the people could learn organbademandedthat shestopcollectingpaytion not by listening to lecturesbut by ment and that she apologize to the organizing.The basiceim wasto give community. The women refused the thepeopleavoiceandasenseof power offer of higher authoritiesto transfer so that they could interact with the rest the midwife to another area.They of society on an equal basis.The orfeared that another community might ganizers were reluctant to use not be able to preventher from engag- economicissuesas a starting point. ingin the samepractice.

Suchissues,they felt, tendedto be They negotiatedthe tenure of a divisive and:thusdid not servethe obteacher critical to the area.Theyobjective of developinga senseof comtained assistancefrom UMCEF and munity and unity. from the Catholic Bishop.The entire The organizingprocessused in communityput pressureon a bus comKagawasanhad a number of characpany to give just compensationto the teristics.First, the peoplewere mobifamily of a teacherwho had beenkilled lized around "gutnissues,such asland in an accident involving one of the rights. The organizerssoughtto move

28 THEASIANMANAGERo MARCH1e89

the people so they could begin actrng on theseissues.They assistedthem in narynng constraintsagainsteffective action and in developingstrategiesfor reducing and eliminating those constraints. The first stageof the strategy was to obtain information as a group, regarding, for instance,the statusof their land. After eachgroup mobilization, the organizersheld reflection sessionsduring which the people were askedto abstract lessonsor principles from the action. The fundamental processusedwas a cycleofdiagnosis and planning, masseducation, and evaluation-reflection.Each of the mobilizationsservedas a learning processfor the people.Through a seriesof massactions,the cottt-unity wase4pectedto realizeits own power.

Second,thecycleof planni4g-actionreflection moved from simple to more complex tasks.In Kagawasan,the people started off with the simple task of gatheringinformation before the more complex and risky task of confronting the mayor, the regional director of the Bureauof [,ands,aqdbther powerful elites, such as the owner of the buscompanyand,even,the Roman Catholic Bishop of the area.The womenin the area movedfrom simple requestsfor medicineto developrngan entire health systemfor the communiw.

Third, the mobilization provoked a highel degreeofconflict and confrontation. The mobilizationswere aimed at particular targets againstwhom the people were agitated to make demands.The demandswere usually presentedin an aggressivebut legal manner.This resulted in tenseencountersbetweenthe communityrepr e s e n t a t i v e sa n d t h e b u r e a u c r a t againstwhom the demandswere being made.The director of the Bureauof Lands in the province,who had been avoiding a meeting with the community'sdelegation,one day found a group of over 100 persons headedfor his office. Wheu he tried to slip through the back door, he found another goup there waiting.Though angry at this affront to his dignity, he eventually agreed to begin the proceedings for the land reclassifrcation.

Finalln the organizersin Kagawasan did not limit themselvesto the land issue.Theyassistedthe communityin pursuing other issues,such as health

and education,whichthe peoplefelt stronglyabout.The more issuesthere were, the greater the opportunity for massactionsand for the development of leaderswithin the community.

TheKagawasanorganizerservedasa teacher-facilitator.Ratherthan classroom lectureson simulatcdproblems, the organizersusedlive cases,where the stakes were high, and built the l e a r n i n g p r o c e s sa r o u n d t h e s e problems.Thcy mobilizedpeopleto plan,implemcnt,evaluate,andreflect.

They did not imposetheir viewson the people,but neither were they passive spectators.Although they let people find their own direction, they initiated and led the entire prooess.

Results f h e p e o p l e ,d u e t o l e g a l c o n I straints,did not acquiretitle to the land. On the contrary, they were forced to leave their landholdings.

However,when the organizersleft the area at the end of four years,they estimated that 100leadershad been developedwithin the community.No formal structuresof organizationwere developed, but the people organized themselvesinto groups asissuesthat n e e d e da t t e n t i o n a r o s e .T h e o r ganizns did not initiate any economic activities,althoughsubsequently,the people themselvesstarted to organize consumer cooperativesto purchase suppliesin bulk. They alsogot the National Grains Authority to set up a boyros station in the townsite so they could obtain better prices for their noe crops.

Gatonga ith a community of 183families and a total population of 1,(X)0, Gatong was the first target area in the Philippines of the United StatesbasedPrivate Voluntary Organization, Indigenous Affairs Council (IAC). IAC soughtto achievethe following objectivesin Gatong: o 1) an increasein income and the improvement of the quality of life of the entire residents; o 2) the inprovement of the health and education of the residents;and, o 3) a widely-felt senseof iden-

tity and integrity amongthe co--unity residents.

After the IAC was invited into Gatong,it conducteda five-day"consult" to developa comprehensive strategyfor the community.A total of 100nonresidentconsultantswere involved.Representinga wide spectrum of skills, experience,and expertise, theycamefrom variouslocationsof the P h i l i p p i n e sa n d f r o m t e n o t h e r countries.From the community,550 were involved.During this period, the participantswere groupedinto teams accordingto expertiseand interest.

Field data were gatheredthrough interviews,and the data collectedwere later processedin workshopsandplenary sessions.The consulthad five tasls leading to five outputs. One day was spenton eachof the following tasks: o 1) to ascertainthe operating visionof the com-unity, or its hopesand dleamsfor the future; o 2) to discern1f,ssommrrnit/s underlying contradictions, which preventedthe people from achievingtheir aspirations; o 3) to identi$ practical proposals,or the general areasto be taken up in order ts sliminatsthe obstacles createdby the underlying contradictions; o 4) to determinsthe tactical systems,or the concretesteps bywhich the practichl proposalswould be r ealized; o 5) to identi$ actuating progr2ms,or the specific projects to allpw the practical application ofthe tactical systems.

Immediately after the consult, three general assembliesand severalpurok meetings (purolcs are geographic divisionsof the village) were held to discussthe consult'sfindings and recommendationsand to develop strategiesfor implementingthem.

Theseareamsslingswereinitiated and led by the ten full-time IAC staff.

Following the ratification of the resultsof the consult,the community proceededto implementthe projects under the leadership and guidanceof the IAC staff.Peopleinterestedin par-

ticular projectswere organizedinto working groups called guilds. To provide direction and coordination for the efforts of the various guilds, two-commissionswere established,the Social Commissionand the EconomicCommission.The resourcesneededto implement the projects camefrom donationsof fundsandgoodssecuredbythe IAC from businessestablishmentsand foundations.

During the third year of the project, the Gatong communiry with the aid of the IAC, setup a corporatebody called the Gatong Human DevelopmentAssociation.While official membership was limited to village residentswho were sixteenyears old and above,the organization included practically

everybodyin the community.The commissionswere based on functions or projects, while tbe purclcswere residencebased The IAC was in Gatong for a period of four years.After this period, the penagementof the derrelopmentof the community was turned over to the com4rrnity's corporate body. During the firit two yearg the IAC had ten fulltime internationalstaffin the project, mostlyAmericans.By 1919,the number had risen to twenty-two,with the presenceof other visiting foreign staff.

The IAC used Gatong as a pilot and a llaining ground for other projects.By the time of the turnover,the staffhad been reduced to an all-Filipino group

THEASIANMANAGERo MARCH1989 29

often.

Second,form2l6einingandseminars alsoheld an important placein the IAC Organizing Procesg strategy.Projectsthat were activated required specificskills for which those who showedan interestwere trained. fhe organizingprocessin Gatong I w a s c h a r a c t e r i z e d b ya v e r y Craft production and designskills definite sequenceof activities.It were improvedby the introduction of started off with the "consult,nwhich technicalexpertise.In order to insure identified the different projects the viability of projects,someguild neededfor the comntunity'sdevelop- memberswere taught bookkeeping ment.Once thesewere ratified by the and financial management.Even the general assembly,groups were associal projectshad educationalcomsembledto implement the projects. p o n e n t s .P o t e n t i a l l e a d e r sw e r e All planning followed a pattern deterdevelopedthroughintensiveseminars, mined by the IAC. It startedwith the and thosewhich showedpromisewere identificationof the "implementaries," further trained in the IAC methodolor the concretestepsto be takenin imog5rand philosophy. plementingthe proposalsor bans.

A third characteristicof the IAC Once determined,thesestepswere processwas the direct attempt to changepeople'sperceivedinability to do anything about their own development.TheIAC addressed thisproblem in a number of ways.At the start, projectsthat werevisible,suchasroadbuilding andbeautificationcampaignq were undertakenso people would feel that things were moving.This, in fact, motivated people to proceed with other projects. The IAC also integratedtheuss6f dlrrals,slmbols,and com-unity singinginto a lot of community activities. For example,the week when they were moving a huge boulder was called the Week of the Great Rock. Peoplewere encouraged to write s6ngsembodyingtheir ideals, their hopes,and their vision. One original compositionwastheir songentitled "Gatong:Hope.nAnother spoke of their roots and history. Mothel's Day, trade fairs, a sports contest, cleanlinessand beautificationcampaigns,were elaboratelycelebrated.

Gatonghad a monthly raffle where the winner's house received a .facelift, quarterly timeJine or timetable.This which included minor repairs,paintwas followed by the processcalled nlay-outing,n ing and a cleaningof the surroundirgs or the identification and by the community.Different teams assignmentof people who would execute the time-lined operational took turns doing volunteerwork one day a week.During thesedays,they details.Finally,the time-lined plans performed tasks,suchasroad repairg were posted in a conspicuousplace in that the communityasawholeneeded the community under the heading nVictories."This Throughoutthe organizingprocessin servednot onlv as a Gatong, the IAC playeda dominant guide to what was to be done,but, role.

Prior to its phasingout, the ulmore importantly, challengedand timate decision-makingrestedon the pressuredthe communityor groupsto IAC staffor on the leaderstheIAC apactualizewhat it had proclaimed in pointed.The IAC securedresources publicasa victory evenif it wasmerely for the communitybut also exercised a plan. This sequenceof activitiesis oftenreferredto in othermanagement soleresponsibilityin allocatingand accountingfor theseresources.The conliterature asprogramming. flicts that aroseregardingthe alloca-

a3

A.,.characteristicof the

IACprocesswas the directattemptto change people'sperceivedinability to do anything abouttheir own development.

tl

tt

30 THE ASIAN MANAGER T MARCH 1989

tion ofresourceswere worked out by the IAC. Ultimate decision-making was transferred to local leadersonly upon the turnover of the project and the total phase-outof the IAC from Gatong.

Results I n the four yearsthat the IAC wasin lGatong, annualfamily income, basedon three industries,went up 350%. Infant malnutrition decreased fr om 85Voto ?AVoand infant mortality also dropped significantly.The birth rate also decreasedfrom 49 to 30, while elementaryschoolenrollment increasedfrom 10to 116.A total of 19 infrastructure projects were completed.

On the skills side,the IAC developed communityskills functional for the implementation and managementof The formalandoneconomicprojects. the-job training used heightenedthe people'sskills to deal with the technical aspectsofthe projectschosen.The sequentialstepsfollowed in carrying out various activities also developed the skills required for programming and implemeiling economicprojects.

Thesewere further reinforced through the establishmentof structures(commissionsandguilds) supportiveof continuing functions. All these,plus the rituals and symbolsintegrated into their activitieg resultedin a heightened senseof communityidentifrcationsand pride.

After the turn-over to local leaders, mismanagementand fraudulent practices becameevident.For example, when the craft and guild manager failed to give the 2AVocontribution to thecommunityfundsout of the profis of the business,the others made no protest becausethey were afraid of the manager.

San Miguels !tarrio SanMiguel's 337families lJderived their incomefrom rice f21ming.The averagefarm sizewas2.5 hectares.Fishing,poultry, duck-raising, basket-weaving,swine-raising, and tricycle-driving provided other s o u r c e so f i n c o m e . M o s t o f t h e farmersin the areawereformer Huks, membersof a socialist/communist radical movementin the fifties.In I967,they formed themselvesinto the

SanMiguel Farmers'Associationto confront a farm overseer.An irrigation pump, given by the governmsnl, had fallen into the handsofthis overseer,who exactedexorbitantfeesfor its use and loanedmoneyat usurious interest.Nothing carneout of the confrontation. ln I972, aftersufferingfrom typhoons and rampagingfloods, the leadersof the associationsoughtthe assistanceof the Mother RosaMemorial Foundation (MRMF). The MRMF was a foundation establishedby friends and alumnaeof a girls'collegein Manila, run by a religiousgroup.At the time, the MRMF was running a technical schoolin the town where SanMiguel waslocated" The MRMF immediately took severalstepsto assistthecommunity.It made arrangementsso the farmers could haveaccessto credit through a neighboringrural bank.A prominent businessman, who wasa board member of MRMF, negotiated the purchaseof the irrigation plrnp from the overseer.In 1975,the pump was replacedby a larger one,securedfrom the National lrrigation Administration with the assistanceof the MRMF. After the initial assistancegiven to SanMiguel, the MRMF felt that it would be necessaryto put togethera more comprehensivedevelopment program, not only for SanMiguel, but for all the fourteenvillagesin the town.

Hence, it launchedan integrated developmentprogram with six major concerns:com-unity education,rice production and irrigation management, agribusinessdevelopment, health and nutrition, researchand monitoring and Christian formation. ln 1976,another flash flood hit Luzon, leavingbehind submergedrice fields and damagedcrops. Since the farmersof SanMiguel anticipatedthat theywould be unableto paytheir loang they were certain that theywould not be ableto obtain additional loensfrom the ruralbank for the subsequentcropping season.Accordingly, they again soughtthe assistanceof the MRMF, which then approachedsomefriends in the Philippine businesscommunity, the PBSPwhich lent out fundsfor rural development.For four successive years,the SanMiguel Farmers'Association obtained production loans from PBSP. One of the conditions imposedby

PBSPwas the developmentby the MRMF of a comnunity educationprogram for San Miguel. The MRMF hired and fielded community organizersto organizethe educational activitiesbefore, during and after the rice production cycle.Team-buildi"g sessionswereconducted,aswellassessionson varioustopics suchasleadership, financial management,water management,and rice production.A number of non-formal education activities were alsoundertaken. ln1979, the MRMF pulled out its community organizersand left bohind a core of trained leadersand community organizationvolunteerswho took on the task of further development in the area.

while projects were being implemented; o 5) developinggroup linkages, and the building of a council composedof different groups and organizations;and" o 6) developingvolunteerismso that organizationsproduced their own indigenousparaprofessionalworkers,and the role of the ssmmrrnityorgantzmbecamethat of a consultant.

At the start, a surveywasusedto determinethe taskthe communityhad to address.The commrrnityorganizers then proceededto help the community developthe other skills it needed.The methodsused included formal semi-

Organizing Process fhe organizingmethodsusedin I SanMiguel containedfeatures noted in both Kagawasanand Gatong.

MRMF focusedon both long-term and short-termconcerns.The shortterm concernswere undertakenin the context of a framework for the comprehensivedevelopmentof a community. Its methodsincluded non-formal,action-orientedprocesses, aswell as formal training programs.The organizingstrategyof MRMF had two major objectives.The first wasthe organization of viable, indigenous groups with attitudes and skills for plannfug implementing,and evaluating socio-economicactivities.The second was the developm.entof trained leaderswith the capabilities f o r m a n a g e m e n at n d l e a d e r s h i p responsibilityon self-reliantand sustained basis.Although MRMF had beenhelpingSanMiguel snce L9T\it was not until 1976that this focused strategy was evolved and implemented.

MRMF believedthat there were six requirementsfor the developmentof viableand self-sustainedcommunities: o 1) developrnggroup building and basiccommunication skills to developcohesive group identity; o 2) developingorganizalisaal objectivesand structures; o 3) developingleadership; o 4) developingproject development and managementskills

nars covering a variety of subjects, focused mainly on technical and economicmanagementskills.The atlimitedto a tendanceinmost caseswas few people. Apart from the formal training sessions,the communityundertook a number of group activities on its own: Although it actedasb,roker for the community to gain accessto resources,MRMF left it to the organizationto manageand administer these.For example,the production loans secured from PBSP were r e l e a s e dt o t h e a s s o c i a t i o nT. h e Finance Committee releasedthe neededfundsin staggeredamountsto groupleaders,whqin turn, distributed

THE ASIAN MANAGER r MARCH 1989 '31

the moneyto their members.The farmers were also left very much to themselvesto work out their conflicts.

They disciplined erring members,ran sessionsto reflect ontheir experienceg and assessed the performanceof their leaders.They evendevelopedperformancecriteria for their leaders.When a member failed to pay his loan to the association,the association'sboard authorizedthe group to which he belongedto tnftssy61ff,smanagement of his farm.

Although the erring farmer contintred to work on his farm, decisions on when to undertake farming activities, suchas planting and harvesting, were madeby the goup. The association also decided how to dispose of the farmer'sharvest.

33 In orderto provide for the stabilityof the

community, it is necessary to providea frameworkanda tool for managing on-going relationsand

function.r,

To insurecontinuity,MRMF assisted SanMiguel in developinga structure for their associationin 1976.The generalassemblyelectedthe officers who constitutedthe executiveboard.

The chairman headed the executive board, while the rest of the officers headed the different committees.

Committee members,ranging from three to five in number, were appointed by the committeechairman and approved by the board. The damayaw, the smallestunit of the organization,consistedof five to six fsnasls,tilling contiguousfarms.These were establishedto ensuremaximum participation from membersand to in-

culcate in the farmers the importance of collectiveundertakingand mutual assistance.Adamalnn Ieader was electedby the members.

Aside from establishinga structure within SanMiguel, the MRMF also federatedit with other neighboring communitiesthat were receivinghelp fron the MRMF. Volunteer workers from within the communitv were also trained to take over manv of the fuo"tions performed by the MRMF. When the MRMFpulled out its co--unity workers inL979, it left behind a core group of leadersand community organizingvolunteers.

Resuhs f\ veragerice yield per hectareinlacreased from 80-90cavansto L20-I30""u"or6. Repayment of production loansfrom 1976to198t wasL00Vo,exceptfor th e year t979-80, when it wasTSVo.lnthesameperiod, the associationgeneratedsavingsof P113,971.80.These cameout of forced savings,patronagerebatesfrom fertilizer and chemical purchases,and from commissionfees charged to ownerssf 1fugshingmachinesoperati n g w i t h i n t h e a r e a .F r o m t h e s e savings,the associationboughta truck for haulingand a pieceof land where they plannedto put up a warehouse and a rice mill.

Thesegainsinvited the attention of noutsiders.n At times,the com,munity succumbedto e{ernal threats.For example,the associationacceded,becauseof fear, to a Barangay(Village) captain's demandfor one-third of the commissionfee paid to the community fundsby the thresherownersoperating within SanMiguel.

Capacitiesof a Self-ReliantCommunity I n none of the three communities f did the NGO involvedintend to staypermanently.Although they differed in their specificobjectivesand methods,eachof themwasmobilizing its target communityto becomeselfreliant and self-sustaining.Selfrelianceimplies the freedom and the ability of a communityto carry out activities needed for its growth and development.Mobilization can be viewed as,aprocessfor developing theseskills and capacities.It will,

32 THEASIANMANAGERr MARCH1989

therefore, be instructive to review the casesand seeif the required skills for self-reliancewere developed.

The organizing effort in each of the casescited hasdifferent specificobjectives.In Kagawasan,the focuswasto develop the community so it could demand its rights and defend them from encroachmentby outsiders.By usingmassmobilizationsand an interative cycle of planning-action-reflection, the organizershelped the community to developa capacityfor group decision-makingand action.To implement its plans,the communityhad to mobilize the resourcesit needed.The interactionwith externalbodies,such asthe goverttmenf provided ampleopportunities to developnegotiating skills. A felt senseof unity, reinforced by the ability of the members to managetheir internal relationsand conflicts, enhancedthe ability of the communiryto act as a body.

The organizing objectivesin Gatong were quite different. Priority was placed on improving the economic well-being of the community and on improving the health and educationof its members.In order to attain these objectives,the IAC relied heavily on project management.The organizers initiated numerouseconomicprojectq both to generateincomeandto givethe membersof the communitythe opportunity to usetheseprogrammingconcepts in actual situations.To insure somecontinuityin the menagementof theseprojects,they deralopeda formal organizationalstructure for the community.

The SanMiguel caseshowedfeatures of the other two cases.While the organizershelped the community to improve its economicwell-being,they also paid attention to enablingits membersto managetheir internal relations.Formal fseiningsessionand non the job" applicationswere usedto impart technical and economicmanagement skills for income-generatingactivities. In addition, team building and reflection sdssionswere employedto enablethe membersto makegroup decisions,manageconflict, and discipline themsehesand their leaders.

A reviewof the three casesshowsthat the organizersassistedeach com6unity to developat leastsomeof the skillsneededfor the primary objectives of the mobilization efforts. ffowever, theresultstendtoshowthateachsetof

skills, though neoessary,wasnot sufficient to enablea communityto become self-reliant.It would be able to manage its internal affairs, its economicactivities,and its relationswith their external environment.Each of thesesets of skills deservesfuller discussion.

Orqanization Ma-nagement Skills fhis group of skills refersto the I capacitiesrequired to manage the internal organizational relationshipsamongthe individual members of the community.The casesshowthat a community needsto do two things.

The first is to develop unity and cohesionamongthe members.This follows from the very nature of rural groups. Controlling very little in the way of economic resources,their major advantageis their numbers.To theyneed capitelizeon this advantage, to be able to act together as a goup.

To develop and enhancethis unity, theyneed: o the ability to identiff and establish collective needs,objectives,and priorities; o the ability to arrive at goup decisions; o the ability to plan and develop structuresto achievegoals with reasonablemeans; o the ability to resolveinternal conflicts.

The developmentof theseskills was apparentin the casesof Kagawasan and SanMiguel, but we seevery little evidenceof themin the caseof Gatong.

The needfor theseskills is borne out byother eryeriences.UNICEFhas for a long time promoted and supported popular participation in the areasof education,health,nutrition, and water supply and sanitation in underprivileged rural and urban settings.

From theseelperiences,UNICEF has derivedguidelinesfor its field workers.

Two of theseguidelinesemphasizethe developmentof the skills we havediscussed: o To help the poor go through the processof identi$ing their own priority conoerns,organizefor action around those conoerns,and develop solutions to pre-identified problems.

o To train membersof existing groups- formal and non-formal- in the skillsof simple problem identification, data collection, and analysisleading to their own project development,basedon local resoursesor a combination of their o-wnand outside assistance.'

Similarly, Goldsmith identifies participation in decision-makingasone of the differentiating factors of the more prosperousand successfulvillagesig Korea'sSaemaulUndongMovement.o The other major task for managing the internal relationshipsamongthe community membersis to sustainand maintain the unity and cohesionthat hasbeen established.Self-relianceimplies a stability of relationshipsover a long period. External changeagents who organize and mobilize communities will nbed to leave at some point. The Gatongcasedemonstrates that unlessthosewho are left behind are able to sustainthe relationships that havebeendevelopedwith the assistanceof the organizers,the communitywill not be ableto grow anyfurther. In fact, it will quickly retrogress, and the initial benefits obtained will rapidly dissipate.Insuringthe ability to carry on requres: o the ability to provide incentives for individual involvement and to monitor, control, and evaluateindividual and group performance; o the ability to developleaders who are responsiveto community needs; o the ability to hold leadersaccountable and to enforce discipline amongmembers; o the ability to develop and modi$ structuresto institutionalize relationshipsamong the members; o the capacityfor problem-solvmg.

The rationale for theseskills is quite self-evident.No organizationcan continue to existwithout the support of its members.Hence,it will haveto sustain the continuinginvolvementof its members by ensuring through its leaders that the organizationis relevantto the satisfactionof members'needs.Fur-

thermore, when deviationsoccur, mechanismsfor dealingwith erring membersand leadersshouldbe in place.Korten'sreviewof member-controlled cooperativesshowedthat the "internal strucsuccessfuloneshad tures (that) allowed membersto hold leadersaccountableand enfurced memberdiscipline."glrader control is a key concernbecauserural communities, no matter how poor, are They are generallynot homogeneous. characterizedby somekind of socioeconomic differentiation. This has usuallyresultedin structureswhere a few elitestend to dominate otherswho

are --f dependenton them

isalso n"-d"""r"p-""i oi itructures

essential.In order to provide for the stability of the com-u"ity, it is necessaryto provide a framework and a tool for managingon-going relations and function3.Sucha structurewasmissing in Kagawasan,sincethe organizersdid not mobilbe for a continuingfunction.

It wasa critical elementin Gatong and San Miguel becauseeconomicactivities needto be sustainedover a long period. While structuresprovide some degree of stability, care must be exercised that they do not becomepermanent.As the community goesinto

new venturesand activities,required changesin structures and proCesses need to be adopted.

Problen-solving skills are also important. ortant. Sustainedgrowthwill crowth will depend deoend on the communit/s abilityto copcwith new situations. One of the insights insishts emerging out of the developmen[ experiencesor penences of tne the pastlewdeca<les fewdecadesis the inadequacyof the blueprint approach as a responseto the needsof rural development.Suchan approach is inflexible and is not able to respondto unanticipateddevelopmentsand problems.Becausedevelopmentis a dynamic process,one must be able to

33In orderto

managethese relationships with their respective environ-

me ItS,COmmunities needto developa sense of powerto demandand protecttheir right to havea sayin things that affectthem.

Ir -I -

tt

-

oeal wrth unexpectedoutcomesand difficulties. Social systens need to adapt to changingconditionsand requirements.As Dunn points out, "social systemevolutionis the-;esultofa problem-sohingprocess...n'u

EgonomicResources ManagementSkills fhe acquisition and management I of economicresourcesare important requirements for selfreliance. Communitiesneed goods and servicesto feed their members

and to sustaina rising standardof living. Bpt the emphasison the economrc economicaspectsof development lopment shouldnot lead to ignoringother sets of skills. skills.We saw this t[is in t-he lhe caseof Gatong where the thrust toward the attainment of economicbenefitswas sodominantthat not enoughattention was paid to the capacityfor selfmanagementand for dselingwith external pressures.The samewas true with the SanMiguel case,though to a lesserextent.On the other hand, in Kagawasanthere was a total absence of any organized effort to develop economic resourcesmanagement skills. Although the organizersrealized that thesewere needed,they preferred not to get involvewith economicissues,partly becausethey felt that economicissueshada divisive effect,and partlybecausetheydid not possessthe necessaryskillsto deal with them.

The experiencesof many development institutions and researchand consulting organizationshaveamply -oi demonstrated the necessity developing economic r"rour"" managementskills. Notable among thesegroupsis DevelopmentAlternal tives,Inc., which hasbeeninvolvedin variousrural developmentprograrns fundedby USAID. Sirmmarizinitneir experiencegHonadle.ayrrll o nln fact it can be hlpothesized that when dealing with nondominantgroups,an essential elementof successfulcapacitybuilding is likely to be tho acquisitionofcontrol over a central set of natural resources.Thus capacity-buildingefforts, basedonly on providing social servicesor improving managementpractices and procedures,are unlikely to be sustainable.

Successcommonly requiros a link to incomeproducing activity and sufncient control over the disposition of that income."

Economic resourcesmanagement skills, then, should enablethl community to deal with two important issues:the acquisitionx1d manngement of resourceqandthe distribution of the benefits amongthe membersof the community.

Even the poorest among communitiestend to havesomeform of in-

digenousresources.A sustainedpattern of development will require a capacityto renew and multiply these resourcesto meet both its current needsand its needsfor growth. To ftrlfill this function, the relevantskills are: . the abilityto tap outside resouroesor support when local resourcesare insufficient to achievetargets and objectr\tE-r;

o the abilityto generate economicbeneFrtsfor the community; o the abilityto sustainactivities over the long term; o the ability to allocate resourcesaccordirg to setpriorities; o the ability to maintain records and to keep track of resources.

As seenfrom the San Miguel and Gatong cases,it is not enoughto acqurre resources,managethem, and generate benefits. The long-term viability of the commrrnityrequiresthat it also deal with the issueof the distribution of thesebenefits.One of the constant disappointments with developmentprogramsis their inability to channelbenefitsto the poorer sector of society.The differentiation that existsevenin rural societiesoften resultsin structuresthat allow elites to capturethe benefitsfrom development programs.What is neededis not equal but, rather, equitable distribution of thesebenefits.This can further reinforce the cohesionbuilt within the community and the continuing commiment of the members.The relevant skills to futfill this function are: o the ability to distribute economicbenefitsin a mrnner that is fair and equitable to all; o the ability to ensurea decent standard of living for the members of the communitv.

PoliticalSkills fhese skills refer to the capacityof I an organization to deal with external institutions and persons.A rural community cannot remain viable for long unlessit is able to deal effectively with its environment. Economically, the rural community usually doesnot haveall the resourcesit needs to satisfythe needsof its members.

Similarly,it needsexternalmarketsfor the excessgoods and servicesthat it produces.Politically,manypolicies and actions of other institutions often threatenthe freedom and the rights of c o m m u n i t i e st o m a k e d e c i s i o n s regardingtheir own development,as shown especially in the case of Kagawasan.The structure of societyis such that the imbalance in resource basesof different groups hasresulted in the emergenceof local elites who have exploited the poor. Strong patterns of socialdifferentiation havealso resulted in structures that reinforce the dominance of a few powerful elites.Consequently,the poor are frequently inhibited fron making decisions regarding their own development.

In order to managethese relationships with their respective environmentg communitiesneed to dewlop a senseof power to demandand protect theirrigbt tohaveasayinthingsthataffect then. Due to lack of resources, they are often unable to influence eventsas individuals. What they need to do is to capitalize on their numbers by actingtogetherasan organizedunit.

The establishmentof an organization, however,does not in itself lead to the power to influence the course of events.Qgmmnniligsneedto acquire skills to build coalitions with other groupswith similar interestsand to effectivelynegotiatewith others.The set of skills neededto managethe environment includes: o the ability to negotiatewith external groups; o the abilityto establishexternal souroesofpower and support and to usethesefor the benefit of the communitg o the abilityto develop and build protective linkageswith groups that sharesimilar interestsand objectives; o the ability to resolveconflicts with other groups,individuals or institutions; o the ability to protect community resourcesand cains from efiernal threats.

TechnicalSkllls fechnical skills refer to those I capacitiesneededin order to carry out certain activities,such as

farming,stone-cutting,and the like.

One classof technical skills relatesto economicand other livelihood p r o g r a m s .T h e s e s k i l l s a r e n o t developedin a vacuum,but within the c o n t e x t o f c e r t a i n a c t i v i t i e s .I n Kagawasan,the communityneeded reliable information on the applicable forestry laws and proceduresin order addressthe to developtheirstrateg5lto land issue.Specificweavingand stonecutting skills were essential ingredients for the successof the economic livelihood projects in Gatong. The repaymentrates in San Miguel would havebeenvery different if the farmers had not used the appropriate farming technologiesto cultivate their rice fields.

There is another area of technical knowledgeimplied in the capacitybuilding process.This area focuses more on the nature of the capacitybuilding processitself. For example, knowledge of the nature, dynamics, and structure of groups is critisal to enablethe communityto adjust its internal structure and relationsto its evolving needs.Some knowledge about the dynamic.sof changeis also goingto be veryuseful.This knowledge may not initially reside in the community, but in order to develop selfreliance,a communityneedsto acquire the skill to searchfor suchknowledge.

Having acquired the knowledge,it mustlearn to useit. Knowledgein itself does not lead to action, but action is whatleadsto growth andderclopnent.

Althougb we havedealt with eachset of skills separately,in practicethere is a lot of overlap amongthem.Not only are they very closely interrelated, but they also mutually reinforce one another. Organizational management skills affect the communigrs ability to manageits economicresources,and the way economic activities are managed"in turn, can either reinforoe or destroythesenseof cohpsionamong the members.Similarly, political skills can enhancethe ability to gain xscess to resources,while the extent of a community'sresourceshastrenendous impact on its ability to influence outsiderband outsideentities.

Processfor mobilization StartingPoint ur discussionhas shownthat in ot'der to be self-reliant,a com-

munity has to develop four sets of skills.Where doesone start? Is there a natural starting point amongthe different capacitieswe have described from which one can logically progress to develop the other elementsof selfreliance?

Theoretically, one can arguethat a logical startrng point is to developthe capacity to manageinternal relations amongthe different membersof the community.Unlessthey are ableto act as a group, there is very little that they can do. In practice, howerer,the cases we examinedindicate different beginning points. The initial focus in Kagawasanwas political. The first mobilizationswereaimedat geting the

programsstarted off with addressing economicissues.In Gatong,efforts were concentratedon developing lirelihood projects to generateresources for the sustenanceof the community. The initial concern for San Miguel was the need for credit. What was common in the starting points of the three cases,however,wasthat they were allbased on the nfeltneeds"of the people.This appearsto be a mostlogical starting point becauseany attempt at organizing the rural poor must respond to their articulated concerns and problems. Their participation involves investment of time and other resouroesand they must seesuchin-

T}IEASIANMANAGERo MARCH1989 35

I

vestmentasbeneficial.

Most mobilizationsof rural communitiesinvohe the intervention of external changeagents.From the start, it is therefore crucial to identi$ the rea[ felt needsof the commuurtyand to insure that there is a fit betweenthem and the capacitiesand mandateof the changeagent.

The casesshowthat felt needscanbe establishedeither through informal or formal means.In Kagawasan,the primarymethod usedwasinformal. As the organizersbeganto live in the community, they gathered information regarding prevailing power and lepdershipstructuresand the people's perception of their own problems.In

and the felt needsof the community, there existsa real dangerfor the intervening agencynto forcen its way through to the community.As a result therewill be a reduction,or evena total absence,of communityparticipation.

Another possibleresult of such a lack ofcongruenceis that the changeagent could unconsciouslylead the community to addressissueswith which the changeagentis more comfortable,but which may not be of great concern to the membersof the community.

In summary,there are three screens that finally determinethe startingpoint of mobilization: the community'sfelt needs,the mandateof the change agent,and the latter's capacityand skills.For a successfulbeginning,it is necessaryto achievea fit amongthese three.

MobilizationMethods fhe methodsusedto developcomI munity capacitiesare described in the casesand are summarizedin Table 1. The two principal methods usedwere the planning-action-reflection mode,or simply,action-reflection and formal training. The former was the principal method used in Kagawasan,and the latter in Gatong.

In San Miguel the organizersused a combination of both.

Action-Reflection

The action-reflectionmethodusedin Kaga.wasan wasvery conflict-oriented.

The people were mobilized againsta cornmonenemy,the regional director of the Bureauof Forestry.The underlying assrmption is that people are more Progression from the Starting easily mobilized to unite themselves Point and to developa senseof power in dealing with their environmentwhen they havea common enemy.Hence, f\ fter mobilizationhasgottenoff Fto a successful rrtart,whatfurther this method could be a powerful tool directionsshouldit take?An examinafor developing political skills. Howtion of the field data is againinstrucever,there can be very seriousconsetive. In both SanMiguel and Gatong quencesin the useof this method The the initial mobilization was around conflict-confrontation modepossesses economicissues.As the com-unities the characteristicsof what managemanagedtheir income-generating meht scientistscall a nzero-sumgame.tr projects,certainpowerful individuals Gametheory tells us that when azor> becameinterestedin taking advantage sum gameis played the total valueof of the benefitsgeneratedat the exthe benefitsis reduced.Furthermore, penseof the communitymembers. succeeding gamestendto bezerosun.

When this becameapparent,.itwas Finally, zero-sumgameslead to intime to addressthe enhancementof flexibility in deftiing the problemsthat the community'spolitical skills and are the subjectof the game.Develop,, capacityto addressthe potential 6sa[ psens insuringthatthegrowthin Gatong the organizersstartedoffwith threat. the total amountofbenefits is equitably In contrast,Kagawasaninitially cona formal and elaboratefive-dayncondistributed among the different segcentratedon developingpolitical skills. sult." In SanMiguel a formal, but less ments of society.It requires constructured, approach for assessing The community's eventual felt need tinuous collaborativeefforts among needswasused.The organizersconand interest in developihgsomeindifferent segmentsso that problems ducted survey-feedbackresearchby come-generatingprojectswasthe trigare creativelysolved. carryrngoutinterviewsamonga size- g e r f o r . a g r e a t e r e m p h a s i so n There is another form of the actionable sampleof communitymembers. economrcresourcesmanagement reflection method- the negotiation In ad{ition to determiningthe felt skills. The evidencefrom the three mode. This hasbeen used in the comneedsof the community,itisimportant casesseemsto showthat it wiu be difmunal program of the National hrtgaficult to pre-plan and pre-determine to ascertainwhether there is a fit betion Administration of the Philippine tweenthesefelt needsand the mandate the exacttime and direction of the regovernment.Instead of focusingon a and the capacitiesofthe changeagent. quired shift in focus from one set of common enemyor oppressor,this capacitiesto another.What the change processseeksto create a climate of Somechangeagents,like the private voluntary organizationsin our cases, agentneedsto be awareofis that there cooperationsothat the partiesareable havevery broad mandatesso that they ismorethanonesetof skillsneededfor to combinetheir expertiseand resourcan deal with almost any community self-relianceand that a shift of emcesand channelthem to the solution of need.Others,like governmentagen- phasisfrom onesetof skillsto another communityproblems.The result is an most likely needsto be accompanied enhancedcapacityon the part not only cies,tend to havemuchnarrowermanby a changein the methodsusedfor dates.Shouldtherebe a lack offit beof the communitybutalsoof the other tweenthemandateof thechangeagent capacity-building. agenciesor institutions that the com-

3This implies rhat the organizersof

the change

agents shouldbe enablers ratherthan

implemell-

tors.

36 THEASIANMANAGERo MARCH1989

.l

munity is negotiatingwith. The collaborativeclimate allowsboth to learn from eachother.Inthe communalprogram of NIA, major decisionson the designof the system,for example,were the outcomeof negotiationsbetween the irrigaton group and NIA technical staff. Each party learned from the other. The synergyresultedin more functional designswhich each party working on its own could not haveaccomplished.This climate, however, presupposesa certain level of maturity of the parties involved.It assumesa focus on a oommonset of objectives.

In choosingbetweenthe conflictconfrontationmethodand the negotiation mode,one needsto be reminded by the principal objective of mobilization. We can organizepeople to tackle specificissuesand problems,suchas land tenureor acoessto credit.We do this not only to achievespecificresults on theseissues,but also a part of a seriesof building blocks that will enhancecommunitycapacityto carry out functionsthat are essentialto the communit/s survivaland growth. The need for a continuing relationshipand interaction betweenthe community and its environmentposesserious questionsabout the useof the conflictconfrontationmode.This approach can do potentially long-term damage to the relationshipbetweenthe community and other elementsin the environment.However,experiencehas

shownthat situationsdo exist where certain institutionsand agenciescannotbe nawakenedn exceptthrough confrontation. Where the useof the confrontation methodis deemedessentiaf the organizersand the community mustkeepin mind is protentialrisks so that thesecanbe mnnxgsd.

Formal Training I considerableanount of formal Fltraining wasusedin the caseswe discussed.One doesnot need to be married to a particularmethodto the exclusionof the others.What is critical is to ensurethat the methodsusedare functional for the developmentof co--unity capacities.The data from the three casesdoesseemto indicate that communitycapacitiesare enhancedmore throughactionand active involvementthan through formal training, whoseprimary object is to passon knowledge.Therefore,the emphasison mobilizationshouldbe directed toward havingthe people themselves undertaketherequiredactivities.

This implies that the organizersor the changeagentsshouldbe enablers rather than implementors.The function of the organizeris to developcommunity capacity.He managesthe learning processrather than the outcomeof the project.He leavesthe latter taskto the community.

Summary

w;f:#"T:n'li*H""";:x:

have tried to mobilize rural communities. Our discussionhas focused on the major objective of mobilization- the building of community capacitytoaddressits own needs.We have identified four sets of critical skills that a community must possess before it can become self-reliant. We also discussedsomeof the processes and methods used to developthese skills.However,we havetried to relate our discussionof the processesand methodsto the developmentof the neededcommunitycapacities.There is at times a greattemptation for one to be dogmaticabout his methods.Ultimately, thesemethodswill haveto be judgedon thebasisof the major objective of mobilization:Do they result in developingskills that empowerrural communitiesto addresstheir own needs?

AssocioteDean FelipeB. Alfonso

GeorgeHonadle,"structuralAspectsof CapacityBuilding or Wbo Getsthe Fish?",Specialsupplementon integratedrural development,RuralDevelopment ParticipationReview,Vol.3, No.3, (Spring 1982).

'To Developmenled. David C. PeterL. Bergerand Richard J. Neihaus, EmpowerPeoplen,rnPeopleCentered Korten and Rudi Klauss(WestHartford, Conn.:KumarianPress,1984).

Name hasbeen disguised.This summaryis basedon a note written by Richard R. Fernandez,nKagawasann (Manila: Asian Institute of Management,1.979).

4. Nams [3s beendisguised.This summaryis basedon a note written by BenjaminBagadion,Jr. and Gwendolp (Manila: Asian Institute of Management,1983).

Ngolaban,nGatongn 5. This summaryis basedon a note written by Benjanin Bagadion,Jr., nsanMiguel" (Manila: Asian Institute of Management,1983.)

6. A cavanof rice is equal to 56 kilograms.

7. UMCEF, Community Participation and Family Life Section,Division of ProgrammeDevelopment and Planning&&&&&&&&&&&&&&& Popular Participationin Basic Senices,LessonsLeamed ThroughUNICEF's Expeience, p. 125.

8. Arthur Goldsmith,nPopularParticipationin SouthKorea'sCommunityMovement,ninRural DevelopmentPorticipation Review,Vol. 3, No. 3 (Springl982). David C. Korten, "CommunityOrganizationand Rural Development;I l-66ning ProcessApproachn,n PublicAdministrationReview,Vol. 40,No. 5 (September/October1980),p. zltll.

9. Edgar S. Dunn, Jr., "The Nature of SocialLearning",n PeopleCenteredDevelopment,ed. David C. Korten and Rudi Klauss(WestHartford, Conn.:KumarianPress,1984),p.I72.

10. GeorgeHonadle,nstructuralAspectsof CapacityBuilding or Who Getsthe Fishn,op. cit.

THE ASIAN MANAGER o MARGH 1989 37

Theragsto richesmiracle must staysimple...

"Kalakalan 20"to BringProsperityto RuralAreas

by Benjamin C. Bananta The 15,000factoriesin prato. Italv pay higherwagesthan thosepaid to most Americitn workers. And according to a report on ltaly's economic miracleinTime, the per capita incomeis S0Vohigherthan the national average.Most surprisingof all, the majority of the town's workforce is employedin factorieswith ten or fewer employees Prato is locatedin Tuscany.one of four ltalian regions where iconomia sommersa(undergroundeconomy)or asPeruvianeconomistHermandode Soto calls it, the informal economv. hasblossomed.De Soto is a champion of the informal economy,and asierts that removing the burden of government regulationfrom thesefirms is an

lmportant strategyfor makingpoor countriesrich.

So pervasivehashis argumentbeen that Peru'ssocialistpresident,Alan Garcia,hasforegonenationalization of the country'sprivatebanks,and his opponentin mming electionsis running on a platform basedon De Soto,s ideasaccordingto a separatereport in lortunemagazinetitled,'How to Make Poor CountriesRich."

The ragsto richesmiraclein Italv materialized asa resultof governmeni recognizingthe fact that small businessesfunctionedbetter without governmentregulaticn than with governmentsupportand traditional incentives. ln recentyears.economists h a v e e s t i m a t e d t - h a tt h e I t a l i a n economiasommersahas contributed up to 35Voofthe nation'sgrossnationaJproduct (GNP) with largeprivate lrrmsand governmentcorporations

38 THE ASIAN MANAGERo MARCH 1989

supplyingthe balancâ&#x201A;Ź.

According to Gabriele Martignago, deputy trade commissionerfor the Italian governmentin Ivlanila,the Italian law of twenty has also helped maintain cultural roots and values$tems in the regionsof the couniry where small firms haveclustered.It has also transformed them from primarily agricultural regionsto industrializedzones.

Y e t t h e e n t r e p r e n e u r si n t h e s e regionsare often more organizers than traditional businessmen.

"Production is done on the basisof one entrepreneurorganizingthe various phasesof production and the marketingof the final product,nMartlgnagosa)6.

Time'sreport cited one such entrepreneurwho presidesover a seven-manfactorywithannualsalesof US$2.2million as far back as 1981.

Palo Baldini said,"Very little of the work is done here in my plant. It goes out to the spinnerandback,out to the weaverand back, out to the dyer and back,fi nally,for packingandshipping.

We commissionpracticallyall the work to other small firms, and so we haveno strikes,no labor problems.'

Martignago saysthat it has been thesesmall companieswhich'have shown the greatestdynamismand capacity to make technical and managerialinnovationsand to increaseindustrial employment.'

As a result of the sucessesof the informal @onomy,he sa1n,the nation's bankshavebecome"verymuch committed to the type of businessprevailing in the districl in which (they are) operating.

"Italy's banking system,'he continues, "tops all other countriesin termsof operations in leasingand factoring, proving its commitmentto small-scalecompanies."

Many of thesefirms were originally set up with financial assistanceftom former employers to would-be entrepreneursasoompaniesdivested their manufacturingcapacityto the countr'rside. In fact, Martignago says,

"the smallenterpriseswereborn from subcontractingand decentralization, not just subphases of assemblywork production,but, more important, evenof someentrepreneurialfunctions such as the developmentof new components,new products,and new applications.'

In Japan,Taiwan, and Korea, the developmentof suchsub-contracting entitieshasbeena major landmarkin their economicdevelopment.

Philippine governmentofficials, businessmenand academicshave re@ntlyjoined the growing number of internationalsupportersof De Soto's proposal to unleashthe informal e c o n o m y .P r e s i d e n tC o r a z o n C .

Aquino hascertified a House of Representativesbill calledIft lal<nlan20 as an urgent economic measureto C-ongress, and, Speakerof the House of RepresentativesRamon V. Mitra hascalledthe proposedlegislation the centerpieceof the administration's economic policy.

The bill, formally known as House Bill 17848,is intendedto stimulateindustrialization and economic developmentin rural provines where 70% of the nation'sdiversepopula-

tion resides.Increasedjob opportunities and competition for workers is expectedto boost the wagesofthe workers.

The countryside e n t r e p r e n e u r ' s m a r g i n sw i l l b e preservedas a result of relief from taxesand other costsassociatedwith governmentregulation. l:rger mrporations will enjoy lower overheadcostsas a result of the increasein sub-contracting,and the higher quality, innovative products are expectedto boost â&#x201A;Źxports,thus increasingforeignexchangeinflom and the corporate tax base.

Whether the Philippines,Peruand other developingcountriesc:ln emulate the remarkable developmentof Italy, Europe's most recently industrializedoountry (NIC), aswell as that of Asian NIC-sremain to be seen.

However, the concept of freeing the informal economyto fuel development is an idea that at leastpromises something for everyoneand evena bonus:preservationof local culture and thewayof life, somethingwhichis very important in theseislandsof infinite divenity.

EthicsCases:FatherDonelan's Response CaseletOne Solutlon: My solution hasto dealwith severalissues:is an advertiser obliged to tell all about his wares?Does the buyer have a chanceto inspect the advertisedarticles before purchase?Is the information suppressedsuchthat the uninformed purchasermay be harmedwhen he comes to usethe advertisedarticle? Is it substantiallydefective?

The sameprinciple is to be applied to suchadvertising asmoralistsapply to the obligation to disclosedefectsin the direct vending of merchandise.The vendor is obliged to reveal all substantialdefectsin an article.

Substantialdefectsare those that render the article unsuitablefor the purposesforwhich it is purchased.However,the seller is not obliged to call attention to obvious defectsof minor importance;suchfactsmay legitimately be suppressed.

Hence s.uppressionof information that is equivalent to concealingsubstantialdefectsin an article is deceptive and unjust, particularly if the article is sold on the basisof its advertisedqualitieswithout any opportunity for.inspectionbefore purchase.

CaseletTwo Solutlon: The basiccondition required of the companyseeking credit is evidenceof ability to pay for the goodsthat are sold on trust when the bill comesdue. Altering the record of current indebtedness,asdescribedin the case, deliberatelymisleadsthe Magkanocompanywith intent to deceive.JoseCruz actsunjustly when he seeksto get an extensionof credit under falsepretenses.He is guilty of deception,and of injusticewith the obligation to makerestitution, if he receivesthe goodsand fails to pay for them. Cruz's bookkeeper is morally forbidden to cooperatein this injustice.

THE ASIAN MANAGERO MARCH 1989 39

politicians, and managerc...

Tbchnocrats,

Economic ltrhyWeNeedManagensfor Development WProf.RontyL Noi fhe formulation of our economic I directions and the management of the Philippine economy hasbeen the domain of economistsand terhnocrats,and more recently, advisers from international funding institutions. The Filipinos haveaskedthemselveswhy, despite the profusion of Western-educatedeconomistsand technocrats,the economyhad stagnated and only recently improved, although rather marginallyif we consider the depthsof economicdepression from which it is recovering and the superior performanceof neighboring countries such as Thailand and Singapore.

One of the underlying reasonsfor the mediocre performanceof our eronomy is that we lack real economic managersto formulate and implement a viableeconomicstrategr.Our economicdirections havebeen heavedand pulled by economists, technocrats,politicians and vested businessinterests.We havenot really managedour economyin a logical,orderly manner.

Let me distinguishthe idea of managingthe economyfrom the idea of centrally planning an economy, which is done in somesocialist countries. The role of a manageris to plan, organize,staff, direct and coordinate and control, although not necessarilyin a centralizedfashion.

Although the idea of a managed economymay not sit well with advocatesof freeenterpriseandmaystir up memoriesof crony capitalisrq I neverthelesssubscribeto the contention of Sixto K. Roxas that all modern economiesaremanagedor directed in one wayor-Enother.It is all a matter of who should manageit and forwhose benefiL Economists are basically not qualified to run our eoonomy.The discipline of economicsconcernsitself

with the interaction in terms of cause and effect of eoonomicvariables,such as moneysupply and inflation, GNP growth and the BoP deficit, and the like, which leadsto the formulation of hypothesesand theoriesand their verification. Consequentlyit has a heavy research, rather than m a n a g e r i a l ,o r i e n t a t i o n . W h e n

40 THEASIAN MANAGERo MARCH1989

oo

stretcheda bit further to its limits of competence,it can be used to make economic predictions and formulate economicpolicies. The economistcan be likened to a technicianwho knovn everything about how a car runs but doesnot know how to drive it.

Technocratswill generallyhavea difficult time running our economy.

They are steepedin disciplinesthat stressefficiencyobjectives,maximizing cost benefit ratios, the logicaland smooth functioning of systemsand structures,and the like. Technocrats generallyassumethat once the maximization/optimization parameters are defined, and the necessarystructures and linkagesset in place,then objectiveswill be met and everyone shall be happy.

Unfortunately their conceptsand systemscrumble under the pressures of socialand political realities.This is so becausetechnocratshaveno constituenciesand havelittle appreciation of (and sometimesrefuseto appreciate)the desiresand objectivesof the sectorstheir activitiesaffectsince their accountabilityis to their own superior. Unfortunatelyfor the technocrat, the achievementof economic objectives requires the proper responseor cooperationofthe secton affected.Failure usuallyaccompanies economicdirectionsthat lack congruencewith the objectivesof these constituents.The technocratis like a good driver who thinks he knonn better than his passengerswhere they shouldbe going.

Politicianson the other handhavea keen senseofthe desiresand needsof their constituents.However, they generallyhavea weak understanding of the interaction of economicvariables,and the economicbuttons to push to get the desired economic results.Neither do they have the ability to makeadministrativesptems function smoothly the way a technocrat can. Politicians are poor drivers and mechanicsbut know where their passengerswant to go.

A n e c o n o m i cm a n a g e r to consider:

An economicmanager must formulate/eflect:

An economicmanager hasto be:

An Economist Policy' Tools&Techniques

A Technocrat Action

Objectives Constituents

A Politician Consensus/ Compromise

Fipre 1

a

Of coursewe can havebureaucrats who havenone of the redeemingfeatures of an economist,technocrator politician.

The best manager for economic developmentshouldhavethe essential abilities of an economist,a technocratand a politician.

We can define the qualities of an economicmanagerin the diagramin figure 1.

The recentdifferencesbetweenthe Senateand the Executiveon the issue of who should formulate our economic directions is basicallya clashof disciplinesand outloolg with t h e e c o n o m i s t si n t h e N a t i o n a l Economic DevelopmentAuthority (NEDA) wanting to keep control of this roleand the technocratsintheExecutive wanting to keep politicians out of it andwith the politiciansin the legislaturewantingto havea substantial sayin it. The resolutionof these conflicts lie in realizingthat effective e c o n o m i cm a n a g e m e n rt e q u i r e s talentsandqualitieswhichare neither possessedexclusivelyby NEDA, nor by technocrats,nor by politicians,but possiblyby all three working very closelytogether.

As I statedearlier, the function of a manageris to plan,organize,staff, direct, and control. How doesthis apply to our country's economic management?

Planning involvesformulating a set of unified goals, objectives and strategies.The country is awashwith plans and strategiesfrom all sectors, both local and foreign. What is required is the generationofa consen-

susfrom the planners,pollcy makers, administratorsand implementors, andthe sectorsaffectedsuchthatwasteful policy debatesand discoordinatedimplementationare avoided.

Once a consensus on the national plans and strategiesis effected,we needto defineor redefinethe roles, functionsand responsibilitiesof the key se,ctors,governmentand private, administrativeand entrepreneurial, producer and consumer,urban and rural, and seewhether the social, political andadministrativestructures andcoordinatinglinkagesto facilitate the attainment of our nationalobjectivesand the implementationof our strategiesare set in place.W.ehaveto ensurethat all thesesectorscanwork togetherharmoniously.We also have to ensurethat responsible,talented and committed people are chosento fill thesevarious roles and functions.

This is organization.

Once we haveset a.morelogical order to political, sectoraland administrativeinterrelationships,rye haveto mobilize,coordinateand motivate to seethat the responsible sectorsrespondto what is requiredor expectedofthem to attain our national goalsand implementationof our e c o n o m i cs t r a t e g i e s T . his is the managerialfunction of directing,and it requiresgood leadenhip.

Hopefully, we can get our economy moving by doing all these.In the Process,however,we haveto ensure that we are achievingwhat we sought to achieveand correct deviationsfrom our goalsand objectivesand ensure that the nationasa whole,particularly

II

the less priveleged sectors,benefit from economic development.This needsaccurate and timely feedback mechanisms andthe ability to respond quickly to problemsastheyarise.This is the managementfunction of control.

Ideally,the Presidentof the Philippines should take the lead role in This role caneconomicmanagement. not be relegatedto a basicallystaff group of economistsand researchers like the NEDA. The conflicts and ill feelings that have arisen between the NEDA, the line agencies,and the local governments is the classic managementcaseof staff personnel attempting to dictate to line personnel what to do. This would havebeen avoidedif the NEDA had stuck to what it is goodat,mainlyeconomicresearch.

The first step that the President should take is to establish a mechanismfor generatinga oonsensuson our economicpoliciesand directions,then hopefullythe nsxt implementingstep â&#x201A;Źn be formulated.

Prof. RomyL. Neri

THE ASIAN MANAGER O MARCH 1989 41

M aking cooperativesprofit ab1e...

PoliciesConoern rn Promotion and

byAssociateDean fesus G. Gallegos, Jr. (MBM'73)

reliance,dignity,capacityto makeone'sown decisions,to participatein the decisions that affectone'slife and work, and to developfully one's talents,all of which interact in a varietv of wavswith material n'eeds."l' Clearly, a developmentprogram

Mffi,l1l::?i,x#::"**i*

with cooperativedevelopmentin Asia. Cooperativeexpertshaveeven reacheda consensusas to why most cooperativedevelopmentprograms havefailed and why only a few have succeeded.However,a number of iss u e sr e m a i n u n r e s o l v e da n d t h e debatecontinues.The conceptof cooperativeprocessingis also being questionedasa result of thesesame unresolvedissues,and additional qu-estionsare expected.This paper will attempt to addresssuchissuesin the light of the diverseroles the v a r i o u sp a r t i c i p a n t sp l a y i n t h e processof cooperative development.

;trEffffil'"","i'ffi.ilBs

anqEconomb Development

fhe recent decadeshave seena I proliferation of development theories,an assortmentof development goals,and a mixtureof development strategies.To simpli$ matters, however,a motherhood statement will be presentedwhich encapsulates an emerging oonsensusamong most scholan regardinga key approachto development: o We must start with meeting the basicneedsofthe majority of the peoplewho are very poor. These needs are more end better food, safe water at hand,securitvof livelihood, health,sanitation, education,decentshelter,adequate transport.In addition, there are nonmaterialneeds suchasself-confidence.self-

which increasesthe real income of farmersthrough the fruits of their own decisionsand labor answersa good number of the above-mentioned needs.That is idealbut whatis actual?

A look at the typical stagesofa marketing systemfor agricultural produceshowsthesmallfarmerasjust the first stagein the multi-stage marketingscenario.From production to assembly,processing,wholesaling, retailing and finally to consumption, the farmer hasthe leastmntrol of all the participants.In sheersize,the small farmersoutnumber everybodv.

For most basicagriculturafconimodities,the small farmersevenout-

42 THE ASIAN MANAGER o MARGH 1989

performall of theother participantsin profitability on a per unit of commodity consumedbasis.Unfortunately, thevolumehe handlesis a merepittanceof the volume the other participantscontrol. In the Philippines, for example,the farmer's margin for everykilogram of rioe sold is US $.06, while the correspondingmilling and trading marginsamount to US $.03.

However,since the biggermillers, traders or miller-traders service thousand.sof farmers each, the profitability picture is drastically reversed.

As a result governmentsusuallyimplementsthe setting up of marketing cooperatives,supportedby a price stabilizationagency.For the few successfulcooperatives,the farmermembers are able to avail of reasonableprices for inputs and relatively higher pricesfor their produce.

But how many,or maybehow few,of these cooperativesare successful?

And who still keepsthe sizablechunk of the absoluteamount of profits?

More importantly, is the name-of-thegame the ability to control pricâ&#x201A;Źsor the capacityto control margins?

With so many imperfections in the marketing system,coupled with the unpredictable characterof natural and man-made forces affecting agricultural operations, the successful processors,traders,and processortraden alwaladfuecttheirattention to controlling margins,not prices.This brings us to the question of whether themajority of marketing cooperatives have been able to control the profit margins of its members.Over the years,farmgate prices havebeen increasing,but profit marginshave decreased,remained the sameor increasedbut at a lower rate relative to prices.This situation highlightsthe importanceof complementingthe typical marketingcooperativeoperations with the oooperativeprocessing function. And the dream here is

ogy acceptanceand cooperativeact i o n a r e p r e s e n t .O b v i o u s l Y ,t h e production-centeredapproachin implementingthis new programwill not The Roleof Government suffice.

In manycases,cooperativeshave in Cooperative beenusedby the local rural elite to its Proce$sing advantage,causingan intensification of the inequalitiesthecooperativewas is however, bubble, dream This supposedto minimize.Becauseof this I easilypickedby reality.Marketing cooperativesin most developing experience,government'sresponse wasto takea strongpaternalisticposicountrieshavegenerallybeenconIn tion which breedsdependence. w h e n m e a s u r e d f a i l u r e s sidered thereexistsa againstthe criteriaof profitablity, cooperativeprocessing, autonomy,memberparticiPation, muchbiggertemptationfor the local r u r a l e l i t e t o e s t a b l i s ha s t r o n g e r and stability.Comparedto a marketp r e s e n c ea n d i n f l u e n c e i n t h e c o o P e r a t i v e a ing cooperative, cooperative'sactivities,which may processingenterprisewill be cona much to assume fronted by biggercapital require- promptgovernment ments,a more complicatedmarket- strongerpaternalisticposition.

A paternalisticstanceby the governingscenario,a largerdemandfor both andskilledlabor, technicalassistance and probably a harsherbusinessen- L I v i r o n m e n t . C l e a r l y ,g o v e r n m e n t I I shouldrespondto this situationwith the necessaryassistancein organizztional activities,training and education, and financialsupport.Government shouldalso providesustaining cooperativelegislation,regulation and supervision.However, most governmentsof developingcountries becomepressuredto aplly a production-centered approachfor development programssuchas these.

Production+enteredprogramsbasic a l l y c o n c e n t r a t eo n i n c r e a s i n g production but pay little attention to issuesof equity.Theseprogramsyield dramaticshort-term benefits,but appear incapableof sustainability.They t r a n s f e r t e c h n o l o g i e sa n d o t h e r resourcesto the poor, but the poor usuallybecomemore dependenton control bureaucraciesfor the satisfacment in a cooperativedeveloPment tion of their needs.Hence, if the production-centeredapproachis program is not necessarilyinappropriate, particularly in the initial used,the chancesof successfullyimstagesof a cooperative'sgrov/th. plementinga more complexprogram Funding,training and education,resuchas cooperativeprocessingmay diminish. search and other intervention measuresare usually necâ&#x201A;ŹssarycomIn the past, governmenthas encountereddifficulties in persuading ponentsin cooperativedevelopment.

However, due to the more difficult small farmersin adoptingnew techconstraintsfacedby farmer groupsin nologiesgearedto increasefarm yields.Furthermore,governmenthas cooperativeprocessing,government struggledin its attemptsto convince should probablytry a different mode of interventionthat directlyaddresses farmer cooperativemembersto gear theseconstraints. their production and marketing acFor the past ten years,four leading tivities towardsthe bettermentof the c o o p e r a t i v e . w i t h c o c p e r a t i v e third world managementinstitutesloboth problemsof technolcatedin Asia and latin Americahave processing,

simple:ftom buyingretail and selling wholesale.the small farmer qln now buywholesaleand sell retail.

,a

zeroor Granting low exportand importtaxes,tax and exemptions similarincentives maygive processing coperativesthe boostthey re-

quire. r,

been undertaking action researchon people-centered development.The indian Institute of Managementat Ahmedabad,the Asian Institue of Managementin Manila, the Instituto Centroamericanode Administracion de Empresasin Managua,and the [nstituto de EstudiosSuperioresde Administracion in Caracasformed in 1977aninformal collegialassociation known as the ManagementInstitutes Working Group in Social DeveloPment. In various meetingsthe Working Group hasheld since1977,it has focusedin great detail on development programsthat build mmmunity capacityand createenablingsettings environment for more effective selfreliant local development.This type proof program,or people-centered gram,is rootedinaction effortsundertaken by a community to resolvea locally identified need.

The solutionsarrivedat arebasedon t e c h n o l o g i e sw h i c h c o m b i n ei n d i g e n o u sa n d m o d e r n s c i e n t i f i c knowledge.Theyare implementedby local peoplerelying primarily on locally available resourcesand financing. Evidently, a successfulpeoplecenteredprogram eliminatesmost of the internal and externalconstraints encounteredinsetting up andrunning processingcooperatives.Onepossible alternative for government to consider in its mode of intervention, therefore, is the peoPle-centered mode. In this scenario,government's role becomesone of facilitation.

TheRoleof Farmer Groureandthe Private Sectdrin CooPerative Processing l n m a r k e t i n gc o o P e r a t i v e st ,h e lfarmer-membersare also clientbeneficiaries,managersand workers, and owners aswell. Under cooPerative processing,the farmer-member also becomesa processorand, more importantly, the raw materialssuPplier. Hence, the new function that farmer-members plaY as raw materials supplier maYbe the most strategicrole they havein cooperative processing.The market needsa steadyand dependablesuPPlYfrom the processor,and the processorrequiresthe samefrom its rawmaterials supplier. If the raw materialssupply chain is weak, the market will react

THE ASIAN MANAGER O MARCH 1989 43

adversely,and the viability of the p r o c e s s i n go p e r a t i o n s w i l l b e threatened.Understandably,farmermembersof a cooperative processing endeavormust ensurea reliable flow of their raw farm produce to the processingunit. if theyfail in this role, their processingventure will most probably fail aswell.

Furthermore, farmer-membershave a new role to play under an enabling setting environment and a peoplecenteredintervention mode.Thevwill now be the plannersand deciiionmaken of a decentralizedand self-organizingsystem,the ownersof an organizationwhich they can truly call their oum.

Finally, the role of the private sector in this scenariois to act as the middlemanbetweenthe farmer-processor andthe consumer.In the initial stages, most cooperative-processors will not bein a position to sell to retailersor to retail the processedproduct themselv9s.Theywill still havero dependon the private sector to undertakethis neoessaryfunction.

government resourceswill then surface.

A price support mechanism,if implemented effectively, will be beneftcial in this casesinceprivate sector processonwill not be at an advantage in processingraw materials procured at lower costs.Again the issue of scaroegovernment resourcescomes into play sincepropping up farmgate pricesis a verye4pensive undertaking.

Reeearch and extenslon f)rocessing operations for food I and f,ber entail commontechnical factors that will have to be considered,whetherthe technolos/ to be usedis indigenous,basedon modern scientificknowledge,or a combination of both. The choiceof processing

Policvlssuesin Gooperative Processing fhe promotion and development l of cooperative processingof agriculturalproducebringswith it a numberof policy issuesfor consideration. Someof thesepolicy issuesmay have already Ueennisotvtfo in certain developing countries, while a few of thesemay not havebeen considered at all. In either case,there should be somevaluein presentingthesepolicy issuesfor purposes of further discussion and exchangingvaried experienoes.

Prlce Stablllzatton.

611a".oat smallfarmersproduce t ba$iccommodities,imposinga price geillng may <iampen profitability. When farmer groups are presentedthe option of cooperative processing,they may not be willing to undertake the venture due to the prospectofa price ceiling scenario.

Small farmers,however,may perceive that the increasedmarginsmaynot be worth the accompanying risks entailed in cooperariveprocessing.Subsidy is obviously an option in this .situation,but the issueof inadequate

4

growingtheir produce,theoptionof addinga morecomplextaskentailing additionalgovernment expeditures maybe relegatedto a lowerpriority.

Credlt f,lost processingtechnology, lUlwhether indigenousor based on modern science,will require funding. Rice farmers'groups, for instance,may need drien or a rice mill, either portable or of even greater capacity.Government interest rates for such a project will probably be concessionalor lower than commercial rates. Terms will most likelv include a graceperiod, with payment periods falling right after the harvest seasons.Start-upworking capitalwill presumablybe included in the loan package.All thqsedemanda substantial amount of credit, andjust how a g o v e r n m e n t ' sc r e d i t p i e w i l l b e divided among the numerous proposed and on-going government projects leavesthe fate ofcooperative processingto chance.There is, of course, the possibility of government comingoutwith a centralbankpolicy mandatingprivate commercialbanls to allot a certain percent of their loanablefundsto sucha project or to a g r i c u l t u r e i n g e n e r a l ,b u t t h i s measuremay be difficult to implement.

Flscal end Monetary Incentlvee

technolog/ involves, for instance,the product quality requirementsof the market. Storageand other physical assetrequirements together with their costswill haveto be studied.The location of the processingfacilities cart be crucial to viabilitv. Raw materi4l requirements may necessitate technologicalchangesin the cultural practicesof the farmer-memben. Hence, researchand extension activities are necessaryto support a processingprogram.

9_goperative When most developing countries are already encountering difficulties in providing adequateresearchand extension support to smallfarmers in

THEASIAN MANAGERo MARCH1989

Franting zeto or low exportand Ylimport taxes,tax exemptions and similar incentives may give processingcooperativestheboost they require. Just how beneficial these are to cooperatives,however, should be weighed againstthe danger of opening up areasof potential abusesin the sptem.

Agrarlan Reform lfasignificant numberof the memr bersof a farmer group are tenants, the critical suocessfactor ofa steadv supply of raw materialsinpus to thi processingunit may not be attained.

If cooperative benefits are contingent on the extent of member participation, the tenant membersmay feel left out and divisivenessmay set in. This will be particularly true should the landlord perceive that his prestige or

political powerwill be endangeredby t h e s u c c e s so f t h e c o o p e r a t i v e processingunit in his sphereof influence.It is indeedapparentthat the membersof a cooperativeprocessing endeavorshouldbe the ownersof the land they are tilling. For countries that have not implemented an agrarianreform program, cooperative processingwill be ideal for areas where the small farmers are mostly ownersof the land they are tilling.

Unfortunately, theseindividualswill presumablybe the relativelywell-off farmers,thus bringing up the issueof equitabledistribution of benefits.

Market lnfrastructure f\ ssemblersusuallypick up the Flproduce of the small farmers within the farming vicinity. Theseassemblersare normally part of an establishedmarket inftastructuresystem. Cooperativeprocessingcuts off theseassemblersfrom the marketing chain,togetherwith a diminishingeffecton the rawmaterialssupplyof the processinglink in the chain.Adverse scenariosmay arise from this eventuality, suchasassemblers and existing processorssabotagingthe project by enticing farmer-memberswith offers of higher pricesfor their farm produce,pressuringlocal officials (who mayalsobebenefittingfrom the statusquo system)to influence the downfall of the cooperative,or even prevailingupon the wholesalerof the processedproduct to dampenbuyrng pricesor not to buy at all. In the latter circumstance,governmentmay be forced to act as the wholesler, a very expensivealternative. Worse, the governmentmay assumea position when it is unableto control or resolve a problematicsituation which givesa low priority to the project or simply give up by letting the project die a naturaldeath.

Reglonal Development f h e d e p r e s s e do r m o r e n e e d y I rural areaswill probablybe perceivedas localities wiht low chances ofsuccessfor a cooperativeprocessing project. Converssely,the more developedfarming areaswill likely be ratedhigh in termsof chancesfor successfulimplementationof cooperative processing.The efficient useof

sc:rrcegovernmentresourcesdictates concentrationon the more developed areas,while the equity argument mandatesa focus on the depressed localities.This policy issueis actually present in most rural developemnt programsof governments.Up to this point in time, unfortunately,the efficiencyversusequity issueremains unresolved.

People-Gentered Development fhere existsa never-ending I debateon pragmatismversus idealismin cooperativedevelopment.

The pragmatistwillsaythat the financial success of the cooperativeis what counts as the bottomline objective.

The idealistwill declarethat cooperative principles should be basedon

t1Thereare,of course,flies in the ointmentof this 'too goodto

be true" scenano. ,,

A s i a n v a l u e s y s t e m sa n d t h a t humanisticgoalsare paramount.The pragmaticviewpoint hasbeen emphasized in some cooperative developmentprojects and, while most of theseprojectsare considered failures,it doesnot imply that the pragmaticviewpoint is irrelevant.

The idealisticapproachhaslikewise been tried, resulting mostly in unstable or unviable cooperatives.

Again,thisdoesnot meanthat avalue formation approachcannotwork.

If onetakesa closerlookat theAsian farmer,it isobservedthat ncenturies of dependency on thevillageelite andofficials havenot preparedhim to par-

ticipate effectively in organizationsas a full-fledged, independent,responsible memberwhosebehaviourand decisionsare vital for the successof the organizations.He doesnot have the tradition, the experienceand the practiceof working in an organization in which his voice is as important as that of anyother member."If this is an then a purely acceptableassessment, pragmaticapproachwill obviouslynot work. There has to be a value formation componentin a cooperativeprogram, and the cooperative and its new membersshould embracea humanistic ideolory aswell.

In this light, the people-centered mode of intemention may be a viable option to consider.This approach clearly overcomesthe attitudinal, traditional and experientialconstraints posed by the Asian farmer himself. The internalized processof identiSing local needsin the peoplecenteredmodewill most likelyend up including income-generatingprojects as one of the community's needs.

Hence, the pragmatic viewpoint is alsosatisfied.In this process,however, the farmerhimselfidentifiesthis pragmatic need,makesthe decisionby h i m s e l f t o u n d e r t a k ea n i n c o m e generatingproject"and thereforewill also havethe proper attitude and required confidenceto implement and run the project.

Thereare,of course,fliesin the ointment in this ntoo good to be truen scenario.For one, people-centered programsrequirethe fielding of effective community organizers,a tare breed of people. Intensive training will be required to effect a multiplication of this type of individuals.A reorientation of the bureaucracyin both the central and field offices is also a necessarystep in this undertaking. Although extremelydifficult at first glance,there have been a significant number of successstories in developingcountries that may provide the necessarylessonswhich may lessenthe difficulty.

Finally, the approachis usually implementedon a gradualbasis,thus all e v i a t i n g t h e p r e s s u r eo n s c a n t governmentresourceswhichwill most likely be draineddependingon the position governmenttakesin the policy issuesraised beforehand.In Korten'swork on the learningprocess approach,he identifiedthreestagesof

THE ASIAN MANAGER O MARCH 1989 45

o

the participatoryapproach,basedon threesuccess casesin Asia. StageOne or learning to be effective,will mean t h e i m p l e m e n t a t i o no f a p i l o t cooperativeprocessingproject where the farmer-membenthemselvesidentify problems,formulate remedial m e a s u r e sa, n d i m p l e m e n tt h e s e mqNures,usingthe organizationthey themselvescreated.

Once insights havebeen gained regardingwhat to do in organizing farmers for cooperativeprocessing and when the variousactivitiesrequired for successfulprocessing operationshavebeen identified, attention is directed to learninghow to accomplishtheseorganizingand processingactivitiesefficiently,which is StageTbo. New learninglaboratory sitesmaybeestablishedat thisstageto test and further refine the organizing methodsand the operationalmanagement requirements.Lastly,Stage Three or learning to expand,necessitatesthe phaseddevelopmentof a

supportingorganizationgearedto the requirementsof carryingout the prescribedactivitieson a larger scale.

Stages1 and 2 may be considered costlyon a per project basis,but the absoluteamountinvolvedis relatively minimal. It is only in Stage3 when program costsbecomesignificant, primarily due to expansionactivities.

However,the chancesfor successat this stagewould havebeenheightened by the insightsand lessonslearned from the previousstages.Government, therefore,maybe more receptive to allocatingmore resourcesfor t h e e x p a n s i o no f a c o o p e r a t i v e processingprogram,unlike in the casesbrought out under.theprev i o u s l y - m e n t i o n e dp o l i c y i s s u e s where such a programwould have meriteda low priority rating.'

processingof agriculturalproduceis facedwith a multitude of policy issues that are quite difficult to resolve.A significant amount of government resourcesis required,and the tradeoff betweenprogram costsagainst h i g h l y u n c e r t a i n r e a l i z a t i o no f benefitsmay urge governmentto shelvea cooperativeprocessingprogramproposal.Maybe,just maybe,an a d o p t i o no f t h e p e o p l e - c e n t e r e d mode of intervention and the learning processapproachprovidesh possible answer.

Conclusion learly,the promotion and developmentof cooperative

AssociateDean lesus G. GallegosIr.

References 1. Streeten,Paul P., 'DevelopmentIdeasin Historical Perspectiven, EconomicImpact.

2. The Studyof AgribusinessCostsin the Philippines,sponsoredby the ManagerienrAssociationof the philippines,December1986.

3. nProblemsand Issuesof Cooperativesin Rural Communitiesin Asia: A Reviewof Literaturenin I-€desma, Ledesma,Quizon and Salinas,TheCooperative E^ryerience in Asian Cultures.A Report of the CENDHRRA Workshop on Cooperatives,1982.

4. 59-t!"1, Daid_C, "Empoweing VersusDependenqCreatinghograms,'Asian Institute of Management.

5. V-aldellon,V. R.,'Ifyp-otheses and Observations on Farmerc'Cooperatives",Asian Instiruteof Maingement.

6. Mercado,Ironardo N, Filipino PsychologForWlage Development,DiineWord Publicaiions,Tldoban city,1980.

7. Korten, David C., "RuralDevelopment hogramming TheLeaminghocessApproachn,Asian Institute of Management.

46 THE ASIAN MANAGER o MARCH 1989

RTIC

The GeneriqsLaw: lndustry MewsFromThePharmaceutical byEdrnundTamayo CorporateCommunicationsManager AMA ConsolidatedGroup

,

f , l o t o p i c r e l a t e dt o t h e p h a r I !maceutical industryhasdrawn more controversyin recent months than rhe GenericsAct of 1988which was signedinto law by President Aquino on September13, 1988.

The exacttitle of the law is "An Act to Promote, Require and Ensurethe Production of an AdequateSupply, Distribution, Use and Acceptanceof Drugs and Medicines Identified by their GenericNamesn The law definesngenericnamenas " t h e i d e n t i f i c a t i o n o f d r u g sa n d medicinesby their scientificallyand internationally recognizedactive ingredientsor by their official generic nameasdeterminedby the Bureauof Food and DrugBof the Departmentof Health (DOH)."

In turn, "genericdrugsnare defined a s ' d r u g s n o t c o v e r e db y p a t e n t protection andwhich are labeledsolely by their international, nonproprietary or generig name.i Generic drugs are generallycheaper than branded products becausethey can be produced by manufacturers other than their original discoverers without the costsof researchand development,start-up production,or introductorypromotions.

However,the assumption-that two drug productswith the samegeneric name or active ingredient are therapeuticallyequiralent-is not alwayssafe to make. The matter of therapeutic equivalencecan be crucial, particularly when prescription drugsare involved.

The drug industry participatedactively in legislative deliberations on generic drugs, having alwayssupportedthe a%ilability of genericdrup alongBidebrandeddrugs,becausethis allowsthe widest rangeof choicein therapy.Furthermore, the industry

hasneverobjectedto a lawpromoting genericdrugs.

The governmentactively pushedfor the creation of the GenericsAct as a legislativemeasurewhich would help to implement the National Drug Policy(NDP). The primarygoalof the policy, asstatedby Secretaryof Health Alfredo R.A. Bengzon,is to neventually bring about the auilability and affordability of safe,effective and goodqualitydrup forall sectorsof the country, but specificallyfor the poor whoneedthem mostbutwho canleast afford them.

Contrary to popular belief, the genericslaw doesnot do awaywith brands. While the law aims to promote, require and ensurethe production ofgeneric drugs,it alloun the continued existenceand use of brandedpharmaceuticalproducts.

The genericslaw has the following main provisions: o The exclusiveuseof generic terminologl in the manufacture and saleof drug;sincludedin the EssentialDrugs List shall be promoted of incenthrough a s)4stem tives.

All government agencieswill usegenericnamesin all transactions.

All medical,dental and veterinary practitioners,including private practitioners,shall write prescriptionsusing the genericr.rame.

The brand namemaybe included,if so desired.

C-ompaniesmanufacturingor distributing drugsshall indicate prominently the generic nameof the product. In the caseof brand nameproducts, the genericnameshall appear prominently and immediately abovethe brand namein all labels,advertisingand other promotional materials.

Drug outlets shall inform the buyer about drug products with the samegenericname, togetherwith their correspondingprices,so that the buyer may exercisehis option.

Within oneyear, all outlets will be required to post a list of productswith the same genericnameand their cor-

THE ASIAN MANAGER O MARCH 1989 47

respondingprices. o To assureresponsibilityfor quality, all labelsshall show the manufacturer'snameand country of manufacture,date of manufacture,and date of expiration.The quality of genericallylabeleddrugsshall be duly certified by rhe DOH. o Subjectto rules and regulations promulgatedby the DOH, wery drug manufacturing companyshall be required to produce,distribute, and makeavailableto the general public the medicineit producesin the form of genericdrugs. o The DOH is givena threeyear period, extendablefor another two years,and during periodsofcritical shortage,in which it can import raw materialsfor the useof Filipino-owned or controlled drug establishments.The Presidentmayauthorize the importations on a tax-free and duty-freebasis. . The DOH, jointly with rhe Department of Blucation, Philippine Information Agency,and Departmentof L,ocal Governments,shall conducta continuing educationand training program for medical and allied professionals,on drugswith genericnamesnas asalternativeofequal efficibncy to the morreexpensive brand names." . Penaltiesare prescribedfor phpicians and officersof drug establishmentsviolating the law.

For physicians,graduatedpenalties rangefrom reprimandsto finesof not lessthan 10,000pesosand suspension of licenseto practice for onayear or longer.

Penaltiesfor drug establishments consistoffines ofat least5,000pesos, suspensionor revocationof licenseto operate,and for responsibleofficers, imprisonmentof not lessthan six monthsnor more than one vear.If the guilty party is an alien, ire will be deportedafter servingsentence.

The Secretaryof Health shall have authority to imposeadministrative

s a n c t i o n s s, u c ha s s u s p e n s i o no f licenseto practioeto the Professional RegulationCommission.

The GenericsAct hasgivenrise to a number of concernsand clarificatorv questionsfrom tfie standpointof the pharmaceuticalindustry.The nature of the measureis suchthat the DOH is t a s k e dw i t h f o r m u l a t i n g i t s i m plementingrulesand regulations.

T h e g e n e r i c sl a w a l s o c a r r i e s provisionswhich canbe interpreted in variousways.It is thereforehard to determinein detail how the lawwill impacton the industryuntil the DOH comesout with the rules and regulations in March, 1989.

For example,it is not clearwhether or not the law will require drug companies to manufactureand sell a genericallylabeledequivalentfor everybrandedproduct it sells.

Dependingon int6rpretalion,a company could be forced to manufacture and sell a productalthoughit maynot wish to do so. w i t h r e s p e c tt o l a b e l l i n g , t h e measurerequiresthet "in the caseof brand name products,the generic nameshallappearprominentlyand immediately abovethebrandname....n This provision requiresthat all existi n g p a c k a g i n ga n d p r o m o t i o n a l materialsbe changed.

The industrywill encountersome verydifficult practicalproblemsin fitting genericnameson smalllabels,on combination productswith different strengths,on imported items of small volume, on productsexportedto other countries,and on productsin aluminumfoil.

An extremelyimportant provision which manydoctorsopposerequires practitioners to write prescriptions usinggenericnames,includingbrand namesif they wish. If generic and brand namesare not similar, which olewould prevailin filling a prescription? This canleadto problemsat the drugstore,and mistakesmayoccur with possiblyseriousoonsequences.

Another provision requiresoutlets to "inform anybuyeraboutanyandall other drug productshavingthe same genericname,togetherwith their correspodingpricesso that thebuyermay adequatelyexercisehis option." The a p p a r e n ti n t e n t i s t o e n c o u r a g e genericsubstitution.

A fov thoughtson substitutionarein order.There is considerablescientific

evidencewhich provesconclusively that drug productswith the sameingredientscannotalwap beassumedto be therapeuticallyequivalent.

The excipientsaddedto theactiveingredient,the manufacturingprocess utilized to convert activesubstance into a dosageform, the typeof dosage form itself - thesefactors determine the therapeuticefncacyofa product.

Andefficacycananddoesdifferfrom one product to another. Most companiesput a brand nameon their product to differentiateit from others becausethey are in fact different.

These differences occur between brands among themselvesand between genericsamong themselvesas well as betweenbrandedand generic products. Thesedifferencescan make substitution without the doctor's approval potentially dangerous.

The provision in the genericslaw which encouragesthe patient himself to make a decisionon what product to choose,with price as a major factor, appearsto be in conflictwith the concept that somedrugs are madeavailable solelyby prescriptionbecause only a trained expert like the doctor shouldmakethesedecisions.

The genericslaw now appearsto encouragethe transfer of this important responsibilityto the drugstoreclerk or to the patient.

Theseare someprovisions which require clarification to avoid onfusiorl i n c o n s i s t e n c i e so r i m p r a c t i c a l mechanicsin implementatioll At this juncture, the pharmaceutical industry looks fonvard to meaningful consultationsand dialoguewith the DOH in the drafting of implementing rules and regulations.The industry seeksto work closelywith the government in finding practicalsolutionsto the different problems involved in the implementationof the genericslaw

WMBO CaseHistory

JanetLim

by Socono Pernia-VeIoso Ianet Lim is the ManagingDirector for the Intemational Finance Corporation (the namesof persons, placesand organbationsin this case are disguised).

qualiS for nomination,an associate should have been in a managerial position for at least five years,and haveservedthe Institute by contributing to general banking education through lectures and/or formal papers.

Janet was promoted to the newly createdposition of managingdirector a yearaftershejoined the International Finance Corporation (IFC) as a

fhere is no doubt that in Asia, top I managementin businessparticularly in the bankingand financial sector, is a man's turf. Although womenbeganto dominate the financial servicessector in the 1970s,they had not succeededin penetrating top management,as late as the early 1980s.It was not surprising, therefore, that in 1985,Janet Lim became the talk of the town in Kuala Lumpur.

At 35, in spite of the lack of a university degree,she becameMalaysia's first woman managingdirector of a finance company. o In hindsight,it may havebeen a mistaketo quit school.If I had experienceda tertiary education,perhapsmy startoff at work would havebeen easier. In the context of Malapia, the struggleis a lot harderwithout that pieceof paper.But again,if I had that (univenity) degree,I might not havebeen as persevering or might haveturned out asa 'softy.' I worked hard from the ranksbut I don't regret the experienceI got.

Besidesbeing the country's first woman managingdirector in the financial sector,Janet wasone of two women fellows of the Institute of Bankers.In 1985,therewereaboutten holdersof this time-honoredtitle in Malaysia.To becomea fellow of the Institute, one had first to becomean associateby taking the Institute's coursesand passingits seriesof professionalqualification examinations. Then, an associatehad to be nominated and elected a fellow. To

manager.The IFC wasa wholly owned but autonomoussubsidiaryof the International Bank Ltd., one of the oldestbanksin Europgwith branches in more than 60 countries all over the world. In 1985,IFC had a paid-up capitalof M$2million, relativelysmall comparedto the M$170million of the largest finance company in the industry.Yet in terms of return on equity, it ranked third.

Janet is married to the general

managerof the Pan-AsianBank. They haveone child, a son agednine at the time of the interview.

Famlly Background lanet, born in Kuala Lumpur fr(KL) on July 1, 1950,was the third of four children, two boysand two girls, of first generation immigrants to SoutheastAsia. Her parents worked hard to establish themselvesin the new country. Her father wasa businessmanwho owned a small retail store which carried householdgoodsand cooking utensils.Her mother took careof the family and helped in the shop whenever she could. When the children were old enough, they were also encouragedto help in the store,especially after school and during school holidap. o All four of us would wake up ' at five in the morning during the festiveseason,specially the ChineseNewYear, to prepare the shoPfor business.

The store had to be opened early to catch the crowd.

Through their examplesand nlectures,nboth parentsimparted to their children thevalue of hardwork Janet fondly recalled how her parents repeatedlyreminded them: "Nothing oomeseasy.Money is hard to earn and if you want to be rich and successful, you've got to work very hard." This madehard work secondnature to her.

Becauseof their early involvement and responsibility in the family business,Janet and her siblings grewup to be quite independent.Of the four of them, Janet consideredherself the most independentand resourceful.

She rememberedgoing off by herself to explore the city and doing a lot of things on her own. When she was readyfor seondary school,shepicked her own school when children her age usually had their parentschoosetheir schoolsfor them.

Being a "middle child,nshedid not get as much attention from her

THEASIANMANAGERO MARCH1989 49

parentsas her eldestand youngest brothers. Nonetheless,being the youngerof the "middle children,"she wasmore pamperedthan her sister. o I didn't haveto do housework or help Mom, although my sisterdid. My mom usedto chaseme out of the kitchen to my room to studyinstead.

By the time shewas 16,sheknew she wantedto pursuea citreerin the financial sector.Janetgot her firstjob at 18 right after she completedher preuniversityeducationin 1968.At rhar time, her father had just suffereda heartattackandshefelt that sheought to contribute to the family income, ratherthanto undulyburdenthefamily by going on to university.

Career Development fhe prospectofworking in a bank I appealedto Janetand madeher decision to forego a formal college educationlesspainful. o I had alwap wanted to work in a bank. I had a very close friend who worked at Citibank. Shewasvery bright and aggressiveand was always number one in school.

Everybody emulated her. I couldn't understandwhv she did not go to the univeriity but shewasvery successful, nevertheless.

Janet applied for a job at the American Bank in KL. She recalled that the bankwas so impressedwith the resultsofher aptitude test and interview that she was chosen over severalearlier applicants,and given a clerical position in the remittance department. After a while, she was transferred to a branch office where sheworked in the lbackdoor" services department.A few months later, she was moved again, this time to the more glamorous"front doornretail banking department,as customer relations officer. There, Janet dealt directly with the customers,handling their Personal banking needs, smoothingout their problemsand answeringtheir questions.

Janet was grateful for the various transfers.This allowed her to gain greaterâ&#x201A;Źxposureto, and knowledgeof the other banking functions. The American Bank normallv did not

movepeople around. In her three and a halfyearsat the AmericanBank,she had been promoted from junior to seniorclerk,but shesawnorealfuture there. In 1972,Janetleft the American Bank to join Malaya Finance.The movewaspromptedbythejob offerto assistthe managerin running the company.To her, it wasa chanceto ngraduaten from clerical to officer level without too much hassle.And the exposureand training that went with thejob shecouldnotbegin to imagine."Furthermore,MalayaFinance was newly set up. I thought being a pioneerin a new companymight provide me with a lot of learning experience."

Shewasright. Entering a new oompany provided the challengeshewas looking for. Malaya Finance,at that time,hadasmallstaffandJanethadto do practically everything from deposis to loansto settingup systems.

Thus,shewasexposedto the various functional areasand the entire setup of the company.As loansofficer, shb worked very closelywith the manager and assistedhim in running the shop.

I-ooking baclgJanetagreedthat working closelywith the bosspreparedher for the executiveposition shewas to hold later.

TWoyearslater in 1974,Janetwas sentto theAsian Institute of Management (AIM) in Manila to artend an eight-weekmanagementcourse.

While shewasaway,the oompanyhad an annual promotion exercise.nBut becauseI wasaway,they conveniently forgot to includemein the promotion.

They probably thought my overseas training was reward enough."But Janet thought that was unfair. Her performancewasgood.andshe had workedhard,in hct, harderthanmany of the othen in the company.Sheused to work long hours up to 7:30in the evening, long after everyoneelse had left at 5:00.Shesaidshehad to clear up her deskbecauseshehatedleavingany work unfinished. She had been promoted once before but she believedshedeservedanother promotion and expectedone. Shefelt an injusticewasdone to her.ThlB, asa matter of principle, she left Malaya Finance and acceptedan offer from the Wong-Tan Group which she had earlier declined nrice. o Malaya Finance probably thought I would not leaveso

50 THEASIANIIANAGERo MARCH1989

soon, becausewhen I resigned,the company offered me a promotion: But I don't operate that way. My bosswas quite unhappyabout my resignation but I had alreadymade up my mind to leave.

Her earlier hesitationto join WongTan Finance,Ltd. stemmedfrom the commonbelief that Chinesefamilvowned businesseswere not rrin professionally.When the job wasfirst offered to her in 1975,she researched the history and backgroundof the companyand the Group. She even consultedher colleaguesin the industry. o I wanted to be very careful. I took my careerseriouslyand did not want to grab a job offer just becauseit wasfinancially attractive.Even then, I wasnot just after the money but I looked at what I could learn from the iob and at mv chancesofadvincing in mycareer.

Janet finally joined Wong-Tan Finance in Decemberof 1975,as credit officer. Sinceshe had earlier declined their offer twice, Wong-Tan cameup with attractive terms and conditions.

Her suspicions,however,were urrrect. The companyw:tsrun like a typical familybusiness,and adjustingto a new style of managementquite different from the American Bank and Malaya Finance took some time.

Luckily she got along well with the family, and eventually gained their trust and oonfidenoe. ln 1977 she was promoted to the position of credit and marketing manager,which meant more responsibilities. About two yearslater she was one ofthe two key penons asked to manageKuala Lumpur Finance (KLF), a rlpw acquisition of the Wong-Tan Group. She was to stay with KLF for five years,making her staywith the Group a total of about nine years.

Janet was the number two penon in KLF. Although her designationwas credit manager,the businessdevelopment of the company becameher primary concern. The general manager(GM) of KLF, her boss,was preoccupiedwith other concernsand often wasunavailableevenfor critical

decisions.She enjoyedthe freedom and independenceofdeciding on her own and doing what she wanted.

Nonetheless,she had misgivings about the way the aompanywas run.

Shethoughtit wasunfair that shetook on the responsibilitiesof the GM but not his authoritybecauseofficiallyshe wasthecredit manager.Shouldthinp go wrong, she felt shewould haveto bear the brunt of the responsibility alone. o The problemwould have beenminimized if they had designatedme assistant generalmanager(AGM). But theywere not about to do that. I think it wasbecauseI lm a woman plus I don't have the'pieceof paper.'"

In Chinesecompanies,sheconfided, managementgenerallywould not think of putting awomanin a top position. This position was reservedfor a man or a memberof the family. of thesituation indiHer assessment catedthat there would be no changes within the Group for furtheradvancement in the foreseeablefuture. This meant the GM would be around for sometime andthe prevailingsituation would continue. Shesawno possibility of moving up. . I didn't think I wasadvancing.

ATKLR Iwasnotrunning anything new. At least at Wong-Tan Finance, I worked closelywith the MD and learned how to do business but (at KLF) I wasn't learning anything new.

She neededa new challenge,and Janetleft KlFinJanuary 19&f.After her resignation,KLF hired a rnan to replaceher. "He did enctly what I had beendoing,heoccupiedmyofficeand usedmysecretaryyet hewas given the title of AGM,' sherelated,underscoring her assessment of most Chinese companies.

Severalmonths before she resigned from KLF, a reputable headhunter (executiverecruiter) had sought her out and offered hera managerialposition at International Finance Corporation (IFC). After almost 17yean in the industry,she had madea name for herself and wasquite in demand.

Quite often, headhunterssoughther out with job offers. This time, the managerof IFC had just resigted and

the companywasanxiousto fill in the position.After ninemonthsof careful study and negotiations,Janet acceptedthe job. Shejoined IFC in January1984.

At that time, IFC wasstill rather small and not ashigh poweredasit was in 1986."I was challengedat the prospectof turning around a compan!,nsheexplained."Moreover,IFC appearedmore professionallyrun than where I was.And beinga member ofa Europeangroup,I figured,in the long run, it might be a better prospect."

A year later, JanetbecameIFC's managingdirector.

Latest Posltlon n t the time shetook overthe Flstewardship of IFC, shesawher job as consistingbasicallyof two phases:nhousecleaning,n and improving the company'sprofitability. TWo yearslater in 1985,the first phasewas about to be completed.All shehad to do was train her staff and set up a computerizedinformation system.

Thesecondphasewastaking shapeas well. She had drafted a business strateg/to diversis the company'sactivities into suchareasasequipment, car and sharefinancing insteadof being heavily centeredon property financing as in the past. Her strateg/ was paying off and her effectiveness hadmadeIFC numberthreeinthe industry in 1986in terms of return of equity.

As managing director, Janet reportedto the chairmanof the board andwasresponsiblefor the company's profitability. She supervisedthe operationsof four departments:(1) credit and marketing, (2) accounts and administration,(3) deposits,and (4) collection. Shewassupportedby a staffof 18 people. o Now I don't feel the need for that pieceofpaper anymore.I think I've gained a certain level of recognition in the market so they don't seemto look for my paper any longer.

I might otill go for advanced managementtraining but tertiary educationdoesn'tseem too relevantat this point in my career. I supposemy fellowship from the Institute of Banken is the more relevant

paper in the professional circle.

Shestarted a conespondenoeoourse at the Institute of Banken in the U.K in 1972.Sheworked hard, studyingat night to completeher oourse.lnl975, Janetreceivedher associate'sdiploma and in 1984,shewas nominated and electedasa fellow ofthe Institute.

Management Practlces fhe managersof the four dePartI mentsmadeup her management team. They were responsiblefor the people under them, and were answerableto her for their stafb' performance.

A democraticmanager,shewasopen to suggestionsand commentsfrom herstaff.At times,shewouldthrow in her ideasfor discussion.Ifall had not succeededin convincing her of the value of their alternatives,shewould go aheadand implement her idea o Of courseI try to make them understandwhy I decided to stick to my idea. I do not believein stifling the thinking processof those who work with me. My style (of management) is very much like the American style- I hear their piece,I let them suggest.I keep my door open all the time to enoouragethem to come in at anytimeand discussthings with me. wework asa team.

She felt that becauseshe was new and there were still many thingp to be corrected and improved in the company,she had to be strict, and oftentimes even demanding until the work standardswere up to par. Consequently,shewasviewedasa toughand exactingboss."I'm quite particular.

No matter how urgent, I don't accept sloppywork " shestressed.Fortunately, most of her stafferswereloungand fairly easyto mold. Someof them still haveto be'held by the hand,"sheexplained. The oneswho couldn't cope lpith the challengeleft on their own.

For thosewhosejobs could be quantified in termsof dollars and cents,targets were set basedon guidelines Janetprovided.Theseguidelineswere in turn basedon broad policies from the chairman.

Everyone in the comPany was

THEASIANMANAGER. MARCH1989 51

I

salaried;no one wason commission.

However, everybodywasgiven a fixed annualacross-the-board bonus.Performancewastherefore recognizedin termsof the paceof promotion or size of the salaryincrement- the performers were either promoted fatter or givenbiggersalaryincreases. nl-ateron, when we are more established,I'd like to train my peopleso they can do some of the work I'm doing now," she said hopefully. At present,the staff wasundergoinginhousetraining at either the International Bankorat IFC. Generally,they were selectedfor training on the basis of their identified needsand partly, performance,especiallythoseassignedto exlernalprograms.

To improve camaraderie,birthdays were celebratedin the office at companyexpense.Sheinstitutedthispractice to allow the staffthe chancetb get togegherand interact.Generaltraining programswerealsoheld regularly.

desirablesizeand makeit one of the top five in the industry,or shecould tryfor the top positionof a big finanoe company.

wantedto reachout and help othen. o I could probablyhelp the churchwith its administrative work or in planning its finances.I should also spendmore Janet, the Person time helping others.This year we'veopenedour guestroom lanet and her husbandhavedisfor the useof visiting misllJ cussedthe ideaof havinganother sionariesor church leaderson child, primarily in responseto the an ad-hocbasis.This way the clamorof their nine-yearold sonfor a churchdoesnot haveto put babybrother. out church moneyfor a hotel. . He hasbeenasking(for a I regret not havingdone brother) for the past five somethingearlier. I feel I've yearsand hasnot given up. beencaughtup in the rat race Now he'sgetting usedto and somewherealong the line beingalone.But on second lost someperspective. thoughtit might be goodfor In addition, Janetwasa great him to havea closerelative. believerin thevirtue of friendshipand At leastwhen we die, he will in establishingstrong relationship not be alone. It might also be with friends,not justacquaintancesoi nice to be a mother again.

"In this affluent businessassociates.

Shebelievedthat at this point in her societypeopledon't seemto havereal career,combihingmotherhoodand friendsanymore.I try to go out of my qtreer hasa better chanceof success. way to keep this virtue alive,nshe Shewasalmost at the peakof her Aspirations stressed.In spite of her tight work careerand oouldthus afford to spend schedulewhich often extendedover more time wirh her familv. Shestill the weekend,shekept in touch with l n s e v e n t e e ny e a r s ,J a n e t h a d hadto makeup hermindabouthaving friendsat leastby phoneandwhenever lworked with four companies, all in t h e b a n k i n g a n d f i n a n c i a l s e c - anotherchild, however.In 1986,she possible,got togetherwith them. hadgivenhenelf a two-yeartimetable tor.Askedwhat her planswere,she Friendshipto her workedboth wap. for this decision.nl'm not getting any had this to sav: Thus, if a persondid not believein younger.So if after two yearsI still working at remaining good friends, o At this point if I were to do haveno babythen I won't haveone.n shedid not insistand droppedthat somethingtotally new, Id go Shehad postponedhavinga second person out of her short list of real into businessfor mpelf and baby,partly becauseof her careerand friends - a few girl friends from be my own boss.I like a partly becauseof rhe difficulty of getchildhood and somefrom work. people-orientedbusiness, tin_ggood householdhelp.

Janetalso tried to spendsometime, maybea travel agencyor conHer husband,whomshemetwhile at at least once a week on the average, sultancy.But if I were to M a l a y a F i n a n c e ,w a s a l s b a w e l l with her family and in-laws.On a remain an employee,I think known personalityin KL's banking quarterly basis,she hosted a family it would be wiser to stavin secto_r.

He wasthe generalmanagerol reunion for both sidesof the familv to rhe financial sector.This is the Pan-Asian Bank and being a allow everyoneto get together. the area I know best.That banker,understoodwhat herjob enway I don't haveto work my tailed. He claimed rhat he wasglad Success Factors way up againfrom scratch.Of that shewashappywith her career. courseif one doesn'tcare Yet deepOownijanet suspected,he 6 hebelievedthat success couldbe about a qlreer but just wants would not mind if shestoppedwork\Jbrought about by intelligence to try somethingnew to satising. There were times, sheadmitted, and hard work. Sheer hard work to S one'sego or senseof whensheentertainedthe ideaof quither wasnot enough.One had to put a achievement,then it's okav - to ting her job, especiallywhen she felt lot of planning and thought intohow venture into a new field. miserableabout not spendingenough one expendedone's energy,that is, Shehadreachedthe top positionina time with her son.'Sometimes,I feel working smart. Janet also believed s_ubsidiary.

The next step in the init's not worth it, but at other times I that one shouldalwap reflecton what dustry was to go into the banking don't want to let mycareergo,not just had been done, look at the flaws,the operation of the mother company,in yel" weaknessesand the strengthsand her case,the International bank.

Janet also wanted to spendmore learn deliberatelyto profit from exHowever,shesawother options.If she time on religiousactivities.A Chrispenence. did not put up her own business,then tian, shebelievedthat life did not end But one had to be fortunate enough shecould expandthe presentcomon this earthand thereforeshedid not to encounter,recognizeand seize p a n y t o a m u c h b i g g e ra n d m o r e wish to live for this life alone. She availableopeningsfor opportunities.

52 THEASIANMANAGER- MARCH1989

Othenpisehard work alone would not "Opportunities do take one too far. not presentthemselvesto You,'she added."They have to be sought." o The secretis seeingthe oPPortunity. ThereforeYoushould be alert. While you are working hard,you should not just stick your headto Yourdesk and forget everything else.

You should lookaround and make your aspirations known to your boss,othenrise he might think you're haPPY whereyou are.

Furthermore, one had to educate and develop oneself progressively eitherby attendingtraining coursesor nForexthrough on-the-job training. ample, if the department had three sections,I would lvant to know what wasgoingon in the other two," sheillustrated.

This professionalcuriosity enabled Janet to gain broader perspectiveand understandingof her job. Janetalso kept in touch with what washappening insideaswell asoutside the company.Shekept tab ofcunent affain in the industry, the economy,and the world, nevenif only to be able to engageintelligently in discussions u/ith colleagues.'

Reactions Prof. Purba Rao fhe Caseof JanetLim is rcally a I successstory describinghow an intelligent and competentwoman roseto higher and higher positionsin the banking and financial sector.

What I find remarkablein the caseis thatJanet oould makeit to the top inspite of not havinga regularuniversitydegreewhichis mnsidereda basic pre-requisiteto any job. This only showsto what length one'swill power can help achievein the face of all handicaps,adversesituations and preconceivednotions that a University education alone can make a successfulmanager.Of course,in addition to will power Janet must have had excellent decision making capabilitiesand super managerial qualities.

The casementionsthat Janethasalwaysbeen a democratic manager, open to suggestionsfrom her staff.

Also, that shehasbelievedin keeping her door open to encourageher people to come and consult her. At ihe sametime, she hasbeen exacting and particular on the job with regard to quality of work and to meetingtirgetaon time. This combination of demandingrequirementsfrom her staff and at the sametime her human wannth towardsher staff, like arranging for their birthday celebrations must havetremendouslycontributed towardsher acceptabilityasthe boss.

Again, apart from managingand directingher staff,someofwhom even had to be heldby the hand,Janetnever ceasedto developinghenelf. For instanceshe worked hard, studying at night, to completeher correspondence course at the Institute of Bankers.This led to her associate diplomaandher finallybeingelecteda fellow of the Institute.

Another important characteristic which the casementionsabout Janet is her skillful planning of her career.

Whenevershehasseenthat there is no scope for her to move up in her presentposition shehaschangedher job immediately.Again whenevershe hasseenthe possibilityof gettinga lot of learning experienceshe hasconsideredit an openingfor her.Also she never waited for opportunities to come her way; insteadshebelieved in sorting them out.

Nowwhile the casestressesthe high achievementswhich Janet]shard work, intelligence and other capabilitieshelped to fulfill one cannot but observethat she musl also havebeen positivelylucky, at leastin the early phases of her career.

Without luck favoring her I wonder how shewould haveobtained a job with the American bank'andthat too All along, without a universitydegree. while her ambition and careerplanning have moved her forward and progressivelyupward, her good fortune must haveplayeda considerable part in ensuringthat thingsalwap go the waytheywereplanned.In general she has positively been much more fortunate than most other women would berinher position,anyrvherein Asia. Also the casedoesnot bring out the frustration and exasperationthat any sensitiveworking woman,who is also a wife and a mother, invariablY goesthrough in the face of a lot of heart-rendingrole conflict. Again

Janet hasbeen fortunate in havinga cooperativeand an understanding husSand,who only ferls, deePdown, that a secondbaby might not be unwelcome.I believe that in real life, the p r o b l e m s e n c o u n t e r e di n a l a d Y hanager's working life aswell as personal life, are much more difficult to tackle.

Prof. Jose Marl Gastlllo Janet Lim has madeit to the toP in the businessworld daspitethe barrien that she had to surmount to achieve suocess- gender,education and ethnic background.She attributes her su@essto hard work, intelligence and the ability to recognizeandseizeavailable opportunities. However,shehas failed to recognizethat an essential factor to her successwasjust plain and simpleluck Janet Lim succeededin a man's world, particularly in the banking and financial sector,becauseshebehaved like a man. The casedoes not have enough information about the reasonsbehind her decisionto get marriedandhaveachild.But Isuspect that her beinga marriedwomanwith a child would enableher to be more acceptableto the businessworld and to society in general.

Fortunately,Janet Lim realizesin in thebusinessworld time that success cannot be equatedto being successful in life. Sheintendsto spendmoretime with her family and friends. In fact she is planning to haveanother child in the future. She even plans to devote more time to religious activities that will certainly enrich her spiritual life.

The caseof Janet Lim is an examPle of the classicdilemma that Young women face in today's societY.Her decision may be the rule rather than the exception as the path to achieving a perceivedbetter life.

Socono Pemia-Veloso

THEASIANMANAGERO MARCH1989 53

AND Wtseoethatnrw?

TheClassot'74 Masterin Business Management'74 Acot, Leopoldo Jr. Santibanez MBM '74 Chief of Air Statf.A-2 PhilippineAir Force Mllamor Air Base PasayCity, Metro Manila Tel. 8320964/8321s71 Ahmad Abid Abidin MBM'24 CommercialManaoer LembagaLektrikN-egara 59200KualaLumpui Malaysia Tel. 2745566 Alampay, Francisco Deacosla MBM '74 TechnicalAdviser Wigo,P.T. 2nd Floor,Tifa Buildino Jl. KuninganBarat26,iakana Indonesia Albert, Antonlo Jr. Araneta MBM '74 President VIA InsuranceComoanv 202 SwallowDrive,Greirnmeaoows OuezonCity, Metro Manila Tel.721cn21 Andrada, Oscar Rendon MBM'74 ParishPriest Parishof our Lady of Montserrat Gran PlainsSubdivision Jaro, lloilo City, lloilo Angtuaco, Enrico Emmanud Chua MBM '74 Professor Ateneode ManilaUniversity LoyolaHeiohts Qu-ezonCiil, Metro Manila Tel. 982541i99731 1 Alendido, Roberto Adorable MBM '74 ManagingDirector Fign ^9qpgliqHotdinss (phits.),Inc. Suite210,M.S.E.Buildino AyalaAvenue,Makati,Mjtro Manila Tel.8160711/8160718 Ballecteros,Edilberto C. MBM'74 Managing Director OasianDbsigns,Inc. 339 Burgos Street Mandaue Citv at3it. Cebu T€1.i"/{88 Bernardo-Sibal, Ma. Teresa MBM '74 Mce President& Treasurer PhoenixEducalionalSystems,Inc. Gro^und-Floor, Dolmar 6uildin{ EDSA,Quezon City, Metro Ma-nila Tel. 984327 B-uonavcntura,Elsa de Jesus MBM '74 Manager,Hong Kong Branch NedertandscheMiddenstandsBank 25lF, Connauqht Center Cenlral Hong Kong Tel. $266(81 Callmlim, Pedro Nepacena MBM'74 legional TechnicalDirector,Reg. lV Dept. of Environment & Natlraliesources De Los SantosBldg.,8Oeuezon Avenue Quezon City, Metrd'Manila Tel.732gthn21m1

Campo_s,Danilo Cabigon MBM'74 SenrorPartner Famador,Campos,& Baquia Law Offices Suite105,SRCBuitdino OrtigasAvenue,San Ju-an,Metro Manila Te!.721743€ Canlae, Oecar Suazo MBM '74 Armed Forcesof ihe philippines 91qp Aguinatdo,Quezoi bity Tel.721gfi)l Caringal, Junie Mangaset MBM ,74 utrector UnitedTankering - Corporation ErmitaCenter RoxasBoulevard,Manila Tel. 590771 9.aslell8ne!, Edmundo Espiritu MBM'74 Markham,OntarioL3p6H7' Canada (416)4716363 Chandran,P.V.(MBM'74) President ChemoilCorporation 3 EmbarcaderoCtr., Suite 1g6O San Francisco.

CA94111

u.s.A.

Tel. (41s)9563834 Chalerntantanakul,Vlsit MBM '74 MarketinqManaoer B GRIMM-&CO.FOP 1&13/Phetburi Road Bangkok10310 Thailand Te|.2524@1 Chua-Chiaco,FrancigcoTan MBM '74 Sr. DivisionManager,Corporateplanning Ayala Corporation 7th Floor,MSE Buildino AyalaAvenue,Makati,iletro Manila Te|.8102031 Claudio, Tomas de Loon MBlil 't4 Manaoer C,P, fuq9rg TradingCompany 64 Sen. Gil J. PuvatAvenue Makati,Metro Mdnila Te|.862063 Corpus, Luis Oben MBM'74 President CormaconGroup TabacaleraBldg.,9OORomualdezStreet Paco.Manila Tel.5O8O2G47 Dalor, Juanllo Kawahara MBM '74 Administrator DEC IndustriatAuthority lI lv_l Tel.8181338 Dayrh, Rafael N. MBM'74 114C. BenitezStreet,BF Homes Paranaque,Metro Manila De Leon, Anlonlo Gonzalez MBM'74 Asst.GeneralManaoer PampangaSugar 6v't. Co., Inc. 226 ReginaBuitdins Escolta.Manila Tel. 404551/408637 De Luzuriaga, Gerardo Ruiz MBM '74 ExecutiveVice President SIJ Stores Corporation SM Shoemartlioito ValeriaSkeet, lloilo Citv. lloilo Tol.79807t70196

MANAGERo MARCH 1989

De Veyra, Rufo Atvarado MBM '74 Chief, ManagementDivision Departmentof NationalDefense Office of Asst. Secretary-Controllershio 9qnLp_4gyLq"loo,EDSA Quezon City, M,tr,t.

Tel. 701936t21gfi)1 De lo Cruz, Ronnle Cueva MBM'74 Assistantto the President Top Service,Inc. 1505M.H. del PilarStreet Ermita,Manila Tel.587O54 Dy, Vermont Ty MBM'74 Vice President GrandWood Center (Phils.),Inc. HillcrestDrive Pasig,Metro Manila Te!.673187/6731941 Emasithl-Toaomboon,Jirapar MBM'74 Professor ThammasatUniversitv Facultyof Commerce & Accountancy Bangkok Thailand Te!.2216111 Estrellas,Agrlpino Jr. N. MBM '74 President ..19.-l,l"gfiDevelopment Corporarion #19 13th Street,New Manila QuezonCity, Metro Manila Tel.79S4O|7210827 Feroz Khan Hussain MBM '74 3_JalanSS2?20, DamansaraJaya 47400 PetalingJaya, Selangor Malaysia ff]-7184634 Folas, Josellto Cenlzal MBM'74 President Sell All Commodities 26 West Maya Street, Philam Homes QuezonGity, Metro Manila Te|.989962 Friedland, Daby MBM '74 P.O.Box 10116BeverlyHills,CA 90213

u.s.A-

Fuangfu, Chansak MBM '74 Vice PresidenUManaoer Bangkok Bank Limite?

333 Silom Road Bangkok 105O0 Thailand T61.2354124 Garde, Flolante Calaeane MBM '24 110Terry Cresccnt Markham.Ontario Canada Gaaton, Andrew Zayco MBM '24 Asst. Mce Pres./Mat.-SalesDirector San Miguel Corporation Feeds & Livestock Division AyalaAvenue,Makati,Metro Manila Tel.819416285s114 Gendrano, O3ca. Angulo MBM '74 ForestrySpeciatist, AE-DiAEB Asian DevelopmentBank 2330 Roxas Boulevard Pasay City, Metro Manila Tel. W3V51a344444

'74 Gimencz,Thomn Aguller ilBil #38 MilitaryCut-OffExt. BaguioCity,Benguet Tel.442-3665 Gonzal6, Eurblo Gelvcz MBM '74 Chief ExecutiveOfficer/Director PanAsiaticTravelCorporation 3rd Floor,S&LBuilding RoxasBoulevard.Manila Tel.5210760/5213697 Grey,GaryAlmezenllBll '74 PlanningOtficer,LendingServices UnionBankof the Philippines PasayRoad Makati,MetroManila Tel.85d)11/86938{ Guadlrremr, Jurn Crrlor J. lrBM '74 Dept.

Manager,MaterialsManagement NationalPowerCorporation BIRRoadcor.AghamStreet Diliman,QrezonCity,MetroManila Te|.9213382 Ho Chun,Ch.rlc. llBt'74 SalesManager,HawaiiArea EliUlly& Gompany 6838NiumaluLoop Honolulu,Hawaii96825 U.S.A. Tel. (808)39168444 Ho WengWe[ fian llBll '74 CommercialManager,Siemens Litronix(M)Sdn.Bha. BayanLepasFrecTradeZone 119q)BalranLopas,Penang Malaysia fel. Q$${{Q'f Gcrerdo B.yot llBt Javellane, 'T4ExecudwVics President MctoriasMillingCo.,Inc. VMGBdg., 165lrgaspi Streot LogaspiMllagc,Makati,i/btro Manila Tel.8158101/8192833 Javlcr, Enrlco Yonzon llBt ?4 Consultani BairamEnterprisos Limited 414WndsorTowerCondominium 163LsgasplSt.,Makati,iletro ManilaTel. 8183495/8181d/6 Jaync, Robdto Buht o tlBll'74 Sr, Vlcc Proldctrt Flnencc Int'|.ContainerTermindSeryices,lnc.

MIGT,l.lonh Harbor Manila Tel.27g71-75 Julhrc-Lnchno, lllrle Undr llBll'74 Mco President,Corplan& llarketing l,lationalAgdbusinessCorporation 16thFloor,Producere BankBdg. Paseode Roxas,Makati,i,l€tro Manila Tel.818864{/8188510 Kcrker, Dft.nrnl.y Khrndcno llBM'74 CreneralManagcr \EGFRU P.O.Box4610 tagog Nigoria Klm YongeChenJurp llBll ?4 Cieneralllanager Kimbellnternetional P.O.Box48, Oliman QuczonC)ty,Metrollanila Te|.9210315 Kochhrr, Elbem l|Bl| ?4 ResidentMcc Residcnt SaudiArnericanBank P.O.Box833, Ryadh SaudiArabia Tal.477477

[. Ros!, Fcrmln Aqulno llBt'7tl Professor Asian lnstitute of Management Paseo de Roxas Makati, Metro Manila Tel.87lo11-19 Ugaya, Fldellno Floro lrlBll'74 GenoralManager BangkokWeavingMills Co, Ltd. 879 Bangkok-NonburiRoad Bangkok 108(D Thailand Te|.585591$8 lJmon, Edgardo Lucar MBM'74 President lntex Marketing & DevelopmentC,orp.

Room 307, ITC Building 337 Sen. Gil J. PuyatAve.,Makati,M.M. Tel. 859638/81s350i| lomot n, Bonlfeclo Jr. C. MBll'74 President TransnationalShipping ServicesC.orp.

6th Floor, Delgado Building Port Area, Manila Te|.479861 '74 Lorenzo, Ceclllo dc Borla MBIII Division Manager,Agribusiness Atlas FertilizerCorporation Tuscan Bldg., HerreraStreet Makati, lt/letroManila Tel. 85697U8O15f26 lrtm Ngow-Chel, Bclnard MBll'74 Manaoer Lumbios Woodcraft Sdn. Bhd. 174"Jalan Jintan Taman Supreme,56100KualaLumpur Malaysia Tel. 0&9309167 Macmang, Jooph Pll llBlt'74 JMX IntornetionalCorporation 9601 Arl€ta Avenue Meta, CA91331

u.s.A"

llrmbal, RobortoGan llBll'74 Partner SyGip,Gorres,Velayo& Company SGVBuilding,AyalaAvenue Makati,MetroManila Tel.819301 1 llarllncz, Albcrt Fomildcz llBlul r74 DvisionChiot,l.T.F. WorldBank 1818H. Stroot WashingtonD.C. U.S.A. Tef. (202)473879 llayuge, Remor Luccro llBtl'74 ExecutiwMce Presidenl ElizaldePainland Oil Faclory,Inc. tlo. 40 DominguezStreet Malibay,PaeayCity,M.M. Tel.&1i17179 ilbr, LuL Prrcdo mBm 74 Presidenl TrainingRluc. & Devt.Consultant,Inc. 9{ JuanaOsmenaStreet CebuCity, Cebu Tc|.5366053661 llohemmed, Dlonc Jr. Bclhr llBt 74 President PinoyExpressBrokerageCorporation &1 26 Skyfrcight&lilding NinoyAquinoAwnue,Paranaque, M.M. Tol.8i13190283i11896 llohan, T. R. ilBl| 74 Presidentand GeneralManager GeneralElieselPowsrCorporation (XXXSouthSuperhighway Makati,lVletroManiia Tel.8182750/8ss)s$59

Hontrmryor, Rcnrto Rlvcrr llBl{'74 ExecutiveVica President Purefoods Gorporation Bo. San Roque Marikina. Metro Manila rel721th21n2M11 '74 Morco, Gualbcrlo Serrano llBM I lsidro San 44 P. Gomez Stroet, Goncepcion, Marikina, lvletro Manila Te|.9478869 Ongpln, Antonlo Coeln ilBll'74 Market Director. Korea/Taiwan/FarEast Del Monte Philippines,Inc. 19th Floor,Citibank Building Pasoo de Roxas, Makati, lvbtro Manila Tel. 8107501/8107@1 Pagcalhragan, Darlo Jlmencz llBll'74 Projoct Manager

u.s.A.r.D

Center RamonMagsaysay RoxasBoulevard.Manila Local2418 Te|.5217116 Palma,Fenc Vlllar MBM '74 President WorldDevt.Corp.

PRSFoodsCorp./Realty AnitaBldg.

CircleOutlet,13OO QuezonAvenue,OuezonCity,M.M. Te|.994989 Paullno.Anlonlo Querol MBil '74 Admin.Otficer,Phil.ConsulateGeneral &partmont ot ForeignAffairs 447 SuttorStreet CA941()8 SanFrancisco, U.S.A" Tel.(415)4i132078 Rrmoo,Porllrlo Porcluncuh ItBt'7tl 355 F. RamosStreet CebuCity,Cebu Tel.*227 Fho Boo Ho llBM'74 Protessor, Collegeof Commerce SogangUniversity G.P.O. Box1142 Seoul Korea Tel. (02)716@20Ext.3Gl Srlrzrr, ReyneldoColcndrlnollBll'74 President Inc. ProiectManagemont Consultants, ?F, FacilitiesGentreEdg. 548ShawBlvd.,Mandalulong,M.M. Te].78@82local 54 Sanlol, Amendo toptz llBt{ 74 1731Wllow Point Court l-odi, Caliiomia95242 U.S.A Scrne, Clrllo B. llBll 74 A..t lrlrcctor, Tcchnlcrl Scrvlccs &rreau of ForostDovolopmont MsayasAvenue,Diliman QuozonGity,iletro Manila Tel. 964826/963414 Slbd, J. Emmrntlcl Fodilgucz llBll'74 President PhoenixEducationalSystems,Inc. Aemar'stlor$ Mall&rilding MakatiCommerdd Center.Makati.M.M. Te|.8172@ Slncnrc, RoLndo Brybn llBl{ 74 President EstanciaDevelopmentCorporation Estancia lloilo Tel.828il307(Mla.) Slron, Gcodlclo Torrcl llB[ 7[ Asst.Mco President,CorporateAffairs InsularUie Assurance Gompany InsularUfe Building 6-181AyalaAvenue,Makati,M.M. Tel.8173O51

THE ASIAN MANAGER O MARGH 1989 55

Srlnlvrl, Komrndur llBll ,24 Manager, Technical Development IDL Chemicals Limited Los! A"S No. 1, Sanatnagar (tE) p.O. Hyderabad 500 018 India Tel.?fp'.71-74l2fo'7?

Suatcngco, Ffrncbco E3tobrn llBM'74 Marketing Manager Bio Flesearch,Inc. 8362 Sucat Road Paranaque,M€tro Manila Tel. 8275120/82751s.9 Teo, Foberto Uy MBlf,74 President GT Processing,Inc. 84 Guerrero Stre€t Davao City, Davao del Sur fol.73924n16F,7 Tml llao-Shlung, Edward MBll ,24 Special Assistantlo Chairman FU lGroup 14th Floor. l.lo.22 Ai Kuo E. Road, Taipei Taiwan Tel. 02 3973711 Teng llan Kcung, lllchael MBtrl'74 General Manager Far East Bank Limiiod 31st Floor, Shun Tak Centre 200 Connaught Road, Central Hong Kong Tel. $&598823 Vencanch, Antonio Magno MBM '74 General Manager Venimex lnternational Suite910,9/F, PBCOMBuitdinq Ayala Avenue, Makati, Metro Minila Tel. 8193365/8105214 Villarooa, Lco Ylagan [lBM ,24 Asst. Vice Presidenl, Svstem Phil.-Telegraphand Teiephone System 106 Alvarado Street Legaspi Village, Makati, Metro Manila Tel.81506ftil Vlllaroca, Ttdco Guenzon ilBM'74 President Marita Farms, Inc. #19,6th Street,CapirolSubd.

Bacolod City, ltl,egrbsOccidental Tel.26@7 Vlllongco, Jclur Garcla llBlrl '74 Head, Marketing & lnventory Services Natural Resources.DevelopmentCorp.

11th Floor,Triumph BuiHino Quezo^Avenue, Quezon Ci!, Metro Manila Tsl.96E71s Wan Abdul Ghml bln W.n Ahmad MBM '74 Director/GeneralManaoer AntaraSteel Mills Son.-Bhd. P.O. Box 79 8.1700Pasir Gudang, Johor

Malapia Tel.07-51?0121 Wlnarlo,Vlnccntlur HBll'74 Director.Trainino Institutofor Mgt.-Education & Development JalanMentengRaya9 JakartaPusatIndonesia Tel.375309/3saf99 '74 !91 Un Tlong,DavldMBM urreclor lrvingTrustMerchantBank Ocean&.rilding ungapore T€1.5342998

Yaptlnchey, Raleel Gene MBM'74 Head, Marketing & Corplan Phil. National Construction Corporation EDSAcorner FlelianceStreet Mandaluyong,Metro Manila Tsl.79s6s2 Young, Roland Uy MBM'24 President Al.lAs]a^Capitdand Leasing Corp.

ZF, SyOiplaw-AllAsia Cent-er 105 Paseode Roxas,Makati.M.M. Te|.8182t43 Yulo, Jocc Lulr Jr. Udarbe ilBll '74 @tanorm Philippines,lnc.

2nd Floor, DVI Buildino 1fi)6 Pasay Road, MaFati,Metro Manila Tel. 8154136/81932(8 Afboo, Corncllo Calledo ]{lDp'74 Deceased Amurao, Alexir Reyec MDp'74 Vice President,LoSistics/Customer Serv.

CHEMPHIULMG 7th Floor,GhemphilBuilding 851 Pasay Fbad; Makati, Me-troManila Tel. 818871l Angliongto, Joce L MDp'74 Chairman Jl-A & Sons Flealfu.lnc.

P.O. Box 23O Davao City, Davaodel Sur Te|.78136 Arenete, Antonlo Jr. R. MDp'74 President Mara,lnc.

Araza Building, Paseo de Roxas Makati,MetroManila Tel.818O9z Arboleda, Joee lmperlal llDp'74 Mce President,Mktb./Gomm'1.Services Phil. Loqg Distance-TelephoneCompany Ramon Oojuangco Builciing Makati Avehue,-Makati. ' Meiro Manila Te|.8171970/81684S] Arcvalo, Alberto Jaclnto ilDp'74 Deputy Admistrator Ught RailTransitAuthoritv LRTACompound,Aurora-Blvd.

Pasay City, Metro Manila Tel.8323142 Avcnldo, Rogelio Madrld MDp'74 President Inphase Construction Gomoanv. lnc.

Celebrity Sports ptaza, Caditot Hitts na Dliman, QuezonCiW, - Metio Manila Tel.9ZrZ01951061 Azrrcon, Wlllred llarcellno ilDp'74 Mce President,Manufacturing Philippine Appliance Corpqra-tion Dr. A. SantoiAvenue Paranaque,Melro Manila Tef. 8285551/82N922 Baqufran, Meleclo Behran MDp,T4 Direcior, Technical/Enq'o.

- Services San Miguel Corporatioi sth Floor. SMPP C.cnter 109 Alvarado Street, Makati, M.M. Tel.8183126/81940m Bara, Andrer Jr. MDP'74 Mce President Carillon Corporation/BasaInd'1.Coro.

49t Aqtqn Building, Pasong Tamo' Makati, Metro Manil-a Tel. 819)811/880z6g

Bcfza,Ilomlngo Spanr nDp,T4 -Manaoer Proprietor/Genieral DSBEnterprises Nabua Gamarines Sur

Berrel, Lulr Jr. lrl. llDP'7rl 272 Bernardo Street Mandalulong, Metro Manila Blrondo-9aharlan, llary Lou ilDP'74 9 Ground Floor, Nah Hin Ftoad Kok Tin Mllage,Sha Tin, N.T. Hong Kong Cabanar, Agrlfino Sanchez MDP ,24 SeniorManaoer FrrstPhilippii'e lndustrial Corp.

8/F, Producers Bank Centre 8737 Paseo de Roxas, Makati, M.M. Tel. 8184459/81857,16 Catollco, Carlol Kanapl llDP'74 President GCC InsuranceCorporation Majalco Bldg., Benavidez Street Legaspi Mllage, Makati, Metro Manila Tel. 8181151/857806 Comfe, Jullan llcndozt t{DP'74 President Mount Management Corporation Room 401-8, ITC Building $n. Gil J. PuyatAvenueiMakati,M.M. Tel.871.3941873/-72 Dato' Long Ahmad llohd. Tahlr ilDp'74 ManagingDirector !9tnb3ga Ke_majuanNegeri Pahang 16th Floor.MenaraTeruntum 2500OKuantan, Pahang Malaysia Tel.0S505566 Davfd, Antonlo Nlcolat nDP'74 Partner-in-Charge, ISG SyGip, Gorres,Velayo & Company 6760 Ayala AvenueMakati,Meiro Manila Tel. 8193)11 De Guznan, Porfrrlo Jr. S. MDP ,74 Audit Partner $yQip, Gones, Velayo & Company 6760 Ayala Avenue Makati, Metro Manila Tel. 8193011 I)c Vera, Milagror M. MDP'24 President Elise Food Service AIM Cafetorium,AIM Building 123 Pas€o de Roxas, Makati;Metro Manila Tel.87/01 1-19 Dcverala,Angellco D. [lDP'71 Area Manager,Metro Manila 13 CollegeAssurancePlan Phils.,Inc. 3rd Floor,CAP Building 126AmorsoloSt., Makati,Metro Manila Tel. 8176s86/88s690 Dizon, Jceuc Tagulao ilDP'74 Cavalier'sVitlageAntipolo, Rizal Domlnguez, Leonardo R. MDP'74 Director,Admin, and Finance $nitary Wares Manufacturing Corp.

Santolan Pasig, Metro Manila Tel.9479137 Eugenlo, Bonlamln ll. ilDP'74 Department Head, Manufacturing Resins,Inc. Bo. Ugong Pasig, Metro Manila Tel. 673595?67359s3 Ferreol, Miguel Velasco M. MDp ?4 Deceased Flder, Gregorlo Auatrla llDP'74 Asst. Geneial Manager, Gold Operations Benguet Corporation 12 San MiguelAvenue

+lTii[[Bp,

Metro Manira

Fortuno,Arnold FullentDP'74 EasternMsayas Asst.Mce Pres./Mgr., NationalBank Philippine cornerBrionesSts. Jakosialem OebuCity,Cebu Te|.95124 '74 Garchltorene,Vlclorh Plncda MDP Consultant MeralcoFoundation,lnc, Realty@rp. Building ShawBlvd.,Pasig,M.M. Tel.673886?6738865 culnto, RcyneldoJ. llDP'74 2OMasikapStreet QuezonCity,iletro lilanila Tel.921rl419 Gunawrn,Arlc. tDP'74 Partnor & Co. Drs.Gunawan,Prijohandojo 7th Floor.ChasaPlaza Jl. Jend.Sudirman21,Jakarta lndonesia Guzon,Wilfrcdodc Lcon MDP'74 6 Ma.ElenaStret, CarmelSubd.

Project6, OuezonCity,MetroManila Tel.96z1628 Hallll,Con3t.nclo Jr. V, tlDP'74 President LifecareProducts,Inc. G€ Int'|.Exec.Ctr.,CitylandCond.2 ValeroStreet,Makati,MetroManila Te|.8187991-94 Hernandcz,ConradoAndal MDP'74 Sr.Mce Pres.,Operations lnc.

Phil.Global@mmunications, Paseode Roxas PhilcomBuilding,8755 MakatiMetroMenila Tel.8170196/8162851 Hllarlo,JooeAcayanMDP'74 Director RNFerrer& Associates sth Floor,PadillaBuilding EmeraldStreet,Pasig,MetroManila Te|.6731381 HuangVcn-YongllDP'74 BoardChairman BESEngineering Corporation EastRoad 320Chung-Hsiao Sec.4,Taipei Taiwan Tel.02-7521111 lgnaclo,Elnctlo Cruz llDP'74 Manager,Managoment Servicss ECCOEngineering Co.,Ltd. 19thFloor,BeverlyHouse 9$107 LockhartRoad.Wanchai HongKong Tel.$275252 Inocando,lorcnzo D. MDP'74 Manager Sr.VicePresidenUPlant DowellContainer& PackagingCorporation 92 E. RodriguezJr. Avenue Ubis,OuezonCity,MetroManila fel.7215271-73 Juanlllo,SlmconJr. NolagcoMDP'74 Manager,ActuarialDvision FilipinbsUfe Assurance Company SthFloor,FilipinasUie Building AyalaAvenue,Makati,ltil€itoManila 1 Tel.816051 Kue Chyc Gutn, SlmonHDP'74 Remisier Ongand CompanyPte.Ltd. Ong Building 76 ShentonWay Singapore Tel.2211461

l,.alchandr/o Gulabral ilDP'74 Chief Auditor National Electricity Board 129 Jalan Bangsar 591@ KualaLumPur Malaysia Te|.032745566 Lcc Sung Talk MDP'74 Professoi/Dean,BusinessManagement Jeonju University 1200,3 Ka Hyoja-Dong Jeonju City, Jeon Bug Korea Tel. 06526501 1 Lcong Gek Nol, Evelyn llDP'74 Managing Drector Standard Chartered Finance Ltd. Garlton Bldg., 9OCecil Street #01-01 Cecil Court Singapore Tol.2221355 Um, Narzallna Zeldlvar ilDP'74 Undersecrelary Dopartmentof Tourism Agrifina Circle, T.M. Kalaw Street Ermita,Manila Te|.522194 Locrln, Rafael Monlellbano llDP'74 9690 Kamagong Str€et Makaii.Metro Manila Tel.854129 lombo., Rogello Cruz ilDP'74 ManagingDirector,@nstr'n./SteelF.G. Atlantic,Gulf & PacificCo. of Manila,Inc. 351 Sen. Gil J. PuyatAvenue Makati, Metro Manila fel8171ffi,l878o71 Lopcz, Gll Manarang MDP'74 Vice PresidenV@mpkoller BPLFamilySavingsBank 109 Dela Rosa St. cor. Paseo de Roxas Makati, Metro Manila Tel, 8176162y812936 Mabanta, Josc Franclsco MDP'74 Manager, Technical Services Commissionon Audit COA Building,CommonwealthAvenue Quezon City, Metro Manila TeI.995603 Malaamal, Fodolfo Alcos MDP '74 Principal Atenoo de Davao High School Matina Mac-ArthurHighway Davao City, Davao def Sur Tel.7473€ llananghaya, llarlo Tlongson ilDP'74 Head, Audit Division lll SyGip, Gorres,Velayo & Company 67@ Ayala Avenue Makati, Metro Manila Tel.819in11 llehla, Wllllam Norman MDP'74 Managing Directol l,,lewageSendirian Berhad flo. 25M Jalan 5521/568. Damansara Utama 47lt00 Petaling Jaya, Selangor Malaysia fel.717017217'183479 tcrcado, Lcopoldo llanucl B. *lDP'74 Pastor Corpus Christi Community Foundation No. 70 V. Gullas Street Oebu City, Cebu '74 llcrcado, llarhno Jr. N. llDP Mce President- Actuarv Insular Life AssurancsCo., Uta. Cfne) 4/F, Insular Life Building Ayala Avenue, Makati, M.M. Tcf. 817305U8171270

'74 llondencdo, Arturo Allcdan [lDP Asst. Mce President,Logistics Filipinas Life Assurance ComPanY 4/F, FilipinasLife Building AvalaAvenue,Makati,M.M. T;,1.8160511/81(X}168 llunoz, J. Anlonlo Ellzaga liDP'74 Consultant Benouet @rDoration SuitE toog, State Financing Canter Bldg.

OrtigasAvenue,Mandaluyong,M.M. Tel,7210/,43|7210d'3/.

Munoz, Vlcentc Nlcol MDP'74 Consultant B€nouet Corootation StatE Financi Oenter &rilding Ortigas Ave., Mandaluyong, Metro Manila ral.721M43|721UU Olr Sc Hoc ilDP'74 Manaoino Diroctor old Stir dompany, Ltd. 2OYoidodong, YoungdungPogu Seoul Korea Tel.78$3674 Orllz, It nlel Con.tanllno MDP'74 Exec. Vice President La Salle College Bacolod City Negros Occidental Tel.2€,278 Paecual, Abraham Flgueroa [lDP'74 ExecutiveMce President Pascual Laboratories,lnc.

817 EDSA South Triangle Quezon City, Metro Manila Tel. 951911/9222382 Pcnae, Godofredo Pcrcz MDP'74 8 Sajama Strset, Filinvest Quezon City, Metro Manila Tel. 963110 Percz llq Tagle, Juan Glmenez MOP'74 Sr. Asst. Vice Pres./PlantManager San Miguel Corporation Mandaue Glass Plant Mandaue City, Cebu Te|.82671 Portaclo, Blonvonldo de Leon MDP'74 Vice President,Accounting Div. Phil. Long DistanceTelephoneCompany Sth Floor, Ramon Cojuangco Building Makati Avenue, Makati, Metro Manila TeI.8168316/8175?!0 Pooadao, loopoldo Jr. Jamlar IiDP'74' President Meralco Industrial Eng'g. Services Gorp.

Tech. Services Edg., Meralco @nter Ortigas Avenue, Pasig, Metro Manila Tel.721949n21W48 Famor, lilanucl E. llDP'74 General Manager W.R.Grace (Phils.),lnc.

Canlubang Laguna Tel. 734{l Roccler, Eduardo Gulron MDP'74 Operating Vice President United Laboratories,Inc. 66 United Street Mandaluyong, Metro Manila Tel. 782696282601 Sabalburo, trnucl Antonlo lrlDP'74 @nsultant National Steel @rporation 377 Sen. Gil J. Puyat Avenue Makati, Metro Manila Tel. 8162036/831719

Sameon, llclfin Beutlrte llDp,74 Pr€sident United Laboratories,Inc. 66 Uniled Street Mandaluyong,Metro Manila Tel. 7216501 San Pcdro, Goorgc Grtuicn llDp'74 GeneralManaoerDMC Construdion EquipmentResources, lnc.

'1881 Pres.QuirinoAvenue Pandacan,Manila Tel.5O4Al1Local 58 Semplo, Reynaldo F. ilDp'74 Direc-tor,Chemicals Deot.

CyanamidPhilippines,inc.

4th Floor,SavilleBuildinq 2787 PesF,ode Roxas, Makafi. M.M. Tel.85297679 Strcogan, Hcrnando O. MDp'74 President/General Manaoer Rhine Marketing Corporition MacArthurBoulevardcor. V. Sotto Street Cebu City, Cebu Tel.717459171d44 Supangco,Jocc H. tDp'74 Deceased Syqula, Gor.rdo Teotlco MDp '74 1439-FSan Marcelino Street Ermita,Manila Te|.5216210 Tan Poh Lln ltlDP'7{ Orchard Point P.O. Box 432 Singapore Te1.23519O8 Tan, fgnaclo Jr. B.ylon ilDp,74 Mce ftesidenUGentiral Manager United Arnerican Pharmaceutlcals,lnc.

750 Shaw Boulevard Mandaluyong,Metro Manila Te|.7216501 Trnlu, Lconardo Ongl.tco llDp'24 Q1 V1ce.PlesjdenVChiefOpering Officer Sky Freight Brokeraoe,Ini. Slqlreight Btdg.,NinioiAquino Avenue Sto. Nino, Paranaque,'MeiroManila Tel. 8317092loc. 3'Z Valen, Antonlo Srrroza MDp'74 Mce President National Steel Corporation iligan City

Lanaodei l.lorte Tel.6932281€4 WanAll bln Wan&rfar ilDp'74 DeputyGeneral,SpecialServices NationalEloctricifuBoard 129JalanBangsa?

5910 KualaLumpur Malaysia Tel.092745566 Yen Sal Chow l|Dp'74 ManagingDrector Kumpulan TegasSdn.Bhd. s(B, Su-bans Jaya !Q,_{gt1n.S$t

ii"ffiff*"

nnJaYa' selansor

Tet.73322617332034 YoonKhal Ycng MDp'74 GroupPersonnel& TraininoManaoer Nat'|.Semiconductor Groupof Coirpanies BayanLepasTradeZone Bay.anLepas,11900penang Malaysia Tel.Ol-887211

Tttala, Armrndo D. [lDP'74 Mce President GTI SportwearsCorporation E. RodriguezJr. Avinue Ext Libis,Murphy, QuezonCity, Metro Manila Te!.7219221-32 Agcaolll, Orwaldo lXmay. BMp'74 AssistantSolicitor Generai Office of the Solicitor General OSG Bldg., 134ArnorsoloStreet LegaspiVillage,Makati,Metro Manila Te|.8186301-18 Anacln, Gaudencio plaza BMp'74 OperationsManager,Bus./Corp.Dev't.

Atlan-tic, Gulf & PacificCo. of Manila,Inc. 351 Sen. Gil J. PuvatAvenue Makati,Metro Ma;ila Tel. 864O33874g 1| 87 8f,7,l Aqulno, Edmundo Blclerre BMp'74 11,16Stud Road Rowville3128, MctoriaAustralia AllGnzr, Antonlo T. BMp'74 InternalAuditor,InternalAudit flfgqtic Gulf & Pacific Co. of Manita, Inc. 351 Sen. Gil J. PuvatAvenue Makati,Metro Ma;ila fel.878o 711874541 Balderar, Feustlno Jr. lachlca BMp,74 Asst..General Manager, Manufacluring Allied Metals.Inc. {@ QuirinoHighway,Novaliches Quezon City, Metro itrtanila Tel9f/578€,t9f)2222 Brutlrta, Eufronlo Bernardo BMp'74 Instruc,tor Feati Universitv Feati UniversityBuildino Sta. Cruz, Manila Te|.,185951 Blanco, Vlctorio Darz BMp'74 Dvision Manaoer Pacilic Farms,lnc.

Taragoza,Bolinao Pangasinan Tel. 9228165/995811 Cedlz, Dallsay Cruz BMp'74 Vice Presid_ent, Fund Management Phil. Long Dstance TelephSneCompany Fbmon Cojuangco Building Makati, Avrinue,tritakati,Mitro Manila Te|.8168121 Caplrat, Joae Bulaonq BMp'74 Dept. Manager, Industril products Gulf {Pacific Co. of Manita, Inc. |!f!ti" 2305 Pasong Tamo Extension Makati, Metro Manila Tel. 8s7976/8s249it Ceela, Ellrco Pcna Bilp'74 Deceased Catajoy, Juvenal y.p BMp'24 Consultant Y. Zobel, Inc. g/o Sunshine Hatchery,Tiza Street lal {_oseMllage, Box-asGity, Capiz Te|.4239 Cordero, Romeo Gallardo BMp'74 President Techmaster Construction Corporation 151 General Malvar Caloocan City, Metro Manila Tel. 3619320/3619296 Cudlamrt, Nelton Barlnkl BMp,t4 Prosidenvceneral Manaoer Geosupply Corporation Room 201, Mer-cedesCondominium 1051-Melropolitan Avenue, Makati, M.M. Tel. 819O493/8162A92 Cueya3, Paclfco Brlonec Bllp'74 Deceased

De Vcre, Joac Caburlan BMP '74 Gonsultant Reza Pacific International,Inc. Top Side Level, T#A, Mile Lons Center Amorsolo Street, Makati, Metro Manila Tel.8192710 Dc h Cruz, Rlcsrdo Nlcolae BMP'74 Regional-TechnicalDirector, Region 5 Bureauof Lands Legazpi City, Atbay Bicol Tel.4239 De la Pena, Vlctorlno Jr. F. BMp '74 PresidenVGeneral Manager Dela Pena Maclang Realfu& Dev't. Coro.

14 Tyron€ Street, Tierra Pi.rraSubd.

I"l{qnS Sora, Quezon City, Merro Manila Te|.9217n1 Del Rosarlo-Alvarez, Maricar BMp ,24 Head, Computer Department ManilaC.O.D.DepartmentStore General Bomulo Street. Cubao Quezon City, Metro Manila Te|.9213181 Delcalzo, Juan Jr. Marlano BMp'74 Manager,Flegion3 Social Securitv Svstem 355 Sen. Gil J. Pivat Avenue Makaii.Metro Ma;ita Tel.885719 Esplno, Alex Demafeliz BMp'14 President

U,tt"'XT,[:,*'"n" Bacolod City, Mgros

Occidental fel 22313 Faustano,Benlamln S.nto. BMp,74 Vice President. Realtv Asian Savings Bank Aealtv Crorooration 6/F, FortunaBldg.,LegaspiStr;et Logaspi Mllage, Makati, Metro Manila Tel. 8150594/818(X6O Fong, Romeo Davld BMp'74 Asst. General Manaoer MarinaSales.lnc.

Fleliancecorner Brixton Sts. Pasig,Metro Manita Tol.673162&31 Gaunl, Alberto Selva Bttlp'74 Factorv Manaoer @Tporation of rhe philippines WpFqg ' ' 596 San Francisco Street. Malinta Valenzuela,Metro Manila Tel.35Affi7 felp, Romeo Cabcro BnP,74 President Rocis, lnc.

Citylandlll Condominium,EstebanStreet Legaspi Mllage, Makati, Metro Manila Tel.8763q/U52727 Javler, Jote Joceon g$p,74 Gamiling'sMerchandise 108 Jose Abad Santos Street San Juan, Metro Manila Tel.78'1745 Joecl, Leonardo Palome Blnp,74 Dvision Manager, Operations Benguet Corporation 12 San MiguelAvenue Mandaluyong,Metro Manira Tel. 7216801-3s Klntanar, Petcrno Jr. B. Bllp ,74 President Country Uveslock Development, Inc. Suite rO1, Luym &.rilding'

greer,CebuCity,@bu {u3r1!-u4q Tel. 9024O/9114s

Limoenco. Manucl Conul BMP'74 Mce?resident,Engineering& Consulting Meralco Genter, Ortigas Avenue fe1.721977 Local @66 Lugay, Carlor C.3tlo BilP'74 Exec. Asst. to the Div. Mgr., Treasury San MlguelCorporation ,lO San Miguel Avenue Mandaluyong,Metro Manila 1el.7223OOO|72W Mangillt, Ambroalo BllP'74 Vice President.New York Branch Bank of the Philippinelslands 805 3rd Avenue,2SthFloor New York, New York 10022 U.S.A '74 Maraelgan, Ccrer Sr. V. BMP Proprietor Margan Gorporation 184 Mabini Street San Juan, Metro Manila Te|.797058 Medenllla, Manuel Dlamanl€ BMP'74 Teacher,High School Dept.

FilipinasCollege Mauban Ouezon Mercado, Hcrmlnlo Arcoga gMP'74 Manager,FinancialPlanning Caltex (Phils.),Inc. 540 Padre Faura Street Ermita,Manila Tel.5213501 Obnamla, Amador Talabong BMP'74 General Manager fuuila Foods,Inc. 957 Concopcion Aguila Street Ouiapo,Manila Te|.400916 Pacheco, Danlc Ecqucrrr BMP'74 President Cubix Telecommunications & Electronics Corp.

Room 201, JacksonBuilding 926 Pasay Road, Makati, Metro Manila Tel. 86E45218177O24 Paccual, Jooc Clcmcnlc BllP'74 101AguirreAvenue,BF Homes Paranaque,Metro Manila Te|.8012933

PIlao, Rlcardo lledina BllP'74 Production Manager PhilippineJournalist,Inc. JournalBldg., RailroadStreet PortArea.Manila Tel.496324 Pllapll, Ma. Lulga Ramoe Um BMP'74 President Switt Air, Inc. West MaintenanceArea, fumestic Airport Pasay City, Metro Manila Te|.8322558 Plneda, Amando Ereae BlilP'74 ll 47 Jasmin Street,Merville Tanza, Navotas,Metro Manila Tel.23O65O '74 Pondoc, Sofronlo Jr. C. BMP Managor, Lubricant & Technical Services Caltex (Phils.),Inc. 5zl0Padre Faura Street Ermita.Manila Te|.5213501 '74 Rocto, George Martinez BMP Alabang Mllage 216 KalirayaSt.,Ayala Muntinlupa,Meko Manila Tel.842O3O3 Rcyec, Narclso lll L BMP'74 Manager,ManagementServices BusinessWorld Corporation 4th Floor, Diamond Motor Bldg.

Ortigas Avenue, San Juan, Metro Manila Te|.799291 Schala lrenc Poncc BMP'74 E.702 Brentwood Drive Spokane, WA 99208

u.s.A.

Taylo, Celeo C. BMP'74 Deceased Umll, Bolando Corpuz BMP'74 428 Inpine Place, La Verde California91750 U.S.A (714) 59994{b Vrnn€trr, Kalaya BMP'74 Manager,CorrespondentFlelations Thai Farmers Bank 400 Phaholyothin Road Bangkok 10,lOO Thailand Tel.2701122 Vhug, Evenclo R. BMP'74 Lubao Pampanga Tel,324

Yu, Miguel Teng BMP'74 GeneralManager MastersAutos Rebuildor ShoP 79 McMhur Highway Galoocan City, Metro Manila fel. %22629.1512532 Abesamls, Edgardo O. ATC'74 SeniorMce President Int'|.GontainerTerminalServicer 116 Rada Street,LegaspiVillage Makati, Metro Manila TeI.8162186 Callngaean, Pablo C. ATC'74 Director. Resoarch/Statistics Orient Aitlines Association Standard Bldg. cor. Pasay Road Paseode Roxas, Makati, Metro Manila Te|.8190151-54 Daloc, Benlgno L ATC'74 Director.Audil PhilippineAirlines,Inc. 2lF,PAL Bldg., LegaspiStreet LegaspiVllage, Makati,Metro Manila Tel.8180111 loc 215 Gordon, Ferdlnand ATC'74 Asst. Mce Pres./Director,Flight Opns.

PhilippineAirlines,Inc. Gate 9. Nichols Air Base Pasay City, Metro Manila Te|.8331,108 Oulla, Ma. Angele L ATC'74 ?f,21 M. Layug Street, San Miguel Village Makati. Metro Manila Te|.855591 Ramlroz, Salvador P. ATC'74 Exec. Vics PresidenVGeneralManager Thomas Cook (Phils.),lnc.

Ground Floor,PSBankBuilding Ayala Avenue, Makati, Metro Manila Te|.8163701-10 '74 Saba, Purlto S. ATC Director, Marketing Services PhilippineAirlines,Inc. Vernida Building, Legaspi Street Legaspi Village, Makati, Metro Manila Tel.8178562 Zapanra. Avcllno L ATC'74 Asit. Mca Pres.. Sales/Services-Phils.

PhilippineAirlines,Inc. Sth Floor,PAL Building Logaspi Stroet, Makati, Metro Manila Tef.818O111/8173212

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