The Asian Manager, March 1993 Issue

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ASIAN INSTITUTE oF MANAGEMENT

th. A.i€n Ma..g.t - A Pubrcalor ol lhe AsEn l.sl4'n. 6f M ad.'ld md lhe F€o6En|onc/ th6 Asi4 hstilul. or Mdaaenenl AlumniAssociallos

1993 MARCH/APRIL

Publlahor FelipeB. Alfonso

HetWay 4 Entreprcneurs:

Edhodn4hlef MichaelA. Hamlin

S.Licuanan ByVictoria l\"lanagement in Business Professor Citibank

Man.Elng Edhol lbarraC. Gutierre2 A$tetant Maradng Edhol Kin Gatbonton Dod€n Dl.€ctol AlexanderBowie A$oclato Edttort SalomeFlores-Aldaba FedericoS. Esguerra AletaA. Tabalba BelindaSingson

articleis basedon Licuanan's Professor on womenenvepre research exhaustive Asia neurs.over455 womenthroughout study. for an Allv-clDA wereinterviewed eachwerechosenon the Andalthough basisof onecriteria- theywereall - each entrepreneurs highlysuccessful hada differentstoryto tell.Tumt0 our s whatLicuanan coverstoryto discover surveyreveals.

Co dbdlng Edltors N4ilon BikashPaul,MM'88.

Banpladesh: tton! xong: StephenTangwing On, MBtvl '76. lndiarJuzarKhorakiwala, MBN475.

MBM '78.

Tanubrata, Leonardo lndonesia: '82.

Korea: ChristinaF. Ferreros,AMMP Hon{ Soo Lee, N4N479. [lalaysial Tan Sri Dat6 lr. TalhaHj. N4ohd.Hashim,Mt'.176 Pakistan:lshtiaq AhmadQureshi,BMP '77. Philippines: JesliLapus,MBM'73.

'82.

Gan CheongEng,MBM Srngaporer Tatwan:HsrehLai Fa,TMP 82. Thailandl BMP'81.

SomnukJetjiravat, Edhodal Board GabinoA. lvlendoza HoracioM- Borromeo,Jr. SonnyB. Coloma A$oclste Publbhor & Advrltblng Dlroctor - lr emrtlooal TrevorA. Roberts A$oclat6 PuHlshor & Atlvottblng Olr€cto. - Phlllpplnos DeliaC. Gutienez Asooclaio Puulthor & Clrculatloo Dlroctoa MonettelturraldeLim Dlroctor for Oporatlon3 Pinkyl. Gallegos ld.mr0ond

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Covd photo: @ Jo$ph Drilas / The lma96 Aank (HK)

1993 THEASIANMANAGER MARCH/APRIL

rz Suwivalin a BordedessWodd ByFelipeB. Alfonso - AsianInstituteof l\,lanagement President

AsianManageF re AIM:Educating

27 thben in Aglculturc

BvAntonioLim& AntontoLichauco Consulting Andersen

2020 3eSingaporc Bylbara C. Gutie(ez Editor Managing

R. Roman ByFrancisco DonAndressoriano in Buslness Professor l\,lanagement

Excellert lr Singaporc's Companies 8y KinGatbonton

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MlohaelA' Hamlln

Milestone...

ReaffirmingAIM's Role '"Washington SYCiP that suggests Western organiza[ons arebecoming mol€ Asianin their management

s$es."

anlla -Ithasbeena quarter century since the Asian Institute of Management was founded PrimarilY asan instihlte to transfer Westem rnanagemmt techrologYto developi.ig Asia. Lnst month, AIM'S long-s€rving chalrman Washington SyCiP sutgested that Western organtzatlons werc becoming morc Asian h their maragement stYles.

In this Gue, three AIM faculw membeE conhibute our cover focus and collectivelY demonstrate distinct Asian perspectives of management &olvine ftom their exPeriences with managersand rnanagingin Asia.

Shce 1988, the Asian Institute of Management has endeavoured to Paint a Portrait ot women in business,govemment and developmmt. Mosi recentlY, it has co;Pleted a Profile of womm entr€Pl€nzurs. lryomm account for ilmost a third of employers and self+mPloYed budineis personsinAsean.These are hard-driving managers,determined to succeedin business and dedicatedto the farnilie they go to work for, genera.llYwith ihe critical suPPort of their sDou'es. ' In"AsianEntePreneurs:Her Way," Prof. Licuanan Pr€s€ntsa revealing portraYal of Asian womm mtlEDlEnerlrs ano tne[ critical contribution to economic and social develoPment. It is an inspiring portrait but the story uetiind [is work has not been often told. We're Pleased to it herc.

Dr€sent ^ Dean Felipe B. Alfonso has been president of the Institute since i990. One of his r€8ular resDonsibilities three decades aeo was serving as the drjver/ cf,auf{eur for one of the Luti-

1993 MANAGER MAFCH/APRIL THEASIAN

culture since long before the term came into vogue according to Professor Francisco L. Roman. As well as another JaPanese manaqernent pnnciplei kanbai: oI course, total quality managenmt. ln fact, narrow mareins in agricultureland a iarket Oul managenoltt conlbr€nco In Fobrualy limited by biologiattracted over ?5O pertlclpanb' (Wo wlll cal limitations and Epdnt spooch$ In tho iollowlng bEu6') geography as well as buying Power teligious observance ol tute's six principal founders, Fa- nake "modern" lvrnagement these ther tam& F Dbnelan. comPonmt Competitive advantage has t€chniqu€sa crucial Frcm advantage. comietitive of Asi4 in becomei preoccuPation the determinahangoes, rice to timedriver this one and Prolldes for moneYis 11 critical characteristics and tion to realiie value aooss bth operational featuresof excellent univeFal and cuts acborders, national and dass survive orqariations which can cordingtoRoman.Andalthough that su886ts He also arit'where. profitability rnay not it is naive to assumethat JaPa- corporite of of nesecorpomtions are inherentlY be liieh on the tist Prioriti6 a farmer, Asian iverage the Westmanaged wel! and, that qualitv prirduct he or she Proem enterPrisesare not. duces'r6presents both life and found, Wheriver theY are oDDortunitY. listen.to corPorations ' excellent it is imfossible to Present atheir customers, rcver€ quaury, tme crososection in one issueot anyto do tryin8 stoP never and work uJrdertakenat orisinal the better thing and everything and disrririr hasbeena fitturc of agri- AIM i-o undetstand seminate management technolow. But tiese thr€e examPles d&nonstrateboth thequalitYand relevance of this work to Dracticing Asian managers.The iirst reco-mizes and ackrowledees a crucial contribution to minagernent technology; the second identifies keY success factors of achieving orgaruzations; and the third, reninds us that Soodmanagementhasbeen practjced in Pretty mucn tn€ samewaybY excellmt organizations reeardless of industry for I the last Averal decades.

"lt b nalveto assume that Japanese

arc conorations

inhesrtly managed rvell;andthat Westem efltentbesatenot."

Differentstories

rePreneuti:

By Vlctorla S. Ucuanal CitibankProfessorin BusinesslVanagement I n the pastdecadeor so,mtepreneurship I hasemergedasa mapr focui of attmtion I for acadernicsand policy makersas well I as the businessconimuniry The rope of enheprcneurship hasalso exp-andedbejrond tnat ot owner-rurnag€rs to indude Plofessional managers in large corporatioru and conglomerate who tndeasinilv talk of the needforenheprcneuria.lmanagels.Enrrepeneurshrphasbecomesynonymouswith creativity and iMovation, and it is increasingly proclairnedasthesolution to all economicills, ftom decline at the national level to declineat the level of individual corDorations. _ Fonnal training in entiepreneurship is a faily rccent phenomenon,liut the pasi decade or so has seen a veritable expiosion of a co.urses-and proglall|s on €nb€preneursfup i i ofu in univeEities and other daining insti'= tutioru, Thesenow indude not only the-hadiE ] tional entrepreneuEhip courses'aimed at or4ner-nurnagers,but Eocrams for undergraduatesastell asMBA ;ludenb prcvided to Acoufge-mhepreneuship at the corpa ra€ Evel and evealretrnng goverr[nent em_ ptoyeesto Decomeenuepreneus.

For us in Southeast-Asia,the focus on Tth :prcneurshipis yery rclevant.Asin many developing regions,SoutheastAsia hasa concmtration of small- and medium-sized companies and family businesses.

Enh€pmeuship is, in fact,a mor€ importart sotme of livelihood tlnn in indusdialized countries.Basedon ILO statistics,thepercenr-populaage of the total economicaly active tion dassified asemptoyersand own-iccount workers varie from a high of ,9Zoin Indonesia,to 367"in the Philippines,30Zoin Thailand a d 24Eon Malaysia.i In contrast, the percentageof self-employed and own-account workers in moredeveloxd countriesis much smaller: 87oin the USAand Canad4 11%in Franceand the UK, and l3Zoin Singapore. In these countries, wage and salaried employ-

I

I

I

ment aJemuch more imDortant soures oflivelihood tlun self-emplovment, And seif-employmmt is a very mportant occupationfor women in SoutheastAsia.This is partly due to the relatively small industrial and modern sectof rcsulting in a paucity of employment opportunities for males and female alike.

For women, there is the additional factor that rnany h'pes of paid employment are6ft to bemore suitabletjomalesthan to females(e.9.,minin& constructio& utilities, etc.). Furthermore, many women are less educated, have fewer technical skills; and, perhaps most important of all, have family responsibilities which make it dilficult for dlem to put in the regular hours away from home which regulai wage employment generally rcqur€s.

Hence, in SoutheastAsia, womm make up a sipFdficantpart of those classified as employers and seif-employed.

Averagesrange ftom 23Eo6 ?nEaof tjre tolf.l for Indonesia, Malaysia, Philippines and Thailand. Exdudinga$adtwe,ihenumbers are evm higher: alrnost half, and someumes as hth as 68% of those in manufactudn& trading and community servicesin Indonl sia, lvlalaysia, Philippines and Thai.landare lemale.

Moreover,the percentagesharcof women who are employeis and se-U-employed is rising all over SoutlEast Asia. Over the two decadesfrom 1970to the end of the 1980s,the p€rcnta_geof employers and self-employed in the labor forre remained stable in-all'the SoutheastAsian countries, exceptfor Singapore wherc it drcpped ftom 18% in 1970-to l3q" in 1989.What is significant, howwel, is that the perc€ntageaccduntedfor by womm

"Forusin Southeast Asla.the bcus onentleprcneunhlp is veryrelevant."

tose in virtually all sectoE outside agriculturc. This is tue rcsadless of whetlrer the perwrtage of emplolqs and self-ernployedrernainedcarEtantasit did in Indoneia, Malaysia, the Philippine and Thailand or fe[ ajit did in Singapore.

TheWomonManageR Prcloctat the AslanInstftuteof tlanagemant This paper is based on the rcsults of re.

IHE ASIANMANAGER

search on women enhe preneurs conducted by AIM. The research was part of a multi-year re searchproject on women managersconductedftom 19897992, and included sub-projectson women manate$ in thr€e sectols: corPoratenvrnagers/[urnaters in government and not-f or-profit or ganizations and femaleenhepre neurs. The proiect, together with a companion project on women in development,wasf unded by the Canadian Intemational Development Agency (CIDA). The researchon womm malagers was undertaken by AIM in cooperation with leading management schools in each of the Asean countries.' The overall obiective of the Project was to generate curricula and training materials for students in managemmt degfo programs, as well as for short coursesfor women rnarvigers.

The researchstarted with a review of the literatue and a suwey of 455 of the most in five of the successhrlfemaleenhepreneurs -Indonesia, Malaysia, six A,seancountries: Philippines, Shgapore and Thailand. 3 The objectiveofthe survey was to ide1ltify factors leadint to success.The survey used a broad definition of entrcpreneurs; i.e., induding those who founded a business, as well as thosewho inherited the businessand significanuy enlargedit. The focuswas on the most higNy succesfirl, visible fumalemanagers.It should be noted that much of the researchon womm in developing countries has been donewith the obiectiveof helping the pootest and fosteringeconomicdevelopment amonS the most undelprivileged. Hmce they have '1993 MARCI-UAPRIL

mainlv focused on poor women or thoeein micro- and srnallel@s€s. AIM'S rcsearch, however, focused on successfulwomen in rnodem, largely urbanized and industrialized secto$undermarketcpnditionsinmany wavs similar to thosein developedcounEies.

Heirce, the conclwions do nirt necessarily apply to poor women in nual areasand entr€preneurs in micro- and small mterprises, Following the survey, 30 women, again frcm five countries,were selectedforindepth interviews. The results wete wriften up in case histories as well as in teaOing cises focusing on partigular nanagement issues.

Using the resultsof the suwey,workshops and ptograms were run to validate the r€sults of the researchaswell asto testthe proSrams, curricu.laand materialsdweloped. The pilot courseswere aftended by female managers from all six Asean countries, The Hback and inputs of tho6eparticipating in thesepilot activities werc important componeltts of the r€seartn.

The rcsults of the surveys,and someof the casesand teachingmaterialshave been published in abookentidd WonenEn epreneurs in Southcast A6ia,a d are availablefor useby trainingorganizations.{ .

and wholesale hade, hotels and rcstaurants, and professionaland personalservices.

Sh6, ln terms of size,most were small- to medium+ized. Therewer€ nonethat were in the category of large companies.Most ernployed around 50 workers or less,although some had additional contrachml, seasonal workers. Mo6t started busin€sswith their own or their fami$s savings.

Baclgtoundand pdlond cha|aata&ilb3.

The successfulwomen enh€DteneuF we!€ mostly in their,l0s,70%were married and had children. Eighty-sevm percent came ftom middle-incomefamiliesand grewupinlarger citiesortowns. ThewomenwerefairlyhigNy educated with 53% of female mheprcneus havinguniveritydegrees. Manywommhad the b€nefit of expooureto dilferent cultur€s, either through studies or vacation travel abroad.

Thesecharacteristicscon€spond to socie economicchangesin the Aseanregion in the secondhalf of the cenhrry: namely,the risein income, spreadof educationand incr€asing contacts with the we6t. In the dweloping counhies of Asia, educationis still mootreadily avail,ableonly in larger cities and towns, and accessibleonly to those with Orc resourres required bo take advantaAe of the opportuniti. Givm the general sdrcity of WomenEntrcp|€|toulaIn Aslan capita.lin developing countriesand its unde Buelno3s TheenheDreneursin the survev and inter- veloped capital markets,most enuept€neuls view were oi all types,in very difierent busi- must start with their own capital. Many nesses,with very differ€nt storiesto tell. They women went into service busin€sseswhere were chosenonly on the basisof one criteria: the need for capital is less intense and for which technic;l requirements - which they were all highly successfii female enhe preneurs. But on closer examination, women in genera.llack - are lower. lothEtloG. A qu€stion of intereotis the commonalities appear in terms of backmotivation that brought entepreneu$ into career expersonal characteristics, 8lourd, pectations and experiences.fume of these busines. Somereasonsgivm were common were ideftical to thoseof maleentsepreneurs, to male and female entr€pr€neus. Aside from economic motivations, examples of but some wer€ Darticular to females.

Sactor:. Veri few ofthe successfulwomen these were a desire for indePendmce, the entseprcneurswere in industrv or manuJac- challente to prove that they coltd be successand some tuing. Thoeewho were, were in light indus- ful on their own, a &ive for succes.s trie or assembly; ot more cornmonly, in inlerited the farnily business.

Other motivations for enhepreneurship handicraft or artisan-bas€dindustrie. The mabriw of the women were in servic€s:retail wete morc Darticular to female than males.

Mary womm cited the desire to be able to spend time with their children as the marn reasonthey startecltheir own business.Com-

ness.Thus, although the businessmav havebeenfounded yearsbefore,it was only when her chiiaren welr grcrwn that the mtrE reneur devoted lier full aftention to the business,resu.ltingir. rapid growth.

Some women were pushed into businessby economic ctcumstances, particularly the death of the main brcadwinner in the family and the consequent need to eam a livelihood.

Sirnilarly, some daughters enter€d the business upon the death of their fathers, and i'cse to the challense.A re. latedreasonforseftinguptheir6usiness was to supplement family income, often coupled with a deire for flexibitty to devote adequatetime to the farnilv Still another reason cited bv'a number of women for startine tfien own firms was that they felt then"risein the corporate world was limited.

Bumping against the "glass ceiling,, was otbm associatedwith stereotvoes of wom€n asnotsuitable for promotion

{ tonry11eem3tlnd gender-based

olscrumnauon, dnttnq the women to start their own businessesinstead.

Pt€esrhg lbr €|fi.9|€no|||3hlp. As noted in other studiesof mheDreneus, manywornen showed an eariv indination to enheFeneuship and to comm€rcial pu;uits. Many naa parens wno wenetnemselvesenhepreneurs.

Sixty-thr€eper€entworked prior to starting their own businesses.Generally this wasin the sameor similar areas in which they later set uD businesses, and they thw had received trainine that served them well later in lifei Others had early interests or hobbies that developed into businesses.

Formal degreeswere less important for mh€peneuship than for corporateand goverrunent work (ascited earlier,53 perent of femaleent€preneurs had universityoegrees, compar€d with 91 percent of the iucc;sful womm in govemrnent and community service,).Womm with formal b-ainingtended bo have had this tsaining in non-teclnical areas such as the arts, English, history, etc., rather tnan rnanagementor a technicalfield. ln fac-t, temale enteprmeurs tend€d to have had litde or no managerialtraining whether formal ' or informal. However, a marked trait amons the women was a lifelong drive for self-iml

provemmt, leamint and continuousupgrading of ski-tls.

Bolng a uomalr and an ontop|tneut In Aslr. Although, in general, SoutheastAsia appeaE to be fairly open to womm in busin€ss,women entreprcneursin Asia do expe. lrence certain concerns and problems associatedwith genderand theAsi;n cultwe,

late hours and mtertainins clients.

Another problem comlion to women in bwiness -and at work in seneral -is that of having to batanc€famity rcsponsibilitieswith work and personalconcerns. One aspectof the successful women enheDreneul surveyed the unqrestioned value of farnily, 1v-as epecially the well-being of drildren. Th-e women wer€ virhrally unaninous rn saying that the fumily camefirst, beforc their businessor their careers.

Nwertheles, many women talked about thechanginqrclesof womm, and felt that womeir should be able to take active rcles outside the home, whether in business or civic activities, should they chooseto do so.However, it is also evident that the standards bv which society iudges women are still almost entirely rclated to her managementof the familla As one Indonesian-mhepreneurputit/nomafterhowwellawornan does in her busines or her cateer,re ple will always ask how it is with her family, and ilanythingat all isa prcblem in the family, people will always automatically blame it on the woman. Still, many would agree with the entrepreneur who said that shewould rather be known asagood housewifeand mother than a good businesswonan That manywomenwercabletocope and to build up highly successftrlbuiinessesdespitetheodds againstdoing so was due in no small measure to the Asian support system of the extended family and household hetp. Sixty-nine percenthad hotrseholdhelb, and 39percent lived with at least oni memb& of the-extendedfamitla The successfirlfe. male entr€preneursalso cid the vital importance of having supportive sporrses.Fifty-onepercenloftheiomm said that their husbandswere involved in their business, and those whose husbands were not involved in the businesssaid that they were nonethelessvery supportive.

Manrgamont styb. A question seemingly of inter€st to eveiyone is . aswell ascertain advantages. whether there are any essentialdifferences Many womm cited d-ifficulti€s in busi- betweenthe_waymale and fumalesmanage. ness associated with stereotyped roles, Our researchsuggets that female enueprebehavior, and jnbs associated;;th qender. neurs probably have morc in common with Common comments were diffiofties in maleenhepreneus than with fernalenanaghaving to prcve that they "mean business,, els in corporateenterprisesor governrnmt.

In and problems in being taken seriously, for other wordg enh€preneurshipappear to be example, by business regulators and tiank- a suonger determinant ofbehavior than geners. These experience iaused difficulties der. beyond what-might normally tre encounln termsof manaRementstyle,women are tered by male entteprcneurs.' Women also often said to be more-emotional,sersitive and had to be extra careful soas not to be rrusun- people orienH, while men are more taskderstood when dealing with subordinates orimd, agg€ssive and authoritarian.

But and clients.Many felt that eenderput them most researdlon suc€€ssfidmm and women at a disadvantatdin normal"busindss activi- shows no difference in the most corrunon ties like negotiations, travelling, working measur€sof leadership such as task orienta-

"Thatmanywom€n ate ableto bulHupsuoooesftil bueln€Esos le dueto the

support 3ystem oftho e,ftondod famtly."

IHEASIANMANAGERMARCI-YAPRIL 1990

TrcHuoLocv \X/Hru THAI'swide-bolkd leetcomPrises noretbaneo ol th nostttchtologically i tbewod. aircraJt adoanced Sttirgmtkstingot tbefut's engines by bigbly arecaniedo t regularly in ard technicians skilled enginurs mainteratce ourlully conpukrked OurJligbtuews ce r n Bangkok. toconarehardpicked andsubjected tinroustrainingto keep tbenskillsat peakleoel. areanon!tbe That'swbyorrpilots arekept anywbert.Andourstandards Jtnest

exceptio olly bigbto gioeyou unparalleled takez' AtTHN. u)etle vruice atd reliabilitv. old andcuturies state-of-tbe-art kcbrclogy traditior andwouutbenirtoanairlinetbat's asSnootb asSilk.

$rnodrcdlk.

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tion, frimdliness and dominance. In many r€seatchstudies, successfirlwomen manaqers do not score higher than men on impulsiveness and sensitivity, nor lower on dominanc€, flexibility, decisivenes, etc. For all managers,the managernentpbis thesame: to get things done through others,to uni$ an oftendiverc€group to achievecommongoals, to lead the firm to meet the terts of market acceptanceand to make a profit. To be successfirl, managers, regardlessof gender, shoutd have thee abitiies This being said,however,we canalsonote that task orimtatiorr frimdliness and domillncJ cal be expressedin different ways.

While to be effectiveall managersmust have a certain level of dominance,task-orientation ard frimdliness, womernseeminglyoftm exhibit this in different ways ftom iren.

Womm like and are more cornJortable with a friendly, comfortable, chattv style.

Womm take more active inter€st in'pdph and build warm relatioruhips, often mbing family and busines. Many ibmale antepreneurssaid that they took a personalinterestrn their employees,oilen treaitingthem lile family membeE and listening to peEonat prots ldms.The womm liked tirgve token qjits on employee' birthdays and iartiApate-in fam-celibrations. ily niis i"teiet iticluded the

Respondentswho agreel/stronglyagreethat gi\€n statement applies to their qac{ces

Prefersto manageby inlluenceratherthangw directorders Triesto knowsubordinates in a morepersonalway Completes a taske\en if she hasto dlsDlease others Pe6onalvaluesale consistentwitholganizational cutture Scrutinizes detailsbeioremakinga decision 'inner Belierres she hasan torghness' welfare of the employee's extended family, sometimesgoing sofar asto hire mernbersof the extendedfamily. They felt ttratemployees rcspondedfavour;blv arid wercmotii,at6d to woi'k harder by this heaEnent.

Women entreprcneurs also often had many intelests outside their work. This was alsonoted by Sally Helgensenin her book on The Ferale' Advintagi, where Helgensen noted that wornen manaqersmade time for activities not diectly retited to their work, maintained a complex network of relationships with people outside their orsanization and saw thiir identities ascompleiand multifaceted.Shecomparedthis witfi Mintzberg's findings that (mile) managers identifi"ed themselvesalmostenttelv with their iobsand seldom underiook activiiies not diri:ctlv re.

69i6 I 6996 69/ 9096

ax

lated to their work.

This was alsonotablein womm elrhepleneurs in SoutheastAsia. They wanted to talk not only of their businesssucce6sbut of their familie, their civic work, and many other ints€sts outside their work, such as artistic pusuits. Many also emphasizedvalues and tlle need to sharebenefitswith the lessfortunate. At worN they switched easily among ufi€lated tasksand topics,oftm intlmrpung businessto attendto family tasksand to listen tjo employees personal problems. Seventythrce perrent said that they believed in a business philosophy very often revolving around a senseof humanitarianism.

Concluslong

The successstories of female enhepreneurs ar€ to some extent rcflective of the special role of entrepreneurship and small and medium businessin the economy.At their best, dvnamic Rr.Fnalarts who*Fclsbongly i3rE u,ltr ftc glv€n!t!t mdi small- and meditm-scale ent6rorises \tlbmencanperformas r,\€llas m€nin maledominatedindustries arc capableof developing a hilh de6296 Regardless of gendef,peoplewhodo wellIntheirjobswi recei!€recognition tlee of specializationand ar€ able to 85% make the most of their shuctunl flexU/bmenshouldfightior theirrightsio progressin organizations 6996 ibility and the competitivenessgenerl ibmenshouldbe morecompetentandtrorkha.&r to k€eppaceh,ithmalecolleagues @% ated by scaleeconomiesand limited production costs.

Wbmendo not haveto beha,€likernenin oder to succeed 7L% But an even more imDortant role played by competitive snall and me. dium firms is that $ey help implement complexand sociallyacceptable modemizing procedures within the E dy F rilly B&|{rotnd production sectors of the economv . Raisedin largecityor mediurFsized tol'vn ihe entrv of an economvinto indG . Fathersandmotherswithoutuni\€rsitydegrees trial wage employmml involves a . At leastmiddleincome tamilyor higher complex hansition. Requting as it . Sfongfamilyandculturalinfluenceinvatues,including serviceto othersandresponsibilities does a movement away ftom home to the family and comrnunity-basedwork to an environment in which worke$ are Dart Eai|c doml Eoa.f c6 of ,much la€er complexe, perfo-rming small,specializedpais of the pro. Withuniwrsitydegreeor higher process. duction . Ofrenhadgfaduatetrainirgfroma unh/ersity ab,road o. exposureto differentcultures Beyoird merely rcducing unemployment, r€searchpoints to the role Curri Farly Baclcround of "modem" smalland mediumbusi. Married,h/ithchlldren nesses in the d)'namic transition . HusbandwithunireBitydegreeor higher,usuallyemplo)€din pdvatesector,andis the maln proc€ssas the economy moves to an economicpoviderfor the family indwtridizea state.ei Schumacher . Husbandsupporti\€or verysupporti\€of wife'scareer ^otedirt Srall is B@utrful,smal fums . Hadhelpfromtheextended familyorhousehold helpelsto careforchildrcnanddischarge servea vital lole in educationalterrns family resDonsibilities by providing experience-based training in a more effective and comprre THEASIAI\MANAGER I\4ARCH/APRIL 1993

ALCATEL 4100t4]00 VS

G r o u n dF l o o r ,G & A B l d g . ,P o s o n gT o m oE x t e n s i o nM, o k o t i ,M e t r oM o n i l o T e l . N o . 8 1 6 - 7 9 6 6 F o x 1 6 3 2 )8 1 2 - 1 3 2 4

hensive manner than any affordable formal education pr,oces. This indudes the mtraduction of workers to division of labor and specialization, which requires changes in worker attitudee aside from skill formation.

AnodEr is the ernploymmt of technology, sometimes quite advanced, as well as exoanded noti6ns of utiliv and alternativeus€s ot rn(uSenorrssKUs, quiurry, anlstlc sense, marl@torimtation and a senseof what mar-

to the additional problems that women have copingwiththeaiverseimpactof stercotypes on appropriate roles and behavior for women, on bal,ancingwork and farnily, and even in arcaswherc wonen feel at a disadvantage sudr asnegotiatioru, tsavelling and mtertaining climts - all nec€ssaryactivities in busin€ss.Womm need to be able to overcome self-defeating behavior and these should alsobe the subilct of Faining.

ketsrcqute.

Workers who ar€ iust being intoduced to factory work areusedto living in a comrnrmitv. Thev arc used to and need a supportive orlture at work that indudespeBonah€lationshipsandcarc for the p€rson and not iust for the ec} nomic value that he or she produces.

Thus, the transition is easier where management styles allow for a hoad interplay of work with personal and farnily concems as they do in many female-manaqed small- and mediumsized firms. lis we have noted, ftnrale entreDreneursar€ indined to worker relationships which extmd beyond work to D€rsonalconcerns.

Interestingly enough, cufl€nt managemmt trends arc movhg away fiom the "cpmmand and control" style to one which €rnDhasizesworker satisfaction, teamworli and empowerment It is dear that we need mor€ €nk€prmeurs, their ideas and the pbs they provide. A final question is, how do we in Asia encourageand dwelop them?

What conceDts,skilsand attitudG mnst be developid in students, be they undergraduatesor MBA candidates,rctiring employees or potmtial businegg persons, and €specia.llywomen who ilreadv rnakeup asmuch as507oof the self<rirployed,6utarewerwhetningly confined to small and micro-enterDris€s?

The demonshation effect is power6dinencouragingents€pr€neurship.Weneed to show that otheF sucteed,and the diversity of €nvircrynents, personalities and circumstanctsunder whidr successis possible.And showing that those who succeeamd problems and moments of grave selfdoubt is important, Forthis w€ needrcle models,both of fumale aswell as male enftprcneurs, and the casesand refercncematerialslequit€d to bring thesercle models to the dassr|)orn.

But as entertaining and inspiring as they are, "war stories" arenot mough. Sometools must also be given Existing enf€pr€neurshipcourse generallyfocusonteclmicalskills andthoeeareirnportant,especiallyforwomm who tend to enter business without any marugerial training, But aside ftom these standad business andmanag€mmtskills,ftmalemtreprcneus needto develop other skills. And hereI refer

"Cunentrndr4iement trcrdsarcmodlg ai,ryfiom tfie'cormtandandconbol' styleto onethat qnphaBizes woil(ersdEfac{on, tearmuoil( atd €fitp0vennent."

Bevond this, someof the additional difficuftid faced by wonen attempting to succeedin bushess stem fiom stercoh/pesheld by peers,regulaton, qeditors, sutbidinates and dimts, asto how womm should actand the roles they should play. What types of r€m€diesodst to qeate a more level playing field for women?

Naanag€rs,especialypotentialmanag€rs, both male and funale, need to be e)(Pogedto a diversitv of car,e€rmodels, Onlv with this exposue-will notions of car€ersbe enlarged to rccognizeand legitimize diverse roles for womm beyond being mothers and home ma.kers.Both male and fernalesneed to be exDosedbodiveEe roles and carcer choices forwomen, sothatwomm inbusinessarEno longer a novelty, but an acceptedalternative for women who pursue careers.

Wder expcrlre - for both males and

females-to a diversity of managementstyles isalso important. Thereis a deepfead stercotype of "managemmf' asbeingmale,which is held by both malesand females.However, ttrercale many manag€rnentstylesthatworlg induding a more pemon-oriented management style, a mor€ "feminine" style. Womelr need to be encouragedto take advantage of natunl nranagerialstr,engthsin an umbashed "rrale" fashion There is no need to copv manatement if that do€snot comenatufocuses on ratba 'Ne$/' things like "empowerment" which wornm ale already doing. There is no need to unleam one way and leam another,but both men and women needto recognize altemative styles as being eouallv effective as haditional - or ma.le.riranagernent styles, Other bopicsO|atneed bobe emphasizedfor enftfnenzurs, asideftom making Gshflows and marketing stratqjies, ar€ how to cpF with gror,rth,ptoblems in family bu6inessesand the succe$sion issue.Many times, a firm's natural expansionisblockedby aninabilityto cope with the mor€ comDlex activities demanded in larg€r 6rms. Problems of family firms also often block gtowth, induding who will take over ftom the antr,epreneur.Perhapsmostimportandy, ents€Feneus needhelp in dealing with the human side, aswell asthe technical side, of probl€trns.

Enhept€neutship is not a particularly easyfield of training but an exciting one. Our researchand work with fernaleentepreleurs hasbeenmost re warding and encouraging, Despite the probl€ms,SoutheastAsia is an atea that is relativelv hoepitabteto women managers, Givm tlie dynamism of women e(rtrepr€lreuts,we can look forwad to further growth in the region, with worrm playing a wider role making geater impact and more substantial I contihrtions tlun in Dastdecade6.

I Intemationd fabourOlganizario,y$rw of Itbour Statistias@anoiusyeats), IIO, Geneva. ' l n s t i t u t P e n d i d i k a n d a n P e m b in a a n Manaiamen(lndon€sia),the UniveFity of Malaysa Mala,'Bia), University of the Philippines and De ta Sble Univdsity (Philippines), faculty members of the National UniveFity of Singapore,and the National Institute fo! Development Administration and Chulalongkom Universiys SASIN{raduate Institute of Business Administration (Thailand).

The rc.earch also benefited froft the aeebtanceof collaboratoB from various univeFities in Canada.

3Bruneiwa6 not yet a memtt€r of Asean at the time the Fojc'ct started, and hence was not in_ cluded in the rcsearch. rcaseson succsaful wonren nanaSels in public service ar€ in anothq book, BeyorldProfit: Asetn lNonen Mtnage$ ifl Gowmnent afid Not-lor-Profit Oganizatiofts,Asia br6'tih te of Managemmt.

1993 THEASIANMANAGERMAFCFYAPRIL

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tax prcfit in the manufacturing sector fell 41%, and 11%in the non-manufacturing sector.

Yetdespite the foession that hesheervolume of managementlitera- haswreakedhavocin thealready ture : railable on Japanesemanage. bruised United StatesardJapan, ment technology demonstrates the excellent corporations in both oassion with which manv of us have count es have continued to sousht to emulatethe successof this resource thrive - such asMcroeoft Corscarie nation of 120 million. For a decade, poration in the United Statesand Japanhasastoundedthemanagenmt world. Canon in Japan. What I would Theaccomplishmentsofits industrialistshave like to do here,is to takea look at b,eenrclated in countlessmagazine articles, what these oleanizations - organizations tlht win in loslng r€:.arch reports and managementbooks.

We have assumed that if anyone knew envircnmmts - do that makes how to survive in a borderless world, the them successfirl.

What they do I believecanbe Japanesedid. The easewith which the Japaneseedipsed the West€mtalent for manage- categorized into strategic and ment plarudngand efficiencyhasnot yet been operational characteristicsand 6:lly reconciled or acknowledged despite f;atures. Bv charactelistic, I their blatant - and routine - successin mean essenlialqualities; featurc' smashing their competition. And in this re- refers to manifestafionsof tho6€ sDect th€v have mastercd the borderless qualities evident in the daily opionomy,ior those unwilling to competeon erations of excellent oEanizaJapan'sterms haveregular$ fallen in the face tions. I will provide six stsategic characteristics of excellent orof its rclentlessonslaushts. ganizations,and five operational Yetwhen a colleaguewalked into a main featurcs. This is not meant to be he was advertising agency recendy, Japanese told that udike Pleviow downtums, Japa- a comorehensivelist, but it does nesefinancial institutions werc astroubled as represent commonalitie that I the manufacturing, retail and other service have observed in excellent o!s€cbols.And he was told in a secondagency ganizations wherever they arc that a rnator automobile manufacturer had rouno. iust sent word that their advertising budget StrateglcCharacterbtlca would be slashed30%in 1993.

Totalquality, The Economisthas re]ce\tlv reDorted that Japaneseautomobile manufactr:rers - be- noxluo mnutactudrE Lxal competition is cause they had ignored saturation of both becoming a thing of the past. Comparues domesticand intemational markels- "count must be intemationallv competitive -ftom to surcompetithemselves lucky if they make Y15,000 vive as geographic distance (US$125)a car." Not too long ago they made tors, markets and resources become increasingly irelevant. DomesdcprcduceE Y83,000(US$85) a car.

Nomura Securitieshas announcedmajor will no lonser be safe from the threats of ness.First, o4ganizationalvalues must demlayoffs,and appliancemanufacturers,camera liberalized iinports or the inflD( of forcign onstrate a pr€ocopation with total quality rnakersand comDuterand elechonic manu- investorswho will manuJacturesimi-larprod- and continuous improvement. Yotaro Kobayashi, president of Fuji Xerox, led his factuers are also slashingadvertising budg- ucrs.

Thereare two key componentsin qeating Japaneseorganizationand USparcntthrough etsup to,l0%. The Wako EconomicResearch Centerr€portsthat in the first hdlfof 1992,pre- and maintaining intemational competitive- a wenching, soul-searchingprocesswhich

to rapid changesin market tastesand consumerPr€re!encesr€quiies the caPacitY to Fofitably develop new poducts in very shod Periods and to manufacture them in very limited quantities. As product life cYdes shorten ind technological inaccelerates, obsolescence temationally comPetitive oryanizations will demonstrite a preoccupationwith small, incremmtal mhance ments- added value - re fl arting continuow rnarket Hback. lrttllE od|a|r .b what thoy do b€t. OlSanizations will increasingly subcontract processesand comPonentsbf theirbusinesswhich other oryanizations can do better. When Sun Microsystemsrcalized that it was probably never gornt to 8et any better at distributing its Frducts, it tumed distribution and delivery over to a

By Fellpo B, Albnso President AsianInstituteof i/'lanagement

q xJ

"local competition is becomit€a thing of the past."

12

THEASIANIVIANAGER

dismantled barriers to quality design and manufactule of their copy machines.

His organization continues to religiously acquireequipment manufacturedby comoetitorsan-dtearsit apart to determinehow to improve on the design. More imPortandy,his engineersdo the same thing with their own nucmnes.

In the United States,Procter & Gamble increasedproductivity over 150%hom 1987 to 1991.P&G presidentJohn PePPersays "the most significant that Total Quality is interventionin theway that Procter&Camble has approached the business" in his 3G care€r. vear ' Second,sun ivingin a dynamic, competitive en\rkonmentand successrulyaoaPEng 1993 MARCH/APRIL

of its desig$, which alsoenhancesits capacity to respond rapidly to changesin consumer p*f*"tt."t.

A "iessuty ingedient of this itratesv is thedevelopment and maintenance of stritesic allianceswhich the Japanesecall keilefsr. The Mitsubishi keirctsuhas^etly 7 companies and annual salesof $300billion while Toyota has 175Primary suPPliersand 4,000secondaryones. Fortunefilu.gazinede"a scribesthe karets, as systemthat Pulls togetherqoverrunent,industry,caPitaland the 6est infirmation on hiSh technology worldwide to createa machinethat grinds comPetitors into powder."

As one author observe, businessleaders

are discovering what leadersof nations have known fora long time. Whjle itis imPortant to stick to one s expertise in a conplex and hiehlv competitivi envitonment, it i5bestnot to"eq it alone. Grcat powers have cleated al-finces in their theadrs of operation with other powers whose intercsts ran Parallel to tneus.

Crrath€ truly Indopendort sub8ldlaft3.

Asian Businessmagazine recendy reported that San Mizuel Corporation in the Philip oines is novia US$2.2billion multinational. i-{einekenand Ashai Breweries-by way of comDarison - are US$4 billion and US$5 b i6n companie, resPectively.Companson of prod uct volumes would probably narrow the differenceseven further.

One reasonfor SMC's successis its Penchant for cleating independentd ivi-sionswith the authoriw to managethemselves So successhrlhasSMC beenir spinning off its dMsions that it has moved aggressivelyto decentralizeall operationseven within divisions, providins an unprecedentedlevel of authoritv.And-last yeir, SMC's profit per employeerose56%,and incomeis exPectedto increase20%this Year' Make gupgllel3 cotrpete. lnternationally comDetitiveorganizationsmust demand that theirsuppliers"plavby the samerules theydo: tisten td the mar(4,'provide tlte best value and provide quality product. And like the firm iseu, compettibn it the b.st m"chattitm to assu.revigilance in fulfilling this mandate US computer manufactuers leamed this ago when their rule the hari way a few y_ears problem was noi assimple asacquiring qualiw-coiraua chips,but acquiringchipsat all. a dontlnuous 36arch ft'r now tochnology Technologycanbe developedindigenously or pwchased.But it must be Purch"asedwhen the capacity to develop technolocv indigmowly does not exist. Jaoan. Ko6 andTai*utt have all allocated Substantiallevelsof govemment and Private sectorresoucesto thedeveloPmentof worldclass mgineering and technology develoP ment caPabilit)t

13

While the United Stateshasmore lawye$ than all of Asia combined,Asia now has the greatestmgineeringcorpsin the worl4 much ofitus trained.Butnotfor much lonset From AIT in Bangkok to Taiwan'svaunted centers of excellmce,Asia has demonstrad its aF preciationof the needto develop technology indigmously.

Protrct the onvlrcrfr|ent. Phinma Philippine Inveshnent Management Consrltants, Inc. - prcduces ,1870 of the c€menr used in the Philipphes, and is a US$400million company On ie own - without prcddingby the govemmmt or envionmentalists - it is investing ove! US$l7 million dollars in pollution conhol equipment.

There are those who believe that the mvionmental argummt is a luxury ihat the West can afford but devetoping Asia cannot. In huth, Asia cannot afford the failue to take its environment seriouslyif it e)(Dectsto aftain the levels of intemational competitivenesstltat it does now. ln the sameway that marketscannotbe taker for granted neither canour capacity toexDloitnatural resource. Indeed,we are fortunatethat theWestajtdEastemEuJope have so clearlv - and starklv - demonstrated the inevitable result of shortsighted environmental management I policies.Securingthe future is direcdy de- ! .l pendmtonpnvidinganenvimnmmtthat can support the enhanced lifestyles to : which we aspir€.

pendent on the provision of Eaditional furctional skills are not reflective of the current managemmt mvircnment. US auto manufacturers have leamed that "big" is not synonymous with "best." h fact, sacredcows seem to be mor€ ajr excusefor perpetuating mediocrity and bureaucratic comfort levels than sustaining competitive advantage.

Admiration for t€amsand theL champions. Organizations ale becoming flatter, and asthey do, work teamsate becomingcentral to inqeasedprcductivity and quality and asa result are assuming levels of authority and responsibility prcviously resewed for management. A r$ent Fortune artide calls the

pervising team, and achieved ambitious benchmarked goals in its first year of operation."

Rcp€ct lbt cl|3tom€|!. Managen havefor the most Dart learnedthat thev have no business telliirg the market wha[ it wants. The ardor with which they listen to their customers,however,is remarkable. In the computer industry, the md-user's love affat with the graphical interfacehasmade it near impossible to find a mai]r softwarcpackagenot availablein a Windows format. EvenWord Perfect - a lons-time holdout - and Ventua Publisher,fi6tavailable in a competingbut much less popular interface, have developed superb versionsof their packagesfor l4indows.

In a soeechto small and medium enterprise managersin Tokyo, the founder of Honda, SoichiroHonda, claimed that the mai)rity of the innovations incorporated in Honda automobile came ftom their customeE. Sam Walion, the formder and omerof Wal-Mart,gatheredasmuchdata as he could to get dose to the customer. 'fiealways said,'lrlothing happensuntil a customer walks into a storc with a Durpce,buyssomethingand walksout,' i'hat was his philosophy.SatisfytheCustomer."

Ard when was the last time you filled out a customersurvey in the cabin of your favorite airline?Or on behalf of the magazinesyou subscribeto?Competitivenessis inaeasingly rcflected in how dosely organizations listen c/td respond to their custome$. openilond Featurcs Trust In thclr Fodc. while our people Now I would like tobriefly discussfive will always make some mistales, if they operationalfeaturcsof excellentolganizaare good mough to wolk for us, they tioru. They are: should be husted, and allowed to lItake . Rocliyity for changing the rules; mistakes. Ce*ainly bust, like all privi. Dsdain for saqed cows; leges, entails certain r€sponsibility, But . Mmiration for teamsard their belief in the capacityand integrity of people will remain the key critical component charnpiors; . Respectfor customers;and, in sustainingthe oeativity and innovation . Trust in their people. rcquied to develop the competitive edge Procllvlty for changng th6 rulca. that will boostan organizationto the top of Nothing is ever certain but change.The its industry capacity- and willingn€ss - to rnanage Peten and Waterman said a decade changeis critical in suc€€ssfirlorganizations CEOsof thevear2000"burcauqacvoustels." ago that champions arc a pain to manage; becausechangeis both inevitable and good. They are throwing away organizaiion charts perhaps,there is only one thing lesspainfirl: And it is only when the need for change is in favor of an ever<lunging constellationof not having any. Becauseit is the champions acknowledged that it does not "scarc" the teams,prcieds and allianc€sin order to url. that pull down the sacredcows and change orBanization;that is, the people that are the leashemploveeinnovation. the rules that no loneer reflect market values In th; Ja;uary 193 issue ol The Asitn and mood.

This is not to suggestthat an organization i/trnd8er,RichardWe[ins and McMagdaraog Ther€iou have it, six shategicqualities of take every opportunity to dEnge rules, but rcport that a survey of 300 organizations in excellent orSanizations and five featules that it wil be wiling to acknowledgechange Singapore, Hong Kong Malalsia and the which determine their level of international when itis r€quircd-whichmayberelatively Philippines revealedthat enpowerment is a comDetitivmess. often - and to manage that change effec- key organizational shategy in achieving and As marka barriers continue to fall, natively and efficiendy sustaining intemational competitiveness: tional borders effectively disappear. Firms "At Du Pongs Lycra plant in Singapore, that have Dbdaln br sacEd corE. IBM leamed the accustomedto the cor orts crcwn -by hard way that rcs, workstations and net- teammember notonly takecareoftheirdaily provided protectionism - as well as all works work much better for most or8aniza- Fb rcsponsibilities,but assumemanagement other companies- must emul,atethe examtions than mainframes. Business and tasks such as discipline and scheduling. A ples of ex&llent companiesthat survive the managementschoolsin North America and new Motorcla semiconductor Dlant -first in the openmarketof globalcompetition.Theymust Asia have acknowledsed tlut curricula de- Philippines has established its self-su- become,and remain, br:ly world dass. !

"Geogradrlc dlstance ftommadretsandrosources hasbecomelncreailgly lrrelevant."

1gffi IHEASIANMAMGER MARCIUAPRIL

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Mr. GeorgeTan Fund Manager AsianInstituteof Management

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ather JamesE Donelan and Gabino A. Mendoza - themselve amons the foundeE of the Asiar Irstitute of Manr agement(AIM) - were comrnissioned by the hEtitute's cunEnt prcsident, Felipe B. Alfonso, to write its history asone in a series of specialactivitiesundertakenin prelnration for the 25thArmiversarluTheil book entided 25 YwrsofNM,wldlbe launchedin February, 1994,as the concluding rite of a yearJong celebrationwhich b an this February Like all great organizations, AIM is the product of a synergy;it rcflectsboth the mo6t brilliant and the dimmest mommts in Ph.iliDpine and Asian history lts path has been chartered by geat vision, but occasionally obscuredby the probacted debatesthat arc inevitablein any significantconveningof men and women But by this, the hstitute's "razor edge" received the tempering it required to survive in a deadly practical world, and to rernain rclevant to the managernentof that world and its economies.

Ard sohereis onehistory pr€sentedin Tre Asian Mmager m surrunary fashion. It too, will perhaps be many things to those who rcad it. That is Ploper. For AIM has always been - and alwavs will be - a personal 'with experienceshared all Asiar lr.ianagers who passthrough its doors.

De la Salle for Drimacy in the field of graduati management education. l{rite Donelan and Mendoza, "De La Salle felt Atjeneowas enqoaching on its business school turf when Ateneo establishedits futl-time MBA progam. Ateneo, on the other hand, couldn't understand why it should terminatea just-made-viable MBA program to merte with a partner that wasn't offerins a full-time program. Happily, both universitiesfelt theinter€stsofthe Philippines would bestbeservedby the establshment of a single graduate school of manatement."

Over a five-year period, rep resentatives of these three groupEagreedthat SGV- Asia'3largestand most rcspectedaccountingfirm - conduct a feasibility study on the merger of the MBA prcgrams of Ateneo de Manila University and De la SalleUniversiry As outlined in the SGVstudy,the principal conceptsunderlying the proposed Ateneo de Manila-De la Salle m er werc: 'The two universities viould pin forces to qeate a single new graduate schoolot manIhe Foundlng agementthat could provide training of outTherc areat leastthreeways of erpla ining standingqualit),befinancjalyviablg andmpy why AIM was founded. theundivided supportof thebusin€ssconunuThe first is to see it as part of a great ruay; "The school wor.rld seek to movement in Philippine business society become an shifting power ftom the expatriate enhepr€- imDortant source of future businessleaderc neurs, managers and professionals who for the Philippines,and for neighboringcoundominated it ftom the turn of the c€ntury to hi€s. Its progams would be designed to the beginning of World War II to the local plovide haining for men and womer who Malayand Chinesebusinessmmwho gradu- evmtually would occupy top management a.lly assumedthis power during the second po6itions;" and, '"Iheschool would haJIof the Twmtieth Century strive to emMy excelThe secondis to consider it as one of the lence and professionalismin every phaseof fruits of a missionary surge of the Harvard its oDerations." 'l'he Bwiness Schoolin the sixties to estabtsh its Atmeo de Manila board of trwtees dones in the dweloping world. appoved the popoaed merge! in February The third is to regard it as the happy end- 1 . The SteeringCommittee reconstituted ing to the fierce rivalry behareenAteneo and itself into a finance committee followins the

Ctoc,lvrse lrcm top lelt, Stedren Fulbr tskoe canter stage wlth Pr63ldor* Marcoa and Wa3hlnglo Syclp; Dedlcatlon celemonlei r6volry: Syclp wfth Eugenlo Lopez,Sr.; Laylng the iourdatlon ston€: Lopez, Fuller and Syclp; lHbatlon .ltes; Lopez lay'ng the tlmG capaule,

approval in order to meet the funding requisitesincorporad in theconditionalapproval.

Theseconditions, to be met beforeabandoning the full-time Ateneo MBA, werc: . "Adequate safeguads be built inbothe charterof the new rhool to insure that it will, in its policiesandpractices,embracetheobiective of training academically superior and r€sponsibleChristian leadeis; . "Sufficient financial support be generated in advanceto provide reasonableassurTHEASIANMANAGER

anc€thata new scltoolof theanticiPad stahre will befnanciallv rlfsupportind'and, . 'Additionil 6eld'nlearcti provide adequateevidmce that the forecastlevelsof student €ruolhnslt and place[srt arerealistic."

De ta Salleformally approved the melger the following month.

Ihe EadyYearc

SteveFuller, then HBSassociatedean for extemal affairs, was a unanimous choice as

1993 MARCFYAPRIL

August 1969,his filst Priority was to form a consensuswithin the faculty. To do this,hemetsinslv withevery member of the facu.ltyandAis€ussedwith him his ideas.

This confused the faculty for they were us€d to acting t(Sether as a bealr|.

They wondered why Stevewas inviting them individually and trying to Persuadethemto acreDthis ideas.After each meetingwith Steva,they would rePortto theother faculw memberswhat had been discussedand what the new Presidenfs -Dlanswerc.

It was a dash of cultur€s, the Americanculh[e which is very individualistic and the Filipino cultule whidr is very eroup orientA. And becauseof this theae iere-misundgrstandings, therewerediffer€ncesin perE€ptionbetweenthe rcactions that'Steve saw in the faculty mernbersand the actionsthat Stevewas taking which the faorlty interPeted in ditrerent ways.

Thrce mo6timDortant imDortantacrueve ments of Fuller's a'dminisbation stand out: 1) The reDutation of the Institute in Asia Darticutarlv in Malalsia and Indonesia irlo*hAmirica and Eitope wasadvanced;2) Non-Filipino facultv iuch as Noritake Kobavasliof KeioBusinesSchoolandRiazur Rahr;n of Pakistanwere invited to the L$titute; and, 3) The decision to lorm a board of -governors was rul(re.

In Mav of 191, the hstitute's board of got etnors conducted ib first meeting and Tun bmail bin Mohamed AIi prompdy sugin Business eestedthat the two-year Master "Asian Cadillac' (MBIO wasan X4anaeeEimt or at his own suSSesho& the fLst dean Dresident - of the Institute. However, the when what Asia neededwas a Volkswagen. ioncepts of cn:ss-cutturalmanagementand TamesCulliton was named presidmt the foliowing month, and he promptly.appointed a sersitivitvtolocalnormssopevalentinAsian prcsented obfaculty commiftee to deslgn the oneyear nlapr manaser;ent thinking staclesiforthe new preiident despitehis many Masterin Managementafter the I 972facu.lty yean teachingin tlie BaguioAMPand his role conferencein Ba--guio.

This committie went off to Nasugbu in in the founding of the Institute. prcvinceand sPentthemai)rPafi of Batangas was When Fullei arrived, what took Place u week dGc,rt"ine *hat the propgamshould aclashof culturc, Donelanand Mmdozalater wrote. When Stevecame to assumeoffice in look tike. whei theY came back from

Nasugbu,they had evolved,and agreedon, a program that was very unconventional.

The committeedid not adoDtthe architectulre of the regular MBM or MBA program, which wasbasedon thefirnctiors ofbusiness.

Rather,it basedthearchitech-[€of thecurricululrn on the management functions. This caurd coruiderable contoversy within the faculty.A grroupof faculty memben led principaly by Meliton V Salazarfelt that such a violent wrcnch to the approach to a masters prcgram was not desinble ftom the point of view of AIM. Thercwasa Drotracteddebateon this with individual faculty menrberstaking sides.Another committeewas formed to redesignthe newly designedpogram and after they had given the report, stil a thid cornmittee was formed in order to redeign the rcdesign.

AI thouthout this process, although Cullitonwas supportiveof theeradical ideas, he did not show it. He merely made surethat the discussionskept on going. Evmtually, the faculty a8r€edon the guiding principles and the architecturethat the Nasugbu Committee had initially proposed. It would be another year or so before the oneyear program was ofGrcd.

Culliton r€signed as pr€sident in DeceEF ber of 19112 and Sixto K. Roxaswas namedtlrc Institutds first Asian pr€sident.Mendoza, as dean, continu€d to serveas the chief operating officer ashe had since1968.As a signal of hismanagemmtstyle,Mmdozarcnovedthe statelv desk in his offrceand rcplacedit with a rouird tabte. lrr Jarrua"yof 1978,Mendoza was named pr€sident of the Institute,

Thetulantsadon of AIM

starting to serve. It also opened up opportunities for them to do casewriting in the neighboring countries.

It was in 1974that both the MM programand theone-month Basic Management Program GMP) were laurched. Because of the global recession,fewer Filipino companieswereableto send students to AIM's programs.

Doubled efforts of r€auihnent enabled the facultv to make up for tie fewer number of Filipirio students by increasing-the number ofoveEeas students. In "1E7L79, the ye'fs an averageof 35%of theeruolLnentintheMBM prcgram was acco|.mH for by overseasstudents.In theMM, an averageof 55%of studentswerc from overseas. ln the ManagmenetDevelopmmt [logam MDP), the overs€a5students accounted for 35Voof €rllollnent and intheBMP,about 20% were from the other countries.In 192, theAdvanced Banl Management Program was laurched and non-Filipho particiDantsaccountedfor morc than 50%ofthe participans in the pogram.

Oneofthe effects,therefore,of the 1974 crisis was to ino€ase gready the nurnber and the gc portion of overseasstudentsand irarticipants h AIlvI.

H.G#lCo|mn

,am€3 F, Dombn, 3J

E8drbLpc

RalphZ, Soromor

\

of the Tlm€s The Institute has takm various Daths to D€man& "Asianization." One hasbeenhewn iron the The veaB 197,175saw a DrG intemational consulting arangements un- liferation in the number of shortdertakm by the faculty over the years.Initial term executive development engagementsevolved ftom alurnni in Malay- pograms offeredby the Inititute. siaand lndonesiawho felt their organizahons The twcmonth MDP was pre wbhl]Eto.t syclp could benefit from a '1arge-scale"dose of sentedtwice a year,The o4e.year AIM, but felt for practicalreasonsthey should prqJram was offer€d starting in bring AIM to their executivesmther than the June of 1974and the BMP - originally pro- and did its bestto offe! asmany progams posedby Salazar- madeits fust appearance were needed. other way arormd.

These overseasconsulting mgagements in Seotember.

Iri the beginning most of the facu.ltywere A ilow Technologr of the facultv in Indone6iaand Malavsia had reluctant to participate in the BMP program.

AIM's "radical" derarture from HB9intwo rcsults:-theymade the facdty;embe$ much morc familiar with the way companies Salazar,Frarcisco P Bemardo and Felipe B. spired technology in the form of the Rural were managed in the neighboring countries Alfonso, who had had more businessexperi- Development Management Program andthe experimceformed forthem anetwork encethan the restof thefaculty,volunteeredto (RDMP) Iaunched years of debate over the of friendshipowithAIM alumni who wanted design the prograrn and teachit themselves. appopriateness of a businessschool underSo they deigned the program and they taking dwelopment initiatives. The prognm to introduce modern managementinto their ran it, alrrdevmtually it becamequite success- hmedouttobeimportantfortworeasons:1) comD€uues.

They also served to completely eradicate ftll. Over the next two years, the BMP was It reflectedthe most Fessing need for scarce whatever doubts the leading facdty dissent- offured once everv three months. This prolif- managementskills in developing Asia; and, 2) It provided substantial profect rcsearch ers may have had about making AIM hrny eration of executivedevelopment polaru Asian. In effect,what happened was the Fiii- meant that the faculty had to work even funds which were not available to AIM'S pino facdty memberswere "Asianized, " asit harder,maruringall thepograms asthey did. enterprise programs. Although this debate werc, by the contacisthat they made with the After a while tlrc shainsof overwork begar to has continued in various forrns, it was at ib other bwiness rhools in SoutheastAsia and show.However,becausethev werc neededto peak when Gaston Z. ftigas resigned as with the businesscommrmity that they werc keep the Institute alloat the facutty went on associatedean and Salazarassumedhis re1993 IHEASIANMANAGERMAFCI-UAPRIL

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Foundationand the National [rri- reallv savs, Don't trust me becauseI doft gation Authority. It hasobtained tnufyou ather.' I6nd this very sad.Japanhas funds from the Koruad Adenauer grcwn to the statur€it hasnow without havFourdation and the Roclefeller ing had to rcly on Westemsystems.ForAsian Fourdation to undertale res€arrh business,we needperhapsto be more Orimon area development manage- tal in our appoach in our s)stem.

"The Asian time frame is long range.Not mmt.

Becauseof then unfarniliarity thrce months as in the cas€of the Westem with development management manager Along view allows us to keep sight the RDMP facultv had to put in of the fufure of conseouencesof actions we much time leaming about ilevel- mav wish to takeat the Dr€sent.We taketime opment. What was at great risk out to seein otu mind-sthe future we will was the time they could give to bring upon ourselveswhm we tale certain consulting which served to aug- actioru now. Orientals are far nore peoplement the faculty salary. But nev- oriented.h Japan,we do not take actionurtil ertleless, they continued to Pless all of our people have been consulted.And Stephcn H. Fullol on. It took a number of years even if this processis view€d as tedious by before their efforts bore fruit and Westemmanagers,it is worth all the tlouble beforethe faculty asa whole hrlly becaus€people must have a say in the affairs that will affect their lives... accepted the fact that develop "I believeaman cannotbea goodmanager ment manaqement was an integral part of AIM. udess he is first a human bein& because managementis motivating people,and only ExpinslonIn tfie Reglm 1979was a historic year in the human beingsknow what motivates people.

Asianization of AIM in the sense PeoDle must leam to think flexiblv and that it was the filst year during quickly, especially in r€sponseto crisis. The which anAIM proSram washeld economicmind, becauseit is linear and pessioutside the Philippine. And this mistic, is slow to see the Do6sibiliiies and develoDmentcame about at the cannot rcact to crisis with d\e speed that is initiative of]un Bemardo,deanof r€ouircd.

-And It is also not verv innovative."

Gablno A. Motdota Exto K, Roxa soit was during this pe.ioa *uten4 students ald alumni, who conbeganits ha$formation from avehide forthe vinc€d Malarsia's Mara Mailis Amanah Ra(vat) that thev could hansfer of Westernmanagementtechnology help the smali and mediuh scale to an investigator and purveyor of an Asian maragemmt technology.This evolution beBumirytra businessmen to uF grade their managerial skills so came manifest in a quest to understard the that thev could better competein conceptof the enEepreneurialmanagel,and their fields.In thebeginnini these ultirnately, the Asian Manager. overseasprograns constituted a verv srnall Dart of AM's efforts. Gasty When Mmdoza indicated his intent to By'19&3 however, they already accountedfor 2070of AM's total resignaspesident and dean,AIM Chairman WashingtonSyCipconditionedacceptanc€of income ftom short programs. later, dudng the Philippine his resignation on the nomination of an acrccessionof 1984 to 1985,these ceDtablesuccessor.Mendoza constihrd a Gastonz. OrtEag overseasplograrns prcved to bea successioncommiftee to ujrdertake thrs lg financial lifesaver for AIM. They sponsibilitv. ^ The prdcessof approving the recommenaccountedfor 28%in 19U,31%n\7985,a d, soonsibilities.

"1986 dations of the SuccessionCommittee,aswell %n of AM's income flom nondel,ty'henOrtigas left, Salazarthen becamein asthat of electingthe deanof the Irutitute was charge,not only of the Enterprise Manage- glee ProSrams." long drawn out,and contentious.Therewerc The question of the Asianessof the hstimmt progam, but also of RDMP And this revived the debate within the lnsutute on tute went bevond financial imperatives and two membersofthefacultywho werc considered by mo6t to be eminendy qualified to be whether the RDMP should be stongly pur- offering prograns outside th6 PNippnes. sued. The RDMP team has been constituted Increasingly,Asianesscame to mean doing dean:Mel Salazar,who wastheassociatedean and was made up of relatively senior faculty businessin the Asian way. In his last meeting for faculty and programs,and Gasty ftigas members. Alfonso had beennamed head of of the board of govemors, Sony co-founder who had held the sameposition previous to the team which induded such experienced Masaru Ibuka spoke on Asian management: Salazar.

"Iiaditional Asian relationshiDsare build professorsasBueruvenhuaF Canto Eduado However, in May 1986Gastv was elected on Eust,confidenceand friendship.O.u busi- deanby a margin ofone voteand this decision L. Robertoand JesusG. Gallegos. of the faculty was submitted to the board of By the time Salazartook over as dean of nesscontractsare not only placed in wdting facuity and prograrns, the RDMP team was with disinterested third parties wih€ssing trusteeson June 20. On July 2, the board of making steadyprogless.It had won a consul- them; they are also very explicit about safe- tnrsteesofficially acceptedthe rcsiSnationof tancy conhact ftom the Department of Agri- guards. The general effect is to tacitly ac- Gaby Mendoza asdean of the htstihrte effective Tulv 31 and asked him to stay on as cu.tturein order to help the Departnent plan knowledge that the conhacting parties tealy its maior reorganizationand decentralization. carnot Eusteachother,becausethevery exist- presideirtuntil his replacementcodd be droIt had started working dosely with the Ford enceof the docurnent with all its stipulations sen. The selectionof Gasty Ortigas as dean '1993 IHE ASIANMANAGER MARCI-YAPRIL

was confinnd by the board and he was to help them setshategies for themselves. Among appointed dean of the Institute.

The closenessof the elections demon- the regrons that invited shated two thinSs: 1) the difficulty in choo6- AIM to becomeinvolved ing one of two men of greatcharacterto lead; in their multi-sectoral and 2) the persondl strength of ftigas in planning activities were uniting and achrally leading a very inde- the city of Cebu and the province of Southern faculty.

Dendent-minded ' Cotabato, both of which During Ortigas' tmure, the Master in De velopment Management program was later became growth laurched, and Eduardo A. Morato, Jr. was centersfor the country.

AIM also conducted appointed its first dean.

Gastyspent much of hjs time on develoP another multi-sectoral ment management. He became personaly workshop for the Departinvolved with the workinqs of the various ment of Tradeand Indus- foF the N@s. During his tenue,AlM becamemuch try in their dialogue with cG€ method ln actlon. the business more involved in the workings of the Philip fufto,rt The as to the export-oriented Dine Government.

AIM campus The faculty ran workshops for the leaders strategies of the Philip pfovldes a of the HouseofReprcsentatives,the members pine Government." congenlal of the Senateand ihe Deparhnent of Natural settlng iol Re6ources.lt was alsocalledupon to manage Unlqu€Tftls At midnight of No- can group a multi-s€ctoralworkshop for theOffice of the Ilesident, which brought togetherthe vari- vember 30, 1989,a group me€tlngs. ousdepartmentsof the executivesectorof the of renegade Philippine govemmentwith privatebusinesscommuni- Army soldie$ staged an attemptd coupd' etafagainst the Phjlippine tiesand NGOs.Theobjectiveof theworkhop Government.The coup dragged on for seven was to discussthe responsesthat the I'hiliP pines should make to the gospective short- days and unlike pr€vious coup attempts, fighting was more widespread and part of agesin thesupplyofoil, should theimpendirg Makati fell under rebel conbol. The AIM war in the Gulf curtail such supplies.

The Institute also ran workshops for se- buildin& locatedin theheartofMakati'sshop ping and businessdistrict, was ocopied by lectedrcgionsarcund the Philippines in oder

passportsraisedin one hand, and hand luggage in the other.

The thtteen women and children werr in a station waqon which headed the line. From Mile Long tshopping Center),faculty membersand their families took the evacueesto the Philippine Plaza which was the major 'evacuee' processinBcenterat the time.

AnAslanlnstltute

Covenunent forceEduring the coup.

A number of AM program participants werestrandedin Chater Hous€,a sma-[businesshotel fiequently utilized by the Institute to houseparticipantsto its executivedevelop ment programs,and required rescue.

One fact iy member with communica-

reandUS$130,000 to discuss tionallundingol US$300,000 inviles FatherJames F.oonelan ol Ateneo inMakati atthenewlacility Classes begin the spectively. theproposed meruer.

UPturns downotteltoioin surgesto 235kom 142the Bro. in July. Enrcllment Srrfemrrr- Donelan discusses consortium. year.

Fullet.Utohct-llonnbet- previous SyCip, chairman ofTheSGVGroup, Gabriel's orooosalwith 1956:Washington lirstAsianpresidenl of JC SGVagrees studyfor the V. delRosario, to conduct a leasibility Ramon itsfirst 0fGovernorsholds Fuller 0f theHarvard proposed Thesteering approachesl97l;lt / -The Board andDr.SteDhen school. committee lnternational. aoneAliproposes TunlsmailbinMohamed interesl in establishing a Eugenio express Ldpez, Jr.t0 proposetunding olthephysical meetino.

Business School yeardegree manaoers.

Jura- tuller patlerned lor mid-career Busi- lacilities. alterHarvard lull-timeMBAprogram Culliton is named (AMP). resigns andreturns to HarvaId. ManagementProgram nessSchool'sAdvanced feasibility studyis 0residont.

1968:Jrflnry- Thecompleted HBS presented underwritesan lo Ateneo andDeLasalle.Fcbntry- ftu tordFoundation 1961-1952:The developmenl of approves approve 'lg72iJanaary- Faculty Asiancasesfor the Al€noo faculty senate andboardgftruslees casewitinoteam to provide isdeclared.

Ssrrcn rf- MadialLaw Training De La Salle ap- one-yearMM. AMP by the Executive the merger unanimously. tt rst Baguio organized resigns.SixtoK. Roxasis proves members DEcenbu- Culliton them€rger.

AIM'S orjginalchartel lnstitute ol thePhilippines. president. thefirstAsian lorthelirsttime.,ttl- TheSSSapproves elected convene Fuller is invited t0 launches a lulftimeMgA. a stud€nt loanfundol P3million.

1964:Ateneo de Manila is approved bythe Fuller become inManilatells thelirstdean olthenewschool.

Jttt- Don 1973:lt rr, - TheMMdesign oftheFordtoundation HarryCase presents Mendoza a pledges /|rr,7- AIMdeanGaby PSmillion lortheconstruclionfaculty. brinoAteneo, LaSall€, anduPtogether Eugenio Lope2 thatheshould planlorthe f0r Institutecallin0 millionlive-year 0f 0f theschool's f0rlundingdevelopment facilities.

JaimeZobelof theAyala P25.8 to submitaj0intproposal invades lsocrrrsr- Egypt of a one-heclare site itslunherAsianization.

Corporation contirms donation theirMBAprograms. globalinllation AIM andrecession. board 0ftrusteos raeltriggering inMakati.lurrct- TheInstitute's crisis. facesitsliIsl fnajorlinancial iselectedchairman.

Manila.

DeLaSalleandtheUniversity isconstituted; Washington SyCip 1966:Ateneode postof president lnter-University Sc enbet- Fulle(accepts formthePhilippine ofthePhilippines lacultymeeting, Baguio 1974:tt y- Attheannual .2milliongrant mtoreceive afive-year US$1 Cons0rliu to to thecrisiswith proposals DeLa Salleobtains a t969:Jrrlrry- Ground breakino takesplace.

Jurl thefacultyresponds lromTheFordFoundation. prop0ses product a provides lines.Meliton Salazar fund increase l0r thed0na- -The f ordF0undati0n lromtheAyala Corporation US$2,|4,C00t0 commitment program lor lirst-level managers.

JurcFaurawith 94first- short-term beoin atPadre tionol a camous silein Makati. operations.

Classes program is launched. yearstudents TheMasterin Management lrrt6tand49second-yearstudents. plans Cours0 andBasic honoring WranDet- Ihe Ai fransport toeslab- Fuller is Inaugurated intormalceremonies 1967:lrlr-De LaSalleannounces Program arelaunched.

Jury- TheHaryard theschool's 0ccctfrct-'lhe paftially Managemeflt benelactors. lisha full-timeMBAprogram. proposes lormally theme4er0l the completsd lacililies arededicated.

Advisory Group MarcossignsPresid€n1975iJtnaaq - Prcsident Ateneo de Manila andDeLaSalleMBAprograms. international provideaddi- tialDecree theInstitute's 639lormalizin0 ol DeLasalle 1970:USAID andTheFordFoundation &t/sr- BrotherH.GabrielConnon .IHE ASIANMANAGER

Dwing the l%8 Fint meeting of the boardsofgovemors and trustees,Washington Syaip had cited the unusualsituIoF The AIM a t i o n a n d e x D e r i e n c ei n A I M , a s llbrary houscs conhastedwith other manaeementinover 25,OOO stitutes in other counhies: "ln the United States,business books, cas€9, andJoumab. schools are supported from various tultom sources:alumni, donors from the busiCompute]s at nesscommunity, etc.Thechiefexecutive th3 studelb' of the rhrrcl spends half of his time dlspo3al, raising funds for the school. ln many other countries,Bovenunentsfund businessschools.AIM is unusual,becausc after the initial fundin& and after the tions links to the AFII the rebels and the initial fund raising campaignand donations, DeDartrnentof Touism Thsk Forr:e,was al- subsequentfinancial rcsponsibility for the vilowed to passthrough AFP and rebel check- abilitv of the Institute passedover to the administration. that is. io the deans and the points to extract the 35 membeG of the AIM family who still remained in Charter House. faculty "Considering theeventsin the Philippines Of the 35,the 22 men (in the group) went on foot, singlefile with white handkerhiefs and during the past 20 yea6 and the adiustmmts cl.anclft. fiarch- AIM'Sbylawsareollicially highest makingtheboard of0overnorsAlM's changed policy-making body.Dsccnbu- taculty academic Management ProtheRuralDevelopment approves qram(RDirP).

that have had to be rnadedurringtheseyea$, it was quite unusual that while enrolment dropped, researchgants were secu€d by the Institute's leadershiD.Thes€funds carrv short falls in the operating needsof the Institution aswell asspur growth on the rerarch side.It was also urusual that while many universitiesunderwent periods of studentunr€stduring this time, AIM was able to avoid such disturbancesand to carry out its goals effecfvely."

To InfluenceAsianManagement ThoughtandPractlce In 190. Alfonso was elected Dresident and Bemardo was named dean by the faculty and trustees of the Institute. During their tenurc, the lnstitute hasreconfirmed its preoccupation with maintaining its relevanceto the practicing Asian management communitv. An Advisorv Council on Total Quality Management his been appointed and associatedean Horacio M. Borromeo was tasked with leading the redesitn of the MBM and MM to more closely reflect Asian marEgement priorities. AIM has enjoyed substantial increasesin revenuessince1990, and has itself introduced a numtrr of new management systems to enhance the efficiency and effectiveness of the Institute's operations. And the Institute is actively establishing key strategic alliances with other schoolsin North America, EuroPeand JaPan

lrl, forc0untryside devel0pment." is assassinated.

AIMb€comes industrialization 1083:NinoyAquino - TheSasakawa provides a programs PeaceFoundation inconductino abroad. moreaogrcssive grantto studyJapanese-Thai Jury ioinlventures. program Management 198,1: TheAIMValues statement is mOdified bylhe - Maslerin Dev€lopmeflt t0 areasked fovsrrrtt- Faculty classes.

BoG/BoT andapproved bythefacultyat its annual begins developt0 conduct executive approve a proposal meeting.

Group.

A lortheIndonesian Salim mentprograms dean P.Bernardo bec0mes associate 1976:Francisco patalyzes business theMakati itslirst0ublicofter- coupd' etatatlempl 1985:lrrl, - RD[rPconducts lorstudents andalumni.

(PDM) Management . dislrictandtheInstitute. ing;Program lor Devel0pment resi0n. announces decisionto is retained bytheDepartmenl of Dtccnlu - Mendoza 1977:The Institute duet0 deteriorating Asian Gradu- 1990:|,|i, - ortjgasresigns t0assast TheAssociation of Deans ol Southeast ofthePhilippines Agriculture oltheRepublic js elected prssident is andBernardo (AoSGM) Atlonso isestablishedhealth. ateSchools 0fManagement in itsreorganization. thedepartment dean.

Mendoza chairman. elected aodelects - Roxas frompresidency. resions 1978iJanuary Awards Propresident. iselected Fst t ty-AlM's1oth 1986iFelntaw- Marcosis toppledin the EDSA 1991:Frtnt rt - FirstManagement Mendoza gramisconducted with incooperation bytheInstitute dean. &rIiltal- ortigasis elected is celebrated. tt rsrt- Alumnitrom Revolution.

Anniversary Acer,Inc.TheInstitute Digestand isaccepted. ,rfl6r- 0rtioas WoddExecutive's resiOnati0n 0f Asian Mendoza's ASEAN andHongKonglormtheFederation titled,0eaninternational conference theposition 0f deanandchisfexecutivealsoconducts Associati0ns. assumes Instituteol Mana0emenlAl0mni vel,pingAshn EquityMafteE.Aptil - Ite AIM otficer.

R.McMickjn0 theCol.Joseph campus siteis named itsfkstAdvanced 197* Seplsnbet- AIMconducts presents a paper, Mendoza inBusi- Campus.

Drcr"fi1987:The Institute conducts itsfirstWomen Program.

Eankl\4anagement 'TheNewPilradigm: TechManaoement Japanese ness0rganizations workshop. thatthelechnology tothslaculty, sugoesting nolooy" ProMarketing Management 1980:TheAdvarced hasbecome obsolete.

1988:Fsr,uart- CIDAprovjdes a Canadian $2.3 AIMisteaching 0ramis launched. in intotherole0f women milliongnntlor research "Toward -Ine lacultyredesign theMBM ttty* 1gg2iFcbruery development, andentrepreneurship. oevelop- business, Facultyapproves Mendoza's 1081: creates Allonsosubsequently ol theAIM andMM curricula. on in- Feli0eB. Allonsois elected Dresident inga NewStrategy lor AlM,'whichlocuses AIMconducts Council.

Foundation.

Thecorporale com- th€Total0ualityManagement Research on technology in theMBMand Scientific creased em0hasis Program and0r" Management Awards TheAsianManagel lhesecond Asian munications olliceisestablished. management, an increased entrepreneurial ganizes in theYear fortheAsianManager publication.

Searching man- begins withdevelopmenl orientatjon; and,integration full-time establishes 2020.nrfth - Ihs lnstitute agement lechnology. olficesin KualaLumpur.Jakarta, Adenauer F0undati0nreoresenlative 1989:J lrry- TheKonrad "modernization provides granton and andBan0kok. a three-year inTaiwan.

1982:TheBMPis otfered

1993 MARCH/APRIL

as well as mapr Asian enterPdseswho6e most critical iesource - in critical short supply - continues to be caPableAsian Manasers, Oni of Alfonso's maior conc€rns with r€sard to AIM'S growth was the need for e;ater public recor(nition of AIM. In this Eonnecdoruin July of 1990,in ParheshiP Digesland Acer,lnc, with lNorw Executioe's AIM launched the Management Awards Proeram. The Management Awards involied searchingfor and giving awads to outstanding firmsin theregion. Thesewere outstanding comPanies in general manaa€firmt, marketin& oPerations rnanagedmt, finance, information technology, and oeorle managementand develoPmmt, and i"eti cfrosen from each of the following cormtries:the Philippines, Thailand, Malaysia, Singapot€, Indb-nesiaand Hong Kong' The-dvernors were gready involved in this effoit sincein eadr of thesecounhies, the Board of fudges were chaired by them- The

t rft D.dbatlg tro AIM cfirF|3 to tho monory ofjo€.Ph R. Mc.lllckltE ln tSl92.A,,,vY. Col@n C. Aqulno at tho t991 Managdnont Awanls Manlla dlnnoi first round of awards was comPletedby the kinning of l99l and Awards Dinners were heid in ea-chof the capita.ls.The headsof state of maly of the counhies were invited to Dresent-theawards to the winning comPairies.This exercisewasr€Peatd in 192 with the addition of dwelopment managemelrt as an awald category.

Rodrieo de 106Reye, chid o<ecutiveofficer of Pf,ibrnlife -'the t 991winn€r in the PhiliDpin€s in the g€neral rnanag€mmt catee-i - op,toted-t}t" feeling of many of the cSm6aniesina unaenhea the value of what AIM' was doins, wh€[r he told the audiealce '\N'e durinq the Maila Awads Night Dinner, noticed nobody and strove-hardfor decade us,Nowthatwelnowyou'rcallwatchingus, we will have to strive harder,"

TheSocondQuartorCentuty 25th Anniversary Instituteof Management

AIM startedoff asa Philippine institution with Asian operations. By its s€cond decade, the Instiiute had become truly Asiar' The faculty were designing Prcgrans for Asians - irot iust for FiliPinos.Bv becomiirg Asian in outlook and in beha'vior,it hadrnade the Institute a manaqemeattr€sourcefor Asia, s€rving govemi'ents, private non-Prcfit groups, and the busines3 community by organizhg multisectoral workshops, assisting in the 6orrna- with tion of training cirrters, setting up the alumni - ionferences focusedon Asian issues,and handing out awards for manage ment excellence.

Bv the time it mter€d its thid decrde, the Insti[ute had more non-FiliPino than Ffipino students. As it aPPoached the quarter ientuw marker, it was also teaching morc non-Fiiipino than FiliPino shrdents' As it aDDroachedthe quarter century market it ila:s also teaching more non-miPinos h more ovelseas locations than at anytime ul its history No other lnstitute offer€d as manv programs in as rnany locauons

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andTaste'..

Appearance Quality

ApplyingKaken inAgriculture "brainstorming." But svstematicmethod of tire basic concept assumesthat any single effuctcanhaveseveralcauses,and thercfore severalpossiblesolutions For example,assurnetlratthe problen or effectunder analyphrasewhichliter'ofoutPutofa atzs,isalaDanese sisisthe'def& rate Particular "gooi cE^S"." tn g*tst. ally meunja can be dassfied causes Poosible Droduct.

'5 ness, k4izfl means makrng Sn|au Dut inder the Ps" - Process,Plant,Poduct, I ll continuous irnprovemmts in prodpnrgram, people. The -5Psare a standad ucts and processes;it means unPrcvng anarysls' siartinq point in manutactunng "quality circle," quafity, rcitucing waste and paying dose The"processinvolves a attention to customers needs whoeemembersmustidentifyasmanyPos"defect rate" as K.niztn has already been successfully siHe causesfor the Possible; and manufacturing in th'e tested oroven and -seruice eachofthesPsmavhaveadditional"bones' comPanies sectors.'lNorld<lass" reDresentinqmorc causesunder a pa*icular Dracllcekaizen.For example, kaizgtxt€lv caiegory.T[e QC grouP must also gather nioues in the automobile industry have rcinfoinition to verify the imPact of the difdu'cedquality-r€lated costsby asmuch as20 ferent causes,then work out Priorities in oerceni of innual revenues in factories solving a particular problem by eliminating ivhere they have been successfullyirnplethe rclevant causeor causes "factor fishbone ' also mented.

In asibushess, a Krlz", is also important for agribusiness identifies five kev variable - land, labo1, because it is diftiant to raise prices for capital, Proc€ssand inPuts - which influaeribusinessproducts, such as foods and enc€l'relo. o"th"r .om-oditi"s. Therefore, inqeasing The factor fuhbone suSSeststhat many profi tability requiresr€ducing cosb. ' affect yield. But only a few are subtauses And bicauie the food sector of the in the eximple. And the iternswill included acribusinessindustry is exbemely comPetivarv depending upon the kind of problem ti"ve,sale are alsoconstrainedby the Physiand theivpe of"pria"ct. But the tool itself is ."1 iimits of the consumers'sbornachs.The uerv ,rseiul becurrseagribusinessPrcblems customer'schoicedePendson the perceived oft6n have multiple, inter-related causes, qua.lity of products industry Prcduces ' which the diasrani identifies.The company Finatlv; aqribusinessmanagers must thell direci its efforts to attacking the and can applied easily that ale cope witir minv problerns that affect both nrefer changes "add causes of Problems, rather than to correct up" iestedon a smal scale,hu which output and ptoiric"ity. Certain factors on a single cause focusins improvemmt. like typnoons and drought, air-bome insect substantial Thelteps following fuhbone analysis techniques and tools such nianv are Thete comPletely pestr not arc diseases and will setting 'within of kaizen.I wr]J data-gathering and Priority a company's conhol. Thercfore' an incorporated in tire co Wt Cause- f u r t i ' e r p i r i p o i n i a r e a s f o r q u a l i t y the Ishikawa examples, two discu; imy agribusinesscomiany must continuall. imorovemeni and cost-reduction The concePt, the ana Just-in-Tune 'bones" often rcpr€sent prove its oPerationsto comPensatercr un- EffectDiatram, Problems which deionstrate that $nall imProvements dilierent iontrollable pn:blems cqsts A yield zubstantia.lbenefits in agribusinessas which result in waste or e\cessive basis the becomes diagram comDrehelrsive well asmanufaciuring. ol ,(tuen Applfcatlon "Kaizer plan, sinceall the elements for i coit-saving principles are compatible with have beenidentified for arnlysis and action' DlagFam ideal" goalof Ihe btrlkawaCaEeEfiect aeribusinds. Forixampleone' "founding fathe/' of This processof Problemanalysisalsotmins ' becauseorc costof a Kaoru Ishikawa, Idi.^ o"ten ^u"nto to be morc systematicin their "waste" to the com- Tapanesequality conhol, developed a prob- ^"*e"'o carrving inventory is a to thinking about solving Problems, aoorcich a l) analyze to: Praducton oani,.A"compattyseling perishables,suchas iein-solvlng tool ttris systematiiapproach to thinking is airi must which factors cdtical identifv 2) Droc€ss; in i6una "&etaUtes, will readily understand L connolled; and,3) improve product qual- the b€6tbenefit the tool Provides. and accert tfre conceptof zero-inventory iry This tool is mor€ Popularly known asthe 'Just The conceptof incrernental improvement lltTlme" "culh.ue" Famers 'i irhbone Diagam" becauseof the shape part of the;Fibusiness is The effects' [l'principle is simple: Do things as and the causes outlini.ig in used know from eiperimce that big, exPensive neeaea ne princlple extends to when than a and more litde The techniqu; is achlally changes often do not work out, and they

By Prot. Francbco Roman Don AndresSorianoDistinguished Professorin BusinessManagement

"l(fun pdnciples with arccompatlHe aglibusiness."

19€O IHE ASIANMANAGER MAFCII/APRIL

purchasingmatierials,to inventory of work-in-process and oroduition of finished eoods.

According t6 quality "guru" Fannabe Philip Crosby, '!T really started with Heruv Fordin theearlv 1920s.

He set up supplien around his Rougeautomobileassemblyplant andthevwoulddelive.*n6d.d.

The Japanesepicked up this practice for a different reason. They didn't have materials that couli be wastedlike we (theAmericans) did."

Hawe3t In is already being Eacticed by large agribusinesi muttinac}lle Fdrn toolg tionals. As long ago as the early Seed 1980s,Pillsbury's Green Giant. a labo'â&#x201A;Ź vadâ&#x201A;Źty maior intemational processorof vegetables, implemented a systemcaled ?in-pointharvesting. " Process Capltal According to Austiin Llavden, Green Gianiannuallv ptd-"*. over 100,000hectaresin ealifomia and latin America. The giant corporation gocersed within three hows of harvest, in harvests seasonalvegetab'lessuch L peas, order tjoobtain maximum profit. Otherwise, sweet ma.ize,asparagusand green beanssub6tantialloosesare incuried becauseof the a.llwithin a 90 day period. Many varieties of high quantity of seconds and rciec1s.Pinvegetablesmust beharvestedwithin six hours point haryesting makes this possible,ard is of their peak freshness,and they mwt be an application of the IIT concept.

Forermrn/

Fe lllzer

Type QuaBtlV/ hectarc For sweet rnaize, for example, statistical fi eldsamplingfrcmall the30-60hectarcfarms of GreenGiant intensfies as the harvesr ao. proaches.The measuresof the field samples indude maturity rates, moisture and tempelature.This dataprovide a basisto foHasr,

IHE ASIANMAMGER

low-value animal feed.

Peas reDr€sent an even more complex (Based on Maturity) process,Different irarides of peas have difGradl|gScrla ferent characteristics, but for exarnple, peas . l will generally begin "Dba3to.'growing after their seedsare swoUen,at a Anm Focd(hly terrDerature of 40 F. a The-gr,owthrateof peas a to maturitv deD€ndson "ldoal"- Hlgh..t R{c. the daily'teniperature andthedegeetowhich attt' it exceeds 5' C. The nurnber of days to harvest for each pea-farm mav therefore varv o 2 4 6 8 coruiderably, since thb weather is not under AYorge Dq! tlrbdty Po|{od managernmf s conttol.

IgtDus,lness SolrceiSucoesfu, l4a4enent, Ne 75, edlbdW JohnFalrdd!'

Harvest schedules must be plamed "iustfor eachfarnu a 12-36hour period when the in-time" to achieve minimum waste and hawestmusttakeDlace.Theexacttimewillin naximum Plofits. hrflr dep€nd on iccurate, daily readings of local weather conditions. Pin-Doint hal'vest- Qualltyard tho AgdhEln6s in8 of sweet maize meansthe-diffemce be Cugtonrer tween'?ancy Grade National label" and The ultimate go€l of laizzn is customer

.'l

satisfaction.The level of quality depends on the coruumer because imDrovements arc madeto satisfythebuye6' p;rceptionof qualitv and value. This conceDtis called "customerdriven quality" Ihi same apprcach appliesto the agribusin€sscustomer.He(€ ar€ two examples: The faianese consumer is a very quality consciouscustom€r.The Japanesebuy fnrits - especiallyexpensive,exotic, hopical fruit like mangoes- asgift items for specialoctasions. Mangoes are not only intendd for eatin& the gift itseu leflects a specialrelationship betweengiver and recipimt The appearanceof the mango thereforeis the primary criterion of quality; taste is of cpuse a nec€ssarycriterion, but it is a secondary one,Vrsualappearanceor pe(eption qeate appeal, and that is a top quality requiremmt of the custom€r.

Therefore,a mango of highquality must havea smoothskin,withoutblemishes. There aretwo popular varietiesin thejapan€semarket. The Philippine variety must be slighdy ovalandtapered inshape,and goldm-yellow in color. The Mexican varietv, on the other hand,ismore rounded, and njuch larger than the Philippine mango; each mango may weigh more than a kilo. The Mexicar l?riety hasa combination of red, yellow-orange and

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green colors which must appear to "spr€adoufl' ftnm the rounded end of the mango.

The Philippine mango hasthinner skin. ln order to pr€serveand petect its appearanc€, some areas of the Philippines wrap each mangoindividually,inoldnewspapers,while the fruit is still on the hee. The objective of courseis to prctect the product fiom the elements- r,yeather,ins€cts, fmit bats, small wind-bome stones,etc. Special care is also exercisedin picking and packing the mangoesfor delivery by air. The end result is an unblemished fruit acceptableto the Japanes€ conflnner.

TheJapanesecoruumerisawealthybuyer ftom a highly developed country. But customerdrivm quality is necessaryeven in a sirnple and basic product like rice. In a e sear€hstudy conductedin the Philippines by Abansi, Lantican and Duff, the team discover,ed, for examplg that even low-income farnilies were willing to pay more for milled "foteign m,atterconrice with visibly lower tenf dtut, husks, etc. These impuritie appearto lower the value of the product in the eyesof the consumer.For a poor fanily, rice purchasesmake up a signficant palt of their income, and the buyer is very consciousof getting the rnost value out of eachpuchase.

The team also determined tlEt higher incomefamilies in their sampleof Filipino consumers preferred short-grained rice to long6rained rice.Sincericeabsorbstheliquid that it is cooked in, lower-income families prefer large grain. However, middle-income and upper-income families denonstrated a bias for a new, short€r-ain, variety of rice calledIR 12,which corrunandeda higherprice.

The study conduded that both uban and rural consumers of rice are influmced by qualitycharacteristics.The high-incomeconsumers,as expecd, ar€ more willing to pay for rice that is white, trarslucmt, short, undamagedand "pure." Thus,evmabasiccommoditv like rice must be produced incorp6rating the kaizenprincipies of customer-oriend, cgntinuous improvernent.

Co0ntrl€s l6&anIn Developlng A form of III hasbeenpraciced on plantationsindevelopingcountsiesforyears.long beforethe laptop computel inMalaysia (thm Malaya), information on the quantity and quality of output of individual rubber h€es was prepared manually on index cards,and the inlormation was mourd on each t€e, protectedby a weather-rcsistantplastic enve lope, and updated on a daily basisduring the harvet period.

This procedue is sirnilar to the famous 'aanbanilstem" of inventory conbol in the faaory; kinbanis tlreJapanesiword for card.

Thecardsignalsthe authorization for the next batch of inventory to arrive in order to maintain the minimum stocking levels on the factory floor,

For the rubber iees, the card indicates,for example, approximately Ac{vltee Dunthn Locauon how much morc nrbber (days) canbe tapped from each Crtdrg hee. The system snppleArecntht6 FrE& L menddecision-making E L.ifrg Plantrth based on visual irupec"experienie."

PIHA tion and Trr|8Do4 Unfortunately, plantation laborcrsarelessliters.Lc'tB atethanJapan€sefactory workers. And therefore Pndr..ha n cdw the system inqeased the ordrt St don work load of thoee fuw P.cl# plantation foremm and Trfreodhg iupervisors who were Lt&ate. Higher manageScbcfirg ment felt that the time of Or@ Fortl Docka & the foremen and superPack*ha visorswasbetterspentas lrdtg managers and ndt data collectors.

Although the pocen4iddrrg dure was not initially (co0t!|r|!) { Br| r Boatr completely successful, imuovementsinstatistiHD.trftrg cal-field samplingsimilar l||dlrE ft.rlFlto Rlpaxr 3€ to the GreenGiant proceSt! Ddvaay dure and the use of trained technicians on Mllaldltf BdlStoI3. the plantations, have rcsoltE sulted in better "mainte nancd' and output fiom ' 'Chlqulta'lie/p€d lhfted FnJil' k Suffistul the plantation "factoq/' fu)@: fux, Hov Etlb!.tsii,€ss - the rubber trees. ffe!148el'lpnt,p4c t26.

Ttris example illusbates both thtopportuthe solutioru ofli:red by the quality circles, nides and the difficulties associated with applyng kaizznn a developing courFy. In thm the processwill ultimatelv fail.

XaUi rs a top-tcbottom ivstem. While this case,a rninimum level of training of the work force was necessa4rfor the system to top managernanimust provid! the policie and the motivation, it is tlrc "boftom" layer of SUCC€@.

Howevet it is wlong to assumethat plan- the organization that wil make quality work, tation labor cannot be trained to actpecisely, becausethe farmem, the plantation workers or that workers l,acka senseof timing. The andtheirinmediatesupervisorsdirecdytend verticaly integrad banana industry is an the qops and nanufach[e on a day-teday example of the distribution of a pelishable basis.

IGizer focuseson orstomerdrivm qualgoduct to allow the maximum possibletirne forthebananatoriDenontheretailers'shelves ity; Orat is tle goal. Profits r€sult ftom customer-oriented quality consciousness.The and in consumersthomes.

This example is based on a processfor basicphiloeophy of latzezis that Fofitability shipping products frcm Soutlt Am€rica to is rrotan obFctive.Quality is the obiective,and NorthArnericawhichwasdevelopedover4O Fofits will r€sult ftom quality.lhis apr'roadt is very diftrcnt ftom the obptive of many yearsago: (seeabove table). top managementoft ensets Eachstagein the bananadistibution sys- companies,whe1re "T7, annual tem car face rmexpecd delays whidt may a goal like PIofit Srowth.'

So the finst and most important step in originate anywherc in the syst€fi. Nev€rthel€ss,this systerns€!'v€sthecoruumerwell and implemmting katze, is to change top managenmgs aftihrde by estabtishinga commitit is still v€ry mudr in use.

Indeed, the exhibit demonshates that mmt to quality /@tzarrequir€sactiveparticipation atall levels of the company. It is a total system that rc- Ite longiTem The obvious, immediate and univenal quir€s the support of top tnanagenmt, and a commitment to quality by the whole organi- reason why kaizen iF appropriate for zation. If top managernentis not r€c€ptiveto agribusiness is tlBt quality improvements

19S Tl{E A.SIAN MANAGER MAFCFYAPRIL

will r€sult in substantial coot reduction and increased profits. The agribusiness s€ctor should be able to rcplicate a quality-coot rcduction of 2070of revenues- similar to that achievedin the manufachring sectot if only b,ecausethe opportunity for improvement is so gr€at.

For tlre medium terrr kaizn repr€sentsa competitive advantagefor agribusinesscompanies in developing countries, given the structural changes that are already taking Dlace.

And what does he need to meet the challengesof the Year 2020?How does he ready himseli what does he have to know - not onlv to suwive. but

The Asian Manager brings together the besl minds of Asia, North America and Europe to give you a steady flow of new ideas and developmentstrategiesand always with a contempora-ryAsiar ^..

-l-l-X-/ --rEAh| itrirA c,-Al-

t

"Becasethe bod sectorofthe 4ilhrslnessindustryis extlemelyconpetltlve, salesarcalsoconstrained bythe physicallimils of the consumers' stomachs."

JJ

enterprisesand govemment and nongovernment organizations, Zre Asion Monager focuseson today's managementhends and theh analysis, real-life management issues and the opinigns of key decision-makers.

For examole: 1) Domestic markets are gradually opening up to intemational competitio4 and competitive pricing evolving ftom quality improvements will be necessarytomaintainmarketleadership; 2)Much of the agribusiness industry is still in the mass-marketing, distribution stage, but quality-conscious niche markets areaheady developing as incomes rise, and as the consumer is presented more choices; and, 3) Agribusiness is the logical choice for expanding exports, sincemany large develop ing countries like Indonesia and the Philippines possessboth absolute and comparative advantage in specific food, forest and aquaculture products; international markets (like Japan)are much more qualityconsciousthan the domestic market.

For the long term, /<aizerreally rcprcsents a processfor educating managers and their staff, by giving them a new persp€ctive to pursue quality, and by focusing their attention on cost competitiveness. Quality-consciousnessbinds an organization together, The ordinarv farmer or Dlantation worker may not care about cor&rate profitability, but he and top managemmt do understand what a quality prcduct is, The farmer or plantation worker can identify with a quality product or crop which he or sheis direcdy responsible for.

I

lHE ASIANMANAGER

MAFCIVAPRIL

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MakingStrategies

StrategicConsulting: Dimension TheAdded rsnt's ercfusivita,tlv corqmtiofldtnnd h) throuihdiml nat ntler culthnk ih cti?flt?te thanthnughnore Mitiotul ttrutrs$ rluris adlertbing.

By Anonb G. Um & AntonloUchauco' Consulting Andersen

trategy,the Noodbt lt

Shategy- thebusinessbuzz word of the d;ade - led to the rise of the '70s and stratesic consultant in the '80s.Thesediya the term haslost much of its cache,having been replaced by such conceptsas JII, TQM and a host of other managementtheorieswhich have in h]m, led to ti'e rise of consuliants in theseareasof sPecialization. Wheredoesthis shift in management hends leave the shategic consultant?

Ar€ stratesicconsultantsstill rclevant given the currerit bushess environmmt? Do they still have a rcle to Play in the growth and development of today's corporatioru?

To iilustrate the role of the strat€ic consultant as well as business'resPonseto the need for consulting services,we will cite three actual cases.

In the lastt'eu yurs, a Euroryn mult Ptinal rflonufacturerof electmnic,conrytet and pftductshasseenits narket telecomfiunication slureslowlvshink.,+s a rcsullol sluggisheles' the comwiv's pmfitnbilitv hasdrclineddrasliwtty. aaiitiin,ine compny hasbembext by orcinizatirrul wobleng.Fu instanc"' thehtods maiorfunctioruldlryrtnflts haoehtd of-se1)enl oneanothtt This communicatingwith woblens 'nas matketing, mo* it ar1trr"tt1orthecotnpany's sla, productionand financial deqrtnents to cwdiiata To addressboth thaseta*et and inIerul pfl)blens,tuwgem?fl t rccentlydecidel to ratiowlizz thccompany's Wduct lin6, chws' ingtoconcmtrateona relatfuxlylimited tangeof viducts. Mmugemml alslrd?cidd to reoryan' 'izz arcund hn bosicvroductlircs as rrEll as to imotemmtwlicies and mssura lhat rwuW enabL the firrn to intpfovecustoner sertticeand inoqse customersatisfaction.

A powrn ent rcwrch instituteuas rectTttly prunlizzd. Sptm[ing-costs,tiShtt budgelconsftaints,gowmtnentburauoacy, highemployez tunroofl, flequmt bruMou'n oJequipmfll rcandpoorcapacsulting fntn outdatedtechnology ifu ufiiz4fion uve sewmlfactonwhichinllumced the dec*ion to WrvatizE. First, a lox-etenpt foundationuns formeduttich lqsed ant rehabili' 'tatd the goumtmeflt facilities.It hird selected

1993 THEASIANMANAGEBMAFCI-YAPRIL

As a rcsult of the strategicdecisions cited in these three cases,a faltering companv has been rcvitalized and its empiLasison quality s€rvice has led io hieher levels of culomer satisfaction; private sec{orcomPanes now nave ac_ iess to the R&D servicesof a leading progressiveresearchinstihrte and a iuxurv resort is now open to aflluent local;d for€itFtoudss. Thebeneficof these decisions have trickled downward: investors in and emPloYeesof thes€enterprisesnow stand to Sain substantiat benefits accruing ftom higher salesand increasedproductiviry To the uninitiat€d it would s€em- as it often do€6 - that the entirc change process full into Dlace painlesslv and without problems'.Only a few oi thou. directly iffeaea by organizational or sbategic chaneessimilai to thosecited aboveare ever pri\ry to the enormouspr€ssur€sand trigh'states - involved in arriving at shatesic decisions.

At every stage decision makers are acutelv awar€ that their decisiotts potmtiatly placetheir organizationsat considerablerisk. Decisionson targetmg a specific market segmentor on offuring nlw servicesinvariablv require allocation of resoutes which-could otherwise be made available for other ventures.

From the onset of the decision making Drocess,it is essentialto determine ftat benefits eained ftom strategicdecisionswill onployeesand begonchargrngfeesand royaltiu outweigf, the cosb of irnplementationaswell lhe Since fto ita R€tD sn)ies. wilalizttion, 'bundation hasbegunofleringa wider nnge of as exceedthe benefits that could have been seruic*, from Vduct d4initiofl and ilol pltnt "gmeratAd ftom alternative ventur€s.

To compound this rislg rnany decision toluII Kalc corrtterci^liTttion. set-I,tps makers are unable to gauge their o4ganizaAnticiwtinga tourismknn wilhin ASEAN' tions' level of cofiunihnent to the dranges in a a targePiitiwina conllonrrale decidsdto inrxst they wish to inhoduce. Aplan dweloped the desPite stiu may backroom hqitv in theresonindusw. Instad olcornpetiflS corporate wellof months and several b€6i of intentions the corporation resois, existing agairct hadin -ProveunPalatableto besanbulldinga fist -classrcad ona rcmoteisLl thoughtoutPlanning firm's manaqers. the islmd stthemttuEt Cmrpp*a' oliUi*rrn."tW In many caseJ,decisionmakersincorrectly vxre tofu stl6t!.niimm mte at thbluurv t.?s'trt that thet knowledge of their talget tttut tle assume nt6 Tb thanpmnilingncttct nallyhigter

"Unlikemostotheloonsultants, arctyplcally strat€c consultallts ls calledu,henano€anization aboutits futurc uncertaln direction."

rnarkets,competitors,suppliers and other ex- crossroadsand tlnt certain enliehtmed deci- hard facts on their markets, their organiatemal factors on which their forccasts and sionsmust be made. tion, consumer problems and other factors expectationsarc based,is accurateand valid.

In the example of the Ewopean multina- that they would probably never have unThey should confirm their information and tional, the corporation wasbeleagueredon all earthed on their own. the impr€ssions drawn from that inlorma- fronts. Management was confronting inMyopia, personal relationships and cortion. Theymust alsoexercisecautionto assure creasing competition and dedining marka porateculture aretwt someof the factorsthat that their bias€s do not interfere with the share as well as deepteated olganizational isolateplannels ftom hard and painful facts. planning processor influencethedesiredout- problems. Top managementadmitted that it Critica[ information is obtained-by the concome of their decisions. had no idea where to even begin addressing sultant thrcugh a variety of dah gathering Finally,despitethe attractivmessof a new process€s,ranging from interuiews to finanplan and the guaranteedcommitment of top In the second example, the government cial and statisticalanalyses. management,decisionmakersshould alsobe institute was facing diminishing govemment ForthercsortproF,ourofficesintheAsia awarc that to benefit from the Pacificregion conhibuted inforplan, the changesit requircs mation on vadous rcsorts and must be morc than iust workdifferent resortmodelsaswell as I Eddnd I cot nrd able.They mwt be tnth workdata on the featur€s, customer I lnrlytb and I Otl.cttr.

Fo.cat ableandsustainable.Todothis, volume and financial DerformI I S"firE many factors must be conance of topof-theline, highly sidered: manpower skills, exdusivercsorts.They wer€ also guarcg I ticrnd l I techrological resources,operable to gauge, through interAdylb lmplr d lthn |nd Dcvdortnnrt I I I ating plocesses,capital availviews, the values and needs of I Ascrymnt I abilitv and corporatecultur€. clients who ftequented thesere.

BecauseofGedegeeof unsore. This infoniration was us€d E riltc.{on certainty inhercnt in planning to validate:1)the rcvenueDotenI for the future, a growing tial in the tourism industry; and, number of corporateplanners 2) the succes of higlrly differenand decisionmakersnow emtiated resorts in other Asian Pta!. I > Phr. ll > Ptnaclll > PharolV ploy strategic consultants to countries. assistthem in arriving at pivVery often, the dient may not Arde?son Comultlng'3 nln6€tep etratedc plannlng proco3s has be€n know;hatinformation isissenotal decisions. provsr ofLctlvs In cotporato and publlc€€ctor apdlcatlons. tial to the planning processTheChallongeof and gathering data is a time conStrateglcPlannlng subsidies.To comlnurd rnafters,key scien- suming and sometimesuselessundertaking.

Consultantshave beenaround sincetime tists were being puatd by higher payrng By employing conceptuatizingskills and anaimmemorial. But the professional business private instihrtions. Management realized lytical methodologies,consritants areableto consultantis a morc rec-mtphenomenon.Be. that unlesssomething was done, the organi- provide frameworks for key analyses.Data giruring with the accountancyand engrneer- zation would ev€ntuallv ioin the rarks of gathering is guided by theseframeworks. ing fields, consultants for diverse business other non-performing govemment entities.

Clients frequendv use their consultants disciplines and functions - ranging from Although the institute's managers had methodologiedand irameworks long after a corponte inage improvement to Iff imple- plamed their privatization entirely among consulting goject hasended.They have intementation - have becomemore popu-laras themselves,several questions remained: grated a continuous cycle of data gathering busines hasbecomemore complex.Ibday's would the dometic market sustain another planning and action into their operations, businessenvircnment demands that institu- independent research institute and which thus imFoving their capacity to anticipate tions continuously and coruciowly copewith specific services should be offered? ltr'hat and rcact to intemal and external changes. change,constandy renewing themselvesto market segmentsshould be ta€eted? meetorganizationaland marketdriven chalIn the third example,the dimt company FomulatlngStlate$f lenges.Typically, the dient is aware of what wand to capitalizeon thetourismboom that After analyzing the dienfs businessand the problem i5; too often however, his ag it foresawfor-ASEAN.Itwas an atkactive new developing a comptehensiveunderstanding prcach to the prcblem consistsof uncoordi- line of busines, but the dient wondered how of the dienfs indwtry and the competition, nated, piec€meal efforts. The consultant is it wduld enter and compete successfirllyin the stEtegic consultant is expecd to rcchied f6r his highly specializedski.tlswhich this new market. ommend a basic direction for the organizafocw and channel laryely urdirected efforts Wtth the help of sfabgic consultanb,the tion. For the multinational letailer in the first into an intetrat€d welldefined, overall plan. thrce o€anizations id€ndfied a basicdirection caseshrdy, the data and the analysis of the Unlike mo6t consultants,however,strate- and deterrnineda sDecificcause ofaction.Two competition for the different product lines tic consultantsare typically called when an of theor8anizatiodalsoask€dthecqLsultantto indicatedthe needto focuson fewer lines.The otganization is uncertain of its future direc- developfunctional and implernmtation plans marketsfor someDroductshad dedined with tion. Extemal o! intemal factors have eitier for adieving then ob$vee theadvent of newiechnologie; other markee cleated $owth opportunities or thrcatened were ruled bv comDetitors who were too the organization:s existence.Gmerally, the Rovlders of Relevant lnbmatlon enhenchd to iredisl&ged without sFnding client is rflsur€ of what dir€ction to take; he Consultantsarecalledon to Drovideinfor- an inordinate amourt on marketing. may not evenknow where his goblem origr- mation which - for various reisons - is not The companyhad to offtet the cut in prodnates; whether it is a result of market or readily availableto the dient. ln certain situ- uct linesby increasingils sharein the remainmvironmmtal upheavalor of functional and ations, decision makers may not have ac- ing lines. How was it to achieve this, in operational issueswithin the organlation cess to objective information. When we addition to solving its oiganizational probor a combination of thesefactorg What the began working for the multinational firm, lemsand creatingan mviranment for grcater client doesknow is that his oryanization is at a we had to confront senior rnanagers with competitiveness?

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Forthe govemment researchinstitute, privatization seemeddnstic but logical. lnterviews with the R&D heads of different cornpaniesshowed that therc was a market for cbntract R&D services.Next, other questions had to be addrcssed. Shou.ldthe new entity serve the specificneeds of only a few selectindustries or provide abroader rangeof servicesto mor€ sectors?How would it differentiate itself ftom other government institutes and univerities that provide similar services?

For the ptoposed rcsort,therewerc skong indicators of attractive tourism rcvenues.

Tourist arrivals werc on tie rise. Govemments throughout ASEAN were intendy financing and promoting tourism development.Investorswere betting heavily on new hotels and rcsorts.

Critical considerationsinduded: should a resortoffering the usual facilitiesbe setup in a well-known, popular location? Should the ratesbe as low as Dossibleto draw dients in large numbers? Should the rcsort be rnarketed throush the massmedia? ttrc capacity to dwelop strategic rccommendations that arc both creative and credible testsmorc than the data anallsis skills of a consultant.It measuresthe consultanfs: D€!ft of lndGtry axperLnca. To preparc a suitable action plan, the consultant shodd bethoroughly familiar with the di€n(s industry, with hismark€tsandhiscampetib(s.Oth€rwise, he risk rccommending shaFgi€s Otat ignor€atb:active tar8etrurk€ts or thatcampetito[s caneasilycounh Ocdt of krFr'rledgb ot the cllor|t's bult nasa. Aside flom the str,engthsand weaknessesuncoveredihrough datagatherin& the consultant should also be aware of the less obvious feafuresof his dienfs organization which are neverthelessimportant to the successor failue of a strategy The organization's culture, work ethicand informal power shuctures allesomeof thesefees.

Bl€adt|r of buslncE oxpadonco.The rccommendationsof a cpnsultant rcflect the lessons that his experierces have taught him.

Their worth is gaugedby thesuccessor fail.ue of other companies that have used sirnilar strateqres. convlctlon and polsuaslve powr3. A consultantmust becapableof banslating conceptsinto a€uments that enlighten ard persuade. His confidence,his ability to p€6ent his caseand bu.ild consensusarc neededin a strategicplanning engagement.Often, a winning strategy is the outcome of sharedeffort by the consultant and his dient.

When hedevelopsshategicr€commendations, the consultantalsobrings with him the breadth and depth of the businessexperience of his organization,in addition to his peEonal qualities. Accessto the experienc€sof othe! experts in sirnilar or other fields is another clear advantage.

The consultant also De6onfies the commitment of his or8anization to sbategic consultins. This commitnent is demonstratedin the tr;inin& and continuing education and new skills and methodol(€ies that ujrderlie every strategicrecommendationthe consultant rnakes.

StlateglcCon$ltlng at the Crc€srcadg The multinational had to rationalize its product line to suivive. But morc important

"ly'ery often,thecllentmay notknows'hatinbnnationls essential to tfie plannlng p(rcess... lesultilEin often wastedefforts."

than the decisionto cut out unuofitable lines was the company's new focus on improving customer service and satisfaction. Implementing this sbategy involved rcorganizing along two basic prcduct lines intended for separategrcups of dients with distinct needs and values. A new organizational structue was provided that unfied departments and divisions under this cornmon strategy.

The new r€solt differcntiated itself from the many other rcsorts in the country and concentrht€don a small but wealthy target marka willing to pay morc for exdusivity and Drivacv.

Tite cons.,ttant provided the developer frmctionalspecialists- inrnarketing finance, organization and operations - with a solid for.rndationin planning. \4ith the decision to focuson a specificmarket s mealt,forexample, facilitie planning and marketing converged; without that decision, marketing personnelcould havelaulched a massadvertising carnpaign which was ill€uited to the highly exclusiveand isolated resort envton-

ment that the facfities plannen had in mind.

The strategic consultant contributed the underpinnhg from which functional tactics were &awn. And by sharing his methodolo giesand skills, the consultantlaid the groundwork for future planning by the company, irrespectiveof line of business.

Tle marngos of the R&D institutedecidd not to privatize the entire instihrte at onetime but to leasesoecificfacilities that would cater to a limited number of indushy sectors.This enabledthe new entity to developthe€rg€rtise and cr€dibilitv- and acnuirethe ftuds nece. sarv - to exDandinto other sectors.

The coruultant also rccorunended that the f oundation maintain broad R&D capabfi ties for specific industry segments.He sugl gestedan oryanizational strategythat would make use of both teclutical and poFct managemmt skills in R&D proie'cts.The consultant also helped develop a marketing plan dtecd to key dients.

In all theseinstances,the shategicconsultant went beyond recomrnendingbasicdtections. He prepared specific plans for implementingstratery. Oncethe newolganizational stmctues werc in place,the consultant helped enswe - through visioning and strategicplanning workshops - tlEt the emphasis on customer service was cornmunicatedtoall themanageGinthecompanies.He helped stengthen performance evaluation systems,recruitment and rctilemmt policies and other human resoure aspectsof the organizations.

Thesethree experiencesshow how shate gic consultants help dims dwelop strategies They show too, that like all busines€esat somepoint, strategicconsultinghasreacheda stagewhere consultantsmust choosewherc tht want to go.

The work of sEategic consultants today encompass€sa hoad speckurn. The company propo6ingto setup ar€6ort,for example, hir€d a consultant essentiallyto gather data and validate a shatety and a gmeral bwiness direction - no more Oun Out. The two ottEr companies,alsosoughthelp in deigning hmctional plars for carryrng out their sh:ategies.

Sh-ahgicconsr tanb have beendnwn by still oth€rcompaniesintotheactualimplemmtation of functionalplans As st'atqjlc consl tants becomerrole involved in functionalplaming they tead perilously dce to the areasof hunan r€soulle, organization,rnarketingand oth€rconsultanb In-somecase,theycompeteoubight with dlese corriJtanb, blurinS pmcticedistinctions.

Strategic consultants must begin to ask themselve whether they should leave functional plarufng to the functional experts.

In our case.we have oDted to offer a full range of services that go far beyond pure strategic plannin$ clients want more than strategies,they want to seetho6e shategies work.

I

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Fromregional leader to worldleader...

Singapore in the Year2020 By lba?]a C. cutls.?62 ManagingEditor ingapore, one of East Asia's econonic dragons, will be a member of the global 'top league' by the yeir 2020.Aicording to a counfy scenarioprepared in corurectionwith a projecl of theAsian lnstitute of Manag€ment,this citv€tate will becomea gldbal village, a hub for ouslness,arnoa centertor overseasDurchasingoffices,bunkering and financial servKes. _ The scerurio was based largely on t h e e x p e c t a t i o n sa n d p l a n s b y Singaporeanauthorities in the publication Singapore:The Next ltp.lt was ncorporated in a paper, "Asia 2020:A Scenarioof EastAsia in the Year202O" which was presentedby AIM professor Victor A. Lim in the'conference ,,In Search of the Asian Manaeer for the Year 202O" (see The Asiai Manager, April/May/June 192 issue).

The conference,which was held irr Manila, wassponsoredbv AIM and the Asia Pacific' honomic Cooperation's Human ResourresDeveloDment-BusinessManasementNetwork.

The scenarioadopted the assump'Singarym:Thc tionsof theauthorsof Nert Iap. Oneof thesepeggedthepopulation otSrngaporeatapprcximately fourmil. lion by the vear 2020basd on emexpected birth rate of around 2.2% annually. This would rEpresenta sharD increasefrom the populition of2.7 miiIion by the md ofthe t 990s.According to another key assumpion, politics would remain stable and that th€ prcsent form of govemment - an elected presidendalsystem- would continue.More important, the transferof uesidential power would be smooth.

Godlnuous Grwth furthe Dragon The Singaporeaneconomyis expectedto continue expanding at a safisfaclorypace.By the year 2020,Singaporcwould still be at the forefront of the economiesof the Association of SoutheastAsianNatioru (Asean),accourting for the rcgion's laryestper capita income.

THEAShNMANAGERMAFCI-I/APRIL 1993

cover mor€ atEasand sive it an extra advantageover other c6mpeting mvirons for production and invesinent. In line with this, the ftee market concept which hasservedSingaporewell wouid be rnaintained.

By this time too, the "growth eiangle" involvingsingapore,Indonesiaand Malaysia would already be h an advanceddwelopment stage.As a rcsult, Singaporean iompaniei would have considerablymor€ investmentsin Indonesiaand Malalsia.

By the year 202QSingaporewould also be benefiting from the R & D (research and development) business parks it is currentlv developins. The iity+tate has madeR & O iarlis top priority Plojeds to complement its development as a major busines hub in the intemational context and to ensure that it will rcmain at the cutting - edge " of specific indusb'ial activities.

The industrial parks operating by the late 1990swill be suppl-ementei by large industrial estates fi Ayer Rairh ard RochesterPark, an aviation business park near Selatar Airbase and a medical busines park near the Sinsaporc Ceneral Hosiital

'Servicesandhighvalue added

TheRlseof tocalCompanles In sharp contrast to the start of the countryseconomicdevelopmentwhen multinatiorulspovided theimpehrsfor Srowth local enberpriseswill play the mairr role in Singapore'sfuh.ueexpansion. They will iccount for more ihan 507oof value added and 709ooI employment By the year 2020,Singaporcancompanies will have gown in size and sta!.re, rcaddng international standardsof poductiol, quality and innovation. As locals, they will place greater emphasis on ecology anil the envfuonmenl,Thev will alsobeimportant investors outside Sinfapore.

Servicesand high value added manufactuing industries will be the rnaior activities and, subsequently,will accountfor an incr€asing shar€ of the total work force. As specialization and high technology take firm root in Singapore,the demand-foran

manufactudng industlieswouldbe tte malolactlvities"

It would be a maior firuncial, br,rsinessand specializedindushial hub.

To sharpen its competitive edge, Singpore fy thG tirra wouti Ueengag& in trtltr valueadded forms of production. Is capablitieswould befocrued in specificnichesrather than individual projelcts.For example,by the late tggOs,Slnea-poie would atrddv b; the world's biggCt iroducer of Wincheiter disk drives.

By the year 202Qthe country would have expandedthis and other specializednichesto

increasingly highly skiled labor force, indudine s;ecialistsfi variousfield sof prod uction, dngineering,finance and creative services,will grow.

Efforts will be rnade to attract foreiSn talent and import skilled as well as unskilled foreign workers to easeany tiShtnessin the labor-supply. At the same time, training of local woiiers to ensurea higtrJyskilled and adaptive labor force will be a major thrust 5pendingon educationwill increaseand the oualitv and scope of educational proer'amswill be imprbved. Educationfor iheireparatoryasw6ll astertiarylevelswill be broider in curriculum and higher in standald. and the preThe preparatory program -umwiLlbeexPandedto Daraborvleielcuria include-moreprirnary schools.Schoolwill be on a wholediy basG.There will also be imDrovernmts in private kindergartens to enlble them to offdr two-year progranrsto fourto five-year-old childm, using a PreParatory curriculum. vear ' On the tertiary level,therewill not only be

will be more than 30!00 and at polytechnicsmorc than 32000.Govemment spending on education rvill amJrmt to 5% of the 8loss domestic Product (CDP).

A Betterljb br Slngaporcans Quality living will be a common theme.APart ftom imposing higher standards of environmental quality and Pub. lic health, the SingaPore of the year 2020will also have devoted spacefor a "people's city" where li-ving is comfortable and recieational facilities eag ilv accessible.Among the leisue Prcjeds oP eiational bv this time will be the maior r€sorts at Sentosa;d the Southem Islands.

A wider choiceof howinswillbe available and new housing forms will be in place. As themiddleclasssrows, more medium- and lowdensity hou;ing, ranging ftom- aPartments and condominiums to townhouses and landed properties, wiU be constructed, some on prime ibcations, such as the watelfront. ' TheSineaporeofthevear2020will alsobe "mi,te exciting. The hub of yearc,lttutattv round ailturd acivities would be the SingaDore Arts Center at Marina Center, iupplemented bv the other theatersand cultrrial centers such as the Kalland Theater, Victoria Theater,National Stadium and Sinsapore " 'The Indoor Stadium city+iate would also be a mapr filrn and creatiie servicesc€nter,hosting intemational fihn festivals and the production of rnaior 'ltr motion pictues. terrns of moral, racial and religious value, Sinqaporewill continue to be a multiracial socie6,,with a pr€dominantly Chinese DopuLation.'Theinculcation of the Positive vaiues of both the East ard West will be propagatedin schoolsand though other social media.

As Sinqapore becomes more global in emphasiswill begiven to the outlook, mr-ore need for SingaPoreans to lemarn "singaporeanin heart and mind." A nonqoveln-mentorganization, th€ SingaPorc intemational Foundation, established in 191, is expected to help bring SingaPorc closer to Singaporeansliving overseasas well asto ex-5inlaporeansand to friendsof Singapore aroun"dthe world. I t is envisioned to iuiture a"singaporean consclousness" among Singapoieins in foreiSn lands, mainlt throuih the overseasSingapore Clubs'that will continue to exPandin size I and number throughout the world.

"Bythe yerlt2Omgovemment spendlng wouldamountto 5%of the oneducation goes danestlcPrcduct." "oPen more udversities, but the concePtof universities" will be implemmted as well.

Existing udversities will also be upgraded.

By thetear 2020 eruollment in universities

f IsN'[E8illo,?-!]bbltl (APPRECIATE HOW MUCH WE PUT INTO THEI''I.)

STANOAROI.IOOETS

STANDARD T.ATURES

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MARCWAPRIL1993 THEASIANMANAGER

Twostepsahead...

Singapore's Excellent Companies

By Kn Gatbontor

candysinceindependmce.In 1!)6,5,

AssistantManagingEditor

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manufacturing'sshareofGDPwas '18.2 70.At pres€nt ifs share is ap pronmaeii' 2o.:zo, navrng rari&r

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'i*trtfr"ft:tr*fl",'m-ill#nff Htrud expenditur€from the United Kingdom.ngt Cych C'.h & Car{a€le: Canlago:Maklng itap4 tl|o le tlmos. tho b.3t bot of lo{| only contribud hoapproximatelyonesixth ' of Singaporc ot Singapore's_ s gross grossdom€shc dom€sticprcduct, but brake brakeon on the the countr/s munbys non-oil non-oiloeorts expots (ap Foduct, but

rapid and reasonablv uniform ec6nornicdevelorrmeni.

prcximately ,1070of Singapore's-domestic GEX{ERALillAt{AGEilEltT iron-oil exp6rts go to ttre tinitea States).Says Slralrgil{-a Slngiaporo the consultanci group, Business IntemaShangri-la Singapords daim to fame as tional, 'To some, this demonshated that the one of the world'imost luxwious hotel-reSingaporeaneconomyhasfinallycomeofage sorts is well-€amed. The hotel has consistand-*as no longer rirlnerable in the classlc I ently been rated among the world's best in newlv industrialized manner, to sharp Ii suweys newly survevs conducted cpnducted bv by iuch audl publications as dowdowru in world trade. the Bi{sinsssTrapelti. Exeaaiae Trqwl a d, Havingsuccessfirllyconveriedibelfintoa Euromoneu regional &nter for minufacturing - wlttr a The Sirangri-fa's splmdid architectue, biastoward sophisticad sophisticatedprcducts produc6 and serv- sprawling golf goif course course'and and gardens evoca- the city-state ices-the citv;feb appeirs arrrplrs to ro have havp cawed carveri II d"ay drr"t" zuft&t * 'J"ir Uottr t-tt western wFsrprn.;mf^rr 'n.t.''iices cimlort and o.iouta secureftiturefori-&U. Govemmmtand entai chaiir. lts over lj00staffar€amongthe bwiness believe that the nation's long-lerm most Ftraciousand attentive in Asia, whe!€ potentialliesins€rvic€s: highly sophisdcated seryice standads are generally considered serviceswhich rcquire erperience,like bank- superlative.

'Sinc€ ing and 6nance,or high ;apital inveshnmb it fiEt opened its dooE in l9Z, the and otherspecialistservices-zuchasengineer-i Shangd-la has Seenthe choice address for ingand constructioryand sofa4 theyhavm't I tho6e traveling to Singapore.Unlike other beenproved hotels, the Shangri-Ia has zucceededin at'also wrong. .

Shengft{5SltE pofe:lv6tem con brta and otlental It hasnt h;rt thar the so tractingadiverse"group of internationalhavchafi. called "Faditional stalwarts" of ] elasrXngingfto;faniiliesonvacationlothe the countrj/s industrial s€cbor- i disc€rning businesstraveller. It has escaped ship rcpat and shipbuilding| beingpigeon-holedasabruinessman'shotel havealsocontinuedtodoreason- or a faniily resortby offering gu€3tsa vaiety ablywell.Shortageofskilledlabor of services,sup€rior r€staurants,r€crcational remains Singapore's central ] facilitiesandthreecartfullythought-outtypes problern. And while it has yet to I of accomodation.TheTow€r living, with its erneqJeas a seriow impedimmt I deluxe guestooms, and the thopical Win& to growth, the couniys labor I withitsspaciousbalconiesand "roomswith a shoftage may yet have serious view," generally appeal to families or long+erm implications fior the vacationes; while the hotel's newest sectiory manufacturingand financial sec- | the luxurious Valley Wng, appealsrrore to tors.

I businesshavellers. Shangri-Ia's multi-nide Singapore'seconomic prodle: I strategy appeaF to have paid off The hotel has been transformed significlaims 10% of the total toudst rurket. This also ernptoyed one fifth of the labor force.

Perhaprit was_- and still is - Singapor€'s good-fortune that as a compactsociety govemedbytechnocrab,economicdeveloPment was notat logS€rheadswith politics as it has been in so many fledgling na-tions.

Irss than thrce Less tliree decadeslat€r, later, Singapore now boastsof worlddass economiczuciess, rcmarkable grovlth lates and a per capita income of U5$14,600 To lo show how viSorous SingaPore's economv is, consider this: Britain wai economy was over- i talm by its former colony in Per caPibaGDP by the late '70s, And desPite international economi(urcertaintyresultingftomtheGulf War and a severeUS rccessioDSingapods economy8r€w by a r€spectable8.3%-iti1990. I Previously ther€ were well-warranted fears that the US rcc€ssion would put the

THEASIANMAMGER MARCIVAPRIL 19S

sharcbanslatesinto over US$20.000 million in rwenues annually with its rcputation for exceUentserviceand facilitie, the Shangri-Ia hasplaced tiny Singapore on the world rnap of popular tourist destinations.

neighboring Malaysia and Indonesia as well. It is one of Sintapordsb€stdormingcompanies and certainly among the most Drofitable.

Thrcugh successfulcost conMARKETII{G MAI{ACEMEIYT trol, well-plarmed inveshnentsin Cfcle& Canlag6 infrasnucirue and pmdent firnnSingaporc's largest motor company dis- cial policies, Singipore Telecom tributes such luxury cars as Mercede6Benz has managed to record comalongside more affordable reliables like pound grcwth ratesfor operating Mazda, Hyundai, Mitsubishi and the revenueandnet profitot9,97" a':d.

Malaysian-manufactued Proton Saga. De- 18.79o,respectively,over the last spite the diffiq t marketing envionment rc- five years. Retum on stockholdsultingft omthecrippling'80s recession,Cyde er'sequity hasaveraged15%over Slngapor€Aldlnes:Rablt€ 3tatdads ot s6fllcs. & Carriagehasmanagedto hold its own in the the last three years, while retum local automobile market, if not ercde its dos- on assetshasbeeneven more inDrcssive: an lated activities,although shipping constitutes est competitor's market shar€. Salesof the averageof 37.5Vofrom 198&90.-Tomanage NOUs corebusines. l4ith over,l0 subsidiarpricey MercedesBenzgew by an averageof and coordinate its finances more efficiendv, iesand 20associad companies,NOL main55% ftom 198&90, no small feat considering Singaporelblecom has divided its financii tains a fleet of containerships,roll-on roll-off the depresseddemand for other luxury prodi policies into thee distinct categories:capita.t vessels,tankeE, bulk cariers and multi-puructs. Salesfor the Prcton Saga,once consid- expenditue, operations and tr€asury fucposecarriers. lts fleet is among the new;t in ered a dud and a poor substitute for tions. Although eachcategoryis, to a certain the world. Mot of NOL scarriersareretiredby Japanese-madeauto[Lobile, grew by 1277o extent, dealt with independendy from the the time th€y arc a decadeold. As a rcfldt, its in 1990alone,making the compactcar CdrC's ship6ard carri€isavqage 26 yea$ asoppGed bestseler. to the indushy av€rageof 135 years.The Far One aspect of Cyde & Carriage s conEast/North America; FarEast/Europe;Southsurner comrcn is to provide quality aftereastAsia/Australiaarethelindsmotfrequentlv sales service. Recently the company h'avelledrsutss. establisheda Customer ServiceDeDartnmt At theheartof NOLisoDerationsnetwork is as well as a new vehide preparation center an advancedcommrmkationsJ,stern whidl inand additional servicecentersfor Mtsubishi dud6 a ftdly€ukrnEd ca€o b-aclingsyshm and Proton automobiles. Says one Cyde & andaninbactiveon-linecalgoea*ingsysun Carriageofficial, "lde ve tried to provide our InadditionNOlservicedDotsandft rrnina.lsin customeE with more professional services.

Hong Kong Taipa and tl\e United Stag are Our CustomerServicefoirartrnent attmds to linked thrcughelectonicdataintercttaryewith cornplaints,feedbackon serviceand listensto the Singaporcheadquarters.The cornpany's recommendatioruon how to further enhance €rd€nsiverlse of stateof-the-art information customer satisfaction.Wdve always taken a technology to facilitate cargo deannce has listening approach to our cLrstomersneeds others,eachof Telecom'sfinancial policiesare h-anslabedintomassivesavingsforNOLinterns and we will continueto do so." Robustsalesin dwised specifically to encouragebverall op of tirre ard adminisFati!'ec!6ts. an otherwise moribund market indicate that erations and grolrth as well as support the IncqEonancewiththethecompany'sgowCyde & Carriagehaschosena wise approach. company's marketint shategy. ing useof computrized technologyis ib conIn comparison with o t h e r tinuint rclianaeon ib emplolees. SaysChie{ FII{4]{CIAI MAI{IIGEMEI{T telecommuncationfirms such asAI&T, Brit- Opsating Ofiae Lim How Teclg'We are forTelecom Slngbporc ish Telecom and Nynex, USA, Singaporc tunab that w€ havea pool of highlyquamed, Singapods largest belecommuJdcations Telecomis fi$t in terrns of operating retums aornpeElt €mployees."Irols's ernphasison firm, SingaporeTelecomhasa virtual lock on per employee,operating returns on fixed as- taining rnakesit pcsible for deservingmanthe domestic corununications market. The setsand operating r€turns on operating rev- agemto win riolarhips to such p€stigious companv has considerable influence in mue; evidence of the comDany'sconsrsrent businessuniversities as Harvard, MIT and effortstowards maintaining proF INSEAD. l{optunsOdontlln6: Globaltransportcornpany. itability and co6tcontol.

Senior staff are often qiven overseas postingsin NOIJs foreign officesor |rint venOPERATIOT{S MAI{'IGEMEI{T tuIe companies. Mddle Managers and a & PEOPTEDE ElroPfYlEl{T significantmaFrity of NOL s2500 rank-andMANAGEMENT file ernployee are regularly enrolled in the efine Odent Unes Ud. company's other various caining serninars A double wirner in the 191 which may indude coursesin autonation in Management Awards I'rograrn, the marineindustry, busin€sspolicyand legal NeDture Orient Lines succ€ssse- education. A caleer dwelopment program aee arehigh valueadded opera- complementstrainingpogramsand saysMr. t i o n s a n d a c o r n m i t t e d , Lim, "helps ernployeesgrow with the comdisciplined workforce. pany."Arurual experditure peremployeehas Neptune Orient Lines (NOL) increasedftorn US$979in 1988to US$132 in is a global transportation com- 190. Do NOIJs employe€sappr€ciatemanpany with diverse transport-re agemen/s er ightened HRD policies? "Al-

"ln consonance with NoL'sglowiltguse of compte&edtechnolqr is its contlnuing rcliance on its €lnployees,"

THEASIANMAMGER MPRCII/APBIL 1993

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UNIPHILCOMPUTER CORPORATION

EHTHH 202A znd nr. ACCm BldC Gamba cor.$lcedo bsaspi Villase, Makati, MeEo Manila Tcls.8lm52,812-4571 h 74, Fd 8124S9 Telex 22201 Pecel PH: &278 hrcrl PN

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though NOL is only 23 years old more than 447aof {te stalltave stayedwith us for morc than a decade. The facts speak for themselves,"saysone company iruider.

II{FORMATIOI{TECHI{OIOGY MANAGEMEI{T SlngapoB Aldlneg Thea ne6atisa€uablySoutheastAsia's b€st and mo6t plofitable is the wirms in the categoryof ini3rmation Eclurotogy rrnrugement. Singapore Airline revenues in 1990 amormtedto tJS$a753millior! and lEtum on salesfor the sameyear avvaged,B51u Managem€ntattibub its advantageover other airline companiesto a modern informa-

tion syst€m$/hichis used by ib nearly 12,0m employees, ftom top management to lank and file. The SIA IT network consists of mainframe, local area networks and cpmmunication modems. All workstations and personal computers have easy accss to mainlramesand LANs. At Dresent,l,ANsarc olganized by divisio4 however, plans are underway to connectall LANS into a la€er network which would encompassentire officebuildings. SIA reliesheavily on databases to processdata ftom all areasof the company.

With the exceptionof SIAS rcsearchdePartment, all other divisions currendy use IL Mai:r applicatiors of data base technology indude the conhol of mgineering inventG

COLF IT'SNOTA SPORT, YOURBUSINESS BUTIT CANPROPEL HEIGHTS TOGREATER

ries, administration of personnel and salary information, the processingof financial data, as well as crew rcstering and trackinS. If is most useful saysrnanaging director Cheong Choong Kong, "in analyzing market demands and challenge. Through the useof IT we are able to respond immediately to these demandsaswell asmonitor our comPetitor's r€sponsesto the samechallenges.

"The bottomline in our use of IT is increasedprod uctiviry Technologyallows us to respondmorequickly and effectivelyto Problems. For instance, troubleshooting can be donedirecdyftr:m theHeadOfficeandwithin secondsof idmtilying a Prcblem."

SaysanSIAemployee,'fiebreadthofthe company's reachand the ability of marage ment to poduce resultsand isolateproblems at the droD of a hat is immense- all because or l r appucaqons.

Dfl EIOPMEIVTMANAGEMEI{T atlonal Prcducilvlty Boatd Since 1981, the National lMuctivity

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t. thos€ hilhly .mpotiliE tn€s, qlick-ntnkng ard lin.ndal lhliolt aF ural tool6 $Fodly ld cap .l inbnsN6 un*riilng.

Winr Con3olijaiod Onr bashg and Fi..@ (COLF),we @n help yo{, sel€ci tho oprioum 6.1!l,m !o th6 leasi.g and fnarci.g reeds ol MaNecoLF pa.r ol y@r busin$3 bam 4d

@n help you adEw

GOLF ATO FINANCECORPORATION ORIXLEASI}'IG CONSOLIDATED

Head Olfi@ 17fi Floor, soldbank 9ldg 777 Pdo d€ Bores, Makali, lvbtro Manila. Philippines T€t.817'3481.6173526 ro 27 . 816€&16 b 17 . FAX No 817 35 29 lnd T6hx No. 25.16 cOLF PH . Oo.n€sc TeloxNo 4114 ceb! &anch: Se@d Fl@r, Sotidank sldg., G€n. Mdilod AEn@ cmer F Fafro6 st€€l cebu cdv Tel. No.97417. Fs No.210449. oorusic T€lexl'lo 6347 CALLORSEE US FOF THE FOILCWINGLEASEAND FINANCEPACKAGES . MANUFACTUFING IVIACHINEFY ' SHIPS . AIFCR^FT . INOUSTRIAL MACHTNEAY TRANSPORTATION EOUIPMENT , OFFICEEOUIPMENTI OTHEFS . MEDICAL! DENTALEOUIPMENI

.co$^6'r.,'!cqFsd @R9OAANO SOLDA||fi A dsp.d.d n@ in Pn'lipgn. od ^remarond l,.nkinoand rnaio,

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TH€ SOUDGU IAIITV, IXC. non 'l€ isua^ceonpany

Boad (NPB) of Singapore has been at the foreftont of the island state s productivity movement. Largely as a rcsult of its nationwide campaignsto mobilize employers,unions and the workforce to cooDerateand actto inqease prcductivity, labor Frcductivity has qrown by 4.6%per annum, up ftom 3% in the is70". ai990 s.irvev conductedbv the Strais TrmesResearchsh6wed that emtioyees surveved understood the meaningof pn:ductivity and nearly nine out of ten empioyeeshad acted to improve productivity in the workplace. In 1982 only 2,ru employees were enrolled in quality contol cirdes.Today, mor€ than 90,000workers are involved in QCCs.the number of training seminarsheld per year have inoeased by morc than 12 This meansone times,ftam 32,600to ,105,600. in thrce Singaporcan workers arc trained evervvear.EvidenceofNPts'sworkisrdlecEd inmrr€lousinEnationalslrveys,amongthern an arurualzurvey conductedby the U9based Iisk analyst,Busin€ssEnvlonrnmt RiskIntelliqencE(BERD.Rorn l98l9l, the Singaporean ivorkforaewasratedthebestin theworld, povhg thatFroductivityhasindeedbecomea way I of-life for all Singaporeans.

1993 THEI6IANMAMGER MARCI-I/APRIL

Taki€ Cha€e TheGenius of Sittirg &rll Ihhleqt HorolcSffi6glo3 br Today'3Br|3ln€$ Load€rs withMichael ByEmmett C.Murphy Snell

By Ste\€ Stumpf and Thomas Mullen 'Dftld, frdft, d frtcd. fllrlt nn*or! crt lody lh6G ld.c h . rly lh.t l|f hrly hrFct 0. JG€ph Co[, ft.trtr CEo of lhslr pqftmre.'TWA,

Oflb|! .roqruvB . cdr|d.t p..3fh tu rr.i..tldng thalr orEarh.don, ]q|gulng drploycc comr t|tct lod loydty, rrd .rtthlng Slotol coorpctltlllrtlE.

Today'smiddlemanageris ofrencaugn in ano€ani zationin whichmultiple,e',erchangrEand conflicting strategiesarebeingder€lopedin difieremdepannents.

Presentedin a faking Chaqe shows Analyzingthe svategic and tetical brilliancedig pla)€dbySittingBull- oneof America'sgreat,heroic unique and fasciman4ers not only hor{ to leaders- in his detuatof Geo€eAmstrongCusterat natingformat,this survir€ these thonty situa the Battle ot Little Big Hom, this prowcatiw book book provides a tionshrt th.il€ in tlpm, iden isolatesthineenleadershiptraits neededbymanagers c o mp r e n e n s r v e tiryingne|v kleas, concepts, progmmfor retain as they leadtheir fooPs today. and skills they can use to oevoting a separate chapter to each trait, the Ing employeeloyalty,erercisingpower,developinga increasetheirstrategicefieq authorsexaminehoweachattributewas dayedout in rvinningattitude,managingteamworl,communicating ti,/eness. . Designed foract\,€maD the fateful confiontation.Usingexamplesof enlight- effecthiely,satisfyingcustomeG, competinElas awodd enedmanatleEwhoarecunentlyprovidingthat kindof classo€anization,de\€lopingand usingperfomance agers seekingways to idr pro\,/ethemselt€sand their leadership,they then showexecutiveshowthey can measurcments,and managiaEcrises. problems o€anizations utilizethissameskilltosol\€organizational Had Cowt;256 pages#2265 andchallenges theynowtee. us$23.95 . 'Making lt Happen' chapters supply creative ideas on strategc hinkirE, Ihe Gharbm Factor strategicm agernentskills, HowTo Dawlop You] atuEl t adoBhlpAblllty andrvoddr€the system

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BeyondEntrcprcneunhlp Tunlng YourBlrslno33Into an Endrd|E GrbatCompany BvJames C.Collins andWilliam C.Lazier ]lor to ltatl r coiTant to !.rduilg gtrhaar ttro|8l r,bbn ad lc€d.rdfp.

at Patagonia.The authors also addressthe nuts and ',torkis torthebusiness bolts aspects of yetpractical Thisinspiring, ownerwhowantshisor hercompany to beanexttaor- managinga co0l - onethatsustainshighperfonr pany:team build dinaryorganization rolein its industry, and ifg, productdesign, ance,playsa leadership remainsgreatfor generations. lt identifiesthe key and quality marF elements inwlvedin guidinga company to suchstat- agement,etc.

urc-leadershlp style,vision,corporate strateg/,innq Includesanecdotal Had Cotret;256 vation,andtacticalexcellence. .examples suchas Wes 1366$ of actualbusiness erpeiences, thoseof Watson at lBM,KniSht at NIKE,andMcoivitt uss21. lh. Ad

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AttheASII/AIM PortfolioSeminar "Theonlvwav an asfuteinvestor canbeatthe pedormance of the marketis to search for abenationsin the market."

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ecendy,the Asian Securities Industry Institute held a seminaroo "Effective Analysis and Portfo lio Managemmt for the Philip pine Capital Markets." As oneof the speaken I spokeof my experiencesas managing dtecbr of Regina Capital DeveloDment Cofooration, a member'of the Maliati Stock Exchange, in ap plying the principles of investment analysis from the United Statescapital market to the Philippine capital market.

The prevailing theory on the capita.lnarket has been termed the "efficimt markef' theory i.e.,the price of stock listed in the stock eichange reflects what is presendyknown about the company, its past perfornance and future prospects. Thus, any changes in the price could be attsibutedto overall rrurket fluctuation or other ext€rnal factoB. Sinaedilssifyingintoothersodcs only protectsthe inveslor against specificrisksand do€snot Fotect him against werall mark* risl! thminveting in the sbockmarket is a random "walk" The only way an astute investor canthereforebeattlre Derformance of the market G to search for "aberrations." This would involve stocks where there is a disceDancv between the ideal price ina *re actua market prilce.To deal with this situatioD secuity scholarshave propoaed another theory called the "A$itrage Pricing Thmr/' which states that such aberrations arecorected with disDatch and precision by the markel. The two theories further state that the magnitud€ of the aberratiots aswell asthe sDeedofcorrection varies with the maturity of the capital market. Thus, in a developed capital ma*et such aberrations are slight and quickly

conected as comDaredto a de. velophg capital ;arket.

The above theories exDlain the inceasing interest of portfolio rnanagers Irom developed counEies in "emerging capital markets." For it is in tlrcse markets dtat inveshnmt opportunities Droliferate.

We illuseated theapplication of these theories on a sDecific stock, the First Philippines Holding Corporation (FPHC).

Using company amual reports as well as reports from busin€ss papers,weconduded ftatFPHC was undervalued in January 190, lnfomution used in arriving at thesecondusions were all basedon public -capitaldocuments. Developing markets suffer not from l,ackof information but frorn lack of securitv analvsts who can reach sourid conclusions on the basis of publidy available information.

In a Regina Capital Investment letter releas€don January 1990,we wrote our clients notifying them that the book value of FPHC asof 30Jrme1989,was P17.28compared to the prwailing market price of P17.50.Such valuation was basedon the past performance of FPHC - a ioss if P50.0mlltion in 1988and of 122.6rnillion in 1989. This past performancehoweverisinsliarp contsastto FPHC'Sfuture pro6pects. One subsidiary the-First Philippine Induseial Corporation maintains a higNy profitable petroleum pipeline system from the Batangasoil refineE to the bulk storage facilities of Meralco, the electric company serving Meho Manila. Another company, Philippine Electric Corporation, the main supplier of diseibution transform€rs to Meralco has reversed several years of lossesto post a profit of 17.1million in 1989.

Moreover,we expectedapossible resolution of the socalled Meralco impasse.FPHC used to own subsiantial shares of Meralco. These shares which were pledged to the Develop ment Bank of the Philippines were foreclosed for non-Davment of a FPHC loan. With the increasein value of the Meralco shares,FPHCcould probably redeen a portion of its sharesand realize an extraordinary gah of P417.0million or P9.75per share on an after tax basis.Financiallv, the Meralco deal would reduie FPHC's debt by about P450million to a minimum level of P200 mi.llion, FPHC would be liouid with a cashposition of P500inilUon and solvent with an eouitv baseof P1.2billion.Insum;arv. wearguedthattheelqlecledbodk value of P26.73was way above the market price of P17.50.

Our clients, encouraged by the analysis, bought FPHC. But the imperfect capital market which created this invesknent opportunity also createdcertain problems. Ideally onceopportunity was spotted and poGitions were takm, the price of FPHC was supposed to go up, Unfortunatel, the market did not re alize that FPHC was a bargain for two vears, at which time it suddenly shot up hom P17.50 per share to aroud P56.m (adiusted for stock dividmd). hcondwiorL weadvised the seminarparticipants that investmerrt opporturdties like FPHC - best exploited by applyrng the analytical skills proposed during the serninar- abound in an emerging capital market such as the Philippines. We mded by saying that participarts would do well to have botl patimce and long-term funds if theywere to takeadvantaseofsuch investments opportuiities.

I

THEASIANMANAGER MAFCFI/APRIL 1993

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TheEmerson Lesson "Businessmen shouldremain unfazedwhen problemsstand in thewayof implementation, nor shouldtheybe thefirst to blink whenmomentary failuresstarcthem in theface."

f note of Ilannrd Bwinex fuI uids 192 issues,the artide a Enersn Electic: Ansistent a Profts,C-otaistently is a casein point of the resuttof being actionoriented. Emersonis a U$based company ornpced of ,() divisions,manutrachninga wide range of electic, eleclrom€dEnicaland electonicqDducts.

In 19i, Ernersonmarked its 34th consecutive year of improvedeamingsandeamingsper share ard its 35th consecutive vear of inqeased dividends per lhare -a performancematcied onlv bv a handfuI of manuJacturingcoinpanies ln ttre world and unrnatched by any US company that makescomparableproducts or serve similar markets. Since 1956,Emersorls penistence has rcwarded invetdrs, yielding an annual total r€tum that hasaveraged19."|Ea. Charles F. Knight, Emerson's duirman and chief executiveoffice1,cited orreoftherrairrrcasoru br his company's$lccess,"\Abbe tievethat comfmies fail prirnrily for nuranalytical rE€rsons: rlanagsne!*krowswhatbdobut,for soure rEasor! doe$it do iL" Fie adds,"That is why Em€rsonhasa stong actionori€lrtatio&wes€eto it that our strahgiesare Plopqly imrlqnened."

-Even in the findamentals of strategy formulation, the "four do s" approach - might do (oV podunities ard thrcats), c,rt do (sh€ngthsand weakness€s), aran, to do (managerial values) and slrdd do (social nesporsibilities) also miss the Doint. After formulating a straiegy (what to do) basedon thesefour ddt the mo6t qitical do is missing - do it!

Why arc some Asian businessmen not action-oriented ?

One obvious reasonis tJresurefire mentalitla ff igs not certain,doft go for it, Go only for cons€rvative

assumptions and high hurdle rates.I remembe!:watching a local TV talk show sometimein the troubled mid-'80s in which Robina Gokongwei, the daughter of a Philippine business tycoorLwas a guest.

A viewer ca.lledin askingMl Gokongwei why ChineeFilipinos were taking all their money out of the Philippin€s. This was the time when the cumtry was continuoslyhemorrhagingdueto massivecapital flight.

Shercspondedthat it wasprimarilv'making Chinese-Filipinos who were huge iirvestrnmb udike mo6t other businessmen who took their moneyabroad.At a time when basement-priced bargainswere for the taking the calculated risk-taken have long iastedtheabujdant ftuits oftheir "going out on a limb" strategy while the surefirers orlv hatvested the meal$ retumi from their invesbnents abrDad.A significant nurnb€rof th€rn ev€nl6t monevin theprom.

Ariother fictor could be complacEncyor the staf{s qw addtction. Donlt rcck the boat,and iI it ain't broke, donjt fix it A rclated term for this syndromeis the lack of political will. In bwiness. a sfatus4ro attitude r€sults in a re activeDostuJ€which is obviowlv

"A stafts gro attitudewlll inevitaHy lesultin a dinosaut oEanEation awaiting extinction."

disadvantageous in a highly comDetitivenarketenvironment that demandsa oroactive stance.

It also undermin€s the su€ngtlts ofa company,further weakensits weaknesses and will conseoumdv resltt in a dincaur organization awaiting extinction.

Th€nth€reis tlrela& of -IGight Desistence.In Ernason Elecaig peGistenceas a key factor in tlreir sLrcces6.

Come to think of it Thonus Edison conducted 3,ffi ocosimsts bedore thelightbulbbedrrEat€ality,while Abralnm Lincoln lost rst of his initial sortiesfor an electiveD6t be{orehewaselecH Dr€sid€riLSo esianbuslness,rnenslicnJdrcrnain unfazed whm a h6t of Do€*ial prohlernsstand in tlre wiv of imil€mstatio4 nor should-th€ybe tlle first to blink whm rnom€ntary hilur€s starcth€m in tre ia€e. llay;beitisalsothecrabmentality wh€le rrunagqn€trrtinfighting istheflavorof theday.Thisrcminds me of the erding of the awardwirming mwie Plaknr by Oliva StonewhereCharlieSheendelivss asoeechwhidrbeternbodiewhat tG 'mehram War meart to the Am€ricanpeople,He said,"I-ookingbadgwedidn'tfightthem€rnla Wb fought each ottrcr. And the eteny was in w." I guesswe all knor r' who won that war It's the samewith business.Thepenclunt for corporateinfighting ana tfrei"tanalbatdesforhrf willonlyrcsnt in inactionand @mpetitivedisadvantage which cornpetition caIl easily parlay into its own competitive advantate.

The marrh towards MChood is very much dependmt on government and bushesg secto$ with stong action orientation. In an era where consistmt innovative action is the primary key to competitivmess, these pitfalls should be reDlac€dwith a "do if' frame of mirid.

I

'1993 THEASIANMAMGEB MARCIYAPRIL

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Success asa common denominator...

People onthe Move Singapore?SaysMorse, "Singapore provides excellent infrastructur€and its shategiclocation in Asia provides us an ideal place to sa uir shop." It also helps that theSingaporeangovernmenthas beenrcceptiveand supportive in promoting the country as Asia's fashion hub.

M o r s e ' s S i n g ap o r e an colle8ue at TiadeMart is an unlikely partner. Yeo SeeKiat, or S.K. as he is more conrnonly known, is an accountantby hainin& not exacdythe most obvious candidatefor generalmanagerof Singapore s newest, snazziest dothing and textile retailer, Prior topiningTradeMart,S.K. wasan auditor at Ernstand Young. And although his currentirbdernands that he keeD abreast of fashion hends, S.K. also finds time to be an active memberof theInstitute of Certified Public Accountants of Singapore. He oversees TradeMart's overall operations and is confident that the various companieswhichhave alreadysignedupwith the retail group will MoIla d l08C Progorfits ol Alht nrrt benefit greatly from h.nbn mart. their association with TradeMart. "Quality David Morse's career in the s e r v i c e d i s t i n g u i s h e d retail trade beganat the ageof 23 CalifomiaMart and made it the a t t h e f a m i l y - o w n e d successthat it is today. Weintend CaliforniaMan He 6rst worked to replicate that suc€essby prc as tenant coordinator and later viding our Asiar cwtomers the moved on to the leasing office. samehigh standads of service."

Shortlv after, Morse was named the fuin's gmeral partner. In adt an early age, Zainal ditioD he set up his own inde Abidin bin Ahmad pendent company, Mart showed a keen intercst in I I politics. Says he, "As a Management International MMD which pnvides rnart-re young boy I always dreamed of lated service, is well asconsult- mtering politics or the the civil ing and managementservic€sto servic€." It wasn't until the mid'80s,howevet that he fimlly took the fashion retailers.

Why the decision to setup in theplungeandtumed thatdrcam t!

rademart Singapore, the region's first fashion I hypermart, is the brainI I child of Califomia retailermh€Dr€neur David Mors€ and hisA;ianpainer,Yeo SeeKiat. A one-stopshop for dothing companies and fashion houses, the ioncept behind theoriginal chain of stor€s - which indud€s the highly successfirlCalifomiaMart - was to housedothing and textile retailels and distributoF under one rcot or in Trademart's case,severalroo6. located along the Singapore river, the Trademart complex is conprised of a seven-storev shop-ping rnall and a l,fstor* warehouse. A multi-stoley carpark provides convenient parking for over 550vehides.

level. I have to listen to each of their problemsand comeup with the bestwavs to help th€m. What wul worK tor one rnter€stgrcup doesnlt necessarilywork for others.The challengesare many" His curr€nt proj€ctallows Dr. Zainal, who obtained his doctoratein Dublicadminishation from theUnivenityof Califomiainlos Anseles (UCLA), to use his talents as both teadEr and public servant. He is curently deputy chairman of the board of governors of the SelangorStates Hitec Management Technology ResearchInstitute. "Selangoabeing into a reality. Having won hardMalaysia's mo6t industrialized ily in state elections,Zaind be- state, should take the lead in came reDresentativeof the haining managers to meet the Govemmint of Selangorin 1989. countn/s demand for capable ,,It was then,,, says Zainal managbr of high technololf in"that I discovel€d how hard it is duskies. The Institutds obFctive to servethepeopleand how hard is congrumt with Prime Minister it is to be a good public servant." Mahathir's Vision 2020 which An academicianbeforehe en- again depends coruiderably on ter€d public life, Zainal says, the availability of creative and "Then I knew who to serve my higNynuatf ied managers." students and fellow acaderniThe projecf s timeliness and cians.It was much easierto focus Dr. ZainaLs tteless efforts, have on Drcblems. Now I deal with won for the lnstitute considerpeoplefrom all walks of life, fiom able support. Dr. Mahathir is, of the grass loots to the topmost course,an influmtial patton. In addition, corporations such as PermodaLan Nasional Berhad, H I C O M B e r h a d , E d a r an Otomobil Nasional Berhad and Malavsia Airline System have contributed funds aird lent their employees'managerialexpertlse to the uoiect.

"Pascualooksblwad to 'prttlngback'into hishomeland."

aving lived away fum his native-Philippines for more than 18 vears, Ric Pascua couldni be hao pier about his rccmt appointment as president and CEO of MetoDrug Inc.MDI). Although he admits to missing Hong Kong - the Crcwn Colony's excitemmt and freneticpaceof workPascualooksforwird to "putting

1993 IHEASIANMANAGEBMARCFUAPRIL

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BallkboyanPGcua. "l back" into his homeland. hope," he says,"to conhibute to the hterment of MDI artd the larger Filipino community."

Meho Drug Inc., is the First Pacfic Grcup s flagship company in the Phiiippines. The c0mpany manu.fach[es, markets and distsibutes Dharmaceutical veterinary, corisumer and packaging ploducts. By all accollnts, 1991 was a di.ffici.rltyear for the company. Five maior principals left and the cornpany underwent, saysParua, "6evdal firndamental charyes" in terms of policy and strategic djrection. These dunges r€suld in considerable financial losses. But Pascua is confident that Ftst Pacific and MDI's leadelship has laid the grourdwork for a rcturn to profitabiiity. 'The company is now more efficient and pn:ductive than ever."

He credits much of this newfourd stability to the hard work of his predecessor,Vicente lul.salylll. rasora $ connqent that despitethecompany'srccent setbadgMDI wil enjoy the same successand prestigeasother First Pacific-runcornranieworlwide.

Amonghismciimmdiatetasks is to, "create an environment where MDI emploveesare motivated to worl and can find meaning in what they do.

"I have always wanted to be part of a group h which I could say I was proud to belong. Iam fortuiate that all the companies in which I have worked MetroDrug included - have made it poosiblefor me to make tllat dai;."

I co

On my r€centhip to Irdonesia I cameacoss your publication l/re AsianMtruger. Nlow me to con€Fatulate you on an excellent publication. The layout wasfi$tclassand thelournalism informative.

Mike Taylor ID Box 6 Pine Creek Ausbalia, N.T.0847

bburcRedhg I have been reading your magazine since July. I enioy reading it and am imgessed by yow quality managementissues and excellmt editorial. ThcAsian lrtaruSer is my favourite magazine for my leisure time.

Perhapsin future issuesyou can feature more articles on managemmt, marketing and international enterprise.

Aruu Chaing Kowloo& Hong Kong

Inqulde When I was in Singapor€ as general manager of Johnson & johmon, I received your magazine on a regular basis. Since tlm I havebeenan ardent reader and I find your magazine very informative. I have sincemoved to Taiwan and have beenunable to fhd a magazine that fulfills my quest fo! information on Asian business. Please let me know how I can receive your magazine on a regular basis.

Patrick Thn Oral B laboratories Taiwan, ROC I receiveda copy of The,4si.a Mowget quite by chance and found itvery useful. Theartides

TEAUilO

A Pat on the Back

Manv thanks for vout sustained ;fforts to imirove the magazine. Becauseof your ef-. fotts, The Asian Manager has taken a mole dlnamic look. The design director, Mr. Alex Bowie is doing a magnificent iob and I am sure the magazine will be one of the leading professional joumals in the region in the very near luture.

The artides on quality management, values of Japanese areintetestingand full of thought philosophy in modern manage; provoking items. Pleaselet me ment styles, understanding of know how I may receive your leadership and power and so forth are some of the most pre magazine on a rcgular basis, cious contributions by leained orofessorsand executivesto this Badiur Rahman inagazine. In the near futue I EconomicCell would like to conhibutean artide Metropolitan Chamber of on my overseas€rpansionexp€riCommer€ and Industry enc€sinFofe€sionalmanag€mmt Dhaka, Bangladesh in the U.S.and Japan.

I thank you oncemorc for the Readoswishing to subscrifuto The Asian Ma ager nay write extreme Dersonal cale you ale Monette ltutawe-Li , associate taklng to iheAlM alumni in propublisherand circulation director, udngThe AsianManogerat tl\e at thc Asian Institute of Manage- most apprcpriate time. ment,losephR. McMbking ComM.K. Sarna pus,123Paseode Roxas,MikatL GeneralManager Metrc Mnnile, Philippines for a Assam Industrial Dev. CorP. subsciptionform. A one-ymrsubIndia scription is US$30.A two-yur

BYDEFAII1T

Etrotwn: ln the lanl Mnrch issues, the illustratiansonW.1274, 16 were inadoertently dttributed to ]Mnnedebon.

Ms, Lorna Lazo illus"Morugers ond tmted the orticle Iaders: Are Tley Different?"

Theeditorswish to rpologiztfw theoaersight.

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to TheRightSteps TotalQuahty *Manaqement is responsible for settinguPthe andPolicies systems thatmakeit easYor difficultfor workers to doa qualityjob."

.-, ood intentionsand sheer determination are not a I r guarantee of succ€ssin Il implementing total tI quality ffQ) in thecomPany. TQ G a managed upheaval and its successcannot iust come from raw entlusiasm of the Participants- managementand work:rrs. As the dehnition of quality goes - "Do it right the tust timg' - the first thing manate ment should do right the first time is implementing total quality itseu. Failure to do so almost can alwavs means the Prograln -or ,r..,ei be restarted iesumed; emplovee demoralization and the lois of face of its initiators amount to the end of all endeavours towards qualitY - Present and future, To ensurea hiSh successrate in implemmting TQ, I suggest s€ven steps or Phases.Do not proceedt6 the nixt stePuntil the brecedinq oneis completed,othi:rwise, y6u are likelj, to exPerience the failures of other firms who have tried unsuccessftrllY to implement TQ. L €nib?ac. a Cngl€ qrallty Phlloeophy,Managementand emDloveesshould first unde$tand ind be toozo convinced why the company has to achieve total qualiw; i.e.,to assurecontinuous cofoorate survival and cornpetitiv-eness.EverYbodY should have the same definition of.quality, defect, service, disservice, customel - and otherTQ terms. The corPoratewide orientation should set the same standards of customer service for everybody and let everybody realize the disastrous effect of lost customers due to bad qualitY or service.

Evervbodv should aPpreciate, anticipate'andaccepfthe sacrifices and difficulties in the TQ iourney at this early stage.

1993 THEASIANMAMGEB MAFCI-YAPRIL

reluctantly came, Japan€seCEOS Deming converted them a.[l to quality, and rest is history' 3. ch;n83 or modry.I lyrtcm3 a.d structurll to sulttotd quaF ],ly obloctlv6!. After showin8 consistentand continuous quality leadership to aU emPloyees, sruimq"itity. neslouldmodel management should begin re the wav bv showing Personal viewing all systems,policies,and exampies ii thoueht, word and procedures in the comPany and deed,'reflectiveof-the new qual- iheck their consistency and itv Dhilosophy. He should think conducivenessto qualitY. These "i'td act orialiw in all his deci- include organizational structures, mani.rfacturing PolicY, sions and actuations - mtertainins anvbody anY time who quality control procedures,HRD has soinetiring- no inatter how policies, incentive systems,etc. small, to contribute to imProv- No stone can be left untumed.

All existinqsystemsor struchrres quality or service. ins"*ming, are defundei or discarded imthe American qual' mediately in accordancewith the qualitY guru taught who first ity '50s,said new quality goals.New onesare td ihe Japanesein the that quality_ begins at the toP, added,or exiiting onesmodifi ed rn tne ooarq- as needed. Noihing is sacred more sDecltrcaily, 'He that his firgt exceDtin so far as it contributes insisied room. quality seminar in JaPanbe at- to t6tat oualiry. Dening estitinded only by the presidentsof mated thit Sovi of qualitY Problaoan's big corporations - no lems come from managemmt ".iustituti t"eri allowed. The and just 207o from workers.

Manasement is reponsible for settiniup the swtenu and Policiesth"atinake ii easyor difticult for worken to do a qualitYi:b. In spite of good intentions to do their work right everyday, workers makethe samernistakes primadlybecause of antiquality systems set bY management knowingly or unlnowinglY 4. Trrh ;rd omPos€r all c1||. ployr6. Given the conducive workinq environment established i; the preceding steP, employees - including all managers - are now rreadylor trainiig on the fundamental oualiwikills of problem idmtificatio'n.traittin! is the preparatory steP to emPowerment rn which employeesaregivm tsust, responsibility, and authority tro volirntarily oiganize themselve into seu-managing teams, e'9.

2, Man4lrnont strould lcd al|d d.moBtrrto quallty lcadatshlp.

In accordancewith the TQ Philosophy and goalssetand ageed upon in step one, toP management - especiallv the CEO should tak; the fi;t initiative in disolavine unwavering leader-

"Demhgsald qualltybe{!m ln the boardtmnr."

59

"QCCircles,

conftaryto popularbelief, anenot necessary in achievingTQM."

o

QC cirdes, solve problems, and improve processesand operations in their workDlace.

Veryoften, in TQ companies, thes€ improvements are implemented without seeking approval from higher authority; supervisors approval is often enouglL and in some cas€snot evm necessaryfor very capable work teams.

The last three phas€sare not action steF by themselves,but moreof evmtsandconsmuences of the first four step6. l. Enployc.r' bohrvlor wlll c-lrlniF, After a[ systernsare in placeand leadsshipisstong the eained and empoweredernplovees will graduilly dernonita'te quality behavior,and start to develop tood working habts. TlEy wiU stop hiding probl€msand attend b customersand their complaints rnor€ptompdv. But eood Letravior is nbt neces6arityfiternalized and long lasting at this stage;the€nvlorun€ntwillsirnpty not allow th€rr to belEve oth€rwise. Justasmotfiists pEder the 8t€enb the rcd light, tliry neverthelesshave!o stopat ther€d light becauseof the dear and vrs6b legalcoruequencesof running it. €. Emplot|!.3' dlv.fop total quallty atdtudc. As behavior is repeated and reinforced over time through management leadership, systems iriprovement, and continuous emplovee hainin& they become inie;alized as the ernployee' personal attitudes and values. Emploveesstart to understand and at>' preciate why they always hai,e to do their jobs right fte first tirne; why it is good not only for them but for the comDanv.As in the motorisgs case,he itops at the red light not becauseof the policeman at the other side of the sM, but because of his genuine concern of his own saf€ty and that of others.

7. A totrl q||allty coDorat cultut€ dovcloF. Behavioral changeoccus corporate wide in step 5; nonconlormists are exposed and disciplined by the system. But aftitude change in step 6 is more individual and slower in pace. The quality system can not check or mforce attitudes. But asTQattitudes de. velop over time ard spread to more and more emplovees and

finally to all employees, this changebecornesa changein corporate culture. At this point which may come after several yeals of TQ implemmtatio& we cal sa)' that the company has arnveo.

Expectthe followin& iI TQ is genuinely achieved: 1. Empbyaas wlll bocoma loyal to the company and equate corporate succ€sswith personat success.Quality work is done with or without inc€ntives monetary or otherwise.

2. Enployac wlll Darfofil quality work because they be. lieve in quality. 'less The company will rely bn str"ctrub tir enforce-quatity behavior; employeesdo quality work according to personal values. Companies can start disrnanding some shuctures oricinallv set up to elicit corr€ct 6i:travier. Ueciuse employee do not need them.

Examples are inspection procedures, audits, Derformance checksand someLyers of lower management (supervisory).

3. Enpbyoca wlll o|iinhc themselves voluntarily to do ptoc€ss improvement without management intervention,' pressurreor allurements. Thev urill give and volunteer numeious cost-savhg and wastere' ducing suggestions to manage. ment without expecthg rcwards or compensation.

4. lie* anployccc, rrgenl lcco of initial background and orientation, will easily adapt to the strong TQ corporate culture.

Employeetumov€r,abcenteeism and strikes will be gready diminished if not eliminated.

TQ is not iust a destination to be reached; it iE, more importantl, a position or status tb be attained and sustained by re. peating stepsone to four - continuous review and preachinq of the TQ philosophy. imwavering top managemmt quality leadership, non€top processand systems improvement and continuous €!'nployeeFainin& skills upgrade and empowermmt.

Here are some common pitfalls experiencedby many c6mpamesin startingTQ, which violate or skip the steps above.

Management startsTQ by organizing QC circles, thinking it is the easiestand most fashion-

able way to show (and deceive) the public and the compaition that it believes in qualitv. Circle formation isiunpiirgtoimpowermmt (steD 4). One hundred percentoftlie time, thi6approach results in total failure or pseudo TQ.for obvious reasons,among wrucn aue: t{obodyund.rtt .frwhyth. company suddenly embarks on this very new and radical program (sft.ippingstep 1).

Thc man{!r! - cp.claaly the top brassCEO,do noturderstand TQ and do know how to show TQ leadership (skipping st? 2). Top managementthinls that TQ is something that canb€ det ated,oder€d or budgeted.

Not surprieingl, many nvmagers will even question and o1> pose circle activities, and considertheman interiermce !o their subordinates day-Hay work.

Anthuallty 3yrtama atd policies block circle activities (skipping step 3). For i$tance, therearc the quota syster&piec€rate system and performance evaluation system which all re ward quantity performance rather than quality output. lh€ chEloc leck tha quallty skills to come out with quality programs, process improvements,and lastingbolutions.Empowermmt without haining is mearungrcss.

QC circles,contrary to popular belief, are not necessaiv vo achieveTQ. If they are neveitliel€6s present they should be a voluntary consequenc€of genuine dedication or commitrnent of employeesto quality, and not a management directive.

Other pitfalls in TQ implementation include training employees on quality skills (iump ing to step 4), trying to teach them values to changebehavior and aftitudes (iumping to steps5 and 6), and wors€, gefting a consultant to changecorporabecultur€s (iumping to step 7). In aU the examples above, causes of failure will be sirnilar - lack of correct quality philosophy to guide managemmt, no leadership, existenceof antiauality policies,and a working mvfuonment not conducive to oualitv.

In condusion, TQ niwt 6e implemented right the first time.

There is no short cut, I

.IHE ASIANMAMGER MARCFYAPRIL 1993

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SOCIAL SECURITY SYSTEM

XhooBooBoon

Emerging landscape...

Portents of theRlture oday, if you look dosely at the world Tiiad companies inhabit, national borders have effectively disappeared eared and along alons with with them the economic logic that made thern usefirl lines of demarcation in the first place, insists Japan's only rranagement guru, KenichiOhmaehhisbook" The Borderless World. This emerging landscape which Ohmae christened the Internationai Linked Economy (ILE) of the Triad comprising the United States, Europe and lapan and pined by aggressiveeconomies suchasTaiwan, Hong Kong and Singaporc - is the central concept of this twelve-chapterbook.

The ILE, Ohmae argues, is the resdt of compelling forc€s such as globalization of consumer taste, the rapid dispersion of technology and the explosive growth of the foreign exchangeempire. Ohmae maintains thatnot everyone s€emsto have noticed these changes,He points to developing coutries such as Brazil, Chile or lndonesia where national borders seem as intact as ever. He attributes this faulty vision to what he termed 'the r€source illusion,' best describedby the logic "that an ample stock of natural rs sourceswas what nade a countrv rich and its Droducts competitive.' Withthii perspective, suchcourkies strive to keep for€ign companies at bay. 'lrot all developing nations and MEs adopt so defensive a Do6ture,even tho6e that arc re source poor," says Ohmae. ln doing so, these countries have benefitedeconomicallv Thiwan, South Korca, Hong (ong Singaporc and inqeasingly, Thailand, are Ohmae's examples of healthy and vibrant economies.

Ohmae contends that it is @

sucial for r€source rich countries - Brazil is an examDle- to shakeoff theil'providerhentality,' i.e., the belief that the best thing they can do for their own development is to lock the door astighily as possible against exploiters of the world. ' Ohmae arguesthat countries that participate actively in the global economy reap tlemendous bedrefits.It is through this participatio&Ohmaenaintains, that countries are forced to think in terms of value-added.

Ohmae's polemic is a direct challenge to nationalstic govemments eveq/where. He also assailspotectionist policies. Efforts to protect local economies, Ohmaesavs,dirninish economic freedorn. 'For the govemrnent to choosea handful of comrpnies and give exdusive licerGes to thern to produceor sellthey deny their own people acc€ssto the best and cheapestprcducts."

A dosed economy,according to Ohmae, saps the vitality of business enterprise to compete in the Triad market. "l^Brad," Ohmae Doints out, "car and motorbile comDanies cannot import componints so easily they cannot ptoduc€ prcducts thatar€aompetitiveindeveloped economies." He argues that for domestic markets, this is acceDtable but it is not acc€ptableior exporting. "By contrast" insists

A closodoconomy, accodlngto ofirrae, sapsthevftalltyof hslnesseiltorpfteto competeIntheTrlad maftet.

Ohmae'tothTaiwanandSouth Kor€a allow their comDaniesto import critical componantsfrcm As a re Japan and elsewhere." sult. Ohmae savs "the6e countries produce loods that are comD€titive in the United States and Euope."

Ohmai advocates an opendoor &ade policy. "Such a policy allowed Thiwan to generateover a $10biUion tsadesurplus annuallv with theUnited States.which can more than compensate for its $5 bilion deficit with tapan."

Ohmae asserts, "Taiwan through its dos€ link with ILE, he has stored up $80 billion in foreign leserve, second only to Japan." He contrasts this with the developmmt in Brazil and other resorice rich nations still running their economies down death's spiral. "Only a decade ago," Ohmae maintains, "most oftheseeconomieswer€ at $1500 per capita GNP" He continues: '"Iaiwan now is a $7,000 p€r capita GNP econony, wfiile Brazil remainsessentiallywhere it was ten years ago.

Theseviews above provided Ohrnae with the agmda for his 'exposition of the nanagement lessons in the new logic of the market place. Through it all, Ohmae weave his thoughts on businessstsategyandconpetition To be sure,not all of the ideas on globa.lizatiorq strategy and comDetition in this book are either briginal or new Somehave been given heahnent by other witers ae well. But then agaiD there is value in re€ncountering them.

One idea of Ohmae which is of profound significance,frorn a businessstsategyperspective,in The BorderlessWorld is his five ts" for successin business.As in his earlier work, Ohmae maintains that good strategies

revolve around an understanding and striling abalanceamong the thee kev Doints of what he called the "stritegic triangle" of customers, competitors and company. However, in the light of an emerging genuinely interlinked economy, Ohmae says two more "Cs" should be add€d io this list "coutr/' bv which he rneansthe varioui goveflunent<€ad envfuonm€ntin whidr global o{ganizationsmust opcateand "currency,"by which he means the o<ocure of zuch -nuctuations or8anizations to in foreign exchangerates. 'So imDortant have these last two Cs become,"suggestsOhmae," that no responsiblecompany can og eratein a borderlessenvilonmmt withoutpayingattsltiontoth€!Il"" ln The Borderless World, Ohmae seesthe world moving towards an interlinlcd economy for which natioru a:rdbusinesses ne€d to preparc themselves.But he is alsomindfll of the obstades along that path. "Yr'ear€ not one big family in the world yet but the ILE may be closer than we think " Ohmae reminds us. "W'e need to t}uow out Ptolemaic, nation-basedmodelswith which we interpr€t the world's events."

Ohrnie writes with a refreshing prose. He has a style of phrasing significant observations in a disarmingly and de ceptively simple way. This book is a splendid pieceof Eading on international trade and other macro€conomic issues,but it is more important for its insight on businessstrategy.I suspectit will becomea standard text that will beusedin graduaternanagement schoolsfor years to come. I The Borderless World: Management Lessons in the Ner^r t ogic;f the Clobd Market I'l,.ce

By Kenichi Ohmae Fontana,272pp.

APRIL1993 THEASIAN MANAGERMARCH

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64

ecollectionis a pecious gift, I alwals think, whm I reach through many years of mernories tio retlieve some treasuredrcrruuntofdrildhood.These are those detighdul weekends spmt on the beachesof Bataar which s€n,eas a constant reminder of my Pisceandraracter.

At some point in every vacation, how' ever,the lure of the sun,sand and surfbegins topale.And thatwasexactlv how t feltabout a holidav in Bali, Indonesiai few vearsback.

But to the forlom businesstravelliq, nothinq could be more erhilarating than to escaf the biting winter cold of Washingon, D.C. in mid-December than to be greeted by ocean Inland watanvats end Ganab make up breezes and abundant sunshine in Fort Fort Irodardalo.

Lauderdale, Floridal,ee Maiory the six million dollar man.

Pler66

The venue for workshop conferenceorganized for developmentofficersof maior unive$ities and graduate schoolt Pier 66 Resort and Marina in Fort lauderdale - a 22-acre lush, tropical resort - is the perfect setting for mental stimulation and the proverbial soul searching. At Pier 65,the ocean view b€comes a permanent backdrop for business or pleasure. What was once just a mangrove swamp, Pier 66 has become a landmark in the heart of one of the world's foremost yachting capitals.

Crisscrossed by miles of canals, Fort Iauderdale has been called the "ry'eniceof America." The name is,more than lustified as the Florida city contains 10 times the number of canalsasits ltalian counterDart. It boasts if twenty thrce miles of wide,-sandy Atlantic beachesshetched enticingly along calm, azure waters. More than 300 miles of inland waterways and canalswind through palatial estates, citrus groves and exotic Everglades. Winding though Fort Lauderdale to the Atlantic, the Intercostal Waterway flowsinto theoceanat Port Everglades, the secondlargestcruiseport in the world.

He!e, they say,basking in the sun while sea breezestickle your sensesand dipping in the blue waters ar€ considereddaily rituals. The navigator of the ubiquitous water taxi - the best way to seeFort Lauderdale - litera\ took me for a ride as he pointed out in the circuitous intercostal tour, the brcathtaking summer homesof Microsoft's Bill Gatesand

OceanPlaygrcund It is said that during the 1950s, Fort lauderdale was dirovered by couegestudents, and a sun-filled spring break soon becamea cherishedpart of college lile. This gave rise to this Gold CoastFlorida destination's reputation as a college "playtow^."

Inspite ofadvers€nationwide publicity, most residentstook the annual invasion in stride, and in 1960Hotll.wood dramatized spring vacation in Fort lauderdale when it was used as a locale for the movie 'fihere the BoysAre" starring Connie Francis. College students started to tum to Daytona Beach and Panama Ciry both in Florida, when beach curfew hours were imposed and drinking on the beacheswere prohibited in an attempt in the late '80s to change Fort Lauderdale's image. Today,the collegekid's ocean playground is considercd more of a family vacation spot and corporate convention site.

But .life is more than a beach in Fort lauderdale. It is home to festivals and fairs, para-sailing, outback safaris and rodeos, sports of all sorts and the newly opened US$50mi.llion Convention Cmter and the US$52rnillion Broward Center for the Performing Arts. If you fancy a vacation and meeting paradiseblessedby Mother Natur€ with a fascinating potpouni of attractions, do plan of stopping by Fort lauderdale on you! next visit to Florida and discover its many wonders.

I

IHE ASIANMANAGERMARCFI/APRIL 1993

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