The Asian Manager, March 2000 Issue by Sherbet Manalili

TttEAsmuIt{,lr,ulGER src0ND0uBSTER 2000 HUMANBEHAVIOR IN ORGANIZATIONS

Sexuality in the'Workplace

E.COMMERCE

What Happens Underneath Those Dot-Coms LEADERSHIP

How to Reinvent the GM for the 2000s NEWORGANIZATION FORMS

Beyond the Coercive Organization PERSONAL PHILOSOPHY

Your Life As a Business

SAIM

ASIANINSTITUTE oF MANAGEMENT A IUBLIcATIoN oF THE Asml Iusrlrun

oF MANAGEMENT

2'dQuarter 2000

Praidenc Robeno E De Ocarnpo Deanof the lnstitute: Pml fduado A. Montd, Jr, SCHOOL MANAGEMENT BOARD

E-COMMERCE What Happens Underneath Those Dot-Coms ...And what they - and you - should be doing to make a real impact in e-commerce. By Dado Banatao

LEADERSHIP Howto ReinventtheGM for the2000s

kof. Alejar&ino J. F€rrcda A:tociatcDean,,4:ianCortetfor Entt?Mtu/rh ip Pr0f ErnesloD. cadlao h'odat Dean,Ccnterfat Dwhlmmt Managtmat Pmt SonnyB. Colomr A'!o.kt Dean,&urttu Edulaion anl Lifehrg LearningGnta Prof. Gloria s. Chan Attociat!D.aa Matkr in Bbines Mdnag.mcnt

As they transform themselvesto respondto the challengesofthis decade,Asia's businessleaders can find their soul matesamong their European counlerpans. By Jose M. Faustino

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

CfNfiR

Prof. EduardoA. Mornd Jr. ExccutitrManagrngDirunt, A dnn E$. .ne dndFatsbJ Da.lolne I/HP-D

HUMANBEHAVIORIN ORGANIZATIONS S€xuality in theWorkplace A surveyandforumon genderissuesreveal surprisingperspectives aboutgenderissuesin today'sworkplacein Asia. A forum facilitated by Patricis Denis€Lop€zand Horscio Borrom€oJr.

NEWORGANIZATION FORMS Beyond The Coerciye Organization We strive to empowerpeople with one hand, and still use coercionwith the other There must be a better way to managepeople. Bv Steve Minett

PERSONAL PHILOSOPHY YourLifeAs a Business It doesn'timitateart, it's not a bedofroses.To the managetlife is whatelse a business. How profitableis youm? By Chung Po-Yang

THEJOURNAL

MANAGEMENT BOARD

Prof. Reynundo L. Robeno Efttutive Manating Ditctrt, Phnning andFinana

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I,rof. Dnila-tugim I. Foja! MarugingDircctorMarhaixg and Cwano Rrhtiont

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Ms. Mrncc P Celi Maragin| Dne$or,I*ndonal anl InvettorRthtion

Pmf G3.ton D. O.tigr$ Jr. E'.cunueMtMgng Dftcto. Na It,gda' D.v.bpad' Prof. Mrriaro S. l2Cmen Etdri"c Manating Directo. Fatilitic Managnnt and TuhnicalSnica Prof Sonny B. Coloma E .runte Mdtuging Dircct,r AIM Confnncc Antet Marih Pcter K Femendez ChiefWnatin Wcl

CENTERS FOR f,XCELLENCE Pmt Felilb€no U. Burro' &?ruti,e Dilectot, Gu Jl'e B. Fene $" Jr Centet Ji)r Banhi gand Finance

a Corporate Finance: Do Managers Manipulate the Timing ofAsset Sales?

Prof. FcdcricoM. Macerrnas ExcotntuDnunr.Washingan Sfcil PILE AnEl

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

I,rof. rdipe B. Alfonso E*runw Dirccnr, tunon V &l Rosaio,I AIM Cnwr fo I Coryolat R?'I oNi bilitJ

Thc Arian Ma-trageris a quarterlypublicationofthe Asiar InstirureofM"n€emenr IMITA (P) 042l l0/98 KDN PP (S) 1076/3/2000ISSN 0l l6-77901, with editorial ofiices ar the nsian Institure ofManagement, 123 Pas€od€ Rox?!, Makari Ciry philippine s. "tet: (632) SgZ4Ott-25;892-0435_43:.fetefax: (632) 893-334 I E-mail Ad dress:un@dataterue.aim.edu.ph Copyigft2}}o The A'ian Manag€i All rishts resrrved. Reproduction in any manner in whote or in part in English or other languageswithout prior written permission is prohibired. Printed by \forld PressInc., philippines. eu€zon City,

WhatHappens UnderneathThoseDot-Coms ...And uhat they- and you - should be doing to mahea real impact in e-commerce

By Dado Banatao

web. The majoriry of businessestoday, whether they are in the United Statesor Asia, is in B2B (business-tobusiness).That is the focus of much of e-commerce.

In casevou've been marooned on a desertisland for the lastsix yearswithout any meansofelectronic communication - and, anlway, doesthat kind of island in the data In the early1990s,major developments s r i l le x i s t -? t h eb i g r h i n gi n b u s i n e ' si s e - c o m m e r c e . enterprisecomThe only things possiblybigger are the hype, misin- backboneofthe enterprisetransformed major build-up of formation, and confusion that surround it. To help puting. By late 1990s there was a as we scrapeaway those un*anted effccts, the \7. SyCip wide-area infrastructure, which is the internet There user-friendly. Policy Cenrer invited Dado Banataoof the Mayfield know it today. The web became e-comFund, and oneof SiliconValley'smost prominent Asia- wasa slewofapplications that enabledus to do born entrepreneurs,to addressits 3rd Asian CEOs merceon the web. Policy Roundtable. In this article basedon his keyThis brought about the fast growth of companies note speech,Banatao sifts through the main trends like CISCO, becausetherewasmuch-neededinfrastrucusing his objectiveinvestor'seye. ture ro enablee-commerce.PC penetrationcontinuA-ndthesebrought aboutwhat we now ouslyaccelerates. call Internet computing, which is enabledby that convergencebetweenthe infrastructureand the web.

hat actually happensunderneaththose At the sametime, corporationsstartedto focus on dot-com names?Some of the things I'll exposehere are the things that the dot- spending money away from excellencein production coms, if they want to be successful,should be attend- and shifted to excellencein commerce.It is not surprisi n g t h a ta m a i o r i r yo f r h e m o n e ys p e n ri n e - c o m m e r c e ing to. today is in B2B. In 1999 the figurewas US$100 BilLett first take a secondlayer approachto e-com- Iion. The ratio ofspendingbetweenB2B and B2C (busi"E-commerce" was 10 to 1. Corporations are putcan be simply defined asa pro- ness-to-consumer) merce. cessoffacilitating commercebetweenbuyersand sell- ting a lot of rponey into improving their buying and They are saving and, in some cases, ers using online intermediariesenabled through the selling processes.

making a lot of money in buying and selling,compared Intermediarieswill facilitateother processes. Ifyou with just making products. look at the existing purchaseflow within a company, there is usually a form that gets filled out by the Every.thingnow dependson the rate of adoption requisitioner,which goesto a managerwho approves and execution.Predictionsin market srowth arealmost that purchase.Successfulintermediarieswill automate alwayslinear in nature.Bur usually-wharhappensis thosethings and make it so much easiersuch that buythat it is an S curve. In other words, peopleare usua.lly ing and selling becomesecondnature.And the sameis behind and so you initially have a flatter curve, but true on the selling side. Intermediarieswill facilitate when peoplerecognizethat they are behind, they try to inventory and pricing. There are some products for accelerate. The slopeof the S curve dependson how a which you need to run an application before you can specificcompanyexecutesits strategy.E-commercefol- even decidewhether you want to sell or buy the prodlows the S curve ohenomenon. uct. These are specific applications. Intermediarieswill enable This new e-commerceparayou to run those applicationsto digm createda new set of busihelp you decide.Another impornessfacilitatorscalledonline intant fi.rnctionis developingmarTraditional termediaries.The way we have ket metricsand anall'tics.It is not been doing businessfor a long sufiicient to .justpost your proddistribution time has been through estabuct. Most of the successful online lished distribution channels.A intermediariesactually give you channelswill be lot of those channelswill be relevantinformation on whether disintermediated if they dont you are deciding properly on a disintermediated becomean online intermediary purchase.They give you perforif they don't mance parametersfor a product A Value Proposition Is a Must so that when you finally make becomeonline that final click, you feel that you So what are those acdviries made the right decision. intermediaries.. they have to get on with? First, they must havea valueproposiThree Market Segments tion. They haveto add value ro the channel. They have to creThere are three major B2B are original content. They have segments: t o a g g r e g a t ea n d d i s t r i b u t e ' third-party content. They must enable personalized a) The vertical marketplace communications. b) The horizontal marketplace c) The marketplaceenablers,supporting both the One of the major activities,obviously,is matching vertical and the horizontal marketplaces. buyersand sellers.Once you havethose addresses and enoughstatisticsin termsofthe buying and sellingtraits, A characteristicofthe vertical marketplaceis comthen e-commerceengineswill be able to match buyers mercein a specificindustry orchannel. A perfectmodel and sellers.One of the other activitieswould be to fa- of this would be the site on petroleum. E-petroleum is cilitate dynamic discoveredpricing. An exampleofdis- a vâ&#x201A;Źrtical e-commercesite. They deal with everything coveredpricing would be auctionsor bids where there that hasto do with oil and petroleum and all its derivais no set price. Online intermediariesshould facilitate uves. theseauctions.

Horizontal marketplacetranscendsnumerouschan- complex content. Value propositions here would be nels. They deal with common characteristicsacross speed,which promotes direct bidding in transactions and solvescostly and labor-intensivesearchingand nemultiole industriesor markets. Marketplaceenablersare completely indifferent to the channel they serve.Examplesof theseare trading exchangeapplications.These are technology-oriented. They give you the tools to becomean e-commercetype ofcompany. In some cases,solutions are usedby traditional non-internet-enabledcompanies. There is anotherway to segment the market - by the way participantslook at pricing and content; a) A distibutor is characterized by simple content and establishedpricing. You can be a distributor ifyou havethat kind of characteristic.Some of the value propositions are volume aggregationacrosssuppliers, cross-vendorshopping and a greatervariety of products.

Vith all thesesegments,evenat this young ageofecommercewe alreadyhavea proliferation ofthe different typesof e-commercesites.Most of them are considered distributors and publishers,although brokers and exchangesare moving fairly quickly. Whele to Invest

Whatto do? First, they must have a valueproposition. They haveto add value to the channel.

V/hen peoplewant to invest, they therearerhreeconsiderations look for: o Channel and commodity factors o Company factors o Businessmodel factors

Ar Mayfield Fund, we havea current investmenrof about halI create They have to a billion dollars.Half of rhar b) A publisher also has esamount is invested in dot-coms tablishedpricing, bur has more original content. and the other half is in rhe comcomplexcontent on its site.Anwhich municationsinFra-:tructure, other characteristicwould be a rhan the if nor better, is as good, personalizeduseofthe data.Beinternet dot-com rype ofreturns. causeyou have more complex maryou need to look for a largeaddressable But clearly like one-on-one content, you can begin to do things marketing. You may even have community member- ket and look for technologicallysawy companies.These ship to targetmarketswith your content.A valuepropo- companieswill adapt to the net much faster You need sition here is, by having a lot ofdata, you can now do to look for a favorable relationship between shipping cost and product value.For example,ifa company hasa rapid supplier search. product valueof $ 1 and it coststhem $2 dollars to ship, c) An exchangewould featuresimple content and we stayawayfrom investingin it. discoveredpricing. Ar examplewould be auction sites. 'We prefer perishablecommodities. If the value of A value proposition here is that you havehedging and diminishesover time, you reallyneedonline the product speculation,which is good in some markets. generatea lot ofprofit. The commerce.Thosebusinesses there should be no signifiis that first factor to observe b) The last classificationwould be brokers,which featurecomplex content and discoveredpricing. Items cant customer'behavioralchange.To put it simply, do rend to be offairly complexdescription,henceyou need not go into extensivetraining ofthe customerbasejust

ments arâ&#x201A;Ź first, invest into companiesthat want to exploit the channel through the web. Second,they have to have some defensiblechannelstrategy.Third, they should have favorablemargins.Wall Streetis punishing a lot of companies now becausethey keepon losing money,becausethey dont have enough margins. For example,for every click Valueproposition should alsobe quantifiableto the that happens,they give one dollar to the user.So favorable buyer and seller If the user has a hard time justifying margins are things that we watch out for. And finally, it that he is savingmoney or making money on that trans- should be clear that we can monetize the value orooosiaction, you can bet that he would not usethat site.So it tion. should be very clearon his mind that he will savea lot of money or in the caseof selling, he will get a better price. Dado Banamo i Wnnre Partner at the Matf.eld Fund, a Silicon for them to get online. You do not have time to teach wherethereis litde the customers.Soget into businesses uaining done or behavioralchange.Second,management teams must have domain expertise.And lastly, createeventsto generatequick adoption.

Vall.ryaentutecaphalfrm that hasmorethan $ I billion andtr manin morethan 300 companies,witb afocat ox Finally, someof the important businessmodel fac- agementand hasinuested. technohgy and heabh-related basinesses tors that one should rememberwhen makins invest-

"You Must

EmbraceIt"

How doesa company go about developingan e-commercestrategy?To start, you must really believe that to survivein the future you must embraceonline straregyin all its applications.You haveto change the culture of your company.The important point is that e-commerceis not simply adding another distribution channel or introducing some new efificiencies,it is driving customersto do businessrn a fundamenrallydifferentway. kt me give you an example.\Vay back in 1960 my formei company wasone of the pioneersin EDP knew we had to changeour products to electronic.1Veknew we had to changethe skills and mindset ofour employees.However,we thought the transformationwould be gradualand we could take our time to phaseout our mechanicalmachinesand substitute electronic ones. Our customerswanted to move fasterand our competitorsbeat us to it. Our company was in serioustrouble in 1972 so I was brought in to saveit. In lessthan a year,I forced the complete transformation of the company from mechanica.lto elecconic. From manufacturing to marketing and service,everybodyhad to think and act asif we werea computer company - 100 percent.It was traumatic for everyonebut it savedthe company.Ifit had been done gradually,the company would not exist today. To get their employeesto live in the e-commerce world and think accordingly,the Ford Motor Company is giving a PC to everyemployeeto useat home. 'We

\Vhile I dont think your companieswill fall ifyou dont adopt an e-strategysoon, I do believeyou would be left behind by your more nimble competitors.

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

: ",' :i.r' .

tEngra

the Howto Reinvent EuropeanGM for the 2000s ofthis decade,Asia'sbusinesleaderscanfnd their to respondto the challenges As theytransformthemsehres soulmatesamongEuropeancounterparts.

By JoseM. Faustino One of the great conceitsof managersis to seetheir challengesasuniquely theirs. But globalizationopens ofchange that apour eyesto the universalpressures ply any-wherein the businessworld. This particular study of the.challengesto Europeangeneralmanagersin this decadeservesto enlighten Asian managers regardinguniversalleadershipneeds.This is especially significant if you agree,as many do, that the Asian models for how to globalizea company are closerto Eurooeanthan to American models.The article then brings the fuian situation within this broad context, through the accompanyingsidebar.The aurhol who splitshis time working with both Europeanand Asian GMs, providesan informed perspectiveof how managers- whereverthey may be in these two contiso they can, nenrs.- needto transformthemselves in turn. transformtheir companies.

Customersare now talking back and challenging the big companies.They havebecomebetter informed, receivebetter servicequaliry and expecteveryoneelse with to keep up with their growing they do business expectauons. Aside from customers,the challengesand changes arecoming from disruptive new technologies,from effects of globalization,from suppliersof materialsand funding, from employeeswith higher expectations. Many IT applicationshavedisruptedand will continue "normal" operations(translation:old parato disrupt digms).For example,the internetnow allowsbuying products from music to insuranceto financial services directlywithout needfor intermediaries.And while the Europeanmanagerwould previouslybe forcedto make a decisionon incompleteinformation,new information systâ&#x201A;Źmsare bringing so much information that rime is now the problem.

New Skills to Cope with New Challenges ny Europeanmanagerwould admit to asThe 2000sdemanda new typeofgeneralmanager r o u n d i n gc h a n g e isn t h e o p e r a t i n ge n v i r o n ment in the last 10 yearsofthe 20th century. with upgradedskills and knowledge to cope with the e n ri r o n m e n t . Paradigmshe hasgrown to acceptareeither erodedor g r o w i n gc o m p l e x i r yi n r h eo p e r a t i n g eliminated.Challengesto the Europeancompany are First,the new GMs must be VisionaryI'eaderswho now coming from everyside,whereasit usedto come havea strategicunderstandirigof their industriesand only from competitors. their own organizations.Thus, they can define what For example,the idea of international expansion businesstheir organizationsare in and, more imporusedto take the form ofdirect investmentacrossbor- tant, what they should not be in. Togetherwith their t h es t r a r e g ipco s i r i o n i n g ders,a joint venture,or a friendly buyout. Now a for- k e yp e o p l er.h e yt h e nd e v e l o p must create to fulfill those ambiwhether company, rheir organizations any public eign company can buy tiousvisions. rhat companyt managâ&#x201A;Źmentis in agreementor not.

Visionary leadersare also Tiansformational Lead- The Age of Collaboration and "Coopetitiori' ars,who make certain their organizationswill change '$7ith in the direction and shapedefined by their visions. mega-mergers continuing to redrawthe businessmap, EuropeanGMs must function asastuteCaaJack Welch took over GeneralElectric in the eady lition Managers.They musr havea strategicperception 1980sand found a giant company that had beenstag- that enablesthem to anticipate future developments, nating for years:slow growth, stagnantprofits, profit- opportunities,and threats.They areableto seekmerger lessdivisions,unexcitedworkers.He developeda new partners,or acquireorganizationsthat will complement vision for GE that was at once ambitious and exhila- the strengthsof their organizations.They are able to rating. He made sure that all GE people could easily work evenwith competitors,as long as it makessense "coopetition" understandthe vision,and that they could identifi'with for both parties.This hasresultedin faster it although it was obvious the product launches,lowercompovision would not be easyro nentcosts,and lowerinvestment. achieve.He involved himself in hiring people, making sure each Visionaryleadersare Coalition manage rsalsoknow one would exily adopt and suphow to defend their companies Tranformational port his vision. from unfriendly rakeovers. Yerfor desirablepartnen, they are able to Leaders- they make \Jflelchmodeled whar the Er, negotiarewin-win agreements. ropean General Manager must \0itnessthe chief executiveprocertaintheir organizations learn to accomplishthe role ofthe tagonists,Vodafone'sChrist Gent Credible Communicator. He neycr and Mannesman'sKlausF-sser, both changein the directionand rired oftalking, explaininghis vicapablecoalirion managers.Genr sion to the GE people,first in the tries hard to merge his company shapedefinedby UnitedSrates then rhroughoutrhe with Mannesmaris, knowing that world. He lovedface-ro-face meet is what it would take to becomea theirvisions. ings with employeesso rhey could global telecoms player Esserably askquesrions. express doubrs.and defendsrhe inreresmof his srockobject to the vision - all directly holders and manâ&#x201A;Źers with wellto him. He expectedGE managersto have the same conceivedfi nancialcounrer-stnregies. amount of direct availabilityand communication with their people. As a strong leader,he insisted that his The coalition managerGM also extendshis hand managersalign themselveswith the vision he so tire- ofcooperation with suppliers,creditors,and stakeholdlesslycommunicared.He disciplined those unwilling ers, building alliancesfor new products, new systems, to do so. and other mutually beneficial programs. Good coaliContrast this with the style ofthe CEO ofone of Germany'smajor corporations.He communicatedonly with his direct reports,objecting when a direct report would bring a lower-levelmanagerto a meeting with the CEO. He was a brilliant man but he lackedcommunication and leadershipskills.Thus, lower managers had a vague notion of the corporatevision. End result: this corporation has been broken up and its name is no longer in the news.

tion managers must also be good Capital Managers. They must have the financial skills to be able to value their companies'assem,how to squeezeasmuch capital from their balancesheetswithout buildins excessive rish into rheir funds portfolio. fhey must build financial infrastructures that optimize cash flow, yer do not strangle the decision-makingcapability of competent managers.Their network ofcontactsmust include leading financiersqhatcan help their organizationsexpand ouicklv.

Especiallyafter acquiring or merging with other organizations,the GMs as Cubure Buildcrs and Moti' aators mtustbe able to persuadetheir own people to adoptvisionsand objectivesastheir own. The new GMs recognizeinstinctively that competent peopleat work are best motivated ifgiven room to decideand act on their own. They build learning organizationsthat continuously gain skills and knowledge.To this end, they invest in people development and in the intellectual capital of their organizations.They know that one of the most critical sourcesof competitive advantageis for their peopleto be more knowledgeablethan those oftheir competitors. They insist on systemsthat will identifr the best people, keep them growing, and ensuretheir loyalty with multiple rewards- only one of which is money; On the other hand, they do not hesitateto discipline those that do not deliver as committed, or thosewho do not align with their companies'visions and values. Obviously,they arethe walking, talking modelsfor the culture they build. Marketing kader, Not Follower The GMs must developsuch a high level of marketing expertisethat their companiesbecomethe Manter Marhekrs in their industries.The new GMs must develop,markedngstrategiesthat alwayscorrespondto their companies'core competencies.Their marketing peoplemanagethe valuechain so the overallvaluecreated by their companiesexceedsthat of their major competitors.Their companies'brands maximize their potential over time. V/hen Michael Eisner took over the CEO job in i984 at the \(l'alt Disney Company, it had ovo worldfamous but declining theme parla and a collection of canoon films for children. It was going nowhere but down and had no idea how to grow the market for its products.Eisnerand his managersstudiedthe customers, their lifestyles, needs, spending and leisure habits,then launchedan astoundingseriesofnew products, using the very samecartoon characters.He created a new Disney world, not only at the theme parks, but alsoon TV cinema,and in cruiseships.As a Master Marketer himself, he said his leadershipstyle has

l0'

not changedthrough the years.As a leader,he said he createda working culture ofcreativity that carefullyallowed and controlled conflict, stabilizedby common "idea gensense.He said his main role was that of an erator,all the time, all day,all night." Disney'sbusiness hasgrown enormouslythrough the years,from lessthan $ l b i l l i o nt o $ 2 3 b i l l i o ni n 1 9 9 9 . The GMs of the 2000smust be ZcDnohgicalManagars.Although they neednot be technicalpeople,they must know how technology can help achievevisions and ob.jectives.One of the most pressingneedsof the new GM is to determinehow information technology can continuero help his business. Internal communication systemshavebrought information instantly to thosewho would needit in their work. The internet is dramaticallychangingthe expectations and increasingbargaining power of all buyers, consumerand industrial. There is no choicebur to invesrin lT systemsrhat facilitarecommunications' will caprurethe economies, and provide innovative servicesto the customet lest ti(4renorganizing competitorsput you out ofbusiness. to expandvia the internet, the GMs rnust be businesses able to understandthat this new businesssystemneeds And a differentmindset,work style,and rewardsysterns. they will need padenceas it takesa long gestationperiod for o'rganizationsto profit in the new medium. Conclusion '

The businesswodd hasbecomemore complexeach year,lesspredictable,a more difficult, riskier place in which to survive and make profits. But for those who areskilled and prepared,the sameenvironment hasopportunities and challengeswhich, ifproperly managed, over rime. will resulrin consistentsuccess Fortune'sAsienBusinessmanof the Year,Yun Jong Yong, found his operating environment for Samsung Electronicsexcruciatinglydifficult in 1997. South Koreahad just fallen into vinual insolvenry.Though congroup) in sideredthe best-managedchaebol(b:usiness all ofSouth Korea,the SamsungGroup wasnot spared lossesamountinq to hundreds of millions of dollars,

shrunken markets, runaway inflation, and protesting unions. \With creativity and sheerguts, Yun dramatically reducedrhe overheadand bureaucraticlayersat SamsungElectronics while driving R&D to quickly launch a stream of highly innovative high-tech products. He had all the attributes outlined in this article: an attractive vision, abiliry to communicate and persuade,nerworking skills to collaboratewith stakeholdersand evencompetitors,a good understandingoftechnology.

The lessonfor young European managersis that they need to preparefor this new demanding environment now. They need to develophabits and skills thar will result in sharpeningrhe multiple roles required of tnem. I

Yunt first message wassimple to understand:"First survival, then growth." Once survivalwas assuredby a streamlinedorganization, he worked on the new culture ofmerit insteadofsenioriry accountabilityinstead of apology, open dialogue instead of camouflageand subterfuge.He traveledfar and wide, spendinghalfhis time to announce and explain his vision. To optimize communication, he encouraged Samsung people to

Prof ssotJoseM. Fa*tino is the GoodyearTire axd Rabber Company ProfetsorofBusines Management,and the ProgramDirector of the Etecatite Edacation Marheting StrategyCoarse.He is concartently tbe Peter Curtius aisiting professorat USV locatedin Erfstadt, neat the ciry of Cologne,Germany.Beforebecominga professotin 1980, he had.workedfot t9 yars with global companiesasa profetsionalmanagerHe is a coxsuhantto nameroatAsia Pacifc companies,includixg major Europeanghbal companies.

communicatedirectly with him from any level.He was able to discoverproblems that had been in hiding for years,which were costing the company millions and millions of dollars.

Asiat GMs Watch and Learn Asiat generalmanagersare typically flying high and feeling very confident in rhe 1990s -- until they were pulled painfully down to earth by the regionalfinancialcrisis.Survivingthat debacle,they should evaluarenow whar they need to become. They still havevisions,albeirin humbler form. There are still opportunities, but they know neither they nor their organizationsare ready to exploit them.Very likely they needto implement dramatic changes,first in their leadershipsryles,then in their companies.They expectto leadtheir organizations permanently out of the crisis and into profitable growth.

matically and createglobal massfor their companies. \*4-rileSoutheastAsia'sbusinessmenhave not come together aspartnersas quickly as their Europâ&#x201A;Źan counterparrs,there are high-profile examples of recert inter-Asian venturâ&#x201A;Źs.Thus, Asia'sGMs should likewise learn how to managerhrough different national cultures to createa single corporate culture.

Asian and European GMs have one thing in common, when comparedwith the American GM. The latteraJlowsyoungermanagers moreparticipation, more power, fasterdevelopment,and greater financialrewards.The youngAmericanmanageris thus ableto contribute more and soonerto his orgaAsia'sGMs should becomemore open to alli- nization. This explainsthe dynamism of American arcesasglobalizariondemandsgrearerscale,grearer companiesin general,not iust corporaresrart-ups fi nancialresources and stare-of-the-arttechnology. and spin-offs. The Asian and European GMs are More than ever,they should havethe financial and watching and learning. control skills to quickly evaluareopporruniries. mergers,and acquisitions,to propel growth dra- -Prof. JoseM. Faustino

in the Sexuality

Workplace aboutgenderissuesin todqi workpkce A suraE,andforum on genderissuesreuealssurprisingperspectiues in Asia.

A forum facilitatedby By PatriciaDeniseJ. Lopezand Horacio M. BorromeoJr. Administrative Position: Who Will Likely Be Hired? That more and more women haveinvadedthe workplaceand haverisenin organizationsthroughout Asii is not news anymore. But are organizationsreadyto dealwith this continuing trend?Many suchquestions have been raised about gender-relatedissuesin the workolace.To arrive at answâ&#x201A;Źrs,the Asian Institute of Management conducted a survey and public lec-' ture on the hot subject.Excerptsfrom the survey results,and the lively exchangethat occurredin the forum, are presentedhere.The forum was chaired by PatriciaDeniseJ.lopez (PDL) and Horacio Professors M. Borromeo, Jr. (HMB). A number of participants sharedtheir views, and they are here identified by their genderonly. Seehow your own perceptionscompare with theirs.

Femak Participant: The woman will be hired. Since we aretalking about an administrativeposition, I think a woman would be more effectivebecausewomen are easyto mlk to. They understandthe problems of the employees. Mab Partitipant: I'm in Human ResourcesManagementand I agree.Women would tend to be more meticulous and more patient. FemaleParticipanr.' I totally disagreebecauseit rea.llydepEndson the kind ofcompany you work for and the kind of serviceyour company provides. Engineering Position: Who Will Likely Be Hired? . HMB: Anyoneherethinks that the woman is more likely to be hired for an engineeringposition?

in the field of MB: A grotp of professors conHuman Behaviorin Organizations issues in the work gender a survey on ducted

FemaleParticipanr.' It doesnt make any difference. HMB: lVy'eIl,80 percent of the men say it will be the man.

place. Respondentsto the survey included AIM students, alumni, and prospectivestudents.The objecPDL: More women think that the man will be tive was not to obtain a statisticalsample,but quite simply to generatedata that would allow us a starting hired: 86 percent. point for an exchangeof insights, experiences,and FemalzParlicipanr;But I think it dependson the sentimentsabout genderissuesin management.l,et's t ngineering apo f e n g i n e e r i n g :i n m a n a g e m e n e a woman are r y p e go to the first question: a man and women do very well, so with chemicalengineering' plying for an administrativepositton. . .

FemalePanicipanf: I agree.It also dependson the place.You would be very surprisedto seehow many women in Vietnam are engineers PDZ: Statisticsshow that the number of women engineersis actually increasing.\Whether the public acceptsthat is a different matter.But asmore and more women engineersjoin the workforce and model behaviors for other women, this may become lessof an lssue. a a

Who \?ill Likely Be Promoted to Middle Management?

A mananda womanareaboutto bepromoted level.Whb do you to middlemanagement thinkwill likelv be Dromoted? MAN olo

WOMAN EITHER %

MALE

FEMALE

Ma le Parti cipant : Eithen ofgenFemaleParticipanr;The bestone, regardless der PDZ.'The surveyrespondentsagree:71 percentof the malessay,may the best man or woman win. The femalessaymuch the samething. Both groups display just a slight bias for their own gender. HMB:Broken down by agegroup, theret no change in what male respondentssay.But the responsesfrom femaleagegroupslook interesting.

to middle Whowill likelybepromoted to: according management

MALERESPONDENTS (bybirthyear) , MAN % 1950-195920 1960-196918 1970-1979 2'1

WOMAN EITHER Yo

10 3 10

70 9 69

PDI; Fewerofthe younger females(born 1970 to 1979)would saythat a man would be chosenfor middle management.Theythinkwomen canactuallydo a good job being in middle management. Who Will Likely Be Promoted to Top Management? PDZ; At the highestlevel, mobility becomesan issue.There will be more travel required,more responsibiliry, and more conflicting issuesbetweenwork and family. Males in the survey were split almost 50-50: either men, or whoever is the most qualified, will be promoted. The responseof the femalesis interesting, but rather disappointing for me: 63 percent of them still believeit will be a man. There are many possible explanationsfor this. One could be that the women acceptthe fact. In other words they seeit as the norm "Ifthatt the culture we might aswell accept and think,

Who will likely bepromotedto middle to: according management

RESPONDENTS FEMALE (bybirthyear) MAN, Yo

1950.1959 18 1960-1969 13 1970-1979 g

WOMAN EITHER % Yo 18 8 22

64 79 69

ir." The other more dangerousand more disappointing Bosses:V/ho Are You More Comfortable With? reasonfor me would be if they werenot asconfident. In F1M& Now we get into the more managerialaspect other words if rhey feel they are not qualified, or they "In will neverreachthat point wherein they can actuallyact ofthis studywherewe asked, your presenrjob,which superiors do you generally feel comfortable working as CEO or COO. Comments? with: a male boss,a femaleboss,or either?"So let'sask respondents. The our audienceonce again. Are you comfortable with a FemaleParticQant:I am oneofthe reasonwhy I answeredthat it's most likely to be a man male bossor a femaleboss,or doesit really matter? is becauseof the rype of company I work for. There'sa glassceiling for women. It's all about perception.And perception is greatly affectedby the culture of the .^-^^.''.'^','.. :.

FemaleParticipant' I am more comfortable with a male bossbecausehe expectsyou to do the detailsand he'll make the decisions.

HMB:What abott the femaleboss?What doesshe FemaleParticipant:I believeit also dependson the Asian culture. Even if that female is qualified for the expect? rop managementposition, it dependson her priorities. FemaleParticipant l guessyou alwaysargue with And for many females,that meansthe family.The maleis eachother prioriry can alwaysbe his career. PDL Thereis a lady in the United Stateswhoseresearch indicatesthat the phenomenonof the glassceilingoccurs alsoin the S?est,not just in Asiancountries.One common reasonwhy women seem to stop at that levelis that women areoften not sureofwhat theywant.And the womenwho acnlallyreachedthe COO/CEO levelhavesacrificedagreat dealoftheir families,mayhavenot gottenmarried,or may havepostponedhaving children becausethey prioritized their careers.A lot ofwomen are not preparedto make that sacrifice.

FemalePartiripaw; Basedon my experience,I am more comfortable with a female boss becausewith a male bossthere still is a gap. HMB: V4at do you mean by

"gap"?

FemaleParticipanl; For example,with my female boss,whateverI can do is enough.Unlike with my male "Dont do that. Dont do this." boss,it's PDZ: So you're sayingmalesare more directive.

HMB: If we look at the responsesby generation, FemaleParticipanl: I havebeen in many jobs. And among the youngergenerationofour malerespondents, there seemsto be a larger percentagewho saysthe man in all those jobs I only had one opportunity ro work with a female boss;most of them have been males. I will get the top managementjob. don't seeany difference.My female boss rhought like But you want to note here alsothat the proportion my male bosses. of female respondentsamong the younger generation Male Participant: I worked with both a male and who believethat a man will be the automatic choicefor f e m ale boss. I found my female boss more those ofpreYious rop managementis now smallerthan participative,helpful, and urlderstanding.I think male generations. and try to bosspeople bossestend to be more aggressive PDZ: The youngergenerationis more empowered. around. If you break the responsesdown by rype of company, HMB: Ve've hearda varieryof opinions. Let'sflash you seesomeinterestingresultsfor the local companies. Thirty eight percentsaid either man or woman, but 62 the results.Half the men saidit doesnt makeany differpercâ&#x201A;Źnt still said it would be the man. For those who ence. 40 percent said they are more comfortable with work in multinationals,you seean almost50-50 split. male bosses.Lett seewhat the women said.

A mananda womanareaboutto bepromoted to topmanagement level.Whodo youthink will likely bepromoted? MAN o

WOMAT.I EITHER Y

PDL: The main finding is that the percâ&#x201A;Źntage of women who are more comfortable with female bossesis more than double that of the men. Maybe it has to do with the participativenurturing rype of style,which ofcourse women expectfrom their supeflors.

MALE

FEMALE

()

HMB: Let'sseenow how the malesareprogressing from one generationto the next. \fhar is inreresringhereis rhar wirhin rhe youngesrgeneration. people are more comfortable dealing with female bosses. FemalrParticipanr:They are being realistic,becausemore and more women are becoming bosses.

Whowill likelybepromoted to top management according to:

MALERESPONDENTS (bybirthyear) MAN % 1950-195946 1960-196947 1970-1979 60

WOMAN EITHER % % 0 0 2

54 53 39

Who will likely be promotedto top management accordingto:

FEMALE RESPONDENTS (bybirthyear) MAN

WOMAN EITHER

olo

o/o

o/"

1950-1959 82 1960-1969 62 1970-1979 53

0 0 0

18 38 47

HMB:There aremorewomen bosses. Therefore, they might aswell learn to live with it? Or are they in fact more comfortablewith rhis so-calledparticipative, understanding,nurturing sryle? PDL: The lady has a point when she said that when more and more women enter the workplace, the likelihood ofhaving a femalebossincreases.So, more males will have the opportunity of working with a femaleboss.So this may not havebeen true for the older generation. Let's move to the female respondents.This is quire inreresting,as the youngergenerarionseems to prefer male bosses.Maybe because,asone ofthe participantsmentioned earlier,men havea directive sryle. Men tell you exactlywhat they wanr you ro do. Maybe that sryle is appealing ro rhe younger peoplewho still needto be trained.Thatt onetheory. Howevel thereis still a strongpreference- 31 percent - aswell for the femalebosses. Highly Successfir.lMan: Top l0 Characteristics PDL: Ve also askedour respondenrsto think of a highly,successfulman and to enumeratesome of the characteristicsthat describethis individual.

'We alsogroupedthe answersin termsof femalerespon- are dominated by the present. Men have dreams 'i{4-ratdo you think are dents and male respondents. looking forward and strategizingis important to them. the characteristicsofa highly successfulman? It may or may not be as important to women or they may not have as much experiencedoing that. As you FemalePanicipantrHe's comperirive. know, male and femalechildren may havebeensocialized in a different way. Even ifyou look at the games FemaleParthipanl: He has a well-rounded person- boys play versusthe gamesgirls play when they were aliry. young - they'râ&#x201A;Źvery different. A tea parry for the girls is very relationship-orientedand nurturing. Sportsfor Male Participant: He knows what he wants. boys are goal-oriented, competitive, future-oriented. Strategyis important for them. The socializingof kids FemaleParticipanr; He's a risk taker. He has a high builds expectationsofthe future rolesthey will play. self-esteem.He's highly confident, effective. Highly SuccessfrrlVoman: Top 10 Characteristics PDL: Leis look at what the women respondents man. ofa highly successfi:l saidarethe top characteristics PDZr Now we look at the top 10 characteristicsof You seesomething interestingwith the first three, es- highly successfulwomen. 'What do you think would be peciallythe No. 1 answer.It appearswomen reallyvalue some of thesecharacteristics? good people skills. So the ability to interact well with people,the ability to communicate,to build a good team F e m a l e P a r r i c i p a z t ; C o m p e t i t i v e n e s s ,b e i n g even more imall seemto be important to females hardworking. portant than being hardworking. The No. 3 characteristic, good communications skills, is related to No. 1, Ma le Participan t: Assertiveness. people skills. So, interpersonalskills seemto be more important to women rather than technicalskills. Mak Participant:Theability to dealwell with men. I think she should be a very good cook and very good HMB: The ma.lerespondentsseem to agreewith homerriaker.Now dont get me wrong. Many successrheir femalecounterpartsin terms ofthe first two char- ful men.are actually products of excellent marriages acteristics:being hardworking and having good people becausetheir wives have been very successfulhomeskills. But they seemto placea higher emphasison be- makers.Arrd managinga home is very difficult. ing ambitious and goal-oriented,followed by being fair and honest, and having integriry - which the female . PDL: On top of ever)'thing else,yes,that'svery cha.lrespondentsdidn't rank quite as high. Ienging. PDZ: Another finding is that for men, being innovativeand having a vision is important. Forwomen you wouldnt seethat reflectedasmuch.

HMB:That's one of our senior faculty members, Capt. Bobby Lim, talking. He is a strong believerin tnat.

Male Participant:Note that the femalerespondents Female Participant; V/hen we were talking about are The male respondents of the present. are talking the traits of successfulmen, I said a highly successful talking more of the future and where they are going. man would be a happily married man or family man. And I agreewith Capt. Lim. If a man or a womanwere "here and now" comes happy with their family lives they would becomesucPDL: That women are very from their role of managingthe family. Their concerns cessfulin their careers.For instance,if a woman has a

to top Whowill likelybepromoted management according to:

WPE OFCOMPANY MAN % 62

LOCAL

MULTI. NATIONAL 49

WOMAN EITHER % % 0 3 8 51

"\X/here did you go after husbandwho will askher work, maybe you were with somebodyelse?" - that would stop her from progressingin her career.Or viceversa:if the husbandhad a naggerfor a wife, how can he be successfirl? FemaleParticipanr:Oh, come on. If the wife and the husband are both working, they should tell each "Look we are both working, we both dont have other, the rime to nag. Let'snot spend the time we havenag-:--

^. -^-L

^.L--

men had somebodyvery supportive behind them. ofa man FemaleParticipant: But why is the success \fi/hat if one or woman dependenton somebodyelse? parrner changes?I think the factorsare within the individual. You succeedaccordingto your own yardstick and not by externalmeasures. PDL: Let's look at what female respondents thought. They felt that to be successfulthe woman would haveto be hardworking, intelligent, competent, and also ambitious and goal-oriented.So, clearly this woman has to have drive and must be decisive.Decisivenessis rypically relatedto a man, but hereyou will seâ&#x201A;Źthat it now gemreflectedin a successfulwoman. HMB:Ve can seethat good communication skills rated much higher in the previousquestion about successfulmen, but theseskills are rated much lower for successfirl women. Perhapsthe femalerespondentstake it for granted that a highly successfulwoman already has this as part of her interpersonalskills repertoire. Let's look at the malâ&#x201A;Ź respondents.Again we see: hardworking, good peopleskills,intelligent, ambitious and goal-oriented.Competenceis higher than in the I rankins of characteristicsfor a successfulman.

PDL: That's a phenomenon being observednow. becausethe partSometimesmarriagescan be successful nersare focused.You havelimited time togetherifyou are both working. Therefore,you try to usethat to the best ofyour ability. You dont waste time with nonessential things like nagging.But thatt true, if the partjoined the AIM faal4t in June ner respectsthe wishesof the other or the spousethen Prof Patricia DeniseJ. Lopez 1996, teachingHaman Behauiorin Organizationsfor theMaster you have a strong marriagewhich resultsin a stronger in BusinessManagement(MBM) program. Sbe* co-cbaitperson careerand happy personallife. of AIMiArea ofExcelbncein Human Bebauiotin Organizations FemaleParticipanr: There was a study conducted in the Statesinvolving the top executivesof Fortune most 500 companies.The resultsweresurprisingbecause their high school or executives are married to ofthe top or most ofthem wereneverdivorced. collegesweethearts

(AOE-HBO), a facuhy group specializingonfurthering research in human resources and peoplzmanagementin ASEAN organizations.

of Busi' Prof Horucio M. Bonomeo,Jx I tbe USIPHIL Professor nessManagement.His major ateasofspecializationare organizational behauiorand ttrategyformuktion. He ha: beenwith the facuhy of AIM since1977, seruingas the AstociateDeanfot the PDZ.'Youwould think the opposite:that thesemen Matet in BusinessManagementand the Master in Management would prioritize their careersover their families. But programs.He is concurtentl the ProgramDitector of the Executhe other way of looking at it is that thesesuccessful tiue Edacation TbpMaxagementProgram.

Bevondthe

CderciveOrganization Westriueto empouerpelple with onehand, and still usecoercionwith the other. Theremust bea bexer way to manage?eople.

By SreveMinert

Modern organizationsface a common dilemma: while remaining structurally coercive,they try to implement non-coercivemethods of management,such as -Vhat is neededis an empowerment and deJayering. emergent,non-coerciveorganizationalform. The au"Self-Selected ValueComthor oresentsan alternative: experience he has first-hand which munlties," in being a part of, through associationwith a voluntary organization.Insteadofusing coercionto resolve internal conflicts, this new speciesof organization would implement technologiesof personal growth. "psychological technologies"have deep roots These in Eastern spirituality but have been developed in the Westastools for individual personaldevelopment' They can now be effectivelyapplied to organizational development,but only in organizationswhich havea non-coercivestructute.

feelson the skilled workers ofthe area,a dependenry he has sharedwith his closestcomPetitor.The idea that theseworkers alsowork for his competitor poses a threat to this greatermerchant.He seesthis threat in terms of what they chargehim for theit labor. These workerscould potentially exertpower over the greater merchant becausethey had an alternativemerchant who might offer them more money' So, to protect himself againstthe risks posed by this dependency,he decidesto cut them offfrom other sourcesof income. He setsup a ftirmal organization, e.rgagesthem in a contract of employment, and thus cuts offtheir relationswith all other ownersofcapital. In otherwords, he monopolizestheir labor time, skills, and knowledge. This is one of the main explanationsfor the origin of modern organizations.The owner reversedhis relationsby making his dependencyon free-exchange workers 100-percentdependent,for their income, on him. He was then in a position to coercethem (with societallegitimacy) by threateningto reducetheir income to zero - a threat which he was now structurally enabledto crrry out at any time.

wo merchant capitalistsmaintain relationships with local craftsmenand artisanswho would carry out particular types ofwork for them. One of the merchantsis more successfuland becomes comThis is howcoercion cameto be an essentia.l richer.Alongwirh hisgrowingsuperioriryin resources' he seesan opportunity to reduce the dependencyhe ponent in the structureofconventional organizations.

motivator in human relationshipsis personallove. "Spiritual love," or the power of ideasand values,can motivator. Finally,thereis coercion- trying be a third are to enforce changesin behavior via the use of threats. forcesin organizations However,environmental making coercion counterproductive.The coerciveor- This movement from incentives and motivators to ganization is now functionally in decline becauseof threats is one of the great divides in power theory: changesin organizationalenvironments.This has crethere are clear and essentialdifferencesin qualiry of ated the dilemma facedby organizationswhich, while relationship between the two behavioral approaches. remainingstructurallycoercive,aretrying to implement T h e s e d i f f e r e n c e s a r e n o w c r u c i a l f o r m o d e r n non-coercivemethodsofmanagement,suchasempow- organizations. erment and deJayering. Overwhelmingly. people do nor reactwell to beingcoerced;it organizations Consequently, and reprovokesfear.resentment. now havea need to find alternaThis is why coercion belliousness. tives to coercion to resolveinteris now becoming in organizations ...coercionworks nal conflicts. dysfunctional. in stable and The Difference Between Power Why Coercion is Becoming and Coercion predictable Counterproductive "lVhat is coerThe question, environmentsFor a long time we havelived cion?" can be transformed into: 'power' "lVhat wirh coercion wirhout much dismean?" Aldoes are but these 'power" we lived in an envitressbecause is commonly though ronment of comparativestability used in everydaylanguage,most chaotic and unpreand predictability. However, people find it difficult to define changein this environmenris bethe word. Itt one of thoseclasses dictabletimes... comingchaoricard unpredictable. which are easy to ofphenomenon Markers.fdr example.arebecomrecognizewhen seen or experiing more and more fragmentedby encedbut difficult to verballydec u s r om e r s e g m e n t s :d i f f e r e n t fine. Social scientists, however, have come up with a fairly conrypesof customersare constantly evolving. Customers are becoming mote and mote sensualmodel ofwhat it meansto havepower. demanding in terms of ultimately individualized This is a very simple model involving two actorsA products. and B. The idea is that A exercisespower over B by Organizations need to react much quicker, to be getting B to do something which he or she otherwise would not havedone. In this model B wanted to do X, nimbler on their feet and more flexible than ever beand becauseA intervened, B did Y instead. In other fore. Their reaction time has to be minimized and, inwords, power is being able to alter other peoplet be- deed,their behaviorneedsto becomemuch more proactive.They haveto get closerto markets:information havior in an intended way. from marketscan no longer be filtered up the organizaanother's behavior? tional hierarchy. Information must get to the actual attempt to alter How can one Perhapsthe most obvious method is to offer an incen- decision makersfasterso they can respondto markets tive, the most obviousbeing money.Another powerful faster.This requiresshifting decision-making downOrganizations have used coercion to resolveinternal conflicts for some time .

wards.This, in turn, requiresemployeeinitiative and responsibility.

The Alternatives to Coercion

This brings us to a considerationof the alternaConsequently,we arein a situationwhereemployee tives. Here, I would like to introduce the concept of "self-selected value community." If we extrapolate obedienceis no longer enough. It is now not enough the the conventional organizationis from the notion that that employeesshould simply obey commands "hearts and minds" of their deconstructingitseli therewill come a point wherethe organizationsnow want the to exisr.Most organizarionsmay a employeesaswell. This represents true revolution in organizationhascea.sed organizationalbehavior: the trend toward the use of havea long way to go beforethey get to this point, but I think you can see it coming coercion as a meansof controlalreadyclaim Someorganizarions ling behaviorhasgone through a Handy has have what Charles to is now revolution and 180-degree "clover leaf" structure:the calleda moving in the oppositedirection. top managersform a nucleusfrom ...theproblemwith aresub-conwhich all irsacriviries Let'slook more closelyat the "empowerment" rracted.Eventually,thesenuclear current organizational struggle is individuals may decide that they for rhe hearts and minds of its will simply form partnerships,and that top managers employees.Managershave used will disaprhe formalorganizarion different methods to win this "give" "Empowerme it have who pear â&#x201A;Źntirely. nt" is the battle. most famous and widespreadof their other hand Other routescan be imagined, these. In a nutshell, the central what rhey will all lead ro is a but concept of empowerment is to get tightly clutched group of individualswho form a employeesto act like entrepresort of virtual organization based levels of neurs.This requireshigh around the on their preferenceto do business commitment by employeesto the with eachorher.This is what I call values, and organization'sgoals, coercionlever... "self-selecred valuecommuniry" a vision. . Peopleselecr who they wish to work with basedon sharedvalues. The problemis that top manSharing valueswith another peragerstrying to achieve this are keeping their other hand tighdy clutched around the son is very closeto the ideaoftrusting that person.The coercionlever,which enablesthem to maintaincon- method ofadaptation will be personalgrowth. People trol over their organization.The messageto the em- in this new organizationalform will have to adapt to "We would like you to personallycommit to each other, the only other alternativebeing to volunployeeis: our.organization.\7e, on the other hand, are going to tarily leavethe organization. rerainour legitimateright to expelyou and/or threaten The personalgrowth method could work to resolve to expelyou from this sameorganizationany time that valuecomwe judge that your behavior,attitudes, and opinions conflicts. If, by definition, the self-selected, people coercion to expel itselfnot to use munity pledges the development ofthis do not contribute positivelyto resolve organization. (In the event of any dispute about this, from the organization,how then is it going to we guaranteâ&#x201A;Źthat we will win and you will lose.)" This its internal conflicts? has a dis-inspiring and de-motivating effect. It also There are a number of negativealternatives.The underminesthe growth of rust, which is essentialfor most basicis chaosand disintegrationleading to orgaeffectivecommunications,

nizational death. Another is the rise of factions creating an informal intra-organizationalpower structure. Iftwo or more factionshaveapproximatelyequalpower, this could leadto internal power struggleand ultimately resulrin schisms, splirringrheorganizationinro rwo or more separateorganizations.Another alternativeis to return to coercivemethodsof solvingproblems.Avariant of this that might afflicr self-selectedvalue communities is the cult.

would be, first, collectivetransformationalpracticeand, second,heart-centereddiscourse.The first of theserequiresthat all participantsin the organizationbe collectively engagedin sometype ofdevelopmentaltechnique. This could be meditation, breathwork,inner voice dialogue,or any ofthe variousself-developmenttechniques availabletoday. As regardsheart-centereddiscourse,a key elementwould be what I am calling here "peer-topeer" communication, with no hierarchical distinctions berween peoplein the organization.People may be differentiated by functional role, they may be responsible for In a "self-selected administration,or for certaintasks, but they haveno higherstatusthan valuecommunity," any orher individual in the organization.

The positiveaJrernarive can be "collecrive called rhe personal growrh organizariona.l transformational" route. This would have a number ofattributes: it would be both liberaland radical.Liberalirr the senseof Mikhail Gorbachev's peoplechoosewho word Glasnost- open and transparent; opennessof information Instead of using coercion to they wish to work and debare wirhin rhe organizaresolveinternal conflicts, this new tion. This would clearlydifferenspeciesof organization would with basedon tiaterhisrypeofcommuniry from implemenrrhetechnologies of perboth a conventionalorganization sonal growth, which are now well sharedvalues, and a cult. Liberalwould alsoinestablishedin modern societies. cluderolerance and respectfor inS i g n i f i c a no t r g a n i z a r i o nosf r h i s which is closeto dividualinregriry.The radicaleletype are now emergingin the volm e nr , r o u s e G o r b a c h e v ' s sharedtrust. untary sector.It remainsto be seen Peres4oi ha - encompasses willa w h e t h e r t h e y c a n s u c c e e da s ingnessro changeborh ar rhe inorganizations which are predomidividualand organizarionallevels. n a n r l y e c o n o m i c i n p u r p o s eThis shouldbe underpinnedby a a notorious graveyardfor idealisfaith in progressthrough collectivestructural change. tic, non-coerciveforms. Theseelementstaken all together can createthe basis for collectivetransformation. This is not necessarilya new phenomenon: traditional religiouscenterssuch asashramsand monasteriesnurture this kind ofcollective consciousness.It can havetransformationaleffectsboth for individuals and for the collectivecommunity in which they pardcipate. A major differencefor the self-selected value community would be that this consciousness would be valueopen and not linked with any particular religiousrradition. Two essentialelementsin creating and maintaining this transformational collectiveconsciousness

Steu Mixett, Ph.D., is a Witing Lecrurerat PaxeridgeburyManagementCentre and an Extemal Examiner in Organizational Behauioarat Luton Uniueuitl. He bascontibuted ouer 180 articlesto moretban 50 dffirext internationaljoumah and is afull rnemberof the Cbar*red Institue of Mathaing, the Bit*h (& Earopean)AstociationofCommanicatorcin Business,and the Socien ofAutbors.

.PERSONRt

Your Life As a Business It doesn'timitate art, it's ,tot (t bed ofroses. Tbthe manager,life is - what else- a business. How prof.tabk is yours?

By Chung Po-Yang '!7hen

The co-founderand ChairmanEmeritusof DHL International Ltd. Hong Kong SAR is a self-proclaimed toist manager.It may appearthat Taoism and managementare at two opposite philosophicalpoles. But Po-Chungt humanist idealshave been effectivelyinname's corporaredinto the prominent package-delivery system,proving that lifet conceptscan be usedin doing good business.His three philosophiesbehind the "decentraliof DHL companycultureinclude success "strategic thinking at all managementlevels," zation," 'Asian family attiand the preservationof a positive mark ofa at the l8O-degree tude." Not one to stop "Can cycle,Chung posesthe next inevitablequestion: we use businesspracticesto better manageour lives, our happiand increase live them with morâ&#x201A;Ź purposeJ a new mentalmodel. To this he oroposes ness?"

ife can be looked at as a business:it has clients, products,and services.It has product quality standards;and it has profits and losses.

fail, they can declarebankruptry businesses -Vhile human beingscant literand start over again. "mental and emocan undertake ally start afresh,they rional reengineering"to ensurea high level of quality and self-esteem. service,happiness,

The Businessof Living Each of us is an operating entiry who has social contractsto provide serviceto all of the people with whom we comeinto contactand to receiveservicefrom them. From the moment of birth, when we first received servicefrom our mothers, the doctors and nurses,until the time we die and receiveservicefrom the gravediggers,we are in a constanttransacrionservice network with all of the people with whom we come rnto contacr. This requiresus to judge the successof our life in and failuresthat we have termsofthe servicesuccesses in our interactionswith others,our customer,and clients. We useour personalevaluationofthese interactions with orher people to derive our personalservice qualiry records.Our positiveor negativeevaluationof our servicequaliry direcrly affectsour senseofhappi-

'When ness,our peaceof mind, and ultimately our self-esa person starts to provide poor service,he teem. or she beginsto expectto receivepoor service.After a while, onceseeminglyinsignificantsewicequality losses When we view our livesas an operatingenriry. will mount up and wipe out any accumulatedcapital we will seethat many important aspectsof business on the emotional balancesheet.The end resultis emohave counterpartsin our personallives.A business! tional bankruptry and low self-esteem. customerscorrespondto our family, friends, and associates.Its corporateculture equalsour personalphi- Mental and Emotional Reengineering losophies.Its product or serviceequalsour professional or personal services. A To ger a new srart.you can companfs strategicplans cortakean inventory ofour livesand respondto our personalplans. throw out all service failurc records- all the mental baggage In a sewicebusiness, service that negativelyaffectsthe service quality performance record, you giveyour customers. Youcan In businessand profit and lossstatements,and then usea four-stepprocess. baiancesheetsreflect the state in life,thereis ofthe business.There aresimiTahea full inuentory of your lar recordsthat reflect the state positiue and negatiueemotions. a strong "service of one's life: quality 'Taking " records arereflectedin the aca completeinventory correlation complishments we are proud helpsput your abstractrhoughr "profit ' into words. Sometimes,the betweenthe of; and loss"canbe measured as a senseof happiness simpleact of writing down whar "balqualityof service and peaceof mind; and a hasalwaysbeenfleetingclarifies ance sheet" is comparable to the problem or may even make and the level.of onet level of self-esteem. ir go away.You may evennorice rhat your lisr ofsignificantnega'Our happiness.. profit and lossaccount tiveemotionsisa lor shorrerrhar, you imaginedir would be. Also, can be interpreted as the net sum of our accumulatedposiputting a handle on each event tive emotional scoresover our makesit easierto manage. negativeemotional scoresfor a The most important aspect given period of time. '*4rile a businessusesproduct qualiry corporatemora.le,and of making a personalinventory is honesry You must dollar profits to measureits success,a human being not try to deceiveyour live-in client. Kick yourselfonly "if usesaccomplishmentswhich he or she is proud of, once. Instead of saying, only I hadnt done that," "next peaceof mind, and the feelingsof contentment re- say, time I will do this." sulting from high self-esteemto measurehis or her level of fulfillment and happiness. Get id of negatiueemotions. This processallowed me to make decisionsthat Both in the businessworld and in the businessof living, I believethere is a strong correlation between effectively gave me the power to reengineer my mission in life and the will to realign my lifestyle the quality ofservice and the level ofhappiness. Ila = lzuelofpersonalquality the Ttrtl ofnrsonal happiness. to correspondwith my basicvalue system.

Today, managementis proactive and knowledgeable. Successfulcompanieshave a clear senseof purAfter taking an inventory and cleaningyour house pose and produce predictable results.Becausea clear of negativeemotions,the next stepis ro startwriting a vision and businessplan exists, the owner of a large businessplan. The rypical headingsof a businessplan corporation can redre or die without causingany macorrespondto headingsin a personalplan. For example: jor disruption ofoperations.The evolution ofthe busi"life "mission nessplan documentsa shift from reactivebusinessmangoal." statement"correspondsto agement to proacdvebusinessplanning characterized by clearlydefined businessgoalsand strategies.

Draw a blueprintfor a purposefulhfe.

Monitor and ensurehigh-qual'

One of the most important elementsrequiredto achievethe mission ofa businessis to â&#x201A;Źnsure high-quality serviceby installing a quality assuranceprocess. In addition to reviewingyour servicerecordon a daily basis,you cangain otherbenefitsfrom iournal writing. You will develop the h a b i t so f h a v i n g q u i e t r i m e f o r maticallyrhinkyourselfand syste through.And ing emorionalissues you will havea recordso you can in your positions moniror changes on issuesover time.

ln the past, peoplelived their lives like a mom and pop storethey made short-termplans and their important decisionswere mostly reactivel

Looking at the businessof life, I think itt possibleto establish a similar rationalefor taking the time to write a personalbusinessplan for living our lives. In the past, people lived their lives like a mom and pop storethey made only shon-term plans; and their important decisionswere mostly reactive.But changeis in the air. \4sit any bookstore and you will find shelvesfull of selfimprovement books. Given the circumstances,itt "\7ill reasonableto askourselves, we run our lives or will our lives run us?"Ifyou want to live a proactive and managedlife, it's not I too late to get started.

Who's In Charge of Your Life? Most businessesare built by owner-entrepreneurs.In the early stagesof their development,the way each businessis developedreflectsthe individual personality and philosophy of the owner-entrepreneur.We see this style "mom and pop" store or business. nowadaysin the

is afreelance Dinna Louise C. Dalno (dizzadalgeghgaqillpu, "Asian witer and editox Th aniclz is excerpted fom her boob, One hundredyearsago.this was alsothe way rhe BusinesstVidom:LessoxsfomtheRegioniBestaxd Bightest Basi' industrial companieswere managedin their infancies. nessLeaderi (Coplright 2000, John Wilel dt SonsAtia Pte. Ltd.). Reactionarysrylesof managementwere the rule of the Tbe boohfeanres insightfvl and informatiue atticbs fom 32 ui' day.'Vhile such companiesremainedsmall, all business sionaryAsian leadzr and is auailabb at Amamncom and Naplanning could be done and kept in the ownert head. tional Boohstore.

Researchon specificmanagementpracticesfrom someof the rcgion'sleadingacademicminds

Corporate Frnance: Manipulate the Timingof AssetSales? Do Managers areecowidelybelievedthatcorporaremanagers 1 r is nomically,morivatedto.chooseaccounringrechI nrquesano manage tnelr IlrmSearnlngsln a vaflery ofways wrlArn tAe overall Gamework o{ gener ly acceptedaccountingprinciples.However,they may a.lso achievea target level ofreported earningsthrough the timing of actual transactions,such as assetsales. E. Bartov,writing in Accounting Reuieu, argued,that managersattempt to manipulatereportedearnings through the timing of asset sales.This position is difficult to support becauseassetsaleshaveimportant economic,and not .justaccounting, motivations.lVe examine rwo common motivationsfor a connectionbetweenassetsalesand earnings manipulation: earnings smoothing and gearing. . The earningssmoothing literature proposesthat managershave incentivesto manageearningsto report a lower varianceearningsfigure. The proposition is that when currentearningsper share net ofassetsales(NEPS) is below (above)the previous ' NEPS, managerstime assetsalesto increase(decrease) the current earningsper share. The other proposition is that firms with highergearingratiosarelikely to time assetsalesto increaseequiry and thus improve their

ship betweenearningsfrom assetsalesand ANEPS, consistentwith the earningssmoothing motivations, but alsoconsistentwith non-accounting-relatedeconomic motr'vatrons. Thus, the results of thk study are parrially "misconsistentwith Bartov that managersattempt to represent"actual earningsthrough the timing of asset salesto achievean earnings-smoothing objective. However, on balance, the evidenceindicatâ&#x201A;Źsthat the process salesis decidedlymore of timing assets complicated than the earningssmoothing reasonalone would indicate.The empirical evidenceis more consistentwith the reasoningthat asset sales,which are real variables,are determined by economic and financial considerations,which arealsoreal variables. The resultsdo not indicare that managerstime assetsalesto avoid accounting-basedrestrictionsin debt covenants. The study indicatesthat managersate not likely to havebeenmotivated to make asset salesfor purposesof managing reported earnings. Rather,thesemanagersappearto havebeenmote concernedwith: (a) financing their firms' activitiesthrough regularinvestmentassetsales,and (b) sellingtheir fixed assetsirregularly as part of optimal assetsalesand rer placementprograms.

ratios. Ve studied 44 randomly chosencompanieslisted on the main board ofthe StockExchangeofSingapore from 1989to 1991.A keyvariableuseciin the empirical results is total income from assetsa.lesper share (ASPS),the sum of gains and lossesof all assetsales that are included in net income for the period. Specific resultsof interestof this Singaporestudy indicate that for firms with ANEPS <0, there is a negativerelation-

From apaper by Geoftey Poinas, Asociate Profesor Facul4t of BusinasAdministation, Simon FraserUniuersity; Ti'eaor tVilhins, AssociateProfessorDepartment of Fi' nanceand Accounting National UniuersityofSingapore; and YoheShang Kuan, Credit Oficer, Malayan Banking Berhad, Singapore.Thepaper was uritten uhik G. Poitras ui a Senior Fellou in the Department of Eco' nomics and Stathtics ltt the National Uniuersity of Singapore. .,<

Management Control :

Gontrolof Subsidiary Corporations Three-St-ep Investment control involvesdecisionson inu e t o t h e p a r t i c u l a r c h a r a c t e r i s t i c so f parent-subsidiarycorporations,the manage- yestment amount and shareof stock. Executives for manment controlorocessin suchcoroorationsis control involvesthosewho areresponsible an exclusiveissue,different from the control pro- agementcontrol in the subsidiary.A significant, although easily neglected,procedure here is the cessin normal corporations. designofthe contract betweenthe board and the managersof the subsidiary. A three-stepmodel prein sentssystematicperspective effective control of parentsubsidiarycorporations.

Step 2 is the executivestep in which the subsidiaryproceeds in its independenl'control processas it and the parent interact Step 1 is the preparation with eachother.A parent can efmajor step, including three fectively control the subsidiary procedurescontrolled by the through functional control. Exparent. These are strategy amples are controlling the key control, investment control, technology(like Coca-Coladoes and executivescontrol. Stratby controlling its formula), or egy control involves setting controlling the supply (asPhilips goals in a discussionamong doesby supplying more than 60 the executivesof the parent percentof the componentsused and the board of the subsidin its China factories),or controliary.The goa.lsof the subsidling the sales function (as iary shopld be coordinated with that of the parent.And since goalsare gener- Johnson & Johnson doesby selling all subsidiarally abstact, they must be translatedinto concrete ies'output in China). Thesecan be classifiedinto and operablestrategies. Step3 is the revisionstep,including threemathree types: (a) Profit-oriented: the parent invests jor (b) controlled by the parent correproiedures Function-oriin the subsidiaryonly for profit. entid: the parent investsin the subsidiaryto pro- sponding ro the three in Step 1, that is, strategy conmote the professiondcompetencyof a specificfunc- control, investmentcontrol. and execurives main(c) to expand, tional part that is important to thâ&#x201A;Ź parent. Scale- trol. The parentdecideswhether oriented: the parent investsin the subsidiaryto en- tain, or closethe subsidiary;whether to increase or decreasethe investment;or whether the manlarge its scale. I agersshould be changedor retainâ&#x201A;Źd. The two corporation, .ur, p"y -ore attention to this classificationsince it affectsthe whole control process.The profit-oriented strategyis inclined toward loose conrol, the scale-orientedstrategy Froma paper by Ge Chenand Xa Jinfa, Zhejiang and Busi' toward tight control, and the function-oriented [JniaersityChina, Collegeof Commerce ness Administration. strategyusescontrol somewherein the middle.

FromEndto Beginning Sincethe startof the year,peoplehavetalkedendlesslyof new beginnings.Yet as managementwriter William Bridges remindsus, we must always start at the end. We can't begin anythingwithout properlyendingthoseideas,behaviors,and mindsetsthat we needto leavebehind.

The Asian Manager Editor-in-Chiei Jet Magsaysay AssistantEditor: Kristine Domingo Art Director: Manny Espinola OperationsOfhcer: YvetteBautista-Evangelista Circulation Officer: Eden S. Cardenas

This issue'scontentsignalsquitea numberof endings.To celebratethem.we summarizethem here: Theendof theold economy.That'sthepre-digitaleconomy, theonewe all workedin until recently.The onethattheinternet haspushedinto our past.Dado Banatao'spiece,"What's UnderneathThoseDot-Coms."takesus beneaththe surfaceof the new economyand presentsus with a privileged perspective into how we needto recalibrateour thinking to thrive in it. The end of sexuali6,.In termsof how it has traditionally mappedthe Asian workplace,that is. Participatevirtually in the forum presidedby ProfessorsDenise Lopez and Junbo Borromeo,"Sexualityin theWorkplace,"andseehow youmight haveansweredtheir questions. Theendofnarrow skillsets.The Europeanmodelfor managing in a global economyhas been cited as being the most By describrelevantfor benchmarkingby Asianorganizations. ing the new makeupof the Europeangeneralmanager,Prof. Joe Faustinocould,indeed,be describingyou...or how you needto grow as a leader.Checkout his checklistand evaluate your development. Theendof AIM asyou haveknownlr ro be.That'sthe messageof theInstitute'snewlyelecteddean,Prof.EduardoMorat6. Chancesare,theAIM you know is just oneof the four, or five, or moreAIMs that havebeeninvented.or will be developedin the next two years. Thebeginningof real networking.With the comingof the net comesthe mechanismwe've all beenwaiting for that will provide wide, real-time networking.The alumni association nearestyou is working hardon this project.Be sureto connect with them and be countedas the alumni network clicks into place.

28 Prevision 30 Beyond the Box 32 AIM Update 34 Faculty Profiles I Prof. Purba Rao r Prof. Mel Salazar 40 Interview with Dean Eduardo A. Morat6, Jr.: The Five AIMs 44 A-List 2OOO/ The Decadet First Tiiple-A Winners: r Datuk Sarip r IlN. Singh 'Wenent r Pan r Emie Garilao 55 Class Distinctions: MBtrd'73 and Enhancing Class Networking 62 ClassNotes r FAIM GeneralAssembly r Homecoming 2000 r International Night r AIMI Father in the Streets r Individual Class Notes 73 Gadfly

Sincerely,

vv'zs =Jzy' / y4v-Var7frf / t / CoverArt CenderAdfacts AIM-ART

ldeas For the Up+o-Date Manager

(Financial Times/Prentice I' n previewing Management 21C Hall, 1999;,Tom Brown of ManagementGeneral(mgeneral.com) "someday we'll all manage could only agreewith the bookt premise: this way."The book'sauthor,Subir Chowdhury,the thirrysomething ExecutiveVice Presidentofthe American Supplier Institute, asked more than two dozen prominent managementthinkers to submrt their thoughts about the future (which, in our nanosecondculture, "right means now"). Glimpses from Chowdhury's tour of business and organizationsin the 21" Century include: I Leaderswill rely on tools such as imagination, vision,

TheABCsof 21CManagemont The future will still be filled with buzzwords, people will still be important, and managing them will stillbe a demanding profession.

mission, and dedication. I However, their strategiesdefinitely will be different: processwill be evermore important. "Peoplistic Communication" and will r They will employ "Next Mentaliry" - perhaps the two dominant require a strengthsof 2l C leaders. Chowdhury introduces a new measure of management ROT (Return onTalent), which measuresthe payback effectiveness: from investrnentin people. Yes,the future will still be filled with buzzwords,peoplewill still be important, and managing them will still be a demanding profession.

managers- indeed,anyonewho worls for a modern recently, Llntil .professional organizarion havebeenxked ro leavetheir emotionsat the door Throughout Asia, "It's just nothing to business, theresa sayingin the localdialectthat translates It's OK personal."These days,organizationsareencouragingthe oppositeperspective: to talk about emorionsat work. In fact,its more thar just OK: It'swhat we all need, talkingabout learninghow to manageour emotions.EversinceDaniel Goleman put)ished Emotional Intelllgence(Bantam, 1995) and wrote two articlesin Harvard "emotional intelligence"hasbecomea mantra,offeringknowledge BusinessReview, workersa way to cometo termswith their feelings- and to perform more effectively. At the Minneapolistraining facility of AmericanFxpress,all of the companysnew financialadviserstakean eight-hourcoursewherethey aretakenthrough a rangeof self-control,reframingand self-talk. topicsthat includesuchskillsasself-awareness, Aside from Goleman'swork, the interest in emotional intelligence, says&tst Companl, 'the ofwomen in the workplaceand the higher comesfrom increasingpresence comfort levelthey bring to the territory of emotions.And the arrivalofthe new economyhx madecompaniesrealizethat what they needfrom their workersgoes beyondhands,bodies,and eight-hourdays."Time will tell whetherthis is anotherfad or a firndamenmlorganizationalreality.Meanwhile, the evidencemounts. The U.S. "good" Air forcereporrsa 95 percentchanceofsuccessofa potentialcandidatewith a "excellent" wirh rhe highestEQ profile. The top five qualitiesthat wereassociated or self-awareness, and performingassociates wereasseftiveness, empathy,happiness, problemsolving.

HowAre YouFeeling Today? It's what we all need, talking about learninghow to manageour emotions.

V ,

I oure concernedabouchavingtoo much invenrorvin vour wareYourProducts, houses, or somewhere elsein the system.You'renot alone,of course. As Fresh Around the world rherearetrillionsofdollarsworrh ofproductssirring As Fruits idly in warehouses,or stucksomewherebetweenthe factoryand the

Around the world there are trillions of dollars worth of products sitting idly in warehouses.

consumer's hands.If theseproductswereall asperishable asfruits,this problemwould be a realstinker.This imageapparend,v lir up a light bulb in someonethead,or manv simultaneous light bulbsin manv peoplet heads.The resultis that the business world now hasnew modelsfor managingthe supplvchainso that productsaredeliveredro rhe cusromer asfresh as if thev were fruits picked from a rree. Or evenfresher,as in the caseof,,for example,Hewlett-PackardPCs. Upside(upside.com) quotesan H-P executivecomputingthe lossesofa "loses computersittingon a shelf. That PC about one percenrof its value everyweekbecause technologvis making it obsolete.\Jl/ithprofir margins of 10 percenrto 20 percenton PCs,that doesntleaveanybodymuch idle " timc. H-Pi solution:technologv.Here'sthe script:Computersrakeorders for computers,and thoseordersare processedby other computersthar use the internerand privatenetworksto communicatethe derailsto computers on the deskof everyoneinvolved in creatingand delivering the product. Factoryfloor compurersspit out, pick tickctsand assembly ordersfor techniciansto build rhe compurersthat are then tesredbv computerand shippedwith rrackingnumbersrhat can be followedto their destination by computer.This enablesa customerro placean orderonline for a custom-configured PC and seerhe deliverytruck coming to his or her home or office within a few davs

People'sGreatExpectations ofYourCompany The numbersarein. Peopledo not onlv hold governmenrs and public leadersresponsible for socieralconcerns- they hold companiesresponsible.This wasthe key finding of the Millennium Poll on SocialResponsibilirywhich askedmore rhan 25,000 peoplein 23 countriesro namethe facrorsthat most influence their impressions of individualcompanies. The majoriry relates Acrossthe Board, mentioned facrorsrelatedto the companies' socialresponsibilities; laborpractices,business ethics,responsibility to societyat large,or environmenralimpact. Only one in three mentioned characteristicsrelatedto businessfundamentals,such as financial factors,company size,businessstrateg,v, or management. Most of the respondentswho were interviewedwant companiesto "making go beyond the traditional businessrole of a profit, paying ta-xes, and providing employment in ways that obey all laws." In short, peopledont hope for companiesto becomesocially responsible. Thev exoecrthem t..

People don't hope for companies to become socially responsible. They expect them to. 29

thinhingand liuing Insights for boundaryless

Instructionsfor Life a Chinese-lizntra Thisis supposedly Totemthnt ahen passedon toJiiends will bring goodluck. Euenif they sense in at doni,youl/!nd rimeless leastone of the reminders.

i u . p e o p l em o r e t h a n rhey expectand do it cheerfully. Q "'t

I Marry a man/womanyou love to talk to. As you get older, their conversationalskills will be as important asany other.

o Spendsometime alone.

I SThen someone asks you a q u e s r i o ny o u d o n ' rw a n t r o a n s w e r . "Whv smileand ask, do you want to know?"

o O p e ny o u r a r m st o c h a n g eb. u r dont let go ofyour values.

o Rememberthat great love and involvegreatrisk. greatachievements

o Dont believeall you hear, spendall you have or sleepall you want.

o When you lose, don't lose the lesson.

a Never laugh at anyone's dreams.Peoplewho dont have dreamsdon't havemuch.

o Rememberthe three R's; Respect for self; Respecr for others; for all your actions. Responsibiliry

o Love deeplyand passionately. You might get hurt but it's the only way to live life completely.

o Talk slowly but think quickly.

o Dont let a little disputeinjure a greatfriendship.

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

o When you realizeyouve made a mistake, take immediate steps to correctit.

r Dont judge peopleby their relatives.

o S m i l ew h e np i c k i n gu p r h ep h o n e . The callerwill hear it in your voice.

o R e m e m b e rt h a t s i l e n c ei s sometimesthe bestanswer. o Shareyour knowledge.Ittaway to achieveimmortaliry o Be gentlewith the earth. I Never interrupt when you are being flattered. a O n c e a y e a r Jg o s o m e p l a c e you'venever been before, o l f y o u m a k ea l o t o f m o n e y .p u r i r r o u s eh e l p i n go t h e r sw h i l ey o u a r el i v i n g T . h a t i s w e a l r h sg r e a t e s t satisfaction. a Remembe r thatnot getringwhat you want is sometimesa strokeof luck.

Language of the NewEconomy youre still Sure,youbegot to walh the talk. In theNew EconomyGhat'sthedigital econornyin case Hot Wired wondeing), you haue to first know uhat the talh is. Here are somedefnitions from (uww.hotwired.com)to helpyou out.

Churn : Customer disloydry. Conuergence:The idea that the two most powerful devicesof the lare20th century (TV and PC) can be merged into a single seamless information system. (Oh, and throw in the telephone,too.)

Data rnining: Extracting knowledge from information. T h e c o m b i n a t i o n o f f a st computers, cheap storage, and better communication makes it easierby the day to teaseuseful information out of everything from supermarket buying patterns to credit histories. For clever marketers, that knowledge can be worth asmuch asthe stuft real miners dig from the ground.

Tiiple bonom line: Environmentalistshave come up with a set of earth-friendly business principles, often called the triple bottom line, which urges companies to be: , (1) sociallyresponsible, (2) environmentallysound, (3) economicallyviable.

' There are more where these D isintermediatioz; Cutting out the middleman, the shonest terms camefrom. Go to the web addressabove and, well, you distance between supply and demand.Theret a lot ofscopefor . know all aborr surfngby now I right? that on the net.

Hot Waysto GhillOut o Exerciseoutside.Outdoor settings generatepositive effects that indoor environments dont. Thatt why people with indoor exerciseequipment rarely use them.

ofthe NewEconomy, -Q peaking a\--'l) :lt gets i , IOf an Increase Dlameo

in stress- and that includesyours, in caseyou'vestartedto feelfatigue from the ringing tone of your "Youve Got mobile phone or the Mail" icon on your desktop. New researchsuggeststhat it's not those,nor having a TypeA personaliry that causesihe most sress thesedays.The main source:being in a middle managementposition, whereyou aremost likely to suffer the emotional strain of trying to a boss,a staff,and personal appease ambitions.

o Work out slowly.More is not better; slower is better.

Some tips for reducing stress: o Look out the window. Individuals who work near a window have23 percentfewerstress,.1"..,.t^,^hl.-.

ti(4rat all these amounr to is a prescription for moving up the ladder more quickly: Get a corner office with a window, and a job with time to play golf. But dont rake the game I too seriously.

ffiAIM

tam@dataserve.aim.edu.ph

De Ocampo Installed as AIM President Roberto F. de Ocampo was installed as President of the Asian Institute of Management in formal ceremoniesat the AIM ConferenceCenter'sSGV Hall last March 2. These featured excerptsfrom De Ocampot speechshow the range of issuesthat AIM faces,and the competencies it brings to the challenge. The Winds of Chanee "Looking back, we can declareproudly...AIM managed the winds ofchange and remained at the forefront of managementeducationin fuia How did we do it? By practicing what we preached:we stuck to our core comperenceof management education and adapted quickly to market changes." /\ Lrlsls or bovernance ft . ,.gron i, i*isis again - a crisisrhat is nor jusr financial in nature, but goesbeyond economic boundaries: a crisis of Governance.\X./harusea remarkable GNP growth amid a tidal wave of poverry?\X/hat use high per capita incomes when wealth is in the hands of only a few? 'What use rhe crearionof wealth' without expansion of opportuniry? What use globalization,

liberalization,and structural reformswhen saferynetsare inadequateto shieldeconomies and peoplesfrom lower incomes 'What use or unemployment? soundmonetaryand fiscalmeasuresif public moneyis wastedby mismanagement and corruption?"

The Essence of AIM "For growth and development to be realand effective,Asia needs strongpolitical and economic leaderswho will leadour societies with justice,honor, and with selflessdedication.And strong leadershipis basicallymanagement training and capacitybuilding, the of AIMt existence." very essence Srronserand Smarter Through Skills "AIM response ro everycrisis s hasbeento makeAsianbusiness

stronger and smarter to confront and surmount the crisis through massivehuman resourceeducation and skills raining. Some problems need solutions and not just money to be thrown at them."

The New Centurv "As we begin this new century we need to addressdirectly the acceleratingpace ofchange rn management practices,and in particular the profound impact of internet-related technology, which has posed some fundamental questionsabout the best methods for the delivery of graduate management education. Another challenge for AIM in the new era is what Peter Drucker 'challenge calls the of change leadership.'This requires that we 'accept the inevitabiliry of change, seeit as opportuniry and embrace it."'

AIM Named One of Asia's Top Schools AIM emerged among the rop three and, in one caregory No. I among Asia'sadvancedmanagement schoolssurveyed by Asiaweek,the Hong Kong-based news magazine. In its first-ever ranking of Asia'sschools offering master of businessadministration (MBA) courses,Asiaweek rated AIM, along with Indian Institute of Management at Ahmedabad, Singapore'sNUS, and the Melbourne BusinessSchool, as one ofthe few schoolswith gradesin the four-point range. AIM was ranked No. I in the executiveeducation category, "the for havine best executiveMBA."

A Knowledse Center of Asia "Through our trained managers,we will respond directly to Asiat needs- to help make the poor un-poor, ro encoufage secondary cities to grow as hubs ofdevelopment anew, to create profitable enterpriseswith a sense of social responsibiliry \7e will make AIM a leading Knowledge Center ofAsia where there is a convergenceof people with diverse cultures and beliefs, but with a common aspiration: to succeedand thrive in a competitive world that mandates us to move management and leadership to higher levelsofexcellence."

AIM-World Bank Institute to Deliver Development Training In the World Bank 1999 meeting, PresidentJamesD. 'Wolfensonstresses the needfor capacirybuilding asintegralto 'Io its developmentstrategy. answerthis need,Vinod Thomas, Vice Presidentof the World Bank Institute, and RobertoF. De Ocampo,AIM President,signeda memorandumof understanding on February26 to collaboratein developingand delivering corecourses,distancelearningcourses,and associated activities. "This

strengthensAIMI position of leadershipin development management education,especia.lly in developinggovernance for an emergingknowledgeeconomy,"saysDe Ocampo.

PurbaRao

Gree4lngAsian Managers

t :

Dr Rao s passionfor tuo disciplines helps to ensure that./utureMBM graduatesv,ill be as obsessedwith the envirutnmental top line rs rheyare v'ith the./inancial bottom line.

l -

here are two recurring four-syllable words throughouthalf an hour of Profl PurbaRao'stime, "environmental" "quantitative." and and they are They sum up her current preoccupations,including her latestbook on managementand her teachingcareerat the Institute,-both of which revealher natural (if not supcrnatural)abiliry to communicatethe languageof quantitative managementin everydayspeak.

fowardsA GreenMi/lennium is her most current contriburionto managementin the written word. lt focuseson environmenrnanagement systemsin South EastAsia, as exploredin two extensive suryeysconductedin the area. ln the Philippines, for instance, thereis a program recentlvformed to gencrateideason how to mlnlmlze

waste, clI-

c u m v e n tp o l l u t i o n , a n d increase productivity. B a n k s h a v ea l s o s t a r t e d s c r u t i ni z i n g p o t e nt i a l loaners'recordsunderthe e n y i r on m e nt a l m i c r o s c o p e . ' f h el n d o n e s i a n governmcnthasa new rating svstemfor hctory pollution. Malaysia'smajor j o i n t v e n t u r e sa r e n o w consistentlyin accordance wirh theVision2020policies.ThailandsNGO sector cooperateswith the Bovernmentin the organizationofvarioussanitation projects.

The book discovers

"Sustainable additional electivecalled Enter"greening prise."As part of the Asian managers,"shealsoplansto trv ro includethe EnvironmentalImpact Asscssment in somc of rhe requiredmanagementreportsof srudcnrs.Asia's futurc decision-makers who cometo AIM, she 'would hopes, thusbe well-equippedto implem e n rg r e e n i n ign i r i r r i v ei' n r h e i rf r r r u r er e s p e c tive companies."

To make your world a great place,you always have to look beyond yourself.. .think of the greeneryaround you... do something constructiveto keep t h e ms u s t a i n a b l e . . . think of materialism

She hopes the MBM 2000 graduares will shareher optimism: "Our w o r l d i s r e a l l ya wonderful place,if you make and keep it that way. To make your world a greatplace,vou alwayshave to look beyond vourself.. . think of t h e g r e e n e r va r ou n d ) . o u . . .d o s o m e t h i n g c o n s t r u c t i v et o k e e p t h e m su st a i n a b l e... think of materialismall around you, and make an effort to rise above It.

that companieshave beS h e c o n f e s s e st o all around you, and make gun working toward h a v i n g c o n s i d e r e dt h e "greener growing pasmaterialistwav of life in an effort to rise above it. tures"in placeofconcenher vouth. Although she trating on economic was raisedin a family of achievements. Their new excellent teachers,she m a r k e t - d r i v e np o l i c i e s initiallv entertainedthe prove there'sno needfor governmenrs ro motithought of banking.However,after acquiring vatccompaniesto becomeenyironmentallv cona full scholarshipin a managementdoctoralpros c i o u s .A n o t h e r d i s c o v e r vi s t h e s u c c e s so f gram of the Indian Institute of Management ISO 14001-certified (CalcuttaiMIT), shelound herselfengagedin companies ar becomingmore competitivewhile remainingcommittedto enviv a r i o u sp o s i t i o n s ,a m o n g t h e m r e a c h i n ga t ronmentalsustainability. JawaharlalNehru Universiw.For sometime, she u o r k e df o r B H E L . a p o w e rg e n e r a r i oenq u i p Dr. Rao is asenthusiastic abourher book as ment manufacturer,then for the Ministrv of sheiswith regardto plansfor rheresrofthe school Railwaysin India where,assheproudlyrecalls, year.These include integratingenvironmental shecontribdtedto high-techrailwayoperarion educationin the MBM curriculum rhrough an technlques.

Then, in the midst of professionalbreakthroughs,shefound herselfgvingthe knot.

Her book cover,meanwhile,displaysa vibrant l e a ft h a tm a r c h etth eu i r i di a no f h e rm i r r o r - s t r e w n dress.It's easyto regrethavingto spendthe last minutes with what has beenyur greatesttccom' plishment("It's reaching,"shereplies),particularly oflndian classian appreciation when shereveals her trips ro New to relate cal music and starts Zealandand China.

quantitativebrilliance Her tried-and-tested had to be utilizedhowevel bevondthe purl stitch countsof doily knitting. When her husbandcame to the Philippinesfor Asian DevelopmentBank work, shefound her way into the classroomagain, this time asa visiting professorin the CollegeofScie n c e a n d t h e G r a d u at e S c h o o l o f B u s i n e s sa n d I try to impart to my Economics at DLSU. it was at AIM that Then, studentsthe knowledge her srayturned from fluke incidentto fate.

the time Neverrheless, is extendedwitb what do Jou try to impaft tolour studenxl "I

trv to impart to my srudentsthe knowledgethat that numbers can really numberscan reallvhelp in "Being decision-making.I alsotry the traditional i n d e c i s i o n m a k i n g . h e l p to removefrom their minds Asian wife, I followed my t h e f e a r o f n u m b er s . husband.He was initially I also try to remove Numbers can be very the reasonI camehere,bur inreresting.They just have I've stayed in AIM since from their minds the to be presentedin termsof becauseI love it here.This their application. The is the bestjob I've had. I enfear of numbers. devotion to pure numbers jov ir because the students can be a very lonely vocaare absolutelybrllliant. In Numberscan be very t i o n . S h a r ei t r v i t h t h e the previous schools I've thosewho world, especiallv been,I would delivera lecinteresting.They just could really use it for ture and seesomestudents productiveends.Numbers presented in have to be were yawning. Here, the are very usefirl tools. You studentshaveto participate of their application. haveto figureits rolein sales terms so it! the bestclassrooma or advertising.Only then professorcould ever have. would the studentsseethe I learnedro be a professor poinr. You have to show in a multiculturalsetting.I rhemhow the numberscan my alsolike it herebecause just appropriatebut rational be usedin making not bestfriends arealsomy colleagues.I feel totally at This is what I've tried to do, and tenabledecisions. home here,perhapsevenmore so than I would I can make and I think I've becomesuccessful. backin India. I seemvselfretiringhere." people seenumbers for what they reallv are True enough,no soonerdoesshementionher "Good!" friendsthan one ofthem givesher a call. "That's very nice. Thank goodness she exclaims. happening." One can'thelp but asfinally thats sumethis is the kind of positiveenergythat emanatesfrom her, and has made her a favored prolessorin the Institute.

simple. professor? Thati what makesyou a uerl eJfectiue "Sometimes, I hope." - Kristine Domingo

Mel Salazar

Changeand Continuiry

Managementis an idea, wrapped in continuity,deliveredamid changeand, if you've beenlucky, taught by one of AIM's pillars.

tevie Smith is the Emily Dicl<insonof 1930ssuburban London. Sheis also known for her quirky minor "God poetry.In an imaginaryexchangetitled and the

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

Mel Salazarnames her alone with a number of canonical figures in poetry from Y."t, ".rJ Arrden to Lowell and Siwell who have been taking up a considerablevolume of shelf space both at home and at work. \i7hat prompts him to include her may be attributed to a quirkiness of his own, for he gives a "The idea is like a seed rather standarddefinition of poetry: wrapped in emotion. Poetry, a form of communication, is an abiliry to transfer the idea."

He'sseenhou'it changedthe managers iob and' It's not difficult to form an assumptionas to "'fhe managers. way of training old ofrhree decades, rvith it, the course why he haschosen,in the to specializein personnel management, buslness managingjob haschangedcompleteh'.For instancc, behav- in rhe beginning,AIM's aim was to make middle ethics,human behaviorin organizations, out ofstudents.If his field rvasadvertisior modification,laborrelations,the management managers of change,businesspolio., strategvformularion ing, we rrained him, and he becameadvertising manager.Vith the onsetof l'I, middle managers and, currentll',generalmanagement- all ofwhich "sofi'skills. Then in anotherinIt doesnot point aswe knew them disappeared. couldbe renderedas job toward a disinterestin statisticsand financial stance,a certainrranslator's wasto translatethe employeesHe's management(both of the quantitativeorientation)' superiors'ordersto lorver-ranking the translation gone because but to his preoccupation "transfer job is finished.Ant'onecan of the with the simplv rype iuto the comidea." puter,eliminatingthe need for someone to translatc. I n d e e d ,c o m m u n i c a was a Management along The job disappeared tion can easily be interclear-cut with the differcnt his preted as the thread of simplebusiness in the market.It's segments careerin consulting,teachsodifficult nowadalsto preing, and managing.The whenindustryand dict where one student is t h e m a t i c c h a l l e n g e ,h e going." commerceweresimple. sighs,is in evolvingwith developthe unpredicrable Backthen therewere Though he prefersnot in communication, ments ro drvellon it, he himselfhas and thus, management. industries, clear-cut part of beena distinguished And his CV shows he /al at practice, management the seena greatdeal of conticustomers, demands, leastherein Asia,from the n u i t y a n d c h a n g et h a t babyboomergenerationto would accountfor the sigh national boundaries... - he's spent mote than the wired. As a lounding father of AIM, lor instance, twenty yearswith Funche can easily recount the Inc.,almost tionalServices Institute'sfi rst steps. thirty yearswith Caltex in Indonesia,and the pastthirtv yearswith theAsian "When we started,it wasverynarrow,veryPaInstituteof Management. rochial.It was simply an interestin trving to de"Management relatively simple velop a good MBM program.Gradually,oPportuto be a used businessbecauseindustrv and commercewerealso nities came up.'We startedteachingsegmentsof programs.MBM gavebinh verv simple.There werevery clear-cutindustries, the MBM asexecutive demandsof the market.Customerscould easily to ExecutiveEducationcourseslike MDP and BMP be classifiedand the market, understood.There Then we finallybranchedout into MM thatslighdv The prod- widenedour marketto includethosewith an adwerevery strongnationalbo.undaries. andcorporations uctswererelativelysimple.The n customersbecame vancedlevelof MBM experience, their managto develop who wanted much more sophisticated.lndustrv boundariesand we partnered nationalboundariesbeganto blur. Productlines ers. It was the logical thing to include seniors. began W h e n e v e trh q l s w e r ep r o g r a mo P p o r r u n l l i q rw. e beganto grow. Technologicaldiscoveries breakingthrough almost all the boundariesyou eventuallydevel6pedthe equipmentfor such." could think of."

From there, Prof. Salazarleansback, his hands associations.$7hereregret or indifferencemay offorn.ringa cathedralarc in contemplatingthe rela- ten takeroot in long-termsituations,he sighsonly tionship betweenchangeand continuitv.First, he asgrandfathers can- with conrentment. "M" "What debunksthe theorythat the in AIM hasbeen I'm gladabout is that my relarionships "functional" swungto a more direction,rhatirsgen- havealwaysbeenvery long. I'm proud of all those eralistnaturehasbecomewallpape r.1'heMBM, for vears.This is perhapsbecause when you get into you e x a m p l ei., '' r i l l m o ' r l yg e n e r a l i r r . something,you learn, contribute,and themore vou do so, the more you appreciateyour work. You "continuity" He himself belongsmore to the learn lrom your mistakes,so you stay." class,having stayedsince he acquired an MBA in Harvard, 1969. His manT h i s c o n t e n t m e n th a s ner of teaching has pronot given in to complacency, g r e s s e da l o n g w i t h t h e however,particularlvbecause terms. For the fresh ofthe Asianeconomiccrisis. Harvard grad, he mostly More than anvthing, it has goodthing One zeroedin on the caseissues, shown him just how much "The underlinedorder. excontinuiry is intrinsically aboutthe crisis perienceinstructedme not I i n k e dw i t h c h a n g e a , nd it onlv on the MBA program, has helped him accept his is that it brought but alsoon how to be a facown mortaliry in termsof his ulry memberof a graduate career.One good thing about to the surface businessprogram.One of the crisis,he notes,is that it the coursesI started,the manyof the region's brought to the surlacemany e q u i v a l e n to f m y t h e s i s , of the region'sfaults, so thar faults,so the world w a s m a n a g e m en t o f the world hasbecomestricter change.This generatedour in Asian dealings.He casuhas becomestricterin own innovations. Now ally mentions he will certhere'svery little Harvard tainly not be around to see Asian dealings. content."His teachingmathe completetransformation "a terial acquired texture as of Asiainto modernworld studentsbecamemore parwith modern values."As for ticipative, and his own acAIM's contriburion to this complishments(e.g. from personnelmanagcrto future transformarion,he advisesit should reallv presidentof DRB Marketing Corporation)piled up. ask itself *'here ir wanrs to make a differenceand what that differencewould consistof. Otherwise,his basicrequirementof his students 'I'here hasstayedessentiallythe same:the studli and thus, isnt a traceofregret in acceptinghis even"The the understanding of theorv. objectiveis for tual turnoverof responsibilities, though he admits the studentsto eventuallyapply the theorv.For now, he still derivespleasure from the challengeof readu n d e r s t a n d i n gi s c r u c i a l . . p a r t i c u l a r l yw h e n i r ing new material,gatheringnew ideasfrom stu"There's comesto strategyformulation,sincethis involvesa dents. still the challengeof communicavery detailed set of activities.They really have to tion translatingsomethingfrom your mind to studyir, let it revolvein the mind, find examplesto the minds ofothers, hopefullv ascompletelvasyou be ableto understandit." can,"he says,his handsparted.Somchow,with the sinceriryof the deeplinesof his palmsexposed,it "The " realworld" to Salazar hasbeenan endur- seemshe has'just uttered a verseinsteadWe're ing relationshipbetweentheorvand application,in ltere to point a mora/ and adorn a tale." the sameway he hassustainedhis lastingbusiness - Kristine Domingo l

AIM'sNewDean Talks About the Five AIMs ewly electedDean Eduardo A. Morat6, "lifer,"having AIM Jr. is a self-described graduatedfrom the Institutein 1972(MBM, High Distinction), being a member of the faculry for much of the period since then, and planning to lead the Institute to even greater heights. There is one point of significant difference between his perspectiveand those ofmany other lifers', or those of alumni who have become familiar with whatAIM standsfor The new Deant version ofAIM is not the AIM that most people know. The latter is just the "first AIM," ashe calls it. It's time to become familiar .with the four or five (or more) AIMs that are as important or will become so, if Pro[ Morat6's plans are carried out in his two-year term.

'The majority of alumni lotow of AIM as one oJ the region s leading businessschools. That's just o4e of its identities,and before'bisterm is ove4 the new Dean wants to seethefourth or fifth AIM in place.

4tl

Morat6 is redefining the identiry (or identities) of the Institute using the managementdiscipline that he most recently championed: entrepreneurship.He has the entrepreneurt love for the product/service, nose for market opportunities, and boundless optimism regarding the possibilities. His multi-faceted background also helps (or is responsiblefor crystallizing) his vision of severalAIMs. He hasheadedvarious government,non-government, international, and businessorganizationsin the last three decades.From 'the highlight June t he is set to enter what he calls of my life," serving asDean ofAIM. The Asian Manager ralked to Morat6 just a few days before that, about his grand vision for the Instirure.

Thesearehomegrowncourses,developedhereatAIM, not copied from any other school. They were researchedhere in Asia, developedhere,designedhere, Moratd: In mv platform I srressed academicexcel- and offeredhere- basedon a very closerelationship capiralof AIM. This with the market. So you can seethat thesearethe ones lenceand buildingthe inrellectual position is brought about by the lact that over the last robustly moving up. 30 yearsor so, we have really changedthe Institute's In fact. with the second AIM we are now rnro character AIM started as a businessschool.That was Vietnam and China. \Weare going (and is) the first AIM. Then we cret o B h u t a ni n J u n e .C D M i , 'g o i n g ated the Center for Development to be all over the place. And rhey Management (CDM) and offered areinterestedin the Masterin Enthe courseMaster in Development We have t r e p r e n e u r s h i pi n Si n g a po r e . M a n a g e m e n t( M D M ) i n 1 9 8 9 . I homegrowncourses and soareInMalaysiatinteresred, spearheaded that under former Dean donesia,Thailand,and India. GasryOrtigas.That becamethe secTAM: Congratulations on being elected Dean. Could you describeyour plans for the Institute?

ond AIM.

developedhere i n A l M ,n o t

In the mid-1990swe startedrcsearching rship. locusing entrepreneu on small-and- medium scaleenrerprises.\We created a draft plan for what is now the AsianCenter for Entrepreneurship(ACE), offering a Master in Entrepeneurship (ME) progrrm. I askedrhe faculryfor four yearsof research.We developedour own casesand methods.It's a completelynew approach.Lastvearthere was excessdemand; we had to open This yearthe demand threesections. is so overwhelmingwe might open sevensections.ACE is the third AIM.

copied from any

TAM: Let's revisit the first AIM. \i,(/hatare the plans for the businessschool?

other school. They

My idea is to differentiarerhe Master in BusinessManagement (MBM) from all the other MBA developed, programs.The MBM has to be designed, state-of-the-artin rhe functional areaswhere our graduatesfind the and offered right greatestemplovment.Someyears here in Asia, based backwe.,rarredofferinga major in Finance.We increased the number on a very close of electivesfrom 5 to 20. When I relationshipwith - . m a d e a s t u d y o f w h e r e M B M graduateslanded after graduatton, the market. I learnedthat 46 percentendedup in financialinsritutionsand 14 perTAM: Yet most people still "business jobs.That in finance-related cent school." equateAIM with wasm1'justificationfor proposinga major in Finance. will this change? Thatt what the market demanded.You must be senMorat6: The last two AIMs are the onesthat are sitive and responsiveto the market. We might add now criricallyirnportant.The first AIM (the business majorsin Marketing,Operations,and Organization school)is the one that facesstiff competition from Development.The MBM will still be a generalmanschoolsaround the regionand American and European agementcourserbut it will be integratedwith deeper schoolsthat are opening branchesin Asia. However, functionalexpertiseand a greateramount of action nobody can rouch the markets servedbv CDM and learning.And we haveto be competitiveprice- and ACE becausewe are aheadin research,design,and time-wise.Therearea lot of full-timeMBA programs coursedevelopmentand oflerings.MEt innovativede- rhat run for just one year,and therearea lor ofpartprograms. s i g n .n o b o d yr e a l l yh a sr h a rf o r e x i s t i n g e n r r e p r e n e u 1 5time .

were researched,

TAM: How about the Master in Management (MM) program?

ing with empoweredstudents,teachingout of the box. That'swhat I call the fourth AIM. And there'sa cducafifth one:the useoftechnologyfor management ti/e've team, Development Nerv Products a created tion. which will be the R&D unit of AlM. Partof its brief is to developnew products by discoveringdifferent ways to tap technologyfor cvberlearning.I hopethat bv the end of the second1'ear'AIM will be in a positionto be strongin this area.

Morat6: The MM will be olfered as a courseon The strongestmodulesshouldbe on leadleadership. ership,corporaregovernance,goalsetting,strategizing, managebuilding,and cross-functional organizational ment J'heMM is the groominggroundfor an elevated position.It is alsofor manleadership a g e r .l o o k i n gl o r a c h a n g ei n c a r e e r . looking for self-developmentand selfDeveloping renewal.They want to be able to expressthemselvesin a fuller way. I new cases is think the MM will be an excitingpronice, but that's gram,peoplewill clearlyseethat this is not an ordinaryMBA program.It's just for a selFmasteryprocess.It providesthe maintenance. CEO's perspective. T)4M:Yhat do you envision for the ExecutiveEducation programs? Corporationsaremoving toward c u s t o m i z e dc o n t i n u i n g e d u c a t t o n programs.(lur ExecutiveEducatton coursesand ExecutiveMBA (EMBA) programsmust redefinetheir roles and becomepartnersin organizatton building.That'sone trend.The second trend is toward shortercourses and more specificskills.We will offer more one-, two-, three-dayseminars on specialropics.Wewill featureAIM gurusand tap their expertisein specific fields.

lf you want somethingto bring you to great heights, you have to have a grand

TAM: Are there even more AIMs after those five? Moratd: AIM can exploremarkers with high potential, such as banking and finance,micro-entreenpublicgovernance, preneurship, technolvironmentalmanagement, As and others, management, ogY long as we remain within the field of managcment,thesenew initiatives can be exhilarating. TAM: lt's an ambitious undertaking, bringing the five or more AIMs to the forefront in two short years.

plan for research.

Moratd: I think it can be done. I wasableto launchsomeinitiatives And you must by my lonesomeself. Whv can't a be innovative. wholeinstitutelaunchits fiveinitrativestogerher?So I think it can be done.It canlaunchthesefiveinitratives together.I can seehow cyber learningcan be tried out in differentinstitutions.We TAM: Movingon to teaching methods: the In- can also try out environmental managementPrograms stitute has been largely built on the casemethod. But togetherwith other schoolsin Asia. In other words, we can rry to make AIM the center for all these things. it wont be known for just that anymore? Thatt the excitingpart for me. Moratd: AIM shouldexperimentwith new learnTAM: Yoive also said that you ll take an active ing technologiesthat engagesrudentsmore intensely. \Weshould innovate and go beyond AIM s traditional lead in research'Could you elaborate? caseroomwalls.My dream is for Asian management ro masternew methods Morat<i:All thesemajor initiativesrequirea drive schoolsro sendtheir reachers and intellectualcapital.Research oflearning: tacriclearning,participativelearning,learn- for academicexcellence

will focus on its impact on these- not so much the profit bottom line, but the academicupper line. I look at the academictop line. The way Ive operated in CDM and ACE, if I focus on the academictop line, the bottom line follows. TtL-ful:How did you carry out that top line focus? Morat6: With CDM and ACE, I did yearsof researchbefore I launched theseacademicfinds. Usually, my timetable is three years.I do intensiveR&D - market research,academicresearch,program design, a lot of creativethinking, brainstorming. I put my heart and soul and life into it, and then wham! It's more than just developing new cases.That's nice, but thatt just for maintenance.Ifyou want something to bring you to greatheights,you haveto havea grand plan for research.And you must be innovative. From the stan I said I would not copy ideasfrom anybody. Ifyou do, thatt being responsiveto the course ofscience and academics.We'd know nothins about the market.

Alumni:

"Participate

in the Life of AIM"

The new Dean seesa definite place for alumni in helping to raisethe academicexcellenceof the Institute, thereby enriching their own pursuit ofexcellence. "You

will find a new,excitingAlM. You'll want to come back for coursesthar are new and relevant.AIM will have much to offer alumni to help them becomewhole-brained leaders.lVe will build new experiencesfor you, and we hope you'll come. "I

invite you to continue your lifelong learning in the Institute. You may alsosit in the programswe aredevelopingand conducting. MBM graduares,for example,may want to sit in MBM classes, to join as students and help to audit theseclasses. "You

For ACE, I did caseson public entrepreneurs, talked to them, did workshops for them, and found out what they needed.I did corporate planning for ind4stry associations,for chambersof commerce. I really immersed myself in entrepreneurshipat different levels.

For CDM, I did not go to the developmentmanagementstudiesin London or evenin Asia. I talked to headsof civil society and gov€rnment bureaucrats.I immersedmyselfin the boondocksofSouth Cotobato and Cordillera in the Philippinesto find our what the NGOs were doing, what the church groups were doing, and what developmentis from their point ofview. It's a matter of geting involved with the whole market milieu, imbibing all of it, finding out what people need,and then designinga whole program for them. TAM: Does the bottom line follow the top line because the academic top line always has to be responsiY€to the market?

will discover that, with our new thrusts,AIM has much to offer you."

Moratrj: And in a big way. It must be in a big way. \7e'relooking for what arethe major marketsthat people havebeenmissing.CDM wasone of that. Nobody was looking into that. There weredevelopmentstudies,but no programfor developmentmanagement.Asiat known for entrepreneurship;it wasright thereunder our noses and nobody elsesawit. We haveto be responsiveto the market in a big bang sort of way. It cannot be a small nppr€. TAM: So no to niche marketing? Moratd: Niching is for thosewho want to hide in the cracks,who dont want to be noriced. I want ro be noticed. AIM has to be noticed. t

/tut2000:

TheNewArlan Managcru he four winners of this yeart niple-A

Awards collectively personi$' the new t'?e of Asian managerthat will lead the region's next resurgence.There are only nine more to go before the list of Alumni Achievement awardeesreacha hundred. The magic number is not neededfor symbolism,however. Year2000'sAJist alreadysymbolizesa momentousstep in the evolution of the fuian manager: the socially aware servantleader. Federationof AIM Alumni Associarions (FAIM) founder JoseMa. J. Fernandez(MBM 1973) set the tone by saying that the Tiiple-A awards is a firrther incentive for the alumni and "conscious Institute to be of their socially relevant role in the uplift of the many in Asia who remain marginalized and who have yet to savor the sweettasteofvictory in the larger war against

Penury." The Tiiple-A has always stood for the goal of excellencetl-rateach member of the alumni aspiresfor. Since 1978, FAIM has honored graduateswho haveexhibited outstanding work. Filipino artist FrancoPatriarcafirst conceivedof the Tliple A concept,where the first letter of the English alphabetstandsfor Asian,A.lpha,aswell x the hnoun constanrinmath, the highestmark a student can attain. "a

The threeAs further denote visual interplay that echoesthe coming together into the union; graphically expressingthe harmonious characteristicof that bond. The fusion of the letters(or the figures)evolvesinto a singular,yet individually autonomous new form - a delta (literally'the door") which meansthe mouth of a river or a point ofentry a beginning." This yeart fab four include Datuk Saripbin Hamid (MBM 1979), DlP.N. Singh (MM

1975),Dr. WenentPan (TMP 1988),and Ernesto Garilao (MM 1982). \i7hat did it take to best the best and the brightest ofAsia? Usually, it takesthe hallmark of a career,a substantivecontribution to the growth of management. Increasingly,candidates have won for contributing to the improvement of advocating empowerindigenousentrepreneurship, ment and sustainabledevelopment,excellingin personalendeavors,and aiding in the uplift of the less privilegedmembersofsociety.Together,2000t winnerscompletethis trend. Sariphasthe establishment ofa semiconductorplant to his name,one that paved the way for employment by the thousand,and foreign exchange increase in Malaysia. Dr. Singh has his articlesand books on management,his unparalleled HRD accomplishments.There'sDr. Pan'sremarkable transformations and innovations in Taiwant most prominent peroleum company. Then, thire are ofcourse Prof. Garilaot significant reforms in the Philippine goyernment through his inroduction ofhighly effectiveagrarianpolicies,his successat generatingfunds for the poor sector. In hearing first-hand how they managed to accomplish as much as they have, and how AIM made a difference in their lives, The Asian Manager filesSarip revisiting his hometown, Singh discussing his' mismanagement series, Pan responding to the threats of competition, and Garilao expounding on government work ryith â&#x201A;Ź+ experientij depth.

DatukSarip

An A-studentof Life

Datuk Sarip applied the lessonsfrom others'successin his ov)n career.Now we're ready to apply lessonsfrom him.

atuk Sarip has been called one of the region's most successfulentrepreneurs.Yet he didnt think hed be startins his own business,Iet alone become a celebratedentrepreneur,when he startedworking. Indeed, his profile looked like he was far from becoming that. He was a teacher,then a professionalmanagerin a bank, and looked set to sPend his enrirecareerin a stableseniormanagement Position until retirement.Fate had a different plan for Datuk Sarip. Or perhapshe realizedhe had another plan, and gradually,painstakinglybuilt his dream.His or ofhighstory is not one of blazing,quick success, profile wheelingand dealing.

Rather,itt a carefullymeasuredpath, one stepas well-studied and well-taken as the next one. It's no surprise,therefore,that Datuk Saripanchorshis principles of entrepreneurialmanagementon sound personal values,which are a product of both his poor background and his keen study ofwhat makesentrepreneurssucceed.The.*ian Manager talked to him about theseprinciples, in the context ofhis inspiring career. How have your goals changed now that you have maintained a level of successfor some time? The main goal is stabiliry and to have ample time to do important things. A-ftera while, just making money and more money loosesits significance. That's why, for those who want to go into business,I alwaysad"You must stan bevice them, fore the ageof 35." If you do it earlier,you may not be mature enough. Ifyou do it much later, you won't have time to reap the fruits of your labor. Also, when you reach the top, you cant afford to make too many mistakes. If you make the wrong investment, you dont havemuch time to recoverrt.

the best placesto gain exposure.I was hired in the loans department, and learned a lot about different businesses. And what were the most important things you leamed? I studied our clients to understandwhy they succeededin business,or why they failed. I learnedthat the most important thing is having the right attitude - not being sman, but being determined. A lot of the businesspeopleI studied became successfulnot becauseof their mental capacity,but becauseof their attitude and determination.

I learned that the most importantthing in businessis havingthe right attitudenot beingsmart, but being determined.

Your career story has so many twiits and turns. You've been e teacher,a banker, an auto parts maker, and now a semiconductor rnaker. Whatt the common thread? 'You

have to understand my background. I was born to a poor family, the eldestoften children. I got a good result in high school,but I was too poor to go to the university.So I becamea teacherin our village, to make both endsmeet. Life was difiicult, but there can be surprises.I was offereda scholarshipand studied for an economicsdegree.I wasteachingfor awhile, but decidedthat this was not the careerfor me. So I went into banking. To me, banking is one of

L 46

Factor number two is good relationships. Successis not so much basedon one person'sabilities, but on how well he manages his relationships.You needdifferent people, with different strengths,to succeed. Number three, I think the most important thing in business is honesty.Somebusinesspeople work hard at manipulating the stock market, or similar dishonest activities. The moment you cheat,peoplewill not believeyou or your businessanymore. But despite learning a lot from being a banker, you left banking. Why?

To gain a broader perspective,I studied for an MBM degreeat AIM. 'fi4ren I came back, the bank They would post me in wanted to post me overseas. London as an officer.with a view to promoting me when I got back. But the styleofwork neededdid not suit me - the constant socializing,and wining and dining clients that were neededfor the job were not that I wanted to make manufacfor me. I alsorea.lized turing as the areaof my interest. Plus, my masters had given me the perspective of always thinking like the CEO of a company. $Thether we were

\ t,

The auto industry has slowed down in the last year. studying finance,or marketing, or organizations,we alwayshad to integratethesefunctions and think and How do you cope with that? solveproblemslike a CEO. I alsobecamemuch more In businessyou alwayshave to be sensitiveto the analyticalbecauseofwhat I learnedin management school.I wasalwaysthinking about what are the im- environment. Vith the downturn in the industry and some uncertainry in our main clients, we decided we portant issuesin a business. were at a disadvantage.\W'eanallzed our company's So, becauseofthis changein perspective,I joined strengthsand weaknesses and looked for alternatives. an auto parts maker as a generalmanager.I had to So we investedthe money in semiconductors. repay the bank for my studenr loans. Back then, I But that wasnt your core business.And most mantold my wife that my careerwas neyer easy.But it agemâ&#x201A;Źnt experts will advise you to focus on your core didnt matter, astherewas a new challenge. business. And what did you learn from tackling that It's our core businessnow. Ve studied the business challenge? carefully,and talked to experts.We hired good people, A new perspectiveof business.For six years I and combinedwith our managementexperiencewe had worked at the new company. First as generalman- a chance. ager,then asa director. I gained equity from being a It doesn'tmatter that you dont know anythingabout director. As a general manager I saw the company from an operatingperspective.As a director I sawthe a business.You learn about it. You need to havea good importance ofreturn on capital, and the function of business,hire good people, have the right attitude, be honest and associatewith honestpeople.That's it. the board. I developeda simple principle for how to value money. If you earn 100, and spend 120, you are a spendthrift. Ifyou earn 100, spend 20, and save80, you are stingy. But if you earn 100, spend 20, and save80, then you will be okay.That wasdemonstrated to me clearlyduring the recession ofthe mid-1980s. Buiinesswasslow,and companieswerecollapsingall around. With the money I saved,I could survivewhile building the foundation for the future. So I worked hard to developa network of contacrs. Which waswhen rhe next opponunity came:to build a factory. Someoneapproachedme to offer a pieceofland. But I only had savingsworth a fraction ofthe asking price. $(iith the help of friends I bought the land. Ve startedwith three people.Our main businesswasassembling saferybelts for selling to rhe local car producer,Proton. That was in 1994. Now we have more than a hundred workers. Our share price has gone up by more than ten times.

'Vhat are the best things you learned at AIM? At AIM I learnedto be more analytical,to communicate better. I was not one ofthe ton studentsin class. but I.did studyeachcasecarefully.I alwayspur myself in the shoesofthe CEO in the caseand rried my bestto think like one. I alsolearnedar AIM that you must program cashflow very well and take care of money very carefully.Even with my children I teach thesethings. I havea child who's studying in an Australian universicy. For eachdollar that sheasksfiom me, shehasto show a recelPt. Now that you have more time, in which actiyities do you spend more of it? I like to do socialwork. Having been blessedwith so much, now is the time to help people.rVhat good is it for a country to have a high GNP and to still have many poor people?I really think entrepreneursshould contribute more to societythan just providing.jobsand productsor sâ&#x201A;Źrvices. The world doesnot belongto businessalone. -Jet Magsayay

4,/

Dr. PashuPatiNath Singh

"Mismanagement" A Blendof and Leadership

TbDr. PashuPati Nath Singh's prolifig mind, thereare not enoughbooks to terite, and not enoughdevelopmentmanagers.

eadershipcomesnaturallyto Dr. PashuPati Nath Singh. Upon earninga degreein PetroleumEngineering, hegraduated(MM with Distinction, in 1975)from theAsianInstitute of Management,afterwhich he wastedno time in applying this degreein variousinternationalffaining and consultancyservices.In 1998,hisexpertise throughouta four-monthassignmenr on HRD Policyat Amsterdamt'WorldBankOrganizationearned him numerousawards.Acceptingplaquesof recognitionseemsto havecomeasnaturallyto him asassumingleadership.He chaired the Federationof Alumni fusociation, becamepresidentof the Forum ofAsianManagers,the BombayManagementAssociation, and the Indian Socieryfor taining Development.

Right after receiving his Tiiple A award, he flew back to overseeGrid Consultants Pvt. Ltd., the family company he chairs.But not beforelaunching three new boola at AIM.

dedicatesManagement B! Cutlzry Set- which, he "was says, written in a lightervein'- to Prof Canto, becausehe admits to never havins seenthis rather somberprofessorlaugh.

Pash, as his fellow AIM grads call him, has particularly exhibiteda passionfor writing. He has over 500 articlesto his name,spreadout in various newspapersand magazines,and a dozen books, including PeoplePlus Management,DeuelopingEnUnlimtrepreneurshipfor konomic Growth, Success ited, end Profle of an Asian Manager. His writing has won him the TarnejaAward (1995), Best PaperAward at ISTD (1991), RukminiThread Communicator of the YearAward (1984), and IMM Cinni-Fan Award (1980).

"mismanagemenC' series,Pashemphasizes, The "a promote AIM as great instituis not merely to tion that has made a differencein my [his] life and the lives of thousandsof alumni in Asia." Somehow, this doesnot come out asmerepressreleasein relation to his recentTliple A awardacceptance,as he sincerelywishes to contribute to the Institute which helped him overcome his own self-esteem "I issues. learnedto speakthrough AIM. Maybe it 'tough' father - before is perhapsbecauseI had a AIM, I had a fear of power."

He launched no lessthan three books at the Institute in March, as they are dedicatedto AIM professorswho each had a hand in his desire to "mismanagement series"(there are four begin his sofar).This is not the first instancehe hasexpressed gratitude to AIM, ashe has previously offered Prof.le of an Asian Manager to the late Dean Gasry Ortigas.This time however,therewas an element of suspensethat night - he kept the titles under wraps until the ceremonyproper started. What is Wrong with MBAsl rhe first of the series unwrapped in the occasion,was revealedto have been written in honor of Prof. Fil Alfonso's effortlessflexibiliry his outstanding people skills: "l've never met anyone like him...who can deal with the dull srudent, the intelligent one, the leader, the buffoon...," he says.PashalsocommendsProf Alfonso for governingAlM during its crucialyears, at the same time stressingthat he wished to encouragethe professor with Vhat is Vrong. . . to find meansto strengthenthe MBM program.

-*/hat he fears now is that not enough managers are changing fiom the private-enterprisetrack route. to the development-management He constantlyechoesAIM's main principle: the "If menagermust be socially responsible. you are an AIM graduate,you are part ofthe privileged class, so it is your dury to.give back to society."He himself has fulfilled his obligation in founding Shri Bishwanath Singh Memorial Educational, and 'Welfare Tiust, which were funded by his frie nds and books. Both were conceivedin memory of his father, in the aid ofchildren in the slum areas.Then, of course,there is a.lsothe Dr. PN. Singh Founda"Leaders ofTomorrow tion that has undertaken a Project" for youth from slum families in a Mumbai school. He is optimistic such projectswill encour"Once the processhas age more contributions. started, I am confident the vision will become a realiry."

Pashhopesthe Institute can producemore pardcipativeleadersbeyond the corporatesectorofthe "One thing worth being rememProf. Victor Limlingan is the second faculty Asian economy. member honored in the series.ChangingJobsProf beredby is the differenceone makesin the livesof itabfi recognizesthe unassuming personaliry he people. AIM needs to produce more than good that coupled with the wide range of managers,and to graduateworthy leaders"who not possesses, managerialknowledge can only be atoibuted to only possessa socia.lconscience,but also carry the wisdom. The third book belongs to Prof. Toby responsibiliry'itdictates,ashe does. "professor offew words" who encouraged Canto, a 'Et,eryone uants to haue The nouble is,he muses, his classto develop their analytical skills, and in jet, I three, cars." hi own hh wo, other words, to be more insightful.The author a.lso four

Dr. WenentPan

The Critic Pan

'Wenent Pan is eshe art of managementco Dr. "a sentially reasoningprocess."It calls for him t

to balancea crlflcs cold eve and a leadefs warm nano.

V/hen he was appointed asthe youngestpresident 'Corporation (CPC), Dr. of the Chinese Petroleum \Tenent Pan immediately faced tough obstacles,including queriesregardingthe privatization of the firm. he single-handedlyconservedmore than In response, ten million NT dollarswith a cost leadershipstrategy. He facilitated the Point of Sale System that reduced operating costsand highlighted the importance of customer service.He shifted the organization to a decentralized decision-makingprocess.He establisheda linear planning technique, aswell as designedthe blueprints to the implementation of the EnterpriseResourcesPlanningSystem.

These days, CPC has nine oil wells (spread around the world), fourteen oil tankers,three domesticrefineries,one domesticpetrochemicalplant, three naptha crackers,a gaspipeline, six hundred filling stations in the island, and in a sense,over nineteen thousand employees.Pant managerial artistry did not go unnoticed. He has been cited "Outstanding Manager of the Year" by the ChineseProfessional Management,and giventhe highest honor bestowedupon a governmentemployee - pertaining to his being assignedto attend thâ&#x201A;Ź National StrategyInstitute.

the restructuringincluded the designsof"responsibiliry centers" through which the employees could get a grasp of the concept of operational cost, as well as that of thâ&#x201A;Ź accountability which concernover the camewith it. He alsoexpressed then growing competition berween CPC and FormosaPlasticsGroup. To balancehis firm pragmatism,Pan turned to the academic excellenceof AiM. His older in tradbrother (an electricalengineer)succeeded ing without formal managementtraining. This initially showed him all he had to be was reasonable.All he had to do was sharpen his instinctsand evaluatehis movesto be ableto grow through experience.But he opted to earn a Top Management Program degree becauseof the program and the Institute'sreputation for speeding up the processof honing managerialskills.

As a turn-of-the-century responseto globalization, economy nosedives,and threatsto the companyt monopoly, CPC announcedearlierthis yearofits plansto leaseout four hundred and sixtytwo kilometer optical fiber backbonesystemsrunning along pipelines between Keelung and Kaohsiung. The telecom department is designed "mark Enrolling in AIM's courses,which he reports to the first milestone of CPC's determinaare similar to the onesat Harvardt, wasevidently tion to widen its business.CPC will invest to increaserhe currenr fiber optic carrying capaciry worth everypenny and second.He attributeshis t h r e e f o l d , a n d t o u p g r a d e t h e c u r r e n t current presidenry at Taiwant largestand most PlesiochronousDigital Hierarchy (PDH) to the prominent oil company more to the TMP than to his chemistry scholarship(from NTNU). It SynchronousDigital Hierarchy system."To wit, there is more money in the oil bank, and conve- was at AIM where all his chemistry knowledge niently in the name of competent technology at solidifiednot only into currencyfor materialgain, "We that: expectto saveseventymillion NT dol- but also into high qualiry cost-efficientservice, 'lars in long-distancecommunication costsby uti- through the study of the managerialart. lizing the optical fiber line more efficiently."Also And perhapseven more significantly,it was this year,Dr. Panprovessavingfinancial resources "fu is nor his only forte. far as generaringmore AIM that developedhis value of exercisingso"will income is concerned,"he assulesCPC also . cially relevantmanagemenr.In his company,he considergoing into the realestatebusinessto gen- employs two hundred and forry disabled individuals. He initiates fund raising for victims of eratemore profit." calamiry the recentone being the earthquakein On the whole, Dr. Pan prefers to downplay Taiwan. He continuesin the developmentof the company'sprogressivemonopoly. He finds it countlessprogramsthat support gray, impovernecessaryto play the critic, as much as possibleat ished neighborhoodswithin the locale of his dl times.During the late 1990seconomicupheaval, plant. His critical eyeand managerialsixth sense he demonstrateda lack of ambivalencetoward the give him a firm grip on the future of the indus"Of issueof early employment dismissals: course try; his social consciencecommissions him to we are not so efficient. I believethat liberalization extend both handsto the next family in need. and privatizationshouldwork together.All ofthese state-run industries need to and will be restructured no matter how painful it may be." Part of

The art of management, by his definition r after all, is also a reasonableone.

ErnestoD. Garilao

ManagementGoesPublic

"politics," l'gouernment" rl)ith not eoplenormallyassociate " management. Yet, as Prof Gariko's experienceProues, a bettergouernmentnee^ bettir managers. Certain individuals are endow€d with a profound understanding of causeand effect in the world. RecentTiiple A recipientErnestoD. Garilao continuesto blessboth private and public sectorswith this gift - whether as Executive Vice PresiDirector of Philippine Businessfor SocialProgress, dent and Lead Convenor of Social Reform Council, Secretary ofAgrarian Reform, or ascurrent professorand Associate Dean of the Center for Development Management at AIM. The.,4sianManager :calkedto Ernie about his severalcareers, since he opted to do rural legwork after collegein favor ofa six-fisure offer behind the desk.

. \Yhat do you fe i reer-wise?

is Jour great^r accomplishment. u-

uere resolued.How were1ou able to accomplishas muchi

In a businessenterprise,how do you produce Vith PBSBI can sayI left the organizationsusrequired?\X4ratis tainable. Overseaslinkages were developcd, funds 1,000cars?'{4latarethe resources At DAR, the output for inwere raised,a good work ethic was imbibed. Man- the production system? programs allwereimproved.This stance,areresolvedcases.There areadjudicatorswho power,resources, is alsotrue for DAR. Limited foreign partners,prob- hearand resolvethe case.You havea productionproa matterofexamining of its operations,legaland cess,soto speak.Itt essentially lemsin the management land distribution systemswere easedwith improved an operatingsystem.You find out why caseresolution is low. Once reasonsof the work performance , funding, and you caninitiate wlrl areiden:ul.frcd, operatingsystemsbeforeI left. Esp o l i c i e s , i m p r o v eoperations, sentially,the patternto accomplishPrivate sector check resources,maybe change ing thingsinvolvessurveyingthe readjudicators.And at the end ofthe sourcesinitially provided,then anajoin managers who day,ifyou sayX numberofadjullzing how vou canuserhemto credicatorsshouldresolveY number ate better institutions and morc the government of casesmonthly, you'll surely substantivecontributions to thc ^^- '-,, ^:-, ^, I^--wipe our your backlogs.It's nothlearn to deal ing reallygreat.Any managerwho is trained, politically sensitive Many managerswon't euencofislder with d ifferent should come up with the same worhingfor thegouernment.Are thEt concluslon. wrong? characters The trouble is peopledont The government gets bad in different really believein government.The p r e t s .A b u < e .c o r r u p r i o n .i n e f f i governmentcan resolve9(r perenvironments. ciencies- thesearewhatarehighcent, and the world hears,comIighred.My governmentexperience plains about the 4 percent.Not was very fulfilling. Private sector rhat I'm sayingthe 4 percentis managerswho join governmâ&#x201A;Źnt Youcouldpresentasolidpublicpolicyprolearn to deal with different charactersin a different negligible. it dependson whetherthe ministerin charge you're posal, but able to manage environment.The key is how in improving with integriry. It can be done, so long asyou define will accepror nr-tt.[f he hal no inrerest won r anpvhere. rhe proposal go operariont. your boundariesin terms of superiors,the bureaucracy,and everything else.To be thrown to the priv a r es e c r o a r n d b e a b l et o m a n a g ey o u r i n s t i t u t i o n How wereyou able to raisehugesuml lihefor prowell, rhen to be thrown into the public sector,and to grams suchas the Pouert! Alleuiation Fund? be able to manageas well according to the parametersyou set- that can be a good challengefor any manager.The unfortunate stigma is perhapsbecause there arent many effectivemanagersin the government. A better government requiresbetter managers.

It's a good program to begin with. There are alwaysdonors looking for good managementprograms.If they seethat, you get the resource.Good program managementleadsto good program results.In a sense,that'swhat I've emphasized.

tYhen you headedDAR, 2.7M hectareswere distrib- Do you think worbingfor thegouernmenthdsmade uted, P22B raised,and 96 percent ofthe agrarian cases you q'nical, Pessimistic?

I originally offered an electiveon managingstatecivil relations.In the future, managersmust know how societalor market issuesare really resolvedwith input from statemarket or civil sociery tWhen you examine the state policies, there are a lot of recommendations from civil societyand the market. Ages ago, business operadonscould operate unrestricted. Now they are regulatedby the state,they facecivil societypressures. Therefore,enterprisesand their managersmust be sensitive to other publics other than their primary ones. "How is he ableto managetheserelationships?"We offer that elective. 'Weie thinking of expanding that Governancein the coursewherethe discussionofissues is a three-wayinteractionamong the 21stcenturywill be state,market, and civil sociery and it proceedswith the question of gearedtoward a managinga trisectoralprocess.More and more, I think students should trisectoral be exposedto that direction,because governancein the 21" century will interaction be gearedtoward that.

It's not a question of cynicism. Like any manager should approachit, you examineyour constraints, then how you can managethem. Those who can't manageconstraintsproperly end up becoming cynical and throw back the issueto the environment. The fact remainsthat the poor person blamesthe environment when, in truth, he cannot managehis own environment, he cannot identifr his niche, his stakeholders,and managethem well. You can a.lwaysname your term of reference. When you come in, you define your roles and anticipated results.Set the time. In that process,you give it your all in a sense,sincethe job becomestop priority. If the results are not up to par, I dont think you shouldblameyourself, You should aiwaysbe able to say, " Well, I gave it my best shot." In certain situations in life, itt bestto put a closure.This doesnt necessarilymean, howeve! that I'd neverreturn. Ifthe opportunity and the challenge were given, I could go back.

amongthe state,

Vlhat areyour cunent Projects?

the market, and civil society.

\Y/hydid you cometo AIM? \Vhen you go to the classroom,you bring with you your experiencein managinginstiturions,issues both in the private and the public sectors,and you have an experientialdepth the students may find useful in casestudies.You could steerthe students in cenain directionswith that depth. After government workwas an opportune dme to teach,prima. rily becauseI had a lot ofexperienceto impart. At AIM there'sthe rigor in the classroom,the academic excellence.Your classis a multicultura.l, multinational student body. I wasalsointerestedin regional issues.Essentially,I think, theret a lot ofthat here.

In AIM, we're uying to wotk on good country research programs, specifically of Vietnam, Laos, Cambodia, Indonesia, and China so that the output (case

study miterial) can lead to better electives,courses, and new seminars.We would like to seewhether we can offer short-rerm coursesin rhose countries or not. I think thatt part of making the AIM presence more distinctive. \Vhat da you thinh is AIM| world?

main contribution to the

It develops managersfor the region. Hopefully, managerstike on the role ofsocietal institutional the m a n a g e r sa s w e l l , t h a t t h e y ' l l b r i n g i n t o t h e i r countriesand organizationscertain principles that Yoabespecializedon oisis managementand state- value societal good, and that they situate their ciuil societyrektions, institutional dzuelopment,?ub- organizations- whether private or public - within lic sectorreform, conflict resolutionand mediation. that overall context. 'Which -Kristine Domingo uoald yu like to discus?

MBM '73 t rfroroingC[a* Alztwozfl.Lng MBM 1973 has been called a model alumni class. In a speech at the FAIM General Assembly, Roberto Garcia talked about his class and gave insights into what a model alumni classis and does. 'We'vebeenralkingabout EnhancingClass

t{1

Nerworking but I think a more appropriate topic would be EnhancingClassSolidariry Maybe this is becauseI leel if you have the solidariry then nerworking would come out naturallv I d like to tell you a few thingsaboutour '73 classMBM to givevou an ideaof how our classhas networked. First of all, we were the most rebelliousclass,mainly because we were the only one with stage2 strikes againstrhe administration.We joined the classof Ed Morato in 1972 in their protestagainstthe MRR. Then in the secondyear,we decidedto lead our own strike againstthe MRR. Of \Xlestill course,both strikeswereunsuccessful. h a u er h eM R R r o d a 1I. r h i n kw h a t* a s u n i q u e about our classat that time waswe had quite a few studentleaders.Remember the time was 1971andwe werethen in the presence ofstu"First dent leaderswho were a part of the Quarter Storm" during the Marcosyears.Not only that - we had studentleadersin their own righr from Korea and Thailand. I think this chemistry was important to get our class united.In fact,Ninoy Aquino talkedin AIM, and after his talk, wherehe exposedthe Oplan Sagittarius,he left AIM, went straight to Hihon Hotel and waspickedup thar verysame

RODOLFOG. BERMUDEZ

sF BusrN *cs,&r64? \$'B{ER :;it*

RENATOR, BERNAL

ROBERTOS. CRTSOSTOMOJOSE VICENIE l\rl.CUIZON

ffD4R @ ARTUROT. CHU

GUILLERMO D. BELLA

night. At that time we weren't so concernedabout how martial law would affect our classes.\(/e were concernedabout how we were going to disposeofthe firearmsin the dorm. Again, this wasalso a crisis that brought our classtogether,so therewere speculations on how martial law would affect us. Our classfoundedThe Asian ManagersFraternity. I don'tknow ifyoure familiar with this -it was illegal then. We did not have the blessings ofthe adminisrration.Thar fraternityis still active.\(e haveover a thousand members. Among our distinguished membersis SenatorGringo Honasan who we had the priviledge and pleasureto haze. Our class also produced sixteen (16) Tiiple-A awardees.Among t h e s ea r e A n g e l o R e y e s , who is the presentChief of Staff of the Armed Forces o f t h e P h i l i p p i n e s ;P o l y Nazareno, Presidentand CEO of Metro Pacific;Jing Lapus,our debonaircongrâ&#x201A;Źssmanof the third district ofThrlac; PopovJuico, f o r m er c h a i r m a n o f t h e

PERPETUOM. OE CLARO MAUROG.CLEMENTE+

PhilippineSporrsCommissionland Mon Abad,who is now the President ofthe DevelopmentBankofthe Philippines,amongothers. (lur classis alsoactivein the AIM Alumni Affairs and I rvould like ro makea correction- this is not the firsr FAIM gathering.I rememberattendingtwo FAIM

EOUARDOJ.CORTES

conferences. One was in Bangkok and the other in This wasduring the time of Digoy Fernandez, Singapore. the founder of FAIM. We pushed Gaby Mendoza and Gasty Ortigas to include the alumni feesas parr of rhe tuition fees.The alumni association(at that time we were a voung organization)was trving hard to put up

l: on*"-,

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

PETERC. OIAZ JR. +

A. CRUZ

projects,but ofcoursewe did not have enough funds. So we told Gab,v,when you bill them for the tuition, bill them also for the alumni fees.As you build up the alumni through providing them with funds, this will all go back to the Institute. They eventually approved this req u e s t . O u r c l a s sa l s o p r o ducedthreeFAIM presidents: Digoy Fernandez,Mon Abad, and myself.Ve also had five chairmen. alumniassociation Our classhaspresidedfor 10 I ofthe 30 yearsofthe association. ln fact, BennyAraw, the incoming chairman for rhc Philippine Alumni Association is alsoa memberof class l ) / J . I n t sr so u r w a yo t g l v ing backto the Institute.We are alsoproud to saythat we wereableto donate,our ofthe proceedsearnedduring our the MBM 20th anniversary, '7 3 President's Room. Through classdonationsand networking,we werealsoable to donateto the Instituterhe '73 MBM room on the Philippine Floor ofthe AIM ConferenceCenter 'l7e havea complete class directory and what has been very important for us is the email network. Eachofus has

i tr,' \i t.4 G;, - \'-' . . f i*r F L l s tr' * E Ss -''it'*].">

\1,!:*''

MBM

,r.1

'*'**t

JOSE MA. FERNANOEZ

J E S U SG . G A L L E G O SJ R .

1r ROBERTOV GARCIA

a completelist of email addresses o f o u r c l a r r m a r ew' i r h e m a i ll n d i t facilitatescommunicationsgreatlv. The efforts of many classesand FAIM chaprersro build rveb sites a r e . f [ o r t 'i n r h . r i g h rd i r e c t i o nb c causewe cankeepin touch this wav. Anything and evervthingthat gocs on in the class- peoplejust have to post it via email and everybodv getsto knorv about ir. \X/ealsohavc p e r i o d i cc l a s sm e e t i n g s .O n c c a quarterwe gettogetherhereat AIM r o h a 'e . r c o u p l eo f d r i n k ' . T h r r i . a l s o v e r y i m p o r t a n t i n r e r m so f kccpingabrcastofwhat is happening.Vhat we found veryimportant wasthe planningfor the homecoming. This tradirionofthe 20th vear classof taking careof the alumnr homecomingis a greattradition..Ed Morato'sclassstartcdthis for barch 1972.In factI remerrberthe head coutrt reached650. Vhen batch 1 9 7 3 b e c a m et h e h o s t s o f t h c alumni homecoming,rl-erverevcrv competitive.This rvasa big thing for us. Our cl:rsswas so obsessed with beatingthat numbcr,trving to reach onc thousand.Actually we t u r p a r s etdh a ts i n c ew e h i t 1 . 2 0 . 'We had our 20th homecomingar the EDSA Shangri-La.And since then, the homecominghas beena \ u c c e s s fw ud l vo f g e t r i n gr h ea l u m n i together.You are forced to work as a classand I think eventhe recenr alumni homecomingsof the pasr coupleofvearshaveall beenrrving to outdo themselves.They've been world-classproductions,the one this year at the Ayala Centcr and

DELFINVICTORR. MACEDA

,.qil

/:)

JOHARI BIN HASSAN +

OEREK KONG.FONNLIEW

R U F I N OL U I SM A N O T O KJ R ,

I RWINJASMINES

ANTONIOGO KIAN SENEN L. MATOTO

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the one lasrvearat Fort Bonifacio Thc .rlumno i f f i c er s i n - c h a r gdee f o r rh a t , , e r u ea r o u n do f a p p l a u r e Our own annivetsaryreunions rverealso very important to us W h e nw c c e l e b r a t codu r 2 5 t h a r r n i r e r s a r v6. 0 o f o u r c l a s s m l t e . g . r r h e r eidn M a n i l a .W e w e n t t o Subic for three daysrvith our \ p o u s e sI .t w a sa g r e a te x p e r i e n c e . I L h i n km a n vo f v o u * i l l h e . r r r prisedbecause oneofthe questions r h a rw ep o s t c d , J u r i nrgh er e u n i o n " was What arevou mostproud of Eighw in terms of achievement? p c r t e n td i d n o t r a l kr b o u tc a r e e r ' . Thev were talking about how proud they rvereof their families, a n d h o * p r o u d r h e vw e r eo f t h e i r in the sensethat thevbuilt careers u p r h e i ro w n b u . i n e t r e rI.n f a c t .i t u a ss or u c c e ' ' f u tl h a t* e h a re d e cidedto hold anotherclassreunion i n J u n ei n B a n g k o kO . ne of rhe m o s t i m p o r t an t a c t i v i r i e 't h a t keepsus togetheri. goli \\ e hau< an inr e g u l agr a m c sW . einiriared '73 vs.'74 and ter-class golf MBM . e w e h e a rr h e mr o u n d l ; .I a , ' r l y w foundeda classcorporationcalled E n r e r p r i . eT r a i ni n g C o n c e p t r . ' r r r a d aa n . i c h a i r e db r F r a n c i , L P r o [ D e r e kL i e u .l t w a . r u p p o . e d ro gather ftrnds for the classfbr ventures.Ir has been a financial o t* c r e , , r i l lr r v e m b a r r a s r m e. n v o u k n o w i r ' r g r e a tb e . ing. But caute*hen *e get rogerheretert m o n t h l o r r h e h o a r dm e e t i n ga l l o f r h eg o t . i p. o m e .o u r a n du e g e t to seebusinessproposalsthar come o n r h er . r b l eM . a l h e o n ed a vr v < ' l l hir ir better.

@ @. R AMON O. MITRA

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In closing,I d justlike to saythat I think for rhe solidaritvand for networking,the ' i n g l em o s ti m p o r r . t ntth i n g i . c o m m u n i c a r i o n . S o m c t i m eg. u v . u c h a v e n 'st e e ns i n c e graduation,thevjustshowup. When we had the testimonialdinner for Angie Reves,there wereguys that rve haven'tseensincegraduation who showed up. It was a great way of gerting together.That's my advicealso,asfar asalumni networkingis concerned.I've visNet and it'sa ited the AIM Alumni Business just get the alumni greatweb site.Ifyou can to be awarethat that siteis thereand enhance its capabilities.Wharton even had a $0'AVE - Vharton Alumni Virtual Expenencetn which an alumnuscan log on the web site and locateanvonefrom the alumni, classi-

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fied by industrl',working experience,and soon. Fellow i \, b a t c h m a r e .w , c a r c t h e g e n e r a r i o nf o r w h i c h revolutionslike thiswasfirst thoughtf technological i .* Letl see it go to rvork. Impress us. Then afterrvards ' .\ teachthesechildrena thing or tu'o about revolutionsin thought. lt has been a privelegeto be a part of this batch- I standon the shouldersofgiantswhen extraordinarv "$flhat I facethe future with open armsand a senseofu'onder: I times,what extraordinarypeople." exrraordinarv

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AIM'sFatherin the Streets a wholesomehomeatmosphere. The Training or Technology Center offers technical/ vocational sourcesthat allow the indigent youth to learn employableskills in the food trade, garment trade, and electronicstechnology.The LINK Center (Launchingto lndusrries Networking and Kick-off) providesemployment to traineeswho have assistance completed coursesin the Tiaining Center Last May, Laura Vicuia held a party for its streetchil-

"Without

FatherJim, AIM would never have been founded," Prof. Gabino Mendoza has said. Itt been a litle overtwo yearssinceFather JamesF. Donelan passedaway, and morethan thirry yearssince his vision helped to lay the foundationsof the Institute. With his countlessinspired contributions as faculty member,chaplain,adviser,and confidant of the AIM communiry he livedup to every inch ofhis idealisticblueprints for the Institute. The laura Vicufia Foundation, Inc. is one of the last projects he breathed life into and left behind for the alumni ro develop.Organizedwith the S a l e s i a nS i s t e r si n 1 9 9 0 , i t the plight ofthe less addressed fortunatechildren, sincethe

name belongsto the Sisters' model of virtue - a girl who enteredthe conventin placeof sraying in an economically, spirituallyimpoverishedhousehold and was beatified at thirteen. Today, the foundation remainstrue to its originalgoal: t o h e l p t h e s t r e e tc h i l d r e n becomehonest,productive,and self-reliantChristians.It has evolved into an integrated developmentprogram calledthe Journeyof Hope, and hasfour Centers- the Drop-In Center, Temporary Shelter,Training Center,and LINK Center.The Drop-ln Center shelters, oourishes, and gives medical The and educarionalassistance. Temporary Shelter welcomes battered, molested, orphaned girls,and educatesthem within

dren at the Institute, perhaps largelystill in memory of its Jesuitfoundingfather.But asthe years progressi the selfless projects he initiated will no doubtcontinue,aslongasothers uphold hisphilanthropicvision. Those who wish to contributeto the faura Vicuia foundation can do so by donating and volunteeringfor its tutorial services.For details, call7\47793 or drop by 3500 V Mapa extension,Sta. Mesa, Manila,1016

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mail your notesto F tam@aim.edu.ph bestto keep up the interaction with visitingfaculryandalumni. Doni hesirateto let usknow via email either in Mumbai, Delhi, or Calcutta.The sub-chapters or executivecommittee members who areresponsible for eachreand gion arevery approachable wewillonlybetoohappyto talk and shareat leasta few bortles of beer.Wewelcomevery much any effort from you to communicatewith the alumni.

we'vebeenexaminingthe possibiliry ofAIM programsin lndia.We activelylook forwardro helping to make this plan materialize. Prof. Borromeo and Prof. Azanzavisited us again,and as usual we made sure we spent time with them. Wealwayshelp the Instirute in conductinginterviews and exams,Prof. Fil Alfonso visited us sometimein September. Ve againhostedan eveningforhim in Mumbaiand Delhi. \Ve'vebeentrying our best to encourageinteraction with our BoardofGovernors.Ratan Tata hassincelastyearbeenpaying us quite sometime to interactwith us. !0e had a coupleof get-togetherswith him and he sharedwith us his intentionsto help the alumni and promote AIM. The programsfor this year include the FAIM meeting,

which will be held this year in Delhi. We are alsoplanning to have an Indo-AseanEntrepreneurs meeting. The idea is to bring entrepreneursto share and their viewsand experiences, seewhat we can duplicate.The subcontinentreally is an entrepreneurs'continent. The associationundertook severalactivitieson the benevolent side. lndia was hit very badlywith a cycloneand alsoby a war that left millions in despair.The associationcollected funds and gave these to the Prime Minister. One of the things that we haveinitiated is the formal installationofa prolessorialchair from the alumni associationof India. \0e are working toward this and the initial reactionfrom the alumni in India is very positive.Ve will comebackto the lnstitute to see ifthis can be considered. 'We have been trying our

Alfredo Torno, Indonesia;Ve have closeto 3,500 alumni in Indonesia.This is about l4 percentof the total alumni ofAIM, making Indonesiathe country with the rhird highestnumber of AIM alumni. The AIM club of Indonesiahasbeenactivelyhelpingprofessorsflying into Jakarta to gather alumni to discussmanagementissues.The AIM club sponsorsbook launchesto help professors Iaunchtheir booksin Indonesia.The club sponsors

publicseminarsandworkshops, and helps the IndonesiarepresentatiYeomce condrjct openhouseevents, Vith Indonesiacurrently on the road to recovery we are now backto strengthenthe linkagesamong AIM Indonesian alumni. We have realizedthe importanceofa strongnefwork amongalumni.Ve areplanning to conduct back-ro-thecaseroomseminarsand workshops, and update alumni on some managementissues.we arecreatinga web sitefor Indonesiafor all the alumni oflndonesiachapterto havetheir own All datawill be availaddresses. able for anybodywho wantsto locatesomebody "Sugar"

Han Tae Sook, South Korea.I am a graduateof MBM 1984and am currentlyworking asa publicrelationsmanagerfor two Intercontinentalhotels in Seoul.Ifyou haveany plansto visit, just let me know

As you know, in AIM the Koreansbelongto the minority. \Ve have around 50 graduates fiom the MBM, MM and MDP courses.Howevet the most active membersare from MBM. They hold high positions.So our membersfind it beneficial to network with eachother,especiallyas the economic crisis hit Korea hard. Some of our alumni had to changetheirjobs or discardrheir own business, Thereweremany changes. However, these difficult timesactuallymadeour Korean alumni very strong. We had a meetingmonths agoin our horhar they tel, and I could assess not only survived,but theysucceeded.In fact, they are in better positionsnow. Someare in new business,panicularlyin ecommerce,and are quite successful. AIM traineduswell to cope with stressfuldays, and this made our alumni strong even during thesehard times.AII of o u r c h a p t e r m e m b e r sh a v e agreedto support our AIM functions and events.Again, anyone who wishes to visit the Korean Seoul,pleasqcontact chapter. ReneS. Martinez, Philippines: Of the approximately 26,000 AIM alumni,13,000areFilipinos. Of that number we only haveeighrpercentwho actively participate.We havetried to get as much feedbackfrom our alumni aswe can on what they expectfiom us. In doing so,we learnedthat theyarelooking for value-addedalumni eventsthat are meaningful for everyone. Limited participation is a realiry due to the limited executive time of the alumni, There was on rhe alsoa lack of awareness alumni associationof the Philippines itself. More casually, ' therewasa desirefor more intimategatherings.

The PhilippineAlumni Associationrespondedto thesedemands. We wanted to address the needsand wantsofall AIM alumni roward continuing development.\Ve alsowanted to work closelywith the Instirute in the implementationof both the Institute'sand AAAIM's goalsand aspirations.Ve also wantedto initiateavalue-added project with greater meaning and benefit to current and future generations- AAAIM being the millennium administration itself. To stan the year,we revised the Triple-A guidelines!o come up with deservingmillennium awardeesfor 2000. It was the very first time the Triple-A awardingwasheld in Manila. It was originally scheduledto be held in Taiwan, but it was moved due to last yeart earthquake and becausewe wanted it to be a more fitting celebration by coming up with guidelines that will serveand exemplifr the aspirationsofthe AJM alumni. Ve undertook joint projectswith theAIM alumnifoundation headed by Bobby

On March 4, we had the Benaresand which hasadopted charitableprojecaasia primary Millennium 2000 grandhomecause. This wastranslatedto the coming. Despiteeverythingthat Vsion of Hope program,which we had to do, we wantedto give calledon the alumni to support everyonea night oflaughterand memories.AJongwith that came orphans.During the RizalMilIennium dayheld on December a golftournamentthat washeld 30, 1999,we openedSplashIs- at Southwoods.To reach our land to orphansin cooperation customerbase,we came out with the Instirure, the alumni with an alumni newsletter,a the alumni founda- project that was ably spearassociation, tion and-ahost of non-govern- headedby VenieRanosa,oneof our directors.Al ongoingeffort ment organizations. is the Alumni Night, a tie-up with the C2 Restaurant.This providesa perfect venue for cocktailsand more inrimate gatherings.We had hoped to come up with an alumni c o n s u l t a n c yg r o u p , w h i c h would serveasa businessclinic enfcirsmall-and medium-scale terprises.It involvesthe alumni as physiciansto companiesin needof professionalhelp. This is an ongoing project, and we would appreciatethe involvement ofall alumni, faculry and the Instirute itself in this endeavor, On May 19, we held the LauraVicunaFoundadonChariry cause.This is a project that was started by Father Jim Donelan,andwe wantedto con-

getheron theAJM issues.Some ofour activiriesincludenegotiating with a magazinecalled Kobi Kr.rdge,a free magazine availablein MTR stations.They haveasectionreportingnewson managementeducation.Ve try ro negotiatewith them to feature articleswe have written aboutAlM. lVe try to promote scholarshipand recruitment. The HK chapter'snew officerswill be Lucius Lai (chairman),EllenTin (vice-chairman) and fuca Salmon(secretary). Anwar Islam, Bangladesh:I graduatedfrom MBM in 1990, which wasalsothe yearthe AIM association in alumni Bangladesh wasfounded.After forming the organization,we took differentcitiesfor marketing the different long-term coursesofferedby AlM. So far, guide them, to renewtheir net- the lnstitute, and the general tinue this kind of effort in there are about l0 participants memoryof Fr.Donelanhimself. working ties.ThisprojectIeaves public. All of these ideasand from Bangladeshwho particiif hopeprograms will not materialize realmuch to be desired, and course, there's the And of ity of having to raiserevenues fullywewill be ableto comeout we do not havethe involvement pated in different long-term courses, with better resultsin the next of the very alumni we aretrying for the association. 'We have been trying to Philippine serve. So to all our is few months. to Lastand most important maintain a good, effectiverela' will you be a spectaror Thelong-term goal of Philalumni: A lot of the alumni database. tionship with AIM in providing in this whole is an or a participant come ippine AAAJM to create alumni, as soon as lhey to the admissions office, support look forVe really alumni association capable of endeavor? back to AIM, would inquire logistics forAlM and rendering qlassmates you hearing what have all alumni and serving ward to and their uniring abourtheir professorsor representativâ&#x201A;Źs asan effectivemediumofmean- in mind. colleaguesand we felt that we who conduct admissionstests for its ingful change co-alumni, were in the best position to for the variousstudents,coorPeter Fan, Hong Kong: I was dinate with the students,and heresomerwenty-two yearsago when I joined the Management maintainliaisonswith the funding agencies.1i0eregularly reDevelopment Program. I was ceiveand distributeThe Asian not ableto comebackuntil this Manager, as well as the broyear,so I know I really misseda chures for different courses lot. Definitely,I will comeback a m o n g t h e p a r t i c i p a n t so f more frequently,and I hopewe the Ve represented Bangladesh. can contribute moae to the meetings and difFAIM Head . school. ferentmanagementconferences For Hong Kong,we havea very loose lisr of organized in Manila. Ve expectthe updatedlist alumni. Ve havea namelist of stualumni Bangladesh ofAIM con80, but mostofthem travel them to dents so we can contact stantly. We get in touch from Bangladesh members of become have an time to time wheh we chapter.rVe plan to registerthe activiry together. We have an alumni chapter with the conannual garhering where AIM cerned authorities of Banglawe topeople fly in, and get

desh.Ve look forwardto AIM's continuoussupport and coopera on so we canvow !o setan effectiveand firnctionalone. Dr. Gan Cheong Eog, Singapore: Singaporeholds an open door policy and because ofthis, there are some 30 universities offeringMBA and relatedbusinesscourses in the ciry Youhave heardthat someofthe primary schoolsin the Stateshavestarted off-campus and they have boughtbuildingsto housethese campusesin Singapore,Now, under such a context,AIMAS, the AIM Alumni ofSingapore, continuesto uphold the flag of AIM. Any time we cancallupon 80 to 100 loyalists.1X/ecan call on our registrants,over600 degree students working in Singaporeand a lot of AIM graduateswho want to work in Ifwe callon the nonSingapore. degreestudenrsand graduates, they range From rwo to three thousand.As a smallassociation we keep a tight ship. We were the first overseasalumni association apart from rhe alumni as-

sociationin the Philippines.\7e formed ourselvesin 1973 a , have run the whole gamut of activities. But ld just like to report on somethingswhereyou may want to beioformed.One is thar our motto is give.It is more of a blessingto give than to take. And so thosepeoplewho want to join AIMAS must be willing to give. Of course,those who joined AIMAS actually took backmore rhan what they give. The reasonfor rhisis ifyou have some $20 in any subscriprion, they get in terms of dinners somethint from $60 to $80 every year,This is a secrerto those who don't want to ioin, Qur competitiveedgeis the qualiry like 400 people.We hope that of service.We respondvery AIM will usethis asa plarform quickly to anyinquiry on AIM. to really re-establishus as the The reasonfor this is that there No. 3 ifnot the No. I in a counaresomanyalumni associations try where competition in edu- all of them temperingtheir cation is very fierce.I have alThe momentwe get ways said that if you cannot own causes. an inquiry, we reply within one competein a most fiercearena, you arenowherenearthe top. or two days. AIMAS is goingto hostthe FAIM Conferencein 2001. Ve John Abad, United Statesof are going to gather something America:Our main projectsin-

volveestablishinga US alumni web site; creating a database; helpingAIM with recruitment, media and PR; and lastly, strengthening the interaction amongAIM communiry in the United Srates,\i?e believe the web site is the best way to get everybodyinvolved.Initially we havea budgetof$50,000 both for the alumni activitiesand the development ofthe website,but eventuallywe want it to run itself tWe'vealsocontactedmost of the alumni on the database gatheredfrom the association last year.But it's not that easy updatingir and we hopewe get more help from the local chapter Vith regardsto recruitment there'san increasingtrend of alumni going to the Unites States,specificallyto the San Franciscoarea,mainly because of the dot-com opportuniry in SiliconValley.Chemoiljust this year has already taken in three graduatesfrom AIM, We've sponsoredtheir papersand we expecta lot this year,and the yearsto come. Another target would be the network build-up. !0e're planning to link our web site with all the sires around the

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world for the AIM alumni. Indonesiais puning its own web sirc. I ve heard batch 1998 has irs own site, sowhat we need to do is haveone main web siteand connecteverlthing. Then there's the global database.Hopefully we'll have the structure there, bur again we need the inputs becauseit's not that easy.I'm sure everybody here who has tried to updatehis or her databaseknowswhat{ mean,Community features are also going to be there: email, bulletin boards,.jobopenings,job placements. There will be added features like enabling alumni to post their resum6sand ads. Datuk Ir. Mohd Annas HJ. Noq Malaysia: Malaysia has 4,000 alumni.The membersof the club reachabout300,which is still not a very high percentage.Like anyother ofthe clubs, we havedificulry to enroll most of the alumni. Notwithstanding, we believetheAIM Club popu'Ve ladon is quite active. havea

number of activities that we've carriedout. First,we alwaysconsider important people like those from the Malaysian government. \i?e'vehad consultations with them and we have some idea on what the club should do, like be able to con-

tribure to sociery In fact, the necessity to make a contribution to sociery must be greatifthe club wants to be recognized. The other activity is the annual dinner, which is good itt norbecause mally easyto org a n i z ea n n u a l dinnersthat we couplewith lectures.Last yeat we invited the Minister of Energl Commun i c a t i o n sa n d Marketing Media. He talked andmarcommunication about role of and the keting media economy our each in shaping and culrureand it rurnedout to be an engagingdialogue.The important part of the annual generalmeetingis the netlvorking we brganized. Normally,

peopleat the top are avid golfers so we organizegolf events often and attract a good number of them. The problem is how to get them to stay once rhey are with us. Our activitiesalso include supponing AIM iaell In Malaysia,the Institute conducted EMBAfor the secondtime, and the club is trying hard to market the program to assistAIM in getting a consistentnumber of parricipants. We have also AIM in marketingother assisted programs,and in this respect, the relationship between the AIM rep and the AIM club is definitelyclose.We areactually housedin the AIM Rep Ofice ard its staff is also the staff of the AIM Club of Malaysia 'W'e arealsosettingup a web site to house the databaseof human resourcesin Malaysia. The ideais when peoplearetrying to get good managersand goodleaders,theywill go to the human resource database. Therefore we hope the AIM Malaysiawebsitewill automatically becomeone of the referencepoints for them in seeking

\(e hope to do good managers, that by next year.The one thing that constrainsus is money,so we are looking for ways to put up the site and maintain it for free. That is the reasonwe are that looking for orherdatabases would like to houseour site. Bimal Chapagain, Nepal: This is the third year of the AIM Nepal chapter'sestablishment under the FAIM affiliation.Although rhe Nepalesecame to AIM asearlyas1975to acquire the highest levels of management learning,the formation of the AIM Alumni Association Nepal took placeonly in 1997. The AIM Alumni Association Nepal is registeredunder the ministry of home affairs, the government of Nepal, as required by the law ofthe land. A seven-member executive committeemeetsasregularlyas possible (once every two months)and triesto implement activitiesof common interest. The disseminationof AIM's program-related information (both degreeand non-degree) hasbeenone of the key activitiesofthe Nepalchapter.Information dissemination on the FutureLeadersCircle hasbeen, for example,one ofthe promotional activitiescarried out by More than 200 the association. wereindiinterestedcandidates vidually informed about the program and application proces,eirher through personaldiscusslons,telepnone conversations, or emails. The AIM NepalRepresenrative Office, establishedin 1998and directedby the chapter president, is the medium AlM-related information disseminationin Nepal. Application materials are being provided ftom hereaswell. Wehave conducted severalformal and ' informal interaction sessions

with the planners,policy makers, administratorsof the government, NGOs, bilateraland multilateral agenciesregarding AIM programs,andthevalueof educatingtheir peoplein these. Also, individualswho envision an upwardmobility in theirprofessions throughenhancedskills and capabilitiesare being informed about rhe Instirure.Ve advisethem on arailing required rcsourcesso they could benefit from the opportunitiesat AIM. One individual hassecuredfamily support for required resourcesvery recentlyand is coming to the Institute for MBM studiesthis year. '$l'e assistthose who have alreadyheard of AIM but require additional information/ clarification,or needassistance in communicatingwith AIM. Thosewho haveappliedor are about to apply to the Institute and are to be examinedand are assisredby the Nepa.lexamination center, Despireeffortsbeingmade by somealumni it hasbeendifficult to attract many graduates ro the association.V'e are developing an updated databaseof AIM graduates,which is not really moving well due to the lack of responsefrom them. In the arailablelist ofNepdesegraduatesfrom AIM, thereareabout 150 namesregistered.Howwer, at presentwe areableto contact only 60 people.Although there is someinformation basein the list, due to changesin job, retirement or migration elsewhere, it hasbeenextremelydifficult to locateand bring many ofthem under the umbrella of the Alumni Association.Even the interestedgroup ofits members cannot participate in chaprer meetings becausethey are scattered in various placesin the country (due to their professionalrequirements).Sinceit is

a mountainouscountry mobiliry in Nepal is still rather difficult and communication to beaproblem.Most constinues membersare still not reachable we know by email.Nevenheless, rhis whole endeavoris no holiday and so we continue our â&#x201A;Źfforts to r6achout, touch bases, I and supporteachother.

DIRECTORY Christopher Lin Jih-Fung BMP 1977 Chief Knowledge Officer PriceWaterhouseCoopers 2/F, InternationalTiade Bldg. 333 KeelungRoad, Section1, tipei, Thiwan, ^fel: (88 -2) 27296 666 ROQ 6 Fax:(886-2) 27576371 127576372 Enail: chisjpemail. gen.net.tu Mohan Madhav lhadke MM 1980 Vice PresidentBusinessDevelopment BallarpurIndustriesLimited

Thapar House, 124 Janpath, New Delhi, India Tel: (9r-rt) 3368332 | 3368811 | 3368902 Fax:(91-ll) 3368729 Res-GI:6857610 EnaiI: mphadhe@bi b. com ot m4hadhe@wnl.com Leonard Tanubrata MBM 1977 Chairman FAIMAA IndonesiaChapter FAIMAA SecretariatOffice Room 254, SahidJayaHotel and Tower,JalanSudirman86 Jakarta,Indonesia ^fel: (6221) 5702305 Fax:(6221) 5702306 Email: j kttep@indo.net.i.d

. Suk Jaefce MBM 1975 President Data Mew Company,Limited U-l 106, 1698-3,Seocho-Dong, Seocho-KumSeoul,Korea ^fel:(82-2) 5218696 Fax:(82-2) 34864222 Email; contact @dataui aa.co.hr

mail your notesto F tam@aim.edu.ph

ReneMartinez MM 1996 President J. Morsem Croup 738 MJG Bldg., Aurora BIvd. Corner BaleteDrive, QuezonCiry Philippines ^lel: (632) 9250668 Fax: (632) 9250675 Ernail: resamar @p world,net.Pb Lucius K.P. Lai MBM 1980 SeniorAdviser VocationalTiaining Council The ManagementDeveloPment Center ofHong Kong I I /F VTC Tower, 27 Wood Road, '!?an Chai, Hong Kong -lel; (852\ 2836128 Fa-r:(852)25727130 Enail: luciuslai@utc.edu,ph Milon B. Paul MM 1988 Deputy ExecutiveDirector and PopulationServices Tiaining Center 103 New Circular Road Dhaka,1217Bangladesh Tel: (880-2) 842569 Fax:(880-2)8322568 Email: pstc@bangla.net Dr. Gan Cheong Eng MBM 1982 AssociateProfessor SchoolofBuilding & RealEstate NUS, Kent RidgeCrescent, 119260 Singapore Tel: (65) 8743424 Fax:(65)7755502 edu.sg Email: bemgance@nus. Robert V Chandran MBM 1974 President Chemoil Corporation EmbarcaderoCenter

Suite 1800,SanFrancisco, cA 94l l, U.S.A. Tel: (415) 2682700 Fax:(415) 2682701 chemoi Lcom Enall: RVC@mex. Datuk IR. Mohd Annas HJ. Nor, MM 1984 Director General Departmentof Electricity and GasSupply

20lF, PVTC Bldg., JalanTirn Ismail 504 KualaLumpur, Malaysia Tel: (o3) 2323777 Fax:(03)2329776 Emajl.aimmalaysia@Pdj ai ng my

AIM Association- Nepal G P O ,B o x 1 1 9 1 8 , Kathmandu,Nepal Tel: (9771) 47 1583 Fax:(977l) 434433 Email: chabimal@wIi nh.com.nP or phc.mm@undp.org

Bimal Chapagain MDM 1996

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Q&A: NOTA DULLMOMENT

T){M: r{/lrat would the benefits be, for you as a manager,of an Asian monetary union?

RINAAZCUNA MBM'96 Piltel, 9/F BankersCtr 6764 Ayala Ave., Makati City. Emasl:arutzranz@pi beI rct p h

AZCUNA: Better pay? Philippinemanagersareone ofthe lowestpaid in the region (given the samequalifications and work responsibilities).

T){M: Vhat's your line of businessnow and how long you ve been in it? AZCUNA: Seven years in telecommunications.

ThM: How do you imagine the businessyou are in now to be coming along, had you not enrolledin AIM?

Intrcl";ng

TllM: !7hy are you in this business? AZCUNA: It's one of the most dynamic industries worldwide and is in the processof convergingwith other interestingindustriesaswell such as computers - information technology- and the most powerfuI technological innovation of the last cenrury: television.

AZCUNA: It would come a.longjust fine, but I most AZCUNA: Potential subscriberswho will use our communication services. Potential tie-ups with services that may be complimentary with those we offer.

around computers,this will be a greatadvantage. Ti{M: $7hat good has the internet done to you lately?

likely be involved more on the customerservicesideof the businessrather than the marketing.

TAM: Does the power to AZCUNA: Oh, just keep- hire and fire appealto you? ing everyonein the loop via -{4rat could you sup- e-mail. SometimesI catch Tl{M: AZCUNA: No. T?{M: rifhat do you like best ply as a serviceor product myself tiking for granted. about your business,and The bother it hassavedme, TAM: Outside AIM, how to AIM alumni? what do you feel you have that is, and the easeit has far haveyou taken the idea done best in this field? AZCUNA: Vireless com- taken off the information of tapping non-managemunication services. It's loid when just ten yearsago ment school concepts and AZCUNA: There isnt a borI would havebeenlaboring practices as resource for where the action is. ing day in this business.Here over still. managerial skills developas nowhere else in mainTl{M: $Vhat Asian trair do ment, for instance theatre stream'societyis changethe you feel meetsthe challenges TAM: Did the cradle-to- ar$? inescapableconstant. You of businessin the new cen- gravemodel of employment always have to be on your die ofnatural causesor is it AZCUNA: I personallyuse rury? toes or you will be left bejust on leave,waiting for the sports to help develop teamhind. AZCUNA; Our talent to- good times to return? work and strategyformulawards the technica.l.Someof tion. My company,on the TAM: \X/hatdoesyour busithe best programmers are AZCUNA: In this period of other hand, still tendsto use nessneed that AIM alumni Asians. Sincethe new cen- global competitiveness,I traditional methods. Both might be able to supply? tury will significantly evolve doubt if it will ever return. have relevant strengths to

offer the manager,but he/ shehas to want to try it. TAM: How do you feel "EYery about the statemâ&#x201A;Źnt nation getsthe government it deserves."

AZCUNA: To somedegree,

TAM: rVho is your favorite TAM: Pleasefinish the folIowing sentences----AIM professor?

4) Family is...not to be taken for granted. t) Money is...noteverything 5) The future is...veryexciting 2 ) S u c c e s si s . . . h a r d t o AZCUNA: Mel Salazar. achievebut is well wofth the 6)The Asian manager (the Tl{M: Yourfavoritesubjects effort Person,notthe magazine) asan AIM student? 3)Work is...not something is...someonewho will be that should take up all your more apPreciaredin the I comlng years. MCUNA: GM andSUPR time.

the people do have to

take responsibility for the peoplethey put into power. But just aswell, the people in power do need to learn the value ofthe rolegivento them by the people. Ti{M: 'i{4rat is the most enduring knowledgeor philosophy do you feel AIM bequeathed to you? AZCUNA: Thinking on a larger scale- be it thinking out ofthe box or thinking globally. TAM: \7hat management education concept, belief or theory have you since proven right or wrong through ac a.lpractice? AZCUNA: Never be satisfiedwith the status quo (Sourcesand Uses of Power, c/o Captain Lim) TAM: Above all else,an AIM education has given you what? AZCUNA: The value of believingthat hardwork will get you what you want.

WHEREAREYOU? Name RaulRoxasLeverizaJr. PramodKumarPandoy GualkertoSenanoMorco EduardoShinnEnriquez Jr. MarianoTabuenaKatipunan Ting-Min Lin MoisesSanchezMillena QuintinAgraPalileo Rao PatnamShivashankar Yoke Chaw Soh Augustine AlfredoVillavicente Tinio JackWongLoke PedroFloresYlagan Ma.SoconoCastilloPalma-Gil MabiniLataDizon FredC-L.Liu AidaMijares-Mondiguing AguadoPatricio Alexander AmitabhaPaul AntonioCastilloRosales JesusSainzBinamira . GloriaJuanaP Crisostomo JaneHuangWei SudhirVasantRisbud Pi SekSookSanSingKeo YongKongTiong MukeshHarkishinGidwani Roseannellchon-Gonzales CeferinoGonzalesLaude FemandoRoxasSanticoJr. DineshKumarSrivastava EvelynViadoCreencia NeonDiwaEbuen ReynaldoLinaoRoberto DeepakShwkla AlexDouglasTriyana

MBMYear MBM1974 MBM1974 MBM1974 M B M1 9 7 5 M B M1 9 7 5 M B M1 9 7 5 M B M1 9 7 5 M B M1 9 7 5 M B M1 9 7 5 M B M1 9 7 5 M B M1 9 7 5 M B M1 9 7 5 M B M1 9 7 5 MBM1976 MBM1976 M B M1 9 7 6 M B M1 9 7 6 M B M1 9 7 6 M B M1 9 7 6 M B M1 9 7 6 MBM1976 MBM1977 M B M1 9 7 7 MBM1977 MBM1977 MBM1977 MBM1978 MBM,1978 MBM1978 MBM1978 MBM,1979 MBM1979 MBM1979 MBM1979 MBful'1979 MBM1979

Last Known Base U.S.A. Switzerland Unknown Unknown Philippines Taiwan,ROC Australia Unknown lndia Singapore Canada Malaysia Unknown U.S.A. Unknown Unknown Philippines Philippines Unknown Unknown Unknown

u.s.A. Taiwan,ROC Philippines Unknown Malaysia Philippines Philippines Unknown Unknown Philippines

u.s.A. Philippines Canada Philippines lndonesia

CHIEFOF POLICE On behalf of CFOs euerytubere

I h",reyet to meet anyoneoutside the Financedepartmentwho will actually confessto afFectionfor the fellow who controlsthe purse. Respector aPpreciation, maybe. But when was the last meeting you were in when the President askedyou to give the Financedepartment a big hand?Not evenhis bosslikes to seehim ... he is too often the bearerofbad tidings. Are you surprised? Of coursenot! We are, after all, talking about that "no." The one who demandsa dozen Presenexecudvewhosefayorite word is tations of your businessplan before he approvesthe budget - and then, you still have to re-defendevery single expenditure following the approvedbudget!! And thoserulesllllrifho makesthem up?Sometimes,I figure Financepeople just enjoy watching us run around in circles. Maybe we iust need to understandthis animal called Finance?

Haveyou hugged your Chief Financial Officer today?

Bewareof littlz expenses; d small leah uill sinh a geat ship. - Bnjamin Franklin The first commandment ofFinance is to keep the ship ofthe firm afloat. Everything elseis secondary.Afirr all, the promise of a jackpot in year five is uselessifyou cant survive to next year. Most people in Finance are extremely risk-averse. They will scrutinize your plansfor the tiniest loopholes.You just needto learn the language' Ifyou speakabout risk, you must follow with how you are mitigating that risk' If you talk about threats, you need to follow through with your cont;ngency plans. $Vhenin Rome.... Financial senseis hnouing that certain nen uill promise to d'ocertain things, 'and fail. Ed Houe And, evenwhen all the basesseemto be covered,you STILL get a reiection! The unfonunate thing about plans is that Finance types are pagannothing is taken on faith. A track recordofsuccesscan go a long way to shortcircuiting the approvalprocess.Too new? Botrow someoneelse'strack record - ger a supPorrer.

I uorry uhen a busines phn\ onb strateg!flr fnding custlmers reads: " ad.aertising - Mark H. McCormach

"$400,000

for

You do need to have a story behind those numbers. Too many PeoPIethrow money at a problem without any real plan. And your CFO probably had a ringside seatat everyone ofthose fiascoes.He is certainly not going to want to be blamed for another disaster. Do your homework beforeyou push your numbers. h is alwayssound busines to uhe any obtainable na gain, at dn! costand 4t an! isk to the restof the community - Thornstein Veblzn The secondcommandment of Financeis to achievea gain You need to know how your company dâ&#x201A;Źfinesgain. Some usenet income. Some use return on equiry t*4ratever Some useeconomic profit - the excessofnet income over cost ofcapital. that is, that'swhat your CFO is looking for. Somepeoplethinh numbersmereb reflectrealiry... but we belieuethat numberscreate reality. - ScottAda.mt I know it sounds strange,but Finance types tend to worship numbers. That's becausethey'reabout the only thing almost guaranteedto clarifr thinking and guide decisionmaking. You know the old saying- what getsmâ&#x201A;Źasuredgetsmanaged.

ln the world of money, a certainlevel of fear and apprehension is deemed healthy

Know what your firm measures.Make sure you know how those key measures are affectedby your plan - thatt 80 percentof the approvalgame. Authoriry is no strongerthan the man uho uields it. - DoloresE. McGuire He's no angel.You see,good guy; ger rrampled. In the world of money, a certain level of fear and apprehensionis deemedhealthy. Don't worry too much - a lot of that is playacting. But dont let him know that you can seethrough him - you do need to appreciatethe effort. It's especiallyimportant for you to keep the fear alive among your own subordinates- he'll seeit as teamwork. h turns out the corplrate phihso?b! is a ueryflexib/z dtcunent. - ScottAdoms If you can play by the Finance rules, you can even be a member of that very private club that actually get to work outside the rules . . .. sometimes. After all, at the end ofthe day, aren'twe all in this for the money???

Gadfly is a real manager with real obsertationsabout real companies.Togiae him yur own reali4t check,senclrnail to: gadfly-aimph@yahoo.com

with a globalperspective Asianmanagement