The Asian Manager, April 1988 Issue by Sherbet Manalili

A PUBUCATION OF THEALUMNIREI.ATIONS ANDPI.ACEMENT OFFICES ANDOFTHE FEDERATION OF THEASIANINSTITUTE OFMANAGEMENT ALUMNIASSOCIATIONS

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THEASIIANMA'NIAGER

OurGoal: Prcsence ATrueRegional r.he launchins of this maiden issueof the Asian Manageris timeI ry io that 1988marls the 20th year anniversaryof the Asian Institute of Management. As a history for those of us who were not around at the time, the efforts that t6d tottre foundation of the Institute beganin 1965when a collaborative project proposal from three lga{ing sc-hools(the Ateneo of tne Soaeltyof jesus, the De I-a SalleCollegeof the ChristianBrothers and the University of the Philippines)wassentto the Ford Foundation.The proposalentailedan integratedp]an for the development of graduate businesseducation in each of the three schools. In 1966,a US$1.2million grantwasgivenon thebasisof the convictionthat the pmippl"". *ould developint6 one of the strongestcentersfor brsinesseducatio cmmitmentbythe threeschoolstodevelopthe typed i";H;d;f"*t""i*,i man.gensneededin developingeconomies The grant &signated Harvard Univenity asthe project administratorand Dr. StephenH. Fuler was appointedofficer-in-charge. While there wessinlgrvsning developments,on July 7, 1967,the Hanrard AdA!"3"o a memoranvisory Group presentedto the De Ia Salle Colleggg{9: posed.by,!.h-e (Difficulties Schools" Business of Merger d;;'"; the'nPossible U"i""oity of the Philipplne? Ctarter preduded itsjoining gucha ner.ge1.).lvith Oir ao"rrl""t, the pro&ss which wouid lead to the e$ablishrnentof the Institute had started. De La Sallewasfirst to respondfavorablywith its president,Bro. H. Gabriel connon, F.S.C.,and Bro. Paulliebert, F.s.c., is graduateschooldean,supporting the merler proposal fron its inceptrgn.The Ateneo took longer to decideon ttre is it inined a phasing oui of its wn MBA prgglm at the time. A visit, ;tt"; lo*""o, by Di. Fulleito the preside* of thc Ateneo, Fr. Jqryesi Donelan, SJ. finallv convincedthe Ateneo of the ralue of the merger.By mid-1!58, the proposal wasapprovedby the University Senateand the Board of Trusteesof tbe Ateneo. on August zi, 1968,the trusteesof the Institrte held their first Board meeting and bv fflia goard of Gorcrnors from eigbtcountriesin the region (tlorg Kong Malaysta,thePhilippines,Singapore,TaiwanandThailand)was r"Joi6u,i"paq constituted. TWentyyearsof managementeducationand researchfollowed. Research otosa-s ioclodedthe developmentof smallandmediumscaleenterprises'women in Asia, and ruraidevelopment management.Today, the Institute's ["i"o"r. participais canbe found throughogtthe Asia-Prcific ltffifi;iandirogran p'5itions in Uotngoltrnment and private enterprise. *E r i" A"*iea-6"t;"g The purpose of the Asian Manager is to provide cmtinuing input and inforA seond purpce is to aid rrtio" ito- [h" l*titot" to alunni an?their associates. presenoeof AIM in tbo regionasthe centerfor bu"inesseducal" G;gth"tt"gthe tion asoriginaly intended by its foundcrs

Lettersand ManuscriPts Fleaders are enoouragedto subFf mit letters and manuscriPtsfor publication. The editors reserve ihe trgnt to edit materialsselected for publication as theY deen aPpropriate or necessarydue to content or spaceconsiderations.

.,-4 I

Send conUibutions to: Alumni Relations Office c/o Emy R. de VeYra Alunni Relations Director Asian Institute of Managenent 123Paseode Roxas Makati, Metro Manila Philippines

Alumni News: I I pdatess1 xlrrmnicareersand will becomea regular lJi"-itio feature with the second issue of THE ASIAN MANAGEB' Alunni are encouragedto sendreports on the progress of their olvn qreers and thit of their classmatesand other fellow alumni.Sendinfornation to Emy R. de VeYraat the addressabove.

Nextlssue: The Coming Of Manageial CapitalismInMalaYsia TheAsian Manager In Multinaional Corporations Management Cammunicaions: An Asifir PersPeaive The SearchFor ThcAsim Manager ' RiskAndThe Multinational Enterprise CornPden In McutagementE&tcation InAsia

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CONTENTS

CoverStory

PANIC: CONSUMER THEBANCOFILIPINORUN byProf.NedRobefto The bank'smanagementgambledwith an innovativeadvertisingcampaignto help alleviate consumerdemandsfor massivewithdrawals.Ned Roberto assessesthe successof their bold strategy.

From the Managing Editor

Our Goal: A True Fegional Presence 1ry15this maidenissueofTHE ASIAN MANAGER,Gary Santoslooks back at the Institute's besinningsand what lies ahead. Feature

The Samurai and the Manager byReneT.Domingo Is a managerto be evaluated on how well he solvesproblemsorwhether or not he preventsnost from occuring? ---\

r--

lt9 TheTraditionalFinancial FeasibilityStudyVs Statistical Financhl FeasibilityAnalysis byAndyFeneia Prof.Ferreriatakesa lookat averages 6d 6sans andcomesup with a new framework for feasibility studies. Validationremainsto be completed, butAIM is excitedaboutAndy'swork.

Getting to Knowthe Women Managers of Southeast Asia byWctoia B. Hoffotth CanadianInternational Development Agency (ClDA)-funded research reveals the composite Woman Manager in Asia. In a study that maY be the fust of its kind on a major scale, Prof. Hoffarth provides a dramatic view of how women mrnegers Perceivetlemselves. ^-,-t2 -The Anatomy of an EntrePreneur by EduardoA. Moratu, fr. They are'^ng.lT,,genteel visionaries, and tinkerers.nProf. Morato looks at what makesthe entrepreneurwhat he is. Alumnilnterviews 7l4D -- _.. -z -l Taming the Agrarian Tiger Manyof the Institute's graduateshave been elevated over the years to key decision-makingpositions in private enterprise and government. Philip EllaJuico (MBM'73) hasbeenputin charge of agrarian reform in the Philippines. In an exclusiveinterview, he relates the first six months on the job.

cr.a

--rTaming the Agrarhn Tirger:Part ll Roberto W. Ansaldo (MBM '71) works nacrossthe hall" from Philip Juico as undersecretaryat the Philippine Agriculture Department. He's beenchargedwith developingpolicies to make the farmer prosperous. In another exclusive interview, he tells how he intends to makethis happen. AIM Developments

MMAdmlssionsTo lncorporate CareerPlanning AIM not only educateg it evaluates: before and after entry into the MM, AssociateDean Borromeo intends to knowwhat his managersare made of andwhat theycan do for the organizations they will rnanrge.

Alumni and FaculwNews

at! -Y Jakarta Homecoming Alumnirenewfriendshipsandlearnof new managementinsights from former professorsand national leaders.

FAIMConfab Set

''/c,

-|Y AtM Signs DeveloPmentAgreement with MIMT

tlCt -2-.4, -Small and Medium DeveloPments Prof. Q.T. Tan is developing SMBI soluses for the MM, MBM, and Executive Development Programs.

+tar --

EugeneEugene A final good bye to our professor,colleague,and friend.

THEASIAN MANAGER A Rrbllcdlon otth. Alumnl Fbldlons atd Placcm.nl Off,cc rnd th. F.d.rdlon oa lh. Ads Indftut of Me|râ&#x201A;Ź.' mnl Alumnl A3socidlonr.

ManagingEditor Edoar Sentos

Editor-in-Chiet Michael A" Hamlin

Editors Emvde Vewa.SusieAnoyo

EditorlalBoard GastonOrtigas,FelipeAfonso Gabinolt/lendoza,HoracioBorromeo TomasLopez 'EffieAssociate Editors MBM78) Goh(Malaysia, Mtiaq A, Oureshi(Pakistan,BMP77) MM'eO) StephenLce (Siingapore, TesraciaiChemnasiriOhailand.MBM73) Copynght1908by lhc Adrn Menqrr. Al tbhb rrctt d. R.producilonIn ltiy m.nn r InyvhoLo. Partln Englbhor oth.r LngurEa. ptohlbltad. Th. Al|rn Menrg.r lt putrldrd qurlfdy !y th. Aumni R.Elbnr ltd Plsfir.nl Otflco gfth. AJan Indltulr ol Managomrnl

COVERSTOHT

Panic: Consumer TheBancoFilipinoRun by Eduardo L Roberto fin Monday,July 23,1984,Banco VFilipino, the country'sleading and largest savingsbank, implemented a bank-holidaydecisionthat its top officers reached on July 20, 1984.It closedall its branchesnationwide.In a sense,the closureendedthe heavybank run that 1f,s5svingsbank experiencedthe precedingweek.But when it came,it triggered offwhat a major businessdaily called a bank panic entailing bank runs in other banks,particularly thoseadjacentto the closedBanco Filipino branches and whose depositorswere said to havefeared that the Banco Filipino bank holiday would soon extendto other banks including their own. On Wednesday,August I, L984, Banco Filipino lifted its bank holiday after the Central Bank releasedto it the previousdayP1.3billion to enable the savingsbank to servicedepositors' withdrawals.On that sameday,Banco Filipino cameoutwithvisible print ads in all major dailies that surprisedand evenshockedmany business-and banking-communitymembers.The advertisementshowed a smiling, uniformed lady obviouslymeant to be a Banco Filipino teller behind a neckhigh "mountain of cash".The ad's lines stated:nWe'vebeen testedoncemore. BancoFilipino hasall the cashyou'll everneed.' Consuner-panic behavior in bank runs and characteristicheavyand spiralingdepositwithdrawalsis a rarely if not lnstudied aspectof consumer behavior.After all, how frequently doesconsumerpanic take place?And, naturally, we will not produce or inducesuchbehaviorjust for the sakeof studyingit. A review of the current consumer behavior literature and books yields no reference to any study of con' sumer-panicbehaviornor to anytreatment of it as a topic or subjectof consumer-behavior research. The

theoretical guide used here had to be obtained from sociologr fiterature on collectivebehaviorunder which panic behavior is treated as a subsetof disaster behavior. My justification for studyingconsumer panic behavior mirrors sociology'sreasonfor the studyof masspanic behavior.To start with, this will not be the last that we shall

THE BANKER'SSIDE OF THE BANK PANIC I et us first look at the banking I-community's versionof the panic incident. According to Business Day, the country'sleadingbusiness newspaperat the time, the sequence of major reported eventsthat finally led to the Banco Filipino holiday decisionwas as follows: fuly 3, 1984.The CentralBank t/ (CB) Deputy Governor wrote Banco Filipino (BF) Presidentthat BF's overdraftswith the CB had reachedP211million and askedBF to immediatelyturn over to the CB eligiblecollateralto securethe overdrafts. fuly 5, 1984.The BF PresidentinrJ formed the CB DeputyGovernor that within the day,BF would submit P378million in eligible collateral to the CB and would deliver at least P237million once more in the succeedingtwo days.

seeof suchmarket and consumerbehavior. Third world countriesSeemto be particularly open to its occurence. If we therefore are to experiencea bank run, it is critical that we know what to expectand how to managea run when it does strike. Of course, 'managingnhere doesnot mean that we will plan, organize,implement and control the panic incidenceitself. I refer rather to what the manager needsto do to prevent the adverse of market-panicbeconsequences havior from spreadirg,or elseto abort and cut short that diffusion,or if this can not be done, then to correct the resultant damageas quickly as it occurs. To be able to do any ofthese things, we must first understandconsumer-panicbehavior.This is the purpose of this article and the study it reports in the following pages.

fuly 9, 1984.The BF Vice-Presir,l.dent requestedfrom the CB DeputyGovernoraPl) million cash 'e:draordiadvanceto servicethe nary withdrawals" that BF was experiencingat its branches. A CB SpecialAssisfuly 11,1.984. f.f tant to the Governorsenttwo examiners to BF to examineBF's book. The BF Chairman met with the CB Governor that night an4 in the presenceof other BF officers, "sugthe CB Governor allegedlY BF or merge or gestedthat BF sell put new facesin the bank within two days."The CB Governor wassaid to have also ordered BF not to issue manager'scheckseffectiveJuly 12. luly 12,1984.BF wrote the CB Lf Governor'formally turning over 15ssdministrationof thebanktoyou

and the MonetaryBoard."BF also informedthe Prime Minister of its action.The letters were signedby the BF chairman. luly L3,1984.BF EVP wrote the U CB Governorthat the lafter's instructions "to deliver within the weekendthe stockcertificatesof the bank representinga majority of the bank's sharesproperly endorsedin blank, with appropriate corporate board resolutionsin the caseof corporate stockholders"could not be complied with. This wasbecause, wrotetheEVP, thebank'scorporate stockholderswantedto know the price offered per shareand the terms and conditionsof payment. The BF EVP alsoinformed the CB Governorthat the nappropriate board resolutions"could not be securedwithin the weekend.In the sameletter,the BF EVP reiterated BF's requestfor a P50million cash advanceagainstthe balanceof T r e a s u r yN o t e s a n d t h e H o m e Finance Corporation-insured mortgages whichhadbeendelivered to the CB.

luly 16,1984.BF shareholders Lf representing57Voof the bank's outstandingvoting stock submitted to the CB Governor a resolution authorifig the Governorand/orhis nominee"to negotiate,for andin our behalf, for the saleof our sharesof the corporation.n

luly 17,1984.The CB releaseda Lt P25million cashadvanceto BF. According to the BF legal counsel, this wasthe last cashreleaseto the bank.Total cashreleasesfrom June to this day amountedto P14t|.2million, P110.7million of which was releasedin June on a staggered basis.

"...thebank holidayheld back the run-away perceptionandpace of the cisis..." fuly 18,1984.BF informedCB that BF Lf becauseof heavywithdrawals, neededimmediateencashmentof P50million from the CB. The BF EVP informed the CB Governor that the bank wasconferringwith Manila-basedforeign creditor banks and with the Bank of the Philippine Islandsto buy into the bank.The BFEVP alsotold the CB Governor that the CB directive r e s t r i c t i n g B F ' s i s s u a n c e so f manager'schecksto all the CB regional clearingofficeswould precipitatea nationwiderun in all of BF's branches.The BF board of directorsmet and adopteda resolution that without the requestedCB cashadvancegthe bankwould have no other recoursebut to close. uly 19,1.984. The BF EVP wrote the CB Governor for a nfinalap

peal" on the bank'sP100million encashment.In this letter, the bank EVP saidthat BFs "operationsituation has worsenedbecauseSan Miguel Corporationhascirculateda memotoitsunits,offices,and outlets throughout the country prohibiting acceptanceof paymentsmadewith BF checks."The BF legal counsel wrote the CB Governor accusingthe CB of causingthe bank'sdifficulties. luly 20,1984.The BF branch U managersand officersmet to decide on a bank holiday starting Mondayon the groundsthat without the CB cashsupport,violencewould e r u p t w h e n t h e c a s hi n a n y B F branchran out.

l u l y 2 l - 2 2 , 1 9 8 4 .B F o f f i c e r s rJ awaitedword from the CB on the requestedcashsupport and expressedwillingnessto call off the bank holidayif the CB extendedthe cash.BF receivedno word from the CB. Instead,the CB Governorissued an official statementrefe.rring to the July 12 meetingwith BF officers where he said, "The CB advisedthe BFs presentmanagement to seeknew,btrongerpartners and that should they need assistance from the CB in this regard, their shareholdersshouldprovidethe CB with the appropriateauthority."The Governoralsoexplainedthat the BF Julv 12decisionto turn over the BF

administration to the CB was not possibleto implement becausethe law inhibited CB from taking such action.

luly 23,1984.All BF branches t/ nationwideclosed.

A s a bank with more than P3 billion Adeposits from 2.67 million depositorsand resourcesof over P4 billion, the bank closing could not but havean impact and its action of July 23 had immediate repercussionsin almost all quarters of society.TVo days after the BF closure,the BankersAssociationof the Philippineswassaidto have sent a delegationto the CB "as Governor urging the latter to settle soon aspossible"the BF crisisas any delay in its resolution would just as much erode "public confidencein the entire banking systemn(BusinessDay, p. 12).OppositionmemJu1y27,1984: bers of parliament led bythe Minority Floor Irader were quick to call for an "the investigationnot only of BF but of whole country's banking systemin order to adopt remedial legislation to restore public confidence and strengthenits pivotal position in the national economy' (BusinessDay, p.11). Ju1y25,1984: Civic leaders, one of whom came from a Metro-Manila district, called for the direct intervention ofPresident Marcos. "For the sakeof the 3 million depositorsof Banco Filipino... and the Philippine banking system,I implore PresidentMarcos, Prime Minister Virata and Governor Fernandezto give this very seriousmatter affecting the very bloodline of the economy their preferential attention" (Business Day, July 26, L984:p.L2). After a week and indeed after the President'sintervention, the bank holidaywas lifted and BF opened againfor businesson August L, t!8,/'. Through all theseevents,how did the real "victims of disaster',the consumersor individual bank depcitorg makeoutontheir own?What did they do and how did they seeBF asa bank? How did tley react to the BF Ve'vebeen-tested-once-more'adswhich cameout on August 1, 1984and thereafter?

THE CONSUMERSIDEOFTHE BANK PANIC fo obtainvalid answersto the quesI tions on con$lmer-panic behavior in the face of the BF bank ruq bank holiday and bank reopening ads, a field-based consumerstudy was necessaryTivo suchsurveyswere conducted the latter half of August and the first half of September,1984. There were two groups of respondents interviewedfor the surveys. One groupwasmadeup of 60 Banco Filipino depositorswho withdrew

their depositsin whole or in part before (25 ofthe60) or after (35 ofthe 60) the bank holiday. This group constituted the sampleof respondents from whom data neededby the questions on what the consumersdid were gathered.Table l presentsthe other characteristicsmaking up the profile of this sampleof respondents. The secondgroup consistedof.ll2 consumers,57 of whom weref are Banco Filipino depositorsand 55 wercf arenondepositorsat the time of the survey.Itwas from thissamplethat the data neededto answerthe ques-

tionson howconsumersreactedto the post bank-holidayadsand how they sawBF as a bank were collected. Table 2 presentsthe profile of this 5ample. The respondentsin the abovetwo sampleswereselectedvia appropriate screeningquestionsqualifyingthem into either one of the two samples. This selectiontook placeas a "piggybacking"procedure in severalofthe on-goingsurveysof ER Associates, Inc. Those surveyswere all random representativemarket surveys. "Piggybackingnmeant that the qualified respondentsfrom the surveyswere interviewedonly after the First of all, the Banco-Filipino interviewsfor the "parent"surveyshad depositorslearnedabout the bank run beencompletelyfinished. or its likelihood much more from inThe datafrom the studyrespondents terpersonalmedia (88% of the time) weregatheredby face-to-faceinterthan from massmedia sovces (20Vo viewsusing a pretestedstructured of the time). Table 3 showsthe comquestionnaire.The itemsin the ques- plete data basefor this finding. tionnaireswere developedbasedon The precedingis not meantto inply the specifiedquestionstheywereinthat the interpersonalmediaareindetendedto address. pendentof the massmediasourcesof information. For all we know, the 88% interpersonalsourcesgot their inforTHE BANK.RUNBEHAVIOROF mation from the massmedia.But the DEPOSITORS datado not saysoor at leastdo not go beyond the indication of the first 1f\ n instructiveway of analyzing sourceand into the prior chain of inllpanic behavior,accordingto formationsources. Smelser(1%3),is to look at panig3sn Second,on their own most of the communicationevent.According to depositors(52Vo)initiated movesto the surveydataon depositorbehavior searchfor information about the bank toward the BF bank run, this bank run run by askingothers.Table 4 givesthe treated asa communicationeventwas supportingsurveydatafor this finding. to the depositorsan overwhelningly Third, just as maay of these word-of-mouthprocess. depositors(55Voof them) took it upon

themselvesto tell others about what was happening.Table 5 su-marizes the surveydata basefor this. What is the practical significanceof finding out that the public knowledge aboutthe BancoFilipino bank runwas predominantlya word-of-mouthhappeningamongits depositors? This significancerests on the fact that relatively few marketing practitioners havethe necessaryskill to effectively manageand usethe word-ofmouth media or "networknto their company'sadvantage.Crisis market eventssuchasbank runs occupya disproportionate amount of the consumer'sattention of consumers becauseof run-awayword-of-mouth exaggerationsand distortions. The marketing man confronted by or preparing to be confrontedby such crisisneedsthe skill to both prevent and correct (if the crisis shouldstill take place)the likely adverseconsequencesof the crisis.That preventive skill meansthat the marketingman mustknow what inoculation measures to take sohis consumersare not taken by completesurpriseby the event.The corrective skill meanshe shouid know what immediatecurativemeasuresto t a k e i u s t i n c a s eh i s i n o c u l a t i o n program provesunsuccessful,and adverseconsequences of a feared crisis eventstill take place and spread. Another aspectof panic behavior that is usefulto look at is its perceived risk element.According to Perry and Pugh (1978), panic and disaster produce fear and uncertainty about

personalharm or danger.Thesetwo related dimensionsof perceivedrisk are well-documentedin consumerbehavior studies.I will make useof these conceptsin the following analpis of the perceivedrisk angleof consumerpanic behavior. According to relevant surveydata, BF depositorswithdrew their noney but not all of it. How much was withdrawn seemedto dependupon the deposito/s perceptionof the risk that the bank run would get out of hand and lead to the ultimate total failure of BF. The survey data showing the deposit withdrawal variation and distribution are presentedin Table6. This depositor'sperception of risk is of coursenot being 6signed the sole responsibilityfor the lessthan 1007o withdr awal. Admittedly, there were otler forces at play for example,the linits imposedbythe branch bank officers on withdrawal. The intent here is not to show perceivedrisk as the single causalfactor but simply to test its contributory erylanatoryfit to the facts defined by the surveydata. The tabulation of the finer categories of portion withdrawn demonstratedin fact that only tlVo of the withdrawing depositorswithdrew all of their money.Among those who withdrew before the bank holiday, only 44Vo took out all their depositswhile among thosewho withdrew after, this proportion was even lower: 3lVo. Avenge withdrawal before the bank holiday was 85Voof total deposit while that afterwas1ZVo.Theclear indicationis that depositorschangedtheir percep tion ofthe bank run and the bank concernedafter the bank holiday. What is the perception?It is the percepion of the risk to whic-hthe bank run exposesthe depositor. To clarify this,Figure1 presentsa pictureofthis perception. This picture is derived from the data coming from two questionnaire items in the survey. As suggestedin Figure 1, thesetwo items constitute the two interrelated aspectsof perceivedrisk to the risk taker. The first is the likelihood that the depositor feels the bank run and its adverseconsequences willjust continue uncontrolled. This felt likelihood is measuredin the horizontal axis of Figure 1 along a 4-point scale(where 4 = very serious,3 =

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maybeserious,2 = not that seriouq and 1 = not seriousat all). In Figure 1, thesetwo measuresare in a sensecross-tabulatedby two periods in time; na-ely, before and after the bank holiday. What this data manipulation showsis that the risk that consumers(i.e., the depositors) perceivedwasrelativelylow and it in fact got lorrcr after the bank.holiday. In this sense,the bank holiday held back the run-away perceptipn and pace of the crisis. If that is true, the declarationof the bank holiday for Banco Filipino was a correct and effective businessdecision. The foregoing should not be interpreted as suggestingthat the bank holiday by itself changed the depositors'risk perception.By itself it did not but it did when it led or, perhaps more accurately,forced the Central Bank to subsequentlydecide to fully support Banco Filipino which substantiallycontributed to the depositors'regaining some confidence in the Bank. What did the consumers who withdrew their depositsfrom BF do with the withdracm money? The indicationsfrom'the surwy say that after withdrawing their depositg the BF depositorsdid a lot of thinp

with the money.This businessthat BF lost represented,however,business gainsfor others:not only for the other banksbut for the other sectorsof the economyaswell. The total picture is drawn in Figure 2. While the data in the lower branches and levels ofFigure 2 are basedon very small subsamplesizes,their statisticsstill indicate directions and broad categories of alternative ramifications of the events. The first cut is betweenplacing the withdrawn depositin other banks @7Vo)or not doing so (53Vo)but insteadjust keepingit (22Voof 53%) or elsespendingit (78Voof 53%). Those who deposited the money in other banksdidsoin nearly9 out of l0cases and in just one other bank. The most dominant of theseotherbanks is Bank of Philippine Islandswhich got44Voof the Banco Filipino withdrawals by consumerswho transferred to one other bank. Thosewho kept their moneymostly did so in their howe (1lVo) but dose to a third of them decidedto go back to Banco Filipino and redeposit.As a percent of the total withdrawing depositors,this equals3.4Vo.In othet words, only3.4Voof the withdrawing Banco Filipino depositors put back

I t

their money after it becameclear that the bant wasnot goingto fold up after all. Those who spent the money Placed it on consunption itens (groceries "profitable' or'liqand clothing),on uid" assets(iewelry and dollars), on small businessventures (buy and sell and5/6lending) or on payingoff past due debts. CONSUMERREACTIONSTO THE POST BANK.HOUDAY ADS I et usnow switchto the BF print ads l-that were very conspicuousParticularly during the month following the lifting of the bank holiday,August

r9u.

How did these advertisenents impact m the consumers?What kind of an inage did the consumersform of thoseadsand of BF itself? The surveydataseemto suggestthat the Ye've-been-tested-once-moren post bank-holiday ads of BF were a highly memorable ad campaignto both BF depositors and nondepositors. The memorability measure used here is that of recall lerel or ratio for the ad'scopypointsamongthosewho said they saw, read or heard the ad during the nonth of August. Figure 3 summarizesthe survey data on this measure. While Figure 3 shows the level of awarenessfor the ad differed significantly between depositors (537o level) and nondepositors (33Vo), howbver,il fdngs 6ut the fact that the recall of what the ad said and showed asrelatedbytlose awareof the addid not differ significantly between these two segments.In addition, the recall ratio passedwaybeyond the majority proportion: 93Vof.or the depositors andS3Vofor the nondepositorswho dain€d awarenessof the ad. In addition to being regarded as a memorabilitymeasure,the recall ratio is also looked upon as an indicator of the quality of ad awareness.In other words, people may be able to say, "Yeg I sa{read/heardthat ad" but if they could not recall a single specific item aboutwhattheadsaidorshowe4 that awarenessis verypoor io quality. Awarenessis largely a matter of mediaexpmureandweight.The more media vehicles the ad is in and the more frequently that ad is in those

vehiclal the higher the awarenessfor that ad. Recall m the other han4 is primarily a matter of ad coplt what is said and shown by the ad. The more relevant the ad messagesare and the more appealingits executionelements are, the higher the ad recall. In the "We'vecaseof the Banco Filipino ad, the conbeen-tested-once-moren clusion is quite clear: 1) What the ad said wasrelevant; 2) What it showedwas appealing; and 3) It had a relatively low media coverageand frequency. The first two conclusionsexplainwhy the ad was highly memorable.The third conclusionexplainswhy it had a relatively low awarenessratio. But what kind of an ad did the con"We've-been-testeds '-ers seein the once-morenads?Consumersmay recall an ad but this doesnot necessarilymeanthat it favorablyimpressed them. In the caseofthe BF ads' the advertising image, according to the surrrc; data, was likewise predominantlY positive. Ad image was measuredby the ratings that the survey respondents gave[o the BF ads on eachof fiw ad attributes. T\vo of thesefn'e are posi"convincing" tive attributes; nemely, "imaginative" while three are and "exagnegativeattributes; namely, "in gerated", poor taste",and'offensive."The percent ofrespondents agreeingwith the positive attributes and those disagreeingwith the negative attributes are shownin Table 7. The whole of Table 7 providesthe adimage measure. fhe advertisingcommunit/s aswell I assomeof the bankers'criticisms of the "We've-been-tested-oncemore" adwas that itwas offensiveand in poor taste. The data in Table 7 indi&te that the consumingpublic, both Banco Filipino depositors and nondepositors,do not agreewith the "professionals.'Three-quartersto four-fifths of the depositors do not find the ad inpoor tastenor offensivg and just as close a set of percentages prevail among the nondepositors. Il fac! amongthe BFdepositors aswell as nondepositorg the Banco Filipino post bank-holidayad campaignis:

1) Not offensive; 2) Convincing and 3) Not in poor taste. Those who were negativeabout the ad seemedto be so for two reasons. First, some of them are simPlY negativisticabout adsingenerat They are negativisticpersonalities.This is exemplified by the respondent who said: "I don't believe in what adssay becausein adsonly the goodthingsare shown.n There is probably nothing that anyonecan do about the thinking and perception of the people in this segment. The other reasonhasto do withwhat some respondentsperceivedto be a contradiction. let us hear this from what tlese respondentsactuallyhadto sa)4 'BF has all the cash The ad said: vou'll ever ned.' Bttt how can that be? ft faited aN closd, so that fneans they have no cash.' 'So they eY they have a lot ot money. But W did theY close?' The ad sard'Tesfed for strength. Iested tor stability.' How can they be stable? They iust tell and closd.' The news sr.id they reailY had no cash. Then this ad shotils a Picture of a lot of cash.' That pictwe of a lot of cash Just does not fit the situation they're in now.' Obviously,the foregoingperceptions are wrongly premised.Therefore,thcy can be changedwith the communica' tion of the right information. After talking about their reactionsto the'We've-been-tested-once-more" ad, the survey.reqnrdents *ere then asked: "What about Banco FiliPino? How do you rate it as a bank now? Would you sayyou'd rate it very hig!ly, highly, neither highly nor p,oorly, poorly or very poorly?' Table 8 showshow the a$;werswere distributed. As shown in Table 8, the resultant regard and perception of Banco Filipino itself is anbivalent. Tf,e modal response of both depositors and nondepositors,as fabb g shows,is one of ambivalence. Most people cannot quite mate uP

their mindsyet what to think of Banco Filiprno. It would have been ideal if we also had the statistics of Table 8 for the period before the bank holiday, say, last year or two years ago. If we had those,thenwe could compareand see howmuch shift took place, how much downward or upward movement of the ratings of Banco Filipino took place,in betweenthe two periods.Unfortunately,we donot havesuchstatistics. From Yfrat we have,however,we can saythat the first real damagg among other setbacks resulting from the bank-run crisis suffered by Banco Filipino, was the creation of that doninant feeling of consumer ernbinalencetoward this biggest savings institution of the country. That ambivalence can go in either of the two directionsof positive or negative. This is preciselywhere the future danger lies: Obviously, the ambivalence shouldnot be allowed to deteriorate in the negativedirection. One of the wap bywhich this canbe prerrcntedis to reinforce the remaining perceived areas of strength of Banco Filipino and to correct or at least minimize its perceivedareasof weakness.The surveydid not go into a direct measureof these perceived strengths and weaknesses.However, the responsesto the probing on the overall rating give indications that a larger-based follow-up study may quanti&. Here are theseindications: For perceivedstrengths,here are the major categories: L The'Tested-for-Shengthfiestedfor-Stabilit/ internalized belief and perccpion. 'l donT bellerre that Banco Flllplno willfold up. /t'sbecause thqwere aileto give aN retum the money ottheir depositors.'

'/t was actually secure when it crosod. Thst it opened. I think what happened was lust a mi suderstanding i nside.' 2.The leader-bankperceptionapparentfrom the following consumer expressions of whytheyrate Banco Filipino\ery high$. ?fb fie top Mnk tor me.' ?fs to me still the best Mnk.' ?'s gota lotof proryrties so fiiust

canTfoldup.' perception 3. The trustworthiness clearfrom suchconsrmerreasonings asthese: 'There are still narry wtu tust Banco Fillptno even when it closed.I sti//seea lotof ryle depositing thereevenatterthey've c/osed.' 'Actually, there are more deposftors now in spite of what hapryned,.' There are stillmanywho aretrusting aN depositing.' 'Actualy, they did not break their promiseto the public. Thq paid Mck the deposftors. Those who were wihdrawing were ableto do so.' 'Even when they tell, they still opened again. They were even open up to midnight of &turdays aN Sundaysiust so Wople can witM raw. Theseonly demonstrate thathey rally havethecash.They were able to give back all tltc moneyof their depositors.' Fortheperceivedweaknesses, onthe otherhand the majorcategories ap pearto be: 1.Theuntrustworthiness perception. This underliesargumentssuchasthe followinggivenasreasonsfor rating BancoFilipino'verypoor$: 'l lost contidencein it becauseof what happend. Stddenfi, there wasa Mnk holidayaN depositors were unableto witM raw.' 'l can't trust them anymore be cause of mismanagement.Can you imagineinvestingyour monq there and when you want to wiMnw you can't.' 'lf hlfiiatwerc a g/asg Wu'd &y there'sal readya crack.Ihat crisis can alwap happenagain.People Justlost contidenceln lt.' 2.The fallenleader-bank percep tion. 'Nmost all depositors witMrew. How arethq going to wen exls?' 'l donT look up to Banco Filipino alwore because of what hap perred. Tlcy tell and that's wtty theyclosd.

They've dldd thelr name.' 3. The perceivedcontradiction in the Tested-for-Strength/Tested-forStabilit/ claim. The perceptionswere in the following: e,:rpressed The fact that they c/osed is proot that they're not testd for strenglh.' 'They claim to be tested for strength aN stabiI ity but they were the veryfid fo c/ose.' Qae thing is quite readily noticeable from the foregoing: The perceived strengths are the exact oppositesof the perceivedweaknesses. The perceivedstrengthsare reinforceablebecausethey are, in general, truthfully or factually based.The perceivedweaknessescan also be corrected,and correctionseemsrather feasiblebecausetheir basisis wrong information. For example,it is not true that "depositorscan't withdraw their deposits."Providingthe consumerswith the objective,correct and specific statisticson this kind of misperceptionswill be the most effective and efficient wav to make the neededcorrection.

coNcLustoNs Au. analysisand discussionof the Vconsumer researchon the consumer-panicbehavior on the Banco Filipino bank-run and the consumers' reactionsto the BF post bank-holiday ads aimed at restoringand maintainrng the BFbank image clarified first of all severalpublic misperceptions about the impact of the bank run and the propriety of the BF ad campaig". We were also able to isolate the neededmanagementandcommunication skills the marketing manager must have to manageeffectively consumer and market panic behavior. Finally, we sawwhat the manageris to enpâ&#x201A;Źctwhen a consumer-panicincident taftes place and what specific measures he needs to adopt to prevent,minimize or correct a paniCs adverseconsequencescan all be indicated to him b the kind of consumer and market suvey we analyzedin this paper. He needs such a survey as a critical componentof his management tools for effective crisis management.

FEATURE

TheSamurai andthe Is it the title that makcsamcmager?

byReneT.Domingo ff n illuminatinganecdoteaboutone l{of Japan's greatest samurai swordsmen,Tsukahara Bokuden (L4m-I572), was related by Japan's foremostauthority on Zen Buddhism" DaisetzT. Suzuki,(1871-1%6),in his classic work ZEN AND IAPANESE CULTURE. Bokuden wanted to give the final test to his three sons after having trained them in the art of swordsmanship.So he put a pillow at the entrance to his room such that it would fall on the head of anybodywho touchedthe curtainupon entering.

. For the art of managementhas nslhing to do with solving problems- it has everything to do with preventing them: planning organizing,and controlling. The more problems a managersolves or thebusierheis with thesemeansthe lsss nnanesingnhe has done or has been doing- less planning less organizing andlesscontrolling. At most, what he is trying to do is damagecontrol.

TheThreeSons fhe eldest son was called first. I Before entering the room, he noticed the pillow right away, put it down,enteredthe room"andreturned the pillow to its original position.The second son was called next. He entered the room touching the curtain. The pillow fell, but he caught it with his hands and then carefully returned it. When the youngest son wascalled in, he rushedinto the room, the pillow fell on his neck, but he split it into trvo with his sword before it dropped to the ground. In passing judgment, Bokuden announced that the eldest son was a master swordsman and presented him a sword. The second son was asked to train more diligently. Finally, the youngestson was declared a disgrace to the family. This anecdoteshowsthat masteryof swordsmanshipwent beyond acquiring proficiencyin the techniquesof the art. The samecanbe saidabout the art of management,or any other art for that matter. A most sorlmon sight is the ever-busyand energizedmanager who attacks and confronts problems relentlessly and enjoys solving them. Uke the Bokuden'syoungestson,who feelspride and pleasurein the burst of pillowfeathers on his face ashe wields his sword this manageris a disgrace

Proper Phces and Timeg fhe true master of the art of I management,like the eldest son, avoids wielding and using the bag of managementtricks and techniqueshe has nastered by understanding and managingsituationsand relationships, rather than confronting and managing problems. He has this sxlrnoldinary sense of knowing and anticipating what canbring about disruptive situations; he corrects situations and not problems. With this knowledge, he puts eve4Dodyand everythingin their proper placesat the proper time- so that he doesnot haveto manage.Like the noblest victory of the master samurai, which is srilning without fighti"g or conquering your enemy without drawing your sword, the master manager, the professional n rn,aget, manages"without mrnrging." In many companies, we see numerousexamplesof nanagers, like the third so4 who mistakenlyconsider their daily problem-solvingfeatsasaccomplishments of exemplary managershipdeserdng a pat on the back and a pay increase. o finance managers performing daily an exciting balancing act called "cash-flow managementn running after over-due accounts receivable aad pnning away from o'er-due accounts and loans payable o production managersgaspingly trying to beat daily delivery schedules o personnel managers endlessly engaged in an arm-wrestling contestwith labor nnions,which we call nindustrial relations managementn o narketingmanagers desperately struggling to meet sales quotas during the last few days of the month. The busy managers above are not managing for they have no time to plan, organize, control, much less think. Like the third soq they enjoy splittingthe pillows and problemsthat fallon them.And this frantic schedule

will go on forever "tless they start managingand prevonting the pillows from dropping. Meslery of Death fl nother samurai anecdote of ttsuzuki is about a personal guard of the Shogun of Japan who went to see a master swordsman,Tajima No Kami, to be trained in the art of swordsmanship.Upon seeing the guar4 the masteraskedhimwherehe hadlearned the art of swordsmanship. Surprised,theguard explainedthat he had never learned the art anlvhere and he had come precisely to learn it from the master.Tajima insisted that his client was already a master swordsman, which the guard repeatedlydenied.

n...thedisappearingactan act donewhenthings go wrong becauseofyou and there is still time to vanishand get somebody elseblamed.n Finalln Tajima askedhim if hewas a master of something else, if not swordsmanship.After some reflection, the guard explainedthat sincehis youth,he realizedthatasasamurar,he should not be afraid of death in any situation. The thought of death had ceasedtoworryhim. He askodTajima if this mastery of death was the thing he was referring to. The ma$ter exclaimed that this was precisely what made him already a master swordsman,for the final test of swordsmanship, which many of his sword- proficient studentsfailed was overcoming the thought of death. f,sali?ing that the guard needed no further training from him, Tajima dismissedhim. Managersdo not actuallydie for the company unlike the samurai for his master;they just die manrg.g. But the samurai'smastery of death more closely corresponds in the art of managementto the manager'sacceptance of responsibility for his decisions and their consoquonces, whatever they may be. Thus, the ultimate test of managershipis not the amount of techniques, experience, and energr he hag but his complete

determination to stand by his principles and decisions in the company, oftentimes to the extent of sacrificing his future and neglecting his familn both of which could be worse than death.

EscapeArtistManagers thosewhom I lnfortunately, manyof |\Jwe call andpayasnmanagersn turn out to be escape artists especially 1ry[s1thingsgowrong.Theyhaveperfected only one trick through sheer repetition: escaping responsibility. There are two waln to perform this well-rehearsedstunt: o 1) the disappearingact- an act donewhen thingsgo wrong because of you and there is still time to vanish and get somebody elseblamed o 2) the pointing-finger trick what you do when there is no time to disappear becausethe curtain hasbeenraised"and you havetoblame (point afinger at) somebody, anybody, for your mistakes. Thesemanagersare true mastersnot of managementbut of savingtheir own skin; and their tribe is increasing.So nexttime you hire a manager,look into his eyesand not at his lips; he maybe an escapeartist who could ruin your company.But check again. You may alreadybe running a circus. P*tt"*.f@ MANII.ACHRONICLE.

From the Alumni RelationsOffice: lf you haverecentlymoved or changedjobs or you know of an alumnuswho hasrecently movedor changedjobs, please. sendthis information to EmyR.de Veyraat the addressbelow. AlumniRelationsOffice AlumniRelationsDirector AsianlNtituts of Mqnagement 123Pasoode Roxas Makati,lbtro Manila Philippincs

FEATURE

Study Financial Feasibility Traditional VS. StatisticalFinancialFeasibilityAralysis byAlejandino f. Ferrena fhrough the years,major investI ment,loanand/orcorporatedirection decisionshave,more often than not, been madevia the use of traditional feasibility studies.This approachto the decisionmakingprocess has been useful in identifying the feasibilityof the market,the best productioncapacityand technology and ultimatelyfinancial feasibility.In addition,the traditional processhas alsobeen appendedwith the use of sensitivityanalysis.This appended processwasthe changingofcertainasin order to sumptions/parameters evaluatethe impact of thesechanges on the financialfeasibilitvof the studv.

What is normally enteredinto the financial study from the five support studiesare the expectedor proposed best options. After the financial analpis process,the inputs are transformed into expectedprofits, expectedinvestmentsand thereforeexpectedreturn on investments. The traditional processemulates dynamismthrough sensitivityanalysis. Someof the expectedoutput assumptions of the five support studiesare

Fqure 1 - Study Relationrhips Qtrcry

What is the Traditional Approach? fhe financial studytraditionally inI vestigatesthe rate ofreturn after produci"g a proiectedcashflow statement.The financialstudyis supported byfive other studies.The five areasof study are management,marketing, technical,taxation and financing. The maior foundation of the five studiesis researchto find out what optionsare availableandanalysisto determinethe bestoption.The output ofthesefive studiesis a necessaryinput to the financialstudy.The output is utilized as assumptionsfor the financial projectionsin order to determinethe feasibility or profitability of the project.The financialstudyis reallya return on investment(ROI) analysis which takesthe initial requirementsof the project and comparesthis to the seriesof net cashgeneratedby the project availablefor dividendsor payback.In general terms, the five studiesearlier mentionedsupport the financial studyillustrated in Figure 1.

6 ''Tcrlfi*oft$es8

changedand the resultingfinancial processshowshow the ROI is affected. After a seriesof sensitivity runs, conclusionsare drawn on vfiich assumptionsare critical. What is Statistical Financial Feasibility Analysis? he statistical financial feasibility analysisprocessis structurally the

sameas the traditional process.The foundationsare the five support studies.The objectiveof determining feasibility 1fu'srrgha financial process is still the same.The measureof using the return on in'*estmentas a criteria is also unchanged. The basic difference is in the researchmethodologybefore fi nancial processingand analysisof the return on investment.In areaswherethe output of the frvesupportstudiesis statistical in nature, the researchand analysismust produce a probability d i s t r i b u t i o n i n s t e a do f a s i m p l e averageor expectedvalue.It mustbe acceptedhowever,that someof the output ofthe five support studiescan not be describedin a probability distribution. In suchcases,they should keep their current format. Figure 2 showsexamplesof the outputthatmay be expressedin probability distribution and thosethat shouldkeep their traditional format. The basiccriteria for the classificationis the uncertainty or certaintyof the researchresults.If the data is certain then there is no need to expressit in a probability distribution. The secondareaof major difference is the processbefore the financial calculation.Sincesomeof the output of the five support studiesareprobability distributions, thesecan be simulated using any of the availablesimulation techniques.Each of the simulated valuestogetherwith the output, which should maintain its traditional format, can be processedby the traditional financial processto computethe return on investment.The simplxliea processand financial processingof tleresults shouldbedoneatleastthirty times in order to emulatethe normal curve.This could be the initial sampleand usingthe return on investment asthe samplevariable; sampling size, accuracy and confidence level equationsin samplingtheory can be applied to determine the required

and the desired accuracyand confidence level. Basically, sampling theorywould indicate how nany times the simulation must be made in order to achievethe required accruacyand confidencelevel of the resultingreturn on investment. This approach clearly openstherisk analpis capabilityof the statisticalmethod.One must admit that two projectswith the samereturn on investmentsare not identical if their standard deviation or consistency with referenceto the averageare not the same.

Thebenefits of the simulationapproach clearlysurpassthe lmowledgeof the (Nerage ROI compoundcdwith sensitivityanalysis. Thisbrings us to the third major difference between the traditional approach and the statistical approach: Statisticalanalysisthat can be performed on the resulting return on investmentdistribution. Not onlythe er pectedvalue(averageor mean)canbe determined but also the median, mode,maximum,minimun, range, averagedeviationand standarddeviation. In addition the Return on Investment distribution can be presented graphicallyfor ocular risk analpis. The other usefulutilityof the process is the identification ofsuccessor failure factors.A rangeof ROIs can be declared omens of higb risk or almmt certain failure. From these,the simulation can be reviewed on what was or were the factors that caused these setsof low ROIs. Thesecan be labeled the failure or critical factors that can causethe project/investment to be a higher risk. In terns of management,thesemaybe the factors that may need verification and/or closersupervision. On the other hand, a range of ROIs can be declaredsuccessful.These are the successfactors or what is making the project/investment feasible or viable.Again in terms of management, these are the factors that may be insured to be true and if proven true would require less supervision.A simpleexample:To illustrate the comparison, take two project proposals being consideredasinriestmentalter-

natives. These are Project A and Projecl B. The traditional processis presentedin Erfribit 1. The resulting ROIs of 29.33Vofor Project A and 32Vofor Project B do not seem to be very different. However, the ROI is an average without any indication of consistency or deviation. Exhibit II is an exampleof the ap plication of this statisticalapproach. The differenceat oncewould be in the format of the output of the five sup port studies.The output insteadof being a single figure is a probability distribution. An application of simulation on the probabilities using the traditional financial framework generatesmore information about the two projects (Exhibit II B). In Erhibits III A & B and GrapbsI & II, the statistical analysisof the simulation are presented.Clearly, the two projects can no longer be viewed as similar. Project A has a lower averageROI but is also more consistent. The groupingof the simulated ROI is clser to the mean.ProjectB, althoughhavingn higfier ROI, is more

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muchmore risky the project is. Project B hasa chanceof havinga2VoR.OI but Project A has no chanceof having an ROI lower than 22Vo.Thegaphical presentation is only a duplication of the statisticaltables.Somereaders are more comfortable with graphs; somein the tables.Either way the analysispoints to the sameconclusion on risks. Whya LowROl F3"h Project can be further subfjected to causesof successor failure analpis. Basedon the simulation, the causeof a low ROI can be identified. For example,on Project B,

I the ROI of.2Vocan be traced to low volume and high nnit marketingcost. In reverse,the successfactorscanalso identified be through the same process.

Conclusion p o*?

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fhe benefits of I the simulation approach clearly surpass the knowledgeof the averageROI compoundedwith sensitivity analysis. However, the simulation approach requires more research and/or study prior to the financial analysis.This e$ra effort for research is a small input conthe sidering benefits of knowing the ROI distribution and the causes of success or failure.

rheFederation"tfi :,'fil,lHJ::tHril#*asementGArM) Will Hold its Annual Meeting SeptemberL5 - 17,1988 Theme: Small and Medium SizedEnterprisesand Businessesin DevelopingCountries Make plansnow to attend.For details,call orwrite any alumni associationoffice or contact:

EmyR. de Veyra Alumni RelationsOffice AsianInstituteof Management 123Paseode Roxas Makati,M.M., Philippines TeL 874G11 Teler 63778AIM PN

FEATI..|RE Womenin CorporateM anagement

Managers Gettingto KnowtheWomen of Sor.iineastAsia The project objectivesinclude the identification of successfulwomen managersin thesefive SoutheastAsian by hctoia BantugHoffarth and E. countries and the documentationof SorianoAlmaio their career strategies,managerial practices and experiencesin the fhe woman m rl.ageris increasingly SoutheastAsian managementenvirmI making her mark in Southeast ment.The intention is to identi$ facAsia's male-dominatedmanagement tors behind their successdnd to use scene.In a mannerof speaking,she their strategiesandexperiencesasrole hassearchedand found an executive nodels for otherwomenwho equally room of her own, notwithstanding desire to advancein their careersin suchobstaclesasworking conditions corporates.sftings. oriented to male behavior,lack of Suchmodelswill be usedin der'elop femalerole models,and socialvalues ing training materialsand workshop which discouragethe participationof designsfor managementdevelopment womenin corporatedecision-making. programs,both for womenmanagers All thesemake her- the Southeast who aspirefor careergrowth and for Asian woman manager- a policlmaken in firms which employu phenomenonwhich demandsstudy. areplanningto employmorewomenin What are her dreams and aspiramanagement. tions?How did sheget to rvheresheis Finding a paucity of background innovf How doessheperoeira herself? fornation on SoutheastAsia'swomen What are the opportunities and conmanagers,the project undertook a straintsshefaces?What makesher purposive surveyin order to draw a career path different from her male working profile of womenmanagers. colleague"s? What are the trade-offs This paper is a resuft of.that survey. for corporate success?What role does she play in thp fastest growing region Retncing the Regearch Steps of tlieworld? The challengeof answeringquestions ln 1985,the WMBO project team like theseled a group from the Asian lbegan to compile listings of Institute of Management(AIM) to SoutheastAsian women managers conceptualizea project and to seek who could serveas surveyresponfunding from the CanadianInternadents.The dethbd usedwas multitional DevelopmentAgency (CIDA). tiered. With defined sucoesscriteria ensuringseniority in position in companies w.ith a minimum of 100 proje The result is the ct Women Managersin BusinessOrganizations employees',the team solicited nominations from rrarioussourcesin(WMBO), a five-country cffort that aims[e promote the developmentof cludi"g the AIM board of governors and alumni chapterq multinationals, Southeast Asian women for chambersof conmerce of various managerialleadership in Indonesia, countries,andeditors ofbusinesspubMalaysiq Philippines, Singaporeand lications. The lists generatedconThailand.

tained multiple mentionsand were also consideredinsufficientfor large sanple survey.The namesin the lists were consequentlyaugmentedwith nemesgeneratedfrom businessdireccorporateantories,trademagazines, nual reports, andtelephoneinterviews with officers of personneldepartmentsof large corporations.Included in the secondli5ting were womenperceived to be occupying senior and middle managementpositions. From the masterlist of closeto 3,0fi) names, 890 corporate women managersin the five countrieswere sent surveyquestionnaires.They were chosenon the basisof seniorityof position, industry, and functional (i.e. marketing,finance,production, etc.) representation.A total of 343or S.SVo of the recipients sent back completed questionnaireswhich took aslong asan hour to answer.Sucha high response rate may be an indication of the respondents'keeninterestin the subject of the study,andin their sympathy

for the objectivesof the project. Segregatingprofessional corporate managersfrom the entrepreneursand thosewho worked in firns mmed by their families was not an easytask. Thus, somemembersfrom the latter groups were inadvertentlyincluded in the sample.As a result, of the 343

Scniority of pcition was dcfiaed as folloq6: If thc managcrbclonged to a smalt conpaly (100-500emplqrccs), shc ehould bc the chicf cxccttive officcr; if hcr companyrns largc (orcr 5([ empkryecs),sbc should bc at lcast thc cxccutirrcvicc prcsidctrt or its cquiralcnt, ot should rcport dircctlyto thc cxccutiw vioc prtsidcnt or its e4uiwbat" In additbq thc nomincc's busiocssorganizr6ra .*, * highlvisiblc in thc long tctm. Hercoorpcnsatioo must bc high cnough to place bcr in thc uppct incomc brrkct in hcr ommunity.

respondents, 275 were corporate managers,32 were enhepreneurs,and 36 worked in their families' corporations. Sincethe study only wanted to target professional corporate managers (it was decided that entrepreneurs,for instance,had different concernsand shouldbe subjects ofa succeedingproject), the protocols of entrepreneurs and those who worked for their families'firms were excludedin the analysisof the data. This brought the total samplesizeto 275. Of these, 62Vowere senior mattagersand the remaining38Vowere middlemanagers. In termsof residence,29Vowerefrom the Philippin es;BVo from Singapore; ZlVo from Thailand; 15Vofrom Malaysia;and 13Vofr om Indonesia. Notes on the Presentation ls there a typical SoutheastAsian f corporatewomanmanager? At best, the answeris a qualified yes- if the idea is to draw a composite picture of the subject.To be sure, creatrngsomekind of a stereotypehas major flaws. Nonetheless,such a simplification has its neritg foremost of which is that a vivid image can be formed in the mind x1d s5ily recalled A compmite picturewill thereforebe presentedhere, drawn on the basisof dominant clustersof responsesto specificsurreyquestims. Readerswho wish to know more detailed breakdoqns canwrite to the Institute for additional informatim.

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PersonalProfile isthe"typi1f,lhat kindof a person

UU cal" SoutheastAsian corporate womenpanegâ&#x201A;Źr?Sheis young 31-40 yearsold, believesin a deity, holds at least a university degree,and can apply at virrying degreeswhat she learnedin schoolto her work. One out of frvc chances,academically,she excelled enougb as to enjoy a local or foreip scholarhsip. Shelikely grew up with four or more brothers and sisters, and as such,she musthavelearnedearlyin life thevahp of sharing and getting along with others.In termsof birth order position, sheis likely to be a middle child- that is, neither the eldest nor the youngest in the fanily.If the middle birth order position is disaggregatedinto second,

third fourth, etc., however,it may be said that shetendsto be the eldestin the family. She is more highly educatedthan both her motherandher father.In the caseof the Filipino, her father had a universitydegree;not so in the other countries. The SoutheastAsian womrn manager- but again,t\is does not apply to the Filipino managerwas typically raised by a full-time housewife-motherwho did not obtain a universitydegree. It is interestingto note that, while the middle classin SoutheastAsian societiesis still a relatively minor segment of the populatioq itwas probab-.

ly the countries'middle classwhich nurtured her and shapedher values early in life.

Memoriesof Youth fl mong her experiencesbefore l{reachingtheage of 18,thefactthat shewasintroduced to hard work early in life standsout: she had hard-working parents and studied in schools which stresseddiscipline and hard work. But even if she remembersa childhood filled with responsibilities in the home, and parents, especially mothers,who were disciplinarians, she nerpr doubted their affection for

her. Outside the home,shewasallowed only restricted novement, but within iq sheassistedin the planning, budgeting, or supervision of householdaffairs. In her youth, shedreamedof becoming "importantn someday.At 18, she thoughtsheknew what shewantedout of life. As to whether sheis now doi4g what she would have wanted to do theq the likelihood is only four out of ten. Did she everseeher future asthat of a wife and mother?Not quite: only oneout offour chances.

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At Work 11;hich types of businessnurture U U the SoutheastAsian corporate wom:rnmanager?While the searchfor her wasa purposiveone,ensuringthat different industrysectorswere represented,the fact that shedid showup in thesesectorsindicatesthat shehas a rightful place in the managementof any type of business.Without this selectioncriterion, howevef,she would likely havebeen found in banking and finance. Furthermore,reflecting the traditional role of the Asian woman as keeperofthe householdpursestringg shetendsto havecorporateresponsibilities involvingfinancial management. Shehas ten or fewer direct sub. ordinates.Her Thai colleagueis a notableexception:usuallyemployedin very large companies,the Thai managerhasa wider spanof control. Interpreting herbasicannualsalaryis hiclry, and, like most questionson income,requires a more cautiousapproach.In U.S. currencyterms,her SingaporeanandMalaysiancolleagues arethebestpaid in SoutheastAsia Sinceher husbandearnsa comfortable income himself, the Southeast Asian woman manager'sprimary reason for working is not economic considerations,but rather, psychic satisfaction.Sheworks becauseshe finds pleasurein accomplishment.Sbe also seemsto have a high need for financial independence. Outside Work Southeast Asian woman fhe I manageris typically married for 10-19years (except for her Singaporeancolleaguewho is generally younger and has been married 1-9

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#* years).Ifshe is single,a 50-50chance, sheis still aspiringto get married. Her husbandis typicallya universitydegree-holder.Shehasonlyone or two children, a stark contrastto the big family shecamefrom. If shehappens to have no children, again,a 50-50 chance,sheis still hoprngto haveone. Sheliveswith an extendedfanily and hasadditional support in the form of domestichelpers.

perown assessment, she possesses sonnlvaluesthat matchwith the values ofthe organization;she activelycultivatesa netwuk of contracts;sheuses a personalizsdapproachto employees under her supervisim althoughsheinsistson finishing a task evenif it displeasesdhers; and sheworks beyond regular office hours.

Management Practiceg

Perception of Differences BetweenMenandWomen Managerc

ime is a direct input to the woman manager'smanagementpractices, and companybusinessdoesexacta great toll on her waking hours. She averagesapproxirnately9.6 hours per day working on companybusiness. Relegatedto lessthan two hours each are activities related to the family, housework,educationand recreation. The Southeast Asian woman managerhasa set of nconstantsn in her managementpractices,whether she comesfrom Indonesia,Malaysia, Philippines,Singapore,or Thailand. Across countries,her management practices are highly consisten[ in her

he typical woman manageris upbeat when shecomparesherself to her male colleagues.In her view, the supposeddistinction betweenthe potentials of men and women in managerialpositions is overemphasized.A woman is not necessarily too emotional to become a good managerand neither is shenecessarily lessskilled6 fu6rllingwork-related stress.Moreover,to succeedin maledominated organizations,a woman need not behavelike a man, sheonly hasto fight for her rights. Sheprobably would also haveto be more competentandwould havetoworkharder

if shewants to keep pace with the progressof her male colleagues.Stil[ shebelievesthat in due course,people who are good in what they do regardlessof theirgender will receiveproper recognition.

Obstacles to Corporate Success lor everySoutheastAsian woman I managerwho seesobstaclesto her queer development,there is another who seesnone. More often than not, the woman manager who sees obstaclesattributestheseto the work situationrather than to herselfor to other circumstancesoutside herself and her work. Moreover, shestrongly believesthat her efforts alone are not sufficientto removesuchhindrances. In the work situation,sheperceives the obstaclesmainly aslimited oppatunities for advancementand as sex discrimination.Suchperceptionis particularly strong in the caseof the Malaysian and the Singaporean women.The Indonesianmanageris most emphatic about her inability to resolveher personalconflict with respectto the role of women. As far as obstaclesoutsidethe work situationaswell x5!e1 eqralimitations are concerned,lack of time due to domesticresponsibilitiesand limited personal finances stand out prominent$."

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: Moving Up the Corporate ladder

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perceptionof the SoutheastAsian womanmanager,the support of her bossor "mentornand the contacts madethrough work are the leading determinantsof success.To the Filipino manager,contacts made in schoolhave a perceptible impact on succeis,perhapsbecauseshespent relativelymore time in schoolcompared to her counterpartsin the other four countriesand wasthus able to establish longerJastingnetworks among dumni. More than such personality traits as assertiveness, or personalvaluessuch 2

Qucstion/s regarding husband'ssupport was inadrcrtently left out in the guestionnairc but was unirrerrally mentioncd in the succeedingdcpth intcrvicws as a basic factor fo'r corporatc Eucccss.

LetUs Help Shape Your Caieef... ashonesty.Hard work, competence, and talent are perceivedto be the irreduciblepersmal athibutes a woman must haveto succeedin the business world. The Indonesian managerconsidersnatural talent supremeover hard work and competence.The Filipino managerputs a premium on competence.For the Malaysian,Singaporean,and Thai managers,it is hard work which counts most. Whateverthe ranking in eachcoun'try, the typical SoutheastAsian woman managerbelievesthat talent, competence,and hard work are the minimum necessaryconditionsfor success. Oneneedssomedegreeof talentto be competent,and hard work is simply competenceapplied What doesnsuccessn meanto the womancorporatemnnager?The factor which accountsmost for her personalsatisfactionis career success. Fulfillment of family needscomesasa distant second. Moreover, while rating herselfin the upper half of the career "success"ladder, andfeelingrelativelysatisfiedwith the degreeofher succesgshestill feels shehasnot reachedher limits of success,that there is room for stretching out if shewishedto aspirefor it. Thus, for happinessand personal satisfaction,the SoutheastAsian womanmanagermust first of all have inher careerwhichshedefines success as a senseof fulfillment, more than power, wealth, or prestige. Her motivationto riseup the corporateladder is thus self-propelled.

WhatPraceSuccess? 6uccess however,is not all utopian. rJShe clearlvbelievesthat it has a price. Trade-offsmost often comein terms of lessthan ideal family relations, or she can eran miss the option tomarry.Indeed,out of tenwomenexecutives,sevenare married, two are single,and one is either divorced,

The Placement Office Offers The Following Services: Career ResourceI nforrnation Mid-CareerPlacement Couruelling and.Career Pafteming B wine ss Partnership D eveIopment We have a regional network of prospective employersand joint-venture partnerswho would be pleasedto receiveyour updatedresume. For inquires,urite or call: SusieT. Arroyo Directorfor Placement AsianInstituteof Management 123PaseodeRoxas,Makati,MCCP.O.Box898 Makati,MetroManils,Philippines Tet 87-40-11 Telex63778AIMPN - CableAddress:AIMANILA separated or widowed.A third of corporate women managershave no children. nCareeror Homenis thus a label which convenientlycapturestle conflict that shemayfaceasshedecidesto work hard in the world of corporate managers.However, shehas friends who somehowstrike a balancebetween home and careerand end up rusces.lingin both. Relatiresin her extended household,aswell as readily available and inexpensivedomestic help are sourcesof support denied manyof her Westerncolleagues.Especiallyif sheandher husbandare'oun& chancesare her husbandhelps with domesticchores. Epilogue This article hasbarely scratchedthe I surfaceof the work which must be done to truly understand the

SoutheastAsian womanmanager.Already, the project staff is preparing another paper which will compare senior managers with middle managersto gaugethe similarities and differences in their demographic backgrounds,managementpractices and attitudes towards their careers, etc. Crosstabulation and correlation of certain factors "1s nll5sSsing done. Casestudieswhichdocumentthe experiencesof 30 seniorwomenexecutives in the five SoutheastAsian countries havebeen prepared,along with teachingmaterialsfor seminarsm women in management. Again, funded by the Canadian government,a textbook on womenin managementin SoutheastAsia is due for publication this year.AIM continues to offer seminarswhich target women niddle managersas well as corporate policyrnakerswho plan to integrate women in higher management lwels in their cmpa"ies.

FEATURE Wionaries and tinl<cren...

TheAnatomyOf An

Entrepreneur

by EduardoA. Morato, fr. escribingwhat an entrepreneur is would be, at best,an exercisevery muchlike the story of the blind men of Hindustan who, upon touching different parts of an elephant,qrme up with asmany descriptionsasthe parts they felt with their hands.One upon touching the trunk said it was very much like a snakewhile another embracinga leg thoueht it wasa pillar. Still another flapping an ear proclaimedit wasa fan...and so on. There are theoriesupon theorieson what makesa good entrepreneur ranging from Freudian models to characteror personalitytraits. Tests of entrepreneurialquotientsare even beingbandiedaroundaspredictorsof entrepreneurialsuccess.Yetmany rerynize that different types of businesses, or occupationsfor that matter, attract a potpourri of personalities. And there is no oneuniversalbusiness or occupation.So how can there be oneuniversalentrepreneur?A chemicalplant might turn offan accountant, while a stockbrokeragehousewould be boring for a nuclear physicist. A mechanic'alengineer might love inventinga new machinehe could sell to a great number offactories but an artist would be inclined to set up an advertising shop. Their temperaments and styles of managementwould probablybepolesapart.Or theymighl not. Who knocxs? In my researchon entrepreneursand enterprisedevelopment,I found a rich spectrum of personalities.The businessesthey ran seemedto be personalityextensionsof themselves. Their motivationsand objectivescame from all sortsof directions.Somewere just plain bored with their lives,others obsessed!There were angryyoung men and genteel retirees. There were visionariesand tinkerers. Having made that caveat,allow me anywayto contribute my two-bits to what makesan entrepreneur,keeping

in mind that I an describingdifferent parts of an elephant.In this caseI will use the metaphor of the human anatomyfor it is much more apropos to the task. Self-discoveryof a brilliant idea is what we may call an insight. It is the missinglink that puts a complexpuzzle together.It is the quintessential thoughlthat creststhewavesofthinkingpatterns.It is aburstof light,a sudden realization that a solution to a problem can and will work. It emanatesfrom man'sanalyticand c r e a t i v e b r a i n p r o c e s s e s .T h e entrepreneur oftentimesstarts from such an Insight.About himself. A situation. A technology.An innovation. A market need.A project idea that translatesinto a businessventure.

The entrepreneuris a communicator.He is able to sell his ideasto financial backersor skepticalconsumers. Theentrepreneur is an insightfulman. He is filled with imaginationand wonder.He generatesideasthrough brain processes u&ich utilize both the left side (analytic) and the right side ( c r e a t i v e ) o f t h e c r a n i u m .T h e entrepreneuris onewho brings his expertise, knowledgeand technical prowess together in a thriving enterprise. The entrepreneuris a man of hidttydevelopedsenses.He JeeJopportunities, smellsdangers andhears a slampedea mile awayby keepinghis earscloseto the ground. He is able to discern true gold from falseglitter. He can sniff the lethal effects of poisoned brew as well as savorthe fragranceof goodvintagewine. He listensto learn and to know.A blind man from Hindustan might saythat the entrepreneuris very much like a pair of eagleeyes,a bloodhound'snoseor an elephant'sfan-sizedears. Theentrepreneuris a communicdor. He is able to sell his ideasto financial backersor skepticalconsumers.He developsfriendly contacts, reliable suppliers and loyal buyers.He is sociable when socializing silent when uncertain, glib when provoked, laconic when cautiousand oratorical when formality prevails.

The entrepreneurhas substanceor body.His enterpriseis supportedby a good organizational network, firm bonesto holdup a strongbody.He has a good circulatory systemfor the free flow of ideasand products.He is wellmuscledfor the long hard struqglefor market share and profits. He has a good product physiquethat attracts customers.He hasa solid rib cagethat envelopesvital organslike the heart and lungs.The heart is vital for longrun commitmentto work and the lungs essentialfor enterprise sustenance. The entrepreneurcan stomachmost crises.Hehas the guts to do things beyond the usual cry for iust getting things done. One thing about the entrepreneuris his ability to grapple with uncertaintiesand the crueltiesof a harsh environment.He is able to tame riskswith his determinnlisnan6 single-mindedness. He has courage and endurance. Theentrcpreneurisa doer.He works well with his hands.He is not afraid to get them dirty in the shop,wipe them clean and extenda firm handshake. The handsput him in touchwith his surroundings.They feel the situation for more down-to-earthassessments. The entrepreneur'shandsmold his drerms into tactile realities. Then there is the entrepreneur's basic libidinal drive which allows him to multiply his resources,expandhis businessand produce new ventures. He is driven to seekchallenges,explore opportrrnities,risk hisfutureand hope for the best even in the face of greatodds.He daresto penetratenew markets and filter environmental changes.He is a completeperson, bothyn ndyong. He hasthe aggression, abstractionand passionof the maleand the patience,meticulousness and tendernessof the female. The entrepreneuris mobile and flaible. He has legsand feet that permit locomotion from one product to another,one marketto the next,from small to large, singleto complex,and operations to strategy.Locomobility getshim going. Finally, the entrepreneurisan advenurous spiril spa*ed by highlyahatgd missionsand visionsto innovateand succeed.He is the soul of the enterprise, the primordial life force that createsthe venture of his dreans.

PhW Ellaluico, MBM'73

Taminqthe AgraridnTiger ffgrarian reform policyin the ItPhilippines hasbeencalledmany things,but it has rarely been called fair. The controversyassociatedwith redistributionof lands and the development of an equitable policy with which to implement reform promiseslong days,short nights,and endlessexplanationsto angryowners and farmers. When PresidentAquino selected Philip Ella Juico to head the department,sheknewthat thejob requireda hard-nosedmanagerwho retainedan understandi.gof the delicaterelationshipsthat hadto be re-established and maintainedin order to successfullv carry out true reform.

Natural Resources,as staff coordinator and director. He was also responsiblefor policy formulation and monitoring of programs such as the Masagou 99 and the preparation of project proposalsfor grantsand loans to support suchprograms. Following this first stint at government service,Popoy returned to the private sectorasvice presidentof International Food and Agricultural ResourcesManagementServices,Inc. (Interfarms). He also held positions with Asiaphil FisheriesCorporation and TransnationalAgri-system"Inc. He was assignedto the Federal Republic of Nigeria asa consultantto assistin the establishmentof two, 5,0(X)hectarelowland rice farms and

Results-Oriented Management

lr i t

Elopoy, ashe is called at AIM, was l-setettea to lead the government program ofredistributing lands to the landlessand creatingssystemsand structuresto support the reform program.He sayshe acceptedwhat manycpnsidera largelythanklessjob b e c a u s e ," I b e l i e v et h e p o s t i s a managerialchallenge.The government neededsomebodywho could pushtheprogramasa results-oriented fish farms at 17 siteswhile in the managerand not asa socialcrusader.n private sector,further strengthening The "wallsof division"that Popoysay h i s u n d e r s t a n d i n go f i s s u e sa n d appearto divide the friends and foes processesrelated to agrariandevelopof agrarian reform will be tough to ment and reform. . scale.Notable amongtheseare, "the He has also managed similar wall of historical prejudice that surprojectsin Sabahand Papua,New rounds the conceptand useof private Guinea. As general managerfor property and the wall of conflicting Management and Investment desiresbrouoht aboutby the clashing DevelopmentAssociations,Popoy interestsof landowner,tenantfarmer developedmarketsfor consultingserand farm worker.n vicesin the Asian Developnent Bank, the World Bank, USAfD, government DAR's new director cameprepared, agenciegand private organizations.In however,with many of the tools and 1986,he worked with the Cory Aquino experienceshe will need to tear down Media Bureau as associatedirector. the philosophicalwalls which have preventedtrue reform in the past.In addition to his managerialtraining at The First Six Months AIM, Popoy previously servedin governmentunder Arturo R. Tanco, /f fter six months at DAR, Popoy former minister of Agriculture and frlsays his immsfinte tasksinvolve

nputtingpeople in the right place. Rigbt now, we are strengthening our internal structure and capabili$. We are engagedin institution building. That meansbuilding up the morale of our peopleat DAR, too.n This process has involved the developmentof policies and structures for effective coordination of monitoring and evaluationactivities amongthe variousagenciesassociated with agrarian reform, institutionalizing project planning, streamlining operations procedures, and desentrelizingmanagementactivities. Popoy has also involved non-governdent organizationsand private institutions in the implementationof the ComprehensiveAgrarian Reform Program. Within the first 100dap of his move to DAR, the department had distributed 325hectaresof the 1,645real propertiesof the IndependentRealty Corporation. Redistribution of 300 hectaresin the Jala-JalaEstate is planned, and another 320,000hectares under DAR control havebeen referred to regional and field offices. Registrationof all agricultural land ownersbeganNovemberL?lastyear. The information gathered through this registration processwillbe usedto assureeffective and tair implementation of land ownershiptransfer.To familarize landownersand farmers with DAR programs, Popoy has launched a major media campaign and organized workshops in the field for administrators from all agencies workingwithDAR. More than Philosophical Walls ff ecauseof the controvery asIJsociated with agriculture and agrariandevelopment,Popoywill face more than philosophical walls as he endeavorsto accomplishone of the most difficult tasks assignedto a governmentofficial by the administrxtion. Thosewhich mustgivetheir family landsup will invariabtyfeel that they ftavsfo6snmistreated;but sowill many of the recipients of theselands,who will probably feel that they havenot been given enough land in the right places. This is the reason PresidentAquino needs a tough manager capable of maintaining delicate relationships; this iswhyshe chosePopoy.

Ansaldo,MBM RobertoW. 71

Taminqthe

$gffil*riser: fiver at the Agriculture DePartLfment, things are changingquietly but significantly. The department'sthrust hasundergone a radical shift from the impersonal and general goal ofniucreased productivity to achieveself-sufficienc/ to the personaland specificgoal of "makingfarming profi table.n This is not a simple caseof changing slogansfor a basicallyunchangedmission.The missionhasbeenfundamentally altered. Re-evaluation of the departnent's twenty-yearwork calledtheM asagana alrdtheM aisaganademonstratedthat the food production progran did result in rice and corn sufficiency.But it dso demonstratedthat the farmer neverthelessremained mired in poverty. "This is one of the great ironies of modern agriculture and the Green Revolution- the farmer produced more but remained aspoor as ever,na ranking governmentofficial has said.

TheMission: flresident Corazon C. Aquino has F erpressedthe uerl drssron ol the Agriculture Department clearly: nln agricultrue,the role of the government isto create an environment that will make farming pay for the farmer.n Implementationof the new mission hasrecently shorm tangible results: o The dismantlingof the fertilizer monopoly madefertilizers forty percent (qVo) cheaper. o The price of copra more than doubled from P2.CIto P5.40per kilo. o The price of corn increased from P2.00toVL.90per kilo. o People's councils were formed all over the country making the farmers participants in decision making.

The results are the product of docisivestepgborn of clearly setgoals and carefully developedstrategiesby RobertoW. Ansaldo(MBM'71), Undersecretaryof Agriculture, and his staff. Describing how AIM helPed prepare him for his presenttasks, Bobby says,nI learned how to think logically and howto set priorities in the face of the magnitudeof the work and pressuresfrom all sides."He added,!I wastrained how to be results and people oriented.n Ample preparation for the task at hand now is also credited to his previous involvementwith private sector agricultural firms. He handled projects for the displacedfarmers affected by the unrest in the southern Philippinesin the early'70s.Until January, 1987 Bobby was with the Ayala Corporation where he was the executivevice president and chief operating officer of the corporations agriculture subsidiary,the AYala Agricultural DevelopmentCorporation. Although Bobby admits that he neverwantedto work in government, he had never ruled out the possibility "I that he migh1. had a feeling I would work in the government,but it simply never(rccurredto meinwhat capacity. The idea had been hovering at the back ofmyhead. Thus,when Speaker Mitra told me about it,I thought, probably this is it. "After a good soul searching,I decidedto go into public serviceand contribute my two cents'worth prirnarily because of President Aquino. "Shehas all the integrity the country needsto lead the nation back to normalcy and recovery; without which, everythingwould be a sharq" he said. The initial political and econonic changesinstituted by the President sincc sheassumedthe presidencyon February 1986haveinspired Bobbyto work for the governmentwhich has, since then, promised to better the plight of the farmerwith increasednet income- a significantdeparture from the previors government'semphasis on increasedfood production only.

GettingDownTo Business

planning under Assistant Secretary Sonny Estacio, Agribusiness under AssistantSecretaryPelayoGabaldon, and foreign assistedprojects under AssistantSecretaryTon Mercader. Together with the National Agricul-, tural and Fishery Council (NAFC) of which SecretaryDominguezis himself the Chairman,he helped imPlement thebottom-up approachin the planning processthereby involvingthose the Department is suPPosedto serve- the farmer. The NADC, sixtY percent (60Vo)of whosemembers comefrom the private sector,is an advisorybody servingas a consultative and feed-backmechanigmfrom the lowest level to the toP decision makers. Bobbyfirmlybelievesthat it is not the government'stask to earn incomebut nGovernment the private sector's. should send the signals,regulateactivities, provide incentives,createcorrect approacheswhile the private sector respondsto the call, and imPlements accordingly in the field," he stressed.He further added that becauseof the magnitude of the work, the governmentcan onlYserveas a conduit, while the private sectorwill hare to be largely dependedon to get thingsdone asthe engtneofgrowth. Another of the current Programs by Bobbyis the Farmer's spearheaded Profitability Campaign intended to makethe farmer the nain concernof the Department,which hascommitted itself to the increaseof the farmer'snet incomefrom a lowly P1,335Permonth to at least P2,000by l9V2."Kailotgor htmita angmapasoko"nhe stressed.

PeopleAreTheKeyTo Success fhe program, with the participation I o f t h e p r i v a t e s e c t o r ,i n d e e d echoesthe central thene of the Aquino governmentmaking agriculture the flagship for the growth of the Philippine eoonomy.Bobby believes that introducing the discipline of businessis crucial to his successand that nsystems of tf,e programshe nanages. don't nake things happen; neither do they prevent 1fiingsfrom happening. People do." BecauseBobby surrounds himself with people who 6alse things happeq the potential for successfullyraising farm income is probablygreater than it has ever been.

Bl':J::?tfr""i:fi sii"y:tT

"'f

AIM DEVELOPMENTS CareerDevelopmentAdvisoryPlon (CDAP)

Career to lncorporate MMAdmissions Planning by GabyRqnoso I l u c h h a sb e e n w r i t t e n a b o u t I U I managelslscoming squarepegs in round holeswhen their areasof responsibilityare matchedwith tasks that are above or below their competence.Prof. Dale D. McConkey, writing inBr sinessHoimns expounds on this prevalent problem, nConventhat a manager tionalwisdomsuggests is a managerand therefore can be assignedto anyjob as long as he or she is competentto perform thatiob. This wisdomhasa high degreeof validity. However,it could be a great way to wastemanagementtalent and would result in many managersworking above or below their competenceif not properly applied. Management competenceand experienceshouldbe matchedwith corporate strateg5r." Matching managerialcompetencies and experience with corporate strategyis what the Asian Institute of Management'snew approachto admissionsscreenirgfor the Mastersin ManagementProgramis intendedto achieve.With the introduction of the Carder DevelopmentAdvisory Plan (CDAP), Horacio Borromeo,Jr., associatedeanfor mid-careerprogramE believes that "AIM will be given a chanceto be a true partner in management development.n Personalized Preparation Plan partnershipthat AIM !)artof the f wishesto cultivate is a guarantee that all investmentsput into the developmentof a managerare sound and convincinglybeneficial. Companiesinvesting in a candidate in the MM programwill obtain from AIM an evaluation of the candidate's preparednessand qualification for graduatemanagementstudies.Candidates found to qualify for the programwillbe invited to enroll while thosewho, for one reasonor another, do not qualifywill be provided with a

personalized preparation plan. Not qualifying for an MM program can meanthat the candidatedoesnot possesssufficient knowledge, for example,in accounting a basicbut important area to a manager.Thus, under the personalizedpreparation plan" such a candidatewill be advised to study accounting through a preparationprogramCDAP will outline specifically for him or her. Personalizedpreparationprogramsmay be availedof with the assistanceof the compan/s humanresouroeor personnel departrnent.Satisfactorycompletion of thesepreparationprograms, providing all other quali$ing criteria havebeenmet, assuresan invitation to enroll in the MM program. Why are we sending them to

schoon tl\DAP ultimately aims to assist Vcompanies in focusingtheir investmentsin managementdevelopment toward better c:ueer planning. According to Borromeo,it is wisefor conpaniesto assesswhat theywant out of their managerswho attend graduatemanagementstudies.Focusing on what and where the company will be five or ten years from now should also include a fine-tuned view at what skills and competenciesthe managerswill need to possess. However,manycompaniesfail to tap the vast potentialities any manager may possess.This brings to mind the story of one companywho in order to survivehad to downsizeits departments.It didn't takemanagementlong torealizn the follyof letting one of its junior financemanagersgowho afterjoining another company(a competitor at that) proved tobe abrilliant marketing manager.We do not have to go on further to stressthe point, much lessto say,where the company really failed. But there are more than a few conpanies that have failed to survive becauseof their myopic ap-

proach towards fully tapping their human resources. Do we have such people? 1f, conpany takes fewer risks bY, Aeven at an earlystage,pinpointing employeeswith managerialpotential. CDAP is equipped with a seriesof elaluation and feedback mechanisms that test how well the companyhas recognizedits potential manager talent pool. The processbeginswhen a c o m p a n y s e n d sA I M a l i s t o f employeeswho have higher-level managerialpotential, and who they wish to send for graduate managoment studiesimmediately or in the near future. During this phase,the companymakesexplicit careerplans for the candidate.While the candidate is enrolled in the MM program,the companycontinuesto receiveevaluation and feedbackfromAIM on his performance.This will allow the company to monitor the candidate's progressand eventuallyplan for his return in the company. The feedback nechanism by no meansservesa one-waypurpose.The CDAP is designedin sucha way that after graduation, feedbackmay also be obtainedfrom the companyon how well the MM program met the compan/s expectationandultimately, servedits needs. The dichotomy is an obviousone: a companythat fails to acqirirethe kinds of managersit will needin the future has, in effect, failed to outline a blueprint for survival. Whereas one that investsin the developnent of its managerstakesonlesser risks andimprorâ&#x201A;Źs its chancesof meetingoppor' tunities head on. FoTAIM's part, Borromeo aptlyputs it, \Mewant to makesurethatwhen a company invests in a candidate, they knowu/hattheywanttoget out of that candidate.n Interested companiesmaywrite to AIM's AdmissionsOffice for application forms to the CDAP.

-ALUMNI

AND FACULTY NEWS-

bers and two Indonesian guest s p e a k e r s .T h e m o r n i n g s e s s i o n speakers,AssociateDean Horacio Borromeo Jr., and ProfessorsGabino A. Mendoza and Leonardo R. Silog presentedvariouskey successfacton in organizations.Inthe afternoon,Mr. SarwonoKusumaatmadjaand Mr. Dorokjatun Kuntjoro-Jakti spokeof topics beyondthe corporatereelm to discussnational economic and political affairs. In his lecture titled StrategyForpart of the Institute's thrust for /f s nulation and Implementation, Flcontinuing educationevenoutside thewalls of the traditional caserooms, ProfessorMendoza pointed out that organizational success can be the IndonesianChapter of the Alnmachievedby developing a corporate ni Association recently sponsoreda strategywhich matchesavailable one-day conference open to all its resourceswith market opportunities. membersand guests.Mr. Robby He likewisestressedthat resources Djohan, the chapter chairman and market opportunities are dynamis and managingdirector of PT Bank Niaga, and that they are influencedby the wasthe movingspirit behind the event. level of the company'ssenseof social Hewas ably assistedbyTina Ferroros responsibility aswell asby the values (AMMP'82) to which the top executivesare oomHeld at Lembaga Pengembangan mitted. Perbankan Indonesia (LPPI) in Professor Borromeo spoke on Kemang,Jakarta on January 15,the manrgirngpeoplein organizations.He affair wasthe first of a seriesof seminar-type homecomingconferences naintained that people-handlinggoes beyondthe notionsofleadership and that the chapter intends to conduct. morale; ratler, it derivesfrom the key Significant,too, wasthat it wasthe first area of corporate strategyand imtime for the IndonesianChapterto plenentation. He emphasizedthat hold such a meeting under the nhunan resourcemanagement and auspicesof the Federation of Asian derelopment require a clear shategic Institute of Management(FAIM). rationale from top managementas Some100AIM alumni and special well as its conscientiousand skillful friends attended the lectures application down the organizational delivered by three AIM faculty memhierarchy."

Alumni meet with Mendoza" Bonomeo, Silos

Jakatta

!omecoming @nfercnoe

An innovation on the Western concept ofbureaucracy,which he called the nClannwasthe topic of the discussion of MBM I Faculty Chairman Leonardo Silos.He contrastedthe Westernand Oriental versions,and the implied sienificanceof the model of the clan to Asian values.nAlthoueh ancient in practice, the clan is a new concept in organizationaltheory which could be used as an alternatira m o d e l t o W e s t e r nb u r e a u c r a t i c rationalization.nAs such,he proposed that the clan theory be givenmore seriousattentionby Asian managers, it being more akin to indigenous valuesand perspectives. The Indonesianalumni were given a candid presentation of national economicproblemsand prospectsby Mr. Dorodiatun Kuntioro-Jakti, renownedeconomistfrom the University of Indonesia.He spokeof the parametersand variablesthat generallyinfluencethe situations, providing the audiencean updatefor businesspotentialsand development in the 1990s.On the other hand, Ir. SarwonoKus 'maatmadja,Secretary General of GOLKAR, delvedon socio-politicalbehaviorin Indonesia, thus conplementing the overall assessmentof the national scene. The talks were followed by an open forum moderated by Mr. Robby Djohan, and I!ts. SusieArroyo, AM director for placementufiile Alumni Relations Director Emy de Yeyra servedasthe master of ceremonies.

Singapore

FAfMConfiabSet Sept.1*17

f, IM graduateswill havea chanceto Flneet and discussrecenteconomic trends affecting snall and mediumsizedcompaniesduring the eleventh annssl meetingof the Federation of Asian Institute of Management (FAIM) alumni associations,September 15- L7n gingapore. This year'stheme is "Smalland Medinm SizedEnterprisesand Businessesin Developing Countries.n FAIM Chairman Gan CheongEng (MBM'82) said the themeis aligned with AIM's objective to train entrepreneurialmanagers. The Federation,organizedin 1978,is an umbrella organizationcomposed of national alumni associationsof AIM graduatesfrom all over Asia. The needfor the Federationwasfirst perceivedwhenthe numbsl 9f alrrmni associationsformed outside Manila beganto increase significantly in the mid-70's.The first associationestab lishedwasbasedin Manila. The alumni chaptersare Hong Kong India, Indonesia,Japan,Korea, Malaysia, Pakistaq the Philippines,Singapore, Taiwanand Thailand. The Federation wasofficially inauguratedduring the First International Conferencein Kuala Lumpur, Malaysia. FAIM's objectivesare: 1) to foster camaraderieamongAIM graduates through continuousdialogueand exchange;2)to set up an effectivecommunicationssystemin support of planneddialogues;3) to disseminate and further developmanagement technology among the alumni and other practicing managersin Asia; 4) to instill in the alumni an awarenessof social responsibilitytoward their respectivefirms, countries and the Aseanregion and,5) to uphold and further promote the objectivesset by the Institute. The FAIM membershipis open to anygroup of at least 15 AIM alumni provided that there is only one recognized alumni associationper country. The 11-chapterstrongFederationis laying the groundwork for increased

participation of chapter officers and membersall over Asia in the develop ment of Asean economies."This is their chanceto echothe issuesthat confront their respectivechaptersand for the othersto offer applicablesolutions," he said. The first order of businesswill be a closed-door meeting of the Federation, followed by the International Management Conference (IMC) which will be open to the public and which will feature a number of distinguishedspeakers. I t the annualmeeting the Federaliltion will firmup plansfor a more efficient consultativeprocessamong the variouschapters.\Ve plan to help r e - e s t a b l i s ht h e e d u c a t i v e a n d developmentrole of AIM in the region and therefore needto define howwe can most effectively contribute to this objective."The Federation can support and work with the Institute and nwewould like to seestepsin this direction,nGan continued. He cited onekeydevelopmentin this prooess:FAIM is nowrepresentedon the AIM Board of Gov.ernorsand Trusteeg with full voting rights. Other activitiesof the Federatio*include an annualmeetingof the FAIM Board of Governors attended by presidentsand chairmenof all affiliate associationsand by Institute representatives.Participantspresentand discussthe annual report and future plans.In addition, the FAIM Executive Board of Officers holds meeti"ss twice a year, one of which coincides with the annual meeting of the AIM Board of Governors.Here, theyidentify, evaluateand design mechanisms to implement Federation policies. Another major activityis the International ManagementConference hosted annually by different associations, where key papers by eminent speakersare presented. Yearly, the Federation confers its highestaward,the Triple AAward, to deservingalumni memberssvcelling in their own fields. The SelectCom-

mittee submits nomineesfrom each associationbasedon stict criteria of performance. FAIM also co-publishes THE ASIAN MANAGER, a quarterly magazine,for all alumni.Itfeatures articles on successfulmanagement,businessesand entrepreneurs.FAlM's organizationalstructure consistsof its own Board of Governors,Executive Board of Officers and the Secretariat. The Board of Governors is the advisory and consultativebody of the Federation and is composedof all presidentsand chairmenof all chap ters. The Executive Board of Officers consistsof the chairman and vicechairman who are elected, and the secretary-generaland the treasurer, who are appointed by the Board of Governors. The officers are: Gan CheongEng (Singapore),chairnan; Herminio B. Coloma,Jr. (PhilippinesMBM'78), vice-chairman;AnastacioE. Doria, Jr. (PhilippinesMDP'75), secretarygeneral; StephenLee Kuan Ee (Singapore MM'87), treasurer. The Manila-based secretariat headed by the FAIM SecretaryGenrjralis the coordinatingcenterand implementing arm of the Federation. Gan saysthat the Federation is an on-going, long-term activity. "Few things can be achievedovernight. Even a one- year term is notenough to do many things. But I hope we will have made some significant headway by the time myterm ends.The next chairnan " he added, "can pick it up from there.n Gan said that the participation of all alu-ni in the annual meeting is very important. The strength of the Federation comesfrom its nembership. If the menbership doesn'tlend its support, it won't enjoy the benefits a strong international alumni federation is intended to make poasible.

The Taiwan Connection

Agreement AlM SignqDevelopment I with Mm/lT

of Asian Institute ?he I M"o"g"-e nt's long arm nolv s t r e t c h e st o o n e o f A s i a ' s m o s t dynamiceconomies:Taiwan. The Multitech Institute of Management and Technolog5r(MIMT), one of the members of the MSC conglomerate of Taiwan, recently signed a developmentagreementwithAIM for the structuringof its management programs.MIMT currently services firms within the MSC Group, headed by one of Taiwan'swell-knownyoung entrepreneursand AIM governor, StanShih. Plansare underwayto expand its servicesto the public for the first time in 1988.This step is in responseto the private sector'sincreasingneed for more defined and applicable managementcoursesfor executives. The MSC Group, formerly the MultitechCorpoatbn, b me of Taiwm'smct suaessfulpersmalcmputer ompmbs with US$215million in gross sales revenues fa 1S7.EstaHishedinl9n,tfu MSC Group has developeda fivepronged structure in the compder industry.Multite& IndustrialCorporation isacmputer designerandmanufacturer; theThirdWa!â&#x201A;ŹhrbfishingCaporationis a hfuh-techrcbgrpffl'ting bouse;Sertek International is a tradingoompany; Multirrentrnelillestnent, Inc.b Taiwan's firstventurec4lal firm; ad C,ontinental Inc.is a leadingOEM manuhcSyatems, trner of persmalmprters. Taiwanis fast evohing into a highly technologicallyadvancedcountry, with US$90billion in reservesto support its growing economy. AIM haspreparedth'ep rnrnagemedt @ursesfor MIMT: the BasicManagement Program (BI"f) for middle-lwel managers;the ManagementDarelopment Program (MDP) for senior-level managerqand the Top Management ProgramfiMf) fa top ereantirres

ProfessorJesusJ. Gallegos,associate dean for executive development programs,saidAIM hasalreadysent12 professorsto Taiwanfor the BMP and MDPprgram. MIMT's Anthony Lin, who is alsoan AIM ahrmnughandlestheMIMT opera tionstogetherwithJohnWang MIMT deanandMultitechseniu vie president. To date, thirty-three middle-level mrnagemhare completedthe BMP arxJ thirty-five senior-levelmanagershave completedthe MDP. The TMPfor top erccutivesb sdeduledfu April thispar. Taiwan is iust one of the countries benefiting from AIM's management programs.Programsare alsoarailablein Thailan4 Malapia, Indonesia,andSingapqe" AIM To Offer'F-xportCoune*For Entrepreneun

SmallandMedium

Developments

fiuintin G. Tan, Canadianprofes\Isor of businessmanagement,has been appointed to lead the designand developmentof an export courseintended to provide entrepreneurs, manufacturers,and tradersvaried perspectiveson exports and export promotion. The coursewill be offered asan elective forthe MI\4 MBM and Executive DevelopmentPrograms. ProfessorTan is alsoinvolvedin researchinto the businessof sub-contracting, an activity he saysis highly developedin Japan. nsomeeighty-fivepercent (85Vo)ot the large garment firms and sixty-five percent (65Vo)of the small- and medium-scaleindustriesin Japanare into sub-contracting.nTan observed.

Tan addedthat theJapanexperience can be repeated in the Philippines: nThereseemsto be an indication that itwillbe usefulto the multinationalexport firms here.Local firms like the SanMiguel Corporation are now successfullyusing contract farming.n Researchon sub-contractingbegan nine months agowith the assistanceof ProfessorRene Domingo.Professor Tan expectscasesand conceptpapers to be completedwithin the year. ProfessorTan has previously provided specializedtraining and educationto the technicalstaffofthe Department of Industry'sBureauof Smalland Medium Industriesand to a l l t h e s m a l l b u s i n e s sa s s i s t a n c e c e n t e r s( S B A C ) t h r o u g h o u t t h e country.The SBAC's provide direct firm-level assistanceto small and medium industries, regional producers,and industryassociations. A third relatedproiect,a studyonthe managementof successfulsmallbusinessesin the Philippines,hasbeen in progressfor more than a year.The researchteam hasidentified the factors that are commonto successfulsmall b u s i n e s s e ss u c h a s h i g h - q u a l i t y production, good labor relations,aggressive marketing and research/productiondevelopment. The studyinvolvesthe garment,toY, and clothing accessoriesindustries and has attractedthe attentionof ASEAN governmentsaccording to ProfessorTan. Other groupsexpressing interest in the resultsofthe study include the United Nations Economic and Social Commissionfrom Asia and the Pacilic,whichisbasedinBangkok, and the TechnonetAsia basedin Singapore.Both of theseorganizations have sponsoredstudy missionsfrom Malaysia,IndonesiaandThailand, and entrepreneurs from Sri Lanka, Bangladeshand Nepal havevisited Philippine businessesinvolvedin the study.

In Memory

EUGENEEUGENE ; f the life of ProfessorEugeneSevilI la werea painting,it wouldbe throbbingwith richness,with its variegated huesand contrastingbold and light strokesdelightingthe observer. Eugene,43, is best rememberedfor his zestfor discoveries,knowledge and academicand professionalexcellencefrom his earlyto adult years. Eugene,the boy, for example,was energeticand innovative,wasalways busyaroundthe familt's houseonTaft A v e n u e , a n d w a s e x c i t e di n h i s numerous travels with his grandmother. Eugene'searly enthusiasmfor life steeredhimto fruitful endeavorsat De La Salle'scampus.A championship medalbaggedfrom an inter-university extemporaneous speechcontestmade an endearinggift to his mother. In 11b8,he madeit to the Dean'slist with two degrees- Bachelorof Arts major in Humanities and Asian History and Bachelor of Sciencemajor in BusinessAdministration. While working for the two degrees,Eugenestill managedto becomethe first Philippine national student archerychampion. After leaving college, Eugene receiveda scholarshipwhich enabled him to acquirea Master'sDegreein BusinessAdministration from the Wharton Graduate School. During his stayin the United Stateg Eugeneservedaspremium specialist for the TeachersInsuranceand Annuity Associationand the College RetirementEquities Fund in New York. He took tims out to managehis ownshopi11ssllingRadio Shackcomputers. He was also a managementtrainee for Lloyds and ScottishFinanceLtd. in Edinberg, Scotlandand for the StandardFruit and SteamshipCo. in Louisianain the United States. Following his training with Standard Fruit Corp., an assignmentasbudget director and acting comptroller broughthim to DavaoCityfrom 1970L972.

Between 1973to 1979,Spectrum PromotionsAssociates,a trading and export promotions company,hired him as its managingdirector. Then from 1980to 1982,he wasa lecturer at ShepherdCollegein West Virginia. AIM cameinto his life in 1982when he joined the faculty as associate professor.At AIM, Eugenenever left the classroomuntil he.clarifiedthe final point with the last student. him His cheerydisposition.earned the affectionof his peers.Oneof them, Mab Santos,vice presidentof AIM administrationand controller,recalls Eugene greeting him nSenor Mabuha/ with the.click of his fingers. hressures did not rattle Eugene. l-eoO nobody caughthim woiried or with a heavychip on his shoulder. He had the exceptionalstrength to keep ill feelingsto himself.That may be becausehe valued unruffled relations with his peers. A busywork scheduledid not keep Eugenefrom being the wonderful daddy that he wasto his three kidsSiara"11;Miguel,6; and Cristina,2. His wife, Elizabeth, 36, happily says with her soft voice that "wheneverhe had the time, he would take the kids

out during weekendsto out-of-town beaches.n Eugenehad a deep love for his kids over and abovehis work, businessand friends. Crissy, his youngestdaughter, was exceptionallycloseto Eugene.Beth well remembershow Crissy would snugglebetween her mommy and daddy three monthsbefore Eugene passedon. Put all together,his studiesin businessmanagement,his lecturesin American schoolsand at AIM, his weekendswith his familx his capacity to live life and savorthe cleanfun it offered - punctuated by his hearty la'ghter and drive - all thesewerethe 43 yearsof Eugene'slife. 6urely, Eugene'slife, if it were a 9painting would singwith colorsof varied experiences,with bold strokes of choice and activitiespursuedwith passion,and more gentle shadesand huesfor the family and personallife he so profoundly loved. We could saythat EugenewasGod's unfinished masterpiece.But his Creator- and ours- perhapsknows better. He gaveto us Eugenefor 43 years,and he touched us.

TOP MANAGEMENT PROGRAM This is a programfor chiefexecutiveofficers andfor thosewho sharewith him the power to setmajorpoliciesandcorporatestrategies. The ASIAN INSTITUTE OF MANAGEMENT designedand developed this programto bring top managersup to date on what is going on in the world of management,how humanresourcesare developed,work forces motivated,the latesttechnologyemployed. This intensivefour-weekprogramwill allow you to stepback and, in the quiet solitudeof pine-coveredBaguio,take a look at your company,where ydu havebeen,are now and especiallywhere.youintend to be. It is a unique and unusualopportunityto exchangeideaswith other executives for a lifetime. The TMP will giveyou a friend in and form associations everyAsean city. ProgramDate: May 30 - June 24,1988 Venue: Baguio Country Club, Baguio City For inquiriesor reservations,call or write: Top ManagementProgram Asian Institute of Management 123Paseode Roxas Makati, Metro Manila TelephoneNos. 87401.1to19

\-:-J

Makati, Metro Manila,Philippines