BA199X2A15FP

AUGUST 2020

SOPHIA TAYAG REMODELLING THE CONSULTING GAME HOW THIS 26-YEAR-OLD MAVEN STARTED HER CAREER IN FINANCE

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CLASS OF 2020; THE GAME CHANGERS

COVER STORY

Sophia

TAYAG After all her success in finance and consulting, Sophia Tayag opens up and discusses how her internship in Globe Telecom led her to pursue her career now.

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COVER STORY

It was like jumping into the deep end of a swimming pool in freezing temperatures. It was nerve-wracking because I did not entirely know what I was getting into.

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: How was Globe Telecom? What did you think were its strengths?

Sophia Tayag: Globe was a very good company to work for. It was the first company I had an internship in that actually made me want to come back. Their human resource efforts were also felt throughout the organization. They would have Karaoke Nights on Fridays, Zumba and TRX classes in the gym, and my favorite of all: the employee center on the 19th floor. I remember taking my breaks there with my co-interns, playing Jenga and Just Dance. Whenever I would be too unmotivated to work on my desk, I would go up there to work while watching the movies being streamed. One time, I basically brought my entire desk there while they had a live feed of the NBA Finals. The company really promoted a balance of seriousness and fun in the workplace. I also liked how people are very accommodating when it came to cross-functional projects. I met a lot of people outside my department because of certain data I needed, and everyone was cooperative and willing, making my job so much easier to do.

I also appreciated having somewhat flexible work hours. I remember my schedule then on paper was from 8AM-5PM, and I had 280 hours to complete in seven weeks. Regular employees there don’t really have a required time-in and time-out. You just had to finish your work and meet deadlines. I had to take a leave in the middle of my internship so there were days I came to the office earlier and left later in order to finish my projects and catch up on my hours without having to extend the duration of my internship.

How about its weaknesses?

What I didn’t like about Globe would probably be some archiving problems when it came to my department. They transferred to their offices in the Globe Tower just a few years before I had my internship with them. There were some documents I needed that could no longer be found because they date back to when their main office was still in Pioneer. In the 21 st century, with all the developments in technology, I don’t think that should have been a problem, especially for an organization as large as Globe.

In general, being in the telecommunications industry can be really demanding. It was very fast paced, and put a number of employees under a lot of stress. Globe really did try to promote a work-life balance. However, this was difficult to accomplish when projects are always being revised with deadlines fast approaching. The latest I ever stayed in the office was around 10PM when my team and I were finishing a presentation for the chief officers later that week. I remember going around the Finance Department and half of them were still working, probably because it was closing season.

I went up to Marketing and Omnichannel, too, just to see people were still at their desks. It can become a toxic lifestyle, especially to people who are not used to the pace. However, this was never such a big downside for me because I appreciated the stress put on me. It really made me grow.

What was the biggest challenge you had during your internship?

The biggest challenge I had in the internship would probably be the very beginning. It was like jumping into the deep end of a swimming pool in freezing temperatures. It was nerve-wracking because I did not entirely know what I was getting into. The hardest part was finding my way around my tasks in order to get my projects done. The first three days of my internship were the worst. Afterwards though, I got the hang of it. I understood more about my projects as I learned on the job. Just like getting tossed into a body of water, you eventually manage and learn how to swim.

relearn them during my internship. I actually went beyond the numbers to figure out the analysis this time. Also, I was never good in Economics back in college. One day, I get a project that involved interest rates and hedging on foreign exchange. I spent about half a day figuring out what all those meant. At certain times, I would just have these moments where I think, “Hey! I learned this in Fiscal Policy! What do they mean again?” It was in that moment I promised myself I wouldn’t be limited to what my professors write down on the whiteboard and put in their slides. I promised myself I would go beyond what’s required and figure out every single “why” I think of because I want to be satisfied with my learning and maximize each class’ potential for my own benefit.

How did your schooling help you?

In my first few days in Globe, I remember thinking: “I should’ve paid more attention in school!” What they taught in my business classes really did have bearing. When it came to my project with the Network Technology Group, I used the same paper format I used in my Operations Management class and the same principles my Marketing professors taught me back in UP. My biggest regret though was not taking my finance classes more seriously. I encountered so many financial ratios, and I remember learning them in my basic finance classes.

Back in the day, I focused so much on memorizing ratios instead of fully understanding them so I had to

What did you wish you had known before coming into the internship?

It goes back to what I regretted not prioritizing back in school – the fundamentals of finance. I could have saved a lot of my time during the internship having to review basic concepts again.

At the same time, I wish I learned more about finance more than what was taught in my classes. I wanted to learn more about macroeconomics, even though I never got the hang of it. I wanted to study more on risk and investments. I wanted to know more about law more than what was covered in the basics of Obligations and Contracts.

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COVER STORY

What did you want to learn in Globe?

I had three projects in Globe. One was with Partner Payment Collection Center Accreditation. Second, I had a debt covenant review of telecommunications company and third, I did an assessment and standardization of credit facilities. In handling these three projects, of course I had things I wanted to learn.

First, I wanted to be able to utilize Microsoft Excel by making use of spreadsheets and formulas to organize financial data obtained from various financial statements. This was mostly for my first project. In accrediting different organizations to be Globe’s partner payment collection centers, I had to review their financial performance in the past. The SEC requires submission of annual financial statements. I had to use these figures and collate them in order to do horizontal and vertical analysis as well as average growth rates. I had to collate financial statements from the last 5-6 years and divide them according to balance sheet items, statements of income, statements of comprehensive income, statements of equity, statements of cash flows, and each of those had their individual horizontal and vertical analyses. Another worksheet was for profitability, liquidity and capital ratios from the data gathered. I had to review Excel functions in order to make my job easier. I used Excel tutorials online, and some tricks I learned from taking an Advanced Microsoft Excel class in Informatics under a previous internship. I used various data cells with cross-sheet reference points. I also utilized the basic arithmetic and averaging functions available in the program. After all my projects in Globe, I grew to love Excel and understand its usefulness in data management.

Second, I wanted to have the ability to read and interpret financial statements by fully understanding various accounts present in these financial statements and the notes accompanying them in order to post the correct and relevant questions to the company being accredited. Having the data was only half of my first project. Understanding it was the rest. I read up on the

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purpose and meaning of the different accounts. This allowed me to assess whether they were current or long-term accounts. I also reviewed whether certain accounts were interest bearing or not. Some accounts were also considered “dead” when they proved no longer useful to a company. After reviewing numerous audited reports, I gained a deeper understanding of various accounts present in financial statements. These allowed me to create questionnaires for the respective company to explain certain accounts further when they were not specifically mentioned in the notes accompanying their financial statements. While most of this learning objective was completed through review, it proved to be useful as the ability to differentiate these accounts became necessary when I had to figure out which accounts to include when computing for liquidity and profitability ratios.

Third, I wanted to be able to interpret the financial ratios of the company, explain the fluctuations in the various financial statement accounts and incorporate it in my financial analysis for my partner payment collection center accreditation. In order to fulfill this task, I had to study what each financial ratio actually meant. Each financial ratio never stood alone so I also had to compare it with year-on-year performance and through cross-sectional analysis. This was why I also provided a peer comparison with other companies of similar size from the same industry. After obtaining the ratios, I always had to go back to the original values in the financial statements and assess which accounts caused the differences. This was the most critical learning objective I had as I could not produce recommendations without having full understanding.

Fourth, I wanted to research on different loan covenants of telecommunications companies in order to assess their trends and commonalities. This was the most tedious of all my projects because of the amount of time I had to spend on research. Not all companies divulge their debt covenants in their financial reports. I

had to find that out the hard way – after I read through every annual report from 2008 up to 2014. When their reports were not available online, I had to make use of SEC iView – a prepaid online platform that has most financial reports of various companies in an online archive. When my data was still lacking, I had to communicate with an external analyst through the Director of Financial Planning. It was through this that I completed my data and initiated my assessment.

Cross-sectional analysis of financial ratios was the main foundation of my report. Apart from reviewing the industry benchmarks, I also saw in which ratios that the different telecommunications companies’ debt covenants aligned. I had to assess their differences as well. I analyzed why certain ratios were not used by some companies while others were. I also had to compute for their performance ratios as compared to their covenants to see how each company was faring.

Through this project, I was able to understand and better assess the financial practices of each telecommunications provider to see if there were some things Globe could still modify.

Fifth, I wanted to learn how creditors are dealt with and how to finalize loan agreements by observing in meetings. While negotiations were not done face-toface while I was reporting to Globe, I was still able to take part in this process while I did my Bills Purchase Line Matrix. I was able to compare contracts that were under negotiation with existing contracts Globe already had with other banks. Because of this, I came across points of recommendation on certain aspects of the contract to put Globe in a better, if not the same, position with regards to its agreements. It was also through my credit facilities project that I noticed that my department did not have a complete archive for outstanding contracts. Banks had to be contacted again to ask for a copy. Of all my learning objectives while I was in Globe, this is the only one that directly involved external entities. By seeing email exchanges, I got to see how year after year, contracts are not really

COVER STORY

modified. This seemed like both a good and bad thing.

While consistency is good for a large organization, there are some things that should still be changed, especially when other banks provide loan agreements that are more lenient. While I didn’t get to observe in meetings, I still saw how Globe wanted its creditors to provide similar terms. I also learned how certain banks are a lot stricter than others in terms of covering themselves from risk. However, the bottom line is that Globe needs its credit lines and banks need the interest income from these as well. I saw which contract stipulations were the most critical and were up for a lot of discussion. These dealings allowed me to see the significance of each contract term, and how the smallest changes can cause an organization millions of pesos.

Lastly, I wanted to fully grasp the organizational structure of Treasury in order to understand the flow of information within the department. Working under two divisions under Treasury, it was essential for me to know why certain tasks were assigned to a specific division. In order to meet this objective, I was given an overview of the department prior to starting my internship. At this time, I still could not completely understand what exactly they all meant. It was through handling my specific functions and projects while communicating with various people in the department that I understood that the department was structured in a way the money flows. Liquidity Management is considered the front office of the department. It is under this division that I handled the credit facilities inventory and the Bills Purchase Lines Matrix. This division handles the investments, foreign exchange, loans, securities and any other funding in order to support the business. Under Debt Management and Compliance, I handled the debt covenants and the payment collection center accreditation. This is considered as the middle-office division of Treasury.

They handle all financial reporting, loan management and compliance to covenants and internal policies. It was in this division where I saw how my project with the credit facilities inventory and the Bills Purchase

Matrix. This division handles the investments, foreign exchange, loans, securities and any other funding in order to support the business. Under Debt Management and Compliance, I handled the debt covenants and the payment collection center accreditation. This is considered as the middle-office division of Treasury. They handle all financial reporting, loan management and compliance to covenants and internal policies. It was in this division where I saw how my project with the credit facilities inventory was being monitored for compliance. Cash Management and Payment Facilities is considered the back-office of Treasury. This division handles the management of balances of bank accounts and settlement of all treasury transactions. While I did not work under this division, my accreditations of payment collection centers were forwarded to this division. The last division, Dealers Order Management, is considered under Treasury but has a very separate line of work. They are considered the only division of Treasury that regularly interacts with other departments in Globe, assessing dealer applicants for financial capacity for Consumer Business and the International Business Group.

So how did your internship in Globe solidify your career focus?

My internship in Globe allowed me to realize that I really did want to pursue a career in finance. Despite the countless headaches from looking at an Excel sheet for hours, I truly enjoyed my work. I liked how data and analysis can come together to make figures that made financial sense. I liked how research came into play. Most of all, I liked the security that came with basing recommendations on numbers. Unlike in marketing, most plans are risky because they rely on consumer behavior and perception. In finance, you have financial statements to back you up, compliance measures to mitigate the risk, and insurance channels to cover your losses. In finance, it is easier to see what makes sense and what doesn’t. You put analysis and logic into practice over creativity. It is also through

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I liked how data and analysis can come together to make figures that made financial sense. I liked how research came into play.

Most of all, I liked the security that came with basing recommendations on numbers.

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finance that one gets to see which investments are worth pursuing. I like the degree of accuracy required in a finance job where one mistake is millions of pesos lost. I also like the fact that finance positions require less people to work with. I feel like I am extroverted generally, however, when it comes to work, I personally feel working alone or in small groups is better as I would rather be personally responsible for my own mistakes than the mistakes of a large group of individuals. My projects in Globe gave me a sense of accountability, and that was something I truly liked.

I also enjoyed how Globe work was typically projectbased over process-based. Although in finance, processes are followed consistently in all its functions, work was handled by project, sometimes with multiple projects at the same time. Despite being project-based, what is highlighted is that everything is aligned with the bigger picture: making money work. It was through this internship that I realized I wanted a project-based job in the field of finance. Projects need not to change every time but sticking to one process over the course of how many months, such as my experience with a previous internship with Coca-Cola FEMSA was something I did not enjoy.

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COVER STORY What happened after Globe?

Of course, after Globe, I had to go back to school. I had nine units left at that time and three were for a class I needed to take in order to graduate, but the six remaining I used to take more finance electives. I’ve had twelve units of finance before interning with Globe but that still did not feel like enough. I took up International Finance and Securities and Derivatives after that summer. I would’ve taken more but my school did not offer any other finance classes that semester. Given my light load, I did well on my promise of taking my academics more seriously. I paid attention, I studied for hours outside of class and made sure I maximized my learning in the classroom. I also studied finance on my own, reviewing course materials from my previous classes so I could master them. I also studied in preparation for the CFA Level I examination that I planned to take within the next year, and all three exams in the next five years.

I also joined the Globe Game Changer Challenge, as advised by my superiors from my internship.

Participation in it increased my chances for a Management Development Program (MDP) position in the company the following year, and a part of me still wanted to return to the company. At first, I was very hesitant because it had quite an intense screening process, which included my transcripts, something I was not very proud of. However, I made the cut and did very well throughout the process.

most prestigious schools in the country. There will always be someone smarter than you and better than you. What’s important is that you don’t take these things against them. You don’t try to compete with them. You just have to learn from them and let their presence in your life affect you positively. Learn from them and teach them something as well. Classroom knowledge is one thing but what you learn from every interaction with another person can also help you develop in the long run.

Let experience be your teacher. More than what you learn in the classroom or what you learn from others, the most practical education is obtained through experience. At the end of the day, you’ll won’t always figure out what you need to know before you start anything. No matter how many classes you take or how many people mentor you, applying it would always come in through experiencing work first-hand.

The best thing about getting an internship is getting a feel of how the workforce would be. You get an idea of what you need to learn to advance in a career you desire. You get to see your personal points of improvement. Most of all, learning by doing also means learning from your mistakes, and once you

Let your personality shine. Society has come to develop stereotypes in each industry. In finance, people always thought I was boring because I worked with numbers.

However, it doesn’t matter what field you’re in. Being yourself and letting your personality shine helped me succeed. I got to meet a lot of people, and I made sure I always left an impression. Apart from doing your job well, you also have to take into account that it matters to be remembered for who you are.

Keep a work-life balance. Studying was important.

Performing well in the workplace is important.

However, they should always come second to what’s essential in life. Make time for yourself to keep yourself rested and healthy. Make time for family and friends because at the end of the day, they are what you have.

Before we end, do you have any recommendations for Globe?

I believe Globe should continually invest in people.

Given the work pace, the company can do so much more to take care of its employees. Yes, they treat their employees well but instilling a work-life balance in each individual, I believe, is important as well. Having

Later in that semester, I also took the Bloomberg Aptitude Test. Even if I knew that this was not meant to be prepared for, I still studied for it because I wanted my score to reflect my best possible performance. I also wanted to ensure that my potential would be uncovered. I also used the BAT Talent Search to help me find a job in a financial institution so I could work my way up to achieve my dream of having a finance position in a consulting firm in New York City. I knew that I wanted a job in consulting because of the projectoriented nature of the work.

I also had a position in the UP Junior Finance Association. That semester, I was the Intercollegiate Valuation and Strategies Competition Chairperson.

Heading the project was a challenge because we were such a small team aiming to make the event bigger, but it provided me with the opportunity to learn a different side of finance – stocks. I also got to meet Investor Relations Heads of different companies, and having the opportunity to interact with them was a great experience. I also got to meet industry professionals from the Philippine Stock Exchange and CFA Philippines, and talking to them about their line of work really opened my eyes to the possibilities of developing a career in finance.

What were some of the things you learned that you were able to apply when you went back to school and when you joined the workforce?

There were several things I learned from the internship.

Some I applied when I went back to school and others I was able to use when I joined the workforce.

Take every class seriously. I cannot reiterate enough about what you learn in school will always come back to you in more ways than one. What may seem totally unnecessary then may become essential when you’re in the workplace. Take everything seriously, ask questions and feel like you’ll never be satisfied with learning.

That’s how you grow in whatever field you choose and become great.

Respect everyone. Back in college, despite being in a very diverse university, I still felt sheltered. Being in the workplace with people from all walks of life can be challenging when it comes to interaction. Never think someone is better than you even if you come from the

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make a mistake in work, you’ll never make the same mistake again. Experience will teach you how to improve yourself by letting you see for yourself the ways you can improve.

“Hard work beats talent when talent fails to work hard.”

This is a quote I’ve resonated with since I was young.

Growing up with friends with a multitude of talents was challenging because I felt like I did not have any.

Because of this, I tried to make career advancement my talent. I focused on getting experience outside the classroom with various positions in my organizations and getting internships in different industries. I worked hard to make sure that I had a remarkable resume with glowing recommendations from my superiors. It no longer mattered that I couldn’t sing or dance or I wasn’t one of the smartest people in my batch. What mattered was the work I got into and the performance I gave in each position I had the chance to hold. We’re all dealt with a different set of cards. It’s up to you how you want to play the game.

Grace under pressure. If you think you’re having a hard time, you’ll have more trying times in the future. In times of great amounts of stress, keep striving to be better. What challenges you will change you and make you a better person. Difficult times in school and in the workplace help you develop for the next thing you handle. Allow every experience to aid in your growth and help you succeed. At every hardship, believe that you’ll get through it and come out stronger.

a project-based work style is great. It provides both times of intensity and times of rest. However, having no gaps in between projects can be detrimental for employees. Turnover rates are still low, but I believe that Globe is a company that truly cares about its people. Truly caring for them is not just shown through employee centers, full-coverage benefits and high salaries. In order to keep its people, I believe that HR should take an extra initiative to promote a healthy lifestyle among its employees.

Also, for Treasury, I think that realignment should be done in the division of tasks. I remember my immediate supervisor telling me once that even she didn't know why certain responsibilities were under her division. When I handled Payment Center Collection Accreditation, it was under Debt Management and Compliance. However, Payment Facilities was under a different division who collects the reports anyway. Also, it is Dealers Order Management who maintains financial capacity standards for Globe’s business partners.

My last recommendation for Globe would be for it to maintain its G2G Program. The way it was run was so efficient. It provides such a great opportunity for its participants and also allows the company to acquire the best talent. Not only did the experience make me fall in love with the company, it made me find myself and defined the career path I am in today.

COVER STORY

The ideal Globe intern has to be smart. He should be able to think on his feet. He should be vocal about his ideas, but should also let others speak theirs. He should be creative, innovative and practical. The ideal Globe intern should be open to new experiences and to change. He should be open to all the learning available to him on the job. He should also be sociable because interaction is important no matter which department he is in. He should work well under pressure because this industry is very demanding, always being in the forefront of change. Most importantly, the ideal Globe intern should be himself throughout his whole stay. It is only through this that he can maximize not only his professional but personal growth as well.

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