A PUBUCATION OFTHE ALUMNI REI.ATIONS

AND PI.ACEMENT OFFICESAND OFTHE FEDERATION OF

THE ASIAN INSTITUTEOF MANAGEMENT

ALUMNI ASSOCIATIONS

APRIL 1988

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OurGoal:ATrue Regional Prcsence

r.he launchins of this maiden issue of the Asian Manager is time-I ry io that 1988 marls the 20th year anniversary of the Asian In-

stitute of Management.

As a history for those of us who were not around at the time, the ef-forts that t6d tottre foundation of the Institute began in 1965 whena collaborative project proposal from three lga{ing sc-hools (theAteneo of tne Soaelty of jesus, the De I-a Salle College of the Chris-tianBrothers and the University of the Philippines) was sent to theFord Foundation. The proposal entailed an integrated p]an for thedevelopment of graduate business education in each of the threeschools.

In 1966, a US$1.2 million grant was given on the basis of the conviction that thepmippl"". *ould develop int6 one of the strongest centers for brsiness educatioi";H;d;f"*t""i*,i cmmitmentbythe three schoolstodevelop the type dman.gens needed in developing economies

The grant &signated Harvard Univenity as the project administrator and Dr.

Stephen H. Fuler was appointed officer-in-charge.

While there wess inlgrvsning developments, on July 7, 1967, the Hanrard Ad-

visory Group presented to the De Ia Salle Collegg g{9: A!"3"o a memoran-

d;;'"; the'nPossible Merger of Business Schools" (Difficulties posed.by,!.h-e

U"i""oity of the Philipplne? Ctarter preduded itsjoining guch a ner.ge1.).lvithOir ao"rrl""t, the pro&ss which wouid lead to the e$ablishrnent of the Institute

had started.

De La Salle was first to respond favorably with its president, Bro. H. Gabriel

connon, F.S.C., and Bro. Paul liebert, F.s.c., is graduate school dean ,supportingthe merler proposal fron its inceptrgn. The Ateneo took longer to decide on ttre

;tt"; is it inined a phasing oui of its wn MBA prgglm at the time. A visit,

lo*""o, by Di. Fulleito the preside* of thc Ateneo, Fr. Jqryes i Donelan, SJ.

finallv convinced the Ateneo of the ralue of the merger. By mid-1!58, the proposal

was approved by the University Senate and the Board of Trustees of tbe Ateneo.

on August zi, 1968, the trustees of the Institrte held their first Board meeting

and bv fflia goard of Gorcrnors from eigbt countries in the region (tlorg Kong

r"Joi6u,i"paq Malaysta,the Philippines, Singapore,TaiwanandThailand) was

constituted.

TWentyyears of management education and research followed. Research

otosa-s iocloded the development of small and medium scale enterprises' women

["i"o"r. in Asia, and ruraidevelopment management. Today, the Institute's

ltffifi;iandirogran participais can be found throughogt the Asia-Prcific

*E r i" A"*iea-6"t;"g p'5itions in Uotn goltrnment and private enterprise.

The purpose of the Asian Manager is to provide cmtinuing input and infor-

rrtio" ito- [h" l*titot" to alunni an? their associates. A seond purpce is to aid

l" G;gth"tt"gthe presenoe of AIM in tbo region as the centerfor bu"inesseduca-tion as originaly intended by its foundcrs

Letters and ManuscriPtsFleaders are enoouraged to sub-Ff mit letters and manuscriPts forpublication. The editors reserveihe trgnt to edit materials selectedfor publication as theY deen aP-propriate or necessary due to con-tent or space considerations.

Send conUibutions to:

Alumni Relations Officec/o Emy R. de VeYraAlunni Relations DirectorAsian Institute of Managenent123 Paseo de RoxasMakati, Metro ManilaPhilippines

Alumni News:I I pdates s1 xlrrmni careers andlJi"-itio will become a regularfeature with the second issue ofTHE ASIAN MANAGEB' Alunniare encouraged to send reports onthe progress of their olvn qreers

and thit of their classmates andother fellow alumni. Send inforna-tion to Emy R. de VeYra at the ad-dress above.

Nextlssue:The Coming Of Manageial

Capitalism InMalaYsia

TheAsian ManagerIn Multinaional

Corporations

ManagementCammunicaions: An

Asifir PersPeaive

The Search ForThcAsim Manager

' RiskAndTheMultinational

Enterprise

CornPden InMcutagement E&tcation

InAsia

THE ASIIAN MA'NIAGER Ia l

.,-4I

*

' r l

2

CONTENTS

17Getting to Knowthe WomenManagers of Southeast AsiabyWctoia B. HoffotthCanadian International DevelopmentAgency (ClDA)-funded researchreveals the composite WomanManager in Asia. In a study that maYbe the fust of its kind on a major scale,Prof. Hoffarth provides a dramaticview of how women mrnegers Per-ceive tlemselves.^-,--t2--The Anatomy of an EntrePreneurby EduardoA. Moratu, fr.They are'^ng.lT,, genteel visionaries,and tinkerers.n Prof. Morato looks atwhat makes the entrepreneur what heis.

Alumnilnterviews

7l4D-- _..z l -- -Taming the Agrarian TigerManyof the Institute's graduates havebeen elevated over the years to keydecision-making positions in privateenterprise and government. PhilipEllaJuico (MBM'73) hasbeenput incharge of agrarian reform in thePhilippines. In an exclusive interview,he relates the first six months on thejob.

cr.a--r-Taming the Agrarhn Tirger: Part llRoberto W. Ansaldo (MBM '71)

works nacross the hall" from PhilipJuico as undersecretary at the Philip-pine Agriculture Department. He'sbeen charged with developing policiesto make the farmer prosperous. Inanother exclusive interview, he tellshow he intends to make this happen.

AIM Developments

xtMM Admlssions To lncorporateCareer PlanningAIM not only educateg it evaluates:before and after entry into the MM,Associate Dean Borromeo intends toknowwhat his managers are made ofandwhat theycan do for the organiza-tions they will rnanrge.

Cover Story

CONSUMER PANIC:THE BANCO FILIPINO RUNby Prof. NedRobeftoThe bank's management gambled withan innovative advertising campaign tohelp alleviate consumer demands formassive withdrawals. Ned Roberto as-sesses the success of their boldstrategy.

From the Managing Editor

Our Goal: A True FegionalPresence1ry15 this maiden issue ofTHE ASIANMANAGER, Gary Santos looks backat the Institute's besinnings and whatlies ahead.

Feature

The Samurai and the Managerby ReneT. DomingoIs a manager to be evaluated on howwell he solves problems orwhether ornot he prevents nost from occuring?---\r--lt9

The Traditional FinancialFeasibility Study Vs StatisticalFinanchl Feasibility AnalysisbyAndy FeneiaProf. Ferreria takes a look at averages6d 6sans and comes up with a newframework for feasibility studies.Validation remains to be completed,but AIM is excited about Andy's work.

Alumni and FaculwNews

at!-YJakarta HomecomingAlumni renew friendships and learn ofnew management insights fromformer professors and nationalleaders.

27FAIM Confab Set''/c,-|YAtM Signs DeveloPment Agree-ment with MIMTtlC�t-2-.4,- -Small and Medium DeveloP-mentsProf. Q.T. Tan is developing SMBIsoluses for the MM, MBM, and Ex-ecutive Development Programs.

+tar--Eugene EugeneA final good bye to our professor, col-league, and friend.

THE ASIAN MANAGERA Rrbllcdlon otth. Alumnl Fbldlons atd Placcm.nl Of-f,cc rnd th. F.d.rdlon oa lh. Ads Indftut of Me|r€.'mnl Alumnl A3socidlonr.

Managing EditorEdoar Sentos

Editor-in-ChietMichael A" Hamlin

EditorsEmv de Vewa. Susie Anoyo

EditorlalBoardGaston Ortigas, Felipe Afonso

Gabino lt/lendoza, Horacio BorromeoTomas Lopez

Associate Editors'Effie Goh (Malaysia, MBM 78)

Mtiaq A, Oureshi (Pakistan, BMP 77)Stephen Lce (Siingapore, MM'eO)

Tesraciai Chemnasiri Ohailand. MBM 73)

Copynght 1 908 by lhc Adrn Menqrr. Al tbhb rrctt d.R.producilon In ltiy m.nn r In yvhoL o. Part ln Englbh oroth.r LngurEa. ptohlbltad. Th. Al|rn Menrg.r ltputrldrd qurlfdy !y th. Aumni R.Elbnr ltd Pls-fir.nl Otflco gfth. AJan Indltulr ol Managomrnl

3

COVER STOHT

Consumer Panic:The Banco Filipino Run

by Eduardo L Roberto

fin Monday, July 23,1984, BancoVFilipino, the country's leadingand largest savings bank, imple-mented a bank-holiday decision thatits top officers reached on July 20,1984. It closed all its branches nation-wide.In a sense, the closure ended theheavy bank run that 1f,s 5svings bankexperienced the preceding week. Butwhen it came, it triggered offwhat amajor business daily called a bankpanic entailing bank runs in otherbanks, particularly those adjacent tothe closed Banco Filipino branchesand whose depositors were said tohave feared that the Banco Filipinobank holiday would soon extend toother banks including their own.

On Wednesday, August I, L984,Banco Filipino lifted its bank holidayafter the Central Bank released to itthe previous dayP1.3 billion to enablethe savings bank to service depositors'withdrawals. On that same day, BancoFilipino came outwithvisible print adsin all major dailies that surprised andeven shocked many business- andbanking-community members. Theadvertisement showed a smiling,uniformed lady obviously meant to bea Banco Filipino teller behind a neck-high "mountain of cash". The ad's linesstated: nWe've been tested once more.Banco Filipino has all the cash you'llever need.'

Consuner-panic behavior in bankruns and characteristic heavy andspiraling depositwithdrawals is a rare-ly if not lnstudied aspect of consumerbehavior. After all, how frequentlydoes consumer panic take place? And,naturally, we will not produce or in-duce such behaviorjust for the sake ofstudying it.A review of the current consumer

behavior literature and books yieldsno reference to any study of con-sumer-panic behavior nor to any treat-' ment of it as a topic or subject of con-sumer-behavior research. The

theoretical guide used here had to beobtained from sociologr fiterature oncollective behavior under which panicbehavior is treated as a subset of dis-aster behavior.

My justification for studying con-sumer pan ic behav io r mi r ro rssociology's reason for the study ofmass panic behavior. To start with,this will not be the last that we shall

see of such market and consumer be-havior. Third world countries Seem tobe particularly open to its occurence.

If we therefore are to experience abank run, it is critical that we knowwhat to expect and how to manage arun when it does strike. Of course,'managingn here does not mean thatwe will plan, organize, implement andcontrol the panic incidence itself. Irefer rather to what the managerneeds to do to prevent the adverseconsequences of market-panic be-havior from spreadirg, or else to abortand cut short that diffusion, or if thiscan not be done, then to correct theresultant damage as quickly as it oc-curs. To be able to do any ofthesethings, we must first understand con-sumer-panicbehavior. This is the pur-pose of this article and the study itreports in the following pages.

THE BANKER'S SIDE OF THEBANK PANIC

I et us f i rst look at the bankingI-community's version of the panicincident. According to BusinessDay, the country's leading businessnewspaper at the time, the sequenceof major reported events that finallyled to the Banco Filipino holidaydecision was as follows:

fuly 3, 1984. The Central Bankt/ (CB) Deputy Governor wroteBanco Filipino (BF) President thatBF's overdrafts with the CB hadreached P211 million and asked BFto immediately turn over to the CBeligible collateral to secure the over-drafts.

fuly 5, 1984. The BF President in-rJ formed the CB Deputy Governorthat within the day, BF would submitP378 million in eligible collateral tothe CB and would deliver at leastP237 million once more in the suc-ceeding two days.

fuly 9, 1984. The BF Vice-Presi-r , l .dent requested from the CBDeputyGovernor aPl) million cashadvance to service the 'e:draordi-

nary withdrawals" that BF was ex-periencing at its branches.

fuly 11, 1.984. A CB Special Assis-f.f tant to the Governor sent two ex-aminers to BF to examine BF'sbook. The BF Chairman met withthe CB Governor that night an4 inthe presence of other BF officers,the CB Governor allegedlY "sug-

gested that BF sell or merge BF orput new faces in the bank within twodays." The CB Governor was said tohave also ordered BF not to issuemanager's checks effective July 12.

luly 12,1984. BF wrote the CBLf Governor'formally turning over15s sdministration of the bank toyou

4

and the Monetary Board." BF alsoinformed the Prime Minister of itsaction. The letters were signed bythe BF chairman.

luly L3,1984. BF EVP wrote theU CB Governor that the lafter's in-structions "to deliver within theweekend the stock certificates of thebank representing a majority of thebank's shares properly endorsed inblank, with appropriate corporateboard resolutions in the case of cor-porate stockholders" could not becomplied with. This was because,wrotethe EVP, thebank's corporatestockholders wanted to know theprice offered per share and theterms and conditions of payment.The BF EVP also informed the CBGovernor that the nappropriate

board resolut ions" could not besecured within the weekend. In thesame letter, the BF EVP reiteratedBF's request for a P50 million cashadvance against the balance ofTreasury Notes and the HomeFinance Corpora t ion- insuredmortgages which had been deliveredto the CB.

luly 16,1984. BF shareholdersLf representing 57Vo of the bank'soutstanding voting stock submittedto the CB Governor a resolutionauthorifig the Governor and/or hisnominee "to negotiate, for and in ourbehalf, for the sale of our shares ofthe corporation.n

luly 17,1984. The CB released aLt P25 million cash advance to BF.According to the BF legal counsel,this was the last cash release to thebank. Total cash releases from Juneto this day amounted to P14t|.2 mil-lion, P110.7 million of which wasreleased in June on a staggeredbasis.

"...the bank holiday heldback the run-away

perception and pace of thecisis..."

fuly 18, 1984. BF informed CB thatLf because of heavywithdrawals, BFneeded immediate encashment ofP50 million from the CB. The BFEVP informed the CB Governorthat the bank was conferring withMani la-based foreign creditorbanks and with the Bank of thePhilippine Islands to buy into thebank. The BFEVP also told the CBGovernor that the CB direct iveres t r i c t ing BF 's i ssuances o fmanager 's checks to al l the CBregional c lear ing off ices wouldprecipitate a nationwide run in all ofBF's branches. The BF board ofdirectors met and adopted a resolu-tion that without the requested CBcash advanceg the bank would haveno other recourse but to close.

uly 19, 1.984. The BF EVP wrotethe CB Governor for a nfinal ap

peal" on the bank's P100 million en-cashment. In this letter, the bankEVP said that BFs "operation situa-t ion has worsened because SanMiguel Corporation has circulated amemoto itsunits, offices, and outletsthroughout the country prohibitingacceptance of payments made withBF checks." The BF legal counselwrote the CB Governor accusing theCB of causing the bank's difficulties.

luly 20,1984. The BF branchU managers and off icers met todecide on a bank holiday startingMondayon the grounds that withoutthe CB cash support, violence woulderupt when the cash in any BFbranch ran out.

lu ly 2 l -22 ,1984. BF o f f i cersrJ awaited word from the CB on therequested cash support and ex-pressed willingness to call off thebank holidayif the CB extended thecash. BF received no word from theCB. Instead, the CB Governor is-sued an official statement refe.rringto the July 12 meeting with BF of-ficers where he said, "The CB ad-vised the BFs present managementto seek new, btronger partners andthat should they need assistancefrom the CB in this regard, theirshareholders should provide the CBwith the appropriate authority." TheGovernor also explained that the BFJulv 12 decision to turn over the BF

5

administration to the CB was notpossible to implement because thelaw inhibited CB from taking suchaction.

luly 23,1984. All BF branchest/ nationwide closed.

A s a bank with more than P3 billionAdepos i ts f rom 2 .67 mi l l iondepositors and resources of over P4billion, the bank closing could not buthave an impact and its action of July23 had immediate repercussions in al-most all quarters of society. TVo daysafter the BF closure, the Bankers As-sociation of the Philippines was said tohave sent a delegat ion to the CBGovernor urging the latter to settle "as

soon as possible" the BF crisis as anydelay in its resolution would just asmuch erode "public confidence in theentire banking systemn (Business Day,Ju1y27,1984: p. 12). Opposition mem-bers of parliament led bythe MinorityFloor Irader were quick to call for aninvestigation not only of BF but of "the

whole country's banking system inorder to adopt remedial legislation torestore publ ic conf idence andstrengthen its pivotal position in thenational economy' (Business Day,Ju1y25,1984: p.11).

Civic leaders, one of whom camefrom a Metro-Manila district, calledfor the direct intervention ofPresidentMarcos. "For the sake of the 3 milliondepositors of Banco Filipino... and thePhilippine banking system, I implorePresident Marcos, Prime MinisterVirata and Governor Fernandez togive this very serious matter affectingthe very bloodline of the economytheir preferential attention" (BusinessDay, July 26, L984:p. L2).After a week and indeed after the

President's intervention, the bankholidaywas lifted and BF openedagain for business on August L, t!8,/'.Through all these events, how did the

real "victims of disaster', the con-sumers or individual bank depcitorgmakeout ontheir own? What did theydo and how did they see BF as a bank?How did tley react to the BF Ve've-been-tested-once-more' ads whichcame out on August 1, 1984 and there-after?

THE CONSUMER SIDE OFTHEBANK PANIC

fo obtainvalid answers to the ques-I tions on con$lmer-panic behavior

in the face of the BF bank ruq bankholiday and bank reopening ads, af ield-based consumer study wasnecessary Tivo such surveys were con-ducted the latter half of August andthe first half of September, 1984.

There were two groups of respon-dents interviewed for the surveys.

One groupwasmade up of 60 BancoFilipino depositors who withdrew

their deposits in whole or in partbefore (25 ofthe60) or after (35 ofthe60) the bank holiday. This group con-stituted the sample of respondentsfrom whom data needed by the ques-tions on what the consumers did weregathered. Table l presents the othercharacteristics making up the profileof this sample of respondents.

The second group consisted of. ll2consumers, 57 of whom weref areBanco Filipino depositors and 55wercf are nondepositors at the time ofthe survey. Itwas from this samplethatthe data needed to answer the ques-

i

6

tions on howconsumers reacted to thepost bank-holiday ads and how theysaw BF as a bank were col lected.Table 2 presents the profile of this5ample.The respondents in the above two

samples were selected via appropriatescreening questions qualifying theminto either one of the two samples.This selection took place as a "pig-

gybacking" procedure in several oftheon-going surveys of ER Associates,Inc. Those surveys were all randomrepresentative market surveys.

"Piggybackingn meant that thequalified respondents from the sur-veys were interviewed only after theinterviews for the "parent" surveys hadbeen completely finished.

The data from the studyrespondentswere gathered by face-to-face inter-views using a pretested structuredquestionnaire. The items in the ques-tionnaires were developed based onthe specified questions they were in-tended to address.

THE BANK.RUN BEHAVIOR OFDEPOSITORS

1f\ n instruct ive way of analyzingl lpanic behavior, according toSmelser (1%3), is to look at panig 3s ncommunication event. According tothe survey data on depositor behaviortoward the BF bank run, this bank runtreated as a communication event wasto the depositors an overwhelninglyword-of-mouth process.

First of al l , the Banco-Fi l ip inodepositors learned about the bank runor its likelihood much more from in-terpersonal media (88% of the time)than from mass media sovces (20Voof the time). Table 3 shows the com-plete data base for this finding.

The preceding is not meant to inplythat the interpersonal media are inde-pendent of the mass media sources ofinformation. For all we know, the 88%interpersonal sources got their infor-mation from the mass media. But thedata do not say so or at least do not gobeyond the indication of the firstsource and into the prior chain of in-formation sources.

Second, on their own most of thedepositors (52Vo) initiated moves tosearch for information about the bankrun by asking others. Table 4 gives thesupporting surveydata for this finding.Th i rd , jus t as maay o f these

depositors (55Vo of them) took it upon

themselves to tell others about whatwas happening. Table 5 su-marizesthe survey data base for this.

What is the practical significance offinding out that the public knowledgeabout the Banco Filipino bank runwaspredominantly a word-of-mouth hap-pening among its depositors?

This significance rests on the factthat relatively few marketing prac-titioners have the necessary skill to ef-fectively manage and use the word-of-mouth media or "networkn to theircompany's advantage. Crisis marketevents such as bank runs occupy a dis-p ropor t ionate amount o f theconsumer's attention of consumersbecause of run-away word-of-mouthexaggerations and distortions. Themarket ing man confronted by orpreparing to be confronted by suchcrisis needs the skill to both preventand correct (if the crisis should stilltake place) the likely adverse conse-quences of the crisis. That preventiveskill means that the marketing manmust know what inoculation measuresto take so his consumers are not takenby complete surprise by the event. Thecorrective skill means he shouid knowwhat immediate curative measures totake ius t in case h is inocu la t ionprogram proves unsuccessful, and ad-verse consequences of a feared crisisevent still take place and spread.Another aspect of panic behavior

that is useful to look at is its perceivedrisk element. According to Perry andPugh (1978), panic and disasterproduce fear and uncertainty about

7

personal harm or danger. These tworelated dimensions of perceived riskare well-documented in consumer be-havior studies. I will make use of theseconcepts in the following analpis ofthe perceived risk angle of consumer-panic behavior.According to relevant survey data,

BF depositors withdrew their noneybut not al l of i t . How much waswithdrawn seemed to depend uponthe deposito/s perception of the riskthat the bank run would get out ofhand and lead to the ultimate totalfailure of BF. The survey data show-ing the deposit withdrawal variationand distribution are presented inTable 6.

This depositor's perception of risk isof course not being 6signed the soleresponsibility for the less than 1007owithdr awal. Admittedly, there wereotler forces at play for example, thelinits imposed bythe branch bank of-ficers on withdrawal. The intent hereis not to show perceived risk as thesingle causal factor but simply to testits contributory erylanatory fit to thefacts defined by the survey data.

The tabulation of the finer categoriesof portion withdrawn demonstrated infact that only tlVo of the withdrawingdepositors withdrew al l of theirmoney. Among those who withdrewbefore the bank holiday, only 44Votook out all their deposits while amongthose who withdrew after, this propor-tion was even lower: 3lVo. Avengewithdrawal before the bank holidaywas 85Vo of total deposit while thatafterwas 1ZVo.The clear indication isthat depositors changed their perception ofthe bank run and the bank con-cerned after the bank holiday.

What is the perception? It is the per-cepion of the risk to whic-h the bankrun exposes the depositor. To clarifythis, Figure 1 presents a picture ofthisperception. This picture is derivedfrom the data coming from two ques-tionnaire items in the survey.As suggested in Figure 1, these two

items constitute the two interrelatedaspects of perceived risk to the risktaker. The first is the likelihood thatthe depositor feels the bank run andits adverse consequences willjust con-t inue uncontrol led. This fel tlikelihood is measured in the horizon-tal axis of Figure 1 along a 4-pointscale (where 4 = very serious, 3 =

maybe serious, 2 = not that seriouqand 1 = not serious at all).

In Figure 1, these two measures arein a sense cross-tabulated by twoperiods in time; na-ely, before andafter the bank holiday. What this datamanipulation shows is that the riskthat consumers (i.e., the depositors)perceived was relatively low and it infact got lorrcr after the bank.holiday.In this sense, the bank holiday heldback the run-away perceptipn andpace of the crisis. If that is true, thedeclaration of the bank holiday forBanco Filipino was a correct and ef-fective business decision.

The foregoing should not be inter-preted as suggesting that the bankhol iday by i tsel f changed thedepositors' risk perception. By itself itdid not but it did when it led or, per-haps more accurately, forced theCentral Bank to subsequently decideto fully support Banco Filipino whichsubstant ial ly contr ibuted to thedepositors ' regaining some con-fidence in the Bank.

What did the consumers whowithdrew their deposits from BF dowith the withdracm money?

The indications from'the surwy saythat after withdrawing their depositgthe BF depositors did a lot of thinp

with the money. This business that BFlost represented, however, businessgains for others: not only for the otherbanks but for the other sectors of theeconomy as well. The total picture isdrawn in Figure 2.While the data in the lower branches

and levels ofFigure 2 are based onvery smal l subsample sizes, theirstatistics still indicate directions andbroad categories of al ternat iveramifications of the events.

The first cut is between placing thewithdrawn deposit in other banks@7Vo) or not doing so (53Vo) but in-stead just keeping it (22Vo of 53%) orelse spending it (78Vo of 53%). Thosewho deposited the money in otherbanks didsoin nearly9 out of l0casesand in just one other bank. The mostdominant of these otherbanks is Bankof Philippine Islands which got 44Vo ofthe Banco Filipino withdrawals byconsumers who transferred to oneother bank.

Those who kept their money mostlydid so in their howe (1lVo) but doseto a third of them decided to go backto Banco Filipino and redeposit. As apercent of the total withdrawingdepositors, this equals 3.4Vo.In othetwords, only3.4Vo of the withdrawingBanco Filipino depositors put back

.$aCIss16'ilslu

, l

i

It

8

their money after it became clear thatthe bant was not going to fold up afterall.Those who spent the money Placed

it on consunption itens (groceriesand clothing), on "profitable' or'liq-uid" assets (iewelry and dollars), onsmall business ventures (buy and selland5/6lending) or on paying off pastdue debts.

CONSUMER REACTIONS TOTHE POST BANK.HOUDAY ADS

I et us now switch to the BF print adsl-that were very conspicuous Par-ticularly during the month followingthe lifting of the bank holiday, Augustr9u.How did these advertisenents im-

pact m the consumers? What kind ofan inage did the consumers form ofthose ads and of BF itself?

The surveydata seem to suggest thatthe Ye've-been-tested-once-morenpost bank-holiday ads of BF were ahighly memorable ad campaign toboth BF depos i to rs and non-depositors.

The memorability measure usedhere is that of recall lerel or ratio forthe ad's copypoints amongthose whosaid they saw, read or heard the adduring the nonth of August. Figure 3summarizes the survey data on thismeasure.

While Figure 3 shows the level ofawareness for the ad differed sig-nificantly between depositors (537olevel) and nondepositors (33Vo),howbver, il fdngs 6ut the fact that therecall of what the ad said and showedasrelatedbytlose aware of the addidnot differ significantly between thesetwo segments. In addition, the recallratio passedway beyond the majorityproportion: 93Vo f.or the depositorsandS3Vo for the nondepositors whodain€d awareness of the ad.

In addition to being regarded as amemorability measure, the recall ratiois also looked upon as an indicator ofthe quality of ad awareness. In otherwords, people may be able to say,"Yeg I sa{read/heardthat ad" but ifthey could not recall a single specificitem aboutwhat theadsaid orshowe4that awareness is verypoor io quality.Awareness is largely a matter of

media expmure and weight. The moremedia vehicles the ad is in and themore frequently that ad is in those

vehiclal the higher the awareness forthat ad. Recall m the other han4 isprimarily a matter of ad coplt what issaid and shown by the ad. The morerelevant the ad messages are and themore appealing its execution elementsare, the higher the ad recall. In thecase of the Banco Filipino "We've-

been-tested-once-moren ad, the con-clusion is quite clear:

1) What the ad said was relevant;

2) What it showed was appealing;and

3) It had a relatively low mediacoverage and frequency.

The first two conclusions explain whythe ad was highly memorable. Thethird conclusion explains why it had arelatively low awareness ratio.

But what kind of an ad did the con-s '-ers see in the "We've-been-tested-

once-moren ads? Consumers mayrecall an ad but this does not neces-sarily meanthat it favorably impressedthem.

In the case ofthe BF ads' the adver-tising image, according to the surrrc;data, was likewise predominantlYpositive.Ad image was measured by the

ratings that the survey respondentsgave [o the BF ads on each of fiw adattributes. T\vo of these fn'e are posi-tive attributes; nemely, "convincing"

and "imaginative" while three arenegative attributes; namely, "exag-

gerated", "in poor taste", and'offen-sive." The percent ofrespondentsagreeing with the positive attributesand those disagreeing with the nega-tive attributes are shown in Table 7.The whole of Table 7 provides the ad-image measure.

fhe advertising communit/s aswellI as some of the bankers' criticisms

of the "We've-been-tested-once-

more" adwas that itwas offensive andin poor taste. The data in Table 7 in-di&te that the consuming public, bothBanco Filipino depositors and non-depositors, do not agree with the"professionals.' Three-quarters tofour-fifths of the depositors do notfind the ad inpoor taste nor offensivgand just as close a set of percentagesprevail among the nondepositors. Ilfac! among the BFdepositors as wellas nondepositorg the Banco Filipinopost bank-holiday ad campaign is:

1) Not offensive;

2) Convincing and

3) Not in poor taste.Those who were negative about the

ad seemed to be so for two reasons.First , some of them are simPlY

negativistic about ads ingenerat Theyare negativistic personalities. This isexemplified by the respondent whosaid: "I don't believe in what ads saybecause in ads only the good things areshown.n

There is probably nothing thatanyone can do about the thinking andperception of the people in this seg-ment.

The other reason has to do withwhatsome respondents perceived to be acontradiction. let us hear this fromwhat tlese respondents actuallyhad tosa)4

The ad said: 'BF has all the cashvou'll ever ned.' Bttt how can thatbe? ft faited aN closd, so thatfneans they have no cash.''So they eY they have a lot otmoney. But W did theY close?'

The ad sard'Tesfed for strength.Iested tor stability.' How can theybe stable? They iust tell andclosd.'

The news sr.id they reailY had nocash. Then this ad shotils a Pictureof a lot of cash.'

That pictwe of a lot of cash Justdoes not fit the situation they're innow.'

Obviously, the foregoing perceptionsare wrongly premised. Therefore, thcycan be changedwith the communica'tion of the right information.After talking about their reactions to

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 say you'd rate it very hig!-ly, highly, neither highly nor p,oorly,poorly or very poorly?'

Table 8 shows how the a$;wers weredistributed.As shown in Table 8, the resultant

regard and perception of BancoFilipino itself is anbivalent.

Tf,e modal response of bothdepositors and nondepositors, asfabb g shows, is one of ambivalence.Most people cannot quite mate uP

9

their minds yet what to think of BancoFiliprno.

It would have been ideal if we alsohad the statistics of Table 8 for theperiod before the bank holiday, say,last year or two years ago. If we hadthose, thenwe could compare and seehowmuch shift took place, how muchdownward or upward movement ofthe ratings of Banco Filipino tookplace, in between the two periods. Un-fortunately,we donot have such statis-tics.

From Yfrat we have, however, we cansaythat the first real damagg amongother setbacks resulting from thebank-run crisis suffered by BancoFilipino, was the creation of thatdoninant feeling of consumer ern-binalence toward this biggest savingsinstitution of the country. That am-bivalence can go in either of the twodirections of positive or negative . Thisis precisely where the future dangerlies: Obviously, the ambivalenceshould not be allowed to deterioratein the negative direction.

One of the wap bywhich this canbeprerrcnted is to reinforce the remain-ing perceived areas of strength ofBanco Filipino and to correct or atleast minimize its perceived areas ofweakness. The survey did not go intoa direct measure of these perceivedstrengths and weaknesses. However,the responses to the probing on theoverall rating give indications that alarger-based follow-up study mayquanti&. Here are these indications:

For perceived strengths, here are themajor categories:

L The'Tested-for-Shengthfiested-for-Stabilit/ internalized belief andperccpion.'l donT bellerre that Banco Flllplnowillfold up. /t'sbecause thqwereaileto give aN retum the moneyottheir depositors.''/t was actually secure when itcrosod. Thst it opened. I thinkwhat happened was lust ami suderstand i ng i nsid e.'2.The leader-bank perception ap-

parent from the following consumerexpressions of why they rate BancoFilipino \ery high$.

?fb fie top Mnk tor me.'

?fs to me still the best Mnk.'?'s gota lot of proryrties so fiiust

canTfold up.'3. The trustworthiness perception

clear from such consrmer reasoningsas these:'There are still narry wtu tustBanco Fillptno even when itclosed. I st i / / see a lot of ryledepositi ng there even atter they'vec/osed.''Actually, there are moredeposftors now in spite of whathapryned,.'

There are still manywho aretrust-ing aN depositing.''Actualy, they did not break theirpromise to the public. Thq paidMck the deposftors. Those whowere wihdrawing were able to doso.''Even when they tell, they stillopened again. They were evenopen up to midnight of &turdaysaN Sundaysiust so Wople canwitM raw. These on ly d emon stratethathey rally havethe cash. Theywere able to give back all tltcmoney of their depositors.'For the perceivedweaknesses, on the

other hand the major categories appear to be:

1. The untrustworthiness perception.This underlies arguments such as thefollowing given as reasons for ratingBanco Filipino'very poor$:'l lost contidence in it because ofwhat happend. Stddenfi, therewas a Mnk holiday aN depositorswere unable to witM raw.''l can't trust them anymore because of mismanagement. Canyou imagine investing your monqthere and when you want towiMnw you can't.''lf hlfiiat werc a g/asg Wu'd &ythere's al ready a crack. Ihat crisiscan alwap happen again. PeopleJust lost contidence ln lt.'2.The fallen leader-bank percep

tion.

'Nmost all depositors witMrew.How are thq going to wen exls?''l donT look up to Banco Filipinoalwore because of what happerred. Tlcy tell and that's wttytheyclosd.

They've dldd thelr name.'

3. The perceived contradiction in theTested-for-Strength/Tested-for-Stabilit/ claim. The perceptions weree,:rpressed in the following:

The fact that they c/osed is prootthat they' re not testd for strenglh.''They claim to be tested forstrength aN stabi I ity but they werethe veryfid fo c/ose.'

Qae thing is quite readily noticeablefrom the foregoing: The perceivedstrengths are the exact opposites ofthe perceived weaknesses.

The perceived strengths are reinfor-ceable because they are, in general,truthfully or factually based. The per-ceived weaknesses can also be cor-rected, and correction seems ratherfeasible because their basis is wronginformation. For example, it is nottrue that "depositors can't withdrawtheir deposits." Providing the con-sumers with the objective, correct andspecif ic stat ist ics on this kind ofmisperceptions will be the most effec-tive and efficient wav to make theneeded correction.

coNcLustoNs

Au. analysis and discussion of theVconsumer research on the con-sumer-panic behavior on the BancoFilipino bank-run and the consumers'reactions to the BF post bank-holidayads aimed at restoring and maintain-rng the BFbank image clarified first ofall several public misperceptionsabout the impact of the bank run andthe propriety of the BF ad campaig".

We were also able to isolate theneeded management and communica-tion skills the marketing managermust have to manage effectively con-sumer and market panic behavior.

Finally, we sawwhat the manager isto enp€ct when a consumer-panic in-cident taftes place and what specificmeasures he needs to adopt toprevent, minimize or correct a paniCsadverse consequences can all be indi-cated to him b the kind of consumerand market suvey we analyzed in thispaper. He needs such a survey as acritical component of his managementtools for effective crisis management.

I

1 0

The Samurai and theIs it the title that makcs amcmager?

FEATURE

. For theart of management has nslhing to dowith solving problems- it has every-thing to do with preventing them:planning organizing, and controlling.The more problems a manager solvesor thebusier he is with these means thelsss nnanesingn he has done or hasbeen doing- less planning less or-ganizing and less controlling. At most,what he is trying to do is damage con-trol.

byReneT. Domingo

ff n illuminating anecdote about onel{of Japan's greatest samuraiswordsmen, Tsukahara Bokuden(L4m-I572), was related by Japan'sforemost authority on Zen Buddhism"Daisetz T. Suzuki, (1871-1%6), in hisclassic work ZEN AND IAPANESECULTURE. Bokuden wanted to givethe final test to his three sons afterhaving trained them in the art ofswordsmanship. So he put a pillow atthe entrance to his room such that itwould fall on the head of anybody whotouched the curtain upon entering.

The Three Sons

fhe eldest son was called first.I Before entering the room, he

noticed the pillow right away, put itdown, entered the room" and returnedthe pillow to its original position. Thesecond son was called next. Heentered the room touching the cur-tain. The pillow fell, but he caught itwith his hands and then carefullyreturned it. When the youngest sonwas called in, he rushed into the room,the pillow fell on his neck, but he splitit into trvo with his sword before itdropped to the ground. In passingjudgment, Bokuden announced thatthe eldest son was a masterswordsman and presented him asword. The second son was asked totrain more diligently. Finally, theyoungest son was declared a disgraceto the family.

This anecdote shows that mastery ofswordsmanship went beyond acquir-ing proficiency in the techniques of theart. The same can be said about the artof management, or any other art forthat matter. A most sorlmon sight isthe ever-busy and energized managerwho attacks and confronts problemsrelentlessly and enjoys solving them.Uke the Bokuden's youngest son, whofeels pride and pleasure in the burst ofpillowfeathers on his face as he wieldshis sword this manager is a disgrace

t

1 1

Proper Phces and Timeg

fhe true master of the art ofI management, like the eldest son,

avoids wielding and using the bag ofmanagement tricks and techniques hehas nastered by understanding andmanaging situations and relationships,rather than confronting and managingproblems. He has this sxlrnoldinarysense of knowing and anticipatingwhat canbring about disruptive situa-tions; he corrects situations and notproblems. With this knowledge, heputs eve4Dody and everything in theirproper places at the proper time- sothat he does not have to manage. Likethe noblest victory of the mastersamurai, which is srilning withoutfighti"g or conquering your enemywithout drawing your sword, themaster manager, the professionaln rn,aget, manages "without mrnrg-ing."

In many companies, we seenumerous examples of nanagers, likethe third so4 who mistakenly considertheir daily problem-solving feats as ac-compl ishments of exemplarymanagership deserdng a pat on theback and a pay increase.

o finance managers performingdaily an exciting balancing actcalled "cash-fl ow management n

running after over-due ac-counts receivable aad pnningaway from o'er-due accountsand loans payable

o production managers gaspinglytrying to beat daily deliveryschedules

o personnel managers endlesslyengaged in an arm-wrestlingcontest with labor nnions, whichwe call nindustrial relationsmanagementn

o narketingmanagers desperate-ly struggling to meet salesquotas during the last few daysof the month.

The busy managers above are notmanaging for they have no time toplan, organize, control, much lessthink. Like the third soq they enjoysplittingthe pillows and problems thatfallon them. And this frantic schedule

will go on forever "tless they startmanaging and prevonting the pillowsfrom dropping.

Meslery of Death

f l nother samurai anecdote ofttsuzuki is about a personal guardof the Shogun of Japan who went tosee a master swordsman, Tajima NoKami, to be trained in the art ofswordsmanship. Upon seeing theguar4 the master askedhim where hehadlearned the art of swordsmanship.Surprised, theguard explained that hehad never learned the art anlvhereand he had come precisely to learn itfrom the master. Tajima insisted thathis client was already a masterswordsman, which the guardrepeatedly denied.

n...the disappearing act -an act done when thingsgo wrong because ofyouand there is still time to

vanish and get somebodyelse blamed.n

Finalln Tajima asked him if hewas amaster of something else, if notswordsmanship. After some reflec-tion, the guard explained that since hisyouth, he realizedthat asasamurar, heshould not be afraid of death in anysituation. The thought of death hadceased toworryhim. He askodTajimaif this mastery of death was the thinghe was referring to. The ma$ter ex-claimed that this was precisely whatmade h im a l ready a masterswordsman, for the final test ofswordsmanship, which many of hissword- proficient students failed wasovercoming the thought of death.f,sali?ing that the guard needed nofurther training from him, Tajima dis-missed him.

Managers do not actually die for thecompany unlike the samurai for hismaster; they just die manrg.g. Butthe samurai's mastery of death moreclosely corresponds in the art ofmanagement to the manager's accep-tance of responsibi l i ty for hisdecisions and their consoquonces,whatever they may be. Thus, the ul-timate test of managership is not theamount of techniques, experience,and energr he hag but his complete

determination to stand by his prin-ciples and decisions in the company,oftentimes to the extent of sacrificinghis future and neglecting his familnboth of which could be worse thandeath.

Escape Artist Managers

I lnfortunately, manyof thosewhom|\Jwe call and payas nmanagersn turnout to be escape artists especially1ry[s1 things gowrong. Theyhave per-fected only one trick through sheerrepetition: escaping responsibility.There are two waln to perform thiswell-rehearsed stunt:

o 1) the disappearingact- an actdone when things go wrong be-cause of you and there is stilltime to vanish and get some-body else blamed

o 2) the pointing-finger trick -what you do when there is notime to disappear because thecurtain has been raised" and youhave toblame (point afinger at)somebody, anybody, for yourmistakes.

These managers are true masters notof management but of saving their ownskin; and their tribe is increasing. Sonext time you hire a manager, look intohis eyes and not at his lips; he maybean escape artist who could ruin yourcompany. But check again. You mayalready be running a circus.

P*tt"*.f@MANII.A CHRONICLE.

From the AlumniRelations Office:

lf you have recently movedor changed jobs or you knowof an alumnus who has recent-ly moved or changed jobs,please. send this informationto Emy R. de Veyra at the ad-dress below.

Alumni Relations OfficeAlumni Relations Director

Asian lNtituts of Mqnagement123 Pasoo de RoxasMakati, lbtro Manila

Philippincs

1 2

FEATURE I

Traditional Financial Feasibility StudyVS.Statistical Financial Feasibi lity Aralysis

by Alejandino f. Ferrena

fhrough the years, major invest-I ment, loan and/or corporate direc-

tion decisions have, more often thannot, been made via the use of tradi-tional feasibility studies. This ap-proach to the decision making processhas been useful in identifying thefeasibi l i ty of the market, the bestproduction capacity and technologyand ultimately financial feasibility. Inaddition, the traditional process hasalso been appended with the use ofsensitivity analysis. This appendedprocess was the changing ofcertain as-sumptions/parameters in order toevaluate the impact of these changeson the financial feasibilitv of the studv.

What is the TraditionalApproach?

fhe financial study traditionally in-I vestigates the rate ofreturn after

produci"g a proiected cash flow state-ment. The financial study is supportedbyfive other studies. The five areas ofstudy are management, marketing,technical, taxation and financing. Themaior foundation of the five studies isresearch to find out what options areavailable and analysis to determine thebest option. The output ofthese fivestudies is a necessary input to thefinancial study. The output is utilizedas assumptions for the f inancialprojections in order to determine thefeasibi l i ty or prof i tabi l i ty of theproject. The financial study is really areturn on investment (ROI) analysiswhich takes the initial requirements ofthe project and compares this to theseries of net cash generated by theproject available for dividends orpayback. In general terms, the fivestudies earlier mentioned support thefinancial studyillustrated in Figure 1.

What is normally entered into thefinancial study from the five supportstudies are the expected or proposedbest opt ions. After the f inancialanalpis process, the inputs are trans-formed into expected prof i ts, ex-pected investments and therefore ex-pected return on investments.

The traditional process emulatesdynamism through sensitivity analysis.Some of the expected output assump-tions of the five support studies are

changed and the resulting financialprocess shows how the ROI is af-fected. After a series of sensitivityruns, conclusions are drawn on vfiichassumptions are critical.

What is Statistical FinancialFeasibility Analysis?

he statistical financial feasibilityanalysis process is structurally the

same as the traditional process. Thefoundat ions are the f ive supportstudies. The objective of determiningfeasibility 1fu'srrgh a financial processis still the same. The measure of usingthe return on in'*estment as a criteriais also unchanged.

The basic difference is in the re-search methodology before fi nancialprocessing and analysis of the returnon investment. In areaswhere the out-put of the frve support studies is statis-t ical in nature, the research andanalysis must produce a probabilityd is t r ibu t ion ins tead o f a s imp leaverage or expected value. It must beaccepted however, that some of theoutput ofthe five support studies cannot be described in a probability dis-tribution. In such cases, they shouldkeep their current format. Figure 2shows examples of the output thatmaybe expressed in probability distribu-tion and those that should keep theirtraditional format. The basic criteriafor the classification is the uncertaintyor certainty of the research results. Ifthe data is certain then there is noneed to express it in a probability dis-tribution.

The second area of major differenceis the process before the financial cal-culation. Since some of the output ofthe five support studies are probabilitydistributions, these can be simulatedusing any of the available simulationtechniques. Each of the simulatedvalues together with the output, whichshould maintain its traditional format,can be processed by the traditionalf inancial process to compute thereturn on investment. The simplxlieaprocess and financial processing oftleresults shouldbe done atleast thir-ty times in order to emulate the nor-mal curve. This could be the initialsample and using the return on invest-ment as the sample variable; samplingsize, accuracy and confidence levelequations in sampling theory can beapplied to determine the required

Fqure 1 - Study Relationrhips

Qtrcry

6''Tcrlfi*oft$es8

13

and the desired accuracy and con-fidence level. Basically, samplingtheory would indicate how nany timesthe simulation must be made in orderto achieve the required accruacy andconfi dence level of the resulting returnon investment. This approach clearlyopensthe risk analpis capabilityof thestatistical method. One must admitthat two projects with the same returnon investments are not identical iftheir standard deviation or consisten-cy with reference to the average arenot the same.

The benefits of thesimulation approachclearly surpass the

lmowledge of the (NerageROI compoundcd with

sensitivity analysis.

Thisbrings us to the third major dif-ference between the traditional ap-proach and the statistical approach:Statistical analysis that can be per-formed on the resulting return on in-vestment distribution. Not onlythe erpected value (average or mean) can bedetermined but also the median,mode, maximum, minimun, range,average deviation and standard devia-tion. In addition the Return on Invest-ment distribution can be presentedgraphically for ocular risk analpis.

The other useful utilityof the processis the identification ofsuccess orfailure factors. A range of ROIs canbe declared omens of higb risk or al-mmt certain failure. From these, thesimulation can be reviewed on whatwas or were the factors that causedthese sets of low ROIs. These can belabeled the failure or critical factorsthat can cause the project/investmentto be a higher r isk. In terns ofmanagement, these maybe the factorsthat may need verification and/orcloser supervision.

On the other hand, a range of ROIscan be declared successful. These arethe success factors or what is makingthe project/investment feasible or vi-able. Again in terms of management,these are the factors that may be in-sured to be true and if proven truewould require less supervision. Asimple example: To illustrate the com-parison, take two project proposalsbeing considered as inriestment alter-

natives. These are Project A andProjecl B. The traditional process ispresented in Erfribit 1.

The resulting ROIs of 29.33Vo forProject A and 32Vo for Project B donot seem to be very di f ferent.However, the ROI is an averagewithout any indication of consistencyor deviation.

Exhibit II is an example of the application of this statistical approach.The difference at once would be in theformat of the output of the five support studies. The output instead ofbeing a single figure is a probabilitydistribution.An application of simulation on the

probabilities using the traditionalfinancial framework generates moreinformation about the two projects(Exhibit II B).In Erhibits III A & B and Grapbs I

& II, the statistical analysis of thesimulation are presented. Clearly, thetwo projects can no longer be viewedas similar. Project A has a loweraverage ROI but is also more consis-tent. The grouping of the simulatedROI is clser to the mean. Project B,although having n higfier ROI, is more

dispersed or spread. The ROI canrange from alow of.ZVo to a high of52%. This is wide compared to ProjectA's range of T2Voto8Vo. This is fu-ther validated by the difference instandard deviation (5.61w. n.m.

From the analysis, Project B, al-though demonstrating a higher ROI,is more risky. The information thatcan be drawn out does not end here.The analysis can also be enhanced bya frequency distribution of the ROIfor both projects. This can be seen inGraphs I & II. Graphically, the rangeof dispersion of Project A is narrowerthan Project B. This graph shows how

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Irtuffilrls,.irrtumf,&rimumltedlan

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Exhibit lll C. Froquenqy

Frequency Distrtbuiiofl

ProtsctA, Pro{ec{ B

f f i s 06.ffi 0 s.m* |

rO.fi% 0 r0-g* o]15.ffiO lSffiOp,9q0 2o.9gt o?5.00ee 2$.00* 0'30.00s�3 90.00* 13S.0096 3 36.0ffi $4AQ?6 e 4O.00t6 $l,15.00* 0 !6.00* Orfo.qcl?$ 0 5fi0@q r;s5.ry6 0 SS-@ i:

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fhg0i3000 0.ro lqfoq o.2o r5000 o.{03ffi O.&,sooo n*,

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much more risky the project is. ProjectB has a chance of having a2Vo R.OIbut Project A has no chance of havingan ROI lower than 22Vo.The gaphi-cal presentation is only a duplicationof the statistical tables. Some readersare more comfortable with graphs;some in the tables. Either way theanalysis points to the same conclusionon risks.

Whya LowROl

F3"h Project can be further sub-f jected to causes of success orfailure analpis. Based on the simula-tion, the cause of a low ROI can beidentified. For example, on Project B,

1 5

I

I

I

p ! q @ F o @ ,o*? 0.23 0l(

F%*rr nnr^l., Brrbtq gqtor voft{r*, Z 8|hr\bftrdsEquLhrit&fdonUfnrndmld,n$rrA q.&gfi,lo.ftrtffi .+ Tott liiloln trft.hinlhn,

. f, Rtrrthml,lt*trbtBalihtFrrlrffiGo*F.rt{s'a F4rlFrylilChrikuii

. r. nsdom${nbrygdf fu DlrlrrtrberQqdFqtlrne thrdl"SorcodF*tl!il '8. FEntomHffiSrHhFb6dtJffilt€.OoC.t0. ftHcffiurqillPruq . l

I t, nmOca $rn$* gr|b mr fnoC Marfdng Co{ie F0ildl4fittUtg0(ti lte. fqld!@ffittu9oG4L lliri*!.|ii..*eid lt[. T{tat

. . i , r t i i

***tt;;.{dt4rdu'.Ihr.rupmolfr.lhfidon hrru u. dl|.r *Fn fr rHbHcd uafldilvh p.e.r'l b..rE r.gdd u|. rdrt'$rn Sr| rffi nduiry

htU{-acr*iL.lranrL rtudrrd b.t rh-d h rcludet6gba-aand. lht n$. mrd t|,d !. srhD.l h rckd spgfl.* * t : . , , '

the ROI of.2Vo canbe traced to lowvolume and highnnit marketingcost.In reverse, the suc-cess factors can alsobe ident i f iedthrough the sameprocess.

Conclusion

fhe benef i ts ofI the simulat ion

approach clearlysurpass theknowledge of theaverage ROI com-pounded with sen-si t iv i ty analysis.However , thes imu la t ion ap-proach requ i resmore researchand/or study priorto the f inanc ia lanalysis. This e$raeffort for researchis a small input con-s ider ing thebenefits of knowingthe ROI distribu-tion and the causesof success orfailure.

rheFederation"tfi :,'fil,lHJ::tHril#*asementGArM)

Will Hold its Annual Meeting

September L5 - 17, 1988Theme: Small and Medium Sized Enterprises and

Businesses in Developing CountriesMake plans now to attend. For details, call orwrite any alumni association office orcontact:

Emy R. de VeyraAlumni Relations Office

Asian Institute of Management123 Paseo de Roxas

Makati, M.M., PhilippinesTeL 874G11

Teler 63778 AIM PN

16

FEATI..|RE

Women in C orp orate M anagement

Getting to KnowtheWomen Managersof Sor.iineastAsia

by hctoia Bantug Hoffarth and E.SorianoAlmaio

fhe woman m rl.ager is increasinglyI making her mark in Southeast

Asia's male-dominated managementscene. In a manner of speaking, shehas searched and found an executiveroom of her own, notwithstandingsuch obstacles as working conditionsoriented to male behavior, lack offemale role models, and social valueswhich discourage the participation ofwomen in corporate decision-making.All these make her- the SoutheastAs ian woman manager - aphenomenon which demands study.What are her dreams and aspira-

tions? How did she get to rvhere she isnovf How does she peroeira herself?What are the opportunities and con-straints she faces? What makes hercareer path different from her malecolleague"s? What are the trade-offsfor corporate success? What role doesshe play in thp fastest growing regionof tlieworld?

The challenge of answering questionslike these led a group from the AsianInstitute of Management (AIM) toconceptualize a project and to seekfunding from the Canadian Interna-tional Development Agency (CIDA).

The result is the proje ct WomenManagers in Business Organizations(WMBO), a five-country cffort thataims [e promote the development ofSouthe ast Asian women formanagerial leadership in Indonesia,Malaysiq Philippines, Singapore andThailand.

The project objectives include theidentification of successful womenmanagers in these five Southeast Asiancountries and the documentation oftheir career strategies, managerialpract ices and experiences in theSoutheast Asian management envirm-ment. The intention is to identi$ fac-tors behind their success dnd to usetheir strategies and experiences as rolenodels for otherwomenwho equallydesire to advance in their careers incorporate s.sftings.

Such models will be used in der'eloping training materials and workshopdesigns for management developmentprograms, both for women managerswho aspire for career growth and forpoliclmaken in firms which employ uare planning to employ more women inmanagement.

Finding a paucity of background in-fornation on Southeast Asia's womenmanagers, the project undertook apurposive survey in order to draw aworking profile of women managers.This paper is a resuft of.that survey.

Retncing the Regearch Steps

ln 1985, the WMBO project teamlbegan to compi le l i s t ings o fSoutheast Asian women managerswho could serve as survey respon-dents. The dethbd used was multi-tiered. With defined sucoess criteriaensuring seniority in position in com-panies w. i th a minimum of 100employees', the team solicitednominations from rrarious sources in-cludi"g the AIM board of governorsand alumni chapterq multinationals,chambers of conmerce of variouscountries, and editors ofbusiness pub-lications. The lists generated con-

tained multiple mentions and werealso considered insufficient for largesanple survey. The names in the listswere consequently augmented withnemes generated from business direc-tories, trade magazines, corporate an-nual reports, and telephone interviewswith officers of personnel depart-ments of large corporations. Includedin the second li5ting were women per-ceived to be occupying senior andmiddle management positions.

From the master list of close to 3,0fi)names, 890 corporate womenmanagers in the five countries weresent survey questionnaires. They werechosen on the basis of seniority of posi-tion, industry, and functional (i.e.marketing, finance, production, etc.)representation. A total of 343 or S.SVoof the recipients sent back completedquestionnaires which took as long as anhour to answer. Such a high responserate may be an indicat ion of therespondents'keen interest in the sub-ject of the study, andin their sympathy

for the objectives of the project.Segregating professional corporate

managers from the entrepreneurs andthose who worked in firns mmed bytheir families was not an easy task.Thus, some members from the lattergroups were inadvertently included inthe sample. As a result, of the 343

Scniority of pcition was dcfiaed as folloq6: If thc managcr bclonged to a smalt conpaly (100-500 emplqrccs), shc ehould bc the chicf cxccttiveofficcr; if hcr companyrns largc (orcr 5([ empkryecs), sbc should bc at lcast thc cxccutirrc vicc prcsidctrt or its cquiralcnt, ot should rcportdircctlyto thc cxccutiw vioc prtsidcnt or its e4uiwbat" In additbq thc nomincc's busiocss organizr6ra .*, * highlvisiblc in thc long tctm.Hercoorpcnsatioo must bc high cnough to place bcr in thc uppct incomc brrkct in hcr ommunity.

17

respondent s, 27 5 were corporatemanagers, 32 were enhepreneurs, and36 worked in their families' corpora-tions. Since the study only wanted totarget professional corporatemanagers ( i t was decided thatentrepreneurs, for instance, had dif-ferent concerns and should be subjectsofa succeeding project), the protocolsof entrepreneurs and those whoworked for their families'firms wereexcluded in the analysis of the data.This brought the total sample size to275. Of these, 62Vo were seniormattagers and the remaining 38Vo weremiddlemanagers.

In terms of residence,29Vo were fromthe Philippin es; BVo from Singapore;ZlVo from Thai land; 15Vo fromMalaysia; and 13Vo fr om Indonesia.

Notes on the Presentation

ls there a typical Southeast Asianf corporate woman manager?At best, the answer is a qualified

yes- if the idea is to draw a compositepicture of the subject. To be sure,creatrng some kind of a stereotype hasmajor flaws. Nonetheless, such asimplification has its neritg foremostof which is that a vivid image can beformed in the mind x1d s5ily recalledA compmite picturewill therefore be

presented here, drawn on the basis ofdominant clusters of responses tospecific surrey questims. Readers whowish to know more detailed break-doqns can write to the Institute for ad-ditional informatim.

Personal Profile

1f,lhat kind of a person is the "typi-UU cal" Southeast Asian corporate

women paneg€r? She is young 31-40years old, believes in a deity, holds atleast a university degree, and canapply at virrying degrees what shelearned in school to her work. One outof frvc chances, academically, she ex-celled enougb as to enjoy a local orforeip scholarhsip.

She likely grew up with four or morebrothers and sisters, and as such, shemust have learned early in life the vahpof sharing and getting along withothers. In terms of birth order position,she is likely to be a middle child- thatis, neither the eldest nor the youngestin the fanily.If the middle birth orderposition is disaggregated into second,

third fourth, etc., however, it may besaid that she tends to be the eldest inthe family.

She is more highly educated thanboth her mother and her father.In thecase of the Filipino, her father had auniversity degree; not so in the othercountr ies. The Southeast Asianwomrn manager - but again, t\is doesnot apply to the Filipino manager-was typically raised by a full-timehousewife-mother who did not obtaina university degree.

It is interestingto note that, while themiddle class in Southeast Asiansocieties is still a relatively minor seg-ment of the populatioq itwas probab-.

ly the countries' middle class whichnurtured her and shaped her valuesearly in life.

Memories of Youth

fl mong her experiences beforel{reachingtheage of 18, thefact thatshe was introduced to hard work earlyin life stands out: she had hard-work-ing parents and studied in schoolswhich stressed discipline and hardwork. But even if she remembers achildhood filled with responsibilitiesin the home, and parents, especiallymothers, who were disciplinarians,she nerpr doubted their affection for

53%43%

18

her. Outside the home, she was al-lowed only restricted novement, butwithin iq she assisted in the planning,budget ing, or supervision ofhousehold affairs.

In her youth, she dreamed of becom-ing "importantn someday. At 18, shethought she knew what she wanted outof life. As to whether she is now doi4gwhat she would have wanted to dotheq the likelihood is only four out often. Did she ever see her future as thatof a wife and mother? Not quite: onlyone out offour chances.

At Work

11;hich types of business nurtureU U the Southeast Asian corporate

wom:rn manager? While the search forher was a purposive one, ensuring thatdifferent industry sectors were repre-sented, the fact that she did show upin these sectors indicates that she hasa rightful place in the management ofany type of business. Without thisselect ion cr i ter ion, howevef, shewould likely have been found in bank-ing and finance.

Furthermore, reflecting the tradi-tional role of the Asian woman askeeper ofthe household purse stringgshe tends to have corporate respon-sibilities involving financial manage-ment. She has ten or fewer direct sub.ordinates. Her Thai colleague is anotable exception: usually employed invery large companies, the Thaimanager has a wider span of control.

Interpreting her basic annual salary ishiclry, and, like most questions on in-come, requires a more cautious ap-proach. In U.S. currency terms, herSingaporean and Malaysian colleaguesare thebest paid in SoutheastAsiaSince her husband earns a comfort-

able income himself, the SoutheastAsian woman manager's primaryreason for working is not economicconsiderations, but rather, psychicsatisfaction. She works because shefinds pleasure in accomplishment. Sbealso seems to have a high need forfinancial independence.

Outside Work

fhe Southeast Asian womanI manager is typically married for

10-19 years (except for her Sin-gaporean colleague who is generallyyounger and has been married 1-9

. ' . : . . ' . ' . : t

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f f # � ,ry�6#*

years). Ifshe is single, a 50-50 chance,she is still aspiring to get married. Herhusband is typically a university de-gree-holder. She has onlyone or twochildren, a stark contrast to the bigfamily she came from. If she happensto have no children, again, a 50-50chance, she is still hoprng to have one.

Shelives with an extended fanily andhas additional support in the form ofdomestic helpers.

Management Practiceg

ime is a direct input to the womanmanager's management practices,

and company business does exact agreat toll on her waking hours. Sheaverages approxirnately 9.6 hours perday working on company business.Relegated to less than two hours eachare activities related to the family,housework, education and recreation.

The Southeast Asian womanmanager has a set of nconstantsn in hermanagement practices, whether shecomes from Indonesia, Malaysia,Philippines, Singapore, or Thailand.Across countries, her managementpractices are highly consisten[ in her

own assessment, she possesses per-sonnl values that match with the valuesofthe organization; she actively cul-tivates a netwuk of contracts; she usesa personalizsd approach to employeesunder her supervisim although she in-sists on finishing a task even if it dis-pleases dhers; and she works beyondregular office hours.

Perception of DifferencesBetween Men and WomenManagerc

he typical woman manager is up-beat when she compares herself to

her male colleagues. In her view, thesupposed distinction between thepotent ials of men and women inmanagerial posi t ions is overem-phasized. A woman is not necessarilytoo emotional to become a goodmanager and neither is she necessari-ly less skilled 6 fu6rllingwork-relatedstress. Moreover, to succeed in male-dominated organizations, a womanneed not behave like a man, she onlyhas to fight for her rights. She probab-ly would also have to be more com-petent andwould have toworkharder

19

if she wants to keep pace with theprogress of her male colleagues. Stil[she believes that in due course, peoplewho are good in what they do regard-less of theirgender will receive properrecognition.

Obstacles to Corporate Success

lor every Southeast Asian womanI manager who sees obstacles to herqueer development, there is anotherwho sees none. More often than not,the woman manager who seesobstacles attributes these to the worksituation rather than to herself or toother circumstances outside herselfand her work. Moreover, she stronglybelieves that her efforts alone are notsufficient to remove such hindrances.

In the work situation, she perceivesthe obstacles mainly as limited oppa-tunities for advancement and as sexdiscrimin ation. Such perception is par-ticularly strong in the case of theMalaysian and the Singaporeanwomen. The Indonesian manager ismost emphatic about her inability toresolve her personal conflict withrespect to the role of women.As far as obstacles outside the work

situation as well x5 !e1 eqra limitationsare concerned, lack of time due todomestic responsibilities and limitedpersonal f inances stand outprominent$."

Moving Up the Corporate ladder

wil',ff:1ffff:?:ir##ifiH:perception of the Southeast Asianwoman manager, the support of herboss or "mentorn and the contactsmade through work are the leadingdeterminants of success. To theFilipino manager, contacts made inschool have a perceptible impact onsucceis, perhaps because she spentrelatively more time in school com-pared to her counterparts in the otherfour countries and was thus able to es-tablish longerJasting networks amongdumni.

More than such personality traits asassertiveness, or personal values such

$fl

good rtqrlagercWomffidonot reed to behawlike rnenWorpn have'to ftght fior fight$

cafeord$doFnentObstaCles fond in work situation

t^tomen have to be more competitiveArorkhrderllanmen

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:

2 Qucstion/s regarding husband's support was inadrcrtently left out in the guestionnairc but was unirrerrally mentioncd in the succeeding dcpthintcrvicws as a basic factor fo'r corporatc Eucccss.

20

LetUs Help ShapeYour Caieef...

The Placement Office Offers The Following Services:

C are e r Re s ource I nfo rrnationMid-Career Placement

C o uru e lling and. C are er P aft emin gB wine s s P artn ers hip D ev e I opment

We have a regional network of prospectiveemployers and joint-venture partners who would

be pleased to receive your updated resume.

For inquires, urite or call:Susie T. Arroyo

Director for PlacementAsian Institute of Management

123 Paseo de Roxas, Makati, MCC P.O. Box898Makati, Metro Manils, Philippines

Tet 87-40-11Telex63778 AIMPN - Cable Address: AIMANILA

separated or widowed. A third of cor-porate women managers have nochildren.

nCareer or Homen is thus a labelwhich conveniently captures tle con-flict that she mayfaceas she decides towork hard in the world of corporatemanagers. However, she has friendswho somehow strike a balance be-tween home and career and end uprusces.ling in both. Relatires in her ex-tended household, as well as readilyavailable and inexpensive domestichelp are sources of support deniedmany of her Western colleagues. Espe-ciallyif she and her husbandare 'oun&chances are her husband helps withdomestic chores.

Epilogue

This article has barely scratched theI surface of the work which must be

done to truly understand the

Southeast Asian woman manager. Al-ready, the project staff is preparinganother paper which will comparesenior managers with middlemanagers to gauge the similarities anddifferences in their demographicbackgrounds, management practicesand attitudes towards their careers,etc. Cross tabulation and correlationof certain factors "1s nll5s Ssing done.

Case studieswhich document the ex-periences of 30 senior women execu-t ives in the f ive Southeast Asiancountries have been prepared, alongwith teaching materials for seminars mwomen in management.

Again, funded by the Canadiangovernment, a textbook on women inmanagement in Southeast Asia is duefor publication this year. AIM con-tinues to offer seminars which targetwomen niddle managers as well ascorporate policyrnakers who plan tointegrate women in higher manage-ment lwels in their cmpa"ies.

as honesty. Hard work, competence,and talent are perceived to be the ir-reducible persmal athibutes a womanmust have to succeed in the businessworld. The Indonesian manager con-siders natural talent supreme overhard work and competence. TheFilipino manager puts a premium oncompetence. For the Malaysian, Sin-gaporean, and Thai managers, it ishard work which counts most.Whatever the ranking in each coun'try,the typical Southeast Asian womanmanager believes that talent, com-petence, and hard work are the mini-mum necessary conditions for success.Oneneeds some degree of talentto becompetent, and hard work is simplycompetence appliedWhat does nsuccessn mean to the

woman corporate mnnager? The fac-tor which accounts most for her per-sonal satisfaction is career success.Fulfillment of family needs comes as adistant second.

Moreover, while rating herself in theupper half of the career "success" lad-der, and feeling relatively satisfied withthe degree ofher succesg she still feelsshe has not reached her limits of suc-cess, that there is room for stretchingout if shewished to aspire for it.Thus, for happiness and personal

satisfaction, the Southeast Asianwoman manager must first of all havesuccess inher career whichshe definesas a sense of fulfillment, more thanpower, wealth, or prest ige. Hermotivation to rise up the corporate lad-der is thus self-propelled.

What Prace Success?

6uccess however, is not all utopian.rJShe clearlv believes that it has aprice. Trade-offs most often come interms of less than ideal family rela-tions, or she can eran miss the optiontomarry.Indeed, out of tenwomenex-ecutives, seven are married, two aresingle, and one is either divorced,

21

FEATUREin mind that I an describing differentparts of an elephant. In this case I willuse the metaphor of the humananatomy for it is much more aproposto the task.

Self-discovery of a brilliant idea iswhat we may call an insight. It is themissing link that puts a complexpuz-zle together. It is the quintessentialthoughl that crests thewaves ofthink-ingpatterns. It is aburst of light, a sud-den realization that a solution to aproblem can and will work. Itemanates from man's analytic andcreat ive bra in p rocesses . Theentrepreneur oftentimes starts fromsuch an Insight. About himself. Asituation. A technology. An innova-tion. A market need. A project ideathat translates into a business venture.

The entrepreneur is acommunicator. He is able

to sell his ideas tofinancial backers orskeptical consumers.

The entrepreneur is an insightful man.He is f i l led with imaginat ion andwonder. He generates ideas throughbrain processes u&ich utilize both theleft side (analytic) and the right side(c rea t ive) o f the c ran ium. Theentrepreneur is one who brings his ex-pertise, knowledge and technicalprowess together in a thr iv ingenterprise.

The entrepreneur is a man of hidtty-developed senses. He JeeJ oppor-tunities, smells dangers andhears aslampede a mile away by keeping hisears close to the ground. He is able todiscern true gold from false glitter.He can sniff the lethal effects ofpoisoned brew as well as savor thefragrance of good vintage wine. He lis-tens to learn and to know. A blind manfrom Hindustan might say that theentrepreneur is very much like a pairof eagle eyes, a bloodhound's nose oran elephant's fan-sized ears.

The entrepreneur is a communicdor.He is able to sell his ideas to financialbackers or skeptical consumers. Hedevelops friendly contacts, reliablesuppliers and loyal buyers. He is so-ciable when socializing silent whenuncertain, gl ib when provoked,laconic when cautious and oratoricalwhen formality prevails.

Wionaries and tinl<cren...

The Anatomy OfAnEntrepreneur

by EduardoA. Morato, fr.

escribing what an entrepreneur iswould be, at best, an exercise very

much like the story of the blind men ofHindustan who, upon touching dif-ferent parts of an elephant, qrme upwith as many descriptions as the partsthey felt with their hands. One upontouching the trunk said it was verymuch l ike a snake whi le anotherembracing a leg thoueht it was a pillar.S t i l l ano ther f lapp ing an earproclaimed it was a fan... and so on.

There are theories upon theories onwhat makes a good entrepreneurranging from Freudian models tocharacter or personality traits. Testsof entrepreneurial quotients are evenbeingbandied around as predictors ofentrepreneurial success.Yet manyrerynize that different types of busi-nesses, or occupations for that matter,attract a potpourri of personalities.And there is no one universal businessor occupation. So how can there beone universal entrepreneur? A chemi-calplant might turn offan accountant,while a stock brokerage house wouldbe boring for a nuclear physicist. Amechanic'al engineer might love in-venting a new machine he could sell toa great number offactories but an art-ist would be inclined to set up an ad-vertising shop. Their temperamentsand styles of management wouldprobablybe poles apart. Or theymighlnot. Who knocxs?

In my research on entrepreneurs andenterprise development, I found a richspectrum of personalities. The busi-nesses they ran seemed to be per-sonality extensions of themselves.Their motivations and objectives camefrom all sorts of directions. Somewerejust plain bored with their lives, othersobsessed! There were angryyoungmen and genteel retirees. There werevisionaries and tinkerers.

Having made that caveat, allow meanyway to contribute my two-bits towhat makes an entrepreneur, keeping

The entrepreneur has substance orbody.His enterprise is supported by agood organizational network, firmbones to holdup a strongbody. He hasa good circulatory system for the freeflow of ideas and products. He is well-muscled for the long hard struqgle formarket share and profits. He has agood product physique that attractscustomers. He has a solid rib cage thatenvelopes vital organs like the heartand lungs. The heart is vital for long-run commitment to work and the lungsessential for enterprise sustenance.

The entrepreneur can stomach mostcrises.He has the guts to do thingsbeyond the usual cry for iust gettingthings done. One thing about theentrepreneur is his ability to grapplewith uncertainties and the cruelties ofa harsh environment. He is able totame risks with his determinnlisn an6single-mindedness. He has courageand endurance.

The entrcpreneuris a doer. He workswell with his hands. He is not afraid toget them dirty in the shop, wipe themclean and extend a firm handshake.The hands put him in touch with hissurroundings. They feel the situationfor more down-to-earth assessments.The entrepreneur's hands mold hisdrerms into tactile realities.

Then there is the entrepreneur 'sbasic libidinal drive which allows himto multiply his resources, expand hisbusiness and produce new ventures.He is driven to seek challenges, ex-plore opportrrnities, risk his futureandhope for the best even in the face ofgreat odds. He dares to penetrate newmarkets and filter environmentalchanges. He is a complete person,bothyn ndyong. He has the aggres-sion, abstraction and passion of themale and the patience, meticulousnessand tenderness of the female.

The entrepreneur is mobile andflaible. He has legs and feet that per-mit locomotion from one product toanother, one market to the next, fromsmall to large, single to complex, andoperations to strategy. Locomobilitygets him going.Finally, the entrepreneuris an adven-

urous spiril spa*ed by highlyahatgdmissions and visions to innovate andsucceed. He is the soul of theenterprise, the primordial life forcethat creates the venture of his dreans.

z.

22

l r itr

ti ,

PhW Ellaluico, MBM'73

Taminq theAgraridn Tiger

f fg ra r ian re fo rm po l i cy in theItPhilippines has been called manythings, but it has rarely been calledfair. The controversy associated withred is t r ibu t ion o f lands and thedevelopment of an equitable policywith which to implement reformpromises long days, short nights, andendless explanations to angry ownersand farmers.When President Aquino selected

Philip Ella Juico to head the depart-ment, she knew that the job required ahard-nosed manager who retained anunderstandi.g of the delicate relation-ships that had to be re-established andmaintained in order to successfullvcarry out true reform.

Results-Oriented Management

Elopoy, as he is called at AIM, wasl-setettea to lead the governmentprogram ofredistributing lands to thelandless and creatings systems andstructures to support the reformprogram. He says he accepted whatmany cpnsider a largelythankless jobbecause, " I be l ieve the pos t i s amanagerial challenge. The govern-ment needed somebody who couldpush the program as a results-orientedmanager and not as a social crusader.n

The "walls of division" that Popoysayappear to divide the friends and foesof agrarian reform will be tough toscale. Notable among these are, "the

wall of historical prejudice that sur-rounds the concept and use of privateproperty and the wall of conflictingdesires brouoht about by the clashinginterests of landowner, tenant farmerand farm worker.nDAR's new director came prepared,

however, with many of the tools andexperiences he will need to tear downthe philosophical walls which haveprevented true reform in the past. Inaddition to his managerial training atAIM, Popoy previously served ingovernment under Arturo R. Tanco,former minister of Agriculture and

Natural Resources, as staff coor-dinator and director. He was alsoresponsible for policy formulation andmonitoring of programs such as theMasagou 99 and the preparation ofproject proposals for grants and loansto support such programs.

Following this first stint at govern-ment service, Popoy returned to theprivate sector as vice president of In-ternational Food and AgriculturalResources Management Services, Inc.(Interfarms). He also held positionswith Asiaphil Fisheries Corporationand Transnational Agri-system" Inc.He was assigned to the FederalRepublic of Nigeria as a consultant toassist in the establishment of two,5,0(X) hectare lowland rice farms and

f ish farms at 17 si tes whi le in theprivate sector, further strengtheningh is unders tand ing o f i ssues andprocesses related to agrarian develop-ment and reform. .

He has also managed simi larprojects in Sabah and Papua, NewGuinea. As general manager forManagement and InvestmentDevelopment Associations, Popoydeveloped markets for consulting ser-vices in the Asian Developnent Bank,the World Bank, USAfD, governmentagencieg and private organizations. In1986, he worked with the Cory AquinoMedia Bureau as associate director.

The First Six Months

/f fter six months at DAR, Popoyfrlsays his immsfinte tasks involve

nputting people in the right place.Rigbt now, we are strengthening ourinternal structure and capabili$. Weare engaged in institution building.That means building up the morale ofour people at DAR, too.n

This process has involved thedevelopment of policies and struc-tures for effective coordination ofmonitoring and evaluation activitiesamong the various agencies associatedwith agrarian reform, institutionaliz-ing project planning, streamliningoperat ions procedures, anddesentrelizing management activities.Popoy has also involved non-govern-dent organizations and private in-stitutions in the implementation of theComprehensive Agrarian ReformProgram.

Within the first 100 dap of his moveto DAR, the department had dis-tributed 325 hectares of the 1,645 realproperties of the Independent RealtyCorporation. Re distribution of 300hectares in the Jala-Jala Estate isplanned, and another 320,000 hec-tares under DAR control have beenreferred to regional and field offices.

Registration of all agricultural landowners began November L?lastyear.The information gathered throughthis registration process willbe used toassure effective and tair implementa-tion of land ownership transfer. Tofamilarize landowners and farmerswith DAR programs, Popoy haslaunched a major media campaignand organized workshops in the fieldfor administrators from all agenciesworkingwithDAR.

More than Philosophical Walls

f f ecause of the controvery as-IJsociated with agriculture andagrarian development, Popoywill facemore than philosophical walls as heendeavors to accomplish one of themost difficult tasks assigned to agovernment official by the administrx-tion. Those which must give their fami-ly lands up will invariabty feel that theyftavs fo6sn mistreated; but so will manyof the recipients of these lands, whowill probably feel that they have notbeen given enough land in the rightplaces.

This is the reason President Aquinoneeds a tough manager capable ofmaintaining delicate relationships;this iswhyshe chose Popoy.

23

RobertoW. Ansaldo,71

The results are the product ofdocisive stepg born of clearly set goalsand carefully developed strategies byRobertoW. Ansaldo (MBM'71), Un-dersecretary of Agriculture, and hisstaff.

Describing how AIM helPedprepare him for his present tasks,Bobby says, nI learned how to thinklogically and howto set priorities inthe face of the magnitude of the workand pressures from all sides." Headded, !I was trained how to be resultsand people oriented.nAmple preparation for the task at

hand now is also credited to his pre-vious involvement with private sectoragricul tural f i rms. He handledprojects for the displaced farmers af-fected by the unrest in the southernPhilippines in the early'70s. UntilJanuary, 1987 Bobby was with theAyala Corporation where he was theexecutive vice president and chiefoperating officer of the corporationsagriculture subsidiary, the AYalaAgricultural Development Corpora-tion.

Although Bobby admits that henever wanted to work in government,he had never ruled out the possibilitythat he migh1. "I had a feeling I wouldwork in the government, but it simplynever (rccurred to me inwhat capacity.The idea had been hovering at theback ofmyhead. Thus, when SpeakerMitra told me about it,I thought,probably this is it.

"After a good soul searching,Idecided to go into public service andcontr ibute my two cents'worthprirnar i ly because of PresidentAquino.

"She has all the integrity the countryneeds to lead the nation back to nor-malcy and recovery; without which,everything would be a sharq" he said.

The initial political and econonicchanges instituted by the Presidentsincc she assumed the presidency onFebruary 1986 have inspired Bobbytowork for the government which has,since then, promised to better theplight of the farmerwith increased netincome - a significant departure fromthe previors government's emphasison increased food production only.

Getting Down To Business

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

planning under Assistant SecretarySonny Estacio, Agribusiness underAssistant Secretary Pelayo Gabaldon,and foreign assisted projects underAssistant Secretary Ton Mercader.Together with the National Agricul-,tural and Fishery Council (NAFC) ofwhich Secretary Dominguez is himselfthe Chairman, he helped imPlementthebottom-up approach in the plan-ning process thereby involving thosethe Department is suPPosed toserve- the farmer. The NADC, sixtYpercent (60Vo) of whose memberscome from the private sector, is an ad-visorybody serving as a consultativeand feed-back mechanigm from thelowest level to the toP decisionmakers.

Bobby firmlybelieves that it is not thegovernment's task to earn income butthe private sector's. nGovernment

should send the signals, regulate ac-tivities, provide incentives, create cor-rect approaches while the private sec-tor responds to the call, and imPle-ments accordingly in the field," hestressed. He further added that be-cause of the magnitude of the work,the government can onlY serve as aconduit, while the private sector willhare to be largely depended on to getthings done as the engtne ofgrowth.

Another of the current Programsspearheaded by Bobby is the Farmer'sProfitability Cam paign intended tomake the farmer the nain concern ofthe Department, which has committeditself to the increase of the farmer'snetincome from a lowly P1,335 Per monthto at least P2,000 by l9V2."Kailotgorhtmita angmapasoko"n he stressed.

People Are The Key To Success

fhe program, with the participationI o f the pr iva te sec tor , indeed

echoes the central thene of theAquino government making agricul-ture the flagship for the growth of thePhilippine eoonomy. Bobby believesthat introducing the discipline of busi-ness is crucial to his success and thatof tf,e programs he nanages. nsystems

don't nake things happen; neither dothey prevent 1fiings from happening.People do."

Because Bobby surrounds himselfwith people who 6alse things happeqthe potential for successfully raisingfarm income is probablygreater thanit has ever been.

MBM

Taminq the

$gffil*riser:

fiver at the Agriculture DePart-Lfment, things are changing quietlybut significantly.

The department's thrust has under-gone a radical shift from the imper-sonal and general goal ofniucreasedproductivity to achieve self-sufficien-c/ to the personal and specific goal of"making farming profi table.n

This is not a simple case of changingslogans for a basically unchanged mis-sion. The mission has been fundamen-tally altered.

Re-evaluation of the departnent'stwenty-year work called the M as aganaalrd the M ai s agana demonstrated thatthe food production progran didresult in rice and corn sufficiency. Butit dso demonstrated that the farmernevertheless remained mired inpoverty.

"This is one of the great ironies ofmodern agriculture and the GreenRevolution - the farmer producedmore but remained as poor as ever,n aranking government official has said.

The Mission:

flresident Corazon C. Aquino hasF erpressed the uerl drssron ol theAgriculture Department clearly: nln

agricultrue, the role of the governmentisto create an environment that willmake farming pay for the farmer.n

Implementation of the new missionhas recently shorm tangible results:

o The dismantling of the fertilizermonopoly made fertilizers fortypercent (qVo) cheaper.

o The price of copra more thandoubled from P2.CI to P5.40 perkilo.

o The price of corn increasedfrom P2.00toVL.90 per kilo.

o People's councils were formedall over the country making thefarmers participants in decisionmaking.

" ' fIi

24

AIM DEVELOPMENTS

Career Dev elopment Advisory Plon (CDAP)

MM Admissions to lncorporate CareerPlanning

by Gaby Rqnoso

I luch has been wr i t ten aboutI U I managels lscoming square pegsin round holes when their areas ofresponsibility are matched with tasksthat are above or below their com-petence. Prof. Dale D. McConkey,writing inBr siness Hoimns expoundson this prevalent problem, nConven-

tionalwisdom suggests that a manageris a manager and therefore can be as-signed to anyjob as long as he or sheis competent to perform thatiob. Thiswisdom has a high degree of validity.However, it could be a great way towaste management talent and wouldresult in many managers workingabove or below their competence ifnot properly applied. Managementcompetence and experience should bematched with corporate strateg5r."

Matching managerial competenciesand experience with corporatestrategy is what the Asian Institute ofManagement's new approach to ad-missions screenirg for the Masters inManagement Program is intended toachieve. With the introduction of theCarder Development Advisory Plan(CDAP), Horacio Borromeo, Jr., as-sociate dean for mid-career programEbelieves that "AIM will be given achance to be a true partner in manage-ment development.n

Personalized Preparation Plan

!)artof the partnership that AIMf wishes to cultivate is a guaranteethat al l investments put into thedevelopment of a manager are soundand convincingly beneficial. Com-panies investing in a candidate in theMM program will obtain from AIM anevaluat ion of the candidate'spreparedness and qualification forgraduate management studies. Can-didates found to qual i fy for theprogramwillbe invited to enroll whilethose who, for one reason or another,do not qualifywill be provided with a

personalized preparation plan. Notqualifying for an MM program canmean that the candidate does not pos-sess sufficient knowledge, for ex-ample, in accounting a basic but im-portant area to a manager. Thus,under the personalized preparationplan" such a candidate will be advisedto study account ing through apreparation program CDAP will out-line specifically for him or her. Per-sonalized preparation programs maybe availed of with the assistance of thecompan/s human resouroe or person-nel departrnent. Satisfactory comple-tion of these preparation programs,providing all other quali$ing criteriahave been met, assures an invitation toenroll in the MM program.

Why are we sending them toschoontl\DAP ultimately aims to assistVcompanies in focusing their in-vestments in management develop-ment toward better c:ueer planning.According to Borromeo, it is wise forconpanies to assess what theywantout of their managers who attendgraduate management studies. Focus-ing on what and where the companywill be five or ten years from nowshould also include a fine-tuned viewat what skills and competencies themanagers will need to possess.

However, many companies fail to tapthe vast potentialities any managermay possess. This brings to mind thestory of one company who in order tosurvive had to downsize its depart-ments. It didn't take management longtorealizn the follyof letting one of itsjunior finance managersgo who after-joining another company (a com-petitor at that) proved tobe abrilliantmarketing manager. We do not haveto go on further to stress the point,much less to say, where the companyreally failed. But there are more thana few conpanies that have failed tosurvive because of their myopic ap-

proach towards fully tapping theirhuman resources.

Do we have such people?

1f, conpany takes fewer risks bY,Aeven at an earlystage, pinpointingemployees with managerial potential.CDAP is equipped with a series ofelaluation and feedback mechanismsthat test how well the company hasrecognized its potential managertalent pool. The process begins whena company sends AIM a l i s t o femployees who have higher-levelmanagerial potential, and who theywish to send for graduate manago-ment studies immediately or in thenear future. During this phase, thecompany makes explicit career plansfor the candidate.While the candidateis enrolled in the MM program, thecompany continues to receive evalua-tion and feedback fromAIM on hisperformance. This will allow the com-pany to monitor the candidate'sprogress and eventually plan for hisreturn in the company.

The feedback nechanism by nomeans serves a one-way purpose. TheCDAP is designed in such a way thatafter graduation, feedback may alsobe obtained from the company on howwel l the MM program met thecompan/s expectation and ultimately,served its needs.

The dichotomy is an obvious one: acompany that fails to acqirire the kindsof managers it will need in the futurehas, in effect, fai led to out l ine ablueprint for survival. Whereas onethat invests in the developnent of itsmanagers takes onlesser risks andim-pror€s its chances of meeting oppor'tunities head on.

FoTAIM's part, Borromeo aptlyputsit, \Mewant to make sure thatwhen acompany invests in a candidate, theyknowu/hat theywant toget out of thatcandidate.n

Interested companies maywrite toAIM's Admissions Office for applica-tion forms to the CDAP.

25

-ALUMNI AND FACULTY NEWS-

Alumni meet with Mendoza"Bonomeo, Silos

Jakatta!omecoming@nfercnoe

/f s part of the Institute's thrust forFlcontinuing education even outsidethewalls of the traditional caserooms,the Indonesian Chapter of the Alnm-ni Association recently sponsored aone-day conference open to all itsmembers and guests. Mr. RobbyDjohan, the chapter chairman andmanaging director of PT Bank Niaga,was the moving spirit behind the event.Hewas ably assisted byTina Ferroros(AMMP'�82)Held at Lembaga Pengembangan

Perbankan Indonesia (LPPI) inKemang, Jakarta on January 15, theaffair was the first of a series of semi-nar-type homecoming conferencesthat the chapter intends to conduct.Significant, too, was that it was the firsttime for the Indonesian Chapter tohold such a meeting under the

auspices of the Federation of AsianInstitute of Management (FAIM).

Some 100AIM alumni and specialf r iends a t tended the lec tu resdelivered by three AIM faculty mem-

bers and two Indonesian guestspeakers . The morn ing sess ionspeakers, Associate Dean HoracioBorromeo Jr., and Professors GabinoA. Mendoza and Leonardo R. Silogpresented various key success factonin organizations. Inthe afternoon, Mr.Sarwono Kusumaatmadja and Mr.Dorokjatun Kuntjoro-Jakti spoke oftopics beyond the corporate reelm todiscuss national economic and politi-cal affairs.

In his lecture titled Strategy For-nulat ion and Implementat ion,Professor Mendoza pointed out thatorganizat ional success can beachieved by developing a corporatestrategy which matches availableresources with market opportunities.He likewise stressed that resourcesand market opportunities are dynamisand that they are influenced by thelevel of the company's sense of socialresponsibility as well as by the valuesto which the top executives are oom-mitted.

Professor Borromeo spoke onmanrgirng people in organizations. Henaintained that people-handling goesbeyond the notions ofleadership andmorale; ratler, it derives from the keyarea of corporate strategy and im-plenentation. He emphasized thatnhunan resource management andderelopment require a clear shategicrationale from top management aswell as its conscientious and skillfulapplication down the organizationalhierarchy."

An innovation on the Western con-cept ofbureaucracy, which he calledthe nClann was the topic of the discus-sion of MBM I Faculty ChairmanLeonardo Silos. He contrasted theWestern and Oriental versions, andthe implied sienificance of the modelof the clan to Asian values. nAlthoueh

ancient in practice, the clan is a newconcept in organizat ional theorywhich could be used as an alternatiramode l to Western bureaucra t icrationalization.n As such, he proposedthat the clan theory be given moreserious attention by Asian managers,i t being more akin to indigenousvalues and perspectives.

The Indonesian alumni were given acandid presentat ion of nat ionaleconomic problems and prospects byMr. Dorodiatun Kunt ioro-Jakt i ,renowned economist from the Univer-si ty of Indonesia. He spoke of theparameters and var iab les tha tgenerally influence the situations,providing the audience an update forbusiness potentials and developmentin the 1990s. On the other hand, Ir.Sarwono Kus 'maatmadja, SecretaryGeneral of GOLKAR, delved onsocio-political behavior in Indonesia,thus conplementing the overall as-sessment of the national scene.

The talks were followed by an openforum moderated by Mr. RobbyDjohan, and I!ts. Susie Arroyo, AMdirector for placement ufiile AlumniRelations Director Emy de Yeyraserved as the master of ceremonies.

26

l .

f, IM graduates will have a chance toFlneet and discuss recent economictrends affecting snall and medium-sized companies during the eleventhannssl meeting of the Federation ofAsian Inst i tute of Management(FAIM) alumni associations, Septem-ber 15 - L7 n gingapore.

This year 's theme is "Smal l andMedinm Sized Enterprises and Busi-nesses in Developing Countries.nFAIM Chairman Gan Cheong Eng(MBM'82) said the theme is alignedwith AIM's object ive to trainentrepreneurial managers.The Federation, organized in 1978, is

an umbrella organization composedof national alumni associations ofAIM graduates from all over Asia.The need for the Federation was firstperceivedwhen the numbsl 9f alrrmniassociations formed outside Manilabegan to increase significantly in themid-70's. The first association established was based in Manila. The alum-ni chapters are Hong Kong India, In-donesia, Japan, Korea, Malaysia,Pakistaq the Philippines, Singapore,Taiwan and Thailand. The Federationwas officially inaugurated during theFirst International Conference inKuala Lumpur, Malaysia.

FAIM's objectives are: 1) to fostercamaraderie among AIM graduatesthrough continuous dialogue and ex-change;2) to set up an effective com-munications system in support ofplanned dialogues; 3) to disseminateand further develop managementtechnology among the alumni andother practicing managers in Asia; 4)to instill in the alumni an awareness ofsocial responsibility toward theirrespective firms, countries and theAsean region and,5) to uphold andfurther promote the objectives set bythe Institute.

The FAIM membership is open toany group of at least 15 AIM alumniprovided that there is only one recog-nized alumni association per country.

The 11-chapter strong Federation islaying the groundwork for increased

participation of chapter officers andmembers all over Asia in the development of Asean economies. "This istheir chance to echo the issues thatconfront their respective chapters andfor the others to offer applicable solu-tions," he said.

The first order of business will be aclosed-door meeting of the Federa-tion, followed by the InternationalManagement Conference (IMC)which will be open to the public andwhich will feature a number of distin-guished speakers.

I t the annual meeting the Federa-liltion will firmup plans for a moreefficient consultative process amongthe various chapters. \Ve plan to helpre-es tab l i sh the educat ive anddevelopment role of AIM in the regionand therefore need to define howwecan most effectively contribute to thisobjective." The Federation can sup-port and work with the Institute andnwe would like to see steps in thisdirection,n Gan continued.

He cited one key development in thisprooess: FAIM is nowrepresented onthe AIM Board of Gov.ernors andTrusteeg with full voting rights.

Other activities of the Federatio*in-clude an annual meeting of the FAIMBoard of Governors attended bypresidents and chairmenof all affiliateassociations and by Institute repre-sentatives. Participants present anddiscuss the annual report and futureplans.In addition, the FAIM Execu-tive Board of Officers holds meeti"sstwice a year, one of which coincideswith the annual meeting of the AIMBoard of Governors. Here, theyiden-tify, evaluate and design mechanismsto implement Federation policies.Another major activityis the Interna-t ional Management Conferencehosted annually by different associa-tions, where key papers by eminentspeakers are presented.

Yearly, the Federation confers itshighest award, the Triple AAward, todeserving alumni members svcellingin their own fields. The Select Com-

mittee submits nominees from eachassociation based on stict criteria ofperformance.

FAIM also co-publ ishes THEASIAN MANAGER, a quarter lymagazine, for all alumni.Itfeatures ar-ticles on successful management, busi-nesses and entrepreneurs.FAlM's or-ganizational structure consists of itsown Board of Governors, ExecutiveBoard of Officers and the Secretariat.The Board of Governors is the ad-visory and consultative body of theFederation and is composed of allpresidents and chairmen of all chapters.

The Executive Board of Officersconsists of the chairman and vice-chairman who are elected, and thesecretary-general and the treasurer,who are appointed by the Board ofGovernors.

The officers are: Gan Cheong Eng(Singapore), chairnan; Herminio B.Coloma, Jr. (Philippines MBM'78),vice-chairman; Anastacio E. Doria, Jr.(Philippines MDP'75), secretary-general; Stephen Lee Kuan Ee (Sin-gapore MM'87), treasurer.

The Mani la-based secretar iatheaded by the FAIM Secretary-Genrjral is the coordinating center andimplementing arm of the Federation.

Gan says that the Federation is anon-going, long-term activity. "Few

things can be achieved overnight.Even a one- year term is notenough todo many things. But I hope we willhave made some significant headwayby the time myterm ends. The nextchairnan " he added, "can pick it upfrom there.n

Gan said that the participation of allalu-ni in the annual meeting is veryimportant. The strength of theFederation comes from its nember-ship. If the menbership doesn't lendits support, it won't enjoy the benefitsa strong international alumni federa-tion is intended to make poasible.

Singapore

FAfM Confiab Set Sept. 1*17

27

The Taiwan Connection

Al M Signq Development Agreementwith Mm/lT

I

?he As ian Ins t i tu te o fI M"o"g" -e n t ' s long arm no lv

s t re tches to one o f As ia 's mostdynamic economies: Taiwan.

The Multitech Institute of Manage-ment and Technolog5r (MIMT), one ofthe members o f the MSC con-glomerate of Taiwan, recently signeda development agreement withAIMfor the structuring of its managementprograms. MIMT currently servicesfirms within the MSC Group, headedby one of Taiwan's well-knownyoungentrepreneurs and AIM governor,Stan Shih. Plans are underway to ex-pand its services to the public for thef i rst t ime in 1988. This step is inresponse to the private sector's in-creasing need for more defined andapplicable management courses forexecutives.

The MSC Group, formerly the Multi-tech Corpoatbn, b me of Taiwm's mctsuaessful persmal cmputer ompmbswith US$215 million in gross salesrevenues fa 1S7. EstaHishedin l9n,tfuMSC Group has developed a five-pronged structure in the compder in-dustry. Multite& Industrial Corporationis acmputer designer and manufacturer;theThirdWa!€ hrbfishingCaporation isa hfuh-techrcbgr pffl'ting bouse; Ser-tek International is a tradingoompany;Multirrentrne lillestnent, Inc. b Taiwan'sfirst venture c4lal firm; ad C,ontinentalSyatems, Inc. is a leading OEM manuhc-trner of persmal mprters.

Taiwan is fast evohing into a highlytechnologically advanced country,with US$90 billion in reserves to sup-port its growing economy.AIM has prepared th'ep rnrnagemedt

@urses for MIMT: the Basic Manage-ment Program (BI"f) for middle-lwelmanagers; the Management Darelop-ment Program (MDP) for senior-levelmanagerq and the Top ManagementProgram fiMf) fa top ereantirres

Professor Jesus J. Gallegos, associatedean for executive developmentprograms, said AIM has already sent 12professors to Taiwan for the BMP andMDPprgram.

MIMT's Anthony Lin, who is also anAIM ahrmnug handles the MIMT operations together withJohnWang MIMTdean and Multitech seniu vie president.To date, thirty-three middle-levelmrnagem hare completed the BMP arxJthirty-five senior-level managers havecompleted the MDP. The TMPfor toperccutives b sdeduled fu April this par.

Taiwan is iust one of the countriesbenefiting from AIM's managementprograms. Programs are also arailable inThailan4 Malapia, Indonesia, and Sin-gapqe"

AIM To Offer'F-xport Coune* ForEntrepreneun

Small and MediumDevelopments

fiuintin G. Tan, Canadian profes-\Isor of business management, hasbeen appointed to lead the design anddevelopment of an export course in-tended to provide entrepreneurs,manufacturers, and traders variedperspectives on exports and exportpromotion.

The course will be offered as an elec-tive forthe MI\4 MBM and ExecutiveDevelopment Programs.

Professor Tan is also involved in re-search into the business of sub-con-tracting, an activity he says is highlydeveloped in Japan.

nsome eighty-five percent (85Vo) otthe large garment firms and sixty-fivepercent (65Vo) of the smal l- andmedium-scale industries in Japan areinto sub-contracting.n Tan observed.

Tan added that theJapan experiencecan be repeated in the Philippines:nThere seems to be an indication thatitwillbe usefulto the multinational ex-port firms here. Local firms like theSan Miguel Corporation are now suc-cessfully using contract farming.n

Research on sub-contracting begannine months ago with the assistance ofProfessor Rene Domingo. ProfessorTan expects cases and concept papersto be completed within the year.

Pro fessor Tan has prev ious lyprovided specialized training andeducation to the technical staffoftheDepartment of Industry's Bureau ofSmall and Medium Industries and toa l l the smal l bus iness ass is tancecenters (SBAC) th roughout thecountry. The SBAC's provide directfirm-level assistance to small andmedium indus t r ies , reg iona lproducers, and industry associations.

A third related proiect, a studyon themanagement of successful small busi-nesses in the Philippines, has been inprogress for more than a year. The re-search team has identified the factorsthat are common to successful smallbus inesses such as h igh-qua l i t yproduction, good labor relations, ag-gressive market ing and re-search/production development.

The study involves the garment, toY,and clothing accessories industriesand has attracted the attent ion ofASEAN governments according toProfessor Tan. Other groups express-ing interest in the results ofthe studyinclude the United Nations Economicand Social Commission from Asia andthe Pacilic, which isbased inBangkok,and the Technonet Asia based in Sin-gapore. Both of these organizationshave sponsored study missions fromMalaysia, Indonesia and Thailand, andentrepreneurs from Sri Lanka,Bangladesh and Nepal have visitedPhilippine businesses involved in thestudy.

28

; f the life of Professor Eugene Sevil-I la were a painting, it would be throb-bingwith richness, with its variegatedhues and contrasting bold and lightstrokes delighting the observer.

Eugene, 43, is best remembered forhis zest for discoveries, knowledgeand academic and professional excel-lence from his early to adult years.

Eugene, the boy, for example, wasenergetic and innovative, was alwaysbusyaround the familt's house onTaftAvenue, and was exc i ted in h isnumerous t rave ls w i th h isgrandmother.

Eugene's early enthusiasm for lifesteered himto fruitful endeavors at DeLa Salle's campus. A championshipmedal bagged from an inter-universityextemporaneous speech contest madean endearing gift to his mother.In 11b8, he made it to the Dean's list

with two degrees- Bachelor of Artsmajor in Humanities and Asian His-tory and Bachelor of Science major inBusiness Administration. While work-ing for the two degrees, Eugene stillmanaged to become the first Philip-pine national student archery cham-pion.After leaving col lege, Eugene

received a scholarship which enabledhim to acquire a Master's Degree inBusiness Administration from theWharton Graduate School.

During his stay in the United StategEugene served as premium specialistfor the Teachers Insurance and An-nuity Association and the CollegeRetirement Equities Fund in NewYork. He took tims out to manage hisown shop i11 sslling Radio Shack com-puters.

He was also a management traineefor Lloyds and Scottish Finance Ltd.in Edinberg, Scotland and for theStandard Fruit and Steamship Co. inLouisiana in the United States.

Following his training with StandardFruit Corp., an assignment as budgetdirector and act ing comptrol lerbrought him to Davao Cityfrom 1970-L972.

Between 1973 to 1979, SpectrumPromotions Associates, a trading andexport promotions company, hiredhim as its managing director. Thenfrom 1980 to 1982, he was a lecturer atShepherd College in West Virginia.

AIM came into his life in 1982whenhe joined the faculty as associateprofessor. At AIM, Eugene never leftthe classroom until he.clarified thefinal point with the last student.

His cheery disposition.earned himthe affection of his peers. One of them,Mab Santos, vice president of AIMadministration and controller, recallsEugene greet ing him nSenor

Mabuha/ with the.click of his fingers.

hressures did not rattle Eugene.l-eoO nobody caught him woiriedor with a heavy chip on his shoulder.He had the exceptional strength tokeep ill feelings to himself. That maybe because he valued unruffled rela-tions with his peers.

A busy work schedule did not keepEugene from being the wonderfuldaddy that he was to his three kids-Siara" 11; Miguel,6; and Cristina, 2.His wife, Elizabeth, 36, happily sayswith her soft voice that "whenever hehad the time, he would take the kids

out during weekends to out-of-townbeaches.n

Eugene had a deep love for his kidsover and above his work, business andfriends.

Crissy, his youngest daughter, wasexceptionally close to Eugene. Bethwell remembers how Crissy wouldsnuggle between her mommy anddaddy three months before Eugenepassed on.

Put all together, his studies in busi-ness management, his lectures inAmerican schools and at AIM, hisweekends with his familx his capacityto live life and savor the clean fun it of-fered - punctuated by his heartyla'ghter and drive - all these were the43 years of Eugene's life.

6urely, Eugene's life, if it were a9painting would singwith colors ofvaried experiences, with bold strokesof choice and activities pursued withpassion, and more gentle shades andhues for the family and personallife heso profoundly loved.We could say that Eugene was God's

unf inished masterpiece. But hisCreator- and ours- perhaps knowsbetter. He gave to us Eugenefor 43years, and he touched us.

In Memory

EUGENE EUGENE

29

TOP MANAGEMENT PROGRAM

This is a program for chief executive officersand for those who share with him the power

to set major policies and corporate strategies.

The ASIAN INSTITUTE OF MANAGEMENT designed and developedthis program to bring top managers up to date on what is going on in theworld of management, how human resources are developed, work forcesmotivated, the latest technology employed.

This intensive four-week program will allow you to step back and, in thequiet solitude of pine-covered Baguio, take a look at your company, whereydu have been, are now and especially where.you intend to be. It is aunique and unusual opportunity to exchange ideas with other executivesand form associations for a lifetime. The TMP will give you a friend inevery Asean city.

Program Date: May 30 - June 24,1988Venue: Baguio Country Club, Baguio CityFor inquiries or reservations, call or write:

Top Management ProgramAsian Institute of Management

123 Paseo de RoxasMakati, Metro Manila

Telephone Nos. 87401.1to 19

\ - : - J

Makati, Metro Manila, Philippines