NE

Very rekxing in bustling Banghok to

enter calm, airy taorU ofThe DusitThani.

Verv ideally located in the centre of

the city.

Very luxurious the guest rooms and

suites. Wry rich the dtcon Wry traditional

the Thai opulcnce.

And uery deliciously apPetising the

eight restauranh.'

Wry liuely the Eabblzs Vdzotheque.

Very soPhisticated the Library 1918

(read nouel ouer cochtail)

Very stimuhting tbe Fitness Centte

(gym, tennis, squash), (fom time to time).

Very courteous the seruice (aluafl.

Verily, there b nothing that quite

rumDafts wrtll LJe uustt I ndnt.

TheDtrsitthaniA T N C I O X I H A I L { \ D -

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lh6 a.i.n ilanat.r - A Pub icalron oi the Asian Inslrlute otManagemenl and the Federat on of rhe asian nsrillte olrva.agement Allmnr As@iai ons.

Publbh6rFelipe B. Alfonso

Edltoi-l+Chletlvtichael A. Hamlin

Managlng Edlto.lbara C. Gutienez

Asslstant Managlng Edlto.Kin Gatbonton

Ait DlrectorAlexander Eowie

AE6oclate EdltorsJosie AliwalasFederico S. Esguerra56lome Flores-AldabaEelinda SingsonAleta A. Tabalba

Contrlb0tlng EdltoBBangladesh: l\4ilon Eikash paut, tVM.88.Hong Kong: Stephen Tang Winp On. MB|V'76. India: luzar KhorakN;ta, MBM 75.Indonesiat Leonardo Tanubrata, l\4BtV '78;Christina F. Ferreros, Atr4Mp 82. Korea:Hong Soo Lee, MM '79. tvalaysia: Tan SriDat6 lr. Talha Hj. [.tohd. Hashim, tVM .76.Pakistant Ishtiaq Ahmad Qu.eshi, BMp'77Philippines: Jesli Lapus, l\48[4 '73.Singapore: Gan Cheong Eng, t\48M 82.Taiwan: Hsieh Lai Fa, T[4p '82. Thaitand:Somn{rk letjiravat, 8t P '81.

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THE ASIAN I\,IANAGER . AUcUSf 1993

7 CelebratingManagementExcellenceAnnouncing The Asian [,4anagernent Awards8y barra C. Gutlerrez[ranaging Editor

10 Asian Management Awards:The Regon's WinnenA sLrvev or Asia s opst mar ageo cor.partes.8Y the Editors

41 Towads ManagementExcellenceBy Professor Tommy Koh, Thai Deoutv pr r e[,4inister Amnlay Viravan and Dat6 SerRafidah tuiz

61 Envircnmental Standards:A New Trade BarderBy Glen TrebitcockVce President, C.A.p., S.A.

Frcm the EditorEntrepr€neurs ComelNaEenThink About ltMoney MatteE

375777981

49 People on the Move55 Technowalch8i! Book Review84 Tlavel Notes

49 Megalink Pr€parcs fof the paclf,cCentury

69 Asian Aldines Fly High

3#ii;Fi,ilffi):i'SffLi?:"i?if"'":nn:ffii"if,",?i:",ii:"S:ifi:[?Jli:"?i?1,;ltt,T. cvc'e&carase Du

ifl{:::ii,:lilJi""T'i;ff#T'i*iiil'J:"i#T;:*r*''ioninanvmann* nwhoreo'pad,n Ens isho,o,heJ,ans!6e6spohib,redManas€me.,. E!se.,o L6p6z Fou.da,@n, Jos€ph R ,",i:-l$[:xfl"i"trB:H:"i1]lT'^fll,f"J:l::'}.:i ",";,:":f::lx:lMan€qeme., Euqe.,o L6p€z Founaar,on. rlein a M.Mi"k i a;;pit" r;iF;;; ;"il;";:: M;;"ffi;l;;i;,";;5.r#;ll,if i:]:d"!;3740rr .* tb, a1792.0 oFoloq.JDh, so/.{ o, rr€ ArM LbralPn.red by rm4 Pinre6 A€. Lrd.gngap.'e ft€ Aean Manager MTA(p)245,9/91 KuN pp(st1o76/3/93

1

Ji: - l

1 t ,

Michael A. Hamlin

The Asian Management Awards...

ong Kong - AndrewGrcve is the Hungarian-bom CEO of American

"Asia's draqonscannot iust sit ontheir positions either.

I I microprocessor giantIntel. Recmdy, Grove was asked

There are politicalrealities evolvinsfrom economicsuccess."

toexplainwhyhtelandMicrosoft- the world's most succ€s9hrlsoftwaredeveloperand retailer-have become stch hugely domi-nant enterpris€s in their segmentsof a brutally competitive - andunforgiving - industr'4

"With all due resDect toMicrosoft and Intel," he said,"therE's no substitute for beine atthe right place at the righi timE "

There is something bothcomforting and refreshing inhearing a wildly successful en-trepreneur tumed hugely suc-cessful corporate executiveascribe his success substantiallyto sheer good fortune.

Hong Kong governorChristopher Patten - speakingat The Asian ManagementAwards Dinner on the sriccess ofAsia - derribed his reaction to"Reading Drucker again andreading one or two other futu-rclogisb... I am not suj€ that Idiscovered anything morc so-phisticatedthanthis:thatthefutur€is going to lie not with those withthemostnahrralrcsourrcsbutwiththose who work hajdest and arcthe best educated.

'Now vou can Dut that into120,000 words and make a fortuneout of it but I thirLk ifs a truthwhichEurofandNorthAmericaarc going to have to face up to, iustas we in Hong Kong and in Asiahave faced up to it."

There is, in fact, much gloat-ing about Asian success. Butmuch ofthat success clearh camefrom precipitous hard work andabsolute good fortune. Europeand North America weren'tworking as hard, or as smart.That's probably changing now,but times are so good we h Asia

The Right Place

won't notice any difference untilrcality drops like a ton of brickson this economv the same wav itdid in the West and has iusthappened in Japan. And ar forJapan's vaunted productivity,Fortune has just rcported that,"Japanese productivity nowranks in the bottom half of in-dustrialized nations, far belowthat of the US and many ECcountries."

Perhaps even mor€ impor-tantly, Patten wamed that "eco-

nomic progress has politicalconsequences. I think that thereare lesions which Asia has toleam and doubtlessly will leamwith the intelligence and wit andenthusiasm with which it haslearned to play the economicgame and out-perform Europeand North America at it."

ln Har?ard Business Reaieu,James F. Moore asks, "How is itthat a company can qtate anentirely new business comrnu-nitv - like IBM in personal com-puiers - and then lo6e conholand Drofitabilitv in that samebusiness?" Miciosoft's WiliamGates could have been respond-ing b that question whenhesaidof the computer industry,'You'llnever have anybody in a verydominant position for very longbecause thev have to Drovethemselvesconstantly.

-

,lfou can't iust sit on a narketpositiory the fact you haveaToVoto 80% sharc means nothing inthe next round."

Asia's dEgons cannot iust siton their Dositions either, Ther€are political realities evolvingfrom economic success that arcand will continue to affect theregion's comFtitiveness. Andthose realities are both na5onaland regional h scope. Nationalin that a comfortable work forf,eis generally much more de-manding and restless than ahungryworkforcr.And regionalbecause pressure to der€gulateAsian markets will mean thatAsian Managers must competefor the filst time on a level play-ing field in their own markets.

This su8gests that Asia'sgeatest challeqges - and opportunities - lie before us. Torealize their potential, Asian en-terprises and their managersmust be both vigilant and hum-ble in the practice of qualitymanagement and continuousimprovement of both prcductsand practices.

The Asian ManagementAwards identfied ,12 organiza-tions inASEAN and Hong Kongin its thid year of lrcognizingexcellence in Asian enterpri5e,government and non-govem-ment organizations. In our lastissue, we prcsented the Philippine recipients of Asia's mostrigorous and respected man-agement awards. This issueprcsents the recipients of theAwards in Hong Kong, Singa-pore, Malaysia, Indonesia andThailand.

And while it is also true thatthese organizations benefitedsubstantially ftom being in theright place at the ri8ht time, it isequaly hle that they were in therightplacebecausethatwaswherethey were determined to be. I

"Much of Asia'ssuccess cleadycame fromprecipitous hadwolk."

AUGUST 1993 . lHE ASIAN MANAGER

lgnocio, Renqlo ond Alrotel. Worldwide (ommunicotions systemt in qdion.Throughout the Phil ippines, Alcotel is

dedicoted to odvoncing the country's

communicotions systems.

For exomple, in the islond province of

Comigu in in the nor thern por t o f M indono, our

engineers lgnocio ond Renoto, ore instol l ing

the Comiguin Rurol Telecom System ln

oddit ion we ore involved in o proiect for

Outside Plont involving 3O exchonge locol ions

ond 6000 KM of f ibre-optic coble.

As port of Alcotel Alsthom, we bel ieve thot

these solul ions con only be provided by

working in close portnership with our customers.

Whether on-going proiect monogement is re-

quired or, os for Comiguin, o turn-key solut ion.

And through these portnerships, we ore

helping to bring people together. Both within

the Phil ippines ond with the rest of the world.

Number one worldvride in communicotions systems,

A colel Phi ipp nes Inc., G & A Bulld ng Ground F oor,2303 Posong Tomo Ex i , Moko i r , Meko Mon l o , Ph l i pp ines

MicroTAC 954

f,

"DRAGONKAT"

8-bit micrccontrolEr,winner ol The HongKong Governofs

Design in 1989.

Sony TR-7 Handycam"8mm camcorder uses

High-eneryy ian mplantet usesclampless disk technology tohand le se m iconductor waters.Motorale mic rcprccessots.

for Operations Management.

It's a quality that has been impressing

our clients and customers for years.

After all, when you believe in your-

self and what you're doing, everything

is possible.

;i.$, s4d3?"{}tr#t-"4Asia Pacific Semiconductor Ptoducts Group

l:fi:*:xd- --":::?;:"',.i!3),,

t l

Mission Possible!Saying yes to challenge is the lifeblood

of Motorola. The attitude of never accepting

second best is instilled in each of our staff.

Together with the belief that the customer

always comes first.

This refreshingly affirmative mindset has

just earned us the 1992 Asian Management

Awards in General Management and People

Develooment, this follows our 1991 Award

Motorcla Semicondudors Hong Kong Ltd Sitcon HaboLrr Cenlre, 2 Dai Krnq Streel. Taipo l.duslria Eslale. Tar Po N. T Hong Kong Tel (8s2) 666 8333 Fax (852) 666 6123

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t:992 Asian ManaElemeilt AwardsWinners

CelebratingNlanagementExcellence

By lbana C. GutlonozManaging Editor

W).N.AwrAMm

he applause at the end of the Hong KongAwadsNightheldattheHongKongfliltonon June 28 formally brought to a do€e thethirdyearof theAsianManagemmtAlvards

prqJram. At the same tirne, it signalled the start ofthe fourth season of this continuing search forexcellmce.

launched in 1990, the Asian ManagementAwards program seeks out, r€cognizsand honorsoutstanding compani€s and or8anizations in. thercgion. It focuses on seven areas of management:genera.l management, information technology,people development, 6nanc€, marl€tin& opera-tions and development management. Amually,whners in aI seven categories ale chcen in sixAsiancountri€s: HonBKong, Indonesia,Malaysia,the Philippines, Singapore and Thailand.

The rcsult of afriendly drat heldalong one of thehallways of theAsian Institute oflv{anagenmt, TheAsian Manage-mmt Awads pro-gram has becomethe ad<nowledgedseal of excellent

management in the rcgion Recognition by theprogramsubstantiallybo6tstheteputationof boththe winning organizations and their rnanagen.

S€lectlrg Asla'i B€€tThe annual searh starts with the solicitation of

nominations in each of the six countries, using avadety of methods, induding focus group dirus-sions,printadvertisements,directrnailanddirectedr€search.

Indicative of the program's gr,owing pt€stige,nominationsoverthelastthrceyeatshaveincreasedat a dizrying pace. For the 190 search, over 1,00nominations werc rcceive4 covering 534 compa-nies. The noct yeal the totaliumped by a phmom-e\\al257Eo to 3589 nominations, covering l,ruolganizadons. For 1992, nominations t€adEd ar€cord 3,ru covering over 1500 organizations.

Anominatedcompanyissentadataformwhichcells for substantial data disdosure, both quantita-tive and qua.litative, r€garding its p€rformance inthecategoryinwhichitisnoninad. Her€iswhereTheAsian ManagemmtAwards diffen with otherawards prograrns. It goes b€yond such haditionalbenchmarls as sustained growth records and arrnual stockholders' rctums. Irstead, it evaftrates anol8anization's commiknent to excellence thrcugha qualitative €rcmination of its manag€rnent fiurc-tions, orltur€ and mvipn nent and dedication tototal quality.

The data !€c€ived - which are h]ead widrutm6t confidentiality - are encod€d into a data-base and analyzed by a team of AIM facr ty mfiFbers for the purpose of shortlisting the candidates.The team tsi[ls the univeFe of nominees to five tosevm companies per'category per country Datasubmitted by the companies tttat ruke it to $eshort lists are validated for veracitla

Country4pecificboadsofjudges,allcompcedofleading rnanagers, both in the public and privates€ctors, then eealuate the shortlisted companiesandchooeethewinners.Thedecisiorsof theboardsof iudges ar€ submitH to the Goveming Board,madeup primarily of theAIMBoard ofGovemors,for final approval.

The winnes are iniormed of theirselection and

At GUST 19S0 . THE ASIAN ITAMGER

are feted in formal awards ceremonies con-ducted in the six countries The awalds din-

ners arc attended by CEOs of the winning

organizations, their Suests, enterPris€ and

industry leadeE, members of the govern-ment and diPlomatic corPs and rePresenta-tive of the sponsors and organizen.

To recognize their outstanding actueve-ments, the winning comPanies are each Sivenan Asian Management Award trophy, whichwith its motto Plrc Lllta - "There is morebeyond" - slmbolizes the continuing searchfor etcelmcl. Formerly made ftom high-gnde fossilized stone, the troPhy, now ex-

ecuted in glass, has been given a futuristiclook to illustrate the ne€d for a new breed of

nvtnagers.

Asla's N€w EllteThis year,40 names werc added to the list

of Asia's outstanding olganizations. Makingup the biggest winning batch sinc€ the Pro-gram's launching (ther€ were 32 winners in

i990 and 39 in 19t), the 1992 winneE, how-

evet are not all newcomeE toAsia's elite dub.Six companies have won Asian ManagementAwards before.

Indonesia's PT Bank Bali, the 1992 finan-

cial management awardee, was the 1991

winner in the information technolqgy man-

agement category Sime Darby Bhd., Malay-

s ia 's b igges t and most success fu lconglomerate, won the general managementu*i.d fo. both 192 and 191. AnotherMalaysian comPany, Sarawak Shell Bhd. is

the urdisputed chamPion in the PeoPle de-velopment and management cate8ory, wrn-

nin8 this much{oveted awand in 1990, 1991

ar].d"1992.The Philippine American Life Insurance

Co.,a financial management award winnerin1992, was the general rnanagernent awardeethe pevious year. SingaPoFbased NePtuneOrientLinesLtd., a 192 genemlmanagementawardee, is another Permnial winnet caPtur-ing the operations runagement award in

1990 and I9l, and the peoPle develoPmentand mana8emmt award in 191. Thai Farm-

els Bank Ltd., winner of the 192 peoPle

development and management award, won

the information technology managementhoDhv in 1990.

Over the last thr€e yea$, certain interest-ing patterns have emer8ed. For instance, the

financial industry has prcvided the most

number of winne$, with banks, financinghouses and insurance companies taking 19 ofthe 117 Asian Management Awards boPhies

' given out so far. The transPortation industryis another much-awarded sector with 15 he

6

AlM Board of Gov€mo|l

ChaimalMr. Washington SycipChairmanThe SGV GroupPhilippines

llemiarsDr. Brian W. ScottChairmanManagement Frontiers PtY.,Limited

Mr. David K.P. LiDirector and Chiel Ex€cutiveThe Bank ol Asia, Ltd.Hong Kong

Mr. Jack TanoChairman and CEoTristate Holdings Ltd.Hong Kong

0r. Jagdish ParikhManaoino DirectorLee & Muirhead (lndia hn. Ltd.)lndia

Mr. Adityla BirlaChairmanGrasim Industri€s Ltd.India

Drs. Rachmat Sal€hEconomic Advisor to theGov€rnment for Trade andBankino, Department ol Tradelndonesia

phies. Airlines accounted foreiShtof these, while shipping comPa-nies took six.

The manufacturc and hadingof consumer products has alsooroduced a number of winners:-10

over the last three years. Thisfisule still does not indude con-gl--omerates which engage inmanufactuing and trading in ad-dition to other business activities.

Other multi-awatded indus-tsie6 include telecorununications

Mr.omar AbdallaPresident CommissionerPT IBJ Duta Banklndonesia

Mr. Yotaro KobayashiPresidentFuii-Xerox Co. Ltd.Fpan

Tun lsmailbin Mohamed AIiChairmanI'lational €quity CorPorationMalaysia

Tan SriGeh lk ChsongChairmanPerlis Plantations BsthadMalaysia

Mr. Vicenle T. PaternoChairman and Manaoing olrsctorPhilippine Seven CorporationPhilippines

Mr. Andres Soriano lllChairman of ths Board andChief Exedutivs officerSan Miouel CorporationPhilippines

Minister Wan0 Chien-Shi€nMinistry of FinanceRepublic ol China

Mr. Stan ShihChairman and Chief Executiveoilicer, Acsr IncorpontedRepublic of China

"1{o setmnagiefltqttrules or fumulghaw been fr0ndtfiat sooHgl|ararteesucc€s bt acompny."

Mr. flerman Ronald HochstadtChairmanExporl Cr€dit InsuranceCorporation ot Sinoapore Ltd.Singapore

Dr. Duk-Choono KimExecutive CounselorDaewoo Industrial Co. Ltd.South (orea

Mr. ryono-Hwoi KooChairmanLucky-Goldstar InternationalCorporationSouth Korea

Mr. Vkoi PhutrakulChairmanLever Brothec (Thailand) ltd.

Dr. Amnuay ViravanDeputy Prime MinisterKingdom ol ThailandThailand

Mr. David I'lewbiooingChairmanRentokil Group PLCUnited Kinodom

Mr. William S. AndersonBetired Chairman oi the BoardNCR corporationu.s.A.

awards. Agriculture-relatedcompanies, including suchmultinationals as Del MontePhilippines Inc. and Dole (Thai-

land) Ltd., have caPtued elg|l.Twenty-one awards, mean-while,have goneto subsidiarieof Western multinational cor-

Porahons.But desPite the eme4gence

of such hends, no set marage-ment mles or formulas havebeen found that would guaran-

and related services with eight winners, elec-

tronics with seven, automobile manufactur-ing and hading with seve& food with six, oiland allied iines with six, and ProPerty devel-oDment and consbuction with five.

Bwiness conglomerates with divenifiedbusiness interests, such as Sime Darby andSan Miguel CorPoration, have won six

tee success for a comPany, much le6s its eleva-

tion to Asia's corPorate elite dub. The quest

for excellence remains a dynamic, ever-

clungng chaltenge that rcquires nothing lessthan; comDany's total cornmitment. Even for

reDeat winneF, excellence remains an elusivegoal. tn rs, nte asian Management Awards'

sealchmustSoon. t

THE ASIAN MANAGER ' AUGUST 1900

atDrnntlrrY ...

That Grows from Confidenceand DedicationBank Bali is a leading private foreign exchange bankin Indonesia. Your partner in international trade andinvestment financial services. With 77 branches in keycities nationwide.o Provides trade assistance and trade financing for

import and export transactions.a Provides corporate finance, investment advisory,

securities trading, brokering, and custodial services.

Head Omce :Bank Bali Tower, Jl. Jend. Sudirman,Jakarta, Iodonesia."fel: (6221) 523789D, 6498m6, 6496050,Telex: (73) 60858, 63051, 63090,F ax: (6221) 25ffi 67 8, 629 e12, 62905 65.l-os Angeles, UsA Bi.anch:601, South Figueroa Skeet, Suite 1700,l-6 Angeles CA 90017-5722 USA.Tel: (213) 6273322, Telex:. 496m589,Fax: (213, 6226111.DTC Subsldlary In HonS Kong:Bali lnternational Finance, Ltd.,Room 2303-6, Wing On House,71 Des voeux Road, Crntral,Hong Kong. Tel: (852) 5265915,Telex: 76160 BLFin HX,Fax: {852) 8106579.Csyman Island Branch:Pierson Heldring & Pierson (Caymar)Limited, CaymaD Galleri€s, HarbourDrive, Grand Cayman, CayEan Islands,British West Indies.

4^$ BANKBAT-rGiving You The Best

The Asian Managfement Awards: The Re€lio r's Finest

"McDould's

has msna$dto Secoll apiooomeml54% d ftsmdl(.t thmughcaptlvatl1gW 3pot8 tounlque,irI|oYativEp|omotlom."

ow in its third yenr,The Asion MonagenentAuards xek fo recognia Asia's tnost out-stnnding camqnie' The Wgam's seuenategories lxus on the lundammtal arus of

tanagement and emdusize competitfueness and. in o-lvtQn,

The 1993 Asian Mnnagemmt funrds uns organ-iztd by the Asian Institute of Mtnagement (AIM andyesented by sernal Asian corryations - outstandingin themselws uho slarc the Institute's pride inrecognizing the rcgion's tttcf�t excellent oryanizttions,The Wgram's cwntry spon*rs include the PhilippineIi g Distance Tel@rone Company; MBf HoldingsBerhad; Izmhga Pmwfungan Perbankan Indowit(I,PPI); the Trade Mtnagetnmt D@elofnent Institute;and, Banglak Ba*.

9lirreercne

Since its estabtshment in 1968, Neptune OrientLines (NOL) has become one of the top shippingfirms in the world. In fact, it ir the foufth la€est interms of tumover - some US$900 millior

l4itha fleetof 51 vesels,NOlprovidescomprehensive container liner and chartering servicesworldwide through its 60 subsidiaries and 26 asso-ciated companies. Hard to believe that this com-pany,which nowemploys 4,000 people, started outwith a modest staff of five.

NOUs corporatecredo is excellenceand this companydistinguishes itselfin a higlrly competi-tive field by provid-ing high levels ofserviceand value formoney. The com-pany created a Cus-t o m e r S e r v i c eInprcvement Team

THE ASIAN MANAGEB

(CSIT) to inculcate a corporate mindset towardsachieving excellence.

Efficient service is enhanc€d by a Fully Automated Cargo Tiacking System - an intemctiveshipment hacking and planning system - thatprcvides customers with round the dock, dircctaccess to inJornation on their shipmmts.

To further enharce its competitive edge andmaintain its leadeEhip in ASEAN, NOL has htro-duced innovative, new shipping routes and fastertransit times. For instance, the company's 22dayhansit timeH!1/een SoutheastAsiaand theUnitedStaies has yet to be matched.

NOI-is success secrets are high-value opera-tions and a committed, disciplined workforcethat appreciates working for a company thatencourages - and celebrates - excellence andrewards initiative.

Through an array of marketingt€chniques thatrange ftom capti\ atin8television spots to unique, irmovativepnmotions that demonstrate a deepand sinc€re appr€ciation for the cus-tome!, McDonald's Restaurants hasmanaged tosecurea phenomenal 54%share of its market.

The company's success lies in itscapacity to "localize" its image and product ad-vertising. Its product line also refli:cts local tastes.Where else can fast food connoisseurs find a l(dyaMcMuffin, Pineapple Pie or Durian and MangoShake?

"Localizing" McDonald's also involv€s inter-action with the community by local store manag-ers. Managers are expected to take a leade$hiprole in community eve$ts, and to contribute tocommunity efforts to enhance and maintain aclean, healthy environment.

McDonald's 4th flavor prcmotions - new

AUGUST.1993

prcduct offers for a specific period - increasedsales by 10%. Their "combo meals" - a drinl,fries and a burger- increased sales per customer,while enhancing value.

AI television campaigns are locally produced. 'A

Day in Singaporc" and "IGls Glking" ior televisionand the ficMorning" ndio spot have won industryawards and 97o top-of-mind awar€ness.

Cycle & Carriage,Singaporc s lalgest cardistributor, is an in-creasingly diversifiedcompany. It has inter-ests in food and dairyprpducts manufactur-ing, distribution andretail as well as finan-cial services. The firmhas ,1[} subsidiaries andnine associated compa-

nies and last year acquired Malaysian Credit Lim-ited (MCL) - a much coveted, long-soughttakeover target.

Of the total US$238 million rcquircd for theacquisition of MCL, more than a quarter of thatamountwas funded internally. No cash calls weremade on shareholders and the company inho-duced for the first time in Singapore, the "top upclause," allowing investo$ and fund managers tosharc in the benefit of an increased bid.

Since 190, the company has expanded itsoDerations to Aushalia, New Zealand and Viet-nam. And it is one of only five Singapore compa-nies haded over-thecounter in the United Statesthough the American Depository Receipt pro-gmm.

Like many outstanding companies, Cycle &Carriage has experienced the pressure to sustainits success, and has consistently met that chal-

lenge. Shareholder funds increased 758 trcm1988 to 191 and another 51% last year. Totalgroup assets doubled ftom 1988 to 1991.

In a survey of excel-lent Asian corporations,Asian Business repottsthat, "As well as 'em-

powerinSl managers bygiving them greater responsibitty, the most ad-mired companies... areinvesting heavily in

Singapore GeneralHospital (SGH), Singa-pore's oldest and largesttertiary acute car€ hospi-tal and national referralcenter, has hansformed aonce staid bureaucracyinto a skilled, praactiveservice elite through thedevelopment of exten-sive in-house and exter-nal training curricula.

This elite force nowrcfers to the patient, hisfamity, rclatives and visi-tors as its "external cus-tomer." Hospita.l staff ar€"intemal customers," reflecting the concern ofthis cohesive, commifted team for quality serviceand the total welfare of those in its care.

As a result of a nationwide shortage of nurses,SGH developed in-house programs to hain a"nery'' category of health care workers: operatingtheatre technicians, dialysis technicians andphysiotherapy assistants.

Wholly-owned by the Singaporc Government,

th|€ d Cycb &Canlago'E mary9/rcrvftxt ra.

NOLcofitak atautuEopgplarmdnl€r'a'�'r,o.

Mcltontd'agotabt arctp9 aEk rrwnwotldwrd..

Cdper,l{earchb orE o, SGH''key are'€ digg6aach.

Snceponr Grnrnel- HosPn L

Cvcln & Crnnncn

McDonrlo's Rrsrrunerrs

t0 AUGUST 1900 . THE ASIA I MANAGER 1 t

the hospital employs over 4300 pelsons - mak-ing it one ofsingapore's top ten employers - whoserve over 84,000 admissions and 500,000 outPa-tients per year.

SGH is renowned throughout the region for itscomprehensive range of clinical specialities andsupport services. lt is a rcspected teaching hosPi-tal for medical practitioners and specialists.

Singaporc s winnerin the category of In-for-mation TechnologyManagement is nostranger to The AsianManagement Awards.Last yeat SingaporeTelecoms received theawand for outstandingFinancial Manage-ment.

The Award for In-formation TechnologyManagement is forcreative use of infor-mation technology to

enhance the competitive position of the company.But our wimer has enhanced the competitiveadvantage of a nation in the race for foreign invest-ment, industrial development and internationaltrade.

Singapore Telecoms is the tiny island-nation'slartest telecommunications firm, dedicated tobuildint world-class inftastructure and the provi-sion of superior service and products for the low-est possible cosl subscribers gave the comPany aservice performance rating of "fou/' out of "five"

in a 1990 survey The Intemational ManagementDevelopment lnstitute and World Economic Ferum gave the company performance ratings sur-passing those of the industrialized nations in 1991 .

The use of IT permeates the entire company.Extensive utilization has allowed SingaPoreTelecoms to decentralize to 73 departments anddevolve administration functions while rctainingefficient centml control to ensure uniform andconsistent implementation of company policiesand guidelines.

In all, there are more than 2,600 rcs connectedto the comorate local area network. Each rc ac-cesses corPoratewide E-mait, calendaring func-tions and bulletin boards. The company's ITsystem provides a critical role in the develoPmentof corporate strategy through scenario modellingand forecasting.

At Excel Machine Tools the day beginswith the company song extolling qualityand corporate objectives.

Since it was established nearly sevenyears ago, Excel Machine Tools has man-aged to boost sales ftom a modest US$0.9million in 1986 to dose to US$12 million m1991.

The company's primarybusiness is themanufachfe and sale of industrial ma-chinery to pr€cision engineering indus-tries, the aerospace and automobileindustry, and the electonic and computerindustry. Although its princiPal marketsarc the United States and Japan, the company'sproducts ar€ exported to morc than 22 countriesworldwide - from Myannar to Finland.

Quality is a way of life at Excel, and rnanagement demonstrates its concem with the quality ofdesign, quality of performance and quality of cus-tomer seruices through application of new tech-nologies to increase efficiency, reduce downtimeand enhance competitivmess.

Excel invests heavily in hunan resource devel-opment. Fully

'13% of its PaFoll is commift€d to

staff haining and development. ComPany execu-tives believe their success is dire primarily to con-tinuous investment in product and processdevelopment. Three percent ofarulual sales is com-mitted to Research and DeveloPment to assue thataI products satisfy the needs of customers and thatthev are prcduced at the lowest cost.

The National Trade UnionCongress (NTUC), Singa-porc's winnerin DevelopmentMaragement, was bom ftomneed ard struggle. The successthat has evolved from thatstruggle is both exciting ardinspiti.g

A Heration of 73 Singa-porchadeunions,NTUC hasamembership of 212000 work-e$ls repr€senting aner 22Vo ofthe island-state s bargainableworkforce.

Established in 1961 amidgreat political and industrialstrife, the organizatiofs objec-

AUGUST 1993

Elc,.l's N&rctstra td lnNeclrlonotBh'€otttglnd|lafi€tr,

Slngaporefol6.�o''�r',3'ct,g�fut ro,s enloyserylc.a wt chafi anong|'he'''p6t dvaicedln Up rcEIon a td Ap W['€EIqlrdlty.

o*atOlMo,Prcildana, Nfllc.

Excrl Mecurnr Tools

r.sffi:.- _..'strsqw

SrNcl.ponr Trlrcous

Neuonll Tnmr UNIoN CoNGREss

12 THE ASIAN I'ANAGER .

tives since its inc€ption have been to imppve theworking conditions of Singapoc workers, to pro-mote good labor-managemmt relations and tobuild a stmng labor movemmt.

Unlike unions that limit themselves to protect-ing worke6' rights in wage negotiations and thesettlement ofdisputes, NTUC is a rccognized pad-ner in Singapords €conomic and social development, promoting and contibutint to skillsupgrading and poductivity enhanc€ment. NTUCinitiated BESI, or Basic Educationa.l and SkillsTrainin&toraiseworkeE' literacylevelsandenablethem to take up cours€s for skills u;6rading. Thepr%ram dirccrty benefits over 300,000 workerswith a primary lwel education.

Other projects indude retail and health carccooperatives as well as quality recreational facilitiesthat help shetch membeF had-eamed paychecksand prcvide exc€Uent value for mone;r

Its geatestcontsibution to Singaporc workeEisalso perhaps the least tangible. Membe6 claim thatihrrough the union they have derived a greaterserue of collective identity and solidarity ri'ith thelabor movement.

Inoonrete

PT Bruncnsronr

Indonesia'swinnerinGeneralManagement hasadapted swiftly to emerging consumer needs, de-veloped efficient production methods, embarkedon a long-term export strategy and disseminatedcritical technology as the key to attaining globalcomDetitiveness.

Apintventure tircmanufacturinSand distribu-tion company, Pf. Bridge6tone is a market leaderwith a 3570 share of the local market for autornobile,tuckandbustir€s. hthetircrcplacsn€ntmarket,thecompany has secued a hefty 51.6% slnre. Grc6revenueshaveincreasedftomUS$t/millioninl9BSbUS$103 milion in 191.

Bridgestone is a pioneer in the development ofdealer relationships, The company pmvides salestrainin& big-truck maintenance technotogy andresponsive after sales servic€ to its retail network

To fuldll its strategic vision, the company hasrccendy begun exporting its praducts. At pesent,over 207o of total pnoduction is exported.

Bridg$tone s basic obtstives are to assure highquality and imgove poductivity through a moti-vated, highly+killed work forre. To meet theseobtectives, Bridgestone has established an effuivetraining and education system for its morc than1100 employees, who enpy salaries substantiallyhigher than the indusFy averate.

Recendy, the company introduced a comprehensive program called its High-Efficiency Shat-

egy. The program incorporates Total Quatity andJust-in-Time managemmt practices to focus com-pany-wide efforts on rcducing waste to enhanc€productivity. Management calls this strategy thecompany's "central pillar" and iudging byBridg€stonds succss, ifs a solid pillar indeed.

FT Musrue Rm;

Indonesia's winner in Marketing Managemmtis a hot grovlth company that has outperformedglobal corporations based in North America, Japanand Europe.

Originally a hobby, then a small fanily business,PL Mustika Ratu has transformed itsellinto one ofIndonesia's leading con-sumer produc{s companiesin less than two decades.The company boasts diver-sfied interests in the manu-factue and dishibution ofco$netics, toiletries, herbalmedicines, health drinksand mineral water - over600 poducts in a .

Wi th a count ry assprawling as Indonesia,great cultual diversity and13,000 islands, it is no smallaccomplishment-particu-ladyforalocalfirmmteringthe fiercely competitive cos-metics industsy - to gainacceptance among skepticaland increasingly sophisti-cated consume$.

Distribution of the com-panys producrs ard serv-ices is more than a logisticalfeat. Cultural diversity re-quir€s that colununicationand sales efforts rcflect the heritage, traditions andrcligious belieh of each island.

Forinstanc€,PL Mustika Ratu producesa rangeof shanpoos - green pea, banana ba* and ricestraw - r€flecting widely diver8ent tastes. Simi-larly, the company's soap line indudes root soaPand rlan8ir soap alongside the morc conventionalsandalwood soap and herbal body soap.

An important conhibution to pl€s€rving thecultural heritage of its society is a by-poduct of tT.Mustika Rahr's sucreas. Its slimming tea and me-dicinal herbs have bridged the gap between mod-ern ard traditional values.

Yet the r€5uryence in popularity of traditionalcpometics and herbal medicines - irspired by the

"rfl,c'3

Slcrtosicontlhttlonto Shgaporem*srs b .boporhapo tl|gbat tngiu6- a gEaterscme olcollcc'tlvoidd ltt andsolldadty wtthtlte labolmovomert,"

Otr€ d MtttdkaRaht't natytt'dnbtrdp(9d/cf,'

AUGUST 1993 . ]HE r€lAN MAMGER

'lndonegia's

culturaldivoBityoqui]€c thatcommunlcrtiorand sale6eft|ts rsn€ctfhe hstita€B,traditioG ddlgligiou3 bellebd lts marylslands.'

success of the company's prcducts - doesn't seemto have hurt sales, which increased ftom US$9.3million in 1989 to US$16 milion in 191.

Indonesia's winner f or Information Technologythe previous year was cited for outstanding Finan-cial Management for 19L Banl Bali is one ofIndonesia's best known banks with affiliatecompa-nies in life insurance, general insurance, consumerfinance and insurance brokerage.

Total assets have grown steadily over the lastfive years from US$328 milion in 1987 to overUS$1.5 billircn in 1991, repr€s€riting an ino€ase inretumonassets ftom 1.57% to2.39%. frn d€ntfinancialrnanatemmt has povided a sormd loan tio dqositratio of less than 1007" - substantially lower than theindustry average. Paid-in capibt inqeased ftomUS$10 milion in 1%7 to US$1,10 million in 191.

The bank has developed an information systemthat rnaintains a centralized, bank-wide database,pn:viding employees ard customeE immediat€access to qitical financial data.

To rc\dard investorc and enhance service, thebankmb';d.u.d hli *Ilwm - an all-ircne card serviceavailable to stoclholdeis who purrluse 50 or moreshares. BaliAccess is available to non-sbockholders.

Despite the downtum in the economy last year,Bali Bank posted a net income of US$42 million. Its

.92Vo return on eamings overshadows the in-dustry average of 15.94%. And its dividend pay-outratio varies ftom 30oo to b0"o of total earninss.

The flagship ofthe Indo-Rama Group, PL Indo-Rama Synthehcs, won lndonesia's second award inFinancial Managemmt. IndcRama Synthethics isthe countrl/s lal8est exporter of blmded yarns - amarket leader in the local textile s€ctol currentlyIndonesia's leading non-oil export eamer. Indo-Rama's main activities are the spinning of blendedand unblended yarns, accounting for appro\i-mately 49% of total revenues and pol)'rner prc-duction, which accounts for the remainhg 517o.

The company's success can been attributed tosolid management and careful aftention to cashflow since its inception over 18 years ato. Over theyears, Indo-Rama has demonstrated its financialprobity thrcugh a consistent record of prcfitabiliryFulrd managers and analysts have rcPeadly en-

dorsed the company as a shong buy recom-mendation for the long term on the basis ofits shong earnings Fowth artd lndorama'srcalistic appraisal of its prospects. Havingwon the respect of intemational investors,the company has continued to do well onthe local stock exchange. In 7992, it wasamong the top thee best performers on the

Jakarta Stock Exchange, with a I 3q% gain inshare price over a l2-month period.

PT Bmnn Ppr Inousrnlrs

Established in 1981 inWestJava, Pf. BakriePipeIndustries Foduces American Petroleum lnstitutecertilied line pipe for the oil and gas extractive anddistribution sectors. It is theonly lndonesiancom-pany in its industry that holds a coveted ISO 9002standard for qua.tity standards - a distinctionBalrie Pipe has worked hard for

Over US$5 rnillion has been invested in testingequipment to develop PL Bakrie PiPe Industries'capacity to design leading-edge Prcducts for in-creasingly specific customer r€quircments. To helPmeet thes€ demands the company has inhoducedmotivation workhops to encourage particiPativemanasement at the worker level.

ft fakrie eipe naustries was also among thefilst in Indonesia to introduce Japanese maragement concepts such as Total Quality Mana8ement,&r'zer, arid Just-in-Tune inventory management tofu rtherenhance both quality and customerservice.ln an industry that frequently comPetes on Price,Bakrie Pipe relies on quality to be comPetitive. Sofar, the company's strategy has been successful.Sales increased from US$20 million in 1989 to nearlyUS$29 million in 191.

PT Sruni Paoenc

Indonesia's winner in People Development in-spircs trust though a clear corporate vision and ashont commitment to its nearly 2J00 emPloyees.Like many excellent companies, this outstandingcorDoration devotes substantial time and financialr€souces to maintaining a skilled and commiftedwork force through training, Prcductivity incen-tives and inseased rcsponsibility. One of the coun-try's leading c€ment produc€rs, its sincerity haswon employees' hust and enthusiasm.

Productiviiy has increased frcm 752 tons ofcement per employee per year in 1989 to mor€ than

AUGUST 1993

Pt, Bd.rle Hp Ittl'€ oti! ,nt',''66lartcom!6 ! awat&dthe l9l, !Xn2atdlad,

PT. Bll{K Blr,r

PT. Ixoo-Reue Svnrsrncs

14 THE ASIAN i/ANAGER .

THE LARGEST YARN EXPORTER IN INDONESIA

PRODUCT RANGE

Spun Single/Ply Yarns:

Polyester/Combed Cotton100% Acrylic Non-Bulk100% Combed Cotton100% Spun PolyesterPolyester/ViscoseDyed/Fancy Yarn1 00% Viscose

Polyestet Fiber & Yarns:

Polyester Filament YarnPolyester StaPle FibreDraw Texlured YarnIntermingled YarnPolyester ChiPsFlai YatnP.O.Y

P.T. INDO.RAMA SYNTHETICS

Corpota ts Of t i ceCentral Plaza, 1oth FloorJl.Jendral Sudirman Kav.47Jakarta 12930, INDONESIATel :021 -5705056/512445/516886

F a<: O21 -57 1 O81 21 57 31'122Tlx: 62050 INRAMA lA

Europe Ot f i ce144 Grove lane, haleChesire WA 15 8LtU,KTel : 061-9040510Fax : 061-980158

Marksl lng Ot t ice29 Jl. Hegarmanah WetanBandung 40141Jawa Barat, INDONESIAlel : O22-a202ol831asFax . 022-440367Tlx : 62050 INRAMA lA

Singapore Ot f iceFar Eastern Bank Building'156 Cecil St. # 06-09SINGAPORE O106rel : 65-222134712256046Fax : 65-2234613

E I \ -DORA} IA

Board 0lJudges: Ito Asian ltanagsmenl AwatdsHUV rta'lh€ Honourabh David X.P. LiDireclor and Chisl Executiv€The Sanl oi Easl Asia, Limited

The Hon. M6. Anson Chan, C.8.E.,J.P.Sec.elary lor the Civil Sewic€HonO Kono Govsnment

Dr. Robod L Triclor

ljniversily ol Hong Kong Eusiness School

lan PerlinChiefEconomhlHong Xono General Chamber ol Commerc€

Francis EstradaPresideolWilliam E. Simon and Sons (Asia)ttd.

t tottatl,D6. Rachmat SalshProsidlol CommissionerEank Muamalai

SurasaPresident 0ircctorEank SumiDaya

Cacuk SudeiajantoExecutiv€ oireclorIndonesian Management Assoaialion

Prot. Dimnadi HadisumartoL6mbaoa Manaoomeot

John A. Pr,setioManaoino PartnerPrasetio, Utomo & Company

t lrltlaTan Sd Geh tk CheonoChairmanDovolopmontand Commercaal Irnl Bid.

Ahmad RejalAdeeGroup tditorEerila Publishing Sdn. Bid.

Dr. Tarcasius ChinChaimanMalaysian Inslitule oi Managemonl

0al6 Dr. JohariBin HassanGovemment Affui6 andHuman Resoorces ManagorBP Malaysia Sdn. 86rhad

Sieh Lee MeitinoProlessor and ChairmanEusiness Adminislralion DivisionFacully o, Economics andMminisilalionllnivelsity ot Malaya

m DpliaVacente T, PatemoChairman and Manaoino oirSctorPhilippine Seven Corpontion

Als6nio Saiolome lllPresidenlPhilippine Nalional Eank

En que P. EslebanPresidentCenter lof Reseamh and Communication

GabrielMaialacPublisier and Editor, 116 Suslrass 5Al

RenatoValanciaAdminislralorSocial Secuily Syslem

ShuatonHerman Ronald HochstadtChairmanICICS Holdioos tld.

0r Wee Chow HouAssociate Prolessor and DeanFecully ol Susiness AdminislralionNational lJniversity of Singapore

Mr. Lim Hock SanChairman, Institute ol Certilied PublicAccounlants ol Singaporc

Prcl. Tan Tock M3n0D6an, School ol Accounhncy and Eusinessilanyano Technolo0ical ljniversity

Mr. D.R. MurrayChaimanSin0apore International Ciamber ol Commefce

ndl.NvlmjPhutlakulChaimankvor Erolhers (Thailand) Ltd.

To€msakdi KrishnamraDieclor, Sasin Graduale Schoolol EusinessAdminislration, Chulalon0korn Uniwrsily

Chole SoplDnpaniciPresidenl, Thailard Manaoemenl Associalion

Tarrin l{immanaha€mindaMinister ol FinanceThailand

SulhichaiYoonEditof and PublisherThe Nation Publishino Grcup Co.,lld.

Teelachai Ch€mnasiiMana0in0 DirectorRachada Property Manaoemenl

THE ASIAN MANAGER . AUGUST 1993

900 tons in 1991, dvalling its two largercomPetrtoF'

Through intensive training, PT Semen Padang has

been siuccessful in diversifying its main Productline from iust one gade of cement to six - relfng

solelv on its own intemal resources.Employees undergo constant trainin8 gearcd to

skills upgrading and enhanced technical comPe-

tence - io-" ofem ployees worLinB time is d evoted

to haining - and they enjoy salaries that ar€ well

above th;industry average. Over the last decade,

rank and file salaries have incrcas€d more than ten

tirnes. ln addition, employees are provided home

ownershiP and health care Programs'

PnMsrN l,{.r Kusu'rHrrnllrKrlurncl

lndonesia's winner in DeveloPment Manage-

ment is a volu nteer or8aniza tion whose oblettive is

to provide a vision and a means to a more secure,

more prosperous futureP(K serves families in nearly b7.000 villages'

and its prcgrams emphasize self-reliance and mu-

tuai trelp for tne purpose of s€lf-improvement lts

target grouP is the family unit.-trese activities rcvolve an:und what has be-

come wrdelv known as theTen Basic Programs: the

comprchensive aPPlication of the Pan'a<ih ideol

oev i.tto fodly lile; lvlutual Sell-HelP or ColotJg

R"ovorp; Nutritiou Clothing; HousinS; Education

ani Ciaft Skill; Health; Promotion of CooPeratives;

Protection and Cons€rvation of the Environment;

and, sound Domestic Planning.Amonq PKK's proiects are community-based

dctivihes such as the once-d-month Integrated

Community Services which Fesently Providesbasic health services: immunization, diarrhoea

control, pregnancy care and family plaming' The

movement also provides non-formal educahon

though leaming and income generating SrouP's'known as KEJAR.

PKK has also helPed sPawn local industry, Pi0.ducing a variety of Prcducts Primarily for the Indo-

nesian market, but the movement has also sPawneo

fumiture exPorts fr0m Bali.

Mn-evge

SIlln Densr Buo'

The 16th century JaPanese Poet Matsuo Basho

wrote of vision and goals, "Do not s€ek to follow in

the footsteps of the men of old; seek what they

sought." Malaysia's winner for General Manage-

AUGUST 1993 '

ment has not sought to Presewe; but rathet to trans-form, diveFify and globalizeIt is one of Mala'sia's Penuetb€st known comPonies; Pmb-ably the la€est indigenousmultinational in ASEAN.

Originaly a Plantation-based business, our winnerhas transformed itself into awidely diversified conglom-erate of more than 200 com-panies. lt is caPitalized atUS$Z.S Uiltiott - roughlY

Sepun,l Hot-otrlcs Son Bso.

When asked if an organization can stay success-

ful forever, Professor George Taucher recently said

in Singapore, "Crea-

tion is the essentialstep for eternal Life."

A state-of-the artdigital telePhone, theworld's first hands-free, voice-activatedtelephone, the intrt}d u c t i o n o f c a r d -phones, telePhonesfor the handicaPPed,f u l l y a u t o m a t e dmanufacturin& virtu-ally intercePFProof

THE ASIAN MANAGER

Slne Darby 13Atla's laE36t,,�td !!'t*nown

tltl@alond'equal to annual sales. Today, the Plantation division

contributes less than 107" of Sime Darby's US$j00

million annual ProfitThe scope of its business is rmmense' flom

Aliica to EuoPe; NorthAmerica toAsia, this grouP

has dive6e interests in agriculhrral Pruducts, mn-

ing and quarrying, hea\y equiPment distribution'

the manufacture of paper Products, chemicals and

metals. And the comPany's holdin8s extend to

trading, construction, real estate and insurance'

Sime Darby's demonstrated capacity to stay

ahead of its competition reflects its sensitMty to

rapidly changrng consu mer needs and its caPacity

to'creihvelv respond to these chanses The au-

tonomy with which its divisions oPerdte has

spawned champions of new ideas and innovation;

a'nd. relentless inhancement of production meth-

ods and new market develoPment'Stratesic alliances with the world's leading cor-

porations have provided technology transfer in

iroduction methods and marketing practices Sime

barby's emphasis on integrated teams has prc

.'idd a qualw conscious, dedicated workJorce'

Srpura [43elnge ha',d€dlYNarr@aor lrre terc-con nuficadonsnap.

17

'HRD rcfidnsme ol tl|e mo6tchrll6nglnga]aas ofma|egFn€ntfu comp iesooenting in tl|el€glon.'

transceivers, and exports to the United States:These are the creations - and achievements - ofMalaysia's winner in Marketing Management.

Established in 1975, Sapura Holdings Berhad isone of Malaysia's leading telecommunicationscompanies and manufactuers. Up against suchindustry giants as NEC, Panasonic and Toshiba,this outstanding company has claimed a 22% shareof the domestic market - up from 187o in i989 -for its main product lines: subEcriber s€ts, mobilephones and keyphones. Total sales volume in 191was $212 million, double the volume in 1989.

Its primacy over the market evolves from prcd-uct development based on home-grawn technol-ogy. In 1988, Sapura Holdings developed aninternationa.tly acclaimed telqrhone - the S2000B-whichwasselfdialing storedupto200numbersin memory and featurcd security functions to pre-vent unauthorized calls as well as to record detailsof calls. And it was all Malaysian.

Sapura has recmdy made forays into Indochina,South Asia, and the Middle East, fuither demon-stratin8 the quality and applicability of Malaysiantechnology to global telecommurrications, and thesustainabilitv of Sapura's success.

AMMB Hor,orncs Brnnlo

AMMB Holdings Berhad is one of Malaysia'smost outstanding and comprehensive banking andfinancial institutions. The range of services it prqvides includes merchant bankin& consumer fi-nancingi leasint and hir€-purhas€; stockbrokin&insunnce; investmentand fund management; and,unit hust management.

The bank's retum on shareholder equitv -averaging 3670 - is consistently among the highestin Malaysia.

Business Week magazine rec€ntly reported thatmaragement gurus Michael Hammer and JamesChampy, in iustilying the rcengineering of or-ganizations, sugg€st that, "V{ork is b€st organizedaround r€sr.rlts, not tasks such as sales or production."

Just last year, the companyreengineered and r€structurcd, qeat-ing a new holding company for thegroup s merchant banking services andmaFr subsidiaries. As a rcsult thebankimPloved its dividend strcam to sharc-holden while increasing its flenb ityin nising capital for operating compa-IUeS.

IntqJration evolving ftom the reor-ganization has rcmoved Estraints todevelopment while providing amechanism for generating the financial

rcsources rcquired for that development. And thetroup s investment policy rcflects its concem withthe welfare of the group, contribution to long-termviability and long-term obi<tives - rather thanshort-term pofitability.

Everybody, the old clichegoes, needs to feel like somebody, and at Sarawak ShellBerhad - Malaysia's winner inPeople Development and Man-agement - everybody issomebody.

Sinc€ 190, this outstandingcompany has implemented aHuman Resource Strategy thathas gamered accolades from respected, interna-tional awards bodies; but mor€ importantly, fromits employees- acknowledged by management asits most important public and ass€t.

Sarawak Shell believes that its capacity to learnfaster than the competition may be its only sus-tainable competitive advantage. And so the heart ofthis company's human resource strategy is thedevelopment of a l€aming Organization culturc,characterized by opportunity for constant im-prcvement and continuous leamhg. It is a culturethat rclies on employees for its direction, and rcl-evance.

For instance, among its improvement programsarc QISS - the Quality IrnFovement SuggestionScheme - and the Quality Improvement Proiect.Under these two programs, employees ate en-couraged togenente, identily and implement ideasthatwillimprovetheovenllqualityand pncductiv-iy of the company.

Alrnost 900 ideas arc received by employeesevery yearard ovell0% ofthese recommendationsresult in rccognition for their authors. Quality im-provement contributions a-re featurcd in companypublications.

Sarawak Shell is also recognized rcgion-widefor its generous compensation packages, its uniquetraining and self-imprcvementopportunities, andits innovative, enlightened systerns of incentivesand awards. As a result, tumover was only 1 .0570 in192. Only .58% of the workforce went on sickleave. A maprity of the company's rank-and-fileare s€cond or third generation employees.

Ask the average employee why he stays, and hewill most likely tell you that althouth an aboveaverage pay structurc is one factot more importantis his shared involvement in decision makins andthe rccognition that goes with it. How do we know

AUGUST'1993

E'rdoyee areencouagod togena''�to, lturt,tyed lnplen€/,t,daa3 ,t Srrerr.

ArtNB: LNtuttW@rfltdt At0la/}p'/lfu'�,ptellt'/,/llt!.

Senewar Suru Brnuen

t8 IHE ASIAN IVIANAGER .

TO LISTEN IS TO LEARN

FM.l i, wm wat d i. Ndb$it atut awn l i. wdA ttu .d.h M t!.d 6 o connu"i.ati@

At Sapura, we believe in the power of listening. Because through listening comes

a world of understanding and a wealth of information.

By listening, we learn about you and your needs. And as such, we are able to answer

to those needs in a highly effective way.

Our business partners whether local or international find a virtue in our readiness to listen.

Thus it is often that our business Dartners become our friends.

@ W @ @ S , M w @ ' B FT o c o m m u n i c a t e i s t o e x p l o r e

THERE ARE EGGS ANDTHERE IS FABERGE.

fusTAs THERE ARE HOTETSAND THERE IS

THE PENINSULA.T H E P E N I N S U L A

M A N I L A

wThe Pen insu la Man i la , Cornet o i Aya la and Maka l i Avenues, Makat i , Met ro Man i la Te l . No.819-1456, tax No.8 l5 -4825.

"leammtk

ad unlty otF|DGe b€stcharactodzegthe Bafi ofAyudhya'swofibrce.'

animal breeds. In addihon, clo6e to 200 mabr tech-nologies and experimental breakthr,oughs havebeen introduced into the agrioltural s€ctor Amongthem are the intrcduction of 2l new high-yieldingvarieties of rice, all of which are largely rcsistant topestilence and arc suitable for dted seeded plant-ing

As a result, the countly's national average riceyield has increased from 1 .5 to 3.5 ton / hectarc. Theiistitute has also developed clones of durian, pa-paya and star fruit; vegetable such as cauliflowerand cabbage resulting in an increase in yields from537o to a phenomenal 5007o in the case of star fruit.

Havint encouraged crop diversification, theinstitute has also considerably broadened andstrengthened the country's agncLdtural commod-ity export base. Malaysia's export corrunoditiesnow include not only rubber, palrn and cocoa, butfresh and Focess€d tropical fruit.

The institute has also advocated the prudent useof fertilizers and chernicals as well as indirectlygenerated growth and employment in other com-plementary sectors such as services and manufac-turine.

AsIe Flfu,sAh fexhtrcdYdn ha funwelk*efued lnthe htefiEfloaelna*et.

fhh,€helongndutnoogkol,Prcslde'.t, Du Pontfhall',td.

fh. BarI( dA tdhya lB tnavedck ht tlt€fhd b klng,Nustty,

Asre

Du Pom (THerr-euo)

Tunt-enoFrsrn Co, Lro,

It was a wise managerwhooncesaid, "lf there were no difficulties,there would be no triumphs." o|rrwinner for Ceneral Managementsecured a 40% share of the highlycompetitive, traditionally Indianand Japanese-dominated local tex-tile market by demonstrating con-sistent innovation and creativity inthe development of new products;advanced, state.of-the.art produc-tion methods and rapid responsesto changes in consumer preferences.

Asian Quality Management guru ReneDomingo tells us thatthefiIstandmost importantstep in practiqng kaiz.rl (conhnuous improve-ment) is to eliminate unnecessary productionsteps. This company was the first to employ thepre.oriented yam and draw-textured yarn combi-nation, simplifying a complex process and in-crcasing productivity by rcducing manufachrringstePs.

It was also the first to pnnJuce fully-drawn yamin a single step. lnnovations such as these haveplaced the company well ahead of its formidablecompetitors. Since 1989, this company has beenthe largest and most integated nylon textile pro-ducer in Thailand. Revenues increased from B44billion in 1989 to alrnost 868 billion in 1992.

This year's winner in Marketing Man-agement belongs to a group that has bothsustained its excellence in the productionof chemicals and speciality prcducts andits rclevance to the contemporary marketplace: Du Ponfs secret is "multidiscipli-

nary team selling." These marketingteams ale composed of specialists in development, production, sales and afterservice. Team selling has been particu-larly effective in Thailand as a r€sult ofs€rious short supply of scientific and tech-nical Dersonnel.

Strong technical support is critical in overcom-ing customer rcluctance to try new materials andproducts because the technology may be toodemanding. "Excellent firms don't believe in excel-lence, only in constant improvement and constantchange," according to Tom Pete$. The effective-ness of team selling at Du Pont has been enhancedby the introduction of Continuous Imprcvement, asystem intended to reinforce teamwork and em-powerment and to sustain competitiveness by con-tinually improving pioducts and services.

B,tnr op Ar.uourl

I€an, conservative, aggressive; d)'namic: theBank of Ayrrdhya, the winner for Financial Man-agement - known locally as something of a mav-erick in the banking industry - is a bank on the 80.

Profits increased 607. in 1992, and it was thefifth most profitable bank that year The bank'sasset management has been essentially conserva-tive; the bank wiote off non-performing loans,and provided its clients a level ofservice the industry marvels at. Asa result, the bank has expandedostomer services, developed a na-tionwide, online teller netlvorkand expanded its operations in ru-ral areas.

Teamwork and unity of pulposebest characterize its work force, andmanagement ensurcs efficiency andeffectiveness of operations througha policy of open r:ommunication andhonesry One story that rccently cir-culated in business circle5 concernsits chairman paying cash for theprivilete of copying personal docr-ments on a bank copfng machine.

AUGUST 1993IHE ASIAN MANAGER .

PromotingProfessionalBankingCompetence Through

o Education and Training. IntegratedProfessional

Development Programs. Specialist Development Programs(Classical, and Distance Learning)

o Research in Banking andFinance

o Consultancy Services to Banks

INDONESIAN BANKER'S INSTITUTEJl. Kemang Raya No. 35, Kebayoran Baru

Jakarta 1 2730, INDONESIAKotak Pos No. 6708/JKSRB, Jakarta 12067

Telephone: 62-21 -799091 I , 7992012Facsimile: 62-21 -7 990927Telex: 66080 BANKMG lA

Trw Fmums Brm

A r€cent reDort on I-ee Kun Hee, chairmarr ofSamsun& in comparing the imPerial mamgementstyle of his contemporaries, said the chatman PIgfers, "to act like a cheerleader, at least to his 200,000employees." Pe6onnel develoPmmt is the Pri-mary concem ofThai Farmers Bank, the winner forPeople Development and Management and ha$been for decades. Its cheerleaders have made em-ployees the prirnary and mapr beneficiaries of thisexcellent company's enliShtened, Patemalistic atti-tude towards its people.

Thebank maintains a US$9 milliorl state-of-the-art training c€nter managed by in-house conrs€dir€ctors. In 193, it is estimated that &000 employ-ees - more than half of the bank's work force -

will be enrolled in its various programs. More than84% of rank and file receive taining every year.And arurual training expenditures per employeeinqeased 42% ftom 1989 to 191.

The company is no stranger to The Asian Man-agement Awards. ln 190, the first year of the

Awards, this bank'sleadership in thearea of informationtechnology was rcc-ognized. With thisyear's award forPeople Develop-ment and Manage-ment Thai FarmersBank is a winnertwice over.

Although barely a year old, AlPhatec Elechon-ics, a rnedium-sized manufacturer of elechonicdevices, primarily inteSrated cimrits, is on thecutting edge of information technology. All thecompany's intemal systems are on-line, providingits 1,400 staff rcal-time, interactive infornation oninventory manufacturhg uPdates and yield datarcPOnS.

It is also on-line with its lar8est ostomers viahigh+peed data communication tines and E-Mail;ploviding quicker response time, iust-in-time in-ventory management for customers and the com-pany; and, vastly rcduced levels of paperwork.

Whateverexemplaryeff iciency lwels havebeenachiwed by conducting business in hue hiSh-techfashion have been hanslated into solid Profits.Atphatec Electonics gross revenue of US$88 mil-

lionin 191 doubled to morethanUS$176milionin1992.

IGr'zen is important in agricul-ture because it is difficult to raiseprices according to AIM Prof.Fnncisco Roman. "Thercfore, in-qeasing profitability r€quir€s rc-ducing costs." The r /inner inOperations Management is amember of a world<lass multina-tional network known for its PIe-mium brand of pineapple andother agricultural Pladucts.

Dole's products arc best sellen the world over- ftom the Middle East to South America; ftomEurope to Japan and the rcst of Asia. GeograPhicdistant markets relative to Production cente$ hasalso made iust-in-time delivery ard quality mar-agement critical success facto$ for decades - longbefore modem managers associated these practiceswith the concept of Japanese rnanagement. Knownfor its iNpvation in meeting Productivity targeqthe local company develoFd in-house the "guava

halJ cutter." This device has reduced the number ofman hours requircd for Prccessing troPical fruit bynearly 30,000 hours.

Quality levels arc discuss€d daily in productionmeetingi and Dole has instituted in its oPerations acontinuous improvement program. Irtoductivityand go$'th targets arc reset every yeal and havebeen met without fail.

Last yur our judges had difficulty Mning a wintwin Deoelapnet t Managenat in ThQiland. As a re-sult, rc atnr d uns ghmr. This Wr, thoe uns no shor ta 8eof desroing oryanizltions. h fact, tun organizationsshaft the '\ued for Deuelowvnt Management

SurHorHet Trnlo.tATHIn rr OPINUnnrnsnv

The purpose of educatio4" we are told, "is totEnsmit the cultwe of a society to its youn8. Inaccomplishint this, it is hoPed that the individualwill be armed with knowledge, shength of iudge-ment and moral virtues, as well as the ability tomake a livin& and in the Proc€6s, Preserve theheritase of the nation and the achievements of

|)ol9't ,4o btyn tyno.'a bWn{�{tdr.r4.b tualFAntc.

t'lto-{np vhrr|€,t,fM Fanata B k.

Dolr (THrneru) Lro.

Ar,pHrrrc EncrnoNlcs Co. LrD.

AUGUST 1993. IHE ASIAN MANAGER 6

'Altbough theopcn lrnlveBityDONOF

toachingehmg|lE ttomvadousuniYsrsitiesabrcad, it 136366otldly lhdin culture andcurlculum."

PrcVrorls generanons.Our filst winner in this category in Thailand is

an institute of higher leaming that for 14 years hasmade a critical contribution to basmitting thecultur ofThailand to its youngand opportunity tothe not-so-youJrg. The filst distanc€ teaching uni-veEity or open univeDity in Southeast Asia, theuniverity was conceived and developed by Thaieducators.

Since 1980, over 805,000 students have eruolledin the univeEity, the majority without ever settingfoot on carnpus. The unive6iys ladio and televi-sion programs reach almost five million Thais allover the country every week And it has graduatedalmost 2mr00 studmts from all walk of life whorcceived their education via rnail, radio and televi-sion - induding the multi-awarded "I-aw for theGeneral Public." Over 90% of students e olled inthe university obtain work; rnany enter graduateschools in Thailand or abroad.

Tu.lrr,,r.xo Boe.no or INwsrusN"fs

Michael Porter's CompetitioeAdaantage o/ Nafrbrs was perhapsthe first formal acknowledgementthat the capacity of a country toattract foreign dtect investment is acritical determinant of its capacityto create iobs, generate nationalwealth and enhance the quality oflife of its people.

Thailand's economy grew atdouble digit rates in the late'80s. Itsremarkable success throughout thatdecade and its capacity to sustarnhigh gowth levels - it recordedthe second highest growth rateamong the newly industrializedeonornies and Asean in 1992 - isattributable in large measure to ou!next winner

Last yeat Thailand's exportsgew by an estimated U.87o, andaccording to theAsian DevelopmentBanks 192 annual report, its "com-

petitiveness in international trade remained shongdespite shortages of skilled labor and higherwages." Its capacity to attract foreign inveshnenthas also remained strong: the agency ol8anizedUS$.7 bilion in infrastructure poiects frcm 199G9, and recently annourced incmtives for educa-tional institutions to addrcss manpower shortages.

The agmcy currendy handles over 80% of allioreign investment which accounts for 90,000 newbbs each vear.

Horw Korre

Moronou SrMrcor{nucrons HoNcKonc Lm,

Software wizard Bfll Gates - whenasked to comment on the injormationrevolution-said, "If your business hasan''thing to do with informatioo you'reindeeptrouble." Hisintersiewernoted,"ff he-s right that means alrnost every-one. Get ready for tou8her competitionthan you've ever imagined."

Founded in 1967, our wimer forG€neral Management and People De-velopment and Mana8ement is rcad),A wholly-owned subsidiary of theworld's fourth largest semiconductorcompany, quality is a way of life atMotorola Semiconductors Hong Kong Ltd. Em-ployees carry cads dut rcad, Our FundnmmtalOWctiTx: Total Custonw &trbfacritn. On the rcvereit prcvides Key B€liefs, Key Goals and Key Initia-tives. And the company believes in two things:First, constant rcspect ior people; and two, uncom-pnmising integriry WithinAsia, say soulf,es ftomthe Economist Grcup's Busines International, thecompany has been particularly innovative in creat-ing new operational Plocedur€s and rnanufactur-ing standards to ensue total customer satisfaction.

Its cross functional teams work direcdy withsupplien in the development of new poducts.These teams have made a critical contribution toattaining and sustaining world class prcduct qual-ity, enhancing delivery schedules and building al-liances. They do this by capitalizing on the gowingdemand for total system solutions among theircustomels' softwarc, system design arld applica-tion support. Motorcla's commitment is to deliverthe best service and poducts in the industry; tocontinuously out-perform its competition and toexceed ostomer needs by giving customers whatthey want when they want it.

There are three Key Goals: to be b€st in class,increase global market sharc and achieve superiorfinancial results.

The company'sSix Sigma Quality - a Programto mcouragequality imprcvement and Limitdefectlevels to no more than 3.4 defects per million - isthe filst of five Key lnitiatives. Together, they per-vade the company's entirc operations, ftom manu-facturing to administration.

Peter Liu of the Hong Kong Business Schoolnotes that, "These days, many employees dorltiustcarc about the money they make but also whetherthey arc head with rcspect."

Motorcla has a stl�on8 tradition of participative

AUGUST 1993

Lenhlp,n.echr'o/d8, tfMotodaSon|bondrcto,!,

gn S,&na''!&t''rd ,tr,St ponttlavttdptt

6 THE ASIAN i/AT{AGER .

CU$TOMERSATISFAGTIO[Irs THE 0il1rREWARD WECARE ABOUT.

At Cafe de Coral, we've always been strict about quality - the quality of our

food, services and management. Simply put, we always insist on the best. $ For

ultimately, no matter how hard we push ourselves, it is the total customer satisfaction that is our

main concern. We know that what counts is not how we rate ourselves, but how our customers

rate us. And for that, we're happy to keep working for 100 marks. Not just this time - but always.

.5

E

. -

E

3

A MISSION TO BE WORLD CLASS

To be at the forefront of technology... Provide our customers

with a range of services that meet the highest international

standards... All at competit ive prices.

The essence of our mission.

Singapore Telecom serves more than 3,000 international

companies that have chosen Singapore as their Asian home.

0ur te lecommunicat ions serv ices and. in f rast ructure are

consistently rated among the best in the world.*

We'returning oursightsto international markets. And Singapore

Telecom will continue to be guided by a single determination to

offer world class communications to our customers. wnerever

they may be and whenever they may need them.

It's a promise we've been keeping for years in Asia. Now we're

ready to make it to the rest of the world.

A N D A W I L L T O S U C C C C O

Singapore Telecom Comcentre, 31 Exeter Road, Singapore 0923 Tel: 65,g3g 33gg Fax: 65_733 1350Si nga pore Tefecom USA S u ite 500, 301 Rive rsi d e Aven u e, We stporr, CT06880USA Tel: 1 -203-454 681 8 F ax: 1 -203-454 1923

SingaporeTelecomService first. Alwavs.

management and enlightened HRD Policies thatrecognize people as appeciating assets and the keycontributor to competitive advantage. EmPloyeesundergo a minimurn of ,t0 hou$ Per year of train-ing and nanagement constantly evaluates marketcompensation tlends. The integrated emPloyeeteams devise their own PrcSrans to imPrcve thegeneral work envtonment. For iutance, employ-ees have inhoduced flexible work hours into theirrcgimen and play an active role in identifyinghaining needs. Every emPloyee comPletes an an-nual Performance Appraisal and Career Planningexercise, induding the formulation or rcvision oftheir career Dlans.

Gverybody has a careo at this comPany, not iustai:b,"andMotorola scomPrehersivecareerdeveloPrnentptqgramsflswetl|ateachof its1,941 ernPloyeesare ptovided the oPPortunity to develoP then Pote(Fnzl-h192,72L ol tlreworkforcewaspromoted,andthr€e pecent ben€fid fiom pb rciatlon designed to

acquaint fuhre leaders with all asPecb of the com-pany's ope!.'atons.

Con,rl Holnnrcs Lro'

'The idea," Wal-Mart's executives say aboutoperations in a rccent Fortarc rePort, "is to run eachstore as ifi(s the only one you have." Caf6 de Coral,winner in the cateSory of Marketing Maragement,operates the lalgest fast food chain h Hong Kong.Its 20% market share in the local fast food industrygenerated rcvmues exc€€ding US$118 million in

191. By comparisoa the dos€st comPetitor reported US$76 million in sales for that same year.

Atd the srrccess of this excellent organizationevolves ftom running each store as if it werc theonly one it had.

Return on sales is a healthy 12.867o: the indushyaverages between !107". Cai6 de Coral managesrestaurants in Macau and China; in Augusi 192, it

opened its 100th oudet in HongKong. So abundant arc its branchesand so broad is its rcach that the

$oup boasts of beinS the onlY fastfood chain to out-sell McDonald's.

Besides providing value forrlton€y and staying dce to the cus-tomer, management athibutes itssLrc(€ss to fumovations in Foductline, eftctive and original advertis-ing and sales promotions. The chaininucduced long-boiled Chinesedesserts,printadvertisementswiththe look and feel of regular newspa-per columns and convenience

fu&ging for tate-home orders.

"A tnte hit Ploduct establishes an entircly new

ftanchise in the marketPlace. You car desiSn theseproducts, and they not only win awards, but selllike crazy, too," one innovato! notes who sounds as

if he works for CaJ6 de Coml. Initation is not only

a sincerc form of flattery; it is a keysucc€ss indicator.

Judgrng by the attemPts at emulation this

company has spawned, the chain sets the standard

for qualitv and s€rvice in the local market. Tech-"otogy lii" that incorPonted in the cornpany'sSpring Chicken Set packaging - it is both con-

venient and attractive - is quickly bonowed.

JCG Holotttcs Lm.

Although technology isa key component of com-petitive advantage leadersof successf irl corPoratioluagree on one thinS: staYdo6e to the customer,

JCG Holdings Ltd.,winner in the category ofFinancialManagementisadeposit-taking comPanyfocusing on retail con-sumer financing services.Since 192 JCG Holdingshas built a network of 32 branches - the largestnetwork in Hong Kong - which keeP it doser tothe customer than any other dePo6it-taking institu-tion in the market. The company's financial serv-ic€s include personal loans, overdnfts, mortgages,hire purchase facilities, tax loans and cedit cad

serviies. And it offers stockbroking servicesthrough its subsidiary, JCG Secr.uities Limited.

A key measure of this comPany's exemPlarfinancial management is its high levels of caPitali-zation and liquidity as well as rcbust Profits and

exceptionaly hiSh rctums on equiry

JCG Holdings reported a caPital adequacy rauo

of57%- the minimurn requirement of the BanI ofInternational Settlement is 16%. Equally impes-

sive is the company's liqLridity ratio: 67", wdl

abovethercquir€dminimum25%.Profitsinoeased41v"n1991 a d52E" i\l92,andeamingspershareincreased 297o in 191 a^d24.2E" lr:.79/2.

Its solid Performance rccod rcflecb Prudentesentially consewative financial Policies and the

strong financial conhols which are a pillar of the

company'sunderlyingstrcngths. Its Pusuitof cus'tomer service excellence is manifest in its hainingprograms which encornpass aI staff levels.

And it is develoPing an inlormation technologyinJrastmctuJe to maintain the integrity of the com-pany's financial policies while enhancing customer

rcA r'tr/.hgt4ob iE 'dbt,ttdMopailE!,'9'''n.'|dcr'd�t co',t'rlrr|dE,h''�ltr''aa,

AUGUST.IgS. ]HE ASI,CN IITAMGER

"Dordt6Pka Hut's1r|atlvslyBhph poducfllne, tl|6comp yru|Blb nmdouycm|d€roeoratons llkcI dghdy run3hlp.'

seruic€ staff support, and potential for continuedgmwth.

Fottutre maguine has onrcunced erpnded cmry-age of the unrw's nt,6t dwmic ond important businas:infonation technology. Ne.tvthzl6s, the Hong IAngptwl S judges dtw not to tak an aunrd in thbcategory thi6 yqr in Hong Kong. The criteria stirylatethat thz Aund is for tle castioe ue of inlomationtedvwlogy to enhance the omptittur gtsition S thecotflWly. bton ution tedrnology is a f*ute of HongK:ong busiess and there arc nany insturcc ol tluapflrcation of lading<dge technology. Huueuer, theleoel of inrwrntion and cr@tipity in the arytitntion ot'tulornntion tedmology urri& is wnnaqy asxriatedwith organizations rcefuing this aund uns not claflydenatg ratcd.

'Corporations onc€ built to last like pyramidsarc now mor€ like tents,"' Peter Drucker said in arecent interview. Pepsi4ola president CraigWeatkemp- det€rrnined that hjs organization lastlike a plramid - got his managers thinking seri-ously about the fuhrre despite the good times hiscorporation was enirying by creating a sense ofaisis. This highly irurovative rnartager gave his top11 managers toy hains complete with 11 tiny,frightened figtr€s standing on the track in fumt ofthe locomotive.

Despite Pizza Hu(s relatively simple poduct line-pizzasof almostanyand everycombimtion-thecornpanyruruitsrurwkablyaomplc(op€!:ationslike

a tighdy nm ship, in partbecause of that samess$€ of cisis. The com-pany is a mecca forPizza lovers world-wide. Fast food con-noi66eurs love it for thetangy, cheesy pizzasand the restaurantchain's wholesomefamily ambiance alrrddean interiors.

ln its drive to stayahead of the competi-tio& Pizza Hut JadinePacific has developed a

IHE ASIAN MAMGEF

point-of-sales system installed in each outlet whichtracks and storcs everything from orde$ to tablenumber, number of guests and server. Computerwork stations arc strategicaly locad throughoutthe r€staurant. The system has dramatically m-hanced order processing and minimized enors.

Data is elecironically transfe[ed to head offic€systems daily, and gmerates stocking rcports, con-tributes to firuncial and inventory conhols andprovide marketing feedback

Critical information is communicated via elec-tsonic mail ftom the head office to each stor€. Adelivery service database provides the store man-ager and the delivery person qitical inlormationabout a customer's order: how many time andhow ftequendy the customer has ordered a take-homepizzainthepastevm,whetherthec,ustomerhas a fierce guard dog at the gate,

Two other dEracteristics demonstrate the or-ganization's sense of oisis h a highly competitiveenvftonmmt Fi$t, the company will provide anycornbination of cnrsts, condimentsand ingr€dimtsthe custorner deires. AIld it will do this withinspecified rcgufady monitored time paramete$.Second, the duin invests heavily in market re-searh to enhance its capacity to saHsfy rapidlychanging consumer preferences.

Holrc Kowc MmlcrurvrAssocnnon

I^ The Post4.Epitolbt Socfu{' Drucker also sug.g€sts that social neds ar€ growing in two areas:"haditional darity; and... evm fastet in rcspect toservic€s that aim at changing the comrnunity andd|anging people." Now in its thirty-third yearchanging its community and dweloping people,qur next winner was founded origina y with iustfive employees to imprcve the effectivenes andefficiency of managemmt in Hong Kong.

The Hong Kong Management Association(HKMA) is a self-financing non-profit association- the largest Plovider of managemmt trainingand education in Hong Kong - and offers over1500 Eaining prcgrams to mor€ than 42,0m par-ticipants every year. And HKMA also olganiz€s aserie offorumsand regionalconfernces and pub-lishes the colony's only bi-nonthly, bilingual man-agem€nt purrlal.

Theassociation has grown with Hong Kong, Inthe early'60s, when the colony's nascent industrieswere taking off, the association begar with a sim-ple, but welcome, trainint program for zupervi-so6. Over the next tfuee decades, its bainingprograms became inoeasingly sophisticated andmultidisciplinary, rcgesenting a wide spectmm

AUGUST 1993

tLi'! bwtlp t''lg,d6yedP tuH t t .

Pzz,r Hur Jenonvr Plcmc

o

ProtoQ

Mary things canbe achieved when

3,652perylea[ share ashglevision.

s ls one.'

The reason for such amazing growth lies in our"total quality" concept that permeates our entireoperations, from administration to manufacturing,from corporate offices to the shop floor.

A n d t h a t ' s w h y t h e A s i a n I n s t i t u t e o fManagement (AIM) recently awarded PROTONt h e p r e s t i g i o u s M a n a g e m e n t a w a r d f o rO p e r a t i o n s M a n a g e m e n t .

I t 's one more th ing that we have achievedtogether and whichcan an be proud ,{." PPOtO7Z

All 3,652 of us. ?*rz*s*?2**tt *t*m**41 ***7*rwl&*tt&

Manufacturer of the Malaysian National Car.HICOMIndustrialEsrate,Batu3,P.O.BoxTl00,40gl8ShahAlam,SelmgorDmlEhsm,Malaysia. Tel:603-5111055. Telex:PROTONMA38545' TELEFAX:603-5111252'

o

It's amazing what can be achieved when we poolourminds and efforts together. Consider this:

Last year our production of Proton cars exceeded100,000 units, representing a I97o increase over thep rev ious yea t .

From 1989 to 1992, we reduced the number ofmanhours to produce each car by 257o.

S i g n i f i c a n t i n c r e a s e s i n a u t o m a t i o n a n dr o b o t i c s h a s r e d u c e d w a s t e a n d e n h a n c e do u r p r o d u c t i v i t Y .

And despite the state of the world economy, ourexports increased by a spectacular 22Vo.

Twoinarow.

Winner, 1991 Asiao Maaagenelt ArardsGenenl Mmagement Category

Awarded to Philamliie Februry 13, 1992by the Asim Ins[tute of Management

Wuoer, 1992 Asian Managenert AmrdsFnancial Management Category

Awarded to Philamliie February 18, 1993by fie Asian Institurc of Management

Oneforthebooks.Last year, the fuian Institute of Managementgave us our frst ManagementAwardin the General Management Category "for

success in strategically positioning the com-pany in the industry and transforming itinto an outstanding company."

This year, we received our second award hthe Financial Management Category " foroutstanding management of the company'sassets, liabilities and equities."

For years we have kept our promises to ourpolicyholders. Ensuring the judicious useof our resources. Hewing closely to ourcorporate mission. Participating in nation-

building as a major provider of long termfunds. Oftentimes taking hard decisions inthe interest of greater efficiency and costcompetitiveness. Knowing when to expandand when to hold the line. Thus assuringthe fnancial security of our policyholders.

These twin Awards in General Management and FinancialManagement hspire usto do even better.

And so Philunlife has earned the rare dis-tinction of belonging to the select group ofback-tcbackwinners intlewhole of AsiaA feat that is indeed one for the books.

lEl,,rFIl The Philippine AmericanUlIe/ Life Insuiince Company

-V*ilfWr;vsf?t.

4f!) A Msmb€r compily ot rhe American Internationat Group

'B6h isknom brits b6|dyactlYbm."

made civic consciousness the norm of local adver-users.

Basic is also known for its foxholes - self-maraged business teams comprised of accourtmanagers, qeative, media and accourting person-nel. Employees clairn that foxholes empower staffand make ownership ofa project real.

PHrr,Ipprxo BusNrss FoR SoclALPnocnrss (rnsr)

Since its inception 22 years ago, PBSP hasworked to imprcve the quality of life for the Phi.tippines' poor thJough empowering local communi-ties, providing technology arld credil identifyingnew markets, and supplying nual enterprises withthe capital resources rcquired to develop dynanicenterprises. The organization is perhaps unique inthat it not pnly assists the benighted, but also seeksto influence the affluent business community, en-couraging majorcorporations and business leadersto adopt community development pograms and

integrate social development policies into theirlargbr busines agenda.

Thz organizers unuW like to ocknqtl-edge the support and contributions ofThaiAin/nys Intenatiorul Ltd., the progan'solficial ailine; Dinus CIub lnternational ,ofticial cretit urd of the Auwds; SGVIArthw Andersen, the official auditors ofthe search and selection process; PicoGroup, the official exhibit organizer; and,Kodak Philippina Ltd, olficial film and

finisher.Sinilarly, special thank gces to the

tawgetnmt and staff ol tfu ofiicial hotels:Hong Kong Hilton; Iakarta Hilton Inter-Mtioral;The Crqutt Pincess Krula Lumpur; Shangri-Ia's EDSAPb0 Hotel; Hyatt Regeflcy Singapore; and,The Dusit Thani.

The knrd's official publications include: in Hong(on g, Sing Tao Daily, Sing Tao Evening Postand TheSta datd; Indonesio, Swa Sembada and. Tempo;Malr3rsra, Business Times; the Philiryines, The PWippine Sta/ ard The Business StaD ard, The Nation,the kLwrd's official wblication in Thailand.

ft,a AtlanM,,rlgj6nontAwatds troplry.

E VA R

E NE

N Ew t T

WH I

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iha t apana th . g lob . .

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cow. . th lpp ln9 ag .ncy ,

conta ln6 . io lu rb lah lng ,

w a r € h o u . l n 9 e . . l

mar ln r oo9 lnc . r lng .

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lLv. o!. ra!t, fttendty ..rvtc€,

a n d y o u ' l l

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*xoz .)1ar,a,,t*'tn-/9,99

34 THE ASIAN MANAGER . AUGUST'1993

Our Credo'*':u';;I$ff '

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Tte Story of the tulan tvlanagsmont Awal& Trcphy

power and prestige of theSpan ish Empi re in -creased at an extraordi.nary pace. KingCharles Iruled the Empire for ,()yeaF, conquering landsbothintheOldWorldandthe New, extendingSpain's dominion andpower anrund the globe.Under Charles I, theSpanish armie were un-conquerable. And theSpaniards' earlier foreMing gave way to aconviction that - underthis foreigner - it wastheir destiny to n e theworld.

Charles I's emblem

Plus Ultra:There is MoreBeyond

eptember 9, 1517. Atlone la6t the awaitedaa/a"*"s. Charles ofBugundy seb sail for

SDain to claim his inheritance.Fb1, while he has nwer left theNeiherlands, Charles is nowthe rightfir.l king of Spain, thelegal heir to the throne left va-cant by his late grandJather,Ferdinand the Catholic, whopassed awav the previous year.^

But the Spinish pebpledrmd the coming of Charles.He is, after all, a foreigner, ardthey regad foreigners withcontempt. For while the Span-ialds arc prcud of the geatconouests of Charles' Pred-".euior - among them theconquest of tlrc New World - they continueto tldnkin nationatrathet than imPerial terms.Charle will drange all that.

Nearly five hundred mm accomPanYKins Chirtes on his vovaqe. More than '10shii esco* the young mdrutch to his newkinedom. His fl;sship, the largest and mostcodrfirlvessel intiefl6t a,fl,aunsamainsailadomed with the pillars of Herc1rles. V\tiftenona scrollthattwrhesaroundthePi a6isthekinds mofto, Plrc l)lha.

Flercules was the most venerated of Greekherces. Hi5 strength and prowess wele un-matched, and his many exPloits the mostrwered in Westem mytholo65r. It was duringone of his many pumeys that the Greek heroerecd two pillars: one on Gilbratar in Eu-rope and the-other on Ceuta in Africa. These'fillan of Hercules" were thoutht to markthe edee of the civilized world. And thus,irucidd onthepillanwerethewordsNePlrcUllra - 'Nothiirg Ues BeYond."

But Charles I had removed the word Ne inNe PIus lll tra to siENJy quitetheoPPosite: thatthere werc vast and wondrcus lands that laybeyond, and that he intended to carry theoillars to the farthest comers of the world.-

And hewould. Under his leadechip, the

THE ASIAN MANAGER . AUGUST 19S3

woutd later be used in the design of SPanishcoins minted frcm the abundant Prcciotrsmetals mined in the Americas. The Ameri-cans would start using the coins - call€d"pieces of eiehf' - in the I 8th century. Andhto th" A-6".i-o dollar would b6ar theemblem of King Charles l - a scroll entwinedamund the twjp hrs oftrlerc'ules. Still laterevolved the "$"- symbol - the two verticaltines representing the pillars and the "S" rcpresenting the scroll. Many other countsies,unaware of the symbolism used in the dollarsign, wou.ld place the two Pillars in a horizon-tal Dosition in the svmbols for their own cur-rencies, suchas thejapanese yenand the peso.

The Asian Management Awards revivesthe orieinal emblem ised by King Charles t ofSpainltt e t*o pitta"s and the motto Pfiis Llrn'

Therearethees''mbolismsinvolved. Firstis the dotlar as a symbol of prcfitabilty, siSni-fying achievement. Second is the motto Pltlsl]ltra - there is more to be achieved. Third isthe globe i.llushating the new breed of manag-ers

"n"eaea i" ttre tbq0s and beyond: globa.l

manaqerc.Thi elegant gtass Asian Manatement

Awards hophy was desiSned by noted Fili-pino sculptoa ImPy P aPil.

swbot tor exc?.n nce.

ASIAN INSNTUTf, OF MANAGEMENTP B E S E N T S

ttreAsianManageme

Awbrdsnt

IN CPOPER^TION VII.II

MBfHOI.DINGS BERMD

(ffi),"*no, n,**t*,\gg7 INSTITUTE

larm x NAGEurmDEVEMPUENI INSITIUD

Qmm-Otrcti AtNtNE

thd^iMls I .iDtioul Lihit d

OrFtqr CPlDlr CatDDiftrs Club Int€dtion l

Oest Horus

Hong Kong Hiton

l.tatu Hihon Int mtio.sl

Th. CllM PriD@s (ud! LlmPu.

sbadSri-ht EDS Pl@ Hotcl

Hlatt R.gcDct SinpPot.

TI|. Duit Thad

OFW ZxHrn OtcaM,tt

OFTICUL FU ND ANISHRXod.t Piilippin6 ltd

OTTfi^L ADrnf)ES OF THESr.^x@ dD SlImoN PRoctss

SGV/ nlNr And@t

Sing Te D.'ty

N.tion Pobli5hing GbuP

37

General Managemenl I Marketins Managemenl

| ilr.T.';.?|.J;�,loorrn,..o Financial Management0peralions Managemenl lnlomation Management

Raach

I0. 0l lmlloyror

Srlaa nrou!!

Iol p.ollb

Comp.ny

Indu.lry

PT, Bfdgostone

Manutacturing oJ chemicils, rubberandplasiic products

Asia, Aostralia, Europe, [,liddle Easi1,300

us$l 03,239,000

$21,235,000

n. t[u$lilaRatu

Induslry - Manufucture oi herbal medicines,bewrages, cosmelics

Asia, Middle Easl, Afd.a1,600

us$16,060653

mr|t.{ .}.n - 55%

PI. Somen Padang Indorama PL lanl Eali

Cement manulactudno Textile manulacturing Banking and Finance

Asia, Australia. Europ€, U.S.A Asia, Europe, u.S.A. Worldwide

2,450 4.100 3,419

US$100,625,744 US$120.000,000 US$6 million

E4lrdlt|r! Dr lrDtq€r/tlrr (t tdu) -us$4.034

PI. Eakrio Pipo Industlca

Manutact!@ ol lab caled melal prcducts,nachinery and equipment

Asta

660

us$28,770,700

Nowinner PKK

Entseriss and Industdrl Development, RuralDevelopmeot

Indoneso

Compriy

Ind|ttlry

Baach

Io. ot lilploylla

Srlaa ruvafirla

ilil proflh

Simc Dafty thd.

Agriclltur€, nanutacturing, construciion,tndiflg, tinance, realestato, health care.lvoddwide

24,500

US$ 2.5 billion annualt

LJ5$300 millioi

Sapun Holdings Sdr. Eorhad

Manuf acture ot telecommlnicaiionsequDment

Asia. Elrope, U-S.A.4,000

USt 212 million

na.ffi.Mn -2210

Satawal Shsll SEriad At[]tB HoldinqsEsdad

hduslry - ojl and oas extnclion 8anlftg and Fimnce

Asra. mainlyJapan and Xorea Asra3,140 2,708US$l,078 million

Etp.ldlbn plr srDlot-!./t!.r (hinhll -us$9,0m

Prolon

Manulacture ol machinery and aquipment

Worldwide

3,528

us$762,000

llalayan Sanling Bodtad

lnduslry - Banking, Finance and Insunnc4

Asia, Australh, EuroPe, USA

13,000

USo 906 million

l||slibtPenyelidilar Dar rcmaiuanPertanial ilalaysia (llARol]Rulal oe!€lopmenl, Agricullulal Researcfi

Worldwide

3,481

Comp.ry

lrdlrdry

Ro.ofi

o. ol eouloylr.

Srlaa ruflnoat

l{!l prollb

Kimbo?ly Clad(

Manuhclure ot paper and paper producls

Asia. Auslralia, ti.S.A.

935

US$ 51.2 million

US$7.2 rnillion

Basic, Foote, Com & Bolding

Cofi nrnicalions and lelecommunicalions

Asia, U.S.A.

272

ust36,560lrrdctr|||n-lt%

I[abushlla Elect]lc Ptilipplno lmodcan Lilslnsutanc8 co.

l,lanufacturiru, home appliance€ Insunnce

Asia, Australia, u.S.A. Ash, U.S.A.2,607 960US$j16 million

E4lndltrro t6r drullF.lt .r (trft |{l -us$5,226

Johnson & Johnson

Manulac'turing

Asia, Australia, Europe, U.S.A.

548

US$45 million

I[e0allnk

Fimnchl intenllediary, business andpo{eslional ssrvices

tuia, U.Si.

22

us$293,545

Philippins Eusinsss lof SocialPro0rcssEnteeise and industrial dsvolopment andrural dewlopment

Asia, Austalia, Eurcpe, U.S-4.

251

Comp.ny

Irdurty

Ra!cn

Io. ol lmployla!

Etlo$ lsvanoaa

I.l p!fft

l{oplure 0riont Lin€s

Transportation seruices

Worldwido

3,300

U5$808 million

US$ 39 million

][cDonald'r Reslauranb ne.

Service, rcslaumnts

Asia, U.S.A.

4.2@.

US$70.2 millioi

Lr*st .t.[ - Y%

Singapoo Gcronl llospll.l Gfclo & caniags

Hoallh seMces Car distribution, fuod manufacturing,property dev. whohsalelrctail and tinance

Sinoapore Asia, Aust|alia, ew Zealand1,300 620Etp.dltun prr !mplot!r&.r (hldlg) - US$978 milljonUS$M

Ercol llachiro TooF, no. Ltl.

Indlstry - Manulacture ot labricnted metalpr00lcrs

Asia, Auslralk, Europ6, U.S.A., Bra2il

89

US$1.3 million

Singapore Tslscoms

Telecommunicalions

Woddwide

10,132

US$1,425 million

llalional Trades Ulion Con0]ess

Fedeation o, tiade unions

Asra, Australia, EuroPe, U.S.A.

2U

Company

tidultt

fiaaai

lo, ot.mplot6.r

S!|!t E|lnuaa

Irl lrofib

Asia Filor

Texlile manuhctudno

Ash, Australia, Europe, U.S.A

us$ 67.868,000us$ 6,401 ,000

0u Pont

Chemacal manulacturino, a0ricultuial seruices

Asia, Australia, €lrope, u.S.A.

107

us$7,341 ,000US$249,890,000 (lndus'try &l€s)

.rl6tl|r|n-17.6%

Itai Fam.F Sani BanI ol Ayudiya

&rkino and Finance Banking and Finance

Aiia, Australia, Euope, u.S-A. Asia' Australia Eurcpe' U S A-

15,813 7,779

us$l ,462,000,000€r9udtul! pr. rmployratr.r (tr.lrln!) -us$7,000

Dolo'Ihailatd

Manufacture ol lood and bewc06

Woddwide

3,500

US$3,216 million

Alplalec

Electronics device manuhctu no

Ash, EuroDe, U.S.A.

1,400

US$ lT6million Worldwide

1,970

Ihailand SutholbaiEoard ol lhammatiirallnve3lmsnt oDon UniYolsi

trilerpdse and Education andIndustdaloevelopmett, tninanoRural 0e!€lopment

Worldwide

Comp.ry

Indldry

nc|chtlo. !l .m9loylor$tl!t |tvrnlla

Llt p.ollb

ilolorola S6miconducto6

lmpotu€xport

Asja, Aosiralia, Europo, U.S.A.1,941us$ 590,000

Calo dc Coral Holdings Ltd.

operationsand manaoement, reshuranls

Asia, sp€cifically, HonO KonO, China, Macau3,910

US$126.6 millaon

t||*.i rlntt - 20.2%

lilotorola Somicondldols Hl( lld. JCG Holdi|l0s, Lld.

hpo.VExpoft Financial Intermedhdess

Asia, Australia, Eumpr, U.S.A. llong Kong

1,941 370us$590,000

Etp.rdltll| plr an ot!.t!rr (tdnl|t!) -u$tl6,650

Pize Hut Janlim Pacillc

Se ic?, fcstaurants

A9a

1,950

US$9.67 millioo

Nowinner Hong Korg llanagemenl Assoc.

Erterpriss and lnd0strial oowlopfiLnl, RlnlIkv!lopment

Woddt{ide't65

(*

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THE ASIAN MANAGER . AUGUST 199338 .THE ASIAN MAMGER . AUGUST 1993

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Toruards MalragJelrent Excellence

Ihroo ro396c:ted tuhn leat|et3, SlngrPore's Ptotessor Tonrmy Koh' ttalland's doputy prlm€

mlnlsier, ii Amnuay Vlnyan and t alaysla's mlnkior ot Intemadonal trado and Ind6try Dat6 S€d

Rddah Azts, oftsr thdr vbw ot tho reglon's dewlopmont and th€ need to stay coltlPotldtve.

Singapore: TheN-ext Quarter

By Prof$3or Tommy T.B. KohAmbassador€t-Large andDirector, Institute of Policy Studies

passages that de6siH the dramatic transforma-tion of the ASEAN region:

"When it was forcibty expelled from the

lvlataysian Federation 26 yeals ago, the 'State' of

Singapore was a seedy enh€Pot town sunoundedby swampland. Is already bleak prospects deterio-rated furiher when, shortlv afterwards, its main

client - the British Navy - announced that it was

pulling out ofAsia altogether. The rcst is, of course,history and the clear€st Possible demonstrationthat poverty and underdeveloPment aIP not incur-

able congenital curs€s io be Passedfrom one generation to the next, in the

Century

fuo/lee9or'ionmry Xoll

hite leafing through the Pages of TlrAsian liowger's (k Tht Asion Man-ager, Nov / Dec'92) recent issue on Glo-balAsia, I carne across some intercsting

absence of natural resources."Vvhat has taten PIac€ in SinSa-

pore is likely to haPW , nutetismutnndb - ar'd, on a much granderscale- inASEAN asa whole... WithinAsia, Singapore offurs its 2.5 millioncitizens the best standard of living inAsia, ahead of Japan, as measued bYthe co6t weighd availability ofa bas-ket of ammities. The average salary ofSingaporean CEOS, at $100,000 a Yeatis the highest in the region; the same

holds true for the s€cond marngerial level. Singa-por€ is in some ways a microcosm of what the

ASEAN natioru: Indoneia, Malaysia, the Pltilip

pines, SingaPorc and Thailand - that singuiarrcsion within Asia Pacfic - has been, is prcsendy*d ^ight b".o^"."

While we ate all gratefirl for the rave review of

our counbys quantum leaP into the front mnks of

the ASEAN rntioru in iust over a quarter century,the next question that arises is: What will Singaporcbe like inthe next quarter century?

Thking off as we are now doing ftom a higher

Deak - in sharp contrast to the metaPhoricaliwampland ftom which our fledgling city-stateemeryed in 1965 -we are faced with the dilemmaof all excellent organizations and nations: How to

meet the challenge of continuing rcnewal and im-

DrQvement.In a very rcal sense, this challenge has already

been met head-on by our leaders when they articu-lated ourcollective vision inSingapote:The Next I'ap.

Our vision is that by the year 2020, SingaPorc will

have become a develoPed countrY.That vision is as clear as the duonological year

onwhichitisfocused. We,SingaPoleans,arcseftingour sights on attaining global, not i.tst reglonal,excellence with clarity of purPose and determina-I!on.

I need not discuss the sPecinc featur€s of Singa-

Dore s next lap. I only wish ho shaF with you some

iho..ghs on ho* *i might avoid the Pifallls into

which many oncegreat comPanie - and cou.n-

hies, even emPir€s - have fallen after reaching the

sunmit of achievement. These thoughs are by no

means origina.t. They do not flow ftom a scholar's

erudition or ftom a businessman's stseet€martacumen. These ar€ iust my random ideas culledftom travels, readings and talks with frimds ftom

manv Darts of the world.Firsi we must rernain oPen and rcsPonsive to

change. Even as we have set our sights on strategicgoals, we must be flexible in adaPting to dynami-

cally changrng conditiors. More change has been

wrought on the face of the earth in the last decadethutr i ttt" L"t cet tuty. Only 6ve years ago the

Berlin Wall seemed imPregnable; the Soviet Union

AUGUST 1993 . THE P.9IAN I\iIANAGER 41

was a super power; and China was stillperceived as a backward economy. With thequickening pace of change, on a global andregional scale, we must be prepared toadaptto revolutionary changes iir thi comlng dec-aqes.

Second, in a world that has become m-qeasingly borderless, we must look beyondtraditional bourdaries of geography, cut-turc, and even traditional-bGness- tinls.This means opemess to the idea of buildingstrategic alliances with countries and or-ganizations that offer distinct advantaqesthat will make our country and busines"sesmore globally competitive. SinsaDore Air-tines is already shoriing the way"th'rough itsatliances with Delta Aiilines and Swissarr.

The main focus of alliances within ourregion today is, of course, the nascentASEAN Free TradeArea (AFIA) which waslaurched right here in Singapore. Other er-amples are-the Growth iriingle berweenSingapore, Indonesia and Malaysia and theproposal to establish one between Malaysia,lndonesia and Thailand.

ThM, we must continue to encourageachievers and champions such as the wii-ners of The Asian Management Awards.These companies serve as outstanding rolemodels for other organizations to emutate.For ma ny years they have painstakingly laidthe founiitions foi sustained growtf,, prof-itability and market dominanci. Their pace.setting efforts in their rcspective induatrieshave, without doubt, upgraded the quality,c o m p e t i t i v e n e s s a n d p r e s t i g e o fSingaporean prcducts a-nd se'rvices.

Fourth, we must continue respecting thesovereignty of the citizen-custbmer

-The

ostomer of the business or developmenrorganizahori is also the primary consiituento f your government . The sovere ignSingaporean citizen-voter is also the cus-tomer-consumer of the profit-seekhg cor-poration or th€ s€rvice beneficiary of thenon-profit olganization. Like youi organi-zatrons, your government is commifted torendering quaLity services to its citizens. Forus to be able to continue doing this, we mustrcmain close to the citizen-consumer, en-gage him in continuous dialogue and seekfeedback on how we can improve our prod-ucts and services.

Lastly, and most importantly, we musttrust in our people and empower them.Trusting ou r pbopie means believins in theirbasic se-nse of duty and patriotisri as citi-zens, their innate intelligence and rational-ity as ostomers and consurners and theirshared commitment to our goals for theNext Lap. Trust brceds resp6nsibility; re-sponsibility brings about involvemeng in-vo lvement engenders commi tment .Stead fast comm itment to Singapore's visionforthe future is the bond thatmust unify ournahon.

AFTA: ItsReliance onManagementExcellenceBy Dr, Amnuay VllayanDeputy Prime MinisterKingdom ofThailand

:Iffi:*isthat you've got.to keep onDerng a success. '

To the winners of TheA s i a n M a n a g e m e n tAwards, we salute yoursuccess, and at the sametime, challenge you to sus-tain this success - to con-tinually refine and enhanceyour product or service,improve your efficiencvand stri ve ior corpora te aniorganizational excellence.

For you are meant to be an example toemulate- to set the standard bywhiih ournation's businesses and manasers set theirobiectives and measure their aihievements.

Consistent success ought to b€ a compo-nent of that standard.

-

Not too long ago, the editors of a higNyrespected mdgazine wrcte- "The peoples ofAsia never had it so good," in referenci to thephenomenal growth in many of our Asianeconomies over the last thrce decades. Theeditors seemed stunned that we Asianscould do so well, and implied that we joUywell ought to be gratefui for our good foi-tune. And of course all good things mustcome to an enct, so tust vou wait.

Two weeks latetihe ;me editoE warned

Dewty Prfune MlnlsterAmnuay Vlrayd,

nesia are rapidly developing into industrial-ized economies producing world-classDrpclucts,-

The West - our worthy competrtor,friend and fiequent mentor -i has odservedthe elements oi our competitive advantage;a productive and affordable work force,lower energy costs, supportive govern-ments, new manufacturing facil i t iesequipped with the latest technology; andincr€asingly, the capacity to develoi-indig-enous technologies in ve4r innovative andvery creative wavs.

And the West has taken steps to enhanceits own competitiveness. It has acknowl-edged its weaknesses and begun to focus onquality management practices honed in Ja-pan, Korea and Taiwan. lt has recognized itspeople as key elements of success - and the

basic building blocks ofcompetitive advantage -and empowered them.Now, it is seeking to levelthe playing field thnrughthe development of unifi ed,multiple-state geographicalmatKets_

The European Commu-nity and the North AtlanticFree Trade Area may nowrcpresent unified marketsmorc in name than in fact,but facts incrcasingly indi-cate that these regionaltrade centers represent apotentia.Uy enhanced levelof competit iveness that

that, "An age of broader, fierce global com-petition, with all its risks and uncertainty,

Asia, Asian govemments,and Asian businesses themselves must, inhrrn, acknowledge and respond to h aneffective, meaninghrl way. And one of themaior responses we inASEAN have decidedto launch is the formationoftheASEAN FrceTrade Area or AFIA.

A rccent study by kofessor Mari Kondoof the Asian Institute of Manasement iden-tified thre€ major obiectives td ensure suc-cessfu I implementation of AFTA- rejectionof protectionism, increased direct ioreigninvestment and rapid development of in-digenous compani& into inte;Etional ouFwardlooking enterprises.

The first obiective is a prerequisite for anincrease in intra-ASEAN trade. AFIA willachieve this by minimizing intra-regionaltariff rates ani eliminatin! non-taiff -mostly bureaucra tic - barriers to trade. Andin this way AFIA- it is hoped - will havea substantial impact on efforts to brins abou tan open ASEAN economv-

_ Thesecond obiective-jincreased foreigndfuect investment - will create iobs, transiertechnology and generate expo* rcvenues.And it is important for ASEAN to under-stand wherc foreign dircct investnent canbe rcasonably expected to come fron, and

THE ASIAN MANAGER . AUGUST 1993

petitioD with all its risks ahas begun." And they werei begun." And they were risht.

Of cou rse, one might a rgue iha t the age ofbroad, fierce global competition beean al-most thirty years aeo. It'is becomini evenmost thirty yearsmost thirty years ago. [t is becoming evenmorcfierceasnew playersenterthe "game.',

The veterans in this comoetition ire rheThe veterans in this competition irc theWest and Japan; Hong Kong, Singapore,Thiwan and Korea are coming into iheirprime; and Malaysia, Thailand and Indo-prime; and Malaysia,

\i::,, iirir: ,-r]\rg{rr{i}*$*e $f not saving energy now will be as clear as day and as dark as night.

Imagine, if a fraction of households and commercial establishments

in the country used one Phil ips Energy-Saving Lamp, energy

consumption nationwide would be significantly reduced, saving

mill ions of pesos in electricity generating costs (i.e. crude oil,

ma in tenance) .

Furthermore, power demands during peak load would be reduced

equivalent to 1/3 the capacity of a geothermal plant or 50Vo the

outprt of a coal-fired generating unit. Existing power plants would

be able to operate capacity-saved, in supplying the electricity

demands of everyone. The incidence of brownouts could be

min imized.

Thus, mill ions of dollars in foreign exchange could be saved for

infrastructure, rural development and other needs as no new

power plants need be constructed.

More i lectricity would be made available for rural electrif ication

and even Tourism, to generate more revenues for the country.

You,too,can save because Phil ips Energy-Saving Lamps saveT5Vo

in consumption costs and last 8x longer than the regular

incandescent lamp they are meant to replace.

s ' /PHILIPS C'MPACT E: T

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#"- &j \,. &- !'A bright idea to keep the counrry out of the dark.

l H t

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ffiffiHffi"#ffiffi

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No matter how complex.

For these are enterprises that help us

generate firnds fiom every trarsaction

they make.

Funds which we plough back

to the countryside.

Most impoi'tant, these are industries

that will help us accomplish our new

mission: be the financial catalyst

for countrywide development.

Joinus in thrs task.

Bank on your country.

Bank with LANDBANK.

Bank 0n Yotn Countryf I 7. started out with one guiding

f I nrincinle: be the financial

catalyst for countryside growth.

But as we look everywhere,we see

busineses now branching

countrywide.

!7e knew it was alrc time fcrr us

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From countryside to countrywide.

That's why we've expanded our

network to 265 offices nationwide.

To put us well within the reach

of these businesses.

Wherever they may be.

Through our commercial unibanking

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their ever-changing needs.

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what will attract it.The third and final obiective - increased

efficiencv and competitiveness of ASEANcornpanies in the context of the global mar-ket - is the most imPortant to all ASEANbusiness leaders.

Competition will invariably force firmsto stav iir shape; good companies will haveto coritinue gdttnig better aid better at whatthey do.

Cettins befter will probably mean ert-bracing tlie practices of t'otal quility manage-ment and constant imprcvement. And thiswill foster the dweblmmt of indigenoustechnologies as well as the acquisition of for-eirrr technology in a never-ending never-re-lenting raci for increased efficiency,Droductiviw, quality and customer service.'

Manv 6cai conioanie wiU be forced toacquire :partners fr6m within and outsideAS'EAN in order to access the teclurology andcapital rcquired to develop new hechnologiesani expaira capacity. And while many ofthese fiirru mav modm the lo6s of their inde-pendence, the impentive of competitive pbsind prosxrity of the maFrity of our PoPula-tion iar outweishs the intercst of vested own-ersrup.

56 a successhrl AFIA, one can sav is rclianton thequality of mamgementand leadeEhiPin ASEi\N eirterprises-and organizatiorrs. Sofar,we ve said thatAFIA- ifit is successfullyimplemented - will have several effects:'.

tt will open our rcgronal economy andlower each nation's capacity to conbol lts owneconomic affairs. We iravealready acknowl-edged that sover€i8nty over economic affair�sis illusorv in anv event.

. E,pansi; wil be fuelled by foreigndircct invatment, which we must rcgionallyand rntionally comFte fo[, like any othercritical - but finite - resoute.

. Companies will cooPerate to Prcducehighernuality, higher value-added Productswith much shorter development and manu-hcturins Deriods in respbnse bo new eco-nomic bilities and @uently changingconsumer expeciations.

These etr&ts wiU - and ProbablY are -

dunging the way we rnranage and interactwith people in Asiar enterPris€s

Fiirallv and perhaps more importantly,ttrere witi ue geiter concem with doing therieht thing, aithe right time, in the riSht walania that is what we are celebradng. Not iustdoins the right thing, but constant attemPts todo tie risi-t thins. Constant attempts thatevmtualli and in&itably reap dividends.

Companie like these recirgnizedby theAwads are critical components of develoPment. WeaF grateful to have such fine otgani-zations as these sPeeding our pumey tomhanced prosperity. And we arc grateful thatthe Asian Manigenieni Awads Povides theopportunity to observe their examPle, so thatwe may follow it

AUGUST 1993 . ]HE ASIAN ITANAGEB

mmtsandthenewlyemergingmarketecono-mies of China and \tets|am are attractintFot€itn Dr€ct Inv€stment GDD to take ad-vantaile of the cheaPer costs of Productionand the potmtialy huge rrarket.

So once again a new cyde begins, rcPeat-hg thecyde-that countries like Malaysia andhei eSf,AN partners have gone through.ThreedecadeigoMalaysiaeitered thesameinitial phase in that cyde whm investmentscarne to take advantage of the then exisdngcheap labor, and the ready market for imPortsubstitutes.

selvesftom that cycleand enter anewcydeona higher plane of industrial and technological

develoPment, their Positions- are taken over bY the newlY

As countries like Malaysia wean them-

emerging econonries in the: legion. The question is, ale

there any lessons to beleamed fn]m the exPerienc€sof countries like Malaysiathat may benefit their succes-sols?

Certainly such exPeri-ences can servethe emelgingnations well in the formula-tion and irnplementation ofDolicies on indushializationind foreien investment.Thevarcinlpooitiontolearnfto; the miitakes and short-

1lI1

cornings of policies adoPted in the Past, andcan institute the nec€ssary changes and inno-vations that can oDtimize the benefits to bederived ftom FDI inflows.

Very often, countries in their early years ofindustiialization iend to welcome foreign in-vetors with minimal conditions. Whafs ofimpodanc€, is the cleation of emPloymentthat the investnents senerate.

Nothing is mentio-ned regarding technol-ogy uarsFr or the develoPment of indiS-ei6us technotogy nor ar€ the Programs forinter-indushy or inFa-industry linkages setout.

In the rnain, the hoot country rcmains sim-ply the vanue for nunufacturing oPerations,with iitde or no contsol over inPut sourcln&orocess and technology acquisition and mar-i<*ing of goduc{s. What

-has happened in

some-casei is simply the relocation of existing- industries frcm the devel-oDed country to thedevel-o 'p ins count ry w i thtriroiany spinin to ttrerccipient economy.

'Ibday, such countsie6have beBm to r€alize theshortcomings of theseearlier policie. Suddenly,the sul5tct of technolog5rtransfer has sudaced andwith it questions as towhether tiere has indeed

Managers:Catalvsts for

v

hogressDat6 Sorl Rafrd* AzhMinister of International Tradeand Industry

fl nce again the AsianI I Instituie of Manage'I I m e n t i s g i v i n gtU recoqftion for man-agsn€lrt oalklce to th6ewho have brought theirteamandtheirrcspectiveor-ganizations to th; foreftontof success and who haveachieved distinction in theiareas of specialization.

Connrahrlations to thewinnersiAlways rememberthat whatever successachieved is rcally the Esultof effective teamwork andcolective input by all involved in meetingd€simated iaryets.

,aG in any siirilar situatiorr it is alwa's theleader, the manager, who stands out mostvisible ftom the rest of the team and usuallyaccepts the token ofappreciatiori and recogni-uon.

But this does not detract ftom the fact thatwhile an exc€llmt manager/leader excels han individual capacity, his or her excellence isalso measured by how effectively the leadermanages to mobilize all resources availableoptin;ly to achieve preset targets and objec-uves.

Todav, manv of the developed counhiesare besiiinine io suffer from

-the effects of

several"yean 6fsluggish and minirnal growtl'and corporate leaders arc finding it inq€as-inslv diificult bo keep their companies afloat,wXiie others have gone under and still otherhave succumbed totakeoveG and buyouts.Coupled with demandsfor litter compensationby the workfoice, risingcosts often forc€ manag-ers to look ofthore forfuture and long-termsu '!var.

Inceasingly Asia, inDarticular East Asia, hasbecome a focus of atten-tion for olfthore hvest-

"Compsttdon wlllInvadably hrce flnnsto stay In shape; goodcompanles wlll have tocontlnue gettlng bettotand better at whatthey do."

Dat6 Sed RatuN, AzE

been effected the necessarv development intechnology, and the creation of indigen<.ruscapabilities. Sirnilarly, local enhepreneursbegin to question their rcles in the indwtrialdevelopment of the country, having wit-ne6s€d the booming of for€ign investmentenclaves that do not have linkaqes with themor to them.

It cannot be denied that during the initialyears of industrial development the hostcounEy is striving had to achieve the neces-sary critical rnass of investments to generatethe momenhrm for grcwth. There is hardlytime to pause and take stock of the situation,or to rcview policies to take into account theeconomic spin-off to the local entrepreneurialcollunuruqa

Courtries like Malaysia have begun to dothat stocktakin& rcalizing the fact that whileforcign investments will continue to be mo6twelcome and encouraged, policy reviewsneed to be undertaken to ensue that over thelong term, therc will be balanced local inputinto the industrial development of the nahon.

'lirdayMalaysia has been

able to create a large pool ofMalaysian managers andcorpora te ex ecu t i vesth.rough a policy of deter-minint quotas for local rc-cruitment. Our policy onlocal content utilization hasbegun to result in the emer-gence of corc domestic in-d u s t r i e s c a p a b l e o fsupporting the require-ments of large multination-

"Malaysia hc cometo the stage whercit is lmportart toflace emphasisupon technologicaldevelopment,"

who have accumulatedenough experiene in indus-try, in the employ of others,to venfure out as entreprFneurs themselves. Suchmanagers are good candi-dates for enbepreneurial deve lopment ; and the i rworking experience in in-dustry should hold them ingood stead to start industrialventur€s in areas with whichthey are familiar.

als, and even selling to the export ma*et.Prescribed equitv conditions have also

enabled Malavsian iirms to form ioint ven-tures with foreign investors, where theprojects serve the domestic market. In short,the govemment incorporates the intercst ofIocal enbepreneurs in formu lating poticies oninveshnent and industrial develoomenr.

Ur'hat is important is for the Mabysranrthemselves to avail themselves of the oppor-tunities open to them. There are Malaysians

Malaysia needs enheprcneurs with expe-rience in managing industry to rnake up anudeus thatwillsDawr a newbrced ofindus-trialists to take th; country into the 21st cen-tury

On the question of t€chnok€y hansfetmany host countries have found this to be adisappointing situation. Technology transfer,if it occrus, is often at minimal levels, andbears no semblance to the technol(€y of thestate of the art nahfe found in the oarenrcompany. Few foreign investors incorpoEtemeaningful technology transfer with theirinvestment packages and backward intega-tion rarcly leads to rcsearch and developmentefforts and innovation.

Thus the depth of forcign investments donot often reach the corc of industrial andtechnological development, and remainspread thi y over a divene array ofprcductsand large scale operations.

Malaysia has come to the stage where it isimportant to place emphasis upon techno-logical development, as a natural consequence of industrial development. Thus, thequestion of technology transfer has to be ad-dressed, and in this context, the governmentwelcomes efforts by foreign investors to inputthat technological component.

The govemmmt is looking at measures tofacilitate the effofts of the Drivate s€ctor to setup Research and Deveiopment facilitieswithin Malaysia, particularly in ar€as thatpiovide Malaysians the opportunity to inter-face with forcign technology and resea.rch,and inqease their caDacitv to absorb technol-ogy Fansfer and innovation.

It is hoped that Malaysian marugers willbe the catalysts in the technology transferprocess by helping to identify strategic arcasof technology that Malaysia can beneficiallyadopt and adapt, and assisting large foreigncompanies to work out technology transferprograms over the long-term.

In additior! they can galvanize the Malay-sia workforEeundertheircharte to shengthenthe latter's capacity to absorb technologytransfer at all possible levels. Indeed, theagerda of the 190s for Malaysian managenshould be to contribute to strengthening thenation's technolqg5/ base while assuming acata\.tic role in the countn/s accelerated in-dustrialization drive.

- t

]HE ASIAN MANAGER . AI.TGUST 1993

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46

U$ONBNruGIORAMODERN

PHITIPPINESThe Philippines is abundant with human andnatural resources required for a country to becomea newly industrialized economy.

The Role of DBPAs the country's leading development bank, theDevelopment Bank of the Philippines providesmedium and long term funds to agricultural andindustrial enterprises. Key sectors of the economyidentified are transportation, telecommunications,power, agriculture, education and health care.

Modern TransportatlonA modern, growing economy needs efficienttransportation to move people.and goods tostimulate business activities. DBP is funding themodernization of transport assets: new buses,aircraft, oil tankers, shipping facilities, etc.

Modern TelecommunlcatlonsA modern society and an expanding economy

::ffi:jil1:*.without adequate and efficient

DBP finances the exoansion of telecom facilitiesand the instal lat ion of a satel l i te networknationwide. When fully operational, even the

remotest provinces and the most distant industrialestates will be just one electronic pulse away fromMetro Manila and the slobal market.

Morlern AgrlcultureDBP is deeply involved in the development ofmodern agricultural technology such as irrigation,waste recycling, smoke-curing for fish and meat,and cottage industries to improve the lives ofouroeoole in the couritrvside. DBP also assists farmersin shiftins from the traditional rice and com tcrhigher value cash crops like asparagus and cotton,as well as the development ofnew varieties ofrice.

EducatlonThe competitive edge of a newly industrializingcountry is honed by the familiarity of its workfrrrcewith rnodern educational facilities. Because of itsassistance to higher education, DBP has helpeddevelop a highly qualified, computer-literate work-force equal to the challenge of modern business.

Hedth CareA healthy workforce is a reflection of a healthyeconomv pBl has packagcJ Fruqrams n, rddresthe mcJical anJ health nssl5 1rf1,ur neoole in the

countryside such as the acquisitbn of modernmedical equipment for provincial hospitals. lt isn r 'u lus : i l ' l e f , ' r pa t tenr : in . r 'mc pr ( )v ince5oarticularlv in Central Visavas to be treated at theiloilo Dociors' Hospital without need of costlytrips to Manila.

Other Modemlzatlon EffortsDBP is likewise engaged in providing financialsupport for the successful oil exploration in \ilestLinapacan in Palawan, and in the upgrading ofport facilities around the country.

Partners ln ProgressAs the country's premier development bank, DBPhas cultivated a working partnership with otherfinancial institutions which serve as retail outletsof its wholesale funds as well iis with various localgovernments and NGO s which serve as catalystsfor change in their regions.

ln the meantime, DBP continues to build upresources in order to ensure its continued viability

ilXllXl."t strength rc fulfill its developmental

Our success is your success.

HDBPDevelopment Bank of the Philippines

Member of the Philippine Deposit Insurmce Cuporation (Marimam Deposit Insurance for each l)epositor P100,000.00)

PHILIPPTNES

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SOUTHERN LUZON: Calapan, Daet, Legazpi, Lucena, Masbate, Naga,Puerlo Princesa, San Jose (Occ. lvlindoro), SorsogonRegional Office: Lucena City, Tels. 3765/2591

VISAYAS: Antique, Bacolod, Bogo, Borongan, Catarman, Catbalogan, Cebu,Dumaguete, Kabankalan, Kalibo, lloilo, Maasin, Ormoc, Roxas, Tacloban,Tagbilaran a9gbnaLQflEs Cebu City, TeL 94243

NORTHERN MINDANAO: Butuan, Cagayan de Oro, Dipolog, l l igan, lpil,Malaybalay, Ozamiz, Pagadian, San Francisco, SuligaoBegional Office: Cagayan de Orc City, Tel. 3319

SOUTHERN MINDANAO: Basilan, Cotabato, Davao, Digos, General Santos,Kidapawan, Marbel, Mati, Tacurong, ZamboangaBegional Office: Davao City, Te1.74396

=-I

ti t

1l

t ! iT i

Heightsneed deep

foundations.Sound advice, as any engineer willattest.

So before we set off for theheights, we've made sure we'reanchored on rock-solidfoundations:

A base of banking services whichcontinuously improve in anincreasingly competitive bankingenvironment.

A wider reach in more and morebusiness centers around thecountry, and more importantly,a deeper grasp of local businessclimates

A growing roster of satisfiedclientele: from small companies tocorporate giants

Enhanced technology that servesto make systems more accurateand customer service moreresponsive

People dedicated to improvingthemselves as they build business-- clients' and our own.

All these done with a passion.A Passion for Action, we call it.It has seen us build a stronsfoundation.Now watch it take us to newheights.

Toword,s Neu: Heights

MUH***"!aNK

Revoh-rtionizing Philippine banking

Megalink PrepaFes forthe Pacffic GenturyBy Emmamrel F. Amador

Megalink Inc,, the PhilipPine winner of the 1 992Asian Management Award for Informatjon TechnoFogy, is a true Asian originsl-'wtrite

it was not the fir'st to link the sutomatedteller machines tATMsl of difturent banks in thePhilippines, Megalink put up the countrys fir€t oPer&tional shared ATM network White it did not invent thebusiness, the innovations it has made to continuouslyimorole hs interbank ATM network and strengthenits oosition as industry lesderthr€ugh such advancedmanagementconcepts as Management W CEos andServici Level Agreements were all pioneering efforts '

With 1 7 membenbanks, '13 of which are alreadyonline, MegaLink is notn, the PhilipPines' lsrgest ATMnetwonk, mnning mor€ than 46 ATMs all over thecountry and boasting of a cardholder base of orrer 1 1million. But even the innovatoi MegaLink is notcontent with being the nation's largest; it intends toremain the nation's best. On its third anniversary lsstMarth, the company announced plans for mor€ andbetter automated banking services.

The future looks bright, and MegaLink is poised tobegin the 21st century with even gneater enthusFasm.

A Shar€d ATM Nehivol*While the Dncblems that come with maintaining

and managing 8n ATM banking network are dauntjngenough, they are furtier exacerbated when such a

lbor8; Tlo&ro C.Bodongan, Pr€lklnti'Mlfalhlc 8.,0trl c8rclCa[ro.r. Grorrdltlanag!., t ogalhlc

tium. The nstur€ of a cooperative arY€ngementdemands that managers look at things differEntly'because it has its own problems as well as opporulnities. The factthatthe diffur€nt ATMS ar€ owned andmaintained by differ€nt b€nks, for examPle, presentsquality contml pmblems. obstacles may anse wnenthe networ* wishes to offer a ne\n/ networt servlce'The managers have to consider the possibility thatsome membenbanks m8y be unable to implementthe service. Thus, network-wide implementation willhave to wait until everyone is r€ady to psrDclpste'

On the other hand, a consortium can shar€resources as wellas expenses, making it possible forsmallen banks to offer services that they wouldotherwise be incapable of implementing ontheirown'

Msnagement by CEOSTo coordinate and managethe consortium's dispa-

rate r€sourtes, MegaLink has come up with innova-Uve management concepts and smudur€s tf,|ataddress the highly technical problems 8nd the highdeqree of corporats involvement and organizatjonalcoordination [and even restructuring) inherent in ashar€d ATM networ'k.

Among the management st|.uctur€s emPloyed bIMegaUn[, 'the first and foremost is the board ofdire-cmrs which we feh should be composed of theCEOs of ttre member-banks," said Camd Carr€on'Megaunk genenal managen

This highlevel structur€ ensur€s that decisionsconcerning the MegaLink network ar€ cemied out at

tne highest strategic level. The onoanizations invofued felt that it neededihe CEos' involvement' Carreon said.1/hf First, because a lot of resources will have to be put in Second,we will be deciding on a lot of businBssstrategies which will invotue how welook at things as a bank and as aconsortium. And third, the technologyinvolved is quite comPlex. Ther€ isnobody in the banks, the organizationsthat make uP the consortium, who hasthe authorify to go into all of these

network has to be imPlemented 8ndmaintained across m8ny banks whichha\€ their own sJst€ms, servlces' aswell as financial and business problemsBnd goals. In such a case, mansgingand upgnading ATM network servlcesis no longer mer€ly a technical orinternal business matter; ft becomes astnategic, highlevel coordination andmanagement Prcblem that can makeor break the automation efforts of theparticipating banks.

Things work differenuy in a consor-

THE ASIAN MANAGER . AUGUST 19S SPECIAL SUPruMENI

except the CEO."The Management by CEOs concept,

accordingtoTeodorn Bor{ongan, pr€sidentof Megalink and Unban Bank, facilitates"quicker and, if necessary more drasticdecision-making."

Such decisions, he said, "would imm+diately have the concunrence of themember-banks considening that you havethe involvement of the CEOs in the boardof Megalink. Essentially, it means thebuck stops here."

"Since you have the CEOs involved inthe board of Megalink," Borlongan con-tinued, "the directions and the policiesthat MegaLinktakes are constantlyformedby the CEOs and [thisJ makes us morecunrent in terms of the responses re.quired."

The participation of CEOs also ensuresthe high qualrty of the board's decisions."They bring a centain kind of decision-making and judgment that's been honedthrough the years. And faced with anyshuation, they almost always respondwith the same level of competence andthe same level of understanding," Carreonpointed out.

lmplementing the board's decisionsthen becomes the problem of Megalink's

lowerlevel committees who can workwith the assurance that they are ad-dressing real, crrtical strategic problemswith the backing of the highest companyauthorities. The concept does away withbureaucratic delays and allows for quickimplementation of strategic decisions."The board cneated several commiL-tees," Carreon said. "These are the busi-ness coordinat ing committee, thetechnology coordinating committee andthe internal audit committee.""ln a collaboration effort," she contin-ued, "you can't escape the committeestructure. Many people saythat if you form committees,you won't accomplish anything.But thene is no other way ofstructuring Megalink thatwould elicitthe cooperation ofall the entities involved b+cause this is a consortium.""So we set up three differ-ent committees," she said."The business coordinatingcommitLee so we will haveonly one voice as far as busi-ness strategies are con-cerned; the techno logycoordinating commitbee so

that whatever strategic actions are re-quired will be backed by the appropriatetechnical solutions: and the internal auditcommitEee so that the standards that wehave set up for ourselves are audited [toensure that they aneJ being followed."

Seruice Level AgreementsMegalink's shared ATM network,

Carreon explained, uses what is called aback-end switch. The company's compu-ter switching system is connected to thebanks' frontend switching computers towhich, in turn, the banks' ATMs are

ilEcltlf,l( t[frBER llt{$ eo||hct Pofson Tot80ioni

AsianBank Ferdinand La Chica 8i9-m11AsiaTfust Bank Allan Tumbaga 922-9018Bank otoommerce 0avid Nye 817-4906Capitrol 06v€topment Eank Ditas Magno 633-4265Development Bank0tthe Phils. Romeo Rodaros 818,9511Equitable Bailking Coruoration Mauresn Abelardo 40.70-11Far East Bank & Trust Company Ma. Celita$ Jacob 40-60-1 1PoCP Sarlk E{twin Uy 810-0231Philippino National Bank Fely det Rosario $0-20-51Pitipina$ Bank Mariano Honrado 819-1331Prudential Bank Hora0ioA.G. Santos 812-1026Premiere DevelopmentBank Ted Onigas 833-3526TradersRoyal&nk JoyAguilar 831-2821UniM CoconutPlanters Bank Lany Perez 818-8461Union gank Luisito R. Rollan 85-00-11Urbrn Bank Dennis D€cena 8ff)8031

TWO OF OUR MOST PRECIOUSBANK DOCUMENTS ...

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ill{]l:illi:l[: t t EXeANSToN 0F opERArroNs AND pRoMprAND PROFITABILITY ' '

DELTvERv 0F QUALrry sERVtcES t t_ TO0URCUSTOMERSt l F

IIITI TRADERS ROVAL BANI(THE BANK THAT CARES

TRB Tw, &u l&d. P.r.y, bro Sd[ . T.t. Nor 631-?A2r b @

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50 SPECIAL SUPPLEMENT THE ASIAN MANAGER o AUGUST 1993

Bobby neededF50,000 to go home.

He got it.

When Bobby was born, he needed F50,000 to leave the hospital

for home. No problem - with his Dad's Far East ATM Card.

A Far East ATM allows you to withdraw Pt000 per transactiory

up to P50,000 a day. That's why when you need a big amount

fast,like in an emergency, nothing beats a Far East ATM'

Nothing works like a Far East ATM.

FarEast Bankand Trust ComPanYSrnorexol.D lN A Gxancrrlc \ifosr-o

Hced Officc Fer East B:nk 8td9, tntruuru, MiliL" PhitiPPine

Tck: 4ll-1G21 to 40 . 40-50-11 to ||l ' $-Il-31 to 50

Menber of fre Philippine Deposil Insurdce Corporalion(Maximum Deposit Insurance For Each DePosibr- nm'000)

But Mantrade just keeps on gettingbetter and better every year.

antrade has been sell ing and servicing

automobiles for ?5 years now. Longer than

anyone in the business. And in automohiles,

as in l i fe, experience counts for a lot.

Our experience tells us thar even rvith 75

years of leaclership in automobile sales, parts

and service tucked under our belts, we can't

afford to rest.

Norv, rve're gearing up for the future.

Today, Mantrade, the oldest automobile

dca ler and service center in the country is also

its most modern. That's because rve employ

only the besr-trained technicians, carry one of

the country's largest inventories of car spare

parts, and have the widest array of state-of-

the- r r t comf ,u tc r iz .J t rouht . .hoot rng

equipment.

AnJ , r l c re s r r l l r rp iJ ly improv ing .

At 75, the Mantrade drive is very much alive.

uuffinau3

V*iN€AUTOMOIIVEIITBORN S NC€ I9Id IN

SALES PIF lSANOSEfoCE

M. . t .d . B( i ld ing Ou. ron C i ty Suc . tEOSA cdner Pa$ng Taho l35WoA Avmu€cm. (n.19$dhTol N6.6t$i6lo 24 EoSA,OuezdCiy S$d€hwayArA3.62tB1en21 Tei. No 97.14.m omrsuet Bdd87-8d11 EasyCal ls9 .11 .11 Td.No.827,7 tZFarNo(632)817.82 .57 PagerNo.257057 EasyCa[s9 .11 .11

PagerNo.22S5

directly connected. With a shared ATMnetwork, interbanktransactions fi rst passfrom the originating bank's ATM throughits frontend switching computer and thengo to the shared network's computerswitching system, called the backcndswitch. The back-end switch then routesthe transactions to the computers of theproper member-banks. The back-endswitch thus functions as the link and acleaning house of sorts for the network'sinterbank transactions.

In Megalink's case, the fi'ontend switchhost computers as well as the ATMs aremaintained by the member-banks, whilethe back€nd switch host comouter ismaintained by Megalink. such a system,howeven depends not only on MegaLink'spnopen management of the back-endswitch. but also on the effonts of themember-banks to keep their ATM sy+tems online at all times. "Even thoughthese resources are not under our con-trol," Carreon said, "as a consortium weare concerned with what happens withthem."

How then does one ensure the propermanagement of a back-end swrtch-basedATM network? "The only way we can dothat isthrough Senvice Level Agreements, "

Carneon explained. "We come to anagreement with a bank when it joins theconsortium that it will finst and foremostkeep certain performance indicators atcertain target levels which we believe arethe service levels necessary to ensurecustomer satisfaction. "

'This is an agreement among thebanks," she continued. "As a matber offact, right now there are sanctions im-posed on banks that do not achieve thet€rgets we have set for ourselves. Andountargets continue to impnove year afteryear as we move forward to achieveworld-class standards, standards thathave

been set by worldwide networks thathave been around for 1O or 20 years."

Megalink's Service Level Agneementsset performance tangets for importantindicators such as availability of the net-work's ATMs, approval rate of transac-tions, system response time, reportorialrequirements, cardholder-tcATM ratio,and customer service turnaround.

Challenges of the FutureIn line wrth its continuing efforts to

improve its ATM network and increasecustomer satisfaction, Megalink is add-ing new services. One of these, Paylink,was actual ly soft launched duringMegaLink s third anniversary celebration.

"Paylink is of two parts," explained

52 SPECIAL SUPPLEMENT THEASIAN MAMGER . AUGUST 1993

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*ifff,,,,,,,iri,:

v"ryi ,{, flll.J' .' ti : ii.l *r". ii r:llr

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: t : : : , t ' f , . i l ' . t . . : ' . ' : i

: : : . . : : . : i : : : : : : . r : : : : i ' : ' :

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l . r N ! . n l r ! f i r l ' ! r o n i l i .( o ( r ) B A \ K t s s C H E C K I \ ( ; , \ ( C O L N T .

f L l ! r n . o ! F o n r n d n r i i l t )

I a P B a r { o b r i l l l l t h F k F r t . a P B B u i L l r n r

!ldllr i Alenuc. Nlnla!

o r . i l l T c l \ o 8 l l 5 4 9 : . 8 1 8 E l 6 1 l ) c 2 1 f i ) / 2 1 0 1ffiGocobanl(

Canreon. "One is what we call debit billspayments. Debitbills payments are madewhen you use the ATM to pay your bills bydebiting your account and crediting aninstitution account."

During the anniversany nites, she notedthat Megalink signed up nine institutionsto participate in the Paylink system."The second part," Carreon continued,"is EFT,zPOS on the Electronic FundsTnansfer,/Point of Sale. For this service,

Megalink will install terminals at thecounters of supermarkets and depart-ment stores where you shop for servicesand goods. You simply insert your card attheterminal unit, and whatyou boughtwillbe debited fnom your account and cred-ited to the merchant's account."

One key atFaction of Megalink is that,as a consortium, it continues to open upopportunities for its smaller member-banks. Borlongan pointed out that by

acting in concert, the memberianks canimplement new services that would be toocostly and complex for all but the biggestbanks.

Phone banking, for example, is nowavailable in many First World nations, butpresents problems for smallThird Worldbanks. "Few banks offer phone bankingservices," Borlongan said. "Since this isnot a real moneymaking venture - |consider it an 'extra' to offer to clientswho want it - there would be bettereconomies of scale if it were adopted bya group of banks rather than by individualbanks. Along that line, I think MegaLinkwould be a veny appropniate institution toinstallphone banking services on behalf ofits member-banks."

"Another service we ane considering isfrontline connections," Bonlongan said."Basically the computer that we have atMegalink is a switch. This means thateach member-bank has to have iLs owncomputenwhere its ATMs are connected.That's fine for bigger banks butfor smallerbanks or for banks that are just beginningto automate, getting their own computerto run their ATMs is rather expensive."

Frontline connections can reduce thecost for small banks, he explained. "Ourpresent computer has sufficient capaciEyto allow ATMs of small banks or banksthat are experimenting with automationto buy their own ATMs and directly con-nect it to the Megalink box," he said.

Borlongan added thatthere are plansto install offsite ATMs to senvice multiplemember-banks at a single site. He notedthat this will be much more economicaland efficient than having several ATMs,one for each member-bank, at the samelocation.

Entering the Pacific CenturyATMs revolutionized Philippine bank-

ing in the 198Os. Now ATMs ane aservice that banks must offer just toretain their clients. The future, howevenbelongs to the innovators. The 199Os,and indeed the 21st century will call formore imaginative, even radical ideas formanaging the evergrowing and competi-tive Asian banking indusFy. The rise of theAsian ecbnomic powerhouse will be led bythose corporations and individuals withthe capacity to generate, implement andnurture such new ideas. MegaLink iscertainly qualified to be at the fonefront ofthe coming Pacific Century

[Emmanuel R. Amador regularly con-Fibu@s articles to various Manilahasedpublications. He wriAs for the PC Digest,a Philippine compu@r magazine.J

n:jiilr'.:.r:.: : : i:lr:r:ri::::::::rr

;liiU:i''';.!:i.

liiir" ;r \' ::i!:i:.

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' ilr'.""84

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;iiiri.riiir

As $une As Tne Courruc Qr D*x,Tne N*rrqu WrLr Rt$E To TnE QccestoN.

On our 77th year, Philippine NationalBank reaffirms our faith in the Filipinoand explesses confidence in our newleadership.

As our commitment, we will continue toprovide products and seruices that meetthe needs of the people and contribute tothe country's development.

Such as upgrading overseas remittanceseryices. Otfe ring libe nl credit p rograms

Philippine Nauonal BankAr.rc Brulcxo Nc Baym

PNB has assets ot P103 billion,246 domestic branches nationwide, TS ororseas bnnches andand over 760 corrcspondent banks worldwide.

Member: Megalink

Member of the Philippins Deposit Insurance corporation. Deposlt lnsured up topl oo,ooo.oo

for entrepreneurs and small br.rsir,€ss-men. And making our seruices availableto as many Filipinos everywhere byopening more offices here and abroad.

Tlese arc our modest coniibutions tohelp tum our common vision into reality:that by the r,ert century, the Philippineswillbe oneof tlrceconomictigers of Asia.

No doubt, attheend of the day,wewillbeway above wherc we stafted.

u SPECIAL SUPPLEMENT THE ASIAN MANAGER o AUGUST 1993

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The ideal basis forboth "what if" andcustom applications,DAfS Plus intuitivewindows oPerationminimises learningtime and prcduces lesults fast. So much so

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tatei time, the t{P Laser]et 'tMprinter offers a new tyPe of tech-iroloey lnown as RISC (rcducedinsti-ction set computind thatsneeds up printing. The Printer'srir"c"r*i is " ruse .nin, a t gt lYSpecializcd mis,oprccessor de"ign"d "p€cifi-ily io i"letPt t tI."oint files from vour Mac. Ifs the

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F/Jata - P@pb on the NbtE.Ambassador Yuchengco was thePhilippine qovermr€nf s lepre-sentitilve to [he neople's Repiblicof China from 19E&88 and notlgS68g.TheeditonaPologizefortlle oveEight.TlE illustrations onpp. +5 aid 1,1-15 in the May/irineiszue should beathibuted to'lormietazo.Theillusbationthat

appears on p. 20 is bY Ruben deJesu6.

THE A$/qN MA|{iAGER ' AUGUST 1993 55

BPETT

,clER, BRIGHTERE F(IR BUSITI|ESSIEET ITS CUSTOM

I

TOM ERS.

#!!;a:"'"".*;ii;;

.efr

Your official PIDT 1993-1994Metro Manila directories feature these innovations:

r New look, better formatI Clearer, sharper-looking adsI Separate sections for government, business

and residential subscribers

r Complete Zip Code of the Philippinesr Expanded Fax Directory Section.

r|Ifr-l' orREeToRrEs PHtLtpprnEs eoRpoRATton

I 7\ | r,pfiBr.rE q!! ycilowcaees.1-AAl '--Ffi

Head Officq: 2322 Pasong Tomo Ext., Makati, Metro ManilaTer. Nos. 819.3826. 8t8-0242 Far No. (63) (2) 810-4343

Cebu Oltlcs: cattardo Btdg., c€n. Maxilom Avonu6, Cobu CityTel. No.7-31-41 Far No.032-224943

f,iv#r,

b* -l

br ton yod! worl(l|g forfirms such as AsiaChemical Corporation,ald Asia Metal, Taiwan

PEOPT E oo/'e?/ln/e

tect of Taiwan's economicminde," who he imPessedwith his ideas on the emergingThiwanese financial market Liencouraged Lin to put forwardhis ideas to Taiwar's EconomicPlarudns Council. Alnostovernigfit, Lin found himsef inthe companv of some ofTaiwan'i moot brilliant econellllsts.

Lin's mind was however seton something other than aflourishing car€er in govern-ment. Hislig break came alongwhen the Chinese ManagemertAssociation invid Lin to

r€sident Clns f,itt decided to behis own boss. The one-tineuniverEity lecturer establishedhis own publishing comPany ur1983. Now a decade old,Exc€lence Publishing Publishesseveral of Taiwan's leadingmonthly nugazine, amongtt:cfr., Excellenq BusindsMottrllu Excellence is t Lin'son$ cohpany. His othercompanies pmvide management and brckerage services.

Because he is puPerous,

articulate and refined, manYassume thatlin comes fmm awealthy, affluent background.But the faclE are entiFly theopposite. The child of workingc[a;s migants, Lin was bom inChina and for the ftst few Yearsof his life he sleP on a factoryfloor. Lh sedits his father, alaborer, for instilling in him thework ethic that has made himso successfirl,

Unlike his hther who hadlittle formal education, Linattmded universitY ardevmtually went on to doeraduate work in fiaance andiccounting. Af ter workingbriefly with Asia Chemical, Linleft 60r the United States tostudv further. He again ioinedthe iompany upon-his return toTaiwan and worked his waY uPftom iunior staffer to execltivevice president.

Sometirne in between, Lhmet former financ€ ministe!K.T. ti, often called the "archi-

produce a managementI magazine.-once biften bY

the publishing bu& Linsteered his companytowards other ventuesand publications. Atpr€sent, Lin hoPes toexpand his slew ofpublications by aqutringseverar more quautymasazines. His drearr hesmjies, is to be the HenryLuce of Taiwan.

H4l Mdryu.ln bhOmi senior manager of

Malavsian car producer EdaranOtoniobil Nasional Berhad s(EON) HRD deParfftent, hastruo decades ofsolidin people managemmt. Prior topiirinf roN, na;l tvtatry"ainworked in the HRD deDart-ments of the National frroduc-tivitv C€nter, Nesd6 andKeiangan Usaha BersatuBerhad.

An economirs graduate oftheUnivesity of Malaya Mahyrdinwas largelv rcsponsdble iorNeuitvialavilanization andqr"lty C*,u"t CitU. P-g.-t"Not fl[Drisinslv, he is a stongl"ti*s'i" todt't lmt Malaysianangineels ard woders, lte says,arc-among the bet in the world- indushious and quid( studies'

tlaving had qoss-industrYexoerimce in various HRDdeiartnents, Mahyudin findsliftle difference in the basicwork of peoDle developmentana mariagdnent. "Tliough thecorDorate cldtut€ of each

Chft un

company nuy vary, basicallYernployees - whether they arein the inanufactuing ind"strYor service industsy - have thesame concems, and are in thesame predicameril."

Mihludin is an advocae ofmore infursile taining for nnkard file enrployee. PeoPle,Mahludin sa1s, "are a comPa-ny's m6t importantasseL It is manage-men(s responsrbilityb develop theittalmts duoughh"aining so as t)inqease poductivityand efficiency levels."

Headmibhowev€r, "that

marnging people isno easy task Tlseare time, whstworkqs'needs dashwith the conPanYs;tr evm wolse, arediarnehically

H4l Mahyudln tlnOmat

develosne(t As dir€cbr ofINEM;Davies sees to it t|at€drviorunental cpncems arcbusirEd bPPdority. Healsoworls towards recorrcilingbushess awJ industY inEestswith the qoEction of Moth€rEarth IIrinM" Davies says, dnwson the experience of its rnsnber6rrns, spreading the word on

how to imDlsnst€nviorun€ntalpolicies that areivmpatible to marketzucccs. Theoryani-zation prcnaEs aholistic-appoach tomvfuonmqtalpobl€ms throughinEgnting elwiloFmatal mamgsnatintl ca,rporab crllhu€.

A convenor atthe 1992 lnterna-tional IndustryConfetnce forSustainable Devel-

oppcite to what managernentftels is right"

Askilled n€gptiab4Mahyudin assisd dte €omPanyin neqotiating its 8lst colectivebareJnins aplesn€nt Sincetld, he h; intoducd QualityContsol Cirdes into EON aprcgram that has been met $"ith

fuea-t mthusiasm bY eON'sstaff.

A soorts qthusiast,Uafryrian is cu.rentty pornotingsmriine activities among EONrirort<eri.'sports teeps *ort<ersbottr mentaily alat aid physicallyfit ltuough sPofis, a €omPanyclrx elrcounlge Eamwo 9cooperation ard loyaltY -

ess€nfrals b r€maining comPeti-tive in today's business erlion-ment " says Mahyudin.

At tho lu€front oftfioenvionnmta.l Pptectionmovement these days is noYDa?rles, executive diEctor of theInternational Network forEnvironmental Managemmt(NEM), a worldwide federa-tion of non-profit businesorsanizations devod to theisiues of mvircnmentalmanagement and sustainable

opmmt, Davies and INEM aresponsoring a retatea fntema-tional EccManageme-ntConlerence in lapan later thisSeptemb€r €ntitGd,'lizokudo:the Way of Sustainability."

The Harv-ard<ducatedDavies is also an active nernberof a nunber of mvironmentalmanasement organizations,such i lrstitut foo{onril. Heis cuflendy a lectwer at theUniversity of Csreva and aneditorial lioard mernber of GrenMira?efrcnt Inteanatiafl^I.

Says Davies, 'Much workr€mains to be done to convincesov€rnments and busine6s that&rvironmental Potection is nota burden,but anec€ssaryinvestment,not only toallow us andour childmto live amateriallydecent andhealthy life,but also tobe at peacewith ourconscimce," T]oy D d€3

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Ervironmental Standards :

raderr orer

By G|on T?eulcockVice President, Paciuc Steel Company, s.A,

he envionment and forcign hade arcstrongly linked by the effects the p!o-duction of goods and their hade haveon the use of natural resource. For

years this relationship was not taken seriously.However, more information and the globalecoloeical crisis have raised thes€ issues to ahieh levet of discussion. The rcsultant conflicthas led many times to the creation ofnon-tariffbariers to forcign hade on grourds ecologi-cal in nafurc..

Economic development and Dreservationof the mvircrunent^are, in reaiity, complemmtarv obiectives. Without economic devel-opmml it is difficult for nations to rcversedamage to tie mvironment and invest inmorc tecoefficienfl' technologie.

One of the key factors to economic devel-opmmt is foreign hade. If economies do nottrade, they cannot exploit thet comParativeadvantage, increase productivity or dwelop.And to pr€serve a healthy ecological envi-ronmmt, r€sot[Ees must be allocated to sucheconomies which will not be available with-out an mhanced level of development.

The propooal I am making mears thateconomic growth is, among other things, aninstrument drat Drovide for more harmonichuman habitation with the envimnment It isa controvenial theory although I believe it isinoeasingly less so. The altemative would beto relinquish the material goods enFyed bydeveloped societies, goods for whidu in facl,the populations of poor countries aspirc. Anditwould be to chooseimpoverishment forthesake of rcdis€overing na-tue.

Such an altemative does not contsibute to

THE ASIAN MAAIAGER AUGUST 199S

"Too many rcsfrlcdom totade can lnveUE mdesircd

efbcts d dl exoessh,ercgdd(ns.'

lont-tern envtorunmtal obFctives, especially in poor cormtries. It is a utopian prc-poeal with negative effects on the ecologicalissue, because if the rernedv is so extr,eme thatitbecomes impossible to reillze by pacific andconsensual means, the issue is sinply left

aside or po6tDoned.forninatily, there have been several

instances which demonsbate that new tech-nologies evolving ftom the developmmt ofiuddical vehides for the conbol of emissionsand definition of rights, aUow economic chal-lmge to be faced with common sense and arcalistic sDirit.

and pst as fortr.rnately, the ideals of bothdevelopers and ecologists with lespect tosustainable development arc similar becausethev arc based primarilv on mediurn andlong-term obiectives. Sustainable develoFment basicallv states that it is both Dossibleand desirable to achieve socialcotimic de-velopment by maraging natural r€sourcesprudmdy Another way of undeFtanding itfrorn the businessman's point of view is thatsustainable developmenl is attahed by usingnatural resouces in a rnanner that they cansahsfu the needs of the Dresent without de-creasing the chance of futr:re generationssatisfying their own needs. And a prcjectproperly bard on sustainable developmentiririapies must Ue implemented at a o&t thatrcflecls the tme comparative advantage of itslocation.

AJrd the only way to implement the con-cept of sGtainable development is throughfrce hade, since on.ly open and competitivemarkets provide a stable framework for thisnew coniept. It is convenient for the price ofgoods to ireflect the ecologicat cosiof theirpoduction. And herein is the task of govem-mmts.

Each govemmmtmustbe concerned withefuins the internalization of environmentalcoss arid apptying economic instruments toencourate those responsible for environ-mental dqJradation to assume the principal

61

rcle in rcstoring the integrity of the environ-ment.

It is verv important that environmentalregulation 5e boin frcm a consensus arnongthe parties involved and not be influencedmerily by the decisions of the groups whichwield the most power. The differences in thecosts of conservinq r€sour€es should be auto-matically reflected in the comparative advan-tage of each courtry.

Theenvironmenta-l issues that are of worldconcern, such as the deteriontion in the ozonelayer, global warming and loss of biok6icaldiversity, r€quirc the cooperation of all coun-tries and must be governed by global envton-ment accords, alwavs with the intent not tothrcaten the basis of forgign trade.

Neverthelest not all envionrnental pob-lems have such a clear propensity forglobalization, and it js therefore very impor-tant that work be done in rcgard to the idm-tification of the points of contact klveen theenvironment and hade and the proper classi-fication of the problems O|at cro6s the bordersof differcnt coimtries.

On the other han4 it is also important totake into account that what is done in indus-trialized nations in relation to hade Benerallyindirecdy affecs the degree of damage to the

By Thomas D, BcllVlce Chairman, COO/ WorldwideBursorrMarsteller

Envionm€ntalism was dearlv one ofthe fastest growing "isms" of the i9S0s. Itgrew in monbership, with tens of millionnow describing themselves as mviron-mmtalists. It gr€w in political pow€r, withan inqeasing number ofelections and public policydecisions being heavily in-flumced by mvironnantalissu€s, theats and atsocitiesglowing in colurm ind€sand network minutesthrcughout the decade ofthe '80s. This phmomenalgro*'th rervrote the mvi-ronmental rule book formost maior corporationsthroughout the world.

What will the 1990sbring in t€rms of mvimn-mental laws, expectations

and corDorate risk? The short answer is thattlrc earli '9Os wiU look a lot [ke the '80s interms of mvirDnmental activism direcd atcorporate organizations throughout theworld. Every part ofdle manulacturing proc-ess, for instance, whetlrcr i(s research, de-velopment, design, manufacturing,distributionordisposal"willrec€iveinqeasedscrutinla In addition, acceptable corporate €rF

vironmental performancestandards wili continue rcratdlet upward.

If vou ac€€Dt the fact thatenvir6nmetrtalism is herc tostay, $owing in power andtherefore importance to yourbusiness, your no<t questionwould naturallybe how do wedeal with it?

First and mo3t importaniget out in front ofthece iseue*Decide what kind of mviron-mental company you want tobe. We suggest setting highstandards for your company

and your people and makingzuretlresestandardsarcitdlwFdelsbodbothintsmllyando<-bflal}f Be sule kr let yotn keyconstitumts outside your organization how what try canelgect ftom you. let every enrplovee kpw that glirorune(r-ial fuokdon ad pr€servadonis palt of his or h6 Fb.

Build these high stardadsard thb awarmess inb everyFrt cf youl business p4ocess,Ihis will not onlv enharEe vourimage, but it witl atso inipactpcitively the morale ard pro-ductn/ity af your people. ntat

"EUnryou Inwil envlrcilnentdcomnlhont or

Fu don't"

mmt and mcourages good fu-tule behavior,

Makeyourmvimnmentalcommitment global, Eitheryou have an envhlnmentalcommihnent oryou donjt Inthe '80s, many maFr businessor8anizations thoughout theworld waited for the environ-mental movement to fadeaway They thought it was afad. Now, of course, we see it isno! ifs a h€nd, ajd igs here tostay. Someday envircnmental-isrn will be such ar integralp€rt of everything we do, the"ism" will fade away and high

envtonment of dweloping rutions. Exce-sive protectionism by the former, togetherwith such problems as the balance of pay-ments of the latler, have contribud to theindiscriminate use of resources which ar,e notindefinitelv swtainable. ReDorts from theWorld Bank indicate that theiereeulation oftrade has footercd technology transfur iromindustrialized counhies; and, that reductionof protectionist policies in industrializedcountries is qitical to incease poductivity indeveloping countsies.

The use of ecological argummts is oftmworrisome because, in rcaliry drcy typicailyperpetuate potectionist inter€sts. The capac-ity of certain busin€ss and union s€ctors toinlibit competition by mcouraging rcgula-tion - allegedly to PIo6 the envircnmmt- is of concem whm, in tmth, &ese rcgula-tions serve solelv to Drotect the market. Thisis where task arise that perhaps conespondtotheGene!:alAgr€ementonTiuifft andTi.ade(GATD.

CAITmustadherctoits original objecliveof promoting free trade and safeguarding theexistenc€ of fair market conditions. But be-causediffercntenvironmentalstandardsmaylead to trade rcstrictions, GAIT also has astale in environmental conservation.

uDedde wlntklnd of

onvlrcrunentdoompily youwart b be."

ultimaely will save you tLne and monsy indealing with an ev€rchanging arrahrrlre ofgonsrun€nt+npcedqlircnmmtallawsarrlEgulatiotls

Constanuy pushfor improvement Justreae of vour busines&ae you do in other areae of your

Celebmte when Drorr,ess is rnade;Celebmte when progess is made; it lets peo-plelnowyouareseriousaboutyourcommit-

environmental consciousness will be thenonn. So, for the foreE€eable futue, theffrartbusiness organization will lespect it and rc-spond to it with vigor.

(This article and the suceeding anicle WKnthryn Fullo uxre reprirtad /zoz Communi-eec.tonrdorld publisM W thc Intomtinul As-sciation 6 Business Communicator).

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THE ASIAN MAAIAGER AUGUST 199S

I

THE A$qN MAMGER AUGUST 1 993

Total harmonization of standards is .im-possible, but countries with sirnilar envr-ionmental problems can come close toharrnonization.

Mor€over, standards cannot be imple-mmted aq,oes the board in all countries, sincethe appraisal of standards varies according tothe degee of development, and total andimmediate standardization would be ex-kemelycosdyfordevelopingcountries.Thereappears bo be a consensus that a period ofadiptahon should be iranted to countriesreflecting their level of develoPment; but, theterm, assistance and motivation they may!€ceive to effect apprcved stardards mustalso be etablished. It do€6 not seem fair thatthe cost of mvironmental imprcvement ororotection valued by morc developed socie-hes fall principany bn the population of theleast develooed which Dlace less value onecological Gues becauie they have basicneeds for employrnent, nutrition. housingand education that arc unsatisfied.

It is also imDortant to bear in mind that toomany reshicti6ru to trade can have the rnde-sired effect of all excessive regu.lation; such as,for example, the qeation of a black marketand an iniorma.l economy, example of whichabound in Latin America. An informal

"We must ddlcateilr best efforts tcvadscrcatlve and practical

solndons that cnaue usto dermlbh banies to fiee

trade and adtktvesustainaHe development. "

economv is particularlv danqerous environ--etrtully, si.rice it is viduaXt imPossible toconhol.

Developing economies need time to inte!-nalize the inaeasing mvironmental regula-tion in the industrializ€d world. lf this tirne isnot given ard an attempt is rEde bo imPoseree;lation tfuough punitive or non-iariff-bar-ri;, it is tikely th;t ;{ological damage will begeater than tlEt which the develoPed econo-mies seek to avoid.

GAII, though the Group on Envlon-ments and lnternational Trade, could, withinthe context of sustainable develoPment, arbi-hate and define the Drcblems rclated to themvironment on the-basis of the followingDrinciDles: enviDnmental rcsulation withbt*frd i-*.t on hade mGt not be am-biguous and-should be tlansparcnt; mviton-mental measur€s that imDos€ t€strictions ontrademustbebased on scientilic evidence; themeazures taken mwt not exceed the desiredrcsul! and 6nally, trade rcstrictions must bethe last tool to be used to achieve an ecologicalideal.

This Grcup, qeated in l9l by the Com-mittee on Trade and Developmmt, has notbem particularlv active. A proposal shouldbe mide for it - or another qeated for thisDurDose - to Darticipate activelY urder thelusirices of G,qTT ani not ody t6 help in theestablishment of stardards but to also develop the cipacity to evaluate scientific evi-den;e that iupp6rts the implementation ofsoecfic obstades to international hade. Thisn-ew g,oup, by definition, must be formed bynig

-y qua[hed individuals indePendmt

from pressure and other intetest grouPs in-volved.

And this group should also contribute to

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I doubt there are mary challenges morecomplex or pewasive than that of recon-ciling human econornic activity with thenatural environment. As a first steD,though, we need to acknowledge that ttietwo poles car and indeed must be r€con-ciled for the good of both. Sustaining eco-nomic well being over futule generationsrequires the same care ajd stewardship asmaintaining our biological well being.

Ib many, the idea of Fexamining ouruse of natural rEsormes Do6€$ a aisis because it calls hto quetion basic assumptions about the relationshiD betweenhumans and their world. Overtumine theacceptd way of doing things can le adaunting, even paralyzing prcspecl. But nogroup is better equipped to accomplish thatthan theintemationalbusinesscommrmitywhich has the resoures to exDlore anddevelop the paths leading to a morc sus-tainable futue.

There arc a mrmber of sFcific actionsbusines leaders can take to ensue the wiseuse of our planefs resources, induding:

. EnlromEntd l|!k n 4b|mr .In-dwtry has a duty to ensurethat itspoductsare safelv manufactured, handled, tsals-ported, rised and disposed of without un-acceptable risks for the environment.

t "Truoaat" accou n€|. Therc is agrowingsense thattoday'smethodsof economic analvsis arc incomDlete. What alenow called J'extemal cosG' - the c*oimpoeed by envimnmental damage, forexample -need to be internalized. Natue,of course, does not have a price, but we candevelopfiscalincentivetoencouragemorcefficientuseof scarcercsourcesand increaselong-term economic performance aroundthe globe.

. "tl{b cyde" a3c63m6ni. Manufac-turcrs should account for the envionrnen-tal impacts of then praducts over the entire

the development of vehides defining property rights and permitting the identification ofthose who incur liability for ecological dam-aee.

ln many cases, it may be that the welfare ofa cornmurJ ty incrcases even when some envi-ronmental damage is produced. It is p€rti-nent in decision-making to evaluate the prosand cons of a specific action affecting theenvironment and trade and to make a finaliudgement which reflects the end welfarc ofthe communiry Trade restrictions gener-ally decrease or eliminate the capacity forgrowth of developing countries; therefore,

THE ASIAN MAMGER AUGUST 1 9SO

lifu cvdes ofthose Droducts- ftom extractionof reburces and riranufactute to use and dis-Do6al.-

. Em,lloflnentd adlthg: Tobeaccourt-able to the public and to the govemment,indwhiesshou.ldhaveaccrrateandavail,ableinformation on the mvironmental perform-ance of their constsuction contractois, prod-ucts, distribution systems, wholly owned andpardy owled bwinesses and overseas agerroes.

. Sourrr roductlon. Ideally, productsmanufactured bv industrv should either re-quire no disposil at all oi be completely re-cyclable. Barring that, industry should findwa'r io reduce both the quantity and toxicityof mvironmentallv hazardous DroduL-ts andwaste gmerated by manulactuiing.

. Dbclo.|'|ro of hfo|madon. SuccessftrlcomDanies in the 21st centurv will be thoseb€st-able to secure public confidence. Thatmeans in part a proglessive policy on thepublic release and scrutinv of mvironmentalinformation. All too often, "cpmmercial crcn-fidmtialif is used as a blanket excuse toaftiFarily limit release of inJormation whichbelongsin the public domain. Open accss toinformation should be the rule with rcstric-tions iustified - not vic€ versa.

. TtaHn& Companies must train theiremDlove€s to become the environmental au-dit6n

- risk managers and source reducen

who convert policy inbo ongoing daily action.It is im'portant to keep in mind that many

of these actions are necessarily long-term ef-forls whidr involve issue that are currendyunresolved. Butpednpsmorcimportantthanany single one of these actions is a change inthe very philosophy of business. Tiadition-ally, industrialists, in their pu$uit of humancapital, have regarded the consumption ofnatural capital as a one.time, one way propo-sition. Ourners and managgs must rcmem-ber that they, too, arc citizens of the world, asdependent on rcnewable natural r€soures asthe rcst of us.

So far I have concrntsated almost exdu-

restrictions on trade must be properly andcarefully evaluated.

It is important that concemed sectorsdedicate their best efforts toward conceptual-izing creative and practical solutions that en-able us to demolish barrierc to ftee tsade andachieve sustainable develoDment from anecological point of view. We ale oftm inagreement, in matters of free hade, with thesegoals, but it is difficult for us to advancetoward them in rcal terms. This is due to thefact that short-term considerations end upwith priority over medium and long-termconsiderations.

sively on what the busines sector can do.But it is equally dear that errvtonmentgroupo have an imporiant rcle !o play inbuildingbridges of undentandingwiththecorDoratewodd-arDlethanerl:ironmentalactivists have not been comfortable playing.h the past, more oftsr than not, they halcdwotedtheireneryiestoimpeding@rpot-abProFrls. While still notabandoning theirvitalrole as errvironmental a&ocab, groups likethe\ /orld Wldlifr Fund are exploring waysto work with corcoratioru to make sule t|atb,usiness ventures resporxl to €nviorun€ntalCDNCEIIL

Inpart, we rcalizethat halting €conomicFowth is not only impractical, but also is adisservice to the millions of poor peoplewho deperately need stsonger financialmderpi fngs intheir dailylives. Butmoreimportandy, enviDnmental manatementof the planet will require a variety of solu-tioru that are far beyond the capacity ofeither gov€rrunmb or mvircnmental or-ganizations to devise.

Thisshift infocusbringsnewdilemmas.How do we go about €rlgaging a corporatecommunitywhichhascometoregardenvi-rcrunentalists as naive at best and anti-caEitalist at wolst?-

One of the most important ways is togive them the practical tools that allowthem to b€come enviorunental nvuurgers.World Wildlife Fund is currendy developing model guideline to heh corporationsintegrate cons€rvation of biological diver-sity into their land management decisions.

Environmental purists, alarmed bythese kinds of alliances, durge groups likethe World Wildlife Fund with being inappmpriately caopdby corporateintercsts.ButI would argue thatweare all necessarilycGopted in a much greater struggle: thestruggletopeserveandrcnewourpr€ciousnahral rcsource base. The busines andconservation movements each have auique, irtplaceable and inoeasingly m-ter€onnecd role in that struggle.

The two central ideas that I have in-tended to propose to you - frce hade as acollaborating factor in the achievement ofecq efficient develoDment and the need forGAIT to examine non-tariff barriers con-cealed under the guise oI environmentalDrotection - are invitations to conceive ofbusiness with a long-term view. I am con-vinced that this is the onlv wav that businessactivities will tale on their true dimensionand dignity.

We ale in a time of chanqe. As a business-man,I be[eve in the futureiff the Be.ltr wallcor.:Id fall, whv not barriers to frce trade? I

67

As Global Aviation Industry Flounders

AsianAirlinesFlyHi

Asia provided the only bright spot for theintemational airlines industry last year. Membersof the Orient Airlines Association (OM) posted acombined US$2.2billion operating profit in the199l-1992 fiscal year. This marked a245% growthfrom the previous year's profit.

ore important, itwas the only goodnews from theintemational

aviation community whichcontinued to reel from the world-wide rece$sion.

"ln the light of the proiectedS4-billion loss for IAIAs (lntema-tional Air lYansport Association )scheduled international servicesand the sl.7-billion loss by ATA(Air Transport Association) for1991, the OAAS achievements canbe considered remarkable,"Ibrahim M. Taib, OAA secretary-general, said.

"lt is not surprising," he added,"that nine out of the l4 OAAmembeB (Taiwan's EVA Air theassociation's latest and l Sthmembet was not yet included inthe l99l - 1992 figures) belong tothe world's 25 most profitableairlines. "

The operating profit ofthesenine OAA members totaled overSl00 million. They were led by

lHE ASIAN MAMGER r AUGUSI 1 993 SPECTAL SUPPT EMENI @

Singapore Airlines and CathayPacific Airlines, the two mostprofitable in the region, witheamings of S4El.5 million andS453.5 million, respectively.

For fiscal year l99l - 1992, OAA '

members' operating revenue alsowent up to S34.5 bill ion, anincrease of 8.8%. Operatingexpenses, meanwhile, rose 7.8%to s32.3 bill ion.

Like the rest ofthe global.aviation community, Asia is alsohurting from excess capacity. TheOAAs load factor fell from 70.5%to66.l%between 1989 and l99l.However, despite the drop, Asianairlines still managed to achievehigher yields and increased loadfactors which enabled them tocontinue generating profits whilelAfA and ATA members incufiedmassive losses.

The slow recovery of the worldeconomy will continue to pose achallenge to the airline industrythe OAA said in a statement. "But

despite short-term problems, the

long-term groMh prospects forthe Asia-Pacific region rcmainfavorable," an official said.

A ioint OAA-DiIA forecast hasput annual growth rates atbetween 7% and 8.6% for the next20 years. The Asia-Pacific passen.ger traffic, on the other hand, hasb€en proiected to rise more thanfour-fold to 375 million by the year2010. This represents more than a50% share ofthe global scheduledintemational traffic.

The slowlecovery 0flhe worldec0n0mywillc0nlinue t0pose achallengeto lheahlineinduslry.

Royal Orchid Plus iseverythingyou wouldexpect from

a frequent lverprogramme, andmore. Created by the

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lmagine yourself, for example, tounna the wilds

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the rough spots out ofyourgame u,ith speciall€ssons at

a prestigious golf school.

g/*SPECIAL FREQUENT FLYER PRMLECES.

Even beforeyou attain tull Royal Orchid Plus member-

ship at 12,500 miles, your privileaes begin.

For instance, onc€ we receive vour enrolment

details you'll enioy special attention to any seatinS

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ROYAL

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first time you fly Thai after enrolling.

3. Plus, you'll literally see double on

certain Thai rout€s untilS€pt€mber 30, t993.

You'll eam double miles on Business or Fint

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On the ground, you'll receive reSular statements

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g/*SPECIAL STATUS FOR HICH FLYERS.

V'th full mernb€uhip, you'll receive even more prrvr

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ENROL NO\/, MEMBERSHIP IS FREE.For an enrolment form, complete thecoupon andmailor

fax it to Thai. Or you can pick one up at your nearest Thai

office. Vith yourform, you'llalso get a TemporaryMem.

benhip Card and yourunique mcmbcrship number. Justquote thh number when€ver you book with Thai and

your miles \rill b€ automatically record€d whcn you fly.

Orchid Plusoffersyouanunpr€cedentedcombination

of free travel, privileges and other awards to rempt

the most frequent flyer.

No matrer vhich class of travel you cnoose,

you'll be rewarded when you fly with Thai.

On ; full Economy ticket you'll earn the actual

miles you fly or a minimum of s00 miles. Travel

Busin€ss or Fitst Class and your discerning tast€ will

earn you a bonus of 25% and 50% respectively Even

an excursion or pr:blished discount fare ticket earns

you 70% of actual mileage flown.

qI*SPECIALLY SELECTED EXPERIENCE AT/ARDS,

As an alternative to free travel, you can also make a

selection from our Royal Orchid Plus experience awards.

These exclusivt leisure, challeng€ and cultural

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Please retain your ti€lcts and boarding passes in

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Enrol now. The sooner you do, thc moner you

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Royal Orchid Plus hom Thai. The frequent flycr

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Enrol in Royal Orchid Plus bctore Sept€mb€r 30,1993 and we'll rcward you with doublc your fiFtThai ah travel award

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THAI AIRVAYS INTIRNATIONAL LTD Cdnry Spacc I8lds., S.n citJ. puyn Arcnu., M:k ri,M M T.t. sr5.sa3r ro.O for t*ff:t'oft,c.llT.l 815.3,{21 ro 27 . Airpon Offi.., cEnd Fler, Dtpa'tuc t€vcl, Ninoy Aqu'no t.r.rn.tion.t Airpon, prny, M M. t,l. st eag3I r -6713/33 r -6719 . M.nih Oili.., G@nd Fl@r, Ekoha Twin Tov.6, 233 Ecoth Sr , Binondo, M.nib T;l .7 rx.87las.5o.o3 . csA c.b!T.l 7101.. CSA ClrsoT.l. 331.17rd1

Airport and airspace conges- Ianuary, the European market members are also improving their

tion, meanwhile, is expected to became fully liberalized. service offerings. Chatrachai's Thai

worsen and become the most "l think the OAA carriers must Airways, for instance' launched

serious threat to the groMh of the forge closer cooperation within effective Iuly I the "Royal Orchid

aviation industry in the Asia- their own group, and not be Plus," an awards program for

Pacific swayed by the argument that frequent travellers

According to an IATA report, unlimited open skies are neces- A mileage'based scheme,

airport and airspace congestion sary for the economic and social Royal orchid Plus will allow

is iunently costing the industry development of the region while travellers, aged I 2 years and

some $5 bill ion yearly. This, it any form of restraint is labelled above, to accrue "miles" based on

said, will increase to sl0 bill ion protectionist, negative and flight segments taken as well as

by the year 2000. For airlines, outdated," Chatrachai said. services purchased from Thai

airport and airspace congestion The number of American Airways "partners" linked with the

result in higher investments in travellers in Asia is decreasing as a program. These partners include

aircraft, lower revenues and loss percentage of total travellers and hotels, credit car companies and

of goodwill due to delayed us airlines cannot expect to car rental outfits.

f l i g h t s ' d e v e l o p t h e i r f i f t h f r e e d o m t r a f f i c M e m b e r s o f t h e p r o g r a m w i l lto support their primary be entitled to a range of benefits

Airporl andailspacecongeslion,meanwhi le,is expectedlo worsenandbecome them0slselt0uslhreal tothe gfowthol lheavialionindustry inlhe Asia-Paci l ic.

open skies' Policy expansion, ' chatrachai said. miles regardless of the class of

Another maior challenge facing He continued: "Twenty years travel chosen. Economy class

Ol!\ members is deregulation ago, there was a minimal air travel earns for members the

which is expected to lead to an transportation network in this actual number of miles flown.,,open skies,.policy for the region, region. we accept that US and Members travelling business or

which, in turn, would mean European carriers did provide air first class earn 25"/" and 50"/"

tougher competition services which served the maior extra miles respectively.,,ihe ORA region promises to portion of the traffic needs into Even excursion or published

be the big groMh area for the next this region. But times have discount fares earn 707. of the

l0 years,,, chatrachai Bunya- changed, and in fact, we have actual mileage flown lnallcases,

ananta, OAA chairman and Thai done a tremendous iob in the last members will earn a minimum of

Airways International president, 20 years. we have built up an 500 miles if the travelling distance

said in a recent interview. "lt is extensive air transport network is less than 500 miles

attracting airlines from other and through the leapfrog effects of "Launching Royal orchid Plus

regions to move into the OAA technology, we now have more for both our domestic and inter-

area, and this new entry of non- modern equipment than most of national routes at this time is

OAA carriers exercising fifth our competitors from outside the particularly appropriate as

freedom rights is going to mean area. frequent travellers comprise our

intense competition." most valued market group"'

The region,s airlines, in fact, are Royal orchid Plus' chatrachai said. "offering these

already feeling the effects of In addition to beefing up their benefits is our way of saying

heightened competition. Last air transport network, oAA 'Thank you' to these passengers."

traffic, the OAA chairman and privileges, such as free airDointed out. tickets, hotel stays and car rentals

In like manner, he These are in addition to theadded, European airlines priority waitlisting' specialcannot expect unlim ited baggage tags and the extra lo-kilo"points beyond" in their luggage allowance given to fullplans to develop Asian members. As the program un-hubs. folds, it will also offer unique

"lt is time for the US "experience awards" like elephantand European carriers to trekking in the lush iungles offace the fact that Asian northern Thailand and enrollmentcarriers are well able to in golf schools.serve the needs of the Unlike other awards pro-

Asian market, even with grams, Royal Orchid Plus allowsall its potential for huge frequent travellers to accrue

SPECIAL SUPPIEMENI THE ASIAN MANAGER . AUGUST 1993

Our Prestige Class Is Modelled On Everybody Else's First Class.So What Could Our First Class Be Like?

Come aboard our Prestige Class, andyou'll wonder ifyou've stepped into the wrong cabin. Because

every seat is at a window or an aisle, and aranged with room to spare.

Roorn to let you sink into the 2l-inch wide cushions, adjust the back to tilt a full 38 degrees, and

stretch out in the full three and a halffeet of legroon.

Space others set aside only for their first class passengers. As your hostess gently looks after you,

you may have just one unfulfilled wish - to see what our First Class could be like.

We ve worked hard to take our Prestige Class a class above the rest. Fly with us, and experience a

dedication that could only be Korean.

I(OREANAIRFly the Spirit of Dedication.

For reservations, please cdl (02) 815 891 I .

Twentyyears ag0,lhere wasa minimalailtsaNpo|btionnalworkin thisregi0n.

Dynasty Flysr ClubFor its frequent travellerc,

China Airlines has the DynastyFlyer Club. To become a membeta traveller ;imply has to send acompleted application form to thelocal China Airlines office. Mem-bers enjoy special rates at se-lected hotels, car rentalcompanies and Duty Free shopsworldwide.

Regular members who fly45,000 miles are upgraded to Goldmembership. Gold members cancheck in fast at Dynasw Classcounters. They are also entitled tofree baggage allowances and can

stay at the China Airlines VIPLounge before or after a flight.

A Gold member automaticallybecomes an Emerald member byaccumulating more than 120,000miles. Emerald members areguaranteed seats on most ChinaAirlines flights and are entitled tosubstantial discounts at Avis carrental outlets. They also enjoyunrestricted use of China Airlines'VIP Lounge with two guests.

PAL Belleelin0 Pro0ramAs part of its plans to improve

seNices, Philippine Airlines isundertaking a major refleeting andmodernization program. PALs newmanagement, headed by Carlos G.Dominguez as chairman andpresident, recently leased aBoeing 747-200 from Singapore

Airlines to increase its interna-tional fleet complement to 2lwidebody jets, made up of I IBoeing 747s, eight Airbus A300sand two McDonnell Douglas DC-l0s.

In addition, two Boeing 747-400 and other Airbus models arebeing looked into to eventuallymodernize PALS intemationalfleet. This according toDominguez, should result inoperational efficiency and reduc-tion in costs by eliminatingintermediate stops and simplify-ino mAintanrn.c

On the domestic front, PAL,Dominguez said, aims tohave an all iet fleet in five

I years. Aircraft utilizationwill be maximizedthrough more nightservice operations assoon as airport facilitiesare upgraded.

feasible,

"We have initiateddiscussions with othercaniers on prospectivetrunk-feeder servicecomplementationschemes," Dominguezsaid, "Thig means PALwill be undertaking, whenlinkages with local

passenger and cargo companiesto complement its existing routenetwork. "

He added: "We have offeredother airlines the use of our sevenSunrisers, even on a subsidizedbasis. In short, PAL will be helpingwherever it can in boosting theoperations of carriers the comple-ment our system."

Alliances, or "interconnec-

tions," with foreign airlines arealso being considered. Talk withAll Nippon Airways, Lufthansa,Korean Air and American Airlineshave been opened along this line.Another possible arrangement is apartnership with a foreign airlinewhich could use PALs landingrights abroad. A third option is forPAL to sub-lease cargo space on a

wholesale basis to a foreignairline.

Already, PAL has ioint flightservices with Cathay Pacific andGaruda International as well as atwo-year technical and consul'tancy agreement with Korean Air.

Korea's Sclenllllc 0lympiadKorean Air, meanwhile, is

preparing for another maiorintemational event that will beheld in Korea. This time, insteadof the Olympic Games, Korea willhost Expo'93.

officially sanctioned by theParis-based lnternational Bureauof Expositions, Expo'93 will be aspecialized world exhibitionfocused on science and technol-ogy. It will be held at Taeion, some100 miles south of Seoul, where albedok Science Town is now beingconstructed.

This will be the first exhibitionof its kind to be held by a develop-ing country, and some l0 millionvisitors are anticipated during theExpo's run from August 7 toNovember 7.

It is expected to attract 60participating nations and morethan 20 international organiza-tions. Numerous individualcorporations, including all themaior Korean companies, will putup pavilions.

The latest technologies will befeatured during the exhibits. Forexample, IBM's Korean subsidiaryis preparing a 'virtual RealityTheater" where visitors caninteract with three-dimensionallmages.

But Expo '93 will be more thaniust a showcase for science andtechnology. According to Oh Myung,chairman of the Tbejon intemational@osition organizing committee,"Epo '93 will offer visitors a uniquepeFpective on the relationshipsbetween economic and technologi-cal development, and between thepreservation of the environment andtraditional culture."

74 SPECIAL SUPPI..EMENT IHE ASIAN MANAGER . At GUsr 19s3

: AUGUST 1993 . IIIE ASIAN I,|AMGER 75

Robcrt V, Chandran

Dream merchants...

re mtrepreneurs bom ormade?

Deamsinspleusandinfuse us with passion,

qeativity and above all, the cour-agetobelievethattheword "no" isinthedictionaryof faihlles. Deamsareourdeepest€rgressionof whatwewanttobe. ThemoreDowerfiithe dreamer, the better i:nteue-neur they will become.

How do vor.r develop the en-t€prcneuriai sptuit? The l€ft sideof our brain is the analvtical; theright side is theseat ofodrarearns,creativity and imovation. Thisdtildlike nahle is totally over-pow€redaswe€nteraheworldsofeducation and business. But therearemanywaystoawakentherightside of our brain They are thestarting points of a vision that be-com€s the cenFal Dart of a busi-ness plan for a new mterprise.

What arc dreams made oflWell, entr€pr€neurs arc drcamrneFchantsandtheirenthusiasmiscontagious. As ma*eters of theirdreams they leam what inspir€speople. And it G not making bil-lions of dollars, Monev is the bv-product of successful drcamsconverted to realit]4

No successful venfure waspurelystatedformakingmoney.It is very hard to motivate em-ployees, with the idea of makinga million dollars for the com-pany There needs to be a highervision. Avis, a company ownedby its employees, wanted to pro-vide a better seryice in the rcntalcar company This was embod-ied in their slogan "We tryharder." Federal Express, a suc-cess in the ovemigit deliverybusiness, had a vision exDressdh their slogar! 'lrVhen it abso-lutely, positively has to be thercovemight." Since these corpora-tions werc built arcund drearsthey have some unique quali-ties. They are very long-term ori-

"The right side ofoul brains is theseat of oul dreams,creatiYiw andinnovation."

Are EntrepreneursBorn or Made?

ented, their employee feel theyshare in a purpce and above allthey became dominant in nichemarkeb.

Successful entrepreneursdream bigger dreams than otlrcrpeople. A dream, when con-ceived, looks totally impcsible tot€adl But the time it takes to stafta small business and a businessthathas a bllion dollar Dotential isthe same.

Asurvryconducted inourclassat Flarvard among a grroup of en-ftpr€neus asked: What is yourrcgetz' The malrrity answered,'"Ihey did not &eam bigger."

Why don't we dr€am bigg€r?Mosdy fear of hilure. Our d€sireto succ€ed is so 8t€at we will takea small guaranteed suc€ess ratherthan a 10% dunce at a big p-j.-t

There is a difference between adreamer for pleazure and an ac-tion-oriented-dreamer. This is thediffelence between a poet and armteprenzur. Thesfunpteconcepof getting up every day andconriously doing one thing toimprcve your chances to achieveyourgoaland every night beforcgoing to H, review for fifteenminutes how far you havemoied toward your goal. Thispractice, if developed in highschool davs, becomes habit

"Oul desirc tosuoceed b so gtreatrve wlll take a stmllguararteed suosessrather than a tenpercettt dnnce at aHg pqiect."

forming. If started after college aperson will have undertaken atieast 3,000 tasks to aclieve to-ward his goal by the time hetums 30 and he or she wouldhave spent 750 hours in review.

Henry Ford was born on afarm and became a rnachinist at16. As a young man, Ford wasintercsd in automobiles, whichwere then a new invention. Hebuilt his firct gasoline enginewhen he was thirty and his firstautomobile when he was 33..Frcm 1908 to 1927, more thanhall of the cars sold in the UnitedState were Fotds.

The drcamer must also de-velop an abilitv to understandrisks-. Risk coniires up the imageofa gambler and of recklessness.It hasbecome a taboo word. Riskis the least ulrdersd conc€Dtin the management lexicoir.Many tirnesyou know very liftleabout the business you start. Ifyou rercad your first businessplan after being h bushess forten years, you get a gr€at l€ssonon how to manage your busi-ness through crisis periods. Youalso rccognize that your bus!ness probably grew in many di-rections which you neverimagined in your original plan.

John D. Rockefeller, the sonof a peddler, also started work atthe age of 16 as a clerk, but in aprcduct firm. He formed a part-irership in a grain comrniisionhouse and later used his profits'to enter the oil industry. Hiscompant the Standard OilCompany, was formed whm hewas 31 and in ten yeals it hadrcfineries inClwelard,NewYork,Pittsburgh ard Philadelphia.

So mv advice for all vouwould-be entrepreneurs?"Dream well, Iive hippily, andprcsper enormously." The morepowerful the dreamer, the betterentrepreneur he will become.l

The World of Tiaditionr r r , | | | | , ( ' 1 . l t lKetlnement ot mlnd leads to llne worKlng sKllls.

As it was in the past. so it is todaY.Banqkok Bank Ltd., Thailand's foremost.

keeps the tradition alive to provide the finest financial services.

Banglok Bank LimitedTha i l and ' s l - a rges t Ban k

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REPFESENTATIV€ OFFICE: Be I nq

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Going the extra mile...

The Art of DelightingCustomers

"Customels alwaysjudge the qualityof their totalexperience witha company-mterms of bothprcducts andservices.'

I n the context of Total Qual-I ity, serving ostomers does! not sirnply mean satisfyingf customers. Satisfied cus-tomers ar€ not necessari-lv lovalcrlstomers nor reDeat customrirs.l,Vhy is this so?

CustomersatisfactionimDliessatisfying need+ rcquitementsand specifications. Needs, e.quirements and specifi cationshave to be stated explicitly bycustomers to be satisfied. Whatcan go wrong \ .ith this seem-intly logical prccess?

Filst, you may not be askingcustomers the right questions,or even worse, you may be ex-pecting customeE to volunte€rinJormation.

Second, evm after vou haveasked customers all ihe rightquestions, they may not tell youeverything they need.

Third, wen if they tell voueverlthing they need and

-an-

swer all your questions, yourcompetitors can do the samething to your customers and sat-isfy them in a sinilar manner. Inshort, your customers couldswitch to your competitor with-out wamin& remorse or secondthought - and they have all theright to do so.

lryal customers arc delighted- nd iust safisfied - customeF.To deli8ht means to cater even tounstad custom€r needs, by an-ticipating them, by taking a Plqactive rather than reactive postureand by thinking like a customerDelighting also means defningquali3 from the ostomer's pointol l'!ew:

The highet form of cus-tomers€rvicE is what I (all surprisingcustom€!'s. It neans goint out ofyour way to exceed cus'tom€r ex-pectations and needs, stated orunstad, at no o(ha cst or delay.Surprised custorneG are not iustloyal customers, theryalso become

your mo6t dedicad and effectiveand advertisers. It

wou.ld be exhemely difficult foryour competitoD to steal your de-lighted and suprised custom€rs.

If you €nter a first class r€stau-mnt, and ask the waiter for acigarette, and he gives you one,you would be satisfied. But if hewanted to delight you, he wouldlightyourcigaEtte.Notethatther€are needs you do not state explic-idy to the provider - like a lightwhen you ask for a cigarette. Youleave that to the imaginatiorf resourcefulness and commonsense of the service provider

If the waiter wints to sur-prise you, then with the light, hewould give you an ashhay, ardask ifvou need - or better vet -provide other items for vouriomfort and convenience.

-

lf you dropped your cash-fi[ed wallet in an airline seatyour natuial expectation is thatit is gone forever You would besatisfied if the ground staff han-dled your report prumptly witha promise, even without guar-antees, that they would try theirbest to rctrieve the wallet.

You would be amoved andextremelv dissatisfied if vou en-counterei red tape and itaff in-diI{erence when you filed thereport. You would be delightedif the airline in no time foundyour walletand notified you that

"Satisfied cust(mers

you might retrieve your walletwith all the cash intact at theairline airport counter at vournext destination.

You would be sumrised if anairline staff member handcariedyour wallet to your home. As adelighted and surprised cus-tomer, youwould write an unso-licited letter complimenting theairline manasement. You wouldalso becomd a loval freouentflyet telling the whote ;orldabout your wonderful exoeri-ence with the airline.

'

l y'hen a customer ordeE aproduct, written documentation- purchase ordex, contracts andblueprints - contains nothinsbut s'pecificatjons, delivery datdtermsof lnymmtandprices.Cus-tome6 wiU not put in lvriting theservice they expect before, dwingand after the sale; but, theseunstad needs arc iust as rcal andimportant to then as those indi-cated in the purduse order.

For instairce, tlrev eroect im-mediate rcsponse to inquirie andcomplainb,they€rpectconectalrltimely billing and invoic€s, th€ye(Pect couteous and efficient tel-€phone operators and rcoeFion-ists when they cQntact you. Theeundtt€lr exFctations have tobesatisfied tog*her with the writtenspecfications. Since thev ate un-futte[thesell€rmustttiinttiteacustomer and think ahead of thecustomer in oder to deterrninethem. l,ousy service acrompany-ing an excellmt produd r€sulb ina bad sale the clstomer will neverfol8et, ln shoft, he may not comeback, and that was vour last sale.Customersarealwaysfudgingthequality of their total experimcewith the companv - in t€rms ofboth Droduct and'service.

In summary, Total Qualityostomer service means to sat-isfy, delight and thelr surprise all

ate not necessadlyloyal ostomelslror rcpeatctlstomeF."

customers. T

AUGUST 1993 . lHE ASIAN MANqGER n

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naair ro: @i $<ecuti\neBfril1$urnmarles

I s Main Street, Depr s4Mgll - ii Eristol- Vermont 05443-139E USA_ |

@ Coprrishr Ex@utiv. Bmt Slmdics, 1993

,o3u3 G, Galbgoo

Useful metaohor...

"Ifleadership doesnot moflYate itspeople, pedormancesuffers.tt

A Baby-Boomer'sGrowing Pains

pected, the conclusion wearrived at was that parcnting isnot only differcnt now but isalsoa muchmore diff icult task than itonce was.

My conversations withfriends in Malaysia, Thailandand Singapore over the past s€v-eral years mded with the sameconclusion. It is in this lisht thatthis apicle is being writien, notonly to commiserate with mvfellow baby-boomers but also t6provide some advice packagedin business jargon familiar to ex-ecutives. Furthermore,Iestimatethat over half of all Asian man-agers are baby-boomers, anda$und 90 percent of them haveprobably experienced or are ex-periencing the same dilemma,

A baby-boomer is someonebom from 1946 through 1964,years when the populationgrowth rate in most corurtrieswas quite high. So what's thebeef regarding the parentings(Enano now,

Well, when vou baby-boomersweresti.llschmlin*y6uremember how obedimi j,ouwerc to your parents. When youwere asked to do your home.worlg brush your teeth, take abath or go to sJeep, you did notreqriestan extension nor did voufro-wn or question why. To y'ourdismay, you now find yourselvescontinually on the defensive tothe never-ending, 'nVhy?" oIyour childrcn.

Well, baby-boomer, timeshave indeed changed. Your fut-uday night parties have beenrcplacedbyhigh+echdiscroe,liveconcerts, shopping malls andfood chain oudets. But keep hmind that vou provided them

the money to go to these places,Your innocmt games of hide-and-s€ekand taghavenow beenreplaced by Nintendo, and yourchildren have been wooed andwon over by several loves thatgo by the initials TV, CD, VCRand IrC. You rea.lize, of course,that it was you whobought thesein the first place.

You now blame both theWestern and local media foryourpar€nting wo€s. With satellitedishes sprouting all over the re-gion and the enEy of cable tel-evision, additional scapegoatsarc easy to find. You thm digdeep into your corporate bag ofhicks but realize thete are nostandards, guidelines or poli-cies around. Is there a orovenhow-to manual vou cai buv?None.Cantheplairningstaff helpyou out? No. Can you hire aconsultant? Yes, but he does notknow anj more than you do.

Still, do not despair, for youdeserve some frce advice forhaving had the patience to readmy artide up to this point. Her€arc some tips from one babv-boomer to another, couched inbusiness jargon we both readilyunde$tard.

1. Sc.nrrlo Eulldlng. BothDrucker and Churchill saidsomething that supports thisconcept. Druder: 'The qeatestdanger in times of turbulence is

'AG{r€ ndtlyesteflhy's loglcls a syndune ofbb!/{oomellmperiallsm."

not the turbulence; it is to actwith yesterday's logic." Church-ill "Ifweopena quanel betweenthe past and the present, we shallfind that we have lost the fu-ture." Scenariobuilding does notrely on the past nor does it pre-dict. What it does is to pnvidean understanding of the drivingforces that shaoe the futur,e.

Acting with yesterday's logicis a syndrome of baby-boomerimperialism, Just as you r€sentedthemoralistic superiority of youlparents' generation Clhey fustdon-t understard us.), you arenow Irustmted with the youngergeneration (Why can't they belike us?).

For instance, tale rock androll, which is thepride and py ofyour nostalda trips, You hr.rlybelieve that it is the best sou-ndever heard on earth. But theSeneration that pteceded yowsand that which followed do notagree with you. So it is time tostop preaching your nostalgiavalues to your children, butrather try to adjust tio and un-derstand what uesent and fu-tur€ realities coirlront them. Ifthere is something to impose itwould be the tirne-teted valuesof your generation and those ofyour fathers and forefathers,

2, Stlt glc Ho.lth v3 Flna|}dal Hcalth. Citicorp is havineproblerrs prinarily because iienphasized financial health(short-term) rather than strate-' gic health (long-term). Johnson& Johnsor; on the other hand, isone of the best-rnanaged corpo-rations in the world because itcontinues to focus on strategichealth. The gmd news is thatfinancial health becomes a con-sequmce of this focus,

Ir rcarin8 childrcn, quantitytimeisqualitytime.Themoretirreyou sFnd with th€(& the betterfortherninthelongnrnHowweq,

AI,JGUST'I9$ . THE ASIAN I,IAI,.IAGER 79

it isrcallv morc canvenientforvouto simpiy rcspond bo the questioa"Why?" with a, 'tsecause I saidso." But if there is no pain, there isnogairlAswithcompanies,bitingthe bullet now ensur€s not only agood future for your children buta.lsominimizesthebulebthathaveto be btten in the short t€rrn.

3, fYdk tF T{G ff the seniorexecutiv€s do not have a dircctionfor the company, the businessflounders. If the leadership doesnot motivate its people, periorm-ance su.ffes. lf the top marragersdo no translate into action theirftetoric rcgarding the primaryimpoiance of the custorner, nei-Orer will the ft,onFline personnel.Monkey s€e, monkey do.

If vour ddldJ€n see vou smok-in& drinkin& cusin& dtsobeyhgthe law or lying (Yes, wen theseeminglyinnocenL"Iil[thecal€rfm not home."), you will have nomoral authority to tell th€rn not todo these things. Iousy p€l€trtts,lousy children.

a Bdtchflfdg; Compades

aspidng for or trying to maintainworld-class status Dracticebendunarking. What are we doing? What arc the e"\c€ll€rt com-panie doing? How do th€y do it?Howcanitbeemulated?Howcanit be done ht€r?

Right now things may be inharmony in your home, lr4aybevour rcactions to Droblems that&op up have a higi success rate.But, as some of vou have foundout, the ernotional and psyclro-logical make-up of drildren canchange wernight as they growup. Fortunately, you will havesome friends who are doing quitewell in parenting. li k to ther!observe them, and applybenchmarking. Develop a po-ac-tive starce rather thar a rcactiveone.

5" tlfuL Knittn is not a fad.Continuous imDrovement hasbeen around for iecade but rm-der different narne. Companiesright now are jumping 6n thebandwa8on to hput this philoscphyintheioperations. Theyhave

realizedthatthercisnob€stwayofdoing things.

The same holds true inpartnting. You may think yourwav is best because vour eldestchiid is the higih schoolvaledicio an. Butthesessuevoumay have applied t6 your ch dmay have haftorcd r€sentn€ntand ill will or worse, may havercsulted in an unbearable psv-chologicalstrainwhichmayciubdireconsequances. Neverbesrnugabout your paEnting style for itmay be the wrcng one.

6,nrltanhgqfiLdm.Asone of the most r€c€nt conceDhralframeworks for organizatiors, itespouse that leaming is c€ntral tozuccess. Being a leaming organi-zation enables a 6rm to avoid mi-cro-management and linearthinkins. Each rmifs concem be-come ihe concern of the entirecompany. Inter-relationships,subdeastheymaybe,arcc0mp(Fhendedbettex,rcsultingincompa-nies readv for zurprises and notafraid of iurprises.

Everybody h the family musthaveacorunitrrcnttoktowledge,Regular family meetings or dis-cursions €nable everyone to un-derstand the why's andwherefore's of life. The hmilymust also have a mechanisrn forrnewal withinitelf . Whm a fam-ily mernber has a poblem, it is themtire family's problera thereby!€sulting in everyone tdlectingonhow he has contibuted to anoth-er's pmblem or what he can do tominimize or resolve the qoblern

Therc exists a multitude ofreasons that can be concocted asto why these management tipson parcnting are not applicableor deserve a lower prioritv. Afterall, you are very busy wiih yourwork and vour schedule is ouitetight. Some ofyou may bacli off,but the ones made ofsterner stuffwill tackle these r€sDonsibilitieshead-on.

If you press on, baby-boomaexecutive, then you have arrive4as a modern, pr€s€ntdav (rcI-evant)Darent. I

Innovatlve SolutlonsBy the year 2OOO, there r'rdll be 8l

million Filipinos to feed. Whilepopulatlon grows, farm landscontinue to shrlnk due to thedemands for housing and industria.lexpansion,

RIIONE'POULENC meets thischallenge by not only incrcaslng farmyield but doing thls wlth full respectfor man and hls environment.

conventional products todaygradually lose their effectiveness asparasites bulld up inrmunities torepeated beatments. Increasingdosages may work, but withdlsastrous results to the ecosystem.

Combining conventional with ne\r'technologles, RHONE-POULENCprotects crops with newformulations, more effective at lowerdosages in an entirely new packagingconcept.

For lnstarrce, most croP Protection

to Help Feed the Worldprcducts today use spreader systemslike broadcasting or spraying.RHONE-POULENC formulatlons {'illbe direcdy applted to the seed, andare transmitted through the sap likea vaccine, protectlng the plant for itsentire seasonal llfe-span. No furthertreatment ls needed.

For other specif lc appl icat ions,RHONE-POULENC formulations willalso be ln water soluble and bio_degradable pouches whlch ar:e simplyplaced at the foot of the plant. Theseare effective agarnst a wide spectrumof parasites, including rust andmildew arrd are completely bio'degradable without leaving unwantedtrace elements,

Perfectly safe, they eliminatedtrcct handllng and the need forcqntarninated container disposal,

Then a dream. now a reality.AbanaarL

7vt

Nagmamalasokit. Sa ingong kaiusLLgoa sa inaorq ko,ligtosa'n

il' nuOnte-PouLENc

Amtng Tugon ,Laban saGutom

RHONE.POULENC AGROCHEMICALS PHILIPPINES,INC.J. P. Rizal Sl., Bo. Namayan, Mandaluyong, Mevo Manila

AUGUST 19SS . THEASIAN MANAGER

Vlctor S. lJmllnE n

The Du Pont model with a difference...

t"We weredissatisfied withcrankins out a hostof financial ratioswhich could notbe related toone another,"

or debt management (D/EtROA{Dl). Moreover, we cannow rclate all the financial ratiosin terms of their impact on orcontribution to the ROE. Andlastly, by computing for ROEdirecdy and then computing forROE through the formula ROA+ D/E (ROA{D), we have thecomputational check we havebeen looking for.

Using the Lirnlingan Finan-cial Model, we have been able toundertake the followine finan-cial analyses:

1) Pinpoint arcasof weak andshong f inancial managemmt.

2) A$wer "what if " qu€6-tions in terms of the impait onthe ROE. As an example, wecan determine by how muchROE will increase if we lowerour cost of debt by 10%.. 3) Prepare financial planswhichstartwithROEta€etsandend with sDecific financial tar-gets, such ai maintaining oper-ating expens€s at 25% of sales.

4) Assrgn specific areas of responsibilities to f inancial off icerssuch as making one responsiblefor lowerhg the cost of deb,t.

5) Create "equity centers"where general nianigers haveboth asset and debt managementresponsibilities. t

The LimlinganFinancial Model

p€ople have asked for furtherelaboration.

We developed the financialmodel when we werc teachinqfinancial management in AIM'!MBM program almost 15 yearsago, Basically we were dissatis-fied with cranking out a host offinancial ratios which could notbe relat€d to each other. Mor€o-ver, we wanted to devise a sys-tem such that computationalerorscould be immediately dis.cover€d, as in a balance sheet 0na balance sheet, computationalerrors arE indicated when thebalance sheet refuses tobalance.).

After some thought, we de-cided to improve on the sacalledDu Pont model which showedthe relationship between the re-turn on investment, the oDetat-ing margin (net income/-sales)and the oPerating turnover(sales/assets); i.e., ROI (Returnon lrvestnent) = M (Net In-come)/S (Sales) x S (Sales/In-vesEnent).

Our model can best be illus-trated by an example. [,e/s sayyou have a 9100,000 proiectwhich gives a retum of 307o.Naturaly, if this proi'ct is fi-nanced completely by equity,thm the rctum on eouitu is thesame as the potct niurn, 30%.If, however, you decide to fi-nance halfof the prciect thouqhdeLrt, then vour ietum on vo-*r€vised eqirity of [50,000' de-pends on the interest vou williay on your debt. If say, the in-ter€st becomes $22J00 ($30,000 -$7500), your retum on equityincreases to ,15%.

Note that the drange in themode of financing ftom 1007.equity to 5070 equity / 50Vo debt

f||. UmlhE Flnarclal Modcl

has no operational effect on theprciect. As lt/ith a proFct, 60 toowith a company where theproF€t cost becomes the com-pany assets, the proiert debt thecompany liabilities and theproF€t equity the company eq-

On the basis of this examnleand some basic mathematics, wethen derived the Umlingan Fi-nancial Model:

ROE = ROA + D/E (ROA - CD)wher€ ROE = Return on Equitv

ROA = Return on AssetD/E = Debt/EquiWCD = Cost of Debi

"Anslel \ryhat lfquestions In terrsof the lmpact onROE."

Note that underthis forrnula, when D(Debo = 0, ROE =ROA. Note furtherthat if ROA>CD,then ROE>ROA, in-dicating positive fi-nancial leverage;and,thatifROA<CD,then ROE<ROAV in-dicating negative fi-nancial leverage.

Wththisformula,we can determinewherc a company'sROE is derived, assetmanagemmt (ROA)

AUGUST 1993 . lHE ASIAN I,IAI'IAGEB 8l

ARE YOU

IAN EMPLOYER?

Then, here's how to make sure thavour emplovees' contributions areproperly'reforted to the SSS.

Remember to:

Prepare your quarterly collection list (SSS Form R3)eatly.

In filling up your SSS Form R3, report only the combinedamount of contribution (SSS and Medicare and EC)

as indicated in ths tabls bslow mado tor each employsstor each month of ths quartor.

For examole:

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1ot 2td 3?dPlrg P119 P119P22A PUE P22AP173.50 P173.50 P173.s0

rogular copiss of R3, you may submit them in diskette ortapo form. This will enable a speedier posting of yourrepon.

For details about this proiect, pleasg got in touch withthe Employees' Account Department at 921-0619 locals2106 or 2109.

The date ths docurn€nls are poslmarked or receivedby the Post OfficE or by ths SSS will bo considered as thedats of submission.

a Below are tho schedules for January to December1993:

R^N(,E OFcdaaENS txf,

'ALAEIcuEDlf

MOI{THLY @IITRIBUTIO AwtotS

ttt rce rctDrofEtaa rca tof L

Pt - t&.99t50- 199.99200 - 2&.9!)2fi - X).9)3s0 - 499.99500 - 6c4.997@- 899.99900 - t,@9.99

1,100 - 1,&E.g)1,400 - t,7$.9)1,750 - 2,219.W2,250 - 2,719.99zlg - a,u9.993,250 - 3,719.9)3,7s0 - 1,2$.991,250 - 1,719.!N1,7s0 - 5,219.9!)5,250 - 5,7$.9!)5,750 oWR

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P6.10 P1.55 P1.2s9.@ 2.n t75

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t01.$ 25.00 10.Nt25.70 31.25 10.00152.00 37.9 to.Nt77.& 37.fi 10.@n2.m 37.& 10.00228.00 37tu 10.@253.3 37.fi '0.@278.m 37.50 to.N3)1.00 37.50 lo.N

P1.10 P1.55s.m 2.m7.fi 2&

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1U).@ 37.fi1r6.N 37.50133.30 37.tu1fi.4o 37.50166.m 37.501$.fr 37.50m.m 37.fi

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,r9.00t$.fr17t.50228.@282.50937.@379�.d)121.@4XJ.Nfi5.N517.N549.00

Santo3, JuanCruz, PedroRey.s, Maria

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Doubie check your entriss. Maks surs thg namos andconosponding 1o-digit SS numbors rogistered in it areaccurate.

Submit your accomplished SSS Form R3 along wiih thslhree SSS Form RSs (corresponding lo oach month ofths quarter), within the first 15 days after every quartsr.lf th6 1sth day falls on a weskend or holiday, lheprecading workday is considored the last dayof remittance.

Submit documents to the nearest SSS otfice or maillhem at any post otfico. No stamps are required.SSS will pay ths cost of postage.

lf you aro a computer usor, you may join tho R3 Tap€r'Diskette Projsct, wherein instead of submitting to us lhe

SOCIAL SECUB'rySYSTEM

Edllbcrto rlo Josus

Reviving ossified bureaucracies...

"Developing

counbies shouldfind this book asorllce of conifottThe horror storiesthey find in theirown bureaucraciesane no morescandalous thanthose documentedin the U.S."

demic research institutions inCanada, our hosts rcfer€d us toa pubLication which had alleg-edlv become the new bible in theWashingon D.C. Beltway.

True enough, the U. S. paper-back edition of the book carriedat the top of the cover page theenthusiastic endorsement of BillClinton: "shouldbereadbveverv

elected official in Ameri&. Tdebook eives us the blueprint."Clhtoi-watchers ^"v iirde"dpick up a few clues ori the newptesidenfs thinking on govem-ance fn:m David Osborne and'lbd Gaebler's book, ReinoalinrGowmment: How the Entrepi-neurial Spirit b Tronsfurming thePublic Sector.

The authors are peaching toAmeriens. Their example, bothabFct failues and asioundingzuccesses, conre fiom their shldvof Amedcanbureaucracv, somedftheur drawn ftom their own ex-perience as con$ tants to publicsectorofficialsand organizations.

The book argues that theemergmce of a post-industrial,knowledgebased e€onomy ne.quires the reinvention of gov-ernment and prcvides a set of l0prcscriptions bo guide this proc-ess. The basic approach is theapplication of principles thathave proven usefu.l in revitaliz-ing private sector organizatioru.

Thus, the authors urge thatgovernment play the role ofcatalyst, rather than implemen-tor; that it empower, rather thansirnply serve, the community;that it foster comDetition inservice delivery They recom-mend that the Bovemment fo-cus on mission rather thal rules;on rBults and outcomes ratherthan inputs; on the needs of the

ing its role so that it steers, ratherthan rows, the Ehip of state.

Third World bureaucrats willcertainly shess the importanceof the steering function andrcadily claim it as their own. Butthe emphasis on conhol, espe-cially apparent in Third Worldbureaucracie, inclines them torctain even the rowing function.Surrendering this function,mor€over, rcduces the power ofpatonage they enpy in hningand firing oarsmen.

But developing countriesshould find this book a source ofcomfort. The horor stories theyfind h theirburcaucracies are nomore scandalous than thosedocumented in the U.S. DefenseDeparhnent. And, as it turns out,the United States can benefitftom studying some of the irulo-vative approaches to addressthese problems tested bv ThidWorld govemrnent.

The authoE do not advocatethe witherine of the state. Theauthors wanistronge4, more ef-fective govemments. They ac-cept the logic of Fansferringmany government functions tothe private s€ctot but see priva-tization as onlv one Dossible so-lution. If entrepreieurship ispossible in large business corpo-rations which breed their ownbureaucracies, it is also po66iblern govelfnent.

The book thus ultimately of-.fers a message of hope. If re-invmted govemment systemscan rcvive massive, ossified bu-rcaucracies in the Unid States,if they can make a difference inthe Third World pockets ofpoveriy in First Wodd Americ4they should be equally effectivefor the countries of the South. I

Osbome, David and Ted caebler.l,�inoenting C,twmmt H6t) tlg Enbrprcwuritl fuifl is Tntafonnhg tht Publi. S6tor.PenSuin Eooks: N€wYorkc. 1992. rin.46pp.

The Public Official'sI\ewBible

n a couple of occasionsduring a recent two-week visit to policythink-tanks and aca-

customer rather than spending;on prevention rather than cue;on participation and teamworkrather than hierarchy. Finally,they encourage a btoader use ofmarket mechanisms, rather thancomrnand and control.

In the discussion of these Dre-scriptions, the authors' ac-lnowledge theil indebtedness tothe ideas of Peter Drucker onmanagement/ corporate shategyand entrepreneurship and to re-cent fiteratur€ on Total QualityManagement. The easy accept-ance of busin€ss conceDts, toolsand technioues underlie themainpremise oi the author's argu-ment "the centsal problem ofgovernment today is one ofmeans, not of ends."

The authors believe thatArnericar society has reached afair degree of consensus on thevalues and objectives govem-ment should Dramote and thevaccept as well the integrity anithe comDetence of the bureauc-racy. Thiy blame the failure ofgood people to achieve laudableobi€ltives to inadequate and in-appropriate systems. Radicalredesign or re-invmtion is re-quired for the government tocope with the management andcoordination of complex, di-verse, changing situations.

Perhaps, the most criticalprescription for the redesignprocess is the one many ThidWorld Sovemmmts would fhddifficult to implement r€defin-

"The auttors wantstr@el, moreefftctveElovemments.n

At,GUSr 1993 . lHE ASIAN ttilAMGER 83

A GREAT DEAL FORBUSINESS TRAVELLERS

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lar d(r ' r 'ss i t ) i l r t ) a(rrnpl i rnerr larvshLntk ' lnrs. i r lk ' r l o l \ t t \1) esrale ( i r rs,. r i q x ) r l l ) u s i l r x l I l x l l a i l r l ) ) N I I I t l r r r k\(xl k) ( \'{ r\'\\'hata art(l altlv\\'lrere

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I ,or a f t : t lv grai r l (k 'a l sr ; l \ ' ;11K()wloon Pan{ la lk t ( i . Ik)ng Kong slargeslr

Kovr'ooN PANDA FlorELA f i E f f i X ' E J E

:' Isr&1) \vih Srrfr. Tsucn WanK()wkxD rlonE KongI(l la52) 4O,q llll Far 1a52),!(x) SllJr r l ( x 476| Kl ' l l l rK l lx

(NbIE PANI)'\HTI HK

Managed by MEGA HOTELS55())7 tO Hotrewell (-tnrre.[t] Queen s R€d l-sl.

Tcl (Aar2) a'27 6395Fax (,is2) s27 sdiaMemb€r of rheHOPEWELL GAOT]P T

u THE I6IAN MANAGER . AIJGIJSTI9$

l(|n Gatbonton

Images ofHon[ Kong

o the fLst-time visitor, whafs irtgle-diatelystriking about Hong Kong isthe gelrreral liveliness and spirit oI the

First imoressions...

ptace. Ifs difficr t not to notice thetoweringoffice and rcsidentialblocks,streeschoked with tra{fic, which along with bam-boo scaffolding and hastily er€cted woodmsidewalks, constitute the @lony E leirnotif-

Nothhg here stays the same. Old build-ings ar€ tom do$an and new ones erccted atan unr€mmittingpace. Economic progressisevidmt in the way the skylhe has changed.Fmm the midlevels in the'60s, one couldsee ftom his balcony, a pleasant view of theharbour. Today, this view is largely ob-sEucted; the panorama of the waterfrontfragmmted by suchbastions of commercial-ism as the Bank of China.

Probablv one of the most imDr€ssivemekopotdns centers, Hong KongG the lastof the gr€at ftee ports. Its miniscule size(roughlyabout4&squarekilometers)makesshopping so much less of a drudgery -although it could never completely be thatnot with all the beautifullv done-up showwindows and bits and peoesio grab alnostevervone-s fancv.

lie travel wiitel, Jan Morris, once wrotethat in Hong Kong "considerable mergygoes towards the making of money." Noth-ing could be doaer to the tsuth. Posh shopping centers stand pillar to lean-to with tinyshop fronts - most of them observing a 12-hour dav and sevendav week. Afrimd andI wafted down Nathanioad one wming insearch of an affordable dinner and by thetime we made our way back to the hotelfeeling rather rundowr at 10:30, the shop6werestillverymuchopen,attendanbhawk-ing thekwares from the latest in _eleclxonics to leather goods -bothlcu.r and genuine.

Therc's something at onceincr,edi-bly exhilarating and ex-hawting about Hong Kong. Iwas wandering down Queen'sRd. arpund noon, and mv friend- who had been to viiit ot cebefore when still a boy and whodidn'tremernbertheolacemuch- gabbed my arm ind pushedme into a cornei When I askedhim what was wron& he mut-

tered,'"Ibo many people, too marypeople."And ifs true. If vou catch voursell in

Central at lunchtime, you ll see piople pour-ing onto Queenls Rd. from every direction.Considering that Queen's Rd. lies at thebottom of a hill, watching dozms upon doz-ensof peopledescendingftornnearbystreets,all walking hurriedly to some inner rhythm(I've never seen so many people talking onthe cellular phone while in a half-nm, half-walk) can ba nightmadsh - especially forthe uninitiated. Having leamed our lesson,the next day we made it a point to duck intolane Crawford - a pricey, ther€fot€, notice-ably less oowded deparfmentstorc -attheappointed hour.

AnotherthingthatstrilesmeaboutHongKong is its renurkable drawing power -not only for the tourist - but for those whocome to the territory seekingeither rcfugeornew opportrmity and who, like tlrc averageFilipino domestic helper, have grasped itwithboth hands. What is perhaps encourag-ing for the colony's 5 1/2 million people isthebelief that through sheer hard work theirlives will be that much better. Scrakh thesurface of many a local millionaire, andchances are you ve found someone with arags-to-riches story to tell. ln Hong Kong,economic miracles do happen. This b theincredible lure of the place.

Iys easy to Bet caught up in the freneticpace of Hong Kong. I don't think l've everfult as alive as when I visit. I sleep less andhave tons of €ner8y, but ils of the rcstlesssort that one feels after you've had too rnuchcoffee to drinlc

At the end of the day, iYs the rcminderof a rnore langorous period (when was it

ever?) that I cherish most.

be pettynlg[tmarbh

"llratc'hlrg'tie cloltdsdesoend on

Quem's Rd. atlurch hour car

While an ultra-modem masstransit system zips commut-ers back and lorth in relativespeed and comfort, I still pre.fer a ride on the ferry. In theleisurely ride aooss the harboron one of the Star Ferr),'s ven-erable fleet,I can contemplateHong Kong's everchangingface * which for the durationof the ride at least, will rcmainiust the wav I choose to re.member it.

' a

Adollar saving idea for frequent travellers to the US.

CallintlrelJS...

butpyinpmintlnHrilipprnes.

The PLDT Telecharge Card lers you make calls jn the US119.lhqrg" lhenr ro your lelephone number in lhernlrpprnes. I hat means you pa\ in pe\os. in lhePhil ippinesi What's more. rhi Telecirarge Card can beused lbr both domestic and overseas cails made in the US.Saveyourdo l la rs in theUS. App l ) fo r a pLDT Te lechargeLard lodavl

l ' o r Me l roMani la subrc r ibers . ca l l B l2 -6 ' l i i o t 815-4517.Provincial rubscribers can apply al their neare\t pLDTlocal exchanpe-

. No membership fee

. No annual dues

. No €xpiry date

r - - - - -YES| | trdnr lo h$c m) \q .en Tetecharrc Cird| {anr ra p la le rd l l ' i n rhe L 5 . dn , l b r l t rhe ; r , ,m\PLDT Accoun! here

Mail to: Philippinc lrns Disunce Tet. Co.5th f l@iAllied Banl CehftrAyala Avenue, l\4atai. Mero Manih

Ann: Advennine. Prcnotion\ &Special Elent\ D.panmenr t

1;PI.DItta W*. rruri-t;-t C-rrpry