DEBORAH DiSANZO AT PHILIPS MEDICAL SYSTEMS

Two things struck me after studying the case “Deborah DiSanzo at Philips Medical Systems”. First, if I was in her shoes, would I have accepted the position being offered by the CEO, and leave behind my present organization where I have already found considerable success? Second, what leadership lessons can I glean from DiSanzo’s experience as General Manager of Patient Monitoring System (PMS)? How do I approach my role as a manager? As a leader? How do I lead an organization that has already found success on its own, and whose people are already well-entrenched?

DiSanzo was already an accomplished career woman when Philips’ Chief Executive Officer (CEO) Steve Rusckowski asked her to head the Patient Monitoring business of Philips Medical Systems. She has been at the helm of the company’s successful cardiac resuscitation business, and she is looked at as a leader in the arena. But it was no surprise that she accepted the new leadership position. She was an adaptive leader after all. Adaptive leaders do not back away from challenges. As a matter of fact, they thrive in adversity. They find fulfillment in being able to solve such complex challenges.

I may not be an adaptive leader, yet, but I would have surely done the same- take on the challenge of navigating through an unchartered territory. The technical and tactical leader in me says that before I put my boots on the ground, I should first do a detailed analysis, an “intelligence preparation of the battlefield”- identifying the essentials; isolating the expendables; determining the friendly and opposing forces (in this case the key leadership and staff); analyzing the terrain- the obstacles, the key terrain features (the company’s critical hubs/ offices), and drawing the best possible avenues of approach. And that was how DiSanzo did it- good preparation. In other words, she did her homework. Adaptive leaders thrive because they know that for them to thrive in a new, often hostile environment, they have to adapt quickly and smartly which can only be done by painstakingly understanding what lies behind the façade, what lurks behind the shadows, what connects the dots, and what makes things go round.

DiSanzo, despite all her accolades in the business world did not show any signs of arrogance typical of high profile leaders. Instead, she was not ashamed to fold her sleeves up, get her hands dirty, and step into the fight. She could have just easily given out instructions, listened to her staff’s feedback and waited for results. But no. She dove right into the pool, careful enough not to make such a big splash and soak everyone, but forceful enough to make her presence known, and her impact felt. When challenged to establish her credibility, D

Deborah DiSanzo (Courtesy: Business Insider)

DiSanzo did just that and more. She easily earned the trust and confidence of her new ‘family” with her unassuming, light-hearted personality.

DiSanzo’s leadership was nothing extraordinary. Only that, she perfected (or so it seems), the art of listening to people and giving voice to their values by opening lines of communication with them to allow the free flow of ideas. Her sensing skills, honed by years of experience in the industry, allowed her to easily gain the support of her co-workers. Like a seasoned battlefield commander, she trusted her senses (but with research), to lead her team to the most advantageous position where they can win the fight.

DiSanzo knew that as a leader, she did not have monopoly of knowledge and she had a lot to learn from others. Instead, she empowered those who possess it. She recognized everyone’s potential and helped them become better by constantly building the capacity of the organization. She co-opted them to abandon their old paradigm and embrace the need to change and transform the structure and culture of the organization. She was unafraid to take risks, experiment on something unheard of, and even entertain diverse and divergent views. She was the real deal.

EK SONN CHAN

Adaptive Leaders are not ordinary leaders. They thrive in the most challenging environments and get out of the most difficult situations by adapting to the circumstances, and by accepting the challenges placed on their tables. They are bold enough to catalyze meaningful changes in their ecosystem, but patient enough to accept that change doesn’t happen overnight, that change is a gradual, often painful and arduous process.

EK SONN CHAN, the former head of the PPWSA was an Adaptive Leader. He is a survivor. He endured the most chaotic period of history of his country- hurt but unbroken; persecuted yet forgiving; conscious of the past yet optimistic about the future.

When he assumed as head of PPWSA, he realized that its mandate to provide safe water to the people cannot be achieved by just doing what it has been doing. He took it upon himself and the entire organization to create an enabling environment that would transform impossibilities to possibilities. A visionary leader who had high aspirations for his war-torn country, Chan sought to formulate a framework when no framework was available, to create a model out of their own, to effectively stir PPWSA amidst uncertainty and instability. He was not afraid to “rock the boat”, to interrupt and to innovate even in the face of internal and external challenges. How did he do it? How did he survive long enough [once again], to see the aspirations PPWSA come to fruition in spite of the situation’s volatility- amid “the chaos after the chaos”?

Chan, thanks to his early life struggles, was able to separate the MUST HAVEs- the essentials, from the WANTs- the expendables, when he began working on his adaptive challenge. His tragic past did not cloud his vision to be able to see what is essential to the future of PPWSA. His experiences taught him well to determine the obstacles he will face and how to overcome them. He was unafraid to challenge the status quo- perhaps because he thought he had nothing else to lose (most of his family members perished during the war). But neither was he arrogant nor self-centered. He celebrated small wins and attributed big successes to his staff, to the team THEY have painstakingly built.

He smart enough to take unfathomable risks. He didn’t buckle down in the face of adversity - he didn’t flinch when the General pointed a gun on his head. He didn’t succumb to local and international pressures- he sought to prove them that the Cambodian people can stand on its own. When everyone was in doubt, he believed in his people’s capabilities, constantly challenging, educating and motivating them. They were able to develop, test and propagate their own “best practices”, and prove to both detractors and supporters that they can do it.

Chan’s character and strong leadership enabled him and the PPWSA to do a disciplined and comprehensive assessment of the entire organization- where they stand, where they want to go, what to do next. They made selfless service, transparency and accountability as their battle cry at a time when selfishness, corruption and nepotism seemed to be the norm.

An adaptive leader knows when to take a step back, take the high ground, survey the arena, listen to voices, watch out for missing pieces, see through the cloud of dust, know where to go and how- and dive right back into the melee, put the parts together and keep on moving and pushing forward. And that exactly was how Chan did it.

We need more EK SONN CHANs nowadays.

Social Marketing Research and the Military

In 1951, Dr. G.D. Wiebe, a research psychologist asked: “Why can’t you sell brotherhood and rational thinking like you can sell soap?”. This seemingly innocent yet provocative question triggered controversy in the commercial marketing world. Marketing professionals claimed that a concept such a “brotherhood” cannot be marketed unlike a tangible product. Yet world renowned marketing gurus Koetler, Levy, Zaltman and others thought otherwise and must have in stead said: “Why not?”. The controversial idea hence gave birth to what is now known as Social Marketing- a hybrid of social science and commercial marketing.[i]

Koetler and Zalman coined the term Social Marketing in 1971 which refers to marketing practices in pursuit of social rather than monetary gains. It applies marketing principles and techniques to influence the target audience to voluntarily accept, reject, modify, or abandon a behavior for the benefit of individuals, groups, organizations, or society as a whole.[ii] It aims to bring about positive change in the target audience by applying relevant marketing tools such as market research, segmentation and differentiation, Marketing Mix (Product, Price, Place, Promotion (4P’s), etc., to solve various issues such as health and sanitation, environment, peace and security, gender equality, among others. The marketing tools applied by social marketers are not that different from the ones used by their counterparts in the commercial sector: both are aimed at bringing about behavioral change in the target audience.

It is quite understandable for readers to easily confuse themselves on the difference between social and commercial marketing precisely because of the word MARKETING. Marketing, as defined by the American Marketing Association (AMA), refers to activities, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large. However, people often relate it with “flowery” words to promote a particular product among consumers. This is why marketing is often shunned by many because of the “subtle” deception that comes with it. On the other hand, social marketing can be easily misconstrued these days as marketing using the social media (Facebook, Twitter, Instagram, Youtube, etc.) as platform. I initially thought that social marketing solely refers to selling products through the internet. Social marketing nowadays has been increasingly reliant on social media platforms to promote various advocacies. Many volunteer organizations, NGOs, civil society and people’s organizations have found remarkable success in their respective endeavors by capitalizing on the power of this innovation.

The contrasts between social and commercial marketing can be summed up according to its output, outcome and impact to consumers/customers or target audience. Commercial marketers peg the success of their marketing campaign on tangible outputs like volume of sales, brand popularity, market share, product reach and other measurable parameters. On the other hand, social marketers are concerned with how the outcome of their programs will improve individual lives and uplift societal conditions. The goal of social marketers can be said to be more noble in nature than that of their friends from the commercial side.

Depending on whom you are talking to, social and commercial marketing can be both easy and difficult but many practitioners point to the former as the more difficult field than the latter. After all, selling a desired behavior- an intangible product is not as easy as selling something that can be seen and felt.  Social marketing is about delivering social gain. It focuses on reaching the target audience, influencing their behaviors and satisfying the needs of the society as a whole- the social good. On the other hand, commercial marketing is about earning profit- the financial good, by satisfying individual customers through physical products or services. However, there is no doubt that both disciplines are customer-focused and needs all available and relevant marketing tools to attain their objectives. Likewise, the results in both fields are monitored, measured and evaluated to serve as basis for future performance improvements.

Social Marketing, being a controversial idea initially struggled to make it big in Western countries like the US and the UK. In fact, the idea was first widely used far from where it was conceived- in India, where it was adopted to implement a family planning program. However, once it was able to break free, its potential began to be discovered by many. Sally Dibb in her article “Up, up and away: Social Marketing Breaks Free”, said that social marketing ideas can be applied to a vast array of problems, to various groups of people and at different levels and scopes. It could be applied to individuals, groups, communities, villages, and even at the national and global arena. Social marketing is most visible in campaigns to promote gender and development, smoke-free public places, drug and alcohol-free communities, breastfeeding, women empowerment and many others. It can be utilized to influence policy-makers to legislate laws that promote overall social welfare and well-being, or influence people’s behavior on contemporary social issues like open defecation, garbage disposal, responsible voting, sexual health, etc.

Social Marketing is practiced mostly by government units and agencies to effect the desired change in behavior among their constituents. Sectoral, non-profit and development organizations have also adopted this field to create positive social change. Local Government Units for example may use social marketing to change the perception of its residents on reproductive health. The Yellow Boat of Hope Foundation (YBH), an NGO on the other hand, conducts advocacy campaigns to influence people’s attitude towards education.

Meanwhile, Social Marketing Research (SMR) refers to the study or investigation of the behavior, needs, attitudes, opinions, motivations or other characteristics of individuals, a particular sector of a community, or of an entire population to identify pertinent issues and concerns that could influence or support the decision-making process of service providers. Essentially, SMR gives credence to the decisions and actions made by these entities by making available relevant empirical data. Like other research fields, it usually begins by identifying the goals and objectives of the study. The researcher/s (either an individual or a research group) must have a good grasp of the client’ mission, vision and core values. They must be cognizant of the overall intent of their client to guide them throughout the process. They must be able to establish the goals and objectives of the study to ensure that they are on the right track; and identify the specific information needed to achieve the desired objectives. SMR likewise includes designing the overall research methodology including its framework, data collection process, and data analysis, and must be able to recognize its limitations, and its implications to the organization. Furthermore, it must have a means to effectively communicate its findings.[iii]

On Behavioral Change

According to the International Evaluation Group (IEG), behavior refers to the outward manifestation of an individual’s response- an action or change in action, to a situation. Quoting Kahneman, IEG said that response emanates from an individual’s automatic or deliberate decision-making process. On the other hand, behavior change, also called desired outcomes, are observable changes such as maintenance, improvement/enhancement, and increase or decrease in specific behaviors targeted or supported by behavior change activities. In the context of international development, these outcomes are individual’s behavioral responses to specific interventions such as the provision of information and incentives or other behavioral design elements. These interventions are referred to as behavior change activities and focus on affecting or shaping individual decisions and decision-making process.

What is the relevance of behavioral change in development management? Again, IEG said that to effectively deliver sustained services, service providers must overcome not only constraints in hard resources but also limitations in psychological resources. The latter refers to people’s mental capabilities that allow them to reach their full potential considering the different political, economic, social, cultural and other factors in the external environment. These factors shape people’s behavior- they often determine how people would behave under certain circumstances. For example, in the Philippines, people from the countryside are more concerned about their public behavior such as the public display of affection, compared to those who live in the metropolis like Makati. On the other hand, those who grew up in urban areas are more conscious about how they look, or how they dress up as compared to those who hail from the provinces. The perception of social acceptance varies from place to place, from ethnic group to ethnic group, and from community to community. Some tribes value honor and pride than others. While some put more premium on their live stocks and lands than the education of their children. This kind of diversity makes the delivery of social services such as WASH (water, health, sanitation and hygiene) more complicated and challenging than it seems.

A development manager must understand that development interventions cannot be implemented at random without understanding the community and the individuals that make it. People behave or react differently when subjected to or provided with programs or interventions. For example, encouraging people to avoid open defecation by building toilets for them could be positive for some, but can be misconstrued by others as interfering with their way of living. Sometimes, tailor-fitting or customizing programs to suit the needs of the people or certain sectors of the community brings out better results. As such, development managers must strive to understand the dynamics in the target community as part of their planning process. A thorough stakeholder analysis must be complemented by an equally comprehensive needs analysis and assessment to correctly determine what is or are needed by whom, and why.

Social Marketing Research and Behavioral Change in the Military

Social Marketing and Behavior Change are both familiar disciplines in the Philippine defense and military sectors especially the Philippine Army (PA) although there might be some variations in its practice and application. The Civil- Military Operations (CMO) which is comprised of Information Support Affairs, Civil Affairs and Public Affairs, is the closest field there is when we talk about social marketing and behavior change. CMO are planned activities undertaken independently or in coordination with civilian entities to support the accomplishment of the PA mission. Its primary goal is to gain popular support and weaken the enemy’s will to fight. CMO is a vital component of PA’ operations along with Combat Operations and Intelligence. It is characterized by activities that influence the beliefs, emotions, behaviors, attitudes, and opinions of intended audiences to facilitate military operations. It establishes and maintains good relations between and among military forces and establishments, government and non-government civil authorities, and the populace or stakeholders. The Civil Affairs pillar in particular, are operations planned, supported and executed to promote public trust through cooperation, collaboration and conduct of sociological and developmental activities in order to gain popular support. It consists of activities designed to win the hearts and minds of the people; gain their willing cooperation, support and confidence; and induce their active participation in the attainment of national objectives and goals.

The Armed Force of the Philippines (AFP) Internal Peace and Security Operations Plan relies heavily on the correct employment of CMO to facilitate the participation of all stakeholders in the quest for long-lasting peace and sustainable development in what is called the ‘whole-of-nation” approach. It is hinged on the Filipino tradition of “Bayanihan” or helping each other. To encourage the active support and involvement of all stakeholders, the AFP and the entire government must be able to understand the behaviors, attitudes, perceptions and beliefs of all sectors of the Philippine society towards peace and development, and all underlying issues that prevent the country from attaining it. Due to the country’s diversity, a “one-size-fits-all” solution doesn’t simply work to hammer out peace and usher in development. A comprehensive study- a social marketing research is needed to understand the people’s goals and aspirations vis-à-vis their apprehensions concerning peace, security and development. Many programs and interventions in the past fizzled out because they failed to factor in the different socio-political and socio-economic impacts on the target beneficiaries and communities. Most of these interventions were directed only at symptoms and not the root causes of the problems. They targeted only what was visible and failed to unearth the essential ones. They addressed only the observable manifestations of behavior and overlooked what is underneath. As a result, the problem continues to follow a vicious cycle. The government and the military ought to learn how to address issue using behavioral change lens- in a more dynamic, inclusive, consistent and sustainable manner.

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[i] http://samucommunications.com/why-cant-you-sell-brotherhood-and-rational-thinking-like-you-can-sell-soap/

[ii] The Future of Social Marketing by Olivier Serrat. https://www.adb.org/sites/default/files/publication/27593/future-social-marketing.pdf

[iii] https://www.amsrs.com.au/about/definition-of-market-and-social-research

NEGOTIATION 105

So far, I have learned that negotiations are not always a walk in the park, and it is not for the faint-hearted.

In Luna Pen, I learned how difficult it is to negotiate with another party especially when you are miles apart and not negotiating physically, belong to different cultures, have a wide age gap, different organizational positions, and of different genders. Culture plays significant role in the entire negotiation process, and therefore on the outcome itself. It is not enough that you know what your BATNA or WATNA is. It is equally important to know how you play it from the beginning to end. Both your strategy and tactic will be observed, countered, and worse, may be even used against you. Knowing who the other side of the table is and WHAT he represents is vital.

Multi-party negotiation is nth times messier and more complicated than a bilateral negotiation. Its complexity rises exponentially as the number of parties involved increases. Each one of them brings their own position and interests and they can kill you with a thousand and one combinations of options available to them. If you are to enter or manage a multilateral negotiation, you have to be prepared to deal with each negotiator’s real positions and interests, not to mention their idiosyncrasies. Finding out who is aligned with whom, who is at odds with whom, who is the naysayer and who is out there to kill whatever deal is hammered out is more challenging than it appears to be. Those who seem to be on the same page as you all throughout may turn out to be the guy who will sell you out in the end.

Coordination is crucial in multi-party negotiations because of the numerous layers of opinions and interests on the table. The first challenge at hand is finding a common time and place to negotiate. The timing and venue of multilateral negotiations could have significant implications to many especially when building alliances or coalitions is the name of the game. Also, establishing the process including the necessary protocols is a huge challenge. It may take months or even years to develop an acceptable framework of negotiation alone because it can make or break the entire negotiation process. A negotiation cannot successfully proceed without a tangible, clear and concrete framework.

It is not enough that you know who you are negotiating with because “what is important may be invisible to the eye”. A more thorough stakeholder analysis is a must to learn the interests, views and positions of the other parties. A link analysis may also be useful to determine the polarities of the parties involved. Sometimes it is not always the official but the personal and human touch that spells the success of a negotiation (remember the story of how Manila became the ADB’s HQ? Sensing is critical because the best technical solutions may not always be politically acceptable. On the other hand, political solutions may not always work out so learn how to crunch the numbers especially during crunch time.

It is always desired that you walk out of a negotiation with a genuine smile. You may not have achieved your optimum goal but you shouldn’t miss the opportunity of brokering new relationships and strengthening existing ones.

NEGOTIATION 104

In essence, the Luna Pen case was another eye opener for me not just on my negotiation skills but on how I look at negotiation as a whole. It also revealed my own lack of understanding on culture and gender, and its role in negotiations.

The Luna Case taught me that strategy without tactics is lame, and tactics without strategy is blind. Both cannot exist without the other. Seasoned negotiators always think big. They think of strategy, miles before reaching the negotiating table. Being across the table itself is already part of strategy. Should he negotiate or not? Should he defer it, push for it, or kill it altogether? Strategy tells the negotiator when to push or pull, exert pressure or slacken a bit, wait and see or rush ahead. It tells him which among his tricks should he use to get the deal he wants.

But seasoned negotiators know too well that he cannot survive with strategy alone. Knowing the game rules is different from actually playing it. He needs to know how to do the moves. He needs to know when and how to draw the sword, and when and how to sheath it without hurting himself or the other party unnecessarily. Tactics matter, and it matters a lot. Tactics means knowing what is in your arsenal of options and weapons, and knowing when to unpack and unleash them. The negotiator is always on the look-out for the right timing because drawing too soon may forewarn the other side and allow for an easy counterattack. Drawing too late may let the other party run circles around him. Negotiation is about thrusting, and parrying attacks without losing sight of the objective. As I have observed, it is quite easy to get lost amidst the clinks and clanks of offers and counter offers, and miss the whole point. Be in a careful hurry.

One’s choice of tactics is often dictated or influenced by culture that is why it should never be taken out of the equation. Who are you dealing with? Where does he come from? What is his affiliation, politically, religiously, ideologically? What values does he espouse? One or two, or a combination of these things can spell out the outcome of the negotiation. It can shape how the whole process is going to take place and end up. How your thrusts and parries are judged significantly depends on the culture of the guy at the other end, and you better know how he will respond.

What does a negotiator do when he is caught in the middle of a chaotic negotiation process, or when he is caught in an endless loop? He stops, briefly, and goes to the balcony. He pauses for a while and lets his sensing abilities take over. He detaches himself from the melee for a moment and looks at it from the top, from another perspective, to see what angles or approaches can be pursued? When the position is unassailable, does he keep on assailing it? When his position is untenable, does he keep defending it? When his interests are compromised, what options does he look into? How fast can he generate another option? How will he choose which option to pursue? All of these are quickly processed inside his mind and before he goes down from the balcony, he is ready for his next move.

NEGOTIATION 103

I have always thought that being a talent manager is such an intriguing and exciting job. You are around the most popular stars and you get to interact with them all the time. And the best part is, that you get to speak on their behalf which means you play an important part in their lives.

However, after representing Susanah, I felt like being a talent manager is a really tough job after all. You got to have the guts to shoot for the stars without sounding or looking so eager. You have got to ask for heaven without directly saying so. You have got to look down on your toes without losing your track and focus on your goal. And you have got to keep your ambitions high (for your star and yourself) without being arrogant. It is such a complicated job which involves more than just ordinary people skills but something that requires a combination of analytical, financial and technical competencies. How do you maintain a nice reassuring smile in front of the people you are dealing with even if they are offering such a cheap bargain? How do you tell them subtly that you are displeased with the offer without annoying them? How do you establish your position and communicate your interests without revealing too much about what your client wants?

Being a talent agent [for a moment] taught me a lot of things about negotiation. First is to know who you are representing. What are his or her strengths and weaknesses? What leverage can you use on her behalf? What can the opposite side (and other interest groups) use against him or her? Second is to know the audience- the people on the opposite corner. Knowing the audience means knowing their position and interests, and analyzing the options available to them. In the case of APCC, the position and interest of the head was unknown, and it would take a lot of probing into his agent or representative to bring this to fold. If we do not have a means of getting to know him, then we should be able to find out as much information as we can from his representative. His words and deeds might reveal something about who he is representing so it is important to carefully listen to subtle hints. In my case, I always try to calculate the person opposite me first by gauging his handshake because it often reveals how warm or engaging (soft) he is, or how firm and difficult (hard) he would be.

Third, it is important to determine what outcome we want to derive out of the negotiation- based on the intent of our client and the firm we belong to. Coming to the negotiating table with the representative of APCC, I felt my preparation was not solid enough and I did not know what exactly I wanted for my client other than landing the role and getting paid with whatever amount. This should never happen in “real life” negotiations where it is critical to know what your mission is because it will tell you when to “assault” or when to “retreat and reorganize” and fight another day. Knowing when to pause and assess the process gives you the opportunity to determine whether you are playing it fairly and squarely, and whether you are taking advantage or being taken advantage of by the other party.

While bagging a handsome deal is the immediate goal, it is also important to remember that the whole process is actually an exercise on relationship-building. The process and outcome of the negotiation determines whether you will be able to build a relationship and develop partnership, or nip it right away. The kind of impression that we give to other party during the meeting will somehow determine whether it will be the last or the first of many engagements in the future. First impression matters more often than not. We must remember that we are dealing with human beings and not just representatives of the other party. Human as we are, we will always have our biases even before going to bargaining table, hence, it is important to project a positive unassuming personality. We must learn how to separate the person from the issue or problem at hand. On the other hand, we should also remember that at the end of the day, we are accountable to our client, to our firm and to ourselves.

Lastly, listening and observing is crucial in a negotiation. As we negotiate, we should never get drowned in the volume of our own words. The best negotiator must be a detective- an intelligence operative who remembers what he hears and sees, and uses it at the precise moment. We can maximize learning from the other party just by listening to them. They may even unknowingly share with you their own negotiation techniques which will come handy in the future.

NEGOTIATION 102

Being Nice
Negotiations need not be antagonistic. Being serious about what you came for does not mean negotiators cannot be nice to each other. If culture allows it, always offer a smile, and a warm and firm handshake. Thanking each other is a must.

Being Patient

Another hard lesson I learned from negotiating a deal was on patience. As I was dealing with a more elderly person, I had to be very patient in listening to his voice which was barely audible and comprehensible. Waiting for him to make up his mind and close the transaction also required a great deal of patience which I dearly lacked. I knew that if showed I was in such a hurry to sign him up, I would look very interested and possibly kill the deal or pay a higher price. I also learned to never say “YES” to the first offer because doing so might make him conclude that he have already pushed me to my limit.

What You Want vs What They Want

Before sitting on the negotiating table, a negotiator must be clear with what he wants to get out of the “possible” deal. He must be specific with the outcome of the transaction even before the first punch is thrown. If possible, he must write this down or memorize the sequence of how he is going to throw his punches and counter punches. Failure to visualize the outcome may end up badly for a negotiator who will be left wandering how the other party was able to outsmart or outmaneuver him. Reading between the lines will also help a negotiator in knowing what the other party wants aside from what was laid down on the table. Verbal and non-verbal cues must also be watched for because these might give away his position.

When to cut loose vs when to stick to it

When the other party offered a price, I was almost tempted to immediately grab it, forgetting that I had a specific price in mind. Good thing I remembered my fallback position- the figure at which I will have to say NO and walk away. I realized that in any negotiation, I should be constantly aware of the limit or bottom line figure that I am willing to accept. I must be clear with my own NO DEAL situation. I also need to know how many bones I am willing to break if only to make the other party feel comfortable and make concessions with me. Whatever I am willing to give up getting a concession must be clear to me but I must make sure that it is worth it.

Win-Win vs Win-Loose

It will always feel good to walk out of a deal knowing that both parties are happy. If attaining a win-win deal is possible, a negotiator must go for it. If not, then go for what is most beneficial to you or your organization. Never sacrifice your own just to make the other side happy or to please the other negotiator at the expense of your side. A negotiator must look for gaps that need to be filled in by both sides. Consulting the other side is always a good technique. Workable compromises must be identified and must be really worked out. Flexibilities must be explored. Know which ones can be compromised and which ones cannot from your organization’s perspective, and from you own.

A negotiator must never underestimate the other party, AND HIMSELF. Just because the other party looks old or young, you will underestimate him or her. This might all be ploys to canalize your decisions on their favor. Never look down on yourself too but never feel superior as well. Maintain confidence but not to the point of being arrogant and condescending. It turns other negotiators off. Worse, you might actually fall into their trap and go home broken.

Deals must always be documented especially the outcome. Mutual trust is important but it is not an excuse for foregoing documentation. When push comes to shove, you will always have your papers to back you up. And don’t forget to have it signed.

NEGOTIATION 101

NEGOTIATION is not for the faint-hearted. Anybody who wants to negotiate must come to the table prepared- physically, mentally and emotionally. Preparation is the key, that is why homework was invented. In the military, it is called “Intelligence Preparation of the Battlefield”. A negotiator must know when and how to push it or hold back, to win some and lose some, to give in and strike back. While the ideal is to find a way for both parties to find a “win-win” solution, he must also be prepared to deal with the loses and how to cut it. A great general knows when to use his reserves and the aces in his sleeves. When one prays for the rain, he must be prepared to deal with mud too. 

The exercise began on a good note with each “competing” group excited about outwitting each other to gain a favorable contract. It started with strategizing as groups (representing the two opposing countries) established their respective objectives. Was it about kicking the other water company out of business, or was it about forging a solid and mutually beneficial relationship “against” the client country? Both sides tried to play it nice and easy during the first round. Everyone was sensing what the position of the other side would be. They were both trying to figure how the other side thinks, decides and moves. When the die was cast, both sides discover that their expectations are so much different from reality. They both wanted to play it nice but ironically, both of them also felt that the other side will not. They tried to reach an agreement through informal talks hosted by a non-actor. Everyone was hopeful the other would honor the result of the talks but alas, one of them reneged with the agreement- to the dismay of the other. When shots are fired, and blood is drawn, there is usually no turning back. Both parties wanted to give silver for a gold which turned the negotiation into a brawl. The other side was out for the blood of the other and soon enough, they were on each other’s throat until someone had the guts to say “stop, look, listen, talk”. The game ended with an air of bitterness. It was supposed to be “trabaho lang, walang personalan”- focus on the issue and not on the individual. One was disappointed that trust was broken instantaneously. Why can’t they play nice? The other was equally disheartened. Why can’t they lose with grace? When negotiations collapse, who is there to blame? Was it the winner- a no-nonsense player who would do everything for their country’s survival but at the expense of the other? Was it the loser who was trying to play nicely to forge an “unlikely partnership” but naive to the other side’s intentions? Was it the water consumer who seemed to have played the two countries, knowing the long-standing bitterness and animosity between them? What benefit would it bring the consumer if the two suppliers played it rough against each other?

The exercise brought into light the importance of a third party in the negotiation (in this case another country other than the three actors). Hosting negotiators of opposing sides in one’s turf is not an easy task. Aside from the strain it puts on a country’s resources, it also puts its reputation on the line, and puts its own citizens at risk. Opposing parties are sometimes extremely hostile to each other. Hosting them both might bring hostilities in one’s territory. Third parties must have the credibility, tenacity and wherewithal to endure long, tedious, arduous, controversial and complicated negotiations. Back channel talks are important. This is where emissaries- trusted people of both sides come into play. They either bring home good news or carry with them bad ones but they are instrumental in brokering important deals. [In my case, it is our daughter who does track 2 negotiations when I am in trouble with my wife. And she is good at it.]

Negotiations are often misunderstood by many (including me) hence the following questions: What does it take to successfully negotiate with an opposing party? Is negotiation needed with a neutral camp? What are the consequences of failed negotiations aside from the obvious (disappointment, possible hostilities/animosity)? What is the next step after a failed negotiation? To what extent should we pursue negotiation with, say, an extremely aggressive party? When do we stop and say enough?

PERSONAL BRAND: YOUR BEST CAREER TOOL YET

Branding is one of the most common entrepreneurial and marketing jargons nowadays. While many downplay it, practitioners consider it as a key component of individual and business success. With the growing usage of digital technology particularly the internet, branding has become an even more important tool to boost online presence.

Branding is not just about companies, products, goods and services. It has become a powerful for individuals who are seeking to be noticed, to stand out and to get their “dream” jobs. Personal branding experts say that in the digital technology era, the online community creates a brand for you especially if you are active online. You are creating your personal brand based on how you communicate, the stories that you share, the pictures that you pose or the videos that you watch in whatever internet media platform available to you. As such, it would be to your best interest to go ahead and create your own and promote it among the so-called netizens. By all means, you have the right to enhance, harness the potential, and manage your personal brand.

Personal Branding is a process. It enables you to establish your personality among your target audience through a purposive communication of your beliefs and values. It allows you to communicate what you desire to achieve, and what you can give out or bring in to your audience. It entails knowing whose attention you want to capture and to whom you are offering your services. It allows you to distinguish yourself from all the rest who might be offering the same services or possessing the same set of skills. Big companies invest huge resources in creating and promoting their brands. They pay huge sums of money for celebrity endorsers, print, radio and television advertisements because they believe that branding is useless unless it is communicated to its target audience. You do not need to the same because modern technologies allow you to convey your own brand online.

Building your personal brand is essential because as mentioned, it will exist or will be created for you unless you create it yourself. If you do not manage it personally, somebody else from the online community will.

Your online activity reveals a lot about your personality especially to people who read it, hence, it is important to be conscious about this all the time. You reveal aspects of your personality to the people who read you through your social media posts or comments. You subtly tell them your preferences or tastes, views and opinions personally and professionally. You develop your personal brand unconsciously as you go about your routine online. If you want to have control over your personal brand, it would be smart to be deliberate, to be purposive whenever you are engaged digitally. Show the audience what you want them to see, tell them what they want to hear, and share with them only what you want them to have. If possible, avoid sharing without purpose, or giving away any information that is of no value or significance to the audience. Oversharing or posting something that has no purpose or meaning, makes you a common commodity and loses your premium. There is added caveat to this. You should be able to project genuineness, because the audience is smarter than you think. If they are indeed interested with your brand, they have a way of verifying whether you are a real deal or just another fake news.

Creating your personal brand is tricky if you do not know yourself and what you want. Knowing your audience is also as critical because you might be projecting yourself to the wrong people. Instead of developing your reputation and enhancing your brand you might actually hurt it with carelessness. It is important to note that you can only share what you have, and you can only educate based on what you know.

Knowing yourself is critical. You must be able to confidently say that you are different from others because of a particular trait or skill. You should be able to tell your audience what differentiates you from the rest of the pack. A stand out personality, skill or characteristics is what attracts your audience to you. But knowing yourself and what you are best at is not enough. You should be able to express this, to say this in the most effective manner. Knowing what to say and knowing how to say it are two different things.

Believing in yourself as a brand is equally important. If you do not believe in your abilities and in what you stand for, do not expect others to do so. You are a brand the moment you step inside a room, the moment you walk in in the lobby, the moment you click the log in button. Now as to what kind you are or what you want to be entirely depends on you. You might feel that you and your organization or business are one and the same but the truth you will always be your own brand. Know your strengths and weaknesses. Be in touch with your inner self. Acknowledge what you know and what you don’t. Embrace your own, live it and be the first one to believe it. Be authentic.

Building your network is important to develop your personal brand. Interaction with other industry players will help you enhance your own brand. Competition might be in the air but there is no substitute with the interpersonal relationship that you develop with your peers. Their feedback about your brand is crucial if you want to further develop or customize your brand. You can reinvent yourself anytime you want should you wish to take on a different path or arena, and you can use the feedback from your network for this purpose.

Personal branding allows you to become more accessible to people or entities that might be interested in you. You become more visible to your online audience hence there is a greater chance that you will be noticed. But it can be a little bit scary or even creepy for some, knowing that a huge part of your life is exposed to the public. As such it is important to share only what is essential to them. You must also be able to know your boundaries or limits and learn to communicate it accordingly.

Personal branding enables you to build your own network. Having a solid personal brand allows you to develop partners and establish links with industry experts and potential customers. If you have existing clients, it validates their belief, trust and confidence in what your brand stands for. and existing customers. This network can become a huge asset when it comes to growing your business. The potential for audience expansion and reach grows exponentially once you are able to create and communicate your brand.

Personal branding makes you more distinct and identifiable. People usually equate others with traits, skills, or characteristics. Branding makes you worth a space in their memories. It will make you more recognizable not just online but physically as well. The more recognizable you become, the bigger the potential for personal and professional success is.

Personal branding not only develops an individual’s brand but also improves that of others. This is achieved if you collaborate say for example in creating a product or delivering a service with a partner. Both of your personal brands are enhanced if you are able to successfully deliver on your commitment together.

Maintaining and sustaining relationships might be more difficult if you have not established your brand. If you have a recognizable, reliable and solid personal brand, expect customers to keep searching and coming back for you. Solid networks are built with solid branding. Networks are built gradually. Networks build networks. Networks create and bring in more opportunities which you can harness and propagate. It paves the way for more avenues of growth and success. In the end, it will build your confidence to take on bigger challenges and responsibilities. It will embolden you to recreate and reinvent your brand, or stick to the tried and tested formula. As you build you credibility, you gain control of how you project your image and make your audience still follow you.

Personal branding helps in making your goals much easier to achieve. Opportunity finds you. When people know are confident with your brand, they will trust that you will always do what is right and beneficial to them. You will grain their trust and confidence, and ultimately propel you to greater heights.

HUMAN BEHAVIOR IN DEVELOPMENT ORGANIZATIONS

I have always been interested in how people act and behave- as an individual, as part of a team and as part of larger organization. As I have observed, some people’s behavior vary depending on the crowd they are with, the situation they are in, and the expectations of others around them. There are also some whose actuations are consistent regardless of who they are with, or what and where they are. Human behavior is such a huge puzzle for me. It is as intriguing as economics and as baffling as the solar system. As such, when the course Human Behavior in Development Organizations (HBDO) was opened, I had nothing on but my five senses. The entire course was like journey. It opened myself for introspection back to the immediate past, and got me reflecting about my future as a soldier, a development manager, a leader, and most importantly, as father and a husband. Questions after questions, I have had the most important realizations about my life, about my own attitude and behavior, beliefs and biases, and emotion and motivation. Answers did not come easily. Some are still left hanging. Some, I have intentionally left for me to ponder on as I continue my journey in development management.

On Leadership
Leadership is one of the most basic things I have learned as a soldier. Our trainings are replete with various lessons on leadership- tactical, operational and strategic for both combat and non-combat situations. With HBDO, I was able to revisit what leadership meant for me beyond the BE-KNOW-DO framework. I had the chance to look back and refresh myself on the military’s Principles of Leadership and assess myself how I fared on each. What kind of leader was I? What kind of leader am I now? What do I aspire to be?

I realized that I was and still am a transactional leader most of the time. I often focus on setting goals, rewarding achievements and recognizing superior performance especially when I am placed in- charge of a small unit. Proactive that I am, I try to anticipate things, constantly running scenarios in my head, and consciously developing actions and counter actions. I take immediate action when my team or unit is confronted with a situation. Victory favors the prepare, or so they say.

There are many occasions when I also practiced transformational leadership. When entrusted with leadership of a problematic or dysfunctional unit, I had to find ways on how to put it on reverse, and stir it forward along a new course. Adoptive or situational leadership also comes in handy for me when dealing with an ‘alphabet soup’ organization. Company leadership is very much different from small unit leadership. The principles may be the same but the art and science behind it are quite different. On many occasions, I had to put together a team of soldiers with diverse backgrounds and personalities. They came from various ethno-linguistic groups, had assorted cultural and religious biases, dissimilar level of skills, and most importantly, different motivation. I had to adopt my style to the team’s ‘personality’, and the task or mission at hand. Failing to recognize this kind of diversity could easily lead to the breakdown of the team. The lack of solid teamwork and camaraderie among soldiers results to mission failure, and worse, to loss of lives.

A leader’s leadership style is not developed overnight or acquired in an instant. Lt. Col. Enrique Ileto, a bemedaled Army officer said, his leadership style is a blend of that of his former commanders. I agree. We tend to adopt leadership styles practiced or embodied by persons we admire, idolize or respect immensely. Three of my former commanders were among the greatest influencers of my career. They have immensely contributed to my growth us an officer and leader and until now, I still consult them about leadership decisions, career moves and even family matters.

A big part of our personality is shaped by our environment: the family we grew up with; the circle of friends we have; the peers we relate with; the organization we belong to; and the society we live in. It is also heavily influenced by people’s expectations and institutional mandates. I have always encouraged collective decision- making because my family always consulted us when making decisions that could affect the entire family. My parents despised conflict in any form and were more into forging consensus and creating harmony among the family members. They were always willing to sacrifice anything to give us the best despite their meager resources. They were always ready to go the extra mile without expecting anything in return. When it was my turn to lead a unit, I saw to it that my men lived and worked in harmony amidst adversity and diversity. I shared to them what my parents taught me, what the academy has honed me for- to give more and take less.

Barbara Kellerman in her article “Leadership- Warts and All” said that “leaders weren’t always nice”. She said Machiavelli admired “unscrupulous leaders who exercised authority with an iron fist”. Machiavelli, according to Kellerman, believes “the only truly bad leadership is weak leadership”. Perhaps she was right. Perhaps Machiavelli was correct as well. There are no perfect leaders and there are no unblemished organizations. I, for one, wasn’t always nice to my men. I generously rewarded people but I punished twice as much. I was liberal with privileges but I was hard on people when it comes to mission accomplishment. I surely made a lot of mistakes and bad decisions but one thing I am NOT guilty of, was the lack of decision. An unwise decision is better than having no decision at all. Faced with a perilous situation, soldiers always looked up to their leaders for decision. It might be not be the best decision at that moment but it is just what soldiers need, and it must come quickly. Lack of decision kills more soldiers in the battlefield than bad decisions. Soldiers would always be willing to die for something rather than fight for nothing.

Reflecting on my past, I often wonder how I did as a leader, from the perspective of the men I led. I knew I had a vision for my unit which I articulated to my men when I started my stint. But was I able to effectively and clearly communicate it them? Was I able to develop the culture of giving rather than taking in my unit? Was I able to instill pride in them? Was I able to effectively carry them to victory? Was I able to meet their expectations of me as their leader? What about my superiors who entrusted me with leadership? How about my fellow leaders?

My introspection was both humbling and eye-opening as I realize I wasn’t as good as I thought I was. Perhaps not even close. But as I look back, it also dawned on me that I still haven’t maximized my potential as a leader, and that there is bigger room for me to develop. But what kind of leader do I really want to become? Do I want to be charismatic like Obama? Inspirational like Gandhi? Or a revolutionary like Bonifacio? And what kind of organization do I want to build? What kind of organizational culture do I want to create and promote? A ‘just-do-it’ and ‘giver’ kind of place ala St John the Compassionate Mission, or a ‘to-each-his-own’/ ‘taker’ organization like Goodjobz?

On Motivation

Why do soldiers do what they do? Why do they go to battle knowing that it is always a ‘50-50’ chance- you either go home alive and unscathed, or go home lifeless or injured? Most soldiers like me would tell you that they love being a soldier. It is what we have always wanted to do. It was my childhood dream, and being in the Army is a dream come true for me. This might be a classic example of Intrinsic Motivation. We find soldiery personally rewarding. Soldiery is a hazardous profession and yet thousands are lining up to enlist. Training is literally blood-sweat-and-tears but volunteers are overflowing even for the most grueling courses.

Now this is the challenge for leaders, a test of leadership. Soldiers already have that inherent motivation to serve- the reason why they enlisted in the first place. The challenge is on how to keep this motivation going, to keep the fire burning and to keep soldiers moving forward despite adversities and challenges. Those who have lost a meaningful reason to serve, and lost someone to motivate and inspire them are usually the ones who bolt out and abandon the service first. Those have managed to keep the fire in them alive are those who survive the most dangerous missions.

What does it take to develop, maintain and sustain the motivation of soldiers? Is it enough to give them autonomy or develop their competence? In my experience, quality training along with adequate equipment are among the most crucial factors that motivate soldiers. Soldiers are competitive and competition sometimes comes at a huge price-life. As such, they must hone their skills to perfection, and continuously polish it to stay alive. Training develops their competence, and competence gives them confidence. The more confident they are the more motivated to serve they become.

However, it goes beyond the physical or material aspects. To endure the rigors of training and survive hazardous environments, a soldier must be motivated not only by his salary, not only be promises of benefits, not only by awards and medals, but more importantly by his own passion to serve and do good for the people and the country. Soldiers need to be constantly counseled as they need somebody to talk to. They have their own dreams, hopes and aspirations. Family support is as critical to keep them energized, inspired and motivated.

Meanwhile, it also goes without saying that a leader must also be motivated enough to be able to motivate others especially his subordinates. “Knowing one’s self and seeking self-improvement”; and being “tactically and technically proficient” are principles that develop a leader’s competence. He must be courageous enough to be able to set the goal for the organization, and lead toward its pursuit. He must be committed enough to inspire commitment among his subordinates. He must be competent enough to promote and build confidence among his people. And most of all, he must possess integrity to foster accountability, fairness and equality in the organization.

Over and above these attributes, a leader must have a heart to be successful in leading. He needs a big heart to have the courage to lead both in times of peace and war. He needs a bigger heart to motivate people to have equal or even greater motivation than him. And he needs an even bigger heart to be able to create an environment that promotes these values, and build an organization that opens unlimited opportunities for people to progress and succeed.

HOW CAN I REDUCE MY PERSONAL CARBON FOOTPRINT?

Scientists, environmentalists and climate change experts have proposed numerous ways on how to reduce our individual carbon footprints. However, their applicability may vary from person to person and from place to place. Socio-economic and political condition, religion, culture, and even the environment itself may pose challenges as one strives to limit his or her carbon footprint within the household, in the community and at the workplace.

I have chosen five ways to reduce my personal carbon footprint. And this is my commitment.

1. Reduce meat consumption. I am not much of a meat eater but I shall further lessen my meat consumption. Climate change experts have proven that limiting our meat consumption can make a huge difference because agribusiness is one of the biggest emitters of greenhouse gases. It is also one of the most water- intensive industries. Agribusiness wastes not only emit hazardous gases but also contribute to the pollution of water bodies.

2. Unplug devices when not in use. Electrical equipment such as cellphones, computers and audiovisual equipment use electricity as long as they are plugged in even if they are turned off or powered down. Unplugged household equipment consume energy so it is important to check them before leaving the room. Lights should also be switched off when not in use. 

3. Drive less and/or share car rides. Driving in Metro Manila is a stressful activity due to the heavy traffic condition in almost all roads and thoroughfares. I used to bring my car going to the office but I realized it an inefficient and fuel-intensive activity. Parking is also a problem and more often than not, you will find yourself circling around or idling in parking areas waiting for a parking slot to be available. This is not only a waste of precious time but also environmentally harmful due to the carbon emitted by the vehicle. What we do is synchronize our trips from and to the house. I usually just tag along with my daughter on her way to school and wait until a member of the family is on the way back home. This not only saves energy but also allows me to spend quality time with them along the way.

5. Plant vegetables and ornamental plants in the backyard. Planting, whether common vegetables or ornamental plants helps in reducing our carbon footprint. Aside from the food that we can derive from them, plants absorb carbon dioxide– a type of greenhouse gas. It also helps cool the surroundings thereby reducing the need for air conditioning or air cooling systems. Leaves also provide natural protection against harmful dusts and particles that can cause respiratory illnesses.

6. Reduce, Reuse and Recycle. This three are probably the most popular words when we talk about solid waste management and environmental protection in general. However, only a few really practice them religiously. Reducing use of household items like tissue paper, reusing items that can still be used such as plastic cups and bottles, and recycling used materials for other purposes such as newspapers can immensely contribute in lessening our carbon footprint. By practicing the 3Rs, we are able to protect the environment as it will effectively reduce the energy needed for raw materials extraction, manufacturing, packaging and other production and distribution-related processes. 

IMPACT INVESTING IN THE PHILIPPINES

According to the Global Impact Investment Network (GIIN), impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return. Depending on investors' strategic goals, impact investment can be made in both emerging and developed markets, and target a range of returns from below market to market rate. Impact investors provide capital to address the world’s most pressing challenges in sectors such as sustainable agriculture, renewable energy, conservation, microfinance, and affordable and accessible basic services including housing, healthcare, and education.

In the Philippines, impact investing is gradually gaining momentum with several non-government organizations actively pursuing it. NGOs such as Peace and Equity Holdings Inc. which focuses on funding social enterprises in their early growth stage are leading the impact investing movement in the country. More and more impact investors in technology are coming in such as Ideaspace which is backed up by PLDT- Smart; and Kickstart whose supporters include Globe Telecom. Many start-ups are built on the noble idea of doing good to the people while at the same time earning profitably to sustain its own operations.

The Philippines is a country that never lacks good Samaritans- high net worth individuals and families who have vast wealth and excess funds, and want to create social impact by investing on sustainable business ideas. They are the so-called “angel investors”- the business do- gooders who want to give back part of what they have accumulated while at the same time earning a sum for their money.

The socio-economic landscape of the country makes it conducive for both local and international impact investors. Poverty, malnutrition, illiteracy, crime, injustice and other social ills need considerable investment of resources if we are to solve them. Environmental problems, and natural and man-made disasters occur on a regular basis which underscore the need for investors who are willing to put their money to alleviate people’s conditions (for a minimal return). Impact investing in the country can attain the same rate and tempo of venture capital funding activities as long as there are those who are committed to helping the poor and marginalized.

But there are also entrepreneurs who are wary of impact investing because it takes more than just the availability of funds and resources. Good intention alone is not enough. Impact investing requires massive and sustained commitment of a business entity to keep it on track in pursuing its objectives. Start-ups may find it difficult to sustain its operations, and might be forced or tempted to go back to mainstream business venture driven solely by profit instead of looking at social and environmental benefits.

Some observers say that it is difficult to find real impact investors. Others comment that it is hard to distinguish them especially in developing countries like the Philippines where most businesses are fiercely competing with each other for market share. For me, impact investing is a trend that will continue as people become more connected, aware and informed of what private entities stand for. People are bound to support those whom they think have the capacity and the will to do good for the society.

SUSTAINABLE BANKING IN THE PHILIPPINES

Sustainable development is development that meets the needs of the present, without compromising the ability of future generations to meet their own needs. Aside from the environment, it also focuses on ensuring a strong, healthy and just society which implies meeting the diverse needs of all people in current and emerging communities, promoting personal wellbeing, social cohesion and inclusion, and creating equal opportunities. Sustainable development can be pursued in many ways, one of which is through sustainable banking. Sustainable banking, according to Triodos Bank is “using money with conscious thought about its environmental, cultural and social impacts, and with the support of savers and investors who want to make a difference, by meeting present day needs without compromising those of future generations”.

Sustainable banks strive to use their money to bring about positive and lasting change. They are industry leaders when it comes to the triple bottom-line approach- by financing companies, institutions and projects that add cultural value and benefit people and the environment. These are banks that have incorporated in their corporate governance frameworks the commitment to help make the world a better place, aside from their profitability goals.

Is the Philippines ready for sustainable banking? Are Philippine banks ready for it? In 2015, the Bank of the Philippine Islands (BPI), one of the country’s leading financial institutions, approved a total of P27.5-billion on loans for renewable energy, energy efficiency and climate resilience projects as part of its sustainability performance and initiatives. Aside from these, it also pursued sustainable development initiatives including financial wellness and financial inclusion. The bank said it will continue to empower its people to innovate services, systems and products that address the nation’s biggest sustainable development challenges of poverty, food security, climate change, and ecosystem degradation.

Union Bank of the Philippines is currently forging ahead towards sustainable banking after its branch in Olongapo City became the first bank to earn LEED Platinum, the highest possible rating for leadership in energy efficiency and environmental design. Its Tacloban City branch likewise earned a Gold certification for incorporating sustainability measures to ensure energy and water efficiency, and health and safety of everyone.

Meanwhile, the Development Bank of Philippines (DBP) has been doing its part in responding to the impacts of climate change and financial shocks by creating a more sustainable business plan. It vigorously pushes for the incorporation and integration of corporate social responsibility programs into internal operations, business processes, and product offerings.

Although these banks are some of the largest banks in the country, it means Philippines is not far behind when it comes to sustainable banking practices. Sustainable banking is gradually gaining attention and followership through the initiatives of the Bangko Sentral ng Pilipinas (BSP), International Finance Corporation (IFC), and other financial and academic institutions including the Asian Institute of Management (AIM). They are currently joining hands in shaping the banking industry by increasing their awareness and understanding of environmental and social risks and enable them to develop their own systems that incorporate international best practices and standards. Through these efforts, vanguards of sustainable banking hope to instill social profitability, economic profitability, and transparency among the country’s banks and other financial institutions.

Being a Benefit Corporation: Advantages and Disadvantages

Time and again, it has been proven that no single entity can solve society’s most challenging and most pressing problems. Even the so called “whole-of-government” approach is not enough to address all societal issues that plagued a country. What is needed is a “whole-of-nation” approach- one that integrates all efforts of government, non-government, profit, and non-profit sectors to respond to these issues. B Corporations is one of the private sectors responses to this need.

B Corporations are businesses that meet the highest standards of social and environmental performance, public transparency, and legal accountability to balance profit and purpose. They are spearheading a shift in global culture to redefine business success and build a more inclusive and sustainable economy. They are working together towards the reduction of inequality, alleviation of poverty, lowering unemployment, promotion of a healthier environment, and building strong and resilient communities by harnessing the power of business. Using profits and growth, they strive to achieve positive impact to the people, communities and the environment. In the Philippines, HOPE (Generation Hope) is currently leading the movement towards making businesses socially and environmentally responsible guided by its mission “to empower every Filipino to participate in the advancement of a social good”. So far, it is the only Philippine company to donate 100% of its profits to the building of public school classrooms.

In many countries, being certified as a Benefit Corporation affords a company legal protection by allowing its directors and officers to balance financial and non-financial interests when making business decisions- something that is not available under traditional corporate law. Being a Benefit Corporation helps a company improve its brand image, attract talent and impact investment capital. It also allows it to develop partnership with other like-minded businesses and organizations. As societies, especially consumers become more socially and environmentally conscious, being a B Corporation can be a great marketing tool because of the “impact” it promises to deliver. HOPE for example was able to build many classrooms across the country through its profits derived through its strong partnerships with retail stores, restaurants and food chains. The brand has attracted the support of celebrities who promote the product for free or at a lesser fee. More and more business entities are bringing in HOPE bottles to their shelves and shops because they believe in what it stands for. This means that the business is actually earning while doing good.

Being a B Corporation is not easy. Assessments take time, money and other resources. B Corporations are new to Philippines’ business world; hence, many are still skeptic about it and it may time a long time to get the support and commitment all stakeholders in the company (the employees, customers and shareholders). It is bound to face many challenges including institutional resistance. Legislation will also have to catch up. Being a B Corporation puts considerable pressure to the company who has to live up to its ideals and expectations from the public. It also entails additional costs to the company especially in making its systems, processes and other operational aspects environmentally compliant or sound. Its decision -makers are required to consider the impact on not only their shareholders, but also non-financial interests, such as the community, the local and global environment, and the company’s employees, suppliers and customers when making decisions. It must always think of the long-term benefits to the people and planet rather than the company’s profit alone. Failure to pursue its publicly stated benefit mission could expose its leadership to public scrutiny and could possibly trigger legal issues. The company becomes more accountable to the people especially to its clientele.

On “Defensive Marketing”

My wife and I got married in 2010. By that time, she already owned a string of beauty salons around Metro Manila, and was aggressively expanding her own brand in and around the National Capital Region. Although I never had any experience or background in running a business, she sometimes consults me on some things especially when it comes to managing human resources. It has been almost eight years now since we got married, and more than a decade since she started the business. The salon has already about a hundred branches now most of which are owned by franchisees. The business has grown, and so with the challenges and the challengers. She says it comes with the territory. Lately, I asked her what happened to other salons- her competitors which I don’t see anymore. She said some have went out of business while others have slowed down. So, what is her company’s secret to longevity? How did it last this long while others withered?

She said the salon is certainly a cutthroat industry where competitors can easily sink you down using various marketing ploys and industry tradecrafts. As a business owner, you must master the art of defending your territory, and protecting your brand. By the way, my wife trained as a lawyer and not as a businesswoman and that probably helped her survive amidst a tough and extremely competitive environment. She said it was a struggle to position her own brand in the industry but it is harder to maintain foothold as competitors are always out to unseat you. The company has got to figure out how to secure and defend its position because both existing players and new entrants want a (big) piece of the cake- the people. Choosing and getting customers are both challenging tasks but keeping and growing them are equally, if not, even harder. And these reminds me of John Roberts who said that “if a defender can’t hang on to what it has, it loses the foundation on which to build its own growth”.

Indeed, in any business undertaking, the significance of analyzing the environment cannot be simply understated. For you to protect your battle position or basecamp, you must understand the threats, leverage on your strengths, improve on your weaknesses and seize on every opportunity to defeat the enemy. The salon thrives on its strength which is in providing the best quality of service to its clients. It willingly goes the extra mile to ensure customer satisfaction knowing that it is a perishable commodity. Loyalty is difficult to build and maintain hence keeping its clients happy is on top of its priorities along with neutralizing or besting its opponents. It reaches out to its clients through traditional means and modern media. It invests on advertisements, endorsements, tie- ups and x-deals (with celebrities) to promote and solidify its brand.

However, despite its relative success, the salon has a long way to go towards its goal of becoming the local industry leader. I told my wife to adopt a “careful hurry” mode- to be aggressive yet defensive, optimistic but vigilant and most of all, to focus not only on beating the competition but also on refusing to get beaten. Now, she thinks I am a smart guy.