Evelio Echavez

My letter to my siblings 5 days after the onslaught of the storm "Ondoy"

2009-09-30T17:58:00.000-07:00

I am posting this email of mine to my siblings to keep a record of what happened during the onslaught of Ondoy and its effect on my family. The storm struck Northern Luzon on September 26 & 27, 2009

"Hi All!

Sorry for not being able to email you right away about our situation here in Bulacan. Although, I texted Manang Bebe and Lory last Sunday that we were relatively OK; and Kit, we chat for a long time yesterday.

The rains came again in the morning of Saturday. Actually, it already rained whole night of Friday and in the early morning of Saturday, our subdivision was already like a big lake with water rushing down the streets because the yards were simply saturated as a result of the whole-night-downpour.

Because there was no clear warning that there would be floodings all over the place, I decided to go to the university because I needed to get some things from my office to read during the weekend. I usually do not go to the university on Saturdays except when I teach an MBA course (which at this time, was not the case). .

After lunch, I left for home. It was again raining that time. Actually, I learned much later that the storm hit land about 11AM that day. it was not the winds that caused alarm this time; it was the continuous heavy rain. I was also told much later that the MBA classes were suspended in the afternoon because the warning from the government agency had already come. At that time, except for the high water on the streets, nothing was extra-abnormal.

PAG-ASA says that the rain that came for 9 hours was more than the rain-supply for an entire month (like September) and that the rain volume was more than the one brought by Katrina.

When I put-on the TV about 3-4PM, we learned that flooding was over a wide area of land - the entire Metro Manila and some of the neighboring provinces. Then power went out. We started getting worried. Ruth and I went to the supermarket (about 15 mins away from the house) to buy batteries for our flashlights and radio, candles and canned goods (just to make sure that we have what we would need in case the situation got worse, which actually happened).

The internet was out and most of the time later, it was not accessible. We saw on TV that some towns in MM were badly hit especially Marikina and Cainta (where Nonon and Boots stayed before). When the power was out, we relied on our radio for news. I started to worry also about Evette, Chaq and Ilya-and-Tan because this was a Saturday and we usually gather together on Saturday nights to have a special family dinner. I contacted them by mobile phone.

I told Chaq to just stay in the office if the situation got worse; I told Evette who was on the way going home taking the road leading to Katipunan that the flood water in the Ateneo (Katipunan) area was about 2 meter high. She turned back after also seeing other vehicles turn back and from the far horizon, also seeing some people wading with only their head being visible. She told me she prayed hard for God to help her. While in Cubao, she saw a car that was familiar to her, so she called a senior-doctor-colleague what the plate number of her car was. And of all things, it was the car of her colleague. So she said that she was in the vehicle immediately to her friend's rear. Wow! God answers prayer in His time. Her senior colleague told her to just follow her car and spend the time in their house until the problem dissipates. That was also my suggestion to her, to find a friend/colleague where she could spend the night in her house.

The three siblings contacted each other from time to time. Evette even suggested to Chaq to just join her in her friend's house (her friend also suggested to her to inform Chaq to join Evette). But, I can understand why Chaq wanted to come home that night. Jehan and David were waiting for him; and Jehan is on the family way now.

I also monitored Ilya. She was already travelling but the waters on the road network and NLEX were already fast rising. They decided to turn back and return to their apartment in Novaliches. That was a wise decision. I also told them, it was good that they turned back. Many cars got stalled in the "high water" and which caused massive traffic jams. Ilya told me by phone of another decision they made which to them and to me, saved their vehicle. I will not talk about it because it will make the story much longer.

Chaq's situation was different. He decided to come home after working in the clinic (where he works; near Manila Hotel) at 230. He was the only one without a vehicle as he commutes by bus daily to work. When he arrived at the Victory Liner Terminal at Kalookan, people were already queuing for the bus that would leave for the North (Bataan, Zambales, etc). So, he joined the queue without eating lunch and merienda. He could not leave the pila to eat because he did not like people to say that since he left, he forfeited his place. So, he stayed in the queue.

The bus management informed the public that there were no drivers for the bus parked in the terminal and so they had to wait for a bus coming from the province. A bus from the North arrived and the people who were not in the queue and those who were in the tail-end of the line, got into the bus first. So, he got into the bus when all the seats were taken and had to stand at one of the doorway (estribo). he texted me that the bus left the terminal at 10PM and that he was standing. He was very mad at the bus management and guards, who did not lift a finger while the people scrambled like crazy to get seats in the arriving bus.

He asked me to fetch him at the "labasan" near our place when the bus arrives there. Up to midnight, the bus had not arrived. And so I told him by text that I was going to sleep in the meantime because I was very sleepy. But from time to time, I would check my CP if he had already texted. Each time, I texted he would say that he was somewhere at the NLEX but that the waters were high and the traffic jam was bad.

I had scarcely slept when he texted me sometime 530 AM that they were still at the Bocaue portion of the NLEX. Later on, at about 7AM, he said that the bus has moved to the MacArthur Provincial Highway coz the passengers had egged the driver to go there instead of waiting for improvement of the situation at NLEX. At the provincial highway, the situation was the same. The place was flooded.

I texted him through the night if it was possible for me to meet him somewhere. But it was a good thing that he did not accede to my suggestion because some portions of the NLEX and the provincial road were simply unpassable. Vehicles were unnecessarily stuck in the highways because of the attempts to fetch their loved ones. At about 8AM, he asked that I meet him at Balagtas. He would just walk from Bocaue to Balagtas. So, along with Ruth we went to meet him with some sandwiches and coffee in hand. We could not proceed to Balagtas because of the high waters and the traffic jam. We reached only about a kilometer from the Guiguinto-Balagtas boundary.

I texted him to just walk or take a jeepney or truck-ride up to the point where Ruth and I were. The local government units at this time had already fielded trucks to service the people in places where the water was high. I walked to the area near the boundary but could not proceed farther because that part of the highway was flooded. We were very much relieved when I saw on the rearview mirror the form of a man from a far distance who was like Chaq's. Siya nga! He told us, he had no sleep and food (his last meal was breakfast of Saturday); and he walked through part of 3 towns just to be able to meet up with us. It was a great relief for me. He did not eat lunch because he was the only doctor who came to work and all "patients" had to be seen before the end of work hours.

The damage caused by the storm and floods are beyond precedence. This is the first time that we have seen this type of nature's wrath. Makalolooy kaayo ang mga biktima; makahilak ko nga makita sa ilang na-agi-an. Gamay ra kaayo ang among kalisud ikompara sa ubang mga tawo. As of now, 246 have been declard dead and about 50 more are considered missing. The water has not entered our house. But the yards were filled with water at the height of the storm and rains.

This has been a long story. I just wanted to share with you our story and to assure you that we are relatively OK.

I do not have the email addresses of most of my nephews and nieces. So, be the ones to forward to them to inform them of our story here in Bulacan.

Love to all.

Loloy"

Dangal ng Lipi

2009-09-20T02:31:00.000-07:00

September 14 was the big day for the 2009 Dangal ng Lipi (DnL) awardees. My wife and I arrived at about 5:50 PM at the Bulacan Provincial Capitol Gymnasium, where the Awards Night was to be held. I was immediately separated from my wife and ushered into a waiting room, where 3 other awardees were already waiting. One by one the awardees arrived. We were served finger food and later on, pre-set-plate dinner. We had additional plates of lechon and veggies placed at the center of the table. After a short while, all the 10 awardees had already arrived and were advised to eat their dinner before the start of the program. Dinner was also served for all the people in the gymnasium/auditorium.

After we were done with dinner, some of the DnL secretariat members came in to inform us that the program would start at any time. We were asked to proceed to the entrance of the auditorium (where the big framed and glassed tarpaulins of the pictures of the individual awardees greeted everybody attending the Awards Night) and to arrange ourselves using a pre-determined order. My assigned "guide" approached me and told me that she would provide me a cue every time it was necessary for me to do something as part of the program.

I was the first one to be called and together with my guide, I went inside the auditorium for the start of the processional. My guide ushered me to the platform; this was also done by the other guides to their assigned awardees. Then, when we were all up on the stage, a group of young people in native costumes came to serenade and dance before us; and later on, placed the sampaguita garlands on us. After that number, we were ushered to our assigned seats, which was immediately in front of the stage but with half of us on each side.

The Opening Remarks was delivered by Board Member Ernesto Sulit, who is the Chairman of the Provincial Board's Committee on Tourism, Culture and Arts. This was followed by the report of the Chairperson of the 2009 Dangal ng Lipi Selection Committee, Dr. Elsie Jimenez, on the process and criteria of the screening and selection of the Gawad Dangal ng Lipi 2009. After the said addresses, there was a colorful and humorous Broadway-type play entitled, "Walang Sugat". It was very nice!

This was followed by the very inspiring message of the Provincial Governor, Hon. Jonjon Mendoza; and the keynote speech of the Guest of Honor, Undersec. Ma. Lorelie Fajardo (Deputy Presidential Spokesperson and Presidential Assistant for Central Luzon).

Then the awarding...Using the same sequence as when we came into the auditorium, I was called first upstage. I was initially ushered to the center-front of the stage. In the meantime, while the citation was being read, the awarding group composed of Dr. Jimenez, Gov. Mendoza, and Usec. Fajardo prepared - with the assistance of members of the secretariat - the items to be given as part of the awards (medal, plaque and trophy). The citation (the same one that appears on the plaque) summarized the accomplishments of the awardee that merited the giving of the award.

Usec Fajardo placed the looped ribbon with a DnL medal on me (like the hooding rites in a graduation), Gov. Mendoza handed to me the plaque, and BM Sulit and Dr. Jimenez gave me the trophy. Then, we had photo ops with the awarding group, and the awarding group together with the provincial board members. This was followed by photo ops with my family and associates, and the mayor of Guiguinto. This was done one by one for all the awardees. It was a great moment for me.

After the whole awarding rites were done, a representative of the awardees delivered the awardees' response. The response was delivered in straight "Wikang Pambansa" or Pilipino by Dr. Clarita Carillo, the awardee for Education. She spoke with great clarity and purpose. It was a good one! All the speakers spoke almost completely in Pilipino.

After her speech, all the awardees were ushered back to the stage, where they stood at assigned places on the platform. I was situated at the front-most, left-side. Then the "awit ng Dakilang Bulakenyo" was played, balloons were released, confetti "rained" on the awardees on the stage, and a long cloth was unfurled from the farther-side of the center of the stage to the floor on the auditorium. While at the same time, the people in the audience were clapping their hands vigorously and continually until this part of the ceremony ended.

I had such great emotion in me. It is very difficult to describe the feeling I had during that time. I thought of my late parents (papa and mama) and my family; this was a day for them. I knew I was very close to the point of crying; but I was able to control my emotion. Some of my co-awardees were teary-eyed. This part of the ceremony was very overwhelming. At that moment, I wanted to savor the once-in-a-lifetime experience of "soaring like eagles" with the best and accomplished people who have "dugong Bulakenyo" and also to declare to the world that I, a resident of this province for almost 35 years ago, am a proud Bulakenyo.

The Awards Night was well-planned, organized and attended. The organizers and the secretariat deserve a big congratulation. The organizers considered all the details, coordinated everything properly and executed their plan to the best of their ability. It was a night to remember for me and the other awardees.

Mabuhay ang Bagong Bulakenyo!

Forthcoming Speaking Assignments

2009-09-20T01:36:00.000-07:00

In the coming days, I will be tied-up with some speaking assignments and other commitments. I had been quite busy for some time now. But I am not complaining for I enjoy enormously what I am doing.

In the morning of September 26, I will be the speaker for a seminar being organized by the Baliuag University-Business Administration and Accountancy Students Association (BAASA) for our College's sophomores. The seminar is on time management and entitled, "Taking the Pressure Out of Deadlines." I also plan to include tips on how to study effectively based on research work I did among students at BU during the past years.

In the afternoon of the same day, I will be lecturing on Motivation to the Human Behavior in Organization (HBO) class of the BU MBA Program. This topic has been of great interest to me for some time now and on which, I have read extensively to satisfy the interest.

On September 30, I will be one of two speakers during the JPMAP Bulacan Student Congress 2009 that will be held at the Club Royale, City of Malolos. My assigned topic is Leadership Excellence. The other speaker, a popular author, will talk about patriotism.

I am also presently reviewing/editing two research work I had previously conducted at BU for possible publication in one of our university's journals.

Gawad Dangal ng Lipi (ng Bulakenyo)

2009-09-09T16:20:00.000-07:00

Last Sunday, I received a letter from the Office of the Provincial Governor of Bulacan (Gov. Jonjon R. Mendoza) that I was chosen to be one of the recipients of the 2009 Gawad Dangal ng Lipi (GDnL), which will be awarded on September 14 during the Gawad Dangal ng Lipi Night to be held at the Provincial Capitol Gymnasium.

Part of the letter says, "Ito ang pinakamataas na karangalang ipinagkakaloob ng Pamahalaang Panlalawigan ng Bulacan sa mga may dugong Bulakenyong naging katangi-tangi sa larangang kanilang ginagalawan."

I was teary-eyed after reading this part.

In June, right after the PRC Outstanding Professional Awards, I was informed by the BCCI Exec. Director Mara Bautista that Chairman Tony Tengco and President Violy Luna of the Bulacan Chamber of Commerce and Industry (BCCI) had approved my nomination to the GDnL (Professional Category) and that they needed to get some information from me. I sent my resume and other supporting documents.

In August, I was told by the Chair of our Business Administration Department that she was interviewed by a GDnL staff. The same person called our residence and talked to my daughter, Evette.

During the last half of August and early part of September, we did not really know if I was still in contention as we did not receive any word on the selection's development from the GDnL secretariat. Somebody called me on Friday (Sept. 4) at my office in Baliuag University and asked if they could take pictures of me and my family. I told them it was extremely difficult to bring my children together during weekdays because they are all working in Metro Manila.

I asked if I could give them instead a family picture that was taken earlier. I also asked about the status of the selection process. I was told that I was one of the finalists but that the final list of awardees remains to be confidential. I decided to go to the BCCI Office (located near the Capitol Building) in the afternoon of the same day so that I could give the pictures without any delay knowing that the following days are weekend-days (no work) and giving the pictures early part of the following week might be too late. I thought of retrieving pictures of my family that had been posted in the internet and have them burnt into a CD (the GDnL staff I talked to suggested that the pictures be in a CD). BCCI had the CD delivered to a designated office at the Capitol.

Then Sunday came. I was at school (Baliuag University) in the afternoon to give final exams for my MBA class (Operations Management) when a group of men from the Provincial Capitol came to the house to deliver the letter coming from the Governor's Office. When I arrived home, everybody in the house was congratulating me because the men had informed the person left in the house (Girlie) about the purpose of their unannounced visit.

It is great to receive another prestigious award. More so, because the award is given by the provincial government of my adopted province in recognition of my lifetime accomplishments not only with the companies that I worked for but in relation to the community.

To God be the glory!

Seminar on 5S for the CBAA Freshmen

2009-09-09T15:35:00.000-07:00

Yesterday, I was the speaker of the Seminar on 5S Good Housekeeping, which was organized by the Business Administration and Accountancy Students Association (BAASA) of the College of Business Administration and Accountancy (CBAA) of the Baliuag University. The seminar was organized for all the freshmen of the CBAA.

I had conducted several seminars on 5S both in manufacturing plants and in the academe. The response from the students based on their comments during the Q and A portion was very encouraging.

Before the seminar, the people from the Provincial Capitol in Malolos who are in-charge in taking pictures of the Dangal ng Lipi awardees arrived and took pictures of me in the office and with the seminar setting as background.

Personal Ways that Help Enhance Organizational Performance

2009-09-09T15:34:00.000-07:00

Tuesday, September 08, 2009

MANAGING FOR SOCIETY
By Evelio G. Echavez
Personal ways that help enhance organizational performance

There is stiff competition everywhere for businesses today, making survival and profitability a constant challenge. Many management scholars, such as Jeffrey Pfeffer of Stanford University, say that the effective management of people has become more important in increasing organizational performance than the traditional sources of success, such as process technology and protected markets. Pfeffer says that the old sources of competitive advantage can still provide competitive leverage, but to a lesser degree now than in the past. This new source of competitive advantage can be obtained by the right selection and hiring of employees; training and developing them; and providing the right environment for the employees to participate in the operational decisions required in their workplace.

On the other hand, there are ways by which employees are able to help in improving the performance of their respective units. Employers today are interested in getting new hires that have the right attitude and who have the “right fit” in relation to their organizations’ cultures. John Maxwell, a well-known author and motivational speaker, and another author, Keith Harrell, express this well in their books, The Winning Attitude: Your Key to Personal Success and Attitude is Everything, respectively.

Some years ago, while I was working as an executive of a manufacturing company in the South, I watched with great interest how a young engineer progressed in the organization. He grew up and studied in one of the best universities in Metro Manila. He worked without complaining and joined clean-up jobs as part of our company’s good housekeeping program that required everybody involved in “getting dirty.” He provided valuable suggestions and was able to maintain good interpersonal relations with his colleagues. He enjoyed work and learned a lot wherever he was assigned as a cadet engineer. He grew very fast in the organization and was even sent abroad by the company to take up graduate studies in engineering. He rose from the ranks quicker than most because he had the right attitude.

I was assigned as head of operations in another company, where the attitudes of the workforce and that of the management group were so negative. The two groups were not talking to each other and there was complete distrust. We were able to bring the group together, remove the distrust and eventually changed the attitude of the two groups. As a result, we were able to break production records “left and right.” Where previously, it was not possible to have a meeting without having heated arguments, we found our meetings to be interesting and productive.

We even had dinner-cum-socialization among people who previously did not want to be together. The success was attained because everybody changed his attitude from a negative one to a positive and winning one.

Another way is making work enjoyable. Some people do not enjoy their work; they dread getting into their workplace. They think that work is dry, scary and/or boring. I had a boss before who told us that he could not anymore distinguish the fun he experienced when playing tennis and when working; he enjoyed both. One of the principles in Total Quality Control, as popularized by the Japanese, is the elimination of fear. Bosses should eliminate practices that bring fear among workers, such as excessive displays of anger. Employees are more productive when they are able to give suggestions and do their work without fear of being subjected to embarrassment. Some companies even tolerate mistakes for as long as the organization benefits from them through the lessons learned.

Employees should not leave everything to the company in improving organizational performance but should contribute in their own ways by choosing the right attitude, making work enjoyable and eliminating unnecessary fear from the workplace.

Seminars I conducted recently

2009-08-15T16:44:00.002-07:00

Recently, I conducted two seminars: (1)Action Research on August 7 for the Business Administration and Accountancy Students Association (BAASA) students of the Baliuag University, and (2) Seminar on Managing Change on August 8 for the management and employees of Jockers Foods Industries at their Pulilan, Bulacan plant compound.

I conducted Action Research previously for the faculty members and selected students of the College of Business Administration during the summer of 2009. But this time, I modified the contents of the seminar to suit the needs of business practitioners. During the seminar, I said that I had to make-do with modifying the contents of the seminar because I could not find a book on Action Research to be used by business practitioners. But after the seminar, I was able to read an article in the Net about Action Research as applied to businesses. So, it means it can be done as I had always been advocating.

The other seminar, Managing Change, was participated in by about 140 people. It was a good one. This seminar was intended to jump-start the plan of the company to install a 5S Good Housekeeping Program. After this seminar, the company will conduct the 5S Seminar for all its employees.

Using feedback to satisfy customers

2009-08-15T06:40:00.000-07:00

Tuesday, August 11, 2009

MANAGING FOR SOCIETY
By Evelio G. Echavez
Using feedback to satisfy customers

Nowadays, businesses realize the importance of having satisfied customers. There are several programs and processes being employed by companies to handle their customer relations. Some call it Customer Relations Management, or CRM solutions; others call it Strategic Customer Care, while others just simply call it Customer Service.

Companies that provide good customer service make it a point to consult their customers. They do this by having discussions with and seeking advice and information from their customers, and taking the views of their customers into consideration when making decisions about changing service practices.

To improve business and service practices, companies prefer to obtain actionable feedback from their customers. These usually are taken from answers of customers to the following questions: What do we do badly? What do we need to change?

Another way of getting feedback from customers is through customer complaints. Because complaints are useful in pinpointing areas that need improvement, businesses must make it easy for customers to complain. As soon as a customer mentions that he is unhappy about some aspect of the company’s service or business performance, the company must deal with it immediately.

Businesses should take advantage of resolving complaints quickly because, besides being given “for free,” this gives a 95-percent-plus probability that customers will return to do business with the company if a service is done to their satisfaction.

On the other hand, research shows that if the customers are unhappy with the service, the chance of them returning becomes slim. Worse, unhappy customers bring with them the potential damage of bad word-of-mouth advertising. There is a popular saying that expresses this very well: “A satisfied customer will tell 3 people; a dissatisfied customer will tell 3,000.”

When I was senior vice president for operations of a cement company, I would visit our major customers—which were cement dealers and construction companies—to ask them if they had any complaints and how we might be able to improve the quality of our product and services. It was very flattering for them to have a very senior company official visit them, the construction projects and other end-users.

After the visit, I would meet with the concerned marketing and operations people to quickly address complaints and suggestions that I gathered.

Complaints sometimes arise because of a difference in perception. The customer’s perception is 100 percent correct as it is based on how he sees things. And this is the basis of the old adage, “the customer is always right.” If, indeed, there is a gap between what the customer perceives and what you know to be the facts about your business, then it is incumbent upon you to properly inform your customer.

When you get inside many fast food restaurants or stores in malls, you hear greetings from the security guard, the sales people and even the cleaners right away. There are restaurants where even the kitchen people say aloud some greetings to welcome a customer. This is good. But besides being courteous, employees should be helpful to customers.

I see this in the gas station where I go to refill my vehicle. Whenever a vehicle arrives for refilling at the gas station, the attendants would greet and welcome the customer, direct the customer where to bring the vehicle, and gives reminders. Then after starting the pump, the attendant would ask if the customer wants the car’s windshield to be cleaned, and the water and oil level, and tires’ inflation to be checked. If the customer says “yes” to any of the questions, the attendant immediately takes appropriate action.

As far as improving customer service is concerned, there is no substitute to feedback.

The author is a DBA student of De La Salle University’s Ramon V. Del Rosario Sr. Graduate School of Business. He is vice president for Training and Education of the Bulacan Chamber of Commerce and Industry. He accepts comments at egechavez@yahoo.com.

Providing Good Customer Service

2009-07-13T17:28:00.000-07:00

The Manila Times

Tuesday, July 14, 2009
MANAGING FOR SOCIETY
By Evelio G. Echavez

Providing Good Customer Service

I notice that there are businesses whose services I regularly patronize. For example, I refill my vehicle at the same gas station, go to the same service shop every time my vehicle is due for regular preventive maintenance, or eat in only a few of the many fast food chains. The reason is because I find their customer service to be good.

J. Mercer in her book, Great Customer Service, suggests guiding rules in providing good customer service and the first one is to provide high standards of service. This ensures that customers will be happy with the services that a firm offers. Nowadays, although a large number of people have relatively higher income, the people of the present generation have become “time poor”—this is in spite of the many instant things that we enjoy, like instant coffee, instant snacks and food, and instant communication through our gadgets. Therefore, businesses should not only show courtesy and provide needed information to customers, but also provide prompt service and convenience to them. Businesses should also act positively on customer complaints to provide good customer service.

Recently, I was rushing to an appointment with a daughter behind the wheel. We decided to order our food through a drive-thru counter to save on time. At the order window, the counter lady asked if we could wait for three minutes. My daughter told me that we should leave right away and order our food elsewhere because she said that just a couple of days ago, she, with other family members, was told the same thing, but they had to wait for more than 10 minutes. And to be able to get the food they ordered, somebody had to go down (as they had parked the vehicle due to the long wait) to follow-up their order. Customers should be told exactly how long they have to wait and company employees should make sure that they deliver on what they say. Because people are time poor, many of them cannot wait long for a service to be delivered. Based on this, businesses should see to it that service is provided promptly and people do not have to stay in a queue for a long time.

A friend of mine shared a recent experience regarding a service warranty offered by an electronic store. After two weeks from purchase, his new printer broke down. He brought back the unit to the store and was told that it was necessary for him to bring the official receipt or, otherwise, the repair would not start. He said that because of haste, what he was able to bring was the credit card transaction slip. He suggested that since the credit card slip was good evidence of the purchase, the store personnel could get a reproduced copy of the receipt from their duplicate files of the receipts. He explained that he seldom came to Manila but he needed the printer to be put back in good order soon. The store personnel told him that it was the official policy of the store that the purchaser must bring the copy of the official receipt.

The standard line of “because it is the official policy” often creates a difficult customer even from customers who ordinarily are cool and good-natured. This should be avoided. What the customer needs is the willingness of the business’ employees to extend help to a customer who has a problem.

Seminar on Good Customer Service

2009-06-18T05:49:00.000-07:00

On June 26, I will be the speaker of the seminar, "Good Customer Service", which the CBAA and the School of Graduate Studies and Continuing Education (SGSCE) will be conducting for its Industry Partners. To prepare for this seminar, I must have read about 6 books on the following topics: Customer Service Quality, Customer Relations Management and Strategic Customer Care.

I have conducted seminars/talks on various topics already. To prepare for these seminars, I rely heavily on my past experiences and the use of many books on the subject matter. My academic training (MBA and completed-academic-requirements of the DBA)of course helps me also. Very often, I read and "digest" 4-7 books for each seminar that I conduct.

We expect about 70 to 100 people attending this seminar. I have prepared for this seminar for more than a month already.

Seminar on Climate Change

2009-06-18T05:31:00.000-07:00

Today, I was the resource speaker of the seminar entitled "Climate Change". The seminar was attended by 60 to 70 students of the College of Business Administration and Accountancy (CBAA) of the Baliuag University.

The seminar was sponsored by the Business Administration and Accountancy Students Association (BAASA) and the Students in Free Enterprise (SIFE); and was intentionally held as a part of the College's celebration for my having been chosen as Outstanding Professional (in the category of Chemical Engineering) by the Professional Regulation Commission (PRC).

The seminar started at about 2:00PM and ended at 4:30PM. We all had fun together aside from the new knowledge that the students obtained from their attendance/participation in the seminar.

Tomorrow, I will be receiving my trophy from PRC at the Manila Hotel Pavilion. My entire family will be in attendance and so with 7 of my colleagues from the CBAA.

My Various Areas of Interest

2009-06-11T17:49:00.000-07:00

I am a man of many interests; and my interests are quite varied. When I was in high school, I was interested in Mathematics, Science, History, and Religion. I continue to be interested in all the aforementioned topics. My love for Mathematics and Science helped a lot when I studied chemical engineering in college. I excelled in subjects in those areas when I was in college.

In fact, I got very interested in Nuclear Chemistry at that time that I would go to the United States Information Service (USIS) Library at Colon, Cebu City, Philippines to be able to read up on the subject and borrow some books. I remember writing reaction equations on nuclear fission and fusion on pieces of paper and taped the paper-pieces on the wall next to my bed in my boarding house. When I completed engineering, I actually thought of becoming a design engineer because I just simply loved working with numbers.

I continue to love anything about History. In fact, a lot of my hobbies are somewhat related to this interest, such as stamp, bill, coin and history book collections; and interest in antiques and collectibles. I also love to visit museums. In my travels abroad, I had gone to many museums like the Tokyo Museum, The Melbourne Museum, The Louvre in Paris, Istanbul Museum, the Sistene Chapel (a museum) in the Vatican, Field Museum in Chicago, California State Museum at Sacramento and a lot more.

I consider myself a buff of the American Civil War (ACW). I have about 100 volumes of books on this topic alone. I even subscribed at one time to a magazine that specialized on the American Civil War. Whenever we go visiting in the US, my wife and I try to put in some time to visit known ACW sites. With the help of my brother (Eddie Echavez who resides with his family at Morton Grove, IL), we had visited the vast memorial site and the old residence of Abe Lincoln at Springfield, IL; the place of Gen. Ulysses Grant at Galena, IL. and the great ACW battlefield at Gettysburg, PA (which has a nice museum). I admire Abraham Lincoln, the president during the years of the ACW.

My wife and I also had visited the Confederate State of America's presidential mansion and the Confederate cemetery at Richmond, VA, and had a guided tour of the White House (Washington, DC), which is "full of history", and the home and gravesite of the first US president, George Washington.

I also had studied intently the history of the Philippines. I am an avid admirer of Jose Rizal (our national hero). I have a collection of books on Rizal. I like books written by Ambeth Ocampo, a Filipino historian, who had written about personalities involved in the struggle against foreign oppression during the late 19th century. I had seen the monument of Rizal in Madrid, Spain and his bust (statue) in Acapulco, Mexico. I am also interested in American and European History. I have visited a lot of historical sites in the US and Europe.

I love to read the Holy Bible and study biblical teachings and principles. I also study teachings of other religions. I have visited important Christian places such as Israel (had a five-day tour there) and Rome. I had also been to the Lourdes Shrine in France; Guadalupe Shrine in Mexico and had toured places where Christianity started in Asia Minor (Turkey). I completed a one-year study (of two year masters program) at a known Evangelical Christian seminary in Metro Manila.

And I also have areas of interest in other fields. In Management, I love Strategic Management (SM), Operations and Production Management (OPM), and Strategic Human Resource Management (HRM). I am a strong advocate of Total Quality Management (TQM), Total Environmental Quality Management (TEQM), Total Productive Maintenance (TPM) and Strategic Customer Care. I like HRM that leverages the manpower resources of a company to provide the competitive edge, and the special topics of Organizational Culture and Culture Change Management.

I also follow developments on Climate Change/Global Warming and Higher Education. As an academic, I conduct research work on students' study habits, factors incoming college students consider as important on their selection of a college or university to enroll in, academe-industry linkage, entrepreneurship and business, environmental management and quality of education. I also conduct seminars, workshops and/or lectures on various topics such as leadership, TQM and sub-topics, climate change, research, strategic management and specific needs of students particularly higher-year students to prepare them for the world-of-work.

Engineers' role in combating climate change

2009-05-11T22:03:00.000-07:00

MANAGING FOR SOCIETY
By Evelio G. Echavez
Engineers’ role in
combating climate change

Being an academician, I was happy to have been invited to speak on one of my areas of interest, climate change, during the First Engineering Summit that was held at the SMX Convention (Mall of Asia Complex) early this year. The said summit, which was attended by 1000 participants, was organized by the Philippine Technological Council, the umbrella organization of the 12 engineering associations recognized by the Professional Regulatory Commission.

The occurrence of almost daily rains at the peak of summer in the Philippines has caught a lot of people flat-footed. The cycles of agricultural crops (e.g., water melon and tobacco) and the construction of infrastructure and houses that are timed during the summer months have all been adversely affected. And incredible as it seems, Emong, a tropical typhoon hit the country only last week during what is supposed to be the driest period of the year in the country. The damage caused by Katrina, a very powerful hurricane that hit New Orleans some years ago, haunted the administration of former US President George Bush up to the end of his second term. The frequent floods in mainland Asia and the droughts that continue to bedevil African countries are some stark reminders that climate change is real and is already causing problems to our world today.

Engineers can play a very important role in combating climate change because many of them are involved in the design and construction of buildings, offices, factories and other facilities; industrial plant operations; extraction and utilization of fossil fuels and minerals; power generation and distribution; selection and design of equipment and processes to be used by industry; and many other activities that are based on science and technology. The aim is to reduce the amount of greenhouse gases (such as carbon dioxide, methane, and nitrous oxide). Engineers, many of whom are holding managerial or executive positions, can greatly influence the extent of reducing the amount of greenhouse gases emission by selecting energy-efficient equipment and processes; upgrading old plants and equipment; and/or modifying processes so that they become more energy-efficient; and designing and constructing plants, equipment and facilities in such a way that they are energy-efficient.

They can also make sure that the following programs and/or systems are in place in their organizations: a functioning environmental management system, an effective energy conservation program, a benchmarking program to adopt best practices related to the reduction of energy/ power use , and the inclusion of improvement targets in the annual planning for reducing energy/ power use. The engineers can also recommend to management the use of alternative power/energy when it becomes available, the installation of alternative power capacity that do not generate greenhouse gases (like wind and solar power), and the avoidance of activities that would entail the use of more power/energy such as company outing to far-flung places that would require the employees to travel great distances and involve the use of a high amount of power. Moreover, the engineers can recommend a massive tree-planting activity and for the organization to spearhead in informing and training employees and people in the community on how they can help in abating climate change.

The climate change crisis has come to a head that it is highly necessary that we examine and reevaluate how we do things to contribute to the abatement, if not elimination, of harmful activities that degrade the environment.

The author is a Doctor of Business Administration student of the De La Salle University’s Ramon V. Del Rosario Sr. Graduate School of Business. He is Dean of the College of Business Administration of Baliuag University at Baliuag, Bulacan. He welcomes comments at egechavez@yahoo.com.

Abstract of a Research Work Co-Authored by EG Echavez

2009-03-13T00:47:00.000-07:00

Title: The attributes of higher education institution (HEI) considered important by high school graduates in selecting a HEI to enroll in.

Authors: Evelio G. Echavez and Myra P. Gonzales (July 2008)

Abstract: With the increasing number of institutions of higher learning competing for enrollment among high school graduates, many of these institutions have implemented promotion campaigns, strategies and programs for the purpose of attracting students to enroll in their schools. Since most of the new enrollees in higher education institutions, whether private or public, are fresh high school graduates, it would be good to know what attributes of a higher education institution they consider important. This study shows that the fresh high school graduates who enrolled as college freshmen at Baliuag University say that it is important for a higher education institution to produce good graduates as a result of quality education and to have its own campus that is clean and well-maintained, together with the availability of improved facilities.

Improving the Quality of Education

2009-03-10T01:21:00.000-07:00

Managing for Society
The Manila Times
March 10, 2009

We oftentimes hear or read commentaries about the deterioration of the quality of education in our country and the mismatch between the kind of graduates being produced by higher education institutions (HEIs) and the needs of industry. I read updates on higher education in the US everyday and I know that these problems are not unique to our country. Having taken up graduate studies in two of our best universities and attended an executive program in one of the business schools in the US, I am witness to the important role that HEIs play in national development.

The various accrediting bodies affiliated with the Federation of Accrediting Agencies of the Philippines (FAAP) help in providing the motivation and guidelines in improving and sustaining quality education of HEIs. Accreditation in HEIs is akin to the various ISO certifications that businesses voluntarily undertake. Similar to the ISO certification which is voluntary, the system of HEI accreditation is also voluntary. This is the reason why, while the more progressive and quality-conscious HEIs have already attained higher level status of accreditation, others have not started at all. By joining an accreditation process—with the accrediting body serving as third party—an HEI is required to improve all aspects of its operations, including library resources and development of faculty, among others. The college of which I am dean has attained Level III Re-accredited Status with the Philippine Association of Colleges and Universities—Commission on Accreditation (PACUCOA) for its Business Administration Programs.

HEIs, nowadays, are expected to provide quality instruction, conduct relevant research, and be involved in community outreach programs. First, HEIs are expected to deliver quality instruction to provide their graduates with proper competence, skills and values. To ensure that we fulfill this in our university, we employ faculty members with the right qualifications, and design a faculty development program for them to continue improving their teaching competence and abilities as well as knowledge in their areas of specialization. Likewise, we have forged a strong Industry-Academe Linkage Program with our industry partners through the signing of Memorandum of Agreement (MOA) to ensure that they provide our students with the proper exposure in our students’ practicum. We also request some of them to actively participate in consultation meetings called to review curricula and/or course syllabi. On the other hand, we provide training seminars for their managers, supervisors and other staff on important management or business topics, provide consultancy for them whenever they need advice, and conduct research for them upon their request. Using the aforesaid MOA and proper matching between our students’ qualification and our partners’ line of business, we avoid having the possibility of our students going through an inadequate or ineffective on-the-job-training.

Second, in order to expand knowledge and to enrich the lessons that they teach in the classrooms, faculty members are encouraged to conduct research work and make case studies particularly on the problems besetting the business people in our area of service. We use the results of our research in enhancing the type and quality of the service that we provide industry and the community. And lastly, we also involve our students in our community outreach programs, where they are able to use their learning in school to teach/coach people in the community some livelihood programs and how to run their business. This enhances the values and the social responsibility consciousness of our students.

HEIs and the business community should continue to forge a conscious effort to cooperate with each other and to coordinate initiatives so that the end-result of the HEIs’ efforts—the graduates—will find acceptance in worthwhile and productive jobs in the workplace after leaving the academe’s portals.

The urgent need to combat climate change (part 2)

2009-02-01T07:14:00.000-08:00

Tuesday, January 20, 2009

MANAGING FOR SOCIETY, THE MANILA TIMES
BY EVELIO G. ECHAVEZ
The urgent need to combat climate change (Part 2)

(Continued from last week)

Some national leaders of developed and fast developing countries are afraid that big cuts in the greenhouse gases’ emission would cause reduction in their respective countries’ gross domestic product (GDP ) due to reduced production and the high-cost of acquiring green technology. This is expected to lead to reduction in the quality of life of their citizens.

Developing countries contend that the developed countries should curtail their greenhouse emissions because they have contributed much more to the global warming phenomenon over the years. Some developed countries, particularly the US, would like high-growth countries, such as China and India, to also make commitments because their emission levels at the present time are simply high. This is where the problem lies in getting an agreement to which everybody commits.

During the last US presidential elections, the issues of climate change and the use of alternative energy were debated on by the two presidential candidates, Barack Obama and John McCain, highlighting their primacy and importance.

A man who made his wealth from the oil business, T. Boone Pickens came up with what is known as the Pickens Plan on how America will reduce its dependency on oil coming from the Middle East. While the presidential campaign was going on, he bought TV time to promote the Pickens Plan. Part of his plan is to maximize the use of wind power, which we can also adopt in this country more aggressively. Power is generated using wind mills/turbines without the emission of greenhouse gases. A 2005 Stanford University study showed that there is enough wind power worldwide to satisfy global demand 7 times over—even if only 20% of wind power is captured.

Recently, RICOH, a company that has a big advertising board in Times Square in New York City, installed a wind turbine that supplies the power of the said advertising board. Along the highway southeast of San Francisco in California, there are several giant wind mills. In the Philippines, there is already a wind farm in the Ilocos region and several other areas in the different islands where the wind is abundant and strong for a long period in a year, are being considered as possible sites.

Geothermal power is another way the Philippines can generate power without producing greenhouse gases. Of the “smaller” and developing countries, Iceland leads in the use of geothermal power at 5,603 gigawatt-hours-a-year (GWh/yr) as of 2000 (compared with the Philippines’ 7 GWh/yr). We also lagged behind Indonesia, which has 12 GWh/yr. With the presence of volcanoes and hot springs in our country as a plus factor, and the availability of competent technical people, geothermal is definitely an option which can still be expanded.

We can contribute in combating climate change in our own small way by doing energy conservation practices. When we use power unnecessarily, the power generating companies burn more fuel resulting in the production of more greenhouse gases. We should encourage people to take the mass-transport system rather than use their vehicles especially if they take the trip alone. There is thus a challenge for the government to speed up building the light and regular railway systems, particularly in Metro Manila, which has slowed down of late.

Use of car pools, use of bicycles in some areas (which may be encouraged by building bicycle lanes especially in Metro Manila) and use of air-con units judiciously are other things we can personally implement. The government should also provide incentives to companies that are willing to invest in the generation of clean power, such as wind power. In the end, the Lord’s admonition for man to have dominion of the earth also has the corresponding responsibility for man to be accountable for its growth and sustainability.

Education: The great equalizer

2009-02-01T07:02:00.000-08:00

Tuesday, November 11, 2008

MANAGING FOR SOCIETY
By Evelio G. Echavez
Education: The great equalizer

Being in the academe for more than 2 years now has given me the opportunity to interview college students. Whenever possible, I would ask them what they consider as the major problems of the youth today. Many of them would answer that it is the difficulty of getting a good education because of financial problems. I cannot avoid remembering the words of our national hero, Dr. Jose Rizal, who said that “the youth is the fair hope of the Fatherland.” His words are relevant today as they were during his time. If the Philippines have to find progress and prosperity and ensure a bright future for her citizens, she has to make sure that her young people are taken care of in terms of their education and well-being.

The National Artist for Literature Francisco Sionil Jose in a paper he read for the clients of a banking institution said: “some 15 years ago a survey showed that half of all grade school pupils dropped out after grade 5 because they had no money.” They are now our young adults who would have difficulty in finding appropriate jobs. We used to have one of the highest literacy rates in the world. That has changed now. And because many of our young adults cannot find jobs and raise their families properly, the vicious cycle is repeated in the generations of their children and grandchildren . . . unless the present generation is able to do something to arrest it.

While elementary and high school education is free in public schools, college education is a different story. Even in state- and local government-run universities and colleges, students have to pay tuition and other fees. And even if it involves only a few thousand pesos, if one has no money at all, it becomes insurmountable. The financial aid coming from government is simply not enough. It would be good for government agencies involved in the education of our youth to review their programs and find out how they can provide appropriate assistance to a greater number of deserving students.

I have met many successful executives, some of them presidents of big corporations, who came originally from poor families. And yet because of hard work and their having the needed education, they have been able to attain success. Education indeed is the great equalizer. Individuals, businesses and other organizations can help our deserving young people by providing scholarships and other material support for the schools’ operations.

Many years ago, one of my sons suggested that we sponsor the college education of a neighbor’s son whose father wanted him to quit schooling to help the father in raising garden plants for sale. After 5 years of engineering studies in a state university, he first worked as an apprentice abroad then returned to the country and landed a supervisory position in a prestigious company. Now, he works with a large telecommunication company abroad and is helping the family financially and in sending his sibling to college.

Another student was about to stop schooling since the family could no longer afford to support her in her last year of engineering studies because the father fell ill. Now, she is gainfully employed and has been helping her parents financially and in sending her siblings to school.

Both are just two cases of competent students who were given the opportunity to continue their studies through benefactor-provided scholarships. After obtaining their degrees, they are now paying forward their good fortune by helping their families financially and assisting their siblings get proper education as well.

This is one area where the private sector can invest in social responsibility programs which is certain to create a virtuous cycle since proper education is almost always empowering and liberating.

___

Evelio G. Echavez is a student in the Doctor of Business Administration program of the Ramon V. Del Rosario Sr. Graduate School of Business of De La Salle University- Manila and is the Dean of the College of Business Administration and Accountancy of the Baliuag University in Baliuag, Bulacan. He accepts comments at egechavez@yahoo.com.

The urgent need to combat climate change (Part 1)

2009-02-01T07:01:00.001-08:00

Tuesday, January 13, 2009

MANAGING FOR SOCIETY, THE MANILA TIMES
By Evelio G. Echavez
The urgent need to combat climate change (Part 1)

One of the major problems that the world is facing today is climate change, which is a direct effect of global warming. Global warming in turn is caused by the entrapment of the heat rays coming from the sun (that should have been reflected back to space) due to the build-up of carbon gases (that creates a wall or shield) within the earth’s atmosphere. It is generally accepted that the build-up of carbon gases in the atmosphere is caused by man-made activities like the burning of fuels, such as coal and petroleum products; and the denudation of the earth’s forests.

Global warming resulting in climate change, has caused havoc in many places in the world. Among others, hurricanes in the south of the US and neighboring countries have become more frequent and powerful. Some areas in the world are experiencing more rains while others are becoming drier. Global warming has caused the glaciers in some mountains and icebergs to melt, which has caused floods in some places and an increase in sea level. The Philippines is highly vulnerable to the rise of the sea level, being a country of islands.

As the summit of the Creator’s work, man who was created in God’s own image, was endowed with the unique power of reason and will. In the first pages of the first book of the Bible, Genesis, we find that God gave this instruction to mankind: “Be fruitful and multiply, and fill the earth and subdue it” and to “have dominion . . . over all the earth.” Being the only specie on Earth given this mandate, mankind has the unique responsibility to make sure that the Earth will be in proper order. But as we know, over the years, this has not been so. During the last two centuries with the advent of the Industrial Revolution (which entailed the use of various conventional fuels) and the race to attain economic prosperity, the amount of greenhouse gases (mainly carbon dioxide and methane) in the atmosphere increased and the ecology of Planet Earth had greatly suffered.

At the forefront of fighting climate change is the United Nations Framework Convention on Climate Change, which recently concluded a two-week meeting in Poznan, Poland that was intended to launch formal negotiations on a treaty to succeed the Kyoto Protocol. The convention also intends to make progress in helping developing countries, such as the Philippines, cope with the effects of climate change.

While the US has stayed away from ratifying the Kyoto Protocol, the European Union has led the way by agreeing among its 27 member countries to cut carbon emissions by 20 percent come 2020. Australia, which ratified the Kyoto Protocol only last year, is eyeing a reduction of 5 percent to 15 percent for the country by 2020. While the US federal government took a non-participating stand, some of the states like California took an active role in setting targets of reducing greenhouse emissions. Recently, the Iowa Climate Change Advisory Council released a report that a goal of reducing state greenhouse gas emissions by 22 percent come 2020 is achievable. US President-elect Barack Obama has indicated that his administration will play an active role in future negotiations concerning climate change.

(To be continued in next issue)

Management development program (part 2)

2009-02-01T06:34:00.000-08:00

Tuesday, April 29, 2008

MANAGING FOR SOCIETY, THE MANILA TIMES
By Evelio G. Echavez
Management development program II

Business organizations have shifted their strategy from relying too much on factors in the past that provided them with competitive advantage, such as the use of technology and patents, among others, to the strategic use of effective management leadership, and a competent and highly motivated workforce. One of the areas that progressive companies are beginning to pay attention to is management development.

Coaching is a very effective management development technique. It consists of day-to-day feedback, instruction, and advice provided by the employee’s supervisor. In fact, many companies in the US have replaced manager titles with coach titles. Job rotation helps a manager learn and do the work of a manager who handles another function. During my time as an executive in a local cement group, we cross-posted managers to train them to handle other positions and prepare them for greater responsibilities. This was especially true of managers assigned to a specialized field, such as production. We found out that after the cross-posting, the managers were more well-rounded, more willing to cooperate with each other, and more effective in their jobs because they had acquired the knowledge and experience of other functions. Some multinational companies cross-post their managers and executives to their overseas offices to expose them to other cultures and to allow for faster development.

Another technique is to create a position for an individual for training purposes, such as assistant to a vice president. In this position, trainees are allowed access to the different sections and activities of a specific unit, but follow a schedule of what knowledge or competencies they have to learn for a given period. Employees can also be assigned to a task force or committee where they are expected to participate actively and increase their knowledge about work and the company. This method may involve grooming employees to become managers or executives who will be assigned to a task force or committee that is tasked to solve a cross-functional problem or launch a new product.

Mentoring is another method of training managers and executives, and is used more frequently at higher levels of management. In mentoring, an executive who is usually older, has more experience and occupies a higher position takes under his or her wing a younger, less experienced manager or executive. Ask successful CEOs or executives and more often than not, they will tell you that they had mentors who helped them become who they are today.

One of the off-the-job methods is sending managers to outside seminars and school-based management development programs. In the cement group I previously worked for, we sent practically all our managers and superintendents to management development programs conducted regularly by a leading school of management in the country. The group also sent its senior executives to advanced executive programs in the US Promising young engineers and managers took graduate studies here and abroad.

Management development programs enhance the knowledge and competencies of the company’s human resources. In this day and age of computers and technology, human capital is still widely acknowledged as being the best asset of any firm.

Management development program (part 1)

2009-02-01T06:31:00.000-08:00

Tuesday, April 22, 2008

MANAGING FOR SOCIETY, THE MANILA TIMES
By Evelio G. Echavez

Management development program

I have been conducting training programs for many years. While working with a group of companies, I was a faculty member in a general yet comprehensive management course for executives, and in the training of middle management people. Our College, Baliuag University, has partnered with the Bulacan Chapter of the People Management Association of the Philippines (PMAP). Our partnership with this organization has excited me no end because of my work background, related training experience, academic preparation, and my teaching Strategic Human Resource Management. Moreover, I had attended an executive program abroad that had sparked my interest in human resource management.

Jeffrey Pfeffer, the author of the book, Competitive Advantage through People, and one of our professors in the Stanford Executive Program, said that the companies that had the five best performing stocks during a 20-year period relied on how they manage their workforce and not on technology, patents, or strategic position, which used to be major sources of competitive advantage.

Jim Collins, in his book, Good to Great, labeled as Level 5 Leaders CEOs who took over companies that had suffered from declining profits for 15 years and yet had made a remarkable turnaround, with their stocks growing at least three times the growth of the stock market. Without exception, the Level 5 CEOs were able to develop and select CEOs to replace them after they left the scene. The new CEOs were able to sustain the success started by their former bosses.

From the foregoing, it is clear that in today’s competitive world, effective management leadership and a competent and highly motivated workforce have become necessary for companies to survive, grow and become profitable. This is why progressive companies are spending a lot of money in developing their manpower resources. One of the areas that they pay attention to is their manpower development program, where people who have been identified to have potential go through a combination of the following processes: coaching,

job rotation, posting in a staff position for training and development, and assignment to committees and task forces.

If the immediate supervisor is willing to spend time with his or her people, coaching is a very effective manpower development technique. Job rotation helps a manager learn and do the work of a manager who handles another function. It helps them understand the peculiarities of other jobs and appreciate other managers more.

A third process is to create a position, such as a staff assistant of a manager or vice president, to give the trainee access to the different sections and activities of the unit but following a planned training schedule. The manager can also be assigned to a task force or committee where he or she can participate actively and expand his or her knowledge about work and the company.

(Continued next week)

The importance of effective leadership

2009-02-01T06:28:00.001-08:00

Tuesday, August 12, 2008

MANAGING FOR SOCIETY, THE MANILA TIMES
By Evelio G. Echavez
The importance of effective leadership

We have seen how our neighboring countries have overtaken us in terms of economic development in the last few decades. We have heard many times over that in the 1960s, our economy was next only to Japan in Asia but nowadays, while some of the Asian countries have become developed, we have been left sadly behind among the still struggling and developing countries of Asia. Even some countries that were relatively less developed than us in the 1970s and 1980s have posted significant growth with their per capita income now bigger than ours.

And the reason for their progress was the quality of leadership that they enjoyed. Both Singapore and Malaysia, for example attributed their progress to the effective leadership of their former prime ministers, Lee Kuan Yew and Mahathir bin Mohamad, respectively. Both leaders were credited for engineering the rapid growth and modernization of their respective countries. They had great visions for their respective countries. They focused their attention and energies in leading their government and people to realize their visions.

In the business world, Jack Welch, the former chairman and CEO of General Electric and who is considered as the one of the greatest business leaders of modern times comes to mind. Welch, who was at the helm of GE for 20 years, was mainly attributed towards increasing the market value of GE by 40 times. When he took over the reins of GE, he told the executives of the 350 businesses under GE that if they were not number 1 or 2 in the industry, then they should sell or close the business. He also made the Work-out Program popular. This is a practice where the workers are cloistered together for a couple of days in order for them to think of problems in their workplaces and their suggestions/solutions for the purpose of systematically harnessing the creativity, knowledge and cooperation of the workforce.

Lee Iacocca, the former CEO of Chrysler Corporation, is another successful business leader who was credited in saving Chrysler from going under. In order to put the company in the black, he sacrificed a lot even to the extent of reducing his salary to $1 a year. When he was the CEO of Ford, Iacocca was very vocal in his opposition to government’s involvement in business. But at the time he was in Chrysler, which was then facing bankruptcy, he decided to go to government to seek for help.

There are basic differences between what a manager/executive and a leader does. Managers are focused on making sure that the systems and procedures, budgets and schedules, structures and controls, and the basic management functions are followed. Management produces predictability, consistency, and control. It focuses on restraining, maintaining, or conforming activities.

Leadership, on the other hand, involves creating a compelling vision that brings the people and the organization to a higher level of performance and development. This entails inspiring and empowering the people to do greater things and questioning the status quo for the purpose of further improving performance. Nowadays it is important for managers/executives to not just be doing management functions well but to become effective leaders as well.

It is a challenge for institutions of higher learning to help business and organization leaders improve their leadership abilities. Beyond gaining knowledge and competencies in the traditional functional areas of management, effective leadership, mentoring, coaching and counseling, visioning and execution, character and ethics are some critical areas of competencies that leaders should possess.

Climate change: How we can help abate it

2009-02-01T06:25:00.001-08:00

Tuesday, January 22, 2008

MANAGING FOR SOCIETY, THE MANILA TIMES
By Evelio G. Echavez
Climate change: How we can help abate it

(Continued from last week)

The Intergovernmental Panel on Climate Change (IPCC), in its Fourth Assessment Report (released in 2007) concludes that the “warming of the climate system is unequivocal, as is now evident from observations of increases in global average air and ocean temperatures, widespread melting of snow and ice, and rising global average sea level.” It further reports that the temperature change at the turn of this century is projected to increase by 1.1-6.4 C with a rise in sea level of 18-59 centimeters relative to 1980-1999 levels.

As previously mentioned, this is caused by the accumulation of greenhouse gases (GHG) in the Earth’s atmosphere that is causing sunlight, that is reflected by the Earth’s surface, to be reflected back to Earth causing global warming. The major source of GHG is carbon dioxide from the burning of fossil fuels. Because of global warming, the glaciers and ice sheets in the coldest parts of the world are melting, causing the sea levels to rise. The temperature increase also heats the ocean waters contributing to the increase in sea levels and the incidence of more powerful typhoons and hurricanes. The global warming also has caused heat waves, droughts in some areas of the world while other parts of the world are experiencing severe rains and floods.

The Philippines is exposed to the effects of super typhoons, which are expected to become even more powerful in the coming years as a result of the warmer ocean water. The increase in sea levels will endanger the inhabitants of coastal towns causing massive dislocation, migration, loss of livelihood, reduction in agricultural and fisheries outputs, and health problems.

What measures should we take? We have to do our share in reducing carbon dioxide emissions by “cleaning-up” our factories and transportation system. The smoke-belching campaign of government has not been found effective with many vehicles still plying our streets emitting a lot of black smoke. We also have to adopt power-generation technologies that do not add to GHG accumulation like solar, wind, hydropower and geothermal.

We may have to require owners or designers of new buildings and factories to use self-generated power that does not use fossil fuels, like solar panels and wind turbines as part of their total power requirement. Owners of old buildings and factories may have to retrofit their electrical and power systems so that said systems become more power-efficient. We have to make efficient use of power and energy in our homes, offices and everywhere. We should encourage people to use our mass-transit system or have carpools and to use fuel-efficient vehicles.

We need to protect our remaining forests that help in absorbing part of the carbon dioxide in the atmosphere. CO2 has an estimated atmospheric lifetime of 50 to 200 years. We should also mobilize people to plant trees to create additional capacities for CO2 absorption. We should also control population growth. A bigger population will require more houses, buildings, food, power usage, etc. which directly contribute to GHG accumulation.

As an educator, I suggest that climate change, its consequences and mitigation and adaptation measures be taught at the college level as a separate subject. Higher education institutions should also be encouraged to promote environmental protection practices as their community extension programs to further help in the fight against global warming.

Global warming: Its significance to us

2009-02-01T06:23:00.001-08:00

Tuesday, January 15, 2008

MANAGING FOR SOCIETY, THE MANILA TIMES
By Evelio G. Echavez
Global warming: Its significance to us

In the last decade or so, the subject of global warming has become a major topic of discussion. The Intergovernmental Panel on Climate Change (IPCC), a scientific body that was established by two UN organizations and tasked to evaluate the risk of climate change caused by human activity, has published four assessment reports during the period 1990 to 2007. The fourth report shows that the effects of global warming are becoming more intense: the warmest years (since temperature recording started in 1850) occurred in 11 of the last 12 years and that if trend continues, surface temperature and sea level will rise by about 1.1-6.4C and 18-59 centimeters, respectively.

The urgency and importance of the issue of global warming is seen in the selection of the prestigious Nobel Peace Prize for 2007 which was shared by former US vice-president Al Gore, for sounding the alarm over global warming and spreading awareness on how to counteract it, with IPCC which, through its scientific reports, built up knowledge about the connection between human activities and global warming.

From December 3 to 14, 2007, diplomats, government ministers and scientists gathered in Bali, Indonesia for the United Nations Framework Conference on Climate Change (UNFCCC) Summit to hammer out a roadmap that will become the basis of a treaty to succeed the Kyoto Protocol. The Kyoto Protocol, which is to expire in 2012, has done little to halt rising temperatures and the rise in apparently climate-related natural calamities. The task of UNFCCC has not been easy as shown by the differing views from the participants. The US, which is the only developed country that has not signed the Kyoto Protocol, is at odds with the European Union, which wants that CO2 emission cuts be made more aggressively at 25-40% of current levels by 2020. The US will agree to emission cuts only if China and India will commit to some targets too.

Global warming is closely associated to the accumulation of greenhouse gas (GHG), like water vapor, carbon dioxide (CO2), and methane in the atmosphere. The largest contributing source of GHG is the burning of fossil fuels (petroleum products and coal) leading to the emission of carbon dioxide. Greenhouse gases in the atmosphere act like a mirror that reflect back to Earth a part of the heat radiation, which would otherwise be lost in space. The higher the concentration of GHG in the atmosphere, the more heat energy is reflected back to Earth.

With temperatures going up, the large masses of ice and ice sheets in the Earth’s coldest areas are gradually melting causing sea levels to rise. Moreover, the high temperature also makes the ocean water expand making the sea levels to further rise. It is feared that 30 percent of the Earth’s species could disappear if temperatures rise 4.5 degrees Fahrenheit – and up to 70% if they rise 6.3 degrees. For the Philippines with its 7,100 islands, with half of its municipalities located near the coastline, a rise in sea level will put majority of our people in danger, causing massive dislocation and economic difficulty.

The Albay Declaration on Climate Change Adaptation, which came out recently in some of the daily papers, contains an action plan that our policy-makers should seriously look into and act on. Time is not in our favor. The time for action is now.

(To be continued next week)

TQM in higher education

2009-02-01T06:10:00.000-08:00

Monday, July 23, 2007

MANAGING FOR SOCIETY, THE MANILA TIMES
By Evelio G. Echavez
TQM in higher education

Many businesses around the world have embraced Total Quality Management (TQM) because of the success of well-known companies such as Motorola and Toyota. While TQM has been adopted by the manufacturing industry, higher educational institutions (HEIs) have been slow to recognize the importance of this management process. However, because of rising costs of higher education and increasing pressure to provide quality education, TQM is now being viewed as a way of solving problems within the HEIs in the United States and the Philippines as well.

Nonetheless, the initiative of adopting TQM in higher education has been met with skep-ticism and resistance. Academics have given the following reasons for such reactions: (1) difficulty in identifying the appropriate management structure that encourages quality improvement without inhibiting the university’s diversity and creativity; (2) the belief of most members in the HEI organization that universities are already efficient; and (3) the emphasis of TQM on team effort, which runs counter to the culture of most universities, which reward individual accomplishments (i.e. faculty members advance in rank by earning advanced degrees and doing research).

Due to these barriers to TQM implementation, prog-ress has been mostly in administrative areas, such as canteen operations, plant facilities planning and admission and enrollment processes. TQM is not used to address the critical problems facing universities today, which, among others, are curriculum design, allocation of faculty time and research output.

While working as an executive for many years in industry, I led some organizations in successfully implementing TQM. In the academe, I continue to propagate continuous improvement by conducting TQM seminars for faculty and business people; actively collaborating with business; improving curriculum design; directing research efforts to relevant business topics; helping students focus their energies on important endeavors; and conducting planning sessions where faculty and staff are encouraged to suggest and plan how they can improve the delivery of services.

Accreditation given to HEIs by bodies such as the Philippine Association of College and Universities Commission on Accreditation (PACUCOA) helps improve the quality of education. Other schools have certified their quality management system using the ISO 9000 standard. In both cases, however, the school may have the accreditation or certification and yet may not be able to deliver the desired quality of service because of lack of internalization among the school’s faculty and employees.

Faculty members can improve the quality of their teaching by discussing, at the start of the term, their syllabi as well as their and their students’ expectations (in one class, I used a cause-and-effect diagram to identify the causes of effective learning process); thoroughly preparing for each class; getting regular feedback from students about what helped them in class and what should be changed or added; encouraging active participation in class discussion; and being open for consultation.

A tribute to a great man

2009-02-01T06:08:00.000-08:00

Monday, June 25, 2007

MANAGING FOR SOCIETY, THE MANILA TIMES
By Evelio G. Echavez
A tribute to a great man

I remember what the late Don Felimon C. Rodriguez, one of the cofounders of the Philippine Investment and Management Inc. (PHINMA), said in one of the company’s gatherings in the 1970s that “in our lifetime, we cross paths with different kinds of people and some of them would have a great influence in our lives.” I have been very fortunate for having worked with people who had positively influenced my life. One of them is Ambassador Ramon V. del Rosario Sr., co-founder and chairman-emeritus of PHINMA and the conglomerate that it has become.

In the early 1970s, I was the pulp mill superintendent of PHINMA’s United Pulp and Paper Company’s plant located in Calumpit, Bulacan. Ambassador del Rosario (RVR to most of us) was the company president at that time. When he visited the plant, we made sure that the plant was totally clean even if we kept the plant usually clean anyway at all times because we did not know when he or some of the executives would come to visit, with the plant being just an hour away from Manila. Even when the General Housekeeping Program or 5S, which was popularized by the Japanese, was still not in style, we already practiced that at PHINMA in the 1970s. I kept that practice in all my other assignments.

RVR was known for his thoroughness and knack for details. Whenever we had our planning and budget conferences, we made sure that we covered all the bases because he and the other executives had a way of knowing whether we had considered all important aspects in our plans. I was continually amazed at his wisdom, creativeness and foresight because in all our major conferences I went home with some new ideas to consider.

One time when we were told that RVR was going to visit the Davao plant I was involved in as senior vice president in the 1990s, my counterpart in marketing told me that he usually made sure he knew all the infrastructure projects in the Visayas and Mindanao, whether in-progress or being planned, because surely RVR would ask him about them.

He was interested to know what the plants were doing to help the community. Our community outreach program (Comrel) started even before corporate social responsibility became a popular buzzword. He had the gift of remembering the names of people. My wife regaled in telling me that RVR remembered her name when we attended company socials or activities.

During one Christmas party we had at our Davao plant, I wanted top management to encourage our employees to support the Total Quality Management (TQM) Program we were implementing. In his message, Ambassador del Rosario talked about TQM like an expert. We got a quote from his speech, which we placed in conspicuous areas around the plant. It was, “Hindi na pwede ang pwede na.”

What I remember most of RVR was that he was our number one motivator and cheerleader. At the end of our semiannual planning and budget conferences, we looked forward to listening to the closing words of our top officials. RVR was good at using the right words and illustrations; and in encouraging all of us to do our best. He was eloquent like no other. Nobody could beat him in delivering a speech for any occasion.

The importance of industry-academe linkage

2009-02-01T06:05:00.000-08:00

Monday, May 14, 2007

MANAGING FOR SOCIETY, THE MANILA TIMES
By Evelio G. Echavez
The importance of industry-academe linkage

Annually, the Philippines produces more than 400,000 college graduates, of which only a small fraction is able to land jobs appropriate to their academic training. More graduates join the ranks of the unemployed and underemployed and complain lack of job opportunities; while others troop to the Middle East and other destinations to land jobs that they have not trained for. Employers, however, contend that there is not a lack of job openings but rather, that the graduates lack the type of training, skills and competencies that industry requires.

Oftentimes, the problem is caused by the students obtaining knowledge and competencies that are not what the industry needs. And this can be attributed to the outdated books, teaching methodologies, curricula and technology being used in the schools of higher learning; and the absence of or inadequate on-the-job training exposure given the students. Recent surveys among employers show that they need college graduates with the following skills: oral and written communication skills, computer skills, conceptual and analytical ability, interpersonal skills, and for some companies, specific technical skills such as those in information technology and engineering industry.

This problem has been recognized by the Higher Education Institution (HEI) sector in recent years, with many conferences being held by various academic organizations to address the importance of having a strong and vibrant industry-academe linkage. The collaboration between industry and academe should also be a concern of industry because it will help provide them with properly trained employees, and it saves them valuable time and resources in making a fresh graduate productive. With a good industry-academe linkage, the new recruits hit the ground running.

The collaboration can be in the form of a combination of the following: involvement of executives and managers from industry in designing the curricula of existing and new programs, and the design or revision of course syllabi; industry managers or specialists serving as speakers on new trends and specialized topics; industry partners accepting faculty members to have hands-on training and even jobs for short periods in their facility to provide the faculty with industry experience; and companies allowing their managers/supervisors to serve as faculty in the HEI.

What is common today is the requirement of senior college students to go through an on-the-job-training (OJT) program in the facility of a company to provide the students with a school-to-work transition experience. Both parties have to make sure that the quality of training that is being provided in the internship program is acceptable. Other collaborative activities include the use of laboratories of industry partners for research work being done by faculty and students; joint use of research facilities by the HEI and industry partners, and the lecture by an academic specialist on certain topics that are needed by the industry partners.

Universities and colleges benefit from the collaboration by being able to improve the quality of training that they provide their students and thus, the quality of their graduates. On the other hand, industry benefits from this by being able to have a hand in training future employees; reducing their new employees’ cost of training; aside from having the satisfaction of being able to help the students and society, in general.

Corporate citizenship: top managements' responsibility

2009-02-01T06:02:00.000-08:00

Monday, April 16, 2007

MANAGING FOR SOCIETY
By Evelio G. Echavez
Corporate citizenship: top managements’ responsibility

While growing up, our elders and teachers counsel and admonish us to become responsible citizens. There are several ways to manifest responsible citizenship. We can obey the laws of the land, pay the correct taxes, contribute our efforts to community building, treat with respect our fellow-men. Corporations are also considered citizens particularly in the area where they operate. In doing business, they utilize human resources and for some, natural resources, that they source from their place of operation. Companies can either be a source of environmental preservation or degradation.

I have personally known companies or industrial plants which for a long time have been doing acts of responsible corporate citizenship. One such plant was Davao Union Cement Corp. (DUCC), which is now known as Holcim Philippines—Davao Plant. Long before the Adopt-a-School Program of the Department of Education was implemented, DUCC was already assisting public schools within its area of operation. It helped some public schools in the repair of classrooms and buildings; construction of perimeter fence, pathways, and additional facilities; supply of potable water system and sanitary facilities. It also donated equipment and materials to upgrade a public high school’s chemistry laboratory. Moreover, it trained about 2,000 out-of-school youths in vocational courses, such as automotive mechanic and dressmaking.

The company also assisted members of the community in developing and operating their own livelihood projects such as rope, paper bag and hollow block-making. Additionally, with an initial fund of half a million pesos coming from its mother company’s foundation, it initiated a micro-lending project to assist the small entrepreneurs in the area in accessing low-cost capital. This freed them from the hold of the 5-6 loan sharks, and allowed them to eventually manage their own micro-lending cooperatives.

The company provided its employees and families medical and hospitalization benefits that were considered one of the best in the region. Also, the plant had one of the lowest accident rates in the cement industry as a result of the emphasis given to occupational health and safety. From time to time, the company shared part of its profits with its employees through the grant of bonuses and incentives. For its exemplary performance in this area, the company was given recognition as one of the best employers in the region by the local chapter of the Personnel Management Association of the Philippines (PMAP).

The company also acted proactively in lowering its dust emission to a level many times better than the prevailing government standard and in implementing an international Environmental Management System known as ISO 14001. Moreover, it planted more than 630,000 seedlings covering a total of more than 330 hectares of deforested and barren land. As a result of all these activities, the company was awarded the Platinum Achievement Award of the Presidential Mining Industry Environment Award in 1998, the first cement plant ever to receive such recognition up to that time.

Corporate citizenship is not an accident. It is a product of the internalization and actualization of the philosophy and values of the corporation, particularly the collective judgment and decision of top management, with the active support of the rest of the workforce. I know this to be true. I was part of the management team that made DUCC truly a responsible corporate citizen.

When corporate downsizing is inevitable

2009-02-01T06:00:00.000-08:00

Tuesday, January 23, 2007

MANAGING FOR SOCIETY, THE MANILA TIMES
By Evelio G. Echavez
When corporate downsizing is inevitable

In the first half of this decade, several companies in the US, some belonging to the Fortune 500 List, filed for bankruptcy causing a great uproar among investors and the clamor for reforms in the regulatory oversight of the securities industry. Many of the executives of said companies that included Enron and WorldCom were haled to court and some subsequently convicted. While the nature and magnitude of the scandals varied significantly, they all had common denominators: greed and the absence of ethical values. As an aftermath of these corporate scandals, companies have become more circumspect in their financial transactions and reporting; and have given more attention to their corporate social responsibility (CSR).

In the aftermath of the Asian crisis in the late 1990s and the increasing pressures to be competitive, some companies in our country adopted the practice of manpower retrenchment, or what is more known as downsizing. Recently, businessmen have warned that legislated minimum wage increases could lead to layoff. One of the areas of CSR that is often neglected by business organizations is the process of separating their employees, such as in the case of corporate downsizing. It will be good for companies to review whether the process they are employing is ethical or not.

An employee hired by a company, in return for his faithful service, expects the company to practice fair play, provide safe working conditions and job security. An employee is also concerned with the personal and emotional bonds between him/her and the employer. Violation of these obligations, such as the separation of an employee during an organizational restructuring or downsizing, can have some effects on the psychological and physiological well-being and the financial condition of a separated employee. That is why it is important for companies to handle the dismissal process ethically to ensure the emotional, psychological, physiological and personal well-being of an employee.

It is clear that long-term human resource planning is needed to avoid or minimize layoffs. Some companies employ one or more of the following alternatives to avoid downsizing: freeze-hiring and allowing attrition to draw down excess employees; redeploying current employees to other units; curtailing subcontracted work; sharing the economic loss through work sharing; offering early retirement and pay cuts. There have been recent examples in the US of some labor unions agreeing to have pay-and-benefit cuts of the workforce to avoid the filing of bankruptcy or massive layoffs by management.

However if layoffs cannot at all be avoided, companies are expected to treat employees to be separated with dignity, respect and fairness. Some studies have shown that employees prefer that they be given advance notice of the impending separation and that a responsible person in the organization communicate with them directly about the matter rather than them hearing about it from others. Many companies, in anticipation of having to implement downsizing, provide their employees with training in skills of the latter’s choice to help them get employment elsewhere. Some companies provide outplacement services to their to-be-separated employees. Others allow separated employees to take over some of the services or functions being presently outsourced. Some even extend counseling to help affected employees cope with the emotional and psychological impact of separation.

Whatever the approach, the challenge is to make the separation as humane as possible.

What drvies companies to go green

2009-02-01T05:56:00.000-08:00

Tuesday, May 30, 2006

MANAGING FOR SOCIETY, THE MANILA TIMES

By Evelio G. Echavez

What drives companies to go green

THE controversy caused by the reported tailings spills of the Lafayette Mining’s polymetallic project has added a new weapon in the arsenal of antimining groups, which have been calling for the revocation of the Mining Act of 1995 and the prohibition of the entry of new investors in the country’s mining industry. Even as the effects of the Marcopper mining disaster ten years ago are still being felt and some issues remain unresolved, this new environmental disaster has happened making concerned interest groups more vigilant and vocal in airing their sentiments; and rightly so. I therefore want to address what drives companies to go green or to become environment-protection-conscious.

In their article “Why companies go green: a model of ecological responsiveness” published in the Academy of Management Journal, authors P. Bansal and K. Roth say that prior research has identified four drivers of corporate ecological response, namely: legislation, stakeholder pressures, economic opportunities and ethical motives.

Legislation on environmental protection is considered adequate in this country. Laws on environmental protection include the Clean Air Act, the Clean Water Act and the Mining Act of 1995. The Mining Act of 1995, for example, requires mining companies to obtain an Environmental Compliance Certificate that certifies that the project under consideration will not create an unacceptable environmental impact.

Stakeholders are also known to exert pressures on companies in regard to ecological responsiveness. These pressures come from customers, local communities, the press and environmental interest NGOs. The stand of some groups for a total mining ban in the country closes all forms of dialogue and shows the lack of appreciation of some parties on the importance and necessity of the mining industry to our civilization and our economy. As humans, we need metals for varied purposes: construction of buildings, bridges and other infrastructures; and for making machines, tools and equipment. It is important that there will be a two-way, give-and-take communication and interaction between the companies and the concerned stakeholders.

A third driver is economic opportunities. By intensifying or altering production processes, maximizing recycling, minimizing waste, firms reduce their environmental impacts while at the same time lowering the costs of inputs and waste disposal. Many companies have found out that by improving their environmental performance through the reduction of all kinds of material waste (reduction of pollution) they also have been able to lower their costs.

In the same article, the authors mentioned that ethically motivated companies respond because it is the “right thing to do.” Ethical motives depend on the corporate values the company espouses; particularly on the values of the company’s leadership. Let me cite an example of a group of companies that was involved in cement production and sales.

In the early 1990s, the cement industry experienced significant growth. The government emission standard for cement dry-process plants was 150 milligrams per normal cubic meter (mg/Ncum) maximum. In 1990 the chairman and CEO of Phinma, Mr. Oscar J. Hilado, issued a directive that in five years’ time all kilns in the Phinma Group must have an emission level of 100 mg/Ncum (maximum). Phinma at that time managed and operated six cement plants. Four years after Hilado issued the order, some of the cement kilns including an old wet-process kiln (that had an emission standard of maximum 500 mg/Ncum) whose clinker dust collecting/trapping equipment were either new or upgraded, attained dust emission levels of 50 to 100 mg/Ncum. This was a clear example of how ethically motivated executives can provide the needed leadership toward corporate ecological responsiveness.

The benefits of an environmental management system

2009-02-01T05:41:00.000-08:00

Tuesday, July 25, 2006

MANAGING FOR SOCIETY, THE MANILA TIMES
By Evelio G. Echavez
The benefits of an environmental management system

There are four drivers why companies go green, name-ly: legislation, stakeholder pressures, economic opportunities, and ethical motives. In going green, a company usually decides to install and implement an environmental management system (EMS). An EMS is a formal set of policies and procedures that define how an organization will manage its potential impacts on the environment and public health. The two EMSs that are commonly in use are the European Eco-management and Audit Scheme (EMAS), which is being used by many European companies, and the worldwide standard of the International Standard Organization known as ISO 14001.

In the Philippines, ISO 14001 is the standard that many companies have implemented with 144 companies registered (certified by a third party) to the said standard as of the year 2004 based on The Philippines Directory 2004 published by ISOPhils. The number of companies that have implemented an EMS patterned after ISO 14001 or other standards but have opted not to be certified by a third party is unknown.

The implementation of an EMS provides several benefits to the company. First, it shows good-faith effort to comply with regulations. This means that companies with existing EMS show the willingness to comply with all laws related to environment protection. Many countries are more receptive to standards such as ISO 14001, as an alternative to prescriptive command and control requirements because it is voluntary and focuses on management. As a result of implementing such standards, regulatory compliance is enhanced and reduction of environmental impacts is achieved. In some countries, regulatory agencies are known to go easy on companies with certified EMS or to reduce inspection visits to their facilities.

Second, it assures customers of the company's commitment to environmental management. Some companies that are registered to ISO 14001 like Ford, IBM, Xerox, Toyota and others, have been requiring their suppliers to also register to the standard. Green consumers, who patronize products of companies that adopt environmentally safe practices in their operations, are starting to have their presence felt; and having an EMS would certainly show that a company is environmentally pro-active.

Third, it provides economic benefits resulting from the reduction of wasted input materials and energy, and waste disposal and treatment cost.

The improvement in process control and the prevention of pollution result in improved efficiency that ultimately causes the reduction of cost through the production of a higher output for the same input. Since profits commonly represent 5 percent to 10 percent of sales, even small increases in the bottom-line are always welcome.

Fourth, the resultant reduction in environmental impacts improves the company's image with its publics, particularly its immediate community. Companies that have successfully eliminated or reduced the impact of its operations on the environment usually find the community and other stakeholders more responsive partners in its programs including the application and renewal of permits and authorization.

Fifth, a properly functioning EMS reduces the potential for environmental incidents and associated liabilities or payment due to damages or violations. This in turn results in lower insurance premium and preferential treatment by bankers who provide access to capital. Some banking institutions now require the attainment of specific requirements of environmental protection before any request loan request is processed. Moreover, environmental accidents such as those that happened in Bhopal, India and in Marinduque could have been prevented, or its extent at least minimized, with an EMS effectively in place. ISO 14001, for example, clearly requires the company to have emergency preparedness and response procedures that prepare a company for any conceivable emergency or disaster, thus minimizing the extent of environmental damage if an accident occurs.