Special Session with Professor Lawrence Summers

Professor Larry Summers, pausing before responding to a question from an AMP student

Lawrence "Larry" Summers

Prof. Lawrence Summers, former US Secretary of the Treasury (1999-2001), former Director of the White House United States Economic Council (2008-2010). He was also the 27th President of Harvard University President (2001-2006). He became one of the youngest individuals in recent history to be named as a tenured member of the Harvard University faculty.

A hugely intelligent and brilliant intellectual, Professor Summers spoke on US policy prescriptions in the wake of the worst financial crisis to hit the US. His views are thought provoking, America-centric and highly insightful.


Discussions and Q&A

US  and Global Economy
  • Most of the time, economies are self-calibrating but there are moments when markets become avalanches, such as what happened recently
  • The numbers of the current crisis are worse than those of 1929
  • There is a need to address the global downturn
    • Europe implemented stimulus measures
    • US exports can happen only if other countries buy
  • The irony is that there was too much confidence, that let to too much borrowing and spending
  • Today, there is a sense of normalcy but joblessness continues to be ten million short of employment
  • There is a need to stimulate domestic demand since the lack of demand hampers production which in turn affects employment
  • Government must also move towards balancing the budget
Europe
  • The core strength of the European economy is Germany
  • Over the last 15 years, Germany has succeeded in becoming more competitive, while the rest of Europe has not
  • The core question is that how will the rest of Europe service its debt
    • labor contrary to the EU's desire is not labor because of cultural and national barriers
  • The European central bank needs to adopt a more expansionary policy
Financial Markets
  • Speculation is contributing to high oil prices
  • Critical questions:
    • How do we bring the financial markets to a place where it can be successfully managed?
    • What is the right kind of policy response?
    • It is strange that when regulators assess the appropriate kind of regulation, they invariably ask financial institutions for guidance
Leadership
  • Nobody ever accomplishes anything who doesn't know what he wants to accomplish
  • Ask yourself: what will be different about this place when you leave than it was when you came?
  • If everything is a priority then nothing is a priority
  • Success depends on everybody being able to challenge everybody
Lessons from Japan
  • Japan moved too slowly and was too episodic in addressing concerns
  • Japanese GDP numbers look worse than the USA
  • Japan not too successful in making economy flexible and was unsuccessful in implementing structural reforms

    Day 36 & 37: Morgan Hall

    The centerpiece of the Morgan Hall - a mosaic that was once part of a Roman Bath

    Morgan Hall

    Morgan Hall houses the faculty of the Harvard Business School (HBS). It is also the home of the HBS Dean. Quite appropriately it is next to the Bloomberg Library. The centerpiece of Morgan Hall is a mosaic that has been hiding in the vaults of the university until a previous Dean "discovered" and installed it in the center of the building.


    Lesson in Class

    Operations
    • Teams that are organized to innovate allow for failure and learn by doing
    • Teams that are organized to execute are less tolerant of mistakes and put a premium on efficiency
    Leadership
    • The good old days of a straightforward lateral structure is over, the time for complexity is here
    • 4 factors to consider when organizing - functional, line of business, customer segments and geography
    • Organization design consequently is always a work in progress
    Restructuring
    • Industry benchmarking analysis can sometimes be misleading, in the context of a restructuring exercise, especially given that problems can sometimes be industry-wide
    • Many companies conduct process re-engineering studies in order to be on top of business processes and costs
    • Rare is the CEO / employee who can do both operational and visionary roles with much success, if you find one hang on to them tightly
    Business, Government and International Economics
    • Some middle eastern nations have become rentier states
    • Over-dependence on oil revenues have made it uncompetitive and unable to diversify and modernize
    • Some of their leaders have seen this and have began to manage the progression out of an oil-dependent economy while balancing the strong religious, political and social pressures of their country
    Marketing
    • There are two paths to connecting with the consumer - functional and the emotional
    • The emergence of non-traditional social media has opened novel communication content and approaches to companies
    • However, companies must not forget that people still buy from people they like
    Finance
    • Break even point varies according to weighted average cost of capital, operating margins and unit price
    • Be careful of tying executive compensation to the stock price as it may result in short-term thinking that will ultimately affect the company in the long-term
    • Financing packages can add value to the organization's financials, hence designing it is very critical

    Special Session with Professor Frances Frei

    Professor Frances Frei, emphasizing a point (photo courtesy of Harvard Business School (HBS)
    Frances Frei

    Professor Frances Frei is an engaging speaker who uses humor and live business experience to emphasize her points. Her book Uncommon Service: How to Win by Putting Customers at the Core of Your Business provides valuable and practical insights on how organizations can build, improve and deliver reliable service excellence.

    A Professor in the Technology and Operations Management Unit at Harvard Business School and the Chair of the MBA Required Curriculum, she has received the HBS Student Association Faculty Award for teaching excellence on multiple occasions, as well as teaching awards from the Wharton School of Business and the University of Rochester.

    Professor Frei serves on the Board of Directors and Board of Advisors of several private companies.


    Uncommon Service

    Her lecture revolved around the core aspects of her book and is anchored on what she referred to as the four truths of service excellence. These are:

    Truth 1: You can't be good at everything
    • To be good at something, you must be bad at something
    • Know what your customers value most, in order to identify attributes that you need to be good at and attributes that you can be bad at
    Truth 2: Someone has to pay for it
    • Identify what can you do to reduce cost and improve service
    • Make pricing more palatable to your customer
    Truth 3: It's Not Your Employees Fault
    • Set up your processes and systems to make your people excel in providing quality service
    • Provide the requisite skills and motivation to make sure that they succeed
    Truth 4: You Must Manage Your Customers
    • Influence customers in order for them to enhance their experience

    The beauty in Professor Frie's presentation is that she uses paradox to effectively bring home her point. What I have shared are the key points of her presentation.

    I would recommend her book Uncommon Service: How to Win by Putting Customers at the Core of Your Business for those who want to dig deeper and who would want to know more about customer service excellence. Her book contains relevant examples of how companies have built stronger businesses by practicing these principles.

    Day 34 & 35: And The Gastronomic Feast Continues

    Dinner with the best Finance professor in the world, Prof. Marc Bertoneche, at the Harvest Restaurant

    Dining with Finance

    Harvard Business School (HBS) Finance Professor Marc Bertoneche hosted a wonderful dinner at Harvest, the best fine-dining restaurant in Cambridge, Massachusetts.

    The metaphor is not entirely lost on me. You see, Professor Bertoneche, in my books is the best Finance Professor the world can possibly offer. His impeccable sense of humor combined with his mastery of financial tools, just makes the study of Finance very enjoyable and to a lot of the participants, myself included, significantly easier to understand. He has the ability to  explain complex financial topics such as M&A's and Options, in a manner that is easily understood by his students. I owe my new found love affair with Finance to him.


    Lesson from Class

    Leadership and Accountability
    • In the world of global sourcing, employee programs, can sometimes take the back seat, often with catastrophic, if not fatal consequences
    • The interests of the employees, country, contract manufacturer and the brand owner must align
    Strategy
    • Integrating an acquired company causes disruptions in the company's strategy
    • Leaders need to integrate both company's strategies and operations, otherwise revenue and profit declines may follow
    • The combined strategy must be consistent
    Business , Government and International Economics
    • Mexico is so dependent on the US market, that it is easily impacted by the developments in the US
    • It is plagued with inefficient monopolies, cartels, unions and crime
    • It also has a fragmented political system that impacts on long-term policy
    • China's entry in the WTO has affected Mexico's competitiveness inside its main market, the US

    That's all for the day.


    Day 32 & 33: Food...Food...Delicious Food!

    Yummy lobster! Looks great, smells great and best of all tastes great!
    Delicious Food

    This has been a weekend of gastronomic delights. Friday night was a Boston dinner prepared with tender love by the Advanced Management Program (AMP) Office of Harvard Business School (HBS). It was a delight to behold and it certainly was even more delightful to eat it. And devoured it, I did. It tastiest crustacean that I have eaten since I arrived in Boston.

    HBS feeds its students great food. Three times a day, every weekday, we trek to the Kresge Hall, where the Board Room is located, and enjoy the delicious meals they prepare for us. On top of that, the service is fabulous. The service crew is very polite and attentive to our service needs.
    Penang Restaurant with its succulent selection
    Saturday, was all about Singaporean cuisine. One of our group mates who used to be an F16 pilot of the Singapore Department of Defense, treated us to a hearty Singaporean dinner. Having lived in Malaysia from where I provided support to the Singapore market, I am quite familiar with Singaporean cuisine - and I must say that I missed it bad.

    That's one more thing about the AMP. Since the participants come from all over the globe you have the great opportunity to sample and experience a variety of cultures.


    Class Notes

    Leadership
    • Being customer-centric is not just a feel good exercise, companies that have a strong customer service strategy have outperformed the S&P 500
    • Always know what are the real factors that motivate the customer, and what are the hygiene factors (the bare minimum support that is expected)
    • Innovators of customer service grow at a much higher clip than companies that provide "good enough" service

    Leadership and Accountability
    • Avoid the "slippery slope" by taking care of the small stuff and nipping undesirable behavior in the bud
    • Foster debate and responsible action
    • Assign responsibility and hold people accountable in order to stimulate thinking and "ownership" of issues or process
    Marketing
    • Manage markets, segments and customers
    • Different customers play different roles for the business and need to be managed differently
    • Customers fall into 4 core categories: true loyals, switchers, strategic accounts and product innovation partners
    Finance
    • What the market does not fully understand, it undervalues
    • Some companies engage the "puffer fish" defense in order to discourage take-overs - they grow liabilities, but this adversely affects the company in the long-term

    This ends another day in HBS.



    Special Session with Jack Welch

    Mr. Jack Welch (right) greets the class as he enters the room, while Prof. Ranjay Gulati (left) looks on. 

    Jack Welch

    Jack Welch served as Chairman and Chief Executive Officer of General Electric (GE) from 1981-2001. During his tenure at GE, the company's value rose 4000% from $13 billion to more than $410 billion at the time of his retirement, making it the most valuable and largest company in the world. GE recorded revenues of roughly $26.8 billion; in 2000, the year before he left, they were nearly $130 billion.

    Because of this success, Mr. Welch's management skills became legendary. He had little time for bureaucracy and managers were given free reign as long as they delivered results and adapted to change. The Financial Times recently named him one of the three most admired business leaders in the world today and Fortune named Mr. Welch the "Manager of the Century," in 1999.

    A man with a commanding presence, Mr. Welch is very candid and his one-liners are both witty, meaningful and rich with learning. Below are his thoughts on the various subjects that he shared in the course of his interactions with the class.

    Career / Performance
    • At work employees naturally differentiate themselves, even among children differentiation occurs
    • Work on a candid and honest appraisal system, get the biases out; the problem is that people go through the motions and go on with real work - the evaluation is the real work
    • The only way you can get real performance from a person is if he knows his standing in the organization
    • A rigorous system of performance appraisal is the best way for an organization to ensure its continued growth
    • Role model management remains the best way to energize employees, don't be afraid to make heroes, call out the good that others do - talk about it and make a big deal about it
    • You want people with the right behaviors - performance metrics will get you there
    • Spend more time talking about the top 20% than the bottom 10%
    • Do battlefield promotions - push good deeds, excite people and highlight and set up as role models
    • Always try to impact on people
    Advice to CEO's on Opportunities Today
    • Disrupt any business right now with technology
    • Disrupt different aspects of the business, the more ideas you get the better
    • To be a disruptor, you need to think out of the box
    • Disrupt commoditized and mature markets with service, new products and new ways of doing things
    • Get sticky customers by asking yourself how you can make your product more sticky
    • Do anything to keep a customer rather than going around finding a new one - the cost of getting a customer is 1,000 times that of keeping a loyal one
    • The whole game that you are in is about exciting others, turn people on - customers, new markets, make them feel better than they are now
    Success and Luck
    • The harder you work, the luckier you get
    • You need to get a lot of breaks
    • Your results will be your brand
    • Your team's performance will be your brand
    • The day you promote your achievements is the day you need to say goodbye
    Leadership & Values
    • Ability to articulate a vision and excite everybody
    • Getting everybody to follow that vision
    • Values can take as much as two years to create and finalize
    • Values are something that an organization should embrace
    • Leaders should always display these values and not just pay lip service to it
    • People always watch and they know
    • Public hanging is worth more than 1,000 CEO speeches on values - be as transparent as you can be
    • Don't be a manager - managers are a bore!
    • Leadership is about promoting others - it is no longer about you
    • Your success is achieved by seeing others achieve
    • Leaders who promote themselves lose the respect of their subordinates and should be shot
    Team
    • You cannot spend enough time building a great team
    • Always let people know where they stand
    • Let every moment be a teaching moment
    • Want people who are passionate about winning
    • Create an atmosphere where leaders want to be - you want to be the hottest place in the company
    • Be the pied piper
    Bottom 10% Performers
    • We don't shoot people
    • Get rid of the bottom 10% of your performers in order to renew the organization and be fare to those who will not advance
    • There should be no surprises, people should always know where and how they stand and this stems from a good appraisal system
    • This takes time and people need to get used to this








    Day 30 & 31: The Second Wind

    Even nature got a second wind! Spring is here...bunnies have been spotted on campus!

    Second Wind

    After that very refreshing four-day break, it's back to the salt mines for all of us. In so many respects, I consider myself fortunate for deciding to stay on campus and getting so many things done. My colleagues who had family over and decided to go out of town, are tired from the travelling and are now trying to catch up and update themselves on their readings.

    Mother nature has once again shown its perfect timing and sense of humor. As the students of the Advanced Management Program (AMP), came back from their second wind; so was nature. This bunny finally crawled out of its burrow and is foraging in campus. I suppose that officially means that spring is here!


    Lessons

    Marketing
    • Companies make the mistake of "mis-defining" what business they are in or often ask the wrong question
    • It is the role of the CEO to define business strategy and to broker conflicting or competing departments / functions
    • When companies think customers, they usually have a long-term orientation or think strategically; when they think orders, it usually means they have a short-term orientation or think tactically
    • There needs to be an alignment between the short-term and long-term; learn to think one and when to think the other
    • Do not be "everything" to "everybody". Be courageous in saying "NO" to opportunities that are not within your strategy for it drains the organization of resource and focus and certain cases it can even lead to bankruptcy

    Leading Organizations
    • Always let people know where they stand, let every moment be a teaching moment
    • When you assume a leadership role, it stops being about you. It starts becoming about others - celebrate their success and bask in the reflective glory of their success
    • Top performing companies delivered twice the annual shareholder return compared to middle of the pack firms
      • made effective use of performance reviews
      • emphasized management development in staffing decisions
      • encouraged candid feedback

    Strategy
    • The acid test of multi-brand or multi-business companies is whether the individual brands or companies add value to the whole
    • Extend your customers willingness to pay line and your suppliers willingness to supply line in order to create better value for your firm

    Operations
    • An innovative product should have a responsive supply chain; a functional product should have an efficient supply chain
    • 1/3 of customers entering a store leave without buying because they can't find what they came for
    • Early sales is an accurate predictor of life cycle demand
    • The role of intermediaries and how they are organized changes over time
    Finance
    • Attributes of a global leader
      • views uncertainty and crisis as an opportunity
      • demonstrates an ability to create value
      • focuses on outcomes and results, not on processes
      • wants to break the mold by
        • challenging corporate orthodoxies
        • embraces change
        • constantly looking for innovation without fearing failure
      • has developed a broad international business experience and is extremely sensitive to cultural differences
    • Business cycles demand either a visionary or operational CEO, finding leaders who can do both is very rare

    Day 26 - 29: At Last A Four-Day Break!

    A flock of ducks waddling their time merrily on a sunny morning at the Charles River in Boston

    My room overlooks the Charles River and everyday my mind gets drawn to this tranquil spot by the river, where ducks forage and frolic freely. It's a scene where the blues and the greens of the earth weave a pattern of peaceful play. I sit by this bench often, contemplating on the lessons I learned in class and oft relating it to the bigger picture of life and purpose.

    Terrazas de Punta Fuego in Nasugbu, Philippines
    On the flip side, this scene is a serene reminder of the world I momentarily left behind and where I shall soon return. On the surface, it is a welcome reminder of my regular pilgrimage to the sea, sand and surf. It too is a place of calm and tranquility where the sun and the moon meet to kiss the sea, where the world stands still in homage to harmony.

    On a more somber tone, all this knowledge carries a tremendous responsibility - the need to give back; the need to change and the need to make a difference. It would be such an awful waste if the transformative power of knowledge is kept hidden and locked. But as with all transformations, it can be life-giving or threatening, particularly for those who fail to see its noble purpose. The prophets of change are often left to face the tyranny of those who fear what ought not to be feared.


    My Four-Day Break

    As we reach the mid-point of the Advanced Management Program (AMP), Harvard Business School (HBS) was kind enough to squeeze in a 4-day break for all the AMP participants to relax and be with family and friends.

    I must admit, when I first saw the schedule I wondered aloud and questioned the wisdom of this four-day break. I first saw it as a waste of time and quietly told myself that HBS does not know what it's doing. But after having gone through the gruelling daily case studies, including Saturdays and Sunday, and those countless sleep deprived nights, I know better now. This four-day break was designed to give all the participants a second-wind. And indeed that aim was fulfilled.

    While most of my fellow AMP participants went away with family, I chose to stay on campus. I initially thought of visiting a fraternity brother in San Diego, just so I could see and taste the salty waters of the sea. But sadly, it was just not meant to be. There were just so many things that I needed to do in HBS and after some soul-searching I came to the conclusion that I am not here to have fun but to work. And so throughout the 4-days I worked.

    One more thing, not too many people outside of HBS know that there is a network of underground tunnels that span the entire grounds of HBS. It was designed to interconnect all the buildings when walking outdoors become a physical impossibility due to freezing cold snow or drenching rains. My almost daily forays to the library have made me very much acquainted with the tunnel system.



    Organize, Study and Reflect

    The Baker Library, my favorite place for reading in HBS
    I spent the a considerable amount of time getting myself organized. In my rush to be on top of the readings, the assignment and the case discussions, I would just stack all my notes in one corner of my study. As the days went on, the few notes became a stack of paper. And that's when I felt the need to sort and organize it meaningfully.

    After the organizing, came the studying. I revisited the concepts and tried to internalize as much as I can. When HBS Associate Dean Prof. Das Narayandas compared the knowledge inflow to drinking from a fire hose, I thought it was a hyperbole. But no, it was not, he meant every single word of it.

    Studying was followed by reflecting. I had to find meaning into all this knowledge. The questions I had to answer were:
    • what is the meaning of this nugget of learning in my work and personal life?
    • how can I apply this into my current and future business situation?
    • which one do I need to do first, second, third, fourth, etc?
    I am happy to report that I accomplished all these successfully.


    Exploring Cambridge and Boston

    Needless to say, the first order of the day was to catch up on sleep. On school days, my average sleep was about 5 hours everyday. I know that for some people that would be a sufficient number but not for me; I still need my 8-hours. So I took advantage of the break, and slept an average of 10-11 hours a day.

    The Faculty Club
    After all the studying and reflecting, I then decided to conquer Boston. Fortunately, HBS organized a series of events for the families of the AMP students. And so I willingly tagged along.
    On Sunday, HBS hosted a Sunday brunch at the Harvard Faculty Club for the families of all the AMP students. The Harvard Faculty Club is probably the most sought after dining venue in Cambridge. It offers one of the best prepared meals in town set in a well-appointed yet rustic boutique hotel in the middle of Cambridge. And what is even better is that the food is remarkable. Incidentally, the Executive Chef and the Operations Manager are Filipino.
    The day before, I joined an HBS organized cruise of Boston Harbor. The weather was perfect, the food was perfect and needless to say, so was the company. It's great to be in the company of brilliant talents from all over the world, who have set aside the trappings of their positions, and have become my of friends. 

    The Boston Harbor

    I still have a number of cases to finish, I will unfortunately have to go for now. But before I do, allow me to share mementos of my four-day break.
    The corridors leading to the function rooms of the Harvard Faculty Club

    One of the function rooms of the Harvard Faculty Club

    The main entrance to the Harvard Faculty Club

    The entrance to the Weld Boat House

    Harvard Yard, home to Harvard's freshmen

    Harvard Yard, home to Harvard's freshmen


    Day 24 & 25: Exploring Harvard University

    Harvard Law School Library


    Around Harvard

    After almost a month of incessant studying, I finally got the chance to explore the Harvard University campus. There are a couple of things I noticed:

    Harvard Yard

    Harvard Yard
    1. Everything is brick red. Yes I was told that this is the official university color and has a specific color pantone. The official and only daily newspaper is the Harvard Crimson, which is run entirely by undergraduates.
    2. It is impeccably clean. It has green manicured lawns that are child friendly. This might sound pedantic but students are environment conscious and throw their garbage in color-coded receptacles.
    3. They have magnificent century old structures that's so astonishingly well-maintained. I was told that the building code forbids the demolition of old structures but allows for internal renovation. The city, in fact gives tax breaks to owners who preserve the outer structure of their buildings.
    Harvard Law however seems to have not received a copy of the building code, much less a memo on the prescribed architecture.

    Their buildings are either modern or are eerily similar to Hogwarts from the Harry Potter film. Don't get me wrong, it's pretty but in a somewhat unique way. This by the way, is a dormitory for those taking their masters degree in Law.

     They also have a very modern student center where students just chill out, have their meals, or study.

    Since this is Harvard, the richest university in the planet with an aggregate endowment fund of USD32Billion, most of the buildings are named after benefactors. It is in fact my dream to have a structure named after me within 5 years - the Vince Abejo gutter or even the Vince Abejo drain might be a good start. I first thought of a Vince Abejo lamp post but that might be overly ambitious.


    Lessons

    Business, Government and the International Economy

    The subject of our case discussion is South Africa. And our Professor, Dick Vietor, continues to regale our class with his witty yet spot on comments about macroeconomic analysis. Without going into the minute details of the South African economy, below are the key principles that can have universal applicability.
    • strong political leadership is a must for economic growth and trade competitiveness
    • national economic interests must not be subservient to local / sectoral interests
    • countries need to differentiate itself in order to enhance its competitiveness
    Negotiation

    Today, unfortunately is the last day of our Negotiation class. I really enjoyed this class so much as our Professor, Guhan Subramanian, is very articulate and knows the subject very well, he is the author of the book, "Dealmaking". In addition, I find his class to be very practical, useful and his teaching style is thoroughly engaging.
    • when deciding whether to auction or negotiate consider bidder profile, asset characteristics, seller profile and contextual factors
    • process and substance are negotiated simultaneously, achieve substantive advantage through process advantage
    • know your friends, your allies and those who don't want the deal to go forward
    • in multi-party negotiations seek early coalitions
    • prior preparation prevents poor performance
    Leadership

    Our Professor, Ranjay Gulati, today talked about influencing. And I must say that this is a true must have skill for all leaders. Professor Gulati, is able to transform an abstract concept called leadership into something tangible and replicable.
    • Influence involves procedural tactics and interpersonal tactics
    • Weapons of influence
      • reciprocity
      • commitment and consistency
      • social proof
      • liking
      • authoring
      • scarcity
    • Influence is not manipulation it is based on an understanding of those whom you are trying to influence

    I need to hit the sack, in the meantime let me leave you with some more photos of Harvard University.







    Special Session with Bruce Harreld

    Mr. Bruce Harreld, Harvard Faculty and previous head of Strategy of IBM, (photo courtesy of Forbes)
    Bruce Harreld

    A frequent speaker and writer on implementing strategy and corporate transformation, Bruce Harreld joined Harvard Business School's faculty in early 2009.  He is the faculty chair of "Building New Businesses within Established Organizations".

    But what stands out with Mr. Harreld's vast corporate experience is his first-hand experience in re-shaping IBM from its "near death experience" in the 90s. Under the stewardship of business icon, Mr. Lou Gerstner, Mr. Harreld led IBM’s Strategy unit. He was responsible for the formulation and execution of the company’s overall strategy and directed IBM’s Emerging Business Opportunities (EBO) program. According to Mr. Harreld, the EBO program is a unique management system that produced more than 20 new, in some cases multi-billion dollar businesses for IBM. 

    Mr. Harreld also served as senior vice president for IBM Marketing, where he led IBM's marketing efforts.


    Lessons From The IBM Trenches 

    On Business
    • Issues that IBM faced that needed immediate attention
      • didn't know customers
      • high cost structure
      • clung to old technology
      • discussed strategy but failed to execute
    • If you don't fix the base business, you don't have an investment base to launch other businesses
    • Assign your most experienced people to handle new businesses as these are uncharted territories and require proven leadership
    • Move your high potentials to handle the current business since the processes and systems are well in place

    On Culture
    • Culture is a critical control system, it needed to be managed actively
    • Actions speak louder than words, and is the most effective way to set the culture
      • Public hanging of non-performers and culture change resistors was done in order to send a message, but this was done sparingly
      • Public rewards were communicated across all levels of the business in order to encourage and reinforce behavior
    • Key to all these was the need to set the performance bar and to communicate it clearly across the organization
    • The ultimate leadership question - HOW DO YOU RAISE THE BAR?
    • Skill-key task-culture-management rewards must always be aligned 


    Mr. Harreld spoke with passion and credibility. His narration of all these lessons brought the whole class back to the IBM trenches as these fights were being fought. He was candid and open about his experience and expounded on his points, like only a seasoned business executive scarred in the fields of open warfare can. It was truly a privilege to be with this man.

    Day 22 & 23: Still Studying...

    The Baker Library is turning out to be my favorite hang out. I'm proud to be a geek!

    Studying Still

    Yes I have switched! So goes a popular ad in the Philippines. I have switched to studying mode. I'm sure my teachers in Green Hills, Diliman and Boston would be happy that I am spending my free time accumulating knowledge. I just find it rather ironic that I spent all of my formative years trying to get myself out of school, only to willingly and proudly end up in one yet again a few decades after. Learning indeed never grows old, only the old stop learning.

    If you must ask I've just been astounded to the different facets of business and how they eventually converge. How as leaders, our role is to add value to our various stakeholders, not just our shareholders. I particularly enjoy, in no particular order - Strategy, Finance, Leadership, Corporate Accountability, Operations, Negotiations, Business Government and International Economics and Marketing. In short, I just love all the courses that I have been blessed enough to have been given the rare opportunity to re-study. After close to two decades of working, these courses, as have I, certainly evolved. And re-studying it gives it a completely new and richer meaning.

    Lessons

    Negotiation
    • When negotiating for a long-term partnership, a show of good will earlier on in the process could spell the difference between winning and losing
    • Always be consistent in your pronouncements, a whiff of inconsistency might adversely impact on your credibility
    • Always be mindful of all your stakeholders, do not value or prefer one over the other, in your internal and external communications
    • In negotiations, don't just think about the short-term gains, go for the long-term value - aspire for what is right and fair
    Business Government and International Economy
    • Countries today are buying into another country's assets in order to improve its access to "security assets"
      • China buying into Australian mines and oil
      • Singapore buying into financials
    • Countries need to improve its investment climate, and one such area is total factor productivity and unit labor cost
    • The issue of immigration needs to looked at dispassionately, and viewed under the prism of a country's long-term economic prosperity
      • Australia's immigration policy vis-a-vis its declining manufacturing base and total factor productivity
      • US competitiveness being impacted by access to critical talents to fuel its industrial base and human capital needs
    • Countries also need to revisit its domestic production capability and its infrastructure
    • Ideally a county's consumption, investment, government spending, exports less imports, savings and taxation need to be relatively strong so that it does not become overly dependent on one aspect of its GDP
    Strategy
    • In assessing strategy Porter's 5 Forces and the Added Value Framework are very powerful analytical tools
      • evaluate the relative strengths of the forces and their interactions with each other
      • devise a plan that effectively positions the company against its environment
    • Changing strategy means changing the whole system that underpins it
    • Identify the sources of competitive advantage and know your starting point before setting out
    • The President or CEO of a company is the architect of organizational purpose (strategy)
    • Strategy is an integrated set of choices
      • where it will play
      • where it will NOT play
      • how it will play
      • what it wants to accomplish
    • A strategy must have a clear objective (ends), advantage (means) and scope (domain)

    I hope those short-hands of pretty complex and exciting concepts were insightful, as I personally find them very meaningful. In any case I need to run, I have one-on-one consultation with one of my professors.