Where are we, and where do we want to be?

Has Juan de la Cruz asked this question?

Does it remind us of being in a mall? And chances are there is a monitor that will pinpoint where we are and guide us to the store we want to be.

It is similar to driving a car and wanting to go to an unfamiliar place.

Thank God for the GPS.

As we speak, the wife and I are visiting the daughter and son-in-law in Richmond, Virginia. They are on a road trip that started in Florida – where they spent several weeks, their version of working from home – making stops in Savannah, Charleston, and Richmond on their way back home to Connecticut.

While the wife and I made a much simpler trip: From Connecticut, we spent a night by the Baltimore waterfront before Richmond.

If it isn’t apparent yet, the blog replicates the GPS exercise.

Those familiar with the blog may know that I had a career in strategy, except that at my old MNC-company, managers don’t just plan; they must deliver results no matter their roles. For example, I did numerous restructuring initiatives, not simply to craft a new direction but to ensure its execution – i.e., to create a sustainable and competitive enterprise. And that included tapping an outside technology to beat the competition in the technology race that paved the way to becoming a dominant global brand – reaching close to 70 percent of households globally.

As a blue-chip enterprise with over a hundred years of continuous, uninterrupted dividend history, many retirement funds invest in the company. And now that I’m retired, I appreciate investments that deliver sustainable returns. And as far as the company is concerned, it encourages retirees to diversify their investments, not put their eggs in one basket. And that includes the company’s stock.

But then again, this universe is dynamic that over the last couple of years, they had to up their innovation game. And Juan de la Cruz struggles to internalize this reality — to embrace a growth mindset.

The experience at my old MNC-company of doing both “planning and execution” comes in handy as a volunteer expert in Eastern Europe. I started as a consultant – to introduce them to innovation and product development founded on understanding the hierarchy of human needs and benchmarking against the world’s best brands. But then I was requested to organize and develop the sales organization – because they were a local enterprise and had to learn the ropes in doing business regionally – and globally.

Still, I stepped aside after two years because experience is the best teacher, i.e., they had to learn by doing. As necessary, they “learn” (1) how to think laterally or creatively and (2) to work in teams and cross-functionally – a critical imperative in the pursuit of innovation.

Recall “The Innovator’s DNA” by Jeffrey H. Dyer, Hal Gregersen, and Clayton M. Christensen; Harvard Business Review, December 2009. “And the ability to connect unrelated questions, problems, or ideas from different fields, is central to the innovator’s DNA.”

And thanks to my once assistant, translator, and driver, then a working engineering student – and earning a masters’ degree to boot – the company has an AI-driven information system. And despite Covid or being anywhere in the world, I’m engaged in “big data and analytics” – to guide them in their efforts to (1) stand up to global behemoths and (2) attain sustainable growth and profitability.

As they gained experience, they realize that finding the needle in the haystack presupposes internalizing the GPS power: where are we; where do we want to be; how do we get there.

But let’s speak to the Philippines.

And the following articles drew my attention: (1) Saving capitalism from profit obsession; (2) Export industry seeks more gov't support for promotion; and (3) Focus aids to farms to achieve competitiveness, Habito says.

But first things first: (1) Where are we? (2) Where do we want to be? (3) And how do we get there?

Here is (1) where our instincts come into play and get in the way of answering these simple questions, and then (2) think of finding the needle in the haystack, aka “big data and analytics.”

Recall too the two operating systems in the brain postulated by the 2002 Nobel Prize (in Economics) winner, the Princeton psychologist Daniel Kahneman: (1) automatic and (2) conscious.

One of the best pieces of advice I heard earlier in my career is: “sleep on it.” It reminded me of my first science experiment in high school: an experiment will test a hypothesis. “Air has weight and occupies space.”

In other words, our instincts, background, and experience will explain “our automatic” response to a challenge, for example. And which – as a practitioner and mentor – I would call the ABC of problem-solving: our assumptions, biases, and comfort zones.

And the wife would still remind me “to count to ten or bite your lips.”

So, where is the Philippines, and where do we want to be?

And that is why the blog chose to speak directly to us in the Philippine elite class. Our value of hierarchy and paternalism will explain why we automatically pull rank “for the good of Juan de la Cruz.” In other words, it is not “mother knows best” – “we know best.”

We must acknowledge that we are the regional laggard – and why Juan de la Cruz suffers from abject poverty. That is where we are – our being in the Philippine elite class notwithstanding. See above; finding the needle in the haystack.

The bottom line: We must traverse poverty to prosperity.

But can be we embrace that? 

We must acknowledge that our neighbors demonstrated to the world how to be economic tigers. Ergo: we must benchmark against them – to ascertain “state-of-the-art.” Why? That is how to test if we have attained competitiveness as an economy and nation.

We must recognize that beyond our parochial and insular view is the reality of the 21st century, i.e., defined by (1) innovation and (2) global competitiveness.

Wealthier nations will not demonstrate our value of paternalism.

Recall that democracy is the mirror image of Christianity, i.e., the imperative of personal responsibility for the common good. Freedom-loving nations will embrace interdependence, but that presupposes personal responsibility, not paternalism.

Let’s get back to the articles that drew my attention.

“Saving capitalism from profit obsession,” Bernardo M. Villegas; Human Side of Economics, BusinessWorld, 18th May 2021.

“Given the pressure that the pandemic has exerted on practically all businesses to re-examine their objectives, strategies, and policies as they face the ‘New Reality,’ the concept of corporate purpose has come at a very opportune time.

“Examining the Vision and Mission statements of some of the [PHL’s] leading business conglomerates such as San Miguel Corp., Ayala Corp., and DMCI Corp., one can already discern the seeds of corporate purpose being at the center of strategy, policies, and business model. All three companies — San Miguel, Ayala, and DMCI — started, like Ikea and Ingka, as modest business operations with objectives already beyond profit maximization. In their present forms as large business conglomerates, they have embraced environmental, social and governance (ESG) goals and more.”

Let’s pause right there and ponder: How do these leading Philippine conglomerates expand their social goals?

We must acknowledge that we are the regional laggard – and why Juan de la Cruz suffers from abject poverty. That is where we are – our being in the Philippine elite class notwithstanding. See above; finding the needle in the haystack.

Recall that Vietnam has overtaken us in industrial development. We are into chips while they are the regional manufacturing hub of Samsung smartphones and Apple AirPods.

How much has Vietnam leapfrogged industrial development? The OFW phenomenon has been the driver of the Philippine economy and magnifies how much we’re stuck as a consumption-service economy.

Consider: Our top eight companies combined can’t match one Vietnam enterprise in revenues.

In other words, we are paying dearly for our parochialism and insularity. i.e., failing to (1) embrace a growth mindset and (2) recognize the dynamism of this universe, characterized by interdependence.

Let’s next turn to this article: “Export industry seeks more gov’t support for promotion,” Jenina P. Ibañez, BusinessWorld, 18th May 2021.

“THE EXPORT INDUSTRY is asking for more funding for government promotion and product development initiatives to back the sector’s recovery from the coronavirus pandemic.

“The Trade department can assist product development and use data to identify which sectors to promote; the country continues to lag behind other Southeast Asian economies.

“We think that we have the advantage in terms of creativity, innovation, but we need to support our exporters.

“Financing for smaller exporters continues to be a challenge. [Meanwhile] applications for loans from the Small Business Corp. (SB Corp.) have been sluggish, as the government agency tightened lending standards. SB Corp. had additional funds to assist businesses affected by the pandemic.

“It is difficult for the Philippines to penetrate the export market as it competes against Thailand, Indonesia, China, and Cambodia.”

Let’s stop right there.

Does the preceding article confirm that we suffer from “learned helplessness?” Here’s a quote from an earlier posting: “As I have listened to individuals who feel trapped and stressed, unable to muster the energy to facilitate change, I think about Martin Seligman’s research on ‘learned helplessness.’ It captures the belief that ‘regardless of what I do, nothing really will change, so why exert the effort.’ Once a feeling of learned helplessness begins to dominate one’s mindset, most difficult situations elicit feelings of resignation, defeatism, and stress.” [Stressed Out or Stress Hardy (?), Robert Brooks, Ph.D., http://www.drrobertbrooks.com/wp/wp-content/uploads/1999/04/Stressed-Out-or-Stress-Hardy-Part-1.pdf]

In other words, we are engaged in a circular argument: which comes first, the chicken or the egg?

The industry is pointing the finger at the government that is then returning the favor. Recall that despite our professed faith, we are yet to internalize that democracy is the mirror image of Christianity, i.e., the imperative of personal responsibility for the common good.

Sadly – and that is an understatement – we are yet to wake up to the reality of the 21st century. Our instincts can render us extinct if we don’t do it soon enough.

Here’s one more article to discuss: “Focus aids to farms to achieve competitiveness, Habito says,” Revin Mikhael D. Ochave, BusinessWorld, 18th May 2021.

“SELF-SUFFICIENCY in food production will depend on well-targeted support to farmers in improving their productivity and competitiveness, a former head of the government’s socioeconomic agency said.

“Food self-sufficiency is best pursued via meaningful and ‘effective’ support for farmers to improve productivity and competitiveness, Mr. Habito said.

“Agriculture is too important to be left to the DA alone. Farmers, bureaucrats, scientists, large and small entrepreneurs, bankers and financiers, traders, logistics providers, workers, and general consumers all have valuable roles to play, Mr. Habito said.

“Rolando T. Dy, executive director at the Center for Food and Agri-Business of the University of Asia and the Pacific, said the country needs to exert extra effort in controlling African Swine Fever (ASF).

“We need extra effort in the control of ASF, the development of its vaccine, and the clustering of backyard hog raisers because they are usually the source of ASF, Mr. Dy said.

“Mr. Dy added that the Philippines was 73rd out of 113 countries in the Global Food Security Index and lagged other countries in ASEAN such as Indonesia at 65th, Thailand at 51st, and Malaysia at 43rd.

“The index is an annual assessment measuring food security using the anchors of affordability, availability, quality, and safety metrics.

“Agriculture Secretary William D. Dar said he expects the farm sector to rebound this year and added that the DA is still aspiring to achieve its 2.5% growth target for 2021.

“We in government cannot do this alone. We need the support of all stakeholders and sectors, especially our local governments, in making our food production and distribution systems more inclusive, resilient, and sustainable,’ Mr. Dar said.

“Investment in agriculture — both from government and the private sector — can help revive food production, modernize and industrialize the agriculture and fishery sector, and create jobs following a crisis and enable rural communities to recover and grow.”

The bottom line: What else is new?

Can the Philippines save capitalism, or should Juan de la Cruz “save” the Philippines? 

At the rate we are going, we are in an aggressive race to the bottom.

Why? 

Recall our instincts: We are parochial and insular. We value hierarchy and paternalism and rely on political patronage and oligarchy that ours is a culture of impunity.

Let’s not kid ourselves. This was a long time coming?

And over the dozen years of the blog’s existence, we are yet to demonstrate that we can course correct. 

We missed every turn in the fork. And we in the Philippine elite class must recognize our shortcomings.

Benchmark against our neighbors. 

Seek “state-of-the-art.” 

We are “behind the eight ball!”

Gising bayan!