Shortsighted and dysfunctional

Does that define who we are as a nation?

That’s the cut and dried version of 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.

Why do we want to keep our instincts front and center? Because they reflect our paradigm, our mindset. And it happens to be a fixed one – instead of the growth mindset that separates winners from losers.

Recall that finite milieus – aka social environment – bring about finite minds and finite thinking.

Are we surprised that we can’t “problem-solve”? Instead, we keep piling on the problems of Juan de la Cruz – that he runs like a headless chicken.

Can we pause and ponder: Do we grasp the reality we created for ourselves?

For example, instead of condemning the “moro-moro” of Philippine politics, especially the presidential kind, we are all playing right into it!

Sadly, that is unsurprising. Translation: Our culture of impunity is in full panoramic view – represented by Marcos, Duterte, Arroyo – and who else? Did we not read into the failed nomination of Roque to the ICC? Freedom-loving nations won’t submit to tyranny as we do! Can we connect the dots?

Recall that the blog often references the leadership and foresight of Lee, Mahathir, and Deng. Sadly, we still tolerate the notion that Marcos was a great leader – and Duterte too. And so they can pass on the traits to the son and the daughter. Is that how we connect the dots?

Benchmark. Benchmark. Benchmark.

We are not only the regional laggard, but we are also sinking into the abyss. Any reference to the past can’t be a ray of hope, and we blew it.

In other words, we can’t keep to a fixed mindset.

Instead, we must learn to get ahead of the curve – to move from logical yet linear and incremental thinking to forward- and lateral thinking.

That is not easy because it presupposes defining a point A and a point B – and then figuring out how to get there.

Decades of shortsightedness are not easy to upend.

But we have to start somewhere if we ever are to climb out of this abyss.

Should we pause and ponder?

Between the Philippine elite and chattering classes, we represent the crème de la crème of this nation.

And those familiar with the blog may recall that I’ve worked across all the continents and currently maintain homes in three. In other words, we don’t lag in smarts.

For example, my Eastern European friends asked me if they could compete against the best in the West.

And my response: You have two things going for you. You are more creative and have a better facility with numbers than what I live through in New York.

However, they have a big plus; they love to problem-solve and think it is fun. And are instinctively forward-looking and can define a point A and a point B – and how to get there.

Here’s the backdrop of my response:

They showed me the products they had developed, and they would stand out in any store, East or West. And for them to appreciate the comment, I shared with them that we paid a million dollars for the pack design of one brand at my old company. And I knew that whatever they spent, it was a drop in the bucket.

And then I asked for the gross margins of each product, and they flipped open their laptops and read out each one; I said they explain why they had not made money in eight years.

You are between a rock and a hard place. You must price your products low to sell. – and thus the low margins. And you cannot generate demand because they don’t offer consumers a compelling reason – as in addressing a human need – to buy your products. 

We will first revisit your product portfolio and then define what “business” you must be in because you must be a $100-million-company – the median size of a Fortune 500 subsidiary that is your competition. It is like boxing; you must be in the same weight class – if you are to stay in this business.

And that will put you on a higher plane to invest in understanding the hierarchy of human needs and develop products accordingly. That is what innovation is, and it is not technology per se or design per se.

And recall, these friends were an MSME. Still, they had to accept (1) the challenge of competing against the best from the West, and they must be (2) committed to invest behind innovation – i.e., understanding the hierarchy of human needs – and that is all they can (c) control, i.e., themselves. [If we miss it, that was to illustrate the 3C’s of a hardy mindset.]

In other words, MSMEs must not assume they are dead in the water because they are easy prey for the behemoths. Sadly, in the case of the Philippines, our shortsightedness and dysfunction extend beyond the public sector – and into our most significant companies and MSMEs.

Here’s a quote from an earlier posting: “To forward-think is not to predict the future, and it is to think about and plan for the future, i.e., to be forward-looking. 

“It is not to be held back by history, as demonstrated by Vietnam or Mahathir to Juan de la Cruz. We don’t have to love former colonizers. But we are poor nations; we cannot go it alone, and we need their money and technology.”

Benchmark. Benchmark. Benchmark.

“Apple’s strategy is straightforward. What we want to do is we want to put an incredibly great computer in a book that you can carry around with you and learn how to use in 20 minutes. That’s what we want to do, and we want to do it this decade. And we want to do it with a radio link in it, so you don’t have to hook up to anything, and you’re in communication with all of these larger databases and other computers.”

“We shall send to the moon 240,000 miles away, a giant rocket, more than 300 feet tall on an untried mission to an unknown celestial body, and then return it safely to Earth. But why the moon? Why choose this as our goal? And they may well ask, why climb the highest mountain? Why 35 years ago fly the Atlantic? We choose to go to the moon. We chose to go to the moon. We choose to go to the moon in this decade and do the other things not because they are easy but because they are hard. That goal will serve to organize and measure the best of our energies and skills. And because that challenge is one that we’re willing to accept. One we are unwilling to postpone. And therefore, as we set sail, we ask God’s blessing on the most hazardous and dangerous and greatest adventure that man has ever gone.”

Benchmarking is picking the best practice model, e.g., Steve Jobs, JFK.

Let’s get the Philippines.

Consider: “The ADR Institute had a very informative webinar on the problems we face in the power sector. The presentations confirmed my lingering fears.

“Indeed, the webinar elicited broad interest from the private sector. It shows the extent of the business sector’s feeling of energy insecurity.

“That insecurity is making many executives hesitate to invest in anticipation of a boom in consumer demand with the lifting of COVID restrictions. Many are worried that investments may go to waste as power shortages cripple their ability to do business.

“As it is, the gradual lifting of restrictions has already resulted in power demand surpassing pre-pandemic levels. In Luzon, increased demand has already caused brownouts during the summer months.

“We have many things worry. After the two units of 300 MW of Aboitiz Power went online this year, nothing more is due soon. Yet, existing plants are getting old and unreliable. We need at least 600 MW of additional power to cover demand growth per year in Luzon.

“Then there is Malampaya. There are doubts that the Duterte crony who got his hands on it has the financial and technical capability to keep the natural gas flowing flawlessly. Mismanagement may cause depletion to come sooner rather than later.

“While there is a power supply surplus in Mindanao, the situation in Luzon is precarious. Luzon accounts for 70 percent of our GDP. Never mind trying to attract new foreign investments. High power rates and unreliable service will drive out even those who are already here.

“We are 60 percent dependent on coal in Luzon and 70 percent in Mindanao. We import almost all of the coal we use from just one country, Indonesia.

“The energy department today has also allowed a significant slippage in the delivery of the Mindanao to Leyte transmission line. That would have allowed excess power in Mindanao available for Luzon, which needs it.” [“Energy insecurity,” Boo Chanco, DEMAND AND SUPPLY, The Philippine Star, 15th Nov 2021]

Shortsighted and dysfunctional. Does that define who we are as a nation?

Consider: “We need at least 600 MW of additional power to cover demand growth per year in Luzon.”

What does that represent? It is how we can grow GDP by 6%-7%.

In other words, we are stuck in our paradigm, a fixed mindset – and explains our shortsightedness. And shortsightedness feeds a dysfunctional system.

On the other hand, if we rack our brains to forward-think, we want to be of the same fighting weight as Thailand or Malaysia, i.e., their national income is over two times and thrice ours, respectively.

We need a more significant playing field – a less finite one so that we generate “less finite” thinking.

Let’s quote again from prior postings:

“Question: What is the “outcome” that we seek – as the common good?

“Answer: To traverse poverty to prosperity rapidly. How rapidly? Leapfrog the economic output of our neighbors by rapidly driving GDP by an incremental $200 billion.

“We can’t stay with a finite metric that has failed us, e.g., a 6%-7% GDP growth rate.

“Instead, we must figure out what foreign investment and technology we must lure that will rapidly yield an additional $200 billion in GDP. And it is not rocket science as Vietnam showed the world, and they attracted Samsung while we took FDIs for granted.

“The same forward-thinking applies to agriculture. To be an agribusiness powerhouse, we must not stay with a finite metric that has failed us. We must figure out what tropical produce and their counterpart value-added packaged consumer goods will bring us closer to an incremental GDP of $200 billion.

Consider the Theory of Change: (a) defines long-term goals and then (b) maps backward to identify necessary preconditions. It speaks beyond “outputs” – aka “preconditions” – and stresses “outcomes.”

We struggle with energy because we haven’t defined the “outcome” that we seek. Consequently, we can’t map or trace back to identify the necessary preconditions that, when pulled together, will get us to our desired outcome.

Let’s test that.

Did Apple or JFK or my Eastern European friends deliver on the outcomes that they sought?

Shortsighted and dysfunctional. Does that define who we are as a nation?

We are not only the regional laggard, but we are also sinking into the abyss. Any reference to the past can’t be a ray of hope, and we blew it.

In other words, we can’t keep to a fixed mindset.

Instead, we must learn to get ahead of the curve – to move from logical yet linear and incremental thinking to forward- and lateral thinking.

Gising bayan!