The country’s most valuable company Philippine Long Distance Telephone Co. (PLDT) recently undertook what could be its most drastic reorganization at the top management level in many years, a move that caught the telecommunications industry by surprise.
But PLDT chairman Manny V. Pangilinan was quick to point out that this reorganization will immensely benefit parent company PLDT and cash cow wireless subsidiary Smart Communications and give the two companies the attention they deserve.
Doy Vea, founder and former president of Smart before it was acquired by the First Pacific group, was named chief wireless adviser, to support Smart president Poli Nazareno and give the latter more time to manage the comprehensive changes taking place in PLDT’s fixed line business. According to sources, Vea was supposed to be name chief operations officer but that MVP later changed his mind.
Pangilinan explained that Vea is the best person to assume the position considering that he is acceptable to the staff, aside from his credentials, most recent of which is as president of Mediaquest Holdings, a wholly owned subsidiary of the PLDT Beneficial Trust Fund.
Whether or not Vea will take the place of Nazareno as president of Smart when the latter retires reportedly in two years’ time is of course too early to tell. There are those who say Danilo Mojica, head of Smart’s wireless consumer division, has become a very valuable asset and should not be discounted as a candidate. But of course, nobody wants to see Poli Nazareno retire, especially those covering the telco beat. Let’s hope reports about his coming retirement are untrue. Of course, who will replace him as president of PLDT in case he retires is another story.
When asked to confirm reports about his impending retirement Poli said “no work is not an option for him and that the reports are not true. Besides, my wife will go crazy if I did,” he kidded.
According to MVP, since Vea’s task will require his full attention, they will have to vacate his post at Mediaquest.
The fixed line business is undergoing a major organizational transformation. Eric Alberto, who used to head PLDT’s corporate business group (CBG), is assuming a bigger role after being named as head of a bigger group to be called customer sales and marketing that will service three key customer segments, namely residential (RBG), corporate (CBG), and small and medium enterprises (SMEs).
Danilo Ibarra has been named the new head of the residential business group (RBG), replacing Butch Jimenez who has decided to take a more minor and less stressful role in PLDT for personal reasons. The SME group will be headed by Kat Luna-Abelardo while no one has yet been named to head CBG.
A second group, customer service assurance, which will include customer service and network.
Engineering, will be headed by Olan Peña who is currently head of network services at Smart.
According to MVP, Olan will most likely retain his position as head of Smart Broadband Inc.
A separate business transformation office will be headed by Victorico Vargas. Meanwhile, George Lim who currently heads PLDT’s network services group and Butch Jimenez have been tasked to assist Vargas in this effort.
Let’s see how the new organization works out.
Locally respected, regionally dominant
Last Monday (Dec. 10), the National Reinsurance Corp. of the Philippines, more popularly known in the industry as PhilNaRe, received a congratulatory advertisement from its three major shareholders: GSIS, BPI, and the Malayan Insurance Group. The reason: PhilNaRe bagged the coveted Insurance/Reinsurance Industry Contribution Award from the recently concluded Asia Insurance Industry Awards held in Singapore.
The award basically positions PhilNaRe as one of the more significant players in the region. After going through a P2.8-billion capital enhancement exercise earlier this year via initial public offering, the company had the capacity of being a spearhead in the campaign for a more stable the Asian Insurance Industry.
PhilNaRe was able to retain more premiums from the fresh capital putting them in a more strategic position to advocate certain industry beneficial initiatives, which promote growth and stability, such as the adoption of minimum rates on natural perils, and the proposal for the establishment of a catastrophe insurance pool.
As 2008 approaches, PhilNaRe is also studying a robust corporate social responsibility program through a partnership with a respected non-profit organization in order to complete the spectrum for a strong corporate governance practice which can lead the company as branded as a Filipino industry champion.
The Singapore-based Asia Insurance Review and London-based The Review Worldwide Reinsurance magazines, which run the Asia Insurance Industry Awards, are not the only regional respected organizations paying homage to the efforts of PhilNaRe.
Internationally respected rating company, A.M. Best, bestowed a financial strength rating of B++ (Good) and an Issuer Credit Rating of bbb (Stable, Investment Grade) to PhilNaRe in order to lend more credibility for the company in the region.
More specifically, an international rating from a reputable agency such as A.M. Best because a Best’s rating reinforces confidence in the organization’s stability, as well as its attractiveness to investors.
NRCP president and chief executive officer Wilfrido Bantayan recently told us that the company is focused on streamlining operations especially in the areas of human resource management, information technology systems, marketing strategies, just to name a few. All these efforts were executed without compromising our service quality to our clients. Because of this, I believe we are justified in receiving a favorable international rating from the independent agency.
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