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Business As Usual

On management of change

- Esteban Vorbeck Managing Director, Energizer Philippines Inc. -

Change happens. It is inevitable and adapting to it, especially for a corporation, can spell the difference between surviving or closing shop. At Energizer Philippines, we recognize and embrace that reality. We have come to view it as a friend that keeps us on our toes and challenges us to find creative and effective ways to handle both successes and errors. More importantly, if change happens, and how fast it happens depends on the whole organization.

Facing change and the challenges it brings, we have come to understand what must be done together as an organization. A change in management is, at the very least, only the beginning. Granted that the leadership in the organization plays a role in making that happen faster or slower, or in pushing toward one direction or another, giving one person or one group of people all the credit for effecting change cannot be accurate.

Too often people think that a change in management is going to do the job but you may keep changing the person on top, however, if the rest of the group does not follow, nothing can come out of it. Everyone in the organization must contribute by accepting and abiding by these changes in order for success to be achieved.

In a multinational company like Energizer Philippines, one advantage that we have is a smoother change of management. Multinational companies can rotate certain positions within the organization though based in different countries. It’s a smooth transition of people wherein you can impart a little change in the local thinking but still ensure that it is very much in line with the direction of the entire organization.

In my particular case, my predecessor went on to manage our operations in Australia. I was offered this opportunity after having worked in South America where I managed operations in two countries. The corporation saw that I could offer some things that were of interest to the Philippines, in the same light that my predecessor could offer something new in Australia. So this effects a less traumatic transition rather than bringing in a new managing director from the outside. When you do that, you have a new management that comes in that already has a certain knowledge and expertise in the organization and the industry. You can see the two sides of the coin. You can see two very different points of view.

The local teams are very quick to respond because we do have very bright young employees. We have a very good mix of old-timers — people who have been in the company for 20 to 30 years — and an equal number of people who have been here for less than five years. So that balances many aspects of the company. Admittedly, moving people from one country to another mean that cultural differences come into play. But whether the move is from one continent to another or one province to the next, cultural differences always come into play. It is important to take those in account but it should not hinder an organization’s effectiveness.

When you have a bit of international experience, people tend to say, “In Cebu” “In Manila” “In Davao” “In the Philippines” In Australia” “In the US” etc. Undeniably, the local markets all have certain peculiarities. The Philippines is no different but this country is not filled with Martians! Despite some cultural peculiarities, Filipinos have the same basic concerns as people from Ecuador or Europe. In principle, consumers are the same. So there are minor things that we have to understand and adjust. But otherwise, people are not really completely different.

But as a new manager, even though the consumers are the same everywhere, it does not mean that you will be oblivious to the realities that are around you. You have to understand what the issues are, what the market conditions are, how businesses are standing in that particular country, try to assess the strengths and weaknesses of the business.

For my personal experience, I came to the Philippines about four months before my family arrived and I took that time to travel around the Philippines —  from Tagum in Mindanao to Negros Island, Bacolod to Dumaguete, all over Cebu and Iloilo, and even Lucena to Baguio. It gave me a better idea of what the Philippines was like.

Probably 75 percent of the world is developing markets that are very similar to what we have here in the Philippines. There are striking similarities typical of developing economies. Seeing that for myself when I traveled this country, it gave me a bit more confidence in pushing some programs that we have already experienced elsewhere and handled successfully.

This leads me back to the beginning. Change is inevitable. But here at Energizer Philippines, we have faced the challenge of change together as an organization. Together, we welcomed it. Together, we embraced it. Together, we learned from the positive and negative things that it entailed. Together, we adapted. And together, we are succeeding.

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