John Gokongwei Jr.'s 10 nuggets of wisdom
August 13, 2001 | 12:00am
Though often described as media-shy, John has been in the media spotlight since his assault on San Miguel Corporation in 1976. He has been the subject of many profiles, including three Asiaweek cover stories which straddled three decades of his business life.
Here are 10 nuggets of business and personal wisdom taken, unadulterated, from those profiles.
1. Expand your mind through traveling and reading. "I travel around the world at least once a year to see what others are doing. I do a good two hours reading a day, mostly about how American business groups expand and develop. In fact, I get about 200 annual reports a year from foreign firms." – From "What Makes Johnny Run?" Insight Magazine, February 1979
2. It’s cheaper by the dozen. The success of his Manila hotel project illustrates perfectly Gokongwei’s business philosophy: identify the demand and provide the service/product to satisfy it, operate it cheaply, then sell on volume basis. His hotel had the lowest per-room construction rate of any of the major new units built in Manila and it currently has the lowest operating costs. On the other hand, it generally had the highest occupancy level following aggressive marketing policies in Japan, Taiwan and Hong Kong. – From "What Makes Johnny Run?" Insight Magazine, February 1979
3. Satisfy life’s necessities first. "I think I’ve always wanted to be in the food business," he said. "I don’t have the make-up or the patience to deal with something that I didn’t consider essential to human living. I mean, I never saw myself going into, say, public relations or the movies...my basic desire and decision was to work in the field of food production. That never changed." – From "Who is Gokongwei and Why is He Doing All Those Nasty Things to San Miguel?" Outlook Magazine, 1976
4. Lead by example. "If you want your people to work hard, you must work hard yourself." Typically, he works from 9 a.m. to 9 p.m., though management meetings sometimes push that closer to midnight. – From "The Man Who Wanted More," Asiaweek, December 22, 1979
5. Don’t spoil the kids. "I sometimes spank my children except for Lance. I don’t spoil them. I don’t want them to have plenty of money." Indeed he plans to plough his own money into a foundation instead of transferring it by inheritance. Joan Robina, after whom the biggest company in the group was named, works at URC as a clerk, "earning minimum wage." – From "The Man Who Wanted More," Asiaweek, December 22, 1979
6. Hold people accountable but reward performers. "We’re very strict here. We have forecasts, goals, a budget. If a budget is not met, we go after the people concerned." But virtue has its rewards. For those in key positions who have generated profits for the companies, says a former Gokongwei employee, there are special envelopes on Chinese New Year that contain "staggering sums," enough to take a trip to, say, Hong Kong. – From "The Name is Gokongwei," Goodman, June 1976
7. Choose your partner well. Of his wife Elizabeth, to whom he hurried home on March 19 even when his SMC defeat was crashing down upon him – the day was their 18th wedding anniversary, the newspapers faithfully reported – he says: "The kind of woman one doesn’t have to quarrel with; so refined she doesn’t have to bother with things beneath her." – From "Who is Gokongwei and Why is He Doing All Those Nasty Things to San Miguel?" Outlook, 1976
8. Be frugal. His modest 21st floor office (of the PCIbank Headquarters in Makati), previously used by a passive director, became too small for the work he did at the bank. A bigger office is being readied – but not at his bidding. He seems uneasy with the rather well-heeled ways of the bankers there. Told what was spent on beverages in the executive lounge, he started making his own tea. – From "Big and Getting Bigger," Asiaweek, August 12, 1988
9. Love yourself. Asked who he would like to be reincarnated as, he answers: "Me." – From "Life According to John, Lance, Robina," Philippine Star, August 8, 2000
10. Steer clear of politics. Indeed, it is an interesting feature of this powerful businessman that he operates well outside the normal political boundaries within which so much of the nation’s big business is conducted. The list of aspiring merchants who have beaten a hasty path to the gates of the presidential palace since Ferdinand Marcos assumed power 13 years ago reads rather like a Who’s Who in Philippine big business: Roberto Benedicto (banking, shipping, hotels); Rodolfo Cuenca (construction, hotels, shipping); Herminio Disini (banking, airlines, nuclear power, cigarette filters)... Gokongwei, however, is very much the exception to this rule. His economic strength, say local observers, does not rely on the usual high-placed connections or the country’s well-established old-boy network, but on his own vision and industriousness. – From "What Makes Johnny Run?" Insight Magazine, February 1979
Here are 10 nuggets of business and personal wisdom taken, unadulterated, from those profiles.
1. Expand your mind through traveling and reading. "I travel around the world at least once a year to see what others are doing. I do a good two hours reading a day, mostly about how American business groups expand and develop. In fact, I get about 200 annual reports a year from foreign firms." – From "What Makes Johnny Run?" Insight Magazine, February 1979
2. It’s cheaper by the dozen. The success of his Manila hotel project illustrates perfectly Gokongwei’s business philosophy: identify the demand and provide the service/product to satisfy it, operate it cheaply, then sell on volume basis. His hotel had the lowest per-room construction rate of any of the major new units built in Manila and it currently has the lowest operating costs. On the other hand, it generally had the highest occupancy level following aggressive marketing policies in Japan, Taiwan and Hong Kong. – From "What Makes Johnny Run?" Insight Magazine, February 1979
3. Satisfy life’s necessities first. "I think I’ve always wanted to be in the food business," he said. "I don’t have the make-up or the patience to deal with something that I didn’t consider essential to human living. I mean, I never saw myself going into, say, public relations or the movies...my basic desire and decision was to work in the field of food production. That never changed." – From "Who is Gokongwei and Why is He Doing All Those Nasty Things to San Miguel?" Outlook Magazine, 1976
4. Lead by example. "If you want your people to work hard, you must work hard yourself." Typically, he works from 9 a.m. to 9 p.m., though management meetings sometimes push that closer to midnight. – From "The Man Who Wanted More," Asiaweek, December 22, 1979
5. Don’t spoil the kids. "I sometimes spank my children except for Lance. I don’t spoil them. I don’t want them to have plenty of money." Indeed he plans to plough his own money into a foundation instead of transferring it by inheritance. Joan Robina, after whom the biggest company in the group was named, works at URC as a clerk, "earning minimum wage." – From "The Man Who Wanted More," Asiaweek, December 22, 1979
6. Hold people accountable but reward performers. "We’re very strict here. We have forecasts, goals, a budget. If a budget is not met, we go after the people concerned." But virtue has its rewards. For those in key positions who have generated profits for the companies, says a former Gokongwei employee, there are special envelopes on Chinese New Year that contain "staggering sums," enough to take a trip to, say, Hong Kong. – From "The Name is Gokongwei," Goodman, June 1976
7. Choose your partner well. Of his wife Elizabeth, to whom he hurried home on March 19 even when his SMC defeat was crashing down upon him – the day was their 18th wedding anniversary, the newspapers faithfully reported – he says: "The kind of woman one doesn’t have to quarrel with; so refined she doesn’t have to bother with things beneath her." – From "Who is Gokongwei and Why is He Doing All Those Nasty Things to San Miguel?" Outlook, 1976
8. Be frugal. His modest 21st floor office (of the PCIbank Headquarters in Makati), previously used by a passive director, became too small for the work he did at the bank. A bigger office is being readied – but not at his bidding. He seems uneasy with the rather well-heeled ways of the bankers there. Told what was spent on beverages in the executive lounge, he started making his own tea. – From "Big and Getting Bigger," Asiaweek, August 12, 1988
9. Love yourself. Asked who he would like to be reincarnated as, he answers: "Me." – From "Life According to John, Lance, Robina," Philippine Star, August 8, 2000
10. Steer clear of politics. Indeed, it is an interesting feature of this powerful businessman that he operates well outside the normal political boundaries within which so much of the nation’s big business is conducted. The list of aspiring merchants who have beaten a hasty path to the gates of the presidential palace since Ferdinand Marcos assumed power 13 years ago reads rather like a Who’s Who in Philippine big business: Roberto Benedicto (banking, shipping, hotels); Rodolfo Cuenca (construction, hotels, shipping); Herminio Disini (banking, airlines, nuclear power, cigarette filters)... Gokongwei, however, is very much the exception to this rule. His economic strength, say local observers, does not rely on the usual high-placed connections or the country’s well-established old-boy network, but on his own vision and industriousness. – From "What Makes Johnny Run?" Insight Magazine, February 1979
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