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Far from devalued, euro surges as trade war hits yuan

LONDON — If evidence is needed of how far ripples from the Sino-US trade war are reaching, have a look at Europe where the yuan’s slump is driving up the euro’s value against trade partners’ currencies, handicapping the export-reliant bloc’s economy.

Contrary to US President Donald Trump’s grumbles about a “devalued” euro handing the region’s exporters an unfair advantage over US rivals, the euro has risen to five-month highs versus trading partners’ currencies, an index compiled by the European Central Bank (ECB) shows.

Since Mr. Trump took office in early 2017 the index, which measures the euro’s weighted average against a basket of the bloc’s 19 main trading partners, has risen four percent.

Worsening trade tensions have fueled the appreciation. The euro is up 1.6% since early May and stands two percent below three-and-a-half year highs hit in 2018.

The strength presents another headache for the European Central Bank as it struggles to revive the region’s sluggish economy, highlighting the need to stimulate domestic demand and reduce the bloc’s reliance on exports.

REWEIGHTED BASKET
Shifting trade patterns mean the share of emerging currencies in the trade-weighted euro basket has risen sharply. China’s yuan has around 23%, up from less than 10% in 2003, while the dollar’s share has shrunk to 17% from 22% over the same period.

Policy makers in Frankfurt are concerned.

Sources familiar with ECB discussions told Reuters after its meeting last week that rate-setters were open to cutting benchmark borrowing costs further from 0.40% if euro strength continued to hurt an economy bearing the brunt of the trade war.

“I’ll give you five reasons for a rate cut,” one of the sources said, before repeating “exchange rate” five times.

While the ECB does not formally target an exchange rate, its President Mario Draghi last week noted the euro’s appreciation in his post-meeting news conference.

“For a central bank that is looking at the risk of a slowing economy and with weak inflation, the last thing they need is a stronger exchange rate,” said Jane Foley, an analyst at Rabobank. European policy makers would not welcome Trump “talking down the dollar,” she added.

On some valuation models, such as purchasing power parity, the euro is indeed undervalued, given the dollar has strengthened in recent years, Ms. Foley said.

But she attributed that to the US economy’s outperformance and the Federal Reserve hiking interest rates steadily since late 2015.

“You can’t have it both ways,” she said.

And while Mr. Trump could plausibly carp at the euro’s 4%-plus decline versus the dollar over the past year, the single currency has actually risen around 7% against the greenback since he was sworn in.

THE MAGIC NUMBER
Where the euro goes from here will depend to a large extent on how far Beijing allows the yuan to weaken.

The Chinese currency has fallen heavily since May, nearing the psychologically important 7-per-dollar level after new US tariffs on Chinese goods heightened fears of a sharp economic slowdown.

Beijing might well allow that mark to be breached if trade wars escalate, with central bank chief Yi Gang saying recently he didn’t think any “numerical number” was more important than another.

Meanwhile, the trade-weighted euro is already blunting the competitive edge of the region’s big exporters, including in powerhouse Germany whose sales abroad dropped in April by nearly 4%, the biggest decline since August 2015.

The euro exchange rate shift makes it harder to reverse the economy’s slowdown, but the bloc’s problems go deeper — sluggish domestic demand, political instability in Italy and resistance in Brussels to growth-boosting fiscal expenditure.

It is also unclear that a weaker euro would actually help at a time when slower world growth is hurting consumer demand for goods and services.

Konstantinos Venetis, senior economist at TS Lombard, said exchange rates were a lesser issue than some years ago when “currency wars” saw countries actively try to influence exchange rates to get an edge over rival nations.

“What you really need is to see global demand picking up. If that happens, euro even at $1.20 won’t be so painful,” Mr. Venetis said.

“Currency depreciation can be a way to help your exports only if the world is growing briskly and demand is healthy.” — Reuters

Amazon Web Services to offer second year of cloud skills training for schools

AMAZON Web Services (AWS), a unit of Amazon.com, said it has started to offer a second year of cloud technology training sessions for higher educational institutions, expanding beyond Metro Manila to include participants in other parts of Luzon as well as Cebu and Davao.

The event is called Siklab Pilipinas 2019, a series of sessions running from May to December, with the kickoff sessions beginning recently in Metro Manila.

“At the inaugural AWS Siklab Pilipinas event in Manila last year, we saw enthusiastic participation from hundreds of students, educators and customers,” AWS said in a statement, quoting Vincent Quah, the company’s Asia-Pacifc head for Education, Research and Not-for-Profits. “Since then, ore education institutions have asked us to brng (the event) back to the Philippines, to continue with out cloud skilling program.”

AWS cited World Economic Forum data which found that 72% of companies in the Philippines are expected to adopt cloud computing technologies, with 84% signalling their intent to hire new permanent staff to address the need for skills “relevant to new technologies.”

AWS said it is partnering with Edukasyon.ph, an online social enterprise connecting students with education opportunities.

Participants completing their training will be invited to job fairs run by AWS customers Globe Telecom, Inc., Cebu Pacific Air, and the Aboitiz group for possible employment or internship opportunities.

The next leg is scheduled for Cebu City on July 16-18.

Harbor Star inks deal with Malaysian company

A SUBSIDIARY of listed firm Harbor Star Shipping Services, Inc. said it signed a deal with a Malaysian wholesaler to provide it with harbor tug services.

In a disclosure to the stock exchange Thursday, the tugboat and cargo vessel firm said its subsidiary in Malaysia, Peak Flag Sdn Bhd, was tapped by Westports Malaysia Sdn Bhd to provide its services in Port Klang.

“Peak Flag will provide a 60-ton bollard pull tug for a period of three years with an option for extension for another two years. Peak Flag is expected to commence the harbor tug services to Westports Malaysia on the 3rd week of June 2019,” it said.

Port Klang is Malaysia’s main sea gateway, where Harbor Star said Westports Malaysia is the biggest terminal operator handling 75% of the port’s throughput. It noted in the first quarter, Westports Malaysia handled a total of 2.53 million twenty-foot equivalent units (TEUs) and 2.36 million metric tons of conventional cargo from the port.

Harbor Star posted an attributable loss of P84.6 million in the January to March period, a turnaround from its attributable profit of P27.3 million in the same period last year, due to a 12% drop in service income.

It earlier said its plan was to sign more exclusive service contracts with companies to help it ensure recurring revenue.

Harbor Star signed such deals with Mariveles Grains Corp. (MGC), GNPower Kauswagan Ltd. Co. and Chevron Philippines, Inc. to offer its range of services to the companies. — Denise A. Valdez

1960s singer says he has Alzheimer’s

THE 1960s-era singer and comedian Steve Lawrence, seen here with his wife and performing partner Edyie Gorme in 2000, said on Tuesday he has been diagnosed with Alzheimer’s disease. In a letter released by his publicist, the 83-year-old Lawrence said the disease was in its early stages and he was “being treated with medications under the supervision of some of the finest doctors in the field,” adding “Fortunately, they have managed to slow down this horrific process.” Lawrence married Gorme in 1957 and together they became a staple on American late-night and variety television programs. Their playful husband-and-wife banter was a distinctive element of their performances over the decades. We Got Us, the first album from the duo that came to be known as Steve & Eydie, won a Grammy in 1960. Gorme died in 2013. Lawrence said he was “living my life, going out in public and trying to spend as much time as possible with my family and friends while I am still able to engage and enjoy.” He added: “I ask for your prayers, your good wishes and implore you to find the joy every day, because what I feel is gratitude, love and hope — nothing more and nothing less, and I hope you can find the same.” — Reuters

Regulated Bitcoin futures markets boom as investors seek a safer ride

LONDON — When Bitcoin was born it was a symbol of counterculture, a rebel currency with near-anonymity and a lack of regulation. A decade later, there are growing signs it’s entering the establishment its creators sought to subvert.

As the cryptocurrency has surged in value, bigger investors, from trading firms to hedge funds, have increasingly turned to exchanges regulated in traditional financial centers. They are buying Bitcoin futures to gain exposure to the asset while avoiding the hacks and heists that plague the industry.

The crypto market, associated by many with the dark web, money laundering and the Wild West, is beginning to be discussed by financiers in the same breath as derivatives, hedging instruments and compliance.

Investors plowed record levels of money into Bitcoin futures at regulated exchanges in the United States and Britain last month, hungry for a piece of the action but seeking the kind of protection that will satisfy their compliance officers.

Between March and May, Bitcoin more than doubled in price, an ascent peppered by double-digit price swings reminiscent of its 2017 bubble, which was driven by smaller retail investors.

During that period, Chicago-based CME Group Inc.’s average daily volumes of futures contracts climbed over seven-fold to a record $508 million in May. The number of open interest contracts — those that haven’t been settled — also hit a record.

CME said Bitcoin’s price gains, and the subsequent increase in volatility, attracted new investors seeking to hedge risk.

Crypto Facilities, a London-registered platform bought this year for over $100 million by major US cryptocurrency exchange Kraken, said Bitcoin futures daily trading volumes jumped over three-fold from March to a record $84 million in May.

In a sign of the growing mainstream market, the owner of the New York Stock Exchange, Intercontinental Exchange Inc (ICE), plans to offer Bitcoin futures in the coming months through a new crypto-trading platform, Bakkt.

“It’s logical they (institutional investors) would want to be moving in this direction, especially considering their size and how much more there is at stake,” said Joel Kruger, currency strategist at LMAX Exchange Group.

HEDGING INSTRUMENT
Futures — financial contracts that lock buyers and sellers into trading an asset at a set date and price — are seen as key components of any mature market, as they boost market liquidity and allow investors to bet on the direction of prices.

“It’s a useful hedging instrument,” said Daniel Matuszewski, head of trading at Goldman Sachs-backed crypto firm Circle. “Futures are much easier to trade, much easier to use for hedging, much easier to get leverage on.”

Playing out in the spiking demand is the emergence of a twin-track global Bitcoin futures market — on “onshore” exchanges like CME and “offshore” exchanges, which are more lightly regulated and still command the bulk of the multi-billion-dollar daily market.

Onshore exchanges — those regulated in established financial centers — are usually subject to strict checks on governance, technology and client vetting. They demand a high degree of transparency.

Offshore platforms, in contrast, are typically registered in jurisdictions with less onerous rules. They tend to accept business from investors who can sign up with few checks on their identity or the provenance of their funds.

Larger investors, bound by strict compliance rules, are heading to regulated platforms in financial hubs like CME, according to industry players. Traders with more tolerance for risk — including retail investors from north Asia and companies earning money in cryptocurrency, from miners to gaming firms — use of offshore exchanges.

“Offshore exchanges aren’t really exchanges — they are more like private markets,” said Vladimir Jelisavcic of trading firm Cherokee Acquisition in New York.

‘STARS HAVE ALIGNED’
Offshore exchanges have offered Bitcoin futures since as early as 2011. One of the biggest, Seychelles-registered BitMEX, said it now accounts for over 65% of global cryptocurrency derivatives trading. Trading volumes were $4.3 billion in May, it said.

BitMEX CEO Arthur Hayes said, however, that larger investors were being increasingly drawn to onshore exchanges like CME.

“It’s the perfect product (for bigger investors) — it’s US-dollar based, they never have to touch actual Bitcoin, it’s financially settled,” he said.

The launch by CME and rival Cboe Global Markets in December 2017 marked the first time mainstream exchanges offered cryptocurrency derivatives.

They initially faced tepid demand. Cboe said in March, when Bitcoin languished below $4,000, that it planned to discontinue its futures, with the final contracts expiring this month.

For their part, CME’s futures have typically seen thin liquidity and high barriers to entry for smaller investors, said Ricky Li of crypto trader Altonomy in New York.

The growing gap in the market for futures from onshore exchanges is stimulating growing competition and attracting new entrants, such as ICE.

Sui Chung, head of cryptocurrency pricing products at Crypto Facilities, said compliance-wary institutional investors had been assessing the various futures products offered by regulated exchanges for some time, as they awaited a spike in prices to allow them to enter the market.

“This is the first time those stars have aligned,” he said. — Reuters

Reckitt picks PepsiCo executive as CEO, going outside for first time

CONSUMER GOODS group Reckitt Benckiser has picked PepsiCo executive Laxman Narasimhan as its next chief executive, becoming the latest industry heavyweight to turn to a company outsider to tackle faltering growth and new media-savvy rivals.

Narasimhan, PepsiCo’s global chief commercial officer, is the first external candidate to be appointed as CEO at Reckitt since the maker of Durex condoms, Nurofen tablets and Dettol cleaners was formed in 1999.

The 52-year-old takes over as CEO on Sept. 1, replacing Rakesh Kapoor, 60, who has led Reckitt for more than eight years and said in January he would retire this year.

Analysts welcomed the appointment, saying the new CEO would inject a fresh perspective to a company facing industrywide challenges to growth, though some said it raised doubts about the fate of Reckitt’s restructuring plan.

The appointment is the latest in a series of external hirings as major consumer goods groups look to make up ground lost to smaller brands that have done a better job selling online and connecting with millennials on social media, while also facing investor pressure to boost efficiency.

Analysts had tipped Reckitt’s health division operations chief Aditya Sehgal and hygiene home president Rob de Groot as potential internal successors to Kapoor.

In the end, Narasimhan’s experience running large scale consumer businesses in developed and emerging markets helped him beat out 60 candidates reviewed for the job, Reckitt Benckiser Chairman Chris Sinclair told Reuters.

“He has got great perspective, but first and foremost we saw him as a consumerist and a consumer marketer and that’s what set him apart,” Sinclair said.

At PepsiCo, the chief commercial officer position held by Narasimhan will now be filled by the company’s Greater China CEO Ram Krishnan, the US drinks maker said.

As well as industry challenges, Reckitt has faced company-specific setbacks in recent years, including a safety scandal in South Korea, a failed product launch and a cyber attack.

Kapoor launched a restructuring plan, dubbed RB 2.0, to split the group into two business units — one for health and one for hygiene and home products — under the same parent company.

Reckitt said on Wednesday Narasimhan would be charged with delivering the plan, due to be completed in 2020, but some analysts suggested he might have other ideas.

“The appointment of a new, external CEO is bound to raise questions regarding the timing of the end of the group’s RB 2.0 plan and whether it will ultimately lead to a split of the company,” Liberum analyst Robert Waldschmidt said.

Sinclair, however, said Reckitt was on track to complete the 2.0 program by mid or late 2020 and that Narasimhan agreed with the plan.

‘FRESH PERSPECTIVE’
Jefferies analyst Martin Deboo questioned why a company already smaller than rivals Procter & Gamble and Unilever wanted to “descale itself,” which could hobble its ability to compete in emerging markets.

Reckitt shares were up 1.6% in afternoon trading on the London Stock Exchange.

At least three analysts welcomed Narasimhan’s appointment.

“Narasimhan’s strategic and leadership background make him a strong fit for Reckitt. We believe he will bring a fresh perspective to both the business and to investors,” Morgan Stanley analyst Richard Taylor wrote in a note.

Narasimhan led Strategy, Global Category Groups and Global R&D in his capacity as Chief Commercial Officer at PepsiCo.

Prior to that, he headed the beverage maker’s Latin America, Europe and Sub-Saharan Africa operations, managing annual sales of 14.5 billion pounds ($18.5 billion) — more than the total annual sales of Reckitt Benckiser. At one time he was also chief financial officer of the group’s Americas Foods business.

Narasimhan studied mechanical engineering in India before moving to the United States for an MBA degree. Before joining PepsiCo, he worked at consultants McKinsey for two decades, where he advised on large consumer and health care deals. — Reuters

SMC to build food bank in Tondo

SAN MIGUEL Corp. (SMC) is building a food bank and community center in Tondo, Manila as part of efforts to ramp up its sustainability programs.

The diversified conglomerate said in a statement that the 1,000-square meter facility called Better World Community will be located in Barangay 101 in Tondo, across relocation sites Aromaland and Happyland. The facility will stand on what used to be a beer warehouse and distribution center for the company.

“This is just the first. By building more sustainable communities in the country we hope to empower those in reduced circumstances to be able to transform their lives,” SMC President and Chief Operating Officer Ramon S. Ang said in a statement.

The facility will serve as a food bank, soup kitchen, and livelihood training center for low-income families. SMC has partnered with the local chapter of international organization Rise Against Hunger for its operations.

“The target is to feed more than 5,000 people every day. Rise Against Hunger will help in recovering surplus food from San Miguel Food and Beverage, Inc. (SMFB), its food service arm Great Food Solutions, as well as the Manila Diamond Hotel and Makati Diamond Residences,” Mr. Ang said.

Aside from the food bank, SMC will also be providing after-school learning to children in the community with partner A-HA! Learning Center. It will also tap other organizations to set up livelihood training and other capacity-building programs.

The conglomerate earlier said it will spend P1 billion to clean up the Tullahan River, whose water flows to Manila Bay.

SMC has also committed to cut its group-wide water use by 50% by 2025. In 2018, the company already recorded a 25% reduction in its water use, equivalent to about 8.8 billion liters of water. — Arra B. Francia

Your Weekend Guide (June 14, 2019)

Beautiful the musical

KAYLA RIVERA plays the lead in Beautiful: The Carole King Musical.

BASED on the true story of Carole King’s remarkable journey from teenage songwriter to rock ‘n’ roll legend, Beautiful features classics such as “You’ve Got a Friend,” “One Fine Day,” “So Far Away,” “Will You Still Love Me Tomorrow,” and “Natural Woman.” Beautiful: The Carole King Musical, a production of Atlantis Twenty, will run until July 7 at the Meralco Theater, Pasig City. It stars Kayla Rivera and Nick Varricchio, and is directed by Bobby Garcia. Tickets are available at TicketWorld (891-9999, www.ticketworld.com.ph).

Swan Lake

THE Moscow Ballet’s classical choreography arm La Classique will perform the ballet classic Swan Lake, at the New Frontier Theater from June 14 to 22. Sharing the stage with the Moscow Ballet company are two Bolshoi Ballet principal dancers, Nina Kaptsova and Alexander Volchkov. The production of Swan Lake will be accompanied by the Russian Symphony Orchestra, under the baton of conductor Yaroslav Tkalenko. Tickets are available at all TicketNet (www.ticketnet.com.ph, 911-5555) and TicketWorld (www.ticketworld.com.ph, 891-9999) outlets.

Father’s Day at Shangri-La Plaza

SHANGRI-LA Plaza mall features the up and coming Male Ensemble Nine (MEN) in HANDOG: Father’s Day Tribute Concert 2019 on June 16, 7 p.m., at the mall’s Grand Atrium. The all-male group’s repertoire ranges from all-time favorites and classic OSTs, to OPM hits.

24th French Film Festival

ONGOING is the 24th French Film Festival whose slate of 15 films “explore the depths of human relationships and the importance of family.” The festival run until June 18 at the Bonifacio High Street Cinemas and Greenbelt 3 Cinemas. The festival will then move to the Ayala Center Cebu, June 20 to 22; the Abreeza Mall, Davao, June 28 to 30; and Ayala Capitol Central Mall, Bacolod City, July 10 to 12. Tickets are P150 per screening and can be purchased through the box office or via sureseats.com. For details on the film-line-up, synopses, trailers, and screening schedule, visit www.ph.ambafrance.org or www.facebook.com/FrenchEmbassyManila.

We Bare Bears tour

THE We Bare Bears bros — Grizz, Pan-Pan, and Ice Bear — have been in the country to give hugs and spread PAW-sitivity over the past few weeks. On June 16, they will be at the Glorietta Activity Center for a day filled with activities, prizes and, lots of selfie opportunities. For updates visit HugsTour.CartoonNetworkAsia.com/event/Philippines.

Malaya Music Festival

CELEBRATE Philippine independence by rocking out with some of local music’s hottest acts at the Malaya Music Festival at the Garden in Okada Manila on June 15. Performing are OPM icons Ebe Dancel, Urbandub, and Mayonnaise, as well as Johnoy Danao, Bullet Dumas, Gracenote, and December Avenue. Doors to the Malaya Music Festival open at 4 p.m. Food stalls and mobile bars are available at the event. Tickets are P1,000 each and include a free San Miguel Beer and access to the indoor beach club and nightclub Cove Manila. Tickets are available at okdmnl.ph/Malaya2019. For more information on tickets and upcoming events, visit okadamanila.com.

PHL Fashion Week Holiday

CROWNE PLAZA Manila Galleria will be hosting Philippine Fashion Week’s 2019 Holiday collection show on June 15 and 16 at the hotel’s Grand Ballroom. The two-day event kicks off the fashion event’s three-year partnership with the hotel as its official venue for its series of shows from 2019 to 2021. There will be four shows each day, at 2, 4, 6, and 8 p.m. June 15, 6 p.m., will see the Crowne Plaza Manila Galleria Bridal Fashion Show. The show is in conjunction with the “She Said Yes! Bridal Fair” on June 15. For inquiries, call 633-7222 or e-mail cpgm.resevations@ihg.com.

Mark Siwat in Manila

ONE of Thailand’s fastest rising young actors, Mark Siwat, revisits the Philippines for his first solo fan meeting on June 16, 3 p.m., at Shaw Zentrum, Shaw Boulevard, Mandaluyong City. He has starred in I Am Your King: The Series, and performed in Love by Chance. Tickets are available at www.facebook.com/wishusluckteam.

Ticket range in price from P3,500 (with a group photo, a handshake with gift giving, and game participation raffle) to P7,500 (which includes a meet and greet, signed Polaroid shot, a selfie, poster signing, a handshake with gift giving, send-off, and game participation raffle). My Turn: Mark Siwat 1st Live and Meet in Manila 2019 is presented by Wish Us Luck (Philippines) in partnership with 2gether House (Thailand).

Customer journey mapping

Many technology companies and start-ups are disrupting incumbent industry players by providing better customer experience, thereby capturing significant market shares. Take for example Dollar Shave Club, which disrupted the razor market in the US in 2012, grabbing 30% market share from Gillette in just a few years by offering good enough blades through a direct-to-consumer selling via internet and mail order until it was acquired by Unilever for a reported $1 billion in cash.

How can Dollar Shave Club and other start-ups, despite their smaller operations and marketing budget, grab customers from existing market leaders? The answer is how obsessed they are with addressing customers problems by understanding their experience throughout journey of using and availing of a product or service.

A powerful tool we use in our consulting work to help understand the context of users is the customer journey map. It is a story designed to provide insights into the customer’s journey and to give an overview of the customer’s experience, i.e. the entirety of the interactions a customer has with a company and its products. This overall experience reflects how the customer feels about the company and its offerings.

There are eight major steps in the customer journey mapping exercise, namely:

1. Define your customer personas. These are fictional, generalized representations of your ideal customer types within your targeted demographic, attitude and/or behavior set that might use your offering. They help you understand your customers and prospective customers better, and make it easier for you to tailor content to the specific needs, behaviors, and concerns of different groups.

An example of a customer persona we always go through with our clients is the millennial customer persona, which for example can be giver a name Dan. He is 26 years old, finished college from a top university, a data analyst in a bank earning P70,000 a month, loves to travel, with a main goal in life to live his best.

2. Identify customer persona activities. This involves plotting the step-by-step stages of the customer’s interaction with the company. It ideally follows the buying cycle of a customer — awareness, consideration, decision, delivery and use, and loyalty and advocacy.

An example of Dan’s activities interacting with an insurance company would be: 1) looking for a life insurance policy for his parents; 2) saw an insurance brand in social media; 3) spoke to a friend who represented the insurance company; 4) bought insurance policies for his parents; 5) he went physically to the insurance company’s branch to file the insurance claim for his father’s death; 6) he is frustrated because it’s taken one week to get the claim

3. Identify primary touchpoints of the persona corresponding to each activity. Touchpoints are encounters that happen between your business and customers. Finding all the touchpoints is critical because each touchpoint leaves some impression and your main goal is to keep it up to the mark. These involve people and things that the persona has direct interaction with.

In the example above, the touchpoint for each stage are: 1) social media and friends; 2) social media; 3) friend who’s an agent and an insurance proposal; 4) insurance agent friend and insurance policy; 5) insurance claims staff and the claims system; 6) insurance claims staff.

4. Identify attitudes corresponding to the persona activities. These are feelings stated in the first person for the persona, which can give insights to your company on potential issues encountered by the persona.

In our example, when Dan expressed his frustration when the insurance claim took a week, his attitude may be, “Why the hell can’t this effing insurance firm process my claim immediately?”

5. Plot the graph of the persona’s experience curve. This corresponds to the attitudes and feelings for each activity of the persona, may it be happy, neutral, or sad. This will graphically show which where the company’s service shines and where it stinks.

Choose the top low points in the experience curve. This is where you choose and prioritize the top three lowest points. In our example, the lowest point is when Dan expressed his frustration when the insurance claim took a week.

6. Identify the needs your persona is not meeting due to these low points. This will help you understand the root cause of the low point in the experience curve. Maslow’s Hierarchy of Needs can guide you which needs are not being met. In the case of Dan, it’s the basic functional and moment needs of the persona which were not met.

7. Identify the impact to the persona and business. This is to evaluate consequence of not meeting the needs of the persona. In the case of Dan, the business impact would be Dan may shift to another insurance provider.

8. Redesign the new service by addressing the low points of the persona. This is where you need to evaluate how to address the low points of the persona in the experience curve. An approach that we use it to provide business executives with a list of innovative strategic tactics to choose from.

In our example, some of the tactics that can be employed to address Dan’s issue are process automation and experience simplification. These tactics can be further explored and detailed to understand how they can be executed.

Customer journey mapping can be a helpful tool in strategic planning exercise of a company, as it uncovers strategies and tactics to better serve its customers. In particular, it can also be a useful approach in broader digital transformation, efforts of an organization because, at its heart, is about adapting to changing consumer expectations.

 

Reynaldo C. Lugtu, Jr is president & CEO of Hungry Workhorse Consulting, a digital and culture transformation firm. He is the chairman of the Information and Communications Technology Committee of the Financial Executives Institute of the Philippines. He teaches strategic management in the MBA Program of De La Salle University.

rey.lugtu@hungryworkhorse.com

How to give clear job instructions to workers

I’m a newly-promoted line supervisor at a Japanese factory in Laguna. My problem is the lack of guidance from our human resources department on how I should be giving clear instructions to my workers. I’m at a loss as our department head keeps on telling me that I should go to HR for guidance. I suspect there’s a professional conflict, if not personality issues between the HR head and my boss. What should I do? (Itals end) — Fork in the Road.

When wild elephants fight, the grass always loses. But it should not always be the case in your situation. In the first place, forget about your suspicions about the “professional conflict” between the two department heads. Regardless, that should not be your main concern. If at all possible, make the “conflict” irrelevant by doing your best to discover the answer to your questions.

Rather than dwelling on the alleged “conflict,” try to find out what’s best with the help of other supervisors and with prior approval by your department manager. Before doing that, explain to your boss that you are having difficulties in getting cooperation from the HR department. There’s no need for you to put gasoline into the fire.

If you have been in that company for long, you may have already understood how office politics can ruin relationships. You don’t have to be a party to that. Therefore, I am suggesting the following steps which are fairly basic, simple and practical. They include:

One, ask your boss on the specific document he wants from HR. This could be your formal appointment paper which includes your job description, performance appraisal form, and job grade level. These are part of HR’s responsibility. You may also want to have a copy of your workers’ job description, job grade level, and skills level. It’s also important to know the personal details of people reporting to you by reading their 201 files. This should help you understand their strengths and weaknesses.

Two, understand the work expectations of your department boss. Get a copy of job standards, resources to be used, and timelines, among other metrics. Compared to HR’s responsibility as stated earlier, your boss has the responsibility to explain to you the requirements of the job. Take the time to discuss with the boss on how a specific task is to be performed by each worker. Sometimes, this may pose a problem when the boss is busy attending to his daily assignments, particularly when there are urgent matters to be dealt with.

Three, ask many questions, including those you failed to ask before. Try to understand the reason or reasons why a certain task is to be done. Explore the answers to the following: Can I make adjustments without affecting product quality or labor productivity? What are my limitations in making a decision without your approval? In case of your absence, how do we deal with such situation?

Last, understand the personality of every worker reporting to you. This is a bit tricky. Even if you think everything is clear, still you can expect your subordinates to miss out on certain things either voluntarily or involuntarily. Expect that one or two of your former co-workers may not like the idea of you being promoted ahead of them. They can even sabotage your work as a supervisor. Therefore, it is advisable for you to modify your personal style depending on the category of worker assigned to you. They may include slow learners, all-knowing superstars, perpetual alibi makers and troublemakers.

No matter how careful you are in giving clear directions on the tasks to be performed, you can never be sure unless you are in close coordination with your workers and your boss. All things can go wrong. This may include people who will be hesitant to bring out the issue into the open.

And so the only assurance that you can expect from people to follow the job standards is to be available all the time and to do periodic monitoring and checking. Try to achieve the right balance. You don’t have to do close guarding or neglect them completely on the pretext of giving them freedom.

Whatever happens, be careful about avoiding problems or making personal attacks. If you do that, chances are, it will only serve as a reason for them to reduce their willingness to cooperate.

ELBONOMICS: A clear instruction helps a lot, but encouragement can do much more.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

Bank of China Manila partners with Prudential Guarantee

Bank of China Manila and Prudential Guarantee and Assurance, Inc., the largest nonlife insurance firm in the Philippines, recently signed a memorandum of understanding to explore opportunities for cooperation and collaboration of their businesses. “Our mission is to be the bridge between markets, and this collaboration allows both Prudential Guarantee and Bank of China to expand our reach and better serve our clients,” Bank of China Manila Country Head Deng Jun said. Prudential Guarantee Chairman Robert G. Coyiuto, Jr. said the company is “proud to partner with Bank of China as we look forward to exploring the possible synergies between our two great companies.”

What to see this week

4 films to see on the week of June 14 — June 20, 2019

Men in Black International


IN this latest installment of the Men in Black franchise, new protagonists played by Tessa Thompson and Chris Hemsworth tackle a mole in the organization — their most global threat to date. Directed by F. Gary Gray, the film also stars Rebecca Ferguson, Emma Thompson, and Liam Neeson. The Rotten Tomatoes review aggregate site gives it a score of 31%. Rafer Guzman of Newsday says it is “A bright and breezy spin-off with two appealing stars,” while Manohla Dargis of the New York Times writes, “Nearly everything here reminds you of something else, often better, cleverer, funnier.”

MTRCB Rating: PG

The Big Trip

A STORK mistakenly delivers a baby panda to the wrong address. So a bear, a moose, a tiger and a rabbit go on an expedition to deliver the baby panda to his parents. This animated film is directed by Billy Frolick.

MTRCB Rating: PG

Teen Spirit

A STYLISH spin on the Cinderella story, teenager played by Elle Fanning joins a local singing competition in the hope of escaping her small town. Written and directed by Max Minghella, the film also stars Zlatko Buric, and Rebecca Hall. The Washington Post’s Michael O’ Sullivan writes, “Don’t expect more of Teen Spirit than the movie can deliver: It’s an unapologetically slight story about a girl with ambitions that many would call shallow. But even as it obeys the rules of the Cinderella story in many ways, it defies them in some others.” Rotten Tomatoes gives the film a score of 72%.

MTRCB Rating: PG

Clarita

BASED on a true story, the film follows the accounts of Clarita Villanueva’s demonic possession and exorcism in 1953. Directed by Derick Cabrido, it stars Jodi Sta. Maria, Arron Villaflor, and Ricky Davao.

MTRCB Rating: R13

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