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Magnolia is PBA champion once again

By Michael Angelo S. Murillo
Senior Reporter
THE Magnolia Hotshots Pambansang Manok swung to the Philippine Basketball Association Governors’ Cup title on Wednesday, defeating the Alaska Aces, 102-86, in Game Six of their best-of-seven finals series at the Ynares Center in Antipolo City and be crowned champions anew after four years.
Last won a PBA title in 2014 in the same conference but playing under the San Mig Coffee name, the Hotshots trumpeted their return to the top of the PBA with a convincing victory in the title clincher to clinch the series, 4-2.
Magnolia started hot, outscoring Alaska, 12-0, in the first three minutes of the opening quarter, led by import Romeo Travis and Ian Sangalang.
It would set the tone for the team for the rest of the period as it booked a 32-18 advantage at the end of the first 12 minutes.
In the second quarter, the Aces came out on better footing, encroaching on the Hotshots’ lead and trimming it down to seven points, 42-35, with 6:20 left in the frame as import Mike Harris started to make his presence felt on offense.
But that was the closest Alaska would come at that point as Magnolia answered with a 10-2 run in the next three minutes to establish a 15-point lead, 52-37.
The Hotshots eventually settled with an even bigger lead of 18 points, 60-42, heading into the halftime break.
At the start of the third period, the Aces tried to make up for lost ground but the Hotshots would not allow them to make much headway.
The count was at 70-55, and Magnolia on top, with 6:15 left in the quarter before the Hotshots stretched their distance a bit to 17 points, 80-63, entering the payoff quarter.
Having momentum entering the final canto, Magnolia went for the early closeout.
But the Aces still showed no let-up in trying to come back, managing to trim their deficit to 10 points, 94-84, with a minute and a half left in the contest.
After that though, it was all Hotshots as they sped to the championship.
Mr. Travis led Magnolia in the clincher with 32 points, 17 rebounds and six assists.
Paul Lee and Mr. Sangalang each had 16 points while Mark Barroca, who was adjudged Finals MVP, added 13 markers.
Jio Jalalon was the other Magnolia player in double digits in scoring with 11 points.
For Alaska it was Mr. Harris who showed the way with 26 points and 24 rebounds while Mr. Banchero finished with 20 points and Jeron Teng 14 points.
“It’s a wonderful feeling. So this is how it feels to win a championship. Thanks to God for making this possible and to the entire Magnolia team for working hard to get this championship,” a jubilant Magnolia coach Chito Victolero said after their victory.
The championship was the first for Mr. Victolero in the PBA.
For Mr. Travis, it was a vindication after being swept in his first finals stint in 2015 while playing for Alaska.
“I’m happy to be here and win this title. They (Magnolia) accepted me and treated me as one of their own,” said the Magnolia import.
The loss, meanwhile, kept Alaska coach Alex Compton still in search for his first-ever league title. The Aces last won a title in 2013 in the Commissioner’s Cup.

Building approvals rise 16.7% in Q3 led by residential projects

By Marissa Mae M. Ramos
THE NUMBER of approved building permits rose 16.7% in the third quarter to 42,111 projects, led by residential construction, the Philippine Statistics Authority (PSA) said.
Citing preliminary results, the PSA said growth in approved permits outstripped the 1.1% rise from a year earlier and the 11.7% gain in the second quarter.
The third quarter’s approved permits were equivalent to 9.727 million square meters (sq.m.) of floor space worth P104.849 billion.
Residential construction accounted for 72.8% of the approved permits, equivalent to 30,638 projects, up from 26,227 a year earlier.
Approved residential permits were equivalent to 5.242 million sq.m. and were valued at P48.479 billion, up 32.9% from a year earlier.
Most categories of residential projects posted double-digit gains. Approved condominium projects grew 80.8% to 47 permits while apartments/accessorias and single-detached houses grew 29.9% to 4,461 permits and 15.3% to 25,583 permits, respectively.
Approved duplex/quadruplex projects fell 3.9% year-on-year during the third quarter to 490 permits while permits for other residential properties dropped 24% year-on-year to 57.
Non-residential construction approvals rose 14.4% year-on-year to 5,983 projects amounting to P47.050 billion with a total floor area of 4.296 million sq.m.
Approvals for commercial buildings rose 13.9% year-on-year during the quarter to 3,630 projects while institutional building projects were up 37.8% at 1,330.
Calabarzon — the region south and east of Metro Manila which includes the provinces of Cavite, Laguna, Batangas, Rizal, and Quezon — reported the highest number of construction starts at 10,752 permits or 25.5% of the total. Central Visayas and Central Luzon had 5,815 approved permits (13.8%) and 4,749 (11.3%), respectively.
By province, Cavite had the highest number of approved permits at 4,367, or 10.4% of the total, followed by Batangas with 2,677 approved permits (6.4%) and Cebu with 2,432 (5.8%).
The National Capital Region (NCR) captured the largest share of projects by value at P29.29 billion or 28.0% of the total. This includes residential projects worth P16.612 billion.
The value of projects approved in Calabarzon was P20.833 billion, or 19.9% of the total while Central Visayas and Central Luzon accounted for P15.777 billion (15.0%) and P9.241 billion (8.8%), respectively.
“The spike may have been caused by the continuing infrastructure push by the government that is also causing the rise in private construction,” according to Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, Inc. (UnionBank).
Michael L. Ricafort, economist at the Rizal Commercial Banking Corp. (RCBC), concurred.
“[I]ncreased government spending on infrastructure may have led to the creation of new residential, commercial, and industrial areas, or at the very least, made more of these areas more accessible to key cities around the country.”
“The country’s biggest property developers, retail chains, and other businesses have continued to expand especially in fast-growing/developing areas outside Metro Manila, amid the availability of more land/space for new property developments at lower cost/price,” he added.
The government’s “Build, Build, Build” program hopes to expand infrastructure spending to 7.3% of gross domestic product by 2022.
Both economists expect the government’s infrastructure projects to open up more opportunities for the real estate market.
RCBC’s Mr. Ricafort added that the government “could open up new frontiers for residential, commercial, and industrial areas, as well as make existing residential, commercial, and industrial areas more accessible to central business districts/key cities around the country.”
UnionBank’s Mr. Asuncion added: “[A]pproved construction permits may rise in the next quarters driven by easing expectations of inflation. I anticipate demand for residential construction to be further rising.”
“For real estate in 2019, I do expect further growth particularly in the middle market and increasing demand outside of the usual growth centers of the country. Construction will be brisk into 2019,” he said.

DBM sees budget enacted by March

BUDGET Secretary Benjamin E. Diokno said on Wednesday that the proposed P3.575-trillion 2019 national budget might be signed into law in mid-February, with the effect that disbursements will fall P44 billion in the first quarter.
“We estimate that in total, a reenacted budget for the first quarter of 2019 will reduce total disbursements by an estimated P44 billion for one quarter — if it is delayed by one quarter. However, if it’s not passed at all, on a full year basis it will reach P219.8 billion or P220 billion,” Mr. Diokno said in a briefing at the Palace on Wednesday morning, Dec. 19.
He added that a “reenacted budget will be detrimental to the economic growth and development objectives” of President Rodrigo R. Duterte’s administration.
“The government intends to ramp up investments in public infrastructure, poverty alleviation and social services. And we are hopeful that the legislators will see the urgency and wisdom in passing at the soonest possible time the national budget for 2019,” he said.
He also said that the 2019 budget might be passed in the “middle” of February at the earliest, and may come as late as March.
“Let’s say they approve it last day of January. They will have to go to the printing press, that’s about a week. When the documents are forwarded to the executive, they cannot be signed right away — they have to be studied line by line to come up with the Statement of Difference… We will have some criteria on whether to veto or not to veto. Like for example, if there is an improvement over our proposal, we let it go. But if it does not belong to our priorities or it’s… in fact, goes against our priorities, I will propose a veto. So, it takes about another week, and then there is a requirement under the law that you need 15 days after signing for the law to take effect. So that maybe brings us to March,” he said.
Mr. Diokno said that under a reenacted budget, no new infrastructure projects can be started “because the capital outlays component of the previous year’s budget cannot be deemed reenacted,” and “only the personal services and the maintenance and other operating expenditures are deemed reenacted.”
“The reasoning is straightforward. You cannot fund and finish the same project twice, right? Hence, new projects will have to wait until the 2019 General Appropriations Act is passed into law,” he added.
The large projects, however, which are covered by the Multi-Year Obligational Authority or MYOA “will not be adversely affected.”
Mr. Diokno said the large projects, such as the subway and the Philippine National Railways (PNR) long-haul project, will also not be affected. “At the same time, the internal revenue allotment for local government units, some P600 billion, and debt service will not be affected as they are automatically appropriated. And therefore, they will receive the budgetary allocations based on the 2019 National Expenditure Program,” he added.
Meanwhile, salaries, wages, pension and retirement benefits for personal services, maintenance and other operating expenses are deemed reenacted, “but they will be based on the 2018 level,” Mr. Diokno said.
“This means that salary adjustments for civilian and military personnel which are programmed for 2019 will have to wait. I repeat: the fourth tranche of the salary standardization for government employees will be deferred until such time the 2019 General Appropriations Act is passed into law,” he said. — Arjay L. Balinbin

WB downgrades rating on solar home systems project

THE WORLD BANK has downgraded its view of the government’s progress in the implementing solar home systems in Mindanao.
In an implementation and status report, the bank said it now rates progress of the $21.32-million Sustainable Energy Project as “moderately unsatisfactory” from “satisfactory” previously.
It said the original implementing agency, LGU Guarantee Corp., faced difficulties in rolling out the project.
“The implementation of Window 1 of the Photovoltaic Mainstreaming (PVM) Component — supply and installation of 10,000 solar home systems (SHS) in remotely located households in Mindanao — is progressing well with 7,000 SHS already installed and the other 3,000 planned to be installed in the next few months,” the World Bank said.
“Procurement of PVM Window 2 and Rural Network Solar (RNS) was delayed because of uncertainties with the project implementation agency. This caused downgrading of the project to Moderately Unsatisfactory. Procurement of PVM Window 2 and Rural Network Solar (RNS) is planned to resume after the new project implementing agency — the Development Bank of the Philippines — is legally empowered to carry out the project,” it added.
The overall risk rating was also hiked to “high” from “moderate” initially. The project seeks to provide improved electricity services to 202,500 individuals through solar power.
So far, only 5.1% or $1.24 million was disbursed from the $24.32 million trust fund managed by the World Bank. — Elijah Joseph C. Tubayan

DoLE touts permanent status for over 400,000 ex-contractuals

THE LABOR DEPARTMENT said over 400,000 contractual workers were converted to regular employment status this year, including more than half voluntarily regularized by their employers.
The Department of Labor and Employment (DoLE) said that as of Dec. 3, it recorded 411,449 contractual workers regularized by their respective employers.
DoLE Secretary Silvestre H. Bello III told reporters that the number of conversions to regular status is “unprecedented” and backed by President Rodrigo R. Duterte’s determination to minimize labor-only contracting.
He said however that millions more workers remain under contractual arrangements that deny them a path to permanent employment status.
“In fairness to the employers, they responded favorably. That’s why 65% of the employers complied voluntarily. They did not wait for a compliance order,” he said.
Mr. Bello said among the 411,449 are 11,660 contractual workers from the SM Group, which in May promised to voluntarily convert contractual workers to regular status, Mr. Bello said.
SM has not issued a comment on Mr. Bello’s latest announcement.
DoLE also said it inspected thousands of establishments in 2018. In May, the department released a list of 3,377 establishments suspected of being engaged in labor-only contracting.
DoLE’s labor inspections have been halted for this month and will resume on Jan. 15. — Gillian M. Cortez

Domestic trade rises 10.6% by value in Q3

By Mark T. Amoguis
DOMESTIC TRADE, both in terms of volume and value, increased during the third quarter, according to the Philippine Statistics Authority (PSA).
According to preliminary data, the total value of domestic trade rose 10.6% year-on-year to P170.33 billion in the three months to September.
In terms of volume, domestic trade grew 3.9% to 5.05 million tons.
The domestic commodity flow indicator measures the regional flow of goods, which is dominated by water transport.
Four commodity categories monitored by the PSA posted increases in volume, led by chemicals and related products, which rose 191.2% to 492,083 tons. In value terms, the category increased 15.8% to P11.03 billion.
It was followed by crude materials, inedible, except fuels, which rose 134.2% to 734,479 tons. By value, on the other hand, the commodity group declined by 21.7% to P3.36 billion.
Other commodities that posted gains in terms of volume in the third quarter were mineral fuels, lubricants and related materials (29.9%) and miscellaneous manufactured articles (6.9%).
However, double-digit drops in terms of volume were noted in the following categories: commodities and transactions not elsewhere classified in the Philippine Standard Commodity Classification (-65.9%); beverages and tobacco (-50.8%); animal and vegetable oils, fats and waxes (-35.2%); manufactured goods classified chiefly by material (-19.7%); and food and live animals (-14.9%).
During the three months to September, machinery and transport equipment continued to account for the biggest share of the total value of traded commodities during the quarter at P54.98 billion or 32.3% of the total.
The National Capital Region remained the top source of commodities with outflows amounting to P58.75 billion. It recorded a domestic trade surplus of P37.82 billion during the quarter.
Western Visayas, meanwhile, was the top destination of commodities with total inflows amounting P30.75 billion. It posted a domestic trade deficit amounting to P6.01 billion in the three months to September.
Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, said domestic trade, both in terms of volume and value, validates the robustness of economic growth in the third quarter, though it was weaker than expected.
“This may also mean that, despite the lower aggregate growth number, the quality of growth may have been better since volume and value of domestic trade have both increased,” he said.
For the rest of the year, the economist sees Christmas demand propelling domestic trade growth.
“For 2019, it may well carry over because of election spending and the continued push for infrastructure spending by the government,” he said.

Duterte to sign rice tariffication bill soon

PRESIDENT Rodrigo R. Duterte is expected to sign the Rice Tariffication bill “anytime soon,” Malacañang said on Wednesday.
“I suppose it will be signed anytime…. He will decide on that soon enough,” Presidential Spokesperson Salvador S. Panelo said in a briefing on Wednesday.
The Senate approved the measure, which is expected to slash rice retail prices by P7 per kilogram and inflation by 0.7 percentage points, on third and final reading in November. The House of Representatives, for its part, approved the bill in August.
Cabinet Secretary Karlo Alexei B. Nograles said in a statement that Mr. Duterte “will ensure that even with the tariffication of rice and liberalization of (imports), the NFA (National Food Authority) shall continue to provide the public, particularly the less fortunate, with rice that is affordable and safe.”
Agriculture Secretary Emmanuel F. Piñol said Tuesday that once the bill is signed into law, the NFA can no longer sell rice at P27 per kilo. “Obviously if we procure locally, we cannot sell at 27 because we will be losing a lot of money,” he said.
Asked to comment during a briefing on Wednesday, Mr. Panelo said: “When the market is liberalized there will be competition that will pull down prices.”
In a statement, Senator Francis N. Pangilinan said in response to Mr. Piñol: “The rice tariffication bill, when it becomes law, should not be used as an excuse to alarm the consuming public about available affordable rice. It’s the equivalent of announcing a death toll with the approach of a storm. The correct approach should be to ensure no one dies during a storm.” — Arjay L. Balinbin

DoH funding may be taken from non-performing agencies — Ejercito

SENATOR Joseph Victor G. Ejercito said he may seek to take funds from the budgets of non-performing agencies or those that have failed to spend effectively to provide more funding to the budget of Department of Health (DoH’s) Facilities Enhancement Program.
Asked whether he is looking to realign a portion of the Department of Interior and Local Government (DILG) budget to the Health department, the senator, a vice chairperson of the Senate committee on finance, told reporters on Tuesday: “That’s the proposal of Senator (Senator Panfilo M.) Lacson and Senator (Franklin M.) Drilon but we need to discuss it further. I would prefer to take funding away from agencies with low absorptive capacity.”
The DoH is facing reduced funding in the proposed 2019 budget amounting to P28 billion less than its 2018 allocation of P107 billion. Under the 2019 General Appropriations Bill (GAB), the DoH was allocated P77 billlion.
Health Secretary Francisco T. Duque III has been asking senators to restore at least P16 billion of the department’s budget to cover the construction of health facilities that are already more than 70% complete.
During the Senate budget deliberations last week, Minority Leader Franklin M. Drilon proposed that P16 billion worth of lump-sum appropriations meant for assisting local government units may be given to the DoH.
The DILG during the session said it was not the implementing agency that will handle the P16 billion worth of financial assistance to LGUs.
Mr. Ejercito said the Senate committee on finance has yet to discuss the sources of additional funding for the DoH’s building program.
However, he said health facilities should be given budget priority, especially with the impending implementation of the universal health care program next year.
“My concern, as chairman of the Senate committee on health, is that we can make sacrifices elsewhere, but not health facilities because these are proof of good governance, whether local or national,” he said.
Mr. Drilon has said that the additional funding for the DoH will help address the problem of 900 health facilities that lacked equipment for licensing and PhilHealth accreditation.
The Senate has yet to tackle the health department’s budget in its deliberations on the proposed national budget for 2019. It adjourned on Dec. 13 with the GAB still in the interpellation stage. — Camille A. Aguinaldo

House claims Duterte agreed to let Road Board continue

PRESIDENT Rodrigo R. Duterte agreed to withdraw his order abolishing the Road Board, House Majority Leader Rolando G. Andaya, Jr. claimed on Wednesday, thereby allowing its funding to be distributed.
He said Mr. Duterte ordered the board to continue operations over dinner at the Palace sometime in mid-September.
“He (President) ordered the continued release of Road Board funds, suggesting that its operations will continue,” Mr. Andaya said in a briefing.
“What he told me was Road Board Executive Director Luisito V. Clavano resigned but he did not accept his resignation. I asked the President what that meant and he said he still trusts the man. The President believes Mr. Clavano can still fix the system and so, release the budget.
Also present during the meeting was Speaker Gloria Macapagal-Arroyo and then Special Assistant to the President Christopher Lawrence T. Go.
Presidential Spokesperson Salvador S. Panelo has said that Mr. Duterte is inclined to sign the bill abolishing the board once it is transmitted to his office.
The board manages the Motor Vehicle User’s Charge (MVUC), collected to maintain the road network. Its ex-officio chairman is the Secretary of Public Works, while its members include the Budget, Finance, and Transportation Secretaries, as well as representatives of the motoring and transportation industries.
Mr. Andaya expressed doubts that Mr. Panelo has spoken to the President. “We already did, and the policy was very clear to us,” he said.
He also said that while the Senate has adopted the measure abolishing the board, Mr. Duterte cannot sign it because it was not signed by Speaker Arroyo.
“On this point the House of Representatives withdrew its support unanimously for the bill, so the Speaker is not authorized to sign the bill,” he said.
Mr. Andaya said the bill being pushed by the Senate will not entirely abolish the Road Board.
“What they’re proposing is to move from a seven-man Road Board to three road kings.”
Meanwhile, the Senate formally transmitted to Malacañang a resolution urging the Office of the President to bar the board from releasing the MVUC.
Resolution No. 134, released to reporters on Tuesday evening, requests the President to hold on to the funds in light of the approval of House Bill No. 7436, which abolished the Road Board.
“Considering the passage of House Bill No. 7436 in both houses of Congress and the President’s announced intention to abolish the Road Board and transfer its functions to an appropriate department, the Road Board should no longer be allowed to release any funds collected from the MVUC,” the Senators said in their resolution.
The resolution was unanimously adopted by the Senate last week in the presence of Executive Secretary Salvador C. Medialdea.
The resolution reiterated the Senate’s position that the Road Board should be abolished, noting that the agency has become a “breeding ground for corruption and inefficiency a shown in various reports by the Commission on Audit (COA) over the past years.”
It also noted that the total MVUC collections from 2001 to May 2018 amounted to P166.18 billion, with total releases of P136.87 billion.
The bill abolishing the Road Board has remained in limbo after the Senate adopted House Bill No. 7436 on Sept. 12. Hours later, the House of Representatives moved to rescind its third reading approval of the bill.
Senate President Vicente C. Sotto III has told reporters that the chamber considers the Road Board abolished as of the Senate adoption of the resolution. However, House Majority Leader Rolando G. Andaya, Jr. said the House of Representatives withdrew its support to the measure, rendering Speaker Gloria M. Arroyo unable to sign the bill that was supposed to be transmitted to Malacanang.
Given the deadlock between two chambers, Mr. Sotto has said it was about time for Congress to resolve the matter in a “proper venue,” such as the courts.
The Road Board was created by Republic Act No. 8794.
Under House Bill No. 7436, which the Senate adopted but the House rescinded, the MVUC collections will be remitted directly to the National Treasury and will be appropriated for projects of the Departments of Public Works and Highways (DPWH), Environment and Natural Resources (DENR), and Transportation (DoTr). — Charmaine A. Tadalan and Camille A. Aguinaldo

Palay farmgate price firms in mid-December

THE Philippine Statistics Authority (PSA) said that average farmgate price of palay, or unmilled rice, rose 0.50% week-on-week to P20.11 per kilogram in the second week of December.
The average wholesale and retail prices of well-milled rice posted declines, the PSA said.
The average wholesale price of well-milled rice was at P42.19 per kg, down 0.19% from a week earlier. The average retail price of well-milled rice fell 0.61% to P45.65.
The average wholesale price of regular-milled fell 0.54% week-on-week to P39 per kg, while the average retail price fell 0.64% to P41.90.
On Tuesday, Agriculture Secretary Emmanuel F. Piñol said the National Food Authority will discontinue selling rice at P27 per kg by next year, upon implementation of the rice tariffication bill. The NFA’s role under the proposed law will solely be focus on maintaining a buffer stock, with its rice sourced from domestic farmers at its buying rate of P17 per kg, with P3.70 incentive.
Mr. Piñol said that the NFA will incur losses if it sells rice at rice P27 per kg.
The average farmgate price for yellow corn in grain form fell 0.14% week-on-week to P14.21 per kg in the second week of December.
The average wholesale price rose 0.15% week-on-week to P20.66 per kg. The average retail price rose 0.04% to P25.74 per kg.
The average farmgate price for white corn in grain form fell 1.44% week-on-week to P14.34 per kg.
The average wholesale price was flat at P20.90 per kg, as was its average retail price at P27.84. — Reicelene Joy N. Ignacio

Mentoring performance in your organization

Fifteen years ago, I started managing people for one of the leading life insurance companies in the Philippines. I was confident that my four years of work experience in the fast-moving consumer goods (FMCG) and Transportation industries, plus my newly minted master’s degree, would be enough for me to be a successful manager. I was only half right. My formative years as a direct manager of a small team were full of “a-ha” moments mixed with humbling learning experiences on how to manage others.
Filipinos can do great things when they work together, a phenomenon that has been called the Bayanihan spirit. However, this presupposes that everyone in an organization has a common goal and that everyone pulls their own weight. Roles should not be confined by what is stated in one’s job description. When the situation calls for it, members at all levels of the organization need to be flexible. While I had been initially hired to instruct my team on their tasks, I realized that telling my colleagues how they should do their work was not effective and would only discredit me in their eyes, especially since some of them were already very proficient at their tasks. Therefore, I decided to refocus my efforts towards improving my skills as a manager. To me, this meant being able to help my colleagues/teammates succeed in their individual roles within the team.
My management style went through three distinct phases.
I started by “managing people.” I gave my staff detailed instructions on how they should specifically do their work. Like any new manager, I wanted things to be done the way I would do it. I micro-managed and constantly reviewed the work of my staff. Not only did this require a lot of effort from my end, I also realized how this management style encourages distrust within the team and holds back innovation.
I then changed my style to “leading people.” I made sure that I had a good understanding of the work performed by my staff so that I could identify the best way to help them with their roles. I started to collaborate more with my staff in order to find ways to make their work better and faster whilst maintaining the work quality standards expected by the organization. Furthermore, I focused on augmenting my staff’s capabilities through regular training and by giving them ownership of some activities like data collection, metrics generation and report presentation.
I saw lot of success using this management style but the “I’m staff and you’re a manager” behavior among my teammates still prevailed. As this continued to affect the team’s performance, I felt the need to change this behavior. However, to change the culture of my team meant having to transform my management style again — I needed to undergo a paradigm shift on how to manage people.
That shift came when I committed myself to “mentoring people.” As a mentor, I needed to change my perception of people. By treating people as “colleagues” and not as “staff,” my people stand on equal footing as myself, with the only difference being the roles we perform for the organization. This new approach required me to explain the purpose and importance of my teammate’s roles, particularly how their jobs fit into the bigger picture — to the success of the company. I poured in tremendous effort to get my colleagues to understand the company strategy because, as key organizational stakeholders, their commitment to the strategy will be the key to success. Giving my colleagues a real purpose for doing their jobs well really unlocked their full potential. I noted how the team became more collaborative and how ideas were actively being shared, discussed, agreed, implemented and monitored. An added benefit to this was that it seemed that the Millennials I worked with preferred this type of management style.
These are some of the personal experiences that I share with clients when they ask me about leading practices for staff/manager performance management. I also share how I wished that I learned about my firm’s performance management methodology years ago, since it teaches a lot of the lessons and skills that I had to learn by myself.
The methodology is about transformational behaviors that really stick. It is based on proven concepts and have been applied to numerous organizations across the globe. While the techniques are not new or earth-shattering, when properly executed together, these techniques will create a transformational culture in any organization.
The methodology focuses on building the right behaviors. It seeks employees’ understanding and buy-in of the organization’s goals. It also instills the importance of gathering the right data and transforming this data into useful information which the team and organization can use for business decisions. A collaborative environment is where proper and timely tactical and strategic operational decisions can be made to address business problems and challenges, resulting in better planning and control. It will also improve process standards, as well as develop sustainable routines and practices.
What I really love about this methodology is its potential to transform managers into mentors and staff into leaders who can lead themselves and influence others. Best of all, no technology investment is needed to implement this methodology in any organization.
Organizations who have implemented this methodology have seen an increase in employee output and a reduction in operating costs across the implementation areas. It has created additional full-time equivalent (FTE) capacity even without any changes in the current staff headcount. Furthermore, it has allowed department heads and team leads to spend less time firefighting and to devote more time for coaching and mentoring staff. Staff, on the other hand, have more opportunities to attend training and mentoring sessions with their department heads or team leads.
To navigate a constantly changing business and technology environment, an organization must future-proof its most valuable asset — its people. It is only by instilling the right behaviors in your people would they be able to adapt and thrive regardless of what may happen in the future.
The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd. The content is for general information purposes only, and should not be used as a substitute for specific advice.
 
Victor Gabriel Ona is a senior manager with the Operations Consulting practice of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd., a Philippine member firm of the PwC network.
+63 (2) 845-2728 local 3230/3240
victor.gabriel.ona@ph.pwc.com

Protecting human know-how, knowledge, creativity, and innovation

By Matthias Bauer and Philip Stevens
TRADE tensions between the US and China continue to escalate and the World Trade Organization (WTO), the global forum of the management of trade rules and disputes, seems powerless to stop them.
The WTO’s multilateral, rules-based trading system has underpinned huge increases in global prosperity since the 1960s. But shortcomings in investment rules and enforcement mean WTO reform is now top of the G20, US, and EU agenda.

knowledge
The US is right: intellectual property is vital to the modern economy.

Much of the drama stems from US accusations that the WTO failed to hold China to account for not opening up its economy as promised when it joined the body in 2001. No reform, says the US President, could see his country withdraw from the WTO.
The US is seriously concerned about China’s attitude toward intellectual property (IP) rights. The Trump administration claims Chinese theft of American companies’ proprietary knowledge through cyberattacks, counterfeiting, online piracy, and forced technology transfer from investing companies has cost $50 billion in corporate earnings.
The US is right: intellectual property is vital to the modern economy. Trade used to be all about moving physical goods from their point of manufacture to customers in different countries. Today, it is increasingly about “intangible” products and services, based on research and development efforts, brands, and patented or licensed technology.
Much of modern international trade and investment is driven by human know-how, knowledge, creativity, and innovation.
The WTO has accelerated this globalization of knowledge-based industries thanks to its Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), ratified in 1994.
TRIPS requires all WTO members to institute basic laws to protect IP. As recently as the 1980s, many countries did not even grant patents — unsustainable given era’s rapid pace of globalization and technological development.
The creation and harmonization of basic global IP standards under TRIPS has been transformative for developing countries in particular. Under TRIPS, more countries have benefited from the integration of domestic companies into global value chains, through which modern products and services are designed, manufactured, and marketed across many countries. China, Singapore, and Korea are notable examples.
These global value chains have created cheaper consumer goods and reduced poverty by helping to integrate developing countries into the global economy.
According to the World Intellectual Property Organization (WIPO), one-third of the value of manufactured goods sold globally ($5.9 trillion), comes from intangible capital, underlining the importance of IP to today’s global economy.
Outside of China, IP problems abound. Counterfeit and pirated goods account for 2.5% of global trade. Rights holders are unable to uphold their IP rights in local courts and many countries have yet to fully upgrade their domestic IP laws in line with their treaty obligations.
Meanwhile, the text of TRIPS has not had a meaningful update since its inception in the 1980s, and could benefit from updates to take account of developments in new technologies, particularly in the biotechnology and digital sectors.
These shortcomings have compounded multilateral trading system’s problems. As a result, knowledge-exporting countries increasingly look outside the WTO to achieve their trade objectives. Bilateral Free Trade Agreements (FTAs) and regional deals (the NAFTA [North American Free Trade Agreement] replacement being a current example) have allowed like-minded countries to modernize and update trade and investment rules, free from the constraints of a unanimous vote by 164 countries.
But this is fragmenting the international trading system and limiting the opportunities for countries outside these deals.
At the November G20 summit and October conference on WTO reform in Ottawa, Canada, leaders focused on the mechanics of dispute resolution and enforcement.
These are important for restoring faith in the WTO. But in the longer term, the WTO needs to ensure the intellectual property rules that govern trade in knowledge-intensive intangible capital are strong and well enforced. If needed, countries willing to move faster on these reforms could form coalitions under the auspices of the WTO.
In December, Beijing announced a number of new punishments for domestic IP infringers. It suggests that China’s officials are beginning to understand the importance of IP for smooth trade and relations.
But to ensure modern trade and investment can continue on non-discriminatory terms for everyone, the WTO should put IP first.
 
Matthias Bauer is senior economist at the European Centre for International Political Economy, Brussels. Philip Stevens is executive director of Geneva Network.