Checking In
Today is the 60th anniversary of the Communist party in Hong Kong. My plans to infiltrate the party under the guise of being a consultant are going well. I am a good American.
The workshop went really well (from a facilitation perspective) but horrible from a "getting some answers" perspective. The client is extremely confused as to what they want, changed the scope of the work entirely, and has us now designing some equity products. We've got today to do some serious number crunching (unrealistic) and we present options tomorrow. In light of the additional work, we extended our stay in Hong Kong until Saturday. We still don't have a hotel or a flight back...
In other news, Vietnam had a typhoon, Samoa had a Tsunami, and Indonesia had a 7.6 earthquake. All had casualties. We're expecting another typhoon this weekend.
Wednesday, September 30, 2009
Tuesday, September 29, 2009
MOM AND DAD, I’M MOVING TO HONG KONG
This place is nothing short of amazing. Take the waterscape of Chicago, the heart of New York City, the hills of San Francisco, and sprinkle it with the culture of London, Amsterdam, and a hint of Switzerland and you’ll understand what it’s all about. This place is by far the most different than what I had imagined. It is so easy to forget where you are and feel like you are in a European city – in fact, most people here are ex-pats from Europe or Australia. Even the architecture lends itself to European and American influence. The skyscrapers are amazing! Better than New York, and dare I say Chicago. It’s newer, and Asia has a flair for doing things in a very unique way. This place is also unbelievably wealthy.
Country Snapshot:
Area: 1,104 square kilometers, or 426 square miles (New York City is 468 sq. mi)
Population: 7,000,000 people (NYC is ~1.6MM)
Per Capita GPD: $44,413 (Hong Kong ranks 14th, NYC ranks 2 in terms of GPD overall. In terms of Country GPD, it ranks right after the US http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita )
It's tough to believe that Hong Kong is a part of China given all we see/read in the news. It’s just a pity that I am only here for three days...
This place is nothing short of amazing. Take the waterscape of Chicago, the heart of New York City, the hills of San Francisco, and sprinkle it with the culture of London, Amsterdam, and a hint of Switzerland and you’ll understand what it’s all about. This place is by far the most different than what I had imagined. It is so easy to forget where you are and feel like you are in a European city – in fact, most people here are ex-pats from Europe or Australia. Even the architecture lends itself to European and American influence. The skyscrapers are amazing! Better than New York, and dare I say Chicago. It’s newer, and Asia has a flair for doing things in a very unique way. This place is also unbelievably wealthy.
Country Snapshot:
Area: 1,104 square kilometers, or 426 square miles (New York City is 468 sq. mi)
Population: 7,000,000 people (NYC is ~1.6MM)
Per Capita GPD: $44,413 (Hong Kong ranks 14th, NYC ranks 2 in terms of GPD overall. In terms of Country GPD, it ranks right after the US http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita )
It's tough to believe that Hong Kong is a part of China given all we see/read in the news. It’s just a pity that I am only here for three days...
Monday, September 28, 2009
FERTILIZER IN AFRICA
A dear friend of mine is in Africa at the moment doing some field research for a foundation for a couple of weeks. I thought her project was really interesting, so I thought I would share some of her challenges.
Her project is a study on how to increase adoption of fertilizer in Africa. In theory, having farmers use fertilizer or better seeds will have tremendous benefit to the rural economy. It’s the perfect success story: use fertilizer or better seeds, increase your crop’s yield, sell or export it, and increase the wealth of the local economy. Wealth, of course has a direct link to addressing some of the fundamental issues underdeveloped societies face. It all sounded so interesting until she expressed her frustration with the project: even if they found a way to get every farmer to optimize the use of fertilizer for their crops, the project would go nowhere. Nobody would ever see the benefits, and it might actually turn out worse. What? You’re probably scratching your head wondering what could possibly be wrong with this picture. In a word: infrastructure.
The reason her project would never (at least in the short to medium term) work is because farmers do not have the infrastructure in place to transport the produce to areas where they could export them. The local economies already grow enough to support surrounding areas. The use of fertilizer adds approximately 20% to the cost of food, and because food is such a perishable item, there is a high % of wastage associated with transporting it over long distances. The use of genetically altered seeds is just as bad. In many cases, the seeds are more resilient to pests, or even yield crops that are nutritionally superior (such as rice that’s infused with beta carotene). The issue here is that the companies who design the seeds made them sterile, so every year, and every season, the farmer has to purchase new seeds, and is reliant on the large agricultural companies for that. That’s another story though… Even if Farmers are lucky enough to get the produce ready for export, trade tariffs are too high, rending their produce prices uncompetitive in the open marketplace. The deck is stacked against them before they even get started! The infrastructure issue is one that Africa has faced for a very long time, and it is one that only Coca Cola has been able to succeed at.
On a side note, It’s interesting how, walking around in Manila, you can find bananas or other produce that looks so different then what you find in the store. They aren’t shiny, and perfectly shaped, and yellow. They’re green! They come in all sorts of shapes, but taste equally good. They even have markets with restaurants alongside them. You sit down, order the type of fish you want (they even do this with vegetables), and the server literally walks to the market, buys the fish as fresh as it comes, and cooks it for you. I thought this was pretty neat.
A dear friend of mine is in Africa at the moment doing some field research for a foundation for a couple of weeks. I thought her project was really interesting, so I thought I would share some of her challenges.
Her project is a study on how to increase adoption of fertilizer in Africa. In theory, having farmers use fertilizer or better seeds will have tremendous benefit to the rural economy. It’s the perfect success story: use fertilizer or better seeds, increase your crop’s yield, sell or export it, and increase the wealth of the local economy. Wealth, of course has a direct link to addressing some of the fundamental issues underdeveloped societies face. It all sounded so interesting until she expressed her frustration with the project: even if they found a way to get every farmer to optimize the use of fertilizer for their crops, the project would go nowhere. Nobody would ever see the benefits, and it might actually turn out worse. What? You’re probably scratching your head wondering what could possibly be wrong with this picture. In a word: infrastructure.
The reason her project would never (at least in the short to medium term) work is because farmers do not have the infrastructure in place to transport the produce to areas where they could export them. The local economies already grow enough to support surrounding areas. The use of fertilizer adds approximately 20% to the cost of food, and because food is such a perishable item, there is a high % of wastage associated with transporting it over long distances. The use of genetically altered seeds is just as bad. In many cases, the seeds are more resilient to pests, or even yield crops that are nutritionally superior (such as rice that’s infused with beta carotene). The issue here is that the companies who design the seeds made them sterile, so every year, and every season, the farmer has to purchase new seeds, and is reliant on the large agricultural companies for that. That’s another story though… Even if Farmers are lucky enough to get the produce ready for export, trade tariffs are too high, rending their produce prices uncompetitive in the open marketplace. The deck is stacked against them before they even get started! The infrastructure issue is one that Africa has faced for a very long time, and it is one that only Coca Cola has been able to succeed at.
On a side note, It’s interesting how, walking around in Manila, you can find bananas or other produce that looks so different then what you find in the store. They aren’t shiny, and perfectly shaped, and yellow. They’re green! They come in all sorts of shapes, but taste equally good. They even have markets with restaurants alongside them. You sit down, order the type of fish you want (they even do this with vegetables), and the server literally walks to the market, buys the fish as fresh as it comes, and cooks it for you. I thought this was pretty neat.
WET WEEKEND WITH ONDOY AND MOISTURIZING MY HAIR
Crazy weekend indeed!! Looks like some of the Atlanta weather found me. On Friday, we were in Quezon City, which is about 20k from Manila working out of the client’s office. Quezon City is underwater at the moment. I had a look at the forecast, and on Friday, Manila had 17 inches of rain. Saturday’s reading was “n/a” and the city was completely shut down. Although the business district was fine, there were a number of people who I work with that were directly impacted. The city was completely dead on Saturday, with areas very close by devastated. 95 were reported dead by Monday morning, with about 250,000 more affected by floods. It’s amazing how rivers can quickly turn deadly.
The saddest part is that the areas that are affected cut across socio economic demographics, and some poor people who had nothing probably lost the little they had. If we didn’t have a huge deliverable, we would for sure be helping out.
I also got a taste of my firm’s Global Asset Protection outfit. I got a number of e-mails this weekend, and the firm even called the place where we were staying to make sure we were accounted for. Feels good to know the eye in the sky is watching out for us. They even offered to air lift us out of here if we were in an affected area. We continue to get health advisory e-mails about what to do after a flood.
Aside from the Typhoon, the other brilliant experience this weekend was going to a barber (not sure if that’s the right term though) shop to get a haircut. I walked out of there with a facial, some moisturizing steam treatment for my hair (which, by the way feels RIDICULOUSLY soft), a massage, and a haircut. It was awesome! Now, before you go name-calling, I should point out that this is the Asian male way of life, everyone in there was getting pedicures and manicures. The best part? It was incredibly cheap. A Swedish massage will set you back 300PHP (that’s $6) for an HOUR! This may very well become a Sunday ritual.
Crazy weekend indeed!! Looks like some of the Atlanta weather found me. On Friday, we were in Quezon City, which is about 20k from Manila working out of the client’s office. Quezon City is underwater at the moment. I had a look at the forecast, and on Friday, Manila had 17 inches of rain. Saturday’s reading was “n/a” and the city was completely shut down. Although the business district was fine, there were a number of people who I work with that were directly impacted. The city was completely dead on Saturday, with areas very close by devastated. 95 were reported dead by Monday morning, with about 250,000 more affected by floods. It’s amazing how rivers can quickly turn deadly.
The saddest part is that the areas that are affected cut across socio economic demographics, and some poor people who had nothing probably lost the little they had. If we didn’t have a huge deliverable, we would for sure be helping out.
I also got a taste of my firm’s Global Asset Protection outfit. I got a number of e-mails this weekend, and the firm even called the place where we were staying to make sure we were accounted for. Feels good to know the eye in the sky is watching out for us. They even offered to air lift us out of here if we were in an affected area. We continue to get health advisory e-mails about what to do after a flood.
Aside from the Typhoon, the other brilliant experience this weekend was going to a barber (not sure if that’s the right term though) shop to get a haircut. I walked out of there with a facial, some moisturizing steam treatment for my hair (which, by the way feels RIDICULOUSLY soft), a massage, and a haircut. It was awesome! Now, before you go name-calling, I should point out that this is the Asian male way of life, everyone in there was getting pedicures and manicures. The best part? It was incredibly cheap. A Swedish massage will set you back 300PHP (that’s $6) for an HOUR! This may very well become a Sunday ritual.
CELL PHONES
The Philippines is not unlike any other third world nation in that everyone has a cell phone. Cell phone penetration here is estimated at around 70-80%. The ironic thing is how people in the developed world view this as a luxury item, but here it’s almost a necessity. Case in point, there is a banking system built on the mobile platform. You can share your load on your pre-paid cell phone with your friend by simply texting the amount +2+their phone number. If you’re at a restaurant and your friend is out of cash, they can easily transfer (or smart money) the amount to you directly. In the US, you’d have to either get the balance in cash, or get a check from your friend. If you happen to bank at the same bank, you might be able to transfer money directly – all of which takes time and is far from instantaneous. Even merchants accept money via cell phone.
For someone with a banking background, I see the convenience. I also get why a model like this would never work in the US. For one, we have a substantial network of banks. In the Philippines, some of the areas across these 7,000 islands are so remote, that it’s a great inconvenience to get to a bank. The other reason it would never work in the US is because the mobile banking system largely caters to the “un-banked”, which in the US would be seen as aiding illegal immigrants or traffickers and the like gain access to the banking system. Most of the accounts here are pretty small (likely under $100). Anyway, I just thought that was fascinating and worth sharing.
The Philippines is not unlike any other third world nation in that everyone has a cell phone. Cell phone penetration here is estimated at around 70-80%. The ironic thing is how people in the developed world view this as a luxury item, but here it’s almost a necessity. Case in point, there is a banking system built on the mobile platform. You can share your load on your pre-paid cell phone with your friend by simply texting the amount +2+their phone number. If you’re at a restaurant and your friend is out of cash, they can easily transfer (or smart money) the amount to you directly. In the US, you’d have to either get the balance in cash, or get a check from your friend. If you happen to bank at the same bank, you might be able to transfer money directly – all of which takes time and is far from instantaneous. Even merchants accept money via cell phone.
For someone with a banking background, I see the convenience. I also get why a model like this would never work in the US. For one, we have a substantial network of banks. In the Philippines, some of the areas across these 7,000 islands are so remote, that it’s a great inconvenience to get to a bank. The other reason it would never work in the US is because the mobile banking system largely caters to the “un-banked”, which in the US would be seen as aiding illegal immigrants or traffickers and the like gain access to the banking system. Most of the accounts here are pretty small (likely under $100). Anyway, I just thought that was fascinating and worth sharing.
Wednesday, September 23, 2009
GETTING IT (THE MODEL) RIGHT!
This one is going to be a bit business-y, so bear with me, my life has literally revolved around nothing but this over the past few days. The major work that I am responsible for this week is the risk model. This is the tool that we are going to use to tell us how risky the cash flows of the fund are, and then convince investors that it is a winning proposition after we adjust for risk. As you now by now, there is no precedent to this project and so it’s tough to ascertain just how much risk is inherent, and how deep should we cut their forecasts to arrive at a more realistic idea of the profit they can confidently expect.
The stakes are high: if we reduce forecasts by discounting too much, the NGO looses out because they will not be able to fund as many projects as they originally thought. If we cut too shallow, the return promised to investors will be overstated and the organization will not be able to deliver – which will have serious repercussions for similar future initiatives (not to mention the reputation of yours truly). To complicate all this, my colleague and I had little context on what was driving their forecasts. In interviewing some internal experts, we routinely felt that the assumptions were too vague, there was a lack of focus, and nobody fully understood the complexity of what we were doing. When we discussed an approach and questioned the validity of the business cases, the client brushed it off like it was no big deal and assured us their estimates were fine. We were led to believe that it was formulated by marketing directors in a workshop earlier this year. Thankfully, we later learned that this was somewhat misinformation and got to the bottom of the projections. Sachin, you will be happy to know that it was based off of some of the metrics you spoke about (e.x. corporate spend on software as a proxy for the available market for corporate donations) – all sound indeed.
This one is going to be a bit business-y, so bear with me, my life has literally revolved around nothing but this over the past few days. The major work that I am responsible for this week is the risk model. This is the tool that we are going to use to tell us how risky the cash flows of the fund are, and then convince investors that it is a winning proposition after we adjust for risk. As you now by now, there is no precedent to this project and so it’s tough to ascertain just how much risk is inherent, and how deep should we cut their forecasts to arrive at a more realistic idea of the profit they can confidently expect.
The stakes are high: if we reduce forecasts by discounting too much, the NGO looses out because they will not be able to fund as many projects as they originally thought. If we cut too shallow, the return promised to investors will be overstated and the organization will not be able to deliver – which will have serious repercussions for similar future initiatives (not to mention the reputation of yours truly). To complicate all this, my colleague and I had little context on what was driving their forecasts. In interviewing some internal experts, we routinely felt that the assumptions were too vague, there was a lack of focus, and nobody fully understood the complexity of what we were doing. When we discussed an approach and questioned the validity of the business cases, the client brushed it off like it was no big deal and assured us their estimates were fine. We were led to believe that it was formulated by marketing directors in a workshop earlier this year. Thankfully, we later learned that this was somewhat misinformation and got to the bottom of the projections. Sachin, you will be happy to know that it was based off of some of the metrics you spoke about (e.x. corporate spend on software as a proxy for the available market for corporate donations) – all sound indeed.
Getting to that point was painful, but it clarified everything and finally gave me a hell of a lot more confidence to model.
In between talking to a number of experts (folks in fixed income securities, and a McKinseyite named Sachin Kadakia) I re-engineered my model to reflect two approaches:
1) The Income Approach – This model adjusts the income they propose to receive while maintaining the current cost structure
2) The Discount Model – This model is the classic model where we take a risk free security, tack on risk premiums as appropriate and discount their cash flows like there’s no tomorrow
For the finance guru’s reading this, relax – It’s a gross oversimplification. Furthermore, initial testing on both models seems to yield realistic results – I finally feel confident that I can go to an investor and address their concerns appropriately (and prove it with quantitative rigor)!
Tomorrow will consist of more meetings (including a guy who started a Private Equity firm and a fund in Malaysia) as well as creating a deck to explain the risk model. A lot of thought needs to go into the structure of the workshop we are hosting in Hong Kong next week. On Friday, we have a detailed review of the business cases, which should leave us in a place to make recommendations on what projects will be part of the fund, and what will not. This weekend we will prep for a short presentation we have to the Shareholders Executive Committee on Monday, as well as begin the process of building the case to invest, and really focusing on the value proposition and the key messages we want to sell. The faster we can get ahead of this, the more we can preview the fund with key investors, tweak as necessary, and then go to market.
One thing that has become interestingly apparent to me is the simple fact that in every scenario you try to quantify, the key driving force always ends up resting on some aspect that is just not tangible. If you think of the iPhone as an example (albeit not a very good one), research probably showed Apple what the potential market was, but there was no assurance that Apple would succeed in making a phone, that the market size would materialize and people would spend much more than the next best alternative, and that competitors would not catch up faster. So much rested on the marketing team to generate the buzz and get it right. The same way, we can model the crap out of these projects, but it fundamentally lies on the team on the ground to make it happen and deliver what they committed to. If Major Donors, and other network offices have faith in the Chairman selling this fund, they will undoubtedly invest – but their investment is a bet on the Chairman, not so much on the cash flows that we modeled. Sure, they will take a look at the model, but just like other financial instruments that are essentially securitized, very few truly understands the detail and nuances behind them. I think this part (simplifying it in the prospectus so they think they understand it) is going to be the hardest. It’s funny how much of the world ‘just works’ on blind faith almost. Anyway, that’s my $0.02 for today.
For those of you who made it to the end of this rant, here’s a treat. This is a picture of the bomb-sniffing dog that is king of the property I’m staying at. His name is James, and he is ALL business. He’s 3 years old, a happy dog, but never wags his tail, and is on alert at all times. It’s funny watching him always looking around for which direction the next thing is going to come from. Love this guy….
In between talking to a number of experts (folks in fixed income securities, and a McKinseyite named Sachin Kadakia) I re-engineered my model to reflect two approaches:
1) The Income Approach – This model adjusts the income they propose to receive while maintaining the current cost structure
2) The Discount Model – This model is the classic model where we take a risk free security, tack on risk premiums as appropriate and discount their cash flows like there’s no tomorrow
For the finance guru’s reading this, relax – It’s a gross oversimplification. Furthermore, initial testing on both models seems to yield realistic results – I finally feel confident that I can go to an investor and address their concerns appropriately (and prove it with quantitative rigor)!
Tomorrow will consist of more meetings (including a guy who started a Private Equity firm and a fund in Malaysia) as well as creating a deck to explain the risk model. A lot of thought needs to go into the structure of the workshop we are hosting in Hong Kong next week. On Friday, we have a detailed review of the business cases, which should leave us in a place to make recommendations on what projects will be part of the fund, and what will not. This weekend we will prep for a short presentation we have to the Shareholders Executive Committee on Monday, as well as begin the process of building the case to invest, and really focusing on the value proposition and the key messages we want to sell. The faster we can get ahead of this, the more we can preview the fund with key investors, tweak as necessary, and then go to market.
One thing that has become interestingly apparent to me is the simple fact that in every scenario you try to quantify, the key driving force always ends up resting on some aspect that is just not tangible. If you think of the iPhone as an example (albeit not a very good one), research probably showed Apple what the potential market was, but there was no assurance that Apple would succeed in making a phone, that the market size would materialize and people would spend much more than the next best alternative, and that competitors would not catch up faster. So much rested on the marketing team to generate the buzz and get it right. The same way, we can model the crap out of these projects, but it fundamentally lies on the team on the ground to make it happen and deliver what they committed to. If Major Donors, and other network offices have faith in the Chairman selling this fund, they will undoubtedly invest – but their investment is a bet on the Chairman, not so much on the cash flows that we modeled. Sure, they will take a look at the model, but just like other financial instruments that are essentially securitized, very few truly understands the detail and nuances behind them. I think this part (simplifying it in the prospectus so they think they understand it) is going to be the hardest. It’s funny how much of the world ‘just works’ on blind faith almost. Anyway, that’s my $0.02 for today.
For those of you who made it to the end of this rant, here’s a treat. This is a picture of the bomb-sniffing dog that is king of the property I’m staying at. His name is James, and he is ALL business. He’s 3 years old, a happy dog, but never wags his tail, and is on alert at all times. It’s funny watching him always looking around for which direction the next thing is going to come from. Love this guy….
Monday, September 21, 2009
MONDAY BLUES, AND I FINALLY FALL SICK
I spent a large part of the weekend creating a risk model that quantifies the risk inherent in the fund, and went to bed on Sunday night feeling really good about where we were. This morning, I woke up with a sore throat, and irritated membranes in my nose (sinus pressure and all). It was horrible. I knew it was going to be a long day. I was also running late, so I did not get my daily fix of scrambled eggs, cereal, and coffee. After getting into the office, I opened the model and realized that there were some logical errors it that set me back about a day, which was not good given that I committed to having it ready for the client to review today. At around 3:30, I had a breakthrough, and the thing was finally working (but far from pretty). Turns out that the client was not in such a rush because it was a national holiday for Eid, so I had some luck there as well.
At around 3:30, I also ended up hitting the wall, and was pretty much worthless at work, and spent the next hour and a half catching up on news in a general state of misery. I rummaged through my backpack and struck gold when I found a Sudafed in my bag, which provided some temporary relief. My co-worker was joking about me contracting the H1N1 virus. People here take the virus VERY seriously. When we enter the country, everyone has to do a health check where they take your temperature to see if you’re running a fever. The public busses are plastered with H1N1 billboards, and a lot of Asians wear face masks in public places. Even at the office, each elevator has a hand sanitizer dispenser that everyone uses. I’m not too concerned, though. I have plenty of friends in public health who have assured me it’s not a big deal. Mass hysteria is interesting.
Incidentally, on our way home, we stopped off at a pharmacy, where (for all his jokes) I spied my co-worker buying some Imodium…ha. It was bound to happen to one of us – better him then me!
All right, it’s 11:30pm, my risk model is still not complete, but tomorrow is another day… for now, I’m going to load up on Tylenol PM, stick my laundry in the dryer, do the dishes (yuk!) and get some rest!
I spent a large part of the weekend creating a risk model that quantifies the risk inherent in the fund, and went to bed on Sunday night feeling really good about where we were. This morning, I woke up with a sore throat, and irritated membranes in my nose (sinus pressure and all). It was horrible. I knew it was going to be a long day. I was also running late, so I did not get my daily fix of scrambled eggs, cereal, and coffee. After getting into the office, I opened the model and realized that there were some logical errors it that set me back about a day, which was not good given that I committed to having it ready for the client to review today. At around 3:30, I had a breakthrough, and the thing was finally working (but far from pretty). Turns out that the client was not in such a rush because it was a national holiday for Eid, so I had some luck there as well.
At around 3:30, I also ended up hitting the wall, and was pretty much worthless at work, and spent the next hour and a half catching up on news in a general state of misery. I rummaged through my backpack and struck gold when I found a Sudafed in my bag, which provided some temporary relief. My co-worker was joking about me contracting the H1N1 virus. People here take the virus VERY seriously. When we enter the country, everyone has to do a health check where they take your temperature to see if you’re running a fever. The public busses are plastered with H1N1 billboards, and a lot of Asians wear face masks in public places. Even at the office, each elevator has a hand sanitizer dispenser that everyone uses. I’m not too concerned, though. I have plenty of friends in public health who have assured me it’s not a big deal. Mass hysteria is interesting.
Incidentally, on our way home, we stopped off at a pharmacy, where (for all his jokes) I spied my co-worker buying some Imodium…ha. It was bound to happen to one of us – better him then me!
All right, it’s 11:30pm, my risk model is still not complete, but tomorrow is another day… for now, I’m going to load up on Tylenol PM, stick my laundry in the dryer, do the dishes (yuk!) and get some rest!
WEEKEND WRAPUP
What a long week! We spent Friday afternoon talking to our clients, and taking one of them through some detail in our methodology. We also made the case for hosting a workshop, which they confirmed that we would do in Hong Kong next week. Finally, after wrapping up the day with some interviews, we had our client’s head spinning enough to want to take us out for a drink. Oh, I almost forgot! We experienced an earthquake here (apparently it was a 6.6 on the richter scale). Even though buildings here are constructed with cement, we're safe becuse this island is pretty much on a rock that is solid. Not sure if that means it moves with the earth, or if it stays still when there's an earthquake. Either way, it's safe.
After work, we went to a place called M Café at Greenbelt, which is a very swanky mall. The mall has a section of restaurants that are pretty good (and pricey for local standards). During drinks, we met up with another one of our client’s close friends, who also works for an NGO, but more on the private sector side as a lobbyist. In the Philippines, if you host a high post at an NGO, you are somebody big. For example, one of the board of trustees for the NGO that I am working for is also on the board of the country’s biggest bank. It makes sense, since one of the assumptions in our models is predicated on the fact that the board and CEOs of the countries that are part of our fund will do their part to “open doors”. Essentially, this is the function they serve. After drinks, we left and got ready for a fashion show.
The fashion show was by a very well known designer (in the Philippines at least), Kate Torralba. We got to hang out with her, as well as some guy who owns two separate restaurant chains here. Turns out the guy also owns a culinary school, is a civil engineer, and an accomplished lawyer who has argued cases in front of the Philippines Supreme Court. The rest of the night we spent hanging out with the management of our property and getting to know them better (perhaps they will hook me up with extra soap next week – kidding).
One of the connections we made on Friday night was to an American girl who was now working in the Philippines doing some grant work. She has her Masters from GW, and she recently moved here to pursue an opportunity in conjunction with the World Bank. We met her and her crew at the Oceanarium, which is an aquarium right on the harbor, and a perfect place to see the sunset. There is no shortage of irony in the fact that the sunset is beautiful due to excessive air pollution. We also hung out with a dude named Carlos, who runs a tour business. He’s also a bit of a local celebrity, and is even featured in our Lonely Planet book. We also met a group of people who were from Boston University and were wrapping up their masters in Public Health, and were down for a semester doing research.
We ended the night going to a place called Penguins, in a part of town that is a bit more what I was expecting the Philippines to be like. We saw an incredible cover band there (seriously, they were amazing!) and also met a ton of ex-pats. Through random chance (and random encounters), I ended up meeting the other “ADP-er” in the Philippines. She’s from Washington and on a project here with the Asian Development Bank. Although she is a part of our Finance & Performance Management practice, she ended up doing some org role, and was not having as great of an experience as we were. Between my colleague and I, we have some experience so we will meet with her later and help her figure things out.
The most ironic thing about our down time away from the office is that we end up meeting a lot of the social elite here. Everyone is connected in some way, and it’s not easy to see how corruption is rampant. It really is all about who you know. In meeting people, the conversation often turns political, and at almost a whisper, natives will admit that the president is a puppet and that the military really runs the country. That’s a long story, though.
That just about wraps up my weekend!
What a long week! We spent Friday afternoon talking to our clients, and taking one of them through some detail in our methodology. We also made the case for hosting a workshop, which they confirmed that we would do in Hong Kong next week. Finally, after wrapping up the day with some interviews, we had our client’s head spinning enough to want to take us out for a drink. Oh, I almost forgot! We experienced an earthquake here (apparently it was a 6.6 on the richter scale). Even though buildings here are constructed with cement, we're safe becuse this island is pretty much on a rock that is solid. Not sure if that means it moves with the earth, or if it stays still when there's an earthquake. Either way, it's safe.
After work, we went to a place called M Café at Greenbelt, which is a very swanky mall. The mall has a section of restaurants that are pretty good (and pricey for local standards). During drinks, we met up with another one of our client’s close friends, who also works for an NGO, but more on the private sector side as a lobbyist. In the Philippines, if you host a high post at an NGO, you are somebody big. For example, one of the board of trustees for the NGO that I am working for is also on the board of the country’s biggest bank. It makes sense, since one of the assumptions in our models is predicated on the fact that the board and CEOs of the countries that are part of our fund will do their part to “open doors”. Essentially, this is the function they serve. After drinks, we left and got ready for a fashion show.
The fashion show was by a very well known designer (in the Philippines at least), Kate Torralba. We got to hang out with her, as well as some guy who owns two separate restaurant chains here. Turns out the guy also owns a culinary school, is a civil engineer, and an accomplished lawyer who has argued cases in front of the Philippines Supreme Court. The rest of the night we spent hanging out with the management of our property and getting to know them better (perhaps they will hook me up with extra soap next week – kidding).
One of the connections we made on Friday night was to an American girl who was now working in the Philippines doing some grant work. She has her Masters from GW, and she recently moved here to pursue an opportunity in conjunction with the World Bank. We met her and her crew at the Oceanarium, which is an aquarium right on the harbor, and a perfect place to see the sunset. There is no shortage of irony in the fact that the sunset is beautiful due to excessive air pollution. We also hung out with a dude named Carlos, who runs a tour business. He’s also a bit of a local celebrity, and is even featured in our Lonely Planet book. We also met a group of people who were from Boston University and were wrapping up their masters in Public Health, and were down for a semester doing research.
We ended the night going to a place called Penguins, in a part of town that is a bit more what I was expecting the Philippines to be like. We saw an incredible cover band there (seriously, they were amazing!) and also met a ton of ex-pats. Through random chance (and random encounters), I ended up meeting the other “ADP-er” in the Philippines. She’s from Washington and on a project here with the Asian Development Bank. Although she is a part of our Finance & Performance Management practice, she ended up doing some org role, and was not having as great of an experience as we were. Between my colleague and I, we have some experience so we will meet with her later and help her figure things out.
The most ironic thing about our down time away from the office is that we end up meeting a lot of the social elite here. Everyone is connected in some way, and it’s not easy to see how corruption is rampant. It really is all about who you know. In meeting people, the conversation often turns political, and at almost a whisper, natives will admit that the president is a puppet and that the military really runs the country. That’s a long story, though.
That just about wraps up my weekend!
Wednesday, September 16, 2009
THINGS WE CAN LEARN FROM DEVELOPING COUNTRIES
Stepping out of the Makati Stock Exchange at 5:30pm (if I leave early) is an experience in itself. The sidewalk is packed with people, busses, and Jeepneys too. The streets are filled with public transportation – including taxis. There simply is no capacity to deal with traffic. At Fraser Place, stepping out at 5:30 to go somewhere will result in a reality check from the security guards: you’re better off going back upstairs until 8:30pm when traffic dies, and you have a chance at getting a cab.
Walking home during rush hour is electrifying. There’s so much energy on the street. One of the things you would immediately notice about the sheer volume of cars is that traffic is constantly flowing, which brings me to the first thing we can learn from developing countries – how to deal with traffic.
There’s a lot of irony in this one, particularly because traffic here is so disorderly. Nobody recommends driving in this city because most of the roads do not have lines on them. Traffic flows like water, with cars packed so closely next to each other, and no “order” to the flow. Stop signs are pretty much ignored and everyone goes through the intersection by missing each other. It’s a lot like India, or the Champs de Lycee or Arc du Triomphe in Paris. Recently, there have even been some articles published about the efficiency gained by chaos (when it comes to traffic). Even through all this disorder, people instinctively avoid each other, and are acutely aware of just how much room they have between their car and the bicycle rider, pedestrian, or car in the next lane. It’s fascinating how it works, and although we could learn from it, there’s no way the west could ever implement this…. It’s something that is inherent in the culture.
The second thing we the developed world could learn from the Philippines is related to waste. When you visit a restaurant, you get one napkin to eat your food with. Initially, it’s a huge inconvenience, but you learn to make it last. Portions are small here as well. My first day here, I ordered the largest Pizza Hut pizza, which the lady quoted as being able to feed 6-8 people. I ate almost three quarters of it by myself in one sitting. Portions are smaller here, and rightfully so. If you order a sandwich from Subway, they wrap it in half the paper used in the US. Just imagine the savings (both financial and otherwise) that could be generated by reducing waste. You never really think about it until you experience it. Think about how much resources you really need, and then measure what you actually use. If you extrapolate that to a month, half a year, or even a full year, you’ll be amazed at your personal impact to the world around you.
All right, I’m really tired from thinking a lot today. Between calls to people in Copenhagen, the UK, Hong Kong, and a lunch date with an exec, I’m spent. The project just got incredibly complex, and there are new discoveries that have completely reshaped our understanding…. Not to mention organizational politics beginning to be apparent. As a result of this, I had to cancel my trip to Singapore this weekend, and will be working instead. Ah yes, the glamorous side of consulting…
Parting thought, this is cool:
http://edition.cnn.com/2009/TECH/09/11/kamen.water.slingshot/index.html#cnnSTCText
Stepping out of the Makati Stock Exchange at 5:30pm (if I leave early) is an experience in itself. The sidewalk is packed with people, busses, and Jeepneys too. The streets are filled with public transportation – including taxis. There simply is no capacity to deal with traffic. At Fraser Place, stepping out at 5:30 to go somewhere will result in a reality check from the security guards: you’re better off going back upstairs until 8:30pm when traffic dies, and you have a chance at getting a cab.
Walking home during rush hour is electrifying. There’s so much energy on the street. One of the things you would immediately notice about the sheer volume of cars is that traffic is constantly flowing, which brings me to the first thing we can learn from developing countries – how to deal with traffic.
There’s a lot of irony in this one, particularly because traffic here is so disorderly. Nobody recommends driving in this city because most of the roads do not have lines on them. Traffic flows like water, with cars packed so closely next to each other, and no “order” to the flow. Stop signs are pretty much ignored and everyone goes through the intersection by missing each other. It’s a lot like India, or the Champs de Lycee or Arc du Triomphe in Paris. Recently, there have even been some articles published about the efficiency gained by chaos (when it comes to traffic). Even through all this disorder, people instinctively avoid each other, and are acutely aware of just how much room they have between their car and the bicycle rider, pedestrian, or car in the next lane. It’s fascinating how it works, and although we could learn from it, there’s no way the west could ever implement this…. It’s something that is inherent in the culture.
The second thing we the developed world could learn from the Philippines is related to waste. When you visit a restaurant, you get one napkin to eat your food with. Initially, it’s a huge inconvenience, but you learn to make it last. Portions are small here as well. My first day here, I ordered the largest Pizza Hut pizza, which the lady quoted as being able to feed 6-8 people. I ate almost three quarters of it by myself in one sitting. Portions are smaller here, and rightfully so. If you order a sandwich from Subway, they wrap it in half the paper used in the US. Just imagine the savings (both financial and otherwise) that could be generated by reducing waste. You never really think about it until you experience it. Think about how much resources you really need, and then measure what you actually use. If you extrapolate that to a month, half a year, or even a full year, you’ll be amazed at your personal impact to the world around you.
All right, I’m really tired from thinking a lot today. Between calls to people in Copenhagen, the UK, Hong Kong, and a lunch date with an exec, I’m spent. The project just got incredibly complex, and there are new discoveries that have completely reshaped our understanding…. Not to mention organizational politics beginning to be apparent. As a result of this, I had to cancel my trip to Singapore this weekend, and will be working instead. Ah yes, the glamorous side of consulting…
Parting thought, this is cool:
http://edition.cnn.com/2009/TECH/09/11/kamen.water.slingshot/index.html#cnnSTCText
Tuesday, September 15, 2009
MEETING EXPATS
The internet connection was down, so I FINALLY got a chance to post. This past Friday, Fraser Place (the place I call my home away from home) decided to host a private happy hour meet and greet for some of the older residents to meet some of the newer people in the building. My first reaction was a bit unnerving. It's definitely not in my comfort zone to step into a room full of strangers and try and mingle - particulary when majority of them are middle aged. I knew I had to do it, and surprisingly, it turned out quite well.
The biggest difference in putting me at ease was made by the hosts of the event. They actively scanned for folks who had recently entered the room, and then engaged them in conversation. After figuring out what their interests were, they introduced them to residents who shared like interests. It was only after the fact that I realized they did this, and when I made that realization, I was surprised at how sophisticated it worked out. The thing this, I don't think they sat around before the event and discussed how they were going to go about creating a warm and inviting environment, rather I truly think it was just a byproduct of their cultural upbringing. I think the indian culture has some of this too. I’ve been to meet and greet functions (recruiting events, etc) where this is simply not the case and you’re left to fend for yourself, or form in clicks with people who most closely resemble you. Had I done that, I would have missed out on a lot!
The other thing that made this interesting is that majority of the residents had some connection to a NGO – two of the people marketing the event and the bistro it was held at were in their marketing professions only part time. The rest of their time was occupied by working with NGOs. It’s good to see the level of penetration and awareness that important causes are getting here.
Here are some of the personalities I met:
I met an investor who consistently outperformed the S&P for the last 15 years or so (this year he is up 39%). I informally quizzed him to see if his claim was bullshit. My assessment is that it is legit. Incidentally, he challenged my financial model and left me with some questions I couldn’t readily answer – hate the feeling of being undermined. For those savvy investors out there, he has 40% of his net worth in cash at the moment because he speculates the market is going down. I think about half of the mainsteam financial media is waiting for some correction, so this should not be earth shattering news. But, I digress...
I also met a miner from Australia. Being part of the Pacific Rim, The Philippines are rich in not only natural resources (in this case, they are exploring a site for coal and gold) but also have a tremendous biodiversity. This is of course in large part due to a violent history with the earth's crust (volcaono's in particular). This was by far the most interesting person I met in the Philippines so far (or perhaps all year). It was good to learn about the challenges they are facing with the local population – a considerable number of households (in the tens of thousands) currently occupy the site they are proposing to mine. The mining company is currently in talks with the government and environmental agencies to ensure that all the environmental considerations are understood before mining. This takes almost two years, which was his role to oversee. The local population also had some recent bad experiences with irresponsible mining companies (not this one) dumping toxic waste and polluting rivers beyond repair. The dynamics between unsettling people (willingly… they all will eventually accept the money), the environmental impact, and the idea of ownership (will the profits flow overseas?) makes it a pretty complicated situation. Incidentally, he is a sailor as well, and his stories re-affirmed my desire to cash in my “celebrating performance” points for sailing classes.
Lastly, there were a couple of health care professionals who were working with either the World Health Organization, or the CDC (both world authorities in health). Their role there was working with the Philippines Government to further their health objectives, part of which was training.
In all these cases, majority of the people at the happy hour have been living elsewhere for a number of years, they all excel in their professions, and they all are middle to executive management. Here’s the most interesting part: albeit long term, all of them occupied roles where they are training local Filipino people to give them the skills to continue the work after they leave. This last point is the most important and bears repeating: their work isn’t merely a means to an end, but rather a transfer of skills that creates value that is sustainable.
All in all, the happy hour lasted four and a half, and was a fun night!
The internet connection was down, so I FINALLY got a chance to post. This past Friday, Fraser Place (the place I call my home away from home) decided to host a private happy hour meet and greet for some of the older residents to meet some of the newer people in the building. My first reaction was a bit unnerving. It's definitely not in my comfort zone to step into a room full of strangers and try and mingle - particulary when majority of them are middle aged. I knew I had to do it, and surprisingly, it turned out quite well.
The biggest difference in putting me at ease was made by the hosts of the event. They actively scanned for folks who had recently entered the room, and then engaged them in conversation. After figuring out what their interests were, they introduced them to residents who shared like interests. It was only after the fact that I realized they did this, and when I made that realization, I was surprised at how sophisticated it worked out. The thing this, I don't think they sat around before the event and discussed how they were going to go about creating a warm and inviting environment, rather I truly think it was just a byproduct of their cultural upbringing. I think the indian culture has some of this too. I’ve been to meet and greet functions (recruiting events, etc) where this is simply not the case and you’re left to fend for yourself, or form in clicks with people who most closely resemble you. Had I done that, I would have missed out on a lot!
The other thing that made this interesting is that majority of the residents had some connection to a NGO – two of the people marketing the event and the bistro it was held at were in their marketing professions only part time. The rest of their time was occupied by working with NGOs. It’s good to see the level of penetration and awareness that important causes are getting here.
Here are some of the personalities I met:
I met an investor who consistently outperformed the S&P for the last 15 years or so (this year he is up 39%). I informally quizzed him to see if his claim was bullshit. My assessment is that it is legit. Incidentally, he challenged my financial model and left me with some questions I couldn’t readily answer – hate the feeling of being undermined. For those savvy investors out there, he has 40% of his net worth in cash at the moment because he speculates the market is going down. I think about half of the mainsteam financial media is waiting for some correction, so this should not be earth shattering news. But, I digress...
I also met a miner from Australia. Being part of the Pacific Rim, The Philippines are rich in not only natural resources (in this case, they are exploring a site for coal and gold) but also have a tremendous biodiversity. This is of course in large part due to a violent history with the earth's crust (volcaono's in particular). This was by far the most interesting person I met in the Philippines so far (or perhaps all year). It was good to learn about the challenges they are facing with the local population – a considerable number of households (in the tens of thousands) currently occupy the site they are proposing to mine. The mining company is currently in talks with the government and environmental agencies to ensure that all the environmental considerations are understood before mining. This takes almost two years, which was his role to oversee. The local population also had some recent bad experiences with irresponsible mining companies (not this one) dumping toxic waste and polluting rivers beyond repair. The dynamics between unsettling people (willingly… they all will eventually accept the money), the environmental impact, and the idea of ownership (will the profits flow overseas?) makes it a pretty complicated situation. Incidentally, he is a sailor as well, and his stories re-affirmed my desire to cash in my “celebrating performance” points for sailing classes.
Lastly, there were a couple of health care professionals who were working with either the World Health Organization, or the CDC (both world authorities in health). Their role there was working with the Philippines Government to further their health objectives, part of which was training.
In all these cases, majority of the people at the happy hour have been living elsewhere for a number of years, they all excel in their professions, and they all are middle to executive management. Here’s the most interesting part: albeit long term, all of them occupied roles where they are training local Filipino people to give them the skills to continue the work after they leave. This last point is the most important and bears repeating: their work isn’t merely a means to an end, but rather a transfer of skills that creates value that is sustainable.
All in all, the happy hour lasted four and a half, and was a fun night!
Thursday, September 10, 2009
GETTING DOWN TO BUSINESS
I love Polar Bears. If marrying Polar Bears was legal, I would solve all my parent’s worries….But, it’s not. While I continue the good fight to make it legal (did you get my letters congressman?) they are being threatened both as a species and by the environment (abnormal heat = no ice caps = no polar bear = grumpy Bhavin). Which brings me to the title of this blog. In case you haven’t made the connection, the non-profit I work with focuses on wildlife and conservation projects (read: they save Polar Bears and Ice Caps!). That’s what we in consulting call a win-win! One slight problem though… turns out that the organization needs lots of money to help the bears. So how exactly does a Banking & Capital Markets consultant help? By helping them find innovative ways to raise money!
Non-profits operating in the development sector are reliant on donor funding to run their operations and projects. If they are lucky to be part of a global organization, chances are they are obtaining some “network funding” from some of the more developed (and generous) countries such as the U.S., U.K. for example.
Individuals are the primary donors to these types of organizations, and often times individuals want to ensure that their money is going to a very specific cause. When they donate money for a specific cause (like saving the dolphins), their money is termed “restricted”, which is to say that the organization can only use those funds for saving dolphins. When Individuals donate without any stipulation of how the funds should be used, those funds are termed “unrestricted”. Unrestricted funds are important because it allows the organization to use the dough in accordance to their greatest needs - not only on conservation projects, but also to pay salaries of their staff, rent for their space, and to have fundraising events to generate even more money and make an even bigger impact!
As part of the growth strategy for this organization, my co-worker and I will be designing an investment security to generate income for the organization. Here’s how it works:
Investors purchase an investment security. The proceeds that the organization receives from the sale of the security are then applied to fundraising projects. The monies generated by those fundraising projects are used to re-pay the investors, with interest. Sounds simple, right? Oh, if you only knew…
The concept is exactly like a stock or a bond, though we’re designing something that is a hybrid of both, and creates the right incentives for all parties involved. In addition to raising money, the structure of the product is important because the organization is looking to use it as a tool to shape some behavior within the organization. I will write more about that another time…. All indications are that this has never been done before, and when we pull it off, we will for sure revolutionize just how this organization (and others) obtains capital. The possibilities are exciting. I’ve considered writing a paper on this after all is said and done. Time will tell…
There. Now you know exactly what my work here entails, class is dismissed!
I love Polar Bears. If marrying Polar Bears was legal, I would solve all my parent’s worries….But, it’s not. While I continue the good fight to make it legal (did you get my letters congressman?) they are being threatened both as a species and by the environment (abnormal heat = no ice caps = no polar bear = grumpy Bhavin). Which brings me to the title of this blog. In case you haven’t made the connection, the non-profit I work with focuses on wildlife and conservation projects (read: they save Polar Bears and Ice Caps!). That’s what we in consulting call a win-win! One slight problem though… turns out that the organization needs lots of money to help the bears. So how exactly does a Banking & Capital Markets consultant help? By helping them find innovative ways to raise money!
Non-profits operating in the development sector are reliant on donor funding to run their operations and projects. If they are lucky to be part of a global organization, chances are they are obtaining some “network funding” from some of the more developed (and generous) countries such as the U.S., U.K. for example.
Individuals are the primary donors to these types of organizations, and often times individuals want to ensure that their money is going to a very specific cause. When they donate money for a specific cause (like saving the dolphins), their money is termed “restricted”, which is to say that the organization can only use those funds for saving dolphins. When Individuals donate without any stipulation of how the funds should be used, those funds are termed “unrestricted”. Unrestricted funds are important because it allows the organization to use the dough in accordance to their greatest needs - not only on conservation projects, but also to pay salaries of their staff, rent for their space, and to have fundraising events to generate even more money and make an even bigger impact!
As part of the growth strategy for this organization, my co-worker and I will be designing an investment security to generate income for the organization. Here’s how it works:
Investors purchase an investment security. The proceeds that the organization receives from the sale of the security are then applied to fundraising projects. The monies generated by those fundraising projects are used to re-pay the investors, with interest. Sounds simple, right? Oh, if you only knew…
The concept is exactly like a stock or a bond, though we’re designing something that is a hybrid of both, and creates the right incentives for all parties involved. In addition to raising money, the structure of the product is important because the organization is looking to use it as a tool to shape some behavior within the organization. I will write more about that another time…. All indications are that this has never been done before, and when we pull it off, we will for sure revolutionize just how this organization (and others) obtains capital. The possibilities are exciting. I’ve considered writing a paper on this after all is said and done. Time will tell…
There. Now you know exactly what my work here entails, class is dismissed!
Tuesday, September 08, 2009
FIRST IMPRESSIONS
- It’s HOT and HUMID.
- It is ALWAYS raining. Even when it’s not raining, there’s a very slight trickle of rain. I’ve been here 3 days now and it has not stopped raining.
- The air just hangs. The wind hardly blows. If a car passes you and has an emissions problem, the smoke just hangs right in front of you, no matter how much you think it will pass.
- People are super friendly, and timid. When they hand you a piece of paper, they turn it so that the text is facing you, and they hand it to you with two hands and bow. I’m not kidding. Everyone does this.
- They are incredibly respectful.
- Everyone speaks English in the Philippines (I knew that before coming, but was a pleasure to see how well they spoke it).
- When I walk to work, everyone around me is almost dancing to work because they are all trying to avoid puddles.
- There is a LOT of people in Asia. Whenever I am in a public place, it’s always cramped. No wonder I saw at least 4 GUCCI stores in the Seoul Airport (no joke).
- Cars don’t stop for pedestrians, instead, they just avoid you. It’s like India – you have to walk and keep walking regardless if you think the car is going to stop or not. Even though he steps on the gas, he’ll avoid you. Just don’t look!
- The country has a lot of British and US influences. Some Spanish. Basically anyone who has colonized this place has left their footprint here.
- The banks don’t trust anyone (they won’t exchange your money if you are not an account holder).
- Banks are surprisingly automated here. More so than the US, people rely on ATM machines for transactions beyond withdrawals and deposits (such as payments).
- I thought I would be taller then everyone here, I’m not.
- Filipinos LOVE fish.
- I feel rich. Right now I have 4,000 pesos in my pocket. That’s only about $80. I love it when I get like a 10,000 note.
I’ll add more later as time goes by.
MTV CRIBS
This is my crib in Manila. I admit that I was a little paranoid and went overboard when booking this from the US, but it’s all worthwhile now. Incidentally, the property is heavily secured with armed guards and gates. The best part is they have this AWESOME dog that’s trained to sniff for bombs. Totally need to get a pic of that sucker. Enjoy!
http://www.sendspace.com/file/gh3ukm
(click on the THECRIB.AVI link at the bottom of the page)
This is my crib in Manila. I admit that I was a little paranoid and went overboard when booking this from the US, but it’s all worthwhile now. Incidentally, the property is heavily secured with armed guards and gates. The best part is they have this AWESOME dog that’s trained to sniff for bombs. Totally need to get a pic of that sucker. Enjoy!
http://www.sendspace.com/file/gh3ukm
(click on the THECRIB.AVI link at the bottom of the page)
A NOTE ON AIR TRAVEL
My flight was from ATL – LHR – Seoul – Manila. I flew British Airways from the US to UK, and Korean Air from the UK to the Far East. I wisely decided to purchase the book “Outliers” (highly recommend it) in the Airport to read on the plane ride on my way to the Philippines.
Now, recently, for some strange reason I’ve been more and more afraid of turbulence when I fly. I even did some research on turbulence to put my mind at ease. Here are some facts:
- I flew on an Airbus 300 or 380 or whatever. In my mind, it was the plane that crashed twice most recently.
- I sat right at the wing. Statistically, the seats at the very back of the plane have the highest survival rate. They also have the bumpiest ride.
- Turbulence is more severe when going north to South (due to trade winds) then when going east to West. I was going north to South.
- There’s a section in the book “Outliers” that chronicles how shitty the airline Korean Air was. They had so many crashes in the early 90s that the FAA advised Americans not to fly on their airline. Their crash rate was 14 times higher than other Airlines. Did I mention that I was flying Korean Air? There was yet another example in the book about a South American pilot and an Asian first officer. I shit you not; my Korean Air flight was piloted by a South American!
- I was jetlagged, and I couldn’t sleep.
Collectively, this sucked. I did make it though though… turns out that the end of the chapter in the book chronicled how Koran Air turned itself around and is perfectly fine to fly these days. I also remembered how my brother in law told me how each rivet on the wing of an airplane is stress tested and meticulously designed so that it can withstand forces far greater than it would see in the air. I also understood that most crashes are due to pilot error, not equipment failure. Lastly, I just came to terms with the fact that I couldn’t do anything about it. That’s all I have to say about air travel. That and the fact that airplane Asian Veg food is good.
FIRST THINGS FIRST – TRAINING IN LONDON
It’s been a few years since I went to London, which was my first destination on my way to Manila. The co-worker who will be accompanying me on the study is also from the London office, so I got to meet him as well.
Aside from a great networking opportunity, training was in many ways an eye opener. We had people going to every imaginable place in the world (from Ghana, Kenya, India, Geneva, etc), and it was interesting to see how each of these nations had several common themes. We got a crash course in the issues that developing nations are facing: from trade barriers, to being saddled with debt by first world nations. We learned about how what might seem like progress is often times a destructive force in these fragile societies.
The case study we covered was how Coca Cola opened up operations in a developing nation which, to many brought the promise of reducing poverty by increasing jobs. After Coca Cola built their plant, the water table dropped by a third. Coca Cola was sucking the very resources that the farming community was so dependent on – water. We also got a crash course in how history shaped the “rules of the game” that the world plays by today. We learned about societies in these countries and how they are in a vicious cycle that is impossible to break out of.
Then, we challenged our own prejudices. How were we to be perceived in these countries, and how could we make recommendations without fully engaging and understanding the people in these countries. An interesting cultural exercise listed a few statements, and asked us to describe what we heard with an adjective (such as disgusting, interesting, exotic, normal, amusing, etc). Here’s a great example:
We also learned about staying healthy in these countries, and understanding coping mechanisms. We learned about common diseases and how to spot the signs of them, and when to see a doctor. We learned about how to purity water, and how to cook our food.
We closed by learning about the challenges of the clients we would face in these societies, and how to deal with the complexity. Often times, what a head office dictates is very much different from how an organization is run on the ground. We did case studies on these. Here’s an interesting example we covered in class:
This type of an example isn’t really uncommon, and is an interesting take on how different the landscape is from headquarters to the field.
Training was a ton of fun, and after being in London for two days, it was time to fly to the Far East.
It’s been a few years since I went to London, which was my first destination on my way to Manila. The co-worker who will be accompanying me on the study is also from the London office, so I got to meet him as well.
Aside from a great networking opportunity, training was in many ways an eye opener. We had people going to every imaginable place in the world (from Ghana, Kenya, India, Geneva, etc), and it was interesting to see how each of these nations had several common themes. We got a crash course in the issues that developing nations are facing: from trade barriers, to being saddled with debt by first world nations. We learned about how what might seem like progress is often times a destructive force in these fragile societies.
The case study we covered was how Coca Cola opened up operations in a developing nation which, to many brought the promise of reducing poverty by increasing jobs. After Coca Cola built their plant, the water table dropped by a third. Coca Cola was sucking the very resources that the farming community was so dependent on – water. We also got a crash course in how history shaped the “rules of the game” that the world plays by today. We learned about societies in these countries and how they are in a vicious cycle that is impossible to break out of.
Then, we challenged our own prejudices. How were we to be perceived in these countries, and how could we make recommendations without fully engaging and understanding the people in these countries. An interesting cultural exercise listed a few statements, and asked us to describe what we heard with an adjective (such as disgusting, interesting, exotic, normal, amusing, etc). Here’s a great example:
They eat a food from a paste made from the seeds of a type of grass, cooked once and then burnt near a flame, which is smeared with fat from an animal. They eat this with the albumen from a bird. Traditionally they eat it at certain times of dayWhat do you think of the statement above? Is it disgusting? Is it strange? Or is it describing toast, which we eat every morning!
We also learned about staying healthy in these countries, and understanding coping mechanisms. We learned about common diseases and how to spot the signs of them, and when to see a doctor. We learned about how to purity water, and how to cook our food.
We closed by learning about the challenges of the clients we would face in these societies, and how to deal with the complexity. Often times, what a head office dictates is very much different from how an organization is run on the ground. We did case studies on these. Here’s an interesting example we covered in class:
A Catholic organization is funding AIDS prevention work in sub-Saharan Africa. If you know anything about the Catholic faith, you know that they are against the use of contraceptives. As a consultant, you’re sent to the field to document their expenses and it’s clear to you that the head office suspects the field office of distributing condoms. As anyone in Africa knows, contraception saves more lives than alternative methods, and if the field office is using some of their funding to provide free contraception to the villages nearby, they are likely saving thousands of lives. The head office threatens serious repercussions if they discover the field is investing in these unapproved methods. As a consultant, what do you do? You’re bound by ethics on one hand to not lie on your report, and uphold the firm’s integrity. On the other hand, you have a moral obligation to do what you think is right, and allow the field
office to continue to distribute condoms. Should you lie about it? There is no right answer - just food for thought.
This type of an example isn’t really uncommon, and is an interesting take on how different the landscape is from headquarters to the field.
Training was a ton of fun, and after being in London for two days, it was time to fly to the Far East.
WHAT THE HELL AM I DOING IN MANILA?
Great question! I asked myself that daily over the course of the weeks leading up to my trip, and the answer was always the same: I’m not sure! The truth is that part of me wants to make a difference in the world. And then there’s the other part of me that’s looking to shape my life differently. I figured that shocking my system and stepping way outside of my comfort zone would help me achieve that result.
In looking at the world, Asia is the last place I thought I would find myself. The languages are completely different (in Europe, I could at least get by with French and Spanish), the food is even more different (I don’t even know what some of the vegetables are). In the end, I’ll revert to the cheese that Shital always opines about, and trust that the universe always conspires to get you what you want. I was destined to be here. We shall test that hypothesis over the next few months…
Great question! I asked myself that daily over the course of the weeks leading up to my trip, and the answer was always the same: I’m not sure! The truth is that part of me wants to make a difference in the world. And then there’s the other part of me that’s looking to shape my life differently. I figured that shocking my system and stepping way outside of my comfort zone would help me achieve that result.
In looking at the world, Asia is the last place I thought I would find myself. The languages are completely different (in Europe, I could at least get by with French and Spanish), the food is even more different (I don’t even know what some of the vegetables are). In the end, I’ll revert to the cheese that Shital always opines about, and trust that the universe always conspires to get you what you want. I was destined to be here. We shall test that hypothesis over the next few months…
IN THE BEGINNING - HOW ALL THIS STARTED
The company I work for has a highly selective program that operates as a non-profit entity within our firm. Through this, we are able to offer development sector organizations the same high quality consulting services that the firm provides to commercial clients, but at less than prevailing market rates in the private sector. We see this as a sustainable model which is based on a true partnership – one in which the firm, its employees, and our development sector clients all make a contribution. The firm makes no margin on the projects, and fees charged are not based on a loaded cost. As consultants, we take a 50% salary cut. The process to get here was not easy, and after being in this program for two years, the stars finally aligned and I got staffed on a non-profit project! Where to you ask? Manila, of course.
The company I work for has a highly selective program that operates as a non-profit entity within our firm. Through this, we are able to offer development sector organizations the same high quality consulting services that the firm provides to commercial clients, but at less than prevailing market rates in the private sector. We see this as a sustainable model which is based on a true partnership – one in which the firm, its employees, and our development sector clients all make a contribution. The firm makes no margin on the projects, and fees charged are not based on a loaded cost. As consultants, we take a 50% salary cut. The process to get here was not easy, and after being in this program for two years, the stars finally aligned and I got staffed on a non-profit project! Where to you ask? Manila, of course.
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