5S Kaizen basics, organization method

Every generation needs a revolution - an entrepreneurial revolution

Learning basics of operational excellence  5S

5S: A Workplace Organization Method from Nanette Bajador

Venturing into a business that consolidates all memorialization products

Every generation needs a revolution - an entrepreneurial revolution

This educator entrepreneur ramped up, levelled up into new business of memorialization, ie memorial plan.  They are into a deal with a life plan company and there is a one year transition period to transfer the assets.

The memorial plan company consolidates the very fragmented but very big memorial business:  about P25 billion.   The memorial park occupies but mere 20% of the total market.  In 2014, the memorial park only sold P500 million worth o plots

Yesterday, we and the chairman of the seller receive the certificate to operate from OIC:


Life is a DESTINY, PLAN

Rizal Philippines
September 27, 2016

Today the Office of Insurance Commission under Commissioner Emmanuel Dooc issued the License to Operate to Destiny Financial Plans and handed the same to Chairman Arsenio Bartolome III.  It took two years for Mr. Bartolome and Mr. Saguinsin to have the license to operate renewed once more.

Destiny Financial Plan Inc. is one of the 14 remaining pre need companies  in the country today (down from 22).  There will be only two competitors in the field:   only Destiny Financial Plan and SPLP.  The latter dominates the market.

How to plan and execute a crime - the first group activity in Entrep Class

Every generation needs a revolution - an entrepreneurial revolution

Rizal Philippines
September 25, 2016

This post no longer teaches the subject.  But I recall with fun and laughter the activities the class had, whenever there was class presentation when the activity of presenting how to plan and commit a crime was presented.

The plans were audacious and incredible and they can only hatched in a devils workshop (meaning to say we can be creative when in a hypothetical situation without rules)    However the activity was premised more on moral and ethical grounds.   The entrepreneur in his search for wealth, may attempt something that has crossed the borderline as when De Lorean attempted to save his business by going into illegal drugs

As when a powerful govt official finds nothing wrong in asking the inmates (as alleged) to produce (as what they say in the military) millions to fund the 2016 election campaign.  Well they obeyed and produced.  Only to be double crossed.  

I know that some top PNP before took care of criminals, became their patrons for illegal drugs, hold up and kidnapping, at 5 to 95% sharing (5% for the criminals under care, 95% for the patron) and then when the press is hot, have them the culprits killed and the patron come out the hero.  The lady turned out to be the hero after 19 were removed allegedly out of competition.

But that is inhuman, to get campaign funds from the prisoners or to force prisoners to cough up campaign funds dont you think, and then use the august halls of the govt to defend them?

You first got it in my entrep class, remember that?!

To be in Forbes list of richest Filipinos - dream for the next 10 years

Every generation needs a revolution - an entrepreneurial revolution

Rizal Philippines
September 25, 2016


Forbes list of top 50 richest Filipinos

I just saw the list of top richest Filipinos listed in Forbes.  I realized that I forgot this as a goal while I thought.  My routine settled on grades arguing with school administrators, catching a plane, making syllabus, correcting papers.  Not exactly in line with selecting high value activities.

Being retired at 65 from teaching gave me a fresh look as to who I really want to be.  I want to be included in the list of richest Filipinos.  Say top 50.  Maybe a $1 billion.   (next 20 years)  For 10 years, I will settle for $100 million.

What will I do:

1. I will expand the Memorial Plan business make it multi billion in the next 5 years  (strive to sell 100,000 plans in next 5 years  -  that is about P3,000,000 billion worth -  good enough for $60 million

         1. put up and acquire chapels, crematorium

         2.  put and acquire more memorial parks

              Good for $30 million

2.  Develop subdivision, build and sell

3.  Expand the lending investor, acquire bank or join the rb and expand this into something else to help in #1 and #2

4.  Acquire schools

5.   Dab into the energy business


Maski wala sa worlds richest:

Moratorium for land conversion for two years

Every generation needs a revolution - an entrepreneurial revolution

Rizal Philippines
September 25, 2016

From DAR -draft EO for prohibition of land conversion from agricultural to non agricultural


I just learned today that there will be a two year moratorium in land conversion for two years, to protect the land awarded to farmer beneficiaries of some 4.7 million hectares that were CARPED (awarded to farmer beneficiaries)

The current secretary of DAR is Rafael Mariano the head of Kilusang Magbubukid ng Pilipinas.  a well known leftist organization; and Anak Pawis

You will recall that many of the CLT (Certificate of Land Transfer) awarded in many places of the Philippines like Sta Rosa Laguna, NE and elsewhere were sold during the time that they were not still saleable.  You will note that a celebrated farm owned by a top govt official in Batangas were CLT that were sold even though they had not expired.  Again the rich benefited from the land that the farmers got from the CARP program.  As a developer I did not take that development as an opportunity.  So I sorely missed the opportunity in Sta Rosa.  A classmate did.

Lands covered under the proposed EO are:

• all awarded lands under Republic Act 6657 (Comprehensive Agrarian Reform Program), Presidential Decree 27, and other agrarian reform laws
• agricultural lands with notices of coverage issued by DAR
• irrigated and irrigable lands
• prime agricultural lands
• privately-owned lands with farmer tenants
• agricultural lands being cultivated by farmers, individually or collectively

Is this the start of class war under Duterte?  Some called Gina Lopez decision to close mining companies as crazy.  Is the Dutertes halo beginning to unravel with anti business policies?

What do you think will happen with this moratorium?

So some hypothesis:

1.  Developers will increase their prices;  real estate will become more expensive.

2.  They will see this an opportunity to create shortage

3.  Many will buy and sell units from existing foreclosed mismanaged properties

4.  We will see more vertical developments

Opportunities abound; loss of one and new one opens

Every generation needs a revolution - an entrepreneurial revolution

Rizal Philippines
September 24, 2016

As we talked with the seller of the school (the founder) she looked sad that she would part with the love of her life.  Anyway, we have great opportunities ahead of us:

1.  A memorial park, cemetery in her home town in the Visayas  She is related to the mayor

2.  A cemetery in Zambales, the hometown of her husband.  Her husband is related to the mayor.

3. I also told her, I want to be in the Forbes list of those whose networth is at least $1 billion.  Having school is one of the good investments I can make. Phinma, the Montinolas, Yuchengcos are into school.   Say she runs the school academics, I set up the organization and the finances .  That would be a good combination isnt it?

I noted that she had the short end of  deal and she would still struggle to make ends meet.  Could I talk to the buyer to have consideration?

I will try.   I am just new in the organization that will buy the school, and I do not know my role

An invitation from the municipal councilor to lecture and mentor on entrepreneurship

Every generation needs a revolution - an entrepreneurial revolution

Angono, Rizal  Philippines
September 20, 2016

I was invited this morning by a new councilor of this town. He used to be the tourism officer and now chairs committee on human rights. He said the meeting was about a project.

It turned out that the project was about the subject that I used to love teaching about - entrepreneurship.

The school where he teaches history and Rizal (ESA) wants to invite more students graduating from high school.  He plans to generate interest on entrepreneurship and ESA by having lectures and mentoring on the said subject.   He got me there and said I was willing to do (pro bono as usual)  Because I wanted to leave a legacy

When do we start?  January 2017.   Just let me know

The spirit of enterprise lives - even at NBP

Every generation needs a revolution - an entrepreneurial revolution

Rizal Philippines
September 20, 2016

The spirit of enterprise is alive and well even at New Bilibid Prison as we listen to the tale of Herbert Colangco (later on he was adjudged Kulang by his protector) He finished only grade 6 but he has tremendous business sense (and even honor)

In order to meet his monthly quota of P3.00 main protector, and the P1.2 million to the prison director, he had to be very enterprising to meet his objectives (he was very much goal driven) he engaged in a variety of businesses/racket:

1.  Aside from drugs, he did the concert.  He got 300 case of beer when he had concert, got them them for mere P700 each case, and sold them P10,000 each case for a gross of P3 million.  He gave the P1 million allegedly to his patron, the 2 million he spent for his production crew and rental of equipment

2.  He profited from the transfer fee.  In order for inmates to move from medium security to the maximum security (where facilities are a la Las Vegas) with first class amenities -  bath room, wine room etc, he would be charged by certain personality, say P500,000 and charge them P800,000 pocketing the difference to pay for the monthly PR Payola

3.  He had a lending operations charging as much as 10% per week.  Very enterprising indeed.

4.  Hospitality business.   Through his talent manager allegedly named Reynante Diaz, he got models for P25,000 each and sold them to drug lords for P75,000 each pocketing P50,000 each cool margin for 20 models or P1 million.  At the end of the day in the usual tale of greed and deceit, the P3 million + P1.2 he gave monthly were not enough to have him removed from his enclave, and transferred to NBI and lost all his sources of revenue, hence the change of heart.

His bosses want him to  increase his quota, buy from the Chinese and later have them transferred to far away places.  Herbert did not want to have any of those dishonesty. (estafa)

What needs to be done at the school to be acquired?

Every generation needs a revolution - an entrepreneurial revolution

Rizal Philippines
September 18, 2016

I was tasked by a holding company to help evaluate a school that is being negotiated for sale.  All ready, a downpayment  in the form of a P12,000,000 loan good for 6 mos has been granted to remove the TCT from escrow, and pay off the SSS premiums loans, Pag ibig.

A group has been tasked for a Due Diligence. The task of the DD group are two fold:

1.  Financial verification.  Are the revenues and expenses correct?

2.  Outside of the  financial, what are the drivers of the business:

      1. Internal analysis (management, delivery of the service, morale, leadership, facilities, MVP)

     2  External analysis:   competition, key factors for success, other business opportunities

The DD result is critical for the determination of strategies to cement the deal, and ensure ROI for the investors.

The deal would be something like this:

  Total purchase price:     P50 million

  Down payment:   P12, million

  Retirement             13 million

Balance                  25 million

    Since the property worth P70 million is in the name of an individual person, this will be transferred to a holding or real estate company and borrow P30 million for 10 years at 10% interest.  The monthly amortization would be P413,000 per month  Why P30 million? So that the balance would be used in upgrading the  school.

Some initial findings:

1. The revenues of the school P2 million a month (P24 M for 2014)

2.   The expenses seem to be overstated.  The interest expense amounting to P800,000 is lodged as direct expense (wrong entry)

3.  The total monthly expense  is P1.2 million (without interest expense)  thus if we add the P400,000 to the cash outflow, there would be P400,000 left for P4.8 million income for the year.  That is P48 million for the next 10 years + owning the land and building

4.  Now if you can look at other business opportunities:  collateral business related to the school (what are they.  This is subject to the research by the DD team.  They could have been hidden from the FS or is a business within the business or is overlooked by the owners)

What would be the strategy?

Is this a good buy?

NUSTD - building a better world through Technology and Design

Every generation needs a revolution - an entrepreneurial revolution

Rizal Philippines
September 12, 2016

NUSTD


I saw a TV clip regarding NUSTD (National University of Singapore and Technology) start. They partnered with Massachusetts Institute of Technology. They hired a faculty of MIT to be the Dean, and had the start up faculty train in Cambridge Massachusetts to  bring the  spirit of newness, inventiveness, innovation and creativity to Singapore.

If I will be blessed with more wealth and longer healthy life, I would like to help co build, sponsor such a school

This is my idea of a GSB that focuses on design.  The days of B school is over. The time for D school has come.  Time for schools in the Philippines to wake up.

Can private and public entity think of this and establish.

 The  Iloilo Science and Technology University  has done a great job.  Its students can now design and create robots

Iloilo Science and Technology University

A business school must practice what it preaches especially that it espouses heroism and being a man for others, spirituality

Every generation needs a revolution - an entrepreneurial revolution

Officially or unofficially I am out of the teaching staff of the school, thus I could not be accused of disloyalty as I touch unpleasant things in this post. I cherish the years that I was a part of the teaching staff.  I value the friendship and the knowledge I gained from the colleagues and the encouragement of the former leaders and managers.

Lately and I am disappointed with management and leadership of that school:

1.  Despite the meetings, the current boss is far removed from the teaching staff and never really get to know them/us.  I think he thinks only he is the best and can never be wrong.  The cluster heads are not much different.

2.  Despite the presence of young blood in the management, I never saw any innovation nor any change in the school. The balding senior leaders of yore were much much better than the young dynamic(?) leaders now. From what I know despite the restructuring, enrollment was halved, and great teachers have all ready left.in droves (I included?)  Despite the strategic knowledge that in the school, the CSF are the experienced teaching staff.

3.  Despite priding itself as a school that is an expert in strategic management, it missed the strategic intent and issues and thus is now lagging behind other business schools.

4.  Despite the vaunted courses on leadership and management, only a secretary told me that my time is up since I am 65.  I did not see my cluster chair, my program director about this changing moment in my life at the school.  Where is the HR Or the Leader of the School?  I did not even get a goodbye or pat in the bank?  Too busy with the University of the Bun?  It all could end like this. Where are the men and women for others? Where is the Ignatian spirit and leadership that we are teaching?  There is a great divide between what we teach and what we practice?

Thanks to all my former students and colleagues.