This is the start of a series of articles on The Asia-Pacific Centre for Research (Acre), Inc. Acre, Inc. is a full service marketing research and IT consulting agency. It will celebrate its 20th year as an enterprise on August 23, 2009.In terms of assets and using Department of Trade’s definition, Acre, Inc. remains an SME after 20 years. As compared to the criteria set by Colins and Porras (Built to Last), Acre, Inc. has yet to cross the bridge of greatness which these scholars set at 50 years or more of sustainable operations. In terms of annual revenues, Acre, Inc. has yet to break into the category of the top 1,000 corporations in the Philippines.
However, there are other criteria, not usually emphasized in management books and industry standards, where Acre, Inc. has done considerably well. The company deliberately and purposely focused on these standards to create breakthroughs and raise the bar of excellence in management, marketing research and enterprise development.
I will be writing these articles from several perspectives.
First, as the founder of Acre, Inc. and as its Chief Executive Officer. From this perspective, I may be able to share historical insights and milestones which contributed to the continuing viability and struggles of Acre, Inc.
Second, as an educator. I have been a part-time professorial lecturer at the DLSU Graduate School of Business since 1987 teaching courses in strategic management, performance management and marketing management. From this perspective, I may be able to step back and evaluate Acre, Inc.’s history with objectivity to present lessons in enterprise development and decision making.
Third, as an entrepreneur. I am managing several SMEs including those that I have founded. I have helped many other entrepreneurs start a business. From this perspective, I may be able to internalize and share the challenges of enterprise development – the start up problems, day-to-day challenges, and the kind of business environment that tends to influence long-term viability of companies, large or small.
Fourth, as a student of performance management. As I write this introduction, universities and practitioners are testing and implementing new and more responsive concepts in performance management. As a student, I continue to keep an open mind on the principles that could best work in industry and government. From this perspective, I may be able to rely more on the more recent principles in management and rely less on current standards or dogmas.
This series comes in six parts. I hope that I will have the time to blog these articles way before the deadline on August 23, 2009. I do not discount the possibility of blogging articles other than what should be included in this series if conditions dictate.
The first part includes the pre-Acre, Inc. days (pre-1989). What were the conditions that led to the development of this new enterprise? What were the challenges? What were the management and enterprise development principles that became the bases for the new enterprise? What were the resources needed to start it up and roll over for long-term viability? This article attempts to provide answers to these questions and summarize lessons learned in the pre-Acre, Inc. days. This is a very interesting phase in the life of Acre, Inc. and, if I may, in the life of an enterprise conceived through a combination of randomness and purposiveness.
The second part is about the start-up days (1989 to 1994). What is the main purpose of the business? What are the secondary purposes of the business? What markets and customers will the enterprise aim to serve? In what processes should it excel in a business where systems, methods and technology are victims of obsolescence? In what way should the enterprise position itself in an industry dominated by multinational companies or companies that have been operating for many years? This part discusses the important decision-making days and documents the impact of these decisions on the future of the enterprise. Some are book-line strategies and decisions. Some are blue ocean scenarios.
The third part is about organizational and corporate transformation (1995 to 1999). There is usually a time in the life of an enterprise where management challenges the business and the concepts that gave the enterprise its corporate life. Should we continue to be a player in the industry where we now operate? How can we leverage the resources and experience that we have to expand or venture into other businesses? How do we create an enterprise that grows faster and earns more? This is one of the most challenging moments of Acre, Inc. It was at that time when the environment was changing and business was growing fast. The speed by which technology was changing was also very evident, putting pressure on capital investments and process improvement.
The fourth part is about the company’s physical environment (part of 2000 to 2005). Should we transfer from the tourism center to the financial district? Is it better to investment in an office space rather than lease the space? How far ahead should we plan our physical facilities? For over 10 years, Acre, Inc. was located at the Philippine International Convention Center (PICC) where all facilities were conveniently available. However, it was a city or two cities away from most of its clients. At the same time, PICC was no longer as tenant-friendly as in 1990.
The fifth part is about going back to the basics – the company’s core ideology and roots (2007 to present). With opportunities in research growing, should the company invest in this industry or should the company continue to find opportunities in the IT sector? Can research and IT, as separate businesses units, co-exist or should the company focus on only one business? Alternatively, should there be a third operating division that will focus on performance management, an area where the company has been well recognized? It is in this period that research experienced robust growth but mainly from foreign research clients and partners. Foreign companies from different countries started reviewing business opportunities in the Philippines. In 2008, there were more inquiries for research not only for the Philippines but also for other countries in Southeast Asia. It is also during this period when our talent pool was considerably more than at any point in the company’s history.
The sixth part is about the future of research, predictive analytics and performance management. Is research a growth sector? Will IT continue to grow? In which specific sectors in IT will growth continue? What should be the future of Acre, Inc.? Alan Kay writes that the best way to predict the future is to invent it. The picture of Acre, Inc. on its 50th year has been defined. The first 20 years of the company comprise the first big milestone. There will be other milestones, some shorter in years, and they will be discussed in this article.
(for comments, write to abfontanilla@yahoo.com or nick.fontanilla@gmail.com)
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