Asian Management Awards well recognized in Indonesia
It was a glittering evening of thanks and appreciation last night at the Jakarta Hilton International as representatives of six Indonesian companies stepped forward to receive the 1993 Asian Management Awards.
Presented by the Asian Institute of Management and the Far Eastern Economic Review, the awards are presented annually in six countries -- Hong Kong, Indonesia, Malaysia, the Philippines, Singapore and Thailand -- in recognition of outstanding companies which have successfully implemented management concepts in their organizations.
"There is a world of difference in the quality of entries from Indonesia since the awards started in 1991," say Michael Hamlin, a member of TeamAsia, an event management company which organizes the presentation ceremonies in all six countries.
Entries from Indonesia in the first year of the awards lacked the depth of other countries, Hamlin says. "Now I would not hesitate to compare the quality of the Indonesian entries with others in the region. Part of this development has to do with Indonesian companies forays into the region."
His praise is echoed by Maria Montserrat S. Iturralde, the president of TeamAsia, who has managed the program since its inception.
"Both the quality and quantity of the entries has increased," she says. "Now we get data forms from companies delivered in boxes, with appendices attached, to our headquarters because companies have prepared such extensive documents."
She adds that several companies have gone so far as to hire public relations firms to polish their entries.
There has been a huge increase in the number of nominations received each year. More than 7,500 nominations were recorded for this year's program, compared to slightly less than a 1,000 in the initial year of the awards in 1990.
The total number of Indonesian companies has remained almost constant, from a high of 416 in 1991; 288 in 1992; and 301 for this year. These figures are doubled when one considers that many of the companies were nominated in more than one of the seven categories.
History
The Asian Management Awards were launched in 1990 with the aim of seeking out, recognizing and honoring outstanding companies in the region.
The awards were the brainchild of three executives at the Asian Institute of Management who realized the need for recognition of outstanding companies in the region who have adopted focused, strategic paths for long-term growth and survival.
The annual search starts with the solicitation of nominations in each of the six countries using a variety of methods, including focus group discussions, print advertisements, direct mail and directed research.
For this year's program, a coupon for nominations was placed in copies of the Far Eastern Economic Review.
Nominated companies are sent a data form which requires substantial data disclosure, both quantitative and qualitative, regarding its performance in its individual nomination category.
The Asian Management Awards goes a step beyond the traditional benchmarks of measuring excellence, such as sustained growth records and annual stockholders' returns, by evaluating an organization's commitment to excellence through a quantitative examination of its management functions, culture and environment, as well as its dedication to total quality.
The data received is treated with the utmost confidentiality. It is encoded into a database and analyzed by a team of Asian Institute of Management faculty members to shortlist the candidates. This team trims the multitude of nominees to five to seven companies per country per category. Data submitted by the companies that make it to the shortlists are validated for veracity.
Country-specific boards of judges, all composed of leading managers both from the public and private sectors, then evaluate the shortlisted candidates and choose the winners. The decisions of the boards of judges are submitted to the Governing Board, composed primarily of the Asian Institute of Management Board of Governors, for final approval.
Companies are judged on a country-by-country basic because the organizers realize that circumstances are markedly different in each nation.
"The companies are judged from the view of all the factors operating in their countries, including economic, social and political, to gather a completed perspective on their achievements," Iturralde says.
Winners are informed of their selection and the awards presented in formal awards ceremonies conducted in the six countries. The awards dinners are attended by the CEOs of the winning organizations, their guests, enterprise and ministry leaders, members of the government and diplomatic corps and representatives of the sponsors and organizers.
No fees are exacted during the entire judging process and Hamlin says this is to ensure the integrity and objectivity of the awards. Costs are covered by main sponsors and sponsorship on the local level in each country.
"I would be very skeptical about any organization which charges a fee for this type of awards," Hamlin says.
Categories
Awards are presented in seven categories with the following criteria considered.
General Management -- this is awarded to companies which have demonstrated success in strategically positioning the company within the industry and transforming it into an outstanding company.
Marketing Management -- awarded for outstanding and successful innovation in the use of elements and tools of marketing, leading to customer satisfaction.
People Development and Management -- presented to companies which have shown excellence in the strategic management and development of the people in the organization, geared towards long-term productivity, professional development, and enhancement of the quality of life.
Financial Management -- for outstanding management of the company's assets, liabilities and equities in keeping with the owner's best long-term interests.
Information Technology Management -- given to companies which have displayed strategic use of technology to enhance the competitive position of the company.
Operations Management -- awarded for outstanding achievement in the quality and delivery of products and services through high productivity, technology innovation, and continuous improvement.
Development Management -- bestowed on non-profit organizations, foundations or public sector organizations which have as their main aim the improvement of the quality of life of people. Their success is measured on how effectively they create substantial and measurable positive impacts on their target beneficiaries through innovative, sustainable and effective management.
Value
Cynics with little knowledge of the Asian Management Awards may deride it as just another vanity award, a collective pat on the back for the movers and shakers in the Asian business world.
Iturralde and Hamlin refer to the gains in prestige of the awards since they began in 1990.
"When we first started, very few people knew about the awards and what they meant," Iturralde says. "Today people know their value, how they create a favorable impression with clients and competitors because companies are judged under such strict criteria."
She adds that the value of the awards is evident in the number of companies which submit entries year after year.
"Some of them have not won an award yet, but they keep on striving to improve their importance, and these awards act as a motivator."
Hamlin states that the presentation of an award sometimes reaps immediate results. He points to Alphatec Electronics Co., Ltd. of Thailand, which in 1992 received the award for People Development and Management.
"A few months later, the company made a public offering which turned out to be the most successful in history," Hamlin says.
Articles for the special pages (8,9 and 10) were written by Bruce J. Emond.
Window: Today people know their value, how they create a favorable impression with clients and competitors because companies are judged under such strict criteria...