The Journey of a Leader (speaker #5)

When she entered our class room, she smile to us sincerely.  You can feel at ease with her even you don't know her....ang bait nya and I like her. That's my impression to our guest speaker last night.....

Our guest speaker is Ms. Maria Ester "Maret" Follosco Bautista....
She took her Bachelor of Science in Business Economics at University of the Philippines and Master in Business Administration concentrating on Finance and Investment Banking at Fordham University. Currently, she is the President of CL Follosco Group of Companies. She is an active speaker and delegate in International Conferences and Seminars. She  is also the Philippine representative to the different APEC activities concerning Entrepreneurship and Management. Moreover, she hold different local lectures and seminars on Financial Management and Entrepreneurship. She is also affiliated with the Financial Executive of the Philippines, Management Association of the Philippines, Philippine Chamber of Commerce and Industry, Go Negosyo and other organizations. Also, she is married to Mr. Ponciano C. Bautista Jr.

Photo credit: Ms. Pia Manalastas

She show us the video about the CL Follosco Group of Companies and this is their journey....
In the 1960s, CL Follosco Group of Companies started implementing modernization programs in the agricultural business sector in the Philippines. The company's founder and patriarch and who is also the father of Ms. Maret,  is  Dr. Ceferino L. Follosco. He saw a business opportunity in the trading of agricultural disc and spare parts. With minimal capital, Dr. Follosco established Alpha Machinery and Engineering Corporation (also called Alpha) in 1966. When it started, the company had no office and no staff, just a P.O. box address in Manila.

Ms. Maret oversees the CL Follosco Group of Companies from the agricultural in machinery and engineering business. And over the year's, Alpha's product line expanded.

Alpha ventured into local fabrication in 1974. This paved the way for the establishment of the second company in the Group - the Follosco Manufacturing and Industrial Corporation (FMIC). In 1979, Allied Sales Corporation was created to provide support services for CLFGs manufacturing, trading and agriculture related activities.

Management and consultancy company was organized in 1982, Agro-Industrial Management and Consultancy Inc. (AIMCON) in identifying potential agribusiness projects and provide the proponents with management and technical advice.

Recognizing the opportunity in power plants and industrial plants, Acetech Construct Corp. (Acetech) was established in 1988 to construct power plants using bunker-fed engines. In 1992, the financing business, Active Alliance Finance Corporation was initially registered as a lending investor and it was later incorporated into a full-service finance company.

Cef and Ester Follosco Foundation, Inc. (CEFFI) was registered in 2001. CEFFI provides financial assistance, medical assistance, disaster and calamity assistance, and training to CLFG's employees, their dependents and relatives, and to other foundations and institutions.

As part of the Group's growth strategy, CLFG represented John Deere Tractors in 2003 that led to the establishment of the AG-MECH Systems Corporation. In 2005, the idea to maximize CLFG's assets, founded the creation of another company, the Access Storage and Logistics Systems Corporation. This is a real estate business that suggest an office space leasing and property development.

Later on, two other companies were established - Problends Food Corporation in 2007, primarily to engage in tolling operations for custom blended juices and teas in specialty ingredients for food processors, food chains and food service establishments nationwide, and Hydrotech Systems and Resources Corporation in 2008 to provide the latest technology and widest range of water and water treatment systems.

Forty three years after the establishment of its founding company, CL Follosco Group, Inc. was incorporated  as a holding company in 2009.

In 2011, the group also launched the Aqua Care Chemicals as its own brand of swimming pool and water treatment chemicals.

The group welcomed three companies in 2012. First was CLFG Capital Corp., a private direct investment firm that aims to provide access to capital to start up firms and emerging growth companies. Next one was, WeConnect Training and Development Solutions, Inc., an outsourcing company that provides human resource and employment solution to its clients in the BPO industry. Last one was One Outsource Direct Corp., a business process outsourcing company that offer contact center management, revenue-generating channels management and back office services.

Two main companies joining the group in succeeding years, CLFG Travel House Corp was established in 2013 as a company that offer travel and tour services. The following year, Active Food Innovators Corporation was registered as food ingredient company that produces spray dried powders that offer other tolling services.

I've learned  that "the further you look back the further you can see". Today they are 50 years, after the establishment that only start for 5,000 capital, they continuous to be the country head long company. The company is not a fast moving consumer group, CLFG is behind the scene that started in agriculture and most of their products are industrial. Their business are more on agriculture, water, air and land plus the 20% is their new businesses such as the IT and business processes. Having many companies they don't compete to each other. They have their own budgets, own markets, own suppliers and own customers.

To look back, Dr. Follosco started in Lanao Del Sur and studied in public school. He wants to achieve more so he went to Manila and was given a scholarship in Mechanical Engineering but he has no math subject in high school in Lanao Del Sur public school. In addition, he wanted to take Agricultural to be a farmer, that was his lifetime dream. After 6 years, he finished three (3) Engineering degrees (Mechanical, Electrical and Industrial) with highest Latin honors, Summa Cum Laude. He also passed Mechanical Board Examination and top the board in Electrical. He was also teaching while working as well as studying for his board exam and studying another degree then started a family. He really drive to agricultural engineering in his heart that's why he took his Agricultural masters where he was granted full scholarship in IOWA and finished the two year course in just straight eight (8) months. He was very hard working and he has dedication on whatever he do such as making sure that he teach his students very well and share what he knows. Then became an entrepreneur.

As mentioned by Ms. Maret, true values come out during crisis. During 1982-1986, there's no activity, people are rallying. In support of democracy and freedom, they allow their employees to join the rallies in the street. They were committed to support their employees so they create mini livelihood projects for employees to have continuous source of income. Thus, true value comes to them as well as integrity and commitment to their people, stakeholders and suppliers. In addition, they are committed to continuous learning, employees are required to go to seminars to enhance their skill and its for free. In addition, they make sure that they contribute to National Development. They also have a foundation that run by their employees itself.

Fifteen (15) years ago, after building and setting up the business, their father turned over the business to them in such as way that the group of company were group into their own clusters. Ms. Maret's brother head the Agricultural and Trading and the other brother head the Manufacturing and food and Ms. Maret in financial and general management as well as the other groups. They were trained to have specialties and they don't compete to each other. They have different background but combination of different ideas and experiences. They argue but follow the same principles and values.

After Dr. Follosco turned over the business. he focused on giving so he serve the country for six years as a Secretary in Science and Technology. After his term, he was asked by different President of the Philippines for government services but he decided to serve the country in different way.

Below is the CLFG business model for inclusive growth and they used this model for almost thirteen (13) years. It center around in helping the people.

CLFG  Business Model

It's nice to know that they are also helping a lot of different industries and community groups as well as their customers. In addition, if CEO is not in their family circle, they are open to hire.

I like the way Dr. Follosco trained their children. Now, they are training the 3rd generation by following the same values and principles. They have family constitution to guide dispute and it also stated that "no in-laws". They were also trained not to involved in the business after graduation, to have outside experience for at least two (2) years. Then apply if there's a position. If none, you cannot create a position but you can create a business. And part of the constitution is everybody is required to have masters but should be related on what they are doing.

It is inspiring to know that Dr. Follosco created a family fund such as educational fund until masters for  2 1/2 generation. In addition, they also have medical fund, burial fund and retirement fund, but no "mana".  They need to grow the business for their children until apo because 10% goes to family fund. They need to work hard so they can send them to the best school and retain the family fund until the next next next generation.

As parting advice of Ms. Maret, be an entrepreneur.

I've learned a lot from the journey of Dr. Follosco. What a great journey and thank you for sharing Ms. Maret. ^_^


Reference:
http://clfolloscogroup.com/index.php?option=com_content&task=view&id=22&Itemid=46