GUNG HO! CORPORATE CULTURE The year 2002 was an important year for Nenaco. The company posted a record of P102 M in profit, a dramatic and positive turnaround from the previous five years of consecutive losses. Like the inspirational story of Peggy Sinclair and Andy Longlaw from which the Gung Ho! approach was derived, Nenaco is another Walton's Works in the making. Nenaco employees are set to re-invent their company and turn in record profits and record productivity. HOW IT BEGAN. Operations were inefficient. Morale was low. Nenaco needed to institute ground-breaking ideas to boost employee enthusiasm, productivity and performance and usher in astonishing results for the organization. The answer was Gung Ho! Gung Ho! began in September 2001 as a revolutionary management approach that espouses organizational change through values advocacy. SPIRIT OF THE SQUIRREL. This concept is best understood by watching a bunch of squirrels work: All of them are working toward a shared goal. Worthwhile work related to work, within the boundaries of a value set, which helps move the organization toward its mission, vision and goals. It is work that enhances the worker's sense of contribution to the whole, which in turn engenders pride and self-respect. Nenaco began with this first principle of Gung Ho! based on the following "squirrel" aspects: Knowing that we make the world a better place. Nenaco launched the 'WE MAKE A DIFFERENCE," campaign. Based on the story of a boy throwing starfishes back to the ocean, the campaign highlights the innate goodness of each individual and the ability of each person to make a difference. Values guiding all plans, decisions and actions. Nenaco crafted the core values of the organization excellence, integrity, rediscovering the customer, teamwork and innovation. A vision and mission were established. A full-time VP for Corporate Protocol was appointed to ensure that all projects in the company are done with the corporate values in mind. The vision, mission and corporate values are recited before and after meetings. THE WAY OF THE BEAVER This next principle focuses on being in control of achieving the goal and the importance of trust in teams. Like the way beavers build a dam, Nenaco employees are encouraged to work together to accomplish their goals. Several projects borne from this principle were implemented: Nenaco came up with a clearly marked territory (the vision). The company aims to be "the dominant, undisputed leader in the domestic shipping industry by providing excellent services to passengers and cargo shippers throughout the Philippines in a safe, reliable, comfortable and efficient manner." A formal Gung Ho! Organizational Structure was set up. The Values Council was created to serve as policy makers who support and ensure that Gung Ho! is in the right direction. Departments were grouped into empires that are led by a godparent. Employees from across all levels are encouraged to think of ways to improve the company, thus, the term - initiatives. Each initiative was made based on applicable corporate values. No initiative is considered too petty or simple. In 2002, a total of 2,068 initiatives were implemented. Among these initiatives, the following were considered to be the most significant: Fix the outports. In an effort to make Nenaco a customer friendly, as well as a more profitable company, employees are devised 48 ways to physically validate cash advances. TLC (Tender Loving Care). A project aimed to foster the team spirit of Nenaco employees, vessels due for re-painting or pest control were no longer contracted through suppliers. Instead, employees with the inclusion of leaders participated in this project to save on costs. Zero Overtime. To cut on overhead costs, Nenaco successfully implemented the zero overtime project 100%. Implementation of Gung Ho! Time. Whether it be in meetings or in the departure of vessels, Nenaco has successfully implemented Gung Ho! time, or five minutes before the time scheduled. Corollary to this project is a Zero Turtle Program where employees are encouraged to be at work early. Search for Best Practices. A search for the Nenaco Best Buttercup Dance was launched to encouraged porters to give their best in performing the Nenaco signature dance when welcoming and sending off passengers. THE GIFT OF THE GOOSE This third concept may be considered by some as tried and true by others in terms of bringing out desired results. The idea seems simple -cheering each other on -but in the spirit of Gung Ho!, this action is so important that it has own meaning and asset of rules and regulations. The formula for achieving this third step is short and sweet, yet Einsteinian in its power and wisdom. Nenaco has installed several systems that created an environment that cheers them on: A Values Team Leader for Recognition was assigned to formally thank people for a job well done. Each month, employees with significant contributions to the bottomline are recognized in company assemblies. Each day, employees are encouraged to reward others in a multitude of ways. Some people just say "honk, honk!" to mimic the geese. Others are recognized through bulletin board or newsletter announcements. In 2003, Nenaco expects to go into growth phase with target "QUALITY PROFIT" or more cost efficient and profitable operations.