Korean Dramas have recently taken the spotlight as well-known Filipino Directors have been vocal in their criticism or defense of KDramas’ entertainment and artistic value, or alleged lack thereof. I am not an expert of that field so I leave the debate to them. I am the managing partner of a law firm that specializes in providing business support solutions, and labor relations management advise to our clients, among others field of practice in law.
On 12 March 2020, the President of the Philippines declared a community quarantine over Metro Manila imposing several restrictions, which include those on domestic travel to and from Metro Manila, mass gatherings, and temporary closure of most businesses. Later, on 16 March 2020, the President expanded and enhanced the community quarantine measure to cover the whole of Luzon. As a consequence of the protectiveand remedial measures taken by the Government to address the health crisis, several businesses were severely affected. The uncertainty of when the crisis will end, and if things will ever go back to normal pushed most business owners – especially the medium and small enterprises – to go on survival mode.
In between my ponderings on the solutions and alternatives I can give our clients to address the problems caused by the reaction to the pandemic, I was lured by my wife to use my free time to watch the show of her potential husband-replacement for me, Park Seo-Joon, which is called “Itaewon Class”. Itaewon Class tells the story of a socially inept young boy who turns his life around from being a high school drop-out, orphan, ex-convict into an ambitious entrepreneur. While the show was carved out of a familiar theme and conflict, such familiar background held firmly solid principles that generally help shape most of the advice I had to give to my clients and friends during this unprecedent time, and here I share some of them:
(Warning: It is impossible to discuss my point without going into some spoilers. So if you intend to watch the show, you can stop here and go back later.)
Helping other players in your industry during difficult times and being a community versus being competition is ultimately better for everyone.
Park Sae-ro-yi had always dreamed of opening his own restaurant. Which he called DanBam. But when he finally did, a frustrating incident had forced him to relocate DanBam into a side street that practically had no foot traffic. A very bad location where all other ventures only ended up failing. In fact, all of his neighbors were on the verge of closing. However, instead of giving up, through the initiative of Park Sae-ro-yi, the business owners helped each other revitalize and improve the neighborhood which eventually brought success and good business for the whole street.
I have seen this sense of community start to form in several of the industries threatened by this current crisis: specifically with the restaurant industry and the events industry. Former competitors are now sharing advise and trade secrets on how they can cooperate to ensure the survival of their industry. We have geared several of our advice towards forming these alliances to increase the chances of the survival of our clients’ business and the corresponding industry.
Business is about people.
One of the glaring juxtaposition in the show is the contradicting philosophy of Chairman Jang and Park Sae-ro-yi in running their respective businesses. Chairman Jang will always favor profits and the survival of the company over its people. Chairman Jang has shown that anybody is disposable, regardless of relationship. On the contrary, Park Sae-ro-yi, as he learned from his father, has repeatedly emphasized and acted on the principle that “business is about people.”
The concept of valuing people to make your business successful is not a novel concept. The owner of Virgin Airlines Richard Branson’s books attributed his success to this philosophy. Starbucks founder Howard Schultz also grew the franchise with the belief that their people are his partners.
One of the unintended effect of the protective and remedial measures taken by the Government was the sudden loss of income of the “isang kahig, isang tuka” / “one scratch, one peck” workers who rely on the weekly or bi-weekly cash flow to tide over the essential needs of their families. The rule is “no work, no pay.” It would however also be unfair for the government or the workers to expect the business owners to shoulder the burden of paying for wages for days that is unserved at a time their business is essentially forced by circumstances to be closed. While it seems an easy solution, the same will only serve as a short-term benefit for the employee at a risk of a more permanent damage when they all lose their jobs as the business can be forced to close by this unjust solution. The truth of the matter is not all businesses have the depth of the pockets of the tycoons and oligarchs.
Owners of businesses now are called upon to make the tough balance between the survival of the business, and the welfare of their people. We, as lawyers, are relied upon to not only give legal advice at this time, but we are trusted to help our clients make the correct and difficult decisions. Difficult decisions are however not made by knowing the law, they can be decisively made if your heart is held firmly by solid principles. While we give various options to clients at this very difficult time, we made it our responsibility to remind them that the decision they make for the welfare of their people will ultimately benefit their business.
A clear goal supported by a good plan will carry you through the bad times.
What has been impressive throughout the show is how Park Sae-ro-yi was never discouraged despite things not happening his way. Just when you thought he has been beaten, he goes back up, pulls up Plan B/ Plan C/ Plan D, and hits harder. This was all possible because he had set his eyes from the start to finish his “15 year plan”. He had set up everything while he was in jail, and followed through each phase of the plan when the right time came. How can you not root for a guy like that?
During this time, we have held our clients’ hands in walking them through contingencies and plans as they anticipate doing business under a new normal. The common goal is to survive 2020, get past it, and then make profits later.
Trusting the advice of experts or good advisers are mandatory for success.
Park Sae-ro-yi was humble enough to get advice wherever he could. His father was his rock and foundation; whenever he was lost his father’s memory was one place he would always go back to. While in prison, he studied the biography of his sworn enemy taking advise from the story of his life. Park Sae-ro-yi trusted the financial advice of his friend Lee Ho-jin who grew his father’s insurance money to what eventually became his enterprise’s seed money and leverage. Park Sae-ro-yi relied on the marketing expertise of Jo Yi-seo to develop his brand, as well as when a difficult decision was to be made with respect to a possible acquisition and merger.
Park Sae-ro-yi’s success was built upon the advice of trusted people. At a time like this, we advise our clients not to make ego get in the way but instead, to trust the experts, trust data, and trust advise of people who gave gone through a similar crisis in the past. Of course it also helps to have a trusted lawyer by your side.
