ICCP@30: Stronger than ever
FROM THE START, WE SET OUT TO BE KNOWN FOR THREE MAJOR CHARACTERISTICS: INTEGRITY, ETHICS AND QUALITY. WE CARRIED THEM ON THROUGH 30 YEARS. THEY SERVED US WELL; PEOPLE NOW GO TO US BECAUSE WE EMPHASIZE QUALITY IN OUR WORK.
In the mid ‘80s, the Philippine economy experienced considerable difficulty. But in only two years after the People Power Revolution, the economy was on its way to recovery. Economic growth slowly revived in 1986, and eventually reached 6.7 percent in 1988.
It was in this kind of environment that entrepreneur and visionary Guillermo D. Luchangco, ICCP Group of companies Chairman and CEO, found himself. Confident on a bullish Philippine economy that was reinvigorated by the influx of fresh capital from investors, he felt it was time to open up a new business. Driven by instinct, he took a calculated risk and established the Investment & Capital Corporation of the Philippines (ICCP). The magna cum laude graduate (BS Chemical Engineering) from the De La Salle University and MBA holder from Harvard Business School carefully combined strategic insight, market knowledge and a broad network of relationships in order to establish the role of ICCP in delivering superior investment banking services.
The ICCP stands as the leading boutique investment house in the country that offers a full range of investment banking services — from raising capital in the debt and equity markets to financial advisory services, including mergers and acquisitions, and in doing so, consistently adds value to its clients’ businesses with innovative advice. Originally founded as a licensed boutique investment house, over time, the firm grew into a group of companies which ventured into industrial estate development (1989), residential property development (1995), venture capital (1997) and asset management (2010).
In a special interview, The Philippine STAR sits down with Luchangco as he talks about the beginnings, milestones, and achievements ahead of the company’s 30th founding anniversary.
BIRTH OF A CONGLOMERATE
Starting from a leading Philippine investment bank with a unique character and orientation, the ICCP Group’s principal thrusts run along two parallel tracks: investment banking and property development. Recalling his initial ventures into investment banking, Chairman Luchangco recalled the establishment of ICCP. “The first company that we formed was ICCP, a duly licensed investment house in the Philippines. We started it as an independent investment house not tied to any bank. It is one of the leading independent investment houses in the country. From the start, we set out to be known for three major characteristics; integrity, ethics and quality. We carried them on through 30 years. They served us well, people now go to us because we emphasize quality in our work,” he shares.
From the ICCP spawned the ICCP group, an aggregation of companies that capitalizes on the core strength of each firm — the ICCP for investment banking; ICCP Venture Partners, Inc. (IVPI) for venture capital; Science Park of the Philippines, Inc. (SPPI) for industrial estate development; Pueblo de Oro Development Corporation (PODC) for residential and township development; and the Manila Exposition Complex, Inc., owner of the World Trade Center Metro Manila (WTCMM) for exposition facility complex management. Each arm takes pride in the ethical conduct of its diverse businesses and services and in the dedication of its officers and staff to high standards of professional competence.
The chairman explained his vision behind the expansion: “The ICCP Group consists of a number of companies that are in different fields. The vision was to expand to where the need was. But whether I envisioned it to last for 30 years, I just never thought about it. I just set it up and that was it. But whatever we do, we are filling a need, like in the lack of exhibition facilities, housing or industrial estates,” Luchangco explains.
HARNESSING THE POWER OF THE MILLENNIAL
Key to the longevity and success of the ICCP is the vibrant and active workforce, a team of tested professionals who share the same ideals and goals, thriving under a respectful, collaborative environment to deliver successful results to clients. To better harness the potential of this mostly millennial workforce, the management decided to create a mechanism called “The Millennial Committee.”
“We’ve developed and selected good executives so we have people growing with us — many of them have stayed. What may be interesting to note is that, recently, I have formed a millennial committee. Because 43 percent of our workforce consists of millennials, we established a committee so that we can better understand them. Millennials today are into work-life balance. They want to be entrepreneurs. And we have this committee in order to better understand them. What we hope to do is channel the energy of the millennials into helping our company grow by knowing what they are thinking, what they want. That is something we want to understand,” he discusses.
KEEPING GOOD PEOPLE
The ICCP’s company culture is rooted upon the belief that adhering to best practices is tantamount to holding oneself up as a paragon of integrity and ethics. Setting an example based on transparency and honesty will eventually reap rewards in the future.
“We have a rule, an open policy. No nepotism. I have five children but none of them work in the company. I wrote a policy when I started the company that states; no nepotism. Because if I can have nepotism, then everybody can have their children, whether they are qualified or not. In addition to that, we are very professional in terms of performance evaluation — once a year at a set time. We have a strict rating form and the increases in salary are based on the rating. We try to avoid people forming cliques; we discourage that so much. We treat everybody on a professional basis. We think that enables us to keep the good people, the people who will serve the client,” Luchangco reveals.
“We are also very sensitive to the needs of our clients. We are being more sensitive than the next guy, in terms of what we give to them. For example, in Cagayan de Oro, we hired a Township Relations Manager. His job is to listen to the complaints of the people. He is not part of the operations. We have a guy whose job is to listen to the people and take it up to the management. It’s not a complaints department but his job is to listen to what is being said and see what can be done,” he shares.
GIVING BACK TO HOST COMMUNITIES
Aside from maintaining a positive corporate culture, the ICCP Group is also an active stakeholder improving the lives of the host communities where it operates. For example, In Cabuyao, Laguna which hosts the 175-hectare Light