In just five years using 2017 as baseline, we achieved 5X growth—a feat driven by innovation, agility, and relentless execution. But while this was an impressive milestone, it was just the beginning. As we set our sights on another 5X growth in the next five years, we are not just focused on scaling; we are determined to redefine the boundaries of what’s possible.
However, there’s a unique challenge we must navigate: transfer pricing. This policy governs the prices we charge for goods and services exchanged between different parts of the company, and it inherently limits how much profit we can register from these internal transactions. As a low-risk business supporting internal customers, our gross margin growth is controlled by these pricing rules. But instead of seeing this as a limitation, we view it as an opportunity to leverage our lower cost of operations to help business units grow their margins. By offering competitive pricing and driving efficiencies internally, we can increase profitability across the company, while still adhering to transfer pricing constraints.
With this challenge in mind, we are evolving our strategies to continue the journey of exponential growth.
How We Achieved the First 5X Growth:
1️⃣ Revolutionized Capacity Planning
We made capacity planning a cornerstone of our growth strategy. By developing our own models, we took control of our operational capacity and no longer relied on external assumptions. This allowed us to confidently scale up, challenging the limitations placed on us and executing on high-impact initiatives that demonstrated our capabilities beyond expectations.
2️⃣ Embraced Data Automation with AIMS and Power BI
One of our most powerful transformations was in data automation. We launched the AIMS (Automated Integrated Management System), a comprehensive dashboard designed to give real-time visibility into our operations. As we advanced, we evolved AIMS by transitioning it to Power BI, enabling data accessibility from anywhere, not just within the factory. This shift allowed us to mobilize critical information for decision-makers, ensuring that they make faster, data-driven decisions in real-time—no more waiting for reports. The power of mobility combined with automation streamlined our processes and dramatically improved decision-making speed and accuracy across the board.
3️⃣ Fostered a Culture of Innovation and Employee Engagement with EECIP
Our growth wasn’t just about technology and process; it was about empowering our people. Through the Employee Engagement and Continuous Improvement Program (EECIP), we gave employees a platform to actively participate in continuous improvement and problem-solving. The name EECIP, which resonates with the Tagalog word “isip” meaning “idea,” emphasizes that every idea, big or small, can drive meaningful change. By encouraging everyone to contribute their ideas, we created a culture of ownership and engagement, where innovation came from every corner of the organization.
4️⃣ Developed Leaders Who Think Beyond Limits
Leadership played a key role in driving this transformation. We focused on developing our leaders by training them in the 7 Fundamental Principles in Operations Management, instilling a mindset of Breakthrough Thinking. This equipped them to think strategically, challenge existing norms, and lead the company through change. Our leadership development efforts ensured that we had the talent in place to steer the company toward new horizons of success.
What’s Next: The Bold Vision for the Next 5X Growth
As we look ahead to the next five years, we’re focused on four key strategies that will help us scale faster and smarter while continuing to navigate the complexities of growth.
1️⃣ Strengthening Internal Collaboration: The Power of Unified Teams
Our ability to scale relies heavily on cross-functional collaboration. By breaking down silos and creating a more unified organization, we can accelerate decision-making, improve operational efficiency, and drive innovation from all corners of the company. This seamless coordination will allow us to execute initiatives faster and with greater precision, making our teams more agile and adaptable.
2️⃣ Exploring New Products and Strategic Transfers to Scale
To fuel the next phase of growth, we’ll focus on internalizing new products and business transfers within the company. By leveraging our lower cost of operations, we can support internal business units by helping them grow their margins. These strategic product transfers allow us to offer competitive pricing while improving the profitability of our partners within the company, leading to mutually beneficial growth. This approach ensures that we can scale faster while maintaining the high level of service and quality we’ve built our reputation on.
3️⃣ Harnessing AI and Automation for Unmatched Efficiency
Artificial intelligence and advanced automation will be pivotal in our next phase of growth. With AI-powered insights, we’ll optimize resource allocation, streamline operations, and predict future needs with greater accuracy. By leveraging cutting-edge automation tools, we’ll enhance productivity, improve cost efficiency, and ensure that our business continues to scale without losing control of quality or increasing operational costs.
4️⃣ Empowering Leaders Who Drive Change
We’ll continue to invest in leadership development, ensuring that our leaders are equipped to tackle new challenges and lead the company through the complexities of rapid growth. This will include further training in strategic thinking, problem-solving, and leading teams through transformation. By developing leaders at all levels, we create an ecosystem of change-makers who can drive innovation and results in every part of the organization.
The Challenge of Transfer Pricing
While our transfer pricing policies provide a framework for managing internal transactions, they do pose a unique challenge for us as we strive for exponential growth. As a low-risk business designed to serve the internal needs of the corporation, transfer pricing caps the amount of profit we can register on transactions with other parts of the company. This restriction means that we must drive growth through efficiency, strategic product transfers, and internal business expansion, rather than relying solely on profit margins from these transactions. By leveraging our lower cost of operations, excellence in execution and employee engagement, we can support other business units in growing their margins, creating a win-win situation that helps us scale while adhering to transfer pricing guidelines.
Building a Future of Exponential Growth
In the next five years, we’re not just aiming for growth; we’re setting out to transform how we operate. With internal collaboration, data-driven decisions, technological advancements, and empowered leaders, we’re building the foundation for exponential growth. This is a journey to redefine what’s possible, and we’re just getting started.
Together, we will achieve more than growth—we will set a new standard of excellence and leadership in the industry.
Engaged 