Leadership in the digital era is no longer hierarchical; that is, a top-down approach is no longer relevant. Rather, it is about encouraging people to participate, involve and contribute to assigned tasks and empowering people to lead and work with autonomy and freedom. A digital revolution is fast and as such leadership will be even more important to steer the organization forward, given technological disruption and ambiguity. Leaders must bring together various positive actions and strategies, communicate core values and shared vision with a clear purpose and direction, and cultivate ownership and accountability among members of an organization. Also, leadership must be vigilant and generate long-term sustainable benefits for all stakeholders. This year, the Leadership Excellence Award goes to PTT Public Company Limited (PTT).
Vision and Mission
PTT, in its capacity as the national energy company, sets a vision to become Thai Premier Multinational Energy Company with a mission to conduct integrated energy and petrochemical business that responds to all stakeholders in a balanced manner. The company aspires to be the “Pride and Treasure of Thailand” through sustainable management strategy of People (care of communities and societies), Planet (conservation of natural resources and environment), and Prosperity (national energy security while maintaining sustainable growth).
PTT defines “SPIRIT+D” as the core corporate value which translates into a corporate culture where everyone works together with their best efforts and high moral standards. The “SPIRIT+D” stands for Synergy, Performance excellence, Innovation, Responsibility for society, Integrity and ethics, Trust and respect, and Digitalization.
Innovation and Technological Advancement
PTT establishes the Innovation Park to become the research and technology development center to conduct in-house research and develop new innovative products to serve the consumers. The company teams up technology and engineering business units to drive new business development under the helm of Chief Technology and Engineering Officer (CTO). Young generation of talents are formed as the Express Solution (ExpresSo) team to seek for startup opportunities and invest in venture capital. PTT also identifies and advances into new business areas such as electricity value chain, life-science, smart city, advanced materials, and bio-economy and utilization of new technology (e.g., IoTs, robotics and AI). In all, PTT is committed to promoting a culture of innovation for the workforce. One apparent example is an annual innovation competition is organized to inspire all employees to innovate and generate new ideas for the businesses.
Financial Management and Strategy
PTT ensures its financial strength to support business growth and balance stakeholders’ expectation. In 2019, the company’s financial management strategies are to (1) support growth with financial competitiveness and cost optimization in obtaining investment funds, (2) promote investment and business expansion by creating a service integration for PTT group and subsidiaries through capital and portfolio management, and (3) harness the power of technology (e.g., blockchain, big data analytics and AI) to enhance growth throughout the digital transformation. The company conducts its businesses with transparency, integrity and accountability. The Investor Relations department is actively engaged with investors and shareholders to disseminate corporate information through various channels such as roadshows, conferences and analyst meetings.
PTT uses top-down and bottom-up strategic planning processes called Strategic Thinking Sessions (STS) where both senior executives and employees join to analyze trends and challenges, identify strengths and opportunities, exchange views, and together develop strategic directions. The strategies are then approved by the Board and incorporated into the 5-years business plans, action plans, risk management plans, and corresponding KPIs. PTT applies the 3D strategies – Do now, Decide now and Design now – to ensure strong performance to achieve the pride-and-treasure aspiration. The 3D stands for (1) Do now for competitiveness enhancement, (2) Decide now for sustainability by expanding current core business and leveraging strengths to create various products growth, and (3) Design now for future by seeking new business opportunities and invest in new S-Curve businesses.
Organizational and Talent Development
In the midst of disruptive technology, energy revolution and depleted domestic resources, PTT builds a strong organization to create resilience by investing in people, improving operational processes, and putting in place the best management system. For people system, the company allocates its workforce to align with new strategic directions and prepares talents to support new focused growth areas. For operating system, an organization management is designed o ensure breakthrough performance outcomes. Management manuals are developed as the guidelines for knowledge sharing. For management system, PTT implements advanced organizational management analytics and cognitive knowledge management using big data and advanced data analytics to enhance efficient management.
With the aim to effectively manage stakeholders’ expectation, PTT evaluates the impact of all plans and projects on every stakeholder (i.e., country, communities and society, shareholders, customers, business partners, and employees). Effective stakeholder management includes preparing a plan to reduce negative impact and protect stakeholders’ benefits and assessing the needs, expectation, and concerns of all stakeholder groups by collecting and analyzing the voice of the stakeholders through various channels. Ultimately, the board of directors who supervise the stakeholder management agenda will integrate the SD practices into the company’s business strategies. For SD reporting, PTT applies the GRI Sustainability Report standard and Integrated Reporting Framework of the IIRC as well as the AA1000 SES global sustainability standard.
Other nominated companies also aim to grow by putting in place a suitable business model for each strategic market, creating shared value to all stakeholders, and strengthening financial stability. In common, the nominated companies associate innovation and technology with environmental and social sustainability. To name a few, they leverage the utilization of automated/robotic system and artificial intelligence as well as R&D investment to improve production and operational efficiency and on customer experience by providing integrated solutions.