LEADERSHIP LESSONS

Thailand’s top directors share their thoughts on the challenges in managing their businesses during he Covid-19 pandemic

The global pandemic is shaping up to be the greatest challenge facing the world in recent generations, impacting society in ways never before imagined. Companies large and small must grapple with how to survive in the so-called “new normal”, involving everything from employee and customer safety, changes in distribution logistics and supply and demand shocks rippling across all markets and sectors. The Bangkok Post and the Thai Institute of Directors Association (Thai IOD) asked several dozens of Thailand’s leading corporate directors for their thoughts on the Covid-19 crisis and how company boards must lead in these uncertain times.

In times of crisis we have to pay attention to and care for one another so that we can go on in life. It’s time for everyone to show their generosity and make sacrifices. For example, the board and management may have to sacrifice some of their income to show their responsibility as they try to help rank-and-file staff to live on. Once the crisis is over, they will come back as a team to contribute to the company’s further growth. At the end of the day, compassion and loving kindness are noble values that human beings should have for one another.

SANSERN WONGCHA-UM CHAIRMAN, SOMBOON ADVANCE TECHNOLOGY

SOMPRASONG BOONYACHAI VICE CHAIRMAN, AIS Situational awareness is crucial during the Covid-19 outbreak. It’s paramount for the board to let executives have a clear view of the situation and to advise them on how to handle the situation properly. This must be done with solidarity from all departments to steer the organisation through the crisis.

NUALPHAN LAMSAM FORMER DIRECTOR, IOD; PRESIDENT AND CEO, MUANG THAI INSURANCE PUBLIC COMPANY LIMITED The Covid-19 is a shocking event by all means but it does not spell the end of the world. The board must underline the need for executives to prove that it’s no-one but the staff who will help the organisation survive and to lend them support. It’s because the organisation belongs to us all. It’s our home. We share both happiness and hardship. We are all equals today. If the organisation does not survive, neither can we.

The Covid-19 outbreak is the gravest crisis we have experienced since World War II. It is a lesson for the board and management to harness new experience. Find ways to tackle the problem that produce the least effect. They have to spend time together to deliberate their vision, see if their plan still makes sense and adapt themselves while holding social responsibility at heart. Never give up. Fight on and bear with today’s loss. We shall march ahead and overcome the woes. Always dream on and remember that tomorrow will be a better day.

VIKROM KROMADIT CHAIRMAN, AMATA CORPORATION P CL

PRASERT BUNSUMPUN CHAIRMAN, YUANTA SECURITIES (THAILAND) COMPANY LIMITED Every company around the world runs into similar problems under the Covid-19 crisis. The difference is only in the degree of severity. To ensure their business continuation, the board, management and staff must turn to one another and work closely to come up with strategies and action plans complete with key performance indicators according to the scenario at present and in the future. The goal is to help the company survive in the short term with an ability to return to business and remain competitive in the middle and long term. This must be done under an assumption that consumer behaviour and business models could be transformed after the virus crisis.

The Covid-19 crisis may be more severe and long-lasting than many people expected. Companies are facing both negative factors and drastic changes in operations as never before. Under the circumstance, the board and mangement must review, reassess and redo all business plans. They have to consider the impact and take into account new ways of doing business to make sure their organisation can weather the storm and arrive at the other shore safely.

ARTHID NANTHAWITHAYA DIRECTOR AND CEO, SCB

PLIU MANGKORNKANOK FORMER DIRECTOR, IOD; CHAIRMAN, TISCO FINANCIAL GROUP The Covid-19 crisis is a wake-up call for humans to see how fragile our business and social structure is. The board and management should take the crisis as an opportunity to review the organisation’s potential and find where it may fall short. The important thing is no-one can survive this alone. We have to brave through it together, with understanding and compassion for all sides be they customers, partners, staff, shareholders and the society in general.

It’s unpredictable how the Covid-19 crisis will end. In time like this, the board must be a pillar of support, providing necessary resources and boosting the morale of executives so that they can lead the organisation and employees through the crisis in time. Help them uphold the enterprise values that the organisation has built to serve as a foundation that stakeholders, the society and the nation can rely on.

CHARAMPORN JOTIKASTHIRA DIRECTOR, BANGKOK BANK

In a crisis like this, the board must help the management evaluate the company’s financial status and streamline the operation. Things must get done fast through a concise process. Board and management must be stringent in caring for staff and their families and make sure that they stay safe. At the same time, they can be supportive and lenient towards suppliers and clients. This will allow everyone to go forward and pursue new opportunities in future.

ISARA VONGKULSOLKIT CHAIRMAN, MITR PHOL SUGAR

The Covid-19 outbreak has rapidly reshaped people’s behaviour. They can buy food and other products online and have them delivered to their home. They can work or hold a conference anywhere. They don’t have to meet physically. After this, people may socialise only as necessary. To foresee these trends is a challenge that the board has to take up so that they can broaden the management’s view in managing the organisation’s short and long term risk. It’s imperative to find an opportunity amid the crisis and adjust the business strategy quickly.

PAITOON TAVEEBHOL CHAIRMAN, ZEN CORPORATION GROUP PUBLIC COMPANY LIMITED

A crisis usually affects a massive number of people. If we try to tackle it based on our own interest, ignoring the concern of others, the crisis could deepen. For example, if we file a lawsuit against or seize the assets of business partners who fail to pay their debt, it could cause them a cash flow problem. Worse, they may be forced to close down. In the face of a crisis, the board and executive must try to think about other stakeholders. This will prevent them causing problems to others and the society in general while tackling their own problem.

BOONKIAT CHOKWATANA PRESIDENT, ICC INTERNATIONAL

An outbreak destroys lives and businesses far and wide. It is a lesson for humanity, compelling us to realise that everything is connected and interdependent. From now on, business management, whether concerning humans, hygiene, social relations or the environment will experience a paradigm shift. Running a business, large or small, will involve many other things apart from ‘‘making money’’. This is because a business cannot survive in a crumbling society.

KIRK-KRAI JIRAPAET HONORARY CHAIRMAN, IOD

DR TARISA WATTANAGASE INDEPENDENT DIRECTOR AND CHAIRMAN OF THE AUDIT COMMITTEE, SCG The Covid-19 outbreak has underlined the need to instill social responsibility and empathy towards other people in society among an organisation’s staff. For these values will not only help us overcome the crisis but will serve as a foundation for the organisation and society to move forward into the future.

KANNIKAR CHALITAPORN CHAIRMAN, INDEX LIVING MALL Thailand and the whole world will have to live with this crisis for a long time. The board and management must ensure they can work together seamlessly. The business environment and opportunity will change drastically. How can we catch up with the new world order? The short-term priority is to see if an operation meets its target. It’s not enough to give orders. Talking alone won’t bring results. It’s better to talk less and do more.

"The Covid-19 outbreak has wreaked havoc on every corner of the world within a short time. The board should join force with the management to be proactive, to analyse the situation and assess its possible impacts on stakeholders and come up with appropriate responses. A timely and collaborative decision-making will sustain the organisation and society.

KHUNYING JADA WATTANASIRITHAM HONORARY CHAIRMAN, IOD; CHAIRMAN OF THE AUDIT COMMITTEE AND CHAIRMAN OF THE COMPENSATION COMMITTEE, MINOR INTERNATIONAL

Human resources are the most important asset for an organisation. In the face of the crisis, the board and management should realise that while cost-cutting is necessary, a lay-off should be the last resort. Supporting staff with welfare benefits or cost-of-living stipends instead of laying off altogether is one way to relieve society of further problems. It will eventually help the organisation to revive more quickly and strongly when the time comes.

KALIN SARASIN CHAIRMAN, THE THAI CHAMBER OF COMMERCE AND BOARD OF TRADE OF THAILAND; INDEPENDENT DIRECTOR, KASIKORNBANK

The war with coronavirus is fast-forwarding organisations to the future in an eye blink. The board and management have to switch to an emergency mode. They must stay in solidarity. Look far. Think well. Develop their potential even when the future remains obscure. They must stay tuned to signs of change. They must be observant of stakeholders. Search for new possibilities. Most importantly, they must consistently review their organisation’s identity in the new world order with its sustainability being their goal. This is because if the society cannot survive, neither can the organisation.

KULVECH JANVATANAVIT CEO, IOD