young leaders forum - nizam salleh

FOR DISSEMINATION Young Leaders Forum, November 24th, 2008 – Kuala Lumpur Convention Centre Winning Hearts & Minds – AHMAD NIZAM SALLEH

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WINNING HEARTS & MINDS“Follow them and people will follow you”

AHMAD NIZAM SALLEHVICE PRESIDENT, CORPORATE SERVICES

PETRONAS YOUNG LEADERS FORUM 2008November 24, 2008

Kuala Lumpur Convention Centre

Ladies and Gentlemen:

Assalamualaikum and good morning to all.

It gives me great pleasure to stand here before you – a very young and vibrant crowd indeed.

I hope I am able to provide you some insights about "Winning the Hearts and Minds" and

share some of my candid moments and some of my own humble experiences, accumulated

over the past 27 years of my time in PETRONAS. Gosh. I think some of you are as

old............ I mean, as my career age in PETRONAS.

I also look forward to interacting with you over the course of this program.


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PROFITABILITY:5th

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Having a vision and creating a shared purpose

1970s 1980s 1990s 2000s

• Incorporation of PETRONAS on 17th August 1974

• Oil exploration & development

• First PSC signed in 1976

• Expansion into over 30 countries

• Production of oil and gas from international ventures

• Revenue from overseas operations has steadily increased

PSC Manager PSC & Project Manager/Operator -Integration

Global Player

“Formative” “Developmental” “Globalisation” “New World”

Internally focusedExternally focused

Image courtesy of MLNG: Signing Petroleum Agreements, 1968

• Expansion of other domestic downstream projects

• Refining

• Petrochemicals

• Logistics & Maritime

• International Ventures

• Gas exploration & development

• Beginning of downstream gas projects

2008

RETURN ON ASSETS:

2nd

RETURN ON REVENUE:

2nd

Overall Industry Ranking:

95th

Fortune 500


1. I am sure by now all of you are by now very familiar with this image. PETRONAS has

progressed by leaps and bounds. How did we get to this stage in the first place?

2. What was the vision of our Leaders at the time and how did the followers respond to that

vision? What were the trials and tribulations that our past and present leaders had to endure

to arrive at what we are today?

3. So many great and responsible people were involved and so many roles and

responsibilities undertaken. A good number became natural leaders, some were nurtured and

developed; some became good Coaches and some good Mentors. Whilst, at the same time

the majority, upon clarity of vision and mission, functioned well in teams and proudly became

Good Followers, Mentees and Coachees.

4. But then, throughout the evolution and transformation processes, the roles interchanged in

harmony in various dynamic situations, between Leaders and Followers.


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5. It is against those backgrounds that history was created and milestones achieved. That's

how the success story of PETRONAS take over of the Baram Delta operations in Offshore

Sarawak was created. The story continued with the subsequent leadership role, management

and operations of the LNG Business in Bintulu, Sarawak. These stories, amid all kinds of

difficulties and challenges, were so profounding. It touched so many hearts, it created new

hope and aspirations, it changed mindsets and shifted paradigms. It sets the momentum of

change. Today, I am proud to share that almost all facilities, Upstream and Downstream

where PETRONAS holds substantial equity, are managed and operated by PETRONAS

employees ( irrespective of nationalities).

6. Looking back, I personally believe the vision for our organisation – then and now is strong

and intact. The foundation of our organization was laid by those before us. A legacy was

created and must be passed on from generations to generations. We are now a Global

company, listed in the Fortune 500 at par with other multinationals, but happened to have its

parent company in Malaysia.

7. We must continue to build on our successes. Challenges cannot be used as an excuse,

nor a deterrent for us to carry out our duties and obligations based on the trust bestowed

upon us. It requires us to be resilient, adaptable and agile – we must continuously reassess

our strategies and anticipate changes and in times make adjustments in order to triumph. It is

definitely not something for the faint-hearted – BUT I am sure all of you have the will to

persevere and prevail!


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Vision – Creating Meaning

RESPONSIVE to the organisation’s needsProvides MEANING to people’s (work) livesIs MEMORABLE and easily understoodLeaders TOUCH A HEART before they ask for a hand

Image courtesy of MLNG: Signing Petroleum Agreements, 1968

Despi t e possessi ng di vi ne i nsi ght , “ The Mumbl er s” r ar el y pul l ed a

cr owd.


1. The achievements I have presented earlier would not have been possible without clear

vision and translation of such vision into strategies and its implementation.

2. Vision must be memorable and easily understood. That's the reason our present Vision: is

'Leading Oil and Gas Multinational of Choice'. Mission: We are a Business Entity. Petroleum

is our Core Business. Primary Responsibility is to develop and add value to this natural

resource. Objective is to contribute to the well-being of people and nation.

3. Vision alone will have no impact if it is not related to the organization's needs. We must

create and give meaning to what people do, the roles they played and what their

contributions mean PETRONAS role as a Business Entity and our role in Nation Building.

4. Meaning must touch the heart of people. Leaders touch a heart before they ask for their

hand.


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5. Clarity of vision, mission and our values are key to successful implementation of

strategies/action plans.

Clarity of purpose and mission

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What am I supposed to

do?

Can I really deliver this?

How do I start the discussion?

What approach

should I take?

Is my understanding of the mission clear & consistent with

others?

En route to New York on an assignment


1. As Leaders we must create and give meaning. As Followers we must seek not only

meaning but clarity of purpose.

In my early years, when faced with new tasks and assignments, I always felt the need to

seek out further information and understanding on the task at-hand. Granted that my

Leader’s then would share the purpose and objectives of such assignments, but I wanted

reassurance that my tactical decisions were indeed in-line with the overall aspirations. 2. I would like to term this as an example of Good Followership behaviours. Good

followership can be translated into commitment to excellence, greater courage and motivation

and alignment to achieve goals.

A good and strong follower will create a foundation to being an exemplary Leader. So,


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Ladies and Gentlemen, it’s ok to voice your concerns and step up to seek clarity, while at the

same time having your Leader reach out to you. Finding meaning is a two-way process; a responsibility for both Leaders and Followers alike.

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Inspiration – Walk the Talk

TRUST is the foundation of leadershipENGAGE and UNITE teamsCOURAGE – “calling a spade-a-spade”CELEBRATE and OWN your team’s performance

RALLYING FOR CHANGE – the need to go back to basics Ladies and Gentlemen:

1. If you recall my earlier slide ["Having A Vision and Creating Shared Purpose"] we have

witnessed that PETRONAS has achieved another record year in terms of performance.

Given the dynamic and at times, volatile environment coupled with more challenges coming

our way, we do not have many options but to focus on sustainability or at times survival. In

the process we may have to change the way we do things either planned or forced by

circumstances. When change is indeed required, it is also up to the leaders to rally the support of the people around us – be it subordinates, peers, partners, and the likes.

Without every person’s commitment, achieving the targets and aspirations will be an uphill

task.


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2. From my personal and humble experience, I believe earning the confidence and trust of

others requires going back to basics – we ourselves need to have a high level of integrity,

fairness and demonstration of ethical conduct. Leaders need to be able to provide the

motivation and provide a real sense of purpose, and clarity in direction.

3. From my own personal experience: i) Being open, honest and transparent: It pays to be open - when a leader opens up, and is brave to share what he believes in and

demonstrates his for convictions, others will be more willing to share what they think and feel

too. In essence, when the pressure is turned on, great leaders will be at their best. Whatever

is inside them will surface as actions and behaviors.

ii) Engaging and uniting a team: Leaders need to be able to engage and unite their constituents – everyone has to be able to

dance to the same tune.

iii) Appoint/identify a “change agent”. What needs to be done is to sometimes single them

out; and have an interaction that is personalised – take them out for coffee and sincerely try

to understand their fears and motivations, and also yours.

iv) Have courage and be brave when dealing with performance shortfall Leaders need to be brave when making decisions on performance – to “call a spade-a-spade” and be able to challenge unethical decisions and actions when the situation warrants

for it. We need to be able to be exemplary in everything we do and only by doing so can we

encourage people to behave likewise.

To me, “walking the talk” simply means you are highly reliable and dependable in delivering

on your promises and commitments. Promise what you can, and deliver what you promise. This approach would lend to your credibility as a Leader. Do not make unrealistic

promises, and when things fall short than expected, be honest about things – don’t go

beating around the bush and ignite the culture of finger pointing. People can sense your


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sincerity, and will appreciate you for that.

4) “Celebrate” and “Own” your team’s performance: Sometimes we always get caught up and purely focusing on how to manage

underperformance. But as Leader’s, we need to understand that acknowledging and

celebrating successes is a powerful tool for the Leader, and satisfying to the staff. We need

to understand that such acknowledgement has the potential to repeat and reinforce key

positive behaviours that would have led to the success in the first place.

And as a subordinate, there is nothing more gratifying than seeing that the Leader /Boss is

proud of the team’s deliverables and “owns” the performance of the team. This will help

foster trust, cohesiveness and greater team dynamics.

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Inspiration – Humility

Do a SELF-ASSESSMENT ENRICH self and othersOnly secure leaders EMPOWER others A Leader’s legacy is measured by SUCCESSION


1) Self-assessment Sometimes, when you enter into a new position, what first needs to be done is to just look,


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listen and observe the surroundings – ascertain the dynamics and motivations of your new

team. But at the same time, you need to do a self-assessment on your own capabilities.

Do not be scared to admit that you do not know. What is important is to know what you do not know.

You may suddenly doubt your own capabilities and confidence. Apprehension is always a

normal thing in new situations, but you need to take comfort that when the Management has

already identified and selected you as the best person for the job, why then are you having a

confidence crisis in yourself – your own skills and abilities?

“The best executive is the one who has sense enough to pick good men to do what he wants

done, and self restraint enough to keep from meddling with them while they do it.” –

Theodore Roosevelt

2) Enrich Self and Others I am a firm believer of the benefits of being well-prepared and well-informed about the

situation at-hand. In addition, it also pays to spend time enriching ourselves with knowledge of past events, history, or culture as it normally forms the basis to progress. Today is achieved from building blocks of yesterday and tomorrow starts today!!! While we develop new talents, it would be most rewarding to expose them to the real world of business – how strategies are designed, how deals are set, how customers are won, what

is the real meaning of insider status?

3) Empower Others People’s capacity to achieve is determined by their leader’s ability to empower. No

matter how good you are, you cannot go at it alone. You need to have trust and faith that

your staff will carry out what needs to be done and deliver the results remarkably well. The

key is to have a high belief in people. And this, for any human being is some times the

hardest hurdle to overcome.


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At the same time you need to provide assurances from time-to-time that you as Leaders will

not let your people sink, without first extending a lifeline. Good Leaders do that, and not just

watch by the sidelines.

4) Leaders developing Leaders – Succession Roberto Goizueta, former chairman and chief executive of the Coca-Cola Company once

said, “Leadership is one of the things that you cannot delegate. You can either exercise it, or

you abdicate it. But there is also another choice: You pass it on to your successor.”

And a legacy is created and reflected when “a person put his organisation into the position to

do great things without him”. So even when you have moved on to other new areas, but if you

had made the right decisions, spread the right culture, that environment would have been

institutionalised and will long outlive your own lives.


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Momentum

MOMENTUM is a Leader’s best friendEncourage people to take INITIATIVEBuild RAPPORT

Behaviors

Mindsets

Values

Assumptions

Beliefs


Rome wasn’t built in a day. You need to have patience to wait for the results to show. After

taking some time to create the vision for your organisation, you need to put the building

blocks in place – this requires preparation and motivation.

Leader’s need to be able to effectively and masterfully “read” and understand the motivations of their staff. If motivation is needed – you may want to throw them a new

challenge. If they need encouragement – you may also need to consider a reward. If you

notice them getting lazy, you might want to inspire, amaze, amuse or even intimidate and

prod them.

Leader’s also need to remember that gaining momentum is one of the most fundamental

aspects of change management. And sometimes, how you build momentum is to first score some victories (and celebrate them). Once the team’s confidence level has soared, you can

expect greater results from them.


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Key Take-Aways

LEADERSHIP = Vision x Inspiration x Momentum

Images from: various sources Ladies and Gentlemen:

A Great organization like PETRONAS is definitely attributed to great leaders with great

visions.

I hope over the last few minutes, you’ve been able to digest and understand and take-away if

not all, but perhaps some of these statements:

The visionary is not a leader if he cannot also inspire.

The momentum-sustainer is not a leader if he cannot create a shared vision.

It is the leader’s ability to create a shared vision and to inspire the organisation that

sets him apart from the “manager”.


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In facing the journey ahead:

1. Be courageous

2. Be well-prepared

3. Take time to enjoy the view

Thank You and Good Luck!

ANYONE CAN STEER THE SHIP, BUT IT TAKES A LEADER TO CHART THE COURSE

Puteri Zamrud Satu, en route to Chita, Japan


Thank you for your kind attention.

I look forward to further interacting with you and I hope you have a fruitful session and career

ahead.

Thank you.

young leaders forum - nizam salleh

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