Thai airways international: Leading beyond the horizon
'We are competing in a highly open market that encourages us to improve our performance continuously. The 50th anniversary of THAI is a historic milestone, and we are moving toward 'Mission TG 100', a corporate strategy that we hope will result in another 50 years of excellence, success and sustainability," Piyasvasti Amranand, the president of Thai Airways International Plc, said recently.
To compete aggressively and achieve the "Mission TG 100" strategic plan, more than 200 THAI executives joined forces in the airline's first strategic planning workshop in November 2009, with the board of directors brainstorming over corporate strategy planning shortly afterward.
"A lot of information is already available in the company, but we must still make better use of critical data. Mission TG 100 is the result of our team effort, from top management to the operational level and even including the labour union," said Dr Piyasvasti.
"The strategic directions are formed by all concerned, not just taken from me."
In the mind of the strategist: During THAI's international corporate conference last October, Dr Piyasvasti outlined his six main strategies for transforming the airline: continuation of leadership in Thailand, enhancing the passenger experience, a comprehensive refleeting programme, becoming more competitive and dynamic, financial strength and flexibility, and corporate social responsibility.
"To be effective in this business, we must benchmark ourselves with key players. For the upper market, refleeting is a must. Our fleet has an average age of 11 years compared with six or seven years for Singapore Airlines and Cathay Pacific. Besides, there are too many types of airplanes and engines that are extremely difficult to maintain and not cost-effective. We intend to reduce the average service period to 8.4 years by 2017," he said.
For the rock-bottom market, low-cost travellers are clearly the fastest-growing group, but THAI has not yet accessed this massive cash generator.
"Our Nok Air subsidiary is not a regional ultra-low-cost airline, but rather a budget carrier serving only select destinations within Thailand. Therefore, launching Thai Tiger Airways is a critical step in continuing our leadership in the domestic market while trying to establish a solid regional base," said Dr Piyasvasti.
Value is in the eye of the beholder: "Before my time, THAI 's corporate culture was dubbed the 'THAI Spirit' - Teamwork, Happiness, Awakening and Inspiration. However, these terms refer more to intrinsic value. Since our values should meet passenger expectations, we've incorporated new core values representing who we are and what we have to be," said Dr Piyasvasti.
He said these values can also be remembered easily as they too start with THAI - Trust is important as the airline is in a Hospitality business, while Accountability and Integrity demonstrate the mindset of not only employees, but also those at the top, the management and the board of directors.
"As a matter of fact, these new core values came from one of our employees who sent them to me in an email. There are many good and capable people in this company.
"In the past, some of them might not have had a chance to speak their minds. Others might not have wanted to show their capabilities due to disappointment with or a loss of faith in management. But now there are much more information exchanges and many communication channels with the president. Anyone in THAI can simply use these channels to contact me directly," said Dr Piyasvasti.
Leadership at the top: Dr Piyasvasti did not elaborate much on his management and leadership style, but it would be correct to say "consultative" may be his dominant style of leadership. He applies listening techniques in learning others' opinions. Bold comments with straight talk will be followed up, all for the best interests of the organisation he leads. He has also tried in every way he can to engage his management team, employees and board members.
"Our board size may be a little too big, but I can say our current board is one of the best THAI has ever had. As a listed company, it is important for the role of management and the board to be clearly defined. Accountability is the key word in this respect," concluded Dr Piyasvasti.
Credit: Bangkok Post (www.bangkokpost.com)
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