Best CEO of 2011: the real success story behind the scenes

This award is the result of SNC Former’s continual growth for the last six years since being listed on the SET. This growth has enabled SNC to pay dividends twice a year at a relatively good rate. Also, investors meet with the company’s top executives every quarter on the SET’s Opportunity Day, when our performance is reported and investor inquiries clarified. These regular meetings were company practice before we were honoured with five stars on corporate governance for three consecutive years (2008-2010). We were also presented a Transparent Organisation Award, or NACC Integrity Award, from the NACC (Office of the National Anti-Corruption Commission) in 2011, based on our outstanding results and transparent operations. 

Our awards have been the result of the great work of all SNC staff, as I and the other executives merely set the firm’s vision and guidelines using the Balanced Scorecard and 360-degree participation. Using these tools, mid-level employees and their bosses easily access a variety of information – for example, sales, costs, and profit and loss – to improve practices and prepare marketing and production plans to get the most profitable outcome and establish a common understanding with team members. 

This managerial approach, known as Mini-MD, is a part of SNC’s organisational culture. Before the launch of the Asean Economic Community (AEC), in 2015, this Mini-MD approach will be implemented at the general staff level to gain more transparency and participation so that this company can live with less dependency on its leader. 

Our awards success reflects the appropriateness of managerial approaches like 360-degree participation. Being SET-listed has been a great opportunity for us, as we have taken onboard SET rules and principles based on international standards. It has brought about challenges, and our management has changed from family-style to a professional approach. In the past, incorrect information might have been hidden, but now we have to disclose correct information audited by experts approved by the SET. We are able to make the most of such information, especially to improve all levels of management. More importantly, we can access interest-free funds from general investors, resulting in more effective business operations at less financial cost, and freeing us from past dependence on financial institutions. Also, SNC has significantly gained credibility among trading partners, suppliers and business allies, while staff have gained more sense of ownership in the company through their participation in its management. 

In 2012, we will continue to focus on air-conditioners for domestic and automotive use, strengthening and expanding production capacity, as we have the highest expertise to pursue an optimal return rate in this industry, managing risks by distributing products to various markets and avoiding too much dependence on certain markets. Our production will be improved to depend less on humans so as to enhance quality and respond to changing labour issues. Preparation is underway for the more competitive environment after the AEC is launched in three years’ time.

As an industry leader, SNC will strengthen its organisational culture, focusing on personnel development and greater utilisation of information. With the necessary information and professional personnel available, we can achieve our business goal faster, without having to do it via trial and error as in the past. 

Other executives and I will constantly adapt our strategic policies to keep SNC Former under constant and sustainable development by learning from other SET-listed companies with high standards, from investors and from the SET.  

 

Somchai Thaisanguanvorakun is chairman of the executive committee, SNC Former.