Sufficiency Economy Part 1
15 May 2012
A good thing about working with Broadgate Financial is you will get a chance to attend many events; for instance, networking events and seminars. Last Thursday, I had another chance to attend the 80th Anniversary of Thai Chamber of Commerce celebration event at Centara Grand Hotel. The major event on that day is the Symposium about “Sufficiency Economy from Actual Experiences of Leaders of the Private Sector“.
Sufficiency Economy is in focus these days especially when the world faced major economic crisis and people are looking forward to better economic solutions. In the world where a lot of effort is spent to stimulate the country’s growth ad accumulate more power, it seems that it might not be the best way for the world. On this event, major private company leaders in Thailand came and shared their idea about Sufficiency Economy and how they use the concept within company.
During the morning section, those leaders shared how they personally define sufficiency and the macro picture about how their companies adopt the idea. What every leader shared in common about sufficiency is, it is not humble or restrained from development. The CEO of Mithpon Ltd., Mr. Isara, said sufficiency is balanced to not doing things that exceed their capability. The key is regular investment risk analysis to maintain the company’s performance and another important thing is looking after the farmers who are his core business. The CEO of Sahapat Ltd., Mr. Boonchai, believed that the heart of sufficiency is “immunity” according to his father’s word about risk in doing business so it is important to have some protection against those risks. Risk analysis and reasonable spending with insightful understanding about sufficiency are strong methods to create immunity. The CEO of PTT Ltd., Mr. Taewin, believes in settling the right objective, which leads to the correct pathway and finally ends with good results. He trusted that the way to achieve that goal is by balancing the company both internally and externally. The internal balance is between all stakeholders, which are not only shareholders but also suppliers, distributors and the communities that are affected by the company’s operation. The external balance is between the company’s capability, business opportunity and environment. The CEO of Muangthai Insurance Ltd., Mr. Sara, also focused on risk management but with a slightly different method. He emphasized on human development and R&D, which added more value to the company.
The CEO of SCG, Mr. Karn, learnt an important lesson from the TomYumKung crisis in 1997 and had to sell 57 non-core business companies out to restructure the companies debt. Afterward, he trusted in creating immunity for the business and now he is starting to prepare for The Asean Community by extending his business within the region and to ensure his employee’s in each country are ready for the changes.
The CEO of That Union Frozen Products Ltd.,(TUF), Mr. Teerapong, had an idea about doing what you know best or specialization which helps sustain and save the company from an economic crisis. He mentioned organizational sustainability will depend on people so the company needs to have a good succession plan for every work level, not only just the c-level positions.
Overall, all the leaders proved that the sufficiency concept works well within private companies and it is not just for NGO’s or other non-profit organizations. It is all about balancing what you can do with what you have, to go forward in the right way. It is not only about how to kill your competitors or being the best but how to be good a company financially and ethically. This is exactly like Broadgate’s belief; we can be a good company by doing good things! Follow the next episode about sufficiency economy on my next blog, which I will explore deeper into efficiency on the energy industry.