March 31, 2012

…you have to let me do my job

If a leader is to make a big change in an organization, he has to be able to handle the resistance from the unhappy faces who are likely to be worsen-off by the change.

Thai Airways, the national air carrier of Thailand kept losing money years after years until they appointed Mr. Piyasvasti Amranand as the company president.

The major changes he made was limiting the authorities previously given to the board of directors whom used to make decision and implement things instead of the management. Mr. Amaranand said
"You can't run the company that way. That's why when I came in, one of the conditions was that the management must be allowed to manage the company and the board should only make decision on strategy, policy, and not interupt the day-to-day management of the company, or appointment of key staff."

To me, this was a very big change (for Thai organisation), the change which might have stimulated the management to work differently as they were allowed flexibility and freedom to run the company without having to worry about the board while Mr. Amaranad did a good job handling the board whom presumably not too happy about this as their clear passage for self-benefit were shut down and I don't think that was easy for him as there should be an enormous force from the board to oust him from being the leading man.

but he dares to make a demand, to go against the board, and determined to overhaul the organisation.

It took only a year for Thai Airways to make profit, that's a very quick turnaround.

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