Bangkok Post : Embedding a good value system
‘I normally employ active listening in my management style regardless of whether I agree with an issue. When it comes time to make a final decision, the ultimate goal is the benefits accrued to the organisation itself and society at large,” says Dr Prasarn Trairatvorakul, governor of the Bank of Thailand.
Dr Prasarn is not a new face at the central bank. he served there from 1983-92 before moving to the Securities and Exchange Commission (SEC) as a deputy secretary-general. he then headed the SEC as secretary-general from 1999 to 2003 before moving to Kasikornbank (KBank) to serve as president, then back to the central bank last October after being appointed as its new governor.
“I always consider both the ‘hardware’ and the ‘software’. The hardware is what’s tangible such as organisational direction, targets and performance. such systematic and scientifically measured items are useful for management. A good value system is one piece of software, very important for sustaining an organisation,” he says.
Taking away the punchbowl: “Three core values – being principled, having foresight and acting down-to-earth – were introduced before my time by the previous governor, Tarisa Watanagase. On my first day as governor, I sent out a letter to all the central bank staff reiterating these values and including a fourth – reaching out. We’re doing fine on the first two values but still have room to improve on the other two.”
To be more down to earth, Dr Prasarn believes the Bank of Thailand must think more in terms of “practical policies”. that entails vigilance and allowing staff to acquire broader experience such as by working with outside organisations for a while and then returning to the central bank.
He referred to a famous quote by William McChesney Martin Jr, the longest-serving chairman of the US Federal Reserve (1951-70), who said the job of a central bank is to “to take away the punchbowl just as the party gets going”.
“Our work involves other parties, so we must reach out to the others. This way, we can expect good cooperation if we have to make some tough decisions,” says Dr Prasarn.
Recognition and rewards: A good value system is the foundation of good human resource management, and that of the central bank is crucial in achieving its goals. To this end, Dr Prasarn has adopted a “balanced score card” to as his measurement tool.
“Our board last December approved a variable pay scheme that will take effect this July. such recognition will be the first of its kind and very rewarding. Staff performance evaluations including for the governor will be made every six months,” Dr Prasarn boasts proudly.
He is one of only a few senior executives who have been at the top of powerful public and private organisations alike, as witnessed by his tenure as KBank president.
“Managing a public organisation is certainly different from running a private enterprise. Performance cannot be measured as clearly since there is true competition in the private sector but not on the public side. Being process-driven is the one similarity. Unfortunately, a process culture does not encourage people to be flexible or aware of changes in the environment,” says Dr Prasarn.
Leading with a coaching mindset: “Human skills capability is at the top of the list of leadership qualities. Understanding basic management needs such as an incentive system and what drives people to perform is no.2. The third quality leaders must have is coaching skills and the ability to provide feedback; leaders must be brave enough to accept reality and give feedback that will improve poor performers,” says Dr Prasarn.
A strong people-oriented executive, he was a key figure at a critical juncture in Thai history – the 1973 student uprising, when he was the student body president at Chulalongkorn University.
“My student activities developed a sense of human resource management in me, taught me how to delegate authority. My personal leadership approach tends to be consultative with some degree of a participatory style. I prefer to articulate and make myself crystal clear so that others will understand the issues. Buy-ins from my team members are important, but there may be a critical moment in which it falls to me to take a position and decide,” concludes Dr Prasarn.
Sorayuth Vathanavisuth is a former chief executive of the Thailand Management Association and now teaches at Mahidol University’s College of Management. he can be reached at .
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