PTT's Pailin sees flood crisis as a leadership opportunity Government should study the flood cause

"Krisis" in Greek denotes points of change. But as conditions change, positives can be taken from a crisis, including the ongoing flood in Thailand, says Pailin Chuchottaworn, PTT's president & CEO.

Dr Pailin won CNBC’s 10th Asia Business Leaders Award for Talent Management last week because of his work at IRPC.

Over 600 people have lost their lives, with the Central Plains and seven industrial estates swamped. Foreign investors, especially Japan, are upset about a lack of water management plans and prevention, and the government set up two commissions to work on broad strategy and restoring confidence.

Strong reassuring leadership during a crisis can determine whether the response will be a success or failure, said Dr Pailin.

"The flood impact is severe and far-reaching. It changed our mindset about whether Thailand is safe from disasters. I believe an opportunity arises three to six months after every crisis happens. But we must grab that opportunity."

Public discontent against the government's handling of the earthquake and the nuclear crisis forced Naoto Kan to resign as Japan's prime minister, and criticism of George Bush's handling of aid and repair during the Hurricane Katrina aftermath was a factor for voters in the next federal elections.

In Indonesia, Susilo Bambang Yudhoyono's stewardship in rebuilding Aceh after the tsunami in 2005 garnered him international praise and led to a second term as president in 2009.

One of the government's top priorities after the flood should be to understand its cause and impact, similar to what Japan did in the aftermath of the Tohoku earthquake in March, he said. 

Japanese officials dispatched experts to examine buildings destroyed by the powerful quake to determine better construction methods and land hit by the tsunami to understand the quake's impact.

"We need to understand what caused the flood in order to prevent it," Dr Pailin said.

To win a staff's confidence and ensure they work toward a common goal, a leader needs comprehensive knowledge, patience and foresight, he added.

Dr Pailin won CNBC's 10th Asia Business Leaders Award for Talent Management last week, because as president of IRPC since 2009 he turned around its balance sheet from 18 billion baht in losses in 2008 to 6 billion profit in 2010.

He said three to six months after IRPC posted huge losses he persuaded the staff it needed to change.

"IRPC at that time was similar to a big ship close to a reef, about to collide with hidden rocks. In order to avoid them, the business needed to separate into smaller pieces to follow their own objectives, similar to smaller boats weaving around the rocks."

Dr Pailin was chosen for president of PTT in September 2011. While he wants PTT to be included in the Forbes 100, the global financial crisis changed the corporate focus to sustainability rather than rapid growth.

"PTT's strategy is to have a long value chain and strong internal management," he said. "Being large is important for an oil company in increasing business leverage, such as when we bid. But size should be the effect, not the cause."