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FOR DISSEMINATION Young Leaders Forum, November 24th, 2008 – Kuala Lumpur Convention Centre Winning Hearts & Minds

– AHMAD NIZAM SALLEH

WINNING HEARTS & MINDS
“Follow them and people will follow you” PETRONAS YOUNG L EADERS FORUM 2008
November 24, 2008 Kuala Lumpur Convention Centre

AHMAD NIZAM SAL LEH VICE PRESIDENT, CORPORATE SERVICES

Ladies and Gentlemen:

Assalamualaikum and good morning to all.

It gives me great pleasure to stand here before you – a very young and vibrant crowd indeed.

I hope I am able to provide you some insights about "Winning the Hearts and Minds" and share some of my candid moments and some of my own humble experiences, accumulated over the past 27 years of my time in PETRONAS. Gosh. I think some of you are as old............ I mean, as my career age in PETRONAS.

I also look forward to interacting with you over the course of this program.

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functioned well in teams and proudly became Good Followers. 1968 Ladies and Gentlemen: 1. between Leaders and Followers. Mentees and Coachees. upon clarity of vision and mission. A good number became natural leaders. I am sure by now all of you are by now very familiar with this image. What was the vision of our Leaders at the time and how did the followers respond to that vision? What were the trials and tribulations that our past and present leaders had to endure to arrive at what we are today? 3. PETRONAS has progressed by leaps and bounds. 2 . some were nurtured and developed. 2008 – Kuala Lumpur Convention Centre Winning Hearts & Minds – AHMAD NIZAM SALLEH Having a vision and creating a shared purpose Internally focused Externally focused Fortune 500 • Expansion into over 30 countries • Expansion of other domestic downstream projects • Incorporation of PETRONAS on 17th August 1974 • Oil exploration & development • First PSC signed in 1976 PSC Manager “Formative” 1970s RETURN ON REVENUE: • Production of oil and gas from international ventures • Revenue from overseas operations has steadily increased 2nd • Gas exploration & development • Beginning of downstream gas projects • Refining • Petrochemicals • Logistics & Maritime • International Ventures RETURN ON ASSETS: 2nd 5th PROFITABILITY: PSC & Project Manager/Operator Integration “Developmental” 1980s Global Player “New World” 2000s Overall Industry Ranking: 95th “Globalisation” 1990s 2008 2 Image courtesy of MLNG: Signing Petroleum Agreements. But then. 4. some became good Coaches and some good Mentors. Whilst. November 24th. How did we get to this stage in the first place? 2. the roles interchanged in harmony in various dynamic situations.FOR DISSEMINATION Young Leaders Forum. at the same time the majority. throughout the evolution and transformation processes. So many great and responsible people were involved and so many roles and responsibilities undertaken.

amid all kinds of difficulties and challenges. 6. are managed and operated by PETRONAS employees ( irrespective of nationalities). We must continue to build on our successes. It requires us to be resilient. Upstream and Downstream where PETRONAS holds substantial equity. It is against those backgrounds that history was created and milestones achieved. it changed mindsets and shifted paradigms. nor a deterrent for us to carry out our duties and obligations based on the trust bestowed upon us. That's how the success story of PETRONAS take over of the Baram Delta operations in Offshore Sarawak was created. Today. I personally believe the vision for our organisation – then and now is strong and intact. were so profounding. It touched so many hearts. it created new hope and aspirations. A legacy was created and must be passed on from generations to generations. Looking back. 7. management and operations of the LNG Business in Bintulu. It sets the momentum of change. November 24th. We are now a Global company. listed in the Fortune 500 at par with other multinationals. The foundation of our organization was laid by those before us. These stories.FOR DISSEMINATION Young Leaders Forum. Sarawak. adaptable and agile – we must continuously reassess our strategies and anticipate changes and in times make adjustments in order to triumph. 2008 – Kuala Lumpur Convention Centre Winning Hearts & Minds – AHMAD NIZAM SALLEH 5. but happened to have its parent company in Malaysia. I am proud to share that almost all facilities. It is definitely not something for the faint-hearted – BUT I am sure all of you have the will to persevere and prevail! 3 . Challenges cannot be used as an excuse. The story continued with the subsequent leadership role.

Meaning must touch the heart of people. The achievements I have presented earlier would not have been possible without clear vision and translation of such vision into strategies and its implementation. 3. November 24th. We must create and give meaning to what people do. Primary Responsibility is to develop and add value to this natural resource. Image courtesy of MLNG: Signing Petroleum Agreements. the roles they played and what their contributions mean PETRONAS role as a Business Entity and our role in Nation Building. 2. 2008 – Kuala Lumpur Convention Centre Winning Hearts & Minds – AHMAD NIZAM SALLEH Vision – Creating Meaning RESPONSIVE to the organisation’s needs Provides MEANING to people’s (work) lives Is MEMORABLE and easily understood Leaders TOUCH A HEART before they ask for a hand Despi t e possessi ng di vi ne i nsi ght . Vision alone will have no impact if it is not related to the organization's needs. Vision must be memorable and easily understood.FOR DISSEMINATION Young Leaders Forum. “ The M bl er s” r ar el y pul l ed a um cr owd. Petroleum is our Core Business. 4 . Mission: We are a Business Entity. Leaders touch a heart before they ask for their hand. That's the reason our present Vision: is 'Leading Oil and Gas Multinational of Choice'. 1968 3 Ladies and Gentlemen: 1. 4. Objective is to contribute to the well-being of people and nation.

5 . Good followership can be translated into commitment to excellence. greater courage and motivation and alignment to achieve goals. mission and our values are key to successful implementation of strategies/action plans. but I wanted reassurance that my tactical decisions were indeed in-line with the overall aspirations. Granted that my Leader’s then would share the purpose and objectives of such assignments. 2. A good and strong follower will create a foundation to being an exemplary Leader. Clarity of purpose and mission Is my understanding of the mission clear & consistent with others? What am I supposed to do? How do I start the discussion? What approach should I take? Can I really deliver this? En route to New York on an assignment 4 Ladies and Gentlemen: 1. 2008 – Kuala Lumpur Convention Centre Winning Hearts & Minds – AHMAD NIZAM SALLEH 5. As Leaders we must create and give meaning. I would like to term this as an example of Good Followership behaviours. Clarity of vision. As Followers we must seek not only meaning but clarity of purpose. when faced with new tasks and assignments. So.FOR DISSEMINATION Young Leaders Forum. I always felt the need to seek out further information and understanding on the task at-hand. In my early years. November 24th.

we do not have many options but to focus on sustainability or at times survival. while at the same time having your Leader reach out to you. 2008 – Kuala Lumpur Convention Centre Winning Hearts & Minds – AHMAD NIZAM SALLEH Ladies and Gentlemen. and the likes. a responsibility for both Leaders and Followers alike. Finding meaning is a two-way process. achieving the targets and aspirations will be an uphill task. Given the dynamic and at times. it is also up to the leaders to rally the support of the people around us – be it subordinates. it’s ok to voice your concerns and step up to seek clarity. In the process we may have to change the way we do things either planned or forced by circumstances. November 24th.FOR DISSEMINATION Young Leaders Forum. If you recall my earlier slide ["Having A Vision and Creating Shared Purpose"] we have witnessed that PETRONAS has achieved another record year in terms of performance. peers. Without every person’s commitment. When change is indeed required. 6 . partners. volatile environment coupled with more challenges coming our way. Inspiration – Walk the Talk TRUST is the foundation of leadership ENGAGE and UNITE teams COURAGE – “calling a spade-a-spade” CELEBRATE and OWN your team’s performance 5 RALLYING FOR CHANGE – the need to go back to basics Ladies and Gentlemen: 1.

and is brave to share what he believes in and demonstrates his for convictions. and when things fall short than expected. We need to be able to be exemplary in everything we do and only by doing so can we encourage people to behave likewise. From my own personal experience: i) Being open. This approach would lend to your credibility as a Leader. November 24th. 2008 – Kuala Lumpur Convention Centre Winning Hearts & Minds – AHMAD NIZAM SALLEH 2. fairness and demonstration of ethical conduct.when a leader opens up. “walking the talk” simply means you are highly reliable and dependable in delivering on your promises and commitments. iv) Have courage and be brave when dealing with performance shortfall Leaders need to be brave when making decisions on performance – to “call a spade-aspade” and be able to challenge unethical decisions and actions when the situation warrants for it. be honest about things – don’t go beating around the bush and ignite the culture of finger pointing. Whatever is inside them will surface as actions and behaviors. What needs to be done is to sometimes single them out. iii) Appoint/identify a “change agent”. In essence.FOR DISSEMINATION Young Leaders Forum. honest and transparent: It pays to be open . 3. Do not make unrealistic promises. and also yours. People can sense your 7 . others will be more willing to share what they think and feel too. and have an interaction that is personalised – take them out for coffee and sincerely try to understand their fears and motivations. I believe earning the confidence and trust of others requires going back to basics – we ourselves need to have a high level of integrity. To me. and deliver what you promise. From my personal and humble experience. Leaders need to be able to provide the motivation and provide a real sense of purpose. great leaders will be at their best. when the pressure is turned on. and clarity in direction. Promise what you can. ii) Engaging and uniting a team: Leaders need to be able to engage and unite their constituents – everyone has to be able to dance to the same tune.

And as a subordinate. This will help foster trust. cohesiveness and greater team dynamics. and will appreciate you for that. we need to understand that acknowledging and celebrating successes is a powerful tool for the Leader. 4) “Celebrate” and “Own” your team’s performance: Sometimes we always get caught up and purely focusing on how to manage underperformance. November 24th. what first needs to be done is to just look.FOR DISSEMINATION Young Leaders Forum. when you enter into a new position. there is nothing more gratifying than seeing that the Leader /Boss is proud of the team’s deliverables and “owns” the performance of the team. and satisfying to the staff. Inspiration – Humility Do a SELF-ASSESSMENT ENRICH self and others Only secure leaders EMPOWER others A Leader’s legacy is measured by SUCCESSION 6 Ladies and Gentlemen: 1) Self-assessment Sometimes. 8 . But as Leader’s. We need to understand that such acknowledgement has the potential to repeat and reinforce key positive behaviours that would have led to the success in the first place. 2008 – Kuala Lumpur Convention Centre Winning Hearts & Minds – AHMAD NIZAM SALLEH sincerity.

9 . what is the real meaning of insider status? 3) Empower Others People’s capacity to achieve is determined by their leader’s ability to empower. history. but you need to take comfort that when the Management has already identified and selected you as the best person for the job. it would be most rewarding to expose them to the real world of business – how strategies are designed.” – Theodore Roosevelt 2) Enrich Self and Others I am a firm believer of the benefits of being well-prepared and well-informed about the situation at-hand. Do not be scared to admit that you do not know.FOR DISSEMINATION Young Leaders Forum. how deals are set. for any human being is some times the hardest hurdle to overcome. The key is to have a high belief in people. No matter how good you are. you need to do a self-assessment on your own capabilities. But at the same time. What is important is to know what you do not know. and self restraint enough to keep from meddling with them while they do it. Today is achieved from building blocks of yesterday and tomorrow starts today!!! While we develop new talents. why then are you having a confidence crisis in yourself – your own skills and abilities? “The best executive is the one who has sense enough to pick good men to do what he wants done. In addition. And this. November 24th. You need to have trust and faith that your staff will carry out what needs to be done and deliver the results remarkably well. 2008 – Kuala Lumpur Convention Centre Winning Hearts & Minds – AHMAD NIZAM SALLEH listen and observe the surroundings – ascertain the dynamics and motivations of your new team. Apprehension is always a normal thing in new situations. you cannot go at it alone. it also pays to spend time enriching ourselves with knowledge of past events. You may suddenly doubt your own capabilities and confidence. how customers are won. or culture as it normally forms the basis to progress.

without first extending a lifeline. November 24th. You can either exercise it. that environment would have been institutionalised and will long outlive your own lives. “Leadership is one of the things that you cannot delegate. and not just watch by the sidelines. or you abdicate it.FOR DISSEMINATION Young Leaders Forum.” And a legacy is created and reflected when “a person put his organisation into the position to do great things without him”. Good Leaders do that. 10 . but if you had made the right decisions. former chairman and chief executive of the Coca-Cola Company once said. So even when you have moved on to other new areas. 2008 – Kuala Lumpur Convention Centre Winning Hearts & Minds – AHMAD NIZAM SALLEH At the same time you need to provide assurances from time-to-time that you as Leaders will not let your people sink. spread the right culture. 4) Leaders developing Leaders – Succession Roberto Goizueta. But there is also another choice: You pass it on to your successor.

If they need encouragement – you may also need to consider a reward. November 24th. 2008 – Kuala Lumpur Convention Centre Winning Hearts & Minds – AHMAD NIZAM SALLEH Momentum MOMENTUM is a Leader’s best friend Encourage people to take INITIATIVE Build RAPPORT Behaviors Mindsets Assumptions Beliefs Values 7 Ladies and Gentlemen: Rome wasn’t built in a day. After taking some time to create the vision for your organisation. If motivation is needed – you may want to throw them a new challenge. 11 . you might want to inspire. Once the team’s confidence level has soared. You need to have patience to wait for the results to show.FOR DISSEMINATION Young Leaders Forum. you need to put the building blocks in place – this requires preparation and motivation. amaze. you can expect greater results from them. Leader’s need to be able to effectively and masterfully “read” and understand the motivations of their staff. amuse or even intimidate and prod them. how you build momentum is to first score some victories (and celebrate them). And sometimes. If you notice them getting lazy. Leader’s also need to remember that gaining momentum is one of the most fundamental aspects of change management.

It is the leader’s ability to create a shared vision and to inspire the organisation that sets him apart from the “manager”. but perhaps some of these statements: The visionary is not a leader if he cannot also inspire. you’ve been able to digest and understand and take-away if not all. I hope over the last few minutes. The momentum-sustainer is not a leader if he cannot create a shared vision. 12 .FOR DISSEMINATION Young Leaders Forum. 2008 – Kuala Lumpur Convention Centre Winning Hearts & Minds – AHMAD NIZAM SALLEH Key Take-Aways LEADERSHIP = Vision x Inspiration x Momentum Images from: various sources 9 Ladies and Gentlemen: A Great organization like PETRONAS is definitely attributed to great leaders with great visions. November 24th.

2008 – Kuala Lumpur Convention Centre Winning Hearts & Minds – AHMAD NIZAM SALLEH ANYONE CAN STEER THE SHIP. Be courageous 2. en route to Chita. I look forward to further interacting with you and I hope you have a fruitful session and career ahead. Be well-prepared 3. Thank you.FOR DISSEMINATION Young Leaders Forum. BUT IT TAKES A LEADER TO CHART THE COURSE In facing the journey ahead: 1. Take time to enjoy the view Thank You and Good Luck! Puteri Zamrud Satu. Japan 10 Ladies and Gentlemen: Thank you for your kind attention. November 24th. 13 .