leadership for sustainable organizations

Leadership for Sustainable Organizations

Sooksan Kantabutra, PhDCollege of Management

Mahidol University

Class Activities

Sustainable Leadership conceptSufficiency Economy Philosophy in business organizationsApplying Sustainable Leadership in organizationsA case of Sa Paper business

Sustainable Leadership conceptSufficiency Economy Philosophy in business organizationsApplying Sustainable Leadership in organizationsA case of Sa Paper business


If you are a CEO of a large multinational company, what makes you afraid of leading the company into bankruptcy?

If you are a CEO of a large multinational company, what makes you afraid of leading the company into bankruptcy?

Globalization & the Changing Business Environment

Changes introduced by globalization that business organizations must respond to them timely and effectively in order to survive are:

technology developmentchanges in workforce characteristics and consumersforeign competition and new forms of competitiongreater demand for high quality products and services. Consumer protection laws.changes in international trade laws and grouping of countries for trade benefitsadvancement in transportation and telecommunicationpolitical uncertainty both inside and outside the countryterrorism and epidemics

Changes introduced by globalization that business organizations must respond to them timely and effectively in order to survive are:

technology developmentchanges in workforce characteristics and consumersforeign competition and new forms of competitiongreater demand for high quality products and services. Consumer protection laws.changes in international trade laws and grouping of countries for trade benefitsadvancement in transportation and telecommunicationpolitical uncertainty both inside and outside the countryterrorism and epidemics

Anglo/US v.s. Rhineland Capitalism Approaches to Business

The Anglo/US CapitalismFocus on short-term maximization of shareholder value ONLY

The Anglo/US CapitalismFocus on short-term maximization of shareholder value ONLY

The European Rhineland CapitalismFocus on long-term sustainability of an enterprise and its relationships with a wide range of stakeholders (e.g. community, future generations)

The European Rhineland CapitalismFocus on long-term sustainability of an enterprise and its relationships with a wide range of stakeholders (e.g. community, future generations)

Disequilib

ria &

Unsu

stainabilit

y

Impact of the Changing Business Environment on Thai Corporate Leaders

High risk from the unpredictable environment Over utilize natural resourcesPromote immoral and unethical activities, causing unpleasant and violent societyUndermine the family institution which is the foundation of Thai society and business because people migrate to big citiesTake advantage of labor from provinces by foreign businesses that invest a lot for short-term economic gains without utilization of natural resources and labor in a sustainable way Expand the social gap between the rich and the poor, which has a negative impact on all aspects of business, social and economic development

Change Impact on Thailand

Business organizations cannot survive

and thrive under these difficult conditions.Dise

quilibria

& U

nsusta

inability

High risk from the unpredictable environment Over utilize natural resourcesPromote immoral and unethical activities, causing unpleasant and violent societyUndermine the family institution which is the foundation of Thai society and business because people migrate to big citiesTake advantage of labor from provinces by foreign businesses that invest a lot for short-term economic gains without utilization of natural resources and labor in a sustainable way Expand the social gap between the rich and the poor, which has a negative impact on all aspects of business, social and economic development

Impact of the Changing Business Environment on Thai Corporate Leaders


The prime question for every corporate leader.The prime question for every corporate leader.

How can their organizations survive and thrive

despite difficult social & economic conditions?

How can their organizations survive and thrive

despite difficult social & economic conditions?


Research found that an important factor to sustain an organization was the need to seriously embrace the needs of a range of stakeholders, not just shareholders: employees, customers and suppliers as well as society, the environment and future generations are all important.

Innovation and long-term thinking are highly prized in the sustainable enterprises. They have managed to retain the loyalty of staff and customers to the extent that most of us can often only dream of. Staff development and retaining knowledge are also central to sustainable leadership (Avery, 2004).

Research found that an important factor to sustain an organization was the need to seriously embrace the needs of a range of stakeholders, not just shareholders: employees, customers and suppliers as well as society, the environment and future generations are all important.

Innovation and long-term thinking are highly prized in the sustainable enterprises. They have managed to retain the loyalty of staff and customers to the extent that most of us can often only dream of. Staff development and retaining knowledge are also central to sustainable leadership (Avery, 2004).


The range of potential stakeholders of a business is wide. EmployeesCustomersSuppliersManagersBoard membersShareholdersSociety, environmentFuture generationsTrade partnersetc.

The range of potential stakeholders of a business is wide. EmployeesCustomersSuppliersManagersBoard membersShareholdersSociety, environmentFuture generationsTrade partnersetc.

Successful, sustainable

organizations genuinely care about and are responsible for

them.

Successful, sustainable

organizations genuinely care about and are responsible for

them.

Sustainable Leadership: The Broad Framework

Successful organizations that have been around for decades adopt a system of self-reinforcing, sustainable leadership practices (Avery, 2005). They:

operate under a long-term perspectivereally value their peoplegenuinely focus on a range of stakeholders (including future generations)Embrace ethical, social and environmentally-friendly practices.

Successful organizations that have been around for decades adopt a system of self-reinforcing, sustainable leadership practices (Avery, 2005). They:

operate under a long-term perspectivereally value their peoplegenuinely focus on a range of stakeholders (including future generations)Embrace ethical, social and environmentally-friendly practices.


Limited, emphasize on radical innovation

Continuous in process, service and product

Innovation

Follow themResist and challenge themFinancial markets

Pressured because of short-term considerations

An explicit core valueEthical behavior

Manager-centeredConsensualDecision making

Decision maker;heroTop team speakerCEO concept

Anglo/USEuropean RhinelandGrid Elements

Limited; cost cutting and speedHigh is a givenQuality

Lip-service; development is staff responsibility

Strong; heavily invest in peoplePeople priority

A challenge due to short-term perspective

Strongly rooted in historyOrg. Culture

Import managersGrow their ownMgmt. development

NoYesLong-term perspective

Difficult to achieve; low staff retention

SharedKnowledge management


shareholdersBroad focusStakeholders

Not widely considered, often seen as reducing profits

A given, bring competitive advantage and savings

Environmental responsibility

Often seen as reducing shareholder value and profits

Permeates organizational thinkings and actions

Social responsibility

Unstable workforce acts as a disincentive for upskilling employees, except for managers; employees bring generic skills to the firm

Strong; Continuously develop firm-specific skills

Skilled workforce

Downsizing and outsourcing commonLow turnover rate; staff development focus

Retaining staff

Anglo/USEuropean RhinelandGrid Elements

Normally adversarial relationship; boards and management typically hold the power

Employees, unions, management share power; employees represented on boards of large companies

Union-management relations

Fast adjustmentChange is considered and managed process

Uncertainty and change

Effective teamwork is a challenge; requires management invention

Teamwork is core process; often self-governing

Teams

Impact of Globalization on Thailand’s Development

Which model of capitalism is it that is widely adopted in Thailand?

Anglo/US or European Rhineland?

Which model of capitalism is it that is widely adopted in Thailand?

Anglo/US or European Rhineland?

Sustainable Leadership in the Thai Context: The Sufficiency Economy Philosophy

“...Royal Speech: Sufficiency Economy is not limited to farmers but for everyone and all professions both in the city and in the countryside. For example, an owner of a factory and company guided by the Sufficiency Economy. If he wants to expand his business, the reason would be the normal, gradual growth of the business. If he wants to loan, he can, but has be with great care and consideration. It is not to loan too much that there is no security. He must know how to spend.”

Dr. Sumet Tantivejkul in “ใตเบ้ืองพระยุคลบาท”

“...Royal Speech: Sufficiency Economy is not limited to farmers but for everyone and all professions both in the city and in the countryside. For example, an owner of a factory and company guided by the Sufficiency Economy. If he wants to expand his business, the reason would be the normal, gradual growth of the business. If he wants to loan, he can, but has be with great care and consideration. It is not to loan too much that there is no security. He must know how to spend.”

Dr. Sumet Tantivejkul in “ใตเบ้ืองพระยุคลบาท”

Sufficiency Economy Philosophy

Moderation

Reasonableness Self-immunity

Equilibrium & Sustainability

Two underlying conditions

Three Components

Knowledge & Morality

The Sufficiency Economy Philosophy Framework

Examples of Business Activities Inconsistent with the Sufficiency Economy Philosophy

Example of business activities, not consistent with the Sufficiency EconomyPhilosophy, that do not support business organizations to survive in rapid changes from globalization.

Business expansion on loan, in response to market demandUnethical use of labor to produce more without caring for the labor’s quality of lifeNo skills and knowledge development for employeesCareless utilization of limited natural resources. Do not care about the long-term negative impact.Careless use of technology, bring about negative consequence to employees, customers and their familiesFactories harmful to the environment, employees and nearby communitiesCheating on customer or telling the truth, but not the whole truth to sell products and servicesInvestment in unethical business or careless investment in the SETExpansion in non-core businessesFocus only on maximizing shareholder value

Example of business activities, not consistent with the Sufficiency EconomyPhilosophy, that do not support business organizations to survive in rapid changes from globalization.

Business expansion on loan, in response to market demandUnethical use of labor to produce more without caring for the labor’s quality of lifeNo skills and knowledge development for employeesCareless utilization of limited natural resources. Do not care about the long-term negative impact.Careless use of technology, bring about negative consequence to employees, customers and their familiesFactories harmful to the environment, employees and nearby communitiesCheating on customer or telling the truth, but not the whole truth to sell products and servicesInvestment in unethical business or careless investment in the SETExpansion in non-core businessesFocus only on maximizing shareholder value

Sustainable Leadership versus Sufficiency Economy Philosophy

Commonalities between Sustainable Leadership & the Sufficiency Economy Philosophy

Suggest an approach to sustain organizational performance and ensure its longevityFocus on the long-term perspective of the organizationFocus on the interests of a wide rage of stakeholders including the environment, society and future generationsEmbrace social, ethical, and environmentally-friendly business practices Deal with the fast changing environment Highly value human resource developmentRetain organizational knowledge

Commonalities between Sustainable Leadership & the Sufficiency Economy Philosophy

Suggest an approach to sustain organizational performance and ensure its longevityFocus on the long-term perspective of the organizationFocus on the interests of a wide rage of stakeholders including the environment, society and future generationsEmbrace social, ethical, and environmentally-friendly business practices Deal with the fast changing environment Highly value human resource developmentRetain organizational knowledge

Applying Sustainable Leadership in Business Organizations

Factors in Applying SL in Business Organizations

Whether or not a business will succeed in applying SL depends on two main factors:

leadershipvalues and culture

Whether or not a business will succeed in applying SL depends on two main factors:

leadershipvalues and culture

Leaders are required to achieve their organizational vision by adhering to the SL Broad Framework. They should use the framework to guide their business activities. Overtime, organizational values and culture consistent with the framework will be developed to ensure organizational equilibrium and sustainability under the rapid forces of globalization.

Leaders are required to achieve their organizational vision by adhering to the SL Broad Framework. They should use the framework to guide their business activities. Overtime, organizational values and culture consistent with the framework will be developed to ensure organizational equilibrium and sustainability under the rapid forces of globalization.e.g. managers who are concerned of staff quality of life and environment, instead of focusing on short-term profits or trying to achieve the vision without caring for staff and the environment. Or when a company calls for a return of defect products.

Factors in Applying SL in Business Organizations

Organizational Values & Culture

Shared organizational values are values that organizational members share. With that reason, the values will form an organizational culture, a guiding framework for all organizational members. Indeed, applying the SL in business organizations means the adoption of the broad framework as part of the shared organizational values.

Shared organizational values are values that organizational members share. With that reason, the values will form an organizational culture, a guiding framework for all organizational members. Indeed, applying the SL in business organizations means the adoption of the broad framework as part of the shared organizational values.

Vision of being the leading Thai rice trader in Asia in 2010

Thai Rice Co. Visionary Journey

Guiding valuesValue a long-term perspective

Really value their people

Genuinely focus on a range of stakeholders (including future generations)

Embrace ethical, social and environmentally-friendly practices.

Shared values are core to organizational culture which indicates how people work in the organization. In other words, organizational culture is the guiding framework for organizational members in working toward their organizational vision.

Organizational Values & Culture

Values & Commitment

Org. Norms

SL Organizational CultureSustainable organization

Guiding valuesValue a long-term perspective

Really value their people

Genuinely focus on a range of stakeholders (including future generations)

Embrace ethical, social and environmentally-friendly practices.

Leader’s Roles in Creating Organizational Culture

Leader at SWA, a highly successful business, plays a significant role in developing organizational values & culture.

Create a value of “work is fun”Act as a role modelUse the value to guide all business activities

Leader at SWA, a highly successful business, plays a significant role in developing organizational values & culture.

Create a value of “work is fun”Act as a role modelUse the value to guide all business activities

Applications of SL in Business Organizations

The SL can be applied with the following areas of business organizations.FinanceManufacturingMarketingHuman ResourcesCustomersEtc.

The SL can be applied with the following areas of business organizations.FinanceManufacturingMarketingHuman ResourcesCustomersEtc.

ManufacturingDo not take more order if the production capacity cannot accommodateUse raw materials from local community and within the country as much as possible Use manufacturing technology from local wisdom, harmless to the environment Effective and efficient use of resources (e.g. recycle of raw materials) Do not take advantage of staff. Quality of life of the staff comes first.Focus on employment creation. No replacement of human labor by technology, if not necessary.Effective management of raw materials and inventoryEffective management of waste and the environmentHonest to suppliers

ManufacturingDo not take more order if the production capacity cannot accommodateUse raw materials from local community and within the country as much as possible Use manufacturing technology from local wisdom, harmless to the environment Effective and efficient use of resources (e.g. recycle of raw materials) Do not take advantage of staff. Quality of life of the staff comes first.Focus on employment creation. No replacement of human labor by technology, if not necessary.Effective management of raw materials and inventoryEffective management of waste and the environmentHonest to suppliers


FinanceSpend money for future development, not as a sunk costInvest for long-term benefitsInvest in ethical businesses that are not harmful to the societyDiversify investment portfolio to reduce riskDo not expand the business rapidly on loanLoan as long as the payback is with in the capacity of the business. Do not create too much debt.Fair profit sharing to employees and shareholders with the hope to maximize the benefits of customers and suppliersContribute back to society to ensure the continuation of business in the future.

FinanceSpend money for future development, not as a sunk costInvest for long-term benefitsInvest in ethical businesses that are not harmful to the societyDiversify investment portfolio to reduce riskDo not expand the business rapidly on loanLoan as long as the payback is with in the capacity of the business. Do not create too much debt.Fair profit sharing to employees and shareholders with the hope to maximize the benefits of customers and suppliersContribute back to society to ensure the continuation of business in the future.


MarketingAlways assess the market to ensure appropriate and timely responses to market changesReasonably price products and services. Not too high a price, although being a sole producerDevelop new products with reasonableness, focusing on core competency of the businessRealize the weakness of products and try to modify or developDo not lie about products or services for short-term salesTell the whole truth about products and services to consumers, as opposed to telling only the good sidesActively look for more distribution channels for products

MarketingAlways assess the market to ensure appropriate and timely responses to market changesReasonably price products and services. Not too high a price, although being a sole producerDevelop new products with reasonableness, focusing on core competency of the businessRealize the weakness of products and try to modify or developDo not lie about products or services for short-term salesTell the whole truth about products and services to consumers, as opposed to telling only the good sidesActively look for more distribution channels for products


Human ResourcesFocus on employment creation. If not necessary, no replacement of labor with technologyDo not take advantage of employees in all aspectsDevelop skills and knowledge of employees to allow them to make informed decision-making regarding their work. This is to benefit customers and organization.Develop career succession plan to ensure business continuityGive priority to employees development, because employees are key to success of the organization. Capable employees will be able to effectively respond to changesin the environment. This will bring about organizational sustainability.

Human ResourcesFocus on employment creation. If not necessary, no replacement of labor with technologyDo not take advantage of employees in all aspectsDevelop skills and knowledge of employees to allow them to make informed decision-making regarding their work. This is to benefit customers and organization.Develop career succession plan to ensure business continuityGive priority to employees development, because employees are key to success of the organization. Capable employees will be able to effectively respond to changesin the environment. This will bring about organizational sustainability.


CustomersHonest with customers. Do not take advantage of them.Give best advice about products and services to customersKeep customer information confidentialMaintain long-term relationship with customers to reduce cost of acquiring andmaintaining customer baseUse suggestions from customers to develop new products and servicesUse feedback from customers in employee performance evaluationUse IT to bring about the best benefits to customersDevelop employees who have direct contact with customers so that they can respond immediately and effectively to customer requests. Also delegate appropriate authority to the employees so that they can make decisions regarding the customer requests immediately.

CustomersHonest with customers. Do not take advantage of them.Give best advice about products and services to customersKeep customer information confidentialMaintain long-term relationship with customers to reduce cost of acquiring andmaintaining customer baseUse suggestions from customers to develop new products and servicesUse feedback from customers in employee performance evaluationUse IT to bring about the best benefits to customersDevelop employees who have direct contact with customers so that they can respond immediately and effectively to customer requests. Also delegate appropriate authority to the employees so that they can make decisions regarding the customer requests immediately.


Case Study on Sustainable Leadership in the Thai context

Sa Paper Preservation House

Sa paper factories are mostly located in the north and family businesses. There are 6 industrial paper factories, but many smaller factories located in Chiangmai, Lampang and BangkokDomestic markets are in large cities such as Bangkok, Chiangmai, Songkla, and ChonburiMajor international markets are America, Canada, Germany, Sweden, Australia, Japan, Korea and TaiwanSlow technological development since it involves local wisdoms and skills developed over time since ancestorsTotal export value is small, in relation to other handicraft products, but is growing.Competition is from China, Laos, and Burma

Sa paper factories are mostly located in the north and family businesses. There are 6 industrial paper factories, but many smaller factories located in Chiangmai, Lampang and BangkokDomestic markets are in large cities such as Bangkok, Chiangmai, Songkla, and ChonburiMajor international markets are America, Canada, Germany, Sweden, Australia, Japan, Korea and TaiwanSlow technological development since it involves local wisdoms and skills developed over time since ancestorsTotal export value is small, in relation to other handicraft products, but is growing.Competition is from China, Laos, and Burma

Industry & Competition

The Business Environment

Challenges & ObstaclesDispensable products with short life cycle. Requirements for product styles change often. Easy to produce and copy. Anyone can do.Similar products in the market. Therefore, innovation in products is key to successful competition.Most raw materials are imported from nearby countries. Therefore, cost is high. Other competing countries also speed up their product development as well.The main problem is improper waste water management and non-lasting color Foreign markets. Therefore, need people with foreign language skills.Inconsistency in paper smoothness because it is handmade. Technical development is slow, lacking innovation in terms of product design and quality

Dispensable products with short life cycle. Requirements for product styles change often. Easy to produce and copy. Anyone can do.Similar products in the market. Therefore, innovation in products is key to successful competition.Most raw materials are imported from nearby countries. Therefore, cost is high. Other competing countries also speed up their product development as well.The main problem is improper waste water management and non-lasting color Foreign markets. Therefore, need people with foreign language skills.Inconsistency in paper smoothness because it is handmade. Technical development is slow, lacking innovation in terms of product design and quality


Government & External ForcesUnion protection by raising child labor, environmental issues A a member of WTO, Thailand can export more overseas, but this also means Thailand has to comply with WTO policies and more and more intense competitionTechnological development from foreign competitors which raises the standard of products

Union protection by raising child labor, environmental issues A a member of WTO, Thailand can export more overseas, but this also means Thailand has to comply with WTO policies and more and more intense competitionTechnological development from foreign competitors which raises the standard of products


Local CommunityThe center of handicraft products in the north with reputation in sa paper products and souvenirsCity life style. Main occupation of people (80%) is sa paper making. The social structure was changed from farming to making sa paper and sa paper products, because they can make better income.Rice farming can only be done once a year because of drought. Therefore, people sold land and changed their occupation to sa paper making.Certain people who are respected by the community are Aunt Fongkam บุงคํา ตาอาย หลาปนตา และ ยายเตียม ยานันPeople who are perceived as gurus in making sa paper products are Aunt Fongkam and her husband

The center of handicraft products in the north with reputation in sa paper products and souvenirsCity life style. Main occupation of people (80%) is sa paper making. The social structure was changed from farming to making sa paper and sa paper products, because they can make better income.Rice farming can only be done once a year because of drought. Therefore, people sold land and changed their occupation to sa paper making.Certain people who are respected by the community are Aunt Fongkam บุงคํา ตาอาย หลาปนตา และ ยายเตียม ยานันPeople who are perceived as gurus in making sa paper products are Aunt Fongkam and her husband


Sa Paper Preservation House

Community business with around 500 members. Has been around for more than 40 years. Managed and led by Aunt Fongkam and her husband. Started small with three family members. Gradually expanded.80% of products are exported internationally for more than 25 yearsRaw materials are from local communities and nearby countries.Each member makes 3,000 – 10,000 baht per month.Received many awards for excellence in productsOTOP five-start products

Community business with around 500 members. Has been around for more than 40 years. Managed and led by Aunt Fongkam and her husband. Started small with three family members. Gradually expanded.80% of products are exported internationally for more than 25 yearsRaw materials are from local communities and nearby countries.Each member makes 3,000 – 10,000 baht per month.Received many awards for excellence in productsOTOP five-start products

“ในหมูบานตนเปา มีการทํากระดาษสาหลายที่ แตคุณภาพไมเหมือนกับปาฟองคํา ลกูคาเลยไมคอยมี เรื่องคูแขงจึงไมมีปญหา งานเราทํามาเรื่อย ๆ พยายามพัฒนาใหทันสมัยตามความนิยม”

–เกษร คําสอน สมาชกิ–

“ในหมูบานตนเปา มีการทํากระดาษสาหลายที่ แตคุณภาพไมเหมือนกับปาฟองคํา ลกูคาเลยไมคอยมี เรื่องคูแขงจึงไมมีปญหา งานเราทํามาเรื่อย ๆ พยายามพัฒนาใหทันสมัยตามความนิยม”

–เกษร คําสอน สมาชกิ–

Highlight: Manufacturing

Local wisdom. Mastery at production processBe natural as much as possibleGood planning of raw materialsRecycle raw materialsRespond to domestic and then international demandProduct diversification to reduce riskRealize the negative impact of chemicals on employees. Therefore, use natural materials as much as possible.

Local wisdom. Mastery at production processBe natural as much as possibleGood planning of raw materialsRecycle raw materialsRespond to domestic and then international demandProduct diversification to reduce riskRealize the negative impact of chemicals on employees. Therefore, use natural materials as much as possible.

“จะเนนแตคนท่ีชอบธรรมชาติอยางเดยีว ถาคนท่ีไมชอบธรรมชาติ เราจะไมรับ บางคนมานี่บอกวา ผมจะใหออเดอรคุณน่ีสองแสน ภายในเดอืนเดยีว เราก็จะไมรับเพราะเขาจะเอาดวน ถาเกดิมฝีนตกขึ้นมามันก็ทําบได แตทําเทาท่ีทําได บางคนบอกวา ปาวันน้ีสัง่กระดาษสักหาพันเนอ อีกสองสามวันมาเอาเนอ ปากบ็อกวาทําเทาท่ีทําได อาว ทําไมถึงวางั้นเลา อาวถาสั่งวันน้ี แลวสองวันฝนเกดิตกท้ังสองวัน มันก็บไดทํา หนาฝนนี่ทําได แตทําไดบนัก ไดครึ่งเดยีว”

–ปาฟองคํา–

“จะเนนแตคนท่ีชอบธรรมชาติอยางเดยีว ถาคนท่ีไมชอบธรรมชาติ เราจะไมรับ บางคนมานี่บอกวา ผมจะใหออเดอรคุณน่ีสองแสน ภายในเดอืนเดยีว เราก็จะไมรับเพราะเขาจะเอาดวน ถาเกดิมฝีนตกขึ้นมามันก็ทําบได แตทําเทาท่ีทําได บางคนบอกวา ปาวันน้ีสัง่กระดาษสักหาพันเนอ อีกสองสามวันมาเอาเนอ ปากบ็อกวาทําเทาท่ีทําได อาว ทําไมถึงวางั้นเลา อาวถาสั่งวันน้ี แลวสองวันฝนเกดิตกท้ังสองวัน มันก็บไดทํา หนาฝนนี่ทําได แตทําไดบนัก ไดครึ่งเดยีว”


Highlight: Raw Materials Management

Purchase raw materials from the local and nearby communities. Some times from Laos. Plant “sa” trees in Chiangrai on 400 rais of land as a backup for future expansion and uncertainty. And hire local people to take care of the land. Pay for raw materials and labor first. Honest with trade partners.Reduce cost by recycle the wasted sa paper products.

Purchase raw materials from the local and nearby communities. Some times from Laos. Plant “sa” trees in Chiangrai on 400 rais of land as a backup for future expansion and uncertainty. And hire local people to take care of the land. Pay for raw materials and labor first. Honest with trade partners.Reduce cost by recycle the wasted sa paper products.

“ปาคดิไปถึงเมื่อกอนนี้ กระดาษสานี่คนกลางจะไดเงินดี อยางเปลือกสาซื้อมาจากที่นูน พวกไปเกบ็เปลอืกสานีก่็แมว อีกอ มูเซอ ไปเกบ็ในปาบนภูเขา...ใชเวลาเปนคืน ไดสกัสบิกิโล กิโลละ 5บาท ไดแค 50 บาท สงสารเปนกเ็ลยขึ้นราคาให อยางที่เชยีงใหม สามีเยอะแยะแตไมมีคนไปเอา จางวันละรอยยังไมมีคนทําเลย ปาก็เลยไปปลกูไวทําเอง เปนท่ีดอยเปลประมูลเอา พอปลูกเสร็จก็มีคนมีงานทํา ตอนหลังใครสั่งออเดอรเรากส็บาย เพราะวาเรามีวตัถดุิบแนนอนแลว”


“ปาคดิไปถึงเมื่อกอนนี้ กระดาษสานี่คนกลางจะไดเงินดี อยางเปลือกสาซื้อมาจากที่นูน พวกไปเกบ็เปลอืกสานีก่็แมว อีกอ มูเซอ ไปเกบ็ในปาบนภูเขา...ใชเวลาเปนคืน ไดสกัสบิกิโล กิโลละ 5บาท ไดแค 50 บาท สงสารเปนกเ็ลยขึ้นราคาให อยางที่เชยีงใหม สามีเยอะแยะแตไมมีคนไปเอา จางวันละรอยยังไมมีคนทําเลย ปาก็เลยไปปลกูไวทําเอง เปนท่ีดอยเปลประมูลเอา พอปลูกเสร็จก็มีคนมีงานทํา ตอนหลังใครสั่งออเดอรเรากส็บาย เพราะวาเรามีวตัถดุิบแนนอนแลว”


Highlight: Product Management

Focus on natural productsHigh creativity in terms of new product designs such as note book, ICU gowns, flowers. Take customer feedback on products seriouslyKeep customer product designs confidential from competitors

Focus on natural productsHigh creativity in terms of new product designs such as note book, ICU gowns, flowers. Take customer feedback on products seriouslyKeep customer product designs confidential from competitors

“บางทีฝรั่งมาบอกวา น่ีสธีรรมชาติเนอะ ใสเปลอืกมันดวยใสอะไรดวย อยางนี้มันออกเหลือง มันบคอบขาว เปนจาํมาบอกวาทําไมมันไมคอบขาว ปาก็วามนับได มันเปนธรรมชาติ ฝนกันบได มันเปนงานที่สัมพันธกบัฟากับฝน มันเปนธรรมชาติแทๆ นะ บไดดดัแปลง”


“บางทีฝรั่งมาบอกวา น่ีสธีรรมชาติเนอะ ใสเปลอืกมันดวยใสอะไรดวย อยางนี้มันออกเหลือง มันบคอบขาว เปนจาํมาบอกวาทําไมมันไมคอบขาว ปาก็วามนับได มันเปนธรรมชาติ ฝนกันบได มันเปนงานที่สัมพันธกบัฟากับฝน มันเปนธรรมชาติแทๆ นะ บไดดดัแปลง”


Highlight: Customer Management

Honest with customers. Understand the benefit of building long-term relationship with customersTake customer feedback in product development to reduce market riskRespond to domestic customers first. Then international customersForeign customers initially helped in exporting products overseas because of the lack of English language skills. Even the name “Sa Paper Reservation House” was given by a foreign customer.

Honest with customers. Understand the benefit of building long-term relationship with customersTake customer feedback in product development to reduce market riskRespond to domestic customers first. Then international customersForeign customers initially helped in exporting products overseas because of the lack of English language skills. Even the name “Sa Paper Reservation House” was given by a foreign customer.

Highlight: Environmental Management

The only place in the community with self-invented, proper waste water managementRecycle of raw materialsMinimize the use of chemicals in the production process

The only place in the community with self-invented, proper waste water managementRecycle of raw materialsMinimize the use of chemicals in the production process

Highlight: Finance Management

Gradual expansion. Expand only when there is enough profit left.Initially, there was no bank loan, although bankers came to the factory to offer loans. Regular saving for future uncertainty

Gradual expansion. Expand only when there is enough profit left.Initially, there was no bank loan, although bankers came to the factory to offer loans. Regular saving for future uncertainty

$$$Cash for daily use

$$$1st reserve for short term use

$$$2nd reserve for long-term use

leftover

leftover

Income

Expense

Highlight: Human Resources ManagementEmployment creation by hiring people in the nearby communities to plant the ‘sa’ treesTrain staff to have moral and ethical principles. Preach them not to borrow too much money that they cannot pay back. This is because when staff are not happy, they could impact negatively the products which requires a lot of creativity.Treat staff as if they were family members. Give out loans to staff without interest. Teach them to save onebaht every day.Focus on employment creation. Do not replace staff with machine or technology unnecessarily, because sa products are an art work.Honest with staff. Do not take advantage of them. Pay them first every time there is a bill payment.

Employment creation by hiring people in the nearby communities to plant the ‘sa’ treesTrain staff to have moral and ethical principles. Preach them not to borrow too much money that they cannot pay back. This is because when staff are not happy, they could impact negatively the products which requires a lot of creativity.Treat staff as if they were family members. Give out loans to staff without interest. Teach them to save onebaht every day.Focus on employment creation. Do not replace staff with machine or technology unnecessarily, because sa products are an art work.Honest with staff. Do not take advantage of them. Pay them first every time there is a bill payment.

Conclusion

The result of practicing along the SL at Sa Preservation House:Can run the business successfully for over 40 years, no matter how up and down the Thai and world’s economies have been. This shows the ability to respond to the changing conditions from within and outside the country. Create employment. People in the local communities have a better quality of life. Therefore, they can deliver more creativity & innovation to the products, which is key to compete in the world’s market, particularly for this kind of business. Bring about the continuation of local Thai wisdomsReady to adapt to the changing requirements of foreign markets because of highly skilled and creative staffCan always bring about innovative products to differentiate its products from other products in the market

The result of practicing along the SL at Sa Preservation House:Can run the business successfully for over 40 years, no matter how up and down the Thai and world’s economies have been. This shows the ability to respond to the changing conditions from within and outside the country. Create employment. People in the local communities have a better quality of life. Therefore, they can deliver more creativity & innovation to the products, which is key to compete in the world’s market, particularly for this kind of business. Bring about the continuation of local Thai wisdomsReady to adapt to the changing requirements of foreign markets because of highly skilled and creative staffCan always bring about innovative products to differentiate its products from other products in the market

Equilibrium & Sustainability

Technology development in natural colors and waste management. The government sector can lend a helping hand.Management development for mangers and staff to ensure business continuity. At present, it seems that every decision depends upon Mae Fong Kam and her husband. Again, the government sector can also help develop management skills.Since Sa Paper Preservation House is far ahead of other sa paper businesses in the community, in terms of products and technology, there is a wide gap between the Preservation House and the rest of the businesses in the community. People start disliking Mae Fong Kam, causing difficulty in living peacefully in the community. Therefore, Mae Fong Kam should seriously consider helping other businesses in the community so that the gap can be bridged. Moreover, in the future, all sa businesses in the community can work together as a cluster to negotiate pricing and etc. This is to stay small, but take advantage of being “big”. Eventually, the whole community will be sustainable, achieving the SL prime objective.

Technology development in natural colors and waste management. The government sector can lend a helping hand.Management development for mangers and staff to ensure business continuity. At present, it seems that every decision depends upon Mae Fong Kam and her husband. Again, the government sector can also help develop management skills.Since Sa Paper Preservation House is far ahead of other sa paper businesses in the community, in terms of products and technology, there is a wide gap between the Preservation House and the rest of the businesses in the community. People start disliking Mae Fong Kam, causing difficulty in living peacefully in the community. Therefore, Mae Fong Kam should seriously consider helping other businesses in the community so that the gap can be bridged. Moreover, in the future, all sa businesses in the community can work together as a cluster to negotiate pricing and etc. This is to stay small, but take advantage of being “big”. Eventually, the whole community will be sustainable, achieving the SL prime objective.

Next Steps to Advance SL

Conclusion

leadership for sustainable organizations

Documents

aspects of business

sustainable way

sustainable organizationsif

thailandbusiness organizations

international trade

consumers foreign competition

trade benefits advancement

technology development