Fellow TET Colleagues,
As we crossed the half year mark of 2014, I want to thank you for all of your contributions for the first 6 months. While our achievements in the last 6 months were commendable, notably by completing Total Badamyar Basic Design as well as Chevron Ubon FEED, we have also missed out a few targets and prospects, some due to competition, instability of the political situation in Thailand, as well as deferment of client’s investment decision. The “simultaneous” completion of the few major projects has momentarily created a dip in the level of activities, and we expect the situation to last a couple of months before situation can be brought back to pre-peak scenario as seen throughout 2013. As a result, our performance dashboard at the mid-year mark is showing some gaps from our targets. Second half of 2014 will be crucial, and represents a challenge that we must face head on, tackle and eventually overcome.
Over the past weeks, there has been gossip in various corners of the company. While I can’t say that the subject of the gossip is baseless, I can certainly say that most of it is without the insight and the comprehension of what drives this company decision. In case you are one of those see-no-evil and hear-no-evil employees (and I salute you for that), the subject of the gossip is “Is Technip Thailand laying off ?“
The answer is Yes. We are.
We start and spread rumors, we gossip, much of it has to do with our need to make sense of what's happening around us. We need to fill in the holes in the story with a little bit of fact – and a lot of guesswork. When we see or hear that some employees have been let go, coupled with low workload during this period, we automatically jump into conclusion that we are in trouble. We have no job. We have to cut cost. We need to downsize etc.
However, before anyone of you starts indulging into the pleasure of further gossiping, or presses the panic button, I urge you all to read what I have to say here.
A company may go through downsizing exercise for one or more reasons. It could be a cost cutting exercise, a change of company operating model, restructuring, introduction of technology and process automation to reduce reliance of labor force etc. It could also be due to the need to address a mass, acute disciplinary issue or policy violation. However, not many people realize that the trigger to cut down workforce could also be driven by performance enhancement objective.
To keep pace in an increasingly competitive world, we need to run our business as efficiently as possible. Any company not operating efficiently will be out of business, sooner or later and we, Technip Thailand, are of no exception.
There are many ways to improve a company’s efficiency and to improve performance delivery. Some may resort to technology, some through training and development, retention, sharing of experience etc. “The first step to building the right organization for our ambitions is to realign our workforce.”, said Satya Nadella, CEO Of Microsoft, in his address to all employees in the recent downsizing move. In the past recent years, TET’s rather rapid growth in size, has outpaced the growth in competencies and efficiency. The root cause could be the gaps in our resource management, our training and development program, our recruitment and selection program etc. Statistic shows that our productivity has been inconsistent, and at times lagging. Despite the availability of software, IT tools, lessons learnt etc., we ask for more hours the same job. We submit bids to meet the deadlines (instead of to win). We continue to be plagued by quality issues, issues that not only affected our margin of operations, but also our reputation. Our Chairman, Thierry Pilenko has stated in May 2012, “Quality will be the new battle”. Many of us are still having the mindset that it WILL be our next battle. The truth is that, the battle has already begun, and we are already losing.
Things must change. I have mentioned in my previous article on Quality – A Pursue Of Perfection, that “As an engineering house that strives for excellence, it is clear that quality is a must and not a consideration.” and that “We must change, in order to be recognized as a leader and professional engineering company that constantly deliver quality products, meet Client’s and Technip’s expectation.“
Have we found, or established the differentiator that makes Technip the company people want to work for and clients continually come to and recommend ? Are we yet the best in the industries, and if not, what must we do, differently ?
This, without doubt, is the first time in Technip Thailand’s history, since its inception in 1997, that we will be taking such action. However, to ensure that we continue to improve and elevate our performance level, this may not be the last. It is a difficult decision, and will always be difficult, but important nonetheless.
As General Manager of this Company, performance and results dictate what decisions I make, when I make them and how I should be making them. I have been fortunate enough to constantly receive the trusts and supports from most of you, and I continue to count on that supports in times to come.
And as a fellow employee, I endeavor to carry out this exercise as swiftly as possible, with fairness, transparency and respects to those impacted by these need for change.
Fellow TET Colleagues,
As we crossed the half year mark of 2014, I want to thank you for all of your contributions for the first 6 months. While our achievements in the last 6 months were commendable, notably by completing Total Badamyar Basic Design as well as Chevron Ubon FEED, we have also missed out a few targets and prospects, some due to competition, instability of the political situation in Thailand, as well as deferment of client’s investment decision. The “simultaneous” completion of the few major projects has momentarily created a dip in the level of activities, and we expect the situation to last a couple of months before situation can be brought back to pre-peak scenario as seen throughout 2013. As a result, our performance dashboard at the mid-year mark is showing some gaps from our targets. Second half of 2014 will be crucial, and represents a challenge that we must face head on, tackle and eventually overcome.
Over the past weeks, there has been gossip in various corners of the company. While I can’t say that the subject of the gossip is baseless, I can certainly say that most of it is without the insight and the comprehension of what drives this company decision. In case you are one of those see-no-evil and hear-no-evil employees (and I salute you for that), the subject of the gossip is “Is Technip Thailand laying off ?“
The answer is Yes. We are.
We start and spread rumors, we gossip, much of it has to do with our need to make sense of what's happening around us. We need to fill in the holes in the story with a little bit of fact – and a lot of guesswork. When we see or hear that some employees have been let go, coupled with low workload during this period, we automatically jump into conclusion that we are in trouble. We have no job. We have to cut cost. We need to downsize etc.
However, before anyone of you starts indulging into the pleasure of further gossiping, or presses the panic button, I urge you all to read what I have to say here.
A company may go through downsizing exercise for one or more reasons. It could be a cost cutting exercise, a change of company operating model, restructuring, introduction of technology and process automation to reduce reliance of labor force etc. It could also be due to the need to address a mass, acute disciplinary issue or policy violation. However, not many people realize that the trigger to cut down workforce could also be driven by performance enhancement objective.
To keep pace in an increasingly competitive world, we need to run our business as efficiently as possible. Any company not operating efficiently will be out of business, sooner or later and we, Technip Thailand, are of no exception.
There are many ways to improve a company’s efficiency and to improve performance delivery. Some may resort to technology, some through training and development, retention, sharing of experience etc. “The first step to building the right organization for our ambitions is to realign our workforce.”, said Satya Nadella, CEO Of Microsoft, in his address to all employees in the recent downsizing move. In the past recent years, TET’s rather rapid growth in size, has outpaced the growth in competencies and efficiency. The root cause could be the gaps in our resource management, our training and development program, our recruitment and selection program etc. Statistic shows that our productivity has been inconsistent, and at times lagging. Despite the availability of software, IT tools, lessons learnt etc., we ask for more hours the same job. We submit bids to meet the deadlines (instead of to win). We continue to be plagued by quality issues, issues that not only affected our margin of operations, but also our reputation. Our Chairman, Thierry Pilenko has stated in May 2012, “Quality will be the new battle”. Many of us are still having the mindset that it WILL be our next battle. The truth is that, the battle has already begun, and we are already losing.
Things must change. I have mentioned in my previous article on Quality – A Pursue Of Perfection, that “As an engineering house that strives for excellence, it is clear that quality is a must and not a consideration.” and that “We must change, in order to be recognized as a leader and professional engineering company that constantly deliver quality products, meet Client’s and Technip’s expectation.“
Have we found, or established the differentiator that makes Technip the company people want to work for and clients continually come to and recommend ? Are we yet the best in the industries, and if not, what must we do, differently ?
This, without doubt, is the first time in Technip Thailand’s history, since its inception in 1997, that we will be taking such action. However, to ensure that we continue to improve and elevate our performance level, this may not be the last. It is a difficult decision, and will always be difficult, but important nonetheless.
As General Manager of this Company, performance and results dictate what decisions I make, when I make them and how I should be making them. I have been fortunate enough to constantly receive the trusts and supports from most of you, and I continue to count on that supports in times to come.
And as a fellow employee, I endeavor to carry out this exercise as swiftly as possible, with fairness, transparency and respects to those impacted by these need for change.
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