Leadership lessons from Shell’s top man

Image lifted from "Thought Leaders"

In an interview on “Thought Leaders”, a weekly show featuring influential management and business leaders by Bloomberg TV Philippines, Shell companies in the Philippines Country Chair Edgar Chua gives some insights on his leadership and management style as he tackled various aspects of growing the business of oil and gas exploration, extraction, refining and delivery to consumers under various companies under the Shell brand.

Not everything happens by choice so make the most of chance.  When asked how he rose from being a sales representative in 1979 to his present position as country chair of Shell companies in the Philippines, Chua says some of his personnel movements were by choice and others, by chance.  “The important point is that one has to be open to opportunities, and to doing things that take you out of your comfort zone.” From sales rep, Chua did the rounds in Finance, Audit, Trading, Operations and other areas of the business.  He adds that a person who takes whatever is thrown him and takes it well proves to senior managers that he is flexible, adaptable and capable of doing different things. 

Image lifted from "Thought Leaders"

You’re not the only one making it work. Chua credits his wife, Veronica, for making “a lot of the sacrifice” in giving up her career to join him overseas when he was posted in London. “The other important thing is she made sure that our children understood why I’m away from home so much, why I’m not in some of the important events where I should be. The children have not taken it against me primarily because my wife has been able to explain to them why the sacrifices are needed.”

Do your job and do it well.  “Whatever job you’re given, do a great job. Don’t be too picky. It’s difficult to get work but once you do, really focus on work. Chua says the young, especially, can get so focused on getting ahead, on being the next GM or President. “We are missing the point because for me, the objective is to do your best and if you actually perform well, the promotions will follow. It’s really about doing a good job and if you’re focused on doing a good job, you also work well with the team whereas if you’re focused on the position, you see others as competitors.”

Make God the center of everything. “This really comes from my wife:  Make sure that God is at the center of everything, whether it’s marriage or other aspects of your life. If the foundation is based on God, I think you cannot go wrong.”

Once you decide to do it, give it your best shot. Chua relates that he was a month into the job as country chair when colleagues from the US relayed that they wanted to visit the country to check out the possibility of setting up a shared service center or a business process outsourcing unit. He learned, though, that a decision had already been made to move the center to India and that the visit was a formality to ensure that all bases had been covered. “What’s key is that we decided that regardless of some doubts, we would give it our best shot. We brought in other parties to help us like former country chair Cesar Buenaventura and Oscar Reyes, different people in the industry, who all helped in trying to present the best of the Philippines. At the end, they were very impressed and decided that Manila is the best location for the center.” Started in 2004, the Shell Business Operations (SBO)-Manila is now the biggest of six facilities across the globe, providing support services to various Shell businesses in Europe, North America and Asia.

Don’t be afraid to make unpopular decisions for the right

Image lifted from "Thought Leaders"

reasons. Chua was among those behind the decision to sell the company’s basketball team “Shell Turbo Chargers” after some 20 years, a move deemed unpopular in a nation whose love for basketball borders on legendary. But Chua says the original rationale for owning a basketball team had ceased to exist so “we decided to use the money we were spending to maintain the team on social investments instead.” By spending on scholarships, environment and livelihood initiatives, Shell is helping those who really need it most, he adds. “Our employees, who participated in these activities under our volunteerism program, were also happy because when you see the impact that your small contribution is making on these people’s lives, it gives you a different sense of satisfaction.”

Look at the big picture. When all other companies were looking at closing down refinery operations, Chua fought to keep the Shell Refinery running. “The refinery here, though small, has one of the best records in safety, in reliability. Refinery margins can get negative, but it’s an integral part of the overall business. You have to look at it in the wider context. If you remove the refinery, there would be losses in other parts of the business. The refinery is also very important because it ensures that the country is not totally dependent on imports and from a security point of view, it’s best if we have sufficient capability to manufacture our own refined product requirements.”

Get everyone on board. Chua says making the decision to keep the refinery operational was also about getting the whole organization aligned into believing that it’s possible to save the refinery. “As long as you're transparent and acting in the best interest of the company, you can make difficult calls anytime. The important thing is to bring the whole organization with you. The change management process is very important. Sometimes, people think it’s just major changes that matter, but every decision will result to change, some bigger than others. It’s important that you have the engagement, that you’re able to make your team own that decision."

Communicate with and trust in your people. Chua believes that the sustainability of any organization lies in its people. “You must be able to find, recruit good people or train people. You need to be a listening person. I maintain a very “light touch” approach because I trust my people and give them a lot of leeway which I think gives them satisfaction. But I also tell them that if they have problems and need to consult, I am around.”  Prompt feedback also makes for effective coaching, he adds.  “I take advantage of what we call coachable moments. If during a presentation or meeting, something comes up that must be brought to the attention of the person, I talk with that person right after.

The company does not exist in a vacuum.  Chua is set to retire later in 2016 and when asked what qualities his successor should have, he mentions several leadership traits but emphasizes “a genuine interest in marrying the benefit of the company with that of the country.”  He says that when a person is seen as only looking after his company’s interest, that person will have difficulty engaging with government “and in our industry, there’s a lot of government engagement so you need to be seen as someone who is genuinely interested in also being part of nation-building”. 

There's life after Shell. When its’ time for him to leave corporate life, Chua sees himself devoting more time to doing NGO work. “I’ve seen how the private sector lessons that I’ve learned can actually be of great value to NGOs. They have a different focus on industries and our experiences, controls, discipline provides a good balance to that so I hope that I can be more active in that space.”