IN 1983, I was back in Kluang. But I was not sure that I was completely welcome. In the Pamol head office on the estate, I had an office and a secretary. Joe Walton, the chairman and managing director, had informed me that the new job was called estates director, responsible for field operations in plantations in the Kluang area and in Sabah. He had told me in a flat voice.
Secondly, I was also given the title of vice-chairman of the Malaysian business and appointed as a director on the board.
Thirdly, I was asked to be the chairman of the business in the Solomon Islands, which meant that I would fly there for board meetings, which up to then, was what he had enjoyed doing about four times a year.
Walton had explained that in his deep voice, speaking evenly about the arrangement. It had come from London, with Leslie Davidson my mentor probably having a hand in it. Both had started as young men in their planting career in Africa, and events had led to this situation when Walton was reporting to him.
When Davidson was allowed at last to visit the plantations just before my assignment to the Solomons, he had had such a connection with the workers and staff, due to his knowledge of Malay and Hakka, that he could show off mercilessly.
Walton did not have that ebullient personality, and he did not have the years of work in the country or had shared meals in the field in the pioneering days of new field plantings as Davidson had.
It was the time when Walton had not communicated much with me, and our chats were no more than about work. On the other hand, I was aware that he had less than a year to go before retirement.
In the office in London, a few changes were also happening.
Thomas Thomas, who was head of Hindustan Lever, and now the main board director of Unilever, was in charge of several sections of the food production units, and the plantations group was also added to his portfolio, which he took seriously.
He had visited Kluang a couple of times, met the management, asked many questions, but he kept his views to himself until we received an announcement about some changes.
Another person would arrive from the London office. His name was Roy Brown, younger than me, with an MBA from Harvard Business School. He was an engineer, and had worked in the shipbuilding industry. When he joined Unilever, Thomas had picked him to check the figures behind the results of the foods factories. Thomas had promoted him several times. But Brown had no plantations experience.
It fell on Walton to have to tell the management team that Brown was going to understudy him and take over when he retired. He was to come as commercial director.
Brown began to learn how plantations worked. He was big sized, and with a big head. He thought more than he spoke, and most of the discussions were in the form of questions.
In the office he worked until late, returning home to his wife Carol and young son.
He attended official dinners and festivals, and tried to observe the ceremonies, without putting a foot wrong. But he was more comfortable working on figures and with computers, which he introduced in the office. His Sundays were like other days.
When Thomas visited again, all could see that they got on well, with him as mentor. They had some private discussions.
Thomas did not succeed in hiding his views. He saw planters as set in their ways. Perhaps, he saw us as not willing to change with the times and did not share his sense of urgency.
For that reason, he did not allow any extension for Walton although he had asked for a few months for a personal reason related to the law in Britain, so that he would arrive in the new tax year. He had no choice but to park himself in Singapore until the old tax year had passed.
I could sense that Brown would be there for only a few years. He would bring a new approach in the way things were done, being unbiased by any previous knowledge. Having succeeded, he would be moved to some higher job in Unilever, where the turnover and the profit would be bigger. Thomas would see to that.
Brown started to put his stamp on the place. With months of observation and taking notes, and meetings with plantations heads in other companies, he had a clear idea on what he wanted. He called for several meetings with senior management, with deadlines for action after each meeting.
On the first meeting, he had already made his views clear.
“I have been patiently watching the work here and asking people in other companies and I am not impressed with this industry,” he said.
He had charts ready, and showed them on the screen.
“The figures here show that the business had not made progress in productivity or in profits in real terms. Costs have gone up and production per hectare in many places has not increased. The way you work and use labour has not changed. This trend shows the industry is in decline. You were often saved by the high palm oil prices. But it will not be like that forever.
“I am here to see that if prices get lower, we will be the last company to go bust. That means we have to think of new ways to raise the fruit production and get the costs down.
“Mahbob will lead the field team to give any ideas on productivity, make better use of labour and put in the figures to show the effect, together with the return on investment. I will get an accountant to sit with you. How long do you need?”
“At least two weeks.”
“You have one month. Anything can be changed. I am an engineer. I see the palm tree as just a reactor that produces palm oil. What it gives depends on what kind of reactor you choose to put in the ground and what you do for it. That includes fertiliser application so that the reactor will give its best.”
He turned to the engineers.
“In the mill, the extraction rates will need to increase as well as the quality for palm oil. It is the same with the kernels. How can we recover more from the shells? Let me know what you need to buy to stop the wastage.”
Clearly Thomas had given him a free hand. He concluded.
“Just come in anytime and see me if you need any help.”
I sat there and began to see the picture of the next few weeks. I was to work on ways I had not done before. It would mean long hours. I would have to rack my brains. The workload was going to be heavy.
I was not used to this.
The writer has extensive experience in the management of oil palm plantations. Comments: letters@thesundaily.com
