• 
• 

Published on April 25, 2008

Pichaya Changsorn

The Nation

At Kentucky Fried Chicken (KFC) and Pizza Hut restaurants, reforms are taking place from the ground up.

Having a good strategy does not ensure success. It is only with right execution that businesses can deliver results. Thanwa Chulajata, country manager for reward information services of Hay Group, said a survey by his human resource consulting company shows that of the ten best strategies, only two have been successfully executed.

Sran Smutkochorn, managing director of Yum Restaurants International (Thailand), which operates the country's largest chain of fast-food restaurants under various brands including KFC and Pizza Hut, said his goal for this year is to achieve "execution excellence". Taking on the leadership role at Yum in late 2006, Sran spent most of last year redefining the company's strategies, rejuvenating its brand image and communication messages to teen target groups, adjusting menus and marketing approaches. And now it is time for execution, he said.

To drive in the execution culture, Sran has been overhauling the way the company operates. Last year, he set up regional offices at Nakhon Si Thammarat, Phitsanulok, Nakhon Ratchasima and at the Chonburi Motorway, and sent out all 35 district and area managers to work at the regional offices.

District and area managers have to spend at least 70 to 80 per cent of their time at the restaurants. Every week, district managers hold a meeting with the company's operations board, which is chaired by Sran. District managers also have to present their plans and results to Yum's board of directors.

The empowerment of operational staff from district, area and restaurant general managers (RGMs) is also in line with Yum's worldwide "RGM is No 1" policy.

Operational staff are close to consumers and getting them to become proactively involved in decision-making and planning has fed the business with insight marketing information.

Staff have been encouraged and empowered to initiate local marketing campaigns tailoring them to their customers, instead of simply following guidelines provided by the marketing division. Yum now calls its headquarters the Restaurant Support Centre and district managers are now "area coaches".

"Now, we have 400 centres", Sran said, implying that each of the 321 KFC and 76 Pizza Hut branches is regarded as a centre for the company.

Considering the vast operation of Yum, convincing people who resist change is another huge task. It also takes time for people to adjust and learn new skills and working attitudes.

"The decision-making skill, in particular, is not a skill that Thai organisations usually teach workers," he said.

Sran said his goal is to ensure sustainable growth in the next three to five years. Yum executives do not measure performance quarter by quarter, allowing them to balance short- and long-term targets and results.