Empower the employee - a success model

Four Pattana president Pramote Teerakul believes in rewarding his employees by sharing the company's growth through stock ownership and managerial responsibilities to his staff.

So much so that if this model succeeds, he would like to call it a day.

Four Pattana is a market leader in the home-building business and raked in total revenue of Bt491 million last year. The company aims to achieve Bt610 million this year.

Pramote, 63, who founded Four Pattana, and has a 60-per-cent stake, said since it was set up in 1980, the company has recorded strong growth, averaging 10 to 20 per cent a year.

"Our business has recorded strong growth every year, thanks to our business strategy and our staff who are determined to work hard," he said.

As a goodwill gesture from the company to acknowledge their contribution, the management has initiated the ownership policy. Staff who have worked for five years in the company will have the right to buy the company's share at par value every year. Now, up to 40 per cent of Four Pattana shares are owned by its staff, totalling 100 people.

Pramote, who intends to retire from the business as soon as possible, has promoted some of the senior staff to sit on the company's board of directors since 2007.

"Some of the home-building firms select outside management experts to run the business when the owner retires from the business. In our view, our firm has had strong and healthy growth because of the contribution of our staff, so why cannot they themselves be the top management of our business? As a result, we have initiated a new business model, appointing eight senior staff to sit on the company's board. They are authorised to approve the strategies and business targets. If they successfully run the company within three years, I will retire from the business to be only an adviser," he said.

The staff will hold a major stake in the company, while Pramote would dilute his holding from 60 per cent to no more than 50 per cent. This strategy will create the feeling of being owners of the business among staff, which is the key to manage the business to be a healthy firm with the energy to compete with other home-building firms.

"We know almost every employee wants to be a business owner and wants to know the career path. When we create the feeling that they too can be business owners, they will have more energy to run the business than if they don't know about their future career path," he said.

In addition, Pramote has expanded into related businesses such as interior design, landscape, contractor, and public relations. Almost all of the new subsidiaries are managed by his staff who have experience in the fields. Pramote said his staff are very experienced in the fields related to the home-building business. If the company doesn't create new businesses to utilise their experiences, the company will lose them.

The company has opened business opportunities for its employees by setting up a joint venture with them. These firms include Four Interior, Four Colour Line, and Four Development.

"Although we are a medium-sized firm, we believe when we create business opportunity for our staff that will partly contribute to our sustainable growth in the long term. Meanwhile, our staff will see their own sustainable future, and have a secure feeling while working with us," he added.