FOR DISSEMINATION

Young Leaders Forum, November 24th, 2008 – Kuala Lumpur Convention Centre
Winning Hearts & Minds – AHMAD NIZAM SALLEH

WINNING HEARTS & MINDS

“Follow them and people will follow you”

PETRONAS YOUNG L EADERS FORUM 2008

November 24, 2008
Kuala Lumpur Convention Centre

AHMAD NIZAM SAL LEH

VICE PRESIDENT, CORPORATE SERVICES

Ladies and Gentlemen:

Assalamualaikum and good morning to all.

It gives me great pleasure to stand here before you – a very young and vibrant crowd indeed.

I hope I am able to provide you some insights about "Winning the Hearts and Minds" and
share some of my candid moments and some of my own humble experiences, accumulated
over the past 27 years of my time in PETRONAS. Gosh. I think some of you are as
old............ I mean, as my career age in PETRONAS.

I also look forward to interacting with you over the course of this program.

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Young Leaders Forum, November 24th, 2008 – Kuala Lumpur Convention Centre
Winning Hearts & Minds – AHMAD NIZAM SALLEH

Having a vision and creating a shared purpose

Externally focused
Internally focused

Fortune 500
• Expansion into
over 30 RETURN ON
countries REVENUE:
• Expansion of other • Production of oil 2nd
domestic and gas from
downstream projects international RETURN ON
ventures ASSETS:
• Gas exploration • Refining
• Incorporation of & development
• Revenue from
overseas
2nd
PETRONAS on • Petrochemicals operations has
17th August 1974 • Beginning of
downstream gas • Logistics &
steadily PROFITABILITY:
increased
• Oil exploration & projects Maritime 5th
development
• International
• First PSC signed in Ventures Overall
1976 Industry
PSC Manager Global Player Ranking:
PSC & Project Manager/Operator -
Integration 95th
“Formative” “Developmental” “Globalisation” “New World”
2008
1970s 1980s 1990s 2000s
Image courtesy of MLNG: Signing Petroleum Agreements, 1968 2

Ladies and Gentlemen:

1. I am sure by now all of you are by now very familiar with this image. PETRONAS has
progressed by leaps and bounds. How did we get to this stage in the first place?

2. What was the vision of our Leaders at the time and how did the followers respond to that
vision? What were the trials and tribulations that our past and present leaders had to endure
to arrive at what we are today?

3. So many great and responsible people were involved and so many roles and
responsibilities undertaken. A good number became natural leaders, some were nurtured and
developed; some became good Coaches and some good Mentors. Whilst, at the same time
the majority, upon clarity of vision and mission, functioned well in teams and proudly became
Good Followers, Mentees and Coachees.

4. But then, throughout the evolution and transformation processes, the roles interchanged in
harmony in various dynamic situations, between Leaders and Followers.

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Winning Hearts & Minds – AHMAD NIZAM SALLEH

5. It is against those backgrounds that history was created and milestones achieved. That's
how the success story of PETRONAS take over of the Baram Delta operations in Offshore
Sarawak was created. The story continued with the subsequent leadership role, management
and operations of the LNG Business in Bintulu, Sarawak. These stories, amid all kinds of
difficulties and challenges, were so profounding. It touched so many hearts, it created new
hope and aspirations, it changed mindsets and shifted paradigms. It sets the momentum of
change. Today, I am proud to share that almost all facilities, Upstream and Downstream
where PETRONAS holds substantial equity, are managed and operated by PETRONAS
employees ( irrespective of nationalities).

6. Looking back, I personally believe the vision for our organisation – then and now is strong
and intact. The foundation of our organization was laid by those before us. A legacy was
created and must be passed on from generations to generations. We are now a Global
company, listed in the Fortune 500 at par with other multinationals, but happened to have its
parent company in Malaysia.

7. We must continue to build on our successes. Challenges cannot be used as an excuse,

nor a deterrent for us to carry out our duties and obligations based on the trust bestowed
upon us. It requires us to be resilient, adaptable and agile – we must continuously reassess
our strategies and anticipate changes and in times make adjustments in order to triumph. It is
definitely not something for the faint-hearted – BUT I am sure all of you have the will to
persevere and prevail!

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Winning Hearts & Minds – AHMAD NIZAM SALLEH

Vision – Creating Meaning

„ RESPONSIVE to the organisation’s needs

„ Provides MEANING to people’s (work) lives
„ Is MEMORABLE and easily understood
„ Leaders TOUCH A HEART before they ask for
a hand

Despi t e possessi ng di vi ne i nsi ght ,

“ The Mumbl er s” r ar el y pul l ed a
cr owd.

Image courtesy of MLNG: Signing Petroleum Agreements, 1968 3

Ladies and Gentlemen:

1. The achievements I have presented earlier would not have been possible without clear
vision and translation of such vision into strategies and its implementation.

2. Vision must be memorable and easily understood. That's the reason our present Vision: is
'Leading Oil and Gas Multinational of Choice'. Mission: We are a Business Entity. Petroleum
is our Core Business. Primary Responsibility is to develop and add value to this natural
resource. Objective is to contribute to the well-being of people and nation.

3. Vision alone will have no impact if it is not related to the organization's needs. We must
create and give meaning to what people do, the roles they played and what their
contributions mean PETRONAS role as a Business Entity and our role in Nation Building.

4. Meaning must touch the heart of people. Leaders touch a heart before they ask for their
hand.

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Winning Hearts & Minds – AHMAD NIZAM SALLEH

5. Clarity of vision, mission and our values are key to successful implementation of
strategies/action plans.

Clarity of purpose and mission

Is my
understanding of
the mission clear What am I
& consistent with supposed to
How do I start others?
the discussion? do?

Can I really
What deliver this?
approach
should I take?

En route to New York on an assignment

Ladies and Gentlemen:

1. As Leaders we must create and give meaning. As Followers we must seek not only
meaning but clarity of purpose.

In my early years, when faced with new tasks and assignments, I always felt the need to
seek out further information and understanding on the task at-hand. Granted that my
Leader’s then would share the purpose and objectives of such assignments, but I wanted
reassurance that my tactical decisions were indeed in-line with the overall aspirations.
2. I would like to term this as an example of Good Followership behaviours. Good
followership can be translated into commitment to excellence, greater courage and motivation
and alignment to achieve goals.

A good and strong follower will create a foundation to being an exemplary Leader. So,

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Winning Hearts & Minds – AHMAD NIZAM SALLEH

Ladies and Gentlemen, it’s ok to voice your concerns and step up to seek clarity, while at the
same time having your Leader reach out to you. Finding meaning is a two-way process; a
responsibility for both Leaders and Followers alike.

Inspiration – Walk the Talk

„ TRUST is the foundation of leadership

„ ENGAGE and UNITE teams
„ COURAGE – “calling a spade-a-spade”
„ CELEBRATE and OWN your team’s performance

RALLYING FOR CHANGE – the need to go back to basics

Ladies and Gentlemen:

1. If you recall my earlier slide ["Having A Vision and Creating Shared Purpose"] we have
witnessed that PETRONAS has achieved another record year in terms of performance.
Given the dynamic and at times, volatile environment coupled with more challenges coming
our way, we do not have many options but to focus on sustainability or at times survival. In
the process we may have to change the way we do things either planned or forced by
circumstances. When change is indeed required, it is also up to the leaders to rally the
support of the people around us – be it subordinates, peers, partners, and the likes.
Without every person’s commitment, achieving the targets and aspirations will be an uphill
task.

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Winning Hearts & Minds – AHMAD NIZAM SALLEH

2. From my personal and humble experience, I believe earning the confidence and trust of
others requires going back to basics – we ourselves need to have a high level of integrity,
fairness and demonstration of ethical conduct. Leaders need to be able to provide the
motivation and provide a real sense of purpose, and clarity in direction.

3. From my own personal experience:

i) Being open, honest and transparent:
It pays to be open - when a leader opens up, and is brave to share what he believes in and
demonstrates his for convictions, others will be more willing to share what they think and feel
too. In essence, when the pressure is turned on, great leaders will be at their best. Whatever
is inside them will surface as actions and behaviors.

ii) Engaging and uniting a team:

Leaders need to be able to engage and unite their constituents – everyone has to be able to
dance to the same tune.

iii) Appoint/identify a “change agent”. What needs to be done is to sometimes single them
out; and have an interaction that is personalised – take them out for coffee and sincerely try
to understand their fears and motivations, and also yours.

iv) Have courage and be brave when dealing with performance shortfall
Leaders need to be brave when making decisions on performance – to “call a spade-a-
spade” and be able to challenge unethical decisions and actions when the situation warrants
for it. We need to be able to be exemplary in everything we do and only by doing so can we
encourage people to behave likewise.

To me, “walking the talk” simply means you are highly reliable and dependable in delivering
on your promises and commitments. Promise what you can, and deliver what you
promise. This approach would lend to your credibility as a Leader. Do not make unrealistic
promises, and when things fall short than expected, be honest about things – don’t go
beating around the bush and ignite the culture of finger pointing. People can sense your

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Winning Hearts & Minds – AHMAD NIZAM SALLEH

sincerity, and will appreciate you for that.

4) “Celebrate” and “Own” your team’s performance:

Sometimes we always get caught up and purely focusing on how to manage
underperformance. But as Leader’s, we need to understand that acknowledging and
celebrating successes is a powerful tool for the Leader, and satisfying to the staff. We need
to understand that such acknowledgement has the potential to repeat and reinforce key
positive behaviours that would have led to the success in the first place.

And as a subordinate, there is nothing more gratifying than seeing that the Leader /Boss is
proud of the team’s deliverables and “owns” the performance of the team. This will help
foster trust, cohesiveness and greater team dynamics.

Inspiration – Humility
„ Do a SELF-ASSESSMENT
„ ENRICH self and others
„ Only secure leaders EMPOWER others
„ A Leader’s legacy is measured by
SUCCESSION

Ladies and Gentlemen:

1) Self-assessment
Sometimes, when you enter into a new position, what first needs to be done is to just look,

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listen and observe the surroundings – ascertain the dynamics and motivations of your new
team. But at the same time, you need to do a self-assessment on your own capabilities.
Do not be scared to admit that you do not know. What is important is to know what you do
not know.

You may suddenly doubt your own capabilities and confidence. Apprehension is always a
normal thing in new situations, but you need to take comfort that when the Management has
already identified and selected you as the best person for the job, why then are you having a
confidence crisis in yourself – your own skills and abilities?

“The best executive is the one who has sense enough to pick good men to do what he wants
done, and self restraint enough to keep from meddling with them while they do it.” –
Theodore Roosevelt

2) Enrich Self and Others

I am a firm believer of the benefits of being well-prepared and well-informed about the
situation at-hand. In addition, it also pays to spend time enriching ourselves with
knowledge of past events, history, or culture as it normally forms the basis to
progress. Today is achieved from building blocks of yesterday and tomorrow starts
today!!!

While we develop new talents, it would be most rewarding to expose them to the real world
of business – how strategies are designed, how deals are set, how customers are won, what
is the real meaning of insider status?

3) Empower Others
People’s capacity to achieve is determined by their leader’s ability to empower. No
matter how good you are, you cannot go at it alone. You need to have trust and faith that
your staff will carry out what needs to be done and deliver the results remarkably well. The
key is to have a high belief in people. And this, for any human being is some times the
hardest hurdle to overcome.

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At the same time you need to provide assurances from time-to-time that you as Leaders will
not let your people sink, without first extending a lifeline. Good Leaders do that, and not just
watch by the sidelines.

4) Leaders developing Leaders – Succession

Roberto Goizueta, former chairman and chief executive of the Coca-Cola Company once
said, “Leadership is one of the things that you cannot delegate. You can either exercise it, or
you abdicate it. But there is also another choice: You pass it on to your successor.”

And a legacy is created and reflected when “a person put his organisation into the position to
do great things without him”. So even when you have moved on to other new areas, but if you
had made the right decisions, spread the right culture, that environment would have been
institutionalised and will long outlive your own lives.

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Young Leaders Forum, November 24th, 2008 – Kuala Lumpur Convention Centre
Winning Hearts & Minds – AHMAD NIZAM SALLEH

Momentum
Behaviors
„ MOMENTUM is a Leader’s best friend
„ Encourage people to take INITIATIVE
„ Build RAPPORT
Mindsets

Assumptions

Beliefs

Values

Ladies and Gentlemen:

Rome wasn’t built in a day. You need to have patience to wait for the results to show. After
taking some time to create the vision for your organisation, you need to put the building
blocks in place – this requires preparation and motivation.

Leader’s need to be able to effectively and masterfully “read” and understand the
motivations of their staff. If motivation is needed – you may want to throw them a new
challenge. If they need encouragement – you may also need to consider a reward. If you
notice them getting lazy, you might want to inspire, amaze, amuse or even intimidate and
prod them.

Leader’s also need to remember that gaining momentum is one of the most fundamental
aspects of change management. And sometimes, how you build momentum is to first score
some victories (and celebrate them). Once the team’s confidence level has soared, you can
expect greater results from them.

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Young Leaders Forum, November 24th, 2008 – Kuala Lumpur Convention Centre
Winning Hearts & Minds – AHMAD NIZAM SALLEH

Key Take-Aways

LEADERSHIP = Vision x Inspiration x Momentum

Images from: various sources 9

Ladies and Gentlemen:

A Great organization like PETRONAS is definitely attributed to great leaders with great
visions.

I hope over the last few minutes, you’ve been able to digest and understand and take-away if
not all, but perhaps some of these statements:

ƒ The visionary is not a leader if he cannot also inspire.

ƒ The momentum-sustainer is not a leader if he cannot create a shared vision.
ƒ It is the leader’s ability to create a shared vision and to inspire the organisation that
sets him apart from the “manager”.

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Young Leaders Forum, November 24th, 2008 – Kuala Lumpur Convention Centre
Winning Hearts & Minds – AHMAD NIZAM SALLEH

ANYONE CAN STEER THE SHIP, BUT IT TAKES A LEADER

TO CHART THE COURSE

In facing the journey ahead:

1. Be courageous
2. Be well-prepared
3. Take time to enjoy the view

Thank You and Good Luck!

Puteri Zamrud Satu,

en route to Chita,
Japan
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Ladies and Gentlemen:

Thank you for your kind attention.

I look forward to further interacting with you and I hope you have a fruitful session and career
ahead.

Thank you.

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