A Listening Leader
Conference: Journey for Leadership
Inteview with Tan Kin Lian, Chief Executive Officer, NTUC Income

1. A LISTENING LEADER

CEO Mr. Tan Kin Lian of NTUC-Income is not an unknown personality in Singapore. His story is sought after by various media - the press, the magazines and the TV. I had the pleasure of interviewing him in his office whilst sipping tea with him. As we arrived in his office, he was caught busy with his computer. One may be wondering if he was surfing the net, playing computer games to eliminate stress or replying to emails. The latter seems to be the obvious answer especially with this busy CEO. One thing I admire about Mr. Tan is that, notwithstanding his heavy schedule and stress in running such a large group like NTUC-Income, he is always smiling, humble and calm.

Since 1977, Mr. Tan has been the CEO of NTUC-Income, a position he is holding for 28 years now. Since assuming this position, the insurance cooperative's asset base has escalated from $40 million to over $13 billion in 2004. He served as Chairman of the International Cooperative and Mutual Insurance Federation (ICMIF) from 1992 to 1997 and is also Chairman of the Singapore National Cooperative Federation from 1996 to 2002. In 1978, he was conferred Friend of Labor Award and obtained the Public Service Medal in 1983, Rochdale Medal in 1992, Financial Personality of the Year award in the year 2000, International Management Action Award in 2001, Public Service Star in 2004 and was nominated the Leading CEO, in the year 2005.

In an interview with Mr. Tan Kin Lian, I have gained the understanding that he lays a great emphasis on good customer service and advocates constant interaction with the customers. What all customers want is added-value and there are only two ways to give added value. One, giving the customer more than they think they are paying for or two, Mr. Tan takes great pains to ensure that his customers pay a fair price for the insurance they need since NTUC is a cooperative.

Studies have shown that the top 2 percent companies generally are effective not because they executed best practices well nor because they make the most phone calls or have the best processes. They simply understood the truth about trust - a phenomenon most companies need to apply to their business if they wish to grow:

  a.. People generally do business with people they liked
  b.. They like people they trust
  c.. They trust people who have a detectable level of compassion and competence.

However, trust is earned overtime. Trust is earned when they feel and heard which is more than just listening.

Mr. Tan does not believe in shortchanging others. He just wants to maintain the good name of NTUC-Income, as a cooperative insurance that offers good deals to its customers. Straightforwardness is what he looks for in his people and his customers; therefore he encourages his customers not to inflate their claims in order to ensure that they can receive their compensation speeditiously.

NTUC-Income should be the insurance company they could trust. He serves as an excellent role model to his subordinates. His exemplary passion and care as leader of the organisation not only for his staff but also his customers do go a long way to move NTUC-Income up the corporate ladder, to become the largest insurance company in Singapore.

A strong believer of excellent customer service, he is aware that customers will be attracted to his organisation only when it gives value to its customers in terms of low price and benefits, which is to give them value for money. Even PM Mr. Lee Hsien Loong advocated the importance of customer service in business when delivering his National Day Speech, last year. Taking time to listen to customers and helping them to spend their time, effort and/or money efficiently is his passion. This is what good service is all about and what business is and always has been about. Those individuals, firms, businesses or organisations that carry
on this tradition will be the ones that survive in the 21st century.

For companies with excellent systems in place, the next frontier in customer service is delivering the "Wow" factor i.e. handling the unexpected creatively. I have observed that companies and professionals practising creative customer service successfully have two things in common. The first is that they care about people. Management cares. Employees care. Everyone cares a great deal about people. They like to help people solve
problems. In fact, not helping people would be like kicking a stray dog. The second component is that employees must have authority. Even when people care and if their hands are tied, they can't help. In addition, employees who aren't especially 'caring' might be motivated to be creative for customers simply because it feels good to exercise their authority.

2. DEMONSTRATING CUSTOMER SERVICE EXCELLENCE

Despite his busy business schedule, Mr. Tan makes sure he answers customers' complaints within an hour. For those that require investigation, he makes it a point to email to the customer that his manager will look into the matter and will revert back to him or her. In this way, he keeps customers at ease and makes his customers know that there is someone in NTUC who cares, especially when the reply comes from the CEO bearing his personal signature. He stayed up to address his customer's complaints even as late as 11.30 p.m., much to my amazement.

When Mr. Tan came on board at NTUC-Income, his role was to identify strengths in the organisation and to make use of them effectively whilst redressing the weaknesses of individuals which he does by training them to find solutions to their problems. Being a co-operative, NTUC-Income is there to serve the people according to their needs at the lowest possible cost. To fulfill this objective, he ensures that people are placed in the appropriate positions so that they can be efficient in their jobs.

He is also open to suggestions of his team and for those proposals he could not agree to, he exercised care to ensure that he is not judgemental but instead gives his views. This is what I call a wise leader. He said, "Whether a decision made is right or wrong, the assessment is in the results." He is someone who is not judgemental but always gauges a situation and responds accordingly. There is truly no right or wrong answer.

He teaches others to have a positive mindset and advises them to take note of their strengths and weaknesses and work on them. Somehow too many people go beyond their boundaries. What is right is to help people see the possibility. In everything that he disagrees with, he makes it a point to express his views and reasons instead of being judgemental. Everyone has the right to give their views. There is no right or wrong answers. Right or wrong is determined by the actual results.

3. RESTRUCTURE

When he first came on board, he did not straightaway restructure the organisation. He allows people to perform their best and use their strengths to bring glory to the organisation. He trains his team regularly and makes sure there is succession planning. Though the level of customer service is low in Singapore, NTUC-Income is proud to boast of an excellent customer service and the ability to handle difficult customers tactfully.

4. QUALITIES OF AN ENDURING LEADER

On the qualities of an enduring leader, Mr. Tan is of the view that a leader must have a vision and the passion to pursue it. The vision should be based on the right values, preferably those that are aimed at working for the benefit of others and not for personal gain. All great leaders in history work for the benefit of mankind. We need to be a channel of blessing to others at all times.

The leader also must be willing to take charge, amidst uncertainty. To reduce the uncertainty, the leader should get the relevant facts as quickly as possible. Where the facts are not available, the leader may have to rely on the views and judgement of reliable people. The leader should also be able to discern and distinguish the good from the bad.

"A leader", said Mr. Tan "must be willing to act promptly instead of procrastinating." Most leaders tend to procrastinate than to address the issue instantly. If there is uncertainty, the leader can monitor the situation and be ready to adapt the strategy based on the actual results.

All certain and less critical tasks should be delegated to subordinates. This allows the leader to focus on the more important task that has a higher degree of uncertainty.

5. PHILOSOPHY OF RUNNING BUSINESSES

Many people have in one way or the other influenced the way Mr. Tan runs his business. He reads about them in the books and articles. He admires leaders who have built up their business using the following values:

  a.. Giving the best value to his customers
  b.. Be frugal in spending money to run the business so as to keep the cost low, and create the right culture among the people working in the organisation.

The business leaders whom Mr. Tan loved to exemplify would be Sam Walton of Walmart, Ingvar Kamprad of Ikea and John C Bogle of Vanguard .

6. COMPETITION

Which company does not face competition? Practically all companies face competition, some more, some less. The competition Mr. Tan faced generally comes from insurance companies, including global companies that have entered into the Singapore market in recent years as well as banks and fund managers, who provide alternative products for long term savings.

Strategies to overcome the challenges

  a.. Offer the best value to customers
  b.. Keep the cost low
  c.. Communicate actively with the customers
  d.. Educate them to make the right choice

7. GROOMING LEADERS

His approach to grooming the leaders is not sending them to the best courses in the University but merely by sharing the right values with them, developing the culture of the organisation, focusing on doing the best for his customers and co-workers rather than being self-centered, helping co-workers improve their competency and encouraging them to take risk through trial and error so that they can learn and improve. He sets the strategic directions for them.

He said, "There are many great leaders in Singapore who help to build the Singapore of today. They are great in their own ways, including ordinary people that strive hard to build a business and to take care of their families.

8. NEXT WAVE OF LEADERSHIP

Mr. Tan believes that the next wave of leadership will be people who address the social issues and find the right ways to solve them. His social challenges are three-fold:

  a.. How to cope with the uncertainty of employment
  b.. How to save for their future needs especially for retirement
  c.. How to start a family.

He is confident that insurance companies can help people cope with these uncertainties through the right products but this has to be backed by educational and practical measures to address the real concern of the people.

9. HIGH AND LOWS IN CAREER AND A PERSONAL LIFE

In trying to discover the highs and lows in Mr. Tan's career and personal life, he added that everyday is a challenge in a continuing journey of a leader. There are no significant high or low points. On the contrary, it comes in small increments.

10. BEYOND BUSINESSES

Going beyond business, Mr. Tan enjoys educating people on the right values in life and teaching them how to cope with the challenges of life. He spends a fair amount of his time delivering talks and educating people and his joy is to be able to convince people and aligning them. As a young lad, he aspired to be a teacher but on growing up, he has found another path - being the Chief Executive Officer and spending a fair part of his time to teach which indirectly fulfills the aspirations of his youthful days.

11. MOTIVATION

His motivation in life is to have fun taking a challenge and making it work. Hence for things that were impossible, he takes concerted efforts in making them possible.

One key factor that contributes to his success today is "Focus" - a focus on how to keep improving by learning how to apply new ideas and how to make life better for everyone.

Overall, he enjoys his work. There are some who remarks that he does not need to worry, as long as he enjoys his work. Others express that you would need holidays if you hate your work. But for Mr. Tan he enjoys his work and especially enjoys receiving healthy complaints of customers. He encouraged them to write in freely to express their thoughts.

Two weeks ago, the NTUC-Income Call Centre was nominated the best call centre in
Singapore. At the Call Centre, his team shares their experiences with their customers, thereby leaving a deep impression in their minds and hearts. As you may be aware, call centres generally encounter the worldly difficult challenge of making the call centre customer service oriented and a place to help people find a solution, whilst at all times observing continuous endurance.

12. LEISURE TIME

He spends his past time relaxing sometimes through music and at other times he just let his mind be free. The one thing that he holds dearly in life is to create an environment where everyone can be happy and considerate. At other times he chooses to be on his own, away from the hustle and bustle of life. What irks him most are selfish and unreasonable people.

13. WORK LIFE BALANCE

Mr. Tan has no fixed family time but he will be there for his family whenever they need him. The little time that they are together, they enjoy doing things and spending time together.

14. CONCLUSION

In conclusion, Mr. Tan feels that everyone in this world should be frank and have the liberty to express their thoughts without reservations rather than having to anticipate what they think.