Business

Saturday July 4, 2009

Interview with Lee Weng Seong

By ERROL OH


LEE Weng Seong remembers the day his father brought home a radio. It was nothing like today’s sleek digital gadgets that you can slip into your pocket. Lee’s father probably needed help to lug the radio into the house. It was the size of a cabinet, and was studded with chunky knobs and large dials.

More than that, it had the power to enthral a boy in Ipoh with an abiding curiosity about how things functioned. “It was a fascinating thing. I looked at it and wondered how it produced sounds, music and news. That was our first Philips product. It never occurred to me that I would work for Philips one day,” he recalls.

Close to 50 years later, he has clocked over two decades as a Philips executive and has become the first Malaysian to head the Dutch multinational corporation’s businesses here. Lee, 55, was appointed chairman and chief executive officer of the Philips group of companies in Malaysia on Nov 1 last year.

But back to the father. The son’s journey to the top job in Philips Malaysia began in the senior Lee’s dental parlour, or perhaps even earlier, at home, where the father always busied himself doing repairs. The point is, Lee believes that it was his father who sparked his childhood dream of becoming an engineer.

“He liked to take things apart and put them back together. He never let anything go to waste. If it didn’t work, he’d make it work. If a chair had only one leg, he’d fix it,” says Lee.

Dad was a registered dentist, albeit one without formal qualifications, having started back when dentistry in Malaya was more a trade than a profession. His job has also left a deep impression on the son, who now can still rattle off the steps in making dentures and gold teeth.

“I was always looking over his shoulder as he worked. It was wonderful. So I guess I was set up to be an engineer,” he explains.

An Asean scholarship for pre-university students brought him to Singapore, where he went on to study electrical and electronic engineering in university and where he stayed for another 30 years after graduation until his posting to Kuala Lumpur last year.

Power of advertising

Philips is not his first employer. Fresh out of university, he landed in a Texas Instruments subsidiary dealing with data processing in the oil exploration business. After several years there, he was ready for a change, and the opportunity came via a two-page recruitment ad.

It specified the various positions available, but Lee was hooked by a line right at the bottom that went something like this: “If none of the above appeals to you, but you are interested in coming to talk to us, we’ll be happy to chat with you.”

On why he decided to switch jobs, he says: “I was working in a technical area – computers and all that stuff. After five years working with machines, I thought maybe it would be nicer to work with human beings. Also at the time, I had started my part-time MBA course and I wanted to have a go at management.”

Philips hired him to do marketing and sales management in its data systems group. His focus was supplying front-office computer systems to banks. That kicked off his long career in selling.

When Philips divested its computer business to Digital Equipment Corp in 1992, Lee and the rest of the employees in that division moved to Digital as well. It did not take long for him to return to Philips.

Eager to take a break from work, he left Digital after two years or so. “Computers was a very stressful business and I decided I have had enough after 12 to 13 years in IT. For a few months, I was very happy just playing golf. That was the time when my golf handicap improved quite a bit,” he says.

But a call from his former manager at Philips ended those frequent sessions on the green. The ex-boss wanted him to join the medical systems division. That offer surprised Lee because he had not even realised that Philips was in the healthcare business. Still, he felt comfortable taking the job.

Part of that has to do with the social milieu of his university days, when engineering and medical students shared a hostel.

Says Lee: “I spent four years living with a lot of friends who ended up as doctors. Some of them are high-level people in government and private practice. And I continue to have good relations with a lot of these friends.

“Some of them became my customers, but I assure you that they made it very difficult for me to get their business. Friends are not easy to sell to. I’m very interested in medical. I have read a lot and I’ve got to know quite deeply about some aspects of the field.”

The Malaysian challenges

The medical systems division offered plenty to hold Lee’s interest. Philips operates in the diagnostic section of the medical spectrum. It uses various technologies – for example, X-ray, ultrasound, magnetic resonance, CT scans and nuclear medicine – to help doctors look into the human body to figure out the patients’ ailments.

“That’s the business we’re in and that’s the part which fascinates me. It can really help the doctor to give a proper diagnosis so that the patient can be helped earlier. That’s important. And the technologies have been developing so fast,” he adds.

Prior to his move back to Malaysia, he was responsible for the company’s overall healthcare business in Asean and Pakistan.

Now, as chairman and CEO of Philips Malaysia, he is again required to acquaint himself with new business areas. In this case, he provides leadership not just in healthcare but also two other sectors of the company – lighting and consumer lifestyle.

Lee does not see that as much of a hurdle. In fact, it was virtually an instant yes from him when he was given the chance to come back to Malaysia.

He explains: “I knew it was a great company here because of my dealings with the Malaysian organisation over the last eight years in my regional role based in Singapore. The Philips brand in Malaysia was extremely strong across all our sectors.

“I saw it as an honour and a privilege to take what my predecessor (Dr Rajah Kumar) had built and continue to develop it. That’s my challenge.”

That means making sure Philips remains visible through its products and services amid the blurry economic conditions. To do that, it must understand and respond quickly to what customers want. For example, Lee points out that consumers are now more empowered in make choices.

“In the past, it was about introducing new and innovative products with better design features at the right price point. Today, consumers are more discerning; they demand products that address their environmental concerns and enhance their lifestyle, and that are aesthetically pleasing as well,” he adds.

Going local

But what does it mean to be the first local to take the helm of Philips Malaysia? Lee is convinced that as a Malaysian, he brings something different to the table compared with an expatriate.

He says: “Philips realise that business is local, and a local’s perspective is very important. The company values our insights and contributions, and it takes these into account when it develops strategies going forward, especially in those markets.

“In the old days, we used to fly in expatriates to assume these roles. As a company, we recognise that in some countries, there is local talent who can step up to take on those roles. Philips was consciously looking for local talent and I happened to be in the right place at the right time.”

Nevertheless, he concedes that he feels the full weight of expectation, as people are watching to see how he works out in his current capacity.

It helps, though, that he could hit the ground running because the working conditions in Malaysia and Singapore are similar. In addition, in his previous regional job, he was already travelling in and out of Malaysia a lot.

“The biggest adjustment is not work-related; it’s getting used to the traffic. You have to plan your trips. You can’t be sure what time you’ll get there. That’s the worst part,” he laments.

Still, in leading Philips Malaysia, Lee expects to fully draw on his years of experience at the MNC. He says he is happy to have stayed with the company for over 20 years because he has gained much from his bosses.

“When I look back at my career, I feel blessed to have had managers who have helped me develop my management philosophy, particularly those I worked with in my early days in Philips, my formative years as a manager. I learnt a lot and I continue to put to use the learning from those days,” he adds.

That philosophy, he explains, is based on respect and trust.

“You cannot demand trust. You must demonstrate that you deserve it and you’ll be rewarded with that trust. Empowering the people is also very important. I can’t do everything myself. I have to trust people and empower them to do it. When they do well, make sure they get the recognition,” he says.

“This doesn’t cost us money. It’s almost common sense, but you’d be surprised how little of it is evident sometimes.”

Lee’s wife and two children are in Singapore and he commutes between KL and the island state almost every weekend. “It’s something I’ve grown used to. In fact, I kind of enjoy that I have a bit of time to myself while I’m on the way.”

When he’s not working or with his family in Singapore, Lee is usually at home reading or surfing the Internet for news articles. He has a top-of-the-range television – Philips, of course – but he seldom watches.

Not surprisingly, his favourite Philips product is the SoundBar, an integrated home theatre system. It is light years away from a bulky 1950s radio, but it will captivate anybody who is wired to be an engineer.

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