An unforgettable journey: a story

of corporate-social transformation
of Huntsman Tioxide (Malaysia)
Nik Maheran Nik Muhammad, Marhaini Hassan, Suryani Awang and Anidzan Ariffin

Nik Maheran Nik

Muhammad is an Associate
Professor and
Marhaini Hassan,
Suryani Awang, and
Anidzan Ariffin are all Senior
Lecturers at the Universiti
Teknologi Mara, Kelantan,
Malaysia.

The capacity for recognizing our own feelings and those of others, for motivating ourselves, for
managing emotions well in ourselves and in our relationships (Daniel Goleman).

Chance? Luck? These two common, yet powerful words are NOT a guarantee to success.
Most people of greatness have gained their success by making the decision to become the
person they dream of becoming and not because of mere luck. These great people choose to
become the person they want to be simply because of their own belief a belief of having the
ability to be better and to be able to obtain what they have been aiming for, and having a
strong determination to succeed. In order to be successful and to project the image of
greatness, one needs to start sowing the seeds of beliefs into becoming great. Of course,
there are dozens of obstacles on the journey to success, but fear no more as ones inner voice
is telling one to get rid of the self-doubt and the insecurities. So, with these life philosophies in
mind, Tuan Haji Rozano Saad, one of the leading men of Huntsman Tioxide, sighing with
gratification, smiling with self-satisfaction and quickly turning on the ignition of his Alfa Romeo,
slowly stepping on the accelerator pedal, moving on into Teluk Kalong, Kemaman,
Terengganu. To him, there are no more second thoughts. He has finally decided to stop
wasting mental energy on things which he did not manage to do, but decided to settle on his
action plans and rectify the deplorable conditions of Huntsman Tioxide. Furthermore, he
sensed that there has been a unique calling in achieving these goals. Rozano, a man of
unremitting triumphs believed he could enhance his own performances while at the same
time raising the living standards of people around him. This was true enough, for at the end of
the day, he has made a significant contribution, and Huntsman Tioxide is now proudly moving
forward.

Huntsman Tioxide Malaysia (HTMAS) the new beginning

Many years ago, there was a well-known chemical company commonly called, Huntsman
Tioxide, on the verge of management deterioration and announcing its major expansion in
Asia (see Figure 1 for the chronology of HTMAS). Its Board of Directors, mainly consisting of
expatriates, voted for Teluk Kalong, Kemaman, Terengganu to be their newest depot. It was
the chosen one mainly because of its heavenly and picturesque views. Furthermore, as it
was seen as having potential for economic growth, the government decided to inject a boost
in the development such as allocating a portion of the yearly budget into this area.
Disclaimer. This case is written
solely for educational purposes
and is not intended to represent
successful or unsuccessful
managerial decision making.
The author/s may have
disguised names; financial and
other recognizable information
to protect confidentiality.

DOI 10.1108/20450621111187362

Though such a story of a poorly managed company had never been revealed, Huntsman
Tioxide continued making initiatives such as upgrading and expanding the companys
manufacturing facilities and the like, not realizing that this had become an added advantage
to the locals. As soon as Tioxide plant had been set up, developments one after another
overtook the once barren land of Teluk Kalong. Nevertheless, the output of the company was
not impressive, although billions of dollars had been invested in the project. Hence, an idea
was formulated; Huntsman needed a new figure with strong leadership ability to steer the

VOL. 1 NO. 4 2011, pp. 1-24, Q Emerald Group Publishing Limited, ISSN 2045-0621

EMERALD EMERGING MARKETS CASE STUDIES

PAGE 1

Figure 1 The chronology of events: HTMAS

4 Aug 1982 - TAPL Malaysia was incorporated

18 July 1989 TAPL Malaysia was renamed
to Tioxide Malaysia Sdn Bhd. (TMAS)
28 July 1989 Tioxide board sanctioned the
construction of 50,000 tes TiO2 factory in
Teluk Kalung
11 November 1989 landfill site was completed.
21 October 1990 first steel was erected on site
21 April 1990 - initial intake of 42 professionals
were sent to Burnie and Grimsby for their
basic training in TiO2 manufacturing for about
8 months
11 December 1990 Cookson Group sold all
their shares in Tioxide to ICI
23July 1992 - first tonne of pigment packed
29 June 1999 Tioxide was taken over by
Huntsman and renamed Huntsman Tioxide
20 October 2000 Capacity uprating project
was approved to increase name plate
capacity to 56,000 tes
31 Dec 2000 Production packed 51,108 tes

companys direction back onto the right path. This new idea would tally with the fact that
leadership has to change in order to change the direction of an organization.
So, who would be the right figure to rebuild and restructure this giant, foreign company? Haji
Rozano Saad just happened to be there at the right time and at the right place.
Cross-examined by the local management team, Rozano, with his unique characteristics,
was the perfect candidate. The management team sensed people would benefit from
Rozanos unique personality and was convinced that no one could contribute as much as
Rozano. Moreover, Rozano was seen as an influential type of a person. This quality was
crucial in order to navigate people into participating rather than just being the onlookers,
waiting patiently by the side line.
The mat salleh[1] co-workers teasingly observed Rozanos actions. He aware that they
were not convinced of his capability and were unsure of his ability to bring forth a new order in
the company. They were dismayed by the fact that he was a local. What could a local Malay
man possibly do in operating a western-dominated, large company like Huntsman Tioxide?
The company which was once controlled by them (so to speak), unfortunately suffered great
losses, and did not show any improvement. These predecessors were simply too proud to
admit that they did not manage to perform to the level that had been expected of them. They
could only be best described as cakap tak serupa bikin[2].
Obviously these so-called superior mat salleh did not know what the man they were teasing
could do. They lacked the most needed character to bring change to the community of
Kemaman: the humble Malay roots that could win the hearts of the kampong people and
would eventually raise their standards of living. Obviously these superiors would not want
to visit the villagers in their huts and befriend them. Would they become comfortable to
duduk bersila[3], use hands to eat, instead of forks and spoons and join the meal served in
a big tray shared by everyone? Would they give up golf and go fishing and cycling in order to
befriend and join the men in the village? Needless to say, it was humble Rozano who fulfilled
those pre requisites before the greater task was undertaken.
Rozano was a man with no superhuman abilities, but he was filled with a strong will,
imagination and a readiness to explore the new world of Tioxide, consequently ignoring the
warning that it was a mission impossible. He firmly believed that he would be able to
contend with the deeply rooted prejudice of his predecessors, create a new life for the
company and make it a reality even though others might just laugh in his face and tell him to
forget about it.

PAGE 2 EMERALD EMERGING MARKETS CASE STUDIES VOL. 1 NO. 4 2011

He was determined to move forward. Indeed, Rozano wanted to prove that he was not an
ordinary Melayu[4] but a Melayu with potential and a readiness to execute his greater power.
He was never hesitant in moving forward and had not had the slightest idea of not fitting to the
industrys standard. He did not stop because to him all these pessimistic ideas would
definitely kill off his missions.
His ICI engineering background was a blessing. Rozanos engineering norms gave him the
skills to be a commander, a pacesetting leader, which gave him ways to devise awareness of
responsibilities and standards among his subordinates. To him, standard should never be
compromised. Giving attention to details, being precise and believing that small things do
matter were all his secrets to success. Rozano was then able to direct his people in a new
direction and dimension.

Teluk Kalong Tioxide plant history down the memory lane

Back in 1985, a decision was made by then Tioxide group from the UK to invest in a titanium
dioxide plant in the ASEAN Region. Three countries were chosen and a survey was
conducted. Sufficient infrastructure coupled with the stable political and socio-economical
factors, gave Malaysia the edge. The Tioxide Group decided to build the plant in Teluk Kalong
Industrial Area, in Terengganu, Malaysia. An Environmental Impact Assessment was
conducted and the plant was successfully erected in 1991.
Huntsman International took over the equity of Tioxide Malaysia Sdn Bhd in July 1999 and the
entity has been called HTMAS since then. Huntsman Tioxide, is a company in one of the
largest producers of titanium dioxide pigments. It employs over 3,000 people worldwide and
has factories in seven countries with a total nameplate production capacity of over 550
thousand tons per year. Its product, titanium dioxide pigment provides whiteness and opacity
to a vast range of everyday products from coatings and plastics, to paper, inks and even
cosmetics and food.
The Teluk Kalong plant, being the most modern sulphate route titanium dioxide plant in the
world, was constructed with the capability to fully neutralize wastes, to meet the strictest
Environmental, Health and Safety Standards. Indeed, the latest proven pollution-control
equipment is installed to ensure that no environmental degradation will result from its
activities. On-going operation of pollution-control equipment represents nearly 20 percent of
production costs.
Achievements
The Teluk Kalong plant which is situated in an industrial area of Terengganu on the east coast
of Malaysia currently has over 200 employees (Figure 2).
The plant has a production capacity of titanium dioxide of 550,000 tons per annum (Figure 3).
Approximately, 80 percent of its production goes to export markets in the Asia Pacific region.
Huntsman Corporation NYSE: HUNTSMAN is one of the worlds largest chemical companies
(Figures 4-6).
The average profit of Huntsman was approximately MYR 48 million from 1992 until 2007
(Figure 4) and it reached MYR 110 million in 2005, the highest achievement during that
period. For the first six years of its commissions, Tioxide Malaysia faced losses but this had
changed by 1999 when locals took over the company. This is a great success for Rozano and
his team as the profit kept increasing from then on.
With Rozanos influences and newly introduced visions for the company, Huntsman Tioxide
gradually showed improvement in profits. Nevertheless, Rozano never sat back and relaxed.
There was more to be learned and explored and the metamorphosis would not take place
over night. This stresses the fact that in order for a company to be successful it takes years of
perseverance and self-discipline. This is Rozanos bed rock of life and he made this known
to everyone under his leadership.

VOL. 1 NO. 4 2011 EMERALD EMERGING MARKETS CASE STUDIES PAGE 3

Figure 2 Number of employees

280
267

270

271

268

265

260
250

243

240
230

222

220
208

210
200

209

210
204

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Huntsman Malaysia (2009)

Figure 3 Yearly production from 1992 to 2007

70
60.62 61.43 60.49 56.86

60

54.65
51.11

50
44.17 44.42
Ktes

40

41.49

46.79 47.00

44.22

35.31 36.61

30
22.85
20
10
2.50
0

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Source: Huntsman Malaysia (2009)

Figure 4 Huntsmans yearly profit 1992 -2007
140
130
120
110
100
90
80
70
60
50
40
30
20
10
0
10
20
30
40
50
60

110
89
73
62

RM million

53

48

38
20
8

20
33

30

30
44

1992

1993

1994

1995

Source: Huntsman (2009)

99

95

PAGE 4 EMERALD EMERGING MARKETS CASE STUDIES VOL. 1 NO. 4 2011

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Figure 5 Cost, production, productivity, quality

180

120

160
100
140
120

80

100
60
80
60

40

40
20

COST

SAFETY

PRODUCTIVITY

PRODUCTION

20

QUALITY
0

0
93

94

95

96

97

98

99

00

01

02

03

04

05

Figure 6 Production and quality

TK PRODUCTION & QUALITY
180
90
160
80

140

70

100

60

%PR

TE/DAY

120

80
50
60
40
40
30

20

20

0
93

94

95

96

97

98

99

00

01

02

03

04

05

Then, to make things work, Rozano invited his team of managers to gather information and
share ideas. This is to say that there should be a two-way communication and a give and
take technique to make the organization stronger.
Rozano, as the chief commander continued to steer the wheel in the right direction. With
patience and determination, he was able to avoid the reefs in the wide ocean and emerged

VOL. 1 NO. 4 2011 EMERALD EMERGING MARKETS CASE STUDIES PAGE 5

with outstanding results. This is shown from all the recognitions received by the company
during his reign (Figure 7).
The social setting
The above recognition and awards are all the evidence of Huntsmans success story. Thus, to
many of the Teluk Kalong breed, they would have no choice but to agree to the fact that
Huntsman has done wonders to the environment and social setting of their village. Since the
existence of the company, Kemaman has been taken over by storm over the fact that it is fast
developed. It is no longer a common scene to see the Kemaman dwellers, sitting on the
broken benches by the beach munching on the spongy keropok lekor[5] claimed to have
originated from Losong, a popular keropok lekor spot in Terengganu. And Rozano, once an
unknown Malay man has brought tremendous changes into the lives of the villagers and has
become an inspiration to many of the Teluk Kalong kampong[6] folks. This one, particular
orang luar[7] has brought miracles to this once a deserted, unheard of site. This once remote,
quiet town is now very advanced, busy and rewarded with lots of job opportunities. Most of
the local youngsters would make it their dream to be part of the Huntsman family. However,
there is a story behind this new, modern life for people of Teluk Kalong. Yes, a painful story, yet
meaningful enough to be treasured. And Rozano can vividly remember this.
It was early morning, Rozano looked up just to witness the bright sunny day. He felt the cold,
fresh breeze from the sea on his way to work. Feeling alienated in this new place, Rozano was
not sure of where to stop for a quick breakfast. However, the sight of a small coffee shop with a
few men having roti canai[8] was attractive enough to him, so he pulled over. Upon finding the
right seat, he requested for roti kosong[9] with teh tarik[10]. He thought he was loud but polite
enough to the coffee shop owner, so he waited patiently. But then he realized it was taking too
long for a simple roti canai to arrive. Assuming they did not hear him the first time, he asked
once again. Then he added, nak kena cepat[11]. He thought that could justify his request

Figure 7 Rozano holding a Prime Minister Quality Award 2004

2002/2003 AWARDS

TIOXIDE GROUP SAFETY CUP WINNER

TIOXIDE GROUP SAFETY SHIELD WINNER
TIOXIDE GROUP QUALITY GOLD STAR WINNER
TIOXIDE GROUP QUALITY SHIELD WINNER
CICM RESPONSIBLE CARE PROGRAMME AWARD
MITI INDUSTRY EXCELLENCE AWARD
PMQA SPECIAL AWARD
TRENGGANU BEST FACTORY AWARD DYMM SULTAN
TRENGGANU

Rozanoholdinga Prime Minister Quality

Award 2004

2004 AWARDS
CICM RESPONSIBLE CARE PROGRAMME AWARD
ACCA ENVIRONMENTAL REPORTING
TIOXIDE GROUP EHS & PRODUCT STEWARDSHIP
PRIME MINISTER QUALITY AWARD (PMQA) 2004

2005 AWARDS
CICM Responsible Care Awards 2004 - Code: Pollution Prevention ~
Gold Award
CICM Responsible Care Awards 2004 - Code: Community Awareness &
Emergency Response ~ Merit Award
TIOXIDE GROUP SAFETY CUP WINNER
TIOXIDE GROUP SAFETY SHIELD WINNER

2008 AWARDS
TIOXIDE GROUP QUALITY WINNER

PAGE 6 EMERALD EMERGING MARKETS CASE STUDIES VOL. 1 NO. 4 2011

for a quick order. This time the coffee owner responded, but the answer was beyond his
expectation. He was asked to go to another coffee shop if he wanted it quick.
To some, such an incident might make them reconsider their decisions to join the people in
Kemaman. Why was their language so unpolished? Was that part of their culture?
However, being Rozano, despite all these questions, he was wise enough to realize that
retaliating towards them for trivia such as that, could only hinder him from attaining his goals.
After all, what choice did he have? He left the coffee shop with feelings of disappointment,
which made everyone noticed this out-of-place man.
Should he answer back, making a sarcastic remark to the old, helpless coffee shop owner? If
he did, would not that only portray a childish, immature behavior? Or was it a mistake for him
to be composed and patient enough even though the coffee owners response was
unacceptable and impudent? The roti canai incident was just an unimportant matter which
could be easily swept under the carpet and be forgotten. The feelings of dissatisfaction on not
getting the right treatment portrayed Rozanos personality.
At work, Rozano did not want to be viewed as a coward. He was not the type of person who
was unnecessarily too patient and was aware that doing so would land him into venturing
beyond the safe zone; the choice he was expected to make to ensure his vision could be
realized. Surely, there was always a soft voice that kept whispering into his ears that by
venturing beyond the safe zone, would lead him to failure. Aiming to reach the stars, Rozano,
never allowed any negative thoughts to sabotage his mind. He continued to stay firm with his
tenacity that unwise actions would lead to failures. He believed that an ability to handle any
hiccups would simply mean an added wisdom. Certainly, there would be other more serious
incidents which would test his patience.
Definitely, making mistakes while climbing up the ladder to success is common, for it is part of
the learning process. He firmly believed that Winners never quit and quitters never win and
he would not repeat the same mistake the next time.
His belief and stance towards the world which is different from others has given him an
advantage when he was confronted by hurdles in his early stage of complying with his own
promises that he would create a better quality of life, especially for the people of Teluk Kalong.
This same belief and stance prepared him for unexpected events, and allowed him to always
keep things under control.
First, the locals which consisted of a fishing community bombarded Rozano with the fact that
he was poisoning the sea life. The sea life was their main source of income and they were not
happy that their income was affected by the existence of this foreign company. Yet, he did not
despair but hoped that one day these people would accept its existence. Rozano understood
their dissatisfaction well. Therefore, he worked even harder to prove to the locals that the plant
was giving no danger to the community at all. As a start, Rozano encouraged his co-workers
to buy loads of fish from these fishermen so as to show that they were not in great threat.
Second, when there was another complaint coming from the durian planters of Kijal, a nearby
town that their durians were no longer in high demand due to the fear of intoxicated durians,
Rozano and his team bought gunnies of durians from them and even put up a feast. They
invited the locals and ate pulut durian[12] together with them. These persistent efforts finally
earned him the trust of the locals of Teluk Kalong. This reminded him of the saying, Where
there is a will, there is a way.
These positive outcomes, however, were never viewed by Rozano as a result of him alone. He
also gave credit to other people whose contribution to the company should never be taken for
granted. Aziz Zabidi, his second man, is one of those who deserved the credit. To Rozano, it
was a blessing when his views on many matters were always shared by Aziz. Their similar way
of thinking has greatly helped them to smoothly manage the company in numerous ways.
For one, Rozano and Aziz Zabidi, were firm believers that the communitys perceptions
towards the company were of utmost importance, thus, any misconceptions or
misinterpretations must be corrected from the start. For that reason, they needed to know
how the company was perceived by the people of Teluk Kalong. So, a survey was carried out

VOL. 1 NO. 4 2011 EMERALD EMERGING MARKETS CASE STUDIES PAGE 7

and the results revealed that majority had the wrong ideas of the companys activities merely
because of the companys name which contains the word toxic. Taking this seriously, they
both knew this incorrect perception could not continue.
First, they ensured that the companys ambassadors (Figure 8) played their roles well. These
ambassadors would have to identify negative comments and diffuse them right away.
Unlike some other companies which would usually go to press and media to make statements
or corrections, the management of Huntsman believed that good rapport with the people of
Teluk Kalong had its own far reaching effects. As such, they continued doing community work
such as gotong-royong[13] which made people realize the true facts about Huntsman.
Similarly, a diving session was organized every year with the fishermen and school children
and many others were invited to join. They took video cameras under the sea and shared the
footage with the village folks who later realized that nothing was to be worried about. No
damage was made to the sea, thus, there was no reason to accuse this chemical plant of
threatening the environment.
After having the programs repeated many times, Rozano and Aziz could see how the
peoples perception was improved over time. The event helped to dispel all sorts of negative
thoughts that the plant was contaminating the environment. To prove their concern in the issue,
the company engaged a consultant from the UK to carry out a study on the ecology of the
species in the area. Having the study conducted every year, they had no objections to reveal
the findings to the public. In the end, this costly effort started to show its positive results. There
was no more fear among the people. Since then, Huntsman has gone through a new phase in
its life. The people now welcome the company with open arms.

The dual purpose

Production and social responsibility
Now that the company was accepted by the people of Teluk Kalong, the company could give
more focus to its operations and aims to achieve its vision. From its inception in 2000, HTMAS
had two purposes production of materials and social responsibility to the community,
particularly on environmental issues. These two aspects had become so important to the
company that Rozano was once quoted as saying:

Figure 8 The Ambassadors

PAGE 8 EMERALD EMERGING MARKETS CASE STUDIES VOL. 1 NO. 4 2011

Stakeholders expectations are a driving force in Huntsman Tioxides approach to environmental

management [. . .] We believe society has made its expectations quite clear and it expects
business to play a leading role in ensuring sustainable development. We are playing our part in
developing practical ways to clarify and manage these issues (Tuan Haji Rozano Saad, Site
Director Operations).

The above statement has clearly indicated that the companys responsibility for the
stakeholders and society has been the main concern of HTMASs management. The
companys progress, therefore, must go together with HTMASs Vision and Mission Statement
which aims to be a valued member of the community.
No doubt, the fundamental change in the economy of the district of Kemaman, Terengganu
has affected the people and hence the community. These changes affect the economic,
social and physical environment, which later could develop into socio-economic imbalance.
In addition to this, the fatalistic philosophy and a tradition of noblesse oblige of the community
slow the process of development. Therefore, the development of PEOPLE is necessary.
The objective of economic development should be the development of the people. This is the
process of getting people to progress from dependent to a stage where they are socially and
economically self-reliant.
As such, HTMAS Community Action Team (CAT) has chosen the people development
approach as the means of assisting the community for the following reasons:
B

PEOPLE are the most important resource in achieving progress and development. They
are the key and the agent of development.

The objective of development ultimately lies with the development of people.

A project or programmed does not fail, people do.

The problems of unemployment, dependence, poverty and others are people-generated

problems.

To harness the potential energies, talents and creativity of the village folk.

To achieve the above aims, community empowerment programs were implemented with the
help of other formal organizations such as the Welfare Department, Education Department,
etc. while, CAT plays its roles in assisting the planning of the projects, as well as organizing
and implementing them.
What is aimed at and planned by HTMAS for the people of Teluk Kalong is based on an old
Chinese proverb, turned into a philosophy by HTMAS:
GIVE A MAN A FISH AND YOU FEED HIM FOR A DAY, TEACH HIM HOW TO FISH AND YOU FEED
HIM FOR A LIFETIME.

Apart from the above, in order to realize the companys vision which is being open and
working together as a valued member of the community, the programs undertaken by
HTAMS include the following:
Education. Being a multi-national company located in Terengganu, the company is
responsible in providing knowledge and training to the locals. In 2003, the company
absorbed 32 practical trainees from various private and public institutions of higher learning
and attached them to the various departments of their respective disciplines. During their
training, their lecturers visited and received feedback from their supervisors on their
progress. Upon completion of their practical training, these students resumed their studies in
the various institutions of higher learning they come from (Figure 9).
In addition to that, some practical trainees who have graduated and are still unemployed
might be absorbed as Tesdec trainees on a duration agreed by the company. Therefore,
while applying for a permanent job they can gain as much knowledge as possible to enhance
their chances of getting a better career elsewhere.
In 2003, co-organized with Sekolah Seri Kemaman, the company held a motivational program
for the students of this school. With the support of the schools headmaster and the assistance
of the teachers, the program was such a success that a year six student from the said school

VOL. 1 NO. 4 2011 EMERALD EMERGING MARKETS CASE STUDIES PAGE 9

Figure 9 Social corporate responsibility to schools

emerged as the best student in Malaysia in the Ujian Penilaian Sekolah Rendah (UPSR)
examination that year.
Public. In line with the companys belief that good rapport can bring wonders, gotong-royong
is no doubt a common community activity (Plates 1 and 2). All staff in the company have to
perform at least one mandatory day of community service in a calendar year. They can
choose to participate in any program of their choice and liking.
Gotong-royong activities in 2003 included building houses at Pasir Gajah, clearing graveyard
areas at Bukit Kuang, Teluk Kalong and at turtle hatchery bay at Pantai Teluk Dedap, as well
as the building of surau[14] at Geliga and Pasir Gajah.
In addition to the above, there were also gotong-royong to provide security services, free
tuition and motivational classes which were conducted by Tuan Hj Abdullah Karim, the HR
Manager at that time and the chairman of the Lot 144, Housing Community. Recently, a string
of activities have been carried out and planned for the residents of the said area.
Plate 1 Community work (gotong royong)

PAGE 10 EMERALD EMERGING MARKETS CASE STUDIES VOL. 1 NO. 4 2011

Plate 2 Community work (gotong royong)

To ensure that the objectives of conducting gotong-royong were achieved, company

ambassadors were assigned to communities surrounding the location. The monthly and
yearly activities towards a planned scheduled were released much earlier for
acknowledgement and that helped the ambassadors to carry out their tasks. In 2003,
RM40,000 was spent on CAT activities for community work.
Environment, health, safety and quality. To prove its concern for the environment, a yearly
community program, Tiger Bay Awareness Program is co-organized by Akademi
Pembangunan Islam and Kemaman Supply Base. This project is considered important
since it is at Tiger Bay where the final water from the plant is discharged. The earlier processes
that take place before water is discharged include recycling and neutralizing it fully with
limestone and limeslurry before discharging it to the sea. In some cases, the discharged water
is converted into other useful co-products.
The treated wastewater is collected and monitored in the settlement and monitoring ponds on
site. Professional divers are appointed to collect underwater living organisms to confirm that
the discharged water from the plant is safe. The results were revealed to the public and
invitations to witness the event were extended to the Department of Environment (DOE),
college students, fishermen, local community from Teluk Kalong, Kijal and Kemaman and the
staff of Huntsman (Plate 3).
Plate 3 Fishing competition

VOL. 1 NO. 4 2011 EMERALD EMERGING MARKETS CASE STUDIES PAGE 11

In October 2003, the DOE Terengganu selected HTMAS to be the venue for launching of a
public seminar on Chukai River Awareness. A paper presentation was conducted by the
DOE, Department of Street and Drainage and DOE of Health.
In 2002 and 2004, the company held its Open Day to the public mainly for the community of
Teluk Kalong, Kijal and Kemaman. There were exhibitions, stalls, bicycle racing competition
(Figure 10), etc. Those who attended were mostly school children who were interested in
pursuing careers in the private sector.
Benchmarking practices
Low profile as defined to some does not reflect that the company remains in a nutshell and
does not share its success and philosophy with others. Surprisingly, the company has
received so many requests for official visits and sharing of benchmarking practices that
occasionally it had to reschedule the visits due to heavy plant and office activities.
HTMASs expertise on motivation and their continuous improvements, initiatives and strength
in managing people especially locals in the east coast has resulted in excellent production.
With their achievements being recognized by others, managers of Huntsman were invited to
become speakers at international conference to share on a topic which has become a culture
to HTMAS but remains grey to some. Hj Mahmood Azmy, Mr Dilip Morje, Hj Aziz Zabidi Abdul
Kadir and Hj Abdullah Karim, to name a few, presented their paper at various international
and local conferences.
Tuan Hj Rozano Saad, aside from his capacity as Site Director of the company till today sits as
advisor for INTAN Wilayah Timur. Recently, Zamani Ahmad, Black End Manager has been
appointed as a committee in the KUSZA Bachelors Module Preparation. Zamani himself, a
graduate from KUSZA has climbed up the career ladder through sheer hard work and
determination, thus proving to others that studying part-time does not hinder ones work
performance.

Corporate social transformation

Years have passed by, and this small town of Kemamang as what most Terengganu born
would say in their strong Terengganu twang, is no longer desolate, haunted and unknown.
Many individuals, especially young people, would no longer be embarrassed to introduce
themselves as the Kemaman breed. The once abandoned, ghostly town, with a few hut-like
coffee shops, some half-built, wooden, single-storey buildings which could not actually
be called buildings, but rather shelters that acted as refuges from the monsoon rain has
undergone a massive facelift. The town is now full of Mat Salleh, some in their skimpy
Figure 10 Cycling competition

PAGE 12 EMERALD EMERGING MARKETS CASE STUDIES VOL. 1 NO. 4 2011

Bermuda shorts, browsing lazily from one row of shops to another. There are also a few
elite-looking Malays walking briskly through the crowd, carrying bags with Huntsman
Tioxide written on them. Maybe one can still picture Kemaman, with scanty coffee shops
occupied by men wearing torn, faded pants draped over with batik sarongs[15] and
bandana-like materials wrapped around their heads.
Tokens of appreciations have been given to Haji Rozano, for, without his inspirational and
quick-witted ideas, the township of Kemaman would just remain alienated from the rest of
the world. Moreover, with the existence of one of the worlds largest chemical companies,
Kemaman is now visible in the eyes of many of the corporations of the world.
Based on what has been done, surely it would not be too much to regard Rozano as an agent
of change. As we can see, before he started his journey and embarked on his mission, he
made his vision clear enough to everyone. First, he started with his family. The first time he was
assigned to Kemaman, Rozano was persistent enough to persuade his loved ones to move to
this unexpected remote place. Who would want to leave a comfy nest and a city of paradise
such as Shah Alam to a place where only the rural individuals would live? To many,
Kemaman was like a different planet in a different galaxy. What was there in store for the city
people? What was the schooling system like? Where would they go for shopping? How could
they spend their leisure time? Was there any life at all to be enjoyed? Despite these questions
with unattainable answers, Rozano with his unstoppable spirit, marched ahead and
convinced the people he loved that together they could give a fresh start to Kemaman.
He initially had made a solemn vow that when he became the commander of the ship, he
would improve the conditions and upgrade the productivity of Huntsman Tioxide and to him,
there was no turning back or time to lose. However, he knew it would never be a smooth sailing
journey as there would be a lot of obstacles.
First and foremost, the town was in dire need of wondrous transformations. The kampong
school would have to be of a different facade with a different persona. He did not want all his
babies to go through rough times getting education in a second-class school. True enough,
after a few years of perseverance and commitment, the Kemaman folks can now put their
heads up and start to show off to the outsiders that their school which was once a tease has
turned into an elite school. Obviously, the school would not be of the same standard as any
of the so-called elite schools in Kuala Lumpur or Shah Alam, but it can proudly be said that it
has now become one of the top schools, and has also been pronounced as the third best
school in Malaysia for UPSR (a major exam for year six students).
Again, the same question pops up. Who is this mysterious Rozano Saad? Who is he to be
idolized by so many? Is he a political leader? Is he comparable to the newly elected US
president, Barack Obama? Is he a famous Hollywood star who is worshipped by many
diehard fans? Unfortunately, Rozano Saad fits none of those scenarios. He is just an ordinary
man who comes from a working class background, but who is a highly educated,
high-spirited, city person and willing to do the impossible in a foreign land. Though
Terengganu is one of the states in Malaysia, it is common to assume that many of those from
the west coast of peninsular Malaysia would be dragging their feet if they ever had to make a
living in a slow-paced state on the east coast. Nevertheless, Rozano Saad is a man of
principles. What is considered as impossible to the others would be a challenge to him.
He affirms that he has the criteria for being a champion, and thus, immediately starts to plan
and is ready to commit to excellence in every task.

Building emotionally intelligent organizations

Once the green light was granted by his family, he moved forward in his own way to realize his
vision. As expected, he was the first one to be tested on his persistence and endurance.
Nevertheless, Rozano Saad is a man with a charming personality. One would be touched to
see him of a higher authority lowering himself down to the level of others in order to gain
confidence, loyalty and cooperation among his co-workers. Also, often times, Rozano and his
team would never be too occupied to discuss matters pertaining to the betterment of the
company with leaders of different organizations. In fact, they were regarded as mentors,

VOL. 1 NO. 4 2011 EMERALD EMERGING MARKETS CASE STUDIES PAGE 13

hence monitoring and speaking upon Rozano and teams actions in the organization. In other
words, he could be portrayed as the real leader in the organization who has a liberated
personality but a professional outlook. Why is this so? Or perhaps, How could that be?
Huntsman Tioxide is not his. On top of that, he is a Malay man whose position as a Site
Manager was passed down by an expat boss. Well Rozano has the leadership quality and
has followers. From the very beginning of his reign, he developed a special kind of
relationship with his fellow workers. The relationship he created led him to having more and
more followers. Having followers who listen to your ideas and suggestions would make a
company stronger while at the same time, laying the companys principles into a more
concrete foundation. This, of course, would depict the leader as great and successful.
Furthermore, Rozanos ability in making sound decisions and putting what was best for the
community, namely the Teluk Kalong community and his workers ahead of his personal
agenda led to the earning of respect by them. Once respect was gained, support would be
easy to grab.
Rozanos leadership style, however, was not easily accepted by his subordinates who jolted
him not long after he was promoted to general manager of operations. Being an engineer by
training, his style tended to be commanding and pace-setting. He was meticulous in many
aspects, thus, was also called by his co-workers as very cerewet[16] and analytical.
Nevertheless, he refused to change those styles which were the norm in the engineering
culture in which he had operated for the past 20 years.
This time, being a manager, there was another aspect he needed to focus on: the companys
long-term goals. For him to achieve those goals, he needed to draw on a wider repertoire.
Thus, Rozano used his new awareness about his leadership to set learning goals toward
building visionary and coaching leadership styles. His larger aim was to dramatically improve
the organizational climate, particularly, when it came to peoples clarity about their
responsibilities and the standards expected of them. He also knew that self-awareness was
not one of his strengths, and that became one of his personal learning goals.
To ensure that his aims would be achieved, Rozano did not only make his personal learning
goals known among his staff but also made them become part of his learning laboratory, to
borrow the term from Goleman et al. (2008). At the same time, he also brought his whole
management team to go through the same leadership development program which he
experienced. His only intentions for doing this was to make his members of management
team speak the same language as a way to reinforce their new learning agenda as well as to
make them work together. His own learning agenda, for instance, has forced him to inform his
staff in the plants at every meeting of the companys newly identified vision of excellence.
Rozano unique management style has attracted others to learn more about him. One of them
is Goleman et al. (2008). In his book, Goleman highlighted Rozanos approach whereby
different teams among the managers were formed before they identified a monthly plan
personal contact (their phrase for internal coaches). Apparently, this approach allowed
each leader to get support and monitor progress on his or her learning plan.
More about Rozano and his management was reported by Goleman et al. (2008) as follows:
In the monthly management staff meeting, discussions addressed management style,
organizational climate, and learning plans as well as the usual topics of performance and
safety. They also formed special reference groups that met monthly and within which they could
discuss their own personal learning plans, review progress, and get ongoing feedback.
Just two years later, Rozano and his managers were so encouraged by the changes that they
opened their plants for tours and site visits by other executives. The whole environment shifted as
well. At the beginning of this process, if youd asked someone on the shop floor about their
personal objectives, youd have heard something vague in response, such as to produce 50,000
tons of pigment. Now if you ask the same question, you can hear the focus will be on quality over
quantity: I have to ensure that samples are taken every four hours, and analyzed according to the
right standards. And if theres any deviation from the acceptable parameters, Ill have to
troubleshoot to reach the confirmed level ASAP through [. . .].
Whats more, the company began showing a strong upward trend in profits, as well as improved
productivity benchmarks. Regular climate surveys to monitor progress showed jumps of nearly

PAGE 14 EMERALD EMERGING MARKETS CASE STUDIES VOL. 1 NO. 4 2011

200 percent when assessed by all the managers in the company (close to 300 percent as seen in
Rozanos direct reports) particularly in the dimensions of clarity, flexibility, standards, and team
commitment.
In the third year after the change effort, the conglomerates CEO reported that Huntsman
Tioxide-Malaysia was one of the highest performing companies in the group, breaking productivity
targets with record profits.
What had happened? The same people were here; personnel hadnt changed much during that
time. What had changed was how they worked together: The climate became one that
encouraged everyone to increase their use of emotional intelligence and to build their leadership
talent. Each manager had the opportunity to articulate his dreams and aspirations (the first
discovery), to see himself as others saw him through 360-degree feedback and identification of
strengths and gaps (the second discovery), to develop a personal learning agenda (the third
discovery), and to experiment and practice new habits of leadership at work (the fourth
discovery). The managers did this work with each other (the fifth discovery) and created a new
climate of leadership. They developed emotional resonance about their mission and development
as leaders.

Organizational development
Being part of the management team trained in Rozanos way, Aziz Zabidi, can now smile in
gratification. As he recalled his experience with the company, he could not agree more with
what had been said by Rozano: Its a journey.
Yes, that was true enough for he was there to witness the ground clearing of Teluk Kalong, way
back in 1989. In the company, people come and go but he remained there witnessing
everything that has happened in Huntsman Tioxide. Yes, it was a journey, he agreed [. . .] but
he would add more to it. [. . .] a haphazard journey.
When they first started, the people of Teluk Kalong saw Huntsman as nothing but
contaminating their place. Many had the wrong ideas about what they were doing and
Huntsman knew that this must be corrected. Aziz knew that he should not let Rozano bear the
load all by himself because at the end of the day, the fruits would be harvested, shared and
tasted by all.
Realizing that there were areas that Rozano had given enough emphasis to and was good at,
Aziz cleared his direction and focused on other areas that he was responsible for as the Site
Material Venture Director. From the beginning, Aziz already knew that their different
characters made them a perfect pair for they complemented each other in many aspects.
And they both knew, without either one of them, the venture would never have succeeded.
Azizs most important responsibility is the production of the titanium dioxide pigments in the
plant which was never expected to be a smooth sailing process. When the plant started its
operation, there were 40 stages of product processing to be handled which looked fine on
paper but not in practice. With many problems that could occur as early as in the first stage,
Aziz Zabidi knew that only 20 percent of the plants capacity was utilized. This became
another problem area for him to work on.
When problems occurred in the plant, there was no bureaucracy to be adhered to. A manager
like Aziz would immediately become a technician and he would work hand-in-hand with his
subordinates. In short, everybody became equal and they learned from each other and
together, they moved forward. The spirit of togetherness has always been part of the people
at Huntsman. Apparently, Rozanos emphasis on human capital has left many positive
impacts on his staff, both in working and personal lives. They were taught about the value of
friendship.
Aziz for one, has proven that true friends would always want the best for us. Therefore, when
Rozano consulted him on whether or not he should move to shell, Aziz was sincere enough to
tell him that if it had been him, he would have accepted the offer. Ensuring Rozano that he had
done enough for the company, Aziz told him that the move should be viewed for the
betterment of his life. As a human being, Rozanos life was not limited to work, but his family
deserved an equal attention from this charismatic man as well. No doubt, Rozano, the man

VOL. 1 NO. 4 2011 EMERALD EMERGING MARKETS CASE STUDIES PAGE 15

behind the Huntsman Tioxides success, was needed everywhere and in every part of his life;
his former company needed him, his wife, children and mother wanted him even more, and
even a giant company like shell wanted him to join them. To Aziz, Rozano, deserved to take
the offer from shell.
With or without Rozano, Aziz continued with what had been planned. To him, at the end of the
day, it was always the companys direction that mattered. With the companys vision to be a
leading producer of titanium dioxide pigments in the region while fulfilling shareholders
expectations on his mind, Aziz moved forward to ensure that the vision was achieved. He
started by making sure that everybody understood the company well and this was not limited
to the workers, but also the people of Teluk Kalong.
In carrying out his responsibilities in Huntsman, Aziz ensured that safety became his priority.
To him, this was extremely important as most of his work was related to the plant production.
To him, safety is a journey not a destination. Instilling this notion in the minds of others, it has
been uniquely Aziz Zabidi who is seen by many as the man who emphasized safety. If Rozano
was known for not compromising quality and standard, Aziz would never jeopardize anything
at the expense of the workers safety. The fact that they were dealing with hazardous chemical
waste had made him put safety as a priority. In fact, production would be stopped
immediately should there were any signs of uncertainty with regard to safety.
Azizs concern did not stop once the pigments were produced. To be competitive, he
converted waste into usable products that would make revenue for the company. His strategy
was proven effective. The company used to spend about 20 percent on waste management
but the amount has now been reduced significantly.
Now that Aziz has proven his capabilities which exceeded expectations in most cases, his
contribution was well recognized that he was supposed to replace Rozano when he decided
to leave Huntsman. But as a human being, he could not stop things that happened beyond his
control. The acquisition of ICI Toxide by Huntsman has changed everything, making all the
arrangements and plans meaningless. Worst still, Aziz was left alone with no one to back him
up when he raised the matter.
Nevertheless, Aziz was wise enough to accept the fact that a change in company structure
also meant a change in the position of staff and he knew that could happen to any companies
in any part of the world. Was he sad? Well, that was the feeling that he could not avoid, but
being a man with determination, Aziz knew from the beginning that life must go on. He should
not regret when he was moved backwards from his earlier position. He knew it had been
fated for him and with no regrets, he accepted it.
Talking to his boss on this matter brought him nowhere. Ironically, he was highlighted on the
fact that perhaps he had been there for too long. Perhaps, he should move to other places
which might offer him a brighter future. All of the sudden, he remembered his comrade,
Rozano, the man who taught him so much about life. When Rozano was leaving Huntsman, he
was the one who assured him that the move was for his own good. Yes, he was the one who
had given the assurance to Rozano. However, when someone told him exactly the same, he
never thought it was the right thing for him to do. Why? Still groping in darkness, Aziz could not
see the light at the end of the tunnel. Many questions were left unanswered. Perhaps, he
should just follow in Rozanos footsteps. He had done enough for Huntsman that he should
have let others to try managing the company. Or perhaps, this was just part of countless
challenges that he had to taste as an individual who grew up with Huntsman. Everything
seemed blurred to him.
Nevertheless, it was not too long for him to finally discover the answer he had needed most.
Not letting others maneuver his life direction, Aziz stayed firm with his own principles. For one,
he was not Rozano and they both had different values and beliefs towards life. Unlike him,
Rozano had his own valid reason to go. He never wished to leave Huntsman, but he was
sought after by others. More importantly, his move had made many souls happy; his wife,
children, mother and the new company.

PAGE 16 EMERALD EMERGING MARKETS CASE STUDIES VOL. 1 NO. 4 2011

Azizs story was different. Teluk Kalong has always been very close to his heart. And there was
one reason for this. He is Terengganu born and Rozano is not. Certainly, no words can
describe the kind of satisfaction he felt serving his own hometown.
Deep down his heart, he also believed that if he was loyal to the organization, the organization
would look after him. Nothing would change this. Definitely, his loyalty to the company would
be rewarded sooner or later. With that on mind, he would wait for that moment for he knew that
his decision was right.

Companys operation
While Aziz managed the production of titanium dioxide pigments, Rozano had all the job
processes documented in his green book (Figure 11). Again, this is an evidence of his
emphasis on quality and standard. Apparently, the use of the book indirectly trained the staff
to document important matters that they encountered so that it would be easy for others to
make reference when the same problems recur. In short, the book is about problem solving
and trouble shooting.
Properly keeping the green book, however, was just a tiny part of his unique way in bringing
success to the plant. If anybody would ever ask him of what the largest contributor to success
was, his certain answer would be human capital. To him, without people, technology would
be meaningless, and it was for this reason that he always won the hearts of his men. At times,
they deserved praises but simultaneously, they were pushed to move forward.
Usually, his way was subtle enough that no one would feel offended. Throughout the journey,
he made them felt that their presence was important to the growth and development of the
company. They were also made to be fully aware that he would not be there to guide and be
with them forever. Indeed, eventually, they were left on their own feet.
The MMPI program
Apart from using the green book, the company also held the Managing Motivation for
Performance Improvement (MMPI) which was launched in 1997, with the belief that a healthy
organizational climate positively impacts the bottom line (Figure 12). Under this assumption,
the management of HTMAS embarked on introducing the four circle model which forms the
basis for the MMPI program. The overall objective is to understand how these four variables

Figure 11 The Green book

VOL. 1 NO. 4 2011 EMERALD EMERGING MARKETS CASE STUDIES PAGE 17

Figure 12 The MMPIs

Managing Motivation For Performance Improvement

The Four-Circle Model
Individual
Competencies
Personal
Characteristics,
Skills & motives.

Managerial Styles
Patterns the manager
adopts to plan,
organize,
Motivate and control.

Job Requirements
Those critical managerial
tasks and activities that
must be performed in a
fashion for a person to be
regarded as superior
performance

Organisational Climate
Perception of how it
feels to work in a
particular
Performance
environment

(Desired Result)

individual competencies, job requirements, managerial style, and organizational climate

work together for effective performance, as stated in HTMAS Social Responsibility Program
(2006).
a. Organizational climate. Organizational climate is the individuals perception of those
aspects of the organization that directly affect how well a person can do his or her job. Of the
four key variables, organizational climate has the greatest impact on individual and
organizational performance. Hay Group research has identified six critical climate
dimensions:
1. Clarity: everyone in the organization knows what is expected of him/her.
2. Standards: challenging, but attainable goals are set.
3. Responsibility: employees are given the authority to accomplish tasks.
4. Flexibility: there are no unnecessary rules, policies, procedures.
5. Rewards: employees are recognized and rewarded for good performance.
6. Team commitment: people are proud to belong to the organization.
Numerous research studies have found a direct link between an organizations climate and
its performance. Organizational climate is the closest thing to a P & L statement in terms of
indicating how well a company manages its human-resource assets. The more positively
employees perceive their climate to be, the greater the discretionary effort they put into their
jobs. The greater the discretionary effort is, the higher their commitment is to produce quality
output and customer satisfaction. So, what determines the organizational climate?
b. Managerial style. Managerial style refers to the pattern of behavior an individual manager
uses across the full range of management situations. Hay Group research has found that
managerial style is the variable with the greatest impact on organizational climate. The
breadth of a managers repertoire of styles determines his or her effectiveness. Managers
prefer to use styles that feel natural to them and, therefore, may limit themselves to using
only those styles that come naturally. What feels natural is largely determined by a
managers individual competencies. So, what are competencies?

PAGE 18 EMERALD EMERGING MARKETS CASE STUDIES VOL. 1 NO. 4 2011

c. Individual competencies. Competencies include the skills, knowledge, self-image, values,

and motives a manager brings to the job. A competency is any personal characteristic that
differentiates performance in a given job, role, organization, or culture. Each competency is
measured in terms of key behaviors that illustrate lower-to-higher levels of impact on job
results.
The strongest underlying characteristic that affects an individuals behavior is his or her
motive disposition. Understanding why they are naturally inclined to behave in a certain way
allows managers to predict, monitor, and manage their behavior. They can then choose
effective behavior or management styles for dealing with each management situation they
encounter.
The conscious ability to choose the appropriate style will improve a managers leadership
capability and enhance the organizations climate and performance. However, since each job
is different, the competency requirements of the job are yet another variable to be
considered.
d. Competency requirements. To develop effective management practices, an analysis of the
objective requirements of the job is just as important as the assessment of individuals styles
and competencies. Understanding the difference between job requirements and what
people find naturally satisfying explains why they may perform well in some aspects of their
job while finding some jobs or parts of a job frustrating. Job competency requirements refer to
the specific levels of competency required for consistently superior performance.
Competencies generate behaviors that get better results more consistently, across a
broad range of managerial situations.
e. The key. The key to organizational effectiveness is, therefore, the manager or rather the
leadership that a manager brings to his job. Whatever the business, whatever the strategy or
whatever the objective is, the chances of success is greatly enhanced when you have
managers at every level ready to lead. This philosophy has been the basis used by Rozano in
breaking new frontiers for organization.
Since then, most efforts in HTMAS have started with people, the perceptions they hold and
how these perceptions influence their behavior. The styles that the managers and supervisors
held are strategically tailored towards creating higher productivity through enhancing
organizational climate. The employees are encouraged to sow the seeds of a healthy
organizational climate. The desired culture emerged (Figure 13; HRTMAS, 2006).
Figure 13 The desired culture of Huntman Tioxide Malaysia

The Desired Culture

BEFORE MMPI
Hierarchy
Blames
External Motivation
Protective barriers
Fear of Change
Satisfying boss syndrome
Secrecy and censorship
Pressure of work
Short term fire fighting
reactions

AFTER
Support
Honest evaluation
Self motivation
Building team
Change is a norm and welcome
Pleasing the customers
Openness and honesty
Challenging of work
Longer term strategic planning

VOL. 1 NO. 4 2011 EMERALD EMERGING MARKETS CASE STUDIES PAGE 19

Since 1997, more than seven organizational climate surveys involving top and middle
management have been conducted to identify the areas where the organizations can improve
and benefit in the pursuit of quality, cost and people excellence. The top management
commitment and involvement in spearheading the cultural change towards developing and
maintaining an environment for quality excellence are continuously monitored and
synchronized against the vision and mission of the organization.
With the above concepts and notions on his mind, Rozano first created the so-called
Organizational Climate. The existence of this climate, according to Rozano allowed
people to give their best and provided opportunities for his men to acquire skills and improve
their efficiency rather than being kicked out for not meeting expectations, as some other
management would do. This way, he believed, would push his men to their maximum
potentials and turned them into a world champion.
For what he has done, there is one term to describe Rozano: a strategic thinker. Starting from
his belief that everything starts with the right mindset, he strategized his directions by viewing
his tasks globally. As he moved forward, his strategies included identifying any existing gaps
that needed to be worked on, checking on reliability where necessary, managing peoples
emotional intelligence and encouraging his subordinates to think outside the box. At the
same time, he ensured that work progressed in accordance with the stated KPI. When this
was done, he admitted the results were impressive.
Rozanos management has undoubtedly created a new culture in Huntsman. The difference
of these cultures from the early years until today is illustrated in Table I.
The above is not all about Rozanos unique leadership style. His other significant contribution
was his concept of ambassadorship. Appointed based on the right characteristics, his
ambassadors were responsible in managing the company-community relationship.
Representing the company, the ambassadors gained the trust from the community by
tackling any problems or misunderstanding towards the company that occurred among them.
To do this, the ambassadors needed to find ways to make them close enough with the
community by getting involved in activities such as painting their homes and joining their small
feast called kenduri.
In addition to the above, the I See I Act campaign was also introduced where people at
Huntsman were encouraged to make complaints or lodge reports on matters that they felt
need attention (Figures 14 and 15).
Among other approaches to build positive culture in Huntsman were:
B

Managerial style inventory.

Coaching team (Figure 16).

Putting it into practice.

Effective communication.

3 RAS (Figure 17).

Table I New culture in Huntsman

From (1990/1997)
Hierarchy and bureaucracy
Blaming others
External motivation
Protective
Fear of change
Satisfying boss syndrome
Secrecy and censorship
Feeling pressure at work
Short term fire fighting

PAGE 20 EMERALD EMERGING MARKETS CASE STUDIES VOL. 1 NO. 4 2011

1998/2004

To (2005 and Beyond)

Mixture of both culture

Supportive
Encourage more self-awareness
Self motivation
Building team and removing barriers
Change is a norm and is easily accepted
Pleasing the customers
Openness and honesty
Challenging of work
Long term and forward looking

Figure 14 I see I act campaign

Figure 15 Number of reports in December 2007

120
100
80
60
40
20
0

80
60
40
20
0
EHSQ

HSSC

PSM

S.ENG

BE

WE

PIP

TECH

> 10 rpts

16

43

76

58

12

16

< 5 rpts

Zero

10

6 - 9 rpts

The future
The right organization climate means improved productivity and bottom line figures, as
employees are enabled and motivated to perform to their utmost ability. As we can see, this
philosophy has been the basis used by Rozano Saad in breaking new frontiers for
organization. In short, he is the man behind the success story of Huntsman. However, as what
he would admit, this was never a one man show. Without his second man, Rozano might not
have done it. It has always been Aziz Zabidi who complemented everything that Rozano was
lacking. While Rozano spent time on dealing with the people of Teluk Kalong, it was Aziz who
would stay back at the plant to ensure that productions ran smoothly. When Rozano was busy
creating organizational climate for the company, it was Aziz who ensured that no ones life was
put at stake while chemical waste was being disposed off. Definitely, Rozano and Aziz
complemented each other well.
At the end, all the efforts are internationally recognized as an empirical evidence of a visionary
leadership that moves towards an emotionally intelligent organization. The success story of

VOL. 1 NO. 4 2011 EMERALD EMERGING MARKETS CASE STUDIES PAGE 21

Figure 16 Coaching team approach

Figure 17 The 3 RAS

Knowledge (Beras)

Will (Waras)
(The focus)

Skill (keras)

Huntsman was even cited in the book authored by the guru of emotional intelligence, Daniel
Goleman (author of the New York Times Bestseller Emotional Intelligence) in his book Primal
Leadership: Realizing the Power of Emotional Intelligence.
The success of HTMAS leadership was also mentioned in other books and publications such
as Make Common Sense, Common Practice a book by Roone Moore (USA), and an article in
Utusan Malaysia: Cara pengurusan diiktiraf antarabangsa.
As we can see, significant improvements, massive developments and positive transformation
have taken place in Huntsman. It first started with the people and the culture but the final
benefits that led to the increased productivity and profitability were impressive. However, this
is not the end of the story. As Rozano Saad puts it: Its a journey.

PAGE 22 EMERALD EMERGING MARKETS CASE STUDIES VOL. 1 NO. 4 2011

Questions
Evaluating leadership strategy and system thinking:
1. Does the quality of a good leader exist in Rozano? Is his leading role in planning and
implementation an add on to his leadership style?
2. What is your assessment of the present leadership strategy and system thinking of
Rozano? What are the outstanding threats and opportunities do you see?
3. What should the leaders agenda be with regard to the corporate planning and change?
Is the leaders long-term strategy vision for this company appropriate or does it need to
be modified? What can the leader do to add value to the firms business portfolio and
make it more attractive?
Corporate-social responsibility:
4. Has the business plant been assimilated and integrated with the rest of the people in the
community?
5. Did they really make sense of their social responsibility or were they the results of
happenstance and opportunism?
6. Has the corporate-social responsibility been well thought out and well executed?
Organizational culture:
7. Is the corporate culture in tune with strategy? Are the organizations values, norms,
attitudes and ingrained behaviors supportive of strategy?
8. Does top management have a hands-on-feel of how well strategy implementation is
progressing? Do they know what problems are being encountered? Are communication
channels up and down the organization working well? Are controls and reporting
systems adequate?
Exerting strategic leadership:
9. Has the top management worked to create a climate in which the needs of strategy are
aligned with the corporate culture? Does the organizations attitude and temperament fit
the strategy? Are needed changes being made?
10. To what extent is the management proactively trying to mold the organizations habits,
mindsets, and cultural variables to match strategy?
11. Is top management visible enough? Have the key executives been attentive to build
folklore and set images on which to promote organizational change?
12. Are the top management leadership styles and internal political skills adequate for the
situation? Do key managers appear to have right temperament and personalities to
implement the strategy successfully?
General issues:
13. What is your comment on the change made by the company on the surroundings of the
fishery village?
14. Do you think that such crisis conditions prevail on the rapid changes on the
community?
15. Has the mixed-culture strategy implemented by the company ruined the Malay
tradition of the community?

Notes
1. Mat Salleh a westerner.
2. cakap tak serupa bikin you do not do the things you have said you would.
3. duduk bersila sit on the floor with legs crossed.
4. Melayu-malay man.

VOL. 1 NO. 4 2011 EMERALD EMERGING MARKETS CASE STUDIES PAGE 23

5. keropok lekor chips made of fish.

6. kampong village.
7. orang luar-outsider.
8. roti canai malay pancake.
9. roti kosong plain malay pancake-no fillings.
10. teh tarik specially prepared tea.
11. nak kena cepat in a hurry.

Keywords:
Leadership,
Decision making,
Transformation,
Huntsman Tioxide,
Malaysia

12. pulut durian cooked glutinous rice eaten with durian fruit.
13. gotong royong work together hand-in-hand , i.e. in the cleaning up of kampong.
14. surau a small building built for praying purposes similar to a mosque.
15. sarong-pareo like material worn by man.
16. cerewet fussy.

References
Huntsman Tioxide Malaysia (2009), Annual Reports, Huntsman Tioxide, Selangor.
Goleman, D., Boyatzis, R.E. and Goleman, A.M. (2008), Primal Leadership: Realizing the Power of
Emotional Intelligence, Harvard Business Press, Boston, MA.

Further reading
Aziz Zabidi (2009), In-depth interview.
Huntsman Tioxide Malaysia (2008), Total Quality Management Report, Huntsman Tioxide Malaysia,
Selangor.
Rozano Saad (2009), In-depth interview.

Corresponding author
Nik Maheran Nik Muhammad can be contacted at: nik7944@gmail.com

PAGE 24 EMERALD EMERGING MARKETS CASE STUDIES VOL. 1 NO. 4 2011