2 Key Insights from SembCorp Industries Limited’s Management

Recently, I came across a 2012 interview featuring SembCorp Industries Limited’s (SGX: U96) chief executive, Tang Kin Fei.

In the interview, Tang shared his thoughts behind his management philosophy. With SembCorp Industries being one of the 30 components of the Straits Times Index (SGX: ^STI), there may be valuable insights we can pick up from the company’s CEO.

As a brief background, SembCorp Industries has three business segments, namely Utilities, Marine, and Urban Development & Others. The former two are by far the most important for SembCorp Industries. Notably, the conglomerate’s Marine business stems from its majority ownership of fellow blue chip SembCorp Marine Ltd  (SGX: S51).

Without further ado, here are two key insights from Tang:

1. Lifelong learning

“No matter how old we are, or what our station in life is, I believe that we should always be learning. It’s about having an open mind and a sense of curiosity to understand the environment around us – why decisions are made or things done a certain way. This attitude towards learning expands our knowledge base and helps us make better decisions in future.”

Tang captured his philosophy on lifelong learning in the paragraph above.

At the Fool, we are fans of lifelong learning in investing. We follow a company’s business developments over time and learn from our own investment mistakes as we study companies for years.

Keeping a motley and open mindset helps us gain a clearer overall picture as well.

2. The importance of clarity

“Clarity in thought, action and communication is also key. When we express ourselves clearly and give clear instructions we avoid miscommunication and wasted effort. When we have clear and precise implementation plans, a project has a higher chance of success and risks are mitigated.”

In SembCorp Industries’ recent earnings conference call, Tang highlighted the importance of the company’s reputation in India. The country represents a great opportunity for the conglomerate. In line with this, SembCorp Industries’ ability to execute projects is critical in building its reputation and subsequently, its future success.

The link between clarity of communication and successful business execution is important in many levels and may be crucial for the future success of SembCorp Industries.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.