Coca-Cola Amatil - Case Study
With Alison Watkins – Group Managing Director
From Match Fit: Shaping Asia capable leaders
Asia capabilities are an important focus of Coca-Cola Amatil’s board skills matrix
It’s clear the Coca-Cola Amatil (Amatil) board strongly values Asia expertise and experience. As a major bottler in South East Asia through its operations in Indonesia, most of its workforce is located in Asia, as are most of the customer outlets it supplies.
At the time of writing, five out of the eight members (63 per cent) of Amatil’s board have substantial first-hand experience in Asian markets and can be objectively described as highly Asia capable leaders. Many of them have had exposure to Asian markets through their roles on other boards and in previous executive roles.
In addition, Amatil has leveraged its international network through its shareholders and brand partner, The Coca-Cola Company, further to boost the level of Asia capabilities on its Board. Two of the seats of Amatil’s Board are occupied by representatives of the international Coca-Cola system. Amatil benefits from having these seats filled by experienced operators from Coca-Cola subsidiaries in the Asian region.
Amatil is clear about the role Asia capable directors play in the Board’s decision-making process. It asserts that having Asia capable directors with experiences and an understanding of the region’s culture, policy making or change process, and government priorities helps the organisation’s decision-making process, investment decisions, people development and subsequent outcomes.
This is particularly important as Amatil, in partnership with The Coca-Cola Company, progresses a substantial investment program in Indonesia, and the development of an Indonesia-focused product range and targeted beverage markets.
Alison Watkins, Group Managing Director, explains: “The board’s Asia capabilities have influenced the development of our Indonesia-based Coca-Cola Amatil Indonesia (CCAI) management team, which is considered one of the major growth businesses for the Coca-Cola Amatil Group.
“We do place significant weight on the expertise of our Asia capable directors in contributing to matters directly related to our own Asian operations and potential growth markets.”
Ms Watkins also cites the example of the prominent role played by Krishnakumar Thirumalai, a Non- executive Director of Amatil and Chairman of Hindustan Coca-Cola Beverages in India, in guiding the Board to pursue a trial of SPC Perfect Fruit in the sub-continent. Board consideration for this trial drew heavily on Mr Thirumalai’s expertise in Asian markets and understanding of likely consumer and customer demand.
Amatil’s approach to recruiting Asia capable leaders is highly strategic and one of the focus areas of its board skills matrix. This approach has allowed the Nominations Committee to actively pursue the attributes they see as critical to the significant success the company has had in Asia. Of the six Asia capabilities, Amatil has identified direct knowledge of Asian markets, experience operating in Asia and the ability to adapt to Asian cultural contexts as the skills that have had the most impact on their Asian growth story.
The presence of directors with significant Asia capabilities on the board has allowed other members with less direct experience to build their understanding of Amatil’s key markets in Asia. Additionally, all directors commit to one board meeting annually in Indonesia, which allows them to meet local partners, staff and customers and build a deeper understanding of different aspects of the Indonesian business and the environment in which it operates.
“We value all opinions and perspectives in the boardroom. While Asia-capability is desirable, especially as it relates to our operations in Indonesia, our decision-making process on general issues is guided by the contributions of all directors. Diversity is important in all its guises. We have a diverse board in skills, knowledge and experience, and we are always learning from each other,” says Ms Watkins.
Amatil has shown long-term commitment to the development of Asia capabilities across the Australian workforce, particularly for future leaders. It supports government initiatives such as the New Colombo Plan, which gives young Australians placements in Asian universities and workplaces to help them build local knowledge and business skills. Amatil also offers opportunities in Indonesia to high performers in the company’s other businesses, as well as enabling some Indonesian staff to live and work in Australia, facilitating a two-way transfer of knowledge, skills and Asia capabilities.
As to how policymakers can support the development of Asia capable leaders across Australian business, Ms Watkins identifies the need for a holistic response from government and industry, including finding more Asia capable teachers for schools and universities to develop the skills of the future workforce.
But she adds that ultimately the responsibility lies with businesses to ensure they have the right skills and talent to pursue long-term growth in Asia.
“Policymakers need to make it easier for business to do business in Asia. However, at least for major company boards, I would not have thought that regulators are needed to encourage the common-sense approach of having Asia capable directors on the board where a company has ambitions of investment in Asia.”
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