This interview is part of the Leading Asia series, which features in-depth conversations with some of the region’s top value-creating leaders on what it takes to realize bold ambitions and take them further.
In this Leading Asia interview, Suphachai Chearavanont, the chairman and CEO of Arise Ventures Group and senior vice chairman of CP Group, talks with McKinsey’s Joydeep Sengupta and Noppamas (Yam) Sivakriskul about reshaping a century-old organization to adapt to the digital era, and about what it takes to build businesses that remain relevant across generations. CP Group—a family enterprise that traces its roots to Chearavanont’s grandfather—is a large, Thailand-based conglomerate, whose core businesses cover telecommunications, agriculture, food, and retail.
During his nine-year tenure as the CEO of CP Group, Chearavanont focused on a technology-driven strategy and digital transformation, emphasizing sustainability and social impact. His leadership style is bold and innovation-driven, human-centered and inclusive, and aims for growth that benefits not only stakeholders but employees and broader communities, too.
The conversation has been edited for length.
Joydeep Sengupta: You’re known as an extraordinary leader and for transforming CP Group. Please tell us about what shaped you.
Suphachai Chearavanont: My parents’ values of gratitude [ktạỵỵū in Thai] and Thai Buddhist teachings shaped me. My father encouraged value-creation and using time effectively, and my mother, to have courage and stand up for what I believe in. My diverse childhood education across Taiwan, Thailand, and the United States taught me adaptability and cultural understanding—that’s why I encourage my HR team to rotate people in the company, so that they keep learning.
When you face a difficult decision, you must ask: ‘If I continue, can I create value for society?’ If you believe so, then you keep going.
Yam Sivakriskul: How have these lessons influenced your decisions in critical moments?
Suphachai Chearavanont: Let me first explain how I make decisions. My father and uncle, who were among the founding members of CP Group, agreed that no family members should join established businesses after graduating. Instead, as a training ground, we had to start something new or join a new venture to prove we could create value.
I learned the hard way. I joined our telecom business in 1992 and when the Asian financial crisis hit in 1997, many senior executives were retiring and I had to lead the restructuring; I was 28 years old at the time. It was a tough period for me. It took about two years, after which I became CEO. Though the mobile business was emerging at the time, we only had a fixed-line company. The transformation was big and taught me that, when you face a difficult decision, you must ask: “If I continue, can I create value for society?” If you believe so, then you keep going.
Leading Asia
For example, after we ventured into mobile, the global mobile crisis hit in about 2003 and frequency prices were skyrocketing. Many people, even creditors, suggested we stop and cut our losses, but I made the tough decision to maintain, expand, and rebrand the business. The market had low penetration and huge potential for us to become a key infrastructure player in Thailand. I went around the world and raised more than $1 billion to cover the debt and expand the network.
Then, in 2011, when CP Group acquired Hutchinson’s mobile operations, we decided to invest in 3G. When we started rolling it out, we faced regulatory and legal hurdles. However, I decided it was worth the effort as there was no 3G in Thailand at the time. Our subscribers started growing by the millions. By the end of 2012, the market opened and the whole country moved to 3G.
My experience has taught me that if you do the right thing for people and the market, then it is worth the risk. This reflects CP Group’s “Three Benefits Principle,” which is a belief that focuses on doing things for the greater good: if you invest and operate in a country, first, the people must benefit, then the country, and finally, the company. This waterfall approach is a sustainable way of doing business because you look beyond short-term gains to the long-term benefits for others.
If you invest and operate in a country, first, the people must benefit, then the country, and finally, the company.
Joydeep Sengupta: What is your philosophy on innovation?
Suphachai Chearavanont: There’s always an opportunity to close the gap between what the industry wants and what the market wants. We prioritize these opportunities based on how the market can improve or how we can solve a major pain point. Closing the gaps involves innovation, which most of the time comes from changes in technology or applying technology differently. For example, when we saw payments going online, we realized assets were being digitalized. So, we started Ascend Money, a digital wallet application suited to the culture of the region, to close that gap.
To cultivate the talent to achieve this, you have to select the right people with the right values and attitude. Then you need to create a secure environment for them to be able to innovate with speed and agility. We need more transformation and technology-driven growth, which brings complexity—you can have the data, but if people don’t have the right mindset, it’s useless. We need to encourage people to share one vision, which comes down to creating a culture open to trying new things.
And you, as a leader, have to get your hands dirty. You have to get things wrong, fail, evaluate, and try again. You need to work with your team because, at the end of the day, they might hesitate to make decisions, and you have to support them. You need to be a fighter but also a learner, as the world is changing so quickly. If you don’t learn, you’ll get hurt. Your success—your former success—only holds you back if you cling to it. You have to move forward as quickly as possible.
We look at the business group in terms of synergy and a long-term transformation strategy. That makes the risk more manageable. Investments are strengthened by leveraging our ecosystem, ensuring strategic fit and value creation.
Joydeep Sengupta: How do you balance the scale of risk?
Suphachai Chearavanont: We look at the business group in terms of synergy and a long-term transformation strategy. That makes the risk more manageable. Investments are strengthened by leveraging our ecosystem, ensuring strategic fit and value creation, rather than pursuing isolated opportunities without a clear foundation.
Yam Sivakriskul: What are the challenges of being a conglomerate as large as CP Group?
Suphachai Chearavanont: One of the challenges is that the businesses you operate are inside the Group. You want these businesses to be independent, but you also want synergy. If you impose too many top-down policies, the businesses lose innovation. But how do you encourage collaboration without killing independence? Putting the right platform in place for different people to collaborate is critical. For example, the CP Leadership Center fosters collaboration by creating opportunities for leaders to align, exchange ideas, and drive joint initiatives. Similarly, the CP Innovation Center brings together like-minded technology and IT departments to synergize and develop technology faster.
