Truitt answers employee questions
Q-How does your new organization reflect
your thinking about APC?
A-It recognizes three basic APC groups: Ron Kiracofe's "commercial" businesses; supply, refining, distribution, and wholesale; and retail marketing. The organization isn't that different from before. Its "flatness" fosters communication. We're getting the teamwork benefits from the previous organization where needed.
Q-What's the significance of Kiracofe's new group?
A-These businesses (PayPoint, Coke, Cogen Polypropylene Procurement, and International) are important. Being in one group will get them more focused attention.
Q-Are you changing APC's strategy?
A-We want to maximize and focus on our core businesses, expand into new areas, and remain the low cost producer. We'll continue APC's legacy of innovation, change, and responsiveness. We'll be decisive.
Q-Why are you so focused on cost reduction?
A-We are in a commodities business, which means that our products are very similar to our competitors'. A key way to make ours more attractive to consumers is through a competitive price, which means our cost must be lower to remain profitable. The competition continues to lower their costs and they are catching up. Being the low price provider is key to our success. As we grow, we will always focus on costs.
Q- What will APC look like in five years?
A-We'll be running a much higher percentage of non-Alaska crudes, and be a significant player in Asia, Canada, and Mexico. We'll have more marketing and manufacturing assets.
Q-That's a bullish projection. Why are a number of employees anxious?
A-They see cost reductions and are concerned about our effort to grow. Because APC has traditionally focused on one strategy, we tend to think in black and white terms. For instance, when I tell people APC's core business is buying, upgrading, and selling hydrocarbons, they think we're getting out of the food business. But food sales are very important. We are moving into a more complex era.
Q-Because you're looking for a new Senior VP of Retail from outside of APC, many in retail are concerned retail has been found wanting.
A- Our retail marketers are the best. Programs like Retail Excellence, Island Cash Acceptor, and Captain Service are moving ahead. But our competitors are getting better and we need an even stronger external focus.
Q-What kind of Senior Retail Marketing VP are you looking for, and when will that person be on board?
A-We're looking at people from major and independent oil firms, and from outside the industry. I hope that person is named by June. We want a person with a retail track record who will bring new ideas and help lead marketing's expansion into the Pacific Rim.
Q-You were at APC for nine months in 1994 as manufacturing VP. Will you stay longer this time, or might you soon move on and up?
A-APC is my passion. This is the job I want and plan to do for a long time.
Q-You've said you want employees to "have fun." With cost reduction efforts and change, some are wondering when the "fun" begins.
A- If we create an atmosphere where people can think, act, and feel like owners, I believe it will be fun. I hope we are on our way.