employee engagement in complex global systems
DESCRIPTION
Employee EngagementAsia Conference- 27 February 2012Employee Engagement in Complex Global SystemsChanging employee demographics and rapidly evolving business models demonstrate aclear correlation to the way employees view their value, contribution and careeropportunities within their organisation. In particular, an organisations ability to attract andretain the best staff, depends on its ability to keep management's ear close to the groundon the needs and motivation of its talent. What can HR do clarify and amplify theorganisation's internal voiceTRANSCRIPT
EMPLOYEE ENGAGEMENT IN COMPLEX GLOBAL SYSTEMSCase Study, Concepts and Debatable Ideas
Kenny OngTakaful IKHLAS Sdn Bhd
TAKAFUL IKHLAS CORPORATE PROFILE• Shareholder : MNRB Holdings Berhad (100%)
• Established Date : 18 September 2002
• Operational since : 2 July 2003
• Takaful Model : Al-Wakalah
• Business Portfolio : General and Family Takaful
• Number Products : More than 90
• Number of Participants : More than 1,800,000
• Number of Agents : More than 6,000
• Number of Staff : 490
• Regional Offices : 11
• Paid Up Capital : RM295 million
Referral
Employees
Specialist& Hospitals
Panel GP Clinics
EMPLOYEES & DEPENDANT• Claims Submission• Tracking of eligibility• Enquiries & Complaints • Employee benefit materials• Unions• Abuse of benefits
PANEL CLINICS•Processing Bills•Payment •Appointment and removal•Policies & Procedures•Tracking Entitlements •Issues & Complaints•Overcharging & Abuse •MC Verification
SPECIALIST & HOSPITALS•Issuance of GL•Hosp. Bank Guarantee/Deposit•Appointment and removal •Tracking Entitlements•Processing Bills•Payment •Hospital Reports
CLIENT
TISB
EASY ACCESS TO CARE•Panel of 2000 clinics
nationwide•All major hospitals recognises
our GLs•Appointment & management of
medical panel
1st CLASS SERVICE•Benefit & Procedure briefing
•Help Desk•Tri-annual Cost & Utilization
Report•Benchmarking
•Analysis & Recommendations
PEACE OF MIND•24/7 LOG Issuance •Cashless Admission
•Comments
IKHLAS Medical/Health (EB/GHS) Solutions
Intro:
“Cow don’t drink water cannot push cow head down”
POST-RECESSIONThe World Today
The New World…
13th April 2009
•Two Domino’s employees
•YouTube
•Apology from Domino’s after 48 hours
•1 million hits
•Twitter: questions on silence
•LinkedIn: suggestions by users in forum
BusinessWeek, May 4, 2009
The Recession Days
Post Recession Trends and Implications
No trust in Big Companies
No trust in Experts
No trust in Best Practices
Cash Flow issues
M&A&D increase
Malaysia no big effect
Decrease in Offshoring
Seniors working longer, re-entry
Part-timers and Freelancers
Post Recession Trends and Implications
Industry Convergence/ Extinction
Social Networking
Green & CSR
Non-Profit/NGO increase
Increased RegulationsAuditors, Lawyers, Civil Servants, Consultants, Documentors
Most Popular Question
“When will we return to the last time?”
Wrong Question
TALENT WARS POST-RECESSION
Employee Management
Talent Wars: Pre- and Post- Recession
Last Time• Beg
• Buy
• Borrow
• Steal
Today• Beg <harder>
• Buy <@ higher price>
• Borrow <from diff. people>
• Steal <more often>
The New World…with New Problems
13th April 2009
•Two Domino’s employees
•YouTube
•Apology from Domino’s after 48 hours
•1 million hits
•Twitter: questions on silence
•LinkedIn: suggestions by users in forum
BusinessWeek, May 4, 2009
Question 1: Employee Engagement: Who?
Excellent
Very Good
Average
Not Good
Commit Suicide
Question 2
What is the Objective of Employee Engagement?
Intro
Ultimate Objective of Marketing: “Get more people, to buy more things, more frequently, at higher prices.”
Sergio Zyman
“Retention and Loyalty are useless if No Conversion is happening.”
Intro
“Retention and Loyalty are useless if No Conversion is happening.”
“Retention and Loyalty are useless if No Performance is happening.”
Intro
Loyalty is misleading…
• Heavy Consumption ≠ Loyalty
• Loyalty ≠ Heavy Consumption
• Good Performance ≠ Retention
• Retention ≠ Good Performance
Intro
Employee Engagement
• Succession Planning ≠ Business Continuity Planning
• Talent Management = Sustainable Business Performance Management
Principles and Objectives
Principles Company’s Needs
1.Succession Planning of Key Leaders – Founding Directors (perpetual business theory)
2.Retention of Key Staff – especially younger ones
3.Transform into a Performance-based organization
Principles and Objectives
Principles HR Philosophy
1.Equal / Fair
2.Happy / Productive
3.Hire Low, Train High
4.Performance vs Potential
5.Retention / Engagement
Demographic Segmentation - General
Veterans (Pre-Boomers)1934-1945
Boomers1945-1960
Gen X (Cusper, Buster)1960 - 1980
Gen Y (Millennials, Netster)
1980+
Demographic Segmentation - others
1. Women, Working Mothers
2. Youtube generation
3. Working retired
4. Social Activists
5. Work/Life balancers
Targeting: Identify and Attract
• Who are your Talents?
: A Talent for others does not mean a Talent for you
Example: ABC’s Talent Profile
• Unwanted by big MNCs• Small companies• Boring Environment• No Growth/Learning• No MBA• Passion, Values, IQ (streetsmart)• Appreciate Chaos• Multitask• Passion to Learn
Targeting: Identify and Attract
Group I
(Talent Pool)
23
45
PE
RF
OR
MA
NC
E
2 3 4 5
POTENTIAL• Identify
Targeting: Identify and Attract
Group I
(Talent Pool)
Group II
( Potential)
Group III
( Performance)
Group IV
(Counseling)
2 3 4 5
23
45
PE
RF
OR
MA
NC
E
POTENTIAL• Identify
Business and Employee Engagement
The Business of business is business, not Employee Engagement
“Hope is not a strategy”John Maxwell
The McPlaybook*
Make it easy to eat• 50% drive-thru• Meals held in one
hand
Make it easy to prepare• High Turnover• Tasks simple to learn
& repeat
Make it quick• “Fast Food”• Tests new products
for Cooking Times
Make what customers want• Prowls market for new
products• Monitored field tests
*Adapted from: Businessweek , Februrary 5th 2007
What is the Business Model?
USP
Market Discipline
Profit Model
•Tata Nano
Market Discipline
"They are the most innovative"
"Constantly renewing and creative"
"Always on the leading edge"
"A great deal!"
Excellent/attractive price
Minimal acquisition cost and hassle
Lowest overall cost of ownership
"A no-hassles firm"
Convenience and speed
Reliable product and service
"Exactly what I need"
Customized products
Personalized communications
"They're very responsive"
Preferential service and flexibility
Recommends what I need
"I'm very loyal to them"
Helps us to be a success
Product Leadership
OperationalExcellence
CustomerIntimacy•Air Asia
•LV
•Ramly
Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Alignment & Consistency: Market Disciplines
Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Strategy: Market Disciplines
Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Strategy: Market Disciplines
HP well-balanced portfolio, mass customization
Acer super lean cost structure, aggressive pricing
Apple powerful products, premium
pricing, limited range
Still Doing well in 2009-2011
Operational Excellence
• Competitive price
• Error free, reliable
• Fast (on demand)
• Simple
• Responsive
• Consistent information for all
• Transactional
• 'Once and Done'
Operational Excellence
• Competitive price
• Error free, reliable
• Fast (on demand)
• Simple
• Responsive
• Consistent information for all
• Transactional
• 'Once and Done'
Customer Intimacy
• Management by Fact
• Easy to do business with
• Have it your way (customization)
• Market segments of one
• Proactive, flexible
• Relationship and consultative selling
• Cross selling
Customer Intimacy
• Management by Fact
• Easy to do business with
• Have it your way (customization)
• Market segments of one
• Proactive, flexible
• Relationship and consultative selling
• Cross selling
Product Leadership
• New, state of the art products or services
• Risk takers
• Meet volatile customer needs
• Fast concept-to- counter
• Never satisfied - obsolete own and competitors' products
• Learning organization
Product Leadership
• New, state of the art products or services
• Risk takers
• Meet volatile customer needs
• Fast concept-to- counter
• Never satisfied - obsolete own and competitors' products
• Learning organization
Strategy: Market Disciplines
• Operational Excellence• Move know-how from top performing
units to others• Benchmark against best in class• Ensure operations training for all
employees• Use disciplines like TQM for continuous
learning to reduce costs and improve quality
Alignment & Consistency: Market Disciplines
Alignment & Consistency: Market Disciplines
• Customer Intimacy• Capture knowledge about customers• Understand customer needs• Empower front line employees• Ensure that everyone knows the
customer• Make company knowledge available to
customers
• Product Leadership• Reduce time to market• Commercialize new products fast• Ensure that ideas flow• Reuse what other parts of the company
have already learned• Ensure there are multiple sources of
funding
Alignment & Consistency: Market Disciplines
Operational Excellence
Operational Excellence
Customer Intimacy
Customer Intimacy
Product Leadership
Product Leadership
Organization, jobs,skills
Management systems
Information and systems
Culture, values,norms
Business Model vs. Talent & Performance Management
Operational Excellence
•Central authority, low level of empowerment•High skills at the core of the organization
•Disciplined Teamwork•Process, product- driven•Conformance, 'one size fits all' mindset
• Integrated, low cost transaction systems•The system is the process
•Command and control•Quality management
Operational Excellence
•Central authority, low level of empowerment•High skills at the core of the organization
•Disciplined Teamwork•Process, product- driven•Conformance, 'one size fits all' mindset
• Integrated, low cost transaction systems•The system is the process
•Command and control•Quality management
Organization, jobs, skills
Management systems
Information and systems
Culture, values,norms
Business Model vs. Talent & Performance Management
Organization, jobs,skills
Management systems
Information and systems
Culture, values,norms
Product Leadership
•Ad hoc, organic and cellular•High skills abound in loose-knit structures
•Concept, future-driven•Experimentation and 'out of the box' mindset
•Person-to-person communications systems•Technologies enabling cooperation
•Rewarding individuals' innovative capacity•Risk and exposure management•Product Life Cycle profitability
Product Leadership
•Ad hoc, organic and cellular•High skills abound in loose-knit structures
•Concept, future-driven•Experimentation and 'out of the box' mindset
•Person-to-person communications systems•Technologies enabling cooperation
•Rewarding individuals' innovative capacity•Risk and exposure management•Product Life Cycle profitability
Business Model vs. Talent & Performance Management
Organization, jobs,skills
Management systems
Information and systems
Culture, values,norms
Customer Intimacy
•Empowerment close to point of customer contact•High skills in the field and front-line
•Customer-driven•Variation and 'have it your way' mindset
•Strong customer databases, linking internal and external information
•Strong analytical tools
•Customer equity measures like life time value•Satisfaction and share management•Focus on ‘Share of Wallet’
Customer Intimacy
•Empowerment close to point of customer contact•High skills in the field and front-line
•Customer-driven•Variation and 'have it your way' mindset
•Strong customer databases, linking internal and external information
•Strong analytical tools
•Customer equity measures like life time value•Satisfaction and share management•Focus on ‘Share of Wallet’
Business Model vs. Talent & Performance Management
Retention, Engagement and Motivation
Employees are not your assets. Good Employees are your assets
Reminder…
Reality #1
Cash is King
Reminder …
Reality #2
Tangible C&B
Attraction
Reminder …
Reality #3
In-Tangible C&B
Retention
Reminder …
Reality #4
In-Tangible C&B
Tipping Point for Attraction/Retention
The 51.28% Theory
• Resign = Push + Pull > 51.28%
• If staff is Happy:=> 0 + Pull > 51.28%
Retention
Retention
Experience Swing Ex
Oppose
Retention 1: Experience
Loyalty = Experience vs. Expectations
Solution Strategy: Talent Management Plan
Loyalty 1: Experience• Talent
Management Plan
PhilosophyOJT, Mentoring, Big-5, LP, PDP, SDP, Projects,
P/P Grid, SP Table, PDP, Premium,
Q12, C&B, ACDP, SCL, Transfers, Events, Recognition
P/P Grid, Q12, PA, SDP, SP
Development
Motivation
Selection
Evaluation
Loyalty 2: Swing
Loyalty = Best alternative at the current moment until I find another alternative
Solution Strategy: Improve your Talent Management Plan, Try Your Best, or Live with It
Loyalty 2: Swing
Swing Talents are “loyal” because:• Individual Relationships• Convenience (at that point in time)• Contractually tied-up• Direct Incentives*• No better alternative• Subordinates• No known alternative• CV friendly
Post-Recession
Retention
Experience Swing Ex
Oppose
Post-Recession
Swing Loyalty: Try Your Best…
1. Over Promote
2. Loans
3. Spot Bonuses
4. Block recruiters
5. The Spouse
6. Toys
7. Glorified Titles
8. Forced Ambassador
9. “Position” the competition
10.Sell the Dream
11.Give them a Best Friend
12.Internal Trainer
SCL: Specialist Career Ladder
•Telco, •Outsourcing, •Aerospace, •Biotech,•Digital media, •Animation, •M&A•Financial forensics
Associate Specialist (2)
Specialist (4)
Consultant (4)
Principal Consultant (1)
Motivating Talent
Hope
Control
Motivating Talent
Passion Job
GrowthTalent
Minimum Motivation Target: 2 out of 4
Delegation
Curse of the Bell Curve
‘A’ Staff
‘B’ Staff
‘D’ Staff
‘E’ Staff
‘C’ Staff
End Notes & Start Up
The end of the Beginning
Are your employees willing to die for you?
Taj Mumbai, 2008 • 31 people died and 28 were hurt
• 1,200 and 1,500 guests escaped
• 11 Taj Mumbai employees died rescuing guests
• Restaurant and banquet staff rushed people to safe locations such as kitchens and basements.
• Telephone operators stayed at their posts, alerting guests to lock doors and not step out.
• Kitchen staff formed human shields to protect guests during evacuation attempts
Taj Mahal Palace, MumbaiNovember 26, 2008
Harvard Business Review, December 2011“The Ordinary Heroes of the Taj” by Rohit Deshpandé and Anjali Raina
Taj Mumbai, 2008
• Seek fresh recruits rather than lateral hires.
• Hire from small towns and semiurban areas, not metros.
• Recruit from high schools and second-tier business schools rather than colleges and premier B-schools.
• Induct managers who seek a single-company career and will be hands-on.
• Focus more on hiring people with integrity and devotion to duty than on acquiring those with talent and skills.
• Train workers for 18 months, not just 12.
• Ensure that employees can deal with guests without consulting a supervisor.
• Teach people to improvise rather than do things by the book.
• Insist that employees place guests’ interests over the company’s.
• Have incumbent managers, not consultants, conduct training.
• Use timely recognition, not money, as reward.
Harvard Business Review, December 2011“The Ordinary Heroes of the Taj” by Rohit Deshpandé and Anjali Raina
Thank You.
soft copy of slides: http://totallyunrelatedrandomanddebatable.
blogspot.com/