Employee Engagement in Complex Global Systems
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Employee Engagement
Asia Conference- 27 February 2012

Employee Engagement in Complex Global Systems
Changing employee demographics and rapidly evolving business models demonstrate a
clear correlation to the way employees view their value, contribution and career
opportunities within their organisation. In particular, an organisations ability to attract and
retain the best staff, depends on its ability to keep management's ear close to the ground
on the needs and motivation of its talent. What can HR do clarify and amplify the
organisation's internal voice

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  • This looks better right? But… also still not good enough, right? Refer to Handout 4: 1. Priority, Targets and Standards
  • CNI is very concerned about the subjectivity of the word ‘Customer Loyalty’… with the same concerns that Sergio Zyman has. Loyalty has to Equal business results and Changes in the Life of others.
  • Now let’s look at it from a HR perspective...
  • Just a thought… are we in business for loyalty or for consumption? Actually = BOTH are important and must be in balance. But today’s conference is on one side of the Equation and we must be mindful of that. We are still in the topic of Philosophy. So… are we in business for Retention or Performance?
  • Just a thought… are we in business for loyalty or for consumption? Actually = BOTH are important and must be in balance. But today’s conference is on one side of the Equation and we must be mindful of that. We are still in the topic of Philosophy. So… are we in business for Retention or Performance?
  • Refer to Handout: Managing Change – Understanding the Demographics of the Evolving Workforce.pdf Engaging the Four Generations of Workers Exercise: What are the Demographic spreads for your ‘Current’ vs. ‘Ideal’ Brand? What appeals to your ‘Ideal’ segment? What do you need to do to Brand your company?
  • Exercise: What are the Demographic spreads for your ‘Current’ vs. ‘Ideal’ Brand? What appeals to your ‘Ideal’ segment? What do you need to do to Brand your company?
  • B. Adopting creative approaches and models to attract and identify right talents There are many definitions of Talent. Don’t listen blindly to Consultants nor simply trust books nor MNC practices.
  • Performance The ability of a person to meet current expectations Key Words: Results, Targets, KPIs, Achievement, Expectations, Training, Job Concentrates on the Past i.e. what the person has done Potential The capacity of a person to meet future expectations Key Words: Competencies, Learning, Fit, Adversity, Failure rate, Development, Career Concentrates of the Future
  • Group 1: High Potential, High Performance (Talent) Staff this category will automatically be placed in the company’s Succession Plans. Be the first priority to be considered for any promotions or upgrading exercises. Career Acceleration + Specialist Career Paths. Group 2: Average Potential, High Performance (Leadership Issues) Leadership, motivational and cultural development would be given to these staff while they perform in their current positions. Group 3: High Potential, Average Performance (Potential) Should not be given career advancement unless performance improves. Good targets for transfers or job rotations to departments that require urgent manpower. Group 4: Average Potential, Low Performance (Issues) Staff in this group should be monitored closely by HR. They should be eventually moved out of their current work function, department or even the company entirely.
  • Example of successful customer loyalty strategy focusing on Operational Excellence and Product Leadership while maintaining market standard on Customer Service without indulging in it
  • The Business Model is made up of three components – Unique Selling Proposition, Profit Model and Market Discispline Each business is unique depending on how the Business Model is configured Each organization’s PMS has to follow the Business Model If your Business Model is wrong (or inferior), a better PMS cannot help you. Change your Business Model first Example: Google vs Yahoo USP – Simplicity, Search-focused, Free! Profit Model – Ad revenue MKt Discipline – Operational Excellence Example: Tata Nano vs. GM (Proton vs. Kia, Hyundai, Cherry) USP – Cheap (below USD2,500), no-frills Profit Model – Motorcycle (as opposed to Automobile manufacturing model) ‏
  • How does the Customer define “Great Experience”? - It depends on their own perceptions. Problem is…this differs depending on the Customer! If you are very good in something that the Customer does not value, it will not improve the Experience.
  • To Excel – Must be a Leader in ONE of the disciplines but the other two must be at least at industry standard
  • A leading business organization can only afford to focus on ONE, at the most TWO of the disciplines If you try to accomplish all three at once, you will end up with: an average business confused employees mixed up product lines too many KPIs wasted funds To Excel – Must be a Leader in ONE of the disciplines but the other two must be at least at industry standard
  • Quick slide to show that the Market Discipline approach is practical and proven
  • Each Market Discipline requires different operational emphasis This means that each Market Discipline requires a different Performance Management System in order to achieve results Trying to accomplish or benchmark all three (even two) will confuse and dilute your PMS effectiveness
  • The next four slides explain how an organization’s Business Model should affect the definition of ‘Talent’ , and the role of PMS in differentiating and highlighting them
  • Different Talents are attracted and motivated by different cultures, systems and norms Your Business Model (executed through your PMS) will decide which Talents you attract and keep The right Talent will help to execute the right Business Model
  • To CNI, there are two definitions and therefore two types of Employee Retention or employees who stay with you, both whom we have to treat differently.
  • *Strategy means concentrating all energy and all aspects of the organization for the purpose of Talent Management. In fact, it’s a mistake to call it “Talent Management” program. Very un-business like So… let’s call it “ Business Continuity Plan ” or “ Business Opportunity Planning ”?
  • Swing happens because of either: You cannot meet the basic expectations, or You are simply not the permanent choice **For the purpose of this Seminar, I am only taking number 1: Providing the Experience to Meet Expectations
  • *Be very very careful about using Direct Incentives:
  • To CNI, there are two definitions and therefore two types of Employee Retention or employees who stay with you, both whom we have to treat differently.
  • Red Underlined: Related to either Compensation or Benefits

Transcript

  • 1. EMPLOYEE ENGAGEMENT INCOMPLEX GLOBAL SYSTEMSCase Study, Concepts and Debatable IdeasKenny OngTakaful IKHLAS Sdn Bhd
  • 2. 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
  • 3. IKHLAS Medical/Health (EB/GHS) Solutions EASY ACCESS TO CARE CLIENT PANEL CLINICS •Panel of 2000 clinics •Processing Bills nationwide •Payment •All major hospitals recognises •Appointment and our GLs removal •Policies & Procedures•Appointment & management of •Tracking Entitlements medical panel TISB •Issues & Complaints •Overcharging & Abuse 1st CLASS SERVICE •MC Verification •Benefit & Procedure briefing Panel GP Clinics •Help Desk •Tri-annual Cost & Utilization Specialist Referral Report & Hospitals •Benchmarking SPECIALIST & HOSPITALS •Analysis & Recommendations Employees •Issuance of GL •Hosp. Bank EMPLOYEES & DEPENDANT Guarantee/Deposit • Claims Submission •Appointment and removal PEACE OF MIND • Tracking of eligibility •Tracking Entitlements •24/7 LOG Issuance • Enquiries & Complaints •Processing Bills •Cashless Admission • Employee benefit materials •Payment •Comments • Unions •Hospital Reports • Abuse of benefits
  • 4. Intro:“Cow don’t drink water cannot push cow head down”
  • 5. The World TodayPOST-RECESSION
  • 6. 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 forumBusinessWeek, May 4, 2009
  • 7. The Recession Days
  • 8. Post Recession Trends and ImplicationsNo trust in Big Malaysia no bigCompanies effectNo trust in Experts Decrease in OffshoringNo trust in BestPractices Seniors working longer, re-entryCash Flow issues Part-timers andM&A&D increase Freelancers
  • 9. Post Recession Trends and ImplicationsIndustry Convergence/ExtinctionSocial Networking Auditors,Increased Regulations Lawyers, Civil Servants,Green & CSR Consultants, DocumentorsNon-Profit/NGOincrease
  • 10. Most Popular Question“When will we return to the last time?”  Wrong Question
  • 11. Employee ManagementTALENT WARS POST-RECESSION
  • 12. Talent Wars: Pre- and Post- RecessionLast Time Today• Beg • Beg <harder>• Buy • Buy <@ higher• Borrow price>• Steal • Borrow <from diff. people> • Steal <more often>
  • 13. 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
  • 14. Question 1: Employee Engagement:Who? Excellent Very Good Average Not Good Commit Suicide
  • 15. Question 2What is the Objective of Employee Engagement?
  • 16. IntroUltimate Objective of Marketing:“Get more people, to buy morethings, more frequently, at higherprices.”“Retention and Loyalty are useless ifNo Conversion is happening.” Sergio Zyman
  • 17. Intro“Retention and Loyalty are useless ifNo Conversion is happening.”“Retention and Loyalty are useless ifNo Performance is happening.”
  • 18. IntroLoyalty is misleading…• Heavy Consumption ≠ Loyalty• Loyalty ≠ Heavy Consumption• Good Performance ≠ Retention• Retention ≠ Good Performance
  • 19. IntroEmployee Engagement• Succession Planning ≠ Business Continuity Planning• Talent Management = Sustainable Business Performance Management
  • 20. Principles and Objectives Principles Company’s Needs1. Succession Planning of Key Leaders – Founding Directors (perpetual business theory)2. Retention of Key Staff – especially younger ones3. Transform into a Performance-based organization
  • 21. Principles and ObjectivesPrinciples HR Philosophy 1. Equal / Fair 2. Happy / Productive 3. Hire Low, Train High 4. Performance vs Potential 5. Retention / Engagement
  • 22. Demographic Segmentation - General Veterans (Pre-Boomers) 1934-1945 Gen Y Boomers(Millennials, Netster) 1945-1960 1980+ Gen X (Cusper, Buster) 1960 - 1980
  • 23. Demographic Segmentation - others1. Women, Working Mothers2. Youtube generation3. Working retired4. Social Activists5. Work/Life balancers
  • 24. Targeting: Identify and Attract• Who are your Talents? : A Talent for others does not mean a Talent for you
  • 25. 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
  • 26. Targeting: Identify and Attract• Identify POTENTIAL 2 3 4 5PERFORMANCE Group I 5 (Talent Pool) 4 3 2
  • 27. Targeting: Identify and Attract• Identify POTENTIAL 2 3 4 5PERFORMANCE Group II Group I 5 ( Potential) (Talent Pool) 4 Group IV Group III 3 (Counseling) ( Performance) 2
  • 28. Business and Employee EngagementThe Business of business is business, not Employee Engagement
  • 29. “Hope is not a strategy” John Maxwell
  • 30. The McPlaybook* Make it easy to eat Make it easy to prepare • 50% drive-thru • High Turnover • Meals held in one • Tasks simple to learn hand & repeat Make it quick Make what customers want • “Fast Food” • Prowls market for new • Tests new products products for Cooking Times • Monitored field tests*Adapted from: Businessweek , Februrary 5th 2007
  • 31. What is the Business Model?•Google•Tata Nano USP Market Profit Model Discipline
  • 32. Market Discipline Product "They are the most innovative" •LV Leadership "Constantly renewing and creative" "Always on the leading edge"•Air Asia Operational •Ramly Customer Intimacy Excellence "Exactly what I need""A great deal!" Customized products Excellent/attractive price Personalized communications Minimal acquisition cost and "Theyre very responsive" hassle Preferential service and Lowest overall cost of flexibility ownership Recommends what I need"A no-hassles firm" "Im very loyal to them" Convenience and speed Helps us to be a success Reliable product and service
  • 33. Alignment & Consistency: Market Disciplines Product Leadership (best product)Operational Excellence Customer Intimacy (low cost producer) (best total solution)Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
  • 34. Strategy: Market Disciplines Product Leadership (best product) Operational Excellence Customer Intimacy (low cost producer) (best total solution)Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
  • 35. Strategy: Market Disciplines Product Leadership Apple powerful (best product) products, premium pricing, limited range Still Doing well in 2009-201 Acer super lean 1 HP well-balanced cost structure, portfolio, mass aggressive pricing customization Operational Excellence Customer Intimacy (low cost producer) (best total solution)Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
  • 36. Strategy: Market DisciplinesOperational Product Leadership Customer Intimacy Excellence • New, state of the • Management by• Competitive price art products or Fact• services Error free, • Easy to do reliable • Risk takers business with• Fast (on • Meet volatile • Have it your way demand) customer needs (customization)• Simple • Fast concept-to- • Market segments• counter of one Responsive• • Never satisfied - • Proactive, Consistent obsolete own and flexible information for competitors all • Relationship and products• consultative Transactional • Learning selling• Once and Done organization • Cross selling
  • 37. Alignment & Consistency: 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
  • 38. 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
  • 39. Alignment & Consistency: Market Disciplines• 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
  • 40. Business Model vs. Talent & Performance ManagementOrganization, jobs,skillsCulture, values,norms Operationa Product Customer l Leadership IntimacyInformation andsystems Excellenc eManagementsystems
  • 41. Business Model vs. Talent & Performance Management Operational ExcellenceOrganization, • Central authority, low level of empowermentjobs, skills • High skills at the core of the organization • Disciplined TeamworkCulture, values,norms • Process, product- driven • Conformance, one size fits all mindsetInformation and • Integrated, low cost transaction systemssystems • The system is the processManagement • Command and controlsystems • Quality management
  • 42. Business Model vs. Talent & Performance Management Product LeadershipOrganization, jobs,•Ad hoc, organic and cellularskills •High skills abound in loose-knit structuresCulture, values, •Concept, future-drivennorms •Experimentation and out of the box mindsetInformation and •Person-to-person communications systemssystems •Technologies enabling cooperationManagement •Rewarding individuals innovative capacitysystems •Risk and exposure management •Product Life Cycle profitability
  • 43. Business Model vs. Talent & Performance Management Customer IntimacyOrganization, jobs,• Empowerment close to point of customerskills contact • High skills in the field and front-lineCulture, values,norms • Customer-driven • Variation and have it your way mindsetInformation andsystems • Strong customer databases, linking internal and external information • Strong analytical toolsManagementsystems • Customer equity measures like life time value • Satisfaction and share management • Focus on ‘Share of Wallet’
  • 44. Retention, Engagement and Motivation Employees are not your assets. Good Employees are your assets
  • 45. Reminder…Reality #1 Cash is King
  • 46. Reminder …Reality #2 Tangible C&B Attraction
  • 47. Reminder …Reality #3 In-Tangible C&B Retention
  • 48. Reminder …Reality #4 In-Tangible C&B Tipping Point for Attraction/Retention
  • 49. The 51.28% Theory• Resign = Push + Pull > 51.28%• If staff is Happy: => 0 + Pull > 51.28%
  • 50. Retention RetentionExperience Swing Ex Oppose
  • 51. Retention 1: ExperienceLoyalty = Experience vs. Expectations Solution Strategy: Talent Management Plan
  • 52. Loyalty 1: Experience • Talent P/P Grid, SP Table, Management Plan PDP, Premium, SelectionP/P Grid, Q12,PA, SDP, SP Evaluation Philosophy Development OJT, Mentoring, Big-5, LP, PDP, Motivation SDP, Projects, Q12, C&B, ACDP, SCL, Transfers, Events, Recognition
  • 53. Loyalty 2: SwingLoyalty = 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
  • 54. Loyalty 2: SwingSwing 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
  • 55. Post-Recession RetentionExperience Swing Ex Oppose Post-Recession
  • 56. Swing Loyalty: Try Your Best…• Over Promote 1. “Position” the• Loans competition• Spot Bonuses 2. Sell the Dream• Block recruiters 3. Give them a Best• Friend The Spouse• Toys 4. Internal Trainer• Glorified Titles• Forced Ambassador
  • 57. SCL: Specialist Career Ladder •Telco,Principal Consultant (1) •Outsourcing, •Aerospace, Consultant (4) •Biotech, Specialist (4) •Digital media, •Animation, •M&AAssociate Specialist (2) •Financial forensics
  • 58. Motivating TalentHope Control
  • 59. Motivating TalentPassion Job Delegation Talent Growth Minimum Motivation Target: 2 out of 4
  • 60. Curse of the Bell Curve ‘A’ ‘B’ ‘C’ ‘D’ ‘E’Staff Staff Staff Staff Staff
  • 61. End Notes & Start Up The end of the Beginning
  • 62. Are your employees willing to die for you?
  • 63. • 31 people died and 28 were Taj Mumbai, 2008 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 Taj Mahal Palace, Mumbai to lock doors and not step November 26, 2008 out. • Kitchen staff formed human shields to protect guestsHarvard Business Review, December 2011 during evacuation attempts“The Ordinary Heroes of the Taj” by Rohit Deshpandé and Anjali Raina
  • 64. Taj Mumbai, 2008• Seek fresh recruits rather than • Train workers for 18 months, not lateral hires. just 12.• Hire from small towns and • Ensure that employees can deal semiurban areas, not metros. with guests without consulting a• Recruit from high schools and supervisor. second-tier business schools • Teach people to improvise rather rather than colleges and premier than do things by the book. B-schools. • Insist that employees place• Induct managers who seek a guests’ interests over the single-company career and will be company’s. hands-on. • Have incumbent managers, not• Focus more on hiring people with consultants, conduct training. integrity and devotion to duty than • Use timely recognition, not on acquiring those with talent and money, as reward. skills. Harvard Business Review, December 2011 “The Ordinary Heroes of the Taj” by Rohit Deshpandé and Anjali Raina
  • 65. Thank You. soft copy of slides:http://totallyunrelatedrandomanddebatable. blogspot.com/