Starhub Compensation Project

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This is a Performance Management and Compensation module project based on Starhub compensation policy.

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Starhub Compensation Project

  1. 1. SENIOR  MANAGEMENT   PERFORMANCE  REVIEW By: Baoyun Karyn Kee  Yann Naz ParkapanSunday, April 1, 12 1
  2. 2. 1. Pay Package Review 2.Balance Scorecard for Starhub 3.Implementation ContentSunday, April 1, 12 2
  3. 3. Pay Package ReviewSunday, April 1, 12 3
  4. 4. • Performance Share Plan: Up to 303,600 shares !$2,400,000!! • Restricted Stock Plan: Up Benefits#in#kind! to 264,000 shares Variable!(Performance!Bonus! !$2,100,000!!   Scheme!&!EVA)!  on  LT ance Fixed! asis rform  Emph d  Pe !$1,800,000!! e ase nt  an • Incr itme C omm • Performance Share Plan: !$1,500,000!! Up to 243,800 shares • Restricted Stock Plan: Up to 106,500 shares !$1,200,000!! •Performance Share Plan: Up to 103,500 shares !$900,000!! •Restricted Stock Plan: Up to 48,000 shares !$600,000!! !$300,000!! !$#!! Chan!Kin!Hung!(Head,! Ng!Long!Shyang! Diana!Lee!(Head,! Kwek!Buck!Chye!(CFO)! Tan!Tong!Hai!(COO)! Neil!Montefiore!(CEO)! Products!&!SoluCons)! (Head,!Sales!&! Customer!Service)! MarkeCng)! Band A Band B Band C Band DSunday, April 1, 12 4
  5. 5. ACUBE FACTOR ASSESSMENT REMARKS Use of performance measures: Balance Scorecard (BSC) and periodic performance Aligning interest of targets (short-, med- and long- term), benchmarked to Total Shareholder senior management Return (TSR) measured against the MSCI Asia-Pac Telecommunications Index and to shareholders Wealth Added which measures the investment performance in terms of TSR against shareholders’ expected returns (using cost of equity). Through variable components Motivate Short-Term: Performance Bonus Scheme, Economic Value Added (EVA) Med-Term: Performance Share Plan performance Long-Term: Restricted Stock Plan EVA: 1/3 payable annually, remaining payable upon resignation or termination of employment. Value is subjected to changes and is dependent on Company’s EVA performance. Motivate Long Performance Share Plan: Actual number of shares given will be dependent on the Term commitment level of achievement of the prescribed performance targets over a performance period, typically 3 years. Restricted Stock Plan: Awards granted can only be vested after a satisfactory completion of time-base service conditions or after a further period of service beyond the performance target completion date. Within the bands: Jobs within the same pay band receive similar pay packages. Internal equity Across the bands: Size of total compensation increases in tandem with the increase in the importance and value of roles in the organization. Cost control Competitive with market pay package. Done through variable pay, deferred payments and issuance of performance shares and restricted stocks.Sunday, April 1, 12 5
  6. 6. Balance Scorecard for StarhubSunday, April 1, 12 6
  7. 7. BALANCE SCORECARD STRATEGIC MANAGEMENT TOOL “A management system that enables organizations to clarify their vision and strategy and translate into action.”Sunday, April 1, 12 7
  8. 8. BALANCE SCORECARD STRATEGIC MANAGEMENT TOOL Financial Financial Customer Customer Internal Process Internal Process Learning & Growth Learning & GrowthSunday, April 1, 12 8
  9. 9. BALANCE SCORECARD STRATEGIC MANAGEMENT TOOL Financial Financial Customer Customer Performance Strategic Measurements Objectives Internal Internal Process Process Learning& Learning & Growth GrowthSunday, April 1, 12 9
  10. 10. “Equal “Top down weightage approach” for each perspective” Limitations of “Focus on Conventional short term Balance financial measures” ScorecardSunday, April 1, 12 10
  11. 11. Limitations of Conventional Balance Scorecard Generate “Focus on “Equal Tailor “Top weightage short term down approach”each financial for measures” perspective” Cascade RefineSunday, April 1, 12 11
  12. 12. METHODOLOGY Vision/Mission Strategic Objective COO CEO Strategy Map Generate Tailor BSC Corporate Level Cascade Refine BSC Strategic Business Unit Level BSC Sub-Strategic Business Unit LevelSunday, April 1, 12 12
  13. 13. METHODOLOGY Vision/Mission Strategic Objective COO CEO Strategy Map Generate Tailor BSC Corporate Level Cascade Refine BSC Strategic Business Unit Level BSC Sub-Strategic Business Unit LevelSunday, April 1, 12 13
  14. 14. Mission To provide every person, home and business in Singapore with world-class multimedia Vision services and content To be Singapore’s first choice for information, communications and entertainment services.Sunday, April 1, 12 14
  15. 15. METHODOLOGY Vision/Mission Strategic Objective COO CEO Strategy Map Generate Tailor BSC Corporate Level Cascade Refine BSC Strategic Business Unit Level BSC Sub-Strategic Business Unit LevelSunday, April 1, 12 15
  16. 16. Revenue Growth Create Long Term Shareholder Value Excellent & Optimal Customer Management Creation of Customer Value Operational Encourage Innovation Excellence within Organizations Having a Well Managing Social & Trained & Motivated Environmental Impacts Attract & Retain Workforce Talent Maintaining Good Employee Workplace Culture & Satisfaction DiversitySunday, April 1, 12 16
  17. 17. METHODOLOGY Vision/Mission Strategic Objective COO CEO Strategy Map Generate Tailor BSC Corporate Level Cascade Refine BSC Strategic Business Unit Level BSC Sub-Strategic Business Unit LevelSunday, April 1, 12 17
  18. 18. Create Long Term Shareholder Value Financial Increase Revenue Growth Productivity Excellent & Optimal Customer Creation of Customer Value Customer Management Operational Internal Excellence Process Encourage Innovation Managing Social & within Organizations Environmental Impacts Having a Well Attract & Retain Employee Learning Talent Trained & Motivated Satisfaction & Growth Workforce Maintaining Good Workplace Culture & DiversitySunday, April 1, 12 18
  19. 19. METHODOLOGY Vision/Mission Strategic Objective COO CEO Strategy Map Generate Tailor BSC Corporate Level Cascade Refine BSC Strategic Business Unit Level BSC Sub-Strategic Business Unit LevelSunday, April 1, 12 19
  20. 20. Perspectives Create Long Term Increase Revenue Growth FINANCIAL FINANCIAL Shareholder Value Productivity • Earning per share • Free cash flow • EBITDA • Dividend per share • Total operating expenses • Operating revenue • Profit attributable to shareholders • Total shareholder’s return Objectives Excellent & Optimal Creation of CUSTOMER Customer Measurements Customer Value Management • Market survey of • % of retention CUSTOMER customer • % Starhub customer ratings satisfaction value • # of complaints Operational Encourage Innovation Managing Social & Excellence within Organizations Environmental Impacts INTERNAL PROCESS INTERNAL PROCESS • Total service downtime • Internal rate of return from new • Environmental emissions (carbon footprint) product • CSP presence • R&D expenses • # of positive media • Response time in reaction to • Amount of funding purposes (donations) technological trends • Amount of lawsuits LEARNING & • Energy use, fuel & water consumption GROWTH • Sources of GHG Emissions Having a Well Maintaining Good LEARNING & Attract & Retain Employee GROWTH Trained & Motivated Workplace Culture & Talent Workforce Diversity Satisfaction • Employee turnover eate • Overall avg. training hours • Employee culture score • Employee satisfaction • # of new applicants • Leadership development • Employee engagement survey score • Employer of choice • Employee morale survey score survey • Workplace profileSunday, April 1, 12 20
  21. 21. METHODOLOGY Vision/Mission Strategic Objective COO CEO Strategy Map Generate Tailor BSC Corporate Level Cascade Refine BSC Strategic Business Unit Level BSC Sub-Strategic Business Unit LevelSunday, April 1, 12 21
  22. 22. Tan Tong Hai Chief Operating Officer Mr. Tan oversees the day-to-day operations of the company and has direct responsibility of the companys Sales & Marketing, Products & Solutions, Enterprise Business, Customer Service, Network Engineering & Information Services, Wholesale & International Services and Government & Strategic Affairs divisions.Sunday, April 1, 12 22
  23. 23. COO Create Long Term Increase Revenue Growth FINANCIAL FINANCIAL Shareholder Value Productivity • Earning per share • Free cash flow • EBITDA • Dividend per share • Total operating expenses • Operating eevenue • Profit attributable to shareholders • Total shareholder’s return Excellent & Optimal Creation of CUSTOMER Customer Customer Value Management • Market survey of CUSTOMER customer • % of retention satisfaction value Operational Encourage Innovation Managing Social & Excellence within Organizations Environmental Impacts INTERNAL PROCESS INTERNAL PROCESS • Total service downtime • Internal rate of return from new • Environmental emissions (carbon footprint) product • Response time in reaction to technological trends LEARNING & • Energy use, fuel & water consumption GROWTH • Sources of GHG Emissions Having a Well Maintaining good LEARNING & Attract & Retain Employee GROWTH Trained & Motivated work place culture & Talent Workforce diversity Satisfaction • Employee Turnover Rate • Overall avg. training hours • Employee Culture score • Employee satisfaction • # of new applicants • Leadership development • Employee Engagement survey score • Employer of choice score survey • workplace profileSunday, April 1, 12 23
  24. 24. Neil Montefiore Chief Executive Officer • Plans and directs all aspects of an organizations policies, objectives, and initiatives. • Responsible for the short- and long-term profitability and growth of the company. • Relies on extensive experience and judgment to plan and accomplish goals. • Leads and directs the work of others. • A wide degree of creativity and latitude is expected. • May preside over board of directorsSunday, April 1, 12 24
  25. 25. CEO Create Long Term Increase Revenue Growth FINANCIAL FINANCIAL Shareholder Value Productivity • Earning per share • Free Cash Flow • EBITDA • Dividend per share • Total Operating expenses • Operating revenue • Profit attributable to shareholders • Total shareholder’s return Excellent & Optimal Creation of CUSTOMER Customer Customer Value Management • market survey of CUSTOMER customer • % Starhub customer ratings satisfaction value • # of complaints Operational Encourage Innovation Managing Social & Excellence within Organizations Environmental Impacts INTERNAL PROCESS INTERNAL PROCESS • Total service downtime • CSP presence • R&D expenses • # of positive media • Amount of funding purposes (donations) LEARNING & • # of lawsuits GROWTH Having a Well Maintaining Good LEARNING & Attract & Retain Employee GROWTH Trained & Motivated Workplace Culture & Talent Workforce Diversity Satisfaction • Employee turnover rate • Employee culture score • Employee Satisfaction • # of new applicants • Employee engagement Survey score • Employee morale survey • Employer of choice score survey • Workplace profileSunday, April 1, 12 25
  26. 26. METHODOLOGY Vision/Mission Strategic Objective COO CEO Strategy Map Generate Tailor BSC Corporate Level Cascade Refine BSC Strategic Business Unit Level BSC Sub-Strategic Business Unit LevelSunday, April 1, 12 26
  27. 27. Source: Niven, P.R. (1999), "Cascading the balanced scorecard: a case study on Nova Scotia Power, Inc.", Journal of Strategic Performance Measurement, Vol. 1 No.2, pp.5-12.Sunday, April 1, 12 27
  28. 28. CORPORATE LEVEL (COO) PERSPECTIVE GOAL MEASURE Financial Revenue • EBITDA Growth • Operating Revenue SBU LEVEL (HEAD OF SALES & MARKETING) PERSPECTIVE GOAL MEASURE • Total Revenue from Services: Revenue • Revenue (Mobile) Financial Growth • Revenue (PayTV) • Revenue(Broadband) • Revenue (Data & Internet) CORPORATE LEVEL (COO) PERSPECTIVE GOAL MEASURE Operational Internal Process Excellence • Total service downtime Cascade SBU LEVEL (HEAD OF SALES & MARKETING) PERSPECTIVE GOAL MEASURE Refine existing • Cost savings form operating expenses Internal Process operational practices • Repair & Maintenance expensesSunday, April 1, 12 28
  29. 29. Ng Long Shyang Head of Sales & Marketing Mr. Ng heads the Sales & Marketing Division. He is in charge of sales and marketing for the companys products and services targeted at the consumer segment. His responsibilities include managing StarHubs distribution channels (including retail stores, partners and direct sales), sales fulfillment, mobile device merchandising, retail and segment marketing, brand management and marketing communications.Sunday, April 1, 12 29
  30. 30. Head ofof SalesHead Sales & Increase &Marketing Marketing Productivity Revenue Growth FINANCIAL FINANCIAL • Measure employee • Total revenue from services: productivity •Revenue (Mobile) • Total operating expenses •Revenue (PayTV) •Revenue(Broadband) •Revenue (Data & Internet) Provide Reliable & CUSTOMER Expand Bases of Enhance Customer Meet the Needs of Value for Money Customers Satisfaction Coporate Clients Products CUSTOMER • Total # of household subscribing to 3 • Quality of network • Customer rating on level of • Response time in meeting services (Hubbing Index) • connectivity satisfaction the needs • Total subscriber base for mobile, Pay • Consumers brand - Call center interaction TV, broadband perception survey - Technical services • Total # of new subscribers - Customer service centres • Churn rate • # of complaints • % of market penetration of consumers • Response time in service recovery INTERNAL & Corp PROCESS INTERNAL PROCESS Increase Refine Existing Manage Smooth Flow of Innovations within Raising Brand Operational Distribution Implementing Next Departments Awareness Practices Channels Gen NBN LEARNING & • New services/products • Cost savings form • # of store openings in • Meeting schedules for • # of campaigns published GROWTH introduced operating expenses high traffic areas and connection of • Rate of return from new • Repair & maintenance also heartland mall households services/products expenses • # connectivity lapses LEARNING & GROWTH Recognizing and Invest in People Employee Rewarding Employee Contributions Development Satisfaction • # of staff recognition • No. of hours for sales training • Employee satisfaction awards given clocked by employees • Training ROISunday, April 1, 12 30
  31. 31. METHODOLOGY Vision/Mission Strategic Objective COO CEO Strategy Map Generate Tailor BSC Corporate Level Cascade Refine BSC Strategic Business Unit Level BSC Sub-Strategic Business Unit LevelSunday, April 1, 12 31
  32. 32. Method: Apply weightage to each quadrant of scores when calculating total score Rationale: ‣ Ensure that BSC score will be measured according to the importance of each of the 4 quadrants for respective roles ‣ Overcome limitations of BSC’s weakness of not being able to prioritize goals and Refine measureSunday, April 1, 12 32
  33. 33. CEO 30% 30% 10% 30% Financial Customer Internal Process Learning & GrowthSunday, April 1, 12 33
  34. 34. COO 20% 20% 10% 50% Financial Customer Internal Process Learning & GrowthSunday, April 1, 12 34
  35. 35. Head of sales & Marketing 10% 10% 30% 50% Financial Customer Internal Process Learning & GrowthSunday, April 1, 12 35
  36. 36. Score will be based on how well they have achieved their target. 100 = Meeting target <100 = Missing target >100 = Exceeding target SBU LEVEL HEAD OF SALES & MARKETING PERSPECTIVE GOAL MEASURE TARGET SCORE WEIGHTAGE • Total Revenue from Services: • Revenue (Mobile) FINANCIAL Revenue Growth • • Revenue (PayTV) Revenue(Broadband) A 30% • Revenue (Data & Internet) Total score for Financial: Provide reliable & • Quality of network CUSTOMER PERSPECTIVE value for money products • connectivity • Consumers brand perception survey B 50% Total score for Customer Service: Refine existing INTERNAL PROCESS operational practices • Cost savings form operating expenses • Repair & Maintenance expenses C 10% Total score for Internal Process D 10% LEARNING & Invest in people • No. of hours for sales training clocked by employees GROWTH development • Training ROI Total score for Learning & GrowthSunday, April 1, 12 36
  37. 37. SBU LEVEL HEAD OF SALES & MARKETING PERSPECTIVE GOAL MEASURE TARGET SCORE WEIGHTAGE • Total Revenue from Services: • Revenue (Mobile) FINANCIAL Revenue Growth • Revenue (PayTV) • Revenue(Broadband) • Revenue (Data & Internet) Total score for Financial: CUSTOMER Provide reliable & • Quality of network PERSPECTIVE value for money • connectivity products • Consumers brand perception survey Total score for Customer Service: Refine existing INTERNAL operational • Cost savings form operating expenses PROCESS practices • Repair & Maintenance expenses Total score for Internal Process LEARNING & Invest in people • No. of hours for sales training clocked by employees GROWTH development • Training ROI Total score for Learning & Growth Total Score: A X 30% + B X 50% + C X 10% + D X 10%Sunday, April 1, 12 37
  38. 38. Implementation Balance ScorecardSunday, April 1, 12 38
  39. 39. Acube 3 C’s Communicate Create CascadeSunday, April 1, 12 39
  40. 40. Acube 3 C’s REVIEW & REVISION Management interview: Examine strategy & make relevant changes to Corporate level BSC Conducting workshops: Communicate to all involved in creating BSC Communicate Estimated Duration: 2 wksSunday, April 1, 12 40
  41. 41. CORPORATE LEVEL (COO) PERSPECTIVE GOAL MEASURE CUSTOMER Creation of • Market survey of customer PERSPECTIVE customer value satisfaction value SBU LEVEL (HEAD OF SALES & MARKETING) PERSPECTIVE GOAL MEASURE Enhance • Overall customer satisfaction CUSTOMER rating customer PERSPECTIVE satisfaction • Overall % of customer complaints SUB- SBU LEVEL (MARKETING MANAGER) PERSPECTIVE GOAL MEASURE • Customer rating on level of satisfaction ‣ Call center interaction Ca CUSTOMER Enhance ‣ Technical services sc PERSPECTIVE customer satisfaction ‣ Customer service centres ad • • # of complaints Response time in service e recovery ROLL OUT COMPANY WIDE Using the Corporate level BSC, implement BSC down to Business and Sub-business Units levels. Estimated Duration: 4 wksSunday, April 1, 12 41
  42. 42. Acube 3 C’s REVIEW & REVISION Management interview: Examine strategy & make relevant changes to Corporate level BSC Conducting workshops: Communicate to all Communicate involved in creating BSC PERFORMING TASK Estimated Duration: 2 wks Employees carry their duty based on their goals in the BSC Managers give performance rating based on measures & targets in BSC Estimated Duration: 10.5 mths Create Cascade ROLL OUT COMPANY WIDE Using the Corporate level BSC, implement BSC down to Business and Sub-business Units levels. Estimated Duration: 4 wksSunday, April 1, 12 42
  43. 43. Thank You Questions?Sunday, April 1, 12 43

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