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

1. EMPLOYEE ENGAGEMENT IN
COMPLEX GLOBAL SYSTEMS
Case Study, Concepts and Debatable Ideas
Kenny Ong
Takaful 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 Today
POST-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 forum
BusinessWeek, May 4, 2009

7. The Recession Days

8. Post Recession Trends and
Implications
No trust in Big Malaysia no big
Companies effect
No trust in Experts Decrease in
Offshoring
No trust in Best
Practices Seniors working
longer, re-entry
Cash Flow issues
Part-timers and
M&A&D increase
Freelancers

9. Post Recession Trends and
Implications
Industry Convergence/
Extinction
Social Networking
Auditors,
Increased Regulations Lawyers, Civil
Servants,
Green & CSR Consultants,
Documentors
Non-Profit/NGO
increase

10. Most Popular Question
“When will we return to the
last time?”
 Wrong Question

11. Employee Management
TALENT WARS POST-
RECESSION

12. Talent Wars: Pre- and Post-
Recession
Last 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 2
What is the Objective of
Employee Engagement?

16. Intro
Ultimate Objective of Marketing:
“Get more people, to buy more
things, more frequently, at higher
prices.”
“Retention and Loyalty are useless if
No Conversion is happening.”
Sergio Zyman

17. Intro
“Retention and Loyalty are useless if
No Conversion is happening.”
“Retention and Loyalty are useless if
No Performance is happening.”

18. Intro
Loyalty is misleading…
• Heavy Consumption ≠ Loyalty
• Loyalty ≠ Heavy Consumption
• Good Performance ≠ Retention
• Retention ≠ Good Performance

19. Intro
Employee Engagement
• Succession Planning ≠ Business
Continuity Planning
• Talent Management =
Sustainable Business
Performance Management

20. 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

21. Principles and Objectives
Principles 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
- others
1. Women, Working Mothers
2. Youtube generation
3. Working retired
4. Social Activists
5. 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 5
PERFORMANCE
Group I
5
(Talent Pool)
4
3
2

27. Targeting: Identify and Attract
• Identify POTENTIAL
2 3 4 5
PERFORMANCE
Group II Group I
5
( Potential) (Talent Pool)
4
Group IV Group III
3
(Counseling) ( Performance)
2

28. Business and Employee
Engagement
The Business of business is business,
not Employee Engagement

29. “Hope is not a strategy”
John Maxwell

33. 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

34. What is the Business
Model?
•Google
•Tata Nano USP
Market
Profit Model
Discipline

35. 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 "They're very responsive"
hassle
Preferential service and
Lowest overall cost of flexibility
ownership Recommends what I need
"A no-hassles firm" "I'm very loyal to them"
Convenience and speed Helps us to be a success
Reliable product and
service

36. 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

37. 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

38. 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

39. Strategy: Market Disciplines
Operational 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

40. 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

41. 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

42. 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

43. Business Model vs. Talent &
Performance Management
Organization, jobs,
skills
Culture, values,
norms Operationa Product Customer
l Leadership Intimacy
Information and
systems Excellenc
e
Management
systems

44. Business Model vs. Talent &
Performance Management
Operational Excellence
Organization, • Central authority, low level of empowerment
jobs, skills • High skills at the core of the organization
• Disciplined Teamwork
Culture, values,
norms • Process, product- driven
• Conformance, 'one size fits all' mindset
Information and • Integrated, low cost transaction systems
systems • The system is the process
Management • Command and control
systems • Quality management

45. Business Model vs. Talent &
Performance Management
Product Leadership
Organization, jobs,•Ad hoc, organic and cellular
skills •High skills abound in loose-knit structures
Culture, values, •Concept, future-driven
norms •Experimentation and 'out of the box' mindset
Information and
•Person-to-person communications systems
systems •Technologies enabling cooperation
Management •Rewarding individuals' innovative capacity
systems •Risk and exposure management
•Product Life Cycle profitability

46. Business Model vs. Talent &
Performance Management
Customer Intimacy
Organization, jobs,• Empowerment close to point of customer
skills contact
• High skills in the field and front-line
Culture, values,
norms • Customer-driven
• Variation and 'have it your way' mindset
Information and
systems • Strong customer databases, linking internal
and external information
• Strong analytical tools
Management
systems • Customer equity measures like life time value
• Satisfaction and share management
• Focus on ‘Share of Wallet’

47. Retention, Engagement and
Motivation
Employees are not your assets.
Good Employees are your assets

48. Reminder…
Reality #1
Cash is King

49. Reminder …
Reality #2
Tangible C&B
Attraction

50. Reminder …
Reality #3
In-Tangible C&B
Retention

51. Reminder …
Reality #4
In-Tangible C&B
Tipping Point for
Attraction/Retention

52. The 51.28% Theory
• Resign = Push + Pull > 51.28%
• If staff is Happy:
=> 0 + Pull > 51.28%

53. Retention
Retention
Experience Swing Ex
Oppose

54. Retention 1: Experience
Loyalty = Experience vs. Expectations
Solution Strategy: Talent
Management Plan

55. Loyalty 1: Experience
• Talent
P/P Grid, SP Table,
Management Plan
PDP, Premium,
Selection
P/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

56. 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

57. 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

58. Post-Recession
Retention
Experience Swing Ex
Oppose
Post-Recession

59. 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

60. SCL: Specialist Career Ladder
•Telco,
Principal Consultant (1) •Outsourcing,
•Aerospace,
Consultant (4)
•Biotech,
Specialist (4)
•Digital media,
•Animation,
•M&A
Associate Specialist (2)
•Financial forensics

61. Motivating Talent
Hope
Control

62. Motivating Talent
Passion Job
Delegation
Talent Growth
Minimum Motivation Target:
2 out of 4

63. Curse of the Bell Curve
‘A’ ‘B’ ‘C’ ‘D’ ‘E’
Staff Staff Staff Staff Staff

64. End Notes & Start Up
The end of the Beginning

65. Are your employees willing to die for you?

66. • 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 guests
Harvard Business Review, December 2011 during evacuation attempts
“The Ordinary Heroes of the Taj” by Rohit Deshpandé and Anjali Raina

67. 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

69. Thank You.
soft copy of slides:
http://totallyunrelatedrandomanddebatable.
blogspot.com/