Employee Engagement in Complex Global Systems

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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

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?

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.”

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

Loyalty is misleading…

• Heavy Consumption ≠ Loyalty

• Loyalty ≠ Heavy Consumption

• Good Performance ≠ Retention

• Retention ≠ Good Performance

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)

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

Group I

(Talent Pool)

2 3 4 5

POTENTIAL• Identify

Group I

(Talent Pool)

Group II

( Potential)

Group III

( Performance)

Group IV

(Counseling)

2 3 4 5

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

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?

Market Discipline

Profit Model

•Google

•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

•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

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'

• 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

• 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

• 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

Customer Intimacy

Product Leadership

Organization, jobs,skills

Management systems

Information and systems

Culture, values,norms

Business Model vs. Talent & Performance Management

•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

•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

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

Management systems

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’

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

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

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/