bioeconomy: managing talent and human capital

HUMAN CAPITAL TOPIC - DEVELOPING A WORKFORCE TO SUSTAIN THE GROWING BIOECONOMY Case Study, Concepts and Debatable Ideas

Kenny Ong

Takaful 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

Menu

1. Business Model and Human Capital

2. Talent War – attraction & retention

3. Human Capital Development

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

Alignment: 4-Wheels Model

Culture

Business

Model Strategy

Structure Person

Leadership

Resources

Business Model

The Business of business is business,

not Employee Engagement

What is the Business

Model?

USP

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

Operational Excellence

Customer Intimacy

• Cost

• Convenience

• TCO

• Features,

Benefits

• Limited

Range

• Solutions

• Customization

• Breadth &

Depth

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

Operational Excellence

Customer Intimacy •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'

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

Strategy: Market Disciplines

Operational

Excellence

Customer

Intimacy

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

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

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’

Business Model vs. Talent &

Performance Management

BIOECONOMY & HUMAN

CAPITAL

Background to:

BioEconomy: Critical Job Families

1. Operate Plants

2. Design value-added products

and services

3. Production, Cultivation and

Harvesting

4. Use and recycling of products

5. Agriculture, forestry, food,

chemical, pharmaceutical, energy

6. Consulting and Legal services

7. Planning, Operations,

Maintenance

Shortage

BioEconomy: Critical Skill Sets

1. Technical Expertise**

2. Entrepreneurial Skills

3. Communication (inter-

disciplinary, multi

nationalities)

4. Problem Solving (production

issues)

5. Critical Thinking (analysis,

risks)

Shortage

**Technical Expertise for

BioEconomy

Bio

• Biotech

• Processing of bio-based

products

• Biomass production

• Environmental

• Energy, fuels

IT

• General Software (Office)

• Quantitative & Statistical

• Information Systems

• ERP, SCM

High-Level Solutions

MSC-like eco-system -> BioNexus

Education

BioTalent Corp

HR Exchange

High-Level Solutions:

Education

Sector-Academia

Partnership

↑ Writing & Presentations

Incorporate IT Skills in Course

Assignments

“Hands-On” Teaching

Advisory Board Memory vs.

Critical Thinking

High-Level Solutions:

BioTalent Corp

Best Practices

Expats KDC FStep Out-reach

THE TALENT WARS

Attraction & Retention

Branding and Positioning:

“You don’t attract who you want.

You attract who you are” John Maxwell

What needs work?

Current Brand

Import

ance to

Ta

rge

t S

eg

me

nt

High

Low

Weak Strong

High Salary

Career

Opportunities

Familiarity

with Tasks

Training

Opportunities

Attractive Location

For people like me

Fun place to work

Expected

success of

application

Innovative

company

What needs work?

Current Brand

Import

ance to

Ta

rge

t S

eg

me

nt

High

Low

Weak Strong

High Salary

Career

Opportunities

Familiarity

with Tasks

Training

Opportunities

Attractive Location

For people like me

Fun place to work

Expected

success of

application

Innovative

company

Retention

Retention

Experience Swing Ex

Oppose

Retention 1: Experience

Loyalty = Experience vs. Expectations

Solution Strategy: Brand

Experience, Positioning, Career

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

Talent Scarcity and Brain-

Drain Problem

1. Change your Business

2. Change your Business Model

3. Re-locate

4. In-Source

5. JV or Partnership or Swap

6. Create micro Business Units

7. Over Promote

8. Over Pay

9. Contractual tie-up

10. Hire Low, Train High

End Notes

The end of the Beginning

Which Company?

American Customer Satisfaction Index (ACSI)

• 64 out of100-point scale: lower than IRS (Tax)

• 2nd last among 30 companies surveyed

• Lowest 5% among 223 companies surveyed

• Bottom 5% of all measured private sector

companies

• 500 million customers

2010 American Customer Satisfaction Index

(ACSI) E-Business Report

Which Company?

American Customer Satisfaction Index (ACSI)

• 64 out of100-point scale: lower than IRS (Tax)

• 2nd last among 30 companies surveyed

• Lowest 5% among 223 companies surveyed

• Bottom 5% of all measured private sector

companies

• 500 million customers

2010 American Customer Satisfaction Index

(ACSI) E-Business Report

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