the better approach to succession planning - mitba ceo conference 2011

THE BETTER APPROACH TO SUCCESSSION PLANNINGCase Study, Concepts and Debatable Ideas

Kenny OngTakaful Ikhlas Sdn Bhd

The World Today…

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

• 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

TAKAFUL IKHLAS CORPORATE PROFILE

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

TISB

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

TISB Medical/Health (EB/GHS) Solution

2,7

84

,78

0

2,5

38

,32

3

2,3

95

,66

3

2,0

52

,11

5

4,1

48

,24

2

3,6

05

,95

8

3,3

15

,32

3

2,8

38

,85

4

2,3

38

,93

3

1,9

17

,00

0

1,5

51

,00

0

1,1

70

,00

0

15.64

19.9622.47

25.84

29.72

34.1836.74

42.26

22.67

28.37

26.1725.08

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

To

tal M

ed

ica

l C

os

t (R

M)

Pe

r Me

mb

er P

er M

on

th C

os

t (RM

)

ABC Medical Cost Experience with TISB ABC Medical Cost Experience & Projection

PMPM ABC Experience & Projection PMPM ABC with TISB

Inflation = 7.4% p.a.Inflation = 7.4% p.a.

Inflation = 19.86% p.a.Inflation =

19.86% p.a.

TISB Medical Cost Management

100% RENEWED WITH US

SINCE 2009/2010

100% RENEWED WITH US

SINCE 2009/2010

INTRODUCTION TO SUCCESSION PLANNING

Intro:

“Cow don’t drink water cannot push cow head down”

Assumption 1

1. Business Owners who have heirs

2. CEOs or Management who wish to instruct HR about SP

Assumption 2

Philosophy

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.”

Philosophy

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

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

Philosophy

Loyalty is misleading…

• Heavy Consumption ≠ Loyalty

• Loyalty ≠ Heavy Consumption

• Good Performance ≠ Retention

• Retention ≠ Good Performance

PRACTICAL SUCCESSION PLANNING

Right vs. Wrong SP Method

Succession Planning as per Job Positions

Succession Planning as per Leveling

What’s your purpose for Succession Planning?

Succession Planning

=

Business Continuity Plan

What’s your SP goal?

Business ContinuityBusiness Continuity

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

The Wrong Approach

The Better Approach

Business Strategy

OJT, Mentoring, Big-5, LP, PDP, SDP, Projects,

P/P Grid, SP Table, PDP, Premium,

Q12, C&B, ACDP, SCL, Transfers, Events

P/P Grid, Q12, PA, SDP, SP

Development

Motivation

Selection

Evaluation

Two Types of Segmentation for Succession Planning

1. Demographic segmentation

2. Talent segmentation

Demographic Segmentation - General

Veterans (Pre-Boomers)1934-1945

Boomers1945-1960

Gen X (Cusper, Buster)1960 - 1980

Gen Y (Millennials, Netster)

1980+

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)

23

45

PE

RF

OR

MA

NC

E

2 3 4 5

POTENTIAL• Identify


Group I

(Talent Pool)

Group II

( Potential)

Group III

( Performance)

Group IV

(Counseling)

2 3 4 5

23

45

PE

RF

OR

MA

NC

E

POTENTIAL• Identify

SUCCESSION PLANNING VS. YOUR BUSINESS MODEL

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

What is the Business Model?

USP

Market Discipline

Profit Model

•Google

•Tata Nano

Business Model: Profit Model

Revenue

Cost

MarginCash Flow

Assets

What is the Business Model?

USP

Market Discipline

Profit Model

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

•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

Eg. GoogleTata Nano






Eg. Air Asia

Operational Excellence

• Competitive price

• Error free, reliable

• Fast (on demand)

• Simple

• Responsive

• Consistent information for all

• Transactional

• 'Once and Done'

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

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

Alignment & Consistency: Disciplines, Priorities, and KPIs




Alignment & Consistency

HP well-balanced portfolio, mass customization

Acer super lean cost structure, aggressive pricing

Apple powerful products, premium

pricing, limited range

Still Doing well in

2009/2010

SETTING EXPECTATIONS AND MONITORING PROGRESS

MBO Standards

A Excellent

B Good

C Average

D Poor

E Useless

MBO Standards

A Excellent

B Good

C Average Good

D Poor

E Useless

MBO Standards

A Excellent Excellent

B Good Very Good

C Average Good

D Poor Not Good

E Useless Commit Suicide

Competency Target Setting

1. Initiative

2. Teamwork

3. Problem Solving

4. Leadership

5. Integrity

What’s the problem here?

Competency Target Setting

Initiative

1. Minimize problems quickly without needing to be asked

2. Seeks personal growth and professional self-development

3. Doing more than is required/expected in a job

4. Seeks new and improved solutions and approaches to completing assignments

5. Looks for opportunities to help others and team

Competency Standards

3 Meets behavioral standards consistently. Is a good role model for others.

2 Meets behavioral standards some of the time. Needs improvement.

1 Does not meet behavioral standards. Require counseling or disciplinary actions.

DEVELOPING AND MOTIVATING

The Better Approach

Business Strategy

OJT, Mentoring, Big-5, LP, PDP, SDP, Projects,

P/P Grid, SP Table, PDP, Premium,

Q12, C&B, ACDP, SCL, Transfers, Events

P/P Grid, Q12, PA, SDP, SP

Development

Motivation

Selection

Evaluation

Succession Planning Table: Example

Succession Plan Business-Critical Position 1

Ready Now 1-2 years > 2 years (Year estimated)

Head of Sales 1. Ramli Bakar

2. Joseph Wan

3. Selina Chan

1. Rebecca Ganaraj

2. Abu Hassan

3. Lee Tai How

1. Irene Soo

2. Fatimah Ibrahim

3. Kan Weng Tai

Business-Critical Position 2


Head of Operations 1. Wong Wai Chun

2. Selina Chan

3. -

1. Abu Hassan

2. Syed Kamil

3. Jessica Lee

1. Khoo Tien Wee

2. -

3. -

Business-Critical Position 3


Head of R&D 1. Michael Wong

2. -

3. -

1. -

2. -

3. -

1. Khariul Nizam

2. Jessica Lee

3. Wong Lai Sun

Advanced Career Development Plan: Example

9. PERSONALITY PROFILE:

10. LEADERSHIP STYLE:

11. RELOCATABLE: Within Country Within Region Globally

12. PERFORMANCE/POTENTIAL RECORDS

Year Performance Rating

Potential Rating

Performance/ Potential Grid

Exceptions:

13. SHORT RANGE CAREER GOALS: State goals for the next 1-2 years

14. LONG RANGE CAREER GOALS: State Career goals for the 3-5 years

15. CAREER PLAN

Next Position Option 1 Readiness for Next Position Option 1





9. PERSONALITY PROFILE:

10. LEADERSHIP STYLE:



Year

Exceptions:



15. CAREER PLAN




Year Performance Rating

Potential Rating

Performance/ Potential Grid

Exceptions: 14. LONG RANGE CAREER GOALS: State Career goals for the 3-5 years


Year



15. CAREER PLAN





SCL: Specialist Career Ladder

•Telco, •Outsourcing, •Aerospace, •Biotech,•Digital media, •Animation, •M&A•Financial forensics•FSI

Associate Specialist (2)

Specialist (4)

Consultant (4)

Principal Consultant (1)

SCL: Specialist Career Ladder

General incentives & privileges:

a. Extra monetary incentive

b. Official Specialist / Consultant job title.

c. Higher external training subsidy limit by company.

d. Tie-pin or pin

e. Certificate

f. Additional benefits

General qualifying/re-qualifying criteria:a. Meet the competency criteriab. Performance min B, PEDc. Min. 40 training hr/yeard. Physical contribution: i Mentoring ii Write-up iii Speaking iv Multimedia recording v R&D publication / Thesis

Motivating Talent

Hope

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

“He has 20 years experience: 1 year of bad experience

repeated 20 times”

Thank You.

soft copy of slides: http://totallyunrelatedrandomanddebatable.

blogspot.com/

More About Takaful Ikhlas

BUSINESS GROWTH

GROSS CONTRIBUTION (Gross Premium) :

• 2010/2011 : RM761 million

• 2009/2010 : RM615 million

• 2008/2009 : RM 579 million

• 2007/2008 : RM428 million

• 2006/2007 : RM224 million

• 2005/2006 : RM147 million

• 2004/2005 : RM66 million

• 2003/2004 : RM6.5 million

AWARDS

• Global Leadership Award 2011 (Takaful Sector) - YBhg Dato’ Hj Syed Moheeb

• Kuala Lumpur Malay Chamber of Commerce Merit Industy Award 2011 (Insurance Sector) - YBhg Dato’ Hj Syed Moheeb

• MTA Takaful Awards 2011 - BancaTakaful: Top Person Producer Award, - BancaTakaful: Top Person Producer Award – Investment-Link Regular,- BancaTakaful: Top Person Producer Award – Investment - Link Single - Young Takaful Manager Award – Wan Jemizan W. Deraman

• Islamic Finance News 2008, 2009 & 2010 – Best Takaful Provider

• Takaful Leadership Awards 2010 – Best Marketing

• International Takaful Awards 2010 – Best Takaful Product for IKHLAS Medic Assist Takaful (IMAT)

• Euromoney Islamic Finance Awards 2010 – Best Takaful Provider

• The BrandLaureate SMEs Chapter Awards 2009, 2010 – Best Corporate Brands Insurance

• The Brand Laureate SMEs Chapter Awards 2008, 2009, 2010 – IKHLAS Medic Assist Takaful (IMAT) for Best Brands in Healthcare Insurance

Some of our valued clients

OUR CLIENTS

MARITIME INSTITUTE OF MALAYSIA (MIMA)CITRA ALTI SDN.BHDGOLDEN STAR LOGISTIC SDN BHDRJH CONSULTANTS & SERVICES SDN.BHDTGS MARITIME TECHNOLOGY SDN.BHDSOFT TRIANGLE SERVICES SDN.BHDBROADTEC TV R & D CENTER SDN.BHDBAKTI INSANI SDN.BHDKOPERASI PEKEBUN KECIL DAERAH MUAR BHDPERLADANGAN PESERTA KUNDANG SDN.BHDMOF MANAGEMENT SDN.BHDAXXICO SDN.BHDAMALGAMATED METAL BUILDERS (M) SDN.BHDYAYASAN PUSAT HEMODIALISISPERAK E - ORGANIZATIONMAAHAD TAHFIZ NEGERI PAHANGFICRA NOVA SDN.BHDESQ LEADERSHIP CENTERWELLNESS LIFESTYLES SDN.BHDWIRA KERJAYA SDN.BHDSURIA MEDIK SDN.BHDVR MARKETING (M) SDN.BHDDUALRANK (M) SDN BHDJENG YUAN RECLAIMED RUBBER SDN.BHDAEROTREE DEFENCE & SERVICESKHALID ALUMINIUM SDN.BHDMLC SHIPBUILDING SDN.BHDMILLELIA AQUAGHANI & COAEREX SDN.BHD

SCIENSIM SDN.BHDFRONTLINE SUPPORT SDN.BHDANJUNG PERKASA SDN.BHDBESPOKE TECHNOLOGY SDN.BHDBIMB FOREIGN CURRENCY CLEARING AGENCY SDN.BHDGAFIS (M) SDN.BHDMEDIABIZ CREATIVE SDN.BHDKOPERASI UITM BERHADABENA CONSULTANTSAL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHDWISE INNOVATIONS SDN BHDFADZILL CONSTRUCTION SDN BHDS . N . AKMIDA HOLDINGS SDN BHDYAYASAN PELAJARAN JOHORPELADANG HEITECH SDN BHDTELEVENTURE SDN BHDPERBADANAN ISLAM JOHORBRIGHTMARK SDN BHDKEMASIK HOLDING SDN BHDUNIKL MEDICAL SERVICES SDN BHD AL-MADINAH INTERNATIONAL UNIVERSITYFOREST PLANTATION DEVELOPMENT SDN. BHD.FOX COMMUNICATIONS SDN. BHD.YAYASAN ISLAM NEGERI KEDAHSYARIKAT PERUMAHAN NEGARA BERHAD. SERI TEMIN DEVELOPMENT CORPORATION (M) SDN. BHD. CENTRAL SPECTRUM (M) SDN BHD MAJUIKAN SDN BHD MAJLIS BANDARAYA PETALING JAYA ADMINISTRATOR RUMAH AWANG ALAK BETATAR & DAMAI RESIDENCE

OUR CLIENTS

MALAYSIAN NPK FERTILIZER SDN BHD FOXBORO (MALAYSIA) SDN BHD CEMENT INDUSTRIES (SABAH) SDN BHD STEEL INDUSTRIES (SABAH) SDN. BHD. INTERNATIONAL CENTRE FOR EDUCATION IN ISLAMIC FINANCE. STRATEGI TEGAS SDN. BHDKUMPULAN DARUL EHSAN BERHADPRO ASSET MANAGEMENT SDN BHDINTERNATIONAL CENTRE FOR EDUCATION IN ISLAMIC FINANCE.MAJLIS PERBANDARAN SEPANGPELABUHAN TANJUNG PELEPAS SDN. BHDSENAI AIRPORT TERMINAL SERVICES SDN BHDPELEPAS BRIGANTINE CONTAINER SDN BHDPERMODALAN NASIONAL BERHAD.ISKANDAR REGION DEVELOPMENT AUTHORITY.SETIAUSAHA KERAJAAN NEGERI KEDSCOMI GROUP BHDASIAN FINANCE BANK BERHAD. KOPERASI ANGKATAN TENTERA BERHADTISISIT CORPORATION (M) SDN BHDINSTITUT BANK BANK MALAYSIAOMNI OIL (ASIA) SDN BHDPERUNDING UNIKON SDN BHDMALAYSIA CONVENTION AND EXHIBITION BUREAU XAIR COMMUNICATION SDN BHDSYARIKAT BEKALAN AIR SELANGORHLA ASSOCIATES SDN. BHD. CORPORATE LINE (M) SDN. BHD. PUNCAK NIAGA (M) SDN. BHD.WWE HOLDINGS BHD

SUASA EFEKTIF (M) SDN. BHD. SYARIKAT BEKALAN AIR SELANGORPLC INTERNATIONAL SYOR BERNAS S.BAFRIZAN TARMILI KHAIRUL AZHARKOPERASI KAKITANGAN BANK RAKYAT BERHAD.MALAYSIAN REINSURANCE BERHADLEMBAGA ZAKAT SELANGOR. (MAIS). UDA ANCASA SDN. BHD. RHB ISLAMIC BANK.TAKAFUL IKHLAS SDN. BHD.KUWAIT FINANCE HOUSE.RHB ISLAMIC BANK.MALAYSIAN REINSURANCE BERHAD. FELDA IFFCO SDN BHD BIMB INVESTMENT MANAGEMENT BERADIBFIM

73

TISB’s Strength in Medical/Health

H&S

• Extensive hospital network in Malaysia – Goverment and Private

• Pre-existing conditions – waived

• Specified Illness – waived

• 30 days waiting period – waived

• Room & Board upgrade - Members have to pay only the difference in Room & Board charges. No co-sharing of 20% on overall bill

• Operations done in one surgery – Cashless with LOG (day-care)

The Best Medical/Health Solution for your Company

• Understanding the Program

• Confirming the data on experience

• Customized Programs• Consider Dread Disease

Management

• Cost Inflation at reasonable levels

• Complete Analysis of staff disease trends

• Ownership of health

Year 1

Year 2Year 3

3 year programfor BEST RESULTS

TISB Medical Cost Management

Pre-Authorization (LOG)

Red Flags & Alerts

Claims Management

Network Management

Greater scrutiny on doctors under watch list

Detect abuse & excessive charges

Review policy exclusion

Identify abnormal trends

Benchmarking of cost & Length Of Stay

Direct Billing for cashless access

Negotiate:• Preferred rates

on hospital fees• Package

rates/case rates Provider

relationship building

Collaboration with other major health insurer via LIAM

Verify eligibility & validity of claim

Manage unnecessary admission via Pre-Admission Assessment Form with guidelines drawn for greater scrutiny

Encourage daycare procedures

Query procedure cost and length of stay not within range

Review one day admissions

Call Center Medical ManagementCall Center Claims & Quality

Management

TISB Hospital Management

Initiatives Value to Our Clients

1. Negotiate with Hospitals for Preferential Rates

• Savings from Room & Board Charges & Hospital Charges

• Preferential Rates are Passed Back to Clients

• Members can optimize their Medical Benefits Program

2. Conduct Bill Reviews / Profiling of Hospitals and Specialist Clinics

3. Query and Liaise with Hospitals and Specialist Clinics for Any Discrepancies

4. Constant Monitoring and Audits of Hospitals and Specialist Clinic Rates

5. Pre-Admission Assessment

6. Review & Redirect Outpatient Specialist Visits (after 6th visit)

Appropriate Charges for All Levels of Care

Ensure Service Level are Maintained and Upheld

77

Passport to the Preferred Care Program

Member ID Card

Back

Front

CONTACT US …..

Takaful Ikhlas Sdn. Bhd. (593075 U) IKHLAS Point, Menara 11A, Avenue 5, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur

TEL : 03- 2723 9999FAX : 03- 2723 9998EMAIL : [email protected] : www.takaful-ikhlas.com.my