Aligning the entire Organization to achieve Business and Organizational Goals

• 1.ALIGNING THE ENTIRE ORGANIZATION TO ACHIEVE BUSINESS AND ORGANIZATION GOALS Case Study, Concepts and Debatable Ideas Kenny Ong Takaful Ikhlas Sdn Bhd

2. The World Today

• 13 thApril 2009

• Two Dominos employees

• YouTube

• Apology from Dominos after 48 hours

• 1 million hits

• Twitter: questions on silence

• LinkedIn: suggestions by users in forum

BusinessWeek, May 4, 2009 3.

• 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 4. TISB Medical/Health (EB/GHS) Solution 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

• EASY ACCESS TO CARE

• Panel of 2000 clinics nationwide

• All major hospitals recognises our GLs

• Appointment & management of

• medical panel

• 1 stCLASS SERVICE

• Benefit & Procedure briefing

• Help Desk

• Tri-annual Cost & Utilization Report

• Benchmarking

• Analysis & Recommendations

• PEACE OF MIND

• 24/7 LOG Issuance

• Cashless Admission

• Comments

CLIENT TISB 5. Inflation = 7.4% p.a. Inflation = 19.86% p.a. TISB Medical Cost Management 6. 100% RENEWED WITH US SINCE 2009/2010 7. Intro 8.

• in the past 18 months, we have heard that profit is more important than revenue, quality is more important that profit, people are more important than profit, customers are more important than our people, big customers are more important than small customers, and that growth is the key to our success. No wonder our performance is inconsistent"

CEO, Anonymous 9. Before we start

• In the old days of HR

• Average training hours per staff

• % of staff attending training

• # of training programs

• % of training programs conducted

• Training needs analysis conducted

• Competency models developed

• Training budget as % of payroll

Whats wrong with this picture? 10. Before we start

• Moral of the story

• Innovation:

• • Business models

• • Products

• • Services

• Market Leadership

• Competitive differentiation

Get the picture? 11. What is the OBJECTIVE of a Performance Management System?

• What is the ultimate objective of a Performance Management System?

• Performance achievement,

• Management controllable, improvement

• System predictable outcome, autorun

• Summary?

• A Predictable process to Improve Controllable Achievements

12. What is the OBJECTIVE? Succession Planning (Business Continuity) Talent Management Differentiation Performance Management System Budgeting + Planning BSC and KPIs Strategy Business Model Business Strategy People Management 13. Understanding Your Business Model and Strategy Focus on the Business Strategy and Business Direction first 14. 15. 16. 17. 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 5 th2007 18. What is the Business Model? USP MarketDiscipline Profit Model

• Google

• Tata Nano

19. Business Model: Profit Model Revenue Cost Margin CashFlow Assets 20. What is the Business Model? USP MarketDiscipline Profit Model 21. Market Discipline

• "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

"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 Product Leadership Operational Excellence Customer Intimacy

• Air Asia

• LV

• Ramly

22. 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) Eg. Google Tata Nano 23. 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) 24. 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) 25.

• 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

• 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

26. 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) 27. Alignment & Consistency Operational Excellence (low cost producer) Product Leadership (best product) Customer Intimacy (best total solution) HPwell-balanced portfolio, mass customizationAcersuper lean cost structure, aggressive pricing Applepowerful products, premium pricing, limited rangeStill Doing well in 2009/2010 28. ALIGNING YOUR ORGANIZATION TO THE BUSINESS MODEL 29. Strategy: Disciplines, Priorities, and KPIs 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) 30.

• 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: Disciplines, Priorities, and KPIs

• Operational Excellence

• Competitive price

• Error free, reliable

• Fast (on demand)