BioMalaysia 2012 Conference : Driving Innovation and Wealth Creation through Bioeconomy November 2012, KL BioEconomy: Managing Talent and Human Capital • Talent Wars in the New Economy • Aligning Human Capital strategies with the Business Model • Optimizing Compensation & Benefits • Developing a Talent Management system • Motivating & Engaging Employees vs. Retention • Addressing the Talent Scarcity problems

1. HUMAN CAPITAL TOPIC -
DEVELOPING A WORKFORCE TO
SUSTAIN THE GROWING
BIOECONOMY
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. Menu
1. Business Model and Human Capital
2. Talent War – attraction & retention
3. Human Capital Development

7. 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

8. Alignment: 4-Wheels Model
Business
Person
Structure Model
Strategy
Culture
Leadership
Resources

9. Business Model
The Business of business is business,
not Employee Engagement

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

11. Market Discipline
• Features,
"They are the most innovative"
Product
Leadership Benefits
"Constantly renewing and creative"
• Limited
"Always on the leading edge"
Range
Customer
Operational Intimacy
Excellence "Exactly what I need"
"A great deal!"
Customized products
Excellent/attractive price
Minimal acquisition cost and
• Solutions
Personalized communications
"They're very responsive"
hassle • Preferential service and
Customization
• Cost
Lowest overall cost of • Breadth &
flexibility
• Convenience
ownership Depth
Recommends what I need
• firm"
"A no-hassles TCO "I'm very loyal to them"
Convenience and speed Helps us to be a success
Reliable product and
service

12. 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

13. 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

14. 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

15. Strategy: Market Disciplines
Product Leadership
Apple powerful (best product)
products, premium
pricing, limited range
Still Doing
well in
Acer super lean 2009- HP well-balanced
cost structure, 2011 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

16. Strategy: Market Disciplines
Operational Product Leadership Customer Intimacy
Excellence
• New, state of the • Management by
• Competitive price art products or Fact
services
• Error free, reliable • Easy to do
• Risk takers business with
• Fast (on demand)
• Meet volatile • Have it your way
• Simple
customer needs (customization)
• Responsive
• Fast concept-to- • Market segments
• Consistent counter of one
information for all
• Never satisfied - • Proactive, flexible
• Transactional obsolete own and
• Relationship and
competitors'
• 'Once and Done' consultative
products
selling
• Learning
• Cross selling
organization

17. Business Model vs. Talent &
Performance Management
Organization, jobs,
skills
Culture, values,
norms Operational Product Customer
Excellence Leadership Intimacy
Information and
systems
Management
systems

18. 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
Culture, values, •Disciplined Teamwork
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

19. 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

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

21. Background to:
BIOECONOMY & HUMAN
CAPITAL

22. 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 Shortage
5. Agriculture, forestry, food,
chemical, pharmaceutical, energy
6. Consulting and Legal services
7. Planning, Operations,
Maintenance

23. BioEconomy: Critical Skill Sets
1. Technical Expertise**
2. Entrepreneurial Skills
3. Communication (inter-
disciplinary, multi
nationalities) Shortage
4. Problem Solving (production
issues)
5. Critical Thinking (analysis,
risks)

24. **Technical Expertise for
BioEconomy
Bio IT
• Biotech • General Software (Office)
• Processing of bio-based • Quantitative & Statistical
products • Information Systems
• Biomass production • ERP, SCM
• Environmental
• Energy, fuels

25. High-Level Solutions
 MSC-like eco-system -> BioNexus
Education
BioTalent Corp
HR Exchange

26. High-Level Solutions:
Education
Sector- Incorporate IT
↑ Writing &
Academia Skills in Course
Presentations
Partnership Assignments
Memory vs.
“Hands-On”
Advisory Board Critical
Teaching
Thinking

27. High-Level Solutions:
BioTalent Corp
Best Practices
Out-
Expats KDC FStep
reach

28. Attraction & Retention
THE TALENT WARS

29. Branding and Positioning:
“You don’t attract who you want.
You attract who you are”
John Maxwell

30. What needs work?
High Fun place to work
Training
For people like me Opportunities
Target Segment
Importance to
Attractive Location
Familiarity
with Tasks
Innovative
company
Career
Opportunities
Expected
success of
application High Salary
Low
Weak Strong
Current Brand

31. What needs work?
High Fun place to work
Training
For people like me Opportunities
Target Segment
Importance to
Attractive Location
Familiarity
with Tasks
Innovative
company
Career
Opportunities
Expected
success of
application High Salary
Low
Weak Strong
Current Brand

32. Retention
Retention
Experience Swing Ex
Oppose

33. Retention 1: Experience
Loyalty = Experience vs. Expectations
Solution Strategy: Brand
Experience, Positioning, Career

34. 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

35. 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

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

37. Swing Loyalty: Try Your
Best…
1. Over Promote 9. “Position” the
2. Loans competition
3. Spot Bonuses 10.Sell the Dream
4. Block recruiters 11.Give them a Best
5. The Spouse Friend
6. Toys 12.Internal Trainer
7. Glorified Titles
8. Forced Ambassador

38. 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

39. End Notes
The end of the Beginning

40. 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

41. 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

42. Popularly Unpopular
Popularity
≠
Affection

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