Competing at a Global Level: Levelling up Human Capital Capabilities 6 & 7 July 2011 Human Capital Singapore Conference Competing at a Global Level: Levelling up Human Capital apabilities Human Capital Singapore Conference Competing at a Global Level: Levelling up Human Capital Capabilities
A Roadmap for Productivity Enhancement From Local to Global Competing successfully at Regional and Global Level Presented By; Clement Woon, PCEO SATS Ltd, 6 July 2011
Productivity Improvement Increasing Revenue Price increases Volume increases better share, new markets(?) New Products/Service Packages with better value Reducing Costs Re-engineer processes/systems Labour augmentation schemes where is the value? Foreign low-cost labour/outsourcing/off-shoring Human Capital Singapore Conference Competing at a Global Level: Levelling up Human Capital apabilities Human Capital Singapore Conference Competing at a Global Level: Levelling up Human Capital Capabilities
Productivity Measurements No one measure is sufficient Where are you looking for productivity? The right measure will invoke the right response. Value added per worker/employment costs Sales per employee Margin Contribution per Sale Etc Labour productivity is easy to measure, Managerial productivity is uncontrollable Human Capital Singapore Conference Competing at a Global Level: Levelling up Human Capital apabilities Human Capital Singapore Conference Competing at a Global Level: Levelling up Human Capital Capabilities
Why go Overseas? Access foreign markets? Competitive advantages of Other Countries? Mitigate concentration risks? Leverage Local Assets? Leverage foreign talents? Improve Local labour productivity?
Going Overseas Key Success Factors Well researched market Unique propositions Strong adaptable project teams Ability to leverage onlocation competency & resources Adaptable systems/cultures Strong support base(hq) Risks Socio-political risks Funding risks Government and Economics Competency Complexity Key Talent Dependency
Regional or Global from Singapore s Perspective Regional Lesser Cultural differences Minimal Time Zone differences Familiar Socio-political environment Familiar market requirements Complex language issues Global Multicultural environment Managerial complexity from Time Zone differences Shared Values becomes critical Difficult to expatriate talent Unfamiliar social, economic and political environment Unfamiliar market requirements
e.g. Modularization supports outsourcing/off-shoring Integrated With Defined Interface Costs Optimized to current location Inflexible to change High costs to maintenance Competency bottlenecks Cost is globally optimized. Requires clarified process Distributed competency Required interdependence
Managerial Productivity Sales Knowledge Motivation Skills Transportability Resource Capability Problem Solving Actions definition Window of Opportuniity Timelines Investment Relevance Reliability Maintainability Quality of Decisions -Manpower Costs -Variances -Development Cost -Selling Cost Operational inefficiency reduces profitability! Culture Leadership Processes Profit Conflict Management Teamwork Commitment Values Accountability Action generation Enabling Determination Stamina Business System Organization Structure Complex or Simple Connected or standalone
SATS Roadmap Diversification of business mix & geographical footprint through acquisitions, joint ventures & organic growth Corporatisation of SATS with 1,677 staff Restructured SATS Holdings with 4 major subsidiaries JV BAIK (China) JV EGSC (Taiwan) Listed on SGX 1972 1981 1985 1992 1994 1995 1997 1998 2000 JV Aerolog Express (Singapore) Moved to Changi Airport JV PT Jas (Indonesia) SATS Airport Services (SAS) formed AI-SATS Bangalore & Hyderabad (Ground & Cargo Handling) JV BGS Acquired 100% of Menzies Aviation, renamed SATS (HK) AI-SATS Bangalore & Hyderabad commence operations JV AAT (Hong Kong) JV Agreement with Air India Acquisition of TFK-Japan 2001 2002 2004 2005 2006 2007 2008 2009 2010 Acquired 67% of Country Foods Rebranding ONE WITH YOU 1 st to handle A380 JV Country Foods Macau (Macau) Launch of LCC ground handling unit Completed acquisition of 100% of SFI Launch of LCC inflight catering unit Full divestment by SIA
SATS Human Capital Development Enterprise wide facilitation tool Meta Plan Excellence center Talent Management Formalized talent management process Developmental jobs identification Assessment center Competitive Compensation System Shared values and Culture Re-branding SATS
HC in SATS Strategy Execution Employee Development Employee Engagement Sustainable Growth
SATS Engagement Model: Career-Long Journey Mid Career Pre-Career Job Entry Career Growth Job Transition SATS Brand New On-Boarding Mid-Career On-Boarding Learning & Devt Journey Up/ Re-skilling Institutions Engagement Internship SATS Values/Culture Day-1 Readiness Up/ Re-Skilling Performance Management Job Value Enrichment SATS Alumni Boomerang Effect Equal Opportunity Employer Work-Life Integration + FUN @ Work Conducive Work Environment & Strong LMR Fair Employment Terms + Corporate Social Responsibility SATS Talent Development Programme Passion = Discretionary Efforts Employer-Employee Relationship: Mutual Trust & Respect Systems + Structure + Competences + Values
SATS Competency Framework VALUES COMPETENCIES Innovation Lead with Vision Drive Innovation & Change Intellectual Trust & Collaboration Build Relationships Develop People Interpersonal Excellence Achieve Results Personal Effectiveness Results Safety & Security
SATS Talent Development Program Objectives: To make good people better To engage and develop leaders in SATS Group to ensure sustainable growth Enterprise-wide development of people is our commitment to employee engagement Engagement is our proactive approach to address employee retention
SATS Talent Framework Assessment Universe (internal & external) Development Interventions High Potential Pool Business Critical Pool Support Culture of Assessing, Mentoring and Coaching Development is a Way of Life in SATS
The SATS LEAP Program Emphasize the development potential of staff with the aim of preparing staff to lead SATS into the future For Participants Accelerate the readiness of staff for next level job Provide a mirror on their strengths and weaknesses For Senior Management Provide a mirror to senior management on the impact of their leadership and management behaviours For Assessors Develop their assessment, mentoring and coaching skills Sharpen their ability to identify talent and develop talent For SATS Provide inputs to the staff s potential assessment
Learn The SATS LEAP Modules Executives learn as they acquire skills to be effective manager. This programme provides executives with the learning experience to develop them from good to better managers. Excel Managers excel as they move to the VP level. This programme provides holistic feedback as managers excel towards the VP level. Aspire VPs aspire to be business leaders. This programme supports VPs in their aspirations to be business leaders. Propel SVPs propel the growth of the company. This programme engages SVPs to be better leaders as they drive and grow the company for the future. A basis for Top Management Succession.
LEAP Fundamentals Self Discovery through personality evaluations and self-reflections Engagement through success stories Competency through business case studies Confidence through Role Play Understanding of Company Shared Values through participation e.g. CSR activities, social events
Inflight Catering Ground Handling Inflight Catering and Ground Handling Karachi Current Network Through better development of our Talent, we will expand successfully our international Amritsar footprint Goa Bangalore Delhi Mumbai Hyderabad Chennai Kolkata Beijing Tianjin Qingdao Hong Kong Macau Ho Chi Minh Taipei Manila Shenyang Narita Haneda Male Medan SINGAPORE Balik Papan Manado Timika Batam Ujung Pandang Jakarta Halim Surabaya Yogyakarta Denpasar Total Network: 33 airports in 10 countries Brisbane
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