HR as the Driver for Organizational Effectiveness?! (The Towngas … · 2012-05-29 · TLC Learning...

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HR as the Driver for

Organizational Effectiveness?!

(The Towngas case)

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Key Facts About

Utilities

– City-gas: 101

(HKCG: 34 + Towngas China: 67 )

– Midstream: 7

– Water: 4

New Energy

– Gas-based: 3

– Coal-based: 5

– Filling stations: 9

– Coal Logistics: 1

Telecommunications: 6

Others: 5

• Public-listed in Hong Kong

• 141 projects in mainland China

(17 provinces + 2 autonomous regions

+ 2 municipalities)

Hong Kong

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Gas Lamp Gas Cooking & Water Heating

Midstream & Upstream Gas

Business

Mainland City-gas &

Water Business

2010 1862

New Energy Business

HKCG’s Business Transformation

2012

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Vision

To be Asia’s leading clean energy supplier and

quality service provider, with a primary focus

on gas. 9/41

Mission To provide our customers with a safe, reliable supply of gas and the

caring, competent and efficient service they expect, while working to

preserve, protect and improve our environment.

The company will ensure growth and long-term value for its stakeholders - customers, employees, shareholders

and business partners - through innovative products and services, operational excellence, improved shareholder

returns and responsible corporate citizenship. 10/41

Respect and

Integrity

Continuous

Learning Teamwork

Entrepreneurial

Spirit

Open

Communication

CORE VALUES

VALUES

Accountability Creativity Leadership

Driving

Achievement

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Performance Management

Training & Development

Recruitment & Selection

Succession & Career Management

Reward Management

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Respect and

Integrity

Continuous

Learning Teamwork

Entrepreneurial

Spirit

Open

Communication

CORE VALUES

VALUES

Accountability Creativity Leadership

Driving

Achievement

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Govt.

Customers

Shareholders

Employees

Suppliers Competitors

STAKEHOLDERS

OPERATION KPIs

2010/ 2011 Data

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Hong Kong currently enjoys a supply continuity rate of over

99.99%

Towngas Network : over 3,440km (+15% Vs 2001)

No of Customers : 1.72M (+23% Vs 2001)

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277

236209

176160

109135 128

8067

0

50

100

150

200

250

300

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

No

. o

f P

RE

Public Reported Gas Escape

Reduced by 76%

76%

(Include 3rd party damage)

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* JV包括 : 苏州, 常州, 南京, 徐州, 马鞍山, 铜陵, 济南, 潍坊, 泰安, 本溪, 铁岭, 武汉, 长春

# Distribution network only

Benchmarking with

Overseas Counterparts No. of leaks / km / yr Total

HK 0.130

Mainland JVs* 0.223

New York City 0.508#

Australia 1.05

UK 1.955

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Written Compliments

and Complaints

35 34 30 23 22 23 13 13 17 9 9

895

16371973

2891

3456 34363618 3710

5127 50745266

0

1000

2000

3000

4000

5000

6000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Written complaint Written compliment

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Performance Against Service Pledge

Pledge Items Results in year

2008 2009 2010 2011

Appointments

• Availability of maintenance and installation services (within 2 working days)

1.08

1.04

1.07

1.03

Speed and Convenience

• Customer Service Hotline (call answered within 4 rings)

95.84%

96.96%

95.20%

95.33%

Service Quality

• Efficiency1

• Courteous and friendly attitude1

8.70

8.65

8.67

8.67

8.69

8.69

8.77

8.79

1. The result was based on monthly surveys conducted by an independent research company.

Our target is to exceed a score of eight out of ten. 24/41

An average customer requests fewer

On-demand maintenance visit

On-demand Visit per Customer

0.45

0.42 0.41

0.38 0.380.37

0.39

0.360.38

0.44

0.25

0.30

0.35

0.40

0.45

0.50

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

(2005 : cooler Q1 and 3rd wettest on record) 25/41

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Increasing Productivity

720739

765

800

840 849 858870

890 897 903

600

700

800

900

1,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

No of Customers

Per Employee Customer per Employee Ratio

+25%

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Green benefits from utilizing LNG and

landfill gas to produce town gas

Note - MT: metric tonnes. *EPD: CO2 removed per year = 23kg/tree (at least 5 m in height)

LNG Receiving Terminal at Shenzhen (2006)

NENT Landfill (2007)

• LNG (2011) – Reduce emission :

• SOX : 661 kg (-56%)

• NOX : 50 MT (-28%)

• CO2 : 91,390 MT (-22%)

(Planting 4.0M trees/year*)

• Landfill Gas (2011) – Replace 13,996 tonnes of

imported naphtha

– 2% of total energy input

– Reduce CO2 emission by 43,109 MT (Planting 1.9M trees/year*)

Renewable Energy Source

Green Energy Source

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Outstanding Green Excellence

Awards 2010

Awards for Environmental Achievements

Environmental Grand Awards 2010

Hang Seng PRD

Hong Kong Green Awards 2010 Green Purchaswi$e Award - Platinum Category

Prime Magazine Eco-

business Awards 2010 Award of Excellent for Low-carbon Living Website 30/41

Performance Management

Training & Development

Recruitment & Selection

Succession & Career Management

Reward Management

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How do we help people

perform better?

Performance Management

What skills should we target?

Training & Development

What attributes should we look for

in a candidate?

Recruitment & Selection

How do we match people’s

talents & motives with

company’s needs?

Succession & Career Management

Reward Management

What behaviors do we reinforce?

Ex. Development Plan

Learning Curriculum

Mentoring Program

Structure

Process

Talent Pool

IMPLANTING AND WALKING THE GROUP'S VMV

IN OUR PRC BUSINESS

The Hong Kong and China Gas Company Limited (003.hk)

Award winners show that they are BEST at Building Talent, Enterprise-wide, Supported by

the Organization leaders fostering a Thorough learning culture.

September, 2011 33/41

A. Executive Bench Strength Development with Enterprise DNA

Using the Towngas Leadership Competencies model and its behavioral anchors for 180-

degree assessment supplemented by western work personality assessments to senior

executives and talents followed by a feedback meeting with boss (facilitated by HR

professionals).

B. Culture Shaping in China JVs

Deploy 5 “management tools and processes”, namely :

A. Balanced ScoreCard (BSC) introduced in 2008 at Regional and JV levels;

B. The Enterprise’s “We Deliver” to lock annual key deliverables;

C. Key Management Focus (KMF) to drive new projects across functions and regions;

D. Superior Quality Service (SQS), a bottom-up improvement process ;

E. Compulsory licensing of technicians (some mandated by the enterprise on top of

statutory requirements) in gas safety and engineering

C. Seeing is Believing

So far around 3,000 (10% of current PRC staff strength) have come to Hong Kong, the

enterprise’s flagship for experience sharing and learning

IMPLANTING AND WALKING THE GROUP'S VMV IN OUR PRC BUSINESS

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Talent Development Programs

JV/Entity Level

Regional Level

Business Level

Group Level

Management/Graduate Trainees

Talent Acceleration Program

Regional Executive Development Programs

Tsinghua Executive Development

Program & Overseas Studies

Manage Self

Manage Others

Manage

Managers

Hdqtrs / Group

Business Managers

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The Breeding Path 70%

On the Job

20%

Mentoring Rotations

Major Challenge(s)

Corporate Leadership

Identification As Hi-Po

Recruitment to First Role

•Between core & subsidiaries

•Between HK & PRC

•With increasing levels of responsibility

•Between functions and roles

•With increased “people leadership” challenges

•With active coaching and mentoring

AGE: 20-30 26-36 30-42 50+

GT/MT

Assessment

10%

Learning

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TLC Learning Curriculum

Execution Leading Others Business Skills

Executive Development Courses in Business School(s)

Core Leadership Development Modules: Team building, Mentoring & EDP Workshop,

Personal Effectiveness Programs

TLC Leadership Forums, External Exposures & Networking

Learning Projects : TLC Team Projects/KMF/SQS

Mentoring By Senior Executives

Job Rotation / Attachment

The Blueprint - An 18-month Talent Acceleration Program 37/41

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In 2010, 78 JVs completed 510 projects

5,894 staff participated

Savings achieved : US 5.98M (RMB 39,603M)

2010 Superior Quality Service Day

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What does HR mean here: The people? The function of HR?

Is HR the Driver for OE? If yes, what is its role and how it drives OE? If no, then

who and how differently it would be engineered?

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THANK YOU

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