500 Year Old Cheese Factory Visit - HKTVmall · 2012. 5. 9. · 500 Year Old Cheese Factory Visit...

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500 Year Old Cheese Factory Visit In 2010, we visited a farm in Germany which has been with the same family for the past 500 years. The farmer talked about cutting 80-year old trees that his grandfather planted and then seeding new trees for his grandchildren to harvest. To build a long term company we must manage beyond quarterly results.

Transcript of 500 Year Old Cheese Factory Visit - HKTVmall · 2012. 5. 9. · 500 Year Old Cheese Factory Visit...

Page 1: 500 Year Old Cheese Factory Visit - HKTVmall · 2012. 5. 9. · 500 Year Old Cheese Factory Visit In 2010, we visited a farm in Germany which has been with the same family for the

500 Year Old Cheese Factory Visit

In 2010, we visited a farm in Germany which has been with the

same family for the past 500 years. The farmer talked about

cutting 80-year old trees that his grandfather planted and then

seeding new trees for his grandchildren to harvest. To build a

long term company we must manage beyond quarterly results.

Page 2: 500 Year Old Cheese Factory Visit - HKTVmall · 2012. 5. 9. · 500 Year Old Cheese Factory Visit In 2010, we visited a farm in Germany which has been with the same family for the

Talent Development as a Competitive AdvantageBest Strategy for Talent Development, Hong KongJan 2011

NIQ Lai

CFO and Head of Talent Engagement

Hong Kong Broadband Network Limited

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About City Telecom Group

1992

• Co-founded by Ricky & Paul with 10 Talents and start-up capital of less than HK$1 million

• 1st company to shatter the International Direct Dial (IDD) monopoly in Hong Kong

• Co-founded by Ricky & Paul with 10 Talents and start-up capital of less than HK$1 million

• 1st company to shatter the International Direct Dial (IDD) monopoly in Hong Kong

2010

• Over 3,000 Talents located in Hong Kong and Guangzhou with HK$1.5 billion annual revenues

• Hong Kong’s largest alternative and fastest growing residential broadband service provider

• HK$4.5 billion market capitalization company listed on Hong Kong Stock Exchange and NASDAQ

• Over 3,000 Talents located in Hong Kong and Guangzhou with HK$1.5 billion annual revenues

• Hong Kong’s largest alternative and fastest growing residential broadband service provider

• HK$4.5 billion market capitalization company listed on Hong Kong Stock Exchange and NASDAQ

City Telecom Group3

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People Think of us as a Technology Company …

City Telecom Group4

Cross Harbour Tunnel & Star Ferry, Central Billboards

Best Fixed-Line and Broadband Provider in Asia

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Talent,

HK$500 mn

53%Capex,

HK$300 mn

31%

Marketing,

HK$150 mn

16%

Top 3 Annual Cash Outgoings

… But we are in fact, a Talent (People) Company

City Telecom Group5

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… But we are in fact, a Talent (People) Company

City Telecom Group6

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What are we Passionate about?

City Telecom Group7

Core Value“To experience the emotion of competition, winning and

crushing competition”

Big Hairy Audacious Goal (BHAG)

“Be the largest IP provider in Hong Kong by 2016”

Vivid Description“My children will say, “Dad I

love you as my Father”

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Traditional Structures: “Company-OUT”

City Telecom Group8

Director of Network Development

Director of Customer Service

Director of Sales

Director of Network Maintenance

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Director of Network Development

Director of Customer Service

Director of Sales

Director of Network Maintenance

Our Structure: “Customer-IN”

City Telecom Group9

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Mid Career Jolts!

City Telecom Group10

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Pro

du

ctiv

ity

Years of Service

Academic

Upgrade

Etc, Etc

Life

Exposure

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Academic Upgrade

City Telecom Group

Talent Infinity

Education Partnership

Next Station: University

Post Graduate Degree50-100% Sponsorship Senior Executive

Program / EMBA

Bachelor Degree80% course fee on Stage 1

General/ Professional Development80% course fee / 30% of monthly income

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Talent ∞ Infinity - eMBA Partnership

City Telecom Group12

• 75% of our top 33 Managers have

or are in the process of gaining a

post graduate degree.

• Sponsor only high quality “in

person” courses from The Chinese

University of Hong Kong, Kellogg-

HKUST, Stephen M Ross School of

Business University of Michigan,

etc .

• Gain external perspectives

without having to leave the

company.

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Next Stop University – A Four Year Journey

Stage 4Stage 4

Stage 3Stage 3

Stage 2

Stage 1Stage 1

Professional Diploma in Supervisory Professional Diploma in Supervisory and Administrative Management and Administrative Management

(180 hours)(180 hours)

Certificate in Management Studies Certificate in Management Studies (30 hours)(30 hours)

Advanced Diploma in Advanced Diploma in Business Management Business Management

(180 hours)(180 hours)

BA (Hons) BA (Hons) Business Management Business Management

(20(20--24 months)24 months)

(~4 years to gain Degree)

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Chinese proverb:

If you want one year of prosperity , grow grain.

If you want ten years of prosperity, grow trees.

If you want one hundred years of prosperity , grow people.

諺語:

十年樹木, 百年樹人

Why Are We Doing This?

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At a total cost of HK$110,000/Talent to Graduation,

80-90% borne by the company, we fully expect to lose

money on these 50 Talents going into Stage 3.

However, we expect these Talents to act as an

Inspiration for our 3,000 plus Talents, for decades to

come.

The Business Case

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Making the Most of 2nd Chance

“My Second Chance”

Mr Lam Lui, Customer Relations – M Division, Sales Promoter

“I didn’t take advantage of my 1st chance provided by my parents. Now with my 2nd chance, I must

complete it as there may not be a 3rd or 4th chance”

http://www.youtube.com/watch?v=f_NKdV7ULYg

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City Telecom Group

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Corporate Maslow Theory

Physiological Needs:

Basic Needs like food, water, shelter etc

Safety Needs: Stability and Consistency

Belonging Needs: Championship, be loved

Esteem Needs: Respect from others

Self Actualization: Be where you want to be

Financial Survival: Basic profit and loss, cash flow

Financial Recognition: Stock Price, Quarterly Results etc

Make a Business Impact: Create a product category

Social Corporate Responsibility: Leave a positive legacy

Individual Corporate

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“CSI” rather than “CSR” … I = Investing

Collected 10,000 glasses for “Gift of Sight”

campaign

Moon Cake Donation for Neighborhood Kids in

Kwai Chung

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Team Building Tradition

At City Telecom, Management

Teamwork is essential to our past

and future success. For over a

decade, through good and bad

economic cycles, we have made a

tradition of having a management

offsite to build teamwork.

This year, we invited our top 71

Management Talents for this 7-day

trip to Germany.

Table of Past City Telecom Offsites

Year Location

1 1999 Gold Coast, Australia

2 2001 Star Cruises

3 2002 Sanya, China

4 2003 Zhuhai, China & Macau

5 2004 Qingdao, China

6 2005 Zhuhai, China

7 2006 Bangkok, Thailand

8 2006 Singapore

9 2009 Japan

10 2010 Germany

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Wine Tasting in Vineyard Concentration Camp

Beer Factory VisitHarley Davidson FestivalCycling

Expose our Talents an “Out of the Box” experience, beyond what we are normally

exposed to in Hong Kong and in our normal daily business or holiday travels.

The idea, is to push ourselves outside our comfort zones, so that we are more

capable of doing so when we return to our working environment.

Camping in Black Forrest

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Porsche Factory Visit

Whilst sport cars may not be personally appealing to all our Management

Talents, we should all be interested in Porsche as a state-of-the-art, world-class

company with a proven track record of maintaining premium positioning

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Getting the Wrong People off the Bus

� Many implementation

challenges but “Do Nothing”

assumes that 100% of hires

is right for the bus

� Terminate 5% of bottom

Salary Base every year

� Focus our limited resources

on the top 95% of

performers

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Talent Overflow = Happy Problem

� Headhunters calling is good … No headhunters calling is

bad

� Whilst many companies can offer a short term salary

premium, few can match our career-life time value and

sense of self actualization

� We will focus on developing our stars … some of our

bench player will be attracted to run other companies

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For HR to be a business partner, HR needs

to think & talk as one.

HR Talk Business Talk

Lower staff turn, staff satisfaction

surveys

Talent productivity

Improve culture Why culture is a competitive

advantage

Maximize happy sheet survey scores Maximize human capital efficiencies

Salary increase Right pay incentives

HR executives needs to be able to translate HR impact in

terms of IRR, DCF, NPV etc … Highly recommend that HR

executives take CFA, MBA cross-over courses.

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City Telecom Group

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From HK$99/month to HK$199/month

City Telecom Group27

Launched Nov 2009 Launched Sept 2010

27

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City Telecom Group28

Only operator to increase market share in the

past 3 years.

28

Broadband Subscription

(‘000)

Net Additions (‘000)

Source: PCCW, City Telecom, i-Cable and HTHK Interim and Annual Reports, JP Morgan’s HTHK report “Hutchison Telecom Hong KongHoldings Ltd” dated Aug 12, 2009Note: PCCW reports “lines in service” rather than subscription. Hutchison Telecom Hong Kong no longer discloses broadband subscription as of Dec 31 2009.

(40)

(20)

0

20

40

60

80

1H 07 2H 07 1H 08 2H 08 1H 09 2H 09 1H 10

Launch of bb100 @

HK$99/month

0

200

400

600

800

1000

1200

1400

1H 07 2H 07 1H 08 2H 08 1H 09 2H 09 1H 10

PCCW (31Dec YE)

City Telecom

(31 Aug YE)

i-Cable (31 Dec YE)

Hutchison Telecom

(31 Dec YE)

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Happy Talents, Happy Shareholders

City Telecom Group29

Dow 0.41% Nasdaq 0.55%City Telecom HK Ltd. (CTEL) On Jan 21: 14.18 0.12 (0.84%)

City Telecom

NASDAQ

PCCW

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City Telecom Group

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Searching for my own Upgrade in 15-20 years time

� Management Trainee

Program to Develop our

future CEO, CFO, CTO etc

in 15-20 years time.

� Requires - CFA Level 1, half

marathon, 18 management

books, etc.

� In 2010, we had 793

applicants from 117

universities and made 1

offer.

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City Telecom Group

Watch it on youtube: http://www.youtube.com/watch?v=-LNEwz9D8l0

“CXO of the Future” 2010 Selection

Page 33: 500 Year Old Cheese Factory Visit - HKTVmall · 2012. 5. 9. · 500 Year Old Cheese Factory Visit In 2010, we visited a farm in Germany which has been with the same family for the

Standing Out From Crowd of >1,000 Applicants

Page 34: 500 Year Old Cheese Factory Visit - HKTVmall · 2012. 5. 9. · 500 Year Old Cheese Factory Visit In 2010, we visited a farm in Germany which has been with the same family for the

City Telecom Group

City Telecom Management Team, Germany, June 20103rd Row: Boris, Andy, David, Don, Partick, Dick, Ken, Cindy, Sam, Patrick, Jelly, Elvis, Andrew, Steven, Paul,

Craig, Joe, Herman, Raymond, Lo Sir, Alex, Ryan, Kenneth, Trasan

2nd Row: Ivan, Rosanne, Alice, Mandy, Queenie, Yoyo, Maria, Elsa, Fantastine, Cindy, Ken, Annie, Shirley,

Kennis, Mikron, Mike, Anthony, Daniel, Paul, Carrie, Joe, Amanda, Alice, Bonnie

1st Row:Jackson, Matthew, Elinor, Leo, Margaret, Ricky, Jessie, William, Earnest, Bing, NiQ, John, Charles,

William, Ken, Henry, Tracy, Boris, Christy, Ben, June, Mimi