Starhub Compensation Project
description
Transcript of Starhub Compensation Project
SENIOR MANAGEMENT PERFORMANCE REVIEW
NazKee YannKarynBaoyun ParkapanBy:
1Sunday, April 1, 12
Content
1. Pay Package Review2.Balance Scorecard for Starhub3.Implementation
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Pay Package Review
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!$#!!
!$300,000!!
!$600,000!!
!$900,000!!
!$1,200,000!!
!$1,500,000!!
!$1,800,000!!
!$2,100,000!!
!$2,400,000!!
Chan!Kin!Hung!(Head,!Products!&!SoluCons)!
Ng!Long!Shyang!(Head,!Sales!&!MarkeCng)!
Diana!Lee!(Head,!Customer!Service)!
Kwek!Buck!Chye!(CFO)! Tan!Tong!Hai!(COO)! Neil!Montefiore!(CEO)!
Benefits#in#kind!
Variable!(Performance!Bonus!Scheme!&!EVA)!Fixed!
Band A Band B Band C Band D
•Performance Share Plan: Up to 103,500 shares•Restricted Stock Plan: Up to 48,000 shares
•Performance Share Plan: Up to 243,800 shares
•Restricted Stock Plan: Up to 106,500 shares
•Performance Share Plan: Up to 303,600 shares
•Restricted Stock Plan: Up to 264,000 shares
•Increase
Emphasis
on LT
Commitm
ent and P
erforman
ce
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Aligning interest of senior management to shareholders
Motivateperformance
Motivate Long Term commitment
Internal equity
Cost control
Use of performance measures: Balance Scorecard (BSC) and periodic performance targets (short-, med- and long- term), benchmarked to Total Shareholder Return (TSR) measured against the MSCI Asia-Pac Telecommunications Index and Wealth Added which measures the investment performance in terms of TSR against shareholders’ expected returns (using cost of equity).
Through variable componentsShort-Term: Performance Bonus Scheme, Economic Value Added (EVA)Med-Term: Performance Share PlanLong-Term: Restricted Stock Plan
EVA: 1/3 payable annually, remaining payable upon resignation or termination of employment. Value is subjected to changes and is dependent on Company’s EVA performance.
Performance Share Plan: Actual number of shares given will be dependent on the level of achievement of the prescribed performance targets over a performance period, typically 3 years.
Restricted Stock Plan: Awards granted can only be vested after a satisfactory completion of time-base service conditions or after a further period of service beyond the performance target completion date.
Within the bands: Jobs within the same pay band receive similar pay packages. Across the bands: Size of total compensation increases in tandem with the increase in the importance and value of roles in the organization.
Competitive with market pay package. Done through variable pay, deferred payments and issuance of performance shares and restricted stocks.
ACUBE FACTOR ASSESSMENT REMARKS
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Balance Scorecardfor Starhub
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BALANCESCORECARDSTRATEGIC MANAGEMENTTOOL
“A management system that enablesorganizations to clarify their vision andstrategy and translate into action.”
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BALANCESCORECARDSTRATEGIC MANAGEMENTTOOL
Learning & Growth
Internal Process
Customer
Financial
Learning & Growth
Internal Process
Customer
Financial
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Performance Measurements Strategic
Objectives
BALANCESCORECARDSTRATEGIC MANAGEMENTTOOL
Learning & Growth
Internal Process
Customer
Financial
Learning & Growth
Internal Process
Customer
Financial
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Limitations of ConventionalBalance Scorecard
“Focus on short term financial measures”
“Top down approach”
“Equal weightage for each
perspective”
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“Focus on short term financial measures”
Generate
Tailor
Cascade
Refine
Limitations of ConventionalBalance Scorecard
“Top down approach”
“Equal weightage for each
perspective”
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METHODOLOGY
Vision/Mission
Strategic Objective
Strategy Map
BSC Corporate Level
BSC Strategic Business Unit Level
BSC Sub-Strategic Business Unit Level
GenerateTailor
CascadeRefine
CEOCOO
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METHODOLOGY
Vision/Mission
Strategic Objective
Strategy Map
BSC Corporate Level
BSC Strategic Business Unit Level
BSC Sub-Strategic Business Unit Level
GenerateTailor
CascadeRefine
CEOCOO
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Mission
VisionTo be Singapore’s first choice for information, communications and entertainment services.
To provide every person, home and business in Singapore with world-class multimedia services and content
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METHODOLOGY
Vision/Mission
Strategic Objective
Strategy Map
BSC Corporate Level
BSC Strategic Business Unit Level
BSC Sub-Strategic Business Unit Level
GenerateTailor
CascadeRefine
CEOCOO
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Create Long Term Shareholder Value
Revenue Growth
Operational ExcellenceEncourage Innovation
within Organizations
Managing Social & Environmental Impacts
Creation of Customer Value
Excellent & Optimal Customer
Management
Having a Well Trained & Motivated
Workforce
Maintaining Good Workplace Culture &
Diversity
Employee Satisfaction
Attract & Retain Talent
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METHODOLOGY
Vision/Mission
Strategic Objective
Strategy Map
BSC Corporate Level
BSC Strategic Business Unit Level
BSC Sub-Strategic Business Unit Level
GenerateTailor
CascadeRefine
CEOCOO
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Create Long Term Shareholder Value
Increase Productivity Revenue Growth
Operational Excellence
Encourage Innovation within Organizations
Managing Social & Environmental Impacts
Creation of Customer Value
Excellent & Optimal Customer
Management
Having a Well Trained & Motivated
Workforce
Maintaining Good Workplace Culture &
Diversity
Employee Satisfaction
Attract & Retain TalentLearning
& Growth
Internal Process
Customer
Financial
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METHODOLOGY
Vision/Mission
Strategic Objective
Strategy Map
BSC Corporate Level
BSC Strategic Business Unit Level
BSC Sub-Strategic Business Unit Level
GenerateTailor
CascadeRefine
CEOCOO
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Increase Productivity
Operational Excellence
Maintaining Good Workplace Culture &
Diversity
Employee Satisfaction
Attract & Retain Talent
• Employee turnover eate• # of new applicants• Employer of choice
• Overall avg. training hours• Leadership development• Employee morale survey
• Employee culture score • Employee engagement
score survey• Workplace profile
• Employee satisfaction survey score
• Total service downtime • Internal rate of return from new product
• R&D expenses• Response time in reaction to
technological trends
• Environmental emissions (carbon footprint)• CSP presence• # of positive media• Amount of funding purposes (donations)• Amount of lawsuits• Energy use, fuel & water consumption• Sources of GHG Emissions
• Market survey of customer satisfaction value
• % of retention• % Starhub customer ratings• # of complaints
• Earning per share• Dividend per share• Profit attributable to shareholders• Total shareholder’s return
• Free cash flow• Total operating expenses
• EBITDA• Operating revenue
Measurements
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Create Long Term Shareholder Value Revenue Growth
Creation of Customer Value
Excellent & Optimal Customer
Management
Encourage Innovation within Organizations
Managing Social & Environmental Impacts
Having a Well Trained & Motivated
Workforce
Objectives
Perspectives
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METHODOLOGY
Vision/Mission
Strategic Objective
Strategy Map
BSC Corporate Level
BSC Strategic Business Unit Level
BSC Sub-Strategic Business Unit Level
GenerateTailor
CascadeRefine
CEOCOO
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Mr. Tan oversees the day-to-day operations of the company and has direct responsibility of the company's Sales & Marketing, Products & Solutions, Enterprise Business, Customer Service, Network Engineering & Information Services, Wholesale & International Services and Government & Strategic Affairs divisions.
Chief Operating OfficerTan Tong Hai
22Sunday, April 1, 12
Increase Productivity
Operational Excellence
Maintaining good work place culture &
diversity
Employee Satisfaction
Attract & Retain Talent
• Employee Turnover Rate• # of new applicants• Employer of choice
• Overall avg. training hours• Leadership development
• Employee Culture score • Employee Engagement
score survey• workplace profile
• Employee satisfaction survey score
• Total service downtime • Internal rate of return from new product
• Response time in reaction to technological trends
• Environmental emissions (carbon footprint)
• Energy use, fuel & water consumption• Sources of GHG Emissions
• Market survey of customer satisfaction value
• % of retention
• Earning per share• Dividend per share• Profit attributable to shareholders• Total shareholder’s return
• Free cash flow• Total operating expenses
• EBITDA• Operating eevenue
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NA
NC
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Create Long Term Shareholder Value Revenue Growth
Creation of Customer Value
Excellent & Optimal Customer
Management
Encourage Innovation within Organizations
Managing Social & Environmental Impacts
COO
Having a Well Trained & Motivated
Workforce
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• Plans and directs all aspects of an organization's policies, objectives, and initiatives.
• Responsible for the short- and long-term profitability and growth of the company.
• Relies on extensive experience and judgment to plan and accomplish goals.• Leads and directs the work of others. • A wide degree of creativity and latitude is expected.• May preside over board of directors
Chief Executive OfficerNeil Montefiore
24Sunday, April 1, 12
Increase Productivity
Operational Excellence
Employee Satisfaction
Attract & Retain Talent
• Employee turnover rate• # of new applicants• Employer of choice • Employee morale survey
• Employee culture score • Employee engagement
score survey• Workplace profile
• Employee Satisfaction Survey score
• Total service downtime
• R&D expenses• CSP presence• # of positive media• Amount of funding purposes (donations)• # of lawsuits
• market survey of customer satisfaction value
• % Starhub customer ratings• # of complaints
• Earning per share• Dividend per share• Profit attributable to shareholders• Total shareholder’s return
• Free Cash Flow• Total Operating expenses
• EBITDA• Operating revenue
LEA
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PRO
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SC
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NA
NC
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Create Long Term Shareholder Value Revenue Growth
Creation of Customer Value
Excellent & Optimal Customer
Management
Encourage Innovation within Organizations
Managing Social & Environmental Impacts
CEO
Having a Well Trained & Motivated
Workforce
Maintaining Good Workplace Culture &
Diversity
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METHODOLOGY
Vision/Mission
Strategic Objective
Strategy Map
BSC Corporate Level
BSC Strategic Business Unit Level
BSC Sub-Strategic Business Unit Level
GenerateTailor
CascadeRefine
CEOCOO
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Source: Niven, P.R. (1999), "Cascading the balanced scorecard: a case study on Nova Scotia Power, Inc.", Journal of Strategic Performance Measurement, Vol. 1 No.2, pp.5-12.
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CORPORATE LEVEL (COO)CORPORATE LEVEL (COO)CORPORATE LEVEL (COO)PERSPECTIVE GOAL MEASURE
Financial Revenue Growth
• EBITDA • Operating Revenue
SBU LEVEL (HEAD OF SALES & MARKETING)SBU LEVEL (HEAD OF SALES & MARKETING)SBU LEVEL (HEAD OF SALES & MARKETING)
PERSPECTIVE GOAL MEASURE
Financial Revenue Growth
• Total Revenue from Services:• Revenue (Mobile)• Revenue (PayTV) • Revenue(Broadband) • Revenue (Data & Internet)
CORPORATE LEVEL (COO)CORPORATE LEVEL (COO)CORPORATE LEVEL (COO)PERSPECTIVE GOAL MEASURE
Internal Process Operational Excellence • Total service downtime
SBU LEVEL (HEAD OF SALES & MARKETING)SBU LEVEL (HEAD OF SALES & MARKETING)SBU LEVEL (HEAD OF SALES & MARKETING)
PERSPECTIVE GOAL MEASURE
Internal ProcessRefine existing
operational practices
• Cost savings form operating expenses
• Repair & Maintenance expenses
Cascade
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Mr. Ng heads the Sales & Marketing Division. He is in charge of sales and marketing for the company's products and services targeted at the consumer segment. His responsibilities include managing StarHub's distribution channels (including retail stores, partners and direct sales), sales fulfillment, mobile device merchandising, retail and segment marketing, brand management and marketing communications.
Head of Sales & MarketingNg Long Shyang
29Sunday, April 1, 12
Increase Productivity
Revenue Growth
Increase Innovations within
Departments
Refine Existing Operational
Practices
Manage Distribution
Channels
Expand Bases of Customers
Provide Reliable & Value for Money
Products
Invest in People Development
Employee Satisfaction
Recognizing and Rewarding Employee
Contributions
• # of staff recognition awards given
• No. of hours for sales training clocked by employees
• Training ROI • Employee satisfaction
• New services/products introduced
• Rate of return from new services/products
• Cost savings form operating expenses
• Repair & maintenance expenses
• # of store openings in high traffic areas and also heartland mall
• Total # of household subscribing to 3 services (Hubbing Index)
• Total subscriber base for mobile, Pay TV, broadband
• Total # of new subscribers• Churn rate• % of market penetration of consumers
& Corp
• Quality of network• connectivity• Consumers brand
perception survey
• Measure employee productivity
• Total operating expenses
• Total revenue from services:•Revenue (Mobile)•Revenue (PayTV)•Revenue(Broadband)•Revenue (Data & Internet)
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Enhance Customer Satisfaction
• Customer rating on level of satisfaction- Call center interaction- Technical services- Customer service centres
• # of complaints• Response time in service recovery
Meet the Needs of Coporate Clients
• Response time in meeting the needs
Smooth Flow of Implementing Next
Gen NBN
Raising Brand Awareness
• Meeting schedules for connection of households
• # connectivity lapses
• # of campaigns published
Head of Sales & Marketing
Head of Sales & Marketing
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METHODOLOGY
Vision/Mission
Strategic Objective
Strategy Map
BSC Corporate Level
BSC Strategic Business Unit Level
BSC Sub-Strategic Business Unit Level
GenerateTailor
CascadeRefine
CEOCOO
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Apply weightage to each quadrant of scores when calculating total score
‣Ensure that BSC score will be measured according to the importance of each of the 4 quadrants for respective roles
‣Overcome limitations of BSC’s weakness of not being able to prioritize goals and measure
Method:
Rationale:
Refine
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CEO
30%
10%30%
30%
Financial Customer Internal Process Learning & Growth
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COO20%
10%
50%
20%
Financial Customer Internal Process Learning & Growth
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30%
50%
10%10%
Financial Customer Internal Process Learning & Growth
Head of sales & Marketing
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SBU LEVEL HEAD OF SALES & MARKETINGSBU LEVEL HEAD OF SALES & MARKETINGSBU LEVEL HEAD OF SALES & MARKETINGSBU LEVEL HEAD OF SALES & MARKETINGSBU LEVEL HEAD OF SALES & MARKETINGSBU LEVEL HEAD OF SALES & MARKETING
PERSPECTIVE GOAL MEASURE TARGET SCORE WEIGHTAGE
FINANCIAL Revenue Growth
• Total Revenue from Services:• Revenue (Mobile)• Revenue (PayTV)• Revenue(Broadband)• Revenue (Data & Internet)
Total score for Financial: Total score for Financial: Total score for Financial: Total score for Financial:
CUSTOMER PERSPECTIVE
Provide reliable & value for money
products
• Quality of network• connectivity• Consumers brand perception survey
Total score for Customer Service: Total score for Customer Service: Total score for Customer Service: Total score for Customer Service:
INTERNAL PROCESS
Refine existing operational practices
• Cost savings form operating expenses• Repair & Maintenance expenses
Total score for Internal ProcessTotal score for Internal ProcessTotal score for Internal ProcessTotal score for Internal Process
LEARNING & GROWTH
Invest in people development
• No. of hours for sales training clocked by employees
• Training ROI
Total score for Learning & GrowthTotal score for Learning & GrowthTotal score for Learning & GrowthTotal score for Learning & Growth
30%
10%
50%
10%
A
B
C
D
Score will be based on how well they have achieved their
target.
100 = Meeting target<100 = Missing target
>100 = Exceeding target
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SBU LEVEL HEAD OF SALES & MARKETINGSBU LEVEL HEAD OF SALES & MARKETINGSBU LEVEL HEAD OF SALES & MARKETINGSBU LEVEL HEAD OF SALES & MARKETINGSBU LEVEL HEAD OF SALES & MARKETINGSBU LEVEL HEAD OF SALES & MARKETING
PERSPECTIVE GOAL MEASURE TARGET SCORE WEIGHTAGE
FINANCIAL Revenue Growth
• Total Revenue from Services:• Revenue (Mobile)• Revenue (PayTV)• Revenue(Broadband)• Revenue (Data & Internet)
Total score for Financial: Total score for Financial: Total score for Financial: Total score for Financial:
CUSTOMER PERSPECTIVE
Provide reliable & value for money
products
• Quality of network• connectivity• Consumers brand perception survey
Total score for Customer Service: Total score for Customer Service: Total score for Customer Service: Total score for Customer Service:
INTERNAL PROCESS
Refine existing operational practices
• Cost savings form operating expenses• Repair & Maintenance expenses
Total score for Internal ProcessTotal score for Internal ProcessTotal score for Internal ProcessTotal score for Internal Process
LEARNING & GROWTH
Invest in people development
• No. of hours for sales training clocked by employees
• Training ROI
Total score for Learning & GrowthTotal score for Learning & GrowthTotal score for Learning & GrowthTotal score for Learning & Growth
A 30% B 50% C 10% D 10%Total Score: X X X X+ + +
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ImplementationBalance Scorecard
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Communicate
Create Cascade
Acube 3 C’s
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Communicate
REVIEW & REVISIONManagement interview: Examine strategy & make relevant changes to Corporate level BSC
Conducting workshops: Communicate to all involved in creating BSC
Estimated Duration: 2 wks
Acube 3 C’s
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ROLL OUT COMPANY WIDEUsing the Corporate level BSC, implement BSC down to Business and Sub-business Units levels.
Estimated Duration: 4 wks
SBU LEVEL (HEAD OF SALES & MARKETING)SBU LEVEL (HEAD OF SALES & MARKETING)SBU LEVEL (HEAD OF SALES & MARKETING)
PERSPECTIVE GOAL MEASURE
CUSTOMER PERSPECTIVE
Enhance customer
satisfaction
• Overall customer satisfaction rating
• Overall % of customer complaints
SUB- SBU LEVEL (MARKETING MANAGER)SUB- SBU LEVEL (MARKETING MANAGER)SUB- SBU LEVEL (MARKETING MANAGER)PERSPECTIVE GOAL MEASURE
CUSTOMER PERSPECTIVE
Enhance customer
satisfaction
• Customer rating on level of satisfaction‣ Call center interaction‣ Technical services‣ Customer service centres
• # of complaints• Response time in service
recovery
CORPORATE LEVEL (COO)CORPORATE LEVEL (COO)CORPORATE LEVEL (COO)PERSPECTIVE GOAL MEASURE
CUSTOMER PERSPECTIVE
Creation of customer value
• Market survey of customer satisfaction value
Cascade
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Communicate
Create
REVIEW & REVISIONManagement interview: Examine strategy & make relevant changes to Corporate level BSC
Conducting workshops: Communicate to all involved in creating BSC
Estimated Duration: 2 wks
ROLL OUT COMPANY WIDEUsing the Corporate level BSC, implement BSC down to Business and Sub-business Units levels.
Estimated Duration: 4 wks
PERFORMING TASKEmployees carry their duty based on their goals in the BSC
Managers give performance rating based on measures & targets in BSC
Estimated Duration: 10.5 mths
Cascade
Acube 3 C’s
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Thank You Questions?
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