Strategy Based Learning–An Implementation Case Experience in Hong Kong
CTI's Implementation of Strategy Based Learning
Established in 1992, City Telecom (H.K.) Limited ("CTI") is a fast growing and innovative provider of residential and corporate fixed network and international telecommunications services in Hong Kong. Its wholly-owned subsidiary, Hong Kong Broadband Network Limited ("HKBN"), is a major fixed telecom network services operator, providing the world's fast residential 1Gbps, 200Mbps, 100Mbps, 50Mbps and 25Mbps broadband Internet access, telephony, IP-TV and corporate data services with a self-built Metro Ethernet IP network, which is the largest alternative end-to-end network in Hong Kong. Since the establishment, the Group has aggressively marketed itself and its services to capitalize on the growth and deregulation of the Hong Kong telecommunications market.
To match up with CTI's ambitious objective to become the largest end-to-end network provider in Hong Kong, the company management has implemented various initiatives to build up its "talent capital". For instance, key personnel were arranged to visit the manufacturing base of Toyota in Japan at the beginning of 2009. This way, they could benchmark from one of the best managed enterprises in the world and enhance their knowledge in operation management and talent development. The result is that CTI has come up with a more enhanced set of "Strategy Based Learning" programs for its own organization.
CTI's company management strongly believes that "workforce planning" is the core element to drive organizational growth and development. What happened next was that the HR department has set a "talent management curriculum" as the backbone of talent development. This curriculum not only serves the upper management but also serves the older generation group and employees who possess less education qualifications. Here are the three core areas in the "talent management curriculum".
a. Executive Development
This program provides upper management with the monetary support and opportunities to study executive programs such as EMBA. This selected group of participants includes General Manager, CEO, Vice Chairman and different department heads. 70% of the firm's top 33 executives either have or are in the process of gaining a post-graduate degree.
b. Next Station : University
This is a program specifically designed for entry level employees at CTI with the requirements and schedule of the frontline staff in mind. This program provides a four-stage study program: Management Study Certificate, Diploma in Leadership and Executive Management, Advanced Diploma in Business Management, and Bachelor of Business Administration (Honour). The entire four-stage study program could be completed in less than 4 yours. This program is designed with a focus in talent capital growth and aim to provide a full growth ladder for its employees. This gives an opportunity for the frontline staff with an irregular schedule to go step-by-step and complete a bachelor degree in less than 4 years. Please see chart 1 for the four-stage study program explanation.
c. Education Partnership
CTI also provides all employees with financial support and opportunity to take specific courses related to their daily work. Some courses include Accounting, Marketing, Statistics or Human Resources Management. CTI would provide financial allowance equivalent to 30% of the employee's month salary, capped at 80% of the course fee.
"Strategy Based Learning" VS Financial Tsunami
In this competitive environment with cost going up and profit margins going down, organizations need to learn and adapt to the environment in order to survive and grow. Although the organization itself can't learn, its employees or so-called talent capital can. CTI's Strategy Based Learning－The Basic Methodology for Organizational Change.
a. The Promise to set Corporate Target
In most cases, an organization's vision is clearer to the upper management than the others. This could be related to the fact that regular employees are usually focused on their daily task and do not have the opportunity to contribute at the strategic level.
CTI's Strategy Based Learning has made its vision very clear, which it set in 2006 its ten year Big Hairy Audacious Goal (BHAG) "to become the largest end-to-end network provider in Hong Kong by 2016". To get to this ambitious destination, it is very clear that a lot of first-class talent is needed. This is exactly why they could commit to talent development plans and set them in the corporate agenda. Without a clear vision and commitment, it is very easy for organizations to lose track of their talent development plans.
For CTI, its BHAG is much more than a corporate slogan, rather the compensation of the senior executives is pegged to factors that will contribute towards achieving the BHAG. By 2010, four years into its 10 ten year, CTI is will on track to achieve its 2016 BHAG.
b. Top-Down Approach for Organizational Learning
Learning is the process whereby knowledge is created through the transformation of experience1. The center of" Strategy Based Learning" is the change management that is intended to change the beliefs, attitudes, values, and structure of organization so that the organization can have better capability to adapt to the external challenges. Therefore, the commitment to change needs to come from the top of the corporate hierarchy. Without the management's support, talent development initiatives will likely end up becoming "skill based learning". Please note that management's support should not only be in financial terms but should also be in action that could affect the corporate culture.
When an organization like CTI could built the message of "continuous learning" into its culture, the driving force for continuous innovation, change and learn will be huge. CTI believes in Change rather than Improvement. The outcome of Improvement is obvious, whereas the outcome of Change is uncertain and maybe lead to unexpected improvements.
c. Create a Talent Development Culture
When we are implementing change for talent development, it is necessary that the entire company (including upper management, managers and frontline staff) could commit to the plan and work together. This will help to create a talent development culture and speed up the execution for the entire talent development plan.
d. The Need to Develop Leadership Team
The development of a leadership team is very important for an enterprise. For a middle-size enterprise, it usually has 4 level of hierarchy: Senior Management, Management, Supervisory and basic. A leadership team of an organization usually account for around 20% of the total population. They form the backbone of the entire human capital. Nowadays organization usually has less corporate hierarchy. It seems like the overall cost has gone down but indeed the entire organization is actually relying even more on this group of leadership team.
Implication to Hong Kong Companies
In reality, Hong Kong companies are lacking of long-term view to their business. CTI's "Strategy Based Learning" is a long-term human capital growth belief. Normally, HR departments are only involved in executing management's strategies and plan. They often lack the ability to provide a practical growth ladder for the entire organization. This situation is even worse in the SME sector where HR professionals are acting as the secretaries of company management.
Arie de Genus reveals in his book "Living Company: Growth, Learning and Longevity in Business"2 that enterprises need to keep learning and adapting to the changing environment in order to survive. He further reveals that a long-lasting competitive organization should possess the four characteristics listed in chart 1.
Organization is the same as all other living species. The survival of an organization relies on its ability to keep improving itself: and exploring the potential of its talent capital and manage monetary capital carefully. While an organization can't learn, its employee can. "Strategy Based Learning" is the "soft" power for company management to implement changes. This is the same as Jack Welch reveals in his writing about how he used learning and action to implement changes in GE. Jack Welch believes that an enterprise's central thought is its ability and desire to continuously learn and act.3
Here is the reply Lu Jia (陸賈) give to Emperor Liu Bang (劉邦) in regards to the question of managing the whole empire: Gradually defend for the things that you receive in a rush. Use both "culture" and "skills" to manage your country and you shall be the King.4 The implication for business here is that company management should take it slow and expand your business after establishing your position in the marketplace quickly in the start-up phrase. To grow a business, use both the "culture" and "skill" elements in your management style. "Culture" stands for self-image for an enterprise. This provides employees with a strong belongingness and the ability to face difficult times. "Skill" stands for an enterprise's sensitivity to the change in environment and cash flow management skill. Company management should learn to use both the "culture" and "skill" elements effectively in order to build a long-lasting competitive enterprise.
Reference
- David A. Kolb (1984), Experiential Learning – Experience as the Sources of Learning and Development, Prentice Hall.
- Arie de Genus (1997), The Living Company: Growth, Learning and Longevity in Business, Nicholas Brealey.
- Jeffrey Krames (2002), The Jack Welch Lexicon of Leadership, McGraw-Hill.
- Records of the Historian《史記·酈生陸賈列傳》
This case is implemented by Dr Joe Leung for City Telecom (H.K.) Limited.
Dr. Joe Leung 梁永忠 博士
Founder, Organisational Learning Consultancy Limited (OLC)
Unit 103, 1/F, Stanhope House, 734-738 King's Road, Quarry Bay, Hong Kong
(To mobile phone: 9103 3586 and email: drjoeleung@gmail.com)
Dr Leung is the first Chinese to gain the Middlesex University's innovative doctoral degree by adopting its Work Based Learning approach in the study of learning organization in Chinese culture environment. He has extensive practical experience in helping clients grow into a "living and learning organization" in the competitive marketplace. During the last 10 years, Dr Leung has visited more than 100 Hong Kong enterprises and has been consulted for their development and growth potentials.