4. • Performance Share Plan:
Up to 303,600 shares
!$2,400,000!! • Restricted Stock Plan: Up
Benefits#in#kind!
to 264,000 shares
Variable!(Performance!Bonus!
!$2,100,000!!
Scheme!&!EVA)!
on
LT ance
Fixed!
asis rform
Emph d
Pe
!$1,800,000!!
e ase nt
an
• Incr itme
C omm • Performance Share Plan:
!$1,500,000!! Up to 243,800 shares
• Restricted Stock Plan: Up
to 106,500 shares
!$1,200,000!!
•Performance Share Plan: Up to 103,500 shares
!$900,000!! •Restricted Stock Plan: Up to 48,000 shares
!$600,000!!
!$300,000!!
!$#!!
Chan!Kin!Hung!(Head,! Ng!Long!Shyang! Diana!Lee!(Head,! Kwek!Buck!Chye!(CFO)! Tan!Tong!Hai!(COO)! Neil!Montefiore!(CEO)!
Products!&!SoluCons)! (Head,!Sales!&! Customer!Service)!
MarkeCng)!
Band A Band B Band C Band D
Sunday, April 1, 12 4
5. ACUBE FACTOR ASSESSMENT REMARKS
Use of performance measures: Balance Scorecard (BSC) and periodic performance
Aligning interest of targets (short-, med- and long- term), benchmarked to Total Shareholder
senior management Return (TSR) measured against the MSCI Asia-Pac Telecommunications Index and
to shareholders Wealth Added which measures the investment performance in terms of TSR against
shareholders’ expected returns (using cost of equity).
Through variable components
Motivate Short-Term: Performance Bonus Scheme, Economic Value Added (EVA)
Med-Term: Performance Share Plan
performance Long-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.
Motivate Long Performance Share Plan: Actual number of shares given will be dependent on the
Term commitment 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.
Internal equity Across the bands: Size of total compensation increases in tandem with the
increase in the importance and value of roles in the organization.
Cost control Competitive with market pay package. Done through variable pay, deferred payments
and issuance of performance shares and restricted stocks.
Sunday, April 1, 12 5
7. BALANCE
SCORECARD
STRATEGIC
MANAGEMENT
TOOL
“A management system that enables
organizations to clarify their vision and
strategy and translate into action.”
Sunday, April 1, 12 7
8. BALANCE
SCORECARD
STRATEGIC
MANAGEMENT
TOOL Financial
Financial
Customer
Customer
Internal Process
Internal Process
Learning & Growth
Learning & Growth
Sunday, April 1, 12 8
9. BALANCE
SCORECARD
STRATEGIC
MANAGEMENT
TOOL
Financial
Financial
Customer
Customer
Performance Strategic
Measurements Objectives
Internal
Internal Process
Process
Learning&
Learning &
Growth
Growth
Sunday, April 1, 12 9
10. “Equal
“Top down weightage
approach” for each
perspective”
Limitations of
“Focus on Conventional
short term
Balance
financial
measures” Scorecard
Sunday, April 1, 12 10
11. Limitations of
Conventional
Balance
Scorecard
Generate
“Focus on “Equal Tailor
“Top weightage
short term down
approach”each
financial for
measures” perspective” Cascade
Refine
Sunday, April 1, 12 11
12. METHODOLOGY
Vision/Mission
Strategic Objective
COO CEO Strategy Map
Generate
Tailor BSC Corporate Level
Cascade
Refine BSC Strategic Business Unit Level
BSC Sub-Strategic Business Unit Level
Sunday, April 1, 12 12
13. METHODOLOGY
Vision/Mission
Strategic Objective
COO CEO Strategy Map
Generate
Tailor BSC Corporate Level
Cascade
Refine BSC Strategic Business Unit Level
BSC Sub-Strategic Business Unit Level
Sunday, April 1, 12 13
14. Mission
To provide every person, home and business
in Singapore with world-class multimedia
Vision
services and content
To be Singapore’s first choice for information,
communications and entertainment services.
Sunday, April 1, 12 14
15. METHODOLOGY
Vision/Mission
Strategic Objective
COO CEO Strategy Map
Generate
Tailor BSC Corporate Level
Cascade
Refine BSC Strategic Business Unit Level
BSC Sub-Strategic Business Unit Level
Sunday, April 1, 12 15
16. Revenue Growth
Create Long Term
Shareholder Value Excellent & Optimal
Customer
Management
Creation of
Customer Value
Operational
Encourage Innovation Excellence
within Organizations
Having a Well Managing Social &
Trained & Motivated Environmental Impacts
Attract & Retain Workforce
Talent
Maintaining Good Employee
Workplace Culture & Satisfaction
Diversity
Sunday, April 1, 12 16
17. METHODOLOGY
Vision/Mission
Strategic Objective
COO CEO Strategy Map
Generate
Tailor BSC Corporate Level
Cascade
Refine BSC Strategic Business Unit Level
BSC Sub-Strategic Business Unit Level
Sunday, April 1, 12 17
18. Create Long Term
Shareholder Value
Financial Increase
Revenue Growth
Productivity
Excellent & Optimal
Customer Creation of
Customer Value
Customer
Management
Operational
Internal Excellence
Process Encourage Innovation Managing Social &
within Organizations Environmental Impacts
Having a Well
Attract & Retain Employee
Learning Talent
Trained & Motivated
Satisfaction
& Growth Workforce
Maintaining Good
Workplace Culture &
Diversity
Sunday, April 1, 12 18
19. METHODOLOGY
Vision/Mission
Strategic Objective
COO CEO Strategy Map
Generate
Tailor BSC Corporate Level
Cascade
Refine BSC Strategic Business Unit Level
BSC Sub-Strategic Business Unit Level
Sunday, April 1, 12 19
20. Perspectives
Create Long Term Increase
Revenue Growth
FINANCIAL FINANCIAL Shareholder Value Productivity
• Earning per share • Free cash flow • EBITDA
• Dividend per share • Total operating expenses • Operating revenue
• Profit attributable to shareholders
• Total shareholder’s return
Objectives
Excellent & Optimal
Creation of
CUSTOMER
Customer
Measurements Customer Value Management
• Market survey of • % of retention
CUSTOMER
customer • % Starhub customer ratings
satisfaction value • # of complaints
Operational Encourage Innovation Managing Social &
Excellence within Organizations Environmental Impacts
INTERNAL
PROCESS
INTERNAL
PROCESS
• Total service downtime • Internal rate of return from new • Environmental emissions (carbon footprint)
product • CSP presence
• R&D expenses • # of positive media
• Response time in reaction to • Amount of funding purposes (donations)
technological trends • Amount of lawsuits
LEARNING &
• Energy use, fuel & water consumption
GROWTH
• Sources of GHG Emissions
Having a Well Maintaining Good
LEARNING &
Attract & Retain Employee
GROWTH
Trained & Motivated Workplace Culture &
Talent Workforce Diversity Satisfaction
• Employee turnover eate • Overall avg. training hours • Employee culture score • Employee satisfaction
• # of new applicants • Leadership development • Employee engagement survey score
• Employer of choice • Employee morale survey score survey
• Workplace profile
Sunday, April 1, 12 20
21. METHODOLOGY
Vision/Mission
Strategic Objective
COO CEO Strategy Map
Generate
Tailor BSC Corporate Level
Cascade
Refine BSC Strategic Business Unit Level
BSC Sub-Strategic Business Unit Level
Sunday, April 1, 12 21
22. Tan Tong Hai
Chief Operating Officer
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.
Sunday, April 1, 12 22
23. COO Create Long Term Increase
Revenue Growth
FINANCIAL FINANCIAL Shareholder Value Productivity
• Earning per share • Free cash flow • EBITDA
• Dividend per share • Total operating expenses • Operating eevenue
• Profit attributable to shareholders
• Total shareholder’s return
Excellent & Optimal
Creation of
CUSTOMER
Customer
Customer Value Management
• Market survey of
CUSTOMER
customer • % of retention
satisfaction value
Operational Encourage Innovation Managing Social &
Excellence within Organizations Environmental Impacts
INTERNAL
PROCESS
INTERNAL
PROCESS
• Total service downtime • Internal rate of return from new • Environmental emissions (carbon footprint)
product
• Response time in reaction to
technological trends
LEARNING &
• Energy use, fuel & water consumption
GROWTH
• Sources of GHG Emissions
Having a Well Maintaining good
LEARNING &
Attract & Retain Employee
GROWTH
Trained & Motivated work place culture &
Talent Workforce diversity Satisfaction
• Employee Turnover Rate • Overall avg. training hours • Employee Culture score • Employee satisfaction
• # of new applicants • Leadership development • Employee Engagement survey score
• Employer of choice score survey
• workplace profile
Sunday, April 1, 12 23
24. Neil Montefiore
Chief Executive Officer
• 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
Sunday, April 1, 12 24
25. CEO Create Long Term Increase
Revenue Growth
FINANCIAL FINANCIAL Shareholder Value Productivity
• Earning per share • Free Cash Flow • EBITDA
• Dividend per share • Total Operating expenses • Operating revenue
• Profit attributable to shareholders
• Total shareholder’s return
Excellent & Optimal
Creation of
CUSTOMER
Customer
Customer Value Management
• market survey of
CUSTOMER
customer • % Starhub customer ratings
satisfaction value • # of complaints
Operational Encourage Innovation Managing Social &
Excellence within Organizations Environmental Impacts
INTERNAL
PROCESS
INTERNAL
PROCESS
• Total service downtime
• CSP presence
• R&D expenses • # of positive media
• Amount of funding purposes (donations)
LEARNING &
• # of lawsuits
GROWTH
Having a Well Maintaining Good
LEARNING &
Attract & Retain Employee
GROWTH
Trained & Motivated Workplace Culture &
Talent Workforce Diversity Satisfaction
• Employee turnover rate • Employee culture score • Employee Satisfaction
• # of new applicants • Employee engagement Survey score
• Employee morale survey
• Employer of choice score survey
• Workplace profile
Sunday, April 1, 12 25
26. METHODOLOGY
Vision/Mission
Strategic Objective
COO CEO Strategy Map
Generate
Tailor BSC Corporate Level
Cascade
Refine BSC Strategic Business Unit Level
BSC Sub-Strategic Business Unit Level
Sunday, April 1, 12 26
27. 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.
Sunday, April 1, 12 27
28. CORPORATE LEVEL (COO)
PERSPECTIVE GOAL MEASURE
Financial
Revenue • EBITDA
Growth • Operating Revenue
SBU LEVEL (HEAD OF SALES & MARKETING)
PERSPECTIVE GOAL MEASURE
• Total Revenue from Services:
Revenue • Revenue (Mobile)
Financial
Growth • Revenue (PayTV)
• Revenue(Broadband)
• Revenue (Data & Internet)
CORPORATE LEVEL (COO)
PERSPECTIVE GOAL MEASURE
Operational
Internal Process
Excellence • Total service downtime
Cascade SBU LEVEL (HEAD OF SALES & MARKETING)
PERSPECTIVE GOAL MEASURE
Refine existing • Cost savings form operating
expenses
Internal Process operational
practices • Repair & Maintenance
expenses
Sunday, April 1, 12 28
29. Ng Long Shyang
Head of Sales & Marketing
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.
Sunday, April 1, 12 29
30. Head ofof Sales
Head Sales & Increase
&Marketing
Marketing Productivity
Revenue Growth
FINANCIAL FINANCIAL
• Measure employee • Total revenue from services:
productivity •Revenue (Mobile)
• Total operating expenses •Revenue (PayTV)
•Revenue(Broadband)
•Revenue (Data & Internet)
Provide Reliable &
CUSTOMER
Expand Bases of Enhance Customer Meet the Needs of
Value for Money
Customers Satisfaction Coporate Clients
Products
CUSTOMER
• Total # of household subscribing to 3 • Quality of network • Customer rating on level of • Response time in meeting
services (Hubbing Index) • connectivity satisfaction the needs
• Total subscriber base for mobile, Pay • Consumers brand - Call center interaction
TV, broadband perception survey - Technical services
• Total # of new subscribers - Customer service centres
• Churn rate • # of complaints
• % of market penetration of consumers • Response time in service recovery
INTERNAL
& Corp
PROCESS
INTERNAL
PROCESS
Increase Refine Existing Manage Smooth Flow of
Innovations within Raising Brand
Operational Distribution Implementing Next
Departments Awareness
Practices Channels Gen NBN
LEARNING &
• New services/products • Cost savings form • # of store openings in • Meeting schedules for • # of campaigns published
GROWTH
introduced operating expenses high traffic areas and connection of
• Rate of return from new • Repair & maintenance also heartland mall households
services/products expenses • # connectivity lapses
LEARNING &
GROWTH
Recognizing and
Invest in People Employee
Rewarding Employee
Contributions Development Satisfaction
• # of staff recognition • No. of hours for sales training
• Employee satisfaction
awards given clocked by employees
• Training ROI
Sunday, April 1, 12 30
31. METHODOLOGY
Vision/Mission
Strategic Objective
COO CEO Strategy Map
Generate
Tailor BSC Corporate Level
Cascade
Refine BSC Strategic Business Unit Level
BSC Sub-Strategic Business Unit Level
Sunday, April 1, 12 31
32. Method: Apply weightage to each quadrant of scores
when calculating total score
Rationale: ‣ 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
Refine measure
Sunday, April 1, 12 32
33. CEO
30% 30%
10%
30%
Financial Customer Internal Process Learning & Growth
Sunday, April 1, 12 33
34. COO
20% 20%
10%
50%
Financial Customer Internal Process Learning & Growth
Sunday, April 1, 12 34
35. Head of sales
& Marketing
10%
10% 30%
50%
Financial Customer Internal Process Learning & Growth
Sunday, April 1, 12 35
36. Score will be based on how
well they have achieved their
target.
100 = Meeting target
<100 = Missing target
>100 = Exceeding target
SBU LEVEL HEAD OF SALES & MARKETING
PERSPECTIVE GOAL MEASURE TARGET SCORE WEIGHTAGE
• Total Revenue from Services:
• Revenue (Mobile)
FINANCIAL Revenue Growth •
•
Revenue (PayTV)
Revenue(Broadband)
A 30%
• Revenue (Data & Internet)
Total score for Financial:
Provide reliable & • Quality of network
CUSTOMER
PERSPECTIVE
value for money
products
• connectivity
• Consumers brand perception survey
B 50%
Total score for Customer Service:
Refine existing
INTERNAL
PROCESS
operational
practices
• Cost savings form operating expenses
• Repair & Maintenance expenses C 10%
Total score for Internal Process
D 10%
LEARNING & Invest in people • No. of hours for sales training clocked by
employees
GROWTH development
• Training ROI
Total score for Learning & Growth
Sunday, April 1, 12 36
37. SBU LEVEL HEAD OF SALES & MARKETING
PERSPECTIVE GOAL MEASURE TARGET SCORE WEIGHTAGE
• Total Revenue from Services:
• Revenue (Mobile)
FINANCIAL Revenue Growth • Revenue (PayTV)
• Revenue(Broadband)
• Revenue (Data & Internet)
Total score for Financial:
CUSTOMER
Provide reliable & • Quality of network
PERSPECTIVE
value for money • connectivity
products • Consumers brand perception survey
Total score for Customer Service:
Refine existing
INTERNAL
operational • Cost savings form operating expenses
PROCESS
practices • Repair & Maintenance expenses
Total score for Internal Process
LEARNING & Invest in people • No. of hours for sales training clocked by
employees
GROWTH development
• Training ROI
Total score for Learning & Growth
Total Score: A X 30% + B X 50% + C X 10% + D X 10%
Sunday, April 1, 12 37
40. Acube 3 C’s REVIEW & REVISION
Management interview: Examine strategy &
make relevant changes to Corporate level BSC
Conducting workshops: Communicate to all
involved in creating BSC
Communicate
Estimated Duration: 2 wks
Sunday, April 1, 12 40
41. CORPORATE LEVEL (COO)
PERSPECTIVE GOAL MEASURE
CUSTOMER Creation of • Market survey of customer
PERSPECTIVE customer value satisfaction value
SBU LEVEL (HEAD OF SALES & MARKETING)
PERSPECTIVE GOAL MEASURE
Enhance • Overall customer satisfaction
CUSTOMER rating
customer
PERSPECTIVE
satisfaction • Overall % of customer
complaints
SUB- SBU LEVEL (MARKETING MANAGER)
PERSPECTIVE GOAL MEASURE
• Customer rating on level of
satisfaction
‣ Call center interaction Ca
CUSTOMER
Enhance
‣ Technical services sc
PERSPECTIVE
customer
satisfaction ‣ Customer service centres ad
•
•
# of complaints
Response time in service e
recovery
ROLL OUT COMPANY WIDE
Using the Corporate level BSC, implement BSC down to
Business and Sub-business Units levels.
Estimated Duration: 4 wks
Sunday, April 1, 12 41
42. Acube 3 C’s REVIEW & REVISION
Management interview: Examine strategy &
make relevant changes to Corporate level BSC
Conducting workshops: Communicate to all
Communicate involved in creating BSC
PERFORMING TASK Estimated Duration: 2 wks
Employees 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
Create Cascade
ROLL OUT COMPANY WIDE
Using the Corporate level BSC, implement BSC down to
Business and Sub-business Units levels.
Estimated Duration: 4 wks
Sunday, April 1, 12 42