Competency Handbook 20190528 - EN

B ECOMING

LUENTHAI LEARNING AND DEVELOPMENT HANDBOOK

BECOMING EXTRAORDINARY

LEARNING AND DEVELOPMENT HANDBOOK

CONTENTS 2

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08 MESSAGE FROM THE CEO

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12 LUENTHAI XO VALUES

18 LUENTHAI LEADERSHIP COMPETENCY MODEL

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26 DEFINITION OF 9 LEADERSHIP COMPETENCIES

32 LEADERSHIP DEVELOPMENT INITIATIVES

WHAT IS COMPETENCY?

LUENTHAI 7 XO HABITS

33 PERFORMANCE MANAGEMENT AND LEADERSHIP COMPETENCY

CAREER PROGRESSION

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INTRODUCTION Luenthai’s culture to strive for excellence and betterment in everything we do is what makes us eXtraOrdinary. Empowering our people to be “eXtraOrdinary daily” lies at the heart of our vision and strategy. The key to competency development in our people is to develop strong team players who recognize one’s strength and weaknesses, and while striving to enhance and improve, we also look to support and complement each other as a team.

This handbook identifies and standardizes definitions of the leadership competencies to support the development of high performing, competent, and credible executives, leaders, and managers. It

documents the sets of skills, attitudes, and behaviors needed by leaders and managers at all levels to sustain and reinvent Luenthai to be successful in a challenging, competitive future.

Clearly articulated competency definitions are vital to help us develop and institutionalize a positive learning and development environment and a fair, objective performance management system.

By establishing a common understanding of what these competencies mean, this handbook aims to provide useful guidance to all business units at Luenthai to easily

adopt and adapt them to their unique environment.

The competencies defined in this handbook derives from a series of interviews with over 40 executives and managers across Luenthai operations around the world, focusing on competency gaps and future training needs of leaders and managers.

This handbook also highlights some fundamental “XO habits“ that we encourage our employees to develop.

As habits become consistent, our people will gradually develop our cultural DNA that supports also our future identification of internal and external talents for succession and role assignment who will share and perpetuate our values.

Luenthai’s vision, “Sharing Success through Reinvention” and “Being an eXtraOrdinary organization,” can only be realized through our people. We invite all of you to take part in this exciting learning journey and be part of the XO team that continues the eXtraOrdinary legacy of Luenthai.

SANDY FOK

EXECUTIVE VICE PRESIDENT CORPORATE HUMAN RESOURCES

MESSAGE FROM THE CEO 6

Developing leadership competencies in our people at all levels is key to sustaining and reinventing Luenthai “Many of you have heard of me sharing my story on how I was inspired by the children of Tuloy Foundation being transformed by a simple motto–“Doing ordinary tasks eXtraordinarily well.”

To allow this simple value to take root in the hearts of over 50,000 employees, I wholeheartedly believe Luenthai people can become eXtraOrdinary too by promoting a spirit of learning in the organization. It is therefore my honor to present this learning and development handbook to all of you.

As a people oriented business, we always put our employees first and support the important values of equality and diversity. Over the years, we strive to show our care for employees under our “XO CARE” banner, which is to provide support to our people through competitive remuneration, and to promote a healthy work-life integration and career progression.

As we continue to uphold this very important people philosophy, we are putting additional emphasis on the importance of providing continuous and sustainable learning and development opportunities to enhance our employees’ capabilties, so they could realize their full potential.

Developing leadership competencies in our people at all levels is key to sustaining and reinventing Luenthai in a challenging and competitive future. As we endeavor for excellence and try to “do better than yesterday everyday.”

We rely on our people’s dedication in learning and improving their knowledge, skills, and attitudes to consistently deliver positive performance. It has always been high on my agenda to build a strong Luenthai culture, where people’s actions and performance are guided by a set of commonly shared values and expectations It is my belief that this can only be done through systemic leadership competency-based learning and incorporating that into our performance evaluation and feedback system.

The nine core competencies defined in this handbook have been carefully selected as a winning formula for Luenthai to become successful in an increasingly uncertain and complex business environment. I hope you would embrace the learning and mastery of these “9 Leadership Competencies” of vision and direction, team culture, and self management to achieve better team alignment; developing people capability, leading people, innovation and learning to build stronger organizational capabilities; and finally commercial orientation, accountability, monitor and measure to achieve flawless execution and implementation of our day to day work that deliver value to customers and stakeholders.

I am a big fan of football and I have developed a habit of playing the sport every Saturday afternoon for a number of years . While skills are important to deliver team performance, but so are the behavior and values of each team player. Playing football has helped me in many ways to develop a set of very important habits that defines who I am. Luenthai is a big team, and we have developed “7 XO Habits” that aims to guide every team member on how we need to conduct ourselves everyday to become an effective and true team player.

The 7 XO Habits are: 1. Be courageous by being accountable 2. Be ambitious by having an end goal in mind 3. Be passionate by loving what you do 4. Be generous by sharing and building on ideas 5. Be caring by being a good listener 6. Be collaborative by building synergistic relationship 7. Be sustainable by renewing ourselves constantly As our Corporate HR Team takes the lead and launches this initiative across all our operations around the world, I hope everyone will embrace them and enjoy this as part of your journey to grow. I am very honored to embark on this journey of making Luenthai an eXtraOrdinary company with you all.

RAYMOND TAN CEO-PARTNER

LEARNING AND DEVELOPMENT HANDBOOK

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LUENTHAI XO VALUES Our XO Values are the core foundation in developing our leadership competencies.

Believe

Do Better

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Change

LEARNING AND DEVELOPMENT HANDBOOK

Excel Synergize

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eXtraOrdinary care for our people means providing continuous and sustainable Learning and Development opportunities.

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WHAT IS COMPETENCY? Competencies are translations of capabilities deemed essential for organizational success.

They should be observable, measurable, and must encompass three vital elements: knowledge, skills, and attitudes. Competencies point to effective and efficient behavior that ensures the achievement of desired goals, targets, or results.

Positive outputs/results of performance should always be demonstrable and repeatable when the appropriate competencies have been identified and acquired. Competencies should be selected based on the significance and the impact they will have on the mission, vision, goals, and strategic directions of an organization.

When they are clearly articulated, competencies make each worker in Luenthai consistently effective and efficient in providing and delivering required services.

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WHY IS COMPETENCY-BASED LEARNING AND DEVELOPMENT IMPORTANT? Competencies identify the required knowledge, skills, and attitudes needed to perform specifc roles in a job, organization or profession. A competency-based approach sets expectations for performance excellence and fosters a systematic approach to professional development.

It clarifies standards for performance expectations and provides the basis for objective dialogue and easier communication about performance, development and career-related issues. Likewise, it establishes clear criteria for hiring, appraising, and rewarding people.

In brief, competencies may be applied to the following: 01

Job/Role Alignment

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Talent Profiling

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Performance Management

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Talent Inventory

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Training and Development

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Succession Planning

DISCOVERING LUENTHAI LEADERSHIP COMPETENCIES The key to a successful competency model lies in the discovery of the most appropriate competencies that fits the vision, mission and culture of the organization. These are usually done by either building the model from scratch with bespoke features that spring directly from the needs of the organization; borrowing models from other sources and tweaking them to match the organization; or buying models off the shelf and attempting to fit them into the culture of the organization.

At Luenthai, the Corporate Learning and Development team designed a model based on evidence and insights gained from the following sources of research: FOCUS GROUP INTERVIEWS with incumbents, supervisors, expert groups, success profiles

ANALYSIS OF DOCUMENTS such as job descriptions, questionnaire surveys, employee satisfaction surveys, strategic maps, organizational charts

DIRECT OBSERVATION of existing systems and processes

This research has enabled the learning and development team to identify the following competency areas vital for leadership functions, where they manifest most strongly, and the gaps that exist at different leadership levels: • Providing and communicating clear direction, strategy or vision • Adapting leadership styles to be effective in different situations • Developing team and organizational culture • Defining or having a clear sense of accountability

• Controlling and monitoring of processes in delivering results • Motivating employees • Having an external customer orientation

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BENEFITS TO EMPLOYEES •

• •

BENEFITS TO LEADERS • • • •

Identify performance criteria to improve the accuracy and effectiveness of the hiring and selection process Provide more objective performance standards Clarify standards of excellence of performance expectations for easier communication to direct reports Provide a transparent and objective basis for dialogue between managers and direct reports about performance, development and careerrelated issues

Gain a better understanding of the success criteria (i.e. behavioral standards of performance excellence) required to be successful in their role Receive a more objective assessment of their strengths and competency gaps Benefit from professional development that better suits their competency profile and targets their skills and knowledge level Provide a transparent and objective basis for dialogue with their manager or team about performance, development and career-related issues

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LUENTHAI LEADERSHIP COMPETENCY MODEL To help us communicate internally the nine core competencies that will drive the future success of this organization, we have drawn on the universal game of TIC TAC TOE to create a striking and memorable logo, its noughts and crosses inspiring the name of the XO Leadership Competency Model.

LUENTHAI COMPETENCY MODEL

The Luenthai Leadership Competency Model has been developed with knowledge and understanding specific to our business and with the close involvement of various stakeholders in the organization, benefitting from their valuable experience and comments that we gathered through interviews. As such, it is a model tailored to our current and future needs as an organization.

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LEARNING AND DEVELOPMENT HANDBOOK

THREE AREAS OF IMPACT The Luenthai Leadership Competency Model has nine core competencies grouped under three areas of impact: DIRECTION AND ALIGNMENT

IMPLEMENTATION/ EXECUTION

MOTIVATION AND INFLUENCE

A. Vision and Direction

A. Commercial Orientation

A. Leading People

B. Team Culture

B. Accountability

B. Developing People and

C. Self Management

C. Monitor and Measure

Team Capability C. Innovation and Learning

Having a leadership competency model promotes better leadership at all levels. We believe this leadership competency model will support the organization’s vision and strategy by providing a framework by which the organization can select, develop, and evaluate leaders.

Having determined what positions at which levels require which specific competencies, the model enables HR and/or management to compare an individual’s current competencies with those necessary to fill a leadership position in order to make effective decisions in hiring, developing and promoting leaders.

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DEFINITION OF 9 LEADERSHIP COMPETENCIES DIRECTION AND ALIGNMENT SETTING VISION AND DIRECTION See ahead clearly; can anticipate consequences of actions and trends accurately; has broad knowledge and perspective; is future oriented; can articulate and paint credible pictures and visions of possibilities and likelihoods; can create competitive and breakthrough strategies and plans; optimistic and create mileposts to rally support behind the vision; make the vision shareable by everyone; can inspire and motivate entire units or organizations.

DEVELOP TEAM CULTURE Take an active role in cultivating a clear, consistent set of values and working norms that foster eXtraOrdinary workplace behaviour; bring people into teams; create strong morale and spirit in his/her team; share wins and successes; foster open dialogue; let people finish and be responsible for their work; define success in terms of the whole team; create a feeling of belonging in the team.

SELF-MANAGEMENT Passionate through demonstrating strong awareness of own personal needs and values and able to constantly energize and harness it to fuel one’s own development as well as inspiring others to grow; demonstrate entrepreneurial spirit and enthusiasm, and inspire people to exert eXtraOrdinary effort as a team player.

DEFINITION OF 9 LEADERSHIP COMPETENCIES

IMPLEMENTATION AND EXECUTION COMMERCIAL ORIENTATION Take an active interest in the macro business environment; pro-actively engage with important external stakeholders (customers, suppliers, partners, government bodies and others) to form business insights that could support the Company to deliver greater value to the customers for now and the future; able to assess and capture opportunities that can balance the interest of the organization and the needs of customers; establish and maintain effective relationships with customers and gain their trust and respect.

ACCOUNTABILITY Ensure everyone in the team or department at all levels understand what is expected of themselves; identify value drivers and develop milestones and outcome measurement; provide enabling tools and resources to individuals so they feel properly empowered and equipped to feel accountable for delivering results.

MONITOR AND MEASURE Consistently measure and manage business and risk, and act to address problems before and when they arise; can design practices, processes and procedures which allow managing from a distance; is comfortable letting things manage themselves without intervening; can make things work through others without being there; can impact people and results remotely; good at figuring out the processes necessary to get things done; know how to organize people and activities; understand how to separate and combine tasks into efficient work flow; know what to measure and how to measure it; can see opportunities for synergy and integration where others can’t; can simplify complex processes; get more out of limited resources.

DEFINITION OF 9 LEADERSHIP COMPETENCIES MOTIVATION AND INFLUENCE LEADING PEOPLE Sensitive and flexible in using different leadership styles to shape the actions of people in the organization to drive the needed performance; understands why groups do what they do; picks up the sense of the group in terms of positions, intentions, and needs; understand what people value and how to motivate them; can predict what groups will do across different situations.

DEVELOPING PEOPLE CAPABILITY Provide direction and seek necessary resources to ensure that organizational skills and talents are put in place to execute the strategy and sustain the company’s competitive advantage; is a good judge of talent; can articulate the strengths and limitations of people inside or outside the organization; can accurately project what people are likely to do across a variety of situations.

INNOVATION AND LEARNING Encourage and harness new ideas, from transformational innovation to incremental improvement, so that the organization can effectively evolve and grow; promote a testand-learn culture within the function or unit; demonstrate curiosity and willingness to learn knowledge and facets of the business that is beyond their own areas of expertise.

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OUR

HAPPY PEOPLE

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LUENTHAI 7 XO HABITS While competencies define the knowledge and skills required by an employee to deliver the organizational result areas, attributes define the values and personal qualities that reflect and support Luenthai’s values.

To this end, we identif ied Luenthai’s “7 XO Habits.”

BE COURAGEOUS BY BEING ACCOUNTABLE Luenthai people do not blame circumstances, conditions or find excuses from external factors for their results. We make a brave and deliberate choice take actions and responsibility to change what we can. We all live by a deep seated set of values and integrity that guides us to make and keep commitment and to walk our talk.

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BE AMBITIOUS BY HAVING AN END GOAL IN MIND

BE CARING BY BEING A GOOD LISTENER

Luenthai people are accomplishment-focused and have a strong intent in their lives. We strive to set a vision for ourselves, for our family, our teams, and align them towards the vision and values of the Company.

Luenthai people put people first at all times. We promote open and honest dialogue when we have differences. We actively listen first before we seek to be understood. We listen with a strong intent to understand and seek creative solutions.

BE PASSIONATE BY LOVING WHAT YOU DO

BE COLLABORATIVE BY BUILDING SYNERGISTIC RELATIONSHIPS

Luenthai people are passionate people who love what we do and are committed to continuously enhancing our area of expertise to contribute in our own way to the success of the company. This deep passion gives us the resilience and patience to overcome challenges when some elements of work don’t often play to our strengths.

Luenthai people build strong network inside and outside of the organisation. We recognise our weaknesses and vulnerabilities and seek to leverage on each others’ strengths. We believe everyone involved will gain more insight and mutual learning will give us more strengths. We seek to build trust in everyone we meet. We therefore truly embrace diversity and welcome people into our team regardless of their age, gender, ethnicity for as long as they share our values and passion.

BE GENEROUS BY SHARING AND BUILDING ON IDEAS

BE SUSTAINABLE BY RENEWING OURSELVES CONSTANTLY

Luenthai people believe in being generous at heart and that the world is not a zero-sum game. We seek mutual benefit in all our interactions - with our shareholders, colleagues, our subordinates, our clients, our suppliers, our community and our environment at large. Luenthai people strives to think of a Third way to do things, and not just stick to “My Way” or “Your Way.”

Luenthai people believe that whatever actions we take, we seek to be sustainable. We seek to constantly renew and reinvent ourselves through learning and continuous improvement

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LEADERSHIP DEVELOPMENT INITIATIVES Luenthai truly believes in people as our greatest asset and one of the most important drivers for success. As we continuously invest in technological advancements and other innovations to become a smart enterprise and supply chain, we understand that it is vital to invest in our people– to develop leadership competencies and support their career growth with us.

Luenthai Corporate Human Resources offers world class leadership development programs for managers and leaders in our global operations at all levels. Each program is based on a tailored, multi-learning approach with modular workshops and experiential learning that supports our people in developing the competencies defined in our XO Leadership Competency Model.

LEADERSHIP DEVELOPMENT

XO LEAD XO LEAD Line Leaders Development Program is a leadership development program launched in June 2018 designed specifically for Luenthai Line Leaders who supervise and lead hundreds and thousands of our floor operators.

As people-intensive manufacturing operation, providing continuous learning and development program for our frontline leaders is our top priority.

XO LEAD’s main objective is to instill pride in our line leaders, provide clarity of roles and responsibilities, and equip them with the right soft skills and technical knowhow to perform at the top of their ability and become a more engaging leader.

XO LEAD adopts a multiple-learning approach that includes experiential learning, classroom setup, role plays, group discussion, sharing sessions and outdoor activities. XO LEAD is also designed with a Three-Level Progression Approach where participants’ learning is sustained through a 12 to 24 month period, allowing for their own learning to take root through on-the-job application and supported with active evaluation by HR and their supervisors.

LEADERSHIP DEVELOPMENT

MANAGEMENT FUNDAMENTAL PROGRAM (MFP) The Management Fundamental Program is a developmental program designed exclusively for our junior to mid-tier managers. The Program is an intensive four - day program to be completed in 4 to 6 months. The program aims to instill basic management concepts, provide clarity in performance expectations and accountability, and develop their motivation for improvement and progression.

ACCELERATED DEVELOPMENT PROGRAM (ADP) ADP is aimed at executives who are to be future pillars of the organization. This program will help them become future global business leaders by equipping them with theories, skills and frameworks that they can apply in this fast-changing world. The program will be in the form of intensive modular-based offsite workshops supported with online learning.

LEADERSHIP DEVELOPMENT

EXECUTIVES LEARNING EXPERIENCE (ELE) Given the fast-paced and highlyintense environment of the apparel and accessories industry, we truly understand the challenges senior leaders face over finding time and space for learning. We believe as senior leaders deal with matters of increased complexity and uncertainty, their learning experience has to be highly-tailored to suit their own personal learning style, lifestyle, and developmental priorities. Luenthai’s Corporate Learning and Development team provides senior executives this flexibility in choosing the right resources and formats to embark on their learning journey.

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PERFORMANCE MANAGEMENT AND LEADERSHIP COMPETENCY Performance Management is about achieving results in a manner that is consistent with organizational expectations. integrating competencies within the performance management process supports the provision of feedback to leaders not only on “what” they have accomplished (i.e. performance goals), but “how” the work was performed.

Assessing competencies as part of performance management is an important means of assisting leaders in understanding performance expectations and enhancing competencies.

Performance Management programs are set up to provide feedback to employees on how effectively they are performing in their jobs.

Such programs normally include a set of goals or objectives the employee must accomplish within the review period as well as the standards or criteria for determining whether the defined goals have been accomplished.

Feedback given on the employee’s competencies typically feeds into the development of a learning or action plan to address gaps in performance and development within or beyond the employee’s current role/job.

Corporate HR will further develop a Luenthai Competency-Based Performance Management Handbook to support this process.

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CAREER PROGRESSION As an employer who takes pride in our care for employees, we develop multiple career development pathways for different employee groups. For example, our employees could choose to become technical masters, functional experts or general managers. We encourage our employees to never stop learning and to stay curious at all times.

It is with this active approach to career planning for our people that we could retain talents and sustain Luenthai’s organizational knowledge, competence and wisdom.

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MEET OUR LUENTHAI LEARNING AND DEVELOPMENT TEAM

Sandy Fok

Executive Vice President Corporate Human Resources

Vickee Dela Cruz

Learning and Development Manager - CHR

Leo Benitez

Vice President Corporate Human Resources

ACKNOWLEDGEMENT This initiative would not be possible without the concerted efforts of individuals and groups who are passionate in realizing our vision in “Sustainable Shared Success Through Reinvention”. They provided us with invaluable insights and advice as we develop Luenthai’s learning and development framework where all training programmes and other talent development intereventions in the future can anchor against.

Members of our Corporate Human Resources team who have worked together in conceptualizing and putting into writing our leadership competencies and how these will play a big role in our journey to becoming an eXtraOrdinary Company.

Our consultant, Breakthrough Leadership, who provided their expertise in conducting our Training Needs Analysis (TNA).

Our TNA participants—managers, directors, supervisors, and executives— for participating in the interviews and providing vital insights on their duties, responsibilities, and competencies that led us to determine core competencies needed for our Company’s continued growth and success.

Contact Us U n i t 1 0 0 1 - 5 , N a n y a n g P l a za , 5 7 H u n g T o Ro ad K w u n Ton g , K o w l o o n , H o n g K on g (852) 2193-3000 w w w . l u e n t h a i . c om

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