SCCCI Trade Associations & Chambers (TACs) Growth Model Toolkit

Trade Associations & Chambers (TACs) Growth Model Toolkit

Content Section 1

Introduction

3

Section 2

TAC Overview & Structure

7

Section 3

Journey to grow your TAC

12

Section 4

The 6 Drivers of Growth

24

Driver 1: Member

27

Driver 2: Finance

33

Driver 3: Strategy Planning & Operations

38

Driver 4: Risk

43

Driver 5: People

48

Driver 6: Technology

56

Section 5

Action Plans

62

Section 6

Global Case Studies

94

Additional attachments to this Toolkit:

3

Appendix 1

Assessment Worksheet

Appendix 2

Action Planning Template

Introduction to the Growth Model As industries continue to face various economic and political headwinds, there is now a stronger need for Trade Associations & Chambers (TACs) to play a vital role in helping firms and businesses overcome challenges and capture new opportunities. In order to do so, TACs need to take a deeper look at their roles, operating model and workforce capabilities to help companies transform, grow and emerge stronger from each crisis. A sectoral TAC Growth Model has been developed alongside the TAC Competency Framework, to provide TACs a toolkit to guide them through the process of growing their organisation; which in turn supports the industry transformation and business growth.

What is the Growth Model?

The Growth Model is a framework that enables TACs to think differently about their organisation, unlock the organisation’s full potential and successfully deliver the growth strategy.

Within the Growth Model, there are 3 Growth Stages and 6 Drivers of Growth: 3 Growth Stages

1

Basic Stage

2

Developing Stage

3

Do note that you can be at a different growth stage for the different growth drivers.

This is dependent on your TAC’s priorities.

6 Drivers of Growth

Driver 1

Driver 2

Member

Finance

Driver 3

Driver 4

Strategy & Operations Planning

Risk

Driver 5

Driver 6

People

Technology

Behind each main driver are a number of sub-drivers which give you the opportunity to do a deeper dive into the maturity content.

4

Leading Stage

Each driver will help TACs to determine which growth stage they are currently in and aspire to be in.

Introduction to the Growth Model Toolkit What is the Growth Model Toolkit?

This Growth Model Toolkit serves as a reference guide for TACs to consider key factors/ parameters of how they can develop and grow their organisation of tomorrow.

How can this Growth Model toolkit help you?

This toolkit aims to provide you with:

An overview of the TAC landscape and structure in Singapore

An overview of the various action plans and parameters to consider when developing organisation's growth strategy and plans

5

A guide to assess the organisation’s current state of maturity against future aspirational state

Case studies and insights on market-leading best practices for learning

How to utilise the Growth Model Toolkit Utilise the Growth Model toolkit to:  Identify the growth drivers that are important to your TAC  Determine the growth stage your TAC is currently in and the desired stage you aspire to be at in the future  Develop action plans for implementation

How to utilise the Growth Model toolkit?

Step 1: Determine Priority Areas 

Read through the 6 Drivers of Growth within the Growth Model. Each driver comprises multiple subdrivers.



Identify which Driver of Growth is most important to your TAC. 

Multiple drivers might be relevant to your TAC. It is recommended to select 2-3 to prioritise.



You may find that the sub-drivers may be more relevant, and elect to reference the sub-drivers instead.

Step 2: Assess Maturity Stage 

Click on the tiles of the identified Drivers of Growth to view more details about the driver.



For each driver and sub-driver, a series of selfassessment questions is provided. Utilise these questions to assess your TAC’s current state of maturity selected growth driver/ sub-drivers.



Define your TAC’s aspirational state of maturity for the selected growth driver/ sub-drivers.

Your TAC may be at different stages of growth (i.e. some Basic, some Developing, some Leading) across the different drivers. This is a reflection of your organisational priorities that may have matured some drivers over others. A disparity in maturity is not necessarily a cause of concern.

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How to utilise the Growth Model Toolkit Step 3: Develop Action Plan

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

Based on your assessed maturity state, determine the relevant Action Plan to you (listed next to the statement).



The action plans provide parameters for your TAC to consider when developing organisation's growth strategy and plans to achieve the desired maturity stage.



Leverage the action plans to implement steps to enhance your organisation strategy and growth!

Section 2 TAC Overview & Structure

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TAC Overview & Structure This section provides an overview of TACs in today’s context, including an introduction to:  Purpose and Roles of a TAC  Structure of a TAC  Roles & Responsibilities of the Executive Committee and Secretariat

Purpose and Roles of a TAC A TAC is a membership organisation that is formed for the protection and promotion of business interests of its members. The purpose of a TAC is to drive industry development and transformation, and support companies and businesses in upgrading their capabilities, enhance productivity, embrace innovation, scale up and internationalise. It serves as an important bridge between the Government and the industry members.

There are three key roles of a TAC: Government Partner

Government Partner

Industry Developer

Skills Trainer

Lobby for improvements and partner with the Government to uplift the industry

Drive industry development and transformation through innovation

Build industry-wide capabilities through training

As the TAC sector continues to face with internal and external challenges, there is a need for TACs to take a deeper look at their roles, operating model and workforce capabilities to grow and overcome these challenges, and as a result drive the respective industries development and business growth.

KEY CHALLENGES FACED BY THE SECTOR

Financial sustainability

9

Talent attraction and retention

Meeting changing member needs and expectations

Technology and digital transformation

TAC Overview & Structure In order to help drive industry development and growth, TACs will need to work on 5 strategic thrusts in the areas of collaboration, innovation, advocacy, capability uplifting and alternative revenue streams.

Collaboration Strengthen partnerships and collaborations with others to achieve common goals that are beneficial to the industry  Partner with Government to drive industry policies and initiatives  Drive collaboration with industry players to implement standards and best practices to uplift professionalism of the trade  Develop strategic alliances with others to yield better value for money/ economies of scale through pooling of resources  Facilitate collaboration between TACs, training providers and organisations for industry workforce training and upskilling Innovation  Drive innovation mindset and adoption of technology to enhance enterprise capabilities, productivity and capture new growth opportunities  Drive product and/or service innovation within the industry  Drive technology adoption through industry initiatives and education  Promote innovation of processes to enhance efficiency and effectiveness of current processes  Leverage on global platforms to enhance branding, marketing and communications opportunities

Advocacy Advocate and represent members’ needs and interests through relevant platforms and engagement with relevant ministries and government agencies  Serve as a liaison between the Government and members to advocate and communicate needs and interests effectively  Engage with the Government to understand the government policies and plans for the industry for educating the members so as to achieve alignment from both parties  Drive brand advocacy by creating awareness and uplifting the image of the TAC and the sector

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TAC Overview & Structure In order to help drive industry development and growth, TACs will need to work on 5 strategic thrusts in the areas of collaboration, innovation, advocacy, capability uplifting and alternative revenue streams.

Capability uplifting Continuous upskilling of the TAC workforce to uplift internal capabilities for building a workforce of tomorrow equipped with the right skills  Utilise TAC Competency Framework to identify skills needed by the team to carry out current roles and responsibilities and deliver future strategy  Provide training to develop and embed those skills sustainably

Alternative revenue streams Constantly explore and innovate new ways of generating revenue and deliver value add to members to drive long-term financial sustainability  Enhance existing revenue streams through the expansion of functions and/or products/ service offerings  Identify opportunities to provide greater value to members and justify membership fees

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Structure of a TAC In Singapore, a TAC structure is generally made up of 4 distinct groups. (1) Executive Committee (Exco)/ Council/ Board of Directors, (2) Secretariat, (3) Patron, and (4) Members. Each of these groups have their own set of roles and responsibilities which contribute to the workings of a TAC. Executive Committee (Exco)/ Council/ Board of Directors The typical composition of the Exco/ Council/ Board of Directors consists of the following roles: 1. Elected President/ Chairman 2. Businessmen, C-Suite 3. Voluntary/ Part-time roles The role of the Exco/ Council/ Board of Directors is an important one. The Exco is responsible for setting the overall strategic direction and priorities of the TAC, working closely with the Executive Director/ Chief Executive Officer/ SecretaryGeneral in establishing the organisation goals, strategy and policies to ensure the maintenance of good governance practices. The Exco acts in an advisory capacity and provides leadership to the Secretariat.

Secretariat The typical composition of the Secretariat consists of the following roles: 1. Executive Director/ Chief Executive Officer/ Secretary-General 2. Executives/ Full-time roles The role of the Secretariat is an essential one, driving the day-to-day operations of the TAC. The Secretariat takes on the executive function and supports the Exco in implementing the organisation strategy and operational plans. The Secretariat is responsible for overseeing the governance of the TAC in accordance to the Constitution, the Societies Act and Societies Regulation and relevant laws. Typical functions of the Secretariat include (but not limited to) Membership, Branding, Marketing & Communications, Capability Building, Industry Development and Internationalisation.

Patron and Members Patron and Members also make up the unique structure of a TAC. The role of the Patron is to provide credibility and support in driving industry transformation and is someone who is a leading figure known either to the general public or a specific industry the TAC represents. As for Members, they comprise of the following stakeholders - companies and individuals related to the industry, ancillary service providers, and related associations/ Government representatives.

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Section 3 Journey to grow your TAC

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Journey to grow your TAC This section provides a view of how a TAC can use the Growth Model framework to grow the organisation from one growth stage to the next stage (e.g. Basic to Developing).

Lessons from other sectors: Benchmarking study Let’s take a look at the non-profit organisations (NPOs) in Singapore as we see that there are significant similarities between the NPOs and TACs. Looking at the benchmarked data, TACs can gauge the minimum headcount size needed in correspondence to the operating budget.

NPO 1

NPO 2

NPO 3

NPO 4

< $500,000 to $1,000,000

> $1,000,000 to $5,000,000

> $5,000,000 to $10,000,000

> $10,000,000 to $25,000,000

Minimum Headcount

1

9

19

77

Median Headcount

11

19

70

300

Maximum Headcount

48

75

270

998

Average Headcount

18

26

79

343

Sample Size

11

34

17

21

Operating Budget (SGD)

Note: Data has been acquired from EY’s internal database on the revenue and headcount size

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Journey to grow your TAC TACs in Singapore TACs in Singapore vary in terms of size and growth (i.e. small-, medium- and largesized TACs).

TACs of different sizes can have different set of goals and priorities, which translate into having different growth areas of focus. For example, Small-sized TACs generally have the following fundamental functions in place – (1) Strategy & Governance, (2) Membership, and (3) Branding, Marketing & Communications, with more focus placed in the areas of Member and Finance. Mid-sized and Large-sized TACs have added on functions beyond the fundamental functions and different focus of growth areas, depending on the organisation strategic goals and priorities.

Refer to the table below for more details as to the characteristics that TACs of different sizes typically have: Small-sized TAC

Mid-sized TAC

Large-sized TAC

Operating Budget (SGD)

< $500,000

≥ $500,000 to $2,500,000

> $2,500,000

Secretariat Headcount (Minimum)

1 or shared secretariat services

5

10

Typical Functions in TAC

Growth Areas of Focus

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Basic functions: • Strategy & Governance • Membership • Industry Development

Basic functions: • Strategy & Governance • Membership • Industry Development Add-on functions: • Capability Building • Branding, Marketing & Communications

• Member • Finance

• Strategy & Operations Planning • Risk • People

All functions: • Strategy & Governance • Membership • Branding, Marketing & Communications • Capability Building • Industry Development • Internationalisation • Research

• Technology

Journey to grow your TAC Example: Journey of TAC 1

Small-sized TAC Operating Budget (SGD)

< $500,000

Secretariat Headcount

1 or a shared secretariat services

Typical Functions in TAC

 Strategy & Governance  Membership  Branding, Marketing & Communications

Growth Areas of Focus

 Member  Finance

In the earlier pages, we learned that there are 3 growth stages and 6 drivers of growth. Every TAC will undergo at some point in time the 3 growth stages in their growth journey.

Let’s take a look at how this toolkit can guide TAC 1 in its growth journey, moving from the Basic to the Developing stage for two identified growth drivers (Member and Finance).

TAC 1 has identified Member driver and Finance driver as growth areas they would like to focus on for the next 1-2 years.

Currently, the maturity stage is Basic and they would like to move to Developing. for these two drivers.

In order to do this, TAC 1 can use the Growth Model toolkit to determine what are the actions plans they can take in order to achieve their goals.

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We would like to focus on moving from the basic stage to the developing for the Member Driver!

Growth Driver: Member

TAC 1 has chosen the subdriver “Member Experience” to do a deeper dive into the maturity content as well as to build an action plan to achieve their growth goals.

Example: Journey of TAC 1 After going through all the questions within the “Member Experience” subdriver, TAC 1 can now refer to the action plans tagged to the Member Driver to build a sustainable action plan for their organisation.

Question 3: Member Loyalty B. Member loyalty is recognised b the organisation; Current products and/or services meet existing member needs D. There are membership recognition programmes and rewards in place for long term members (e.g. long membership awards, discounted services, etc.)

Question 2: Member Engagement

Question 1: Member Experience B. Member experience is siloed and often different across all touch points D. The quality of member experience is consistent within, but not always across all channels

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B. The organisation periodically engages its members D. The organisation regularly engages members and proactively reaches out to members to gather feedback

Example: Journey of TAC 1 We would like to focus on moving from the basic stage to the developing for the Finance Driver!

TAC 1 has chosen the subdriver “Financial Sustainability and Growth” to do a deeper dive into the maturity content as well as to build an action plan to achieve their growth goals.

Growth Driver: Finance

Question 1: Revenue Sources B. Membership is the core revenue source for the organisation

Question 2: Working Capital B. Leaders are aware of how working capital supports funding D. The organisation knows how to improve working capital but has not fully implemented it yet

D. Revenue sources are identified and evaluated to achieve financial stability for the organisation

After going through all the questions within the “Financial Sustainability and Growth” sub-driver, TAC 1 can now refer to the action plans tagged to the Member Driver to build a sustainable action plan for their organisation.

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Case Studies This section aims to provide you with real-life case studies of how TACs of different sizes went on a journey of transformation.

Overview of Case Studies

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1

Case Study 1 describes a small-sized trade association. The trade association has few staff on the secretariat team and is looking to expand membership population and increase financial independence.

2

Case Study 2 describes a mid-sized trade association. The trade association has acquired at least 7 staff on the secretariat team.

Its focus is on people, risk and strategy planning & operations growth drivers.

3

Case Study 3 describes a large-sized trade association. The trade association has acquired 120 staff on the secretariat team and its focus is on the technology growth driver.

Case Study 1 Singapore Motor Workshop Association (SMWA) SMALL-SIZED Secretariat Headcount: 2

Focus Growth Driver: Member and Capability Building

Impetus for SMWA’s Transformation The motor vehicle industry is facing great disruption. As Singapore aims to transition from conventional mechanical vehicles to Electric Vehicles (EV) by 2030, it threatens 40% of the sector’s businesses and drives a skills gap between existing capabilities and desired capabilities.

This is further exacerbated by limited information from both car manufacturers and government, which limits the industry’s ability to embark on transformation holistically.

Singapore Motor Workshop Association (SMWA) is challenged to put into place initiatives that can strengthen the car repair industry’s capabilities, enhance its network of members and to maintain the prestige of the profession through disruption and change.

Initiatives to strengthen Sector & TAC  Training Academy to Build and Strengthen Capabilities – To future-proof the workforce, SMWA’s Council has led the development of a training roadmap for the sector. Internally, SMWA has developed a view of the trends and forecasted the necessary skills of the future, and consequently set up a Training Academy in 2020. In collaboration with IHLs, the Training Academy serves as a platform to upskill TACs, members and industry practitioners as a whole.  Digitalisation for Engagement – To provide greater ease-of-access and engagement with their members, SMWA has upskilled themselves in digitalizing their existing member engagement initiatives. SMWA set up an online website to engage and provide their members with updates, as well as a Workshop Directory to promote the services offered by their local network of member workshops. Through this digital portal that is managed by the TAC, members are able to stay in closer-touch with the TAC’s activities as well as to access their available services with greater ease and convenience.  Industry Standardisation for Workforce Quality – To maintain consistency in the quality of the workforce, SMWA is leading three key initiatives in standardization: (1) Crafting Industry Standards (2) Facilitating transparent business processes through SOPs and Workplace Safety Standards and (3) Formal Accreditation and Licensing System for the Car Repair Industry.

These initiative seek to enhance the credibility and consistency of technicians in Singapore.

Key Learnings to drive Success  Identifying the Right Leaders remains critical to the success of a TAC – For a TAC to succeed, SMWA identifies that the committee must have common goals and are devoted to improving the trade that they are in. Having welcomed new members in their latest elections, SMWA shares that identifying the right leaders with the right mindset and the right heart are key to a TAC’s success, as having with genuine motivations to drive the betterment of the industry is imperative to ensure that the TAC constantly moves in the right directions.

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Case Study 2 SGTech [1/2] MID-SIZED Secretariat Headcount: 7-15

Focus Growth Driver: People, Risk and Strategy Planning & Operations

Impetus for SGTech’s Transformation The need for digitalisation has been accelerated and digital transformation has become critical for all businesses to remain relevant and continue to succeed. Technology plays an important role in achieving said transformation, and drives the need for the sector as a whole to become more mature in both its own right and as a lever for other sectors to capitalise on.

To represent Singapore’s technology industry, SGTech underwent extensive transformation from within, through brand refresh, redesigning of internal processes and developing capabilities, so as to be well positioned to support local technology companies and companies that leverage technology to power their core businesses, to grow and expand, taking their place as competitive players in today’s evolving market landscape, both locally and globally.

Initiatives to strengthen Sector & TAC  Strategy Calibration aligned to Members’ Needs – SGTech’s Chapters and Committees are structured around evolving tech verticals and technology focus areas to serve members’ and the economy’s needs. For example, its Cyber Security Chapter is working closely with the Cyber Security Agency of Singapore (CSA) on programmes to broaden awareness of cybersecurity among companies and individuals, while at the same time collaborating with institutes of higher learning to build cybersecurity talent. To drive advocacy on behalf of its members, SGTech employs a practice of consistent calibration to stay aware of the pulse of the industry and represent the industry’s voice accurately to relevant stakeholders. The outcome of SGTech’s advocacy is to re-affirm to members the reason and meaning of their membership in SGTech.  Redesigning Processes for Efficiency – In re-designing their existing operating model, SGTech reviewed existing business processes and policies. Opportunities were identified for automation and digitalisation, thereby freeing resources that could be leveraged for valueadded work  Clear Definition of Roles and Responsibilities – As part of internal talent transformation, SGTech also reviewed and updated existing roles and responsibilities within the organisation.

Playbooks designed to clarify processes and crystallise each job role’s responsibilities, and the interoperability and interconnectedness of systems and people across departments, allow the TAC to assess their existing capability and competency gaps and address it through upskilling and/or hiring

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Case Study 2 SGTech [2/2] MID-SIZED Secretariat Headcount: 7-15

Focus Growth Driver: People, Risk and Strategy Planning & Operations

Key Learnings to drive Success  Establish Trust and Communication with Council – With strong and consistent communication between the Council and the Secretariat, despite the extent of transformation that SGTech was undergoing, leadership and management remained aligned on organisation goals and priorities. This facilitated buy-in and support to accelerate the internal transformation, and positioned the TAC to be ready to support their members, the tech industry and end-users.  Identifying right people for the right job for the Secretariat – Through clear delineation of roles and responsibilities, the Secretariat is optimised to deliver value to its members by assigning accountability and responsibility to the team, empowering them to perform their roles to the best of their abilities.  Constant communication with the Secretariat – a crucial element is keeping all employees informed of the direction the organisation is headed, and updated on the progress at each stage of the transformation process. Employees were given the initial context when they participated in fact-finding at the start. Subsequently, when the project involved a smaller group, regular (monthly) updates informed them of the progress and ad-hoc updates were given when milestones were achieved.

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Case Study 3 Singapore Manufacturing Federation (SMF) [1/2] LARGE-SIZED Secretariat Headcount: 115

Focus Growth Driver: Technology

Impetus for SMF’s Transformation Cost has always been a prohibitive factor for manufacturing in Singapore. Moving ahead into the new decade, in order to remain globally competitive, the manufacturing sector in Singapore must play to its strengths and use data analytics, advanced manufacturing technologies and techniques to experiment, innovate and create an even higher level of manufacturing. However, the SMF recognizes that adoption of the same will entail a significant investment in both improving the existing talent pipeline, and, migrating from a big fixed cost structure to one that is nimble, agile and responsive, given the increasingly fluid dynamics of the global economy.

As Singapore’s largest trade association representing the interests of the local manufacturing community, the SMF has always advocated for (a) technology adoption; (b) human resource transformation; and (c) innovation to its members. Under the direction of a new management, the SMF has since embarked on a journey of self-review. In alignment with the SMF’s fundamental tenet of collaboration, the SMF has engaged with its membership base, both MNCs and SMEs, as well as its vast local and overseas networks, to begin a recent transformation that span both people and technology. After all, by improving one’s own capabilities, we can better improve that of others.

Initiatives to strengthen Sector & TAC  Providing Disruption Guidance – Leveraging on its membership base which spans 10 different Industry Groups within manufacturing, the SMF continuously engages with its members to seek feedback on digitalisation, a key disruptive factor within the sector. The SMF leads development of a technology roadmap that would identify key trends and the impact on manufacturing, which would in turn, identify thought leadership and best practices that organisations can reference and apply in their own digital transformation journey. The SMF also actively supports members in organising virtual exhibitions and business matching sessions, connecting digitally with members, with an outreach platform of over 1000 subscribers in the course of a year.  Improving Internal IT Functions – The SMF did an internal audit of its IT systems and processes and worked with external agencies such as the Cybersecurity Agency of Singapore to assess its IT capabilities. It then moved swiftly to adopt and customise IT solutions with its vendors to better improve its capability. Such include adopting the PEPPOL E-Invoicing system as well as engaging fresh university graduates to design mobile resource applications for staff usage such as room bookings and making staff claims.

Continued on next page…

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Case Study 3 Singapore Manufacturing Federation (SMF) [2/2] LARGE-SIZED Secretariat Headcount: 115

Focus Growth Driver: Technology

Initiatives to strengthen Sector & TAC  Putting People at the Forefront – Recognising that people are key to the TAC’s success, the SMF commenced an organic and sustainable HR transformation journey that seeks to optimise their workforce across three key initiatives: (1) Clearly defined performance measures linked to key business outcomes;(2) Competitive compensation rates linked to performance and (3) Training roadmap for upskilling and reskilling. By linking pay to performance, the SMF sought to drive a performance culture that supports business goals, and subsequently attract the right talent for the job; training would support employee retention and allow the SMF to develop its workforce holistically.

Key Learnings to drive Success  Change Management – The critical success factor for sustained success of its transformation journey is having dedicated change agents to ensure the full transition of the TAC over time. At the direction of their newly minted management team, the SMF regularly carries out organization wide reviews to identify high potential employees and has started to increase the involvement of such employees as well as the middle-management staff in the decision-making processes. The SMF has also increased the number of membership engagement activities and have even started the “SMF Helps” telegram group which put members in direct contact with the secretariat.  Bottom-up Engagement – Throughout its transformation journey, the SMF has realized the importance of attaining organisation-wide synchronicity and buy in so as to achieve successful and unified transformation. This involves engaging employees across all levels, and keeping all team members in-sync with transformation initiatives in the pipeline, ensuring that the TAC materialises its full transformation in solidarity.

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Section 4 The 6 Drivers of Growth

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The 6 Drivers of Growth for TACs This section provides a deep dive into the 6 Drivers of Growth:  Introduction to the 6 Drivers  Components of each Driver (i.e. Sub-Drivers)  Levels of growth stages across the Drivers and components

Find out more about 6 Drivers by clicking on the tiles.

Member Refers to the organisation’s key focus in order to anticipate future needs and deliver members’ preferred experiences in order to build loyalty and drive long-term sustainable growth SUB-DRIVERS

a. b. c. d.

Membership Experience Services & Markets Marketing Member Acquisition & Competition

Finance Refers to the way the organisation manages its finance, determines the best financial solution and derives maximum benefits from the management of available funds SUB-DRIVERS

a. Finance Sustainability and Growth b. Finance Processes and Controls c. Stakeholder Management

Strategy Planning & Operations Refers to the organisation operating model’s ability to deliver strategic intent SUB-DRIVERS

a. Strategy and Planning b. Operational Excellence c. Continuous Improvement 26

6 Drivers o

Remember, behind each main driver are a number of sub-drivers which give you the opportunity to do a deeper dive into the maturity content.

Risk Refers to the good governance and risk management to help reduce volatility across the organisation SUB-DRIVERS

 Governance Structure and Responsibilities  Risk Management  Policies, Procedures and Compliance

People Refers to the attraction and retention of the right people to help grow the organisation – people who share the organisation's vision and fit its culture

of Growth

SUB-DRIVERS

a. b. c. d.

Capability Performance Management and Rewards Human Resource Policies Leadership

Technology Refers to the way in which technology transforms every aspect of the organisation to make better decisions through digital, technology and data analytics SUB-DRIVERS

a. Digital Organisation b. Data and Analytics c. Security and Privacy 27

Driver 1: Member Member Driver: Introduction In a TAC context, members are the focal point. Leading organisations understand that by putting members’ needs and interests first, they can achieve a competitive advantage. They know all about their members — who they are, what they want and when they want it — and they know that building member loyalty goes hand in hand with long-term sustainable growth. Even after securing the membership base, these organisations are constantly thinking about how to keep creating or adding value for each and every member.

Member Driver Components Find out more about the various driver components by clicking on the icons below:

a. Member Experience

c. Marketing

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b. Services and Markets

d. Member Acquisition and Competition

Driver 1: Member Questions to think about: 1. How are your members being engaged?

2. How important is member loyalty to your organisation?

3. How would you describe your marketing efforts to attract new members?

4. What are the measures of success for the marketing function?

5. How would you describe the technology available to the marketing function?

Click here to find out more about this Driver

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Driver 1: Member – Sub-driver Questions (a. Member Experience) a.1. Member experience NA. None of the statements apply (AP 1.1.4) B. Member experience is siloed and often different across all touch points (AP 1.2.4) D. The quality of member experience is consistent within, but not always across all channels (AP 1.3.4) L.

Quality of experience is customised and consistent across all channels and touchpoints

a.2. Member engagement NA. None of the statements apply (AP 1.1.7) B. The organisation periodically engages its members (AP 1.2.7) D. The organisation regularly engages members and proactively reaches out to members to gather feedback (AP 1.3.7) L.

The organisation has an established and robust member engagement strategy, and utilises it to gain consistent insights on member sentiments

In Australia, members in Association of Mining and Exploration Company (AMEC)are entitled to free and regular member only networking events and get exclusive invitations to board room lunches with key government decision makers and industry leaders.

a.3. Member loyalty NA. None of the statements apply (AP 1.1.8) B. Member loyalty is recognised by the organisation; Current products and/or services meet existing member needs (AP 1.2.8) D. There are membership recognition programmes and rewards in place for long term members (e.g. long membership awards, discounted services, etc.) (AP 1.3.8) L.

Member loyalty is reflected through their contribution of ideas and insights that support the development of new services or programmes for the organisation; Members’ contribution and participation in organisation activities are tracked and rewarded accordingly In Germany, Association of the German Trade Fair Industry (AUMA) provides a platform for the exchange of information and experiences among members. AHK offers members the opportunity to exclusively offer each other attractive conditions on products and services, attracting a new member base.

Legend:

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B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 1: Member – Sub-driver Questions (b. Services and Markets) b.1. Member segmentation and analytics NA. None of the statements apply (AP 1.1.2) B. Basic segmentation is used to identify different categories of members to understand their specific needs (AP 1.2.2) D. Analytics are leveraged to assess different member segments to identify and tailor the appropriate member service and experience according to needs (AP 1.3.2) L.

Predictive analytics are deployed to proactively identify potential growth opportunities for the different member segments

b.2. Expansion of services and markets NA. None of the statements apply (AP 1.1.5) B. The organisation has local initiatives and programmes in place to facilitate growth opportunities for member companies (AP 1.2.5) D. The organisation identifies international business matching opportunities for member companies to facilitate expansion overseas and into emerging or diversified markets (AP 1.3.5) L.

The organisation has an established global network of partners to provide international business opportunities for its members; The organisation leverages on multiple levels of cross-collaboration with other government agencies, TACs, business entities and other organisations Taiwan External Trade Development Council (TAITRA) in Taiwan funded by the government, focuses on assisting Taiwanese businesses to develop international market. TAITRA organises international trade shows, conducts market studies and provides professional information of international trade.

Legend:

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B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 1: Member – Sub-driver Questions (c. Marketing) c.1. Marketing NA. None of the statements apply (AP 1.1.6) B. Marketing is focused on promoting the organisation’s products and/or services (AP 1.2.6) D. Marketing is focused on branding and member retention (AP 1.3.6) L.

The organisation is focused on developing deeper, long-term and continuous member relationships; Increasingly innovative and responsive digital marketing is integrated with traditional methods

In Taiwan, Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) provides B2B Web Services and marketing channels to help advertisers optimise promotion of their products/services. The platform’s database provides information comprising 90% of Taiwan’s electrical and electronics industries.

TEEMA invested in Google AdWords and search engine optimisation to enhance the platform’s publicity.

c.2 Branding NA. None of the statements apply (AP 1.1.1) B. There is an established vision, purpose and mission for the organisation (AP 1.2.1) D. There are efforts made to increase brand awareness of the organisation within the sector or industry (AP 1.3.1) L.

The organisation has successfully developed a strong brand image within the sector or industry; The organisation regularly reviews the brand identity and ensures its relevance. When necessary, rebranding occurs to keep up with the VUCA (volatile, uncertain, complex and ambiguous) environment

Legend:

32

B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 1: Member – Sub-driver Questions (d. Member Acquisition and Competition) d.1. Member acquisition management NA. None of the statements apply (AP 1.1.9) B. Members are acquired through traditional means and there is no focus on new member acquisition (AP 1.2.9) D. There is planned approach to acquire members through various channels such as reaching out to potential members through industry engagement and networking events (AP 1.3.9) L.

Brand image and reputation generates membership sign-ups; The membership function proactively attracts and acquires members through the use of digital marketing tools (e.g. social media, website advertisements, google analytics, etc.)

d.2. Competitor analysis and pricing NA. None of the statements apply (AP 1.1.3) B. The competitive environment is analysed to identify and assess the impact of competitors’ pricing on the organisation’s pricing strategies (AP 1.2.3) D. Knowledge of competitors is used to influence pricing strategies and to recommend an optimal pricing level for the products and/or services provided by the organisation (AP 1.3.3) L.

Competitors’ activities and market trends are comprehensively evaluated to proactively evolve products and/or services to value add to members

Click here to see the Action Plans

Legend:

33

B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 2: Finance Finance Driver: Introduction All organisations need funds to grow. How an organisation manages its money will determine its course for the future. Leading organisations determine the best financial solution — or mix of solutions — for their organisation and derive maximum benefits from their management of available funds.

Finance Driver Components Find out more about the various driver components by clicking on the icons below:

a. Finance Sustainability and Growth

c. Stakeholder Management

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b. Finance Processes and Controls

Driver 2: Finance Questions to think about: 1. How would you describe the focus of your finance function?

2. What are the measures of success for the finance function?

3. What are some of your revenue sources?

4. How do you monitor your working capital and how does it compare to your competitors?

5. Who do you consider to be your key stakeholders when you think about finance and funding?

Click here to find out more about this Driver

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Driver 2: Finance – Sub-driver Questions (a. Financial Sustainability and Growth) a.1. Revenue sources NA. None of the statements apply (AP 2.1.1) B. Membership is the core revenue source for the organisation (AP 2.2.1) D. Revenue sources are identified and evaluated to achieve financial stability for the organisation (AP 2.3.1) L.

There is access to multiple sources of revenue (e.g. training, events, etc.) to fund organisation growth

a.2. Working Capital NA. None of the statements apply (AP 2.1.2) B. Leaders are aware of how working capital supports funding (AP 2.2.2) D. The organisation knows how to improve working capital but has not fully implemented it yet (AP 2.3.2) L.

The organisation’s working capital is fully optimised as an asset; There is a working capital allocation plan in place To secure long-term financial sustainability, TACs in countries like Australia, Germany and Switzerland are moving beyond a pure membership revenue model.

Other channels that can augment TAC’s revenue stream include: Marketing and Advertising Services, Training Programmes, Events, Advisory/Consultancy, Office Rental Services, Product and Supplier Directories and Job Bank Platform.

Legend:

36

B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 2: Finance – Sub-driver Questions (b. Finance Processes and Controls) b.1. Finance processes and controls NA. None of the statements apply (AP 2.1.3) B. Financial controls are detective rather than preventative. They are primarily maintained by the staff (AP 2.2.3) D. The organisation has robust financial controls, which are predominantly preventative (AP 2.3.3) L.

Financial policies, processes and controls are consistent across the organisation and are highly automated and strategic

Legend:

37

B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 2: Finance – Sub-driver Questions (c. Stakeholder Management) c.1. Stakeholder management NA. None of the statements apply (AP 2.1.4) B. The organisation builds trust with stakeholders by focusing on compliance and statutory requirements (AP 2.2.4) D. The organisation understands stakeholder needs and is increasingly transparent in its communications. There are clearly defined roles and responsibilities to manage key stakeholders (AP 2.3.4) L.

The organisation clearly articulates its value proposition and tailors it to individual stakeholders. There is a track record of consistent delivery against promises — no surprises. The organisation is ready to explain its financial position to its stakeholders; There are evolving functions to manage banks, sponsors, and other stakeholders

Click here to see the Action Plans

Legend:

38

B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 3: Strategy Planning & Operations Strategy Planning & Operations Driver: Introduction Your operating model is the link between strategic intent and the ability of your organisation to deliver on that intent. Having a clear approach that aligns your operations with your strategy will increase your ability to achieve success.

Organisation leaders consider all aspects of operations at a macro and micro level.

Focused on the details, they understand that every aspect of their organisation must hold up to scrutiny and be constantly improved to stay relevant and ahead of the pack. Leading organisations leave nothing to chance but instead take control by analysing their operations and ensuring that all parts remain at their most effective at all times, making changes as and when needed.

Strategy Planning & Operations Driver Components Find out more about the various driver components by clicking on the icons below:

a. Strategy and Planning

c. Continuous Improvement

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b. Operational Excellence

Driver 3: Strategy Planning & Operations Questions to think about: 1. What is your organisation strategy in achieving the goals and priorities?

2. How is operational strategy defined and managed?

3. How are the outcomes of operational strategy measured and reported?

4. How is continuous improvement embedded within the organisation?

5. How do you measure improvements across the organisation?

Click here to find out more about this Driver

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Driver 3: Strategy Planning & Operations – Sub-driver Questions (a. Strategy and Planning) a.1. Value creation strategy NA. None of the statements apply (AP 3.1.2) B. The organisation is able to understand and meet the needs of its members (AP 3.2.2) D. The organisation is constantly exploring new ways and opportunities to create or add value to its members (AP 3.3.2) L.

The organisation strategy embraces an innovative culture fully aligned with the different member needs and requirements to deliver optimal growth and financial sustainability

a.2. Organisation continuity planning NA. None of the statements apply (AP 3.1.3) B. The organisation has continuity plans and measures in place to ensure organisation continuity in the event of disruption or crisis (AP 3.2.3) D. The staff are clearly communicated or educated on the organisation continuity plans to ensure organisational awareness (AP 3.3.3) L.

Continuity plans are proactively reviewed for effectiveness and continuously updated for relevance in managing future disruptions or crisis situations In Germany, the Association of the German Trade Fair Industry (AUMA) had developed continuity plans for the German Trade Fair industry, enabling the resumption of physical trade fairs with safedistancing and hygiene measures in place. AUMA’s continuity planning had enabled Germany to conduct 20 physical trade fairs and exhibitions to host local and international attendees after a period of 6 months during which physical exhibitions were prohibited due to the pandemic.

a.3. Organisation strategy and partnerships NA. None of the statements apply (AP 3.1.1) B. The go-to-market strategy is opportunistic; Strategic partnerships are not a key priority (AP 3.2.1) D. The go-to-market strategy drives short term growth; Strategic partnerships are occasionally leveraged to tap on each others’ competencies or to deliver scale (AP 3.3.1) L.

The organisation strategy includes a plan to drive long term sustainable growth and uses strategic partnerships as a key component in driving the strategy Legend:

41

B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 3: Strategy Planning & Operations – Sub-driver Questions (b. Operational Excellence) b.1. Operational excellence NA. None of the statements apply (AP 3.1.4) B. There is a focus on operational excellence within silos in the organisation; Standard operating procedures (SOPs) are developed, but not often communicated or reviewed (AP 3.2.4) D. Cross-functional collaboration drives productivity and cost-optimisation across the organisation; SOPs are constantly reviewed and clearly communicated to the staff (AP 3.3.4) L.

Operations are fully integrated within the organisation; Structure is an optimal combination of outsourcing, in-house capability and collaboration with external parties for cost-effectiveness, productivity and efficiency measures

Legend:

42

B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 3: Strategy Planning & Operations – Sub-driver Questions (c. Continuous Improvement) c.1. Continuous improvement NA. None of the statements apply (AP 3.1.5) B. There is an application of continuous improvement to organisation activities and processes, however done on an ad-hoc basis (AP 3.2.5) D. Clear roles and responsibilities are appointed for continuous improvement initiatives, driving a common approach towards identifying improvements to processes (AP 3.3.5) L.

The organisation has an established proactive and innovative culture in consistently identifying continuous improvement measures to enhance processes for optimisation

Click here to see the Action Plans

Legend:

43

B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 4: Risk Risk Driver: Introduction All fundamental challenges a growing organisation faces, from recruiting the best people to managing finance, have an element of risk. To succeed in today’s fastmoving environment, the organisation leaders must have a strategic approach to risk management. Regardless of an organisation’s stage of growth, the ability to identify and manage risk stands out as a vital element of success. Operating an organisation requires taking risks. Organisations that identify and manage these risks well are positioned to grow and remain successful. Organisations that wish to become leaders should not fear risk, but approach it intelligently in order to reap its rewards and accelerate growth.

Risk Driver Components Find out more about the various driver components by clicking on the icons below:

a. Governance Structure and Responsibilities

c. Policies, Procedures and Compliance

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b. Risk Management

Driver 4: Risk Questions to think about: 1. What is your organisation’s structure and responsibilities?

2. Is there a strong governance structure in place?

3. Where is the accountability for risk identification and mitigation?

4. How would you describe the approach to identifying and mitigating risks within the organisation?

5. How do you monitor adherence to the Constitution?

Click here to find out more about this Driver

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Driver 4: Risk – Sub-driver Questions (a. Governance Structure and Responsibilities) a.1. Structure and responsibilities NA. None of the statements apply (AP 4.1.1) B. An Executive Committee (Exco)/ Council/ Board of Directors exists. The roles and responsibilities of the Exco and Secretariat are clearly defined and understood by all (AP 4.2.1) D. The Exco acts by collective leadership and is actively involved in strategic oversight without stepping over their responsibilities and boundaries; The Exco sets the overall strategic direction of the organisation while the Secretariat drives the governance function in ensuring compliance with the Constitution, the Societies Act and Societies Regulation and relevant laws (AP 4.3.1) L.

There is a strong governance structure in place; The Exco exercises independence and sets the risk culture and appetite in a tone from the top

Legend:

46

B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 4: Risk – Sub-driver Questions (b. Risk Management) b.1. Risk identification management NA. None of the statements apply (AP 4.1.2) B. Responsible risk taking is seen as core to organisation success; Key risks are discussed on a regular basis by the leaders (AP 4.2.2) D. There is a structured approach to identifying, monitoring and assessing key risk and controls (e.g. operational, finance and compliance). Risk management is clearly articulated in all role descriptions and performance criteria (AP 4.3.2) L.

Key organisation risks are aligned to key performance indicators and managed to ensure organisation objectives are met; Risk is embedded in the operational culture of the organisation; The organisation proactively communicates its risk management programme to the relevant stakeholders In Australia, Australian Chamber of Commerce and Industry (ACCI) developed surveys and advisories in response to COVID-19, providing access to up-to-date resources and information, including guides to navigate temporary legislation and new employment frameworks.

Legend:

47

B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 4: Risk – Sub-driver Questions (c. Policies, Procedures and Compliance) c.1. Policy NA. None of the statements apply (AP 4.1.3) B. The Secretariat develops and controls risk polices and procedures for major risks under the direction of the Exco (AP 4.2.3) D. Individual functions have formally documented policies and procedures. These are aligned to overall organisation strategies and objectives (AP 4.3.3) L.

There is a comprehensive, documented, organisation-wide policy framework to manage organisation risks (e.g. operational, finance and compliance), with a strong leadership tone from the top. The risk framework extends to external stakeholders in the value chain

c.2. Compliance NA. None of the statements apply (AP 4.1.4) B. The organisation has a reactive approach to complying with the Constitution and external regulations (AP 4.2.4) D. There is an independent compliance approach to manage compliance with the Constitution and external regulations (AP 4.3.4) L.

The organisation contributes to the long-term development of the industry regulatory landscape

Click here to see the Action Plans

Legend:

48

B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 5: People People Driver: Introduction Any organisation is only ever as good as the people working for it. To win the war for talent, leading organisations build an environment that values diversity and attracts and retains the right people to help grow their organisations — not just great people, but people who share the organisation’s vision and fit its culture. Leading organisations provide strong leadership and create an inclusive environment where differences are valued and people can innovate to drive the organisation forward. On top of this, they invest in their employees, nurturing their talent and helping them develop skills to match the constantly changing demands during each different growth phase.

People Driver Components Find out more about the various driver components by clicking on the icons below:

a. Capability

c. Human Resource Policies

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b. Performance Management and Rewards

d. Leadership

Driver 5: People Questions to think about: 1. How would you describe the focus of your HR function?

2. What are the measures of success for the HR function?

3. How is reward differentiated by performance?

4. What strategies do you use to recruit and retain the best people?

5. How do you encourage individuals to be innovative?

Click here to find out more about this Driver

50

Driver 5: People – Sub-driver Questions (a. Capability) a.1. Strategy NA. None of the statements apply (AP 5.1.5) B. Human resources are focused on meeting current deadlines and organisation objectives (AP 5.2.5, AP 5.2.6) D. Human resources are focused on meeting future deadlines and organisation objectives (AP 5.3.3) L.

The People Plan plays a fundamental role in strategy and organisation performance by focusing on an agile workforce, diversity and technology enablement; Diversity, agility and teamwork are embedded in the culture of the organisation and essential to achieving organisation goals

a.2. Planning NA. None of the statements apply (AP 5.1.3) B. Individuals are clear about their roles and responsibilities (AP 5.2.3) D. In-house skill gaps are identified and minimised through a combination of outsourcing and flexible working (AP 5.3.7) L.

Human resources planning is highly proactive and embraces technology, partnerships and collaborations to optimise productivity In Canada, the Canadian Society of Association Executives (CSAE) offers a CAE programme designed to meet the needs of the association executives and provide transferable skills coupled with association sector-specific knowledge. The CSAE conducts research, produces publications and deliver events targeted to keep the association professionals informed on the latest trends, innovations and best practices in the sector.

a.3. Culture NA. None of the statements apply (AP 5.1.4) B. The purpose and roles of organisation are clearly articulated and understood by all (AP 5.2.4) D. Behaviours that represent the desired organisation culture is demonstrated (AP 5.3.4) L.

The culture and values of the organisation drive the attraction and retention of staff

Legend:

51

B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 5: People – Sub-driver Questions (a. Capability) a.4. Embedding Innovation NA. None of the statements apply (AP 5.1.6) B. The organisation encourages innovative mindsets and adoption of technology to enhance organisation capabilities (AP 5.2.6) D. The organisation develops innovation as a competency and attracts likeminded talent (AP 5.3.5) L.

There is a strong focus on innovation across the organisation. Staff are given time to explore novel concepts and ideas; Leaders are champions of innovation and advocate the adoption of technology In Australia, Australian Chamber of Commerce and Industry (ACCI) provides digital and technology vouchers to small businesses for investing in digital technology hardware, software or services that will improve the efficiency of their operations.

Legend:

52

B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 5: People – Sub-driver Questions (b. Performance Management and Rewards) b.1. Performance Management Framework NA. None of the statements apply (AP 5.1.8) B. Performance is managed on an individual basis (AP 5.2.7) D. There is a framework for aligning performance management with organisation strategy (AP 5.3.8) L.

Cascading organisation objectives and goals are linked to rewards; The organisation uses analytics to measure activity and outcomes of both the team and the individual

b.2. Feedback NA. None of the statements apply (AP 5.1.7) B. Managers provide ad-hoc feedback to staff (AP 5.2.7) D. Feedback is provided throughout the year through a structured review framework (AP 5.3.6) L.

Continuous feedback is provided throughout the year on performance, rewards and succession planning

b.3. Values NA. None of the statements apply (AP 5.1.7) B. Organisational values exist but lack a clear link to performance management (AP 5.2.7) D. Organisational values are embedded in performance management (AP 5.3.8) L.

Organisational values are understood by all. Behaviours are aligned to performance and linked to rewards

Legend:

53

B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 5: People – Sub-driver Questions (b. Performance Management and Rewards) b.4. Rewards NA. None of the statements apply (AP 5.1.7) B. Rewards are provided to attract and retain individuals and to meet organisation objectives (AP 5.2.7) D. There is visible evidence of links between high performance, rewards and the achievement of organisation objectives (AP 5.3.8) L.

Behaviours as well as outcomes are rewarded for both the team and the individual; A strong employer brand is used to attract, motivate and retain high performers and teams

Legend:

54

B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 5: People – Sub-driver Questions (c. Human Resource Policies) c.1. Human Resource Policies NA. None of the statements apply (AP 5.1.2) B. Human resource (HR) policies are in place and documented within the organisation (AP 5.2.2) D. The HR policies are constantly reviewed and refined in accordance with the legislative and compliance requirements and risks relevant to the organisation (AP 5.3.2) L.

The HR policies are aligned with national strategic HR initiatives and legislation and integrated with global industry trends and best practices

Legend:

55

B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 5: People – Sub-driver Questions (d. Leadership) d.1. Leadership NA. None of the statements apply (AP 5.1.1) B. The leaders are aligned with the Executive Committee (Exco)/ Council/ Board of Directors on the organisation strategy and recognise the role they play in contributing to the organisation’s goals and objectives (AP 5.2.1) D. The leaders are passionate about the organisation strategy and motivate people to achieve the organisation’s goals and objectives (AP 5.3.1) L.

The leaders are passionate and inspiring, lead by execution and perceive themselves as people-leaders and not operational managers

Click here to see the Action Plans

Legend:

56

B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 6: Technology Technology Driver: Introduction For organisation leaders, information is power. It can help them make better, quicker, smarter decisions that improve organisation performance and manage risk. Digital technologies — including social media, data analytics and mobile — are impacting organisations across all industries. They are fundamentally changing the ways in which customers interact with these organisations while also opening up new operating models. If organisations harness the power of information technology, they can create a strategic and competitive advantage. Yet, while many leaders recognise this potential value, many still find it hard to successfully leverage information technology to deliver organisation change.

Technology Driver Components Find out more about the various driver components by clicking on the icons below:

a. Digital Organisation

c. Security and Privacy

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b. Data and Analytics

Driver 6: Technology Questions to think about: 1. How would you describe the level of technology adoption and innovation across the organisation?

2. How would you characterise the use of digital tools within work processes?

3. Are the leaders pro-actively engaged in technology identification?

4. How is data privacy and security managed in the organisation?

Click here to find out more about this Driver

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Driver 6: Technology – Sub-driver Questions (a. Digital Organisation) a.1. Adoption of Technology NA. None of the statements apply (AP 6.1.1, AP 6.1.2) B. The organisation is risk-averse and slow to adopt new technology; Digital initiatives are limited in scope (AP 6.2.1, AP 6.2.2) D. The organisation waits to adopt new and emerging technologies until they are proven; Legacy persists and acts as a drain on resources, investment and focus (AP 6.3.1, AP 6.3.2, AP 6.3.3, AP 6.3.4) L.

Emerging technologies are embraced and adopted rapidly; Experimentation is encouraged and failure is acceptable; Technology investment is proactive and agile to meet the strategic objectives of being a digital organisation

a.2. Digital Experience NA. None of the statements apply (AP 6.1.1, AP 6.1.2) B. There is very limited thinking on how the digital experience should be structured (AP 6.2.1, AP 6.2.2) D. Key digital technologies are leveraged to support the existing operating model (AP 6.3.1, AP 6.3.2, AP 6.3.3, AP 6.3.4) L.

The organisation has become a digital organisation. Digital is at the heart of the way the organisation operates, the products and/or services it offers, and how it interacts with the members and other stakeholders In Taiwan, Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) developed the Taiwan Electronics Industry App to incorporate the entire upper, mid, lower, and the peripheral supply chain systems to maximise competitiveness and increase international exposure for Taiwan manufacturers.

Legend:

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B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 6: Technology – Sub-driver Questions (a. Digital Organisation) a.3. Platforms NA. None of the statements apply (AP 6.1.1, AP 6.1.2) B. Digital platforms have been established but are not integrated with other platforms and rely on legacy platform infrastructure; The technology function drives change using only internal staff or long-term established partners (AP 6.2.1, AP 6.2.2) D. Digital platforms are driven from the organisation’s perspective. The technology function drives change using internal staff or long-term established partners, with limited experimentation with newer technology vendors or service providers (AP 6.3.1, AP 6.3.2, AP 6.3.3, AP 6.3.4) L.

Digital platforms are fully established and driven from an externally focused (member and ecosystem) multi-channel perspective. The technology function within the organisation seeks the best of skills within and outside of the organisation; Emerging technologies such as RPA are adopted throughout the organisation to increase efficiency and drive down cost In Germany, the German Chambers of Commerce Abroad (AHK) transformed its website to a centralized online platform for its members. AHK placed emphasis on a “mobile first” approach, enabling clients and members to remotely access the website for association updates and content. The platform also enables businesses to digitally browse for a large range of products and services available.

Legend:

60

B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 6: Technology – Sub-driver Questions (b. Data and Analytics) b.1. Data Quality and Management NA. None of the statements apply (AP 6.1.3) B. Data management is ad hoc throughout the organisation, and there is limited capability to handle big data; The organisation has challenges generating value and insight from its own (AP 6.2.3, AP 6.2.4) D. The organisation recognises the importance of quality data and has deployed tools and techniques to drive data accuracy and insight (AP 6.3.5, AP 6.3.6) L.

The organisation has data, governance and processes in place, with the appropriate systems to support data and quality management

b.2. Data Collection and Analysis NA. None of the statements apply (AP 6.1.3) B. Data is collected through traditional approach and limited analysis is performed (AP 6.2.3, AP 6.2.4) D. Market intelligence and data analysis is used in various parts of the organisation to identify growth opportunities and improve decision-making and processes (AP 6.3.5, AP 6.3.6) L.

The organisation uses data to forecast future needs and influence decisionmaking across the organisation In Taiwan, TAITRA, TEEMA and TSIA does external research on trends and in-depth market surveys for members. TAITRA in particular utilised big data to gather market intelligence on overseas markets to implement strategies for exploring businesses and provided companies with analytic reports. TSIA, on the other hand, engages with international organisations in the industry to provide members with the latest global semiconductor-related regulations, technology trends and market forecasts.

Legend:

61

B

Basic

D

Developing

L

Leading

NA

Not Applicable

Driver 6: Technology – Sub-driver Questions (c. Security and Privacy) c.1. Responsibility NA. None of the statements apply (AP 6.1.4) B. Security and privacy issues are driven ‘bottom-up’ in the organisation (AP 6.2.5) D. Security is viewed as an IT issue, but has oversight from and regular reporting to, non-IT stakeholders (AP 6.3.7) L.

Security is viewed as a critical component of the organisation’s overall risk management via strong ‘tone at the top’

c.2. Scope NA. None of the statements apply (AP 6.1.5) B. Compliance with regulatory requirements drives security efforts; Focus on the importance of digital assets to organisation strategy is limited; Security issues are identified and addressed reactively (AP 6.2.5) D. Security architecture is in place that supports a defence strategy. This provides layers of deterrence that limits attackers’ ability to access critical digital assets; The security function recognises and regularly evaluates the ecosystem including reliance on third parties and partners (AP 6.3.7) L.

Security efforts follow an ‘active defence’ approach with proactive identification of issues driven from inside the organisation; Security and privacy strategies are driven by protection of the most critical digital assets and support of organisation growth drivers

c.3. Focus NA. None of the statements apply (AP 6.1.6) B. The security focus is on building and/or maintaining perimeter controls and legacy end-point controls (e.g. anti-virus) (AP 6.2.5) D. The company recognises and balances investment and operational effort between preventative controls and a strong monitoring and response capability (AP 6.3.7) L.

The focus is on operating a resilient security and privacy capability

Click here to see the Action Plans

Legend:

62

B

Basic

D

Developing

L

Leading

NA

Not Applicable

Section 5 Action Plans

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Action Plans This section provides an overview of the action plans a TAC can carry out based on the intended growth stages – Basic, Developing or Leading. The action plans are identified for each growth driver across the 3 growth stages.

How to review action plans based on growth stages?

After determining your TAC’s current state of maturity for the selected growth driver(s) and where it aspires to be in the future, it is time to take a look at the action plans to help grow the organisation.

You can click on any of the tiles below to see the action plans for each growth driver.

For example, if you have assessed your TAC to be at the Developing stage for the Member driver and would like to be at the Leading stage, you can select “Stage: Leading” tile under Member to see the relevant action plans for achieving your goal.

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Member

Finance

Stage: Basic

Stage: Basic

Stage: Developing

Stage: Developing

Stage: Leading

Stage: Leading

Strategy Planning & Operations

Risk

Stage: Basic

Stage: Basic

Stage: Developing

Stage: Developing

Stage: Leading

Stage: Leading

People

Technology

Stage: Basic

Stage: Basic

Stage: Developing

Stage: Developing

Stage: Leading

Stage: Leading

Action Plans: Driver 1 – Member The following action steps and consideration points serve as a guide to help your TAC grow into the “Basic” stage for this driver.

STAGE 1: BASIC

1.1.1

1.1.2

1.1.3

1.1.4

1.1.5

Establish vision, purpose and mission of the organisation Key considerations ►

Are your organisation’s vision, purpose and mission clearly defined?

►

How are members made aware of your organisation’s vision, purpose and mission?

Use basic segmentation to identify different categories of members Key considerations ►

Are members in your organisation segmented in any way?

►

What are the member categorisations based on?

Analyse competitive environment to inform organisation’s pricing strategies Key considerations ►

How does your organisation obtain information on its competitors for benchmarking?

►

How is benchmarking data used to inform your organisation’s pricing strategies?

Align organisation’s promise with member experience Key considerations ►

How does your organisation ensure that the product/ service offerings are aligned to its advertised vision, mission and purpose?

►

How does your organisation resolve reported discrepancies between its promise and member experience?

Facilitate growth opportunities for members through local initiatives and programmes Key considerations

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►

What kind of local initiatives or programmes your organisation currently has in place for the members?

►

How do these help facilitate growth opportunities for the members?

Action Plans: Driver 1 – Member The following action steps and consideration points serve as a guide to help your TAC grow into the “Basic” stage for this driver.

STAGE 1: BASIC

1.1.6

1.1.7

1.1.8

1.1.9

Promote products and/or services using marketing activities Key considerations ►

Are members aware of the products and/or services offered by your organisation?

►

What medium(s) of marketing are utilised in your organisation?

Develop plans to engage members periodically Key considerations ►

How often does the organisation engage with the members?

►

Is there a structured member engagement plan in place?

►

What are the key objectives of member engagement activities carried out by your organisation?

Recognise member loyalty Key considerations ►

How can recognising member loyalty improve your organisation’s member retention outcomes?

►

What are the different ways in which member loyalty can be recognised by your organisation?

Acquire members through traditional means Key considerations ►

What are the ways in which your organisation acquires new members?

►

How are member acquisition rates across different channels evaluated for effectiveness?

Outcome: Organisation has well defined vision, purpose and mission that are clearly articulated to the members. Members are segmented based on needs and products and/or services are catered according to those needs. Members are engaged periodically and loyalty is recognised by the organisation.

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Action Plans: Driver 1 – Member The following action steps and consideration points serve as a guide to help your TAC grow into the “Developing” stage for this driver.

STAGE 2: DEVELOPING

1.2.1

1.2.2

Develop brand management strategy for the organisation Key considerations ►

How can your organisation strengthen its brand to further increase the awareness and confidence of members and the community?

►

What measures can be taken by your organisation to drive consistency and alignment of its activities to its brand image?

Use analytics to assess the needs of different member segments for identifying the appropriate member service and experience Key considerations

1.2.3

1.2.4

►

What kinds of data does your organisation require in order to assess the different member segments and their needs?

►

How does your organisation use such data to identify appropriate member services and experiences for specific groups of members?

Leverage on competitor analysis to influence pricing strategies Key considerations ►

Based on competitor analyses, where does your organisation stand in relation to its competitors’ scale of services and pricing?

►

How does your organisation use such benchmarks to position its pricing strategies in a way that justifies membership costs?

Align organisation’s promise with member experience Key considerations ►

1.2.5

67

What can be done to ensure continuous alignment of member experience to your organisation’s promise as it grows in scale of operations?

Identify international business matching opportunities for members Key considerations ►

How to drive growth opportunities for your members beyond the local landscape?

►

What are the international business landscapes and regulations?

Action Plans: Driver 1 – Member The following action steps and consideration points serve as a guide to help your TAC grow into the “Developing” stage for this driver.

STAGE 2: DEVELOPING

1.2.6

1.2.7

1.2.8

1.2.9

Focus marketing efforts on branding and member retention Key considerations ►

What aspects of your organisation's branding are lacking public awareness?

►

Which member segments have been identified as declining in population?

►

How can marketing efforts be more focused on targeted member demographics?

Introduce regular member engagement and feedback process Key considerations ►

How can more regular member engagement and feedback-gathering benefit your organisation in being more responsive to member needs?

►

What are the key intervals of member engagement that would provide the most valuable insights to your organisation?

Introduce membership recognition programmes and rewards Key considerations ►

How can your organisation introduce a more structured approach to reward member loyalty?

►

What types of recognition programmes and rewards would effectively incentivise better member retention and loyalty?

Use various channels to acquire new members Key considerations ►

►

What are other channels that your organisation can use for outreach and

acquisition of new members?

How can these alternative channels add value to your organisation’s current approach to member acquisition?

Outcome: Organisation has marketing and brand management strategies in place that drive brand awareness and member acquisition and retention.

Members are engaged on a regular basis and supported in expanding overseas beyond the local landscape. There are also membership recognition programmes and rewards in place to recognise member loyalty.

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Action Plans: Driver 1 – Member The following action steps and consideration points serve as a guide to help your TAC grow into the “Leading” stage for this driver.

STAGE 3: LEADING

1.3.1

1.3.2

Enhance brand management strategy to ensure its relevance Key considerations ►

What can your organisation do to ensure that its brand is continuously providing value and relevance to members’ needs?

►

Is rebranding required to keep up with the VUCA (volatile, uncertain, complex and ambiguous) environment?

Introduce predictive analytics to proactively identify potential growth opportunities for the different member segments Key considerations ►

1.3.3

What kinds of datasets are required for identifying emerging growth opportunities for the different member segments?

Periodically review and refine products and/or services to value add to members Key considerations

1.3.4

►

What are the emerging market trends?

►

How does your organisation evaluate the value add of the products and/or services provided to the members?

►

How can your organisation incorporate members’ feedback into the product and/or service offerings to provide a more tailored experience to the members?

Develop plans to promote enhanced and consistent member experience across all channels and touch points Key considerations ►

1.3.5

What measures can your organisation take to ensure consistency of its members’ experiences across all channels and touch points?

Enhance global network of partners to provide international business opportunities for members Key considerations

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►

What kinds of cross-collaboration opportunities are available in facilitating members in expanding their businesses overseas?

►

How can your organisation be more effective in selecting optimal international business partners and opportunities that benefit the members?

Action Plans: Driver 1 – Member The following action steps and consideration points serve as a guide to help your TAC grow into the “Leading” stage for this driver.

STAGE 3: LEADING

1.3.6

Develop digital marketing strategy to integrate with or replace traditional marketing methods Key considerations ►

1.3.7

Use members’ feedback to drive product and/or service innovation Key considerations ►

1.3.8

Which of your organisation’s existing marketing methods can be replaced or be integrated with digital marketing?

What technologies or methods can your organisation use to gather members’ feedback on its product and/or services offerings?

Track and reward member’s contribution and participation in organisation’s activities Key considerations

1.3.9

►

How can your organisation adopt a more systematic approach in tracking the members’ contributions and participation?

►

In what ways can your organisation use this tracked data to allocate rewards and recognition consistently?

Explore further channels for member acquisition Key considerations ►

How can your organisation incorporate different methods of digital marketing to improve member attraction and acquisition?

►

Are there any additional forums or platforms frequented by your organisation’s target audience that can be tapped into for member acquisition?

Outcome: Organisation has strong brand image and reputation within the sector or industry resulting in more membership sign-ups. Member experience is consistent across all channels and touchpoints. Members’ contribution and participation in organisation activities are tracked and rewarded accordingly, driving member loyalty and retention.

Organisation also has a strong network of partners in facilitating the development and growth of its members.

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Action Plans: Driver 2 – Finance The following action steps and consideration points serve as a guide to help your TAC grow into the “Basic” stage for this driver.

STAGE 1: BASIC

2.1.1

Develop a revenue strategy with membership being a core revenue source for the organisation Key considerations

2.1.2

►

What is your organisation’s business model and overall goals?

►

What are some revenue sources for your organisation?

►

How effective is membership in driving the organisation’s long-term financial sustainability?

Develop a plan to increase visibility and gain clarity and insights into the organisation’s overall working capital structure Key considerations

2.1.3

2.1.4

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►

What are your organisation’s current assets and liabilities? What is the net working capital and how does it support funding in growing the organisation?

►

How effective is your organisation in managing its liquidity?

Implement detective control procedures for the organisation Key considerations ►

What are your organisation’s goals and objectives and the risks in achieving them?

►

What kinds of controls can help detect or uncover issues within your organisation’s finance processes?

►

Who is responsible for the execution of such internal control responsibilities?

Build trust with stakeholders by focusing on risk and compliance Key considerations ►

How does your organisation’s compliance function link to its strategic priorities and risk appetite?

►

Are they aligned with the overall organisation strategy, purpose and values?

Outcome: Organisation leaders have clarity and insights into the overall working capital structure for providing the necessary funds to grow the organisation. There are internal controls in place to ensure the integrity of financial and accounting information and drive compliance across the organisation.

Action Plans: Driver 2 – Finance The following action steps and consideration points serve as a guide to help your TAC grow into the “Developing” stage for this driver.

STAGE 2: DEVELOPING

2.2.1

Identify and evaluate different revenue sources to achieve financial sustainability for the organisation Key considerations

2.2.2

2.2.3

►

What are the market trends and activities provided by other organisations?

►

What other alternative sources of revenue are viable for the organisation?

Review and improve net working capital position Key considerations ►

What are some ways your organisation can shorten the working capital cycle to improve its short-term liquidity position?

►

Is there a way your organisation can further use the current assets to generate additional revenue or funds?

►

What are some ways your organisation can avoid unnecessary expenses and delays in payment?

►

How often do your organisation review capital and operating expenses position?

Perform review of internal controls to ensure that they are preventive and detective in nature Key considerations

2.2.4

►

How effective are your organisation’s internal control activities in managing and reducing financial and compliance risks?

►

What are the types of preventive controls the organisation has in place to help avoid or mitigate exposure to risks?

Develop stakeholder management strategy and plan to effectively manage the stakeholder expectations and needs Key considerations

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►

Who are your organisation’s key stakeholders? What are their needs and areas of interests?

►

What are the various communication channels, approaches and techniques to drive optimal stakeholder relationships and ensure they are constantly kept informed?

Action Plans: Driver 2 – Finance The following action steps and consideration points serve as a guide to help your TAC grow into the “Developing” stage for this driver.

STAGE 2: DEVELOPING Outcome: Organisation achieves financial sustainability through regular review and enhancement to revenue strategy and control of the working capital. There are also robust internal controls in place to manage and mitigate financial and compliance risks. Organisation understands the different stakeholder needs and is transparent in its communications with the stakeholders.

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Action Plans: Driver 2 – Finance The following action steps and consideration points serve as a guide to help your TAC grow into the “Leading” stage for this driver.

STAGE 3: LEADING

2.3.1

Develop a revenue model that leverages on multiple sources of revenue to fund organisational growth and drive long-term financial sustainability Key considerations

2.3.2

►

Are there new ways of generating revenue for the organisations?

►

What are the stakeholder needs and how to deliver value add through the expansion of functions and/or products/ service offerings?

Develop capital allocation strategy and plan to improve liquidity and operational efficiency Key considerations

2.3.3

►

How can your organisation’s assets be fully optimised? Are there any assets that can b e divested in order to fund more strategic initiatives?

►

Are there any inefficient or ineffective spending that can be deprioritised to reduce operating expenses in order to fund value-creating strategic initiatives?

Develop robust financial policies, procedures and controls which are consistent across the organisation Key considerations

2.3.4

►

What are the financial policies, procedures and controls your organisation has in place? Are they aligned and consistent across the organisation?

►

How often are they subjected to review and updates?

Establish effective stakeholder communication plan to ensure stakeholders are provided with timely access to the organisation’s financial information Key considerations ►

Do decision makers in the organisation have timely access to financial information needed to make informed decisions?

►

Do staff receive regular updates and training on the financial policies and procedures of the organisation?

►

Are the staff clearly informed on their roles and responsibilities in carrying out the financial procedures?

Outcome: Organisation achieves long-term financial sustainability through a robust revenue model that leverages on multiple revenue sources, effective capital allocation strategy, and financial policies and procedures in place to drive efficient financial management and risk mitigation.

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Action Plans: Driver 3 – Strategy Planning & Operations The following action steps and consideration points serve as a guide to help your TAC grow into the “Basic” stage for this driver.

STAGE 1: BASIC

3.1.1

3.1.2

3.1.3

Define an organisational strategy for your TAC Key considerations ►

What are your organisation’s strategic issues and goals?

►

What are the market opportunities and threats?

Create value for members by understanding their needs Key considerations ►

What do your members need?

►

Do you offer products and/or services to cater to their needs?

Develop organisation continuity plans and measures to ensure organisation continuity in the event of disruption or crisis Key considerations

3.1.4

3.1.5

►

What are the critical functions and processes in your organisation?

►

What are the risks associated with the key components of the business operations?

Develop and communicate standard operating procedures (SOPs) to staff Key considerations ►

Are the SOPs aligned with the organisation’s objectives?

►

Do the SOPs promote operational excellence in sustaining efficiency, consistency and quality of operations?

Develop continuous improvement strategies and plans to meet organisational goals and targets Key considerations ►

What are the organisation’s continuous improvement goals and targets?

►

What are the functional key performance indicators?

Outcome: Organisation has a defined overall strategy that promotes operational excellence, continuous improvement and organisation continuity to achieve efficient, consistent and quality day-to-day operations.

75

Action Plans: Driver 3 – Strategy Planning & Operations The following action steps and consideration points serve as a guide to help your TAC grow into the “Developing” stage for this driver.

STAGE 2: DEVELOPING

3.2.1

Work together with strategic partners to tap on each others’ competencies and/or to deliver scale Key considerations

3.2.2

3.2.3

►

Who are your organisation’s key strategic partners?

►

How can they contribute to your organisation’s strategies and objectives?

Explore new ways and opportunities to create or add value for members Key considerations ►

What are the existing products and/or services offered to the members and how are the uptake?

►

What are the emerging industry trends that may impact the member needs?

Communicate and educate staff on organisation continuity plans to ensure organisational awareness Key considerations

3.2.4

►

What are the roles and responsibilities of staff in execution of the organisation continuity plans?

►

What are some channels in your organisation to communicate the organisation continuity plans?

Encourage cross-functional collaboration amongst teams to drive productivity and cost-optimisation across the organisation Key considerations

3.2.5

►

Are there synergies across functions?

►

Are there collaboration opportunities to drive operational productivity and cost-optimisation?

Communicate and educate staff on continuous improvement initiatives to drive a common approach towards identifying improvements to processes Key considerations

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►

Are the staff aware of the functional key performance indicators?

►

What are the roles and responsibilities of staff in execution of the continuous improvement initiatives?

Action Plans: Driver 3 – Strategy Planning & Operations The following action steps and consideration points serve as a guide to help your TAC grow into the “Developing” stage for this driver.

STAGE 2: DEVELOPING Outcome: Strategic partnerships and collaborations are leveraged to achieve organisation’s strategies. Staff are aligned on their roles and responsibilities in implementing organisation continuity and continuous improvement plans.

77

Action Plans: Driver 3 – Strategy Planning & Operations The following action steps and consideration points serve as a guide to help your TAC grow into the “Leading” stage for this driver.

STAGE 3: LEADING

3.3.1

Develop a plan that leverages on strategic partnerships to drive long-term sustainable growth for the organisation Key considerations

3.3.2

►

What is your organisation’s long-term strategy?

►

Which partners will be able to help your organisation achieve the strategy?

Inculcate an innovative culture aligned with differing member needs and requirements to deliver optimal growth and financial sustainability Key considerations

3.3.3

►

What is your organisational culture?

►

What can be done to deliver optimal growth and financial sustainability while meeting the different member needs and requirements?

Conduct regular review and update of organisation continuity plans to effectively manage future disruptions or crisis situations Key considerations

3.3.4

►

How often does your organisation review continuity plans?

►

Are the current continuity plans effective in managing disruptions?

Integrate operations within the organisation to drive productivity, efficiency and cost effectiveness Key considerations

3.3.5

►

What is the optimal structure for your organisation?

►

How can the operations be optimised to drive productivity, efficiency and cost effectiveness?

Establish a proactive and innovative culture in consistently identifying continuous improvement measures to enhance processes for optimisation Key considerations

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►

What are your organisation strategies, tools and techniques in continuous process improvement?

►

How can your organisation refine existing framework to identify continuous improvement measures?

Action Plans: Driver 3 – Strategy Planning & Operations The following action steps and consideration points serve as a guide to help your TAC grow into the “Leading” stage for this driver.

STAGE 3: LEADING Outcome: Organisation adopts an innovative culture to deliver optimal growth and financial sustainability. This is seen across developing strategic partnerships and optimising operations.

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Action Plans: Driver 4 – Risk The following action steps and consideration points serve as a guide to help your TAC grow into the “Basic” stage for this driver.

STAGE 1: BASIC

4.1.1

Clearly define the roles and responsibilities of the Executive Committee (Exco)/ Council/ Board of Directors and the Secretariat in carrying out the governance function Key considerations

4.1.2

4.1.3

4.1.4

►

What are the roles and expectations of the Exco/ Council/ Board of Directors as opposed to the Secretariat ?

►

Are the roles and responsibilities clearly articulated and understood by all?

Evaluate and discuss key risks on a regular basis Key considerations ►

How often are risks assessed in your organisation?

►

Are there regular sessions set up to discuss on such matters?

Develop risk policies and procedures for key risks Key considerations ►

What are the key risks and potential impact to your organisation?

►

Who is involved in risk management and what are their roles and responsibilities?

Develop a reactive approach to comply with the Constitution and external regulations Key considerations ►

What are the governing regulations your organisation has to comply with?

►

How does your organisation keep up to date to changes in the business environment and regulatory landscape?

►

What steps are taken by the organisation in ensuring compliance with the Constitution and governing regulations?

Outcome: Organisation has basic governance structure in place with formalised roles and responsibilities which are clearly articulated and understood by all. Organisation understands and applies basic principles of risk management to mitigate the effects of risk on the organisation.

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Action Plans: Driver 4 – Risk The following action steps and consideration points serve as a guide to help your TAC grow into the “Developing” stage for this driver.

STAGE 2: DEVELOPING

4.2.1

Establish good governance structure for the organisation to mitigate risk and make effective decisions Key considerations

4.2.2

►

Do members in the Exco/ Council/ Board act in collective leadership to provide strategic oversight in ensuring organisation’s strategies reach its intended goals and objectives?

►

Does the Secretariat drive the governance function in ensuring compliance across your organisation?

Develop a structured approach to identify and assess key risks and set risk appetite Key considerations

4.2.3

►

What are the signification risks and risk levels that your organisation is willing to accept in order to achieve its goals and objectives?

►

How can your organisation monitor and quantify the key risks to ensure that they are within acceptable levels?

Develop risk policies and procedures for individual functions across the organisation Key considerations

4.2.4

►

What are the underlying risks in each functional unit across your organisation?

►

Are the functional strategies aligned with the defined risk appetite of your organisation?

Develop an effective compliance strategy for the organisation Key considerations ►

What is the regulatory landscape and requirements of your organisation?

►

How can the organisation move beyond reactive ways to proactive ways in managing compliance risks?

►

Is the compliance strategy aligned with the overall organisation’s goals and objectives?

Outcome: Organisation has in place a good governance structure and effective compliance strategy to manage and mitigate risks and ensure compliance with the Constitution and governing regulations.

81

Action Plans: Driver 4 – Risk The following action steps and consideration points serve as a guide to help your TAC grow into the “Leading” stage for this driver.

STAGE 3: LEADING

4.3.1

4.3.2

4.3.3

4.3.4

Improve and drive strong corporate governance structure Key considerations ►

Do the Board and respective committees have the right skills and experience and encompasses diversity in their composition?

►

Do the members of the Board and respective committees exercise independent judgement and set the risk culture and tone for ethical and responsible decision-making throughout your organisation?

Prioritise risk management across the organisation Key considerations ►

Does your organisation has effective systems in place for risk management and oversight?

►

How does your organisation review its performance and indicators against its strategies and goals?

►

Are there regular communication and trainings on risk management provided to all levels of the organisation?

►

How does your organisation ensure effective, transparent and regular communication with its stakeholders?

Develop robust risk management framework for the organisation Key considerations ►

What are your organisation’s goals and objectives and the environment it operates in? Who are your internal and external stakeholders?

►

What the existing and potential risks and controls your organisation has in place?

►

Does your organisation conduct ongoing review of its risk management strategies to evaluate relevance and effectiveness?

Contribute to the long-term development of the industry regulatory landscape Key considerations

82

►

How is the current industry regulatory landscape like?

►

What is your organisation’s involvement in the industry regulatory landscape?

Outcome: Organisation has in place a strong corporate governance structure and robust risk management framework driven from the top by an independent Executive Committee (Exco)/ Council/ Board.

Action Plans: Driver 5 – People The following action steps and consideration points serve as a guide to help your TAC grow into the “Basic” stage for this driver.

STAGE 1: BASIC

5.1.1

5.1.2

5.1.3

5.1.4

Align leaders with overall organisation strategy Key considerations ►

Are the leaders aligned with the vision, culture and goals of your organisation?

►

Are leaders aware of the roles they play in contributing to the organisation’s goals and key objectives?

Establish HR policies within the organisation Key considerations ►

What types of HR policies are essential to your organisation?

►

Do the HR policies support organisational values and principles?

►

Is there proper documentation of HR policies in your organisation?

Define roles and responsibilities for all job roles in the organisation Key considerations ►

What are the expectations of the job roles and how do they align with the overall goals and key objectives of your organisation?

►

What are the specific tasks or functions to be performed by the job roles?

►

Are the roles and responsibilities clearly articulated to the employees?

Clearly articulate organisation’s purpose, mission and values to drive alignment across the organisation Key considerations

5.1.5

83

►

What communication channels can be leveraged to weave in the purpose, mission and values information?

►

Is communication clear, concise and transparent across your organisation?

Align organisation and HR needs Key considerations ►

What are your organisation's goals and key objectives?

►

Can your organisation’s internal capabilities deliver its goals and key objectives?

Action Plans: Driver 5 – People The following action steps and consideration points serve as a guide to help your TAC grow into the “Basic” stage for this driver.

STAGE 1: BASIC

5.1.6

5.1.7

5.1.8

Encourage innovation and collaboration across the organisation Key considerations ►

Are there open communication channels that facilitate the exchange of ideas and collaboration across your organisation?

►

Is your organisation tolerant of mistakes when trying something new?

How does your organisation embrace failure?

Implement feedback process within the organisation Key considerations ►

What are the different channels of feedback available within your organisation?

►

When and how frequent do the managers provide feedback to employees?

Reward for performance and achievement of outcomes Key considerations ►

What are the organisational and employee needs and drivers?

►

What are the current reward offerings and their effectiveness?

Outcome: All employees are aligned to the organisation’s purpose, mission and values and recognise the role they play in contributing to the organisation’s goals and objectives. There are HR policies in place to ensure compliance with employment legislation and inform employees of their roles and expectations. The organisation encourages innovation, collaboration and feedback where employees are rewarded for performance and achievement of outcomes.

84

Action Plans: Driver 5 – People The following action steps and consideration points serve as a guide to help your TAC grow into the “Developing” stage for this driver.

STAGE 2: DEVELOPING

5.2.1

Motivate and inspire employees to achieve organisation’s goals and objectives Key considerations

5.2.2

5.2.3

5.2.4

5.2.5

5.2.6

85

►

What motivated the employees?

►

Is there a recognition system to celebrate the achievement of goals?

Conduct regular review and updates to HR policies Key considerations ►

Are HR policies up to date with the local statutory requirements?

►

How often are HR policies reviewed and updated in your organisation?

Assess internal capabilities to identify gaps Key considerations ►

Are there any skill gaps within your organisation?

►

Can these gaps be bridged through outsourcing?

Promote behaviours that represent the desired organisation culture Key considerations ►

Is recognition or appreciation given to employees who demonstrate the desired behaviours?

►

Do the leaders embody such behaviours for employees to model?

Implement strategic HR planning Key considerations ►

What is the current HR capacity of your organisation?

►

What are the resources needed to meet the organisation’s goals and future needs?

Promote workplace diversity and inclusiveness Key considerations ►

Does your organisation embrace diversity?

►

Are different perspectives valued and encouraged?

Action Plans: Driver 5 – People The following action steps and consideration points serve as a guide to help your TAC grow into the “Developing” stage for this driver.

STAGE 2: DEVELOPING

5.2.7

Establish an effective performance management framework or system Key considerations ►

Is performance management aligned with your overall organisation strategy and culture?

►

Are employees involved in the goal setting process? Are the individual goals aligned with departmental goals and organisational goals?

►

Is there a culture of open communication across your organisation? Is communication open, objective and transparent?

►

Is there a continuous feedback and performance review process that happens throughout the year?

►

Are there rewards and recognition for good performance and achievement of key objectives? Are they fair and equitable?

►

Is training and development provided to employees for continuous improvement?

Outcome: Organisation views HR as a strategic business partner instead of a provider of administrative functions. There is an effective performance management framework or system in place, aligned with the overall organisation strategy and culture. Additionally, the organisation encourages a culture of innovation, diversity and inclusiveness.

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Action Plans: Driver 5 – People The following action steps and consideration points serve as a guide to help your TAC grow into the “Leading” stage for this driver.

STAGE 3: LEADING

5.3.1

Develop an effective leadership team who are passionate, inspiring, lead by example and perceived as people-leaders instead of operational managers Key considerations

5.3.2

5.3.3

►

Do the leaders in your organisation share the organisation’s vision, mission and values?

►

Are leaders in your organisation empowered to make decisions?

►

Are there leadership development opportunities and coaching provided?

►

Is there succession planning in place to identify and develop future leaders of your organisation?

Align HR policies with local requirements and best practices Key considerations ►

What are the best-in-industry HR policies and practices?

►

How does your organisation’s HR policies and practices fare against the global trends and best practices?

Develop a People Plan that drives diversity, agility, collaboration and technology adoption across the organisation Key considerations

5.3.4

►

What are your organisation’s key priorities?

►

What capabilities are needed to implement the plan?

Create a strong employer brand and culture that attracts and retains top talent Key considerations

87

►

Is your organisation’s culture aligned with the people’s values?

►

Is there an environment of trust and transparency within your organisation?

►

Are employees invited to contribute to the culture through collaboration and innovation?

►

What is your organisation’s employee value proposition? How does it differentiate your organisation from the rest?

Action Plans: Driver 5 – People The following action steps and consideration points serve as a guide to help your TAC grow into the “Leading” stage for this driver.

STAGE 3: LEADING

5.3.5

5.3.6

5.3.7

5.3.8

Build a culture of innovation Key considerations ►

Are employees given time to explore novel concepts and ideas?

►

Are employees provided with the necessary knowledge, skills and tools to enable them to innovate?

►

Are innovative behaviours recognised and rewarded in your organisation?

Build a culture of continuous feedback Key considerations ►

What are the channels and tools provided to communicate continuous feedback?

►

Are employees educated on the purpose and significance of continuous feedback?

►

Do employees understand the functioning of the feedback system and what they can achieve out of it?

Leverage technology and analytics to improve HR practices Key considerations ►

What are the organisation needs and goals?

►

How does the HR technology and analytics support your organisation’s talent and overall strategy and unique workforce needs?

►

Does it meet both current and future requirements?

Enhance performance reward system to motivate and retain high performers and teams Key considerations

88

►

Do employees understand the connection between their reward and performance?

►

Are desired behaviours rewarded on top of the achievement of outcomes?

►

Are there team-based incentives to reward for teamwork and cooperation?

►

Does your organisation offer a mix of rewards from financial to nonmonetary rewards and recognition?

►

How often are rewards refreshed in your organisation?

Action Plans: Driver 5 – People The following action steps and consideration points serve as a guide to help your TAC grow into the “Leading” stage for this driver.

STAGE 3: LEADING Outcome: Organisation is seen as the employer of choice. People agenda is embedded across the organisation, where leaders are seen as peopleleaders instead of operational managers. Technology and analytics are leveraged across different HR processes to drive productivity and efficiency.

The organisation also has a robust performance management system in place coupled with a total rewards strategy for the employees.

89

Action Plans: Driver 6 – Technology The following action steps and consideration points serve as a guide to help your TAC grow into the “Basic” stage for this driver.

STAGE 1: BASIC

6.1.1

6.1.2

6.1.3

6.1.4

6.1.5

90

Define the organisation’s digital vision Key considerations ►

What is “digital” and what does it mean to you and the organisation?

►

What is the direction your organisation wants to head to? How can digital technology help to bring the organisation there?

Develop digital strategy Key considerations ►

What is the problem statement and how can digital technology help solve the problem?

►

Is the digital strategy aligned with the overall organisation strategy and priorities?

Develop data strategy Key considerations ►

What are your organisation's goals and the data needed to help achieve the goals?

►

What will be the data sources? How will the data be collected?

►

How is your organisation currently collecting and utilising data?

Adopt a ‘bottom-up’ approach towards security and privacy issues Key considerations ►

What is your organisation’s approach towards security and privacy issues?

►

Is security and privacy a key part of your organisation strategy?

Ensure security efforts complies with regulatory requirements Key considerations ►

What are the regulations relevant to your organisation and the industry?

►

What are the existing security efforts taken by your organisation? Are they compliant to the relevant regulations?

►

How are security issues identified and addressed?

Action Plans: Driver 6 – Technology The following action steps and consideration points serve as a guide to help your TAC grow into the “Basic” stage for this driver.

STAGE 1: BASIC

6.1.6

Develop procedures for limiting the impact of a security breach Key considerations ►

What are the common types of security breaches relevant to your organisation?

►

What are the types of security controls available to minimise to impact such breaches?

Outcome: Organisation has a digital and data strategy in place, and adopts a ‘bottom-up’ approach towards security and privacy issues.

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Action Plans: Driver 6 – Technology The following action steps and consideration points serve as a guide to help your TAC grow into the “Developing” stage for this driver.

STAGE 2: DEVELOPING

6.2.1

6.2.2

Assess organisation’s current digital state and capabilities Key considerations ►

What is the current digital landscape within the industry?

►

What are your organisation’s digital capabilities and how do they fair against the other organisations?

Leverage key digital technologies to value add to the existing operating model Key considerations

6.2.3

6.2.4

►

What are the viable digital technologies in the current market?

►

Can the digital technologies be integrated into the existing systems?

►

What are the costs involved in implementing the digital technology?

Implement data tools and techniques to drive data accuracy and insights Key considerations ►

What types of insights does your organisation want to generate from the implementation of the data tool and technique?

►

What are the costs involved in implementing the data tool and technique?

Develop data management processes Key considerations ►

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Is there a process or framework to collect, prepare, manage and store the data?

Action Plans: Driver 6 – Technology The following action steps and consideration points serve as a guide to help your TAC grow into the “Developing” stage for this driver.

STAGE 3: DEVELOPING

6.2.5

Develop a sound security architecture for the organisation Key considerations ►

What security controls do your organisation currently have in place?

►

How often is the IT security ecosystem reviewed?

►

What are the security threats and vulnerabilities and their impact to your organisation?

►

Is there regular reporting of IT issues to stakeholders in your organisation?

►

Who are the suitable security vendors and partners?

►

Does the security architecture investment and operational efforts align with the organisation's goals and objectives?

Outcome: Digital technologies are embedded throughout the organisation’s operating model. Data is used to generate insights and identify growth opportunities for the organisation and their members. The organisation has a sound security architecture in place against most security threats and breaches.

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Action Plans: Driver 6 – Technology The following action steps and consideration points serve as a guide to help your TAC grow into the “Leading” stage for this driver.

STAGE 3: LEADING

6.3.1

6.3.2

6.3.3

Build a culture of digital innovation and continuous improvement Key considerations ►

How open is your organisation to change?

►

Is technology experimentation encouraged? Are employees empowered to act?

►

Does your organisation cultivate a growth mindset?

Adopt and deploy new technologies in an agile way Key considerations ►

How often does your organisation review existing technologies to see if they need to be upgraded or replaced?

►

How often does your organisation consult external vendors and partners for technological advice?

Create opportunities for employees to be exposed to new and emerging technologies Key considerations

6.3.4

►

Is there training and/or resources provided to employees on new and emerging technologies?

►

How does your organisation facilitate continuous learning?

Establish digital organisation that utilises technology to enhance product/service offerings, stakeholder interactions and operational efficiency Key considerations

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►

What are the needs and interests of the stakeholders?

►

How will the digital technology enhance the stakeholder or user experience?

Action Plans: Driver 6 – Technology The following action steps and consideration points serve as a guide to help your TAC grow into the “Leading” stage for this driver.

STAGE 3: LEADING

6.3.5

Establish robust data governance and processes to drive data quality, security, privacy and transparency Key considerations

6.3.6

►

How can your organisation ensure data is accurate, complete, and current?

►

What steps are your organisation taking to securely store data?

►

Does your organisation have permission to collect and use data?

►

How does your organisation cultivate an ethical data environment?

Introduce predictive analytics capability to support organisation decisionmaking Key considerations

6.3.7

►

Does your organisation currently use descriptive and prescriptive analytics to support organisation decision-making?

►

What types of insights and information your organisation thinks is important or necessary for future growth?

Adopt a comprehensive and 'active defence' approach to security measures Key considerations ►

Does the leadership team views security as a critical component of the organisation's overall risk management?

►

What are your organisation's most critical digital assets?

►

What are the costs involved in implementing a holistic approach to security measures?

Outcome: Digital innovation is encouraged and seen across the organisation.

New technologies are deployed in an agile way to enhance product/service offerings, stakeholder interactions and operational efficiency. The organisation views security as a critical component of the organisation’s risk management and adopts a comprehensive and 'active defence' approach to security measures.

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Section 6 Global Case Studies

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Driver 1: Member

Sub-driver: Member Experience

Growth Stage: Leading

Case Study 1:

Giving something back? Getting something back?

A British multinational groceries and general merchandise retailer won the loyalty of its customers while encouraging a healthy habit of eating fruits by offering free fruit to children visiting its stores.

What was the challenge?

Faced with low customer loyalty, the company wanted to establish a deeper connect with its customers, particularly parents.

How was it resolved?

The company launched the “Free Fruit for Kids” initiative by placing a fruit basket at the entrance in over 800 stores, from which children can pick any fruit of their choice, free of charge.

 The initiative has proved popular with children and parents, with 50 million pieces of fruit consumed since its launch in July 2016.  New research by has highlighted the positive effect of the initiative, with a third of participating parents saying their children have eaten more fruit thanks to the scheme.

What was the outcome? 

Improved customer loyalty – 90% of parents feel more positive toward the company and 75% feel the initiative made their shopping trip easier



Steady growth in customer recommendation – this initiative, along with other programs, has helped steadily raise the company’s Net Promoter Score (NPS) from 2 points in 2016, to 7 points in 2017, and 12 points in 2018.

Sources: EY internal research, ESM Magazine, Company website, The Guardian Covered in “Leading” as it aligns with “Quality of experience is customised and consistent across all channels and touchpoints”.

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Sub-driver: Marketing

Driver 1: Member

Growth Stage: Leading

Case Study 2:

How do you connect with the most connected generation?

A European Car company allowed its customers to get a new car by way of YouTube views of test-drive videos.

What was the challenge?

The European Car company was keen to build a new image that aligned more with the younger generation and new technologies.

How was it resolved?

The company launched a campaign that invited potential customers to upload a creative video of the test-driven experience.

It offered customers the opportunity to get a new car by securing a certain number of video views on YouTube, as per the table below: Car Name

YouTube views

Car A

589,900

Car B

739,600

Car C

922,800

One of the customers, was able to win a new car with just YouTube views alone.

What was the outcome? 

The move was dubbed as “a world first”. The winning video alone garnered 20 million views that compensated for the price of the car 20 times over.



The campaign readily connected with the younger generation and brought in much needed vibrancy to the brand.

Sources: EY internal research, Adweek, Company website, The Stable Covered in “Leading” as it aligns with “The organisation is focused on developing deeper, long-term and continuous member relationships; Increasingly innovative and responsive digital marketing is integrated with traditional methods”.

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Driver 2: Finance

Sub-driver: Finance Processes and Control

Growth Stage: Developing

Case Study 3:

Should you change policies or the way they are followed?

A Software Company incentivised employees to use the travel budgets wisely.

What was the challenge?

Employees often end up exhausting their entire business travel budgets, simply because it is allotted to them. The company wanted its employees to spend rationally during their business travels How was it resolved?

The company set up an incentive-based expense process, which gives employees the option to travel below the budge and accumulate the savings as travel points.

The process is as shown below: 

Internal travel portal uses real-time market information on destination city and allocates a travel budget.



Employees can choose to travel below this budget by opting for:

5-star hotel accommodation

Inexpensive hotels or shared accommodation Advanced booking

Instead of

Connecting flights

Just-in-time booking Direct flights

What was the outcome? 

31% average savings against the budge



48% and 12% reduction in average hotel and flight spend respectively



45% increase in early flight bookings

Sources: EY internal research, Inc.com, Forbes Covered in “Developing” as it aligns with “The organisation has robust financial controls, which are predominantly preventative”.

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Sub-driver: Finance Processes and Control

Driver 2: Finance

Growth Stage: Developing

Case Study 4:

If you look at your company the way an activist does, what would you change?

A FMCG company put on the hat of an activist shareholder to retain control of its long-term vision.

What was the challenge?

The FMCG company wanted to guard itself from activist shareholders that are increasingly demanding board seats and steering companies away from their longterm vision. Such activism is increasingly becoming a threat for small as well as large companies.

How was it resolved?

The company realised that the best approach to tackle potential threats from activist investors would be to mimic their style and proactively create a better balance of the short and long-term priorities.

Common activist demands

How the company role-played activist investors and undertook pre-emptive initiatives

Divest non-core

Divested its ‘Spreads’ business (valued at US$7.4b)

Improve dividends

Decided to increase dividends by 12%

Initiate buybacks

Brought back shares worth US$5.3b

Merge for synergies

“Foods” and “Refreshments” segments to be merged

Improve margins

Margins to match industry leader – 20% in 3 years

Rationalise costs

Deployed zero-based budgeting – a favourite tool of activist investors – to cut US$6.4b in costs in 2 years

What was the outcome?

The pre-emptive measures have helped improve the stock price, led to savings and have created a barrier to activist entry into the board.

Sources: EY internal research, New York Times, Marketing Week, Motley Fool Covered in “Developing” as it aligns with “The organisation understands stakeholder needs and is increasingly transparent in its communications. There are clearly defined roles and responsibilities to manage key stakeholders”.

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Driver 3: Strategy Planning & Operations

Sub-driver: Operational Excellence and Continuous Improvement

Growth Stage: Leading

Case Study 5:

Are you looking for expertise in the right places?

A British Pharmaceutical company sought help from a Formula 1 racing team to improve operational efficiency.

What was the challenge?

Toothpaste production lines at the company were struggling to cope with varying customer preferences such as stand-up tubes, flavors and sizes. This implied wastage of time in resetting the production lines to meet the specifications.

How was it resolved?

The company partnered with a Formula 1 racing company to transform its production efficiency.

The Formula 1 racing company conducted a video analysis and scrutinised worker movements and process flows to optimise time. It leveraged its experience of changing tires at a lightning speed of 2 – 3 seconds during a Formula 1 race to: ► ► ►

Create a detailed preparation and debriefing schedule to improve coordination Redefine each team member’s responsibilities and movements on the factory floor Rearrange the tool layout

What was the outcome? 

70% reduction in switching time – from 49 minutes to 15 minutes



Additional production capacity freed up to produce 7 million tubes

Sources: EY internal research, FT, Telegraph, Bloomberg Covered in “Leading” as it aligns with “Operations are fully integrated within the organisation; Structure is an optimal combination of outsourcing, in-house capability and collaboration with external parties for cost-effectiveness, productivity and efficiency measures”

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Sub-driver: Risk Management

Driver 4: Risk

Growth Stage: Leading

Case Study 6:

How can digitalisation of established processes save lives?

A Hospital used interactive checklists to reduce human errors.

What was the challenge?

As employees get used to their daily tasks, they tend to ignore critical checklists that must be followed, often resulting in hazards.

How was it resolved?

Inspired by the aviation industry, the hospital developed evidence-based checklists and digitally mapped them on a tablet that automatically generated alerts to ensure zero noncompliance.

Harms Monitor Output

Input 1.

Mandatory procedures

1.

2.

Vital indicators from equipment connected to the patients (e.g. heart beat)

Visually depicts procedures undertaken and those pending

2.

Timely alerts deviations from required actions

3.

Avoids coordination failure by simultaneously informing all stakeholders

3.

Signals from sensors attached to patient’s bed

4.

Medicines given to the patient

5.

Progress updates from doctors and nurses

What was the outcome? 

Drastic reduction in avoidable deaths



Reduction of millions in annual costs incurred on fatality-related compensation and litigation

Sources: EY internal research, Company website, Fox News Covered in “Leading” as it aligns with “Key organisation risks are aligned to key performance indicators (KPIs) and managed to ensure organisation objectives are met; Risk is embedded in the operational culture of the organisation; The organisation proactively communicates its risk management programme to the relevant stakeholders”.

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Driver 5: People

Sub-driver: Capability

Growth Stage: Leading

Case Study 7:

What will be more important in the future, right skillset or mindset?

FMCG Company leveraged smart assessment tools to evaluate candidates’ behavioural traits What was the challenge?

A Fast Moving Consumer Goods Company wanted to assess the intangible behavioral traits of job applicants that are rarely mentioned in a candidate’s resume but are often more important than other qualifications in performing a job.

How was it resolved?

A Fast Moving Consumer Goods Company deployed 12+ artificial-intelligencepowered games based on neuroscience. These games help assess a candidate’s cognitive, emotional and social traits such as attention, risk appetite, emotional intelligence, memory, approach to effort – hard worker vs. smart worker and so on.

For example, in one of the games, the candidate is asked to read a context and observe a face every 30 seconds to identify the emotion showcased. The objective is to assess emotional intelligence. It tests the ability of the candidate to correctly identify the emotion of a stakeholder (employee, manager, client, etc..) by not just reading the face but also by being aware of the situation.

Job candidates are invited for an interview only after they play these games and reveal alignment to the job profile. This approach has already been used to assess more than 250,000 candidates for 800 job openings.

What was the outcome? 

Reduced recruitment time by 75% - from 4 months to 2 weeks



Attracted double the job applications – from 15,000 to 30,000 year-on-year in 3 months



Increased university diversity in applicant pool by threefold – from 840 to 2,600

Sources: EY internal research, Business Insider Covered in “Leading” as it aligns with “The People Plan plays a fundamental role in strategy and organisation performance by focusing on an agile workforce, diversity and technology enablement; Diversity, agility and teamwork are embedded in the culture of the organisation and essential to achieving organisation goals”.

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Driver 5: People

Sub-driver: Performance Management and Rewards

Growth Stage: Leading

Case Study 8:

How can employees feel as invested in long-term success as owners?

An Exploration & Production Company invested significantly to make sure they did.

What was the challenge?

An Exploration & Production Company wanted its employees to take ownership of its ambitious growth targets.

How was it resolved?

Accordingly, the Exploration & Production Company promised each employee a heavy bonus on achievement of its five-year targets. It announced 2 bonus plans between 2006 and 2015.

First Plan

Second Plan

“Double Drive” (2006 – 2010)

“Dream 2015” (2011 – 2015)

US$50,000 new car voucher or US$35,000 cash disbursed to 700 employees in 2011

US$100,000 in cash given to each of its 1,381 employees in Dec 2015

~ Approx.

US$150m bonus disbursed

What was the outcome? 

Oil and gas production grew 4 times to 160,000 barrels of oil equivalents per day during 2006 – 2015



Valuation quadrupled during 2006 – 2015

Sources: EY internal research, Company Website, Forbes Covered in “Establishing” as it aligns with “There is visible evidence of links between high performance, rewards and the achievement of organisation objectives”.

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Driver 5: People

Sub-driver: Leadership

Growth Stage: Leading

Case Study 9:

Can you be a better leader by managing less?

An American Airline’s leaders empowered employees to ensure customer satisfaction What was the challenge?

Leadership wanted to avoid some of the pitfalls of growth such as: 1.

Loss of entrepreneurial spirit

2.

Slow decision making

3.

Bureaucratic mindset at the cost of performance

How was it resolved?

The American Airline’s Leadership ensured that rules and hierarchy did not come in the way of customer delight and employees were duly empowered.

1. Employee first, customer second: Inverted pyramid makes employees the top priority 2. Empowered front-line and group staff: They are considered experts and their inputs are used during business planning and budgeting exercises. Employee decisions are completely backed up.

3. Hire people who voice their opinion: The Airline is very particular to recruit staff that dares to go beyond the rules to accomplish objectives.

What was the outcome? 

The Airline has been consistently ranked among top 2 airlines in the US for customer satisfaction for over 2 decades.



Ownership attitude in employees leads to quick issue resolution at the Airline.

Sources: EY internal research, Forbes, “Nuts!” by Kevin Freiberg and Jackie Freiberg Covered in “Leading” as it aligns with “The leaders are passionate and inspiring, lead by execution and perceive themselves as people-leaders and not operational managers”.

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Driver 6: Technology

Sub-driver: Digital Organisation

Growth Stage: Leading

Case Study 10:

How can digital help you do more for less?

An American multinational retail corporation deployed drones to make the product cataloging process at its warehouse more efficient.

What was the challenge?

Warehouse employees at the American multinational retail corporation perform a routine and time-consuming task of scanning each product across dozens of aisles and upon high shelves. The company was looking for an efficient cataloging process How was it resolved?

The company deployed drones at 2 warehouse to fast-track inventory management.

The custom-built, remote-controlled drone is: Flexible: Easily reaches the products placed on high shelves Fast: Scans products at a rate 30 items per second to catalog them Responsive: Generates alerts for low stocks or incorrect placement

What was the outcome? 

97% reduction in time taken to check inventory at the warehouse



When fully deployed, the cost savings will help bring down the prices for customers

Sources: EY internal research, Bloomberg, Reuters, Fox Covered in “Leading” as it aligns with “Emerging technologies are embraced and adopted rapidly; Experimentation is encouraged and failure is acceptable; Technology investment is proactive and agile to meet the strategic objectives of being a digital organisation”.

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Sub-driver: Data and Analytics

Driver 6: Technology

Growth Stage: Leading

Case Study 11:

Will machines help workers do less or be more?

An American Bank used machine learning to efficiently process loan contracts.

What was the challenge?

An American Bank’s legal team spent thousands of hours to manually review new loan contracts each year, making the process tedious and prone to human error.

How was it resolved?

The bank developed a tool called “Contract Intelligence” to rapidly analyse commercial loan contracts. The technology leveraged machine learning and a proprietary cloud platform to change the scope of human involvement.

Absorb rules and information from previous loan contacts Repetitive tasks moved to machine

Human Intervention

Understand what qualifies as a good contract/clause Flag gaps by comparing new contracts to an ideal contract

Bank advisor finally reviews contracts for flagged items

What was the outcome? 

Eliminated 360,000 hours of effort



Enabled the bank to compete with nimble FinTech companies

Sources: EY internal research, Bloomberg Covered in “Leading” as it aligns with “The organisation has data, governance and processes in place, with the appropriate systems to support data and quality management”.

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Driver 6: Technology

Sub-driver: Security and Privacy

Growth Stage: Leading

Case Study 12:

Could your enemy be your greatest ally?

An American electric vehicle and clean energy company hired hackers to improve data security.

What was the challenge?

Hacker community in the US recently hacked cars running on the roads and brought them to a halt. As a ground-breaking manufacturer of electric vehicles, the company was determined to ensure that its customers were insulated from cyber attacks.

How was it resolved?

The company proactively introduced a vehicle security program in June 2015, offering rewards worth US$10,000 for early detection of vulnerabilities.

The program officially invites hackers to find potential security breaches in return for monetary rewards.

Once a breach is identified, uniquely engineered cars receive security fixes wirelessly.

This does away with the need to recall cars to workshops or mail pen drives with updated software to each customer.

What was the outcome? 

Avoided expensive recalls and bad publicity



Enhanced customer confidence and trust in the product

Sources: EY internal research, Forbes, Ars Technica Covered in “Leading” as it aligns with “Security efforts follow an ‘active defence’ approach with proactive identification of issues driven from inside the organisation; Security and privacy strategies are driven by protection of the most critical digital assets and support of organisation growth drivers”.

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For further information on the TAC Growth Model, please contact:

Singapore Chinese Chamber of Commerce & Industry 9 Jurong Town Hall Road, #04-01 Trade Association Hub, Jurong Town Hall Singapore 609431 (+65) 6337 8381 corporate@sccci.org.sg