Management in Action - My approach

I wish to share some of the key lessons during my past 30 years as chief executive of NTUC Income. They illustrate my approach towards "management in action".

You can read about them in my blog and personal website:

www.tankinlian.blogspot.com
www.tankinlian.com

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30 years of experience in 3 points

Someone asked me to summarise the key features of my 30 years of experience in  developing the business of NTUC Income.

I like to cover them in 3 key points:

* Business strategy
* Entrepreneurial approach
* Efficient management

I adopt a business strategy that recognises the realities and strengths of NTUC Income. We are a cooperative society that aims to give better value to our policyholders. We act accordingly and communicate this distinctive feature to our policyholders. Over the years, we build a base of loyal customers.

I adopt an entrepreneurial approach. I act promptly and have a nimble behaviour. I learn and adapt from the results. By trying many times, I am able to find a better way. I am also able to learn how to do things better for the future.

I focus on efficient management - how to improve efficiency, reduce wastage, and keep the cost low. I learn how to make the best use of the available resources. I adopt technology to improve efficiency and reduce the cost. I find a way to reduce the cost of technology, and increase the cost savings.

Some top managers are detached from the business. They tend to manage on theory, rather than have a good feel of the business.

If we look at many large businesses, you will find that those businesses with a CEO that is in touch, tend to perform much better.

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How to run a world class call center

I wish to share this secret about how NTUC Income wins the award for being a world class call center:

* it uses low cost, effective technology
* the calls are answered immediately by a human voice (without the need to press buttons)
* it has a low turnover rate of employees
* the front line officers handle simple calls and refer difficult cases (about 5% of calls) to specialists to call back

The cost of the technology is only 10% to 20% of what big organisations spend on their call center systems, without sacrificing on the necessary functionalities.

By using a two level system of handling enquiries, it is easy for the front line officers to handle 95% of the calls (with less training and better service quality). They refer the difficult enquiries and complaints to the specialists. This reduces the stress of the job.

They enjoy providing the customer service.

I was involved in the strategy to build up the call center when I was CEO of NTUC Income.

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Importance of customer service

How important is customer service?

My view: it is very important, especially for a financial institution. It allows the provider to build a long term relationship with the customer.

I observe the following principles in dealing with customers:

* attend to their matter promptly
* be honest, open and transparent (ie HOT)
* look after the customer's interest (helps to build trust).

A good customer is willing to pay a fair price that allows me to meet the expenses and make a fair profit.

I keep my cost low by reducing waste and operating efficiently. This is also appreciated by the customer, as they do not have to pay more for good customer service.

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A new way of marketing

I adopt an unusual approach in marketing. I call it "marketing in stages".

* I send a brief e-mail to the other party. It tells briefly about my idea and why it is exciting.

* A few days later, I send a SMS to announce that I shall be calling at a certain time to talk about a certain topic. This prepares the other party to expect my call.

* I follow up with a telephone call at the indicated time. I can talk about the idea in more detail and get a feel of the other party's thinking

* After the conversation, I follow up with an e-mail that gives more detail, but not too heavy. I ask for a response.

I find this approach to be quite effective. It takes little time (ie I do not need to travel and meet the other party face to face). I can get attention, because my e-mail is light and interesting.

This new method of marketing is possible today, because of e-mail and mobilephone. Try it. And let me know if it works better for you.

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Competition and partnership

Some people think about competition. They compete with other businesses in the same market.

I like to think of these other businesses as partners. We are partners in delivering a service to the market. We give choice to the consumers. Some consumers like a certain provider, while others like another provider. Each provider can serve its own market segment.

There is no need for the providers to compete hard and put the other providers out of business.

Tan Kin Lian
kinlian@gmail.com
www.tankinlian.blogspot.com