Keynote Interview
Australian Friendly Societies Conference
Daydream Island, Australia
June 2007

1. Success factors for NTUC Income

I wish to share my views on the following strategies that contributed to the success of NTUC Income during the past 30 years:

* Engaging the customers
* Primary values that drive our business
* Management style
* Recruit talent
* How to run a world class contact center
* Importance of customer service
* Key strategies

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2. Engaging the customers

Over the past years, NTUC Income has actively communicated with its customers on the following:

* NTUC Income is a cooperative society
* Most of its surplus are distributed among its participating policyholders
* It shareholders receive only 2% of its surplus
* Its primary aim is to serve its policyholders (members) by offering low cost and a better return
* NTUC Income communicate actively and in a transparent manner
* It does not need to maximise profit for shareholders (ie avoid conflict of interest)

This active communication strategy has built up a strong loyalty among its policyholders.

3. Primary values that drive a business

The primary values that drove NTUC Income's business were:

* act in the best interest of the customers
* act honestly, with integrity, and be transparent

We act in the best interest of the customer and offer good value in the form of lower prices or better return on their savings. We achieve it by operating efficiently, reducing cost and cutting down on wastage.  We were able to earn an adequate margin to meet our expenses and to provide a modest profit to shareholders.

We act honestly, with integrity. We offer products that meet the genuine needs of the customer. We keep the product simple, so that they can understand it, and choose it for its value.

These values allowed us to build strong loyalty and trust from our members (customers) and contributed to the growth of our business.

4. Management style

I set values and goals.  I work with my colleagues on the broad strategies to achieve specific goals. I let them choose the specific strategy and take the specific ations to achieve the results.  I let the results decide on whether they have taken the right actions. Often, the actions can be modified, so that the results can be improved.

My style is quite different from the style adopted by many other managers. They want to pre-plan the specific actions in details. They want to exert more control. They want to decide, in advance, what is right or wrong.

My colleagues who worked with me for 5, 10 or more years, generally like my style. I describe it as the "entrepreneurial" approach.

5. Recruit Talent

Many managers talk about the importance of recruiting talented people.  Apparently, talent is different from knowledge and skill.  Someone defined it as:

* intellect
* teamwork
* customer service
* courage

6. 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.

7. Importance of Customer Service

Customer service 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.

8. Key strategies

I wish to summarise the key strategies adopted during my 30 years with NTUC Income:

* 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.

May large and successful businesses have a chief executive that is in touch with the business. They tend to perform much better.