【正文】 feedback ? Performance criteria vary against business objectives, predetermined target against skill set ? Link pay to performance Compensation/incentive ? Incentive pensation models differ along who is eligible basis of reward。CHINA MOBILE (HK) LIMITED Human Resource Strategy Shanghai February 15, 200X THE BOSTON CONSULTING GROUP 1 CONTENT Hypotheses on China mobile phone market BCG’s approach to HR strategy Project approach and structure BCG qualification and experience Appendix ? Selected CVs 2 THE EVOLUTION OF THE MOBILE MARKET WILL CREATE MAJOR STRAINS ON HUMAN RESOURCES Historically, the growth challenge has been simple ? Serve pentup demand with one basic product ? “Build the work, activate subscribers, collect the payments” Increasing petition and new technologies mean dramatic challenges ? Tremendous emphasis on marketing and sales Intense warfare requiring strategy and tactics ? Increasing importance of customer relationship management and service ? The need to develop partnerships and create new businesses ? Increasing pressure on technical abilitiesbroader definition of technology ? Increasing pressure on overall cost position and productivity ? Need for merciallydriven senior management, working as a team These strains create a need for a fundamental rethink of HR strategy 3 WITHOUT BUSINESSDRIVEN INPUT, AN HR STRATEGY DEVELOPMENT EXERCISE WILL FAIL The strategic changes in the mobile market bring revolutionary change, not evolutionary change One dominant factor is that these changes will require the rapid creation of entire new job families, and rapid change in the requirements of existing job families As a result, the overall people mix of the pany will be dramatically different in the future than it is today. The mix will also be quite different than either the “typical PRC pany” or the “typical telco.” The required pace of change will also be quite different. An HR strategy that fails to take this into account will also fail. If the HR strategy fails, then the pany will fail. ? Wrong skills to face the future petitive threat ? Wrong overall cost structure ? The best employees leaving to join the petitors ? Major missed opportunities to form new businesses and partnerships A traditional HR consulting firm will not have a clear view on the strategic changes ? Their models will be based upon “typical PRC panies” and “typical global telcos.” Neither will be sufficient, and both will have major flaws. 4 CONTENT Hypotheses on China mobile phone market BCG’s approach to HR strategy Project approach and structure BCG qualification and experience Appendix ? Selected CVs 5 The cellular telephone market in Asia – in particular in China – will continue to show strong growth As a result of this growth, the dynamics of the market will be increasingly strong and will affect the Human Resource strategy of China Mobile BCG has developed an integrated HR Strategy Framework that will link external market factors to the internal requirements of the anization We have subsequently outlined both our HR Strategy Framework as well as some initial analyses on the most relevant external factors – specifically these are: ? WTO ? Competition ? Technology ? Business Migration ? Customer Service CHINA MOBILE’S HUMAN RESOURCE STRATEGY WILL BE AFFECTED BY A POWERFUL SET OF MARKET FACTORS Summary of subsequent Proposal Section 6 Summary 7 STRONG GROWTH IN CELLULAR TELEPHONY IN ASIA ... AsiaPacific Cellular Subscribers, 1990 2023 02040608010012014090 91 92 93 94 95 96 97 98 99 00Cellular Subscribers (M) Annual Growth ~ 75% Annual Growth ~ 40% Note: The AsiaPacific region includes the countries of Northeast Asia, Southeast Asia, South Asia, the islands of the Western Pacific, Australia and New Zealand. Assumes decrease in revenue per subscriber of 5% per annum between 1996 and 2023. Source: International Telemunications Union, Merrill Lynch Revenue (US$B) 3 4 7 11 17 27 51 68 89 118 156 Asia claims 36% of the world’s cellular subscribers by 2023 8 ... AND IN PARTICULAR IN THE GREATER CHINA REGION China Cellular Subscribers, 1991 2023 0102030405060708091 92 93 94 95 96 97 98 99 00Cellular Subscribers (Mn) Annual Growth ~ 170% Annual Growth ~ 86% Source: CCID 75 Cellular Subscribers (Mn) 9 GREATER CHINA WILL REPRESENT AN INCREASINGLY LARGE AN DYNAMIC MARKET IN ASIA Note: Subregional groupings include South Asia (India, Pakistan, Bangladesh, Sri Lanka), Greater China (China, Taiwan, Hong Kong, Macau) and Southeast Asia (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam) Source: International Telemunications Union 0%100%1990 1996 2023FJapan Australia/ New Zealand Southeast Asia Greater China Korea South Asia 37 17 77 Greater China (M) Total ANJ Total AsiaPacific (M) 33 125 Distribution Of AsiaPacific Cellular Subscribers 10 NEW BUSINESS CHALLENGES, WITH MAJOR HR IMPLICATIONS WILL FACE MOBILE PLAYERS IN CHINA Uping business challenge ? Emphasis on marketing and sales and intense warfare requiring strategy and tactics ? Increasing importance of customer relationship management and service ? The need to develop partnerships and create new businesses ? Increasing pressure on technical abilitiesbroader definition of technology ? Increasing pressure on overall cost position and productivity ? Need for merciallydriven senior management, working as a team Human resource implications The creation of new job families with a range of new skills and