Slide1: Society of International Travel Executives ASIA-PACIFIC UNIVERSITY Mick Yates, Singapore, October 1999


Agenda: Asia Pacific economic status Asian social changes What motivates people? Thoughts for the travel industry Leadership challenge Agenda


AP GDP outlook: Source: Asia Development Bank, September 1999 AP GDP outlook


AP consumer price inflation: Source: Company estimates, September 1999 AP consumer price inflation


AP stock markets vs. year ago: Source: Asiaweek, September 17 1999 AP stock markets vs. year ago


AP currency vs. US$ vs.year ago: Source: Asiaweek, September 17th 1999 AP currency vs. US$ vs.year ago


Some things will never change ….: Some things will never change …. “Sarah Chan, a thirty-something insurance consultant, looks over a large white-and-beige $950 handbag at the Louis Vuitton store in Hong Kong's Central District, examines its ridges, considers the color and texture and then decides to buy it …” Source: Los Angeles Times, September 7th 1999


…but some things will!: …but some things will! Fewer gut-only judgments … “Connections” are not enough … The Company is not all there is … No more “free money”… Asia can’t assume beating the world … Efficiency and data based decisions count Professionalism & transparency Individual mobility matters more and more Lower debt + continuous restructuring Asia is Globally interdependent


Agenda: Asia Pacific economic status 6 Asian social changes What motivates people? Thoughts for the travel industry Leadership challenge Agenda


1st Change: Global/Local balance: 1990’s & 2000 Transnational Global & Local mix Interest group Individual skills 1950’s & 60’s Local business Traditional values Geography Worker = asset 1st Change: Global/Local balance 1970’s & 80’s Multinational “Cherry picking” Nations Teamwork


Incentives in plain English …: Incentives in plain English … Incentive programs must balance the needs of the Local Company and its employees, with the Regional or Global needs


2nd Change: Women’s role?: 2000’s Feminine skills are positive Aware of own potential Value & values focused 1980’s Female jobs only Family oriented Traditional role 1990’s Similar jobs to men Aware of own needs Wealth & success “ASEAN woman” - Ammirati Puris Lintas, Summer 1998 2nd Change: Women’s role?


Incentives in plain English …: Incentives in plain English … Incentive programs must provide equal opportunities for diverse employee groups .. especially women


3rd Change: Kids take over?: The ‘net: The kids are getting wired, into communities of interest … Schooling: Kids want to compete and to be mobile … language, skills & attitudes Values: Asian Values … Western values … or just TEEN values? Culture: New Generasians - Cartoon Network & A.C.Nielsen1998 3rd Change: Kids take over? Culture: “Back Street Boys” are favorites in 6 out of 12 Asia Pacific Countries …


Incentives in plain English …: Incentives in plain English … Incentive programs can’t turn us all into kids, but they can “push the boundaries” of our knowledge and experience


4th Change: Blur?: Supplier Brand Technology Science Business life Country Intellectual Q Buyer Service Idea Art & design Private life Interest group Emotional Q Brand, service, emotion? 4th Change: Blur?


Incentives in plain English …: Incentives in plain English … The best incentive programs must offer a holistic experience of work, learning, relaxation, emotional fulfillment and adventure


5th Change: Knowledge is key?: RE-ENGINEERING OBJECTIVES ENTERPRISE INTEGRATION Standard Processes E-Commerce Net Meeting DATA STANDARDS INTRANET SAP Extranet E-Room Desktop Video Virtual Office Knowledge Networking Internet Patents Customer data DATA ¯ ¯ INFORMATION ¯ ¯ KNOWLEDGE 5th Change: Knowledge is key?


Incentives in plain English …: Incentives in plain English … Incentive programs must have not only traditional, material value but also knowledge and “connectivity” value


6th Change: Individual needs?: 6th Change: Individual needs? Change: People will embrace “chaos” and “complexity” as the key to innovation “the Silicon Valley syndrome”? Rewards: Learning, recognition, and “fun” will be increasingly valuable yet … Family life: Balancing work and family needs will become even more important Portable skills: Lifetime employment will recede


Incentives in plain English …: Incentives in plain English … Incentive programs must build skills and provide both job & life enhancing experiences


Agenda: Asia Pacific economic status 6 Asian social changes What motivates people? Thoughts for the travel industry Leadership challenge Agenda


1. “Hygiene” model of motivation …: Achievement Recognition The work itself Responsibility Advancement Personal growth Frederick Herzberg, Work and the Nature of Man, 1966 Hygiene factors are those whose absence can create job dissatisfaction: Supervision Company policy Working conditions Salary Peer relationship Security Motivator factors which increase job satisfaction: 1. “Hygiene” model of motivation …


Incentives in plain English …: Incentives in plain English … Money and material things are fine, but they only motivate if they are not there!


2. Maslow’s hierarchy of needs …: 2. Maslow’s hierarchy of needs …


Incentives in plain English …: Incentives in plain English … People want and need to reach their highest potential!


3. Theory X & Theory Y …: Theory X assumptions: People .. dislike work must be coerced/controlled to achieve goals prefer to be directed Douglas McGregor, The Human Side of Enterprise, 1960 Theory Y assumptions: People .. view work as being as natural as play and rest are self-directed to goals they are committed to accept and seek responsibility 3. Theory X & Theory Y …


Incentives in plain English …: Incentives in plain English … People can take more responsibility for their work and their results than we sometimes think!


4. The “3 needs” model of motivation: 3. Need for Affiliation Need acceptance and friendship Are cooperative 2. Need For Power Win Influence Want a competitive edge 1. Need for Achievement Take personal responsibility Want feedback Handle risk David McClelland, The Achieving Society, 1961 4. The “3 needs” model of motivation


Incentives in plain English …: Incentives in plain English … People need to be offered a balance of winning, being seen to be winning, and just being seen!


5. The Equity model of motivation: An employee compares their job situation with that of other employees If the employee perceives inequity, they will act to correct the inequity: Lower productivity Lower quality Absenteeism Resignation J. Stacey Adams, 1965 5. The Equity model of motivation


Incentives in plain English …: Incentives in plain English … People need to be treated fairly!


Dalai Lama: “Now sometimes people confuse happiness with pleasure … … the highest happiness is when one reaches the stage of Liberation … … so, the first step in seeking happiness is learning” Dalai Lama “Now sometimes people confuse happiness with pleasure … … the highest happiness is when one reaches the stage of Liberation … … so, the first step in seeking happiness is learning” The Art of Happiness, 1998


Agenda: Asia Pacific economic status 6 Asian social changes What motivates people? Thoughts for the travel industry Leadership challenge Agenda


Post-crisis incentives lessons: It is about data driven activities It is about quality of programs It is about individual development incentives It is about the details of your business Post-crisis incentives lessons It is no longer “party time” It is no longer “size” that counts It is no longer the “Boss” that is the key It is no longer just about the “big picture” Know your Customer!


Some data for you to use …: Some data for you to use … SITE Australian survey, April 1999 Internal company survey, August 1999


Know your competition …: Source: SITE Australian survey, April 1999 Know your competition …


Know your customer …: Source: SITE Australian survey, April 1999 Know your customer …


Know your customer’s problems …: Source: SITE Australian survey, April 1999 Know your customer’s problems …


Know your customer’s objectives …: Source: SITE Australian survey, April 1999 Know your customer’s objectives …


Know what turns your customer on!: Source: Company survey, August 1999 Know what turns your customer on!


Incentives - pros & cons: Incentives - pros & cons


Incentives - pros & cons: Incentives - pros & cons


Incentives work best when …: Incentives work best when … Clear but stretch Goals are used sparingly, when “basics are under control” Effective Teamwork is needed mutual recognition of success Personal growth is achieved Radical change is needed The rules are simple & winnable & Measure The Results! Prizes have both real & trophy value


Agenda: Asia Pacific economic status 6 Asian social changes What motivates people? Thoughts for the travel industry Leadership challenge Agenda


Change, growth & Leadership - some questions: Change, growth & Leadership - some questions How much Change are you facing? How good is your strategy to take advantage of these changes How ready is your organization to execute this new strategy? Do you have enough Leaders at all levels to get the job done? Do these Leaders have all the skills they need?


How much change are you facing?: How much change are you facing? Adapted from Igor Ansoff gap analysis tools 1. Gap assessment: Marketplace change Quite a lot A lot Total chaos! A little None


How good is your business strategy to take advantage of this?: How good is your business strategy to take advantage of this? 2. Gap assessment: Competitive strategy Quite competitive Aggressive Way ahead of the market! Not good enough Totally Inadequate


How ready is your organization to execute this new strategy ?: How ready is your organization to execute this new strategy ? 3. Gap assessment: Organization readiness Well adapted Very well adapted Way ahead of the market! Not good enough Totally Inadequate


Do you have enough Leaders at all levels to get the job done?: Do you have enough Leaders at all levels to get the job done? Some .. need more Enough More than we need 4. Gap assessment: Leader bench strength Not very many None, really


Do these Leaders have all the skills they need?: Do these Leaders have all the skills they need? OK Strong Wow!! 5. Gap assessment: Leadership Skills Some No


Junior Leadership on the Battlefield: “Never underestimate the enemy. Respect him, but equally always remember, regardless of the odds, team to team, yours is better. If there is any doubt in your mind in regard to this previous sentence you had better start training harder, or hand over your command” Australian Army Leadership Manual, 1994 Junior Leadership on the Battlefield