CHINAMOBILE HK LIMITEDHumanResourceStrategyShanghaiFebruary15 200X THEBOSTONCONSULTINGGROUP CONTENT HypothesesonChinamobilephonemarketBCG sapproachtoHRstrategyProjectapproachandstructureBCGqualificationandexperienceAppendixSelectedCVs THEEVOLUTIONOFTHEMOBILEMARKETWILLCREATEMAJORSTRAINSONHUMANRESOURCES Historically thegrowthchallengehasbeensimpleServepent updemandwithonebasicproduct Buildthenetwork activatesubscribers collectthepayments IncreasingcompetitionandnewtechnologiesmeandramaticchallengesTremendousemphasisonmarketingandsalesIntensewarfarerequiringstrategyandtacticsIncreasingimportanceofcustomerrelationshipmanagementandserviceTheneedtodeveloppartnershipsandcreatenewbusinessesIncreasingpressureontechnicalabilities broaderdefinitionoftechnologyIncreasingpressureonoverallcostpositionandproductivityNeedforcommercially drivenseniormanagement workingasateamThesestrainscreateaneedforafundamentalrethinkofHRstrategy WITHOUTBUSINESS DRIVENINPUT ANHRSTRATEGYDEVELOPMENTEXERCISEWILLFAIL Thestrategicchangesinthemobilemarketbringrevolutionarychange notevolutionarychangeOnedominantfactoristhatthesechangeswillrequiretherapidcreationofentirenewjobfamilies andrapidchangeintherequirementsofexistingjobfamiliesAsaresult theoverallpeoplemixofthecompanywillbedramaticallydifferentinthefuturethanitistoday Themixwillalsobequitedifferentthaneitherthe typicalPRCcompany orthe typicaltelco Therequiredpaceofchangewillalsobequitedifferent AnHRstrategythatfailstotakethisintoaccountwillalsofail IftheHRstrategyfails thenthecompanywillfail WrongskillstofacethefuturecompetitivethreatWrongoverallcoststructureThebestemployeesleavingtojointhecompetitorsMajormissedopportunitiestoformnewbusinessesandpartnershipsAtraditionalHRconsultingfirmwillnothaveaclearviewonthestrategicchangesTheirmodelswillbebasedupon typicalPRCcompanies and typicalglobaltelcos Neitherwillbesufficient andbothwillhavemajorflaws CONTENT HypothesesonChinamobilephonemarketBCG sapproachtoHRstrategyProjectapproachandstructureBCGqualificationandexperienceAppendixSelectedCVs ThecellulartelephonemarketinAsia inparticularinChina willcontinuetoshowstronggrowthAsaresultofthisgrowth thedynamicsofthemarketwillbeincreasinglystrongandwillaffecttheHumanResourcestrategyofChinaMobileBCGhasdevelopedanintegratedHRStrategyFrameworkthatwilllinkexternalmarketfactorstotheinternalrequirementsoftheorganizationWehavesubsequentlyoutlinedbothourHRStrategyFrameworkaswellassomeinitialanalysesonthemostrelevantexternalfactors specificallytheseare WTOCompetitionTechnologyBusinessMigrationCustomerService CHINAMOBILE SHUMANRESOURCESTRATEGYWILLBEAFFECTEDBYAPOWERFULSETOFMARKETFACTORSSummaryofsubsequentProposalSection Summary STRONGGROWTHINCELLULARTELEPHONYINASIA Asia PacificCellularSubscribers 1990 2000 CellularSubscribers M AnnualGrowth 75 AnnualGrowth 40 Note TheAsia PacificregionincludesthecountriesofNortheastAsia SoutheastAsia SouthAsia theislandsoftheWesternPacific AustraliaandNewZealand Assumesdecreaseinrevenuepersubscriberof5 perannumbetween1996and2000 Source InternationalTelecommunicationsUnion MerrillLynch Revenue US B 3 4 7 11 17 27 51 68 89 118 156 Asiaclaims36 oftheworld scellularsubscribersby2000 ANDINPARTICULARINTHEGREATERCHINAREGIONChinaCellularSubscribers 1991 2000 CellularSubscribers Mn AnnualGrowth 170 AnnualGrowth 86 Source CCID 0 05 0 177 0 638 1 57 3 63 6 85 13 23 24 98 43 8 75 CellularSubscribers Mn GREATERCHINAWILLREPRESENTANINCREASINGLYLARGEANDYNAMICMARKETINASIA Note Sub regionalgroupingsincludeSouthAsia India Pakistan Bangladesh SriLanka GreaterChina China Taiwan HongKong Macau andSoutheastAsia Brunei Cambodia Indonesia Laos Malaysia Myanmar Philippines Singapore Thailand Vietnam Source InternationalTelecommunicationsUnion Japan Australia NewZealand SoutheastAsia GreaterChina Korea SouthAsia 0 2 8 5 37 0 5 17 77 GreaterChina M TotalANJ TotalAsia Pacific M 1 2 33 125 DistributionOfAsia PacificCellularSubscribers NEWBUSINESSCHALLENGES WITHMAJORHRIMPLICATIONSWILLFACEMOBILEPLAYERSINCHINA Upcomingbusinesschallenge EmphasisonmarketingandsalesandintensewarfarerequiringstrategyandtacticsIncreasingimportanceofcustomerrelationshipmanagementandserviceTheneedtodeveloppartnershipsandcreatenewbusinessesIncreasingpressureontechnicalabilities broaderdefinitionoftechnologyIncreasingpressureonoverallcostpositionandproductivityNeedforcommercially drivenseniormanagement workingasateam Humanresourceimplications ThecreationofnewjobfamilieswitharangeofnewskillsandtalentsTheneedforaclearviewofhowmanynewemployeesareneededineachjobfamilyoverwhattimeframeAnunderstandingofwhatitwilltaketoattract train integrateandretaintheseemployeesAnviewoftheneworganizationalstructuresandprocessesthatareneededAviewontheimplicationsfortheexistingworkforce intermsofproductivity changingjobdefinition andretrenchmentAviewofthenewstrategicroleofHR andtherequiredHRcapabilities FIVESPECIFICMARKETFORCESWILLCHALLENGETHEHRSTRATEGYGOINGFORWARD Performancemanagement Requirementdefinition Sourcing placement Employeedevelopment Leadership c