Seven Castles

A White Paper (2)- -

                                      

A White Paper on the All-round Development of Shanghai Telecom
July 1, 2004 (First Edition)

Shanghai Telecommunication Co., Ltd.

Contents

Introduction
Chapter 1 Development Direction
I. Development Strategy
Strategic Objectives
Critical Success Factors
Key Action
Chapter 2 Development Motivation
II. Shareholder Interests
Value-seeking
Critical Success Factors
Key Action
III. Customer Values
Value-seeking
Critical Success Factors 
Key Action
IV. Staff Development
Value-seeking
Critical Success Factors
Key Action
Chapter 3 Development Platform
V. Service Quality
Value Conversion
Critical Success Factors
Key Action
VI. Network Orientation
Value Conversion
Critical Success Factors
Key Action
VII. Management Upgrade
Value Conversion
Critical Success Factors
Key Action
Chapter 4 Development Basis
VIII. Competition versus Cooperation
  Value Interaction
  Critical Success Factors
  Key Action
IX. Environment for Survival
Value Interaction
Critical Success Factors
Key Action
X. Social Responsibility
Value Interaction
Critical Success Factors
Key Action
Conclusion

Chapter 2 Development Motivation
II. Shareholder Interests

Shareholder interests mean the sustained return on investment the shareholders expect to obtain basing on their capital investment to the company.

As a fully funded subsidiary of China Telecommunication Co., Ltd., Shanghai Telecom attach great importance to the long-term development of the company and the long-term interest of the shareholders, and development of relationship with other interested parties. Rejection of pure short-term interest will possibly result in damages on long-term interests of the shareholders. Great efforts should be made to seek "maximum sustained interests for shareholders" by evenly distributing interests to the interested parties like shareholders, customers, employees, suppliers, creditors, communities and government.

Value-seeking

1. Maximum interests. Seek for maximum sustained interests for shareholders based on the tradeoff of rights, responsibilities and interests of shareholder-centric interested parties and with the prerequisite that risk and benefits are evaluated to a sufficient extent. 

2. Balance of interested parties. Ensure preserve and increase of the values of state-owned assets and rationally protect interests of all the shareholders.

3. Consistency in strategy. The overall development strategy should be kept consistent with that for a holding company under China Telecommunication Co., Ltd.

Critical Success Factors

1. Corporate governance by laws. Improve corporate governance structure of separated decision-making, execution and supervision rights to foster sufficiently restrained governance mechanism and scientific decision-making mechanism.

2. Balanced interests. Make a good balance between shareholder interests, customer values, staff development and public well-being and be liable for the interested parties negatively affected by the corporate decision-making.

3. Information exchange and disclosure. Establish standardized bi-directional information exchange mechanism, strictly follow the exchange rules on information disclosure and contribute to the protection of shareholder interests, those of small shareholders in particular, for China Telecommunication Co., Ltd.

4. Risk and benefit matching. Establish risk control mechanism, and optimize risk and benefit matching.

Key Action

1. Improve corporate governance, establish and strengthen corporate organizational structure and management system required by modern enterprise system, clarify the function division, responsibility and authority respectively for the Board of Director, the Board of Inspectors and managers, and put them into a system and a contract, strictly implement "Guidance Note on Corporate Governance", "Service Operation Rules" and "Professional Integrity Rules" as required.

2. Work out policies to take care of interests of customers, employees, suppliers and others to seek for common prosperity down the value chain, enhance collaboration and stage competition in even playing field, undertake relevant social responsibility, create favorable environment for survival so that the benefits of other interested parties affected by the corporate decisions are compatible with the common interests and long-term interests of all the parties.

3. Formulate value concept and standard of the company and establish a "3-in-1" value system incorporating value creation, distribution and evaluation. Establish evaluation system, management system, incentive system and concept system that center on value management, focus decision-making by the management on the motive forces for values, coordinate long-term objectives, analysis expertise and administration procedures, strictly control connected transaction, strengthen performance evaluation, financial decision-making and incentive measures for the operators.

4. Simulate investor relationship management, install setups specializing in investor relationship management, shape effective channels so that investors can be indirectly involved in the corporate governance and grasp the evaluation and expectation of the investors in good time. Follow the updates of watchdogs to help the managers to easily deal with the changes of regulatory rules. Pre-planned effective measures for emergency should be ready in case of any possible financial crisis.

5. Establish a system for information exchange (regular or irregular) between members of corporate governance layer, governance layer and management layer, governance layer and shareholders and all other interested parties. The responsibility and flow for information disclosure should be clarified, and the directors or other senior managers who are familiar with the regulations will take charge of the work as the supervisors.

III. Customer Values

Customer values contain implications in the following two aspects: first, they are the customer values created by Shanghai Telecom, i.e. Shanghai Telecom convert customer needs to customer satisfaction and success; second, they are the benefits customers contribute to Shanghai Telecom, i.e. customer needs are converted to the secured values of the company.

IT development and changes of customer needs are the fundamental motivations for the development of telecom industry. Since reform and opening up, Shanghai Telecom, through technological transformation, keep leading the development of Shanghai's telecom industry. As the telecom consumption climbs up to a higher level, customer needs become diverse and more personalized. Thus, while we employ emerging technologies and launch new products, the business concepts should shift to the principle of "market-oriented, customer-centric and benefit-hunting". Business operation should be organized in accordance with the customer needs to realize deep conversion of customer values and increase of the corporate values.

Value-seeking

1. Satisfy customer needs. Study and discover the characteristics of needs of different customers, on the basis of segmented customer groups, and satisfy customers' deep consumption needs and enthusiastically protect customer interests.

2. Direct customer needs. Closely follow IT development trends, develop new products of info-communication and information service, and raise the level of telecom services, tap and prompt potential customer needs.  

3. Increase customer values. Keep delivering customers more valuable service packages in accordance with the consumption characteristics of different customers and in combination with IT development, integrate telecom services into creation of customer values, help customers to take full advantages of facilities brought about by IT, keep good opportunities in hand and acquire sustained competitiveness.

Critical Success Factors

1. Customer aggregation. Future competition will center on "customers" all the way. To select and garner long-term customers is the starting point of our competition strategy. A tremendous customer base is our greatest advantage. Improvement of service capability and service level and effective aggregation of long-term customers are the fundamental link helping Shanghai Telecom to consolidate its position as a leader.

2. Resource consolidation. Focus the strategy on customer aggregation. All the front stage units should be inspired and confined to the direction of "full service operation", all the back stage units  "network resource operation" and all the functional units "support both front and back stages". Be cost-effective for joint operation with our customers and networks and create new customer values.

3. Improved services. Services are what enterprises commit to their customers and effective channels to connect enterprises with customers. Only those services with customer satisfaction could better convert customer values to values of Shanghai Telecom. Also, only continually improved service quality could foster greater customer satisfaction and success, create more values for customers.

Key Action

1. According to the characteristics of customer needs, intensify marketing of telecom service packages, provide customers solutions to comprehensive info-communication and information services, satisfy the deep consumption needs of different customers and enhance customer loyalty. Keep straightening out and optimizing customer management process and end-to-end management process for different services, improve study on customer needs and the corresponding response , and keep expediting the conversion of customer values.

2. Establishment of marketing and service channels consisting of prime account mangers, business customer managers, community managers, "10000" customer care service, business halls, channel partners, online marketing, etc. helps to turn product-oriented professional management mode into new mode of customer-oriented. On the basis of effectively understanding and directing customer needs, make packages of services of different types and realize conversion of customer values through marketing channels and constantly foster new growth engines for the corporate development.

3. Reinforce a team of account managers and improve performance evaluation and incentive measures. Improve the professional quality of account managers and capabilities to identify and satisfy customer needs through on-the-job learning and training,    

4. Make overall planning and quicken the pace of deploying information system for customer management. The current status of separating and isolating management information plus data should be changed as early as possible to intensify IT applications in marketing management and customer services, and enhance the abilities to thoroughly tap and satisfy customer needs.

IV. Staff Development

Staff development implies that on the prerequisite of scientific all-round development of Shanghai Telecom, employees keep learning and growing to realize their career dreams and constantly increased values together with the company.

Respond to state's strategies of "invigorating the nation through science and education" and  
"invigorating the nation through talents", establish people-oriented scientific concept of development, and implement the principle of "respecting work, knowledge, competent people and creation", Shanghai Telecom is required to build up a contingent of first-rate talents with whom to invigorate the company. Meanwhile, Shanghai Telecom, aiming for being an info-communication and information service provider with world-class competitiveness, must possess a team of excellent employees. Let each member of our workforce recognize the significance and purpose of working for Shanghai Telecom. We should arouse the vigor and creativity beneath the personality potential of each employee, enthusiastically help each employee to be well positioned, and keep improving their performance and ability to realize their career dreams.

The staff development described here and A White Paper on Shanghai Telecom Staff All-round Development complement and echo one another. Both address the staff development issues but from different sides. Here, we lay stress on common development of the staff and the company, viewing staff development as part of the all-round development of the company.

Value-seeking

1. Common values. Let each employee accomplish both the common cause and personal values in the process of value creation for Shanghai Telecom.

2.Corporate development. Create harmonious and advanced working conditions for employees, set up stages for fair play, and build Shanghai Telecom with the intelligence and talent, innovative thinking and a wealth of knowledge in science, technology and management of all the employees.

3. Employee attainment. With Shanghai Telecom, employees break the limitation in ability and resources and score greater achievements as the organizational structure is optimized and the common cause progresses.

Critical Success Factors

1. Prerequisite for development. The corporate development is a prerequisite of staff development. Only on condition that the company acquire sustained all-round development, can employees achieve all-round development  Similarly, employees' all-round development will further boost the all-round development of the company.

2. Common values. Employees and the company share the common values and strive for the common cause and ideal.

3.Staff Quality. The basis of staff development is market-oriented allocation of human resource, and sustained improvement of staff quality as required by the posts and the corporate development.

4.Growing mechanism. Improve factor-based distribution mechanism, constantly bring forth mechanism innovation in the following five aspects: competition-for-post, performance evaluation, payment incentive, staff training and career development, concentrate on employees' democratic development, enabling them to take a full play in a stage which is just and fair, competitive, attractive and with growing space.

5.Atmosphere for learning. Continual learning and innovation are the power sources of staff development. Internal environment and cultural atmosphere in favor of employees' learning and innovation are indispensable.

Key Action

1. Establish models of post groups and staff quality and provide benchmark and guidelines for employees' career development and design, as required by the business process of corporate strategy and organizational structure.

2. Instruct and help employees to design career plan in accordance with the corporate strategy, so that the overall objectives of the company will be naturally integrated with the personal objective of an employee who will grow up with the company.

3. Establish competition-for-post mechanism and performance evaluation mechanism that match the corporate business process. Design specific methods for competition-for-post and performance evaluation, targeting different posts of front stage, back stage and management support units to effectively arouse vigor and creativity of the employees at different posts.

4. Invigorate the company through talents as enthusiastic response to the strategy of "Invigorating the nation through talents". The company prioritize value creation, core staff members and talents, offering them more opportunities to express their opinions and exhibit their skills. Try professional executive system and open up the international opportunities for human resource development, and attract, cultivate, impel and retain talents in many ways of materials, culture, mechanism, environment, etc.

5. Implement personalized training which is in connection with the strategic objectives of Shanghai Telecom. Help each employee to design and implement a personalized training scheme.

6. Constantly create learning teams. Based on concept promotion, thorough comprehension and reached consensus, this should be practiced and consolidated step by step for all the working teams with an ultimate aim of sharpened overall competitive edges of Shanghai Telecom.

7. Offer pay and welfare packages attractive in the industry. Combine sophisticated incentive measures with the specific conditions of Shanghai Telecom and innovate the payment incentive mechanism. Incentives like salary, bonus, rewarding welfare and holiday, etc. will be offered in line with market-oriented practice and international practice to lure international talents.

8. While practicing material incentives, many other incentives will be devised as multiple more personalized incentives for core staff members and employees making outstanding contribution, so that they would experience satisfaction from self-fulfillment with the company.

9. The company is ready to create excellent conditions for staff development, with office settings, facilities, working conditions and institutions, etc. up to the international standard.

- 作者： zhangliping 访问统计：　2005年01月23日, 星期日 20:54 加入博采