Blue Cross Philippines Business Plan 2016 2020 - September 2015 Page 1 of 16 - Pacific ...
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A member of the Pacific Cross Group of Companies
Blue Cross Philippines
Business Plan
2016 – 2020
September 2015
Page 1 of 16TABLE OF CONTENTS
I. Executive Summary................................................................................................................3
II. Business History, Background and Objectives
A. Overall Financial Performance.....................................................................................4
B. Premium Contribution..................................................................................................4
C. Revenue Sources per Distribution Channel..................................................................5
D. Revenue Sources per Geographic Location..................................................................5
E. BCII Industry Ranking....................................................................................................5
F. Regulatory Compliance................................................................................................6
III. Business Environment Analysis using SCORE........................................................................6
IV. Business Roadmap.................................................................................................................6
V. Brand Change........................................................................................................................7
VI. Product Description...............................................................................................................7
VII. Marketing Plan
A. Medical Sales................................................................................................................8
B. Travel Sales...................................................................................................................9
C. Strategic Alliances and Online Marketing and Sales.................................................10
D. Investments................................................................................................................10
Marketing...................................................................................................................11
E. Other Backroom Support...........................................................................................12
VIII. Customer Service and Client Experience............................................................................12
Accredited Networks and Providers.................................................................................12
IX. Information Technology......................................................................................................13
X. Manpower Requirements and Projection...........................................................................14
XI. Corporate Social Responsibility...........................................................................................15
XII. Financials
A. Budget Allocation.......................................................................................................16
B. 5 Year Financial Projection.........................................................................................16
XIII. Annexes
Page 2 of 16I. EXECUTIVE SUMMARY
The next half decade will be both exciting and challenging for the company. 2016 represents
a watershed for the Company, not just in terms of a fundamental name and brand change,
but more importantly, investments to be made which will provide the foundation for the
company to achieve year on year growth at a high percentage rate for five years. The
Company is well aware of its important position to deliver a very large proportion of the
future value of the Group, not just current profitability.
In 2016, Blue Cross Insurance, Inc. and Blue Cross Health Care, Inc. transform brands and
shall be known to all stakeholders and the general public as “Pacific Cross Insurance, Inc
and Pacific Cross Health Care, Inc.” Fundamentally, with a regional brand, the Company
will continue its promise of product innovation and develop superior service to grow client
loyalty and ultimately, peace of mind to valued customers. Today, Blue Cross is regarded as
the undisputed leader in high end medical insurance and travel insurance.
Blue Cross Philippines achieved its target P1B consolidated revenue mark in 2014. As we
grow, expand existing and build new distribution channels, the company aims to grow its
revenue to P2B in 2018 with more than P1B coming from Medical Sales starting in 2017.
Revenue generation will concentrate on sales of personal medical plans, particularly dollar
denominated premiums to higher net worth clients. Managed growth of employee benefit
health insurance plans, mainly HMO, will absorb more of our growth resources, as this
business in the very long term will represent the core of private health insurance for the
employed population. Generation of travel sales through website, app development and
social media platforms will start to capture a share of the growth in online purchase of
travel insurance, by travel oriented younger aged markets. Relationship building among
travel agency partners, independent agents and brokers will remain core and is our key
focus, all aimed at recovering previous sales growth momentum, albeit in a very
competitive market.
Strategic alliances with distribution partners will provide additional revenue sources. This
strategy has been successful in other Pacific Cross Group companies, in Indonesia and
Vietnam. The Investment operation of Blue Cross will increasingly contribute to the
company’s revenue as retained earnings continue to grow. Cash dividends will not be a
feature of the business, as regulatory reserve requirements will require continued issuance
of stock dividends or other cash mechanisms to support risk based capital requirements.
Page 3 of 16Improving and setting up faster customer service delivery is the task not only by the sales
and client experience departments but a collaboration of all departments. Review of
processes and integrating technological platforms will be one of the main projects to
support aggressive sales generation, client retention and business expansion. More system
acquisitions and developments such as cloud based insurance operating systems to increase
efficiency and support electronic distribution will be built to cater to the demands of faster
sales completion and customer requirements.
Expansion of satellite offices in strategic areas within and outside Metro Manila will support
the projected increase of the company’s sales force. Training using enhanced modules will
be provided to both salaried agents and intermediaries. New marketing collaterals,
including brochures and sales presentations will highlight the company’s new image in time
for the brand change. Major customer, distributor and market roll outs together with
membership programs will be implemented throughout 2016 to ensure a smooth transition
to Pacific Cross Philippines.
II. BUSINESS HISTORY, BACKGROUND AND OBJECTIVES
A. Overall Financial Performance
2010 2011 2012 2013 2014 Ave Inc
Gross Premium 467.67 572.82 648.20 756.89 1,013.13 21%
Underwriting Income 35.88 41.94 25.18 45.57 103.71 46%
Investment Income 21.71 33.49 49.53 86.34 47.91 33%
Net Income 57.59 75.43 74.71 131.91 151.62 30%
Investment Portfolio 380.40 512.94 627.02 820.29 1,044.45 29%
Total Assets 668.89 886.58 1,036.84 1,212.70 1,465.47 22%
The average annual growth of 20% has been sustained for the last five years and is the basis
of revenue projections until 2020. Net income average increase also surpassed the expected
15% growth. ROI was at 4.59% which is higher than market benchmarks.
B. Premium Contribution
2010 2011 2012 2013 2014 Ave Inc
Medical 302.70 373.48 429.39 490.84 589.18 18%
HMO 44.54 71.64 49.08 102.79 134.30 42%
Travel 120.43 127.72 169.73 155.79 207.01 16%
Strategic Alliance Not yet started 2.07 100%
Page 4 of 16Strategic Alliances only started in 2014 with Lacson and Lacson Insurance Broker (LLIBI) as
its strategic partner. LLIBI distributes medical products which do not directly compete with
the current products offered by Medical Sales. Significant focus is being given to alternative
distribution opportunities.
C. Revenue Sources per Distribution Channel
Medical %
As of May 2015 Medical HMO Travel Total
Total Contribution
Account Executives 84.22 29.72 113.94 22.15 136.09 34%
Agents 56.68 3.06 59.74 6.83 66.57 17%
Brokers 61.02 14.13 75.15 8.12 83.27 21%
Subagents 29.33 16.18 45.51 5.79 51.30 13%
Agencies 3.52 7.57 11.09 0.55 11.64 3%
Travel Agencies 44.59 44.59 11%
Online (OQAP) 4.07 4.07 1%
Strategic Alliances 2.25 2.25 2.25 0.1%
Total 237.02 70.66 307.68 92.10 399.78 100%
D. Revenue Sources by Geographic Location
Medical %
As of May 2015 Medical HMO Travel Total
Total Contribution
Head Office (Metro 220.63 55.27 275.90 82.42 358.32 89.6%
Manila)
Subic 0.27 0.16 0.43 0.17 0.60 0.15%
Cebu 11.48 6.84 18.32 5.31 23.63 5.91%
Davao 1.13 0.54 1.67 3.66 5.33 1.33%
Pampanga 0.22 0.02 0.24 0.05 0.29 0.09%
Cavite 0.15 0.28 0.43 0.00 0.43 0.11%
Bacolod 2.33 0.41 2.74 0.46 3.20 0.80%
Dumaguete 0.22 6.99 7.21 0.00 7.21 1.80%
Bohol 0.36 0.04 0.40 0.00 0.40 0.10%
Butuan 0.19 0.11 0.30 0.03 0.33 0.08%
Gen Santos 0.04 0.00 0.04 0.00 0.04 0.03%
Total 237.02 70.66 307.68 92.10 399.78 100%
E. BCII Industry Ranking
2009 2010 2011 2012 2013 2014
Page 5 of 16No of Non-Life 87 87 83 81 71 69
Insurance Companies
Gross Premium 22 21 20 19 17 17
Earned Premium 14 12 12 12 11 10
Net Income 9 18 12 6
Data not available
Investment Income 26 24 20 X
Net worth 33 30 23 21 17 28
F. Regulatory Compliance
Authorized Paid Up
Net Worth
Capital Stock Capital
Balances as of Dec 31, 2014 761,756,281 300,000,000 270,445,500
Stock Dividend approved by IC 55,000,000
Increase in authorized capital stock 200,000,000
approved by IC and SEC
Additional Stock Dividend approved by IC in 100,000,000
2014
Projected Retained Earnings – Dec 2015 136,693,742
2016 Increase 75,048,104 50,000,000
Projected Dec 31, 2016 Balances 973,498,127 500,000,000 425,445,500
Regulatory Requirements 550,000,000 -0- -0-
Status Compliant
NOTE: The increase in stock dividend will be paid out from the retained earnings.
III. BUSINESS ENVIRONMENT
Analysis of the environment where the company operates is based on the SCORE analysis,
an enhanced version of the SWOT analysis which provides measurable results in relation to
the actions undertaken to minimize challenges and capitalize on opportunities. Unlike
SWOT, SCORE analysis assesses both “before” and “after” actions to support continuous
improvement. (See Annex A)
IV. BUSINESS ROADMAP
Corporate Objectives
· Contribution to group target of USD 100M by end 2019.
· Php 2 Billion
Contribution combined
to achieve USDrevenue
5-6 perin 2020for
share with an annual
Pacific revenue growth
Cross International of 20%.
by end 2019.
· Maintain strong capital and networth exceeding statutory requirements until 2022.
Page 6 of 16REVENUE GROWTH CUSTOMER SERVICE INFORMATION STAFF GROWTH
TECHNOLOGY
Increase policy Great Customer Application of HRD transformation
retention rate, Experience and technology to sales to Organization
stronger online Digital Operational and support Development.
sales approach and Excellence. divisions.
new sources of
revenue.
V. BRAND CHANGE
Pacific Cross is the new brand name of the Group across the region. The smooth transition
from Blue Cross to Pacific Cross, with the inherent misunderstanding by many clients of a
US connection, is a major challenge for the Company. The market strategy entails regional
re-branding while the client strategy entails improved integrated services which are
“Customer Focused”. Improved service delivery and a smooth brand transition with
minimum negative impact to business, image and reputation, and to various stakeholders is
the responsibility of the whole company. To ensure effective change, the Company has
employed the services of a known stakeholders firm, EON. The transition efforts will
comprise the following:
· Empowering Employees to become Pacific Cross Ambassadors - strengthening the
capability of our employees and internal stakeholders to become credible
ambassadors of the new brand, and alongside with the strengthening the Company’s
communication capacity to address possible negative feedback.
· Strengthening relationships with Pacific Cross Stakeholders
Activities in preparation for the brand transition started early 2015 and will have its official
public announcement in January 2016. The brand transition is expected to run until July
2017. Expected budget for the brand change amounted to 30M in 2016.
VI. PRODUCT DESCRIPTION
Improvement of products aside from services is also one of the commitments of the
rebranding. Through Product and Business Development, the company will create off the
shelf product design consistent with the product segmentation that will cater to different
markets. This will include application of universal pricing mechanisms for selected personal
products. For group medical plans (HMO) outside Metro Manila, particularly in the VisMin
region, which use our corresponding accredited network, pricing will be localised to capture
sales leads in these geographical locations.
Page 7 of 16Further, Moratorium products for medical insurance is being studied and evaluated in order
to capture additional market. This approach essentially accepts cover for pre-existing
conditions after a number of years and this method of underwriting has proven successful
in selected markets. Application completion is simple as is underwriting. Distribution
considerations are key as is product differentiation to ensure there is no cannibalisation of
existing products market segments. It is likely that such product will be targeted to younger
market segments and will have lower benefits that the existing products range.
VII. MARKETING PLAN
Expansion of business through agencies, exploring additional distribution channels and
strategic partnerships in order to make products and services accessible to more clients
remains to be one of the top strategic objectives moving forward. Online capabilities will be
developed through enhancements of our website, increased participation in social media,
software applications for portals, sales and marketing tools for sales teams and business
partners as well as for customer service touch points is critically important moving forward.
We have not decided in finality about applying price increases in 2016 in light of the brand
change. Comprehensive on-line research is being undertaken with our client base to assess
many aspects of their experience with Blue Cross. As previously mentioned, we are
reviewing our pricing approach to all or some of our products. It may be that hybrid
approaches will be developed. It should be noted that we already apply universal pricing to
our senior plans, with success.
A. Medical Sales
The aim of Medical Sales is summarized into three aspects:
1. Challenging status quo – to exceed what have been achieved and what have been
originally forecasted;
2. Maximizing sales channels – to optimize production from AEs and intermediaries;
3. Widen business reach – to increase sales potential from key strategic locations
within and outside Metro Manila.
Medical Sales follows the RARE (Recruitment, Activation, Retention, Enhancement) strategy
to focus on delivering the projected revenue and maintaining profitability of the company.
Recruitment focuses on increasing the number of sales force to 150 in 2016 and potential
exclusive agencies. Activation aims to provide the necessary resources in order for its sales
force to produce through initial orientations, skills development and enhanced training.
Improved retention and growth will come from offering clear career paths, mentoring and
Page 8 of 16team work. Rewards based not just on quota achievement are critical to reduce turnover
and achievement of sales goals. The current strategic review will result in significant
changes or enhancements to the current operation.
Below is the five year revenue projection for Medical Sales using a 20% annual growth:
New Business Renewal
Year Total
AE Intermediaries AE Intermediaries
2015F 104,054,929 140,416,548 249,181,801 336,257,482 829,910,760
2016 123,624,113 166,824,113 296,044,402 399,496,050 985,988,678
2017 148,348,935 200,188,935 356,718,238 481,372,138 1,186,628,246
2018 178,018,722 240,226,722 429,307,097 579,326,912 1,426,879,453
2019 213,622,467 288,272,067 516,226,946 696,620,590 1,714,742,070
2020 256,346,960 345,926,480 620,372,001 837,158,758 2,059,804,200
Using persistency rate of 85% and 1% increase thereafter starting 2017, the projected
number of policies is detailed as follows:
New Business Renewal
Year Total
AE Intermediaries AE Intermediaries
2015F 1,397 1,571 2,718 3,603 9,289
2016 1,957 2,647 3,197 4,238 12,039
2017 2,153 3,176 4,433 5,921 15,683
2018 2,368 3,811 5,729 7,914 19,822
2019 2,605 4,573 7,126 10,318 24,622
2020 2,866 5,488 8,660 13,254 30,268
Satellite offices in strategic locations will be established to house the increased number of
sales force and to bring the company closer to where the clients are.
Year Agencies Satellite Offices Budget
2015 F Cagayan De Oro, Zamboanga Php 1M
2016 Bicol, Iloilo, Boracay Alabang, Quezon City 2M
2017 Laguna, Baguio All Branch Offices 2M
2018 Sta Rosa, Cainta 2M
2019 Baguio, Lucena 2M
B. Travel Sales
Travel Sales is expected to recoup the lost production of its accredited travel agencies by
strengthening relationships while offering cost effective premiums. The division still has
much to do to improve its account management skills and capability in dealing with the
Page 9 of 16Travel Agent, insurance agents and broker distribution channels. The division is still
recovering from the turmoil of 2014. More rapid expansion of sales portals to agents will be
deployed to enable distributors to sell on-line and to immediately issue policies. As
mentioned, other distribution opportunities for travel business are continuously being
assessed. As with Medical Sales, regional expansion is necessary to tap the large
international travel business derived from the provinces.
Sub Travel Walk- Annual
Year Direct Agent Broker Agency Total
Agent Agency in Increase
2015F 39.49 18.25 11.41 15.97 107.23 1.42 15.67 209.44 1%
2016 56.25 18.80 11.75 16.45 110.45 2.50 18.80 235.00 3%
2017 64.63 20.68 12.92 18.10 121.50 6.00 20.68 264.50 13%
2018 75.32 23.78 14.86 20.81 139.72 5.00 23.78 303.27 15%
2019 81.75 26.16 16.35 22.89 153.69 7.50 26.16 334.50 10%
2020 89.93 28.78 17.99 25.18 169.06 7.50 28.78 367.20 10%
Note: Amounts in Millions
C. Strategic Alliances and Online Marketing and Sales
Product and Business Development has formally started in 2014 to tap revenue generation
via the alternative channels. Arrangements with strategic partners have been closed on
behalf of the sales team and revenue is credited to the sales department. In 2016, Product
and Business Development planned to increase number of alliances focusing on B2B, B2C,
BC Online System and white labelling. Research to determine profitable strategic
distribution alliance prospects will be part of their 2016 Strategies. PBD commits to
contribute 10.9M premium revenue in 2016 and a 15% annual increase in their generated
revenue.
Online travel business is projected to contribute P21M premium in 2015. There were
ongoing reviews of business volume and other payment gateway partners to further reduce
negotiated merchant rates for on-line business. Travel online premium in 2012 was 2.7M
and is expected to reach annual revenue of 55M in 2020. Online advertising and initiatives
and improved social media presence under Marketing Department Strategies as well IT’s
strategy on website improvement will further boost online selling.
D. Investments
The Investment Division shares the vision of the company towards continual stability and
financial growth through diversifying its investments to various vehicles, available locally
and abroad, and is always in compliance with statutory regulations. The activities of the
team ultimately aim to contribute to up to 40% of the company’s net income by over-
Page 10 of 16performing its benchmark equivalent to 4.62% of the 2015 portfolio amounting to P43M.
Investment portfolio mix will be adjusted to 60% traded funds (20% equities, 40% local
bonds, 10% off-shore bonds); 30% managed funds (20% equities, 10% bonds); and 10% cash
and deposits (5% contingency fund, 5% investment in deposits).
The team shall manage investing risks by buying blue chip and class A company shares with
stable fundamentals in trading equities; having 30% of the portfolio to be managed via
pooled and managed accounts to share risks; and by setting a conservative floor and ceiling
prices when buying and selling shares.
For the next five years, revenue projections from all distribution channels excluding
reinsurance are summarized below:
Investments
Medical Travel Strategic Online
Year and Other Total
Sales Sales Alliance Travel
Income
2015 F 829.91 209.44 8.56 3.00 61.31 1,112,22
2016 985.99 235.00 10.89 21.02 75.57 1,328.47
2017 1,196.49 264.50 12.52 28.38 88.65 1,590.54
2018 1,458.60 303.27 14.40 36.89 99.31 1,912.47
2019 1,784.46 334.50 16.56 46.12 114.99 2,296.63
2020 2,189.52 367.20 19.05 55.34 136.12 2,767.23
Other possible sources of revenues will come from the establishment of Regional Operating
Headquarters (ROHQ), outsourcing of payroll services, underwriting and adjudication
processes. The company however must develop and professionalize its backroom forces
and provide advance systems to cope with the demands of outsourcing services.
E. Marketing
While the brand change will take front and center for the next year spearheaded by
Marketing Department, the company continues to operate business as usual, and as such
the Marketing Department is tasked to respond to the growing needs of the Medical and
Travel Sales Teams. The Marketing Department will seek to implement action plans, as well
as improve processes and results in the following areas:
· Advertising and Promotions – both through traditional print advertising, online
advertising and initiatives, as well as an improved social media presence
· Events – additional events to provide increased visibility among target markets; to
increase leads generation activities; and to establish the Company’s new logo and
visual identity
Page 11 of 16· Collaterals & Tools – design and execution improvements in terms of providing hard
copy and electronic collaterals, as well as other sales and marketing tools
F. Other Backroom Support
Sales are driven with attractive incentives and compensation thus Actuarial Department will
review and enhance existing package to provide motivation and support to Sales Division.
Policy and Underwriting Department through its Digital Operational Excellence strategy will
reorganize the team to realign functions divided in simple and complex underwriting to
speed up underwriting and policy issuance. The department will also explore predictive
underwriting to improve flexibility in risk underwriting.
Finance and Corporate Services teams are tasked to ensure financial stability and good
corporate governance. These teams will continue to enhance processes, provide accurate
and timely reports and forecast through its acquired SAP accounting system and Integra
Payroll system. As gatekeeper of the company’s resources, the Division will continue to
monitor and control company expenditures. Its efforts to reduce overall corporate tax has
been successful in improving the company’s net profit. Office Service Department under
Corporate Services on the other hand will implement centralized records management to
support process efficiency, address congested spaces for files and improve security on
sensitive documents. With critical files under one location it would be much easier to
implement controls on retention and disposition of records in compliance with the
regulatory bodies.
VIII. CUSTOMER SERVICE AND CLIENT EXPERIENCE
The agreed strategic focus for 2015 and for the next five years is “Customer First”. Blue
Cross believes that delivering beyond ordinary customer service will differentiate the
company from its competitors. The risk of losing clients due to delayed underwriting,
delayed claims payment and mishandled complaints is frequent, which has impact on
business renewal and word of mouth, which can influence future sales. A policy retention
rate of 80-85% is not good enough.
To support sales to be on track of achieving the P2B revenue the action plans of Client
Experience are formulated based on two overarching strategies:
1. Digital Customer Experience – reinforcing face to face interaction with digital touch
points so that the customer does not feel abandoned after the personal interaction
ceases. In this constantly connected world, customers need to be given the digital link to
Page 12 of 16Blue Cross at any time and wherever they are so that the company will always be
accessible. This digital experience will apply to both direct customers and those clients
of independent agents and brokers.
2. Digital Operational Excellence – enhancing operational capabilities and driving rapid
customer centric innovation with the use of technology. Client Experience move to
digitize is to respond to a faster and efficient customer service needed by clients.
To sustain client experience discipline within the next 2-3 years, Client Experience is tasked
to streamline and develop simpler customer service processes, establish impartiality of the
customer complaints desk, embed metrics in the systems using CRM, queuing system and
operational dashboards. Ultimately, success in improving client experiences translates to
improving policy retention potentially to 90% while indirectly supporting new sales, given
the very high impact of word of mouth in our primary target market.
Accredited Networks and Providers
Provider Network Services and Claim Adjudication (PNSCA) Division supports the “Customer
First” goal through customer centric approach by further expansion and strengthening
relationships with network of health providers who plays a very important role in gaining
Blue Cross policyholder’s satisfaction and loyalty by providing satisfactory health services to
them. There will be organized promotional blitzes to enhance engagement of Blue Cross
plan coordinators who function as gatekeeper with respect to policyholder’s access to
cashless services in our accredited hospital network. The promotional blitz will be extended
and afforded to plan coordinator’s secretaries who act as Blue Cross’ front liners for its
clients needing various medical services from its accredited network of health providers.
IX. INFORMATION TECHNOLOGY
Over the years, sales divisions have been delivering revenue targets despite limited
technological support for sales initiatives, performance measurement and for sales
management. Inefficient or unreliable delivery of billing and delays in production of new
business quotations has created additional sales challenges. While these are a management
responsibility, not the IT divisions, improved technological solutions are the answer to
inconsistent delivery.
Page 13 of 16IT projects related to sales will be prioritized and includes the following:
SALES DEPARTMENT TIMELINE
Medical Quotation Medical 4Q 2015
e-Submission of applications Medical/Travel 4Q 2015
Customer/Intermediary Online Portal Medical/Travel 1Q 2017
Online Billing Facility Travel 1Q 2016
Data Consolidation Travel 4Q 2015
Direct Marketing/Billing System Marketing 2Q 2016
Consolidated Partnership Online System PBD 2Q 2016
CUSTOMER SERVICE DEPARTMENT TIMELINE
e-Submission and e-Medical Evaluation Claims 4Q 2015
LO Information Access Claims 3Q 2015
Provider/Member Information Portal Claims 1Q 2016
Customer Relationship Management (CRM) CS 4Q 2015
Call Center, chat service and SMS text blast CS 3Q 2016/4Q 2015
Document Management System (DMS) P&U 4Q 2015
Online Underwriting P&U 1Q 2016
Non-Standard Quotation System P&U 1Q 2017
Process Mapping Tools (Signavio) CE 4Q 2015
Feedback and Complaints Tracking System CE 4Q 2015
Queuing System CE 4Q 2015
BACKROOM SERVICES DEPARTMENT TIMELINE
Operational dashboards/Business Intelligence Actuary, Finance 4Q 2015
Network Enhancement Finance, IT, OSD 1Q 2016
Infrastructure Renovation OSD 1Q 2016
HR Information System (HRIS) (Orange) HR 1Q 2016
System Server, Workstation/Network upgrade IT 1Q 2016
Data Warehouse Administration/Maintenance IT 1Q 2016
Increase in Disaster Recovery Capability IT 1Q 2016
Multiple Office One Network System Medical 1Q 2016
X. MANPOWER REQUIREMENTS AND PROJECTION
Employee surveys show that most employees are unaware of the company’s directions and
that they feel they are not accorded appropriate resources for skills improvement and
career advancement. While the role of HR is vital in the organization, its role has been more
traditional and transactional, notwithstanding significant expenditure on training and
Page 14 of 16development, team building and skills development. To be significant in the development of
the company’s human resources, HR will look to transform its division to an Organization
Development Department that focused on development and enhancement of staff and on
talent acquisition.
Increasing required manpower shows that the company is growing but also recognizes that
the welfare of its employees is key in relation to achieving its objectives. Actions to be
undertaken to support manpower sourcing are as follows:
· Tie ups with campuses to obtain CVs from alumni members and possible on the job
trainees.
· Partnership with specialized manpower services in order to help HR search further
for talents for technical positions.
· Hire additional talent acquisition staff who will handle sourcing of talents through
social media on full time basis
· Monthly job fair activities and referral programs.
Below is the projected manpower count for next year including sales divisions:
Non Management
Year Management Total
Medical Travel Backroom
2015 F 35 145 39 160 379
2016 39 233 40 191 503
2017 44 301 42 213 600
2018 45 370 42 239 696
2019 47 436 48 266 797
2020 47 501 48 288 884
NOTE: (1.) Medical and Travel Manpower includes sales support, admin assistants and branch sales officers.
Backroom increases by 27 in 2016 up to 2020. (2.) Management includes projected AM – AVP additions from
2017 – 2020 Medical and Travel Sales.
To minimize the 56.07% (sales) and 21.46% (non sales) attrition rates, HR must find ways to
keep employees, particularly non-management staff. A senior talent for HR transformation
will be hired next year either as a full time employee or on a consultancy basis. This is to
assist the company to develop job skills and business acumen tools that will help
management to retain staff.
XI. CORPORATE SOCIAL RESPONSIBILITY
Blue Cross is an organization that provides comprehensive medical insurance to high end
market. It also understands the difficulties faced by marginalized members of the society
Page 15 of 16who do not have access to quality healthcare service due to lack of resources. While the
privileged few are enjoying the fruits of modern technology and scientific advancement,
illnesses are haunting majority of the peripheries of the society. As a start, the company
will provide sponsorship to selected local health centers in providing medicine and
vaccines to common illnesses. Also, with the help of accredited doctors, the company will
help other institutions in organizing medical mission and health awareness program to
poor communities outside Metro Manila. The company also intends to partner with NGOs
to actively support “Anti Smoking Awareness Campaign”. 1M initial budget was provided to
support these initial corporate wide CSR initiative.
XII. FINANCIALS
A. Budget Allocation
2016 2017 2018 2019 2020
Brand Change 30.09
Information Technology 38.58
Office Expansion 25.00 24.00 9.62 9.62 19.25
Client and Partner Activities 2.52
Staff Growth 16.17
TOTAL 112.36 24.00 9.62 9.62 19.25
Figures in Millions
B. 5 Year Financial Projection
Capital investment in technology to ensure efficient service delivery and office expansion is
not enough to support business growth. Investment in the right partnership either for
revenue generation and service delivery, customer activities and investment in people are
equally important to sustain business lead. 2016 budget is challenged by the huge
advertising requirement for re-branding and investment in new health and travel insurance
system affect the bottom line. Aside from this, the 5-year financial projection was based on
future plans and other business requirements, historical data and various assumptions.
(Please refer to Annex B for the financial projection and Annex C for the Summary of
Assumptions.)
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