The company
Comfort Driving Centre (CDC) is a very rapidly growing young company, less than four years old, which is implementing high-performance work practices (HPWP) as it goes. The company started with a system of project- based teams through which to drive the implementation of HPWP, but it is now moving toward the adoption of a permanent system of teamworking. Comfort provides a good example of how HPWP can be implemented in small and medium-sized enterprises.
Comfort Driving Centre is a subsidiary of Comfort Group, Ltd. (CGL). It was started in 1996 as a joint venture between CGL and Chofu Driving School, the second largest driver training school in Tokyo, Japan, with Chofu having a 10 per cent stake in the company and CGL holding the largest block of shares. CGL is unique in that it is owned by the Singapore Labour Foundation, i.e. the Singapore trade unions. Thus, the company is primarily owned by labour. There are two other driving schools in Singapore, both of which are under Honda management and have been providing off-road services for more than ten years. In addition, there is a large group of private driving instructors.
The context
Unlike driving schools in some of the older industrial countries where it is possible to practice and learn initial driving techniques on public highways, this is not possible in countries such as Japan and Singapore. All learners must have their initial experience on off-the-road circuits, specially designed for learner drivers. To obtain a driving licence a person must pass two written tests and a practical test. These are the Basic Theory Test, designed to assess a learner's knowledge of rules and regulations, and the Final Theory Test, designed to test knowledge of safety and application of safely rules. Only after the learners have passed both practice and theory tests on the circuit are they allowed on the public roads. These tests are conducted by the traffic police. Instruction for the individual learner can be obtained from one of the three authorized driving schools or from private driving instructors. The private driving instructors must rent time on the circuit from CDC, which it is legally obliged to provide.
Originally, the private driving instructors rented access to the police test centre, which later became the circuit leased by CDC. Private driving instructors did not have access to the circuits of the other two companies, but they continued to have access to the old test centre when CDC took over the lease. This meant that CDC had to manage the access of private instructors to its circuit as well as its own activities. This was difficult because the company and the private instructors are direct competitors. CDC was further disadvantaged because the circuit had been designed for testing drivers, not for teaching them.
The core business of CDC is to provide driving instruction for vehicle and motorcycle learner drivers and to provide circuit lots to the private driving instructors. Because the two competitor companies had already been in existence for a relatively long period, they both had considerable technical experience in instruction. In addition, the private instructors also had considerable experience and did not have the overhead costs of CDC, so they can provide a cheaper service. Private instructors can undercut CDC because their costs are 30 per cent lower than those of CDC. Therefore, when CDC started in 1996 it faced a very competitive market with the added disadvantage of having to manage the access of its competitors, the private driving instructors, to its circuit.
Main factors driving the business
From the outset, the strategy of CDC has been to gain market share through providing value-added services with a strong focus on customer service. The goal is to produce both technically competent and socially responsible drivers: drivers who can drive defensively and therefore anticipate hazards and reduce the risk of being involved in accidents, a growing public problem resulting from increased road congestion. The aim is to differentiate the "Comfort learning experience" from that of its competitors through added value.
This added value takes a number of forms, including the following:
Private driving instructors have a pass rate of 22 per cent, while CDC has a pass rate two-and-a-half times higher. In addition, the company has introduced learner choice, i.e. for an extra charge the learner choose his or her own instructor.
The approach adopted by CDC may be termed "learner centred". The instruction is based on basic learning theory, gearing training to the learner's knowledge and skill at the point of entry to the programme and then using explanation, demonstration and practice as the principles to guide the learning process. The instructors are treated as the experts who guide this learning process, and it is their activities and behaviour which play a large part in creating the added value by improving the learning experience of the customers. This approach has been successful both in terms of increasing market share and financial performance.
Company performance
Market share
CDC started operations in April 1996 with seven staff and 120 learners and now has a 24 per cent share amongst the three driving schools, the remainder being taken up by the other 600 private driving instructors in Singapore. A further 37 per cent of the market is held by private driving instructors, the remainder being taken up by the other two schools. Starting from zero in 1996, CDC currently has 500 applicants per month for its services.
The company started motorcycle training in 1999 and within less than one year now has 35 per cent of the market.
Financial turnover
CDC has proved profitable from its inception, producing an average return of investment of more than 20 per cent in the last three years. Turnover has increased at an average of 50 per cent per year. It is also projected that the company will have an estimated turnover of more than S$ 10 million by the end of the year.
Staff
CDC now has a staff of 145, 80 per cent of whom are driving or motorcycle instructors. Although it started as a school for private learner drivers, it has broadened the market to include the following:
Global capabilities
CDC also has ambitions to move into the overseas market, offering one-off training courses such as the defensive driving courses it has provided in Miri, Sarawak, but primarily providing a total solution to driver training. This involves the design of off-road circuits for training, as well as the certification and management of private, self-employed driving instructors. Here the market comprises countries in the Middle East, as well as Asian developing countries. These are all countries wishing to regulate the quality of driving instruction, especially the private instructors, and increasingly to incorporate socially responsible defensive driving into the tuition of all new drivers to reduce the accident rate.
Product differentiation
Comfort differentiates its product from the competition by creating product differentiation, which it refers to as its added value. This is being done through focusing on the quality of service in the form of:
Technology
CDC has a substantial capital investment in the form of cars, motorcycles and the simulator which it owns. The land and buildings, including the driving circuit, are leased. The other capital investment is in the form of computer-based technology for the administration of the school and for maximizing the usage of the track.
The company has developed its own computer-based learning programme for instruction in theory. This is a multi-sensory computer-based training system, available in three languages.
In 1999, CDC purchased a motorcycle simulator from Japan. The machine, which was developed by Mitsubishi Precision Co., Ltd, manufacturers of jet fighter simulators, utilizes advanced robotic technology to give a realistic feel and teaches drivers how to cope with danger. It simulates motorcycle motion under different road conditions and enables the learner rider to negotiate real road conditions that would be too dangerous to practice - e.g. to experience accidents and near misses. To reinforce the learning experience, the machine provides feedback in the form of video sequences of the action from different perspectives. CDC is also the first to invest in a digital sensory timer system, thus being the only company with the circuit equipped with this system. It also has a computerized registration process which keeps customers posted of the estimated waiting time.
Main managerial practices
Culture
CDC's culture is focused on customer service and attempts to ensure that the highest quality of service is provided at all times. It is also distinctive in that it places learning at the centre of the company. This is not just the learning experienced by the customer but also the learning experienced by the staff in delivering that service. The focus on customer service is reflected in the success the company has had in minimizing registration times and waiting times for instruction, in providing the fastest possible learning time and in minimizing failure rates, thus providing a safe, relaxed and friendly learning environment. For the staff, this is evident in the constant search for incremental gains in improving the learning process for the learner, making the learning process more supportive and more efficient and speeding up the learning of both theory and practice.
A determined effort has been made to ensure that all staff are committed to the goals and vision of CDC. In part, this is a result of the fact that all instructors are trained within the company. However, there is also a culture of incremental change and continuous improvement which starts with the initial training.
The problems which the company faces are tackled in a systematic fashion; for example, there has been a constant effort to improve the relationship with private instructors through the introduction of an associate driving instructors' scheme for them. This scheme also aims to improve the standard of driving instruction delivered by the private instructors. There are ongoing attempts to redesign and add improvements to the circuit, the latest in the form of advanced digital sensory timers, and to improve the computerized registration scheme. Finally, the computer-based training (CBT) system for theory instruction is constantly being upgraded, while value has been added to the simulator through the translation of the programme from Japanese into English.
Leadership
Much of the development stems from the leadership of the Director/General Manager, Mr. Huam Chak Khoon. It is his vision, commitment to service and continuous search for improvements in the learning process that drive the culture of CDC. Responsibility has been devolved to junior staff, and there is a tolerance of mistakes insofar as these are an inevitable part of the learning process. However, there is also an emphasis on accountability in order that responsibility for performance can be identified and rewarded. As part of the learning culture, there is a constant attempt to make the links between learning, improvement and performance as transparent as possible.
CDC constantly attempts to emphasize that learning is not just about the acquisition of knowledge and skills, but also about shaping attitudes. For the staff, the aim is to change the mindset from skills training, which is task oriented, to encompass learning about and using a computer, to develop problem-solving skills and to enhance communication and service skills to ensure that interaction with the clients/customers is handled in a supportive rather than in a didactic manner. The intention is to move the staff away from their role as instructors to one in which they are facilitating learning on the part of the client/customer.
Inter-staff relationships
CDC has a small management team, with an average age in the late 20s, but is characterized by a total commitment to the company's objectives. There has been a conscious attempt to sustain a flat hierarchy, with only one layer of management below the senior executive. Given that this is still a small organization, communication is direct through management team meetings who then convey information to the rest of the staff.
Extensive use has been made of project teams to tackle management problems, for example to develop the computer-based theory package, to redesign the track layout to incorporate motorcycle instruction and to redesign the registration system. Access to the project teams is open to all staff on the basis of individual initiative and enthusiasm.
The project team responsible for the introduction of the CBT system for the learning of theory consisted of a group of instructors who were interested in developing their skills in this area. All had only a basic secondary education, entering the job with a minimum requirement of an "N" level or National Trade Certificate Level 2. None had any previous experience of computing. They worked collectively, with the services of a consultant computer program designer, to design a package which would not only instruct the learner in the theory required for the driving test, but would also provide feedback and support in a learner-friendly environment. Extensive use was made of video clips, graphics and animation to make the learning pleasurable. The result has been well received by the customers, and competitors have sought to purchase it from the company. Instruction is available from a menu of three languages. The project team continues to meet with the purpose of continually modifying the program and enhancing its effectiveness as a learning tool. Provision is now being made for access to be available via the Internet so that learners can log on at their convenience and do not have to go to the centre.
This principle of teamworking is now being used as the main means of organizing work throughout the company at all levels. This is a major change which has required considerable preparatory work, involving the redesign of the registration and other IT packages to incorporate the use of teams as the main focus of management. The plan is that the program required to monitor activities and generate the requisite management data will be ready in six months. The teams were to be introduced gradually throughout the latter part of 1999 and into the year 2000.
Each of the teams will consist of a group of instructors, with their assigned vehicles and clients, under the leadership of a senior instructor. In the past, instructors were allocated to clients as they turned up for their lessons, depending on which instructor was on duty at that particular time. There is provision for a client to have the same instructor each time, but for this he/she must pay a premium, part of which is paid to the instructor as a bonus. For most clients, however, the instructor who taught them during one session may not be the same the next time. Under this system, it is difficult to identify the level of performance of the instructors, because the performance of the client cannot be attributed directly to that of any one instructor. The introduction of teams will resolve this problem and provide the basis for ownership of performance. It will also provide a series of other advantages such as:
CDC aims to have a computer program in six months which will provide all the necessary monitoring and data.
Implementation of practices
CDC has a strong commitment to training, driven by its commitment to customer service and enhancing the technical and learning-to-learn skills of its staff. Thus, most training is either customer service or technical training. In 1998, 131 staff attended 23 courses, while in 1999 145 training opportunities were provided and 107 staff trained.
Comfort's benchmarks against its Japanese partner, and the Director/General Manager estimates that the company still has some ground to cover to improve staff commitment to the organization and the customer, as well as in improving technical knowledge. In 1998 all staff were put through a course on customer service training delivered by a local training consultancy group. Because the company was growing fast, it could not afford - either in terms of cash or time away from work - to send staff to the Service Quality Centre for intensive off-the-job training. Instead, the consultancy group produced a course that was tailor made for the company. The programme lasted three months for a total of 14 hours per employee.
Technical skills are also acquired from CDC's Japanese partner. In 1998, 11 CDC instructors were sent to Chorfu for advanced driver training and then delivered those skills to their colleagues in Singapore. In addition, the Japanese partner sent its staff instructors to CDC to train CDC staff. The Japanese have 1,050 driving schools, providing a much wider range of opportunities to develop teaching methodology. They also use information and knowledge derived from racing drivers to develop techniques. This type of technical knowledge is not available to CDC in Singapore, and therefore this is seen as a valuable link.
In addition to these formal opportunities, CDC trains all its own instructors. This is a rigorous programme, and a substantial proportion of entrants do not complete it. A half-day orientation programme is followed by a one-and-one-half month driving instructors' course in both theory and practice. After successful certification, the instructors can then teach on circuit, and after a further three months' training they can teach on the public highways.
Formal provision is made for appraisals to be carried out by senior instructors who were trained in appraisal techniques. The appraisal is consists of two parts: part one is seen by the appraised and covers all the major areas of performance; part two is not seen by the appraised and is used for assessment. There is also a mentoring system in which senior staff act as guides and coaches for their younger colleagues.
There is considerable informal on-the-job training (OJT), including management training. None of the management team apart from the Director/General Manager had prior experience of management, so he adopted a "logical approach" with the aim of engendering a sense of ownership of the company among the staff. So far, for management all training has been on a need-to-know basis, but the Director/General Manager has never turned down a request for work-related training. In addition, some staff are also undertaking their own work-related studies outside work, such as diploma/degree programmes in relevant disciplines. Extensive use is made of management meetings to work collectively through the management problems facing the company. These meetings focus on problems such a "creating a customer-based organization" and "the management of change".
On-the-job instructor training has been focused on developing the skills in customer service and facilitating learning among the clients, as well as those required to teach socially responsible and defensive driving. It is also concerned with engendering a sense of professionalism and pride in the instructors' appearance. Every shift has a five-minute briefing session to cover operational issues before it starts. Every month, one hour is spent to reflect on and reinforce the company message with a different theme each month. The company also has a resource room where staff can enhance their skills and knowledge.
The Director/General Manager is conscious of the fact that he is moving his staff away from a focus on task performance toward more problem-solving, communication and teamworking skills, while encompassing the new technology and exploring its possibilities. The aim is to make everyone multi-skilled, including the security supervisor who has the opportunity to train as a driver, or a customer service officer who has the opportunity to train as a qualified driving instructor, a strategy which has also increased the overall productivity of the organization.
Employee participation, which is one of the main means through which problem-solving skills are acquired, is encouraged in a number of ways. In addition to the staff taking ownership of the creation of the CBT package, staff teams have redesigned the layout of the driving circuit to incorporate motorcyclists. This was considered by experts in the field to be impossible, as they argued that the circuit was not large enough. Staff have also further improved the circuit by introducing advanced digital sensory timers to allow motorcycle riders to check the times of their manoeuvres during practice and testing. This is important, because manoeuvres have to be completed within specific time frames as a demonstration of rider competencies.
Problems of implementation
The main problems of implementation have been those involved in creating the requisite skills among the instructors, who are traditionally oriented toward a more didactic instructor role and not used to participating in problem-solving teams. In addition, management training has had to be done on the job and has placed considerable responsibility on the shoulders of the management. Keeping a focus on strategic business objectives while dealing with the day-to-day problems and training young colleagues is an onerous task.
National cultural and institutional factors
Singapore has extensive national provision in the form of support for training and development activities. One feature is a system of certification for those companies which deliver structured on-the-job training for their industry to national standards. CDC has been awarded certified-on-the-job training centre status by the Institute of Technical Education. This means that the company can, for a period of two years, issue certificates for workers who have undergone OJT programmes conducted by the company, while the staff who provide the programmes are also certified. To qualify, the company had to meet certain criteria such as to have in place at least one OJT administrator, at least one OJT trained programme developer to identify training needs and implement OJT programmes, and at least one OJT instructor to provide guidance and coaching skills to the supervisors who are required to conduct the OJT. In addition, the centre must have a system of record keeping which is adequate to the task and open to audit. This means that CDC can certify its own trainers as well as provide a publicly-recognized standardized form of training for its corporate clients, such as the Housing Development Board and National Parks Board.
CDC has also received two prestigious awards for employers. For one of these, the company must be nominated by its employees for the excellence of its provision. There were only two such awards made in Singapore in 1999, the other company being the equally highly regarded Singapore International Airlines. To obtain this award, CDC beat many other established and highly regarded companies in Singapore. The level of satisfaction of employees with the company is also reflected in the very low quit rate, 5 per cent, which compares favourably with many other companies in Singapore.
CDC is registered for the People Developer Award, which recognizes high standards of provision in training and development. The company may have to formalize some of its existing procedures but expects to receive the award within the next few months.
