A Success Story in Saudization

Issue (17) - April 2011- 9th Year
Asia Business Council
Representatives Visit
The Kingdom
Students Visit
OFC, Meet
With Lubna
Olayan
The Olayan Group:
A Success Story
in Saudization
Dear Colleagues
Group News
Alhokair to Train Workforce for Burger
King Under Agreement With Olayan
Group News
3
Cover Story
4
Interview
8
Report
10
Spotlight
12
Meeting
10
8
Olayan Food Services, Burger King
franchisee in Saudi Arabia, and
the Alhokair Higher Institute for
Hospitality have signed an agreement
under which the institute will train
130 Olayan-sponsored candidates to
be employed at Burger King outlets
in the Kingdom. The agreement was
signed by Raed Abdulla Ismail, Olayan
General Manager, and Majed Alhokair,
Executive Chairman of Alhokair Group
for Tourism and Development.
The agreement is part of the
“Employment through Training”
program of the Human Resources
Development Fund aimed at supporting
young Saudis by offering them quality
training opportunities. The institute
provides students with development
Olayan Is a Success
Story in Saudization
Fifth Global
Competitiveness
Forum in Riyadh
14
‫التصميم واإلخراج‬
12
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4401367:‫ فاك�س‬2128001 :‫هاتف‬
projects@sspc.com.sa
Suliman Saleh Olayan Charity has donated SR 1 million to the Prince Fahd
bin Salman Charity Association for Renal Failure Patients Care in support of
its services to renal patients in Saudi Arabia.
The donation comes as part of the charity’s assistance to other charitable
bodies with the primary aim of supporting humankind. It specifically aims
at supporting the charitable activities of the association and its care for renal
failure patients.
The donation was the outcome of a visit made by the charity’s executives to the
association. The executives took a closer look at the association’s operations
and met with its representatives who apprised the visiting team of their dayto-day activities.
Hana Alsyead
jussur@olayanggroup.com
Contents
2
Suliman Olayan Charity Donates SR 1
Million in Support of Kidney Patients
We didn’t just wake up to a new year; we opened our eyes to a new era! For our country, we
have great hopes, great opportunities and great expectations. His majesty’s words continue
to resonate in our hearts leaving us proud and secure and encouraging us to put forward
our best.
It is not a coincidence that the content of this issue of Jussur is dedicated to our various
efforts & contributions to the Saudi economy, society, youth and citizenship. We were
not able to cover everything in one issue hence we will be sharing with you more in the
upcoming issues of Jussur. For now, I leave you with these stories.
I cannot stress enough how valuable your comments, ideas and suggestions are to me &
the editorial team of Jussur. Give us the opportunity to attend to your recommendations;
we have just done this with this 17th issue. I’m sure you will notice the changes made in
the design, font, pictures and layout. We wouldn’t have reached here without the valuable
feedback we received from one of our readers; our chairman himself.
Creating Sales
Champions
programs covering various sectors,
including service, production and
business. The programs also support
the Kingdom’s policy of replacing
expatriate workers with Saudi nationals,
known as Saudization.
Similar agreements will be signed in
future, opening the door for more
Olayan employees to be trained on
different programs, from food and
beverage service to wider hospitality
streams, said Alhokair.
Shukri Mansour, Regional Manager,
Learning and Development at
the Alhokair group, said that the
institute is putting every effort to be
a distinguished training center in the
Kingdom. It constantly introduces
new methodologies, and collaborates
with international universities to
carry out its mission. The institute has
several agreements in place with other
reputed local and international training
facilities to keep abreast with advances
in the field.
On behalf of the Custodian of the Two Holy Mosques King Abdullah
bin Abdul Aziz, His Royal Highness Prince Nayef bin Abdul Aziz Al
Saud, Second Deputy Prime Minister and Minister of Interior, has
inaugurated the fifth Global Competitiveness Forum under the title of
“Innovation as a Means to Competitiveness” from 22 to 25 January
2011. The Olayan Group was one of the distinguished sponsors of this
Forum.
Senior officials, businessmen, and Thought leaders from all over the
world have studied the most significant economic variable issues on
both international and local levels, through out 25 discussion sessions.
It is worth mentioning that the Global Competitiveness Forum was first
announced in 2006 by the General Authority for Investment, to become
an annual remarkable meeting in Riyadh.
3
Cover Story
Students Visit
OFC, Meet With
Lubna Olayan
4
A group of students from
the organization Qodrat
Saudi Arabia visited the
Olayan Financing Company
(OFC) offices in Riyadh on
January 11 and met with Ms.
Lubna Olayan and members
of the SSOF; the students
came to learn about The
Olayan Group, interview
Ms. Olayan, and showcase
the skills they have gained
through Qodrat’s programs.
Qodrat (meaning “abilities”)
Saudi Arabia is an affiliate
of Qodrat Motamaiza, an
international organization
known for educational
enhancement
programs.
Both organizations focus on
developing the math and
language skills of children
between the ages of five
and ten. The Suliman S.
Olayan Foundation (SSOF)
sponsored 70 students in
2009, and 100 students in
2010 through the Insan
Foundation Trust.
During their visit, the
students demonstrated the
5
Companies
Cover Story
Olayan and Nestlé
launches sales
and distribution
arm in Jeddah
6
skills they have achieved
through
Qodrat’s
two
main programs. The first,
Khawarezme
Al-Sagheer,
is aimed at developing the
ability of children to analyze
complicated math problems.
The second, Ameer Al-Bayan,
focuses on building selfconfidence through public
speaking and constructive
criticism. The students also
had a chance to interview Ms.
Olayan and ask her about her
work, experiences in life, and
vision for the future. Ms.
Olayan provided gifts to all
the students, and they in turn
presented her with a shield
bearing Qodrat’s seal and a
bouquet of flowers.
The SSOF supports many
causes in Saudi Arabia focusing
on education and health
care such as the Disabled
Children’s Association, the
Down Syndrome Children’s
Association, and other local
charities.
Swiss food manufacturing giant Nestlé
has launched a new company, Nestlé
Saudi Arabia, in Jeddah to manage its
sales and distribution operations in the
Kingdom, giving a further boost to its
already strong presence in the domestic
market. Partnering the new business
is the Olayan Group’s General Trading
Company, which has had a long,
strategic relationship with the global
confectioner.
The decision to float the new company,
which will have branch offices in Riyadh
and Al-Khobar, comes as a sequel to a
recent decision by the Saudi government
to allow international companies to
set up and manage their sales and
distribution operations, thereby further
opening up the Kingdom’s economy.
Announcing the launch of the new
company at a recent press conference
in Jeddah, Yves Manghardt, Chairman
and CEO of Nestlé Middle East FZE,
said: “We see the commencement of
direct sales and distribution operations
as the beginning of a new and exciting
chapter in Nestlé’s long operational
history in Saudi Arabia.” He attributed
the company’s significant growth and
sustained success in the region to its
long presence in Saudi Arabia.
Commenting on the opening of the new
company, a media report said that the
move makes Nestlé “one of the first Fast
Moving Consumer Goods multinationals
to have a direct operational presence
in the Kingdom, following the recent
decision by the Saudi government to
further open up the national economy
by allowing international companies
to set up and manage their sales and
distribution operations.”
In press remarks, John Sfakianakis, chief
economist at Banque Saudi Fransi, said:
“It means that one of the largest and most
prominent multinational companies
in the Fast Moving Consumer Goods,
including food stuffs, sees great value
in Saudi Arabia as it’s an important hub
with a real and growing population.
Jeddah is strategically situated in order
to cater to the local market as well as
Africa and the rest of the Middle East.
The industrial city of Jeddah is set to
benefit as an industrial hub.”
With Nestlé’s strong reputation in the
market, consumers are expected to
benefit from this strategic move by way
of quality priced products. “For the
Saudi consumer, such a direct presence
entails lower prices, greater supply
security, and increased flexibility in the
face of evolving market conditions,”
Jarmo T. Kotilaine, Chief Economist,
National Commercial Bank, has been
quoted as saying.
Kraft launches cheese spread in
convenient squeezable bottle
Kraft has launched the first-ever
squeezable cheese spread in the GCC,
making it convenient for consumers to
enjoy the world-famous cheese at home
or outdoors.
Aptly called ‘Squeeze’, the squeezable
cheese bottle, which is already available
in Saudi Arabia and other Gulf
countries, is proving popular among
consumers, especially children. It is the
first cheese of its kind to be packaged in
an easy-grip squeezable bottle, making
it a fun thing for children to serve
themselves.
D. A. Shareef, Head of Trade Marketing,
Olayan Kraft Foods Division, said
that in the run-up to the launch in
April and May, the Olayan sales and
merchandising team put up 356 displays
in key accounts and regional retail
outlets in the West and South regions.
Speaking about the innovative cheese
packaging, Vishal Tikku, Managing
Director, Kraft Foods, GCC, said,
“Squeeze by Kraft Cheese will add fresh
excitement to the spreadable cheese
market in the GCC, which has not seen
any real exciting innovation in over 50
years. The new format is modern and
relevant for today’s consumers who look
for convenience, variety and excitement
in the products they purchase.”
Tikku added, “As an established brand
in the GCC with a reputation built
on our strong expertise in producing
superior quality cheeses, Squeeze
will give our consumers the license
to enjoy the same great taste of Kraft
Cream Cheese Spread in a much more
enjoyable way.”
7
Interview
The Olayan Group:
A Success Story in
Saudization
HRVP Abdulkarim Al-Reshaid spoke to Jussur about his work
in the company, and managing the Saudization process.
Al-Reshaid, 37, holds a Bachelor in Computer Science and
a Masters in Business Administration and has worked in the
HR field for 13 years.
When did you join Olayan Group,
and what was the nature of your job
at that time?
I joined Olayan Group in 2001
as Human Resources Regional
Manager in charge of implementing
the organization’s people agenda,
covering a portfolio of 12 companies
based in the central region.
8
What did you gain professionally
from working with Olayan?
Olayan is a great organization for
learning and development; many
established business leaders have
worked for Olayan during their
early career. Personally, being in
Olayan’s HR department has given
me significant exposure to various
industries, each one posing different
challenges. This has helped me a great
extent in shaping my competencies
and skills, and is reflected in our
customized programs to achieve a
healthy balance between our need to
attract and retain employees against
the affordability of each business.
The support of our CEO has been a key
factor in our success in developing rich
HR solutions, including establishing
Olayan as an employer of choice,
attracting talent, developing and
motivating manpower, spreading the
Olayan culture, and supporting the
agenda of diversity and localization.
How do you view the Saudization
issue within the Group and as a
whole?
Since the oil boom, Saudi Arabia
has brought in millions of foreign
workers. The total population of the
Kingdom is now around 27 million,
of which non-Saudis are 20 percent.
The number of young Saudi job
seekers is increasing year-afteryear. But these Saudis generally
lack the skills needed by the private
sector, as reflected in the market.
The Saudization median has now
decreased from 34% to 30%.
In Olayan, however, we are proud to
have achieved an average Saudization
percentage of 41%. In some Olayan
companies we have exceeded 50%
Saudization. This reflects our strong
support and commitment to the
Kingdom’s Saudization agenda.
How have you managed to achieve
this high level of percentage of
Saudi workforce?
The Saudization percentage has
been achieved by creating solutions to
address the following areas:
Sourcing and Recruitment: Attracting
the “right” talent for the “right” job is
always a key challenge. Therefore, we use
more than one source to attract Saudi
talent based on the targeted professional
level and industry. For example, we
participate in Career Days organized
by universities in the Kingdom and
abroad. Last year, we participated in 10
different Career Day events to attract
young Saudi talent. In addition, we work
closely with the government though the
Human Resource Development Fund
(HRDF) to support the recruitment of
Saudis. The number of Saudis recruited
and supported by HRDF is now more
than 260.
Development: One of our key programs
is aimed at increasing the productivity
level of Saudis. We have attracted
young Saudis of both genders in our
development programs – before hiring,
as well as in our career development
courses after recruitment.
To give you an example, we recently
enrolled 50 female Saudis in a
development program, and 40 of them
were eventually recruited to different
positions in the organization. As a
result, the female representation in
the Group increased by 48 percent in
the last year and is now more than 24
percent above our target.
Motivation and Retention: Motivation
and retention are key factors in ensuring
the sustainability of our Saudization
process. The work environment,
compensation system, development
programs,
communications,
HR
recruitment policies, and management
support have been key areas in ensuring
our Saudi employees are motivated and
developed.
Management Sponsorship: The support
of the management at all levels to the
Saudization agenda is critical. Key steps
have been taken in this area; Saudization
is a key Performance Management
objective for our managers. Moreover,
workshops have been organized to
address the issue of diversity and
inclusion to raise the level of awareness
about overseeing the work of Saudis,
both male and female.
How do you evaluate the caliber of the
existing Saudi workforce at Olayan?
Two key indicators in this regard
are their productivity levels and the
extent of their representation in senior
management. In both areas, Saudis
score very well. Of course, there’s always
room for improvement at the level of
front line managers and supervisory
positions, which we hope to address
through our internal development
programs.
What advice do you have for young
Saudis looking for jobs?
We have good examples of Saudis
who have been able to grow in the
organization and demonstrate a great
sense of engagement and commitment.
My advice to them is to accept
challenges, understand well that your
development is in your hands, show
results and be patient.
Aside from work, do you have any
hobbies?
I enjoy reading books and drawing.
9
Report
Lubna Olayan and Khalid Al-Falih, Aramco
CEO, Host Asia Business Council
10
The Asia Business Council held
its first Forum of 2011 in Saudi
Arabia [march 23- 27] at the
invitation of Lubna S. Olayan and
Khalid Al-Falih, president and
CEO of Saudi Aramco.
Founded in 2002, the council is an
independent, non-governmental
organization of top executives
from leading Asian companies
and multinational corporations
with significant Asian operations.
It is headquartered in Hong
Kong.
Participants at the meetings in
Saudi Arabia discussed the global
economic outlook and AsianSaudi business opportunities.
They included Saudi business
leaders, government officials, and
leading Asian businessmen and
women.
A delegation from the council flew
to Saudi Aramo’s remote Shaybah
station for petroleum and gas,
located on the northeast edge
of the Rub’ Al-Khali or Empty
Quarter. They also traveled to
the other side of the Kingdom to
visit King Abdullah University of
Science and Technology (KAUST)
on the Red Sea north of Jeddah.
Ms. Olayan hosted the forum’s
official dinner in Riyadh.
It
featured Saudi folklore dances and
delicacies from traditional Saudi
cuisine. Some council members
wore Saudi national dress, and
many joined in Al-Ardah, the
traditional sword dance performed
to chants and drums.
11
Spotlight
Creating
Sales Champions
12
During the early months of 2010, the
leadership team of GTC/OKF created a
‘Commercial Roadmap’ to identify the key
development priorities that would transform
the organization into a ‘Best in class’ company.
In consultation with their colleagues
at Olayan Kraft Foods, the leadership
team at General Trading Company
sought to create a “Commercial
Roadmap” to identify key development
priorities, including the training and
development of the frontline sales
teams. GTC partnered with Kantar
Retail consultants to develop a full
sales training framework to provide
the right level of skills, knowledge,
and behavior for sales teams.
A series of training workshops were
developed and specifically tailored
for GTC, including: Field Sales Best
Practice, Field Management Best
Practice, Managing Key Accounts,
Essential Negotiation Skills, and
Customer Business Planning.
Each workshop is supported by
a practical toolkit that allows key
learning and methodologies to be
used immediately, and drives the
required consistency of behavior
over time. At the end of a fourmonth roll out, over 200 GTC and
Olayan Kraft Foods (OKF) sales
personnel will have been trained
across a number of workshops
relevant to their respective role.
Lindsay
Wakefield,
Regional
Director of Kantar Retail Middle
East, said, “Our mutual objective
has been, right from the start, to
develop a set of skills and tools for
the organization not only to benefit
them now, but also to deliver growth
through enhanced capabilities in
the forward years in line with the
Commercial Roadmap priorities.”
Tom Clarke, Head of Modern
Trade, who led the project with
GTC added: “We carefully selected
the training provider along a
number of criterions, including
their FMCG industry experience
and background, their market
knowledge including that of the
region and, specifically, the Kingdom
of Saudi Arabia. Consistent with
their clear understanding of our
business, the course content was
customized to our specific
capability development
requirements.”
Ultimately,
the
success
of
this
initiative will depend
upon results it delivers. The outputs
of this initiative, together with sales
force automation and other elements
of the strategic business plan, will
deliver enhanced and sustainable
bottom-line performance in the
years to come.
13
Meeting
Saudization:
A Long-Term Investment
Olayan Food Services Company
has set a Saudization target of 40
percent by the end of 2011.
Olayan scouts for candidates through
various channels like recruitment
agencies, chambers of commerce,
and charitable foundations.
14
The Olayan Food Services Company
has adopted an ambitious Saudization
strategy to create jobs for Saudis in its
chain of restaurants.
Specially tailored programs have been
developed to overcome the prevailing
negative social attitudes towards
people in such jobs.
Essam DakhIl Al-DakhIl, Director of
Saudization and Legal Affairs at Olayan
Food Services Company, sheds some
light on the program and its goals.
Could you please tell us what the
goals of the company are as regards to
Saudization?
The key goal of Olayan Food Services
is to accomplish 30% Saudization of its
workforce. This is the target stipulated
by the government for the private
sector. We are expected to be near
this target very soon. The company is
fully aware that it is in its long-term
interests to invest in its real asset – that
is, the Saudi employee. In view of this,
we have even set a higher target than
required for 2011, which is 40 percent.
What are the common problems you
face in reaching your Saudization
goals?
Like all other private sector
corporations, including fast food
companies, Olayan Food Services faces
some problems in its Saudization drive
– to be specific, two problems. One is
the lack of interest among Saudi youth
to work in the private sector as they
prefer government jobs. In fact, it is
difficult to convince them to work in
the private sector. And secondly, it is
even more difficult to convince those
who agree to be part of the private
sector to work in restaurants.
To overcome these two challenges,
we try hard to convince these young
people of the job security offered by
the private sector. When one joins any
private company, it may seem a modest
start, but the potential for growth is
tremendous. The status of the employee
never remains stagnant as his work is
valued [and] he puts in years with the
company. His career develops along
with the company’s successful growth.
What specific steps has the company
taken to overcome these problems?
The company has tailored a pre-start
training course specifically to help the
candidate to overcome the negative
notion he may have about restaurant
jobs. Under the program, the employee’s
negative feelings tend to increase while
on the job, but gradually diminish as
he continues to go about his daily tasks
in the restaurant.
In addition, there are various other
training courses conducted regularly
to develop skills and to evaluate the
aptitude of the employee so that he
achieves the optimum results.
But I’d say that Saudization does not
in any way pose a dilemma for the
company`s management. We see it
only as an administrative issue where
we seek to ensure the smooth rotation
of new and departing staff.
How has Olayan’s rapid expansion
helped in the Saudization process?
Our Saudization policy has definitely
got a boost by the company’s expansion
with new branches in various
locations. This expansion has created
new vacancies that need to be filled.
We are constantly on the look-out for
innovative solutions to the problem…
of attracting Saudi candidates for the
job. With our expanding locations,
Saudis do not need to hunt far and wide
for jobs – Olayan Food Services is at
their locations. In fact, we have Burger
King branches in the Central, Eastern
and Western provinces, and will be
soon expanding to the Southern region
as well. So, job-seekers no longer need
to approach the head office to apply,
which is the usual route followed by
most companies.
I would like to add that Olayan
scouts for candidates through various
channels, as the internet is not always
reliable despite its wide reach. We
cooperate with recruitment agencies,
chambers of commerce, and charitable
foundations to recruit the right Saudi
candidates.
Olayan Group
Congratulates
Coca-Cola on 125th
Anniversary
The Olayan Group has extended its warm
and hearty congratulations to the CocaCola Company on its 125th anniversary.
While extending his greetings, on behalf
of the Group, to Muhtar Kent, Chairman
and CEO, Coca-Cola Company, Khaled
UAC Continues
to Grow, Thanks
to Strong
Shareholder
Support
United Arab Can Manufacturing
Company (UAC) successfully exceeded
its 2010 targets for revenue and profit
margins thanks to its strong production,
quality performance, and continued
expansion of its customer base. UAC
sold to capacity during the year despite
S. Olayan, Chairman of the Olayan
Group, said in a letter, “Who could
have imagined way back in 1886 that
this rather quaint American beverage
would become a global powerhouse! The
Olayan Group is proud to have shared in
a concerted way at least the most recent
quarter century of this distinguished
history. The partnership has allowed
our two enterprises to intersect in places
as diverse as Saudi Arabia, Greece, the
United States, and even Beirut, at the
Olayan School of Business.”
Olayan added that the Group has been
inspired “by the Coca-Cola story, the
continued vibrancy of the Coca-Cola brand,
and the commitment of Coca-Cola’s people
to improving communities worldwide.”
Along with the letter, Olayan presented a
memento to the Coca-Cola Chairman as
a token of admiration and appreciation.
“On behalf of everyone at the Olayan
Group, I salute the Coca-Cola Company
and wish you and your team continued
success in the years ahead,” he said.
The Group has had a long and fruitful
relationship with the world’s largest
beverage company, having reintroduced
the soft drink to Saudi Arabia more than
two decades ago.
the increase in the price of beverage cans
by the two major carbonated beverage
suppliers in the Kingdom. UAC is a
joint venture between Olayan, CocaCola Saudi Arabia, Aujan Industries,
and Al Jabr Trading Company.
As a result of UAC’s 2010 performance
and achievements, its shareholders
have sanctioned a new $12 million
investment for 2011. The new funds
will increase production capacity by
200 million cans per year, and expand
the can-end making capacity to 700
million pieces per year.
The new
investment will not only increase
production capacity, but will also bring
new can-printing plate technology to
the Middle East. UAC will be the first
in the region to have the ability to laser
engrave printing plates for can printing.
The new technology, combined with
recent investments in eight-color
printing machines will enable UAC to
supply its customers in the region with
top-of-the-line printing technology
that allows for vast improvements in
the design quality of cans.
UAC launched its can production
facility in the Second Industrial City in
Dammam in 1999 with a production
of 400 million cans per year. The
company’s annual output has now
reached 1.6 billion cans and 2.4 billion
can-ends per year. Since 2008 UAC’s
workforce has employed women and
reached a 32% Saudization rate, greatly
contributing to its growth and success
as a leader among can and can-end
producers in the Middle East.
15