Presented By Dr. Mohamed Moustafa Mahmoud Dr. 3M

1. Transforming Jeddah Chamber of Commerce Into a Strategy-Focused Organization Using the Balanced Scorecard Presented By Dr. Mohamed Moustafa Mahmoud Dr. 3M

3. Introduction Jeddah Chamber of Commerce & Industry (JCCI) The first chamber in the Kingdom of Saudi Arabia founded in 1944 32,000 active members from a base of 102,000 total memberships since inception. 326 full-time employees + 87 seconded to local government departments

4. Introduction During the past three years, JCCI has embarked on an ambitious plan to transform itself into a true business partner, building on its internal strengths, forging new partnerships and continually learning from world-class organizations across the world. The aim was to transform the Chamber from a passive body offering basic membership services into the key driver for economic growth and business development in Jeddah Governorate in order to make the Region the true Commercial and Cultural Gate for the Islamic World.

5. The Burning Platform Internal Heat • Low employee morale • Low productivity • Outdated structure • Lack of systems and procedure • Poor IT infrastructure • Over-centralization and lack of empowerment of front line staff • Overstaffed and understaffed departments • Rigid routines • Lack of customer focus • Resources allocation does not match expectation of membership • Lack of critical employee competencies • Increasing cost of offering services

6. The Burning Platform External Heat • Growing unemployment and Gov pressure for Saudization • WTO • Increasing public criticism of the Chamber’s inefficiency It was widely perceived that JCCI, which was once the leading chamber in the Kingdom, is now falling far behind.

7. BSC Reorganization Causes of low performance Weak strategy execution capability improper organizational structure Restructure to fit new strategy and align the organization towards strategy implementation

8. Feb 2003 Executive Board Strategic Review • Re-examine our current status (SWOT and Force Field Analysis) • Formulation of JCCI new strategy document

9. Assessing the status quo • A comprehensive Stakeholder Satisfaction Survey was conducted by a third party consultant • Results were analyzed by a focused group • Provided base values for BSC Customer Satisfaction KPIs.

10. Measuring the Process Activity-Based Costing (ABC) A team of industrial engineers from the KAAU university was commissioned to analyze the processes of offering our key services and to perform Activity-Based Costing (ABC) for the purpose of identify the true cost of offering these services and uncover areas for process improvement.

11. Benchmarking World Best practices Increasing activism « Basics » « Facilitators » « Activists » Source: Benchmarking of Chambers of commerce, Swicorp analysis

12. JCCI Benchmarking World Best practices Increasing activism « Basics » « Facilitators » « Activists » • Extensive training programs targeting all chamber customer groups • Consulting services to companies (strategic, marketing, international growth, etc.) • Access to wide range of support networks (mentors, potential investors, clients, etc.) • Extensive support services to SMEs (business planning, business building, etc.) • Access to sources of financing (venture capital, loans) • Basic training programs • Extensive array of pertinent information for local companies (market, legal, regulatory, etc.) • Comprehensive information about doing business in the city for foreign entities • Organized activities to promote the city and its business environment (trade fairs, conferences, etc.) • Access to economic and sector studies / reports Basic activities • Represent and lobby for member companies • Provide basic administrative and information services to companies

13. Rallying the Troops A series of intensive workshops involving all top 70 managers and heads of units was led by the Chairman of the Board over a period of two month to: • Solicit managers input and buy-in to the strategy • Build a competency profile of each through extensive written assignments, psychometric profiling, and ability tests; and • Infuse a higher level of enthusiasm in top and middle management.

14. JCCI Strategy Document • Mission • Vision • Values • Stakeholders • Stakeholder Value Proposition • Strategic Themes • Strategic Objectives • Key Performance Indicators • Annual Action Plans

15. The appointment of the new Chairman of the Executive Board (Eng. Adel Fakeih), a visionary executive leading the largest food manufacturing and distribution company in the Middle East, added momentum and top management support to the change process.

16. Mobilizing the Community New Strategy road show Presentations • Government officials • businessmen communities • foreign consulates and commercial attaches, • local professional societies. • To: • get their input and buy-in to the strategy, • open the channels for maximum community participation • establish new initiatives sponsored by community advocates

17. The Strategy We aim to be the ideal business partner for the business community in Jeddah by being an efficient provider of information; an ideal forum for networking; and a think-tank generating ideas, business opportunities and innovative funding alternatives.

18. Our Vision The Destination To be the key Driver for economic growth and business development in Jeddah in order to make it the true Commercial and Cultural gate for the Islamic World

19. Our Mission The Journey A Model Organi-zation We will reach our destination through being a role model organization inspiring positive change in private and public organizations and driving economic development through public and private partnerships.

20. The Journey .. Cont. Advocate for the Business Community We will transform the JCCI into a premier public service organization that is seen as the advocate for business and commerce and a ‘high gear’ driver of economic growth that serves as a catalyst for positioning Jeddah as the favored destination for business, family entertainment, and private education in the whole Gulf Region.

21. The Journey .. Cont. A Culture of High Ethics We will adhere to a balanced culture of ethics, high drive and an attitude of Public service. We will support the development of our people so as to enable their personal growth and achieve higher efficiency in JCCI

22. Our Vuales • During our journey we will promote a work culture which is based on the following principles: • We will be customer focused and will strive to continually improve our processes. • We will encourage innovation spirit and will invest in developing our human resources. • We are open to communicate and cooperate with all organizations who are interested in economical and social development. • We are keen to learn form all similar local and international institutions • We will be achievement-focused and will manage our operations using scientific methods. We will link rewards with achievement of specific targets.

23. Identifying Key Stakeholders Business Community Government Members Foreign Entities Community at Large

24. Stakeholder Value Proposition (SVP) Start with the End in Mind in writing • The value propositions commit the Chamber to offer concrete values to its customers. It holds us accountable in front of our constituents. • It provides the context for the intangible assets of the Chamber to create value. • They describe the desired outcome from the strategy.

25. Stakeholder Value Proposition (SVP)

26. Strategy Map Strategy Map describes JCCI strategy and delineate the key Strategic Objectives and Strategic Themes in the four BSC perspectives The Strategy Map showed the cause-and-effect relationships among objectives.

27. Strategy Map A very effective tool to • Describe and explain our strategy to stakeholders and employees • Provide a platform for the executive to discuss the direction and the priorities of the Chamber.

28. Support Government Efforts at Growth, Development & modernizing Government Trading Partners & Foreign Investors Members Community ImproveBusiness Environment & Quality of Life Government C2 C3 C4 C1 Increase attractiveness of Jeddah for trade & Investment Improvesatisfaction of members Stakeholders Perspective P1 P2 P3 P4 P5 Increase Range & effectiveness of community support services Increase Flow of Information & Chances of Effective Encounters Increase range & effectiveness of member Services Internal Processes Perspective Increase Level of Automation LG1 LG2 LG3 Increase effectiveness of policy analysis Enhance technology capability and improve alignment Learning & Growth Perspective Build a diverse talented team Build a unified culture & climate for action F1 F2 F3 Financial Perspective Grow and diversify revenue base Ensure viable fiscalposition thru financial management & cost control Develop sustainable Contribution Program Strategic Map - Linkage Model

29. Key Performance Indicators (KPI) To track progress in achieving objectives • lag KPIs (e.g., member satisfaction index) • lead KPIs (e.g. number of services offered through internet)

30. Key Performance Indicators (KPI) C4 Stakeholders satisfaction

31. Setting KPI Target Levels To communicate the expected performance level and focus the Chamber on improvement

32. Setting KPI Target Levels

33. Setting KPI Target Levels

34. Chamber Department Section Cascading the Strategy KPI aggregation formula Cascading Objectives

35. GoAgilewww.horizonsoftware.com

36. Strategic Initiatives Strategic Initiatives Objectives

37. Objectives C1 C2 C3 C4 P1 P2 Establish Employment Office E-Chamber Strategic Initiatives Build a Small Business Incubator Disable employment Conference & Job Fair Development of Jeddah Barbour Founding Syadah Khadijah Center Strategic Budgeting 120,000 560,000 1,500,000 570,000 2,500,000 1,750,000

38. Mission Roles SMART Objectives Weekly Big Rocks Review Weekly Key Activities Reports Big Rocks of The Week First Things First

39. Strategy Navigation Dashboard

40. Board of Directors Board Committees ٍSectors Committees Centers Boards Chairmen Chairman Support Government Efforts at Growth, Development & modernizing ImproveBusiness Environment & Quality of Life Government Chairman’s Office Management Development Advisor Secretary General Increase attractiveness of Jeddah for trade & Investment Media Advisor Improvesatisfaction of members Social Responsibility Dep Deputy Secretary General Public Affairs Dep To be the key Driver for economic growth and business development in Jeddah in order to make it the true Commercial and Cultural gate for the Islamic World Increase Range & effectiveness of community support services Increase Flow of Information & Chances of Effective Encounters Increase range & effectiveness of member Services Increase Level of Automation GM Legal Affairs Division GM Jed. Marketing Board GM Int’l Affairs Division GM Business Sectors Support Division GM Khadeejah Center GM Jed. Small Bus Deve. Center GM Info. & Members Services Division GM Jed. Manpower Deve. Center GM Support Services Division Settlement & Arbit. Dep Int’l Trade & Inves. Attr. Dep Trade Sector Sup. Dep Small Bus. Support Dep Postgrad. Studies Dep ِActivities Dep Member. & Attest. Dep Public Relations Dep Home – based Bus. Support Dep Increase effectiveness of policy analysis Enhance technology capability and improve alignment Gov. Policies & Procedures. Dep Training Prog. Dep Int’l Relations Dep Legal Studies Dep Transport Sector Sup. Dep Exhibitions Dep IT Dep Finance Dep Build a diverse talented team Specialized Women Activities Dep Financial Consult. Dep Saudis Employ Dep Protests Office Jed. Marketing Dep Industrial Sector Sup. Dep Research & Reports Dep Real Estate Services Dep Int’l Agreements Dep Women Training Dep Build a unified culture & climate for action Invest. Opport. Studies Dep Manpower R&D Dep Contracts & Consult. Dep Marketing Serv. Dep Tourism & Omrah Sec. Sup. Dep Facilities & Operation Dep Info Systems Dep Businesswomen Relations Dep Entrep. Spon. Dep Edu. & Train Sector Support Dep Prof. Sector Sup. Dep H.R Dep Real Est. & Contract Sect. Sup. Dep Grow and diversify revenue base Ensure viable fiscalposition thru financial management & cost control Develop sustainable Contribution Program Serv. Sector Sup. Dep Envir. & Health Sector Sup. Dep Aligning Structure with Strategy As the new vision requires more focus on customers needs, it became evident that the existing organization structure does not provide the ideal fit for the new strategy nor does it optimally support the delivery of the values which we are committed to offer to our stakeholders.

41. Aligning Structure with Strategy A comparative study of leading chambers revealed the need to move towards a lean model and the creation of specialized autonomous centers (subsidiaries) that receive a shared support services from the Chamber’s HQ, while focusing on a specialized strategic mission.

42. Established Four Autonomous Centers • Jeddah Manpower Development Center • Jeddah Small Business Development Center • Jeddah Marketing Board • Mrs. Khadijah Center for Businesswomen

43. Each Support & Development Unit offered 33 key services for its members • Legislation Lobbying • Networking and cross-collaboration • Promoting quality standards and consumer protection • Promoting Business code of ethics • Promoting international professional societies • Supporting workforce localization program • Sector-specific research/statistics • Conduct sector benchmarking studies (e.g., salary survey) • Local and international exhibitions • Sector Web site 33) ….. Established 9 Business-Focused Support & Development Units Member business were clustered into 9 key sectors • Trade • Manufacturing • Tourism • Healthcare/Environment • Logistics/Transportation • Services/Insurance • Real Estate/Urban Development/Construction • Professionals • Training/Education /Employment

44. 33 Business-focused Support & Development Services 1 2 3 4 5 6 7 33 Trade (retail, wholesale) Manufacturing Tourism Healthcare/Environment Logistics/Transportation Services/Insurance Real Estate/Urban Dev/Const Professionals Training/Edu. /Employment Score Carding JCCI Business Support

45. Each GRMO offer 21 services • Contact data base • Library of polices and regulations • Meet the official events • Invite to Chamber events • Arrange for filed visits • Lobbying (draft legislations) • Improving quality of Government services • Maintain correspondence file • Circulating Chamber publications 21) ….. Government Relation Management Officers • 47 Local and Central Government Agencies • Commerce • Industry • Education • Health • Labor • Foreign Affairs • Tourism • Municipality • University • Immigration • 47. …

46. 21 Relation Management Activities 1 2 3 4 5 6 7 21 Commerce Industry Education Health Labor Foreign Affairs Tourism Municipality Score Carding JCCI Government Relation Management

47. Board of Directors Board Committees ٍSectors Committees Centers Boards Chairmen Chairman Chairman’s Office Management Development Advisor Secretary General Media Advisor Social Responsibility Dep Deputy Secretary General Public Affairs Dep GM Legal Affairs Division GM Jed. Marketing Board GM Int’l Affairs Division GM Business Sectors Support Division GM Khadeejah Center GM Jed. Small Bus Deve. Center GM Info. & Members Services Division GM Jed. Manpower Deve. Center GM Support Services Division Settlement & Arbit. Dep Int’l Trade & Inves. Attr. Dep Trade Sector Sup. Dep Small Bus. Support Dep Postgrad. Studies Dep ِActivities Dep Member. & Attest. Dep Public Relations Dep Home – based Bus. Support Dep Gov. Policies & Procedures. Dep Training Prog. Dep Int’l Relations Dep Legal Studies Dep Transport Sector Sup. Dep Exhibitions Dep IT Dep Finance Dep Specialized Women Activities Dep Financial Consult. Dep Saudis Employ Dep Protests Office Jed. Marketing Dep Industrial Sector Sup. Dep Research & Reports Dep Real Estate Services Dep Int’l Agreements Dep Women Training Dep Invest. Opport. Studies Dep Manpower R&D Dep Contracts & Consult. Dep Marketing Serv. Dep Tourism & Omrah Sec. Sup. Dep Facilities & Operation Dep Info Systems Dep Businesswomen Relations Dep Entrep. Spon. Dep Edu. & Train Sector Support Dep Prof. Sector Sup. Dep H.R Dep Real Est. & Contract Sect. Sup. Dep Serv. Sector Sup. Dep Envir. & Health Sector Sup. Dep

48. Advisory Boards Advisory Boards Sectorial Committees Advisory Boards Advisory Boards Boards of Trustees File Pioneers File Pioneer File Pioneer Advisory Boards Advisory Boards Advisory Boards Advisory Boards Advisory Boards Centers Executive Boards Task Forces Task Force Task Force Maximizing Community Participation Professional Volunteering

49. Corporate Governance (CG) Standard Operating Procedure Levels of Authorities Service Level Agreements Corporate Governance

50. E-Chamber