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Operational Manual
The World Bank
May 2008
68942
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Table of Contents
Introduction 1. Establishing the Programme
1.1 Agency Selection
1.2 Training Needs
1.3 Establishment of a Steering Group
1.4 Involvement of the Trans National Corporations
1.5 Determination of the Sectors in Which the Programme will Operate
1.6 Promotional Activities
1.7 Setting the Criteria for Company Participation
2. Raising the Profile of the Programme
2.1 Selection of First Group of Companies.
2.2 Press Conference
3. The Business Review Process
3.1 The Business Reviews
3.2 Calibration
3.3 Team Meetings
4. Analysis of Needs
5. The Workshop Programme
6. Report on Completion of the First Phase of the Programme
7. The Second Business Reviews
8. Selection for the Second Phase of the Programme
9. Visits and Company Support in the Second Phase
10. Ad hoc Events
11. Review at Close of the Programme
12. Post Project Appraisal
13. Programme Timeline and Budget
3
Introduction
This guide is designed to provide the basic information for practitioners on the application of supplier development as a support to inward investment and as a means of increasing local content in the
procurement activities of foreign investors in Kazakhstan. This support will be for the most part focused on the growth of local content in manufacturing, service, and support to existing foreign and local large
companies operating in Kazakhstan.
Inevitably, there will be areas of spillover into other activities of a government agency and quite possibly into the activities of other governmental and non-governmental organizations. Where this happens, those
charged with the delivery of supplier development must work closely with third parties to ensure that there is no duplication of effort, or expenditure and that government agencies retain and increase their reputation
as an important support to the business community in Kazakhstan. Traditionally, private industry does not value support from government agencies. A major issue for the selected government agency will be to
develop trust and confidence in the private sector. To this end, training initiatives for government agency
staff form an important part of this suggested method of operation.
The activities described in this guide are often of multiple occurrences. For this reason, a time line is
included in this manual. This time line is indicative and does not represent actual start and finish dates for the programme or specific activities.
The approach advocated is an amalgam of models used in various countries. No two countries have
identical requirements in supplier development and this manual is focused on the identified needs of Kazakhstan.
The programme will focus on a selected group of SMEs who will be developed to a point where they can achieve approved supplier status to multinational companies. This will be done by assessments, coaching
and, for the most successful, individual consultancy from international experts.
What follows is a guideline for the implementers of the programme. Further to the activities described reporting to and collaborations with multiple stakeholders will be determined by the delivering agency.
The manual is set out as a series of steps but in reality some steps will be contemporaneous this is schematically represented below though the timeline is more detailed (Figure 1).
Figure 1: Simplified flow chart of the programme
Selection of Suppliers
Selection of Agency & Staff
Formation of Steering & advisory group
First Assessments
Second Assessments
Workshops on Business Improvement
Selection of Suppliers for Phase II
Specialist consultancy
support
Involve Kazakhstani consultants & universities
Phase I Phase II
4
1. Establishing the Programme
1.1 Agency Selection
A key issue when selecting an Agency to deliver supplier development is to choose one which has close
links with existing and potential inward investors. The individuals within the agency must have the capability to absorb technical information (engineering and quality issues) and be commercially minded. The agency
will have to deal with Trans-National Corporations (TNCs) and the small and medium sized enterprises (SMEs) who aspire to supply them.
An understanding of the problems that SMEs have, and the ability to suggest practical remedies is essential to a successful programme. A profile and competence model should be used to aid selection of individuals
who have the potential to fill this role. The major benefit from this will be to ensure that money is not spent on training individuals with unsuitable profiles.1
From the view point of the TNC there is a desire to work with one agency and not multiple agencies. In many cases the impression of a “one stop shop” is given by various agencies coordinating their activities to
such an extent that there appears to be a single line of communication for the TNC. It is often the case that aftercare of inward investors is a bi-product of supplier development.
A multiple agency approach can give rise to confusions over training, funding and responsibilities. For this reason a single agency approach is recommended in which one agency, or a semi autonomous part of a
Ministry, takes the lead with investors, suppliers and coordinates any involvement of other Government Departments. The agency selected will need to meet the criteria described here and must have access to
the relevant Ministry at the level of Vice Minister.2
Another essential criterion for the delivering agency is resource provision. In the recent case, a Serbia
supplier development programme was under-resourced and this led to delays and performance failure in some critical activities. The number of person-days required for a Supplier Development Programme (SDP)
is easy to calculate. There are only two key variables, SME locations, that is to say travel time, and the number of SMEs to be included in the programme.
There are a number of academics who take the view that Supplier Development Initiatives should be left to the private sector.3 The approach taken here is that of a private public partnership. The reason for this is
that one of the outcomes of the SDP will be increased capacity to initiate further interventions. This economic development side of the SDP is a function of Government. This said, the delivery of consultancy
to individual firms is the province of the private sector and academic and research institutions. The programme outlined here combines the best of both.
1.2 Training needs
Once the agency has been selected a competence model must be applied to those staff who are to take
part in the SDP and training and development given where a need is recognized.
More often than not this training need will fall into three areas:
Consultancy skills
Use of the assessment model selected, general material on international benchmarks for quality
and lean production.
1 It has been know for people to put themselves forward for development as assessors just to obtain consultancy qualifications that can be used outside of the organisation. As a key goal of the pilot is to develop capacity in the Government Agency the involvement of these types of practices should be discouraged. A competence model can be used to ensure that the right people are recruited.
2 The most successful programmes have had their steering group chaired by Ministers (Ireland) or Vice Ministers (Czech Republic)
3 PSAS Strategy paper Chiaki Yamamoto WB Sept. 2001
5
Programme administration and management (use of MS Project or similar)
1.2.1 Consultancy skills
Training in consultancy skills will be ongoing throughout the programme. Much of the success of the programme is dependant on the ability of people from the agency to empathize with the clients and
facilitate the production of business improvement plans. This involves high levels of interpersonal and
communication skills. As well as taking care about the selection of the implementing agency the right individuals must also be chosen. Training in this aspect is to be delivered by an external international
consultant. The European Foundation for Quality’s Business Excellence Model (EFQM) part of this training is rigorously assessed and certificates are issued to those who pass the examination.
1.2.2 Assessment training
In the vast majority of cases4 the assessment can be carried out using one of the internationally recognised standards. In the case of Kazakhstan, an adapted version of the European Foundation for Quality’s Business
Excellence Model (EFQM) is recommended and all participating staff will receive training and full accreditation (subject to their passing the final exam) in this methodology (Figure 2).
The EFQM differs from standards such as VDA or ISO which are one-off events concentrating on specific areas of the business. The EFQM is a philosophy for the whole business, it is never complete, it is an
integral holistic view which demonstrates the health of the organisation and forms the basis of a continuous process of improvement (see Appendix C for a more detailed description of the assessment). The
modifications to the model will be aligned to the needs of the sectors selected for the programme. For example, the oil industry has standards of its own which would need to be recognized in any assessment
instrument.
Training will be delivered by an international expert and conclude with the presentation of certificates to the
participants. It is recommended that two staff of the implementing agency be selected to go to Brussels for full EFQM training which will enable them to certify other assessors in Kazakhstan. The proposal is that stakeholder consultation (see Figure 3 for a stakeholder map) take place prior to the
completion of the assessment model and its associated documents to ensure their focus reflects the needs of the sectors chosen for development.
Figure 2: European Foundation for Quality Management Business Excellence Model
The Business Excellence model is split into nine areas
4 Some sectors may have highly specific entry qualifications for suppliers, for example aerospace. If sectors of this
nature are chosen a specific assessment instrument will need to be created as the generic ones are not adequate.
Leadership
and
Management
10%
Strategy and Planning
8%
Processes
14%
People 9%
Partnerships and Resources
9%
People Results 9%
Society Results 6%
Customers Results 20%
Key
performance Results
Results Enablers
15%
Learning and Improvement
6
Throughout the programme, regular reviews of training and development needs must be made and appropriate provision of training as a continual part of the staff’s development needs.
1.2.3 Recording and monitoring
The third area of training is equally vital. Whilst much of the interface with the companies involved in the programme will be informal relaxed and flexible, the recording of findings and subsequent application of
metrics to the programme will need to be detailed meticulous and precise. A method of recording and disseminating company information must be created. Rather than establishing another database staff
should be trained in the use on Microsoft Project and a multiple user license obtained.5 The benefits to the Agency of teaching people to use sophisticated project control software will be seen in all activities not just
SDP.
In summary: Train in consultancy skills, EFQM plus gain assessor status, and Microsoft Project
1.3 Establishment of a Steering Group
This group should be made up of key stakeholders who will be willing to meet on a regular basis
throughout the programme. It should be made up of a wide range of interest groups and representatives of both the public and the private sectors. The key functions of this group will be to oversee the selection of
the participating SMEs for the programme in both the first and the second phase. In addition, this group will inform the programme director of any matters of concern about the programme, and to evidence the
transparency and integrity of the programme. This group should be established at the very outset of the
programme and should help with the pre-planning stage and the development of assessment models.6
The steering group should be made up of other stakeholders and chaired by a Vice-Minister to give the necessary gravitas to the proceedings. The involvement of a senior politician as “champion” for the
programme is essential to success. The meetings at which the “champion” should attend will not be
frequent but need to be regarded by all as serious high level occasions if they are to gain full support from the TNCs. This involvement of senior political figures was of immense benefit to the Czech supplier
development programme. Conversely the lack of a senior political champion considerably weakened the Serbian programme. From international experience, it can be expected that through time, TNCs and SMEs
will make more important contributions to the programme, as they realize its positive impact on their
activities (Figure 3).
Figure 3: Stakeholder map at programme initiation (left) and end (right)
Note: Size of circle represents relative non-financial resource implications
5 A further spin off from SDP is the creation of a supplier data base.
6 TNCs will have their own supplier assessment documents. The assessment tools used for supplier development should cover the issues which are important to the TNCs. Several TNCs contacted have agreed to this participation. Feasibility
Report details this.
Govt. Agency
SME
Importance to programme
Universities
TNCs
High Low
Contribution
to cost
Importance ttoo pprrooggrraammmmee
High
Low
Low High
Govt. Agency
SME
Universities
TNCs
High
7
1.4 Involvement of the Trans-National Corporations.
This activity should ideally take place before embarking on a programme to gain evidence that there is
demand for the programme. TNCs active in Kazakhstan should be contacted by the implementation agency
to establish: Their willingness to participate in guiding the programme.
The demand for local suppliers.
The areas where local suppliers fail to meet their standards.
Their willingness to speak at workshop events.
Having made contact with a representative number of TNCs, the Agency should invite them to a formal meeting. TNC representatives’ panel should be created in addition to the aforementioned steering group
named either the TNC Advisory Panel or something similar, to avoid confusion between it and the programme Steering Group. Two groups have therefore been established, a stakeholder group to be known
as the Steering Group and a TNC group to be called an Advisory Panel. The role of the first is to ensure
propriety, the second to offer technical and business support. One of the first steps in supplier development is to establish focused base lines. A questionnaire about local content should be sent to participating TNCs
at the commencement of the programme. This will provide baseline data of a non-aggregated nature against which the success of the programme can be measured.
1.5 Determination of the Sectors in Which the Programme will Operate
There are several ways in which this can be done. Thorough economic analysis of those sectors where
Kazakhstan believes it has the potential to compete on a global scale is the first step. This approach has a high dependency upon existing information. If sectoral profiles do not exist, or the Standard Industry Code
records are not reliable, this approach may be difficult to follow.
An alternative is to target sectors where Kazinvest knows there is interest. That is to say, ask the existing
and potential investors what suppliers they are or will be looking for and make these the initial targets, if there is evidence that there are local suppliers capable of meeting these needs. This is by far the most
reliable approach for a pilot programme. An alternative is to look at the operating plan for the economy and
find areas that have been chosen as targets fro economic growth and work with these. Here too there are difficulties as the SDP is short term and Government Operating plans for the economy tend to be long term.
This mismatch can lead to problems.
Having said all of this, if supplier development is to form part of long range planning then issues of world demand conditions, growth vectors in markets and global competition have to be addressed when selecting
sectors. Inevitably in pilot programmes a combination of the approaches above is used.
An extra complication for Kazakhstan is the physical size of the country. When selecting sectors for
development location has to be taken into account as does proximity to Universities and Research establishments which will play an important part in the second phase of the programme.
1.6 Promotional Activities
The programme needs to be promoted to several different audiences:
Members of the Government and Government Agencies.
The Trans-National Corporations The SME population
Potential investors.
Other stakeholders including the general public.
Through the steering group and the TNC Advisory Group the implementing agency should coordinate their
activities to ensure successful promotion of the programme. The programme should be advertised in the business and economic press. This advertising should describe the programme and its aims and should
include the criteria and an application form.
8
In the pilot programme, there will not be a large number of applicants as the programme will be unknown in Kazakhstan. It may be necessary to ask TNCs for nominations. This is not unusual at the start of this type
of intervention and will be overcome when the programme establishes itself in the public domain.
1.7 Setting the Criteria for Company Participation
As set out above, the sectoral criteria will be paramount. However, a number of other aspects should be assessed before accepting companies onto the pilot programme. In addition, the implementing agency, or,
for that matter, other stakeholders, will need to create a list of unambiguous criteria for entry to the programme. An example of such a list can be found in Appendix A.
The list should contain any legislative or fiscal issues which are specific Kazakhstan and which may impact a
company’s abilities to fully participate. For example in some transition countries, banks are not allowed to lend to companies who have a debt to the state. This might inhibit the company’s ability to grow. Great
care should be taken over the criteria as in subsequent programmes there is likely to be over subscription and the criteria will form a first filter for limiting the number of participants.
2. Raising the Profile of the Programme
2.1 Selection of First Group of Companies.
The applications and nominations must be sorted by the implementation agency into three groups:
Companies which fully meet the criteria
Companies which almost meet the criteria
Companies which do not meet the criteria
Companies will be ranked according to their scores according to the table below. The best will be offered places on the programme
After sorting, the highest scoring applications should be put before the Steering Group for approval. Letters
to selected companies should be sent out first and a request for confirmation of participation will be required. If some of the first selected companies refuse the offer then those who were nearly accepted
should be offered a place. When the required number of participants has been achieved letters to the companies not selected can be sent out. 7
2.2 Press Conference
Once all companies are selected, a press conference should be called to announce the official start of programme. A press release should be prepared by the implementing agency in conjunction with the
7 This will vary according to resource levels. Czech Republic: 50 companies selected; Ireland: 150 companies; Serbia:
100 companies. These numbers fall to half for the second phase of the programme,
Score 80 + Score 60 + Score 60 -
9
Ministry. The press release must ensure that the core messages are put across in as small a number of
words as possible. There should be at least a Vice Minister at this meeting as it is an opportunity for the Government to speak about what work is in hand to develop the economy.
3. The Business Review Process
3.1 The Business Reviews
Each company selected for the programme will receive a two-day visit. A suggested agenda for the visit can be found in Appendix B. The main purpose of the visit will be to agree a business improvement plan that
will be used by the assessing teams to measure the company’s progress after six or so months.
In order to find areas for improvement, the company management team will complete a self assessment
questionnaire (Appendix C). This will then be aligned with the two-day assessment made by the agency team. The assessment instrument used by the agency will be found in separate document along with the
scoring guide. These documents will be brought together on the second day of the assessment team visit when a business improvement plan will be agreed. See Appendix D for template. This process is seldom
easy as companies often identify areas for improvement that are different from those highlighted by the
external assessors. This is an example of the assessors need for highly developed interpersonal skills.
The first assessment phase of the programme is very work intensive. Two person teams of assessors can only complete two assessments per week. As an example; if six people will be engaged on this activity, in
two person teams, this would result in a maximum of six companies assessed each week. This figure assumes that there will be infinite flexibility from the companies, a highly unlikely supposition. To take
account of contingencies, a five visit per week should be used to estimate the period of time required for
the initial assessment visits. Further, assessor teams will have to work into the evenings to complete assessments in time to review them with the companies on the following day.
In addition, there will be a heavy burden of administration during this period. The booking of visits, the
recording of outcomes and assessments, the organizing of transport and accommodation are only some of
the activities involved. One or two people should be given the responsibility for this work as this will optimize coordination. This person also must be trained in the use of MS Project to facilitate record keeping.
This training can be sourced from either local or external providers.
3.2 Calibration
The assessment model uses a scoring system. As all participants are new to this, calibration meetings must be held at first weekly and subsequently monthly. At early meetings an international expert should guide
the assessors through the calibration which is designed to ensure that teams are scoring uniformly. It is vitally important that assessor teams do not disclose scores to assessed companies even after
calibration. They should rather talk about areas for improvement. Actual scores can be discussed after the
second assessment.
An external expert should work with the assessor team until they are familiar with the working of the model. An expert should also be available in these early stages to support the work of the agency staff.
3.3 Team Meetings
A meeting between the assessors, project leader, and programme administrator should be held weekly.
Issues arising from the week’s assessments, correspondence with TNCs, information from participating companies etc., should be discussed. This programme is a pilot and evidence of reflective learning by
participants in the programme should be recorded.
10
4. Analysis of Needs
As the business reviews proceed, patterns of specific support for the SMEs will become evident. The project
leader should analyse these patterns and use the information to identify topics for business improvement
workshops. In addition, this information should feed into the TNC advisory panel as this would assist the identification of TNC speakers for workshops.
Given that Kazakhstan is a very large country the workshops may have to be delivered in as many as four locations.
5. The Workshop Programme
Based on the analysis of needs, experts will be sought by the programme director to conduct seminars and
workshops. The programme administrator will book accommodation, transport venues and deal with the financial arrangements for the visiting experts. This work may involve interpretation costs if foreign experts
are brought in to deliver the workshops. Workshops will need to be delivered in different geographic
locations. The workshops should continue until the last company in the programme has had six months to complete its’ business improvement plan.
Workshops will comprise a morning session, in which experts will present on agreed topics. In addition, a
speaker from one of the TNCs in the programme will discuss current issues in supply chains and purchasing. In the afternoons, sessions will be held at which individual meetings for companies to discuss
problems or issues with the experts or with the TNC representative will take place. In all cases, company
delegates will be asked to complete an assessment sheet so that the usefulness of each workshop can be measured. The timeline shows workshops going on for around six months, this may be extended if funding
allows.
6. Report on Completion of the First Phase of the Programme
The project director will prepare a report on the progress of the programme and present this to the Steering Group and the TNC Advisory Panel. The report should include general findings, main areas of
company improvement needs. The project leader should report to the director copying the report to the Project “champion” and the steering group. If it is thought helpful, this could be done at quarterly review
meetings.
7. The Second Business Reviews
The second reviews will be of one day duration. The EFQM score will only be used as a guide to progress. The achievement of aspects of the business improvement plan will be more important to the second
assessment. Aspects of the improvement plan will be regarded as:
Strategic goals
Major Operational Goals
Minor Operational Goals
Non business critical goals
Scoring for these will be weighted in a way that will ensure equivalence between the categories. For example, a milestone achievement in a strategic goal will score equally with the full achievement of an
operational goal. Guidance on this approach is given in Appendix E.
11
8. Selection for the Second Phase of the Programme
The outcomes of the second reviews will be collated and presented to the working group, who will select
the best companies to go forward into the second phase. Scoring for this selection should be done by an
expert and will be based upon the results from the second business reviews.
In this second phase, the emphasis moves from the general to the specific. The assessors, it is suggested, are joined by a Kazakhstani Business Consultant, which could double the number of consultants supporting
the companies (Figure 4). The newly formed teams will change their roles from assessors to supporters.
During this second phase, external foreign consultants and Kazakhstani experts will be sent into the companies to deal with specific problems or opportunities. It will be this phase in which the companies
develop their capabilities to compete at a global level. In addition to this primary gain, the visits of experts will be accompanied by agency staff and the Kazakhstani consultants. In this way, knowledge transfer will
take place at three levels the firm, the Kazakhstani consultant and the agency team member.
Figure 4: Team composition
The second phase should be launched with a press conference and with the release of information/articles
on the selected companies. The agency should ensure that these articles are published in the business and economic press.
It will also provide an opportunity for a “Supplier of the Year” award with attendant publicity should this be thought worthwhile.
9. Visits and Company Support in the Second Phase
The support team comprised of a member of the agency staff and an independent Kazakhstani consultant
will identify specific areas for business improvement. The Kazakhstani consultants could be provided by either the Universities or independent Consultants such as those currently engaged by EBRD
If this proves difficult, because of technicalities or other reasons, a European expert on TNC supplier audits will be available to consult as required. Agreed areas for consultancy will be passed to the programme
director who will find expert consultants from international sources. The CV of the selected expert will be sent to the SME company so that suitability can be ensured. The logistics of the expert’s visits will be the
responsibility of the programme administrator, transport, hotel accommodation and interpretation services will be arranged by the administrator. Expert visits should be for a minimum of two days as anything less
does not deliver adequate outcomes. Because of the geographic difficulties in Kazakhstan it may be worth
considering bringing company representatives to small highly-focused seminars rather than attempting to visit them individually. This problem would be obviated if the SMEs were selected on a geographic as well
as sectoral basis.
Detailed background of the company and its needs will be sent to the foreign expert by the support team.
The expert will agree an agenda for the day with the support team. This will be passed to the company for
THE COMPOSITION OF THE SECOND PHASE SUPPORT TEAM
PERMANENT
Account Manager
taken from the assessors
A selected
Kazakhstani consultant
AD HOC
International
consultant Kazakhstani
academic or specialist
COMMUNICATION
12
approval. This will ensure that the greatest possible use is made of the expert’s time and that the support
team and the company derive the maximum benefit from the expert visit. The expert will provide a report for the company and for SIEPA the company will be asked to complete a questionnaire evaluating the
experts visit. All reports will be kept in MS Project. As the programme progresses the Project file will prove an excellent source of information tracking the progress of each participating company in great detail.
Over and above the consultancy role, the support team will promote their companies to potential customers and liaise between their companies and the TNCs. In effect they will become account managers for their
adopted SMEs.
10. Ad hoc Events
From time to time, promotional events to help the participating companies should be arranged. There are
many formats for this, but the most successful are reverse exhibitions, where companies display to
suppliers items that they need and meet the buyer events where a group of purchasing managers from TNCs meet suppliers from the programme. These events need high levels of support from the TNCs and
should be planned well in advance. In other countries these are very successful and far more effective in business generation than conventional trade fairs.
11. Review at Close of the Programme
It is not possible to make a meaningful analysis of the programme at its conclusion. However, reflection
upon what worked well and was effective should be undertaken. This will help with the design of the legacy system which will be left with the agency. Spin offs from supplier development should be the permanent
use of supplier development in Kazakhstan not simply to increase local content but to encourage FDI and
the transfer of technology into Kazakhstani firms. A questionnaire concerned with local content should be sent out again to TNCs at this stage to gain a general view of any changes.
12. Post Project Appraisal
At around twelve to eighteen months after the end of the programme, companies who participated should
be surveyed to estimate the impact of the intervention. A primary metric will be new business attributed to participation in the programme. The levels of local content used by inward investors, and levels of export
business done by participating companies should also be measured. Once the methodology is tested in a pilot then the Kazakhstani government can select further sectors or geographic locations for further
development. The SDP should over time become self sustaining as private initiatives from inward investors become more prevalent and the government agency becomes a facilitator rather than the deliverer for such
initiatives.
13. Programme Timeline and Budget
Table 1 provides a twenty-month timeline for a Kazakhstani Supplier Development Programme. Table 2 provides an estimate of the budget associated with this pilot programme. The budget has been estimated
under the assumptions that forty SMEs would participate in the first phase and twenty in the second phase.
Table 1: Plan for first twenty months of Supplier Development Programme
Year Year 1 Year 2
Month M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M1 M2 M3 M4 M5 M6 M7 M8
Activity
Training
Advertising
Application sent out
Selection of companies
Assessments
Workshops
Supplier of the year
Assessment 2
Selection of top 40
Intensive Phase
Progress review + calibration
PR events
Meet the buyer
Reverse exhibitions
Steering Group Meetings
TNC group meetings
14
Table 2: Kazakhstan Supplier Development Programme 20-month pilot budget estimate Elements Notes Cost
A STAFF TRAINING AND SUPPORT FROM INTERNATIONAL EXPERTS
A1 General Training
Training needs assessment 10 days plus travel and accommodation $8,000
On the job training by international experts $20,000
A2 EFQM Training including exam fees and certification International consultants selected by call for ELI against ToR $40,000
A3 Lean Manufacturing and capability training Lead international expert and university professors 10 days $7,000
A4 Use of the Kazakhstani assessment model $3,500
A5 Supervised calibration meetings International experts 10 days (fee and in-country travel) $10,000
Category total A $88,500
B TRAVEL COSTS FOR INTERNATIONAL EXPERTS
B1 International flights (Average cost Europe or US and return) 60 flights Europe or USA $93,600
B2 In country flights combined with B3 $60,000
B3 Other in country travel (taxi , car hire) TBD*
Category total B $153,600
C OTHER COSTS ASSOCIATED WITH INTERNATIONAL EXPERTS
C1 Accommodation cost for International experts $112,000
C2 Per Diems @$100 $30,500
C3 Workshops (venue refreshments and sundry expenses) Three workshops delivered at three venues $6,000
Translation services for workshops $6,000
Category total C $154,500
D PROJECT OFFICE OPERATING COSTS AND INFRASTRUCTURE
D1 Project staff
Long term international expert (LTI) ( to provide support through critical phases) $168,000
Per diems for LTI per diem reduces to meals only if housing is sought $120,960
Short Term International Experts 280 days $240,240
Local Experts 400 days $88,000
Local support staff 1WTE $15,200
D2 Equipment/furniture and office operating costs $50,000
D3 Project transportation costs $60,000
Category total D $742,400
E Program visibility
PR Events $20,000
Meet the buyer $40,000
Supplier of the Year TBD*
Category total E $60,000
F Pilot ancillary activities
Database of suppliers $60,000
Study tours, training for Kazcontract staff etc., $80,000
Category total F $140,000
TOTAL $1,339,000
*TBD: To Be Determined based on activity design
Appendix A
Possible Criteria for Firms being selected for the Kazakhstani Supplier Development Programme
Companies must fall within the EU definition of SME set out in the Commission Recommendation of 3rd of April 1996 (OJ L 107 30.04.96 page 4)
That is to say that companies should have a minimum of twenty and a maximum of two hundred and fifty full time employees. SIEPA reserves the right to treat the limits set on employee numbers by this definition in a flexible way.
Revenues in the last accounting period should not have been less than €1,000,000.00 and not more than €50,000,000.00
Assets should not exceed €30,000,000.00
Companies with outstanding State Debt will not be considered for this programme.
Companies should have a good record of development and improvement. For example ISO certification or other.
Companies must be Kazakhstani owned (no more than 25% non Kazakhstani Shareholding) and based in the Kazakhstan.
Companies already supplying the sectors identified will be especially welcome though those who wish to become suppliers
in these areas will also be very welcome to participate. A full list of eligible sectors is provided below.
Company must have traded for five years and must submit the last two year’s annual reports.
Sector classification of companies for Supplier Development Programme.
P A C K A G I N G I N D U S T R Y
MANUFACTURING OF CORRUGATED PAPER AND PAPERBOARD, PAPER AND PAPERBOARD PACKAGING MATERIALS
PRODUCERS OF PLASTIC , CARD OR PAPER PACKAGES
PRODUCERS OF SPECIALIST WRAPPINGS PRINTERS OF PACKAGING OR LABELLING
OIL & GAS
PIPE AND PIPE FITTINGS WELDING SERVICES
VALVES
PIPELINE CONTROL EQUIPMENT WELL HEAD SERVICES
METAL AND ENGINEERING
MANUFACTURING OF PLASTIC PRODUCTS
FOUNDRY IRON CASTING
STEEL CASTING LIGHT METAL CASTING
CASTING OF OTHER NON-FERROUS MATERIALS
FORGING, PRESSING, STAMPING, ROLL FORMING, POWDER METALLURGY SURFACE TREATMENT, COATING AND MECHANICAL TREATMENT OF METALS
MANUFACTURING OF BEARINGS, GEARS, GEARING AND DRIVING ELEMENTS MANUFACTURING OF CABLES AND WIRES
MANUFACTURING OF ACCUMULATORS, PRIMARY CELLS AND BATTERIES
Page 16 of 43
GLASS AND GLASS COMPONENTS
AUTOMOTIVE INDUSTRY MANUFACTURING OF RUBBER TYRES AND TUBES
MANUFACTURING OF MOTOR VEHICLES, TRAILERS MANUFACTURING OF MOTOR VEHICLE BODIES, TRAILERS AND SEMI-TRAILERS
MANUFACTURING OF PARTS AND ACCESSORIES FOR MOTOR VEHICLES AND MOTORS
PHARMACEUTICAL
MANUFACTURING OF PESTICIDES AND OTHER AGROCHEMICAL PRODUCTS MANUFACTURING OF PHARMACEUTICALS, MEDICAL CHEMICALS
TIMBER INDUSTRY
TIMBER MILLS
TIMBER PROCESSORS MANUFACTURERS OF ENGINEERED WOOD PRODUCTS
Scoring Matrix
Selection Criteria Matrix
Fully met Borderline Not met
1. Sector compliance
2.Annual revenue 2005
3.Employee numbers
4.Solvency
5. Ownership
6. Business performance
Score
Information sources for checks
Sector compliance Companies declared activities and existing customer base.
Two Annual Report copies
Published accounts
Number of employees
Company records
Page 17 of 43
Appendix B
Business Review Agenda
The first business review, which takes two days, is vitally important to the whole programme as it forms the
platform for business improvement with management team of the client company. The business review seeks to find aspects of the business which will benefit from an innovative approach. It is necessary, in this respect, to
assess current performance level of the business and the potential for improvement then to, prepare a plan for improvement in the identified areas. Participation of the company’s top management is essential to the success of
the development process
The programme of the first day includes explanation to key managers of the Supplier Development programme and a methodology of self-assessment. Managers of the company are also asked to fill self-assessment workbook during the
course of the first day. They will also spend considerable time on interviews with the assessors. These interviews are necessary for forming of an independent view on company operation and performance. This external assessment and
information gathering allow external assessors to help the management team with the self-assessment and identification
of strengths and areas for improvement.
A. First Day
Start at 8.00 Topics / Outcome Participants
Introduction (Opening
Meeting)
30 minutes
Introduction of participants, Explanation of the Programme,
Benefits, Q&A
GM and Senior management team
Company presentation
15 minutes
Short presentation of the
company and its business plan
GM and Senior management
team
Introduction to self-
assessment
45 minutes
Introduction to the assessment
model and to the process of
self-assessment
GM and Senior management team
Facility ‘Walkthrough’
2 to 3 hours
(Self assessment may begin in parallel)
Assessors view on the operation (production floor and
other facilities, infrastructure, attitude of workers)
Operation manager or other
members of the management
team, Quality manager, Individual members of the
senior management team and/or other members of
management and staff as needed
Interviews with members
of management team 3 hours
Gathering of information
needed for external assessment
Members of the management
team according to an agreed schedule
Final meeting of the day
(Optional) 30 minutes
Close for the day, Information
still to be obtained, any problems with the self
assessment workbook.
GM (other Senior management
team members according to their needs and questions
related to self-assessment)
Page 18 of 43
Second day of the business review is dedicated to discussion of self-assessment findings by management team and
assessors’ view on the company, and to discussion of areas for improvement. Result of collaborative work of the
management team and the assessors is a realistic assessment of company operation and performance including strengths and areas for improvement. The output from the second day is plan for business improvement in the
following 6 months of the project.
B. Second Day
Start at 8.00 Topics / Outcome Participants
Presentation of
Assessors’ findings
15 minutes
Short summary of strengths and
areas for improvement including
hand-over of the list.
GM and Senior management team
Complete Info
Gathering 1 hour
Follow up from Day 1 and gathering of missing information
Members of management
team or other employees as needed
Workshop – Review of
self assessment and discussion of strengths
and areas for
improvement 3 hours
Presentation of self-assessment by
management team including Strengths and areas for
improvement. Discussion of findings
/ Agreed list of areas for improvement
GM and Senior
management team
Action Plan workshop 2- 3 hours
Prioritisation of areas for improvement. Selection of specific
areas for the improvement plan. Set
up of goals for Improvement. /Short term improvement plan
GM and Senior management team
Closing meeting
30 minutes
Close of the business review, Next
steps
GM and Senior
management team
C. After the Business Review Topics / Outcome Participants
Report and Follow up
Management completes Plan for next
6 month and sends it to assessors
within 2 weeks from the BR.
Management prepares short interim
report after 3 months
Second assessment visit after 6
months
Management team
Management team
Management team and assessors
Appendix C
Kazakhstan Supplier Development Programme
BUSINESS REVIEW WORKBOOK
Page 20 of 43
FOR SELF ASSESSMENT
Purpose
To involve management team in generation and formulation of strengths and opportunities for improvement as seen by the company;
To apply a tool for self-assessment which can be used in the future by the management team;
To build a team consensus and commitment to improving the business;
To identify companies with high potential within the Supplier Development Programme.
Page 21 of 43
Instructions
This workbook is summarised from the EFQM Excellence Model and is structured according to the 9 Model criteria including 5 ‘Enabler’ and 4 ‘Results’ criteria.
It asks fundamental questions about the business, including the quality of leadership, use of resources, people and processes, results etc.
For Criteria 1-5 (Enablers) please consider the statements on the Analysis sheets (there is one page for each Criterion of the Model), think about what processes or methods
you use to satisfy the requirement and how well developed they are. Use the list of best practice examples that can help you better understand the meaning of listed Model
requirements. Try to record your view by placing a tick for each on a scale of 0-100, using the description for scale limit values to guide you. The only purpose of the score is to
help you identify key strengths and opportunities for improvement for each criterion and no total score will be calculated based on it.
On the sheets headed Findings, capture Strengths and Areas for improvement in order that reflect the priority they have (1 is the most important for the company). Optionally
you can use scoring results to support your decision.
For Criteria 6-9 (Results) please notice there are two sections and think about the specific measures of key stakeholders’ perception of the company and internal performance
indicators. Use the list of measures / indicators according to best practise that can help you state relevant examples. Try to evaluate the scope and trends of results, targets
achievement and benchmarking comparison on a scale of 0-100, using the description for scale limit values to guide you. On the sheets headed Findings, capture Strengths
and Areas for improvement in order that reflect the priority they have (1 is the most important for the company). Optionally you can use scoring results to support your decision.
After completion the entire workbook the management team will discuss the findings in each area, including the evidence (examples) on which conclusions were based and
agree improvement priorities.
1.
Leadership and
Management
3. People
5. Processes
2. Strategy and Planning
4. Partnerships
and Resources
6. Customers Results
8. Society Results
7. People Results
9. Key Performance
Results
Results Enablers
Innovation and Learning
Page 22 of 43
Enablers – analysis (examples)
Criterion (EFQM)
EFQM Excellence Model Requirements Method used, Evidence, Examples How well done? (*)
10 20 30 40 50 60 70 80 90 100
1c_1 Do leaders systematically interact with key customers? The guidelines for communication with key customers are developed and used but do not exist in written form. Leaders interact with key customers occasionally (exhibitions, social events etc.).
1d_2 Do leaders listen to ideas of others and respond to them? Leaders are present at annual meetings with employees to summarize major achievements of the company and to answer questions. There also informal opportunities of meeting and discussing (e.g. social events).
2a_2 Do leaders find about market trends and results of key competitors?
The information is collected centrally by dedicated department, which prepares both regular and ad hoc analysis for the management team.
2d_1 Are there functional processes of strategy preparation, communication and deployment with clearly defined responsibilities and powers?
The process of strategic plan preparation and review is described including process ownership.
3a_1 Are human resource policies, strategies and plans developed and updated?
The policies including recruitment, appraisal, career development and rewarding are described and annually reviewed. The employees’ feedback is used to improve human resource policies.
3b_3 Are the employees evaluated in order to help them reach their personal and group goals?
There is annual performance appraisal, which is the base for individual personal development and training plans for all employees.
4b_1 Are the financial resources utilised systematically to support the strategy and policy of the company?
The financial strategy’s major goal is to drive improvements in cost-effectiveness in compliance with the overall strategy.
4d_1 Does the company manage technology development in order to support stated business goals?
There is one specific part in strategic plan dedicated to the technology development.
5a_1 Are the organisation’s processes systematically defined and managed (e.g. with the utilisation of quality systems like ISO and environmental standards)?
All processes are described and documented, and are certified according to ISO standards. Regular internal and external audits are performed.
5c_1 Are new products and services designed and developed based on customer needs and expectations?
Data from customer surveys and market research are used to design new products and services.
Page 23 of 43
Assessment Questionnaire 1. Leadership - analysis
Criterion (EFQM)
EFQM Excellence Model Requirements Method used, Evidence, Examples How well done? (*)
10 20 30 40 50 60 70 80 90 100
1a_1 Do leaders develop the company’s mission, vision, values and ethics?
1a_2 Do leaders stimulate and encourage improvement activities of their employees on a continuous basis?
1a_3 Do leaders act as role models of values, and ethics identified and obtain critical feedback from their employees to review their own leadership effectiveness?
1b_1 Are leaders personally involved in systematic development and continuous improvement of the organisation’s management system?
1c_1 Do leaders systematically interact with key customers?
1c_2 Do leaders establish and develop relations with their strategic business partners in a planned way?
1c_3 Do leaders interact with representatives of society, professional bodies and associations?
1d_1 Do leaders motivate other employees and reinforce culture of Excellence within the company?
1d_2 Do leaders listen to ideas of others and respond to them?
1e Do leaders identify, manage and communicate organisational change?
(*)
0-10 = approach is not defined or it is in the beginning;
100 = approach is well defined, implemented in all relevant areas in a structured way, supporting strategy, linked to other approaches; approach effectiveness, its deployment and results achieved are regularly measured, improvement opportunities identified using existing best practice, benchmarking and measurement results, planned and implemented according to the priority assigned.
24
1. Lead Leadership - findings
Strengths 1.
2.
3.
4.
5.
6.
7.
8.
Areas for Improvement
1.
2.
3.
4.
5.
6.
7.
8.
25
2. Policy and Strategy - analysis
Criterion (EFQM)
EFQM Excellence Model Requirements Method used, Evidence, Examples How well done? (*)
10 20 30 40 50 60 70 80 90 100
2a_1 Do leaders gather and understand information on short-term and long-term needs and expectations of stakeholders including customers, employees, partners and society?
2a_2 Do leaders find about market trends and results of key competitors?
2a_3 Do information concerning needs and expectations of stakeholders as well as market trends become the basis for the preparation of the company’s strategy?
2b_1 Do leaders monitor the internal performance indicators, trends and factors that can influence it?
2b_2 Do leaders consider the information concerning performance measurement for the input into the strategy?
2c_1 Do leaders develop the policy and strategy of the company on a continuous basis, identify critical success factors, review progress against plans and make adjustment where necessary?
2c_2 Are possible risk that can threaten the achievement of the objectives identified and alternative scenarios/ contingency plans developed?
2d_1 Are there functional processes of strategy preparation, communication and deployment with clearly defined responsibilities and powers?
2d_2 Is strategy transformed into specific targets for individual areas/employees and achievement of these targets regularly evaluated?
(*)
0-10 = approach is not defined or it is in the beginning;100 = approach is well defined, implemented in all relevant areas in a structured way, supporting strategy, linked to other approaches; approach effectiveness, its deployment and results achieved are regularly measured, improvement opportunities identified using existing best practice, benchmarking and measurement results, planned and implemented according to the priority assigned.
26
2. Policy and Strategy - findings
Strengths 1.
2.
3.
4.
5.
6.
7.
8.
Areas for Improvement
1.
2.
3.
4.
5.
6.
7.
8.
27
3. People - analysis
Criterion (EFQM)
EFQM Excellence Model Requirements Method used, Evidence, Examples How well done? (*)
10 20 30 40 50 60 70 80 90 100
3a_1 Are human resource policies, strategies and plans developed and updated?
3a_2 Are employees of the company involved in the creation and development of human resources policies?
3a_3 Does company manage recruitment, career development (succession planning, promotion) on the basis of equal opportunity?
3b_1 Are existing competencies identified and compared to the organisation’s needs?
3b_2 Are training plans used for the systematic development of qualification potential in accordance with the company’s strategy?
3b_3 Are the employees evaluated in order to help them reach their personal and group goals?
3c_1 Are people involved in the company’s development and is their initiative (including improvement activities, conferences, innovation, creativity, team work) supported?
3d_1 Do people within the organisation communicate effectively using both top down and bottom up forms of communication?
3e_1 Are people recognised with different forms of appraisals in order to maintain their initiative and motivation?
3e_2 Are the terms of employment aligned with the policy and strategy of the company (appraisals, etc.)?
(*)
0-10 = approach is not defined or it is in the beginning;
100 = approach is well defined, implemented in all relevant areas in a structured way, supporting strategy, linked to other approaches; approach effectiveness, its deployment and results achieved are regularly measured, improvement opportunities identified using existing best practice, benchmarking and measurement results, planned and implemented according to the priority assigned.
28
3. People – findings
Strengths 1.
2.
3.
4.
5.
6.
7.
8.
Areas for Improvement
1.
2.
3.
4.
5.
6.
7.
8.
29
4. Partnerships and Resources - analysis
Criterion (EFQM)
EFQM Excellence Model Requirements Method used, Evidence, Examples How well done? (*)
10 20 30 40 50 60 70 80 90 100
4a_1 Are key partnerships opportunities corresponding to the company’s strategy identified?
4a_2 Does the company share knowledge with selected partners and organise joint innovation activities?
4b_1 Are the financial resources utilised systematically to support the strategy and policy of the company?
4b_2 Are control mechanisms implemented to ensure the company has effective structure of the resources and is able to manage financial risks?
4c_1 Are all assets including buildings, equipment and materials of the company utilised in accordance with business goals?
4c_2 Are environmental impacts of the company’s operations and its facilities identified and then resolved?
4c_3 Are materials and utilities efficiently utilised and volume of the waste reduced? Is recycling utilised?
4d_1 Does the company manage technology development in order to support stated business goals?
4e_1 Does the company effectively collect, structure and manage information and knowledge, provide access to relevant data to both internal and external users?
4e_2 Is appropriate information technology implemented to support internal communication and information and knowledge management?
4e_3 Is intellectual property respected, developed and protected?
(*) 0-10 = approach is not defined or it is in the beginning; 100 = approach is well defined, implemented in all relevant areas in a structured way, supporting strategy, linked to other approaches; approach effectiveness, its deployment and results achieved are regularly measured, improvement opportunities identified using existing best practice, benchmarking and measurement results, planned and implemented according to the priority assigned.
30
4. Partnerships and Resources – findings
Strengths 1.
2.
3.
4.
5.
6.
7.
8.
Areas for Improvement
1.
2.
3.
4.
5.
6.
7.
8.
31
5. Processes - analysis
Criterion (EFQM)
EFQM Excellence Model Requirements Method used, Evidence, Examples How well done? (*)
10 20 30 40 50 60 70 80 90 100
5a_1 Are the organisation’s processes systematically defined and managed (e.g. with the utilisation of quality systems like ISO and environmental standards)?
5a_2 Are processes stakeholders identified and interface issues inside the company and with external partners managed?
5a_3 Are performance indicators defined and the target values set for individual processes?
5b_1 Is the effectiveness of the processes regularly reviewed using key performance indicators and potential areas for improvement identified?
5b_2 Are there methods used to prioritise opportunities for improvement and implement changes?
5b_3 Is the new process introduction or process change managed and controlled? Are changes reported to all stakeholders and necessary training organised?
5c_1 Are new products and services designed and developed based on customer needs and expectations?
5d_1 Are products (services) delivered and serviced according to customer needs?
5e_1 Are customer relationships managed, monitored and evaluated in order to enhance them?
(*)
0-10 = approach is not defined or it is in the beginning;
100 = approach is well defined, implemented in all relevant areas in a structured way, supporting strategy, linked to other approaches; approach effectiveness, its deployment and results achieved are regularly measured, improvement opportunities identified using existing best practice, benchmarking and measurement results, planned and implemented according to the priority assigned.
32
5. Processes – findings
Strengths 1.
2.
3.
4.
5.
6.
7.
8.
Areas for Improvement
1.
2.
3.
4.
5.
6.
7.
8.
33
6. Customer Results - analysis
Criterion (EFQM)
EFQM Excellence Model Requirements Method used, Evidence, Examples How well done? (*)
10 20 30 40 50 60 70 80 90 100
6a_1 The measures of the customers’ perception of the company’s image
6a_2 The measures of the customers’ perception of the company’s products and services
6a_3 The measures of the customers’ perception of the after-sale service
6a_4 The measures of the customers’ loyalty
6b_1 Internal measures that are used to monitor and improve performance achieved and to predict external customer’s perception of the company’s image.
6b_2 Internal measures concerning the company’s products and services
6b_3 Internal measures concerning after-sale service
6b_4 Internal measures concerning the customers’ loyalty
(*)
0 = no results available;
25 = positive trends/satisfactory performance and targets achieved in about ¼ of relevant areas, comparison with external organisations takes place in about ¼ of areas; some results (about ¼) are caused by the approach applied
100 = strongly positive trends/sustained excellence results in all areas over at least 3 years, internal targets exceeded in at least ¾ of areas, results of comparison with external organisations excellent in at least ¾ of areas and “best in class” in ½ of areas; all results are caused by the approach applied; results address all relevant areas.
34
6. Customer Results - findings
Strengths 1.
2.
3.
4.
5.
6.
7.
8.
Areas for Improvement
1.
2.
3.
4.
5.
6.
7.
8.
35
7. People Results - analysis
Criterion (EFQM)
EFQM Excellence Model Requirements Method used, Evidence, Examples How well done? (*)
10 20 30 40 50 60 70 80 90 100
7a_1 The measures of the people’s perception of the company concerning employees’ motivation
7a_2 The measures of the people’s perception of the company concerning employees’ satisfaction
7b_1 Internal measures used by the company to monitor and predict employees’ achievements
7b_2 Internal measures used by the company to monitor and predict employees’ motivation and involvement
7b_3 Internal measures used by the company to monitor and predict employees’ satisfaction
7b_4 Internal measures used by the company to monitor and predict the level of services provided to the employees
(*)
0 = no results available;
25 = positive trends/satisfactory performance and targets achieved in about ¼ of relevant areas, comparison with external organisations takes place in about ¼ of areas; some results (about ¼) are caused by the approach applied
100 = strongly positive trends/sustained excellence results in all areas over at least 3 years, internal targets exceeded in at least ¾ of areas, results of comparison with external organisations excellent in at least ¾ of areas and “best in class” in ½ of areas; all results are caused by the approach applied; results address all relevant areas.
36
7. People Results - findings
Strengths 1.
2.
3.
4.
5.
6.
7.
8.
Areas for Improvement
1.
2.
3.
4.
5.
6.
7.
8.
37
8. Society Results - analysis
Criterion (EFQM)
EFQM Excellence Model Requirements Method used, Evidence, Examples How well done? (*)
10 20 30 40 50 60 70 80 90 100
8a_1 The measures of the society’s perception of the company’s image
8a_2 The measures of the society’s perception of the company’s performance as a responsible citizen
8a_3 The measures of the society’s perception of the company’s involvement in the communities where it operates.
8a_4 The measures of the society’s perception of the company’s reporting on activities to assist in the preservation and sustainability of resources
8b_1 Internal measures that are used to monitor and improve
performance achieved and to predict society’s perception of the company.
(*)
0 = no results available;
25 = positive trends/satisfactory performance and targets achieved in about ¼ of relevant areas, comparison with external organisations takes place in about ¼ of areas; some results (about ¼) are caused by the approach applied
100 = strongly positive trends/sustained excellence results in all areas over at least 3 years, internal targets exceeded in at least ¾ of areas, results of comparison with external organisations excellent in at least ¾ of areas and “best in class” in ½ of areas; all results are caused by the approach applied; results address all relevant areas.
38
8. Society Results - findings
Strengths 1.
2.
3.
4.
5.
6.
7.
8.
Areas for Improvement
1.
2.
3.
4.
5.
6.
7.
8.
39
9. Key Performance Results - analysis
Criterion (EFQM)
EFQM Excellence Model Requirements Method used, Evidence, Examples How well done? (*)
10 20 30 40 50 60 70 80 90 100
9a_1 Key financial outcomes
9a_2 Non-Financial outcomes
9b_1 Financial indicators (operational measures) used by the
company to monitor and improve processes and predict likely performance outcomes
9b_2 Non-Financial indicators (operational measures)
concerning processes; external resources and partnerships; buildings, equipment and materials; technology; information and knowledge
(*)
0 = no results available;
25 = positive trends/satisfactory performance and targets achieved in about ¼ of relevant areas, comparison with external organisations takes place in about ¼ of areas; some results (about ¼) are caused by the approach applied
100 = strongly positive trends/sustained excellence results in all areas over at least 3 years, internal targets exceeded in at least ¾ of areas, results of comparison with external organisations excellent in at least ¾ of areas and “best in class” in ½ of areas; all results are caused by the approach applied; results address all relevant areas.
40
9. Key Performance Results - findings
Strengths 1.
2.
3.
4.
5.
6.
7.
8.
Areas for Improvement
1.
2.
3.
4.
5.
6.
7.
8.
APPENDIX C SEE ACCOMPANYING DOCUMENT
41
Appendix D
ACTION PLAN Company :
Number Project name Goals/Targets of the project
1.
2.
3.
Activities Result / Evidence Responsibility Deadline Status after 3 months
1.
2.
3.
4.
5.
6.
42
Appendix E
Quality and Delivery of the Action plan
An important part of the pilot programme process was to identify those companies with the most commitment to achieve the improvements necessary to meet MNC
requirements. The quality of the action plan also indicated the ability of management to think through situations and to plan. The delivery of the plan indicated an ability to
prioritise and to convert plans to reality.
Action plan scoring table
No Progress Partial Progress Milestones Reached Completed
Key strategic goals 0 2 4 6
Major goals 0 1 2 3
Minor goals -1 0 0 1
Action plan areas will be classified not only with respect to the nature of the objective, but also its impact and resource implications, as follows:
Key Strategic Goals
Matters that are long -term involve major resources and have implications for the overall direction of the organisation.
They will have aspects of cultural as well as product and process change.
Typically they require robust financial and other resource allocation planning, and are backed by a considerable amount of analysis and have an impact on the whole
organisation.
Major Goals
Shorter term, concerned with major investment in changes of process or product.
Whilst not impacting on the entire organisation they will be significant in terms of asset utilisation.
Will be a contributing part of the strategic plan of the organisation.
Minor Goals
Not of strategic importance in the long term.
Short term adjustments to processes, minor product changes
Activities with a low investment requirement and low resource implications.
43
Generally, it should be noted that the categorisation taking account of not only the nature of the objective, but also its impact and resource implications in the plan period, had a significant effect on classifications. For example, a goal of a new customer focus would not be strategic if it only included in the plan the action of carrying out a customer
survey.