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  1. 1. UFMCO Results of a Strategic Conversation Conducted by UFMCO Management on 23 & 25 August 2011 “There is no „winning‟ strategy. The only competitive advantage you can get is to have better people who understand the business better and who seek the future with a passion…” 1
  2. 2. UFMCO Position in the Strategic vs Operational Management Matrix It can be argued that this is where UFMCO presently resides EXPLICIT STRATEGIC VISION Operationally competent EXPLICIT STRATEGIC VISION Operationally incompetent STRATEGY (What) OPERATIONS(How) + - + - UNCERTAIN STRATEGIC VISION Operationally competent UNCERTAIN STRATEGIC VISION Operationally incompetent X 2
  3. 3. Three Dilemmas of Strategic Leadership 1. Who are we? • our reason for being; • what do we believe and value; • the needs that we exist to meet; • the business that we are in. 2. Where are we going? • how our organisation, • our customers, and/or • society will be different as we progress along the road to reaching the vision 3. How will we get to where we are going? 3
  4. 4. Strategic Objectives (Ends) Strategic Concepts (Ways) Capabilities (Means) UDC Objectives & Vision UFMCO Vision Guidelines & Scope Philosophy Environment Profitability Considerations Product/service characteristics Characteristics of geographical area Rules of the Game Tasks Our Culture SWOT Core Competencies Gaps Strategic Issues Inputs Outputs What are the 4 – 7 issues which, if not addressed, will harm us irreparably, and/or prevent us from reaching our vision? Financial, Customer relationships, Business processes, Learning and innovation 4 UFMCO Strategic Planning Process
  5. 5. Defining the Game • Scope/Boundaries/Guidelines – What is the time horison for this strategy? • Three years – from 2012 till 2015. – What is the product or service delivered? • A sustainable, fully integrated, value-for money facility management service, predicated on best practise and an approach of TQM. – Where do we fit into the product/value chain? • Our focus will be on marketing, selling and service delivery, with accompanied consultant service provision within the three years time horison. – What is the geographical range within which we “play”? • In this period we will attempt to obtain market share outside of TPQ/UDC. After 2012 we will pursue bigger projects, before then we will take projects on board if small. Only in exceptional cases will we consider projects outside of Qatar, if interested investors are available. 5
  6. 6. Defining the Game (cont’d) • Compare the above with: – Our culture • The UFMCO culture will be one of value for money; trust and transparency; a meritocracy in terms of performance expectation from our employees; professionalism; solid expertise; a learning culture premised on Training and Development; strong focus on the retention of human capital - therefore a culture that will attract people and motivate them to stay on; accountability and teamwork; understanding authority and how leadership, management and command and control works. – Core competencies • Know-how and experience; technical competence; strong customer service; knowing our cost structure; understanding/meeting customer expectations; meeting our deliverables; pride in appearance; can-do attitude; positive in the approach to the job; customer satisfaction focused; interchangeable/multi-skilled personnel. – Organisational structure • Flatness is key; span of control is important – up to 6 reporting lines; clear lines of accountability and responsibility for financial and management issues. – Location (for future operations) • Head Office at TPQ; satellite contracts will be co-located at contract locations. 6
  7. 7. The Player’s Circle – Current Position of UFMCO Players/Stakeholders Neutral TPOC UDC HO All UDC subsidiaries COAs For TCAD AM Prospective service providers i.e. waste, pools etc Against Glitter Shield SCM 7 In our SLAs we must show our plan for cost reduction in the long term to show our commitment
  8. 8. UFMCO Rules of the Game Descriptive rules (basic, legislation etc) Normative rules (corp governance etc) Aspirational rules (to win) 8 1. We will always meet our budget or better 2. Repairs will be done right the first time 3. Attendance to calls will be done to 100% within KPIs 4. Immediate follow-up to all queries/complaints 5. We will learn though our mistakes – an embedded lessons-learned approach 6. Our WO processing cost will be the lowest in the MENA region 1. We will always work within UDC’s policies and procudures 2. We will adhere to Qatar labour law in all respects 3. We will adhere to Qatar summer work rules 1. We will operate in an open and transparent manner 2. We will only employ the best sub-contractors 3. We fully support and adhere to UDC’s vision for TPQ 4. Our employees will be properly certified 5. Our sub-contractors will be properly certified We are here to win it!
  9. 9. Our Key Uncertainties 1. The extent of inroads by competitors now and in the future onto TPQ. 2. Changes in labour legislation in future. 3. The future direction of UDC as a company. 4. The lack of transparency at corporate level. 5. Future staff turnover rates. 6. The extent to which TPQ’s completion will be on schedule. 7. The extent to which we will be able to move into the new offices by March 2012. 8. The extent to which the IWMS will be fully operational within one year. 9. The pace and accuracy of data migration to the IWMS – financial data etc. 10. Population rate of the island. 11. Possibility of a double-dip recession and its impact. 12. Speed of staffing up UFMCO. 13. Regional political instability’s impact 9
  10. 10. 10 Overkill Scenario Sunrise Scenario Sunset Scenario Rubber-band Scenario Demand for UFMCO Services UFMCOCapabilitytoDeliver HighLow High X (2011) X (2012) X (2013) X (2015) UFMCO Scenario Game Board (possible alternative futures) Preferred playing field for which to strategise
  11. 11. 11 Scenario Characteristics and Triggers Characteristics • Demand for services declines • Own budget and capabilities still sustain – even if only temporaly Triggers/Warning Signs • Double-dip recession • Investors pulling out • Significant delays on completions • Stagnation in development • Retail closures Characteristics • Increased roll-out of UFMCO services • UFMCO growth • TPQ growth Triggers/Warning Signs • Pick-up in sales • Accelerated construction • Many calls for services • Rapid filling of UFMCO positions Characteristics • Low/decreasing demand for UFMCO services • Decline in UFMCO size & capability Triggers/Warning Signs • Cut in UFMCO budget • Loss of customers • Decrease in personnel size • Decrease in income • Depopulation of island • Increase in competitors • Double-dip recession • Investors pull out • Stagnation in development • Many come-backs/re-works Characteristics • Increased demand for UFMCO services • Decreasing ability to deliver Triggers/Warning Signs • Many calls for service • Accelerated TPQ development • Decrease/stagnation in UFMCO budget • Decrease in personnel size • Loss of critical skills • Possibly decreased competition • Delays in filling positions • Delays in up-skilling staff Overkill Sunrise Sunset Rubber-band
  12. 12. SWOT Strengths Weaknesses Opportunities Threats Internal Analysis External Analysis CONVERSION STRATEGIESMATCHINGSTRATEGIES 12
  13. 13. 13 • Competitors in Qatar • Delays in handing over other parts of TPQ • Loss-leading competitors • IWMS implementation failure • Loss of key manpower • Customer perceptions re service delivery • Political instability outside the borders of the Qatar • We are operating potentially in a captive market • All towers are potentially there for the taking • More business will emerge as TPQ is completed • UDC businesses as target market • Residential packages as target market • Potential partnerships – locally and regionally • We can now cement existing relationships and contracts (while under low pressure) • Value added services added to portfolio • Volume leveraging • To develop and grow a new entity with due consideration to best practice principles, as well as best fit for UDC • Lack of training • Lack of human resources • Lack of an IWMS • Reliance on mandated subcontractors • We are still stuck at operational level • Corporate inertia for recruitment, payments etc • Lack of policies and procedures • Try to please everyone due to lack of policies and guidelines – self-pressure • E&C non-alignment to the common cause • Lack of adherence to processes • Lack of regulatory framework • Current cost/overheads structures • Poor relationships with supply chain partners • UFMCO is an established company with “full” setup • We are on the ground prior to SLAs signed • We have detailed local knowledge • It is a new business – we can shape direction • Drive and know-how of senior management • Established customer base • Experience and diversity of staff with international experience Strengths Weaknesses Opportunities Threats CONVERSION STRATEGIES MATCHING STRATEGIES
  14. 14. Strategic Issues 1. How to rationalise the pay structure within UFMCO. 2. How to ensure that Manhattan IWMS delivers optimally within one year of implementation. 3. How to ensure that we obtain a clear picture of who our competitors are, and their associated strategies. 4. How to ensure that we obtain optimum market share on TPQ within the next three years. 5. How to ensure that we develop the best quality manpower within an FM company in the MENA region. 6. How to ensure that our facilities and infrastructure will be fit for purpose. 7. How to position ourselves as the FM company of choice within the MENA region. 8. How to ensure that UFMCO operates profitably from Day 1. 14
  15. 15. The Plan Strategic Issues Strategic Objectives Activities Deliverables How to rationalise the pay structure within UFMCO. By 2012, remove inconsistencies across all pay structures and correspondingly motivate staff to perform within pre-set parameters and performance guidelines so that they understand the concept of value-for-money and their role in it. 1. Establish HR capability 2. Undertake market study 3. Educate staff 1. New pay scales 2. Performance management structure 3. Oriented staff How to ensure that Manhattan IWMS delivers optimally within one year of implementation. By November 2011, ensure that our investment in the IWMS aligns with the business expectations, by having a plan in place that will align with our business concept. 1. Develop the plan 2. Develop the processes & rules 3. Upload data & rules 4. Appoint resources 5. Do user acceptance testing 1. The Plan 2. Seamless workflow 3. Cost transparency 4. Client information interface 5. Info on HR 6. Benchmarked data 7. MIS structure 8. SLA monitoring &control How to ensure that we obtain a clear picture of who our competitors are, and their associated strategies. By March 2012, develop a competitor analysis capability that will continuously track competitors and their aims according to pre-determined criteria. 1. Identify service provider 2. Develop competitor profiles 3. Develop in-house monitoring capability 1. Identified service provider 2. Develop analysis system 3. Develop capability 4. Firm competitor picture How to ensure that we obtain optimum market share on TPQ within the next three years. By January 2012, TPQ contracts to be put in place for MC, Assets Retail, Assets Residential, TPQ Other, UDC VB29,TH16-18, UDC UFC/HDC By November 2012, acquire a level of business commensurate with our optimum capability and ambitions so that we are correctly positioned for the next 3 years. 1. Approach prospective clients and pitch for business 2. Develop a business development plan 3. Ensure infrastructure is in place 4. Develop marketing plan 5. Benchmark services against external ser- vice providers 6. Do customer surveys 1. Business development plan and strategy 2. Marketing plan 3. Embedded customers 4. Market segmentation study 15
  16. 16. The Plan (cont’d) Strategic Issues Strategic Objectives Activities Deliverables How to ensure that we develop the best quality manpower within an FM company in the MENA region. By May 2013 we will have the best people in the business across every category and discipline, compared to similar companies in the MENA region. 1. Develop and implement career progression plans 2. Develop all JDs according to ISO standards 3. Undertake TNA for the whole company 4. Undertake benchmarking with MENA competitors 5. Develop a skills database 6. Develop training programmes 7. Develop the training academy 8. Develop an esprit de corps plan 9. Track best HR trends and research 10. Develop incentivation schemes 1. Training plans 2. Selection process 3. Recruitment plan 4. Retention plan 5. Career development plans 6. Esprit de corps plan 7. Standardised JDs 8. UFMCO Training Aca- demy Plan 9. Staff welfare plan How to ensure that our facilities and infrastructure are fit for purpose. By December 2011, obtain ISO Accreditation for TPQ and UFMCO business. By August 2012 UFMCO will be equipped with the necessary tools, equipment and infrastructure that will allow it to pursue all the other strategic objectives without prejudice due to non- optimal support capabilities. 1. Develop the SCM capability 2. Embed the financial management capability 3. Develop the warehouse and related infrastructure 4. Develop the UFMCO offices 5. Implement the OC3 systems requirements 6. Obtain ISO accreditation 1. SCM process and infrastructure in place 2. Budgeting and costing mechanisms embedded 3. Operational warehouse and satellite capabili- ties 4. UFMCO offices occu- pied 5. OC3 system of systems plan operational 6. ISO 9001/14001/18001 certified 16
  17. 17. The Plan (cont’d) Strategic Issues Strategic Objectives Activities Deliverables How to position ourselves as the FM company of choice within the MENA region. By February 2013 UFMCO will be aggressively marketing itself as the FM service provider of choice within the MENA region, with the aim of winning at least one out-of-Qatar contract within that year, and positioning itself for further growth in subsequent years. 1. Mature and expand the marketing strategy 2. Optimise the UFMCO branding with outside assistance 3. Develop the OC3 as a force multiplier for selling business, by utilising inter alia CRM data 4. Investigate JV potential 1. Enhanced marketing strategy 2. New branding 3. Identified JV potential 4. Optimised OC3 5. CRM system in place according to world best practises 6. New three year strategy in place How to ensure that UFMCO operates profitably from Day 1. By December 2011 UFMCO will have in place a financial management system that will support profitable operations and that will be aligned with all accounting practises and requirements, ensuring that financial transactions are planned for and recorded according to best practises, and that the UFMCO financial statements will be best of breed in the UDC stable. 1. Implement a proper and reliable budgeting capability 2. Everything must be clearly scoped in the context of putting together a budget 3. Ensure that UFMCO is cash positive from day 1 4. Establish a proper funding relationship 5. Implement the financial system must be implemented 6. Employ experienced accountants 7. Review fees and costs 8. Establishing frequent management reporting system 9. Benchmarking operational and management costs to ensure competitiveness 10. Financially educate all managers 1. Budgeting system 2. Financial statement formats 3. Experienced accoun- tants in place 4. Monthly financial statements with meet- ing 5. Identified variance tole- rances 6. Financially educated managers 7. Comprehensive dele- gations for expenditure – CAPEX/OPEX matrix 8. Identified fee and cost structure 17
  18. 18. UFMCO Business Concept 18 Our Strategy is to provide the best facility management services by focusing on differentiation. We will differentiate ourselves by our ability to align our service development, customer knowledge, and rapid response capabilities with our customer’s requirements, and by being able to understand and accommodate varied and diverse customer needs. Our Focus will be customer-driven. We will concentrate on market segments within the MENA region where we can make a difference in the provision of our unique facilities management offering in the premium market segment. Our Core Competencies will be speed, precision, and our ability to tailor-make solutions for bespoke customer requirements. Our Intent is to achieve the Sunrise Scenario within the next three years, in the process becoming recognised as thè leading facilities management company in our niche market segment. To achieve this our Vision is to be a first choice facility management partner in the premium segment in Qatar and the MENA region – and an international benchmark for facilities operations and maintenance. Our Mission in support of this is that UFMCO will be viewed as a highly successful provider of facility best practices and sustainer of the work and living environment. We will understand customer requirements and surpass their expectations. We will succeed in a rapidly changing environment. We will create a facility management organisation that is alert, quick and fun to work for.