BPBPAmocoAmoco Finland FinlandExecutive summaryExecutive summary

June 21, 2000June 21, 2000

Lauri Eskola

Daniel Messmann

Essi Keltomäki

Jani Ojala

Petteri Urmas

Agenda

• Overview

• Organizational structure

• Job description, job specification

• Recruitment and selection

• Training

• Appraisal and compensation

Mission statement & Values

”We involve our whole value chain to provide high quality products to our customers 24 h a day. Our business is serving the motoring public.”

Our core values are:• environmental and ethical responsibility

• employee satisfaction

• totally meeting customer needs

Objectives I

• BPAmoco Finland will become the regional center of excellence– Establish a valid model for Russia and Baltics– Train personnel in Finland

• Build market share by creating a strong brand name– Permanent and wide availability– Superior service– BPAmoco quality image

Objectives II

• BPAmoco best practices utilized:

””Think Globally, Act Locally”Think Globally, Act Locally”– long-term internal and external relationships– promote cost-effectiveness– Provide standardized and high quality product– location close to population centers and main

transportation routes.

Policies I

• Have the right person to do the job– promote from within if possible– employ local personnel if possible

• Regular measurement of performance• Individual goals vs. corporate goals• Flat structure, efficient and flexible

organiaztion• Corporate culture

Policies II• Build long-term commitment and seek for

potential talent• Employee empowerment• Make use of technology

– reduction of labor costs– effective communication– up-to-date information

• Importance of communication• Outsourcing

Organizational Chart

BPAm oco RussiaVP Russia

BPAm oco BalticsVP Baltics

Assistant FacilityM anager

Facility M anager

Capital AreaRegional M anager

Assistant FacilityM anager

Facility M anager

W est Finland AreaRegional M anager

Assistant FacilityM anager

Facility M anager

East Finland AreaRegional M anager

Assistant FacilityM anager

Facility M anager

North Finland AreaRegional M anager

BPAm oco FinlandVP Finland

Corporate Functional team

M arketingVP M arketing

FinanceVP Finance

HRMVP HRM

Purchase & LogisticsVP P&L

CEO Finland &Board of Directors

BPAm oco UK Headquarters

Outsourced Activities

• Legal assistance • Maintenance• Security• IT- services• Logistics• Some HRM activities

• Corporate level vs. Facility level– importance of communication and coordination

Analysis of the Organizational structure

• Distribution of responsibility and clearly divided tasks

• Outsourcing concentrate in our core competences

• Decreased hierarchy– improved communication

Board of Directors

• Members– CEO Finland– VP Finance– BPAmoco Representative– Recognised executives

• Tasks– control and expertise– relations to UK HQ– community relations

Management Team

• Members– CEO Finland– Functional VP’s

• Finance, Marketing, HRM, Purchase & Logistics

– Country VP’s

• Tasks– setting overall strategy; visions and values – cross-functional operations

CEO FinlandDuties

• “The Captain”

• Reporting to BPAmoco UK HQ

• Providing vision and strategy

• Running the operation– Communicating with

Country VP/Functional VP

• Keeping contact with local authorities

Specifications• Master´s Degree• 12+ years of

experience in top mgmt• Strong leadership and

communication skills• Russian language skills

preferred

Country Vice President

Duties• Reports to the CEO• Communicating with

functional VP´s and Regional Managers

• Implement and control business plan

• Supply strategic visions

Specifications• Master´s Degree• Fluent in English and

local language• 10+ years in upper

middle mgmt position• Great knowledge and

understanding of the culture and market

Functional VP

Duties• Reporting to CEO

• Interaction to other VP´s

• Short and long term planning

• MKTG: 4 P´s (price product, placement, promotion)

• Finance: Investment planning and control

• Logistics: network

Specifications• Master`s Degree in their

area

• Fluent in English

• 10+ years in middle mgmt position in their field

• Strong interpersonal/facilitation skills

• Team work attitude

Human Resource VP

Duties• Recruitment program• Implement corporate policies and values• Relationships with unions• Compensation• Training• Performance appraisal

Regional Manager

Duties• Reports to country VP

• controls and supervises Facility managers

• Observing outsourcing evaluation

• Organizes area development/activities

• Manages the regional budget

Specifications• Bachelor´s degree

• Fluent in English and Finnish

• 8+ years of experience in management position

• Willingness to travel regionally

• Strong communication and interpersonal skills

Facility ManagerDuties

• Reporting to Regional Manager

• Responsible for Ass. Facility Managers

• Responsible of controlling and coordinating the complex (e.g. mktg,promos)

• Evaluates outsourcing needs

• Implementing community activity

Specifications• Bachelor´s degree• Fluent Finnish, good

skills in English• Ability to work

individually and in a team• some years of previous

work experience in service industry

Assistant Facility ManagerDuties

• Reports daily to Facility Manager

• Oversees quality of franchisees

• On-site manager of facility

• Takes care of maintenance and repairs

Specifications• Polytechnic degree• Fluent in Finnish,

moderate skills in English

• Some previous service work experience

• Self-motivation and willingness to adapt

• Ambition for future advancement

Job markets• Finland

– Adequate supply of applicants for entry-level positions

– Weaker candidate pool for mid-management

• Baltics and Russia– Sufficient pool of qualified applicants

Recruitment by position:

• CEO and VPs– Internal recruitment and Headhunters

• trade-off corporate vs. local culture

– Aim is to create a mix of expertise in corporate and Finnish cultures in the upper management

Recruitment by position:

• Regional Managers– Professional organizations– Business newspaper ads – Internet– Internal recruitment in the future

Recruitment by position:

• Facility Managers and Assistant Facility Managers– Internet– Universities and Polytechnics

• Career Fairs

– Educational institutions– Public Employment Agencies – Newspaper ads

Recruitment of trainees

– Internet– Universities and Polytechnics

• Career Fairs

– Newspaper ads combined with the ads of Facility Managers and Assistant Facility Managers

Supervisory interview

Medical examination

Hiring decision

Selection process

Initial interview

Employment tests

Background investigation

Preliminary selection

Application screening

Employment tests

• Psychological and honesty test

• Teamwork ability test– Standardized measure of behavior– Prediction of job performance

Background investigation

• Check references and work history

• Good citizen (criminal record)– Reliability of applicant– Personal opinions of applicants,

acquaintances – Deeper understanding of applicant

Preliminary selection

• Ranking of applicants based on previous processes– Initial interview– Employment test– Background investigation

• Select the best candidates for “second” round

Supervisory interview

• In depth panel interview, behavioral type questions

• closest supervisor, consultant and representative of HR department – Multiple opinions– In depth knowledge about applicants

behavior and decision making capabilities

Medical examination

• Test held by professional medical institution– Drug test– Physical health not the basis for selection

• Protection against possible later law suits

• Concern about the welfare of employees

Hiring decision

• Final decision that is based on all of the tests and interviews conducted – Goal of the whole application process

Initial Selection Process

Application Screening

Initial Interview

Employment Tests

Background Investigation

Preliminary Selection

Supervisory Interview

Medical Examination

Hiring Decision

CEO and VP’s

HR UK

Outsourced

HR UK

HR UK

HR UK

BPAmoco UK

BPAmoco UK

Outsourced

Initial Selection ProcessOther positions

Outsourced

Outsourced

Outsourced

Outsourced

Outsourced

BPAmoco Finland

Outsourced

BPAmoco Finland

Application Screening

Initial Interview

Employment Tests

Background Investigation

Preliminary Selection

Supervisory Interview

Medical Examination

Hiring Decision

After start-up

• The selection process conducted entirely by the Finnish HR Department– employment tests outsourced– medical examination outsourced

• BPAmoco UK has the power to hire the CEO and VP’s

Training

• HR department and managers scan the workforce and identify training needs

• Objective: Balancing individual KSA’s and organizational needs and goals

Orientation Package

• Copy of specific job goals and descriptions

• List of training opportunities• Copy of policy handbook• Current Organization Chart• List of key terms unique to the industry,

company and/or job• List of employee benefits

General Training Objectives

• To promote loyalty to the organization

• To increase productivity and profitability

• To improve work environment and employee morale

• To enhance career advancement and development

Top Management

Training Program

• Preliminary orientation session in the UK by HQ– Objectives:

• Creating common corporate culture and internalizing policies and procedures

• Building internal relationships• Easy information flow and

communication

• Continuous Training

– Seminars and conferences– Computer based training (internet)– Crisis management and conflict resolution– Russian and Baltic business practices,

environment and culture– Weekly video conferences with the UK

headquarters

Regional Manager Training Program

• Orientation period in the UK by HQ

– Objectives:• Internalizing corporate culture, procedures

and policies• Improving leadership and communication

skills• Building positive organizational

atmosphere

Facility Manager and Assistant Facility Manager Training Program

• Orientation objectives:– Internalizing corporate culture, procedures

and policies– Franchisee relations– Quality control management

• Continuous training of Regional, Facility and Assistant Facility managers

• Training in cooperation with the HR department and consultants – Coaching of facility management by

regional management– Staff meetings– Computer based training – Technological advancement– Leadership skills

• Partnership training with universities

– BBA

– MBA

• Company policy is to encourage personal development– study leaves– study-work schedules– financial support

Career Development

Internships

• Objective:– To create a recruitment pool for future

employees

• Provided for students

• Better opportunity to enter the company as an Assistant Facility Manager

• Methods: – On the job learning, mentoring, coaching

Management Trainee Programs

• Objectives:– develop management abilities and

knowledge in practice – partnerships with polytechnics and

universities– in-class training– job rotation (facilities, HQ) – monthly meetings with other trainees – case studies

Baltics And Russia

• Experienced managers trained in Finland start the expansion in Russia and the Baltic region– Russian HR department trained in Finland in

the future

• Similar training programs held in Russia and the Baltic region

Purposes of Appraisals

• Basis for organizational productivity– Developmental purposes– Administrative purposes

• Identification of strengths and weaknesses

• Fair appraisal

Appraisal Methods

Critical Issues

• Error possibilities

• 360° and MBO cons

• Cultural characteristics

Compensation Policies• Pay for performance• Competitive base salaries• Incentives (merits, bonuses, stock

options)• Indirect compensation • Salary ranges for each management level• No pay secrecy - open policy

• CEO: FIM 600 000-750 000• Country VP: FIM 450 000-550 000• Functional VP: FIM 430 000-530 000• Area Manager: FIM 270 000-350 000• Facility Manager: FIM 200 000-250 000• Ass. F. Manager: FIM 150 000-180 000

Salary Ranges forManagerial Positions

Stock Pension Cell Option Plan Merits Bonus Car Phone

C.E.O. yes yes yes yes yes yesCountry V.P. yes yes yes yes yes yesFunctional V.P. yes yes yes yes yes yesArea Manager yes opt. yes yes opt. yesFacility Manager yes opt. yes yes opt. yesAss. Facility Manager yes opt. yes yes no yes

Recommended Compensation Model

Additional benefit packages

• Domestic employees– Depending on the position– Employee can choose the content– FIM 20000-65000

• Finnish employees abroad

• Foreign employees in Finland