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Posts Tagged ‘Saudi business’

Saudi Female Engineers

24 Dec

Image via: David Castillo Dominici/freedigitalphotos.net

For everyone not familiar with the dynamics of the Saudi society, this piece of news would sound both shocking and funny at the same time, and not to mention embarrassing for us, Saudis!

Finally, and starting from the academic year of 2012/2013, Saudi females will be able to join the engineering school of King Abdulaziz University (KAU) in Jeddah (read this)! Yes, Saudi females were not able to study engineering!! And please do not get so overwhelmingly excited, they will only be able to join either electrical or industrial engineering majors, not all disciplines of engineering!

Let’s look into this news from two major angels:

  • Academic: 

Let’s be positive here and say it is a good step that is coming pretty laaaaaaate! And let’s hope the rest of engineering disciplines will open their doors to females soon; I am not seeing why we cannot have female mechanical, chemical, and civil engineers!

  • Market Demand: 

For a country that has a lot of money and want to invest in its future, engineers and scientists are the ones usually carrying such a burden on their shoulders, so yes, the market demands a lot of qualified engineers. Ok, that was the theoretical part. Now let’s face reality, the real practice of engineering in Saudi is very minimal. That should not come as a surprise for a country that is totally dependent on imported technologies. We are not producing technologies and manufacturing methods, and consequently, we are not active in research and development. And guess what, engineers are needed in these sectors, the ones we do not really have!

Engineers in Saudi are mostly engaged in project management; they use their general knowledge of engineering in managing projects carried out by international vendors; the big players who really produce the technology!

The market in general is so competitive, add that to the remaining problems of the Saudi  job market such as being unorganized and dependent on connections rather than qualifications (i.e. was6a) and you would end up with this conclusion: with or without female engineers, the market is already a miss!

Lastly, the dean of the engineering school at KAU kept repeating and emphasizing on the initial salary of SAR15,000 ($4,000) that ‘HE THINKS’ Saudi engineers receive upon graduation, and I really hope the dean would retest his confidence after truly surveying the job market! I am not sure if the dean is familiar with the trend that started to get intense during the last couple of years among the big Saudi firms; the trend of depending on subcontracts and outsourcing! Without any clear guidelines or rules, these companies started to minimize their direct hires and outsource internal positions to subcontracts with very minimal benefits whether we are talking salaries or training and development. And of course that is done with the intention of saving more money, or let’s be honest, it is all about more profits and bounces for the big heads. So what you end up with is nothing but  poor quality employment conditions and underdeveloped staff!

Despite all that … welcome to the Saudi female engineers!

*Image Source

 
8 Comments

Posted in Human Resources, Saudi business

 

The GCC’s Top 10 Employers

16 Oct
Image via: digitalart / freedigitalphotos.net
Admit it, you either want to work in a great company with a brilliant working environment, or you want to have your own business and create that awesome working environment.

Arabian Business.com took it on its shoulders to provide us with yet another benchmarking list of the top 10 GCC employers. If you are already in one of them, lucky you, you have been selected. If not, you may have another
opinion and think that your workplace is among the best already, or you could just watch and weep!!

According to the magazine, its researchers conducted a study to determine the best employers in the GCC area. The following items have been used in its comparison list: salary, benefits, chances of promotion, working conditions, perks — and also the quality of the people you will be working for.

Before giving you the list of companies and a link to the website; I have some comments of my own:

-         I have a problem with the methodology, because it is not there! We do not know or have any details about how Arabian Business conducted its research. Questions such as which companies did they approach?
How did they receive the response? and others are not answered! The claim to name a company as a best employer is a considerable one! And in my guess, it is difficult to measure! In all cases, it is not bad to be exposed to some of the professional companies’ practices.

-         Believe it or not, there is not a single Saudi company in the list! It’s shocking to be honest. Yes I
voiced out my concerns about the research methodology, but still, the absence of Saudi companies is alarming and could be used as a justification to re-think our managerial practices.

-         In almost all of the top 10 companies, there is a reference in a way or another to the importance of
work/life balance and the importance of investing in the human element. Or let’s put it in this way, in the selected companies, apparently there is an understanding of the importance of creating a winning culture! Modern management is very clear; have an empowering environment, you will definitely have satisfying rewards and results.

-         While going through the list I remembered one of the concepts Collins and Porras discussed in their
very well known book ‘Built to Last; Successful Habits of Visionary Companies.’ The concept states that successful companies built their whole existence around a core ideology that is beyond making profits. Of course companies are the in the market to make money, but this is not all. They have a reason behind their existence. In the list, you can see examples of companies having the ideology of developing people, or building communities and so on. This is definitely a challenge.

The introduction to the list can be found here, and the companies profiles could be browsed starting from here.

And this is the summary of the list:

  1. Emirates Airline.
  2. MH Alshaya Company.
  3. Omnicom Media Group.
  4. Batelco.
  5. Emaar.
  6. GE (General Electric).
  7. Standard Chartered.
  8. Qatar Foundation.
  9. Siemens.
  10. Aramex.

 

* Image Source

 
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Posted in General Management, Saudi business

 

Business Cultural Differences

18 Jun

The French language is consuming most of my free time these days, that’s why I am finding it hard to sit down and write for the blog. But as long as we are talking about languages, it might be good to visit the idea of cultural differences and its effects on the business world.

No need to emphasis on the importance of globalization these days, it is already beyond denial and arguments. In few words, globalization is a fact of life.

So for those working oversees, or assigned to represent their local companies on an international level, they are actually representing their own culture!

The culture of organizations, or how we run businesses around here as most of MBAers must be familiar with, are deeply rooted in the cultures and background of the environment where those organizations have grown at. For that, whenever international contracts, meetings, negotiations, or standardization are taking place, there are the effects of mutual cultural understanding and respect hovering in the background. In a lot of time, it is a make or break point … yes it is that important.

Hence, it is a common practice for companies with multinational staff and global relations to promote cross cultural respect and understanding. You will always hear tips like the French are so sensitive about the used language, Germans are so meticulous when it comes to technical specifications, Japanese are so quite and do not like to be looked in the eye, it is a sign of disrespect and so on (more interesting info on this link.)

So what about us, Saudis:

  • Quality & Standards: I remember talking with an American friend working in a multibillion company in the US about why they are not doing business in KSA although they are operating in most of our neighbor countries. He said ‘we tried it before and it was a mess!! Your engineers were demanding speed over quality, easy fixes over solving the roots of problems, and simply, we cannot jeopardize our name doing that!!!’
  • Punctuality: keeping an eye on time is not among the best traits of Saudi executives (or Saudi populations?). You could have a meeting with a Saudi CEO and wait in his secretary office for an hour or so! And once you are actually in the meeting, the common professional meetings practices are not usually there or at least not followed or highly regarded (e.g. agenda, MoM, participants, etc).
  • Relationships: business deals are closed and projects are awarded based on trust and relationships rather that qualifications in most of the situations. Saudis, and Arabs in general, are so sensitive when it comes to their relationships and friendship with others. Liking you on a personal level could have a major effect on the professional dealings at hands.

These are only some remarks on the Saudi business’s culture. It is common, yes; but that does not mean that there are no exceptions!

 
1 Comment

Posted in Communication, Communication, Culture, Saudi business

 

Iconic Companies

28 Apr

Less than 10 days ago, Barack Obama, the president of the United States of America, paid a visit to the headquarters of this decade sensation, Facebook, Inc.

There are many angels where you could look to this visit from, the political angel is no doubt the largest. After all, the visit is a part of the president’s agenda to promote certain politics and to stimulate funds for his upcoming reelection efforts. However, there is another important dimension to this visit, it is acknowledging the significance, the symbolism of Facebook to the whole American business image. Read more this visit here & here. And this is a video as well.

There are companies that turn to be icons representing their countries’ capabilities and competitive edges. The United States has no shortage of supply in this department; you name it, Ford, GM, GE, Apple, Google, etc. In the UK, BP, HSBC, Vodafone group, etc. In Germany, Allianz Worldwide, DaimlerChrysler, Siemens, etc. In Japan, Toyota, Honda, Sony, etc.

Now the question is; which Saudi companies would fall into such category?

Tough question, don’t you think? I can only think of Aramco and SABIC, noting that they are mostly governmental institutions and their operations are based on the country’s natural resources. But still, they are definitely symbols on the the Saudi business scene.

Honestly, it is a bit disturbing to find it hard to think of iconic companies to represent a country that enjoys a powerful economic status as Saudi Arabia, a country that enjoys a seat on the G20!

Anyway, maybe it is appropriate here to mention that the Forbes list of the biggest global 2000 companies mentions 15 Saudi companies (public companies, so Aramco does not count!). SABIC performs well, and comes at the rank of 95 (out of 2000 of course). STC is not doing bad either and comes at 334. You can go through the list in here, however, I would not say that these companies qualify to be iconic (it’s debatable topic though!). This list is compiled based on many factors, assets, profits, etc. To be iconic means that you are bringing something new and special to the table, that you have traditions and exemplary managerial practices, I am not sure any of those companies do any such thing (except for SABIC, for some extend at least!)

What do you think?

 
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Posted in General Management, Saudi business

 

SCTA; Dreaming is Not Enough

30 Mar

I do not want to sound so harsh on the Saudi Commission for Tourism and Antiquities (SCTA), but I have to honestly say that I cannot relate to, or should I say believe, most of their advertising and PR campaigns!! I mean … come on people … are we using the same dictionary to understand what the word ‘tourism’ means? or you have your own definition of it?!! (check out this earlier post about SCTA.)

Now check out this piece of news with me, SCTA is saying that by the year of 2020, the tourism sector in the country will be creating more than 2 million jobs! Now seriously, 2 million jobs!! Where and how? Reading such news would leave you under the impression that the tourism is actually booming in the country, the question is, where? I cannot see it!!

On the other hand, read about these 44 graduates with tourism management diplomas who cannot find a job in the claimed to be booming sector!! I said 44, not 44 thousands or any thing!!!

What is the point of this post?

The point is that we want to see real improvements, we would really love to see our country filled with tourism facilities and activities, real ones! and would love to witness its heritage and mixed cultures put into appropriate presentation. And all this being surrounded with a true tourism culture and services.

What we do NOT want to see or hear is promises after promises without anything that could be seen or touched first hand. It is more than 10 years now since the start of SCTA, and I believe 10 years are enough to start witnessing something real. Dreams are good to start with, but they have to be realized sometime soon!

 
4 Comments

Posted in Culture, Public Relations, Saudi business

 

The Friday of Royal Decrees

18 Mar

Beside its religious importance for Muslims, Friday seems to be taking another level of significance for Arabs nowadays. It is the day of change or, at least, cries for change.

For Saudis, this Friday was the day of royal decrees. A series of decrees that touched down on most of the ‘operational’ hot topics currently discusses by Saudis everywhere. And I am saying ‘operational’ just to differentiate those topics from the ‘organizational’ ones that are also discussed especially on the more elite levels!

From where I stand, I see these decrees as another leap forward. They have been strategically thought through and have been designed to give immediate, short term, and long term returns.

These are the most important points which sopped me:

  • According to the analysis of Saudi-Fransi bank (mentioned in this tweet), this Friday’s decrees would need about SAR 350 Billion to be covered. Adding this to the measures taken less than one month ago, about SAR 485 Billion (about 29.7% of the last year’s GDP) is entering the Saudi Economical cycle. That is a huge amount of money that should be looked at by both enthusiasm and caution. Enthusiasm because this amount of money means new projects, stronger infrastructure, healthy flow of cash, new jobs, and new economical opportunities. Caution because such huge amount of money could lead to inflation and commodity prices increase. The Saudi financial authorities are certainly up for a challenge this year; let’s just not open the topic of budget and reserves now!
  • The most important decree, in my opinion, was the one dictating the creation of the governmental anti-corruption committee. It is the committee that is supposed to be fighting both administrative and financial corruption and misbehaving within the governments’ work. I would like to stress on the administrative part of this committee work. It’s just about time we truly think about our project management practices in contracts awarding, quality of work, and I hope they will add the principle of ‘citizen services’ to this committee’s list of duties. Let their slogan be ‘to modern management and less bureaucratic practices.’
  • The health care sector took a lion share of the incentives as well. Again, with the new hospitals and research centers, the principles of quality medical services should be integrated to the formula.
  • The 500,000 housing unites all over the country are a good start. I wish this move would prove itself worthy and can be generalized on a later stage to be a project of citizens housing similar to what is happening in UAE and Qatar.

Now the success of these points, and the rest mentioned in the remaining decrees, are subject to the sincere implementation of those entrusted with the work as ‘public servants.’ This is the time for innovative ideas and creative new ways of getting the job done. Saudi Arabia and Saudis have all potentials to positively change and catch up with the rest of the world.

 
2 Comments

Posted in Culture, General Management, Saudi business

 

Resign before being Hired

16 Mar

I have read this story in the article of Ali Al Zamel published in Okaz on the 20th of February. I have to say that it is one of the strangest stories I have ever came across in my management studies and readings!!

The story could be summarized in few words; before signing the new job contract, you should sign your resignation first!! Yes, you read it right!! This new and extraordinary and innovative hiring method is the brainchild of one of those who thinks that they are true leaders, and Allah only knows how did they reach their positions!

The justification provided by this super-leader is that ‘I will ensure your loyalty and dedication to work, If I did not like your performance at any time, I can easily dismiss you!’ … wow, what an environment that is full of motivation!

I am usually astonished by such kind of managers who for a moment totally forget the responsibilities of their job and start acting as if they are actually owning people and that the work place is their own backyard!

I am quite sure that the work place where this super-manager is controlling is nothing far off a graveyard of souls. I am sure staff are mostly disengaged, live in fear, unmotivated, totally burned, and their performances must lack the basics of quality standards. And I really hope that their job does not involve face to face customer service!

I am inclined to believe that the manager in the story is working in the public field (I guess we got a hint now on why most of public servants are underperforming!!) and I really hope someone would complain and make a fuss about this manager, and anyone similar to him. We really need to clean our managerial environment from those incompetent performers and under qualified mentalities.

 
4 Comments

Posted in Human Resources, Leadership

 

Aramco, again?!

17 Feb

If you follow up on Jeddah and its ‘missions impossible’ projects, you must have heard by now that Aramco, the national oil company, has been brought in to help managing the draining and sewage projects in the city (here)!

We certainly hope that it will succeed in its mission, the city of Jeddah and its people are desperate for any little spark of hope!

But I have to say that I am bit, a tiny bit, restless about this news!

It seems that it is turning into a habit to bring in Aramco whenever the government is facing challenging projects. The expertise and reputation of Aramco as a company that has a powerful and effective project management practice and supporting culture seem to be always the last resort of the Saudi government. They have been asked to look after the construction of KAUST, followed by the supervision of the King Abadullah sports city also in Jeddah.

Let’s try to throw some points around here:

  • Given that Aramco is, in a way or another, a governmental organization, a one may wonder, why is it orbiting in another galaxy when compared to the remaining public organizations? Yes, I do agree that the culture of disciplined professionalism of the organization is rooted in the history of its origin, the question stands still, how come no body thought of transferring its experience and practices to other organizations?? Why no body thought of copying its recruiting and training practices so we could eventually have Aramco in each and every public organizations??!!
  • Stripping some organizations the right to carry on their projects and bring Aramco instead is a clear declaration of incompetency of those organizations! For example, whether Jeddah Municipality likes it or not, the message is clear and simple, they are not entrusted with this project?!! So again, back to the first point, why? Aren’t they both Saudi public organizations?
  • The last point is direct, if the managers of a certain organization are not performing well and cannot be even entrusted with projects in their own field of responsibility, why keeping them? If they cannot be trained or developed, then there is no escape from the inevitable, they should be sacked!

 
4 Comments

Posted in General Management, Project Management, Saudi business

 

The New Middle East

14 Feb

So Ben Ali ran away, Mubarak stepped down, and only Allah knows who is next??

This is the situation in the Middle East these days. It is boiling with talks of freedom and democracy, with hopes and dreams that are flying around in the form of tweets and Facebook feeds, and of course, with fears of turmoil and instability!

Amongst these circumstances, people of Egypt, and most of Arabs, started to celebrate the departure of Mubarak. I cannot even count the number of SMSs, tweets, and Facebook feeds that I have come across these past couple of days which were filled with terms like: victory, power of the people, revolution of the century, tears of happiness and freedom, that beside the usual congratulations!

To be honest, I have to say that I have not been able to join those celebrations. I could not drive myself neither mentally nor physically to be in the mood of celebration. You may want to ask ‘why’?! The answer is that I could not yet find any reason to celebrate!! I can certainly relate and understand the frustration of the Egyptian people, and the breeze of fresh hope they might be breathing right now, but still, there is something missing!!

But that won’t stop me from saying that both Tunisia and Egypt might be leading the wave of change in the area; the area that has been waiting for some time now to be changed. The people of both countries are leading the way toward a brighter future. And they are in a front of a historical moment and a miraculous chance to catch up with the rest with of the world, and let’s hope they will drag us all along!!

Now for a business blog, allow me to share some points with you that I would really like to see in the new Middle East, things that if actualized, and moved from being mere dreams into realities, then I promise you, I will be singing my guts out with happiness:

  • I would like to delete the word ‘bureaucracy’ from our public and private sectors, and to see all the dinosaurs of bureaucracy in each and every public or private office go extinct!
  • I would like to hear no more about bribery stories. No under the table negotiation to pass some illegal papers or to award contracts, no leaked exam papers because of X amount of money, and certainly not to pay for your passport/id card/driving license to be issued faster and without even your presence!
  • You know the word ‘Wasta,’ … you know it, right!! I would like you not to know it. No more employment and education opportunities based on your friendship or kinship relations!
  • I would like people to start appreciating the concepts of quality, professionalism, and management science in general. I would like to see the management practices are actually … practiced, and not only taken in oversees courses and forgotten, or only featured in organizations’ magazines and newsletters!!
  • I would like to see customer services, in private and public sectors, to be customer services, literally! I would like to see them dealing with people in respect, honesty, and integrity.

What would you like to see in the new Middle East?

 
4 Comments

Posted in Personal

 

Safety Comes Last

11 Jan

Just about four months after a man deceased in a fire incident in one of the Saudi Electricity company’s gas turbines in Riyadh, another soul has just been lost in another incident, and where?! in the same location (here)!!!

It must be obvious to any observer that there is something wrong, something missing in the safety department, or in the whole understanding of the concept of safety. Opening this subject around here is like opening an infected wound that neither the Saudi companies nor government regulators would be so excited to look at.

It is not like most of them do not have safety sections or departments, the real problem is that most of them think their job stop at installing a number of fire extinguishers beside practicing a fire drill every 7 years!! I personally know a company that is renting an office in a big business building. One morning, the staff were surprised by a nice drawing hanging on the wall showing some nice arrows and remarks about emergency exists and assembly points. Also on that drawing was the name of one of their colleagues as the office coordinator whom everyone should be looking for in case of any emergency. So the staff were excitedly rushing to that staff to ask him about this new, and excellent, emergency plans. Once they stormed the poor soul office, they were faced with another surprise, the guy just did not know what they were talking about!!!

And hey, you should not be working in a construction company to know what I am talking about, I am sure there are a lot of constructions or roads excavations taking place along your daily commute. Just stop at any of those and have a close look at the poor workers in there!

Long story short, the company that respects its staff should educate them about safety, should train them, should provide them with the required tools to eliminate or, at the worst case, minimize those conditions, and it should enforce very strict safety rules and procedures.

In simpler words, it should look at its staff and treat them as human beings!

 
2 Comments

Posted in Culture, General Management, Saudi business

 
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