BPAMOCO FINLANDHelsinki School of Economics and Business Administration

April 1999

Mission Statement• Provide the best possible service to

our customers by:– Building long lasting relationships

with franchisees– Developing our staff to achieve our

goals– Acknowledging environmental and

ethical responsibilities

Goals

• Build relationships with franchisees• Expand to Baltics and Russia• Teamwork• Development of human capital to

meet business objectives

C h art T it le

MAR K ET IN G V P

Fa cility Ma na gers

HELS IN K I Area Ma na ger

FIN AN C E VP

F. M

W EST E R N FIN LAN D A.M

HU MAN R ESO U R C ES V P

F. M

EAST ER N FIN LAN D A.M

SU PP O R T SERVICE S VP

F. M

N O RT H ER N FIN LAN D A.M

CEO & B oa rd

Organizational Chart

Recruitment Needs For First Four Years

Title Year 1 Years 2-4 TotalHQCEO 1 / 1VP Marketing 1 / 1VP Finance 1 / 1VP HR 1 / 1VP Support 1 / 1Staff 10 10 20AREASArea Managers 4 4Staff 4 4 8FACILITIESFacility Mgrs 25 25 each year 100Facility Asst. Mgrs. 75 75 each year 300OTHERSTrainees 100 50 each year 250Total 223 464 687

Planning Needs Year One

• Initial planning done in cooperation with the BPAMOCO HRM in US– First issue is to build a strong management team– Build HR strategy guidelines; vision, mission and goals

• Recruiting– Wide recruiting campaigns, advertisements in major newspapers and TV– Building relationships with universities and other recruiting sources – BPAMOCO HRM people in US to help in the initial recruiting and selection

as well as training– Extra personnel hired in beginning to be moved later to the new stations

• Skills inventory; mapping employee competencies

Planning Needs Years 2-5• Expansion and Recruiting for the new facilities continues• Start job analysis • Both qualitative and quantitative methods used for forecasting the future

needs of personnel • Start to build incentive and compensation systems• Develop Internal Career development system• Common training programs with BPAMOCO US • Russia & Baltics

– Expansion task force– Continue training in Finland and US– Start international rotation program– Job description to be adapted to local conditions– Emphasis on quality management

US Support• Assistance not directed management• Advisory role as needed• Areas, including IT, Marketing,

Customer Service and corporate culture

• Short term/two years• Assistance based on startup and task

force requirement

DutiesCEO

•Response to the board/Chicago•Overall accountability•Performance review of senior executives•Implements business plan•Responsible for vision and strategy•Coordinate with other BPAMOCO units

Marketing VP•National Marketing Program•PR/Sponsorships•Coordinate Global Branding•Support to Area and Facility Managers•High Level Coordination with Franchisees•Competitive Analysis

HR VP•Recruitment Program•Coordinate Training•Administer Management Training Program•Implement Corporate Policies and Values•All Compensation Issues•Administer Performance Appraisal

Finance VP•Financial Control and Reporting•Budgeting•Investment Planning

Sup. Serv. VP•Legal, Technology, Purchasing and Outsourcing, Audit issues

Job SpecificationsCEO

•Finnish Executive•Experience in real estate and Franchising•Knowledge of Russian and Baltic Markets•Practical yet strategic management style•Track record in similar large scale operations, including start-up•Entrepreneur

Marketing VP•Business Degree•Knowledge of Finnish Markets and International Experience•Creating New Brands•Good Coordination and Communication Skills•Relationship Building Skills•Team Player•Finnish

HR VP•Degree in HR•Extensive HR Experience in Finnish Market•HR Leadership Experience in Service Industry•Finnish•Established HR Network Within Finland

Finance VP•Experience Financial Professional and Similar Size/Type of Operations•From Chicago or Finnish

•Experienced in Managing Professionals, Law, IT and Contracting•Real Estate Competence

Sup. Serv. VP

Expansions to Russia and Baltics• Senior Management TASK FORCE• Task force objectives:

- Marketing Research- Business Planning- Resource Requirements (HR/Fixed assets)- Strategic implementation timeline Those above can be done sequentially or simultaneously

• Co-Ordinates HR Functions for Lower Management

• Does Random Quality Checks on the Sites

• Co-Ordinates with Other Senior Management

• Manages Area Budgeting

Area Manager

• Co-ordinates all Maintenance Functions for the Facility

• Takes Care of Human Resource Needs of Facility

• Ensures the BPAMOCO Quality Standards.

• Reports Directly to the Area Manager• Site Budgeting and Local Advertising

Facility Manager

• Entry Level Management Position• Supports the Facility Manager• Training Level for Promotion to

Facility Manager• Facility Maintenance

Assistant Facility Manager

Recruitment SourcesCEO

VP’s

AM’s

FM’s

Head Fairs Intern- Inter- Radio News- EEDC Inter-

Hunter Univ.s ship net TV paper nal

How to lower the cost of recruitment

• Internal recruiting• Employee referrals• Concentrate all the assignments to

one ad agency (the same than in the US)

• Use bulletin boards of universities• Develop internship programs • Trade fairs

Russia and Baltics

• Recruit Assistant Facility Managers who could be rotated in different jobs in Finland

• Trainees from Russian Universities

• Use Experience from Poland Operations

CEO VPs AreaManagers

FacilityManagers

AssistantFacilityManagers

Resume &Cover letter

(HeadHunters)

X(Head Hunters)

X X X

ABCSelection

HeadHunters

US HRmanagers

HR seniormanager

Area HRmanager

Area HRmanager

SupervisoryInterview

US HRmanagersConsultants

US HRmanagersSupportiveForeignManagers

HR seniormanagerConsultant

Area HRmanager

Area HRmanagerFacilitymanager

Tests Consultant Consultant Consultant Consultant Consultant

SecondInterview(if necessary)

–SupportiveForeignManagersNew CEO

SeniormanagersNew CEO

AreamanagerArea HRmanager

FinalInterview

US top levelmanagersUS HRManagers

New CEOUS HRManagers

HR seniormanagerNew CEO

Area HRmanagerAreaManager

FacilitymanagerArea HRmanager

FinalDecision

US TopLevelmanagers

New CEO SeniormanagersNew CEO

Areamanager

Facilitymanager

Selection Process

• Customer oriented• Creative• Results oriented• Team spirited• Respect for individuals• Readiness for change• Internationally oriented

SELECTION Criteria: General Competencies

• Next few years…– Same selection methods for Assistant Facility

Managers, Facility & Area managers– Internal promotion enhanced

• Expansion to Russia & the Baltics– Internal selection of the best potentials for

managerial positions– Same selection process for local hiring

Future perspectives

Training process

Person Analysis

Org. Analysis

Person Analysis

Org. Analysis

Individual Training/ Development Plan

Evaluation

Revised Plan

TrainingTask Analysis

Task Analysis

Training & Development Circle

“Kick-off”Orientation2-3 daysGeneral topics:Who, When, What,Where, How

“Retreat”Orientation/Devel.5-7 daysSpecial Topics:Develop team &corporate spirit

“Off the job”Case studies, RolePlay, Vol. Education

“On the job”Job rotation, Staffmeeting, CBT, Mentoring/Coach.

Every employee, only onceEvery employee, once a year

Every employee, each dayEvery employee, good performance

The objective

Performance

Development

Improved Performance

Basis for salaryrecommen-

dations

IdentifyingStrengths and Weaknesses

Opportunity to discuss past performance

Identifyopportunities andways to improve

performance

Performance Appraisal Methods

Essay/Expectations/

Interview

Peer /subordinate

Critical incident method

MNGMT BY OBJECTIVES

CHIEF EXECUTIVE OFFICER

FUNCTIONAL MANAGERS

AREA MANAGERS

FACILITY MANAGERS

ASSISTANT FACILITY MANAGERS

CHIGAGO HQ

All employees will be evaluated semi-annually.

Appraisal training for all employees during orientation.

Base SalariesIn FIM, $ 1 = FIM 5.5

CEO 700.000 Vice Presidents 400.000 Area Managers 300.000 Facility Managers 220.000 Assistant Facility Manager 150.000Salary Range: (+/- 25%)

Government Regulations Affecting Working Time

•Eight Hours per Day•37.5 Hours per Week•Two First Overtime Hours +50%•Following Overtime hours +100%•Total Amount of Overtime Hours per year is limited•Possibility for Local Agreements

Compensation ConstraintsCEO

VP’s

AM’s

FM’s

AFM’s

Base Merit Bonuses Stock Indirect

Salary Options Compensation