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The results of policy and strategyreview include the incorporation ofnew information sources (sub-crit.2a),new business areas (Health and Safetyat Work, Environmental Management,etc), the identification of new proces-ses in response to new objectives (thecommercial management sub-process,the website sub-process, etc), techno-logical changes, training in technicalcompetencies, the incorporation ofprofessional competencies (meetingmanagement course), the preparationof new indicators, etc.ASLE customers (Member companiesand Public Sector Institutions, sub-crit.5a) are involved in the develop-ment of strategies and plans. Those customers affected by the stra-tegy being developed by the organisation participate in the PDCAcycle of the activity in question (Fig.2c6). The performance of ASLE policies and strategies is reviewedagainst results indicators (crit.9) and through customer (membercompanies and public sector institutions), people and society surveys.The item "values and policies of my organisation" in the general peo-ple satisfaction survey was rated by ASLE employees at 3.0 in 1996and at 4.69 in 2002. The overall degree of customer satisfaction withASLE stood at 3.5 in 1996 and 4.0 in 2002, whilst the overall degreeof satisfation with ASLE registered in the 2001 Society SatisfactionSurvey was 3.9.ASLE Policy and Strategy is transmitted externally to all stakehol-der groups using the different means of the External diffusion / com-munication process (company reports, the General Assembly, theWebsite, the magazine Gatza, etc.).

Fig. 2c5. Review of Strategies and Plans.

DEC DEC DECn-1 n-1 n-1 DEC JAN DEC JAN DECn-1 n n-1 n n-1

JAN JAN n DECn n n-1

Implementation &Deployment

QuarQuar nn

APR APRn n

Business Plan Process Meeting

Processes Meeting

Meeting of all employees

D

A+R

Long-term Strategic Objectives

A Approach

Consensus

Approval

Strategic Objectives andShort-term Strategies

STRATEGY PLAN BUSINESS MANAGEMENTPLAN

DECn

DECn

JANn+1

Through PROCESS MANAGEMENTThrough Short-term Strategic Objectives and Deployment

through Processes in the BUSINESS PLAN

Monthly R+A of Economic andFinancial Information

Through

Who?

What?

PROCESSMANAGEMENT

Action Plans

ANNUAL ACTION PLANof each process

processspecific

When? Where "n" is the year in progress

Communication

Assessment &Review

Gen. Assembly of member cos.

Board of Directors Meeting

P+S Process Meeting

Fig. 2c6. Involvement of Customers in the Development of Strategy.

SUBJECT CUSTOMERS INVOLVED

MEMBERSFogasa (until 2000) 37Lifelong Training (Hobetuz) 1999:12 / 2000: 24Worker-Owner Company Contract Commission of Chairmen: 40PPQIS 24ISO 14001 10Health and Safety at Work 20Plan Premié 15

NON-MEMBERSOccupational Training Public Sector Bodies:

Basque Govt., Prov. Govts., INEM

PPQIS Basque Government

Plan Premié Bizkaia Provincial Government

Criterion 3. People Management3a. How the organisation develops and reviews people plansThe ASLE Mission statement of "(...) commitment (...) to find a balance between humanand business development (...)", and the Vision statement of "(...) achieve people satis-faction (…)" lead inextricably to one of the key elements for the development of ASLE:People (crit.2). People Management, classified as a key process in ASLE (Fig.5c3), iscomposed of the sub-processes of recruitment, training, communication, participa-tion, leadership, recognition and the procedure for the management of satisfactionindicators (Fig.3a1), all of which sub-processes have their own respective process lea-ders. As can be seen in Fig.2b1, all ASLE employees are involved in defining, imple-menting and reviewing the Strategy and Plans of the organisation. There is, therefo-re, a team specifically responsible for the people management process, but policy andstrategy in this area are the direct result of consensus agreement by all ASLE emplo-yees (Figs.2c3 and 2c4). The objectives of People Management are expressed in the ASLE BSL, whilst manage-ment indicators for this area are part of the Business Plan. The complete system issubject to assessment and review at least once a year to incorporate areas for improvement and indicators from this area into the information sour-ces (Fig.2c5). Fig.3a2 shows how the approach of the people management system has been reviewed and improved.

Fig. 3a1. People Management Process.

BusinessPlan

• Recruitment• Internal training and knowledge pooling• Leadership• Communication• Participation• Recognition• Procedure for the management of satisfaction indicators

IndicatorsPeople Satisfaction Survey

Self-assessment

Areas for Improvement

Process and Strategy Targets

BSL

Objectives

Fig. 3a2. Review, Learning and Improvements to the Development of People Plans.

REVIEWS

• Self-assessments (Fig.2c1)• Rev. of the approach,deployment and results of thesub-processes of:- Leadership (sub-crit.1a)- Training- Recognition (sub-crit.1b)- Procedure to manageindicators of satisfaction, (5surveys conducted since 1996,with a 100% response by ASLEemployees)• Review of peoplesatisfaction survey results

LEARNING

• Best Practices:- Irizar (sub-crit.1a)- Ericsson (EQA Award, 1994)- NfPO (Fig.1b3)- MCC (survey design)- Knowledge Cluster- Fagor. E (sub-crit.4b)- TVA• Courses and workshops on:- Competence matrices- EFQM (Fig.1a4)- Knowledge management- Training needs analysis- Management by Competencies- MbV

IMPROVEMENTS

• Deployment and development of process management and improvement teams• Design and definition of the People Management Process• Improvement in the indicators of the sub-processes which make up the Process• Definition of the sub-process of Knowledge Pooling• Preparation and review of the competence matrix• Successive incorporation of systems to measure effectiveness of the sub-processes of:

- Survey on the practice of leadership- Survey on competencies for leadership- Survey on the effectiveness of training- Survey on the applicability of training- Survey on recognition.

• Preparation of people satisfaction survey• Improvement to the design of the satisfaction survey• Improvement in the results of the people satisfaction survey

Recruitment in ASLE is triggered by the need tocreate a new post or to fill a vacancy (Fig.3a3).However, before beginning the recruitment pro-cess, an analysis is made of the possibility ofcovering the post internally or of sharing thenewly created responsibilities among existingemployees. If neither of these two options isconsidered as viable, the selection system inclu-des a defined list of pre-requisites to become anASLE employee, including:- Match with competence matrix for the post- Knowledge of the Basque language- Candidate's interest in belonging to a company which follows an MbV management system (sub-crit.1b)Since 1996, ASLE has been recruiting through the Grants Programme, an agreement signed with local banks to help promote youth employment(Fig.2c4). This means of recruitment was used in 1998, 1999 and 2001 to cover posts in the areas of the Environment, Quality, Economic Planningand Training.As MbV has been progressively implemented in ASLE, the approach to recruitment has had to be reviewed in line with the increasing importan-ce given by the organisation to the attitude shown by people to working in a company in which empowerment and leadership are consideredfundamental values. The effectiveness of this approach is measured by the number of new people taken on following the annual appraisalinterviews. Results to date show a 100% success rate.MbV has given rise in ASLE to an organisation chart of minimal hierarchy levels (Fig.0.2), and to a horizontal system of professional develop-ment of competencies and skills which contribute to both individual and corporate growth. Personal development is achieved not only throughthe work done but also by how it is done: teamwork, the practice of leadership, process management, etc. The item "opportunities for profes-sional development and progress" was rated in 1996 by ASLE employees at 3.7. The development of process management, further training inpersonal competencies (conversation skills, meeting management, etc.), and the assimilation of MbV have all been influential factors in the ratingfor this item reaching 4.26 in 2002.As has been explained in sub-crit.2b, company strategy is communicated to all employees, who then participate in reviewing this strategy andcontribute their own ideas in the process. This strategy is then deployed through processes by teams, who set the specific targets and decide onthose actions necessary for each process to contribute to achieving the strategic objectives (Fig.2b1). These targets are monitored through theprocess of monitoring the Business Plan. The following areas have been subject to review:• Approach of the Policy and Strategy System (communication and deployment system) (crit.2).• Process management (sub-crit. 5c).• Approach of leadership (Fig.1a6).• Approach of the people management system (Figs.3a2, 3b1 and 3b2).The rating given to the item "clarity of objectives in my work area" has increased progressively from 2.8 in 1996 to 3.57 in 1998, 3.74 in 2000and 4.22 in 2002 as a result of review.Since the creation of the company, an annual formal collective appraisal of overall company performance has been conducted in ASLE. The per-formance system, which had until then used quantitative targets as the basis for appraisal, was then reviewed in 1999, following a best practiceexchange workshop with NfPO and another such event with Ericsson (EQA Winner, 1994). One consequence of this review was that competencieswere established as improvement elements in employee performance appraisal (Fig.3a4). The appraisal of individual performance and professional deve-lopment needs is conducted on a one-to-one basis betweenthe General Manager and the employee in an annual meetingin December/January. However, the open-doors policy in ASLEenables any employee to discuss these matters with theGeneral Manager at any moment. All ASLE employees partici-pate in this appraisal activity with the same agenda (Fig. 3a5).Improvement actions affecting training, internal manage-ment, the re-allocation of work and people satisfaction in particular are conse-quences of these review and learning activities. For example: after a review of theirpersonal competencies and of company objectives, two people who had previouslyonly worked in the area of training management are trained in Quality Assurance,and subsequently implement ISO; four people previously engaged in formulatingarea strategy plans are trained in Total Quality, and implement those plans throughdeploying targets in processes; four people working in administration are trained inleadership competencies to lead process and improvement teams.The effectiveness of the approach is measured through the interviews themselves,and through the surveys on leadership competencies (Fig.1a5) and people satisfac-tion. Rating in the 2002 people satisfaction survey of the "performance appraisal andtarget setting" system stood at 4.39.This system was again reviewed as a result of the 2000 external assessment, and asurvey (Fig.1a7) was incorporated to measure not only the effectiveness of leadership practice in process and improvement teams but also to mea-sure the performance of each individual team member. As a consequence of strategic thinking on competencies, training needs in ASLE are structured on the basis of the gap between those compe-tencies considered necessary to develop the post and the competencies of the individual. The approach to this matter has evolved as a result ofthe successive reviews and learning activities described in Fig.3a2. In this respect, rating figures for the item "training opportunities" have incre-

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Need arises for a new person due to:• A vacancy; review of job profile and of the competence matrix for the post• Creation of a new post: preparation of a new competence matrix

• Consult data base: Langai, grants, Basque Country job-finding service or advertisement• Pre-selection: Psycho-technological and personality tests• Selection of short-listed candidates and interviews• Incorporation into the post for 1 year (trainees are given personal coaching, the effectiveness of which is measured by survey, crit. 8)

• After one year in the post, appraisal of adaptability (personal interview)

• Review of the complete system and inclusion of findings in the People Management Process

P

D

CA

Fig. 3a3. Sub-process of People Recruitment.

• Definition of Competencies: technical (by activity areas) and common business and personal competencies for all ASLE employees• Determining the requirement level for each activity

D • Review of all individual competence matrices• Review of all individual competence matrices with the General Manager

C • Determining of gap between current and required competencies

A • Establishing of improvement actions

P

Fig. 3a4. Competence Management.

Fig. 3a5. Agenda for Personal Interviews.

• Global opinion of the organisation• Personal situation• Personal and collective aspirations for the coming year• Professional situation• Degree of fulfilment of personal targets• Proposed salary rise for forthcoming year• Analysis of competence matrix and training needs• The MbV system in your working life (leadership,

participation, etc.)• Any other matters.

ased from 2.9 in 1996 to 3.64 in 1998, 3.87 in 2000, 4.17 in 2001 and 4.26 in 2002. Improvements to the approach and deployment of trainingsince 1996 are shown in Fig. 3a6.The Training Plan is monitored biannually,and is assessed at the end of each yearfrom three angles: what has been done (arecord of training actions), the effective-ness of each training action ( the post-course survey) and their applicability (sur-vey conducted 12 months after comple-tion of training action). Thus, the effecti-veness of training in Quality, in environ-mental matters, in the planning of objecti-ves and in I.T., amongst other areas, ismanifest through the driver effect of ASLEon companies in the PPQIS, through theagreement with IHOBE, through thedemand of ASLE member companies forstrategy planning, and through improvements inthe internal management of ASLE, respectively.Data on this area is analysed by the training sub-process committee, the people management pro-cess committee and the policy and strategy com-mittee. Satisfaction ratings for the item "trainingand development" have increased from 2.07 in1996 to 3.10 in 1998, 3.84 in 2000, 4.19 in 2001and 4.45 in 2002.Since 1996, ASLE has promoted values (Fig.1a2)which imply sharing knowledge and experiencesthrough teamwork and lifelong learning. As aresult of a learning workshop organisedthrough the Knowledge Cluster, a new manage-ment element was included in ASLE: knowledgepooling. Reviews of the approach and deployment of knowledge pooling are shown in Fig.3a7.Knowledge pooling takes place on the second Friday of every month, as well as through the diffusion of new methodology and documentationthrough Intranet (sub-crit.4d). Its management and effectiveness are monitored in the same way as in the training sub-process, i.e. a writtenrecord of pooled knowledge, post-pooling surveys and a survey on participation in processes and improvement teams (Fig.1a7). One item inclu-ded in this last survey, "transmits knowledge", measures the contribution in this respect of each team member; the average rating currentlystands at 4.1 (Fig.7b4). The fact that all employees, after knowledgepooling on self-assessment methodology,were then capable of conducting self-assessment in ASLE, in a position to mana-ge company processes, to work with impro-vement tools and to implement the 5S met-hodology represent some examples of theeffectiveness of knowledge pooling.Procedure for the Management ofSatisfaction Indicators: People satisfactionsurveys have been conducted in ASLE since1996. The questionnaire is agreed by con-sensus in a general meeting, and all surveyshave had a 100% response rate. All itemsare rated on a scale of 1-5. Reviews of the survey procedure are shown in Fig.3a8.

3b. How the organisation ensures involvement and empowerment of its peopleThe ASLE Values, the chosen Management System (MbV), the EFQM Model, ASLE BSL and its people management system all contribute to pro-moting people involvement, empowerment and leadership (sub-crit.1a). Process management, the inclusion of people in the process of definingcompany policy and strategy, a customer focus, knowledge pooling and teamwork are all essential for the development of ASLE, and could notexist without the involvement of its people. It is, therefore, a logical consequence that the BSL defined by ASLE express objectives aimed at pro-moting people involvement (Figs.2c3 and 2c4).There are no levels of middle management in ASLE (Fig.0.2); each individual has workplace autonomy and is empowered to take the decisionhe/she considers most appropriate in the course of their work, in line with the strategic objectives of the company. Similarly, all employees areinvolved in process and improvement team management. These teams are self-managed and are briefed to respond to the objectives and stra-tegies established by the organisation. The approach and deployment of participation has improved through successive reviews, as shown inFig.3b1.

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• Initially, training plans consisted of training activities linked to management activities; all these activities were officially recorded, but their effectiveness was only measured on an informal basis.

• After a learning workshop with Ericsson, the first competence matrix was prepared, identifying personal, technical and business competencies for the different company activities.

• Seven ASLE people attend a training course on “Diagnoses for Training”. • Definition of sub-process of Training, and incorporation of competence matrix as a source of infor

mation to prepare the Training Plan.• Surveys conducted after every training action.• Inclusion of a survey on the applicability of training, conducted 12 months after training activity. • A further training workshop with Ericsson, in which Ericsson explain their system of People

Management by Competencies. Review of business competencies in ASLE, involving customer management, company strategy, services, etc. Definition of competencies also reviewed.

• Training course on a computer programme for competence management.

Fig. 3a6. Improvements to the Approach and Deployment of Training.

• In 1998, knowledge pooling consisted of passing on details of the knowledge acquired to allfellow ASLE employees whenever an individual had attended a specific training activity (a cour-se, workshop or seminar).

• A subsequent review of approach led to a definition of this sub-process and to its mission beingbroadened to: "The pooling of customer service methods with colleagues". Knowledge poolingremains a voluntary exercise.

• Finally, following a review of ASLE Values, it was decided that, in order to promote the conceptof "solidarity", interpreted as the search for and fulfilment of common objectives, and "commit-ment", understood as active involvement in the development of the organisation, a review ofthe objectives of knowledge pooling was needed.

• A further review of approach leads to the inclusion of a new element; in addition to peopleoffering knowledge to be pooled, the rest propose subject areas they would like to be trained in.

Fig. 3a7. Knowledge Pooling.

YEAR

1996

1998

2000

2001

REVIEW AND IMPROVEMENT- Learning activity with NfPO. Pooling of indicators.- 60 questions covering 7 areas.- Comparison with Organisations of Excellence.- Increased knowledge of EFQM model in ASLE employees ("People Management Module").- Incorporation of two new general areas, and new draft of questions (43)- Weighting of items in a general meeting.- Segmentation of data by location of offices (Bizkaia, Gipuzkoa, Álava).- Comparison with NfPO- Exchange of Best Practices with MCC: adaptation of MCC questionnaire model to ASLE needs for comparison purposes with companies of the MCC Group: 48 items and 17 general areas.- Survey frequency changed from biennial to annual, on the basis that an annual survey is optimum

to assess the impact of improvements in the area of management, enables any problems which may occur to be resolved faster and provides information for the annual Business Plan.

- Pooling of indicators with NfPO.

SURVEY

1st

2nd

3rd

4th

Fig. 3a8. People Satisfaction Survey.

As these systems were reinforced in ASLE, the number of people involved became greater until the situation was reached when all employeeswere involved in at least one process or improvement action (Fig.7b2).The effectiveness of participation is measured through a:• survey (Fig.1a7), in which team members assess each other's attitudes towards teamwork (Fig.7b4).• general satisfaction survey. In 2002, the item "delegation and empowerment" was rated at 4.3, and "level of employee involvement" at 4.5.Just as participation is an essential element for the development of ASLE, without effective communication, no ASLE strategies could be deli-vered. For the whole organisation to be involved in the project, communication is considered as fundamental in ASLE; this statement can becorroborated through the BSL drawn up by the organisation. Consequently, approach and deployment of communication have been progressi-vely improved since 1995 (Fig.3b2). Regular, systematic meetings involving the participation of all ASLE employees are called by the GeneralManager. All employees are requested to attend, though anyone unable to do so will subsequently have automatic on-line access to the mee-ting minutes. Progressive growth in involvement in the management of processes and improvement teams, and the possibility to propose objec-tives and strategies both lead to people being better informed about the management of the organisation (sub-crit.2b).

The mission of the sub-process of internal communication is that all information considered relevant by the organisation reaches all companyemployees. Such information includes: • Information on Strategy: BSL, information sources, the Business Plan, etc.• Economic information: balance sheet and profit and loss account, trends in work undertaken / invoicing / collection (sub-crit.4a)• Information on process management (indicators and objectives)• Information on training, attendance at workshops, meetings, etc.• Information on improvement actions • Information on customers• Information on stakeholders: Local Government, agreements, etc.With a view to obtaining further knowledge in the area of improvement management, a benchmarking activity was organised with TVA, aBasque Country Organisation of Excellence. This visit produced a further review of the approach both to communication and improvement, andgave rise to the creation of a suggestion scheme in 1998. Subsequently, following another review of approach in the first quarter of 1999 pro-posed by the improvement team involved, the suggestion scheme was discontinued, as ASLE employees considered the existing communicationsystem of the organisation (meetings held on a regular and systematic basis, open-doors policy, notice-board) to be an adequate vehicle foremployee suggestions. Additionally, as the improvement management process developed, more improvement teams were created, eliminatingthe need for a suggestion scheme. Satisfaction survey trends in relation to the item "effort made by ASLE to listen to employee ideas and sug-gestions" bear witness to this; ratings increased from 2.95 in 1996 to 3.62 in 1998, 4.09 in 2000, 4.46 in 2001 and 4.48 in 2002.To ensure effective communication with all employees, the information resources management system was reviewed. Different communicationchannels were incorporated, such as a notice-board, Intranet, e-mail and, of course, meetings (sub-crit.4b). Two specific training actions havebeen taken to improve the effectiveness of this last channel of communication; "Public Speaking" and "Meeting Management". The effectiveness of the approach to communication and of the results of the training actions is measured through the two assessment ques-tionnaires on training, and through:• The survey on the practice of leadership and participation in teams (Fig.7b4)• General People Satisfaction Survey 1996 1998 2000 2001 2002- Information on matters of importance affecting my organisation 2.14 3.71 4.52 4.71 4.71- Information on other areas related to my work 2.71 3.59 3.7 4.21 4.3

The ASLE Mission states the company's commitment to continuous improvement, and this is clearly manifest in the BSL defined by the organisation.Improvement teams were initially created through the dynamic of meetings applied in the organisation. However, as the approach and deploymentof leadership, participation and improvement were reviewed (a continuous improvement process was defined, sub-crit.5d), management of the impro-vement teams changed. Instead of teams chosen by the General Manager, the members were proposed by the continuous improvement process team;instead of the leader being chosen by the General Manager, it was decided, through the 2000 review of the approach to leadership following exter-nal assessment, that the leader be chosen by consensus of the improvement team, in accordance with the established norms (Fig.1a3).

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REVIEW

• Self-Assessments (Fig.2c1)• Results of people satisfaction surveys• Review of approach, deployment and results of the sub-process of participation

LEARNING

• Best Practices:- Irizar (sub-crit.1a)- NfPO (Fig.1b3)

• Courses and Workshops (Fig.1a3):- Process management- MbV

IMPROVEMENT

• Deployment and development of process management and improvement teams• Implementation of MbV• Design and definition of the sub-process of participation• Improvement in sub-process indicators: (Fig.7b2)• Incorporation of the system to measure the effectiveness of the sub- process: survey on participation (Fig.1a7)

Fig. 3b1. Review, Learning and Improvements to Participation.

REVIEW

• Self-assessments• Results of the satisfaction survey• Rev. of the approach of the sub-

process of communication• Rev. of the Information

Resources ManagementSystem (Fig.4b1)

• Rev. of the deployment systemof Policy and Strategy

IMPROVEMENT ( *crit.7)

• Increased number of meetings• Increase in the number of improvement teams and processes, with

greater number of people involved *• Better results in the satisfaction survey in the area of communication*• Definition of the sub-process of communication• Suggestion Scheme• Improvement in communication channels: server, internet,

e-mail, etc. (sub-crit.4b)• Improvement in the deployment of Policy and Strategy

LEARNING

• Process management (sub-crit.1a)• Conversational skills

(all employees)• Public Speaking (64% of employees)• Meeting management

(70% of employees)• Communication Course• 400 Club: creativity and innovation• TVA (Silver Q Award, 1999)

Fig. 3b2. Review, Learning and Improvements to Communication.

60% of ASLE employees have recei-ved training in "ImprovementTeams and Tools". The remaining40% have received trainingthrough knowledge pooling works-hops and participating in processand improvement teams. One ofthe criteria established to prioritiseimprovements (sub-crit.1b) is thedegree of direct impact they haveon people satisfaction (crit.7). Asummary of these improvementactions is shown in Fig.3b3 (thoserelating to customers are shown inFig.5d2, and those with an impacton financial results are explained incrit.4).

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Fig. 3b3. Improvement Actions with an Impact on People Satisfaction.AREA FOR IMPROVEMENT IMPROVEMENT ACTION YEAR

Communication • Structure of the notice-board 1997• Sending of circulars to branch offices

People Satisfaction • More information in monthly meetings

Social environment and involvement • Training in conversation and management skills 1997

Exchange of best Format of people satisfaction survey • New questionnaire model 1998practices with NfPO

Social and working conditions • Flexible lunchtime period• Installation of air-conditioning and improved heating 1999

Communication • Suggestions box• Knowledge pooling 1999• Creation of working parties by customers

Office material Replenishment of stocks • Implementation of 5S methodology 1998purchasing subprocess

People Documentation and orderliness of central file • Implementation of 5S methodology 1999

People Files, records and documents in • Implementation of 5S methodologyand legislation the central server (I.T.)

People Use of multimedia projector • 5S methodology (standardisation of visual management) 2001

Survey 1996

INFORMATIONSOURCE

Survey 1998People Satisfaction

2000

Criterion 4. Resources4a. How the organisation manages financial resourcesASLE has an economic and financial resources management process in place to support policy and strategy (Fig. 4a1).From a financial perspective, the objective of the system is to:- Guarantee, at all times, the availability of those resources

necessary to conduct the organisation's activities.- Effect planned investments in line with the fulfilment of

strategic objectives.- Provide data on the organisation's economic and finan-

cial trends, to thus be informed at any given moment onthe current position of the organisation, on the degree offulfilment of objectives and to enable decisions to betaken affecting the different areas of the organisation.

The PDCA cycle in relation to the economic and financialresources management system is shown in Fig. 4a2.Specific objectives for the forthcoming financialyear are defined in the final quarter of each yearon the basis of the operating results to date andestablished priorities and objectives (Fig.2a1).The Financial Budget, once documented and inte-grated into the Business Plan, is approved by theASLE Board of Directors in December each year,and communicated to all employees before beingimplemented in January of the following year.Budget expenditure is monitored on a monthlybasis by the General Manager, who analyses anysignificant variance, its possible causes, and pro-poses corrective actions. This data is also analysedby the Board of Directors in a monthly meetingand communicated to all ASLE employees in pro-grammed monthly meetings (Figs.2b1 and 2c5).The information subject to monthly analysis andcommunicated to all employees is as follows:- The Balance Sheet, comparing data of the month under analysis with the figure at the end of the previous financial year (31 December).- Profit and Loss Account, comparing data of the month under analysis with that of the same month of the previous financial year.- Record sheets detailing the fulfilment of economic objectives. These sheets detail information on the volume of work contracted (in Euros), the

amount invoiced to date and the amount collected. This data is then compared with that of the previous month and that of the same month ofthe previous year to check for variance.

On the basis of this information, an analysis is made of trends in the following economic and financial parameters: investments, debit balance, cash-flow, long and short-term debt, variance in operating income, financial (and other) income, personnel costs, operating costs, results trends and cash-flow. Monthly analysis of these indicators enables any variance to be identified quickly and the required corrective measures to be taken. Examplesof such improvements in 2001 include the following: as a consequence of the variance detected in telephone expenditure, an improvement actionwas taken leading to a modification of the communication system; the courier and mail service supplier was replaced as a result of increasing costs(sub-crit.4c); prioritisation of work to be completed to generate a greater volume of turnover.The Billing and Collection Sub-process, which regulates the procedure for sending out invoices to customers and their collection, is integratedinto the EFRM. Review of this sub-process has led to the following improvements in the management of financial resources:

Fig. 4a1: Economic and Financial Resources Management (EFRM)

Strategicobjectives

BusinessPlan

Economic andfinancialbudget

Monitoring ofeconomic and

financialindicators

Reviewand

adjustment

Fig.4a2. Economic and Financial Resources Management.• Preparation of the annual budget, taking into account: (crit.2)- Stategies defined in the Strategy Plan- The Annual Activity Plan, included in the Business Plan- Specific needs of activity areas- Analysis of the results of the previous financial year- Investment needs

This budget is prepared by the General Manager with the collaboration of the Controller, and is included in the annual Business Plan. It is approved and communicated to all employees of the organisation following the procedure described in sub-crit.2b.

• Budget implementation.• Day-to day financial management (Controller).

D • Accounts data processing (Administration – monthly).• Economic and financial data (Controller – monthly).• Annual summary of economic and financial data (Controller).• Review of economic and financial data (General Manager and Controller - monthly).• Analysis of and reasons for variance (General Manager and Controller - monthly).

C • Presentation of data to all employees and to the Board of Directors (monthly).A • Annual audit

• Presentation of data to General Assembly (annual).• Implementation of corrective measures and monitoring of their effectiveness through

analysis of monthly compiled data.

Fig.2c5

P