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Quarterly publication of the alkhorayef group of companies

issue 51

“beyond petroleum”

sustainable

power sources

Occupational Safety Optimizing factory safety

ReportSweden’s financial strength

Academic ArticleSignificant achievements

2014 - 1435

Magazine

| Quarterly Issue by Al khorayef Group2 2014 | 1435

“as long as thy Strength, O homeland”

Congratulations from alKhorayef group on national Day

May allah Protect our leadership and our nation

Of PrOgreSS anD PrOSPerity

84yearS

Quarterly Issue by Al khorayef Group | 32014 | 1435

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occupational safety22

real estate Development report24

academic article26

infographic 30 10 steps to establish

a small business

insideissue 51 2014 - 1435

news05

cover story10

report14

sector report18

PublisherSupervision:

Management Relations and

Marketing in Alkhorayef group

[email protected]

www.alkhorayef.com

general manager: Kingdom of Saudi arabia/ Partner

Abdallah Bin Abdulrahman Al-Akil

[email protected]

HRH Prince Mishaal honored

AlKhorayef for sponsoring

Jeddah Ghair Festival 2014

Alternative energy to cross

“beyond petroleum” world

towards new strategies and

abundant alternatives

sweden’s financial strength

and professionalism

Crane Talk...the crane

is one of mankind’s

earliest inventions.

Optimizing factory safety...

is closely associated with

occupational health and

well-being

How to transform your

company successfully..there are

many reasons for companies

to consider change

small deliberate steps lead

to concrete significant

achievements


In his lecture at the Global Management Forum held in Tokyo in October 2013, Shigetaka Komori, chairman and CEO of Fujifilm, who pioneered change in his company, described three levels at which institutions and countries deal with change: - gOOD: the ability to adapt to and deal with changes after they occur. - Better: the ability to anticipate and prepare for future changes. - BeSt: the ability to lead and direct change.

Our world is changing faster than any other time in history, especially in the light of the global economic expansion: the obstacles and barriers to global trade are disappearing, and technology is developing in both the world of communication and social networking, and elsewhere.

We have recently witnessed the fall of several prestigious entities in the business world because they couldn’t adapt to the new reality.

Often, this failure is not due to the inability to anticipate change, but to manage it.

The change process is not limited to the external environment of the organization: internal changes are no less significant, such as the constantly changing needs, expectations, and career goals of employees, and the inevitable changes in structures, systems, and work methods intended to prevent the organization from becoming unwieldy and underdeveloped.

Change management in labor organizations

exCellenCe

We pursue excellence in all our products and services. We’re skilled users of technology, and our machinery performs to extremely high standards. Our aftercare and maintenance service are second to none. We only distribute premium brands with a high reputation for performance. And we try to go the extra mile for all our customers.

truSt

We’ve built our business on a foundation of honesty and trust. We have a strict code of ethics that all employees are required to follow. We base our dealings with our clients and our partners on trust, often sacrificing short-term profit for the sake of a long-term relationship. And our clients trust us to deliver, every time.

inCluSiOn

As a family-run firm, we’re warm, friendly and open in all of our dealings. We extend that warmth to our clients and partners, sharing decision making, ideas and problems wherever possible – a key part of the long-term relationships we build. Internally we see our staff as part of the wider family and encourage their participation and involvement in any issue at any level.

COMMitMent

We approach every project and every partnership with total commitment. We see each project through to the end and beyond, providing excellent aftercare and support. We also show our commitment to clients, partners and staff by helping to build their skills, knowledge and businesses through training and development program.

vision

This leads us to an important conclusion: if you do not change and keep up with modern developments on a personal level, and if you do not understand and deal positively with the changes in your environment, improving management at the institutional level, there is no doubt you will contribute to your company’s failure to achieve its goals.

Change is a characteristic of the modern era. Dealing with it has become a necessity, and no longer a luxury.

In the past, and early in the evolution of the Alkhorayef Group, our overwhelming core business was agricultural mechanization and water pumps. Today, we embrace a portofolio of businesses and strategic activities that are scalable and sustainable, extending around the world. Agricultural mechanization activity today constitutes less than 20 percent of the volume of our business.

It is imperative that change is accompanied by long-term efforts to improve the ability of companies to solve problems through logic and openness to new ideas and initiatives regardless of their source. Driven by our vision, strategic goals and our values the Alkhorayef Group believe in the necessity of change, and focusing to achieve the best results through the most productive and effective work environment.

We are also keen to support continuous improvement initiatives through the Kaizen philosophy and the implementation of lean enterprise systems and tools to create an environment compatible with modern world. Thus, we keep pace with all that is new, maintaining consistency and compatibility between the organization and the conditions under which we operate.

We always need to anticipate changes in our customers’ needs, desires and expectations, meeting them in the form of new products or services, or improvements in existing products. This approach guarantees that companies are rejuvenated by change, boosting hope and optimism while diminishing indifference and passivity.

Together, we can improve every aspect of our lives.

by mohammed bin abdullah alkhorayef


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PrinCe MiShaal hOnOrS alKhOrayef COMMerCial

HRH Prince Mishaal bin Majed bin Abdulaziz, Governor

of Jeddah, recently honored AlKhorayef Commercial

Company as a co-sponsor of the festival.

The award ceremony took place during the opening

ceremony of the 2014 Jeddah Festival.

Eng Abdullahbin Abdulrahman

Alkhorayef appointedas member of the Youth

Business Committeeof Riyadh Chamber of

Commerce andIndustry.

The Saudi Paper Manufac-turing Company announced

the appointment of Eng. Mohamed bin Abdullah bin

Abdullah AlKhorayef as Chairman of the Board of

Directors, and Chairman of the Executive Committee.

Mr. Abdullah bin Ibrahim AlKhorayef was appointed

as the Vice President of the Saudi Arabian Mari-time Sports Federation and Head of the Marine Tanks and Speedboats

Committee.

AlKhorayef offshore division

was the main sponsor of

the KsA Jet ski tournament

first and second rounds.

The tournament between

8-23 August was organized

by the saudi Arabian

Maritime sports Federation

in collaboration with the

Marina Club.

HRH Prince Bandar bin

nasser bin Abdulaziz,

CeO of Marina Club, along

with Abdullah AlKhorayef,

VP of the saudi Arabian

Maritime sports Federation

and General Manager of

AlKhorayef Commercial,

distributed trophies and

prizes to the winners.

alKhOrayef SPOnSOrS KSa Jet SKi tOurnaMent

nEWS


CaStrOl glOBal hOnOrS SaaD alKhOrayef

alKhOrayef Printing SOlutiOnS SignS COntraCt tO OPerate anD Maintain iMaM univerSity PreSS

At the regular meeting of Castrol Middle east and AlKhorayef

Lubricants Co., Castrol presented an honorary shield to He sheikh

saad AlKhorayef, Chairman of the Board of directors of AlKhorayef

Lubricants.

AlKhorayef Printing solutions has signed a contract

with the of imam Muhammad bin saud islamic

university for the operation and maintenance of the

university Press. The contract will cover a period

of five years, starting from 1 september 2014. The

contract was signed by He Prof. dr sulaiman Aba

Al-Khail, director of Al-imam university, and Bandar

ibrahim AlKhorayef, President and CeO of the

company.

The signing of the contract was attended by several university officials,

including the He Advisor General supervisor of Technical Affairs at imam

university, and the director General of university Press. The signing was also

attended by Mohammad Karram, Vice President of AlKhorayef Printing, and

by Mohammed isa, AlKhorayef’s account manager.

dr Al-Khail praised the strong relationship between imam univer-

sity and AlKhorayef Printing solutions, as well as AlKhorayef’s construc-

tive role in the advancement and development of imam university Press,

which has become one of the best printing presses in the Kingdom.


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vOlvO Penta DelegatiOn viSitS alKhOrayef COMMerCial COMPany

cial on 3-4 september 2014 touring

the company and its various sections

and divisions. The delegation then

AlKhorayef Commercial Company

(offshore division) participated in

the GCC Borders and Coast Guards

Awareness Week, as the company

division also participated with a

developed camera in the workshop

on wells set up by the directorate

General of Civil defense.

The company exhibition was

visited by He Major General suleiman

bin Abdullah Al-Amro, and by

director General of Civil defense

Major General Hamad bin Abdu-

laziz Al-Mubdel, who were received

by the company’s government sales

director, daifallah Al-Ghamdi who

gave a detailed explanation on the

operation and use of the camera.

A high-level delegation from swedish

diesel engine manufacturer, Volvo

Penta, visited AlKhorayef Commer-

discussed means of development,

support and service.

PartiCiPatiOn in gCC BOrDerS anD COaSt guarDS’ awareneSS weeK

nEWS

continues to cooperate with border

guards to educate the community.

A team from the company offered

all products relating to maritime

safety, such as diving and fishing

equipment, under the supervision of

a team of government sales chaired

by Khamis Al-Qahtani.

The exhibition was attended by

many distinctive and senior officials

in the kingdom, including director

General of Border Guards, Lt. Gen.

Zamim Al-sawat.

AlKhorayef Commercial offshore


alKhOrayef inDuStrieS attenDS fOruM exhiBitiOn

AlKhorayef industries played a highly

visible role at the saudi-Moroccan

Forum exhibition.

The exhibition included 30 saudi and

Moroccan companies in various fields,

including construction, agriculture, hotel

and tourism and nutrition.

AlKhorayef had its booth in a

privileged location in front of the

export development Authority,

which helped highlight the status of

the company. AlKhorayef benefitted

alKhOrayef hOStS trgOn DelegatiOnA delegation from TRGOn, one of

the largest agricultural investment

companies in Russia, visited

AlKhorayef Group for a briefing on

the company’s industries. The two

parties also discussed possible

means of joint cooperation.

grOwth Of agriCultural equiPMent MarKet

economists expect that the machinery

and modern agricultural equipment

sector will witness sales growth in the

coming years, because of the use of

modern techniques in irrigation and

agriculture.

Recent reports point to a remarkable

demand for modern agricultural equip-

ment due to their significant contri-

bution to raising income and crop

production, making it economically

viable for farmers to turn to modern

equipment as a substitute for old

machines.

Modern agricultural techniques

helped bring about significant gains

for farmers with minimal effort during

harvest seasons, as the effects of modern

machines were large and tangible in irri-

gation, fertilization, seeding, pest control,

hay-making, harvesting, and loading.

Farmers also have begun to modernize

their tractors, wool pounders, mills and

mixers.

China and india are the leading manu-

facturers and exporters of modern agri-

cultural equipment, and are able to

deploy equipment to many of large farms

in south America and the Black sea

region.

from the experiences of Moroccan

specialists and participants, and

recorded impressive results in the

agricultural sector, especially with

regard to its policies and strategies

for entering the Moroccan market.

According to the export development

Authority, AlKhorayef’s stand was the

most interesting and showed the most

initiative of all the companies present

in terms of its organizing procedures.


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The world’s first electric car has been manufactured by an

American-based company using a 3d printing technique. The

process was unveiled during the international Manufacturing

Technology show held recently in Chicago.

experts in the automotive industry said that “three-dimen-

sional printing cars may lead to huge economic, social and

environmental changes in the world of automobile manufac-

turing,” stressing that manufacturing cars with this technology

contributes to the protection of the environment, due to the

fact that the printing process “requires putting the mate-

wOrlD'S firSt three- DiMenSiOnal PrinteD Car

dr Mohammed Khamis of the university of Al-Azhar, said

that he and other professors are preparating a document

explaining how to take advantage of energy lost from

generating units operating on diesel.

He explained: “This project would provide 50 percent

of the wasted effort through the optimal exploitation of

the exhaust, through devices that pull the exhaust during

the generating process, and can then be used in heating

water.”

According to Al-Ahram newspaper, this project is super-

vised by a team of professors and implemented by 16

students at the Faculty of engineering.

Khamis said “egypt needs 124,000 megawatts of elec-

trical capacity, of which 85,000 is generated from thermal

power plants, either diesel or gas-powered, in addition

to 12,000 MW generated from hydraulic engines of the

taKing aDvantage Of DieSel generatOrS’ lOSt energy

rial only where it needs to be so that each piece is being built

by adding one molecule of each article only once, without

producing any waste from the manufacturing process in the

end.”

Local Motors Company offered the visitors a chance to

witness the process of printing layers of the saloon and chassis

using the black plastic material backed with carbon fiber.

The company pointed out that using the three-dimensional

printing technique lowers the number of parts in the car to 47,

while regular cars require thousands of parts.

The company commented: “The strati Car was printed from

a single piece during 44 hours using a process called direct

digital manufacturing, which is used for the first time in the

manufacture of a fully electric car.”

Local Motors added: “Three-dimensional printing tech-

nology manufactures one thin layer at a time from plastic,

sand or other materials and then stacks the layers gradually,

resulting in a finished three-dimensional shaped piece, similar

to the process of stacking Cds on each other. Among these

steps, the computer processes the assembled cabin so that it

acquires the necessary specifications, and then opens 32 holes

for the installation of the other parts of the two-seater car

powered by electricity.”

nEWS

High dam and the Aswan dam, in addition to 3,000MW

of renewable energy; egypt has become in need of

24,000MW obtained from diesel electric generators where

it is used after two hours of processing. But thermal power

plants are constructed and operated through a period of

between three and four years.”


worlD aDopts sustainable power sources

alternative energy tO CrOSS “BeyOnD PetrOleuM”

Dozens of homes anD public builDings in wilDpolDsrieD, a village in germany, are eQuippeD with high-tech solar cells, anD receive power from an organic-material plant. winD turbines financeD by the local resiDents spreaD to the surrounDing hills, proving that the worlD is just arounD the corner from the “post-oil stage,” as french presiDent françois hollanDe once saiD.

does this really mean

that conventional energy

produced from oil can be

replaced with renewable

energy? What are the sources

of this alternative sustainable

energy, and how does it

work? What is the extent

of the economic impact on

the economies of countries

in the region [author: please

clarify “the region” – is this the

GCC?]specifically?

Many countries are seeking

to move towards using

environmentally friendly

energy sources instead

of conventional fuels that

strongly contribute to

climate change. Hence the

terms alternative, renewable

or sustainable energy, which

mean energy generated from

a non-conventional natural

source, which is continuous

and inexhaustible, and which

only needs to be converted

from natural energy to

another easy-to-use

energy form using modern

techniques. it is noted that

the past 10 years have seen

a steady growth in, and an

increasing awareness of the

many forms of alternative

energy, within the framework

of the so-called energy shift

from fossil fuels to renewable

energies.

With energy costs

increasing around the world,

experts are searching for

alternative ways to produce

energy, as many energy-

sector specialists stress the

importance of transition

from conventional energy

to renewable sources to

maintain growth while

highlighting opportunities

for the private sector in this

promising area.

We live surrounded by

energy: nature continuously

generates huge amounts

of energy, while of course

the most powerful energy

generator is the sun.

Watersheds alone have

a hydroelectric capacity

that is 80 percent of the

total energy consumed by

humans.

if harnessed, the wind

could produce twice as

much electricity as water

can produce today. And the

tidal rush could produce

half our power needs. This is

why all countries, especially

those that enjoy bright sun

or active wind, are pushing


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towards the intervention of

renewable sources as essential

elements in their energy

programs.

solar energy, and other

renewable energy alternatives

such as wind, organic waste,

the power generated by the

movement of tide and waves,

and geothermal fluids, has

attracted the attention of the

public and decision-makers

alike.

One of these recent

methods is the generation of

energy using geothermal heat

or that from decomposing

sewage. There is a lot of

energy in the ground, as

the temperature increases

through the earth’s crust by

an average of three degrees

for every 100m. This heat can

be used simply to provide

warmth in winter: fresh air,

which is supplied to buildings

and cools them in the

summer, can pass through

pipes into the ground to be

warmed in the winter.

emergence of the use and Development of Sustainable energy solar energy is one of our

most important energy

resources. it is inexhaustible

and its use goes back to

prehistory. Archimedes was

able to burn the Roman fleet

by focusing sunlight from

a distance using reflective

mirrors, and monks were

recorded using gilded

surfaces to ignite the altar

in the year 212 BCe. [author:

please confirm. in the call-out

(at the end of the document),

Archimedes’ date is given as

212 BC. Were the monks at a

different time?]

Archimedes was able

to burn the Roman fleet

by focusing sunlight on

it from a distance, using

reflective mirrors. in 1615 Ce,

scientist saomon de Caux

demonstrated the so-called

“solar motor,” which is a

set of lenses placed in a

particular configuration to

focus sunlight on a container

of water. When heated,

the air inside the container

expands and pushes the

water out in the form of a

fountain.

in 1747, the French

astronomer Jacques Casseni

was able to make a glass

burner with a diameter

of 112cm that reached a

temperature of more than

1000°C – sufficient to melt

an iron rod within seconds.

[author: please clarify – i

assume the burner used the

power of the sun?]

in 1875, the solar collectors’

world witnessed remarkable

progress with the design of

a steam machine generating

1.5kW of electricity. in the

period 1881–1884, John

ericson invented the “ericson

Circle,” which operates to

convert solar energy into

driving energy.

The solar machines

invented in the 1880s worked

only in the presence of

sunlight, stopping at night or

in cloudy weather.

Then, in 1893, the scientist

ML severy received a patent

for the invention of a solar

machine that operates 24

hours a day, storing energy

in batteries during the day to

be used after sunset.

in 1905, Boyle and edward

Wyman devised the first

solar machine: it produced

15kW of electricity in the

Californian desert.

in the 1930s, interest in solar

energy increased, especially in

the field of solar water heaters

with a capacity of 100–200L

[author: please clarify the

capacity: is it 100–200L?],

until the number of rooftop

heaters in 1960 in Japan

reached a quarter of a million.

The idea of solar batteries

also emerged in the

mid-1930s, while the area of

wind energy witnessed fast

growth in early 1981 [author:

COVER STORY

please check this date is

as intended: given the next

statement, should it be earlier

than this?], which resulted in

great efforts and ambitions

during the 1970s in research

and development, with studies

proving wind energy to be a

practical source of electricity.

Large numbers of wind-

operated machines are now

installed in many countries.

the Search for environmentally friendly fuel Although we are still

using gasoline and diesel

for transportation, plant-

originated fuel such as algae

is on the rise. Mobility fuel

extracted from various gases

has become fashionable

and is a vital area of

research. Biofuel is a friend

of the environment, since

the combustion process

produces an amount of

carbon dioxide equivalent

to that associated with the

growth of plants. Biodiesel

is produced from rapeseed

plants, corn, or sugar cane.

Rapeseeds can be processed

to produce power oil, which

Many countries seek to move towards eco-friendly energy sources instead of conventional fuel that strongly contributes to climate change


can be used as fuel for

modified diesel engines.

Gasoline in gasoline-

based transportation can

be replaced by bio-ethanol,

which is produced in a way

similar to synthesized yeast,

starting by fermenting then

distilling sugar cane, sugar

beet, corn, or grain.

ethanol is mixed with

gasoline in many countries:

Germany has had this mixture,

called the “super 10”, in its

markets since 2008.

in some Latin America

countries, gasoline is replaced

with twenty percent of

bio-ethanol. And since algae

produces oil, it is a suitable raw

material for biofuels.

Furthermore, the fact that

growing or collecting algae

requires ten percent of the

land needed for grow corn or

rapeseed, means that algal

cultivation doesn’t affect food

production.

some algae produce

very large amounts of oil,

making it suitable for aircraft

kerosene manufacture. At

present, scientists are trying

to produce ethanol from

wood and hay, or from plant

waste containing cellulose.

However, the dilemma is

that it is necessary to use

a specific type of enzyme

to break up the lignin in the

wood fiber into another

type of fast ignition sugar.

Current technology hasn’t yet

accomplished that.

Recently, the fossil

fuels market has seen the

introduction of many new

mining techniques, such as

hydraulic fracturing. Canada,

the usA and estonia hope to

achieve developments in this

regard, both on the economic

and industrial level.

However, environmentalists

are critical of hydraulic

fracturing because gas

generated can be traced

back to natural rock under

enormous pressure from

fissile chemical material in the

ground. However, it seems

that stopping such a process

is difficult, with the us

expected to rank first in fossil

fuel production, followed by

saudi Arabia.

renewable energy revolution ignites in KSa and the gulf economists warn that the

future of oil-producing

countries is threatened by low

oil revenues due to growing

use of alternative energy

in industrialized nations,

stressing that this trend has

become an obsession that

haunts the oil-producing

countries. experts estimate

the size of global investment

in solar energy to be

approximately usd20bn,

expecting an investment of

usd117bn in the energy sector

during the next 25 years.

For its part, the region’s

countries are paying great

attention to expanding

the horizons of the energy

sector to include alternative

energy, particularly solar,

wind, and nuclear power,

as the region currently

embraces dozens of

renewable energy projects

in various stages of

implementation, particularly

in the united Arab emirates

and saudi Arabia.

All GCC countries now

have clean energy plans or

targets and there are several

impressive steps towards

conservation. These include

saudi Arabia’s emerging

efficiency master plan , which

details the most effective

use of energy and optimizing

resources in all economic and

social activities, as well as

Abu dhabi’s comprehensive

cooling plan, the integration

of energy strategy in dubai,

innovation in green buildings

standards in the uAe and

Qatar, and Oman’s and

dubai’s work towards cost-

reflective utilities pricing.

Comprehensive development

strategies that aim at a “low

carbon pathway” or “green

growth” are also emerging in

Qatar and the uAe.

However, according to

figures released by the

Global Trends in Renewable

energy investment report,

global investment in

renewable energy reached

the highest level ever in 2011

as it registered usd257bn,

only 2.1 percent (usd5.5bn)

of which was acquired by

the Middle east and north

Africa. The statistics confirm

the promising prospects

and enormous opportunities

available to the region to

optimally employ alternative

energy resources and

achieve strong economic

returns to support the overall

development process.

The uAe has been

reported as a pioneer state

in the region, reaching a new

level of excellence in terms

of energy projects, as it

The Kingdom plans to produce 10 percent of its elec-tricity from the sun by 2020 and 25 percent by 2032. There is a great opportunity for KsA to become one of the largest users of solar energy in the world


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announced in 2009 a series of

strategic plans aimed at the

development of a “peaceful

nuclear energy program”.

in the Kingdom of saudi

Arabia, the King Abdullah City

for Atomic and Renewable

energy (KA-CARe) is

considered a quantum leap,

as it was established in 2010

upon a Royal decree to

oversee the development

of the energy system in

the long term in order to

build a sustainable future.

According to familiar sources,

there are plans to build 16

nuclear reactors with a total

capacity of 22GW, which is

equivalent to about half the

current electricity production

capacity in the Kingdom.

in a related context, an

opinion poll titled “Clean

Technology in 2013 for the

Middle east and north Africa,”

conducted by ernst & Young

(eY) in collaboration with the

Council of industries of Clean

energy and the Middle east

Association for solar energy

industries, showed that saudi

Arabia and the uAe are the

most attractive markets

for these technologies in


Africa. it also showed that

other markets such as Qatar,

Jordan, Morocco, and egypt

have great potential.

it is worth noting that solar

energy is considered the

first power source compared

with other renewable energy

sources in terms of growth

potential in various parts of


Africa.

in this context, nimer Abu

Ali, head of clean technology

services in the Middle east

and north Africa for eY,

said that saudi Arabia

and the uAe have huge

financial resources available

for renewable energy

investments. And even

though funding is important

in the development of clean

energy, there are other

aspects that play a role in

enhancing the attractiveness

of the market, as the size of

the market and the social

and political circumstances.

He added: “people currently

put greater confidence in

solar energy across the

Middle east and north Africa.”

saudi Arabia is expected

to be the most attractive

market in the next decade,

due to its ambitious plans

and the abundance of

financial resources available

to the KA-CARe.

saudi Arabia is one of the

first countries to support

renewable energy through

a variety of government

initiatives, including the

national initiative for the

production of water and

electricity using solar

energy under the auspices

of King Abdulaziz City for

science and Technology;

solar-powered electricity

production projects at

King Abdullah university of

science and Technology;

the solar village project;

and others. These initiatives

come in the light of the

growing area used to

collect solar energy world-

wide (about 140m square

meters), which increases by

about 10m square meters

annually, in addition to the

announcement of King

Abdulaziz City for science

and Technology of a national

initiative to produce water

and electricity using solar

energy at a cost of less

than sR1 per cubic meter

of water, and 3 halala per

kW of electricity per hour,

thereby reducing the cost

of producing water and

electricity by 40 percent.

The kingdom plans to

produce 10 percent of its

electricity from the sun by

2020 and 25 percent by 2032.

There is a great opportunity

for KsA to become one of

the largest users of solar

energy in the world. The

KA-CARe has recently

released an official report on

its specialized program for

the purchases of renewable

energy. The program seeks

to be one of the largest

sustained efforts of its

kind in the world, with the

construction of solar power

stations of 41GW by 2030.

According to the

participants in the eY poll,

solar energy has the highest

potential for growth across


Africa. Although most of

the solar energy projects

in the region depend on

photovoltaic technology,

the surveyed think that

concentrated solar power is

equally attractive.

if we want to truly enable

the solar energy market in

the Middle east, we will need

strong leadership by key

stakeholders in each of the

major markets, namely, saudi

Arabia, Morocco, uAe, Kuwait,

Jordan, and Qatar.

16 percent of the surveyed

said that the government

support for energy sources

based on fossil fuels (oil and

gas) is an impediment to the

development of renewable

energy, especially in the

countries of the GCC, which

strongly supports energy

based on fossil fuels in all

sectors of the economy.

nimer concluded:

“governments in the Middle

east and north Africa

realized that it is possible to

improve the sustainability

of their economies and

their sources in the long

term through the use of

alternative energy sources,

and investing in energy

efficiency. With the start

of the massive purchases

programs and running

the first stations, and the

application of government

policies, local investors began

to see attractive investment

opportunities in the

renewable energy sector”.

COVER STORY


in northern europe, on the western side of the scandinavian peninsula between finland and norway, is a country known for its dynamic economy and high level of welfare.

sweDen’s financial strength anD professionalism


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This country is sweden,

which launched the no Cash

initiative, developed clean

manufacturing technology,

and professionally overcame

the consequences of the

global financial crisis.

Strong economic record sweden has enjoyed a

prosperous economy which

provided a high level of

welfare for its population,

partly because it declared

neutrality during the First

and second World Wars,

avoiding many disasters.

This helped the country

in maintaining economic

stability and enjoying

prosperity after the wars,

leading to economic

development that placed

sweden in third place

globally in GdP per capita

in 1970.

The most important

characteristic of the swedish

economy in that era was the

close cooperation between

the government, trade

unions, and companies,

resulting in broad social

benefits. in the 1980s, real

estate prices skyrocketed

as the loan percentage

doubled, which was followed

by the restructuring of the

tax system to maintain low

inflation, in addition to the

international economic

slowdown in 1990.

Later, sweden managed to

overcome the crisis taking

place in the surrounding

areas and quickly recovered

its steady growth, proving to

be an effective model of the

required reform processes in

europe and the usA.

sweden was the richest

country in the world in 1968,

later became a socially

prestigious state in the 1970s

and 1980s, and then fell to

17th place in income, and

then it suffered a severe

financial and real estate

crisis in 1991.

But with the beginning of

the 21st century, sweden’s

economic growth become

greater than that of the

rest of Western europe or

the usA. Figures from the

iMP and OeCd showed

that the country has one

of the lowest inflation

rates in europe and that it

achieved a budget surplus

every year, while tax rates

on companies were far less

than those in the united

states. sweden also spends

a large share of its funds on

research and development,

as its companies enjoy

high competitiveness in

the global economy, and it

manages a significa.

Today, the swedish

economy consists of a

combination of a modern

distribution system, excellent

internal and external

communications and strong,

skillful labor. it is based

on timber, hydroelectric

power generation,

iron ore, engineering,

telecommunications,

automotive, pharmaceuticals,

and agriculture.

the financial crisis even though the global

financial crisis negatively

affected all developed

countries and paralyzed

their economies, sweden

was one of the very few that

have managed to overcome

sweden ranked fourth in the Competitiveness index of the World economic Forum in 2009/10 and rose to second in the World Competitiveness Report for 2010/11

REPORTS


the obstacles posed by

the crisis, as it successfully

emerged from the economic

recovery process, achieving

rapid growth. The swedish

economy also created jobs

and gained competitive

advantages, while the

housing sector boomed

as the banks provided

facilitated loans.

sweden was not immune

to economic collapse, but

it successfully achieved

recovery, as its 5.5 percent

growth rate exceeded that

of the u.s. (2.8 percent),

and the swedish economy

became stronger compared

to all other developed

countries within europe. its

peak unemployment rate

no-cash state in 1661, sweden was one of

the leading countries in the

printing and circulation of

banknotes, but it is currently

moving to eliminate

banknotes and coins, as they

are unattractive.

Most swedish cities no

longer use banknotes, while

many large companies only

accept credit cards, and

public transportation, for

example, no longer accepts

cash. The early effect is

declining rates of crime,

particularly bank robberies

and transportation theft.

However, there has been

an increase in the rates of

cybercrimes.

toward clean technology The prosperity of the

swedish economy is

due to the activity of a

variety of sectors, most

notably technology,

since sweden is a world

leader in the development

and application of clean

technologies, opening many

opportunities for investors to

enter high-yield investments

in the field of renewable

energy and sustainable

technologies. innovative

swedish clean technology

companies have acquired

worldwide recognition

for their new approaches

to solving pressing

environmental issues by

developing methods of

generating clean energy

technology and maintaining

water resources, such as

bio-energy generation and

the development of biofuels

and green buildings.

Given the experiences

of sweden in the fields

of bio-energy, bio-fuels

for transportation, solar

energy, wind-generated

energy, green buildings,

heating and cooling, and

sanitation, the Arab region

has an opportunity to

take advantage of those

experiences through the

exploitation of natural

resources to produce

sustained energy.

Diversified economy The swedish economy is

based on a set of unique and

particular elements since it

is generally oriented toward

exporting and expanding

foreign dealings, in addition

to being diversified. The

main highlights of this

economy are its modern

distribution system based

on excellent communication,

both internally and

externally, and skilled labor,


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in addition to—according to

international standards—a

huge and sophisticated

manufacturing sector, a

small business service sector

seeking development, and a

large public service sector.

Given the swedish

economic resource base,

we find that it relies mainly

on wood, electric power

generation, and iron.

The engineering sector

is the most prosperous,

accounting for about

50 percent of the

country’s production and

exports, followed by the

telecommunications sector,

the automotive industry,

and pharmaceuticals, while

the proportion represented

by the agricultural sector

does not exceed two

percent of the GdP and

employment.

With regard to swedish

major corporations in terms

of circulation and trading,

there is a prominent group

of companies including

Volvo, ericsson, Vattenfall,

skanska, ikea and Volvo..

The activity of these

companies and others

indicates that industry in

sweden is primarily under

the control of the private

sector.

As for the per capita

income of the swedish

citizens and its annual

growth and its impact on the

country’s macroeconomy,

the GdP per hour worked

in sweden is ranked ninth in

the world, peaking in 2006

at about usd31 per hour,

compared to usd35 in the

united states.

As a result of the economic

prosperity of the country,

sweden ranked fourth in

the Competitiveness index

of the World economic

Forum in 2009/10 and

then rose two in the World

Competitiveness Report for

2010/11.

With respect to the

efficiency of the private

sector, sweden was ranked

sixth in the Financial

Management Yearbook of

2009. And according to

economic analysts, sweden

is expected to become

a magnet for ambitious

talent and labor because

its businesspersons acquire

the most creative european

factors in the business field,

namely talent, technology,

and tolerance.

sweden enjoys large-

scale commercial exchange,

particularly with Germany,

the usA, norway, the uK,

denmark, and Finland. As a

result of deregulation and

the rapid development of

globalization, the average

inflation in the country was

one of the lowest in europe.

it is noteworthy that, though

sweden is part of the

schengen area and the eu

single Market, the swedish

markets use the local

currency (the krona).

talking volvospeaking of leading

companies in sweden, Volvo

is the first name to come to

mind. it was founded in 1915

as a subsidiary of a group

(svenska Kullagerfabriken

AB) that specialized

in manufacturing ball

bearing machinery, metal

seals, lubrication systems,

electro-mechanical and

electromechanical engineering

products, and services related

to these products. The

company launched its car

industry in the swedish market

in 1926 and soon attracted the

attention of the european and

scandinavian markets, which

led to increased demand

for its products. Volvo has

recorded many achievements

in the field of safety, security,

environmental durability, and

lighting.

due to the prestigious

reputation enjoyed by Volvo,

many companies were keen

to represent it in the global

markets, including the Arab

markets, and the Gulf in

particular; where AlKhorayef

represents Volvo Penta in

the saudi market and has

provided many products

related to Volvo within its

activity in the irrigation,

agriculture, industry, and

maritime sectors, such

as electrical generators,

horizontal and vertical

electronic motors, control

panels, and others.

REPORTS


crane talkthe crane is one of man’s oldest inventions. according to a poll conducted by british magazine fox, the crane – or more generally ‘handling equipment’ – is ranked 16th of the top 100 inventions that have had the greatest impact on history. you could say that the crane, which has evolved through the ages alongside changing architectural styles, has had a crucial role in building civilizations, not just buildings.


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Asked about the most

important modern cranes,

engineer Fahd Al-Jadaan,

marketing director of

Alkhorayef Commercial

Company, stated: “Among

the most prominent

contemporary images of

cranes are forklifts, port

handling equipment and

transfer tubes. The most

famous global brand for

handling equipment is Linde.

The products of its German

factories can be found in

many countries, including

Germany, France, Britain,

the united states and China.

Alkhorayef Commercial

Company represents the

famous Linde brand in saudi

Arabia.”

Regarding the decision

by Alkhorayef Commercial

Company to establish a

partnership with Linde

for providing its products

to the saudi market, eng

Al-Jadaan said: “Our

partnership with Linde

started in 2005, and

the launch of the actual

business with them was in

2006. Our choice of Linde

stems from the high quality

of its products and its

international reputation. it

occupies the first place in

europe, and is among the

world’s leading companies

for forklifts and internal

handling equipment in

warehouses. Linde is also

one of the main companies

manufacturing hydraulic

movement systems,

which are used mainly in

construction, and it has

many patents in this area.

Linde has created many

solutions and innovative

applications using modern

technology, including

electric forklifts, winches

with diesel or gas engines,

container handling

equipment, all types of

special equipment for

warehouses, and electrical

systems that can lift loads

ranging between 1 and 16

tons.”

Al-Jadaan added: “The

high quality of these

products has contributed to

the success of the industrial

department at Alkhorayef

Commercial Company.

We have many successful

partnerships with large

companies operating in

the Kingdom, including

Aramco, sABiC, Almajdouie,

unicharm, Al-Manjam,

Al-Marai, nadec, Al safi,

Alothaim and Jotun.

“We enjoy a worldwide

reputation for high quality

and an excellent after-

sales service, which has

earned us the appreciation

of our existing and new

customers. The industrial

section has achieved very

high growth rates, and there

are many opportunities

that will provide continued

growth through the

coming years – God willing

– as an extension of our

successes in machinery and

equipment. We received

the Volvo Penta Award for

excellence in performance

and the Volvo Cup for

excellence in performance,

four times in five years, as

a distributor of agricultural

and industrial products

“Our investment in our

industry potential has

increased the added-value

of our products and we can

provide tailored solutions

SECTORS REPORT

The most important forklifts offered by the company are diesel and gas systems, electric winches, heavy winches, shipping container systems and shelving for shipping containers.


for local projects. Without

doubt, the economic

growth, which applies to

most business sectors in

the Kingdom, especially

infrastructure, will enable

Alkhorayef’s industrial

section to achieve high

growth rates for handling

equipment, forklifts for

factories and warehouses,

and equipment for

advanced storage systems.

“The most important

forklifts offered by the

company are diesel and

gas systems, electric

winches, heavy winches,

shipping container systems

and shelving for shipping

containers. Handling

equipment includes manual

transmission platforms,

transmission equipment,

electric withdraw

equipment and distribution

systems that can lift 3 to 8

tons. storage equipment

includes electric winches

for warehouses with very

narrow lanes (less than

1800 mm). We are keen to

highlight and demonstrate

the importance and uses of

these specialist products,

such as in the saudi

Construction exhibition

in Riyadh, and the Fourth

exhibition for Transport,

Loading and storage

equipment, and Regional

support, which was held in

dhahran, dammam, at the

end of last year.

“The reality of the

material handling sector in

the Kingdom indicates that

there is still a significant

market demand for

these products with the

increasing population.

There is an escalating

demand for logistics and

warehouse solutions,

especially in the food

and construction sectors.

And since the Kingdom

occupies the fourth place

globally for logistical

support, and due to the

company’s keenness to

participate and contribute

to national development,

we are working diligently to

implement the company’s

strategic plan to expand

its participation and

investment in this area.”

Cranes help to reduce

effort and increase the

speed and accuracy of

working. They reduce risk

and they reduce the time it

takes to deliver products,

shipping costs and fuel, and

create many jobs.


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SECTORS REPORT

eng. Al-Jadaan: The reality of the material handling sector in the Kingdom indicates that there is still a significant market demand for these products.

According to Wikipedia: “A crane is a type of machine, generally equipped with a hoist, wire ropes or chains, and sheaves, that can be used both to lift and lower materials and to move them horizontally. It is mainly used for lifting heavy things and transporting them to other places. It uses one or more simple machines to create mechanical advantage and thus move loads beyond the normal capability of a human. Cranes are commonly employed in the transport industry for the loading and unloading of freight, in the construction industry for the movement of materials and in the manufacturing industry for the assembling of heavy equipment.”

The first description of a crane dates back to the year 260 BCE, in the writings of the Greek scientist Archimedes (287–212 BCE), who invented what was later known as the Archimedes screw. This is a cylinder with an internal spiral. When the cylinder

spins on its axis, it can lift water, either for drinking or irrigation. This screw is still used today in some agricultural environments, although there have been many developments in how it is rotated, starting from the Roman era. The traditional system currently used by some Egyptian farmers has a disc of about 35cm in diameter, and a length of about 2.5m.

One recent form of crane is the elevator, which actually dates back to about 2400 BC when the Egyptians used it in a primitive way – powered by people or animals – for building temples, homes and graves. The crane was also used by the Romans, who invented the pulley. This led to the development of the primitive elevator, which has contributed to accelerating the movement of construction materials.

After various improvements, elevators were used for lifting people. This led to several kinds of crane that allowed the construction of giant towers and skyscrapers all over the world.

Brief hiStOry


optimizing factory safety

And in order to entrench

awareness of numerous

basics of occupational and

health safety in many areas

and domains, we decided

in this issue of AlKhorayef

Magazine to address the

subject of occupational

safety in factories, which is

one of the most important

places where the worker

needs to be aware of all the

foundations and rules of

safety and security.

Proper lighting Of the most important

things that need to be

taken into account when

since it is most closely associated with health and well-being, and the priority in attention and care; occupational and health safety topped the priorities of those responsible in different business sectors in the kingdom of saudi arabia; similar to other industrialized countries in the world.

processing a factory, and

directly before starting

business, is its own lighting

in all ancillary facilities, as

gas lamps are usually used

for lighting work surfaces.

According to specialists,

the globally agreed on

in factories is that the

illumination intensity ranges

between 10 and 25 percent

of natural light on a bright

day, and the reason for the

disparity in the ratio is that

work in factories is done

with different materials and

different colors, and less

reflective from the paper

used in offices. The more


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attention to the clarity of

lighting in factories, the

more the production and

productivity of labor will

increase.

it is worth noting that

some industrial tasks

require additional lighting

or complementary

brightness that could reach

the brightness of natural

lighting during a bright

day, such as the industry

of precision machinery

compilation, watches and

cameras, as well as drawing

offices, where painters and

artists prefer a high level of

lighting.

Those responsible for

the lighting of factories are

required to take a range

of important matters into

consideration, including

the ease of cleaning and

maintaining light sources;

because the heat lamps

cause an upward stream of

air carrying dust particles

OCCuPATIOnAl SAFETY

from the workplace, thus

accumulating on the

reflective surfaces of the

light which leads to dimming

its lit. Also, heat emitting

from light sources and

instruments and objects and

workers themselves require

adequate ventilation for light

sources to mitigate the heat

and keep glowing, because

excessive heat reduces the

light shine and yield. it is

also necessary to adopt a

lighting method starting

from a height while leaving

spaces and symmetrical

distances between the lights

in large - high ceiling plants,

and using a lighting style

based on continuous rows

and installing lights above

the lines of action on the

appropriate height in order

to integrate with daylight or

replace it entirely at night in

the rest of the factories.

More accurately, it is

preferable that the intensity

of light in the place of

examination at the plant

is equivalent to 50 lumens

per foot, and the intensity

of light in public offices and

accessories for the plant

equivalent to 30 lumens per

foot, and 50 lumens per foot

in warehouses.

Minimum noise Although the factories of

the most-emitting noise in

general, however, excessive

noise affects workers and

the population living in

the sites surrounding the

plant; since it dangerously

influences the audio senses

(hearing) and harms human

health directly. Therefore, it

is no allowed to carry out

any activity in the factory

that causes noise to an

extent of inconvenience or

danger, which exceeds the

allowable limit of 70 dB.

saudi Arabia follows the

internationally scheduled

noise rate which ranges

between 40 and 70 dB in

industrial areas.

ventilation and temperature From the most basic

foundations of occupational

safety in factories is not

to allow the performance

of any act that results in

severe glow severe and

elevated temperatures from

exposed source, or a force

resulting in disturbance

or light reducing. Heat or

glare should be limited

inside completely sealed

buildings, designed to

withstand the heat, away

for worker’s direct exposure.

it is also essential to take

into account the ambient air

temperature; therefore must

consider the temperature

at 50 when designing

protection devices.

The ventilation rates range

according to industrial

purposes, but it is basically

known that all the air vents

must be provided with sand

traps, and all the entrances of

fresh air should be provided

with insect-preventing nets.

All ventilation and

air-conditioning equipment

must be designed to work

for 24 hours, and when

the external temperature

reaches the maximum of 50

degrees Celsius, in addition

to providing all warehouses

with ventilation systems at a

rate of no less than ten times

the change of air per hour.

As for the administration

building and all control and

electrical panel rooms, they

should be air-conditioned

and provided with

Programmed Control and

Operation system, as well as

the use of air-conditioned

curtains for frequently open

doors in air-conditioned

areas.

With regard to the

standards of air quality, the

annual average concentration

of sulfur dioxide must not

exceed 85 kg / m 3 (3 ppm)

in any location, and the

annual average concentration

of inhaling particles must

not exceed 85 micrograms

/ m 3 at any site. The

average concentration of

photochemical oxidants such

as the Ozone should not

exceed 295 micrograms / m

3 (15 ppm) per hour, more

than twice in any location.


recorD investment

so says engineer Abdullah bin Abdulrahman

AlKhorayef, VP Real estate development at

Abdullah ibrahim Alkhorayef & sons Company,

explaining the philosophy underlying the work of

this section, which officially began its operations

in 2009 with the mission ‘to be the investment

arm serving the interests of the company,

foreseeing the future and attracting expertise

capable of achieving excellence, according to a

work plan extending to year 2020.

“These achievements are not limited to the

completion of the construction phase but also

include the development of strategies for each

real estate individually and the valuation of

properties and conducting feasibility studies for

each property, signing contracts with operators

and contractors, and obtaining building permits.

All this falls within the great effort required

for processing and preparing the real estate

portfolio,” says AlKhorayef.

The company’s interest in real estate

development stems from realizing the importance

of “this promising sector in light of the growing

population and the large real estate boom taking

place in the Kingdom.”

He also tackled the beginning of the company’s

journey in real estate development, pointing

out that “this activity is not a new phenomenon

but coincided with the beginnings of the

According to the strategic plan of the Real estate development department of the company, a large set of new and ongoing projects is proceeding

“small deliberate achievements lead to concrete significant achievements.”

establishment of the company when

it purchased a group of real estate

properties, farms, and warehouses in

a number of regions of the Kingdom

and then worked to develop them,

yielding the best investment returns

for the company.”

AlKhorayef says that the division

achieved success despite challenges

faced by the real estate sector in the

Kingdom over the past five years,

including having only a maximum of

10 specialist employees. The reason

for this success is the strategy of

developing more than one project

at a time and not relying on only

one contractor, as well as the

diversification among residential,

commercial, industrial, and other

investments. examples include

successful projects in Riyadh, such

as Alysia Land and shumaisi sorties

(headquarters of the old company),

the Al-Yasmin neighborhood (Higher

education Fund), the branch of the

saudi installment House on Khurais

Road, and the AlKhorayef Center

project on the road to Medina in the

city of Jeddah.

Promising projects According to the strategic plan, many

new projects are being implemented,

including the recreation of the

company farm on the dirab road to

Riyadh which received an award for

best design in an exhibition in the

netherlands for its combination of

ancient and modern civilizations.

in addition, the division is currently

Design for Khobar project


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working on the implementation of

the Al-Kharj Road project, which

includes commercial buildings

comprising offices and showrooms

with a distinctive design located in a

vital location on Al-Kharj Road next

to the Al-nakaha Hospital in Riyadh,

with an area of 20,000 square meters

and designed by the sustainable

Architecture engineering Consultants

Company.

The AlKhorayef Plaza project, a

shopping mall in Al-Qassim, was

built on a 9,258-square meter site

in the business district on King

Abdul Aziz Road in the heart of

Buraidah. This plaza boasts a modern

design by Qdesign for engineering

designs to keep pace with the urban

development of the Qassim region.

On 26 February, an agreement

was inked with Ram Construction

Company for the implementation of

the project.

during the same month, the

company signed an agreement with

the interContinental Hotels Group to

operate four-star luxury hotel suites in

REAl ESTATE DEVElOPMEnT

REPORT

real eState DevelOPMent JOurney

The development journey begins with

inventing the idea and ends with the

achievement of this idea on the ground. in

the world of real estate development, the

journey begins with an idea, followed by

an evaluation and feasibility study, then

negotiating contracts for implementation

and compliance with the terms of the

negotiation, triggering the construction

phase to transform the idea into something

tangible, followed by launching the

actual operation of this entity, and finally

managing it to achieve the greatest return

at the lowest cost.

According to the old saying, “necessity

is the mother of invention”. A good idea

stems from a problem faced by the

consumer, and an outstanding developer

who is always aware of the needs of the

consumer steps in to meet them and then

convinces the consumer that the product

is the perfect choice for him and the best

solution to his problem.

the eastern Province under

the slogan “steiberdj”. The

agreement was signed by

both the Chairman of the

Board of directors, and

Giovn Pascal, representing

the interContinental Hotels

Group (iHG).

steiberdj will be a key

element in the AlKhorayef

Tower, located on King

Fahd Road between

dammam and Al-Khobar,

one of the most important

projects of the Real estate

development division at

the company, which will

include a tower consisting

of 16 floors in addition to

a commercial suite center

boasting several brands,

restaurants, and services,

in addition to a modern

architectural design, which

makes it one of the most

important architectural

edifices in the eastern

region.

Design for Buraidah project Design for Dirab farm project


how to transform your company successfully

there are many reasons for companies to consider change. the process usually starts when individuals or groups begin to look at the company’s competitive situation, market position, technological trends or financial performance. but no effort of change can be successful without going through a series of important steps, bearing in mind that transformation might take longer than you think…perhaps years or decades.

source: an article by john p. kotter in order to achieve change successfully, having

strong leadership is a priority. Without a CeO or a

division manager who is capable of starting change,

but who also has the strength to see the process

through, it will be impossible to achieve.

sometimes it is not obvious that a company needs

to change its vision and it might be even more

difficult to convince employees that there is need

for change. Therefore in order to get through the

transformation alive and well, it is important to pass

through a series of phases. Keep in mind that it easy

is to veer off course, so stay focused and follow

these steps.


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ACADEMIC ARTIClE

in successful transformations managers actively look for ways to achieve clear performance improvements, and establish new goals in the yearly planning system

Create a state of urgencyThe starting point is creating a

state of urgency among your board

members and employees. This is

essential because just getting the

transformation started requires the

“aggressive cooperation” of many

individuals. This may sound easy, but

it’s not. According to management

writer,John P. Kotter, well over 50

percent of the companies fail in the

first phase. There are many different

reasons for failure. sometimes

executives underestimate the difficulty

to motivate individuals to go out of

their comfort zones, for example, or

they may be afraid that by starting

a revolution of change it will lead to

short-term business losses and they

will be blamed for creating a crisis.

Transformation often begins well

when an organization has a new, gifted

leader. A pair of fresh eyes can easily

notice the flaws of a current system

and thus he or she will be eager to

change. if the target is to renew the

whole company, then the CeO is key;

and if change is needed in a division

the general manager is the key. if these

individuals are not new leaders or

great leaders, the first phase can be a

huge challenge.

Bad results can sometimes be a

blessing within a company because

it stirs discussion among employees

and as a result it will be easier to

convince them of the need for

change. successful examples occur

within companies that facilitate a

frank discussion about potentially

unpleasant facts such as decreasing

market share or other characteristics

of a declining competitive position.

nevertheless, it doesn’t matter how

you get to the point of realizing that

your company needs change. it is

important to pump up the urgency

state high enough; executives can start

discussing the problems the company

faces so that they and the employees

can collectively come to a solution

for the existing barriers. if the level

of high urgency is not accomplished,

the transformation process cannot

proceed and the long-term future of the

company is put into jeopardy.

form a powerful coalitionAfter establishing a state of urgency the

next step is to form a strong guiding

coalition. in general, senior managers

represent the core of such a group, but

sometimes you find board members or a

powerful union leader as well. depending

on the level of urgency, initially it is

possible that not all employees are

convinced to join the coalition, because

they simple won’t buy in. Therefore

prepare properly, before you announce

the need to change, so that it becomes

easy to support your claim.

The size of a company matters in

the second stage, primarily because

small companies only need three or five

people as a successful guiding team

whereas big companies need at least

a group of 20 to 50. in this case not

only executives form the group, but

also regular employees, therefore it is

important to create a minimum level of

trust and use effective communication

in order to encourage them to actively

participate in the transformation

process.

Companies often use off-site retreats

as a means to involve employees.

it gives a break from the office and

creates an informal setting to freely

discuss the issues, thus unifying them to

create a powerful coalition with strong

leadership. This will make it easier to

maintain a durable hold so that you can

start focusing on the third phase of the

transformation.

Create a visionThe guiding coalition’s mission at

this point is to create a vision -- a

picture of the future that is easy to

communicate and captivates customers,

stakeholders and employees alike. A

vision must help clarify the direction in

which an organization needs to move

and it must avoid creating confusion

among the employees that could lead


to incompatible projects

and subsequently take

the company in the wrong

direction.

The first draft of a vision

mostly comes from one

person and could be vague

and difficult to follow. But

after the guiding coalition

develops it, a well prepared

vision will emerge through

their tough analytical thinking.

eventually, they also will have

developed a strategy for

achieving that vision.

it is important to keep

the vision short and sharp.

According to Kotter: “A useful

rule of thumb: if you can’t

communicate the vision to

someone within five minutes

or less and get a reaction that

signifies both understanding

and interest, you’re not done

yet with this phase of the

transformation process.”

Communicate your visionAfter you have agreed

upon a concise vision,

the next step is to

remove obstacles to new visionCommunicating your vision

is not enough. You also

must remove any obstacles

standing in the way of the

new vision. This could be

the organizational structure,

where narrow job categories

can undermine efforts to

increase productivity or make

it difficult to think about

the customers, for example.

sometimes the obstacle

might simply be an employee

who initially agreed with the

new vision, but did not put

any effort into changing his

behavior. This situation can

halt a transformation process,

especially when co-workers

do nothing to influence him.

it is important to realize that

obstacles must be confronted

and removed, especiqally the

big ones. And if a person is

the blocker, he or she must

be treated fairly in a way that

is consistent with the new

vision.

Create short-term goalsCreating short-term goals

is very important. Without

visible progress, people will

give up and eventually lose

their commitment. They

might even join the ranks

of those who have been

resisting the change from

the beginning. Therefore

it is crucial to plan short-

term goals and strive to

accomplish them within 12

to 24 months. Celebrating

short-term success will keep

both you and your employees

motivated to continue the

long journey ahead.

in successful

transformations managers

effectively communicate

it. Transformation requires

short-term sacrifices but

generally employees are

not ready for sacrifice even

if they are unhappy with

the status quo, unless they

believe that useful change is

possible. Therefore credible

communication, and a lot

of it, is essential to capture

their attention.

use all proper channels

as possible to communicate

the new vision. A successful

executive turns boring

company emails into lively

articles about the vision,

and turns endless meetings

into exciting discussions.

if downsizing is part of

the new vision, it might be

more challenging because

people’s jobs are at stake.

You would probably want to

send a message explaining

why this step is important

to implement the vision,

at the same time showing

commitment to treat those

who have been laid off fairly.

actively look for ways to

achieve clear performance

improvements, and establish

new goals in the yearly

planning system. This is

done by achieving the

planned objectives. Of

course rewarding the people

involved with recognition,

promotions or even money

will definitely keep hopes

up, especially because the

transformation process

takes such a long time.

Commitments to producing

short-term wins help keep

the urgency level up and

forces detailed analytical

thinking that can clarify or

revise visions.

Commitments to producing short-term wins help keep the urgency level up and forces detailed analytical thinking that can clarify or revise visions


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Stage aCtiOnS neeDeD PitfallS

establish a sense of urgency

• examine market and competitive realities for potential crises and untapped opportunities.

• Convince at least 75% of your managers that the status quo is more dangerous than the unknown.

• underestimating the difficulty of driving people from their comfort zones

• Becoming paralyzed by risks

Form a powerful guiding coalition

• Assemble a group with shared commitment and enough power to lead the change effort.

• encourage them to work as a team outside the normal hierarchy.

• no prior experience in teamwork at the top

• Relegating team leadership to an HR, quality, or strategic –planning executive rather than a senior line manager

Create a vision • Create a vision to direct the change effort.• develop strategies for realizing that vision.

• Presenting a vision that’s too complicated or vague to be communicated in five minutes

Communicate the vision • use every vehicle possible to communicate the new vision and strategies for achieving it.

• Teach new behaviors by the example of the guiding coalition.

• undercommunicating the vision• Behaving in ways antithetical to the

vision

empower others to act on the vision

• Remove or alter systems or structures undermining the vision.

• encourage risk taking and nontraditional ideas, activities, and actions.

• Failing to remove powerful individuals who resist change effort

Plan for and create short-term wins

• define and engineer visible performance improvements.

• Recognize and reward employees contributing to those improvements

• Leaving short-term successes up to chance

• Failing to score successes early enough (12 – 24 months into the change effort)

Consolidate improvements and produce more change

• use increased credibility from early wins to change systems, structures, and policies undermining the vision.

• Hire, promote, and develop employees who can implement the vision.

• Reinvigorate the change process with new projects and change agents.

• declaring victory too soon – with the first performance improvement

• Allowing resistors to convince “troops” that the war has been won

institutionalize new approaches

• Articulate connections between new behaviors and corporate success.

• Create leadership development and succession plans consistent with the new approach.

• not creating new social norms and shared values consistent with changes

• Promoting people into leadership positions who don’t personify the new approach

idea in practiceTo give your transformation the best chance of succeeding,

take the right actions at each stage – and avoid common pitfalls

ACADEMIC ARTIClE


10 StePS tO eStaBliSh a SMall BuSineSS

Have an idea

Identify the source ofprofit or benefit

What is the value anduniqueness of your idea

Make plans toshape the idea

Set budget andacquire resources

Consult experts

Formulatemarketing plan

Conduct acompetitor analysis

Draw up a plan of action

Build your team and startbravely1

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the late Sheikh abdulrahman alKhorayef: Before entering the business world, one must find a safe source of capital and financing, and choose the area carefully and scientifically, and have morals, honesty and self-confidence. As for the youths who rush wealth by any means, the only way to achieve it is by burglary, because the halal (righteous) profit requires effort and patience to bear the suffering.

the thousanD miles-trip starts with one step:

.01 02

Take advantage of the available feasibility studies

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InFO GRAPHIC

Do not rush success at the beginning of your business

Identify your clients and whether you want the marketing to target corporates, individuals, family, a combination of all or government departments?

To start small and then get bigger, is better than to start big with loans and debt.

The recipe of failure is the presence of a perfect service or product without a professional devoted employee to provide it to the customer.

Some pioneers of small business ignore the cornerstone of their projects, namely, marketing, and consider that the art of marketing is expensive and useless. But successful businessmen believe that marketing is a long term investment with great returns. So, invest in the marketing field and you will achieve wonders.

never hesitate asking about things you don’t know, or how t address problems you encounter. Ask experts, businessmen, managers and even college professors, because they have great experience and more precise methodology than anyone else.

If you do not achieve success in your business, stop! There is a flaw... make modifications, attract talent, change the environment, and start again with new and clear objectives.

If you did not succeed in your project stop, something is wrong

a wOrD Of aDviCe

Al Khorayef Printing Solutions is a leading company in processing

printers and packaging presses. Our products are used to print

books, newspapers, magazines and advertising materials, such as

cardboard and plastic boxes.

Since 1975, we have represented the best manufacturers of printing

equipment, materials and paper. We focus on quality products and

excellence in after-sales services to our customers, with whom we

aim to build productive and mutually beneficial partnerships.

Part of Alkhorayef Group

P.O.Box 4605 Riyadh 11412kingdom of Saudi ArabiaT +966-11-4786161F +966-11-4775439

إحدى شركات مجموعة الخريف

ص.ب 4605 الرياض 11412 المملكة العربية السعودية

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