BPAmoco Finland Executive summary June 21, 2000 Lauri Eskola Daniel Messmann Essi Keltomäki Jani Ojala Petteri Urmas

Agenda Overview Organizational structure Job description, job specification Recruitment and selection Training Appraisal and compensation

Mission statement & Values ”We involve our whole value chain to provide high quality products to our customers 24 h a day. Our business is serving the motoring public.” Our core values are: environmental and ethical responsibility employee satisfaction totally meeting customer needs

Objectives I BPAmoco Finland will become the regional center of excellence –Establish a valid model for Russia and Baltics –Train personnel in Finland Build market share by creating a strong brand name –Permanent and wide availability –Superior service –BPAmoco quality image

Objectives II BPAmoco best practices utilized: ”Think Globally, Act Locally” –long-term internal and external relationships –promote cost-effectiveness –Provide standardized and high quality product –location close to population centers and main transportation routes.

Policies I Have the right person to do the job –promote from within if possible –employ local personnel if possible Regular measurement of performance Individual goals vs. corporate goals Flat structure, efficient and flexible organiaztion Corporate culture

Policies II Build long-term commitment and seek for potential talent Employee empowerment Make use of technology –reduction of labor costs –effective communication –up-to-date information Importance of communication Outsourcing

Organizational Chart

Outsourced Activities Legal assistance Maintenance Security IT- services Logistics Some HRM activities Corporate level vs. Facility level –importance of communication and coordination

Analysis of the Organizational structure Distribution of responsibility and clearly divided tasks Outsourcing  concentrate in our core competences Decreased hierarchy –improved communication

Board of Directors Members –CEO Finland –VP Finance –BPAmoco Representative –Recognised executives Tasks –control and expertise –relations to UK HQ –community relations

Management Team Members –CEO Finland –Functional VP’s Finance, Marketing, HRM, Purchase & Logistics –Country VP’s Tasks –setting overall strategy; visions and values –cross-functional operations

CEO Finland Duties “The Captain” Reporting to BPAmoco UK HQ Providing vision and strategy Running the operation –Communicating with Country VP/Functional VP Keeping contact with local authorities Specifications Master´s Degree 12+ years of experience in top mgmt Strong leadership and communication skills Russian language skills preferred

Country Vice President Duties Reports to the CEO Communicating with functional VP´s and Regional Managers Implement and control business plan Supply strategic visions Specifications Master´s Degree Fluent in English and local language 10+ years in upper middle mgmt position Great knowledge and understanding of the culture and market

Functional VP Duties Reporting to CEO Interaction to other VP´s Short and long term planning MKTG: 4 P´s (price product, placement, promotion) Finance: Investment planning and control Logistics: network Specifications Master`s Degree in their area Fluent in English 10+ years in middle mgmt position in their field Strong interpersonal/facilitation skills Team work attitude

Human Resource VP Duties Recruitment program Implement corporate policies and values Relationships with unions Compensation Training Performance appraisal

Regional Manager Duties Reports to country VP controls and supervises Facility managers Observing outsourcing evaluation Organizes area development/activities Manages the regional budget Specifications Bachelor´s degree Fluent in English and Finnish 8+ years of experience in management position Willingness to travel regionally Strong communication and interpersonal skills

Facility Manager Duties Reporting to Regional Manager Responsible for Ass. Facility Managers Responsible of controlling and coordinating the complex (e.g. mktg,promos) Evaluates outsourcing needs Implementing community activity Specifications Bachelor´s degree Fluent Finnish, good skills in English Ability to work individually and in a team some years of previous work experience in service industry

Assistant Facility Manager Duties Reports daily to Facility Manager Oversees quality of franchisees On-site manager of facility Takes care of maintenance and repairs Specifications Polytechnic degree Fluent in Finnish, moderate skills in English Some previous service work experience Self-motivation and willingness to adapt Ambition for future advancement

Job markets Finland –Adequate supply of applicants for entry- level positions –Weaker candidate pool for mid- management Baltics and Russia –Sufficient pool of qualified applicants

Recruitment by position: CEO and VPs –Internal recruitment and Headhunters trade-off corporate vs. local culture –Aim is to create a mix of expertise in corporate and Finnish cultures in the upper management

Recruitment by position: Regional Managers –Professional organizations –Business newspaper ads –Internet –Internal recruitment in the future

Recruitment by position: Facility Managers and Assistant Facility Managers –Internet –Universities and Polytechnics Career Fairs –Educational institutions –Public Employment Agencies –Newspaper ads

Recruitment of trainees –Internet –Universities and Polytechnics Career Fairs –Newspaper ads combined with the ads of Facility Managers and Assistant Facility Managers

Supervisory interview Medical examination Hiring decision Selection process Initial interview Employment tests Background investigation Preliminary selection Application screening

Employment tests Psychological and honesty test Teamwork ability test –Standardized measure of behavior –Prediction of job performance

Background investigation Check references and work history Good citizen (criminal record) –Reliability of applicant –Personal opinions of applicants, acquaintances –Deeper understanding of applicant

Preliminary selection Ranking of applicants based on previous processes –Initial interview –Employment test –Background investigation Select the best candidates for “second” round

Supervisory interview In depth panel interview, behavioral type questions closest supervisor, consultant and representative of HR department –Multiple opinions –In depth knowledge about applicants behavior and decision making capabilities

Medical examination Test held by professional medical institution –Drug test –Physical health not the basis for selection Protection against possible later law suits Concern about the welfare of employees

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

Initial Selection Process Application Screening Initial Interview Employment Tests Background Investigation Preliminary Selection Supervisory Interview Medical Examination Hiring Decision CEO and VP’s HR UK Outsourced HR UK BPAmoco UK Outsourced

Initial Selection Process Other positions Outsourced BPAmoco Finland Outsourced BPAmoco Finland Application Screening Initial Interview Employment Tests Background Investigation Preliminary Selection Supervisory Interview Medical Examination Hiring Decision

After start-up The selection process conducted entirely by the Finnish HR Department –employment tests outsourced –medical examination outsourced BPAmoco UK has the power to hire the CEO and VP’s

Training HR department and managers scan the workforce and identify training needs Objective: Balancing individual KSA’s and organizational needs and goals

Orientation Package Copy of specific job goals and descriptions List of training opportunities Copy of policy handbook Current Organization Chart List of key terms unique to the industry, company and/or job List of employee benefits

General Training Objectives To promote loyalty to the organization To increase productivity and profitability To improve work environment and employee morale To enhance career advancement and development

Top Management Training Program Preliminary orientation session in the UK by HQ –Objectives: Creating common corporate culture and internalizing policies and procedures Building internal relationships Easy information flow and communication

Continuous Training –Seminars and conferences –Computer based training (internet) –Crisis management and conflict resolution –Russian and Baltic business practices, environment and culture –Weekly video conferences with the UK headquarters

Regional Manager Training Program Orientation period in the UK by HQ –Objectives: Internalizing corporate culture, procedures and policies Improving leadership and communication skills Building positive organizational atmosphere

Facility Manager and Assistant Facility Manager Training Program Orientation objectives: –Internalizing corporate culture, procedures and policies –Franchisee relations –Quality control management

Continuous training of Regional, Facility and Assistant Facility managers Training in cooperation with the HR department and consultants –Coaching of facility management by regional management –Staff meetings –Computer based training –Technological advancement –Leadership skills

Partnership training with universities –BBA –MBA Company policy is to encourage personal development –study leaves –study-work schedules –financial support Career Development

Internships Objective: –To create a recruitment pool for future employees Provided for students Better opportunity to enter the company as an Assistant Facility Manager Methods: –On the job learning, mentoring, coaching

Management Trainee Programs Objectives: –develop management abilities and knowledge in practice –partnerships with polytechnics and universities –in-class training –job rotation (facilities, HQ) –monthly meetings with other trainees –case studies

Baltics And Russia Experienced managers trained in Finland start the expansion in Russia and the Baltic region –Russian HR department trained in Finland in the future Similar training programs held in Russia and the Baltic region

Purposes of Appraisals Basis for organizational productivity –Developmental purposes –Administrative purposes Identification of strengths and weaknesses Fair appraisal

Appraisal Methods

Critical Issues Error possibilities 360° and MBO cons Cultural characteristics

Compensation Policies Pay for performance Competitive base salaries Incentives (merits, bonuses, stock options) Indirect compensation Salary ranges for each management level No pay secrecy - open policy

CEO: FIM Country VP: FIM Functional VP: FIM Area Manager: FIM Facility Manager: FIM Ass. F. Manager: FIM Salary Ranges for Managerial Positions

Recommended Compensation Model

Additional benefit packages Domestic employees –Depending on the position –Employee can choose the content –FIM Finnish employees abroad Foreign employees in Finland