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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
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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
www.alkhorayef.com
general manager: Kingdom of Saudi arabia/ Partner
Abdallah Bin Abdulrahman Al-Akil
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
| Quarterly Issue by Al khorayef Group4 2014 | 1435
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
| Quarterly Issue by Al khorayef Group6 2014 | 1435
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.
Quarterly Issue by Al khorayef Group | 72014 | 1435
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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
| Quarterly Issue by Al khorayef Group8 2014 | 1435
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.
Quarterly Issue by Al khorayef Group | 92014 | 1435
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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.”
| Quarterly Issue by Al khorayef Group10 2014 | 1435
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
| Quarterly Issue by Al khorayef Group12 2014 | 1435
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
the Middle east and north
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
the Middle east and north
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
the Middle east and north
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
| Quarterly Issue by Al khorayef Group14 2014 | 1435
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
| Quarterly Issue by Al khorayef Group16 2014 | 1435
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
| Quarterly Issue by Al khorayef Group18 2014 | 1435
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.
| Quarterly Issue by Al khorayef Group20 2014 | 1435
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
| Quarterly Issue by Al khorayef Group22 2014 | 1435
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.
| Quarterly Issue by Al khorayef Group24 2014 | 1435
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
| Quarterly Issue by Al khorayef Group26 2014 | 1435
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
| Quarterly Issue by Al khorayef Group28 2014 | 1435
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
| Quarterly Issue by Al khorayef Group30 2014 | 1435
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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08
07
09
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05
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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
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