Proposal

Business Plan: The Value Chain

Alavi, Sohailuddin & Ghazi, Muhammad Shehryar
This document presents recommendations on the institutional structures and business strategies for Fatima Khalid Publications Pvt. Limited, Pakistan

Corporate Consulting Group, Pakistan

B56, Block 5, Gulshan e Iqbal, Karachi 75350 Cell 00 92 (0) 333 2138742 & 00 92 (0) 333 Email: ccgroup.pakistan@gmail.com
January 2013

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Table of Contents I. Corporate Overview a. Introduction b. Proposed Vision and Values c. Proposed Planning Process d. Proposed Key Performance Indicators e. Proposed Theme Logo f. Proposed Corporate Structure The Value Chain Magazine Division a. Strategic Outlook i. Market Competition Analysis ii. Proposition b. Proposed Product Benefits and Features i. Introduction ii. Benefits iii. Features c. Proposed Sales Plan, Strategies and Processes i. Institutional Focus ii. Individual Focus d. Proposed Organization i. Structure ii. Performance areas and indicators e. Indicative Budget Format The Value Chain Training, Institutional Consulting and Business Research Division a. Strategic Outlook b. Emerging opportunities and challenges in Pakistani financial sector c. Gap Analysis d. Proposition Training Services a. Context b. Stakeholders needs and expectations analysis c. Human resource development paradigm d. Proposed policy framework e. Proposed training process f. Proposed organization g. Proposed curriculum framework h. Proposed faculty Institutional Consulting and Research Services a. Proposed consulting services b. Proposed business research services Appendix Exhibit 1 Baseline Survey on Training Impact Analysis Exhibit 2 Indicative Contents for Accredited Training Programs 4 4 5 5 5 6 7 8 9 9 9 11 11 11 12 13 13 13 15 15 15 17 19 19 20 21 22 24 24 24 25 25 28 29 30 32 33 33 33 34 34 39

II.

III.

IV.

V.

VI.

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Corporate Overview

1. Introduction Fatima Khalid Publications is an emerging conglomerate aiming to contribute in the development and growth of pragmatic business information for augmenting professionalism and knowledge for improved business culture in Pakistan in particular. Dr. Zeeshan Khalid, Chief Executive Officer of KG Traders is the sponsor of the conglomerate. Dr. Khalid has successfully mobilized a team of seasoned business-persons and banking professionals to manage the conglomerate. The conglomerate is a for-profit company with clear commitment to advance professionalism and knowledge foundation in business and banking sectors. It is helping businesses and banks in unleashing their opportunities and tackling challenges that are likely to deteriorate the potentials through supplementing reliable and valid information and augmenting professionalism at all levels. Vision of the conglomerate reflects its commitment. It says, To continually Empower Perspectives for Better Decisions. The vision will be lived-by three distinct yet complementary initiatives, namely; The Value-Chain Magazine, Value-Chain Corporate Research and Training Services, and Value-Chain Advocacy and Publications. Fatima Khalid Publications Pvt. Limited Vision Empowering Perspectives for better business decision making!

The Value Chain Magazine

Value Chain Training, Institutional Consulting and Research Services Sales and Public Relations

Value Chain Advocacy & Publications

Finance, Administration and Logistics The three distinct initiatives will operate under the umbrella of Fatima Khalid Publications Pvt. Limited being the parent entity. Fatima Khalid Publications Pvt. Limited will be responsible for instilling strategic directions, providing resources and monitoring accomplishments in each initiative. Nevertheless, each initiative will be independently empowered to manage its operations in a suitable manner marching towards its goals set by the parent organization. Sales and Public Relations, Finance, Administration and Logistics services shall be available on shared basis, and work under direct control of the parent organization. This arrangement will help maintain cost of doing business within competitive limits though economies of scale.

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2. Proposed Vision and Values Our Vision: Empowering perspectives for better business decisions We shall live by our vision through continually: Investing in action research and disseminating information; and, Developing knowledge-base for home grown strategies and solutions for the existing and emerging business opportunities and challenges, respectively. Our Values: Always reaching out to increasing standards of professional integrity; ethics; and social norms Always striving to attain excellence in our products and processes Always adhering to the best professional practices and standards Always ensuring maximum value for our customers in particular and all stakeholders in general Always conducting in a responsible and productive manner Always be an exemplary Corporate Citizen

3. Proposed Corporate Planning Process Corporate plans would ideally be decided on three-year horizon. These plans would cover the followings: Types of initiatives (Strategic Business Units) to be maintained Market focus and penetration: overall and on individual unit basis Profit targets: overall and on individual unit basis A planning committee comprising of CEO as the committee chairperson, Chief Operating Officers of each unit, Director marketing and Director Finance will be formed. The committee shall be responsible for planning, implementation monitoring and performance evaluation. Preliminary deliberations on the corporate plan shall begin amongst the members in the back drop of market feasibility and the last plan at least three months prior to the date of plan initiation. Subsequent to general consensus and approval of the corporate plan in the committee, the Finance Team shall prepare budgets which would later be considered and approved by the committee. Committee members shall regularly meet on quarterly basis for implementation monitoring and performance evaluation of the plans. 4. Proposed Key Performance Indicators Key Performance Indicators provide specific and measurable measure of performance. Separate Key Performance Indicators are being developed for each unit: Unit Value Chain Magazine Key Performance Indicators - Circulation / subscription - Readership
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Value Chain Research and Training Services

Value Chain Advocacy and Publications

- Revenue : Cost ratio - Number of training courses delivered - Average number of participants per training course - Aggregate training feedback - Revenue : Cost ratio - Number of policy issues advocated - Number of publications - General response of businesses and banks - Revenue : Cost ratio

5. Proposed Theme Logo Organizations vision or theme makes each organization different and focused. It is this vision that provides reasoning and direction to individuals within the organization to align their actions towards the organizational goals. Secondly, undoubtedly theme matters more than the product itself in customers buying decisions. Therefore it is imperative to develop and disseminate clearly organizations vision or theme in the market, for it helps build differentiation; grab customers attention and develop customer loyalty. Logo (insignia) is a powerful and effective way to communicate the vision or theme of organizations, for it eliminates usual language barriers and becomes a universal mode of communication. For example, PSO logo has Sun and a Crescent which communicates its 24/7 availability. Conventionally banks logos used to have a Lion to depict security. Citi Bank use Umbrella as its logo to assure that the bank provides umbrella when it rains a typical metaphor generally referred to for the financiers. Likewise, the FedEx logo has a built in arrow that portrays speed and accuracy in logistics. Fatima Khalid Publications Pvt. Limited needs to be distinguished from many similar businesses in terms of its commitment on one hand and it needs a rational basis to connect different strategic business units operating within. Nothing can be more cementing then a theme logo. The proposed logo follows the vision or theme of the company. The lines rising to 90o represent re-alignment of perspective up-north i.e. needed for empowerment. Secondly, as the lines move towards up-north they also become thicker, which illustrates that the perspective is getting stronger and reliable. Finally, Fatima Khalid Publications Pvt. Limited products and services are customized resources for empowering minds.

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Resource for Empowering Minds

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6. Proposed Corporate Structure

Board of Directors

Group Chief Officer Planning Committee

Chief Operating Officer, VC Magazine

Chief Operating Officer, VC Research, Training and Consulting

Chief Operating Officer, VC Advocacy and Publications

Director Marketing and Sales

Director Finance, and Administration

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The Value Chain Magazine Division

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Strategic Outlook

a. Market Trends Analysis Conventionally magazines have operated as inserts to national newspapers in Pakistan. Different reasons such as reading habits of consumers have restricted growth of publishing houses. However with the recent boom in creative fields such as economic globalization, technology, fashion, music and movies have resulted in magazines gaining popularity. An analysis of the top 10 magazines in Pakistan terms of circulation and readership, lifestyle magazines have the highest share. Their target market is generally upper middle class and upper class segments. They offer content along the lines of celebrity interviews, party coverage and reviews. They provide their readers insider access to elite circles which otherwise cannot be penetrated. Another important aspect is digital integration. The modern reader wants to experience content in real life, not just on paper. Most magazines have identified this trend and have dedicated digital platform which not only complement their print versions but enhance the content. For instance, a huge amount of audio video content which accompanies events such as talk shows, fashion shows, concerts and parties is available through the magazines online platforms. In the context of Pakistani magazines focusing on business professionals generally have very low circulation and consequently low readership. Business professionals rely on other mediums of information such as television shows, their respective organizations and colleagues. Unlike lifestyle magazines, business magazines are unable to offer a unique proposition to readers which they cannot find elsewhere. The Pakistan & Gulf Economist which is the most successful business magazine in Pakistan in terms of its circulation and outreach, has built both on its history and has incorporated a decent digital component. According to the consumption trends of readers and content analysis a vacuum of advice is clearly visible especially in business and professional magazines. Lifestyle magazines have been able to capitalize on this concept whereby they connect experts to readers. These experts are individuals who readers aspire to be or whos lifestyle are appealing to the readers. Similar niche can be identified in the business sphere. Content needs to be modified and positioned in a way which business professionals find aspiring and relevant. Also, content that is not available through other channels hence giving consumers incentive to invest in subscriptions. Market research focusing on needs of the businessprofessionals in the corporate setting would reveal different themes which can be the key to targeted content generation. b. Proposition: The modern reader demands information and content which is interactive, in real-time and exclusive. More specifically the business professional wants information and content which will help him/her make better decisions for their own selves and their organizations.
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The Value Chain magazine will offer the value-added proposition. It will offer content which explicitly adds value to different aspect of the readers life. A student of the business discipline will gain insights into the corporate world and career advice. A new recruit will find interviews of executives that share their experience in climbing the corporate ladder. Management will be able to relate to other businesses through case studies covering experiences, initiatives and dilemmas various organizations face. Executive personnel will have a medium to showcase their achievements and learnings in the form of interviews and opinions. The Value chain magazine will challenge the status quo of business magazines and offer an interactive platform through its digital component. A full functional website will be there for users to visit and experience materials such as audio video which a print publication cannot. Some articles would be free, while others would be given access to through online subscriptions. Rather than working as a one-way communication mechanism, the Value Chain Magazine will encourage consumers to interact and create content themselves in the form of blogs. Hence allowing the readers to be part of the conversation and not be merely readers. Overall, The Value Chain magazine will be placed as a state-of-art platform in the business sphere providing its consumers with content which enriches them to make better informed decisions, and allowing its consumers to share their experience and spark an ongoing conversation which acts as a hub for knowledge transfer, ideas exchange and intellectual growth.

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Value Chain Magazine The Product

1. Overview The Value Chain magazine is aiming to build its brand as An innovative solution driven business bulletin, which offers reliable and valid analyses and articulate solutions for the contemporary businesses and financial institutions besides building effective communication bridge between the businesses on one side and the financial services institutions on the other Thus it shall maintain focus on business managers and financial service professionals as its core customers. Nevertheless it shall also cater to the learning needs of the students of business and finance

2. Benefits Inspiration from accomplished professionals from within Reliable and factual knowledge for informed decision making Leads on emerging opportunities and challenges EUREKA effect in solving business dilemmas!

3. Features a. Profiles This section tentatively should aim at identifying, acknowledging and taking stock of the achievements and contributions of the select business and financial leaders, particularly in Pakistani context. The objective is to pay tribute to them and to present them as role models for youth. The personality analysis should focus on real time achievements, attitude towards life and work, moral values, and quality of life. The profiles must culminate into a moral for others to follow. b. Industry Analysis This section tentatively should aim at describing in a candid and verbatim fashion the SWOT and the Competition dynamics in particular of an industry or sector from the stand point of investors and financiers. The objective is to provide reliable and valid basic information on varied enterprises to directly aid the investors and financiers make informed decisions and also to provide food for the policy process. The analysis must culminate into specific recommendations vis--vis opportunities and how to approach them.

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c. Financial Services Banks are now correctly taken as next-of-kin for any business enterprise. However, much of the potential advantages of banking services in leveraging business and lives remain untapped or could not be accessed for lack of policy and process understanding by a vast majority of businesses and individuals. This section should tentatively unravel the hidden advantages and provide structured guidance on availing the bank services in a befitting manner. In addition, play a proactive role in policy advocacy. d. Management: Translating concepts into practice The practice of management is surrounded by misnomers, thumb-rules, out of context theories and most important of all self-proclaimed practices all leading to deterioration in the effectiveness of management process. This section should tentatively aim at developing more pragmatic and innovative perspective, necessary for casting management solutions that fit within the contextual framework of the contemporary businesses and their real life challenges. e. Collage This section would contain a host of articles in the following areas, namely; Emerging issues, Fiscal and monetary policy and regulations, Innovative technology, Social and moral issues, Healthy living, Sports, Light entertainment, etc. The very purpose of this section is to provide a break from serious mind-boggling literature besides creating awareness in diverse directions in subtle way. This would help develop holistic perspectives and cognizance of emerging trends and their likely impact on business and banking.

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Sales Plan, Strategies and Processes II. Institutional Focus

i. Pitching: The pitch needs to be brief and aim towards highlighting benefits to organization and its employees. For instance, while pitching to a FMCG company focus should be on content which provides insights into consumers buying habits, analysis of marketing campaigns in Pakistan and global examples. Line Managers: Considerable tailoring needs to start at this stage. It is essential to identify what function the manager belongs to, and be sent relevant content. For instance, when following up with a supply chain manager content which revolves around development of new distribution channels should be shared. ii. Timely deliveries It is extremely essential that magazines are delivered on time. Apart from delivering the magazine on the correct date, it is imperative that content is also timely and relevant. For instance, a new product launch should be covered in the same months issues it was launched. iii. Communication Corporate professionals often hold communication a very high priority. Hence, it is extremely important to have clear lines of communication between readers and the magazine. Readers should be allowed to comment and share the content. This can be done through digital as well as on paper where readers and e-mail their queries etc. iv. Customer Relationship Building and maintaining a customer relationship database is also very beneficial. This will allow creating a community and platform where opinion and ideas could be exchanged. Monitoring this database will ensure Value Chain magazine knows its customers and provides them with content based on their preferences. Digital integration is necessary for this to work. An online forum where readers can discuss articles and get enhanced content through multimedia will not only increase recall for the magazine but also strengthen the brand community. III. i. Individual Focus

1. Pitch the CEOs

5. Build Personalized Customer Relations

Business Develo0pment Cycle

2. Follow up with line managers to solicit subscriptions

4. Communicate with Employees on 360o basis

3. Ensuring timely delivery of magazines, all the times

The Prospective Readers

Universities and colleges that offer business programs are ideal avenues which should be pursued. The idea is to position Value Chain magazine as a supplement to the students course material which would
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help in their professional development. Content revolving around career counseling and guidance would serve the purpose. ii. Incentivizing Student packages need to be tailored. Online subscriptions may sound more appealing to some students. Similarly offering discount pricing or offering workshops on campus relevant to their field of studies will spark conversation. Besides, offering competitive commissions to retail outlets will encourage them to sell the magazine more aggressively iii. Timely Deliveries The volumes shall be delivered always on schedule. This will allow readers certainty of getting the magazine on time which will in turn help them plan their activities more precisely. iv. Point of Contact Identifying where readers purchase books and magazines would be necessary for this strategy. For instance, bookstores in upcoming malls have a fairly wide reach in the upper and middle classes. Setting up an interactive kiosk which would inform the customers regarding offerings of Value Chain magazine would serve as a brand communication vehicle. Sales representatives must be presentable and well versed in the content that Value Chain magazine carries.
1. Reach out the Prospective Readers

4. Meet the customers at the outlets and encourage subscription

Business Develo0pmen t Cycle

2. Forge incentive based relationships with outlets

3. Ensure timely deliveries of magazines, all the times

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Organization

1. Proposed Structure Magazine organization structure comprises of three teams , namely; Business policy and strategy, Product development and Product sales.

The units business performance targets will planned and business performance will be measured on the following criteria: Circulation / subscription Readership Revenue to Cost Ratio 2. Proposed Performance Areas and Indicators a. Business Policy and Strategy Team It will be responsible for developing operational plans and strategies based on the corporate plan, capture tabulate and analyze performance data and prepare recommendations for the Corporate

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Committee. The Business policy and strategy team will comprise of Chief Operating Officer / Editor in Chief, Sales Manager and the Adviser. See diagram below b. Product Development Team The Chief Operating Officer / editor in Chief will lead the Product Development Team. The team will be responsible for the development and production of the magazine. This includes following tasks: Contents planning deciding the topics for the issue Identifying and contracting with individuals for writing articles Review and editing of the articles/profiles Text and page formatting of the magazine Cover page design Coordinating production of the magazine

The COO / Editor in Chief will have on board with him an assistant editor, CAD specialist and a logistics coordinator. The Teams performance will be measured on the following criteria: Contents consistency, reliability and validity Access to qualified contributors Professional design Cost effectiveness and timely printing

c. Product Sales Team Sales or Business development team will work under the direct supervision Head of Sales and Marketing as a shared resource. Main responsibilities of the Product Sales Team are as follows: Institutional relationship development and management Retail dealers relationship development and management Managing subscriptions Solicitation of advertisements for printing on regular basis Promoting and monitoring sales

The Head of Marketing will have on board a dedicated Sales-Coordinator for the magazine, Field Sales Officers, Tele marketing and Sales MIS Officer. The Teams performance will be measured on the following criteria: Increased awareness of the magazine Increased circulation Selling at competitive price Establish brand image

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Indicative Budget Format Projected Sales / Circulation i. ii. Indicative Price Estimates Subscription (Indicate number of copies) a. Institutions b. Individuals Over the Counter (Indicate number of copies) a. Book Shops b. Fairs and Exhibitions

iii.

Projected Sources of Revenue iv. Subscription Revenue a. Institutions b. Individuals Over the Counter Revenue a. Book Shops b. Fairs and Exhibitions Revenue from Corporate Advertisements a. Private Sector b. Public Sector Gross Revenue a. Subscription b. Counter Sales c. Corporate Advertisements

v.

vi.

vii.

Projected Cost Drivers viii. Product Cost a. Paper and Printing Cost b. Honorarium to Contributors Marketing and Sales Cost a. Business development expenses b. Publicity and advertisement expenses c. Commission expenses

ix.

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d. Cost of complimentary copies x. Overhead Expenses a. Salaries b. Utility charges c. Rent of the premises d. Office supplies including computer suppliers e. Depreciation on office equipment

Projected Targets xi. Gross Revenue - Sales - Corporate Advertisements Cost of product - Variable - Fixed Net Profit before Income Tax

xii.

xiii.

Note: The above budget projections shall be developed on quarterly basis, along the product-life-cycle.

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The Value Chain Training, Institutional Consulting and Research Division

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Strategic Outlook

1. Emerging Opportunities and Challenges in Pakistans Financial Services Sector

External Analysis Opportunities: Financial services sector in Pakistan particularly and in the neighboring countries will continue to grow in terms of its products, customer outreach, market size, etc. Strategic Goals Threats: Continuing growth in the sector is likely to increase cost of attracting and retaining customers; bring down the average rates of financial services and increase effective cost of doing business; increase capital adequacy requirements; last but not the least, customers are likely to become more demanding and price conscious. Reregulations require adequate risk coverage. To capture, tabulate and analyze data and for informed decision making To partner with the institutions in upgrading functional, managerial and leadership capabilities of all employees without bias and discrimination what so ever. To help institutions augment their systems and processes

Strategic Implications Growth potentials in the financial sector are likely to attract new entrants; increase competition; entail higher efficacies; and, last but not the least, increase institutional exposures and the risks potentials thereof. Institutions competitive advantage would largely depend upon their speed of learning; innovation and change; access to technology; and, ability to attract, develop, engage and retain high caliber, morally responsible professionals.

Institutional Analysis Strengths: Financial institutions, in particular five major local banks are well sunk in the markets; have fairly good experience and knowledge of various segments of the customers; matured processes and products; etc. Re-regulations followed by Internet and telecom banking has opened up innovative and efficient ways of reaching out to customers. Weaknesses: Experienced but inadequately trained human resources to cope up with the modern day challenges; Institutional incapacity to sustain profitable opportunities; last but not the least, intuitive decision making are a few major gaps in the sector. Financial Analysis Potentially lowering margins and relatively higher fixed cost structures are likely to shrink profitability hence competitiveness, unless institutions increase their business volumes, reduce cost of doing business; and, improve employee productivity at group and individual levels

Business Strategy To develop state-of-the-art institution for research, training and consulting to cater to the emerging development needs of Pakistan financial sector in particular, and of the neighboring countries.

Action Plan Develop trainings and certifications in broad specializations in banking and finance Develop portfolio of customized institutional, business and marketing research and consulting services Build alliances with national and international accredited training and certification, research, and consulting agencies Develop relations with national and regional financial institutions

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Strategic Outlook 2. Gaps Analysis Capacity building has been an important goal for the Govt. sector organizations and financial institutions in particular. Traditionally focus of these institutions has been on developing operational and administrative competencies amongst newly recruited incumbents and in service professionals, respectively. Service, FMCG and pharmaceutical sectors have also been active in developing their professionals. However, their focus is more on sales and marketing. Recently, there has been up surging of personality development trainings, normally referred to as soft-skills, across the sectors. In certain situations sales and soft-skills trainings have dominated the operational and management trainings. Ironically, however, recent tides of quicker job switching have constrained the organizations from investing in their employees development. Yet, for the sake of window dressing and image saving organizations are taking interest in some the lighter trainings with much little professional substance. We may conclude that the concept of human resources development is well established since long. However, a holistic and systematic approach is needed to bring about real training impact in terms of sustained professional incubation and empowerment, and organizational development. At present, many of the financial institutions have the requisite infrastructure available for the training. Five national flag career management training centres are operating in the country namely, the National Institute of Management, Karachi, the Administrative Staff College, Lahore, National Institute of Banking and Finance, Islamabad, Pakistan Institute of Management, Karachi and the Institute of Bankers Pakistan. The National Institute of Management, formerly NIPA, specializes in in-service training of government administrators; the Administrative Staff College is the apex institute for the training of freshly recruited incumbents in Pakistan Civil Services with advanced courses for in-service civil servants; the Institute of Banking and Finance operates under the auspices of State Bank of Pakistan primarily catering to the in-house capacity building of State Bank of Pakistan. In addition to this role, NIBAF also provides training to the staff members of other Central Banks in the region and organize specialized seminars and certificate programs in banking and finance; the Institute of Bankers Pakistan is the examining body for the professional qualification in Banking and Finance in Pakistan. Besides, the institute also conducts short training courses in banking and finance for the in-service professionals working in the financial institutions. Many organizations, particularly banks and financial institutions have their in-house training facilities. Furthermore, alongside these public sector institutes and in-house training facilities there has been a mushroom growth of private training institutes offering short training courses in diverse areas but primarily on soft-skills. Nevertheless, many of these institutions lack capacity to deliver what is needed. Recently a survey was conducted in a local bank1 to assess the efficacy of elaborate training function within. The survey focused on a number of dimensions the most important of all was whether training was effecting change in behaviors? The respondents were HR line managers. While the bank has been committedly investing in the training of their personnel, the overall response of 99% respondents was in negative. Two basic problems were identified. Firstly, it was observed that the faculty in particular was unaware of the impact of training that was needed. Consequently, end-of-training evaluations were done at the
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affective level to demonstrate that training is being done rightly. Secondly, training curriculum was generally divorced from the real world of work. On one hand theoretical contents were demonstrated without adjusting to the prevailing work context and on the other stereo-type curriculum was dominant. In short, much focus is on transferring the raw information rather than empowering the participants to be able to analyze real life situations and dilemmas and learn to improve on a continuous basis. Sadly but factually trainers operate more from administrative orientation than as a process specialist. Moreover, the trainers lack first hand and current understanding of the real life work situation either because of being in the training function for long their understanding of the current work environment became obsolete or they never were practicing managers. The cited survey clearly demonstrates urgent need for up-grading the institutional capacity and curriculum, and integration of training within the overall human resource management process to secure the target training impact. We have basis to believe that similar problems are faced by most of the financial institutions in managing their in-house training facilities. The evidence is that to overcome lack of institutional capacity many financial institutions are resorting on training consultants. Subsequently, there has been unprecedented emergence of freelance trainers and training firms. On one hand this has provided to the financial institutions greater flexibility and choice but on the other hand some new challenges have come up reducing the efficacy of training investments. The outside trainers lack understanding of the work culture and context of the organization. Sometimes they even lack subject knowledge or at least the application of it in the work situation. As a compromise, both the financial institutions and trainers have resorted to focus on rather mundane training areas while ignoring substantial contents the so called motivational trainings and trainers. Last but not the least challenge facing the financial institutions in developing their human resources is cost benefit of investing in them. Absence of long term commitment and loyalty of the employees and hiring on contractual basis by the organizations have effectively reduced the average term of employment relationships. In the given scenario investing in the development of human resources is a difficult decision for the institutions. 3. Proposition The Value Chain Training, Institutional Consulting and Research Division will carve its niche in the corporate world of work by focusing on integrated services i.e. Training, Institutional Consulting and Research. It will accordingly build its capacity commensurate with its defined role to offer stat-of-the-art services in business training, consulting and research to gain competitive advantage in the market. I. Training shall be the core activity of the Division. Focus on high-end programs; and, back-end training processes will be the value chain strategy. The high-end programs would include corporate conferences, professional forums and policy roundtables. Back-end consultancy would encompass competency profiling, curriculum development, modules development, training process engineering, and train-the-trainers programs. It is hoped that this strategy would provide sustainable competitive advantage and would allow premium pricing of the services. It will develop accredited trainings and certifications in diverse disciplines such as banking, Islamic finance, micro-finance, enterprise management, supply chain management, and
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information technology with special emphasis on ERP solutions. All trainings and certifications will essentially focus on immediate advantages to the participants and their organizations. The Division shall build relations with Universities, Financial Institutions, Industry and Trade Associations for technical collaboration and accreditation. II. Institutional consulting services is the second leg to compliment human resource capacity building initiatives of partner institutions. The consulting services will be offered in Business planning and feasibility development, Human Resources including head-hunting and third party employment, Institutional development, Business Process Improvement and ERP solutions, Marketing and Supply chain management. Business research is the third leg aiming to solicit outsourced research projects from partner institutions. The research services provide support in the areas of business research, in-company diagnostic surveys, business planning and feasibilities, marketing focus groups, etc.

III.

A coordination council consisting of accomplished and practicing human resources and training professionals shall be commissioned to build effective linkage with the constituents and access communication channel to assess market needs and expectations. The council membership shall be by nomination and voluntary for a term of two years. The council members shall appoint the chairman amongst themselves for a term of two years. The Chief Executive Officer of Fatima Khalid (Publications) Pvt. Limited and the Chief Operating Officer of the Division shall be the permanent members of the council. While the Director Marketing and Administration shall participate in the council as nonmembers. The council shall convene on quarterly basis to review the activities of the preceding quarter in retrospect and to make recommendations for the next quarter activities.

1.

Please refer to Exhibit 1 for detailed survey findings

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Training Services

1. Context Upon auditing the contemporary scenario, we have basis to say that following practices are much prevalent. These trends have impacted upon the human resources development goals and orientation. Thus it is imperative to take into account these practices while articulating new training strategy: Organizations are becoming lean, which is inducing multi-tasking at individuals level, which in turn means complex jobs and fewer head count for higher competitiveness Technology has enabled transformation of operational tasks into much simpler at the front end. Hence IT and Customer Management competence dominates over procedural skills The new entrants have focused preparation in professional education such as accounting, economics, finance and banking but alongside they seem in a rush to climb up the hierarchy and are reluctant to work at the front end. Similarly, officers with ten years or more experience are now becoming plateaued although they are the ones who have much understanding of the work environment and can contribute at much higher level. Training curriculum needs to address these and similar challenges. Organization structures are being transformed into teams raising the need for improved interpersonal skills, empowerment, coordination, decision making and shifting focus from status to roles across the echelons Increasing competition amongst traditional and non-traditional players warrants competitive mindsets and a sense of urgency for results Last but not the least, re regulations and governance are now much significant in doing the business, which has led to sophistication in the business processes and decision making. In turn all this has entailed specializations in various critical functions such as corporate governance, risk management, compliance, etc.

2. Stakeholders Needs and Expectations Analysis The statement that, Training is the prerogative of the trainer is a myth. It has no meaningful basis. In reality an effective training process is essentially driven by three critical groups, namely; The Trainee, the Trainees work organizations, and the Trainer (Training Organization). This leads to a further

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clarification that Training is not the end in itself. Rather training should essentially cause change-for-better at the Trainees as well Trainees work organizations levels. This is only possible when the Training Organization takes into account the specific needs and expectations of the other two groups in designing, development and delivery of training programs.
Participants
Career Development Opportunities Enhanced capacity to work

NBP Management
Improved on the job performance Readiness to perform in the future

Typically Trainees would expect enhanced work capacity as an immediate return from a training program. In addition to this, the Trainees also look for long term benefits of participating in a training program, such as improved chances of career advancement and mobility. Similarly, Trainees work organizations sponsor implicit as well as explicit cost of training. Hence, the organizations envision positive return on this investment in the form of improved employee productivity and their readiness to perform in the changing environment, which will likely to be different from today. 3. Human Resource Development Paradigm: Human resources development is a complex process compared to training which is rather a simplistic process of instilling task knowledge and skills alone. In other words, a typical human resource development process spans across individuals career and has multiple dimensions to it. At the Value Chain we describe the human resource development paradigm as a three stage process, namely; imparting task related knowledge and skills, inculcating professionalism, and developing leadership. This is accomplished through a multi-directional development strategy whereby the employees are given the task related knowledge and skills, inculcated professionalism and leadership competencies. 4. Proposed Policy Framework At the (Value Chain) we believe HRD initiativ es should essentially lead to higher productivity and career benefits to the organizations and their participants, respectively. Thus we express our policy commitment in terms of the value the training function is responsible to create in response to the envisaged needs and aspirations of the partner financial institutions and participants The HRD Paradigm
Leadership

Professionalism

Knowledgeable and Skillful

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Together with partner organizations aim to unleash the human resource potentials into Smart-Competence, and harness it towards improved business productivity; competitiveness; and, higher career prospects!!!

5. Living the Commitment

Mission We shall continually invest in our institutional capacity and competitiveness; adopt customer focused strategy; guarantee demand driven process based and result oriented curriculum; engage high caliber faculty; provide adult learning environment; and state of the art infrastructure and training facility.

Focus Smart competencies are a set of generalized contours that are likely to enhance employees on the job productivity and future potentials for building and sustaining organizational competitive advantage today and tomorrow. Each competence is elaborated in terms of its specific and measurable characteristics. Together with our constituents, we aim to inculcate following essential SMART competencies:

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i.

Professionalism:

Moral character; social responsibility; self-awareness; independence of thoughts and decisions; commitment; attention to details; harnessed motivation; attitude; assertiveness; ownership; predictable behavior and presentable personality; and, last but not the least discipline per se i.e. living the organizational values and norms ii. Empowerment: Knowledge of the context; sense of right and wrong; sense of direction; ability to make good decisions; know the outcome of ones own decisions and/or action; ability to think in terms of a bigger picture; and last but not the least, clarity of vision iii. Profit focus: Focus on profitability; concern for effectiveness and efficiency; understanding risk and their mitigates; ability to see opportunities and threats; ability to focus on banks interests iv. Customer focus: Value for customers; empathy for their problems; concern for their solutions; and, responsibility towards customers v. Proficiency: Job knowledge and skills; doing right things right; systems thinking; business rationality; regulatory and policy compliance; product and process knowledge and skills; time management; and, team work vi. Development: Continuous learning and improving; expanding horizon; and, readiness to move to higher responsibility level

Strategy Evolve standardized competency based accredited curriculum Ensure demand driven process based and result oriented training contents Make learning convenient, exciting and rewarding experience Identify relevant and skilled resource persons Expand outreach

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6. Proposed Training Process i. The key objectives of the educational or training process is: a. Better performance by the student of his or her job (current or future) b. Improved motivation for the student; c. Additional specific competencies (knowledge and skills) that helps him or her perform the job efficiently and effectively d. That the student should be able to explain the importance of the lessons that he or she has taken/learned; e. Better understanding by the student of the significance of his or her performance/job in the context of overall department and/or organization goals / strategy. f. Better decision-making by the student within his or her job context. ii. Building Blocks of Optimal Learning To make trainings effective it is imperative to understand the building blocks of optimal learning, that is, the variables that affect student learning. The relationship of these variables is rather complex depends considerably on a good understanding of the local conditions, as well as on international best practices. a. Learning is individualized, depending upon the individuals learning needs, motivation and flair. b. In a group, learning will always be along a bell-curve as a smaller percentage of students will demonstrate optimum learning while a larger group will have average learning and a smaller percentage of students will experience a lower level of learning. c. External factors will also affect the learning. Namely; the trainee-organization and the trainingenvironment. Work environment: whether the organization of the employee-bank or MFI (immediate line manager in particular) identifies the right learning needs, facilitates learning objectives, encourages implementation of newly learned knowledge and skills, last but not the least organizational culture. Training environment: The training environment and particularly the trainer(s) competence and personality have a significant impact on learning. For instance, the trainer has to have a good facility in the subject matter, needs to use appropriate learning methodologies and tools, can develop/provide easy to study reading materials, and last but not the least demonstrate an inspirational attitude that encourages learning. The training contents should also have practical relevance and validity and the timings and logistics must be considered. iii. Critical Learning Steps The following points outline probable critical learning steps that being considered to aid optimal learning. However, these steps are meant to be illustrative, and not exhaustive.

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i.

ii. iii.

iv.

v. vi.

vii. viii.

ix.

Focus on Competencies: Key point for success depends on developing new or better capacities in the students. Students should be able to better understand the subject matter and relevance of the topic, the lesson and relevant steps (process). Assessing Understanding: Testing through oral or written examinations, the intellectual knowledge (concepts and vocabulary); Testing through demonstration: Practical knowledge (capability) can be best tested through demonstration what the student can do. For instance, for internal audit the student should be able to go a department and set up an audit plan and implement it. Similarly, if the training is on how to make presentations then a good test would be that the student should give a presentation at a short notice on a topic. Internalization of lessons: Ultimately the success has to do with how well a person has internalized the lessons, has taken them into their own way of thinking and how well they can use this information to develop further answers to problems. (problem solving approach) Repeated implementation: Learning will come through repeated implementation of the information or techniques to really learn a new word one must use it several times. Motivation and inspiration: Motivation cannot be done mechanically: through a rote process of certain steps. It cannot be a simple recipe, but requires passion on the part of the trainers, and real understanding. Local context and language: Motivation is context-driven. Discourse in a foreign contents and language will be less effective and may not work at all. Personal motivation: Motivation is personal. At the end of the day, a personal relation is necessary to develop and encourage motivation. This is a matter of the personality of the teacher and/or trainer. Trainers who cannot motivate, no matter how good the methodology of a course, the learning will be only marginally successful A combination of factors needed for success: One must have a combination of good methodology, developed in the context of the student, and good people for the teaching, who can inspire other people and motivate them.

7. Proposed Organizational Structure

Planning and Coordination

Developing training policy and curriculum, Planning of training programs, Review of training programs, Establishing quality standards and processes

SMART Competency
Functional Trainings Portfolio:
Certificated / accredited trainings in specialized banking skills

Management Trainings Portfolio:

Certificated / accredited trainings in business, leadership and organizational skills

Corporate Seminars Portfolio:

Corporate seminars and policy roundtables

Professionalism Empowerment Profit focus Customer Focus Productivity and Proficiency Development

Marketing Support IT Support Administration and Logistics Support

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The organization structure is envisaged in line with the indicative curriculum framework. Hence, the training process shall have virtual functional hubs, namely; the planning and coordination function, core function (Functional training portfolio, Management training portfolio, and Corporate seminars

portfolio) and critical support functions (Marketing & Business Development, IT and Administration). Each function shall have distinct scope of work described in as explicit manner as possible. The support functions will be common and serve every division within the group. See figure above. 8. Proposed Curriculum Framework Curriculum refers to a standard set of courses or programs leading to a specified qualification. In our context, curriculum would be relatively a broader concept, for in banking we offer streams of courses each leading to a different qualification. For instance, the stream of courses in credits would be rather independent of stream of courses in financial services marketing. Having said this, we need a set of curriculum to offer qualifications in various facets of modern banking. However, we would still need standard stream of courses for each curriculum. See the figure next. We at the Value-Chain envisage offering training programs under the following categories: Accredited Training Programs Business Seminars and Workshops Policy Roundtables and Forums Accredited trainings programs aim to develop specialized professional and managerial competence to prepare the young professionals perform even better on-the-job and also to develop necessary competence along their career paths2. The specializations would cover Credits, International Trade and Finance, Compliance, Internal Controls and Risk Management, Retail banking operations, Corporate banking operations, International banking operations, Islamic banking operations, Effective management and supervision. Business seminars and workshops are designed to cater to the continuing

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professional development needs of the middle managers and heads of the departments in particular. Fast track front line managers and Officer can also benefit from these programs. Main thrust of these programs is on professional refreshers and leadership development. Policy roundtables and forums provide effective platform for senior corporate managers to jointly deliberate and advocate enabling policy environment and promote standard professional practices to gain better business competitiveness and sustainability. Proposed Value Chain Capacity Building Initiatives at a Glance
Accredited Training Programs
Focus Immediate work performance Development along the career path

Business Seminars and Workshops

Continuing professional development

Policy Roundtables and Forums

Deliberation and advocacy on policy environment Promote standard professional practices through forums

Subject matter

Specialized professional and managerial competence building

Professional refreshers and leadership development

Review, brainstorm and advocate enabling policy environment Identify and advocate standard professional practices

Outcome(s)

Improved current job knowledge and skills Increased on-the-job performance

Enhanced professional and managerial capacity to deal with the business emerging challenges

Better understanding of the policy issues and effective advocacy for creating enabling policy environment Help in establishing standard professional practices to gain higher business competitiveness and sustainability

Measurement Criteria

Methodology

Participants performance in post training assessment and training feedback Discourses, class activities, presentations, home assignments, projects First line managers, Officers and functionaries

Participants assessment in group discussions and peer evaluations Case studies, syndicate work, group discussions and presentations

Quality of analyses and recommendations

Paper readings, deliberations and group discussions

Target Audience Duration

Middle Managers, Heads of department

Senior corporate managers

Long term, sandwiched program

One to two full working days

One to half day sessions

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9. Proposed Faculty The Value Chain shall develop a pool of accomplished practicing managers and trainers to deliver its training programs. A team of at least three resource persons shall deliver a training program. However, in exceptional cases depending upon the topics, training program may be delivered by a lone trainer. Below is the indicative list of visiting resource persons who may be recruited into the faculty pool: Banking Skills i. Dr. Asrar H. Siddiqui, Senior Adviser Human Resources, MCB Bank ii. Mr. A. B. Shahid, Senior Consultant iii. Mr. Muhammad Saleem Umar, Director (Executive MBA) Institute of Business Administration, Karachi iv. Ms. Tahira Raza, SEVP/Group Chief, National Bank of Pakistan v. Mr. Shoaib Arif, Chief Operating Officer, ASA Pakistan (Microfinance) Institute vi. Mr. Sumair Siraj, Associate Professor, Sindh Madrasatul Islam Institute of Business Institutional Management Skills i. Abdul Ghafoor, Adviser Karachi Electric Supply Corporation ii. Mr. Ozair A. Hanafi, Senior Consultant iii. Dr. Athar Siddiqui, Associate Professor, Dawood School of Business and Leadership iv. Ms. Azra Maqsood, Executive Director INJAZ Organizational Skills i. Mr. Ozair A. Hanafi, Senior Consultant ii. Mr. Zia-ur-Rahman, Management Consultant

2.

Please refer to Exhibit 2 for indicative training contents on accredited training programs

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Institutional Consulting & Research Services Introduction: Institutional development is a well recognized need to continually enhance organizational productivity, quality and competitiveness in modern times. The Value-Chain consulting services will solicit assignments relating to institutional development, research and other non-core activities. i. Consulting Services will be offered in following areas in particular: Business planning and feasibility development, with special focus on transformation of Microfinance Institutions into fully regulated Banks Human Resources o HR policies and systems o Positions (job) analysis and profiling o Competencies analysis o Employees assessments and training needs analysis o Testing and Recruitment o Head hunting o Third party employment contracting Business Process Improvement and ERP solutions o Business process analysis and improvement o ERP (SAP) project management & implementation o IT process improvement and quality assurance Marketing and Supply chain management Project Management ii. Business Research Services: In house employee surveys and assessments HR surveys on industry practices, compensation, etc. Qualitative market research: focus groups, panel discussions, etc. Quantitative market research: various types of surveys Baseline surveys in multiple areas

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Appendix Exhibit 1 Baseline survey on Training Impact Assessment The objective was to map the perception of representative group from the field on the impact of training on building SMART competencies across the cadres, solicit feedback on probable gaps and recommendations on training curriculum, methodology, immediate training environment and available physical facilities. Initially, General Managers (Human Resources) from 14 regions were given this survey. Considering the consistency of responses we had basis to say that the trends were indicative. However, because of the smaller group size of the respondents, it was inconclusive. Subsequently, the survey was done across the regions. The respondents were the Regional Chiefs and all General Managers working under a Regional Chief. The survey was also conducted internally amongst the training faculty. Findings are reported hereunder. Survey findings are presented below: 1. Impact of Training External Perception (n = 135)

65% (9 out of 14) or more respondents perceive low training impact on developing professionalism, empowerment, customer focus, productivity and development. 50% (7 out of 14) respondents perceive low training impact in fostering profit focus. We have basis to say that on the whole training impact is being perceived as low.
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2. Training Gaps (n = 135)

Major gaps perceived by the respondents are that training contents not properly targetted; trainers capacity needs improvement; same training topics (contents) are continued successively. Other gaps include, lack of continuity of training for individuals, lengthy training materials, less focus on case studies, communication gap, trainers with no banking background, training followup process is missing, insuffecient training duration, training not focused on resolving desk related problems, trainees are not inovled, etc. 3. How to Make Trainings Useful for the Participants (n = 135)

Major areas for improvement include the followings: Training contents should relate with practices, faculty should adopt new techniques, training at door step. Other areas include the followings: continuity of trainings per individual, reduced volume of training materials, pre and post training assessments, trainers from the field/operations are more beneficial, training material should be provided before hand, trainings should be linked with career development, same trainings should be repeated with some intervals.

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4. How to make training useful for the bank (n = 135)

Most important of all the improvements is that training faculty should have working expereince on the topic. Next important areas include ensuring friendlier / adult behavior with the trainees, TNA needs to done participatively and short duration programs are to be offered at the door step. Finally, training need to focus on helping participants find solutions for their desk related problems and training on new policies, procedures and products should essentially be conducted prior to implementation of the same. 5. Recommended Training Areas (n = 135)

More than 75% respondents recommend trainings in IT Skills / CBS, Management and Leadership, Operations and Soft skills. Other important training topics include, compliance and regulations,
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customer care, risk management, loans and credits, internal controls, team building, EDP/SSR 1980, Cashiers training, and culture. 6. Average Training Requirements (n = 135)

Officers / fresh inductees 20 days on average, Managers / AVPs about 15 days on average, VPs and SVPs 10 days on average and senior executives about 5 days on avarege in a calander year. 7. Training Environment (n = 135)

Almost 50% respondents suggested change in the behavior of the trainers and training managers. Other dimensions include fostering supportive environment, better treatement of the trainees and reduced daily training hours. About 50% did not respond to this question.
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8. Physical Facilities (n = 135)

More than 50% of respondents believe there is a need to modernize the training rooms, introduce computer labs, provide access to internet and library should have current materials. About 45% did not respond to this question.

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Exhibit 2 Indicative Contents for Accredited Training Programs

i.

Certified Branch Managers Program a. Curriculum Focus: - Business Planning and Strategy - Bank Marketing, Consumer Behavior and Selling - Leadership Development - People Management - Business Communication - Decision Making and Problem Solving - Business Development and Networking - Financial Planning and Budgeting Branch Managers.

b. Target Group:

ii. Certified Operations Managers Program a. Curriculum Focus: - Banking Regulations, Policies and Practices - Banking Products and Processes - Operations Planning and Monitoring - Risk Management and Fraud Prevention - AML/CFT Compliance - Decision Making and Problem Solving - Employee Supervision Operations Managers

b. Target Group: iii. Certified Credit Managers Program a. Curriculum Focus:

- Credit Regulations, Policies and Practices - Credit Products and Processes - Tools for Credit Analysis - Credit Risk Management and Fraud Prevention - Writing Credit Proposals - Decision Making and Problem Solving - Credit Monitoring, End use evaluation and Recovery - Credit Delinquency Management Credit Managers / Analysts.
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iv. Certified AML Practitioners Program a. Curriculum Focus: - Anti Money Laundering and Proceeds of Crime Law; - Law on combating the financing of terrorism; - AML Regulation: Financial Institutions responsibility; - Money Laundering: Effects on Economic Development and International Standards: - International Conventions, Resolutions, International Standards for legal measures FATF recommendation numbers 1-4, 20, 23, 24, 31, 33, 34 - Institutional and Follow-up measures for combating Money Laundering and Financing of Terrorism and Reporting Suspicious transactions - Measures to be taken by Financial Institutions and NonFinancial Businesses and Professions: Compliance Managers / Officers.

b. Target Group:

v. Certified Bank Marketing Practitioners Program a. Curriculum Focus: - Marketing Basics - Consumer Behavior - Bank Marketing Management - Financial Product Innovation and Development - Service Quality Management - Methods in Market Research and Report Writing - Customer Relationship/Profitability Analysis - Product / Portfolio Profitability Analysis - Selling and Customer Service - Public Relations and Networking Marketing Managers / Officers.

b. Target Group:

vi. Certified Bank Risk Practitioners Program a. Curriculum Focus: - Overview of Risk Management Framework - Operational Risk Management - Credit Risk Management - FEX Risk Management - Liquidity Risk Management - Interest Rate Risk Management - Internal Capital Adequacy Assessment Process Risk Managers / Officers.
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vii. Certified Human Resource Practitioners Program a. Curriculum Focus: - Human Resource Management Basics - Organization Behavior - Labor Laws in Afghanistan - Selection and Recruitment - Induction and Placement - Employee Compensation - Employee Training and Development - Employee Career Planning - Handling Problem Employees - Disciplinary Actions - Employee Performance Appraisal HR / Training Managers / Officers.

b. Target Group:

viii. Certified Islamic Banking and Finance Practitioners Program a. Curriculum Focus: - Introduction to Islamic Sharia with reference to Economics and Banking - International Regulations in Islamic Finance and Banking - Islamic Banking Laws and Practices in Afghanistan - Analysis of conventional vs. Islamic banking products - Current trends in Islamic banking and finance - Accounting Standards for Islamic Finance and Banking Islamic Banking Manager / Officers. Certified Internal and IT Audit Practitioners Program - Overview of the Auditing Function; - Internal Controls and Risk Assessment; - Techniques and Procedures of Audit - Managing the Auditing Function - Auditing Foreign Exchange Transactions - Asset Liability Management - Fraud Detection and Prevention - IT System based Audit of Banking Operations - IT System based Controls

b. Target Group: ix.

a. Curriculum Focus:

Target Group:

Internal Auditors
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