RIYADH, 23 April 2007 — Al Safi Danone, which landed the Best Dairy Company Award for two consecutive years, has shown that Saudis can be productive if handled on the basis of sound management practices along with a creative element.
“In 2003, Saudis comprised 10 percent of our work force. This year it is 24 percent,” Karim Manssour-Dahbi, general manager of the company, told Arab News. He said that despite the growing pace of Saudization, Al Safi-Danone (ASD) had posted double-digit growth rate of 12 percent as against seven percent for the market as a whole.
Al Safi owns the largest integrated dairy farm in the world, with more than 3,500 hectares and 35,000 cows. These figures gave it the first slot in the Guinness Book of World Records in 1998. Part of the Alfaisaliah Group and a joint venture partner of the French dairy giant Danone Group since January 2001, ASD owns and operates 25 distribution branches in the Kingdom serviced by more than 500 refrigerated and climate-controlled trucks in addition to 5 branches in the GCC.
Referring to their double-digit growth rate, Manssour-Dahbi said they managed to buck the trend through a comprehensive strategy of sustaining its progress through human resources development, innovative products and marketing techniques. Quality control is the watchword at every stage.
He said that as a result of its corporate philosophy, Al-Safi-Danone had received a certificate of appreciation from the AIB International (American Institute of Bakery— a specialized Audit service Institute for Food Industry in North America) as it had successfully fulfilled the requirements of the AIB Consolidated Standard for Food Safety.
On the subject of Saudization at ASD, Manssour-Dahbi said a major factor for its success was the fact that they attach a lot of importance to recruitment and training as well as motivating the employees through a scheme of bonuses and promotions for the top performers. Salary increases are not automatic but linked to productivity. Those falling behind the target are waved the red flag.
Manssour-Dahbi said Al Safi-Danone ensures at the time of recruitment that the right man is at the right place. “He will be motivated in his job only if he is interested in what he’s doing. Also, we make the working environment pleasant by keeping good relationships between management and employees through “Be Closer” program that includes strong internal communication, celebrations of employees’ events, and regular social gatherings, like taking our employees on monthly basis out on picnics at Istrahas (recreation centers on the outskirts of cities). However, if we discover that he will be more suitable elsewhere in Al Safi-Danone, we’ll find a slot for him there.”
To help recruit the best Saudi graduates, Manssour-Dahbi said ASD has benefited from its synergy through Danone. ASD participated for the first time in the International Trust Game competition organized by Danone Group in which five students from King Fahd University of Petroleum and Minerals (KFUPM) competed with their counterparts from 15 other countries last month. Under this program, the participants were required to act as though they were members of the board of directors of an imaginary company. The mandate for the participants, divided into groups of five students each, was to put together a three-year business plan for the company.
“The five best teams presented their plans to the Executive Committee of Al-Safi Danone, and after a day of detailed examination, one team was chosen to represent Saudi Arabia in the finals of the competition in Paris,” he added.
Mentoring is another innovative management practice that many Saudi companies do not follow. Basically, it involves an orientation program that the seniors conduct for the new recruits. The juniors refer to their mentors as consultant for any professional matters like career path orientation, business or even personal issues.
“Our employees become productive after they go through training program (We call it ASD University) adapted to their specific needs. We have conducted last year more than 10,000 hours of high quality trainings.”
However, the rate of Saudization differs from region to region. While it is 60 percent at the head office, it is much less at some ASD branches, especially in the distribution chain, he added.