BPAMOCO FINLAND Helsinki School of Economics and Business Administration April1999

Mission Statement Provide the best possible service to our customers by: –Building long lasting relationships with franchisees –Developing our staff to achieve our goals –Acknowledging environmental and ethical responsibilities

Goals Build relationships with franchisees Expand to Baltics and Russia Teamwork Development of human capital to meet business objectives

Organizational Chart

Recruitment Needs For First Four Years

Planning Needs Year One Initial planning done in cooperation with the BPAMOCO HRM in US –First issue is to build a strong management team –Build HR strategy guidelines; vision, mission and goals Recruiting –Wide recruiting campaigns, advertisements in major newspapers and TV –Building relationships with universities and other recruiting sources –BPAMOCO HRM people in US to help in the initial recruiting and selection as well as training –Extra personnel hired in beginning to be moved later to the new stations Skills inventory; mapping employee competencies

Planning Needs Years 2-5 Expansion and Recruiting for the new facilities continues Start job analysis Both qualitative and quantitative methods used for forecasting the future needs of personnel Start to build incentive and compensation systems Develop Internal Career development system Common training programs with BPAMOCO US Russia & Baltics –Expansion task force –Continue training in Finland and US –Start international rotation program –Job description to be adapted to local conditions –Emphasis on quality management

US Support Assistance not directed management Advisory role as needed Areas, including IT, Marketing, Customer Service and corporate culture Short term/two years Assistance based on startup and task force requirement

Duties CEO Response to the board/Chicago Overall accountability Performance review of senior executives Implements business plan Responsible for vision and strategy Coordinate with other BPAMOCO units Marketing VP National Marketing Program PR/Sponsorships Coordinate Global Branding Support to Area and Facility Managers High Level Coordination with Franchisees Competitive Analysis HR VP Recruitment Program Coordinate Training Administer Management Training Program Implement Corporate Policies and Values All Compensation Issues Administer Performance Appraisal Finance VP Financial Control and Reporting Budgeting Investment Planning Sup. Serv. VP Legal, Technology, Purchasing and Outsourcing, Audit issues

Job Specifications CEO Finnish Executive Experience in real estate and Franchising Knowledge of Russian and Baltic Markets Practical yet strategic management style Track record in similar large scale operations, including start-up Entrepreneur Marketing VP Business Degree Knowledge of Finnish Markets and International Experience Creating New Brands Good Coordination and Communication Skills Relationship Building Skills Team Player Finnish HR VP Degree in HR Extensive HR Experience in Finnish Market HR Leadership Experience in Service Industry Finnish Established HR Network Within Finland Finance VP Experience Financial Professional and Similar Size/Type of Operations From Chicago or Finnish Experienced in Managing Professionals, Law, IT and Contracting Real Estate Competence Sup. Serv. VP

Expansions to Russia and Baltics Senior Management TASK FORCE Task force objectives: - Marketing Research - Business Planning - Resource Requirements (HR/Fixed assets) - Strategic implementation timeline Those above can be done sequentially or simultaneously

Co-Ordinates HR Functions for Lower Management Does Random Quality Checks on the Sites Co-Ordinates with Other Senior Management Manages Area Budgeting Area Manager

Co-ordinates all Maintenance Functions for the Facility Takes Care of Human Resource Needs of Facility Ensures the BPAMOCO Quality Standards. Reports Directly to the Area Manager Site Budgeting and Local Advertising Facility Manager

Entry Level Management Position Supports the Facility Manager Training Level for Promotion to Facility Manager Facility Maintenance Assistant Facility Manager

Recruitment Sources CEO VP’s AM’s FM’s Head Fairs Intern- Inter- Radio News- EEDC Inter- Hunter Univ.s ship net TV paper nal

How to lower the cost of recruitment Internal recruiting Employee referrals Concentrate all the assignments to one ad agency (the same than in the US) Use bulletin boards of universities Develop internship programs Trade fairs

Russia and Baltics Recruit Assistant Facility Managers who could be rotated in different jobs in Finland Trainees from Russian Universities Use Experience from Poland Operations

Selection Process

Customer oriented Creative Results oriented Team spirited Respect for individuals Readiness for change Internationally oriented SELECTION Criteria: General Competencies

Next few years… –Same selection methods for Assistant Facility Managers, Facility & Area managers –Internal promotion enhanced Expansion to Russia & the Baltics –Internal selection of the best potentials for managerial positions –Same selection process for local hiring Future perspectives

Training process Person Analysis Org. Analysis Person Analysis Org. Analysis Individual Training/ Development Plan Evaluation Revised Plan Training Task Analysis

Training & Development Circle “Kick-off” Orientation 2-3 days General topics: Who, When, What, Where, How “Retreat” Orientation/Devel. 5-7 days Special Topics: Develop team & corporate spirit “Off the job” Case studies, Role Play, Vol. Education “On the job” Job rotation, Staff meeting, CBT, Mentoring/Coach. Every employee, only once Every employee, once a year Every employee, each day Every employee, good performance

The objective Performance Development Improved Performance Improved Performance Basis for salary recommen- dations Basis for salary recommen- dations Identifying Strengths and Weaknesses Identifying Strengths and Weaknesses Opportunity to discuss past performance Opportunity to discuss past performance Identify opportunities and ways to improve performance Identify opportunities and ways to improve performance

Performance Appraisal Methods Essay/ Expectations/ Interview Peer / subordinate Critical incident method MNGMT BY OBJECTIVES CHIEF EXECUTIVE OFFICER FUNCTIONAL MANAGERS AREA MANAGERS FACILITY MANAGERS ASSISTANT FACILITY MANAGERS CHIGAGO HQ All employees will be evaluated semi-annually. Appraisal training for all employees during orientation.

Base Salaries In FIM, $ 1 = FIM 5.5 CEO Vice Presidents Area Managers Facility Managers Assistant Facility Manager Salary Range: (+/- 25%)

Government Regulations Affecting Working Time Eight Hours per Day 37.5 Hours per Week Two First Overtime Hours +50% Following Overtime hours +100% Total Amount of Overtime Hours per year is limited Possibility for Local Agreements

Compensation Constraints CEO VP’s AM’s FM’s AFM’s Base Merit Bonuses Stock Indirect Salary Options Compensation