A presentation that was given in the Kingdom Human Resources Summit that was conducted in Riyadh on February 05th - 06th 2013.

1. h"p://sa.linkedin.com/pub/nawaf-­‐dhubaib-­‐mhrmgt/6/531/b84/
1

2. Hypothesis:
Succession
planning
will
not
be
successful
without
addressing
the
cultural
change
needed
to
be
associated.
2

3. Choice
for
HR
professionals:
• Where
to
work
in.
(show
of
hand
of
how
many
was
approached
by
head-­‐hunters
last
month?).
What’s
HR
role
in
the
organizaMon?
Business
leaders’
execuMoner
or
consultant?
Make
sure
your
business
leaders
has
longer
term
vision
than
yours.
HR
cycles
are
at
least
one
year
long.
• What
organizaMon
dynamics
we
stride
towards?
StaMc
or
dynamic?
ASer
we
answer
that,
we
look
at
FOB’s:
On
the
risk
of
falling
for:
“If
you
have
a
hammer,
everything
you
see
becomes
a
nail!”,
FOB’s
problems
can
be
fixed
instrumentally
by
HR
leadership
with
a
major
change
management
program.
Historical
reference:
“Japan
reopening
for
business
due
to
lessons
learned
from
Opium
wars.”
=
“OrganizaMons
can’t
afford
having
closed
staMc
cultures”
3

4. FOB
makes
big
percentage
of
GDP
PotenMal
is
high
to
be
able
to
share
the
burden
of
naMonal
unemployment
PotenMal
to
increase
GDP
diversity.
We
will
discuss
further
what
possible
reasons
for
the
low
rate
of
transiMon.
Source:
“Family
businesses
in
Saudi
Arabia
make
up
25%
to
GDP”
The
Economic
Times,
Interna'onal
Edi'on
h"p://arMcles.economicMmes.indiaMmes.com/2012-­‐07-­‐26/news/
32869781_1_businesses-­‐saudi-­‐arabia-­‐investment-­‐strategy
4

5. The
challenge
for
FOB
is
the
level
of
complexity
management
capabiliMes.
External
Complexity
(globalizaMon)
and
internal
(survival)
All
business
is
affected
by
globalizaMon:
global
supply
chains
i.e.
more
sensiMve
to
geopoliMcal
volaMlity
Business
conMnuity
complexity
increases
by
the
very
definiMon
of
survival.
If
it
is
compeMMve
then
it
has
a
loop
to
capture
the
needful
tweaks
to
maintain
its
advantages.
Successful
business
tend
to
deal
with
li"le
changes,
thus
resistant
to
change
becomes
part
of
the
culture
(which
has
a
winning
argument
against
change)
i.e.
what
made
you
could
break
you.
Dealing
with
complexity:
Division
of
complexity:
insMtuMonalizing
funcMons
in
organizaMons
(no
more
one-­‐
man-­‐show)
that
deals
with
complexity
from
different
angles.
e.g.
HR,
OperaMons,
finance
etc.
insMtuMonalizing:
funcMons
having
enough
autonomy
to
develop
a
sustainable
business
model.
Outsourcing
complexity:
pushing
non-­‐value-­‐added
acMviMes
to
companies
that
use
economy
of
scale
to
deal
with
it.
e.g.
bakery,
mechanics,
restaurants
etc…
Another
aspects
that
is
‘PercepMons’:
does
it
make
a
difference
to
know
whether
you
are
a
captain
of
a
tugboat
or
Titanic?
Percep&on
is
important
5

6. 6

7. 7

8. 8

9. 9

10. Need
for
change
of
the
Shareholder’s
paradigm:
Maslows
pyramid
of
needs,
self
actualizaMon.
FOB
need
to
adopt
division
of
problems/complexity
and
outsource
unneeded
business.
CorrelaMon
between
business
capability
to
breakdown
problems
and
it
capacity
and
size.
How
does
the
FOB
owner
sees
himself
as
with
regards
to
the
FOB?
Car
mechanic?
Or
passenger?
Is
he/she
under
the
hood?
Or
behind
the
wheel?
We
agree
to
pay
extra
for
extra
features,
such
in
cars
(speed
control).
Autonomy
and
self-­‐sustainable
is
an
organizaMon
feature
that
will
have
an
extra
cost.
Change
of
paradigm
induces
a
change
of
vision
which
enMtles
a
change
of
culture
uMlizing
change
management.
HR
has
an
instrumental
role
in
change
management.
10

11. 11

12. Idiosyncrasy:
Process
(having
a
process
linked
to
obsolete
business
goal)
Tool:
Having
an
obsolete
tool
or
technology
People:
Having
an
outdated
skill
sets
Resistance
to
change:
Cultural
values
are
reinforced
by
Mme
12

13. 13

14. The
magnitude
of
change,
shows
that
many
will
feel
threaten
by
what
change
will
bring.
14

15. Knowledge
power
is
strongly
manifested
in
FOB.
System
runners,
AccounMng
systems
masters
etc…
Problem
with
people
who
wears
the
gate-­‐keeper
hats.
Their
job
is
to
minimize
change,
with
operaMonal
mindset.
Last
HR
manager
or
last
consultant
tried
that
and
it
didn’t
work
before,
why
would
it
work
now?
The
percepMon
of
what
the
change
will
yield
to
No
common
source
of
pain
for
all
organizaMon
members.
EmoMonal
a"achment
to
a
person,
process
or
tool
due
to
emoMonal
investment
in
the
past.
15

16. Transparency
is
a
good
remedy
to
Knowledge
power
by:
• Tool:
IT
• Process:
creaMng
check
and
balance.
• People:
IntroducMon
of
new
members.
Scaffolding
is
creaMng
a
funcMonal
redundancy
in
an
organizaMon
to
minimize
dependency
on:
• Tool:
Paper,
IT
• Process:
create
alternaMve
processes
or
introduce
choices
to
process
users.
• People:
IntroducMon
of
new
skill
sets
by
new
members.
Efficiency
is
not
a
virtue
at
a
&me
of
change
Quick
success
to
build
on
trust
by
having
a
track
record.
Never
personalize
the
problem
to
be
addressed:
Process:
The
easiest
technically
to
address,
but
poliMcally
difficult
Tool:
it
is
relaMvely
easy
to
scapegoat
the
old
tool
and
bring
new
one
People:
win
all
the
people
to
align
their
efforts
16

17. 17