BPAMOCO FINLAND Helsinki School of Economics and Business Administration

1. BPAMOCO FINLANDHelsinki School of Economics and Business Administration April 1999

2. 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

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

4. Organizational Chart

5. Recruitment Needs For First Four Years

6. 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

7. 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

8. 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

9. 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 MarketingVP HRVP FinanceVP Sup. Serv. VP • National Marketing Program • PR/Sponsorships • Coordinate Global Branding • Support to Area and Facility • Managers • High Level Coordination • with Franchisees • Competitive Analysis • Recruitment Program • Coordinate Training • Administer Management Training Program • Implement Corporate Policies and Values • All Compensation Issues • Administer Performance Appraisal • Financial Control and Reporting • Budgeting • Investment Planning • Legal, Technology, Purchasing and Outsourcing, Audit issues

10. 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 MarketingVP HRVP FinanceVP Sup. Serv. VP • Business Degree • Knowledge of Finnish Markets and International Experience • Creating New Brands • Good Coordination and Communication Skills • Relationship Building Skills • Team Player • Finnish • Degree in HR • Extensive HR Experience in Finnish Market • HR Leadership Experience in Service Industry • Finnish • Established HR Network Within Finland • Experience Financial Professional and Similar Size/Type of Operations • From Chicago or Finnish • Experienced in Managing Professionals, Law, IT and Contracting • Real Estate Competence

11. 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

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

13. Facility 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

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

15. 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

16. 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

17. 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

18. Selection Process

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

20. Future perspectives • 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

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

22. 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

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

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

25. Base Salaries In FIM, $ 1 = FIM 5.5 CEO 700.000 Vice Presidents 400.000 Area Managers 300.000 Facility Managers 220.000 Assistant Facility Manager 150.000 Salary Range: (+/- 25%)

26. 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

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