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It encourages other companies to improve their management practices

By SHABBIR H. KAZMI
June 04 - 10, 2001

The 18th Corporate Excellence Award of Management Association of Pakistan, in the non-financial category, was jointly received by two companies namely Al-Ghazi Tractors and Lever Brothers Pakistan. It was for the first time that the Award was bestowed to two companies in this category. In the financial category the Award was presented to Orix Leasing Pakistan. Al-Ghazi, which has been receiving the certificate for the last four consecutive years has received the award for the first time and Lever has received this award third time. Engro Chemical Pakistan (previously Exxon Chemical Pakistan) has received the award eight times — the highest number so far.

Instituted in 1982, the Corporate Excellence Awards have been distributed every year by the Management Association of Pakistan (MAP). This award encourages constructive competition among business organizations to strive to excell in producing quality goods and providing adroit services conforming to international standards. At the 18th Award distribution ceremony Shaukat Aziz, Federal Minister for Finance and Economic Affairs was the Chief Guest. Shaukat applauding the efforts of the Association, suggested that public sector enterprises may also be included in future to encourage competition among these entities.

To begin with the Minister congratulated the winners of the awards and certificates and hoped that they would continue to maintain their exemplary status in the years thereafter. He also encouraged other companies to focus their attention on MAP's award and improve their management practices to achieve it.

While addressing the august gathering, Shaukat said, "I know all of you are eager to know the highlights of forthcoming budget. The point of satisfaction is that the International Monetary Fund (IMF) review mission is satisfied with Pakistan's economic performance in last three quarters. However, it is also necessary to take into account the constraints within which the next budget is being prepared."

Dilating some of the key points, the minister said, "We are focusing on growth, investment and economic reforms. Revival of investors' confidence is a must for fresh investment to achieve growth and poverty alleviation. We face a situation where we have to undertake economic reforms, but availability of funds is a serious constraint. Deficit financing, at this stage, is not a prudent approach as it demands borrowing more which means further increase in debt."

In the welcome address, Moin M. Fudda, President, Management Association of Pakistan availed the opportunity for presentation of a lucid description of the focused attention of MAP. He said, "The main objective, among others, of the association has been to stimulate interest in, and to disseminate knowledge on, more sophisticated management techniques through organizing training courses, workshops, seminars and conventions on almost all facets of management science."

He also announced the names of winners of the Awards and Certificates for the year 1999. The recipients were:

NON-FINANCIAL CATEGORY

Awards

Al-Ghazi Tractors

Lever Brothers Pakistan

Certificates

Bannu Woollen Mills

BOC Pakistan

Grays of Cambridge Pakistan

FINANCIAL CATEGORY

Award

Orix Leasing Pakistan

Certificate

Adamjee Insurance Company

The MAP's Corporate Excellence Award is the most sought-after award in the corporate sector in Pakistan. This honour bestows upon recipients, the distinction of being the best managed. The issue of good governance is now being talked frequently but MAP was cognizant of it two decades ago and had stipulated it as an over-weighing factor in its evaluation criteria. The award has proved to be a catalyst in increasing awareness about the modern management practices. A number of national companies have developed management culture and now stand at par with multinational corporations.

Syed Mumtaz Saeed, Chairman, Corporate Excellence Award Sub-Committee briefed the audience about the process being followed by the MAP. He said, "To identify and recognize the best managed listed companies a criteria has been developed over the years. The evaluation process has evolved in the light of experience and in response to the comments and observations of its members. The ratios used for financial evaluation and the questionnaire used for management appraisal, have also been expanded. Over the years, the relative weightage given to financial and management evaluation, has undergone a change."

For Excellence Awards 1999, the first screening yielded 75 companies, to which the financial evaluation criteria were applied. This resulted in short listing of 25 non-financial companies and 19 in financial category. Responsive to the contemporary environment of best management practices, and in the context of the experience of the Awards 1999 process, the Executive Committee has entrusted the Excellence Awards Sub-Committee with the responsibility to undertake a thorough review of the awards process and recommend modifications for making the MAP Excellence Awards more closely approximate towards international management awards practice. These modifications will be reflected in the Awards 2000 process.

The Awards process is spread over four phases. In the first phase, the primary qualifying criterion is :maintenance of a dividend rate of at least 20 per cent (Cash or Bonus) in at least two out of three years and an aggregate payout of at least 60 per cent over the past three years. Phase two involves further short listing from amongst the companies qualifying these primary criteria on the basis of elaborate assessment of financial performance of companies in 7 sectors. In the third phase, an elaborate questionnaire on management practice is filled by short listed companies. The fourth phase consists of detailed meetings conducted by members of Excellence Awards Sub-Committee with the top management teams of companies.

After the distribution of awards and certificates some of the recipients were invited to share with the audience their broad policy parameters, which have helped them in qualifying for the Award. At the end Javed Iqbal, Hon. Secretary of MAP and Chairman, Philips Electrical Industries of Pakistan Limited thanked the chief guest and all those who spared their time to attend the ceremony.

It is necessary to reiterate that Pakistan's success in development of market-based economy, privatization and deregulation of socio-economic system depends upon the strengthening of the managerial efficiency of its private and public sectors. The macroeconomic success is largely dependent on microeconomic effectiveness.