Business Unit KPI Development and Change Management Strategy Report

This report is a literature review focusing on corporate governance, its importance in family-owned businesses, and its alignment with business and operations strategy. It emphasizes the relevance of Key Performance Indicators (KPIs) in achieving strategic goals. The review explores corporate governance mechanisms, stakeholder interests, and the components of corporate governance, including direction, transparency, stakeholder relations, effectiveness, and efficiency. It also discusses the principles of corporate governance, such as information flow, accountability, fairness, and responsibility. The report examines the evolution of corporate governance, particularly in the United Arab Emirates, and highlights the benefits of good governance, such as improved goodwill, successful mergers and takeovers, and reduced conflicts and fraud. It also addresses the specific importance of corporate governance in family-owned businesses, using Al Ghurair as a case study, and emphasizes the need for robust business processes and transparency to ensure sustainable growth and effective management of relationships within family businesses. The report underscores how effective corporate governance, especially in family-owned businesses, leads to better business opportunities, improved performance, and access to financing.

Develop each Business Units KPI's as they
don't formally exist and develop a change
management strat

Table of Contents
LITERATURE REVIEW................................................................................................................1
1) Corporate governance........................................................................................................1
2) Corporate Governance importance in family owned businesses.......................................4
3) Corporate Strategy alignment with Business and Operations Strategy.............................6
4) Relevance of KPI's to attain Business and Corporate strategic goals................................8
REFERENCES..............................................................................................................................12
.......................................................................................................................................................13

LITERATURE REVIEW
It is referring as scholarly paper that consists existing knowledge involving the
substantive findings along with the methodological and theoretical contribution to specific topic.
In order to collect the necessary data and information related to particular research topic, an
investigator use the secondary sources such as books, journals, articles, magazines and many
others.
1) Corporate governance
On the basis of view point of Aebi, Sabato and Schmid (2012), it has been stated that
Corporate governance refers to mechanisms, process and also relations through which the
corporations are directed as well as controlled. It is system of practices, process and rules
through which an organisation is directed and also controlled. It essentially includes the
balancing interest of several stakeholders of firm for an instance management, employees,
government, shareholders, suppliers, financiers, society and many others. These all are the
necessary part of company and focus towards making the business firm more successful. The
main aim of corporate governance is to facilitate the prudent, effective and entrepreneurial
management which can deliver long term success of an organisation. In addition to this,
corporate governance gives framework for achieving objectives of an organisation and it also
encompasses each management sphere from internal controls and action plans to the corporate
disclosure along with the performance management. According to Chen, Lu and Sougiannis
(2012), it has been concluded that corporate governance is an effective technique through which
firms are managed as well as directed in an effective manner. It is an interaction among the
different participants such as management, shareholders and board of directors in order to
shaping the performance level of an organisation. It is necessary that relationship among
managers and owners should be healthy at workplace and there should not be any conflict arise.
It deals with identifying the different methods to take the better strategic decisions. Corporate
governance provides responsibility and authority to Board of Directors. This assures the
transparency that assures the balanced and strong economic growth of country.
Components of Corporate governance
Corporate governance refers to role that executive teams and boards plays at workplace
in oversight and leadership to provide wider scope of business. It need the firm to create and also
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monitor the robust and comprehensive programmes as well as mitigate the factors of possible
risk. There are various components related to corporate governance mention below:
Direction- Under this, employees and leaders both are the necessary part of corporate
governance in order to provide the better direction for business. As per the view point of
Claessens and Yurtoglu (2012), developing effective strategic decisions and consulting the
existing and future concerns of firm are tactics of direction component. The manager provide
direction to employees in context to perform the business activities in a systematic manner. It
will help in attaining the decided aims within specific period of time.
Transparency- It means that data and information should be given in understandable
manner. It is necessary that information should be directly assessable as well as available freely
which will be impacted through the governance practices and policies. On the basis of opinion of
Claessens and Yurtoglu (2013), it has been stated that Corporate transparency is helpful in unify
company. When the staff members understand strategies of management and also permit them to
monitor the financial performance of business then in this case they will understand their roles
with in firm.
Stakeholder Relations- Under this, corporate governance encompasses the accountability
of business to every group of stakeholders. It has more centred on investor communication and
relations of decisions of an organisation. In context to this, investors can search information
about board of directors on website of company. The webpage of corporate governance indicate
the particular things organisations do not meet with the expatiations.
Effectiveness and Efficiency- The good corporate governance means process executed
through business firm in context to develop the favourable outcomes meet with the requirements
of stakeholders while developing the better resources for an instance financial, environmental,
human and technological.
Committee effectiveness- An effectiveness of executive committee can be improved in an
effective manner through conducting the committee meetings, having implementation succession
plan, planning of activities in careful manner, better utilise subcommittees etc. It will be helpful
in developing the positive impact on productivity and profit of company.
Principles of Corporate governance
According to opinion of Erkens, Hung and Matos (2012), it has been concluded that
Governance needs dedication, commitment and also time from leaders in context to understand
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about the advantages of align all levels of company. The better corporate governance assures fair
and also transparent business environment, where each person can have held the accountable for
actions. It is necessary that better corporate governance should be incorporate in good judgement
and behaviour. These are the main behind behind conduct business in smooth manner. There is a
requirement to companies to improve the need of governance to examine the projects, structures
and process of internal business. According to opinion of Kleinbaum and Stuart (2014), it has
been stated that different principles related to corporate governance given below:
Information flow- It is necessary that executive committee assures flow of information to
board that helps in making the effective decisions. There is accountability and also transparency
of an environment for the external stakeholders and staff members throughout an organisation. It
is necessary that financial statement should be safe and secure.
Accountability- Under this, code gives for the accountability of Board of Directors of
firm to all shareholders in accordance with the applicable of legal systems as well as give the
proper guidance and direction to all Board of Directors in regards to make the better decisions
and monitor all activities of executive bodies.
Fairness- In this, firm undertakes for protecting the rights of shareholders and also assure
the equal treatments of shareholders. It is necessary that at workplace, there should be equal
treatment among all the shareholders. It is a responsibility of all the Board of Directors to
provide better opportunities to all the shareholders to obtain the efficient redress for offense of
their rights. In context to shareholders, there should be provided equal treatment to all
stakeholder such as public officials, staff members and communities.
Responsibility- On the basis of opinion of Harford, Mansi and Maxwell, 2012 Firm
organise rights of all the interested parties which are permitted through legislation and also seeks
in order to cooperate with organisations or people for their own financial stability and
development. It is necessary that stakeholders should know about the all activities of an
organisation. In this, Board of Directors are more responsible towards overseeing management of
business, appoint chief executive, affairs of firm and also monitor business performance.
Evolution of Corporate governance
Nasdaq Dubai that is regulated through Dubai Financial Services Authority DFM and
ADX both are to be regulated and also licensed through Securities and Commodities Authority
(SCA). Corporate Governance in United Arab Emirates is focused on the different listed firms.
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In year 2009, Securities and Commodities Authority introduce Corporate Governance Regulation
that applied to joint stock firms as well as institution whose securities are to be listed on market.
In addition to this, code of Corporate Governance set the high standards of corporate governance
and it is based on the international brands. SCA has issued comprehensive template business
plan for assess organisations comply with needs.
Benefits of Corporate Governance
Improve goodwill- The program of corporate governance can enhance reputation of an
organisation. If company will publicize the policies of corporate governance, then it will be
helpful in increasing interest of stakeholders towards firm. Under this, practices of sharing the
internal information with the main key stakeholders is called as transparency that permits the
persons to feel confident. It will be helpful for business organisation to increase productively and
efficiently of capital.
Takeovers and Mergers- There are several mergers and takeovers in an organisation. In
order to this, corporate governance is necessary to preserve all interests of all parties as well as
stakeholders at the time of mergers and takeovers.
Reduced Conflicts and Fraud- It limits potentially for bad attitude as well as behaviour
of staff members through developing the rules to minimize the potential fraud and also conflict
of interests. As per the view point of Litov, Moreton and Zenger (2012), it has been stated that
Company enhance the motivation level of employees so that they can work together without
arise of any kind of conflict. The corporate governance reduces the risks, mismanagement,
wastage and corruption and helpful in better brand development and formation.
2) Corporate Governance importance in family owned businesses
As per the view point of Marr (2012), it has been concluded that Corporate governance
consists balanced interest of many stakeholders of firm like consumers, government, staff
members, financiers, suppliers and also community. It is necessary for every business firm to
practice the corporate governance. Having to meet with the fair business owners and
entrepreneurs, it is discouraging to see failure of family owned business. Adoption of the
corporate governance is beneficial for organisations and family- owned business. Al Ghurair is
investment company and it is largest diversified industrial conglomerates in Middle East with its
different key units such as Properties, Foods, Construction, Resources, Ventures and Energies.
This business is founded through Al Ghurair family. Better practices of corporate governance
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strengths organisations through developing healthy relationships between board of directors,
employees, investors and managers. In addition to this, executing the guidelines related to
corporate governance permits business firm to obtain capital to minimum cost, attract human
capital and increase business strategy. The good corporate governance is helpful to assure an
integrity of the business operations and strengths democratic governance and rule of law through
promoting values of transparency and accountability. Under this, corporate governance is main
governance form that is applied to set ups of business and conduct it by following all procedures,
rules and norms to regulate, control and also operate the businesses. The family businesses are
backbone of several economies in all around world and also their sustainability is difficult to the
global economic development.
Enhancing globalisation and development brought several challenges for the family
businesses. Al Ghurair company sees itself as legacy of innovative as well as creative operations
developed on responsibility, excellence and trust. In context to this, corporate governance is
difficult for enabling factor for growth of family-owned businesses. On the basis of view point of
McCahery, Sautner and Starks (2016), it has been stated that Practising the good governance able
organisations to situate the robust business processes and also develop for the future business
expansion. When comes to the family- owned business in Gulf, Al Ghurair organisation have
increase standard with its best-in-class practices, visionary board, inspired through strong
leadership and structured governance framework. The corporate governance lays foundation for
the family companies more transparent and accountable in business operations which lead to
better business opportunities for development, improved performance and financing. As expand
of family business organisations, it is complex for Al Ghurair organisation to manage
relationship among managers, staff members and owner. In context to family business, it is
managed or governed through family and also controlled through members of similar family. To
assure continuity of business, it is done in a way that is more sustainable across generations of
family. In this, better corporate governance systems put correct policies to manage the
complexities in an effective manner. It develops an effective organisational structure that helps in
reporting lines, delegation of responsibilities and also clarifies the roles. The family owned
business firms represent large portion of worldwide economy mainly in the emerging markets.
These types of organisations are necessary as corporate ambassadors of domestic markets. There
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are different practices which an organisation can begin to encourage the better corporate
governance mention below:
Prepare clear policies- It is necessary that policies should be in the written form and also
should be clear to each person on company. On the basis of view point of Peng Xu, Chan and
Qian (2012), it has been stated that not having written policies is to be akin to move objectives
posts, modifying at fancies and whim of patriarch. Through this, family members will work on
the basis of set plans and policies.
Succession Planning- Family organisations are starting to identify lack of family
governance structures that can be arise the big reason of dispute when it comes at succession.
Succession plan permits Al Ghurair family to create and also facilitate change of leadership in
planned, non- disruptive and progressive manner of longevity of an organisation while securing
the brand value as well as goodwill. In this, succession planning is helpful to maintain the better
balance of the experience as well as skills with in firm.
Assuring fairness- On the basis of opinion of Purce (2014), it has been stated to open
process and decision making assure the fairness in examining as well as rewarding the non-
family and family staff members which are necessary tools in neglecting the tensions and also
increasing goodwill of firm at market place. Many family-owned businesses in region are
embracing the corporate governance in order to retain for long period of time. Family ownership
may see as better threat or opportunity based on various factors. Family commitment and
ownership to business may understand by adding some value and controlling the family that can
respond towards concern of community of investor.
Delegating Authority- In family owned business, decision maker and also authority is
patriarch. Most of the time, decisions will have made through patriarch eventually. According to
view point of Rugman and Verbeke (2017), it has been concluded that to begin business in
practice with the good corporate governance, authority should be delegated. It is necessary that
authority should be in the hands of responsible person which can focus towards attaining the set
aims and goals.
3) Corporate Strategy alignment with Business and Operations Strategy
Corporate strategy alignment is an effective process that directly link with organizational
structure and strategy as well. Mainly, strategic alignment enables to enhance the performance
level of the company by using worker’s contribution. Al Ghurair Investment, Dubai
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conglomerate that assess to made the Burj Khalifa, will prefer to neglect the public offerings of
shared in group of its organisations in existing market situations. Corporate strategy is direction
that a company takes which an aim of attaining success of business in long term. Under this,
company find an effective way in which it can conduct its different business operations to attain
specific objectives. Business strategy refers to working plan of company for accomplishing its
competing successfully, optimize financial performance, vision and prioritizing aims with
business model. The business strategy of Al Ghurair to focus on assuring that company is selling
its products and services at right time and in minimum cost. Operational strategies are related to
methods which an organisation used to reach at the objectives. In this, operational strategies that
Al Ghurair business firm used in order to reach at business objectives are diversification through
which several business facts with in globally and UAE, support from the procurement across
whole board from central group procurement. Thus, it is important for business organization to
aligned with its target customers, users at market place. In addition of this, it is highly related
with organizational activities because both are vital for company to enhance their productivity
level at market place. In this context, business strategy refers to the process which help in
achieving goals and objectives in systematic manner. On the other side, corporate strategy
defines how corporate support as well as enhance the overall value of the business. Both terms
are beneficial for the business organization to attain long term goals and at the same time also
increase the chances of attaining competitive advantage from its rivals.
On the basis of view point of Sethi (2012), it has been stated that Corporate strategy
emphasis a corporate action with the business organization which provide guidance to firm for
attaining long term goals and objectives in most effective manner. This will help business and
operations strategy at the time of formulating targets. As corporate strategy is highly related with
the long term vision which contribute in making strong and motivating workforce. Through
which company can easily implement all the actions to grab customer’s satisfaction. In addition
of this, corporate strategy defines continuous process which aid in engaging investors which help
in increasing the equity. By using this, operational activities of the company improve the chances
of attaining positive outcomes. Through implementing corporate strategy, firm deliver quality
values to customers. For attaining success at market place, company should implement effective
corporate strategies through which they can manage overall activities of the company and its
operations as well. In context of this, corporate strategy alignment with business strategy because
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both are important to develop competitive performance of the company at market place. This
will improve overall productivity of the company by taking right and effective judgement. In
this, the decision of a company defines the ways to create as well as manage competitive
advantage by effectively evaluating the product line. Overall business strategy may help entire
function to made rights functional decision with the purpose of enhancing brand image of the
firm at market place. As per the opinion of Stout and Blair (2017), it has been concluded that
Corporate strategy also define the opportunities in which business organization increase
efficiency, profitability and competitive advantage also.
In addition of this, business strategy may contribute in determining right direction
through which company set their target and objectives to make overall performance competitive.
Thus, firm have to make their process appropriate and also implement all the necessary aspects
while implementing business activities. With the help of this, manager of the company can easily
take right ways and at the same time also increase the chances of attaining higher success.
4) Relevance of KPI's to attain Business and Corporate strategic goals
On the basis of opinion of Tricker and Tricker (2015), key performance indicator is a
kind of performance measurement i.e. helpful in examine success of company or specific activity
under which it engages. There are certain main key performance indicators, such as - Financial
Metrics, customer metrics, process metrics, digital marketing metrics etc. It is business metrics
that are used through the corporate executives and also other managers in order to track and also
measure factors which are more crucial to success of company. The main focus of key
performance indicator on process and functions of business that management sees necessary in
order to measuring the progress to meet with the performance targets as well as strategic goals.
The Key Performance Indicator is different from company to company and it depends on the
business priorities.
It is above discussed that effective key performance indicators guide a business on
completing journey towards strategic goals and objectives. An adequate KPI refers with a
measurement of where a business was, where it has come from and where it is going. According
to Aebi, Sabato and Schmid (2012), it helps to translate business strategy of companies into
manageable and operational actions relies upon data which have been gathered and monitor. In
order to obtain high market growth and success, it is essential for business organisations to align
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their business strategy and having clear goals towards performance. Key performance indicators
are crucial for evaluating financial performance, boost up employee morale, obtain customer
satisfaction level and further personal objectives to growth of a business. They render insightful
snapshot of entire performance of a company and reliable information thus to make imperative
business decisions.
With the viewpoint of Chen, Lu and Sougiannis (2012), KPI create an environment of
learning within organisational cultural so that employees can generate better; it leads innovation
and provide effective understanding for developing a business strategy. In this manner,
companies will be unable to obtain their strategic and cooperative goals in a certain time period.
Effective implementation of Key performance indicators typically comprises four processes,
such as -
 Firstly, firms translate its cooperative vision statement into achievable goals that should
communicate to employees.
 These goals are related with performance targets of individuals which are aligned on
periodic basis.
 In third stage, establishment of internal processes in order meet strategic goals and
customers' expectations.
 Finally, managers focus on measuring and developing recommendations for improving
performance level of entire company in future.
Apart from this, KPIs must also be defined in a way that external factors, beyond the
control of a company, cannot interfere with them. Key performance indicators are considered as
measurable and attentive goals of a company which typically tied with organizational strategy.
Along with this, it reveals by performance management tools like Balance Scorecard. This type
of balance scorecard includes four major processes through which a company can attain its goals
that are:
 Translation of corporate vision into operational goals which are measurable as well as
communicated with employees of a company.
 Such goals are also linked with performance goals on individual basis and assessed on a
specific period of time.
 Establishment of internal process for meeting strategic goals and expectation of
customers.
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 At last, KPI are finally analysed for evaluation along with creating recommendation on
the same in order to create improvement for future performance of business.
Thus, this process of balance scorecard provide various advantages like- Managers and
employees can examine overall goal of plan, they can understand roles and responsibilities of
own and more. In addition to this, through balance scorecard methodology, employers of a firm
can track progress record of each worker as during every step of chasing goal.
Following is defined the role of KPI in different businesses, such are stated as under -
Food production – Food manufacturing is one of biggest industry but effectively
measuring, analysing, and improving manufacturing metrics is not as simple as it may appear.
According to Claessens and Yurtoglu, 2012 KPIs are indicator which derive critical success of a
business organisation and improves its functionality as well. In context of food production, lean
manufacturing practices are at their infancy. Most of the food processing companies like Al
Ghurair is highly focused on food safety instead of process improvements. In this relation, they
acquire lean manufacturing that not only improve operational performance but also increases
productivity and quality. Al Ghurair Foods was founded in 1976 by creation of National Flour
Mills; in this section the firm is entirely concentrated on a diversified portfolio of food products.
In past decades, Al Ghurair Foods had a great market presence in 20 nations over the world. To
produces its food products in an effective, Al Ghurair is focused on offering quality and value to
customers and for this top management is focusing to keep skill workforce and in-house
expertise who are critical to obtain success. In this manner, KPIs plays a vital role to boost up
skills, cultural and expertise thus firms can obtain their strategic goals and objectives.
Construction – Usually, Key Performance indicators are used for monitoring costs, track
progress, assess client satisfaction, determine strength and weaknesses, compare performance
across and between projects etc. In construction unit of Al Ghurair, KPIs are utilised for tender
documentation and provide regular provision of information which accomplish contract
requirements. Construction section of the company is tending to determine where the project has
been reached and project progress relative to milestones. Al Ghurair Construction was
established in 60's and focuses on aluminium, foundations, masonry and ready mix. It has
worked on various construction projects, such as - Burj Khalifa, Fairmont Hotel, Dubai metro,
Kempinski Hotel, Etisalat, Dubai roads and transportation etc. In, Al Ghurair performance level
of employees are decided on the ground of how many hours are being spend by employees on
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