Egypt Express - Executive of the Year - Transportation
Company: Egypt Express, Cairo, Egypt
Company Description: Egypt Express (“EE”) was established in 1998, and has since been a Global Service Provider for the Federal Express (“FedEx”) brand in Egypt Total # employees = 550+ , Total # offices = 33 FedEx is a courier delivery service company, Nature/line of business: Transportation , shipping , clearance cargo and courier services
Nomination Category: Management Categories
Nomination Sub Category: Executive of the Year - Transportation
Nomination Title: Mohammad Shaheen: The most inspiring Leader
Tell the story about what this nominated executive has achieved since 1 January 2017 (up to 650 words). Describe the impact he or she has had on your organization. Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms.
Leading through Changing times in Egypt:
Following 2011 revolution in Egypt, the country witnessed its most difficult times not only from; demonstrations, rallies, strikes, curfew, currency devaluation, travel ban, economy drop, fuel and Gas shortage, yet all economic indicators has declined leading to a severe decline in overall organizations’ business results while many others has closed. Egypt Express one of many organizations that hardly survived yet couldn’t keep healthy business results.
By the end of Q4, 2015 Mohammad Shaheen became leader of EE and was faced with a challenges to overcome tough economic situation, low employee morale, and convert them into a positive environment with higher morale leading to better business results.
It was mission impossible for him to convince shareholders -with the unhealthy measures and declining EBT- that we invest more in technology, tools, learning & Development, social responsibility, and people happiness as the means to return back to healthy business results.
He utilized his belief in FedEx philosophy “PSP” (People-Service-Profit) and one team, one goal as a slogan.
By 2017; the company did not only achieve better financial KPIs, but was also able to achieve substantial increase on all Employee Satisfaction KPIs in the annual employee opinion survey,
Mohammad Shaheen recognizes that employees as main stakeholders have needs that must be fulfilled in order to feel engaged and perform better and without fulfilling those needs, no matter how much investment in done in tools and Sales, the business results will not improve and that investment is better done in hard times.
Action plan in this area were based on mutable axis.
1st Axis: Employees needs to feel Special & appreciated through the following actions:
Employee of Quarter Award
Employee of department Award
Employee of year award
Special effort recognition
Long service Award
02nd Axis: Employees’ need to feel Secured:
More medical benefits with higher coverage
Support beyond ceiling
Road accidents insurance
Moving from disciplinary culture to learning from mistakes.
03rd Axis: Employees’ need to feel Fairly compensated:
Salary surveys to benchmark against market.
Immediate action to adjust salaries after EGP devaluation, despite Consultants advise.
Adjusting all commissions/incentives and allowances Vs market.
In 2016 the MD launched pay for performance approach to merit payment.
04th Axis: Management Empowerments
Full delegation of Authority going Two levels down as stage 1.
Changing the decision making process towards de-centralized organization.
Decisions are made in agreement with the management team.
05th Axis: Employees’ need to be developed
Post-graduate studies support.
Leadership trainings to all management
Business knowledge competitions
Using Assessment/development centers for recruiting and development
06th Axis: employees’ need to be heard & communicated with
Monthly breakfast with randomly selected employees –no managers- to meet outdoors in informal setting to express their thoughts, comments and concerns. –(bottom-up-communication)
Adapted open door policy to ensure transparency
Annual Kickoff meeting
SMT Roadshow to all locations for up-down-communication
07th Axis: employees’ need to have fun
Football, Ping-bong competition
Fun & Games at break area.
M.Shaheen management style is based on “transparency”. After years of treating business results as “Top confidential” leaving employees uncertain about company or own performance and direction, he decided to communicate the challenging business results to all employees to ensure their engagement and understanding of how their individual performance and contribution affects the overall business.
Aim: was to improve business indicators 10-15% YOY by full and transparent communication to company strategy, goals, objective and business results
He decided to start a new tradition (annual staff meeting “Kick-off”), where all employees attend to convey to them in an informal setting (outdoors) the business results, strategic direction. In the same meeting the MD recognizes top performers and announces new benefits/ additional benefit programs.
1st kickoff moto was “one team…one goal”
As inspirational leader, he acts as role model and leads by example
In bullet-list form, briefly summarize up to ten (10) of the chief accomplishments of this nominated executive since the beginning of 2017.
2017 VERSUS 2015/2016 RESULTS:
-Productivity= 28 pickups & delivery / FTE/Day à 42 PUD/FTE/Day
-Revenue improved + 49%
-EBT % revenue -8% to +13.95%
-FTE from 380 to 570 (+56%)
-Turnover rate = 39% to26%
-DSO = 54.09 days to27.17 days (100% improvement)
-engagement 68% to 86%
-work environment from 60% to 82%
-communication 62% to 82%
-Training hrs/FTE 4.33 to6.81 (+57%)
-Pre-Post Training assessment improvement +44%
Investigations / month = 84 àto18 (10 months YTD)
-Bad attitude cases/year = 62 to12
-Recruitment lead time 27 days to 22 DAYS
-Lost Shipments 114 / year to6 per year (2015 vs. 2017)
-Productivity measures improved (28 -> 42 PUD/FTE/Day)
-SFA response rate improved from 55% to 84%
Extraordinary results were achieved, not only improving all 12 KPIS in the Employee Satisfaction (SFA), yet all other measures have exceeded the targets set only through engaging our employees