Nasir Abdalla Ali Alobeidli, corporate strategy specialist at the UAE General Civil Aviation Authority (GCAA), sheds light on the role of strategy planning and KPI in the future of public service and how governments can provide services that ensure people’s happiness and quality of life.
Trends
What are the key trends that have shaped the public sector in recent years?
In general, the whole world has gone through global changes that had a significant impact on the business environment, whether in the Middle East or in the whole world. As we go through the impacts of the Covid-19 pandemic on business continuity, which significantly contributed to directing many organizations to apply the institutional resilience approach to ensure agility. Also, real-time measures and indicators to monitor the various developments affecting the business environment and its sustainability were used.
It can also be said that technological development has taken an accelerating curve in appearing on the ground, which has become evident through the digital transformation in government services, for example. This has also led to the emergence of various technical developments, such as virtual reality, metaverse technologies, and artificial intelligence. It’s safe to say that this change has contributed to an increase in the need to promote digital maturity at the institutional level as a whole and on the quality of life in general.
The changes in the nature of business and the start of transformation in business models have become a reality that we live in today, as most of our meetings take place online, anywhere and at any time.
Technology has not only contributed to the development of mobility systems to become more easy and efficient, but its development has led to the emergence of new modes of mobility that we have not seen before, such as flying taxis, transportation through Hyperloop. We have witnessed during the recent period a great interest in climate issues and environmental issues as a whole, which require us to be ready for what we could face in terms of the challenges or opportunity associated with it. Finally, we are in a rapidly changing world that is subject to various variables, and innovation has been and still is the biggest motive for all variables.
What do the public services of the future look like?
As we mentioned previously, government services are generally on technical manifestations so that they are available electronically. With its world-class resources, the UAE aims to develop proactive, interdependent, and integrated government services that prioritize people’s happiness and improve their quality of life.
I believe that we will not only stop at this point, but that we will witness a reformulate the general concept of service to be as close as possible to the best experience in government services, through the application of artificial intelligence and blockchain technologies and the provision of virtual centers through Metaverse technology to provide services and support closer to reality.
All of this is the future. We do not know its secrets, but we are fully aware that government services will undoubtedly be proactive, flexible and technologically advanced in accordance with standards of efficiency and effectiveness.
What role will strategy planning and KPI usage play in this futuristic scenario?
It is very important during the current stage of the strategy and performance units to embrace the development of methodologies and tools that contribute to shaping the future. This will ensure readiness for potential risks and seize available opportunities. Organizations should build the strategic pyramid, continue implementing measurements to reach the required stage of maturity, and develop new measurement concepts and methodologies. There is a need to enhance the institutional culture in organizations around the culture of measurement to reach the required stage of maturity.
I also see the need to develop indicators that reflect efficiency and effectiveness in performance as well as the final impact of what needs to be measured so that it provides realistic results. What we need is a KPI that will measure the final outcome to indicate the quality of life that we have reached.
Moreover, each entity should look for a pioneer indicator that really reflects its mandate and the reasons for the organization’s existence in terms of the quality of life of the society and their stakeholders.
How is technology impacting the performance of government entities?
Technology has actually contributed to the performance and work of the management of the strategic plan and performance monitoring as a whole through the development of digital systems and platforms that contribute to the governance of monitoring institutional performance and ensuring compliance with the requirements of periodic audits carried out by the strategy departments.
Organizations work to enhance their technological security capabilities by developing their employees’ capabilities in order to enhance the durability and strength of the available systems and to provide high institutional maturity in proper technical handling. With this, there is a need to establish and enhance indicators that reflect the result of technical culture in organizations.
Practice
What are your recommended best practices in strategy planning for government agencies?
The strategy and performance departments lead the institutional transformation at the organizational level, and we may see the best entities that are unique in obtaining international corporate excellence awards, which are the product of the plans and the system of monitoring and developing performance in the organization.
Thus, the best practices will be based on the extent to which the entities achieve compliance and achieve the standards of the system of excellence, first and foremost, and certainly achieving the future vision and the desired strategic success both factor at the level of the organization. Organizations cannot achieve an ambitious vision without a planned risk.
What key performance indicators should be reported for the successful delivery of public services?
Organizations must set leading indicators based on their operations and strategic plans that reflect their impact on the sector in which they operate. The required measures must consistently reflect efficiency on the activities, projects, and operations of the organization—such as measuring achievement rates—and must also include performance indicators that reflect effectiveness and achieve the desired goals. Institutions can set performance measures that reflect the achievement of goals through the OKR methodology.
What are the key performance management tools that any government entity should use to ensure performance improvement?
The system of measurement and performance monitoring generally requires the availability of appropriate tools that refer to the real state of its performance in general and to identify areas of success and opportunities to be worked on in the future.
From my point of view, the entities with their various orientations require focusing on different measurement tools, including measuring the performance of projects and achieving goals at the strategic level, which is known as the strategic and operational indicators to know the level of achieving the strategic plan through key performance indicators (KPIs) and metrics. In addition, it must measure the performance of its services and focus on indicators that reflect the level of maturity, flexibility, and proactivity in it, which reflects the best experience for the beneficiaries of government services as a whole.
Institutions will also need to measure the performance of their employees through annual performance measurement systems, known as performance appraisal, which must be designed in a way that reflects strong performance and productivity along with continuous development and application of excellence as a concept and basic principle. The process should include managing the staff’s professional development plans and managing the performance of key operations and tasks in a way that reflects institutional efficiency and effectiveness
What are the biggest challenges that government entities face during the implementation and usage of a performance management system? Please provide your suggested solutions.
In general, the various organizations will face regular challenges related to the efficiency of the monitoring system and the effectiveness of the corrective procedures. From this, it is possible to address the difficulties, including the culture of performance, as the process of monitoring and measuring performance is an integrated process that requires the participation of all parties in the organization and knowledge of the organization’s mechanisms and models.
In addition, we see other challenges related to the efficiency of performance governance in institutions as a whole, and herein lies the need to develop an appropriate governance system that enables individuals and organizational units to enhance performance monitoring internally and to develop and use tools and models. Organizations should focus on their growth and leadership and develop the right strategies to achieve excellence.
What are the crucial success factors in building performance and data-driven culture in the public sector?
Certainly, data represents an important factor and an essential input in the processes of managing and monitoring performance. Therefore, it is necessary from the outset to have an integrated governance and strategy for corporate data management in general, and this process requires clear institutional efforts that ensure accuracy and transparency along with analysis based on business intelligence.
Research
Which government entities would you recommend to be observed due to their successful approach to strategy and performance management? Why?
There are many good institutions that are good examples of measuring and monitoring performance, and here we mention the Dubai Electricity and Water Authority, along with the Roads and Transport Authority in Dubai and the Ministry of Interior, as they are entities that have proven their superiority and leadership in developing performance systems and distinguishing them through leadership in national and international programs. This is what we see In the international awards it has obtained, and the General Authority of Civil Aviation is distinguished by a high-quality measurement and control system that can be relied upon as a standard reference for performance according to the government performance system.
What are the key competencies of a successful business leader in a government entity?
In general, the distinctive characteristics of a government’s business environment require the leader to have a clear strategic view and an ambitious vision that contributes to achieving the government vision, in addition to leadership competencies such as knowledge of the nature of work, dynamism, excellence, keenness on creativity and innovation, and continuous presentation of new things in government work.
What are the processes and tools you look at when differentiating a successful performance management system from a superficial one?
In my view, what distinguishes systems in general is what they reflect in terms of efficiency, effectiveness, and leadership of the institution. A distinction can be made in the field of achieving the aspired goals at the level of the institution, and this, of course, depends on the level of ambition in its institutional goals.
About the Expert
Nasir Abdalla Ali Alobeidli
Corporate Excellence Manager – corporate strategy and performance, strategic planning, Auditor excellence | UAE General Civil Aviation Authority (GCAA) (2016-present)
Quality assurance , Government Excellence model , Operation Planning , Strategy, Trainer | Sharjah Police Headquarters – Training Institutes Dept. (2009-2016 ) | Data Analyst | Road and Transportation Authority – Dubai (2007 – 2009)
Executive Master of Business Administration | University of Sharjah
Bachelor’s Degree in Management | Ajman University of Science and Technology
Diploma in Business Administration | Ajman University of Science and Technology
Diploma in Government Performance | Prime Minister office
Future Foresight Diploma | Prime Minister office with Melbourne University
This interview was first published in the 24th printed edition of PERFORMANCE Magazine. You can get a free digital copy from the TKI Marketplace here or purchase a print copy from Amazon for a nominal fee here.
Nancy Samir Ibrahim Khalil, who worked as aStrategic Planning and Performance Management Expert at the Ministry of Health and Prevention in UAE from December 2016 to November 2020, laid down the best practices in strategy planning for government agencies and tools that can improve performance in the public sector.
Trends
What are the key trends that have shaped the public sector in recent years?
The key trends in the public sector have been shaped in several domains, such as sustainable development in energy, transportation, education, high priority healthcare topics, and services.
Add to that big data resources, digital economy, innovation, artificial intelligence, smart government, and space discovery. There is also advanced research in science, society, economy, and policy.
What do the public services of the future look like?
Public services have been developed much in recent years, especially in terms of time management, quality assurance, well-trained staff, customer satisfaction and happiness meters, and smart applications that save time, effort, and money.
Public services will step up ahead new horizons through managing and designing variety, reachability, availability, efficiency, and interacting services. Add to that the digital and robotics services.
What role will strategy planning and KPI usage play in this futuristic scenario?
Strategic planning and KPI usage are the mechanisms of every improvement that can ever be desired. In fact, what is not measured can not be managed. Entities need to track and evaluate very closely the efficiency and outcome of their plans, objectives, initiatives, programs, projects, services, processes, and activities by designing different types of KPIs with ambitious targets.
Good analysis, auditing, statistics, reporting of the performance of the plans, and using different systems and portals empower entities to accelerate and excel in futuristic scenarios.
How is technology impacting the performance of government entities?
Well-built designed systems and smart apps can help maintain an excellent framework to easily manage entities’ strategic and operational plans, contents, and requirements.
Systems provide graphs, live charts, statistics, historical data, comparison, and performance status, which helps handle gaps, take relevant decisions and actions, and optimize resources. Technology saves time, effort, and money.
Practice
What are your recommended best practices in strategy planning for government agencies?
There are many best practices government agencies can adopt. Some of them are fundamental for every entity, and some of them can be much related to the specialization, culture, or work environment of the entity.
Periodic performance management revision meetings for strategic and operational plans with concerned departments
Periodic analysis reports of the performance and KPIs results
Periodic top management steering committee meetings to discuss the status of the performance on a higher level
Visits to the entities that won excellence awards
Workshops and presentations
Training of strategy coordinators to follow up closely with their departments.
The use of a project management system
What key performance indicators should be reported for the successful delivery of public services?
KPIs should report the current situation of performance, whether it is good or needs more effort or bad. They should be coded with related colors (green, yellow, or red), along with solid analysis reports of the strength, weakness points, improvement areas needed, and recommendations with a timeframe to achieve. Dashboards also help a lot in generating quick results, important graphs, trends, and directions.
What are the key performance management tools that any government entity should use to ensure performance improvement?
SWOT and PESTEL Analysis
Scenarios Planning
Stakeholders Matrix
Methodologies
Questionnaires
Mind Maps and infographics
Benchmarking
Cause and effect analysis (ex. Ishikawa)
Workshops and Presentations
Systems and Dashboards
Work forms
What are the biggest challenges that government entities face during the implementation and usage of a performance management system? Please provide your suggested solutions.
Among the challenges are:
The deadlines and the delay of submitting results and documentation,
Resistance to change
Poor strategy culture and knowledge inside the entity
Inflexible administrative hierarchy
The delegation of mandates and responsibilities of the concerned department (strategy development) to other departments
Limited strategy team members
The solutions can be implemented by empowering the strategy department and giving them the needed authority, having enough specialized team members, using electronic systems in tracking and alerting, working closely with the management, addressing challenges and finding proactive solutions, raising strategy awareness, supporting and guiding other departments, and developing initiatives issues through accelerators.
What are the crucial success factors in building performance and data-driven culture in the public sector?
Teamwork
Trust and Confidence
Knowledge and Specialization
Time management
Decentralization
Accuracy and documentations
Numbers and Facts
Collaboration
Addressing Needs and Priorities
Flexibility
Evaluation and Monitoring
What are the key competencies of a successful business leader in a government entity?
The competencies of a successful business leader are a reflection of the corporate values itself, such as transparency, commitment, credibility, integrity, trust, and teamwork. There are many examples of values that every entity adopts to control and organize corporate behavior and the work principles of employees and leaders.
Moreover, the leader should have a good vision, management competency, communication skills, and ability to build teams and solve problems. Besides, the leader should be a good listener, have an open-door policy, and be ambitious and positive. The leader must be empowering, encouraging, and decisive.
What processes and tools do you look at when differentiating a successful performance management system from a superficial one?
There are some processes and tools that can be used:
The mechanism of building strategy document, strategy, and operational plans
The level of engagement of other teams of departments in designing and creating components of strategy
Methodologies of tracking and implementing a strategy
Mechanism of reviewing and evaluating plans, performance, and auditing results
Periodicity presentations and meeting minutes of the strategy and performance
Questionnaires’ results about strategy concepts and understanding.
Other departments’ satisfaction rate towards the effort provided by strategy teams
Proof of closing gaps and addressing recommendations within the deadlines suggested
Project management system.
About the Expert
Bachelor’s Degree, Double Majors in Econometrics & Social Statistics University of Khartoum – Faculty of Economic and Social Studies | Khartoum, Sudan – 2006
Strategic Planning and Performance Management Expert | Ministry of Health and Prevention, UAE – Strategy and Future Department | December 2016 to November 2020
Head of Strategic Planning Section | Ministry of Justice, Sudan – General Directorate for Development and Strategic Planning | April 2016 to December 2016
Strategic Planning Specialist | Ministry of International Cooperation and Development | Corporate Development Dept. | April 2012 up to Dec 2015
Customer Support Executive | Emirates Telecommunication and Corporation Company -.Etisalat, Dubai, UAE | June 2010 – December 2011
Courses & Training: Creativity & Innovation, Strategic Planning and Strategic Thinking, PMP, Six Sigma, Change Management, Excellence Leaders, Institutional Excellence, Economic Analysis, Integration Strategies in Trade, Business English, TOFEl Course
This interview was first published in the 24th printed edition of PERFORMANCE Magazine. You can get a free digital copy from the TKI Marketplace here or purchase a print copy from Amazon for a nominal fee here.
Image source: Nirutistock from Getty Images | Canva
“What you should see is an exponential improvement in the quality of service. You will have proactive service delivery. You will have the best quality output that will make you feel like the government understands you, that it feels you, that it serves tailor-made services for you specifically as an individual. That is the impact of AI in your life.” – The UAE Minister for Artificial Intelligence Omar Al Olama, viaEuronews.com
The COVID-19 pandemic has emphasized the discourse about the importance of digital transformation to the survival of an organization, especially in the public and government sector. At the World Government Summit 2022, it was evident that digital government has become a top priority as governments worldwide try to keep up with technological advancements and rapid change.
Digitalization provides more efficient and high-quality services and boosts communication between governments and citizens. The three most captivating qualities of a digital government are its capacity for effective service delivery, affordable scaling, and quick adaptation. Many large-scale digital innovations from telemedicine to telework, as well as from virtual courts to virtual education were implemented to aid the needs of the citizens and maintain government services. These initiatives show how relevant digitalization is now more than ever.
Despite the progress made by many governments, reaching a mature level of digitalization is not an easy endeavor. The development efforts of countries under unusual circumstances are still being hampered by persistent problems, especially in the least developed countries. For instance, in Africa, the price of mobile broadband connections remains extremely high relative to per capita gross national income making e-government developmental initiatives compromised.
From analog government to digital government
The digitization of government operations and public services—the switch from analog to electronic governance—has advanced dramatically during the past few decades. Governments have attempted to modernize their working practices through extensive public sector reforms to accommodate new technologies and citizen needs.
In the public sector, digital transformation plays a significant role in enhancing the potential of community participation, as well as process efficiency improvements in government organizations. Giving citizens a voice and the opportunity to participate in and work on governance increases public trust, and meeting evolving customer service needs remains a top priority.
Denmark recently introduced an e-participation initiative where individuals can suggest new legislation through the use of electronic petitions. The Danish parliament oversees the Borgerforslag (https://www.borgerforslag.dk/) initiative, which translates exactly to “citizen proposal.” As of now, this project already received a total of over 1400 proposals. The program is open to everybody who is eligible to vote in general elections in Denmark. They can propose, evaluate, and vote on proposals in the portal for the changes they believe the government or society should address. The proposal may be submitted as a motion for resolution if it is supported by 50,000 eligible voters in the general election.
In discussing digitalization in the government, e-government and digital government are two concepts that should be defined. Although these two ideas are commonly combined, they nevertheless refer to separate notions. E-government is described as the government’s use of Information and Communication Technologies (ICTs) to improve public services in the “E-Government Services Adoption: An Extension of the Unified Model of Electronic Government Adoption,” a study led by Isaac Kofi Mensah in 2020. Moreover, e-government deepens citizens’ connections to their government and promotes greater citizen involvement in the decision-making process. E-government aims to advance the effectiveness and transparency of the government by delivering services faster and cost-effectively and empowering citizens through participatory governance.
The idea of digital governance signifies a fundamental change in how governments globally are approaching their role. Governments are transforming how they use the power of information technologies: from establishing quantifiable administrative objectives to enhancing the provision of public services, from data-driven decision-making to implementing evidence-based regulations, and from providing more accountability and transparency within the government to boost public trust.
Furthermore, digital government services save employees’ time for bigger projects and reduce the production time and materials for the public services. According to GovOS, an organization that provides “innovative solutions and industry-leading services” to governments, digital government services, such as business license renewals, fishing license applications, and filing tax returns, do not require manual manpower to process an application. This allows the employee to focus on the more important projects.
Similarly, Secretary-General of the Asian Productivity Organization (APO) Dr. AKP Mochtan mentioned in the Digitalization of Public Service Delivery in Asia report that the delivery of public services can change from “being reactive to citizens’ needs to becoming proactive to anticipate future needs” as a result of the use of digital technologies.
Realizing the opportunities demands a paradigm shift in the use of digital technologies and data within governments, from e-government to digital government. In an effort to increase efficiency, an e-government approach sees technology as the answer for digitizing the delivery of an existing analog process. It puts emphasis on its implementation. In contrast, digital government practices place less emphasis on technology and more on re-engineering and revamping services and procedures to satisfy user needs. The establishment of digital-by-design cultures, which alter organizational behavior, goes hand in hand with this digitalization.
Benefits of digital public services
When properly implemented, e-government makes it possible for individuals, businesses, and organizations to connect with the government more conveniently, promptly, and affordably. The potential savings in expenses are also enormous. According to the European Commission, electronic billing in Denmark saves businesses and taxpayers a combined €200 million annually. Savings might reach $50 billion annually if implemented all over Europe. Meanwhile, e-procurement systems in Italy reduced expenses by nearly €3 billion.
E-Government results in increased internal productivity and efficiency of government workers, having more time for critical duties rather than more time-consuming tasks like filing reports or paperwork manually. It also boosts better cross-departmental collaboration since key documents are shared and can be easily found in a digital repository. Digital government services can lessen paper-based workflows that save governments money and benefit the environment. This will also result in decreased labor expenses.
Governments may accomplish more with fewer resources and provide greater services to their citizens using digital government services instead of sticking with conventional ones. These digital services for the government can also promote transparency and strengthen ties between the public and its governing body when any suspicion appears.
The conventional approach to service delivery entails several paper-based procedures, a minimal to no understanding of the business processes, a significant time and labor commitment, and no public access to the data collected. The advantages of digital government services not only assist in solving all of these challenges. But they also strengthen the bond between governments and their constituents.
Drivers and challenges
In times of social distance, the digital government has also played a crucial role in enabling public institutions to continue to be available and functional so they can meet citizens’ requirements. Only the governments in the region with the appropriate digital infrastructure have been able to provide services like transferring resources to people in need, distance learning for students, telemedicine, and the distribution of basic information on plans, strategies, and policies during the pandemic.
Governments increased their digital journey to meet their constituents’ needs by expanding digital infrastructure through automation and artificial intelligence, utilizing cloud-based services, and building a digital architecture for the entire government. Moreover, the government makes the public sector workforce more digital and invests in the interconnectedness of citizens to accelerate digitization during the pandemic.
In the coming years, a number of countries plan to considerably boost the amount they spend on digital infrastructure. The “digital divide” between the most and least connected communities will be addressed by investments in updating technology infrastructure and establishing fiber networks to boost internet access. As part of the Digital Spain 2025 initiative, the Spanish government plans to invest €20 billion in digital infrastructure in the next three years, with an additional €50 billion coming from private sources. The French government plans to invest €7 billion in digital projects, including modernizing public information systems and stepping up initiatives to include older individuals online.
In Thailand, 5G networks have facilitated cooperation between the public and private sectors and are a key part of the government’s Thailand 4.0 digital recovery plan. In a similar manner, the Scottish Government committed £4 million in financing as part of the Scotland 5G Connect Program for the construction of a number of hubs that would roll out 5G services throughout the nation. In addition, the Australian government invested over $21.2 million in commercial 5G trials and testbeds across important industry sectors to speed up the implementation.
Meanwhile, the United States has a reputation for being a leader in digital government services. Based on The KPI Institute’s Government Services Index (GSI) 2022, the United States is the top performer in the Digitalization dimension. The GSI 2022 report compiles and ranks 66 countries around seven regions in the world based on their performance in different dimensions and indicators. It highlights the Digitalization dimension, which refers to the significance of technology and redefining ways in how residents and public services interact.
The United States started its e-government journey two decades ago when the country published The E-Government Act of 2002. Its goal was to foster the utilization of the internet and new technologies across government agencies, as well as the provision of citizen-centric government information and services. The United States Digital Service (USDS), whose goal is to provide a better government experience, was also established.
This article was first published in the 24th printed edition of PERFORMANCE Magazine. You can get a free digital copy from the TKI Marketplace here or purchase a print copy from Amazon for a nominal fee here.
In the construction industry, the main product is the project undertaken for a specific client, the project owner. To award a project; the contractor has to study the project and submit his quotation. In most cases, the client selects the lowest bidder to execute the project.
Due to the nature of the contracting business, contracting companies cannot expect to award every project they have studied, and the winning ratio is most likely 20% to 30% from the overall tenders in which they have participated. That means contractors may lose more bids than awarded, which is quite alarming. Experts in this industry know this very well.
The main idea of writing this article is to introduce a new approach to contracting organization that can enable the contractors to increase the percentages of awarded projects and reduce the associated risks and cost impact, but before that, let us understand the current process and its drawbacks.
Most contracting companies use fixed estimation teams with some support from technical functions or outsourcing some services if needed, as shown in the conventional estimation process flow (Figure 1).
Figure 1. The conventional estimation process | Illustration by the author
This model seems to be ineffective for many reasons, including but not limited to the following:
A fixed estimation team may lack essential experience in a particular type of project.
Estimators’ work becomes routine without creativity. Whether they are awarded a new project or not, they will get paid every month.
Continual loss of projects by the same estimators will demotivate them and eventually lead to losing their passion. Instead, they will try to find excuses or justifications rather than improve the process.
Awarding a project doesn’t mean that it will be profitable. Contractors can award a project because they are the lowest bidder; however, hidden losses will emerge during the project’s progress.
A misalignment between the bidding prices and the project budget prepared by the cost control team can lead to a significant loss even before the project starts.
The main objectives of the new approach are to make the estimation process more dynamic, profitable, and efficient. To achieve these objectives, I have developed a new process flow for the estimation process (Figure 2) to enable the company to increase its chances of awarding projects.
Figure 2: a new estimation process | Illustration by the author
Steps of the new process
The company should reduce the number of fixed estimators to the lowest possible level.
After identifying the new opportunities, the company will know more details about the project type and engineering characteristics of the project. Based on that, the company will hire a qualified project manager with previous experience in similar projects. It is the same thing for senior engineers in civil, electrical, and mechanical disciplines and professional procurement engineers who are familiar with the type of construction material used in that project.
If necessary, this team will study the project in conjunction with the estimation team, other support functions, and the partner company.
If the company awarded the project, this would prove the idea from the first round. If not, the company will give the team a chance to learn from this failure and enhance their experience to perform better in the next bid.
If the project is awarded, the same team who studied the project and calculated its budget will be mobilized to execute the project, and the company will hire a new team instead, and so on.
The company has to decide on a certain number of trials for this team and then make a decision to replace them if the failure is repeated. I would suggest five trials within six months according to a conditional contract.
The advantages of the new estimation process
It is more dynamic than the old routine process.
The team who studied the project and calculated the budget is the same team who will execute the project.
Encouraging the project team to put their best effort into awarding a project within a six-month timeframe.
When the winning ratio is increased, it will save huge costs if we compare the (overhead cost of the new approach vs. sales) with the (overhead cost of the old process vs. sales).
Increasing profitability by increasing the number of awarded projects
Increasing efficiency and productivity through better use of company resources and workforce
The challenges of the new process
How fast the company hires a competent project team every six months could be an issue, and it requires a professional recruitment team to achieve this successfully.
Not everyone can accept the six-month conditional contract, but professional recruiters who are excellent negotiators can clearly explain the benefits to the candidates. It is a win-win agreement. This exercise will spot incompetent people before recruiting them, but the confident project managers and engineers will accept the challenge because they know they can.
Change resistance to shift from the old process to the new process. Some people know they are losing but still believe the old process is the best way to award projects.
Undoubtedly, getting an accurate estimate from experienced engineers is invaluable to the company; this is why the team you choose to study your bids should be able to furnish an accurate cost estimate that is precise enough to increase your opportunities of awarding projects. The new process helps the company to enhance the accountability of the project team with clear ownership of the project execution within budget, scope, and specification with full understanding and involvement from day one. The new process can be tested in a pilot project to ensure its effectiveness and then implemented on a large scale.
About the author
Mr. Ihab Ibrahim Alsakkti is the chief strategy officer of Alkifah Holding Company. He is consistently focused on the organization’s future direction and aligns his team to actualize that vision. He established the company’s Innovation lab, which serves as the hub employing the methods of agile management and innovation strategy to devise novel ideas that can either disrupt or complement the overall company. He supported senior management with strategy formulation and execution workshops and the development of short-term and long-term strategic plans. He also coached and mentored junior staff through ongoing extensive self-development sessions and training programs, specifically in project management for new initiatives, performance management, KPI selection, balancing, and activation.
Robot restaurants in technologically advanced countries like Japan and USA are considered solutions to labor shortages and growing customer demand as on-premise dining starts to pick up.Yelp Economic Average reports that searches for reservations increased by 107% in the first quarter of 2022 compared to the same period in 2021.
Digitalization has become the key to service improvements in restaurants, and one of these advancements is robotics. Different processes can be automated by using robots. While such automation can impact the performance of a restaurant, applying robotics also comes with challenges.
Improvements
Approximately 82% of restaurant jobs could be replaced by robots in the future, according to a report published by Aaron Allen & Associates. Robots are used to help humans in the kitchen perform repetitive tasks, such as slicing or mixing ingredients. Robots can also:
welcome guests
take and deliver orders
manage payments
According to articles from ResearchGate, the Turkish Business Journal, and Elsevier, robotics decreases the efforts of individual waiters, reducesinvestments in human labor, simplifies food orders, supports restaurant services, decreases human-induced service failures, reduces work hours, and improves service quality.
Hospitality & Catering News states that an average human server can serve 200 meals daily, while a robot server can serve 300-400 meals. If waiters serve more tables in the same period, they can serve the dishes faster, contributing to an increase in the restaurant’s overall productivity.
Recent research on digital responses to COVID-19 highlights that if the waiting times per table increase, the time spent at a table increases. This means that the table will be occupied for a long time, negatively affecting customer satisfaction and total revenues for the restaurant since they have a limited number of tables. The waiting time per table can be decreased by implementing electronic menus so that the cooks do not have to read the order notes from waiters. This is a process that slows them down and increases the risk of mixing up orders.
An IEEE article explains how robots and electronic menus cut down on wait times per table. When a customer orders something using an electronic menu, the order and the table number appear on the cook’s screen. When the chef has finished cooking, the order is transferred to the robot, which will have the table number of that specific order so it can deliver it to the customer. Digital tools help visualize orders and provide systematic overviews.
As stated in a 2020 Atlantis Press article, digital tools simplify the process of choosing the desired dishes. These digital platforms also enable keeping statistics of ordered dishes so that the restaurant can determine what foods are most popular and when (during particular times of the day or seasons), as well as which foods to leave off their menu. Additionally, by offering discounts in their ordering application, restaurants will increase customer loyalty.
Challenges
There are two types of challenges that emerge from using robots in restaurants. The first kind results from the complexity and technical limitations of the machine (see Figure 1):
Consumer acceptance is another challenge for digitalizing restaurant services. Studies have revealed that some people feel uncomfortable interacting with a robot. Before bringing autonomous robots into restaurants, owners should assess socioeconomic implications, such as the balance between operational efficiency and customer expectations and robot costs.
Process automation will increase productivity in the restaurant industry, but this will also make it difficult for restaurant workers to find new employment.
Digitalization of the restaurant business is inevitable. Initially, the new system may cause chaos because every restaurant owner will be eager to implement such technologies. This enthusiasm can result in impulsive investments to keep up with the competition, leading to unnecessary risks and, ultimately, no added value for that business. But, if safely adopted, robotics may improve performance, increase productivity, and decrease overall costs. Even though the goal may be to digitalize the whole restaurant, these robots will only partially operate by themselves so soon.
