101
Tamkeen Strategy 2015-2017

Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

  • Upload
    others

  • View
    2

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

X

1.5 X X

X

XX

Tamkeen Strategy2015-2017

Page 2: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

2

CONTENTS

EXECUTIVE SUMMARY ........................................................................................... 3

REVIEW OF TAMKEEN’S 2010-2014 STRATEGY AND PROGRAMMES .............. 7

I. Review of 2010-2014 Strategy ...................................................................................................... 7

II. Critical Insights from the Previous Strategy ............................................................................ 19

III. Analytical Assessment of Tamkeen’s Programmes ................................................................ 23

BACKGROUND TO THE DEVELOPMENT OF TAMKEEN’S NEW STRATEGY ... 31

I. The Strategy Development Approach ....................................................................................... 34

II. New Programme Approach ........................................................................................................ 35

TAMKEEN’S NEW STRATEGY .............................................................................. 40

I. Tamkeen’s Strategic Objectives ................................................................................................ 44

II. The New Segmentation of Customers ...................................................................................... 45

III. Specific Objectives of the New Customer Segmentation ....................................................... 48

IV. Tamkeen’s Intervention Areas ................................................................................................... 59

V. Proposed Programmes per Segment ........................................................................................ 64

VI. Sector Review .............................................................................................................................. 68

OPERATIONAL CONSIDERATIONS ...................................................................... 75

I. Organisational Implementation Model ...................................................................................... 76

CONCLUSION ......................................................................................................... 91

APPENDIX I ............................................................................................................. 95

APPENDIX II .......................................................................................................... 100

Page 3: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

3

Purpose

This document provides a summary of Tamkeen’s updated strategy for 2015-2017. The

intended audience for this document is key stakeholders, including Tamkeen Board

members, Tamkeen management, and external stakeholders – such as government

agencies, NGOs, the private sector, and all of Tamkeen’s customers. The focus of this

document is on providing a summary of the background, analysis and key conclusions of the

updated strategy. It also provides an implementation plan for the organisation to follow.

Executive Summary

The need for Tamkeen to update its strategy for the 2015 to 2017 timeframe arose with the

requirement for comprehensive, actionable, impact driven approach to operating, that will

enable it to play its role in tackling the relevant labour market and private sector challenges,

support the NES (National Economic Strategy) and fulfil its mandate.

In summary, the updated strategy gives Tamkeen an impactful, distinct and critical role in

the national economic development landscape. The strategy explicitly serves the

requirements of the NES and cements Tamkeen’s position as a key enabler of Bahrain’s

economic vision. The successful implementation of the new strategy will lead to a more

effective organisation that will demonstrate significant impact on the Bahraini economy and

society as a whole.

Since Tamkeen’s inception in 2006, the organisation has worked towards achieving

consistent broad objectives. Throughout the years Tamkeen has offered over 200 products

which have impacted approximately 100,000 customers, and has had a substantial impact

on the Bahraini economy. One of Tamkeen’s critical success factors is its adaptability, due

to the ever-changing economic, social, and political circumstances Bahrain faces.

For Tamkeen to continue its effective role serving the private sector, it is therefore

necessary to constantly evaluate the needs of the market and respond to them accordingly.

Despite the sharp and often unexpected changes Tamkeen has seen, its goal has remained

consistent: Enhancing the productivity and sustainable growth of individuals and businesses.

In this regard, the challenges which Tamkeen faces to respond to ever-evolving markets

were identified in joint consultation with the private sector. Understanding their priorities

and concerns has helped Tamkeen to develop a strategic, proactive approach to serve the

private sector needs.

Tamkeen’s current focus is on ensuring effectiveness and quality of services rather than

reaching the largest number of people. Tamkeen has resolved to continuously measure the

impact and effectiveness of the programmes in the upcoming strategy cycle.

Page 4: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

4

The previous strategy (2010-2014) was based around the following strategic priorities:

1. Make Bahrainis the employee of choice for existing semi-skilled and skilled jobs

2. Make Bahrainis the employee of choice for growth: new investors (foreign and

indigenous) and expansion

3. Make Bahrainis the employee of choice as unskilled jobs are substituted with capital

plus higher skilled jobs

4. Improve labour and capital productivity of Bahraini businesses to support growth of

the overall economy

5. Support growth to develop new opportunities for Bahrainis and enlarge the

economy

As is evident from the strategic priorities, the focus of the previous strategy was on two

primary areas: one being the continuous development of human capital, and the other the

support of the private sector. These two focus areas enabled Tamkeen to provide

customised solutions by the type of support it aimed to offer. Though the aforementioned

was effective, Tamkeen has found it necessary to revise this strategy to make it more

customer-centric. Rather than clustering the priorities by type of support, the new approach

is to address the needs of each customer type. Customers. For example, entrepreneurs will

be addressed separately from already established businesses. Further, students will be

addressed differently than employees.

The following section further explains the establishment of these new segments.

Finally, based on the feedback from consultations with stakeholders, Tamkeen has outlined

three focus themes for the next 3 years (2015-2017), with a view to meet the dynamic

needs of Bahrainis and private sector businesses:

1. Quality: Effective and result oriented delivery

2. Customers: Satisfied customers

3. Results: Enhance productivity and sustainable growth of individuals and businesses

Intervention Approach

At the core of the new strategy are six major segments that have defined the new

programmes; these segments are broken down by customer type. Each group of customers,

representing a single segment, have similar needs and concerns. As a result, the

programmes which Tamkeen develops going forward will be in accordance with the specific

objectives of these segments.

The below programmes are similar to those which are already offered by Tamkeen, however

they have been re-grouped and packaged to be high impact solutions for the purpose of

bridging the gaps required based on each segment’s demands.

Page 5: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

5

This new approach will help to address market needs and intervene effectively to address

economic challenges within the Kingdom of Bahrain.

The key imperatives in terms of selecting the targeted segments are as follows:

Recognising focus areas in terms of demographics (individuals and businesses)

Selecting the key segments that Tamkeen needs to focus on during the next strategy

cycle

Understanding the business cycle requirements at each stage

The below is an outline of the new segment-based programmes which Tamkeen will offer.

The basis for the programmes is a study of the market needs of both businesses and

individuals. This study was used to create programmes, which will provide sufficient support

to the private sector for the achievement of sustainable growth.

PROGRAMMES

SEGMENT: BUSINESSES

1. Startup

Startup Funding Support

Startup Consultancy and Mentorship

Encourage Startup Innovation

Startup Marketing and Exposure Support

2. Growth

Provide Funding for Technology and Growth

Support Business Process Re-engineering and Innovation

Support Marketing and Customer Outreach

Workforce Capacity Building and Support

3. Maturity

Product and Service Innovation Support

Internationalisation and Franchising Support

Foreign Investment and Joint Venture Support

SEGMENT: INDIVIDUALS

4. Students

Career Guidance Support

Entrepreneurship Exposure Support

5. Jobseekers & Entrepreneurs

Employment Channelling Support

Up-skilling for Market Alignment

Page 6: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

6

Career Counselling and Work Readiness Support

Entrepreneurship Guidance and Mentorship

6. Employees

On-job Skills Optimisation

Tamkeen will work in coordination with other government agencies to develop and deliver

these programmes. In the long term, Tamkeen is committed to support and actively engage

all the economic sectors, which will eventually have an impact on Bahrain’s economic

development objectives and promote the overall progress of a diversified private sector.

However, in this regard, Tamkeen recognises the different needs and priorities of each of

the sectors to accordingly will offer customised “fit” solutions for each to best serve the

growth and development of Bahrainis. The subsequent sections look into the background

behind the development of the strategy, and the approach which was taken towards its

renewal.

Page 7: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

7

Review of Tamkeen’s 2010-2014 Strategy and Programmes

I. Review of 2010-2014 Strategy

The following sections will illustrate how the organisation has performed relative to the

previous strategy (2010 – 2014) at both a strategic and programme level.

Tamkeen’s previous strategy (2010 – 2014) was developed in 2009 to support the objectives

of Bahrain’s Economic Vision. The foundations of the 2010 – 2014 strategy focused on

major Strategic Priorities that described the strategic objectives at a high level; all of which

were aligned with Bahrain’s Economic Vision. . The below Strategic Priorities were

developed to be the key drivers of the organisation and were intended to guide decisions

within Tamkeen, where priorities one to three aimed at closing the Bahraini employment

gap and priorities four and five targeted improving the private sector productivity and

growth.

Tamkeen’s previous strategy focused more on internal operations and had broad targets.

The following describes some of the key facets of the previous strategy.

The strategy was based on five strategic priorities:

STRATEGIC PRIORITIES 1-3: CLOSING THE BAHRAINI EMPLOYMENT GAP

The first three Strategic Priorities were related to closing the gap between the Bahraini

labour market supply and demand. Economic analysis suggested that the main issue was

not the absence of jobs for Bahrainis; rather that Bahrainis lack the necessary skills to fill

Page 8: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

8

new jobs and existing semi-skilled expat jobs. The ultimate objective of these priorities was

to make Bahrainis the employee of choice for their share of these opportunities.

Each of the Strategic Priorities provides a way to mitigate the employment gap.

1. Make Bahrainis the employee of choice for existing semi-skilled and skilled jobs

Enables Bahrainis to capture existing skilled and semi-skilled jobs currently held by

expatriate workers. These jobs could potentially be captured by vocational short-

term Bahraini trainees as openings arise. There are jobs held by expatriates with a

higher skilled nature, which represents a longer term opportunity for Bahrainis.

2. Make Bahrainis the employee of choice for growth: new investors (foreign or

indigenous) and expansion

This highlights another potential area for employment opportunities for Bahrainis

other than existing companies, and that is new investments both foreign and local.

3. Make Bahrainis the employee of choice as unskilled jobs are substituted with

capital plus higher skilled jobs

This is a third front for tackling the employment gap through the development of an

environment where unskilled labour is no longer needed, and is replaced with capital

and higher skilled professions.

STRATEGIC PRIORITIES 4-5: IMPROVING PRIVATE SECTOR PRODUCTIVITY AND GROWTH

Strategic Priorities four and five focus on private sector productivity improvement and

growth support. These are areas which, with improved performance, can yield substantial

results in the Bahraini economy. There is significant room for improvement of labour and

capital productivity in Bahrain, and the growth of the private sector is critical to diversifying

the economy away from oil and gas related areas. The priorities are as follows:

4. Improve labour and capital productivity of Bahraini businesses to support growth

of the overall economy

This strategic priority aims to increase productivity of businesses through the

introduction of different tools and systems. An example of this is via the use of

technology to enhance productivity.

5. Support growth to develop new opportunities for Bahrainis and enlarge the

economy

The creation of new opportunities within the Bahraini market in terms of jobs,

diversity of potential offerings, and others will inevitably lead to growth within

Bahrain’s economy.

Page 9: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

9

Certain fundamental schemes were developed to address these strategic objectives. The

initiatives and programmes that were developed addressed one or more of the above

Strategic Priorities for each respective area in Tamkeen:

Human Capital Development

o Fund gap training: Finance internal or outsourced training to fill “skills gaps”

apparent in the Bahraini labour force. Gaps include technical/vocational skills

as well as business leadership/management skills

o Design gap training: Designing training programmes and curriculum to fill

skills gaps (as defined above) and identifying appropriate delivery

mechanisms

o Acquire trainees for gap training: Acquiring participants for gap training

programmes. Key success factor will be recruiting or screening and selecting

applicants that are “high impact” (committed to training and to pursuing

relevant career opportunities post-programme)

o Deliver gaps training: Delivering gap training directly or outsourcing it to

qualified and best practices 3rd party providers

o Place trainees in employment: Upon successful programme completion,

enabling trainees to secure value-added jobs in which they can leverage skills

gained in training – potentially by working with employees from the start of

the process

o Bridge wage and productivity gap: Provide and manage subsidies to firms to

support wages for Bahraini employees while providing training to employees

to increase their productivity

Private Sector Development

o Drive innovation for productivity & growth: Increase technology and

innovation in Bahrain aimed to enhance productivity (of Bahrainis and

Bahraini enterprises) and toward growth (of enterprises and the national

economy)

o Encourage competition: Increase the competitiveness of Bahrain’s private

sector; may include easing market entry, improving the external business

environment, implementing legislation, etc.

o Fund enterprise productivity improvement: Fund and monitor productivity

improvement opportunities for Bahraini enterprises. May include

productivity-targeted provision of capital, technology, systems, etc.

o Provide expansion & productivity advice to businesses: Identifying, assessing

and recommending expansion-led opportunities for Bahraini enterprises.

May include business consulting services, linking firms in partnerships and

mergers, providing ICT, etc.

Page 10: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

10

o Drive entrepreneurship: Initiating and supporting entrepreneurship in

Bahrain; potential mechanisms include grants, incubators, business advice,

entrepreneurial skills training, etc.

o Provide growth finance: As a bank does, directly provide debt or equity

finance to enterprises or start-ups. NB: BDB/Tamkeen/Ithmaar relationship is

seen as supporting the provision of finance, not directly providing it

Direct Investment

o Secure FDI: Play the leading role in identifying and attracting foreign

companies to enter Bahrain. Providing human capital support is seen as a

supporting role to this activity

o Attract local investments through supporting local ventures

o Make development-led direct investments: Make direct investments with an

objective of economic development (versus profit maximisation alone)

As mentioned, the need for a new strategy (2015 – 2017) arose due to dynamic market

conditions and the desire for Tamkeen to focus its efforts on more impactful

programmes. The focus of the upcoming strategy will be to propose programmes,

projects and activities that focus on customer, quality and impact. The upcoming

sections will provide an analysis on the current issues and challenges that are being

faced in light of Tamkeen’s current strategic objectives (2010-2014)

A level below the strategic priorities were eleven strategic objectives:

1. STRATEGIC OBJECTIVE 1: DEVELOP AND MAINTAIN OPTIMUM ASSET ALLOCATION

AND FINANCIAL MANAGEMENT

Fund management is an integral part of Tamkeen’s activities that should be carried out

on a continuous basis throughout the business cycle. This entails effective allocation of

funds to well-studied opportunities that deliver the best return, adequate risk, and are

Sharia compliant. The ability to optimise financials by capitalising on high value projects

and investments is crucial, especially over the long term. The organisation has great

scope for growth in this area.

2. STRATEGIC OBJECTIVE 2: BUILD AWARENESS OF TAMKEEN’S PROGRAMMES &

PROJECTS

One of the core areas Tamkeen focuses on is building awareness of its role and

Corporate Social Responsibility, as well as ensuring wide-spread awareness of

programmes and projects. This is done by managing user-friendly interfaces for

individuals, enterprises, and partners. Building awareness of the offerings will ultimately

lead to a more prosperous and thriving economy as individuals and enterprises are given

the opportunity to advance in their respective fields.

Page 11: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

11

The public’s awareness of Tamkeen as a separate entity from other similar or related

organisations (such as the LMRA) is now definitive. Tamkeen is now associated with

either employment or training or business support. The marketing of Tamkeen as a

complete solution to both individuals and businesses has been successful; Tamkeen is in

existence to support businesses gain new opportunities to grow and flourish in terms of

human capital and business needs. Further, there is common understanding that

Tamkeen trains locals for career advancement, trains private sector employees, provides

loans to start up business and are involved in enterprise development. However, the

awareness of specific projects and an understanding of how they function is still

confusing and ambiguous to the public. This is mainly due to the differing requirements

from the applicant for each project or unclear communication.

3. STRATEGIC OBJECTIVE 3: EXCEL IN THE MANAGEMENT OF PROJECTS AND

PROGRAMMES AS A PORTFOLIO TO DELIVER ECONOMIC AND SOCIAL BENEFITS

Having the right systems and tools in place for selecting, prioritising, managing, and

measuring project performance and ensuring the continuous review of projects is of

utmost importance. This review should reflect economic and social benefits based on

pre-defined criteria. The communication of the performance to the entire organisation

is essential to drive awareness.

All engagements need to be selected based on a rigorous evaluation criterion to ensure

that business value is maximised given the available resources. These projects need to

be assessed periodically based on their value add. Proper measures need to be in place

in order to accurately measure their performance once completed.

The proper implementation of this portfolio management framework and its tools in

Tamkeen will deliver business value in three key areas:

Consensus on prioritisation criterion: the criterion may include assessing the level of

risk, impact, duration, budget, etc. This criterion will be used to evaluate, prioritise,

and select all engagements

Decision tool for the organisation:

o Manage a balanced portfolio of engagements by evaluating engagements

against a set criterion.

o Provide management reports and dashboards that show the linkage of the

Portfolio Performance to Corporate Performance. These reports are to be

used management to make decisions.

o Capture prioritised engagements in a single repository: the tool will illustrate

that engagements are managed responsibly.

This framework will be made accessible with a tool for selecting the best fit strategic

projects that demonstrate the highest impact to Tamkeen’s strategic objectives. This

Page 12: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

12

will ensure the selection and monitoring of the most suitable portfolio of projects for

Tamkeen to adopt.

Project Management is an area where changes have become embedded within the

organisation, mainly the necessity for documenting and approving projects prior to

their launch. However, the essence of Project Management is still lacking: how to

run effective projects using all of the Project Management tools available and the

proper flow of data and communication within Tamkeen. It is apparent that this

area’s performance is limited due to the lack of the necessary tools.

4. STRATEGIC OBJECTIVE 4: DEVELOP AN ENABLING ENVIRONMENT FOR A VIBRANT

PRIVATE SECTOR

The development of an enabling environment for enterprises is vital for the

growth of the private sector. The foundation of this relies on supportive policies

that tackle market, system and government impediments. Policies should

support new market entrants, healthy enterprises and high-growth SMEs. All of

which will aid in creating a favourable entrepreneurial business environment,

facilitating the internationalisation of enterprises, improving SME knowledge of

available tools and systems, and enhancing entrepreneurship skills.

Such policies minimises regulatory, administrative, and other burdens, which will

encourage the opening of the Bahrain business environment to international

investors. This strategic objective is considered to be one of the gateways that

will enable more enterprises to enter and survive within the economy, thus

enhancing the activity and growth of the private sector.

Tamkeen’s efforts in building ties with the below entities were limited during the

past strategy cycle:

o Government organisations: The strategic regulatory and administrative

issues facing the private sector have not been sufficiently identified

o Private sector: no projects have been developed to build ties with the

private sector. The introduction of projects that help in overcoming

private sector obstacles will increase the participation of existing

enterprises, and encourage new enterprises to join the market.

o Communities: linkages with professional communities have been

initiated; however efforts in this respect need to be ramped up to better

understand social needs in specific areas.

For this strategic objective, the following programme offerings

were provided to the market:

Documentary Film

Bahrain Training Institute – Facility Support

Supporting Bahrain Chamber of Commerce and Industry

Road show and International Exhibitions

Page 13: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

13

5. STRATEGIC OBJECTIVE 5: DEVELOP HUMAN CAPITAL & MATCH SKILLS TO DEMAND

A capable workforce is an imperative foundation for sustainable economic

growth; countries that invest heavily in human capital usually demonstrate the

most lasting and significant economic growth and impact. With the increase in

awareness on the importance of education, whether academically or

professionally, and the rise in population, reaching out to the public has become

a major economic and social challenge. This increasing pressure on education

and skills training resources has been identified by Tamkeen and is regarded as

one of Tamkeen’s core focus areas. The right set of skills will enable students,

existing employees and jobseekers to take advantage of growth opportunities

thus strengthening the economy.

Through this strategic objective, Tamkeen aims to build and enhance the

competencies required for employment opportunities within identified target

sectors. In addition, the up-skilling of current Bahraini employees is imperative

to increase efficiency and productivity at the workplace. The projects under this

objective also capitalise on opportunities in non-traditional sectors and jobs by

developing Bahrainis as business leaders and entrepreneurs.

The majority of the human capital development portfolio is under this strategic

objective, where it has succeeded in both creating awareness in the market on

the importance and necessity of continuously improving skills to exploit better

opportunities, as well as exhibiting the gaps in the market or target sectors. The

logistics and hospitality/retail sectors, for example, were untapped fields of study

before the introduction of Tamkeen’s schemes.

For this strategic objective, the following programme offerings were provided to

the market:

o Work Ethics Campaigns

o Employability and Short-Term Internships

o Bahrain Centre of Excellence Programmes

o Career Guidance Schemes

o Support Existing Youth Schemes

o Support Occupational Systems and Standards

o Career Progression Schemes

o Women Technology Enablement

o Labour Law for Trade Unions

o Tamkeen Professional Certifications Support Scheme

o Skills Gap Schemes

o Finance and Accountancy Professionals

o Nursing and Healthcare Programme

o Training and Education Providers Support Workshops

Page 14: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

14

o Basic Skills Training

o Conference Attendance Support

o Bahrain Polytechnic Scholarship Scheme

o Tradeshow Management Skills Training

o Legal Apprentices

o Tamkeen Diploma for Quran Teachers in conjunction with the Ministry of

Justice and Islamic Affairs

o Pilot Financing Scheme by Bahrain Development Bank

o Human Resources and Leadership Workshops

o Leadership Certifications

o Human Resources Certifications

o Customised Employment Schemes

o Apprenticeship Schemes

o Employment Schemes

6. STRATEGIC OBJECTIVE 6: DELIVER ACCESSIBLE BUSINESS SUPPORT SERVICES

Providing enterprises with the adequate tools to easily access business support

services will ultimately drive enhanced competitiveness and productivity; where

these services are tailored to each enterprise based on its development phase.

Aiding enterprises in identifying business support needs, developing appropriate

offerings and ensuring their accessibility is a priority to Tamkeen. As well, SME

internationalisation is key to their growth and competitiveness as SMEs are

currently under-represented in international markets and innovation

collaborations. This strategic objective reinforces the necessity for SMEs to

realise the need for adopting a culture of innovation; strategic Objective 8

‘Promote Innovation’ is dedicated to ensuring that Tamkeen has a supporting

role in this awareness.

For this strategic objective, the following programme offerings were provided to

the market:

o Enterprise Growth Management

Marketing Assistance Scheme (Tasweeq)

Business Development Scheme (Istishara)

Quality Management Scheme (Jawda)

Growth Assistance Programme (Tarweej)

Technical Assistance Programme (Techania)

o Large Enterprises Support

o Business Diversification- Pilot Phase

o Tarweej – Mantoojati for Productive Families

o Al Basta

o Farmer’s Market @ Hawrat A’li

Page 15: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

15

o MEGA Enterprises Support

o Sector Specific Support Schemes

Bahraini Fisherman Support Scheme

Bahraini Farmers Support Scheme

Trainer and Education Providers Support

o General Support Scheme

Provide funding & advice on SME management & financial

accounting (Mohasaba) - Accounting and Auditing

Provide funding & advice on SME management & financial

accounting (Mohasaba) - Auditing

o Business Sustainability Support

o Intellectual Property Scheme

o Administer Awards Programme

7. STRATEGIC OBJECTIVE 7: ENSURE ADEQUATE AND APPROPRIATE FINANCIAL

SUPPORT

Easy access to finance is one of the most critical driving forces for businesses to

utilise various tools to expand their business and to employ the latest

technologies. This will enable companies to gain competitiveness in leading

areas, leading to continuous growth and sustenance of their businesses. The

main problem for many businesses is a lack of ‘availability' and 'easy access' to

finance. Despite various reforms and guidelines by authorities, such as the

Central Bank, the availability of timely and sufficient credit remains a road-block

in the development process.

Commercial banks and institutional and private investors have proven at times to

be reluctant to serve SMEs for already established reasons. Thus, Tamkeen

embarked on initiatives that aim to ease this problem by introducing financial

support schemes in collaboration with financial institutions. These enterprise

funding schemes are highly demanded in the private sector as they provide

Bahraini enterprises easier access to credit and financing facilities.

For this strategic objective, the following programme offerings were provided to

the market:

o Finance Scheme Support

o ICT Finance Scheme

o Micro Finance Scheme

Page 16: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

16

8. STRATEGIC OBJECTIVE 8: PROMOTE INNOVATION

New businesses and high-growth SMEs account for a substantial part of job

creation in any given economy. Enterprises in developing countries, such as the

Bahrain, require greater access to innovation, as well as awareness about new

and emerging technologies. These advanced innovation concepts will support

enterprises in increasing their productivity and sustainability.

Entrepreneurs are required to innovate in order to be successful, by thinking of

new ways to produce products or improved solutions. The need for innovation is

greater in smaller businesses as it is one of the key success factors for enterprises

during challenging times of economic crisis. Innovation allows for the creation of

competitive and resilient enterprises that are able to compete with their unique

products and services.

Competition in day to day business activities is another factor that highlights the

importance of creating a culture of innovation in entrepreneurship. Small

enterprises should promote innovation as a central part of their organisational

development since it creates business success.

There were two conferences that were held to raise awareness on this topic:

Innovation Bahrain in 2010 and the 10th International Entrepreneurship Forum

in 2011.

During the past years, Tamkeen’s primary objective was to build a knowledge

innovation foundation, however some of these initiatives were not followed

through due to other priorities.

As entrepreneurship innovation is, without doubt, a substantial element in

fuelling the economy, this topic is of utmost importance to the Government, and

is considered to be a National Strategic Priority going forward. The Kingdom of

Bahrain is competing in an aggressive market and a crucial differentiating factor

that Bahrain can adopt to compete in this market is to successfully embed

elements of innovation, whether in physical products or service-based

businesses.

9. STRATEGIC OBJECTIVE 9: ENCOURAGE AND SUPPORT INVESTMENT

By developing an enabling environment for the private sector (strategic objective

4), this will encourage investments in the Kingdom of Bahrain thus helping the

GDP vastly. As well, Foreign Direct Investment (FDI) aids in international

expansion, which in turn helps in increased collaboration between countries.

Government support in easing and encouraging investments has long term

benefits in that it allows for the introduction of modern technology, training of

higher calibre, adoption of world-wide proved management concepts and

knowledge, etc. The attractiveness of supporting FDI would be maximised if

Page 17: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

17

sufficient sourcing is done from local SMEs as this will strengthen and motivate

such enterprises.

This strategic objective includes local investment support as well, through

support of local ventures and joint ventures between local and foreign

companies.

Tamkeen’s support of investment opportunities is currently done on an ad hoc

basis; there is no strategy in place to indicate the priority sectors or areas of

focus that Tamkeen should pursue.

Having said the aforementioned, Tamkeen has recently picked up pace on this

initiative by capturing investment opportunities that support Bahrain’s economic

development objectives. Tamkeen are effectively working with the Economic

Development Board (EDB) in screening, securing and improving the benefits

captured from investment opportunities.

For this strategic objective, the following programme offerings were provided to

the market:

o Investment Support in Services

o Investment Support in industry

o Investment in Training Centres

10. STRATEGIC OBJECTIVE 10: ENCOURAGE INDIGENOUS ENTREPRENEURSHIP &

GROWTH

Creating a suitable and sustainable entrepreneurship environment in the

Kingdom of Bahrain feeds directly into encouraging local entrepreneurship

activities and growth; both strategic objectives four and ten cannot work in

isolation. Tamkeen’s support towards encouraging entrepreneurship and growth

has been focused on two main audiences: women and the youth.

Over the last decade, women are starting to play a central role as income earners

in society. It is unfortunate that they face significant hurdles to fully and

effectively participate in economies as employees, employers, and

entrepreneurs. This is often due to legal, social, regulatory, and cultural barriers.

Tamkeen has initiated three different projects under the Women

Entrepreneurship Support Scheme in collaboration with the Supreme Council; all

of which targeted the encouragement of women to take up entrepreneurial

roles.

Having only three dedicated schemes that support women during the past

strategy cycle was not sufficient to target all segments of women. Therefore, to

further enhance Tamkeen’s involvement in providing women with adequate

support, it should extend the support provided to this segment.

For this strategic objective, the following programme offerings were provided to

the market:

Page 18: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

18

o Women Entrepreneur Support Scheme (Photography, Fashion Design and

Transportation)

o Provide Entrepreneurship workshops, including preseed and feasibility study

support

o Form Entrepreneur networking events

o Start up Support Scheme

o Business Plan Competition for Youth (Mashroo3i)

o INJAZ - The Company Programme

11. STRATEGIC OBJECTIVE 11: PROVIDE STRATEGIC OVERSIGHT & COORDINATION OF

PRIVATE SECTOR DEVELOPMENT

The private sector is the driving force behind sustainable economic growth.

Developing countries with diverse and healthy private sectors typically have

greater levels of growth and decline in unemployment figures. Enhancing the

overall competitiveness and productivity of enterprises in developing countries is

a critical element of fuelling economic growth and generating new or enhanced

employment opportunities.

It is crucial for Tamkeen to provide oversight and coordination for the

development of the private sector. Tamkeen embarked on two main initiatives:

the development of a productivity movement strategy and the development of

cluster strategies. However, these efforts were limited in the previous strategy

cycle due to the prioritisation of other initiatives.

The concept of ‘productivity’ is a national strategic priority for the government

going forward. Tamkeen’s goal for this strategic objective was to build

awareness around the notion of productivity and its increasing importance and

relevance to today’s world. The target audience of these awareness sessions

were to engage three main players: government, business community, and

unions. However, this initiative was put on hold.

In addition, a proposal was developed for the implementation phase of the

Productivity Movement in Bahrain, taking into account the existing work

practices, the social and cultural factors as well as the organisational and

administrative structures to support and sustain the movement. Similar to the

aforementioned initiative this was also put on hold.

Similar to Strategic Objective 8 (Promote Innovation), going forward Tamkeen

will need to adopt projects for the benefit of the three parties mentioned above.

These projects need to help in developing productivity tools, which will in turn

reflect on their performance as entities.

Page 19: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

19

II. Critical Insights from the Previous Strategy

As a result of the approach highlighted above, some important insights into the Tamkeen’s

challenges and areas for improvement were identified. Analysis highlighted many issues

impeding the growth and improvement of Bahrain’s private sector. It emphasised the fact

that Tamkeen’s programmes must target specific segments if the private sector situation is

to be improved. Moreover, it highlighted the fact that Bahrain has a major opportunity to

improve the overall and sector specific performance of its industries

Some of the critical insights which were identified during these consultations made it

essential for Tamkeen to revise its strategy to better meet the needs of all stakeholders.

DELIVERY STANDARDS:

The programmes which are created need to be delivered in a way that puts the

customer first. There should be more emphasis on customer service and offering

customers a simple and quick solution.

The absence of a relationship management culture with customers, especially

businesses caused many customers to highlight the need for an Account Officer to

deal with directly throughout the lifecycle of their business.

There was a lack of customer involvement in sector specific advisory, which was

reflected in the design of the programmes offered by Tamkeen as not all projects

reflect the needs of the sector.

There is a need to revamp Tamkeen’s website to better serve our customers and

potential customers. The website should be dynamic, interactive and user-friendly.

The service delivery channels should be enhanced by developing an e-Channel,

relationship management, and CRM or e-Channel – set up of e-Channel to capture

feedback assessments on existing or potential projects/services

Tamkeen should focus even more efforts on training Tamkeen staff to be more

customer-oriented.

Tamkeen should develop a system to capture all of Tamkeen’s customer data, this

will not only provide a valuable tool for product analysis, but will also significantly

reduce processing time of subsequent applications.

TARGETED AND EFFECTIVE PROGRAMMES:

It was noticed that the programmes offered by Tamkeen were large in number and

scope; however they needed to more accurately address the needs of the segment

and sector. While helping as many customers as possible is also high on Tamkeen’s

priorities, it is essential that it be done while maintaining effective programmes. This

Page 20: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

20

will be addressed through the new customer segment-specific programme

development.

It was noted that many of Tamkeen’s programmes in recent years were aimed at

achieving economic stability and supporting businesses through the economic

downturn.

INFORMATION SHARING – RESEARCH AND MARKET STUDIES:

There was a need to conduct routine consultations between Tamkeen and the labour

market (private sector, governmental entities and educational institutions) due to

evidence of a disconnect between these stakeholders. The periodic consultations

will establish a needed connection between stakeholders, and serve as a tool for

Tamkeen to keep up with the requirements of the market and educational

institutions.

In addition, Tamkeen needs to consistently update various studies such as the Skills

Gaps and Market Gaps Studies, which analyse the needs of the market across various

sectors. It is vital that Tamkeen study market changes periodically to cater to the

sectors’ needs efficiently by designing suitable training and business support

programmes. The studies conducted by Tamkeen should further be shared with the

public on Tamkeen’s website and through other mediums.

Also imperative for Tamkeen is to facilitate the link between organisations and

universities in order to act as a meeting point for job seekers and employers: there

seems to be a disconnect between companies and educational institutions, thus

developing efforts to link and promote cooperation between them will increase the

chances of the market employing graduates over time.

CONTINUOUS MONITORING AND ENFORCEMENT:

There is a need for more stringent monitoring of customers and service providers to

reduce the prevalence of fraud, abuse and immoral conduct. The prevalence of such

activities has cost Tamkeen greatly. One solution may be a centralised database with

prices of services and offerings from suppliers. There is a need for a rigid

penalisation policy for the abusers of the system.

Impact assessments for Tamkeen’s programmes should be conducted regularly to

monitor their performance and measure how well they meet KPIs, and the reflection

of the recommendations should be taken as an input into subsequent project

designs.

Tamkeen should also ensure an extensive KPI framework is created to measure the

effectiveness of their programmes related to various types of programmes and

customers.

Page 21: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

21

AWARENESS ACTIVITIES:

Tamkeen needs to intensify community outreach efforts; this is crucial to ensure that

the public is aware of Tamkeen’s programmes and their benefits. Community

outreach involves direct interactions with potential Tamkeen customers in order to

understand their needs and inform them of programmes.

In addition, Tamkeen should accelerate the ‘awareness campaigns’ initiative and

adopt a comprehensive marketing strategy, which will lead to higher number of

customers: there is a lack of awareness of Tamkeen’s programmes, as well as the

guidelines and procedures of the programmes.

Tamkeen should develop campaigns that raise the awareness of ‘less attractive’

sectors to reduce resistance for some jobs: certain sectors may be considered

‘unattractive’ for many reasons; this may be due to cultural resistance, salary scales,

or working conditions. Tamkeen needs to focus more efforts on highlighting the

benefits of joining these less attractive sectors.

ORGANISATIONAL TRANSPARENCY:

Tamkeen’s performance measures and assessments need to be shared with the

public; also Tamkeen should accelerate the implementation of the Performance

Management System, while continuing to develop impact assessments and publish

them periodically

There are many questions from the public around the impact of Tamkeen on the

economy. Though this is difficult to measure accurately, Tamkeen will continue to

develop impact assessments for its various programmes, as well as potentially

develop a broader assessment of the economic impact Tamkeen has had.

ENTERPRISES SUPPORT:

There needs to be greater support for start-ups as new entrepreneurs require

support. This could be provided through various intervention methods to help them

initiate smooth running of their businesses.

A revised support limit of medium and large businesses is also needed; the

requirements of these segments deem the need for increased caps to fully benefit

from Tamkeen’s offerings.

As well, Tamkeen should continue to support distressed companies. Many business

owners are still suffering from the economic downturn and need Tamkeen’s help in

recovering.

SMEs across almost all sectors highlight the top three challenges as: lack of skilled

employees, reduction in business profitability, and lack of training.

Page 22: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

22

STREAMLINING OF OPERATIONS:

Lack of an online system to track applications is a top priority for Tamkeen to achieve

smooth operations. Tamkeen lacks a real-time easy access interface for customers to

apply and track their applications via an online system or mobile phone application.

Developing such an application and the automation of these lengthy processes will

serve as a basis for more efficient and effective interactions with the customer. This

will also allow for a more complete and accurate database of all customers and their

information. In addition, this online tool will increase customer satisfaction

immensely as the applicant will be able to track their applications via an online user-

friendly system.

STRATEGIC ALIGNMENT:

Tamkeen should ensure the alignment between its programmes and the overall

strategic objectives. This has been addressed in the strategy and the method of

ensuring this is outlined in the organisation implementation model. Operations

should be driven by a strategic focus, while maintaining a balance between

customers, people, and ensuring the adequate financing and facilities are in place.

INTERNAL COMMUNICATION:

At an organisational level there was also a need for an improvement in departmental

communication and synergy. Departments within the organisation need processes

and systems to help take advantage of synergies that often exist between

departments in functions such as operations, monitoring and planning.

For a better understanding of Tamkeen’s strategy and to ensure the new strategy addresses

all previous issues and concerns, a thorough analysis of the previous strategy was conducted

at a programme level. The next section summarises the study of the previous strategy in

terms of programme success with respect to planning and execution.

Page 23: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

23

III. Analytical Assessment of Tamkeen’s Programmes

This section of this strategy provides an overview of the results of an assessment model

developed by Tamkeen which was used to measure the performance of its programmes. A

mechanism was developed for evaluating and filtering Tamkeen’s current programmes

based on their performance in terms of Planning and Execution:

Planning refers to how well defined and clearly set out the programme’s plans were

Execution measures the implementation of the programmes

Programmes performance was assessed by comparing the execution of programmes relative

to the original plans. (Refer to Appendix I for details of the evaluation measures).

In order to measure programmes’ performance in terms of Planning and Execution, the

programmes were assessed from different angles, these angles were:

1. Objectives and KPIs

2. Scope- Project Reach

3. Functions and Operations

4. Financials

5. Customers and Market Demand

It was concluded that one of the main areas for improvement was in the area of outlining

clearly defined objectives and KPIs, as many programmes had broad high level indicators

which could not be accurately measured. Another area was the limited project reach, which

reflected insufficient marketing or the lack of a comprehensive marketing strategy. Some

other issues programmes had were the lack of streamlined operations, often caused by

process limitations. Risk management and financial planning had scope for improvement,

through a top-down budgeting approach and more cost-benefit analyses of programmes.

Programmes should further be better targeted to reach customers and meet market

demand through better target planning.

KEY ISSUES RELATED TO TAMKEEN’S PROGRAMMES

A need for clearly defined and measurable objectives & KPIs to better assess

performance

The study has found investment opportunities and projects selection were highly dependent

on the availability of funds, and often underwent insufficient due diligence. The organisation

needs a robust portfolio management system to aid in the selection of the most attractive

investments and measure the performance of these investments.

The current approach to selecting projects lacks rigorous analysis and systemic filtration,

which often does not allow for effective allocation of resources (time, budget, and human

Page 24: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

24

resources) to the highest value add engagements. More importantly, some of the

implemented projects are not in alignment with Tamkeen’s strategy. Tamkeen needs to

ensure that all implemented engagements are directly linked to the strategy.

For example, with regards to many of Tamkeen’s training schemes, the key overarching

issue with the portfolio of projects under this strategic objective remains that Tamkeen’s

impact in this area appears to be under-performing; however a large part of this is due to

the fact that outcomes of many projects are intangible. The assessment of the impact of

these schemes is largely based on numbers of customers, rather than strategic measures.

The lack of proper and well defined key performance indicators to define the parameters of

the projects have made the projects under this strategic objective seem to be

underperforming. This is primarily due to unclear objectives and a large diversified portfolio

being handled under this strategic objective, which appears to lack focus and direction.

In addition, the expenditure on some training schemes has been costly to Tamkeen’s

budget; this further necessitates the measurement of their impact. The lack of clarity on the

objectives of this scheme, and thus strategic key performance indicators has led to

inconclusive impact of the scheme on the customers.

On the other hand, Tamkeen has excelled in meeting its operational key performance

indicators, in terms of serving the mass and through maximum outreach. This is evident in

many of Tamkeen schemes, e.g. Techania, Jawda, Tarweej, Tasweeq, Istishara, Finance

Scheme, etc.

However, going forward Tamkeen should prioritise serving strategic key performance

indicators and re-design its approach in terms of selection an offerings in order to serve the

specific needs of businesses in addition to generate utmost impact in the market.

KPIs in Tamkeen’s Context

Tamkeen has a mandate which is wide in scope and many potential activities could fall

under it. In addition, this wide spectrum of scope has elements in common with the scope

of other organisations in the economy when it pertains to the high level objectives. In other

words, the ultimate result for achieving the objective cannot be solely attributed to

Tamkeen. However, the contribution of each organisation to achieving the objectives can

be tracked down should there be the necessary data and information.

Page 25: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

25

The above diagram explains the framework that Tamkeen could engage in measuring the

performance of programmes and ultimately its strategic objectives. The following is a brief

explanation of each of the above categories of performance levels.

Operational performance is an efficiency indicator which is an essential tool to keep projects

on track. Usually operational related performance is benchmarked against set of predefined

standards which companies have to identify based on their pervious performance level i.e.

measuring Tamkeen’s service delivery in terms of efficiency and effectiveness of services

delivered. Tamkeen so far has identified and maintained a good level of data on the

operations level, which would allow for a healthy construction of KPIs in that area.

Result/Strategic Performance Result performance is Tamkeen’s objective oriented

performance which is based on the programme strategic effectiveness. Result performance

category is based on two types of inputs, KPIs measures and market surveys.

KPI measures is categorised into two types as shown in the below figure, base KPIs and

unique KPIs. Base KPIs are indicators that are common across a portfolio of projects and

thus can be aggregated into one performance indicator for a programme. Unique KPIs on

the other hand are indicators that relate to special attributes of the project and could not

exist in any other projects. Ideally common KPIs are more frequent in terms of usage

compared to the unique KPIs.

Market Surveys are also used as a tool for gauging the performance of certain projects.

These engagements are limited to direct customers of Tamkeen who have utilised certain

External \ Macro Performance

Market Survey (Wide Scope)

Market Indicators

Result \ Strategic Performance

Key Performance

Indicators

Market Survey

(Limited Scope)

Operation Performance

Key Performance Indicators

Page 26: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

26

type of projects. The combination of both tools would ideally reflect the performance of the

projects and the objectives that it relates to.

Having said that, the challenge still arises when syncing the operational KPIs into the

strategic one. Naturally, strategic performance is based on the collective output of all

projects’ performance. This is an issue that the future strategy has to address in order to

overcome and

External/Macro performance: Many of Tamkeen’s mandates share the same objectives with

other responsible bodies in the economy as well. In other words, achieving or complying

with these mandates is a joint effort of a number of organisations and thus the ultimate

results cannot be attributed to a single organisation. Reflecting Tamkeen’s performance in a

macro environment would be challenging because of the various factors that contribute or

disturb the overall outcomes. However, the contribution of each organisation to achieving

the mandates can be tracked down should there be the necessary data and information.

The KPI exercise will focus primarily on developing KPIs and setting up measures that will

assist Tamkeen to objectively gauge its impact on different layers in the private sector. It is

worth mentioning that these KPIs can be revisited and measures can be adjusted based on

the changing environment factors or internal elements

Limited project reach and scope leads to less effective programmes

Tamkeen lacks a clearly defined Programmes Awareness Strategy. This strategy should

define phased approaches to be taken in order to ultimately ensure that communication to

the public is both effective and adequate. The absence of a comprehensive strategy led to

apparent barriers in effectively reaching out to potential customers, these barriers included:

language used in communications to the public, the approach to which schemes are

presented, and the tactics used to publicise Tamkeen’s programmes.

The current direct advertisement channels utilised by Tamkeen are local newspapers, radio,

and the website. Both the use of local newspapers and the radio to educate the public on

Tamkeen’s services have been effective due to the popularity of these channels, however

with Tamkeen’s previous combination of communication from within and communication

through its previous outsourced model these campaigns haven’t been part of a larger

strategy or a clear communication plan. This affects the ability of Tamkeen to be both

consistent and effective in responding to the public. Tamkeen’s website, though helpful in

terms of information, needs to be more interactive and dynamic to serve the needs of

Tamkeen’s customers.

With the available resources, Tamkeen has taken striving steps to engage with the different

Governorates and segments; however these efforts need to be accelerated. Tamkeen has

Page 27: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

27

recently been more active in engaging enterprises and the community with the current

resources; however the efforts in this vital area are far behind. Engaging with the public and

targeting governorates and different segments enables a better understanding of the

public’s expectations from Tamkeen, and will help explore how to improve and optimise its

services and offerings. This activity is imperative as understanding such issues will help

Tamkeen better position its communication and outreach strategy more effectively, and

help achieve its goals by offering services in line with market needs.

The current offerings at Tamkeen are portrayed to the public as ‘human capital’

programmes and ‘business support’ programmes – as two distinct areas. The absence of

such packaged products in a way that a potential customer can easily understand Tamkeen’s

offerings as a complete solution inhibits maximum value adds.

In terms of creativity of campaigns, the mass public campaigns should be more creative, and

tend to use traditional above the line media channels. Tamkeen needs unconventional

campaigns and tools that allows for more original and targeted approaches.

The aforementioned raises the need for a fully-fledged market and communication strategy

in order to enable establishing right communication messages and channels.

Need for more relevant functions & streamlined operations

The evaluation of this area included looking at both internal and service providers’

procedures, operations and monitoring processes.

Internally, a robust mechanism for measuring the performance of investments is required.

With the absence of such tools, sound tracking of the type and number of changes that

projects go through during their lifecycle, the extent of impact and return of these projects

and investments will become a challenge. Variations of projects from the baseline (cash

flow, schedule, scope, etc.) is an essential measure that needs to be taken into account.

In addition, monitoring processes, tools and undertaken activities were not sufficient for

some of Tamkeen’s schemes.

Also, public consultations have shown that Tamkeen’s applicants and customers are

concerned over the lengthy approval processes, which consequently hinders achieving

optimal results from the support.

Current processes are limiting Tamkeen’s involvement in evaluating the cases to be financed

for some of the schemes, as cases are assessed by an agency. The current model does not

allow for a proper risk analysis, nor the identification of the applicants ‘pain points’, which

could be resolved via enhanced package offering, by leveraging other more suitable

schemes.

Page 28: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

28

With regards to its relationship with partners (service providers) of different schemes, the

conducted evaluation of Tamkeen’s programmes has shown that there is a need for clear,

strict and enforced rules and penalties to effectively manage the schemes and insure

optimal performance, use of funds and quality of service provided to customers.

All the above reflects the need for clearer and improved processes both internally

and externally with its customers and service providers. A need for risk

management and proper financial planning:

With regards to the budgeting process, a bottom-up approach, starting from the business

units is obtained instead of a top-down approach starting with a budget being allocated at a

higher level. The following is also witnessed in terms of annual budget preparation and

allocation to different projects, data is manually maintained and difficult to analyse, minimal

historical data, trend analysis and forecasting; and lack of tracking budget versus actuals in

continuous basis.

The aforementioned has resulted in deviation from the allocated budget in some of the

programmes both in terms of over or under expenditure. This emphasises the need for

improving financial control in the organisation.

On the other hand, the evaluation exercise has looked into the cost-benefit element of

Tamkeen programmes. Although many of the programmes had high benefits realised in

comparison to the spent funds, it was yet very challenging to determine this ratio for many

of programmes, given the intangible nature of expected outcome, in addition to mass

targeting approach.

Going forward, Tamkeen should have a holistic approach in planning its support

programmes with the aim to achieve its strategic objectives and by enforcing strong

financial control in order to achieve optimal utilisation of available funds.

Better targeting of customers and addressing market demand

During the evaluation exercise, it was evident in many Tamkeen’s programmes that targets

are not achieved in terms of number of customers. By analysing the issue it was found that

this is due to improper planning of targets rather than an indication of lack of market

demand.

Insuring sound planning phase is critical for the success of the programme, as it allows for

better resource planning resulting in higher quality offerings for the markets.

In addition, several programmes have the target of serving the public or extend their

outreach to high number of customers as the main objective of the programme. For the

coming strategy cycle Tamkeen should move towards providing the market with custom-

tailored support, for higher economic impact and customers’ needs fulfilment.

Page 29: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

29

Figure I: Illustrates an average of all Tamkeen’s programmes results in terms of ‘Planning’

and ‘Execution’. Each programme was assessed in 5 aspects which are listed on the X axis.

Each of these aspects was then evaluated based on how well the planning was done, and

then how well it was executed. The programmes’ scores were then averaged and this is

what is depicted in this diagram.

Figure II: This figure maps the performance of Tamkeen’s programmes in terms of ’Planning’

and ‘Execution’ factors. The scores of each programme is a result of listed measures in this

section (Objectives & KPIs, Project Reach, Functions & Operations, Financials and Customers

& Market Demand). Many programmes performed well in these areas, and key problems

were identified with regards to programmes which underperformed.

Tamkeen’s Programmes

Page 30: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

30

Though the previous strategy faced a number of challenges in terms of planning and

execution, the achievements of the previous strategy cycle should not be overlooked.

The subsequent sections summarise the main achievements of the same.

IV. Highlight of Tamkeen’s Achievements in the 2010-2014

Constant consultation with the private sector to adapt to their evolving market

needs and understanding their priorities and concerns.

Bahrain Qualification Framework project transformed into a unit with the

development of the National Authority for Qualifications and Quality Assurance

Education and Training (2009/2010).

Launched a9eel, a wide-ranging work ethics campaign for the general public and

schools (2010/2011)

Launched a unique funding scheme for Bahrainis to obtain professional certifications

(2011/2012)

More than 130,000 direct contacts with individuals and enterprises through various

outreach channels in 2013

Since the launch of the Enterprise Growth Management Programme in 2007, 8,530

enterprises were served across 15 sectors

14,000 customers have been served through Tamkeen’s career progression schemes

since 2007

Tamkeen has engaged more than 30,000 youth since 2007

Over 5,400 start-ups have been served across all Private Sector Support schemes

since Tamkeen’s inception

Page 31: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

31

Background to the Development of Tamkeen’s New Strategy

This section highlights some of the background information which led to the development of

the new strategy. Its purpose is to aid readers in the understanding of this document.

LABOUR MARKET REFORM

The government of Bahrain has been implementing reforms in education, business licensing,

the labour market, health and Bahrain’s broader economic systems, which together

comprise the backbone of success and prosperity for any nation. Through these and other

steps Bahrain will strive to realise the vision that has been outlined in Bahrain’s Economic

Vision and create long-term prosperity for the Kingdom. The labour market reform is one of

these reforms which upon development led to the formation of Tamkeen and the Labour

Market Regulatory Authority (LMRA). Tamkeen now acts as Bahrain’s independent

authority, which formulates plans to invest in Bahraini employability.

The following diagram illustrates the nature of the labour market reform, how fees are

collected, and where Tamkeen falls relative to other entities.

Tamkeen plays an active role in the Bahrain’s economy through developing human capital

and supporting the private sector. In order to demonstrate impact in the market and fulfil

the requirements and needs of our customers, constant collaboration is required with quasi-

government and government entities. This collaboration mainly revolves around the

following areas: the regulatory framework in Bahrain, information exchanging, and engaging

in projects.

The below schematic illustrates how Tamkeen collaborates with the entities.

Page 32: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

32

TAMKEEN’S MANDATE

Tamkeen’s mandate is to help develop, enhance, up-skill and re-skill Bahrainis to allow their

effective competition in the labour market and take advantage of employment

opportunities. Additionally, Tamkeen is also mandated to drive increased productivity and

improved efficiency in Businesses for sustainable competitiveness and growth, as well as to

help generate value-added job opportunities in the Kingdom.

NATIONAL AUDIT COURT RECOMMENDATIONS

Tamkeen’s new strategy takes into account the most recent National Audit Court report

which recommends certain actions be taken in order to enable the organisation to function

optimally and achieve its objectives. Some of these matters which are addressed in the

strategy include the need for more regular and systematic due diligence through impact

assessments and feasibility studies, as well as matters such as streamlining operations, and

improving transparency, project management and budgeting.

TAMKEEN’S CURRENT STRATEGY 2010-2014

Tamkeen’s current strategy, 2010-2014 along with its initial strategy ratified by the board in

July 2007, was formulated for the period from Tamkeen’s inception to the end of 2014. Both

strategies were validated with the public through consultative forums. In addition, the

strategy was reviewed and validated by international experts.

Page 33: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

33

Tamkeen’s updated strategy of 2015-2017 will enable the organisation to fulfil its objectives

while reflecting changes to the local and global business and public sector environment.

Tamkeen therefore required a comprehensive, actionable, impact driven strategy that will

enable it to tackle the relevant current and evolving labour market and private sector

challenges. This updated strategy is described in the subsequent sections of this document.

The following section will outline the approach taken towards the development of

Tamkeen’s new strategy.

Page 34: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

34

I. The Strategy Development Approach

The approach taken for the new strategy had a bilateral focus: one being on external

analysis, and the other on internal consultations. This helped guide the development of a

high impact updated strategy for Tamkeen.

The approach involved two parallel work-streams.

For the first work-stream an “outside-in” analysis was conducted to get an external

perspective on the direction Tamkeen has taken, and how it should amend this going

forward. The focus was on reviewing the current strategy and initiatives performance

from an external stakeholder perspective (being customers and government entities) as

well as considering the feedback from the conducted impact assessments and other due

diligence studies that highlighted the impact Tamkeen has had on the external

environment. Moreover, a thorough analysis of Bahrain’s economic fundamentals,

including the Kingdom’s economic baseline and key industries, drivers and trends and

potential opportunities was conducted to ensure the strategy’s economic relevance.

For the second work-stream, an “inside-out” consultation programme with key internal

stakeholders was conducted to gain insight into the organisation’s operational

performance with respect to its current initiatives and Tamkeen’s internal strengths,

challenges and needs. It also considered these stakeholders’ understanding of

Tamkeen’s vision and mission and how the internal environment could be changed to

deliver higher quality services and stronger impact, with analysis of different

perspectives on the role it should play in the future.

Page 35: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

35

II. New Programme Approach

Post reviewing Tamkeen’s previous objectives and strategy, and in accordance with the new

themes (quality, customers, results), there was a need for a different approach towards the

creation and selection of programmes, one which benchmarked Tamkeen relative to other

similar institutions across the world. The following section outlines a screening process

which Tamkeen underwent in the selection of new programmes in a way that will better

serve the needs of the public.

Through this exhaustive process, Tamkeen found that it is already offering most of the

programmes which are available worldwide, occasionally with different packaging and

names. However, this process also highlighted the need for Tamkeen to focus its upcoming

programmes on segments.

The process of identifying and filtering programmes is further explained in detail below.

Filtration of Initiatives

Based on the information assimilated during the Tamkeen Needs Assessment and Public

Opinion survey, factors influencing the direction and expectations set by the public towards

Tamkeen’s programmes and recommended engagements were identified. This determined

the gap between the present state and the desired state of the ecosystem of support

extended in line with the predefined strategic and segment objectives.

Given that the approach to this strategy is segments-driven, the same played a crucial role

in deliberating an intervention framework that would be best suited to address the

challenges faced by the segments in conjunction with recommended solutions

(programmes) that serve the needs and objectives identified for each segment.

Solutions were therefore developed as part of a secondary research conducted to

benchmark Tamkeen’s initiatives against those that are being implemented in other

countries to tackle the identified challenges faced by each of the target segments. Such

programmes were then looked at in isolation in terms of their objectives, viability, and

desired outcome.

In hindsight, most of the initiatives found were ones that Tamkeen has either already

implemented or is planning to adopt as part of its operation plan - this was especially the

case with enterprise development programmes.

The next step after looking into the segments’ needs and the ecosystem of support made

available worldwide to support the development of individuals and enterprises was to

identify a filtration method that would shortlist the most suitable potential initiatives to

replicate and adopt internally.

Page 36: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

36

The filtration methodology constituted a set of cut-off variables that would determine the

feasibility of the proposed initiatives.

The cut-off variables were grouped into two categories; the Primary and Secondary

variables as follows:

Primary:

o The proposed solutions should comply with Tamkeen’s mandate which is primarily

initiatives that serve to strengthen the economy and boost labour efficiency and

accordingly increase the employability skills of Bahrainis. Similarly, proposed

solutions ought to be related to the identified segment objectives along with the

organisation’s strategic objectives. Consequently, initiatives that fail to meet the

bylaw objectives of Tamkeen become automatically eliminated.

o Similarly, proposed solutions must be deemed viable and doable by Tamkeen

whereas it doesn’t conflict with the mandate and it strictly serves the target end

customers of Tamkeen - being the private sector and Bahraini individuals. For

example, proposed initiatives that serve government entities or social societies and

NGOs are not part of Tamkeen’s mandate and offerings.

o The third primary measure was the budget element, whereby the proposed

initiatives are aligned with the budget allocated for initiatives from a similar nature.

Initiatives that serve the strategic objectives but are considered too costly for

Tamkeen to replicate and operate will be automatically deleted (examples could

include projects that provide land and major construction grants to large

businesses).

Secondary:

Impact reiterates the gap between the desired stage and the present stage of a

certain strategic objective. Initiatives that fall under the strategic objectives of the

organisation should be measurable in terms of their impact and deliverables. When a

proposed initiative passes the above primary variables of “mandate, doability and

costliness”, the secondary variables will play a role in determining whether or not

the proposed initiatives are perceived to be feasible for Tamkeen to operate from a

monitoring and value-add perspective to its current portfolio of programme

offerings. The same taps into the question of whether or not the proposed scheme

would add a significant value to the current stream of activities given the predefined

segment objectives.

o The final measure of filtration is the element of complexity; whereby the proposed

initiatives can in fact be operated given the available resources and are not

Page 37: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

37

considered to be overly challenging in terms of the duration and efforts required for

their implementation.

Given the above cut-off variables, the outcome of the secondary research initially resulted

in a total of a hundred proposed projects and grants that governments worldwide are

offering to empower both businesses and individuals. The nature of these solutions varied

from funding support to capacity building support.

Screening Process:

After identifying solutions that are offered worldwide to cater for the needs of the target

segments identified by Tamkeen, the same was subject to filtration through the cut-off

variables as illustrated in the below graphic:

The primary objectives (mandate, viability and funding) led to filtering the one hundred

project propositions into a total of eighty-two initiatives. The majority of the eighteen

eliminated projects were divided as follows:

Approximately 60% (10 projects) were targeting social enterprises which conflicts

with Tamkeen’s mandate of support and target segments

Screening of Initiatives (100)

Shortisting (cut-off variables)

Identify similar existing

programmes

Highlight the Focus Areas

Page 38: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

38

20% (4 projects) were deemed to be costly for Tamkeen to consider as they were

financing schemes for large and mega enterprises that entailed constructive

incentives of manufacturing and undergoing major business renovations

The remaining 20% (4 projects) were not feasible and sustainable for Tamkeen to

operate as they entailed resource centres, welfare benefits, and indigenous

employment services that were more likely to be carried out by the Ministry of

Labour.

Further, the shortlisted 82 projects were then addressed from an impact perspective along

with the aptness of operating such initiatives, whereby a further exclusion of 44% projects

(36 projects). Generally the majority of the projects and their objectives were very similar

to existing initiatives that were implemented by Tamkeen, however their scope was

reckoned to be complex as they were tailored to suit the country in which they operate,

thus are more likely to be less impactful.

The final 36 projects were then subject to the last filter being that Tamkeen is currently

engaged in similar initiatives as shown in the following chart:

Once the similar initiatives were eliminated, the remaining projects were grouped and

categorised under a set of initiatives that would be aligned with the strategic objectives.

The below is an illustrative snapshot of the proposed projects that passed the last filtration

criteria:

Financing

Grants

Advocacy &

Information

Sharing

Identify Similar

Existing Projects

Interven

tion

Page 39: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

39

Based on the above initiative filtration, Tamkeen was able to identify areas of focus which

have been tried and tested internationally. This exercise served to ensure that all options

and avenues for focus are being considered, including areas which may not have resulted

from local internal and external consultations. This further substantiated the need for

Tamkeen to adopt a segment specific approach to its programmes. Further, it confirmed the

fact that Tamkeen is already offering an extensive variety of programmes, as most initiatives

which were identified have already been offered.

1. Business development centres to support businesses

2. A getaway programme which encourages global growth

3. Programmes which focus on the acceleration of growth

4. R&D support & advisory programmes 5. Support programmes for the

manufacturing sector 6. Programmes that provide enterprise

innovation support 7. Schemes to help marketing of

exports 8. Support for finance patent

registration 9. Programmes to support virtual

presence 10. Customised Incubations (franchise,

disruptive, ICT…etc) 11. Leadership training courses for

entrepreneurs 12. A scheme to help businesses access

export markets 13. A career portal to help youth

internships

14. Employment programmes and the support of career fairs

15. An SME portal to support SMEs

Attractive Areas to Consider

Page 40: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

40

Tamkeen’s New Strategy

Tamkeen’s new strategy encompasses the goals and initiatives which are a priority going

forward. The recommendations have been developed based on thorough assessments of

the internal and external environment in which Tamkeen operates, as well as the resources

available to the organisation. It is an effort to codify the wealth of insight which the public

has offered through the many conducted consultations, and through the internal experience

and expertise the organisation possesses.

There are several values that guide the development and growth of the organisation. These

values underlie all of the new initiatives going forward, and are elements which helped to

drive the new strategy. The strategy emphasises on Tamkeen’s new strategic objective;

these are the goals which Tamkeen will need to achieve in order to deliver value add

services to the appropriate customers, in the best way possible. The objectives ensure that

each segment of customers receives services which cater to their specific needs. The

segments are further defined in the strategy to show the rationale behind their selection.

The types of intervention and the list of new programmes are then highlighted to better

understand what services Tamkeen will be offering in order to ensure all its objectives are

met. These offerings have been assessed and deemed to be strategically ideal for maximum

impact.

Three themes form the foundation on which Tamkeen’s new strategy was built, and those

are: Quality, Customers, and Results or Impact, to outline the strategic objectives which it

aims to achieve.

Quality: Effective and result oriented delivery

Being a service company means that in order for Tamkeen to best achieve its goals it

must deliver its services and programmes as effectively as possible, in a way which will

yield maximum impact. The key focus here is the delivery of the highest quality services

in the most efficient manner possible. Quality enhancement will be demonstrated

through improved programmes, services, processes and practices. Quality will be

measured through new tracking systems, and will be ensured through systematic

procedures and processes. This will serve the sustainable empowerment and

achievement of excellence and leadership among Bahraini individuals and enterprises.

In order for Tamkeen to achieve its strategic objectives, and in view of its desire for a

more customer-centric approach, there is a need for a stronger focus on the quality of

the services it provides. Quality is directly related to the effectiveness of offerings. In

order to address this issue it is necessary for Tamkeen to thoroughly evaluate existing

programmes to determine their success in terms of the objectives which are set out. By

doing this a better understanding of their weaknesses can be achieved, and the

Page 41: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

41

organisation can work to strengthen its financial and operating framework in order to

better meet customers’ needs. This evaluation should be done systematically and

regularly to maintain the level of quality.

In order to achieve effected and result oriented delivery, therefore, Tamkeen will

require:

o Operational changes Improved data collection

o Strong monitoring systems

Tamkeen has taken vital steps towards improving the programme offerings, services,

processes and practices with an emphasis on enhancing quality and improving delivery

time through: Business process re-engineering, automated processes and improved

monitoring.

To enhance the effectiveness of the programmes, Tamkeen turned to more flexible

models for training and business solutions to cater to a more diverse audience and

enhance their sustainability as well as to lead the way in supporting the private sector in

the face of market challenges.

There will be a shift to more market-driven initiatives to enhance the employment

opportunities for the customers. This shift will enable the Organisation to fill many

vacancies with qualified and well-trained Bahrainis across a wide range of sectors and

fields.

To further streamline initiatives and provide a better level of service to the ever-

increasing number of customers, many operations are set to be in-sourced. This will

enable Tamkeen to be more responsive to customer needs and exercise better control

over the programmes.

Tamkeen is continuously looking for ways to improve and refine its respective services to

meet the needs of our stakeholders. Based on extensive consultation sessions, the

current programme objectives were re-visited in order to improve the processes

involved.

In terms of Tamkeen’s commitment to excellence and continuous improvement, a major

exercise was undertaken prior to developing the strategy to evaluate the entire portfolio

of the organisation and accumulated all the gaps and learning’s along with identified

risks. Moving forward, this valuable information will enable Tamkeen to develop best

practices and standards in all functions, as well as facilitate sustainable and competitive

performance indicators and benchmarks. This will enable further alignment of the

initiatives to the corporate strategy while maintaining high standards of excellence and

quality across the board to ultimately benefit the customers.

Customers: Satisfied Customers

Page 42: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

42

The success of Tamkeen is dependent entirely on the satisfaction of its customers. In

order to ensure their satisfaction, programmes must be customer-centric, service

must be quick and responsive, and there must be efficient and effective monitoring

of results. This was addressed in the new strategy through the new segmentation

approach. Customers were divided into segments to better determine the varying

needs of each segment of society.

A customer-focused approach will refocus Tamkeen’s initiatives towards creating

impact. This approach takes into consideration the feedback of stakeholders via

focus groups and consultation sessions etc. It seeks to ensure a higher level of

customer satisfaction through: Offering scalable funding solutions, Set up new

Tamkeen branches, Counselling and mentorship programmes as well as Local

community engagement.

Prioritising customer engagements underscores the fact that interaction represents a

strategic priority for Tamkeen to ensure core customer relationships are built over

time. In this regards, taking Tamkeen’s customer outreach to the next level was one

of the primary focuses over the past year. The impetus behind this focus stemmed

from the sheer breadth and number of Tamkeen’s programmes, coupled with the

surge in number of customers served and Tamkeen’s commitment to more direct

and transparent engagement.

These trends required targeted community outreach activities to help improve the

understanding of Tamkeen's various programmes among the people. In this regard,

Tamkeen has been heavily engaged in valuable two-way communication with its

stakeholders; in terms of disseminating information about Tamkeen’s programmes,

as well as acting as a depository for the feedback, collecting it and analysing the

same to facilitate process enhancement and new project development

opportunities.

Tamkeen's regular and constant engagement with the customers not only further

entrenched its name in the public consciousness as being synonymous with

development and transparency, but also generated many potential joint initiatives

and valuable suggestions for further improvement. In the course of developing the

strategy, the public’s feedback has supported the evaluation of the current

processes and recommend improvements, helped it avoid a lot of mistakes, and

evolve a vision statement that will help serve the clients better and become more

competitive.

Building on this momentum, enhancing service is the prime focus of the updated

corporate strategy whereby extensive efforts were made to create new formalised

functions and procedures. This will contribute considerably to Tamkeen’s drive in

Page 43: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

43

building awareness and bringing even more clarity to Tamkeen’s multitude of

support programmes.

Tamkeen remains committed to continuing to identify opportunities to upgrade the

services and support, while at the same time engaging with individuals, enterprises,

and communities all across Bahrain to identify and address their respective needs.

Results: Enhance productivity and sustainable growth of individuals and

businesses

The end objective which Tamkeen seeks is to see growth in both individuals and

businesses’ productivity in a sustainable manner. Programmes need to facilitate the

independent growth of individuals and businesses. They should increase their

productive capacities so that they can prosper.

Performance follow-up and impact assessment for the various programmes will

underpin this approach. Thus, Tamkeen is moving towards quality over quantity;

private sector stability and sustainability, and higher level of customer service – to

ensure empowerment and not just enablement.

As a service organisation, listening to and responding to the market is at the very

core of Tamkeen's work. As such, Tamkeen’s approach has become increasingly

integrated and flexible over the years. Over time, Tamkeen has invested in

proactively identifying the Kingdom’s market needs so as to be able to introduce

initiatives with maximum impact for the Bahrainis - in terms of skills-training and

jobs, and assist businesses to grow and expand.

In the course of the strategy update, Tamkeen has been exposed to valuable market

feedback that has been influential in shaping new and existing programmes. The

organisations’ priority will be to continue to build awareness of Tamkeen’s

programmes in a more focused and targeted manner. Many challenges made it

imperative to re-think the strategic objectives and modify them to suit new market

realities and priorities in order to ensure that the programmes stay in line with

market needs.

Tamkeen’s current Corporate Strategy was reviewed by evaluating the impact of the

existing initiatives performance, projects and activities for further project

development. Tamkeen will continue to conduct comprehensive impact studies on

the flagship support programmes, targeting Bahrainis and enterprises, to measure

the overall effectiveness of the customers. In addition to this, Tamkeen will be

commissioning various feasibility studies and due diligence reports on proposed

programmes and activities to address labour and market challenges and stay in

lockstep with the objectives and mandates of the Organisation. Tamkeen will also

Page 44: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

44

initiate a number of key sector based cluster strategies to enhance the outreach and

programme portfolio.

Given that the approach to the updated corporate strategy is segments-driven, a

new intervention framework was developed that would be best suited to address

the challenges faced by the segments in conjunction with recommended solutions

(programmes) that went through a stringent filtration process in order to achieve

results in terms of serving the needs and objectives identified for each respectively.

From a monitoring perspective, considering the magnitude of Tamkeen’s services

and scope of operations, Tamkeen will further enhance the tools and systems along

with well-defined approaches to support the organisation’s ability to monitor, track

and resolve issues of underperformance related to service providers and customer

performance. This will ultimately ensure quality execution of the programmes and

confirming that the scheme’s/initiatives are on course towards achieving their set

objectives.

The monitoring and evaluation of Tamkeen’s programmes and using this knowledge

to drive learning is critical to both demonstrating impact externally and ensuring that

every investment achieves its potential. Integrating best practice evaluation and

monitoring approaches with Tamkeen’s balanced scorecard framework will drive

learning and unlock programme potential.

The above values have been translated into strategic objectives that will better help

Tamkeen define its role in the economy. These objectives by customer type are

detailed below, as well as the new segmentation approach to classifying customers.

I. Tamkeen’s Strategic Objectives

High Level Objective by Customer Types

The high level objectives of each segment of Businesses and Individuals are detailed below;

these broad objectives were the driving force behind the creation of the various segments.

Also, they served to guide for the new programmes which Tamkeen will develop going

forward for both businesses and individuals. The below highlights the main goals to be

achieved by customer type.

Page 45: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

45

The graphic below defines the specific objectives related to each customer type. Within

both customer types, businesses and individuals, more specific objectives were created to

allow for better programme definition going forward. These objectives were as follows:

II. The New Segmentation of Customers

By defining strategic objectives clearly and succinctly, Tamkeen can approach programme

development more critically. These strategic objectives target six segments which Tamkeen

will be focusing on in the upcoming years. These six segments are outlined and below.

Page 46: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

46

Segment Strategic Objectives Defined:

These strategic objectives tackle the same issues as the previous strategy but with

customer-centric objectives. A more detailed explanation of each is provided in the

following section.

Businesses:

Start-up

Objective:

Foster entrepreneurship and the creation of businesses to stimulate job creation.

Explanation:

The first stage of the enterprise lifecycle is to help businesses start up their operations. Guidance and mentorship is critical at this stage, and ensuring that businesses are not ‘left alone’ is the ultimate objective. The identification of high potential entrepreneurs who will add greatest value to the economy is the prime focus. As well, Tamkeen aims to help in providing exposure to these businesses by different basic but customised marketing tools and strategies.

Growth

Objective:

Promote the sustainable development of existing enterprises to fuel growth.

Explanation:

Providing technology capabilities for business for the purpose of increased productivity for growth is one element under this objective. In addition, helping businesses re-engineer their processes to enhance innovation is crucial for businesses at this stage. Businesses at this stage in their lifecycle should have:

Page 47: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

47

o A solid customer base: thus the aim of providing customised marketing support tools is to help the business further expand its market outreach.

o A reliable workforce: hence the goal here is to support businesses in developing their existing workforce to reach the high potential of the business

Maturity

Objective:

Encourage diversification and expansion within businesses to generate alternative revenue sources.

Explanation:

Innovation and internationalisation are two key elements that need to be focused on for mature businesses to further increase their revenues. One avenue to promote innovation within mature businesses is to help their linkage with universities. Another mean is to aid businesses in expanding via outward bound franchising to reach further growth opportunities.

Individuals:

Students

Objective:

Nurture students to make optimal career choices through the dissemination of market and entrepreneurial knowledge.

Explanation:

At an early age, to guide students about the degrees that they could invest in and highlighting the attractive career opportunities. Building career awareness and the explanation of potential value added jobs will pose as a great factor in aiding their future study/career decisions. This objective also entails exposing students to the concept of ‘entrepreneurship’ and that it is a viable path for them to follow after graduating from university. These awareness activities will encompass explaining the risks behind being an entrepreneur and the appropriate steps to be taken to become a successful entrepreneur.

Job-Seekers

Objective:

Enhance occupational opportunities and promote the local workforce.

Explanation:

This segment require an array of supporting activities the objective of which to either be employable or start their own business. Although Tamkeen is not in a position to force businesses to employ Bahrainis, Tamkeen will help in developing projects that create these opportunities for the local workforce and help Bahrainis to

Page 48: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

48

access job opportunities. In doing so, Tamkeen will ensure that all projects are aligned with the market needs for better development of projects.

Also, supporting job-seekers in terms of understanding the jobs available in the market, the expected salaries and the skills required for each job will better serve this objective. Another track that job-seekers might take is going into entrepreneurship; Tamkeen will create awareness about potential entrepreneurship chances and provide guidance and mentorship on the processes of obtaining CRs, parents, and other legal obligations.

Employees

Objective:

Improve employees’ capabilities and encourage professional growth.

Explanation:

Those who are already employed in the workforce will have the chance to develop their capabilities to advance in the labour market through various specialised programmes.

After having defined the overall strategic objective of each segment, the objectives of each new segment will be defined in the subsequent section.

III. Specific Objectives of the New Customer Segmentation

As can be seen, within ‘Businesses’ segment, enterprises will be clustered according to their

stage of development: Startup, Growth and Maturity. As for ‘Individuals’ they are grouped

under the following categories: Students, Job Seekers, and Employees.

Individuals: The needs of the customer type ‘individuals’ was broken down further by

looking at the groups Students, Job Seekers/Entrepreneurs, and Employees and their

specific needs, as outlined in the figure below. As stated above, the broad objective of this

segment is to enhance individuals’ capacities to drive their future prosperity.

One important aspect of support will be through information- be it information on market

needs, awareness of career opportunities, or career guidance. The importance of the

dissemination of knowledge and information should not be overlooked, and should be the

basis for all the support Tamkeen offers.

As can be seen in the figure below, career guidance is an offering relevant to students,

jobseekers/entrepreneurs and employees.

Page 49: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

49

1. Provide information on market

needs

2. Guide skillsets required by the

market

3. Introduce to career

opportunities

4. Provide career guidance

5. Encourage entrepreneurship

1. Introduce to career

opportunities

2. Provide career guidance and

market information

3. Develop skillset for chosen

field

4. Encourage entrepreneurship if

relevant

5. Support employers to hire

1. Provide skills required to

advance in careers

2. Provide career counseling and

market information

Students Job Seekers / Entrepreneurs Employees

Individuals

However in addition to that, another new aspect of Tamkeen’s support will be the

encouragement of entrepreneurship to all these segments. Whether the main request they

have is skill or guidance related, it is imperative that these customers be made aware of the

potential risks and benefits of starting their own businesses.

Businesses: The broad encompassing objective for all types of businesses is to encourage

new venture development and support existing businesses to grow to the next level. In the

chart below, specific objectives for each business segment have been outlined.

Here, the needs of entrepreneurs are addressed more specifically than above. The

difference between the segment above ‘Job Seekers/Entrepreneurs’ and ‘Start-ups’ below is

in the needs which are being addressed. Entrepreneurs are supported as individuals through

developing their skills, encouraging entrepreneurship, providing career guidance etc.

However, they are addressed below as a business in the earliest stage of development. This

is the stage where the business needs exposure opportunities, office space, advisory etc.

The growth phase objectives were developed for businesses which have already been

established, are running but are going through growth related changes. For example, a fast

increasing number of employees, developing new products or services, or undergoing

structural changes. Tamkeen’s support here will be centered on facilitating the growth of

the organisation, and providing it with the means necessary to achieve a smooth and stable

transition.

Maturity is the phase of growth in which the business is stable and is looking to improve in

different areas, whether they are diversification, improving efficiency or access to

international markets, and others. Here Tamkeen aims to support them by helping with

exposure, facilitating access to capital for them to grow; it also will encourage these

businesses to hire Bahrainis.

Page 50: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

50

Segment Definitions:

All of Tamkeen’s customers going forward will fall into one of these clustered segments, as

defined by the below graphic.

1. Segmentation (businesses)

1. Provide exposure

opportunities

2. Provide office space and

incubation

3. Provide skills training

4. Provide advisory support

5. Facilitate access to initial

capital

6. Provide access to relevant

market information

1. Provide diversification

support and exposure

opportunities for new product

development

2. Encourage Bahraini hiring

3. Facilitate access to capital for

diversification plans

4. Facilitate access to advisory

services for international

positioning

5. Provide training packages for

employees

6. Provide access to relevant

international market

information

Start Up Growth Diversification

Businesses

1. Provide relevant skills training

to existing employees

2. Encourage Bahraini hiring

3. Provide expansion support

and exposure opportunities

4. Facilitate access to capital for

scale-up and expansion

5. Facilitate access to advisory

services for opportunity

identification

Maturity

Page 51: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

51

Lim

ited

Ba

hra

ini

tale

nt / w

ag

e

su

bs

idy

Fu

nd

ing

La

ck

of M

ark

etin

g

su

pp

ort

Ne

ed

for B

us

ine

ss

Sk

ills T

rain

ing

Lim

ited

Ad

vis

ory

su

pp

ort

Ne

ed

for b

us

ine

ss

inc

ub

ato

r su

pp

ort

La

ck

of E

xp

ort

su

pp

ort

La

ck

of ro

bu

st

ma

rke

t info

Re

gu

lato

ry

ch

alle

ng

es

(CR

s)

Start-up p p p p p p p

Growth p p p p

Diversify p p p p p

Challenges

‘Bu

sin

es

se

s’ S

eg

me

nts

Potential challenges where

Tamkeen may help overcome

The Businesses segments have been defined to be in alignment with the needs of business

at each stage of their lifecycle: start-up, growth and maturity. Similar to the above table,

the challenges facing the businesses have been examined. The findings show that there are

common high level challenges across each stage, however the nature of support required at

each phase is different.

2. Segmentation (individuals)

The Individual based segments have been evaluated based on the challenges faced by each

segment. These challenges were obtained through numerous public consultations and

regular interactions with customers. The below table illustrates that there are common

challenges faced by all of these segments, however the nature of support that will be

Page 52: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

52

La

ck

of

em

plo

ym

en

t

op

po

rtun

ities

La

ck

of

ex

pe

rien

ced

ca

reer g

uid

an

ce

/

orie

nta

tion

/

co

un

se

ling

Ab

se

nc

e o

f sk

ills

de

ve

lop

me

nt

op

po

rtun

ities

Lim

ited

ave

nu

es

to s

ea

rch

for jo

bs

Be

low

ex

pe

cta

tion

sa

larie

s

Na

rrow

op

tion

s in

hig

he

r ed

uca

tion

Students p p

Job-Seekers p p p p

Employees p p p

Potential challenges where

Tamkeen may help overcome

Challenges

‘In

div

idu

al’ S

eg

me

nts

required to address and cater to the needs of each will differ. For this reason, the Individuals

segments have not been clustered further.

Page 53: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

53

Business Life Cycle Challenges:

The challenges and focus of each stage differs and requires customised attention, as

explained below.

During the growth of businesses, companies go through the stages of the business

life cycle and encounter different challenges that require different attention

(financing, advisory, availability of resources, etc.). As businesses mature, priorities

and focus areas change leading to the development and adoption of different

strategies in terms of market penetration, business development, and retaining

market share.

PHASE 1: START-UP

The start-up phase consists of two stages

Development and testing of the business idea

In testing the business idea, businesses should ideally conduct research regarding

the industry they will operate including gathering feedback from potential customers

and industry specialists, statistics, market reports, etc. This is the stage when

entrepreneurs are determining whether the business idea that they had is worth

pursuing and if so it will be the birth of the new business.

The challenges pertaining to this stage are as follows

o Business idea profitability o Market acceptance o Establishing business structure

Getting ready to launch the product or service:

Once the business idea is tested and proved successful, minor tweaking of offerings

might be done based on the initial feedback received from customers and according

to market demand. This process also entails refining the business model to ensure

that it is marketable and profitable.

The challenges pertaining to this stage are as follows

o Managing cash reserves o Managing sales expectations o Accounting management o Establishing customer base o Establishing market presence

Page 54: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

54

PHASE 2: GROWTH

This phase should ideally be where the business is consistently generating income

and adding to its customer base. The generated income will aid businesses in

operating expenses and opening new business opportunities. Also, this is the time

where the business might be facing competition from local, regional or international

markets. Again, the process of refining the business model is required to meet the

requirements of the business.

The challenges pertaining to this stage are as follows

o Dealing with increasing revenue o Dealing with increasing customers

o Accounting management o Effective management o Market competition

PHASE 3: MATURITY

This stage is characterised by a well-established business presence in the market,

thus allowing the business to expand and enter into new markets and explore

different distribution channels. In order to start capitalising on the success of the

business, businesses will need to capture a larger market share and find new

revenue streams.

The challenges pertaining to this stage are as follows:

o Increasing market competition o Accounting management o Moving into new markets o Adding new products/services o Expanding existing business

Every stage of the business lifecycle brings new or pre-existing challenges. Solutions

that may have worked for one stage may not work in another stage, thus

customising the type of support offered by Tamkeen is imperative to ensure

maximum benefit and impact to the business.

The development of projects will be customised for each of the above ‘clustered

segments’, which represents the lifecycle of businesses.

Page 55: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

55

Business Life Cycle Requirements

One of the studies that contributed to the classification of the above segments is the

businesses’ business life cycle requirements, which will be discussed in this section.

There are three phases to entrepreneurship, and Tamkeen must tailor its

programmes to the requirements of each phase. Adopting this approach will enable

the maximum benefit and impact on businesses, and will allow them to grow from

one stage to another in the most efficient way.

The following three considerations are imperative for a successful entrepreneurial

lifecycle:

1. Raise the level of entrepreneurship and business growth;

High-growth businesses are the minority in most economies. They contribute

disproportionally to economic growth, which is also illustrated in a Global Survey –

“High-aspiration entrepreneurs are less than 10% of the population, yet they were

responsible for up to 80% of total new job creation”.

Slow-growth businesses constitute the majority of businesses in an economy

(typically more than 90%) that at inception contribute substantially to job creation,

Start-Up

Growth

4

Diversify

5

• Low collateral loans• Access to business angels• Access to grants• Mentoring and guidance• Minimum human capital requirements• Commercialization

• Scale-up and expansion finance• Opportunity identification• Sales and marketing skills• Scale-up operations• Resource acquisition• Access to suitable new human capital to

support growth• Product and process improvements

• International capital market access• Mergers and acquisitions• International positioning• Leverage capabilities to new opportunities• International resources• New product development• Adaptation to new markets

6

Characteristics / Potential Business’ requirementsBeneficiary Type: Businesses

*Note: may include investment projects

Maturity

Page 56: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

56

provide subsistence for an important section of the economy and offer Bahrain a

portfolio of opportunities and help diversify.

Page 57: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

57

Both types of businesses play a crucial role in Bahrain's economic development, and

Tamkeen should develop a portfolio of programmes to meet the needs of each

group:

For high-growth businesses, Tamkeen should offer the following:

o Develop focused and highly selective entrepreneurship and business support programmes

o Proactively seek out these businesses for support and build a coaching/mentoring relationship with them

For lower-growth businesses, Tamkeen should offer the following:

o Encourage an on-going high volume of start-ups

o Provide support to help firms improve and to help good firms survive

In order to support the development of these types of businesses, Tamkeen will

need to consider the four stages of entrepreneurship1: Opportunity Exposure;

Opportunity Framing; Pre-Launch; and Market Launch. Critical factors and

implications are described in the below table, where an effective entrepreneurship

programme will require tailored policy responses to each stage of entrepreneurship.

1 Finland Ministry of Trade and Industry, 2007, High Growth SME Support Initiatives in Nine Countries: Analysis, Categorisation and

Recommendations

Phase Opportunity Exposure Opportunity Framing Pre-Launch Market Launch

ThresholdOpportunity

recognition

Entrepreneurial

commitmentLaunching platform Legitimacy

Critical factors

contributing to

threshold

achievement

• Market and industry

knowledge

• Knowledge of customer

needs

• Identification of a route to

market

• Commercial and

entrepreneurial incentives

• Alertness to entrepreneurial

career choice

• Estimation of initial

opportunity size and

feasibility

• Estimation of resource

requirements

• Estimation of career, life

impact

• Identification of feasible

business model

• Business planning

• Resource mobilization and

access: facilities,

management team, finance,

technology, complementary

assets, businesses services

• Pre-acceptance by supply

chain and customers

• Firm launch

• Establishment of business

relationships

• Testing and consolidating a

business model

• Creating administrative and

fiscal routines

• Building momentum and

market share

Policy

implications

• Strengthen entrepreneurial

alertness, opportunity

identification skills

• Strengthen population’s

entrepreneurial competence

• Promote entrepreneurial

career choice

• Strengthen opportunity

evaluation skills,

entrepreneurial competence

• Reduce entrepreneurial

trade-offs

• Secure availability of

resources, business

services

• Facilitate resource

provision, seed finance

• Provide business

infrastructure

• Provide advice

• Facilitate social capital

networks

• Facilitate small-large firm

relationships

• Facilitate market entry

• Reduce compliance costs

• Trim, streamline regulatory

framework

• Provide advice, consulting

services

Entrepreneurial lifecycle

Page 58: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

58

Firm Development Phases

Potential losses Time

Fir

m g

row

th:

Re

ve

nu

e

/nu

mb

er

of

em

plo

ye

es

Break-even

IPO

Start ups

& Micro

Small

LargeStart-up Growth Diversify

Medium

Business support requirements throughout a firm’s lifecycle

Le

ve

l o

f T

am

ke

en

su

pp

ort

Low

Hig

h

Home

Business

Owners

2. Enable a range of financial products for business

Best practices point to the development of an effective financial system which

provides the private sector with access to finance at a reasonable cost through a

variety of instruments at all phases of enterprise development. The specific finance

requirements of a firm will vary through the firm’s lifecycle and must be tailored

appropriately. Tamkeen should facilitate the provision of financing by existing or

new financial institutes and directing private sector businesses to the most suitable

available options. There are a range of phase specific programmes and initiatives

that will need to be developed to ensure comprehensive options are available for

the private sector.

Once formed, firms pass through four phases; Tamkeen must tailor the type and

level of support per phase, as depicted in the below figure.

3. Provide phase specific services and support

Following the above approach, ensuring phase-specific services and support in terms

of both business and human capital support is imperative for the success of

businesses:

Business Services: Best practice suggest offering a range of high quality services to provide comprehensive support to private sector and ensure access, with offerings tailored to the development phase of the firm, as indicated in the above figure. Tamkeen’s role can be to identify business support needs, develop appropriate offerings and ensure they are accessible (such as providing financial support).

Human Capital Support: Best practices include ensuring a supply of appropriately skilled and motivated human capital for firm creation and growth at all phases of development. Tamkeen must take a leading role in ensuring human capital development offerings are available that meets the needs of firms.

Maturity

Page 59: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

59

Financing

Grants

Advocacy & Information Sharing

Th

e In

terv

en

tio

ns

Tri

ple

Heli

x

• Subsidies

• Capacity Building

Target: individuals and businesses

IV. Tamkeen’s Intervention Areas

This section focuses on identifying the types of interventions required to enable the

target segments to respond to challenges more effectively. These intervention areas

define how Tamkeen will operate going forward, taking into consideration the

implications on the following:

Development of new projects

Marketing of new projects

Customer receptiveness of project packaging

1. Types of intervention:

Since the inception of Tamkeen, the organisation has been exploring new projects

and different ways to create impact in the market. The below proposed intervention

areas cater for both individuals and businesses.

The implication of the above on smaller businesses

Encourage an on-going high volume of start-ups

Provide support to help firms improve and to help high potential firms survive

The implication of the above on high growth businesses

Develop focused and highly selective entrepreneurship and business support programmes

Proactively seek out high growth businesses for support

Page 60: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

60

The implication of the above on individuals

Encourage advancement in careers

Provide customised mentorship and guidance to individuals across all levels

The three intervention areas in the above figure are detailed below:

Financing:

Businesses have limited access to commercial channels of financing, forcing them to

use self-financing. It is evident that instruments customised to different stages of

development of a business can prove valuable, as opposed to a one-size-fits-all

approach. The flexibility of these mechanisms is essential to respond to the needs of

businesses, and thus demonstrate maximum sustenance, growth and impact on the

businesses.

Since inception, Tamkeen has been a prominent actor in Bahrain to mitigate the

financial constraints faced by the private sector (across all stages and maturity levels)

to finance businesses at a reasonable cost through constant collaboration with

banks. Tamkeen has aided in tackling the major obstacle for small and medium

business financing: lack of collateral, which is a pre-requisite to financing.

Tamkeen will continue to facilitate the provision of finance by existing or new

financial institutes and direct the private sector to these available options, in

addition to initiatives that will help in human capital development. The elements

entailed under this intervention include the following:

Facilitate funds (loans) to businesses to assist in capital expenditure

Facilitate the provision of different financial instruments to businesses depending on their maturity level and needs (Letter of credit, letter of guarantee, working capital finance, growth/expansion finance, import finance, etc.)

Utilise partners (primarily retail banks) to provide financing support

Restructure of finance support re-payment options

Cover training costs for individuals, whether they are students, job seekers, or employees

It is worth noting that the ‘Financing’ intervention limits Tamkeen’s authority to

impose conditions on the customers. The reason for this is that businesses and

individuals are still liable to pay back the financial obligations to the financing arm.

Grants:

Grants are non-repayable funds disbursed by one party to a recipient (in Tamkeen’s

case, to businesses and individuals); this fund is to be used for defined purposes.

Page 61: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

61

Grants are not expected to be repaid as there is typically a lengthy application

process to qualify and be approved for a grant. Most grants are made to fund a

specific project and require some level of compliance and reporting. This type of

intervention allows Tamkeen to ask for proof of proper usage of the grant via

periodic reports, site visits, questionnaires, etc. As with the ‘Financing’ intervention

area, this intervention also applies to both businesses and individuals; this will be

elaborated on further below.

Subsidies:

Subsidies cover various forms of funding, such as direct payment and loan

guarantees, where they may be made in full or partial (co-funding/co-financing).

Subsidies can be used by businesses to offset operating and management costs over

a lengthy time period. Tamkeen has been providing this financing mechanism

through various schemes, examples include:

Incubator support scheme – rent subsidies to offset operating costs

Career progression programme – wage subsidies to offset employee productivity loss

Certification schemes – human capital development training subsidies

The reasoning for offering subsidies is to stimulate a certain investment that would

otherwise have been too costly for businesses to pursue.

Capacity Building:

Capacity building consists of two key elements:

Understanding the obstacles that prevent people and organisations from fulfilling goals

Enhancing and strengthening the skills, competencies, and abilities of individuals and businesses to help them achieve measurable and sustainable results

Tamkeen has been working towards the supply of appropriately skilled and

motivated human capital for the development and growth of businesses at all phases

of the business lifecycle.

The key areas that will be introduced under this intervention will tackle the

challenges faced by businesses and individuals in terms of capacity building. The

examples given below under each area should not be seen as an exhaustive list of

activities.

Page 62: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

62

Advisory and mentoring services

o Advisory services often require short discussions on one-off situations where certain questions or concerns are addressed

o Mentoring services are more geared towards long term improvement plans, such as the necessity to improve productivity. This service requires the right strategy to be put into place, whether for individuals or businesses.

For businesses: the ‘strategy’ should take into account the following aspects: people, processes & systems, workflow, and any change management challenges that the business might face should it follow mergers, acquisitions and/or internal restructuring.

In addition, this includes the support given to businesses in terms of providing ‘business studies schemes’ such as help in Business Plans, Feasibilities, Expansion strategies, Export strategies

For individuals: career guidance and setting career progression plans, as well as the right type of training that Tamkeen can offer

The purpose of this service is to work with the customer collaboratively to achieve tailored and sustainable results.

Capacity development programmes

o Low-cost training services such as short in-house training for SME employees

o Local and international internship schemes

o Apprenticeship Schemes

o Focused workshops and training

o Basic skills training

o Certification schemes

Career guidance and work readiness schemes for individuals

Exhibitions and Fairs

o Career fairs

Internship fairs – for the purpose of employment

Work readiness programmes for individuals

Advocacy and Information Sharing:

This intervention aims at creating a platform whereby knowledge resources are

made accessible to Tamkeen’s customers in the most efficient way. This area

consists of generating, collecting, distilling, and disseminating the most relevant and

up-to-date information.

Page 63: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

63

The purpose of this intervention is for Tamkeen’s customers to have a better and

informed decision making process. The examples given below under each area

should not be seen as an exhaustive list of activities.

Advocacy

o Industry support bodies to explore opportunities outside of Bahrain (for larger businesses)

Facilitating access to markets

o Online portals market place for entrepreneurs to market their products and services

o Centres to help businesses network in the region

Information dissemination sessions

o Information and orientation sessions

o Campaigns dealing with the mass, such as the a9eel Programme in schools

Information collecting sessions

o Consultation forums to collect comments from the public on the challenges they are facing and solutions they recommend (such as the semi-annual forums held)

o Focused discussion sessions to gather feedback on specific areas

o Surveys and studies that collect the responses of the public on certain issues/ideas

Sector Level Interventions:

The previous strategy cycle of 2010-2014 was more focused towards sector priorities

and developing targeted projects accordingly. The direction of the current strategy

is more related to serving the needs of businesses and individuals via segment-based

analysis. The upcoming strategy realises the importance of taking into consideration

both the segment and sector into consideration when defining specific programmes

for Tamkeen’s target audience, however the recommended programmes will be

linked to segments.

Focused attention regarding sectors will be given at a detailed project level, where the creation of proper variations of the proposed projects will take into account the needs of each sector.

The segmentation and intervention strategies are the building blocks to the

refinement of existing programmes and the development of new solutions for

Tamkeen to pursue. The subsequent sections of the strategy document will detail

the approach taken for this.

Page 64: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

64

V. Proposed Programmes per Segment

This section shows the new programmes which have been created based on the

segmentation of Tamkeen’s customers into cluster segments to better focus its efforts.

These programmes were developed based on international benchmarking, public

consultations, and experience from previous programmes. Tamkeen’s programmes were

linked back to the law and mandate based on which the organisation was formed. The new

programmes are as follows:

The new programmes address some of the key issues which Tamkeen has identified through

interactions with its customers. Solutions were designed to cater to the most prominent

problems pertaining to each segment. For students, it was important to have a programme

addressing career guidance, to ensure that they are given proper training and mentorship to

help choose their careers going forward. Entrepreneurship is a key theme which Tamkeen

wants to introduce to students going forward, to make them aware of the options which

they have.

For jobseekers and entrepreneurs, the focus going forward will be on channelling

employment opportunities to them, improving their skillset to better meet market needs.

Page 65: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

65

They will also receive career guidance and counselling as well as entrepreneurship

mentoring.

Businesses will receive catered support based on the stage of growth. Startups will avail

support through funding as this is one of the key barriers they face. Consultancy and

mentorship are also high on the list of priorities for startup, since many of them are

inexperienced they are most likely to benefit from such programmes. As well, innovation

and marketing support are highly relevant for this segment.

Growth companies support will be focused on encouraging expansion through programmes

which provide funding, support business process reengineering, marketing and improving

workforce capacities.

As for mature companies, they will be supported through product and service innovation

programmes, as well as internationalisation. Finally Tamkeen will support these

programmes by making companies aware of opportunities for joint ventures with foreign

companies.

Proposed Programme Definitions

The universe of potential programmes mentioned earlier were a result of the paradigm shift

of this strategy direction relative to the previous one; being segment-driven. Each segment

would therefore drive the potential set of programmes that directly serve its needs and its

identified challenges.

Page 66: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

66

Below is an overview of the scope of the proposed programmes and their definitions:

1. Startup:

1.1 Startup funding support: offer financial support through providing or facilitating

access to grants and financing for the purpose of business formation through all

stages of business development from early concept to pre-launch and validation.

1.2 Startup consultancy and mentorship: identify business support requirements and

provide knowledge with regards to the available array of financial and general

support available to start-ups

1.3 Encourage startup innovation: encourage innovation in service/product

development and processes from which new innovative offerings with a clear

competitive edge would emerge

1.4 Startup marketing and exposure support: provide funding support to facilitate

exposure and market outreach to start-ups and entrepreneurs to communicate,

market and promote their product and services to the public.

2. Growth:

2.1 Provide funding for technology and growth: provide funding for initiatives that help

building up organisational systems and resources with emphasis on technology

adoption that meet international technical and quality standards to increase firm’s

productivity

2.2 Support business process reengineering and innovation: provide customised advice,

information, and financial assistance to restructure business and improve operations

and business performance by applying creative and innovative solutions

2.3 Support marketing and customer outreach: provide financial/advisory support to

businesses to help them increase their market outreach and customer acquisition

through effective marketing strategies, advertising, and promotion (this would

include export promotion and exposure through trade fairs/exhibitions)

2.4 Workforce capacity building and support: provide management and leadership

training to SMEs and to Bahrainis employed in the private sector to improve

productivity, instil best practices, and build business knowledge that can enable

them to improve / expand their businesses

3. Maturity:

3.1 Product and service innovation support: provide financial support through providing

or facilitating access to grants and financing as well as advisory support to encourage

business development in advanced/mature business stages through diversification

and innovation in product and service lines/offerings

Page 67: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

67

3.2 Internationalisation and franchising support: offer services that will enable

businesses to expand its operations and introduce the idea of outward bound

franchising to reach further growth opportunities

3.3 Foreign Investment and joint venture support: provide support in attracting FDI’s,

establishing JVs between local businesses and foreign organisations

4. Students:

4.1 Career guidance support: Enable students to make informative decisions about their

educational and occupational attainments. The programme will offer a set of tools

that will act as a career guide to students in order to assist them with making choices

after graduation, post-graduate education and career planning and development.

4.2 Entrepreneurship exposure support: This programme will arm students with the

relevant mindset and necessary guidance to increase the potential for self-

employment and business generation. This programme is designed to encourage a

culture of entrepreneurial guidance and support from an early age of a student life.

5. Job Seekers:

5.1 Employment channelling support: This programme aims to create opportunities for

Bahrainis to access the job market and create awareness around the availability of

these opportunities

5.2 Up-skilling for market alignment: This programme focuses on the process of

equipping prospective market entrants with additional skills in order to increase

their knowledge and capabilities in certain disciplines and knowledge areas. Up-

skilling for market alignment is a comprehensive programme based on future

potential that allows individuals to upgrade their capabilities in order to have

marketable skills and meet the challenges of new endeavours.

5.3 Career counselling and work readiness support: The programme is designed to

ensure that customers get the appropriate and needed exposure before taking on a

job search or an actual job. This programme focuses on enabling individuals to make

an educated choice of career and providing them with a proper set of work entry

skills in order to increase the chances of being successful.

5.4 Entrepreneurship guidance and mentorship: This programme focuses on providing

entrepreneurs the opportunity to tap into the experience and knowledge of mentors

during their entrepreneurship journey. Entrepreneurs can utilise the guidance

expertise to shape their conceptual ideas and shape their entrepreneurship skills

before commercialising their ideas.

Page 68: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

68

6. Employees:

6.1 On-job skills optimisation: This programme will offer training to employees

addressing their occupational needs/requirements in order to up-skill them, improve

productivity, make them professionally attractive and increase their chances of

career progression.

Having defined the programmes in more details and the objective of each, the upcoming

strategy realises the importance of taking into consideration both the segment and sector

into account when defining specific programmes. Focused attention regarding sectors will

be given at a detailed project level, where the creation of proper variations of the proposed

projects will take into account the needs of each sector. The following section

VI. Sector Review

This section outlines an essential sectoral analysis which has enabled Tamkeen to

align its programmes with market demands. Each sector has its own unique

demands which will be addressed based on each segment’s needs. The type of

intervention will depend on what the most prominent issues each segment faces

within the sector.

Therefore, customised support will be developed based on the economic conditions

of the sectors. The outlook of each sector has been analysed and project definitions

will be based on the findings. The below section provides an overview of the

macroeconomic environment and performance/attractiveness of each sector.

Macroeconomic Environment:

Bahrain’s economy continued its healthy growth after two major setbacks in 2009

and 2011. The well-diversified economy and well-regulated environment made it

easier to dodge the severe impact of recession which other economies were

experiencing at that time. Some of this recovery can be attributed to government

support through increased spending and support for businesses.

The economy has recorded positive growth for two consecutive years, which was led

by the growth in the hydrocarbons industry followed by other non-oil related

industries. Estimates for the coming years show a slower pace of growth. In 2014

Bahrain is projected to have a growth higher than the MENA average and some GCC

countries.

Bahrain’s economy has also been recording a positive average growth in service

industries which has consistently outperformed the goods producing industries.

However, the latest records for 2013 show that backed by oil production, goods

Page 69: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

69

producing industries have had a spike in growth rate to 8.4% after a decline in

growth in 2012. The service industry growth was attributed to the increased

activities in transport, communications and hotel and restaurant services, the latter

recorded a growth of 9.5% in 2013.

The non-oil sector continues to be the major contributor to the GDP, emphasising

the strategic commitment for a diversified economy. Bahrain Oil contribution

counted for just above 20% of the total industries. The non-oil industries led majorly

by high performing sectors such as financial corporations and manufacturing have

respectively contributed 16.8% and 14.3% to the GDP in 2013. Regardless of the oil

sector contribution to the GDP, revenues generated from the sector remains one of

government’s main source of funding for infrastructure projects in the country.

As with other GCC countries, data shows that Bahrain continues to record a healthy

growth rate, driven by non-oil sectors as mentioned above and other staring sectors

such as transportation & communication and construction.

A number of major sectors remain major contributors to the overall economy.

Hydrocarbons, which are represented in the crude petroleum and natural gas

followed by the financial sector and manufacturing contributed more than half to

the economy. Whereas, there are other sectors that signals promising contribution

to the GDP i.e. Real Estate and Business activities, Construction, Trade and

Transportation and communications

Tamkeen’s new approach will be to serve all the economic sectors to enable

maximum impact on supporting Bahrain’s economic development objectives. The

output of this work will allow for actionable Tamkeen programmes to be developed

over the short, medium and longer term.

The core of this approach was assessing each sector’s stand-alone fundamental

attractiveness and also its fit with Bahrain. “Fundamental attractiveness” is a sector’s

attractiveness on a global industry-wide level. “Fit” is a sector’s fit with Bahrain’s

capabilities and comparative advantages.

Manufacturing:

The manufacturing sector is anticipated to continue to grow and maintain its

foothold amongst other sectors. This will put a direct emphasis on capitalising on

new technologies and developing the right skills in order to keep up with the distinct

requirements of the sector. The nature of skills and level of specialisation in terms of

vocational training will highly be in demand as the sector grows.

Average salaries for Bahrainis in the Manufacturing sector have always been higher

than non-Bahraini average wages. This is mainly due the fact the majority of high

Page 70: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

70

skilled occupations and roles are favoured by Bahrainis in most big companies that

operate in the manufacturing sector.

The unbalanced composition and the huge number of establishments raises an

opportunity for identifying areas of support where the required skills can be

acquired, along with working an improved environment which is believed to be one

of the factors that hinders Bahrainis from penetrating the sector.

Page 71: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

71

Financial Corporations:

The progress in Financial Corporations has been a result of robust regulations and a

dynamic market in which different composition of insurance activities try to offer

their products and service to the local and regional market. Despite this growth,

regulators are constantly guiding institutions to adhere to the best international

practices in the market, resulting in new or existing areas to be developed and

maintained which would require intervention in terms of training and development.

One prevailing area is the risk management discipline which regulators are now

emphasising be incorporated in insurance price building. Implementing risk

management policy and strategy, whereby underwriting, pricing, investment and

operation risk are managed effectively, is vital for achieving profitable growth.

Average wages in the financial sector are considered one of the highest compared to

other sectors in Bahrain. The gap between the Bahraini and non-Bahraini average

salaries is minimal and has been fairly static over the past couple of years.

Construction:

Although the most labour concentrated sector and the highest in terms of numbers,

the gap between the Bahraini workers and non-Bahraini is the highest compared to

other active sectors. The average wages in construction is in favour of Bahraini

workers despite making only 8.6% of total workers. This clearly indicates that most of

the jobs occupied by non-Bahrainis are labour intensive and low skilled occupations

which Bahrainis repel from. The number of workers in this sector is expected to grow

in the coming couple of years due to major government and private sector projects

that are related to infrastructure and housing.

Despite being an unattractive sector to Bahrainis, the construction sector has various

bands of jobs that can offer Bahrainis acceptable salary ranges and better working

environment. Construction sector has been for long perceived as having a rigorous

working environment and low pay jobs. However, there are other areas in

construction sector that could offer good pay, unfortunately, these areas have being

in the shadow of construction sectors’ prevailing conditions. This drawback could be

addressed by making the public aware of different types and nature of jobs available

to Bahrainis.

Page 72: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

72

Trade:

As the focus of growth in the economy moves away from the oil sector, trade is one

of the sectors that have the potential to be in the frontline while the economy

grows, especially with announced projects that will highly contribute to the sectors.

Average wages in the trade sector have been in favour of Bahrainis despite the huge

gap between the number of Bahrainis and non-Bahrainis working in the sector.

Bahrainis’ average wage was BD 425 at end 2013, an increase of 8.7% since 2010. On

the other hand, non-Bahrainis average wage was BD 179 in 2013; the wages have

actually decreased since 2010 by 4.8%.

The number of Bahrainis working in the trade sector has not had a major increase

over the year unlike non-Bahrainis. The trade sector along with construction and

manufacturing are characterised to be a major source of employment, and the

likelihood that Bahrainis penetrate potential jobs is deemed to be very high should

they be equipped with the necessary skills and competencies. In addition, there are a

lot of value added jobs that make up different parts of trade sector which could

absorb Bahrainis in the short to medium term.

Hotels and Restaurants:

In spite of its marginal relative contribution to the total economy, hotels and

restaurants industry is considered one of the star sectors with optimistic growth

rates over the coming years. The growth in the number of employees over the past 4

years has been slow especially for Bahraini citizens; total growth from 2010 to 2013

was only 1.5% for Bahrainis. This pace has been majorly attributed to the

unattractiveness of the sector to Bahrainis.

On the other hand, average wages for Bahrainis increased from BD 271 in 2010 to BD

327 in 2013, an increase of 20% compared to 18% for non-Bahrainis.

Transport and Communication:

Transport and communication is one of the promising sectors that are expected to

contribute positively and boost the overall contribution of the non-oil industry to the

national economy. There has been a remarkable growth in the transport and

communication, since 2009 it has recorded a 6.5% average growth rate.

Average wages in this sector is categorised in the upper tier with manufacturing and

financial corporation sector. Bahraini employees average wages have recorded at

end of 2013 BD 908, compared to BD 505 for Non – Bahrainis.

There were nearly 1,600 establishments in this sector employing just above 16,000

workers. Bahrainis represented 44%, a relatively high percentage considering other

economic sectors.

Page 73: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

73

The nature of transport and communication sector necessitates a different band of

job categories, including jobs with technical skills requirements.

Health:

The healthcare sector contribution over the past years has been growing marginally;

it is also expected to keep its positive growth in the coming years. Private healthcare

service is considered limited compared to the services offered by the government

however it is growing very rapidly within the dominance of the government sector,

leaving little room for development and expansion in general medication very

prosperous in terms of specialisation of services.

A major challenge for private healthcare service provider is the public sector

dominance in the healthcare space. Another dimension of the challenge that faces

the industry is specialised manpower, the insufficient or the availability of qualified

and experienced manpower, ranging from doctors to nurses to specialised

personnel. In addition to that, the licensing of medical manpower and the time taken

for the same is also regarded by industry experts as a concern.

The focus of the government has been directed towards greater public – private

sector cooperation and joint investments in the health sector. This focus is expected

to attract more investments in order to serve not only the local market but regional

as well. Average wages in the health industry for Bahrainis and non-Bahrainis are

nearly the same.

Education:

Despite the steady growth, Bahrain is yet to compete with other GCC countries in

terms of improving quality of the educational system. As of 2013 Bahrain ranked 48th

in the global competitiveness report falling behind Qatar 4th, UAE 15th and Saudi

Arabia 39th. This parameter is an indication of how well an educational system in a

country meets the needs of a competitive economy.

Other important parameters also include the level of technology integration in the

schooling system or how widespread the internet is in schools. Bahrain ranked 3rd

amongst other GCC members.

There is an obvious gap in average wages between the Non Bahrainis and Bahrainis,

this gap has widened since 2010. In 2013 Non Bahrainis averages wages recorded BD

645, an increase of nearly 110%. On the other hand, Bahraini average wages was BD

473 for the same period, an increase of 108%.

Page 74: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

74

Agriculture and Fishing:

The agriculture and fishing sectors are considered the smallest contributor to the

economy due to its limited spread in terms of activities and infrastructure. The

agriculture sector which includes activities such as growing crops, fruits and farming

animals had a minimal contribution of 0.2% to the national economy. Since 2010 the

contribution of this sector seemed to cap to this rate without any notable increase.

The agricultural sector is dominated by non-Bahraini workers which have maintained

an increasing trend since 2011. Bahrainis on the other hand recorded a decrease of

25% since 2010. Despite the non-Bahraini dominance of this sector, average wages

for Bahrainis are higher compared to non-Bahrainis.

The agriculture and farming sectors face many challenges that hinder its expansion

and development, one of the main challenges is the lack of soilable lands and the

absence of a proper distribution channel when it comes to local farming houses.

Tamkeen has developed an insight into the economy by studying the various sectors,

their growth rates, the challenges they face and their scope for growth. This has

allowed Tamkeen to develop its new strategy in a way that addresses sectoral needs

and attributes. Through an analysis of the various sectors, Tamkeen was able to

identify the strengths and weaknesses, as well as a path for the development of

each. It is imperative that Tamkeen provide sufficient support across sectors,

without favouring any sectors over others. Rather it will support all sectors in the

areas which will yield maximum impact, and resolve the most prevalent issues which

they face. This will fuel the development of the private sector, increase employment,

and enhance productivity.

The shift which Tamkeen has made from a sector-driven towards a segment-driven

approach will not prevent it from addressing challenges unique to certain sectors.

For example, programmes for start-ups will be structured in a way that allows for

flexibility relative to the sector that the start-up is in. The same applies to students

or job-seekers seeking to apply for work in various sectors. Naturally, the needs will

differ per sector, and therefore the types of programmes which will be offered will

be tweaked to meet those needs.

The implementation of the new strategy will require a continuous and efficient flow of

operations, monitoring and planning which all work towards achieving the ultimate goal,

and that is customer satisfaction. Good planning underpins the success of any organisation,

and Tamkeen, in implementing its new strategy, must ensure that there is sufficient

planning prior to the execution of projects.

Page 75: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

75

Operational Considerations

The implementation of the new strategy will require a continuous and efficient flow of

operations, monitoring and planning which all work towards achieving the ultimate goal,

and that is customer satisfaction. Good planning underpins the success of any organisation,

and Tamkeen, in implementing its new strategy, must ensure that there is sufficient

planning prior to the execution of projects. By doing so, resources will be allocated

effectively and operations will flow more smoothly. Good monitoring systems also ensure

that high delivery standards are met, thus further strengthening the organisation’s customer

focus.

In order for any strategy to be effective, a detailed implementation model is required to

translate the strategic objectives into actionable items for the organisation to execute. The

organisational implementation model takes into consideration all the impact assessments,

feasibility studies, market studies and public consultations conducted by Tamkeen over the

years. It also emphases the strategic direction that will best translate Tamkeen’s internal

processes into impact and output.

Page 76: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

76

I. Organisational Implementation Model

In the process of formulating practical steps towards accomplishing the objectives of

Tamkeen’s corporate strategy, implementing its annual operational plan, and providing the

building-blocks for future initiatives, the following areas were identified as general themes

to guide the organisation’s development:

Quality enhancement: continuously improving the current portfolio of

Tamkeen’s offerings, services, processes and practices with an emphasis on

enhancing quality and improving delivery time,

Customer focus: adopting a customer-centric approach by taking into

consideration the feedback of stakeholders to ensure a higher level of customer

satisfaction, and

Results oriented approach: by closely monitoring and measuring the impact and

the success of different programmes to ensure the fulfilment of the programmes

and Tamkeen’s objectives.

However, the above mentioned themes face a number of key issues relating to processes

and procedures, roles and responsibilities, as well as organisational structure and resources.

Chronic fragmentation of functions and redundancies are evident across the organisation

leading to confusion, and the absence of well-defined accountability. In order to enable

change, Tamkeen needs to drive this notion by improving the current business model and

strengthening relationships between departments through adopting a logical approach to

defining workflows and priorities.

The current organisation structure adopted by Tamkeen, combined with the increase in the

number of staff in certain departments, has affected the ability to effectively work together

towards a common objective. This is partly due to the lack of proper tools and mechanisms

for managing the large number of employees in an effective manner. Moreover, the main

contribution to the inability of Tamkeen to build an effective team environment and

collectively fulfil the corporate strategic objectives is attributed to the structure of the

organisation. The current set up of the organisation is in a way that encourages

departments and teams to operate in silos. This, in turn, has resulted in the absence of

implementable checks and balances within the organisation towards effective quality and

control, thus delivery to an extent.

The structure has two distinct Implementation Departments, where each are responsible for

planning, implementation, and monitoring their own set of projects. Each department has

their own set of plans and objectives going forward, as opposed to analysing the entire eco-

system and portfolio of Tamkeen and working together towards a common objective. As a

result, this limitation in seeing the bigger picture to Tamkeen’s activities has caused a

disconnect between departments.

Page 77: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

77

Tamkeen’s Structure - Current Issues

The following issues are pervasive across the organisation. These challenges provide an in-

depth understanding of the key structural and process-related constraints that need to be

rectified in order to implement the 2015-2017 strategy:

o Tamkeen’s initiatives will need to be further aligned with the Corporate

Strategy - Tamkeen’s efforts to drive its operational focus in a direction

congruent with its strategic objectives have been less than successful. As a result,

the process of identifying optimal objectives has also become a challenge where

operational issues have at times obscured strategic targets.

Moreover, as a result of the current project approval process and hence the

absence of an independent control has resulted in disregarding a wider range of

alternatives, which could align the department’s activities to the corporate

strategic objectives.

Specific Objectives:

- To develop focused and specific objectives for some projects - Some objectives

were general and not quantified or time bound. As a result, some of these

projects’ objectives were changed or adjusted during the project lifecycle in

order to justify its alignment with the corporate strategy.

- To have consistent Key Performance Indicators - Most of the current KPIs are

focused on issues such as customer pass rates and the service providers

performance evaluation level with minimal consideration to other critical areas

that would be indicative of the programmes’ true performance and achievement

of objectives.

- An independent evaluation in the Project Initiation Documents is deemed critical

to ensure projects do always have the necessary comprehensive due diligence

required - There are many instances where the projects, especially those that are

received from the public, were not assessed in terms of their strategic fit to

Tamkeen’s strategic objectives, cost estimates, market prioritisation, and most

importantly value.

o To eliminate fragmented activities across the organisation – This is evident in

terms of the various initiatives being carried out without clear alignment to the

organisational strategy, as well as market demand and priorities in some cases. In

many areas, the programme objectives will need to be well defined to avoid

creating a disconnect between what the programme was designed to achieve

Page 78: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

78

and what was being measured. Independent assessment will be required to

address this issue to direct efforts towards the set strategy.

- Enhanced Communication with external stakeholders is deemed necessary- The

fragmentation of activities across Tamkeen is making it difficult for internal

departments to gain a comprehensive view of the organisation’s initiatives. This

has been hindered further by the inconsistent data and information needed to be

communicated for the various schemes. Hence, this factor was deemed to be an

obstacle in the process of guiding the public towards a clearer perception of

information regarding Tamkeen’s offerings and services.

o Leveraging of competencies across departments has been minimal - Tamkeen

has witnessed many challenges affecting the performance of the ongoing

strategy, some are due to external factors but many of them are attributed to

internal issues. There is an apparent need for greater resources and training in

key project management and monitoring areas to ensure the effective utilisation

of staff in their core fields.

Specific Objectives:

- Need for due-diligence for some of the projects launched – Due to time factor,

some projects were launched without a prior detailed assessments, feasibility

studies, and due diligence. This will have an adverse impact on Tamkeen’s ability

to effectively evaluate the viability of the schemes. Moreover, the market

fundamentals that support the premise behind directing projects towards a

specific sector was not well justified in some of the cases.

- Financial cost projections required greater due diligence and routine updated

forecasting in order to continuously ensure that proper controls and risk

mitigation concerns are managed effectively.

- To avoid the persistence of vague measures of success - the performance KPIs

adopted is measured either by the value of the portfolio distributed by its

business partners or by the number of customers receiving support in some

cases. These appear to be insufficient in determining the true impact of the

programme.

o Need for further emphasis to be laid on the core roles and functions across the

Organisation – If this factor is not carefully considered, the implementation and

operational excellence, as well as performance monitoring to support the

corporate strategy might be hampered. The absence of complete planning in key

areas could jeopardise project outcomes and ultimately, may result in low impact

Page 79: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

79

and unsatisfied customers. Therefore, this calls for an urgent need to consider a

mechanism whereby equal attention and effort is exerted individually into

planning, implementing and monitoring the projects with the right expertise in

place for each area respectively.

Specific Objectives:

- Cumbersome and time consuming processes and procedures for some schemes

left a negative impression amongst Tamkeen’s stakeholders (as per consultation

feedback and other public engagements). Streamlining of processes was deemed

as critical steps to the viability of Tamkeen’s support schemes and need to be

prioritised.

o Tools and systems required for operational efficiency within the departments

will need to be clearly addressed – Business Processes and systems were a major

source of criticism across the organisation (public consultation forum feedback,

management workshops) which highlighted the need for Tamkeen to revise

many policies and procedures in this area. Time lags and delays in receiving

payments were discussed repeatedly in all sectors and needed more attention

and resources from Tamkeen to overcome. This is moreover, hindering the

organisation from providing standard / constant /and consistent operational

systems throughout the organisation (including the Management Information

Systems and others).

Specific Objectives:

- Data collection will need to be a mandatory activity across the Organisation–

Data collection approaches has not been formally considered as part of the

programme set up to facilitate monitoring.

- Operational bottlenecks in performing impact assessments to be reduced– this is

mainly due to the lack of a coherent and systematised database for programmes

and initiatives. Moreover, incomplete, non-comprehensive and timely up to date

data for some projects can be a hindrance to conduct accurate impact

assessments.

o There is a need for a robust and transparent Enterprise Risk Management

Framework - the lack of a comprehensive framework can hinder the ability of

the organisation to prioritise activities and to meet new challenges in a

structured manner

Page 80: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

80

The absence of this framework can be an obstacle to the organisation in terms of

the following:

1. Deciding on a sound basis for strategic planning

2. Effective allocation of resources

3. Improved level of accountability and responsibility

4. Better informed decisions about opportunities and new initiatives / projects

Specific Objectives:

- There needs to be a clear policy in place for performance of impact assessments –

In order to ensure that unsuccessful project does not continue, taking into

consideration remedial actions proposed through impact assessments and other

feasibility studies.

o Further empowerment of the role of support functions– In some cases, the

organisation has been functioning in operational silos with individual operational

departments exercising authority over all aspects of its projects (which should

mainly be the responsibility of the support units). Consequently, the organisation

will not be able to fully comprehend the broad spectrum of risks facing Tamkeen

and ensuring that those risks are appropriately managed.

Organisations that understand the intricacies of the roles and responsibilities of

each department are able to recognise the individual characteristics required to

deliver the best results. By adopting this frame of mind, Tamkeen will be better

positioned to recruit, select, develop, reward, retain and position the most

productive and promotable people.

Proposed recommendations & solutions:

General View:

The current structure within Tamkeen inhibits the operations thus performance of projects

to an extent. Therefore, solutions need to be developed in a manner that meets the needs

of the organisation as a whole by regarding it as a unique entity. The structure of the

departments encourages working in silos and does not fully promote the culture of

knowledge sharing for the benefit of Tamkeen. Moreover, clarity on the roles and

responsibilities of each department remains ambiguous, which affects the operation of work

and ultimately the performance of the organisation due to duplication of efforts.

Therefore, for the purpose of developing an efficient customer-centric organisation,

Tamkeen is required to build an operating model around a thorough understanding of its

Page 81: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

81

customers, what they value and the contribution each makes to the success of the

organisation.

This requires the following elements to be examined further:

o Assessing the organisation structure against a customer-centric focus to provide a

balanced perspective for evaluating the needs and resources. This will guide

Tamkeen on where and how to invest funds to demonstrate the maximum impact.

o Further simplifying and streamlining the processes and internal operations within

Tamkeen’s support programmes. This will help to better plan for intensifying

community outreach efforts to ensure that the public are aware of Tamkeen’s

programmes and their benefits, as well as customising these programmes to match

the unique requirements of each sector.

o Redefining the roles and responsibilities in order to effectively design and deliver

business processes that recognise different customer segment needs.

o Delivering a positive and seamless customer experience by integrating their feedback

and requirements into Tamkeen’s plans for future initiatives. Tamkeen needs to

foster a culture that places the customer at the heart of the decision-making

process.

Proposed Changes:

With a more conscious approach to channelling the organisation’s investment, the pressure

to execute effectively has increased. The functional blueprint is a plan spelling out how to

accomplish the best way forward for the departments to function as a whole and deliver the

most value to the organisation while continuously raising performance.

A well-designed and well-executed functional blueprint makes strategy execution and

implementation easier. Once an open and a well-communicated set of priorities and an

explicit, well-understood functional blueprint is developed and established, departments

will no longer be operating in silos. The blueprints, or manual, will help reinforce a higher

degree of alignment between the corporate strategy and operations of the organisation.

Moreover, it will help in reducing multiple priorities and instead focusing on the most critical

capabilities that will enhance the departments’ abilities to lead and shift Tamkeen to move

in the direction of a capabilities-driven strategy.

Tamkeen will introduce both new and modified functions within the organisation as deemed

necessary with the ultimate goal of supporting the translation of its upcoming strategic

intent all the way through to results in a clear and defined process.

Page 82: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

82

A high level review of all the functions and processes was conducted to identify specific

areas where certain functional gaps exist and accordingly proposed new approaches in

terms of dependencies, tools & systems requirements and scenario planning for

unexpected events that may arise in future.

However, it must be noted that the “Project Manual” must be referred to for further

guidance on all project-related matters documentations and governance from initiation to

closure. Also, the document will not replace a full-fledged operational manual which is to be

developed by each department for the activities and projects to be executed.

Page 83: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

83

Objectives of the Functional Blueprints

1. Guide the departments entrusted with the responsibility of each function in efficient

management and execution of their projects and associated activities.

2. Identify problems/gaps and recommend preventive and corrective actions to be taken to

address the issue.

3. Provide a basis for decision-making on amendments and improvements of policies,

strategies, programme management, procedures, and projects.

4. Promote accountability among departments and other stakeholders.

5. Establish leading practices and policies that enable effective operations.

6. Ensure compliance with the guidelines laid down by the Organisation

7. Raise the standards of corporate performance

8. Ensure that each function operates within the perspective of Tamkeen’s Corporate

Strategy.

9. Educate personnel, provide transparency and facilitate a greater understanding of

Tamkeen’s activities and various department functions along with roles and

responsibilities, thereby avoiding any duplication of tasks.

Identified Issues: Summary of the Common Strategic Gaps

The identified issues and the proposed action plans are based on public consultation

engagements, management strategy workshops, impact assessments, discussions with

internal stakeholders, review of relevant documents / records and physical observation of

the activities in the process.

(As part of Tamkeen’s efforts to further develop and enhance the services offered in line

with market needs, Tamkeen carried out several monitoring surveys to generate

recommendations for future initiatives for Tamkeen to meet the current untapped needs

and requirements in the market.

o The Public Opinion Survey gauged the public’s perception about Tamkeen’s

awareness and knowledge of its programmes, functions and activities as well as

measured the perceptions of the public concerning Tamkeen’s impact on the

workforce and the business environment.

Page 84: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

84

o The Needs Assessment Survey was conducted to understand the public’s awareness

and expectations of Tamkeen, as well as to obtain a broad range of views relating to

how the organisation could improve its initiatives.

o Public Consultation Engagements were conducted, whereby Tamkeen hosted a

series of consultation workshops as part of its efforts to directly engage with the

public. Through the workshops, Tamkeen aimed to understand the public’s

expectations and proposals to Tamkeen, as well as listen to a broad variety of views

relating to how Tamkeen could optimise and improve its services and offerings. The

outcome of the workshops will be an input to Tamkeen's planned projects for 2014,

as part of Tamkeen's efforts to further develop and enhance the services offered in

line with market needs.

o Several Impact Assessments which measures and analyses the impact of Tamkeen’s

schemes and activities based upon their objectives, KPIs and strategic priorities and

targets of Tamkeen).

The general findings are briefed as below: (earlier circulated to Tamkeen’s management / to

the public)

General observation across the Organisation - Tamkeen’s Systems:

The processes, communication, criteria and clarity seem to be the leading complaints by

business owners (public engagements highlighted the presence of a high level

bureaucracy involved with some projects). Tamkeen should further improve its

communication with individuals including creating specific contact persons with whom

customers (with proper customer segmentation) can coordinate regarding Tamkeen’s

initiatives. Moreover, the documentations should be revised and the ongoing process by

which the initiative continues forward should be clearer and more transparent to

customers.

General observation across the Organisation - Level of Public Awareness:

General awareness of Tamkeen among the public is high. However, many respondents

highlighted the need to further clarify how the public could benefit from its

programmes. Moreover, different segments have associated Tamkeen according to their

relevant need or requirement. Industry experts and other key stakeholders thought that

Tamkeen had far too many different programmes to offer the public, obscuring the

company’s image to an extent and what it has to offer, hence effecting its respective

operations.

Page 85: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

85

General observations for the Implementation Units - Operational Issues:

It has been raised on numerous occasions during the sessions and across different

sectors that Tamkeen has shown a lack of commitment in terms of first, terminating

programmes before their completion, and second, not meeting employment obligations

in schemes that promise employment. Moreover, almost all impact assessments and

public engagements stressed on the need for maximising the quality and impact for each

of the schemes.

The public’s awareness of Tamkeen as a separate entity from other similar or related

organisations (such as the LMRA) is now definitive. Further, there is common

understanding that Tamkeen trains locals for career advancement, trains private sector

employees, provides loans to start up business and are involved in enterprise

development. However, the awareness of specific projects and an understanding of how

they function is vague at some areas - This is mainly due to the differing requirements

from the applicant for each project individually.

Tamkeen’s focus now is on ensuring effectiveness and quality of services rather than

reaching the largest number of people. Methods are being developed to measure impact

and effectiveness of Tamkeen’s programmes. This will provide the input that’s required to

improve the existing programmes and develop new ones.

Based on the feedback from consultations with stakeholders, Tamkeen has outlined 3 pillars

to focus on for the next 3 years (2015-2017) and beyond, with a view to meet the dynamic

needs of Bahrainis and private sector enterprises: Quality enhancement, Customer-focused

approach, and a Results-oriented strategy. Quality enhancement would be demonstrated

through improved programmes, services, processes and practices.

Customer-focused approach empathises with the stakeholder, considering feedback and

opinions as valuable insights for creating impact. Finally, performance follow-up and impact

assessment for the various programmes will underpin a results-oriented strategy.

In this regard, the below gaps were common issues / gaps across the Organisation which

requires to be addressed in pursuit of achieving the set corporate strategy:

1. Monitoring/operational issues:

o Corporate culture obstacles in shifting from an “Outsourced” to an “Insourced

Model” for core activities - The idea of having a large portion of Tamkeen’s

activities outsourced seemed to be the ideal approach during its launch as it

facilitated the start up by providing different capabilities and resources at that

time to serve a wide range of clients through diverse services or offerings.

Page 86: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

86

As Tamkeen’s operations grew larger and the client’s base grew exponentially,

that lead to an increase in the size of the operational activities along with

activities related to operations and monitoring. A decision to gradually insource

Tamkeen’s operations was taken in order to have a better control over the

processes.

o A crucial requirement to introduce consistent and stable mechanism to acquire

management commitment and buy-in - The organisation is in need for the full

support of senior management in terms of consistency in direction setting and

the will to enforce the much needed changes (wherever required to create a

culture where responsibility for performance is pervasive, accountable, and

aligned).

o Currently, the Organisations’ corporate culture and department objectives are

not being fully in sync/aligned with the set strategy and performance priorities. A

consistent mechanism will more likely help to deliver consistent and growth

results to the Organisation by generating regular reminders about the values,

aspirations, and engagements that underlie Tamkeen’s success and reinforce its

respective strategy.

o However, it is noticed that the Organisations’ culture is in a way still operating

with an outsourced approach/mindset to a certain extent, hence effecting

operations and monitoring. Given the growing momentum of Tamkeen’s

activities, the Organisation will not afford to grapple with the dynamic

complexities of outsourcing model. While there are evident challenges to the

insourcing model at this stage, the various benefits that stem from this model far

exceeds any outsourcing approaches specially in terms of promoting a culture of

continuous improvement.

o From a monitoring perspective, there is a need to pay more emphasis on tracking

and resolving issues of underperformance related to all the aspects of the

projects. This ultimately impacts the ability of the Organisation to ensure

programmes were on course to achieving their objectives. Dedicating an

independent and an integrated monitoring function will be critical for effective

internal control as it will help in reducing the risk of both erroneous and

inappropriate actions.

o To ensure ongoing synchronisation of all Tamkeen’s initiatives with the

Corporate Strategy - Tamkeen’s efforts to drive its operational focus must be in a

direction congruent with the corporate strategy. The role of an independent

control/monitoring function will be crucial in terms of facilitating for effective

Page 87: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

87

evaluation and neutral feedback to ensure that the Organisation is not

disregarding a wider range of alternatives, which could align all activities to the

corporate strategic objectives.

o Quality of services delivered will need to be measured – to ensure quality

management at all levels must be embedded in programme management. A set

of indicators and tools to monitor the quality of service delivery at all levels will

need to be well-defined and systematically implemented.

o To enhance tracking Budget v/s Actual and Committed data on continuous basis -

Currently, because of the manual means of maintaining data, there is minimal

tracking (on a continuous basis) of Budgets v/s the Actual Spend and

Commitments for the year. Also, no red flags are raised if actual budget

utilisation is alarming, or to know if actual funds available are not sufficient to

meet the planned budgets and/or commitments.

2. Tools/system requirements:

o Requirements for increased resources - Considering the multitude of Tamkeen’s

schemes, there is a need to ensure adequate skilled human resources at all levels

to ensure completion of all the defined tasks. Moreover, training in key project

management areas (along with other specific skills) is needed to ensure

consistent monitoring procedures/approaches for the purpose of reconciling

what was planned for and what was achieved.

o The need to institutionalise enhanced tools and systems - Tamkeen needs to

further enhance its current tools and mechanism to collect and store core data

and disseminate information from reliable data sources. Moreover, the analytical

capacity of the systems to generate timely information to address challenges and

improve programme implementation is deemed necessary. Hence, monitoring

reports should be consistent to be further analysed, interpreted and used for

informed decision-making.

o Need for a robust and transparent Risk Management Framework: The absence of

a robust risk management framework hinders the ability of the Organisation to

prioritise activities and to meet new challenges in a structured manner. It results

in an inability in deciding on a sound basis for strategic planning and an

ineffective allocation of resources.

Page 88: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

88

o The need to develop a strong legal framework - Legal policies will need to

comprise of clear policies for taking action against unsuccessful projects with

consideration of remedial actions proposed through impact assessments and

other feasibility studies. Moreover, there is a need to develop an understanding

of risk management based on commercial activities for the purpose of effectively

evaluating alternative responses to expected and unexpected risks associated

with the operational aspects of Tamkeen’s business support schemes.

o Roles and responsibilities to be further defined with regards to the various

processes within departments – especially with the absence of clear delineation

of the functional blueprints and manuals and SLA’s showing department

dependencies causing duplication of efforts.

3. Market Intelligence Requirements:

o More emphasis to be laid on conducting due diligence/feasibility exercises for all

projects: This will have an impact on Tamkeen’s ability to effectively evaluate the

feasibility/viability of the schemes. Hence, financial cost projections will require a

thorough study to continuously ensure that proper controls and risk mitigation

concerns are managed effectively.

o Need for consistent process documentation- Strategy and planning as well as

monitoring, and the need to respond quickly to change, needs to be based on

accurate market data. Inconsistent, inaccurate and inaccessible information will

hinder sound business decisions. Hence, there needs to be a mechanism to

provide accurate, up-to-date and easily-accessible data to help in sound

evaluation and planning for the future.

With a more conscious approach to channeling the Organisation’s investment, the pressure

to execute effectively has increased. The department functional blueprint is a plan spelling

out how to accomplish the best way forward for the departments to function as a whole and

deliver the most value to the organisation while continuously raising performance in terms

of ensuring -quality offerings, customer focus and a result oriented approach.

In this regard, a well-defined functional blueprint was developed to make strategy execution

and implementation easier. This will further support an open and a well-communicated set

of priorities where departments will no longer be operating in silos. The functional

strategies will help reinforce a higher degree of alignment between the corporate strategy,

the management, and departmental teams. Moreover, it will also help in reducing multiple

priorities and instead focusing on the most critical capabilities that will enhance the

Page 89: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

89

departments’ abilities to lead and shift Tamkeen to move in the direction of a capabilities-

driven strategy.

Therefore, with the increase in Tamkeen’s offerings, the Organisations’ operational activities

has further evolved with the development and introduction of a set of tools, methodologies

and approaches which are used to continuously improve the effectiveness and efficiency of

its respective implementation functions.

Tamkeen's activities have developed over time which is reflected through comprehensive

impact studies on a number of existing flagship support programmes to measure its overall

effectiveness. However, there is still room for further improvement in order to enable the

delivery of greater value from the business operations.

As a matter of urgency, accurate data collection will need to be emphasised upon as part of

the programmes set up to facilitate monitoring. Measurable performance indicators will

need to be formalised in line with specific programme objectives to ensure that all of the

departments’ efforts are effective in terms of delivering valuable services to the target

audience, as well as achieving the greater macroeconomic benefits for which the fund was

established.

Moreover, every function’s priority will be to support the building and management of

differentiating capabilities. Therefore, it is essential to define and measure explicitly how

much value each function is delivering through:

Quantifiable impact - Measure all the function’s activities against definable business

outcomes that are aligned with the corporate strategic priorities and tied to a

specific time frame.

Clear drivers of value - Identify the sources of the function’s greatest contributions to

the Organisation such as having sophisticated analytical tools that can provide

streamlined access to data, greater scale, and the bundling of expertise.

Cost-effectiveness - Continue to track the relationship between expenses and

outcomes. measured through financial performance improvement where the

outcome—must outweigh the cost of the activity.

Internal market validation – Continuously seek out and incorporate feedback from

stakeholder to drive the function’s effectiveness and efficiency wherever possible.

To deploy rigorous processes and tools to ensure the alignment of ongoing and

proposed functional activities with the functional priorities and the operating model,

and to ensure maximum value creation. Within the context of continuing pressure

Page 90: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

90

on set budgets, this helps the departments to allocate their resources to the

activities with the highest value.

Rationale behind the suggested changes:

To create organisational effectiveness, Tamkeen needs to focus on aligning the structure

and capabilities (including organisational culture) to the strategy. The fragmentation of

functions and redundancies across the organisation is hampering Tamkeen’s drive from

achieving sustainable business results. The current model highlights that departments are

not mutually reinforcing each other and will eventually dilute their respective focus and

alignment to effectively achieve the desired tangible impact.

In this regard, the evaluation of the relationships between resources employed and results

achieved (i.e. efficiency of utilisation of human, financial and other resources, including

examination of information systems, performance measures and monitoring arrangements,

and procedures) underlined that Tamkeen demonstrated sub-optimal economical use of

resources and sound administrative principles and practices in the pursuit of the

departments’ activities in accordance with corporate best practices.

o To provide clear, consistent and accurate messages to Internal and External Stakeholders

- The current offerings at Tamkeen are portrayed (both internally and externally) as

‘human capital’ programmes and ‘business support’ programmes – as two distinct areas.

The absence of such packaged products in a way that a potential customer can easily

understand Tamkeen’s offerings as a complete solution inhibits maximum value adds.

Moreover, the public’s awareness of Tamkeen’s current offerings must be clearly

defined and communicated. The awareness of specific projects and an understanding of

how they function are at times confusing and ambiguous. This is mainly due to the

evident distinction of two separate streams of activities (HCD related and PSS related)

without a unified planning process (as highlighted in public opinion survey).

The organisation has delivered programmes to a broad spectrum of customers

throughout the Kingdom. However, overall, there needs to be a greater emphasis on

centralising and integrating the organisations efforts and activities to avoid the flow of

fragmented information both internally and externally. This will ultimately encourage

the development of an optimal operations environment within Tamkeen.

o The need for unified planning efforts across the Organisation is deemed crucial - The

inability to conduct comprehensive and robust planning exercises will impact the ability

of the organisation to evaluate the market fundamentals that support the premise

behind directing the overall activities. This direction should clarify the specific industry

or sector to be focused on, as well as the development of valid assumptions to

Page 91: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

91

determine the required programme target and the resources required to achieve the

stated objectives.

o From a monitoring perspective, there is a need to pay more emphasis on tracking and

resolving issues of underperformance related to all the aspects of the projects. This

ultimately impacts the ability of the Organisation to ensure programmes were on course

to achieving their objectives. Dedicating an independent monitoring department will be

critical for effective internal control as it will help in reducing the risk of both erroneous

and inappropriate actions.

o Quality control issues – Proper organisational structures should allow for checks and

balances; this will ensure stringent levels of quality control are embedded within the

organisation. However, with the current structure, the checks and balances in Tamkeen

are absent.

The following section outlines the new proposed programmes based on the new strategic

direction.

Conclusion

Tamkeen has, throughout the years, remained consistent in the value driven principles

which have underpinned its activities. One of the elements which remain at the core of its

strategy is the transparency and public engagements that drive its evolution. The majority of

the strategic recommendations and solutions have been derived from some sort of public

involvement. As a result, the development of new guiding principles served to better focus

the organisation towards meeting the needs of the public in general, and its customers in

particular. These principles were established as a result of the need for a new direction, one

which crystalised the ever flowing ideas and recommendations that were proposed.

The themes of Tamkeen’s new strategy are:

1. Quality: Effective and result oriented delivery

2. Customers: Satisfied customers

3. Results: Enhance productivity and sustainable growth of individuals and businesses

The strategy addresses the need for more quality driven programmes, rather than quantity.

The previous strategy led an organisation that was more driven by the type of support it

offered, rather than the people whom it supported. This intrinsic flaw reduced the

Page 92: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

92

programmes scope for impact. As a result of the more customer driven approach, customers

were divided into segments. These segments serve to allow for more focused programmes

that address segment needs rather than the needs of all customers.

Consultations with the public produced a wide array of issues that were addressed in this

strategy. The public requested improved delivery standards, and more targeted and

effective programmes. They saw a need for more information sharing and transparency, and

increased research and market studies. The need for stricter monitoring and enforcement

has been apparent to many stakeholders, as was the need for further streamlining of

operations. Awareness is critical and has often been insufficient, as has been internal

communication. Finally, the need for internal strategic alignment was highlighted and

addressed in the strategy.

The strategy also reflects an internal assessment of Tamkeen’s programmes. This

assessment compared Tamkeen’s execution of programmes relative to their original plans. It

found that planning should be improved, by attributing KPIs to each project to measure its

performance. In the planning process clear goals and objectives need to be defined and

adhered to. Project reach can be extended through appropriate public campaigns. Function

and operations should further be defined and streamlined according to the programmes.

Strict financial control is also required for each programme to ensure the budget is well

planned and execution follows this plan. Finally, programmes should focus on meeting the

market demand more, to ensure that they are addressing the areas which need attention.

In order to better serve customer needs, several target segments were created. The higher

level grouping was Individuals and Businesses. Within these, segments were defined as

follows:

BUSINESSES:

1. Startup: businesses or entrepreneurs in the process of starting up

2. Growth: existing businesses seeking growth opportunities, businesses which are

established but not yet fully independent and mature

3. Maturity: established businesses that are relatively independent, those looking for

increased revenue through diversification, investment projects relevant to mature

businesses

The programmes for each segment are as follows:

1. Startup:

o Startup funding support

o Startup consultancy and mentorship

o Encourage startup innovation

o Startup marketing and exposure support

Page 93: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

93

2. Growth

o Provide funding for technology and growth

o Support business process reengineering and innovation

o Support marketing and customer outreach

o Workforce capacity building and support

3. Maturity

o Product and service innovation support

o Internationalisation and franchising support

o Foreign Investment and joint venture support

INDIVIDUALS

1. Students: Studying at university (16 years +), as well as those who are pursuing

further academic and professional studies

2. Job Seekers/Entrepreneurs: Unemployed individuals who are looking for

opportunities

3. Employees: Employed individuals in the public or private sector

The programmes for each segment are as follows:

1. Students:

o Career guidance support

o Entrepreneurship exposure support

2. Job Seekers:

o Employment channeling support:

o Up-skilling for market alignment

o Career counselling and work readiness support:

o Entrepreneurship guidance and mentorship

3. Employees:

o On-job skills optimisation

Objectives were defined for each of these segments based on the needs which were

highlighted from that specific customer group. Based on these objectives, Tamkeen has

developed a new list of programmes. Tamkeen will continue to provide support to all

sectors, but the needs of certain sectors may differ from others, and accordingly schemes

may be altered to meet those demands.

The successful implementation of Tamkeen’s strategy will depend on the combined efforts

of internal and external stakeholders. Some specific organisational objectives which are

aimed at are as follows:

Page 94: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

94

Initiatives will need to be further aligned with the Corporate Strategy.

To eliminate fragmented activities ensure further emphasis to be laid on the core

roles and functions across the Organisation.

Tools and systems required for operational efficiency within the departments will

need to be clearly addressed.

Further empowerment of the support units’ role.

To provide clear, consistent and accurate messages to Internal and External

Stakeholders.

The need for unified planning efforts across the organisation is deemed crucial.

From a monitoring perspective, there is a need to pay attention to tracking and

resolving issues of underperformance related to all the aspects of the projects.

Quality control will require proper organisational structures which allow for checks

and balances.

Ensure regular data collection is performed with respect to customers and market

information.

Conduct impact assessments and due diligence for all projects Tamkeen undertakes.

Internal operational issues have been highlighted to ensure that the organisation

continuously improves its processes and systems and to better meet the needs which the

strategy has highlighted. This will enable Tamkeen to continue to serve the Bahraini public,

by helping to drive the growth in the public sector and the enhancement of individuals’

skills, in order to ensure that they are better suited to meet the demands of the Bahraini

labour market.

Page 95: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

95

Appendix I

Planning and Execution Measures

The following measures provides a mechanism for assessing Tamkeen’s current

programmes based on their ‘Planning’ and ’Execution’ factors.

Objectives & KPIs

An evaluation of the objectives and KPIs (operational and strategic) is crucial to the process

of understanding whether programmes exhibit the intended value add and have been

committed to the performance expected. The definition of clear objectives and KPIs is the

main driver of project definition and all the subsequent areas in planning a project.

Low Medium High

0-3 4-6 7-10

Planning - Defined

Objectives & KPIs

Objectives and KPIs

are not well

defined

Objectives and KPIs

partially reflect

programme’s

concept

Objectives and KPIs

do not serve the

programme but

compliments other

Tamkeen initiatives

Objectives and KPIs

are well defined

and reflects

programme’s

concept

Objectives and KPIs

directly reflect the

programme

strategic objective

Execution - Meeting

Objectives & KPIs /

Change in

Objectives & KPIs

Objectives and KPIs

have not been met

Objectives and KPIs

have been changed

to suit

performance

Objectives and KPIs

have been partially

met

Objectives and KPIs

have been changed

justifiably

Objectives and KPIs

have been met

Objectives and KPIs

have been adhered

to

Page 96: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

96

Scope- Project Reach

Following proper definition of objectives and KPIs, the programmes should have a well-

defined and targeted approach to defining the scope. This will enable project managers to

be more focused in their delivery and planning for project specifics.

The geographical location in this context does not mean that Tamkeen should target certain

locations and ignore others. Depending on the nature of the scheme, this could be capturing

this data for the purpose of analysing market needs, which should enable better customer

outreach through sound planning, design, customer service and marketing methodologies.

Low Medium High

0-3 4-6 7-10

Planning - Project

Reach

Undefined scope

Undefined targeted

sector, segment

and geographical

location

(Governorate)

Partially defined

scope including

some focus areas

Partially defined

targeted sector,

segment and

geographical

location

(Governorate)

Well defined scope

including all its

focus areas

Well defined

targeted sector,

segment and

geographical

location

(Governorate)

Execution - Project

Reach

Unable to measure

performance due

to lack of sufficient

data

Weak performance

Partially achieved

scope

Achieved scope

(available and

reliable data)

Page 97: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

97

Functions & Operations

Depending on the complexity of the programme, scheduling is an important project

management tool for effective delivery of projects. In addition, the development of a robust

framework that monitors different aspects of programmes is crucial. This continuous

monitoring will enable project managers to track progress and proactively react on risks and

issues.

Low Medium High

0-3 4-6 7-10

Planning -

Monitoring / Tools

& Systems

No defined

systems, tools,

processes and

monitoring

framework, thus

no performance

was tracked

No plan for the

scope

No scheduling

methodology

adopted

Basic/simple

systems, tools,

processes and

monitoring

framework,

mediocre

performance

Basic plan for the

scope

Project depends on

variables, however

these can be

managed easily

Basic scheduling

methodology

adopted

Effective/full-

fledged systems,

tools, processes and

monitoring

framework in place

that allows for

capture of

performance results

Proper plan for the

scope

Highly complex

projects that is

dependent on many

variables

Proper scheduling

methodology

adopted

Execution -

Monitoring / Tools

& Systems

No successful

monitoring

Actual vs. baseline

schedule variance

≥15%

Basic monitoring

was adopted

Actual vs. baseline

schedule variance

is 5% to <15%

Successful and

robust monitoring

process adopted

Actual vs. baseline

schedule are in sync

Actual schedule <

baseline schedule

Actual vs. baseline

schedule variance <

5%

Page 98: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

98

Financials

Budget forecasting and anticipations in any changes that might occur during the project

needs to be built on a proper methodology as this is detrimental to the success of Tamkeen

as a whole. In addition, the benefits of executed programmes should justify the allocated

funds.

Low Medium High

0-3 4-6 7-10

Planning –

Cost/Benefit

Cost exceeds the

benefits

Absence of

detailed budgeting

methodology

Cost is equal to

benefit. However

this ratio has the

potential to be

positive with

proper budgeting

Some logic is

followed in the

budgeting process

Benefit exceeds

cost

Proper budgeting

methodology is

followed

Execution – Budget

(BDs)

Actual vs. baseline

budget variance ≥

15%, whether an

increase or

decrease

Budget has been

increased/decreas

ed without CR

Actual vs. baseline

budget variance is

5% to < 15%

Actual vs. baseline

budget variance <

5%

Page 99: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

99

Customers and Market Demand

This parameter should gauge if generic demand is present in the market, and whether this

demand is considered to be real / genuine. Unjustified changes in the number of targeted

customers across the lifecycle of the project may reflect improper planning and forecasting.

Low Medium High

0-3 4-6 7-10

Planning –

Customers and

Market Demand

Low demand for

the programme:

number of

application is 0% >

target

Limited demand

within customers:

number of

application is 1%-

15% > target

Demand is high

within customers

from all segments:

number of

application >15%

above target

Execution -

Customers (in

numbers)

Actual vs. baseline

customers variance

≥ 15%, whether an

increase or

decrease

No basis to which

number of

customers have

been changed

Change in number

due to improper

planning and

evaluation or risks

Actual vs. baseline

customers

variance is 5% to <

15%

Change in number

of customers due

to reactive

situation

Actual vs. baseline

customers variance

< 5%

No change in

committed

customers

Justifiable change

in number of

customers

Page 100: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

100

Appendix II

KPI Framework:

Tamkeen has a number of mandates that are considered wide in scope and virtually

many potential activities could be classifies under each of those mandates. In addition,

many of those mandates have other responsible bodies in the economy as well. In

other words, achieving or complying with these mandates is a joint effort of a number

of organisations and thus the ultimate results cannot be attributed to a single

organisation. However, the contribution of each organisation to achieving the

mandates can be tracked down should there be the necessary data and information.

The establishment of a relevant KPI framework is therefore necessary to properly

measure the achievement of Tamkeen’s results. (See figure 4.2)

The above diagram explains the framework that Tamkeen could engage in measuring

the performance of programmes and ultimately its strategic objectives. The following is

a brief explanation of each of the above categories of performance levels.

o Operational Performance: The category pertains to the first three layers of KPIs. The

three layers are KPIs related to Input and resources that are mobilised in order to

initiate a project. Process layer is where the previous input is converted into

operational activities and thus measuring Tamkeen’s service delivery in terms of

efficiency and effectiveness of services delivered. The last aspect of the operational

performance is the output Layer which is the combination result of the previous two

layers the input and process. Output has to do mostly with direct results that are

achieved from projects’ key milestones.

Page 101: Tamkeen 2015-2017 Condensed Strategy · Startup Consultancy and Mentorship Encourage Startup Innovation Startup Marketing and Exposure Support 2. Growth Provide Funding for Technology

101

o Result/Strategic Performance: Result performance is Tamkeen’s objective oriented

performance which is based on the programme strategic effectiveness. Result

performance category is based on two types of inputs, KPI measures and market

survey.

KPI measures is categorised into two types as shown in the below figure, base KPIs

and unique KPIs. Base KPIs are indicators that are common across a portfolio of

projects and thus can be aggregated into one performance indicator for a

programme. Unique KPIs on the other hand are indicators that relate to special

attributes of the project and could not exist in any other projects. Ideally common

KPIs are more frequent in terms of usage compared to the unique KPIs.

Market Survey is also used as a tool for gauging the performance of certain projects.

These engagements are limited to direct customers of Tamkeen who have utilised

certain type of projects. The combination of both tools would ideally reflect the

performance of the projects and the objectives that it relates to.

o External/Macro performance: Tamkeen has a number of mandates that are

considered wide in scope and virtually many potential activities could be classified

under each of those mandates. In addition, many of those mandates have other

responsible bodies in the economy as well. In other words, achieving or complying

with these mandates is a joint effort of a number of organisations and thus the

ultimate results cannot be attributed to a single organisation. Reflecting Tamkeen’s

performance in a macro environment would be challenging because of the various

factors that contribute or disturb the overall outcomes. However, the contribution of

each organisation to achieving the mandates can be tracked down should there be

the necessary data and information.

This KPI exercise will focus primarily on developing KPIs and setting up measures that

will assist Tamkeen to objectively gauge its impact on different layers in the private

sector. It is worth mentioning that these KPIs can be revisited and measures can be

adjusted based on the changing environment factors or internal elements

BKPI 1

Project 1

BKPI 1 BKPI 1

Project 2 Project 3

UK

PI

1

UK

PI

2

UK

PI

3

UK

PI

1

UK

PI

2

UK

PI

1

UK

PI

2