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Good Practices and Innovations in Public Governance 2003-2011

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2008 Category 2: Saudi Arabia<br />

Lessons Learned<br />

Build<strong>in</strong>g <strong>and</strong> operat<strong>in</strong>g SADAD was full of mean<strong>in</strong>gful lessons <strong>and</strong> experiences, one of<br />

the most important lessons was that an organisation, responsible for creat<strong>in</strong>g a complex<br />

national <strong>in</strong>frastructure, that does not have proven <strong>in</strong>ternal capacities to do so, should always<br />

seek outside help. In the case of SADAD, even though SAMA had developed a<br />

major f<strong>in</strong>ancial <strong>in</strong>frastructure <strong>in</strong> the past, this project was different as it <strong>in</strong>volved all types<br />

of <strong>in</strong>dustries. Thus, SAMA had to prepare detailed market studies that clearly identified<br />

market needs; <strong>and</strong> it had to create f<strong>in</strong>ancial <strong>and</strong> bus<strong>in</strong>ess models. SAMA had to obta<strong>in</strong> the<br />

services of a top management consult<strong>in</strong>g firm to help them to def<strong>in</strong>e the objectives <strong>and</strong> to<br />

implement the system.<br />

SAMA has learned that for any new system to be successful, susta<strong>in</strong>able, <strong>and</strong> efficient, it<br />

has to be managed as a semi-autonomous or an <strong>in</strong>dependent agency, <strong>and</strong> have the ability<br />

to hire talented professionals <strong>and</strong> reta<strong>in</strong> them, as well as to approve spend<strong>in</strong>g for develop<strong>in</strong>g<br />

its bus<strong>in</strong>ess <strong>in</strong>itiatives with m<strong>in</strong>imal bureaucracy <strong>and</strong> a clear governance structure.<br />

Mean<strong>in</strong>gful change does not come easily; the <strong>in</strong>novator needs to be patient yet consistent<br />

<strong>and</strong> conv<strong>in</strong>c<strong>in</strong>g so that all the parties may ab<strong>and</strong>on their old way of do<strong>in</strong>g bus<strong>in</strong>ess <strong>and</strong><br />

<strong>in</strong>vest <strong>in</strong> a new system. In fact, the SADAD team had to develop a bus<strong>in</strong>ess plan <strong>and</strong> strategy<br />

that ensured the cooperation of different parties. Another lesson is the importance of<br />

adopt<strong>in</strong>g a top-bottom approach, especially if the concept represents a major shift <strong>in</strong> how<br />

organisations do bus<strong>in</strong>ess. The SADAD team met with the top management of each major<br />

organisation; presented the current issues about the bill<strong>in</strong>g market, <strong>and</strong> provided <strong>in</strong>formation<br />

about the benefits, bus<strong>in</strong>ess plan, <strong>and</strong> timel<strong>in</strong>e of the <strong>in</strong>itiative. The team was always<br />

well prepared for each meet<strong>in</strong>g, which means that it did all the required research, conducted<br />

all needed studies <strong>and</strong> calculations, <strong>and</strong> customized its presentation to fit the m<strong>in</strong>dset<br />

of that organisation.<br />

Another lesson is that large complex projects like SADAD, with many different participants,<br />

require a more structured project management approach, while an outsourc<strong>in</strong>g arrangement<br />

for its operation, with the right control <strong>and</strong> management, provided access to a<br />

larger pool of talent from all over the world (SADAD employees represent 16 different<br />

nationalities with heavy dependency on Saudi nationals) <strong>and</strong> reduced the risks of failure <strong>in</strong><br />

build<strong>in</strong>g <strong>and</strong> operat<strong>in</strong>g such projects.<br />

Ab<strong>and</strong>on<strong>in</strong>g the traditional reliance on male employees <strong>and</strong> heavily relay<strong>in</strong>g on female<br />

employees was an additional important lesson, <strong>in</strong> that Saudi men realized that women are<br />

as professional as their male counterparts, <strong>and</strong> can do a great job without compromis<strong>in</strong>g<br />

traditional values.<br />

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