Emirates National Oil Company
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Emirates National Oil Company (ENOC) has attained several impressive milestones in customer satisfaction, promoting Emiratisation, enhancing operational efficiency and driving business diversification including geographic expansion through the application of the Balanced Scorecard (BSC), a globally adopted strategy execution and performance management tool.
Since the application of BSC as the vital driver of ENOC’s Strategy Execution and Performance Management programme, the organisation has recorded an improvement in overall performance, with Environment, Health and Safety (EHS) recording a 20 percent increase between the years 2010 and 2012. Group customer satisfaction levels increased from 76 to 79 percent during the same period, while Emiratisation, supported by strategic UAE National empowerment programme, increased from 20 to 33 percent. Underlining ENOC’s commitment to EHS, the organisation recorded zero fatalities in 2012, lowered gaseous emissions by a targeted 20 percent and reduced solid waste generation by 5 percent.
Over the past three years, ENOC also adopted several global best practices that underline the company’s operational excellence programme. These include the Enterprise Risk Management (ERM) programme and an industry-defining Code of Business Conduct (COBC), which not only underscores ENOC’s core values of teamwork, integrity, transparency, respect and customer focus, but also highlights its corporate governance standards with the highest emphasis placed on ethical practices and organisational integrity.
Saeed Khoory, Chief Executive Officer of ENOC, said: “As a wholly-owned entity of the Government of Dubai, upholding the highest values across all aspects of our operations is of utmost priority for ENOC. In line with the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, to promote all-round organisational excellence across all entities, we are focused on continuous improvement of our operations by adopting the best international tools.”
He added: “The application of the Balanced Scorecard as part of our Performance Management programme has brought tangible improvements and benefits to our organisation. Today, it serves as a gold standard against which to benchmark our long-term goals for business growth and diversification, customer satisfaction, employee engagement, product and service delivery, Emiratisation and corporate social responsibility.”
Salah Galadari, Director - Business Planning & Performance Management of ENOC, explained: “Adopting Balanced Scorecard was a pivotal pillar in clearly streamlining our strategic growth orientation. It not only enabled us to align our strategic objectives but also to undertake measurable performance management initiatives that align people, processes and resources for their most efficient deployment and operational excellence.
“The BSC approach enabled us to build synergy and co-operation among the different group companies keeping an unwavering focus on our strategic priorities which has helped in effective management of this diversified entity with a strong geographic footprint across the Middle East, Africa and Asia. BSC is at the core of our future strategy execution initiatives and we are confident that organisation will achieve its long term objectives and strategic goals.”
He added: “Today, we can assertively state that our BSC programme has enabled us to improve the customer experience, and also clearly establish ENOC as a company that is committed to the welfare of all its stakeholders through an intelligently structured and embedded CSR strategy. We continuously initiate service and product delivery improvement programmes, never compromising on our environmental, health and safety standards.”
The strategic alignment achieved through the adoption of BSC enabled ENOC to set clear performance targets, focus on critical business areas, and benchmark performance measures against customer satisfaction. It also helped in integrating seemingly disparate elements of the company’s operations to become more customer-oriented, promoting sustainability, CSR, quality and teamwork. The approach helped us to shorten customer response time, reduce product launch times and helped in driving long-term value creation.
Among the significant benefits of ENOC’s application of BSC in driving its customer focus is the formation of strategic alliances that add value to the end-users. ENOC has consistently endeavoured to meet, manage and exceed customer expectations, with the primary focus on meeting the growing demand for fuel in Dubai, to meet the city’s rapid growth.
Over the years, ENOC also launched several initiatives aimed at supporting and promoting Emirati skills through a comprehensive National Development Programme. ENOC’s Emiratisation programme has five proficiency levels - Imtiaz, Mawaheb, Ajyaal, Tadreeb and Tatweer - which focus on developing the functional, behavioural, professional, managerial and leadership skills of the National workforce.
The Emirati employees are chosen for different career development pathways based on their competencies and a gap-analysis process. This has been instrumental in attracting young talent, nurturing them and assisting them to evolve as full-rounded professionals.
Another key pillar of the BSC approach has been to promote organisation-wide learning and growth, which is accomplished through advanced knowledge management and information systems; hiring and retaining competent people; and creating a highly innovative and engaged workplace.
Focused on business diversification and expansion, ENOC has clearly defined its niche in the UAE through refining, marketing, terminalling and fuel & gas marketing businesses, in addition to setting a clear market leadership in the retail sector. Subsequently, the company has expanded its operations in many international markets. In the past three years alone, ENOC has expanded to Iraq, Sudan, Saudi Arabia, Lebanon, Turkey and Ethiopia. ENOC Lubricant, meanwhile, has extended its distribution network to more than 30 countries across the Middle East, Africa and the Indian subcontinent, as well as South East and Central Asia.
This builds on ENOC’s international footprint: trading, marketing of petroleum products, terminal operations and retail fuel station network management across the Middle East, Africa, Indian Subcontinent, South East and Central Asia.
ENOC’s ERM programme, initiated since 2011, enables early detection and proactive management of strategic and operational risks, improving accountability, decision making and business outcomes. Gradually implemented across the organisation, the ERM framework is in line with globally acclaimed ‘ERM Best Practices’ such as the COSO ERM Framework and the ISO 31000 standards. The ERM framework encompasses the alignment of risk appetite and strategy, enhancement of risk response decisions, identification of multiple cross-enterprise risks, capitalisation of opportunities and productive deployment of capital.
Rolled out in 2012, ENOC’s COBC is today an integral part of the company’s ethics, culture and compliance programmes, setting guidelines for the organisation’s every-day business conduct and applicable to all stakeholders. The Code comprises various aspects related to the ethical conduct of day-to-day business activities, including fair treatment, environment, business courtesy, intellectual property and information use, as well as trademarks and records management.
Backed by efficient internal processes such as accelerated capital investment programmes, optimised supply chain resources and asset utilisation, increased returns on investment, and maintaining a sound financial position, ENOC is today one of Dubai’s leading government entities – setting an example and model in operational excellence.