The Corporate Excellence Award was instituted by MAP in 1982 with the sole aim to recognising and honouring companies showing outstanding performance and demonstrating progressive and enlightened management practices.
FOR ASSESSMENT PURPOSE THE LISTED COMPANIES HAVE BEEN DIVIDED INTO TWO CATEGORIES - VIZ:
-- Business & Industrial Category
-- Financial Category
THE BUSINESS AND INDUSTRIAL CATEGORY COMPANIES HAVE BEEN FURTHER SUB-DIVIDED INTO FIVE SECTORS, NAMELY:
-- Textile and Allied sector (Cotton, Synthetic, Rayon, Jute and Woollen Textiles)
-- Chemicals and Allied Sector (Chemicals, Pharmaceuticals, Fuel and Energy).
-- Food and Allied Sector (Food, Sugar, Banaspati, Tea and Tobacco).
-- Engineering and Allied Sector (Engineering, Auto and Allied Engineering, Cables and Electrical Goods)
-- Miscellaneous Sector (Glass & Ceramics, Leather Goods, Garments, Construction etc).
Similarly, in the Financial Category all the companies have been sub-divided into the following three sectors.
-- Commercial Banks Sector (includes all listed Commercial Banks.)
-- Non-Banking Financial Institutions Sector (Includes Investment Banks, Leasing Companies, Securities Companies, Modarabas and Mutual Funds).
-- Insurance Sector (Includes all Insurance Companies).
PHASE 1
SHORT-LISTING ON DIVIDEND PAYMENT:
THIS IS THE QUALIFYING CRITERION OF FIRST SHORT-LISTING COMPANIES FOR THE SECOND PHASE CONSISTING OF DETAILED FINANCIAL EVALUATION AND ENVISAGES:
a)Payment of at least 10% dividend (Cash or Bonus Shares) each year during the last three consecutive years.)
b) Payment of at least aggregate of 30% dividend (Cash or Bonus Share) over the last three years.
The procedure of sending management appraisal questionnaire to the short-listed companies has also been modified and now the questionnaire is being sent to all the listed companies but only companies qualifying the new primary criteria, as mentioned above, will be eligible for contesting for the second phase of assessment.
PHASE 2
DETAILED FINANCIAL EVALUATION:
The financial performance assessment of the companies starts simultaneously when the management appraisal questionnaire is sent to the companies.
THE FINANCIAL ASSESSMENT IS DONE ON THE BASIS OF THE FOLLOWING PARAMETERS:
-- Business & Industrial Category
-- Financial Category
The financial Category Companies have been divided into three sectors in view of their different natures of business. Consequently their ratios differ for financial assessment. These ratios have been established with the assistance of Pakistan Credit Rating Agency (PACRA) and Pakistan Insurance Corporation.
THESE RATIOS AND THE POINTS ALLOTTED FOR THEM ARE AS FOLLOWS:
-- Non-Banking Financial Institutions (NBFI's) (Includes Investment Banks, Leasing Companies, Securities Companies, Modaraba, Mutual Funds)
-- Time Weightage of Ratios
THE FOLLOWING WEIGHTAGE HAS BEEN ASSIGNED FOR THE PURPOSE OF DERIVING THE ABOVE FINANCIAL PARAMETERS:
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Year n 4
Year n-1 2
Year n-2 1
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Points scored by a company under the above parameters are added to calculate the total points earned out of a maximum of 50 points allocated for financial performance.
PHASE 3
MANAGEMENT APPRAISAL QUESTIONNAIRE:
The next step in the assessment process is appraisal of management practices of companies qualifying the financial assessment. As mentioned earlier, only those companies are eligible to complete the questionnaire, which qualify the primary criteria of 10% dividend pay out each year during the last three years or an aggregate pay out of 30% dividend.
The complete questionnaires are examined at two stages. Firstty, by an in-house committee comprising of senior management practitioners; secondly, by the panel of experts formed by the Corporate Excellence Awards Sub-committee.
The committee mentioned above marks the responses of the questionnaire. These marks are re-examined by the panel of experts. Top five companies in each sector of the Business & Industrial Category and Financial Category are short-listed on the basis of the aggregate marks earned in the assessment of financial and management performance. These are two aspects for adjudging a company's corporate performance. The weightage of financial and management appraisals is 20:80 respectively.
THE TOTAL POINTS AND ALLOTTED TO EACH ASPECT ARE AS FOLLOWS:
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Financial Assessment: 50
Management Practices Appraisal: 200
Total: 250
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In order to facilitated the in-house committee and the panel of experts in marking the 100 questions under eight sections of the management appraisal questionnaire on a wider range, each question has been allocated 10 marks.
AS SUCH, THE 100 QUESTIONS HAVE BEEN EARMARKED 1000 AS PER FOLLOWING DETAILS:
PHASE 4
TOP MANAGEMENT MEETINGS:
On the basis of in-housing assessment, three highest scoring companies one selected for site visit and detailed meetings with top management of each selected company. The purpose of these meetings is to verify and obtain a vital, face-to-face view of the responses to questionnaires. During these meetings the MAP teams not only discuss their management practices but also inspect the evidence of claims made in the questionnaires as well as policy documents.
After the top management meetings the team members re-examine the questionnaires of the visited companies and make adjustments in the assigned marks in the light of their findings.
PHASE 5
FINAL TABULATION OF RESULTS:
When the final assessment of management practices on the basis of 1000 marks are received at the MAP Secretariat, the assessment process concludes. The next and final step is tabulation of the results on the basis of 250 points, 50 for financial evaluation and 200 for management appraisal, thus, maintaining the 20:80 weightage for each aspect. The final tabulation is presented to the MAP Executive Committee by the Corporate Excellence Awards Sub-Committee for approval and announcement.
Awards
Previously, there were two Excellence Awards, one each for the overall winner in the business-industrial and financial companies categories, together with seven Certificates of Excellence.
Under the revised Awardes process, there is one Circulatory Trophy for the overall winner in each category ie Business-Industrial Category and Financial Category. In addition, there will be smaller trophies for the top companies in the eight sectors of both the above categories. There will be certificates of excellence for the runners up of each sector.
THE NUMBER OF AWARDS AND CERTIFICATES UNDER NEW SCHEME ARE AS FOLLOWS:
-- Two large Circulatory Trophies for overall winners
-- Eight small take-away trophies for sectoral winners
-- Eight Corporate Excellence certificates for runners up in each sector.
-- To Lead the Change Process Towards Best Management Practices
Management Association of Pakistan is committed to excellence in management through human capital development, creating awareness and recognising best management practices to enhancing the competitiveness.
1. Mr. Waqar A. Malik (Chairman) Chief Executive ICI Pakistan Limited
2. Mr. Asif Qadir (Co-Chairman) President Engro Asahi Polymer & Chemicals Limited
3. Mr. Jahangir Bashir Nawaz (Member) Chief Operating Officer National Industrial Parks Development Company
4. Mr. S. K. Mehdi (Member) Principal Sharing Knowledge
5. Mr. Robert Jones (Member) Director Adcom (Private) Limited
6. Mr. Munawarali H. Cassoobhai (Member) Partner KPMG Taseer Hadi & Company
7. Mr. Ovais Khan (Member) Director Ferguson Associates (Private) Limited
8. Mr. Tariq Kaleem (Member) Principal Defence School of Business Education
9. Mr. Shafiq A. Siddiqui (Member) Chief Executive Buxly Paints Limited
10. Mr. Adnan Rizvi (Member) Director KPMG Taseer Hadi & Company
11. Mr. Farooq Hassan, Executive Director Management Association of Pakistan
12. Mr. Muhammad Anees, Secretary Management Association of Pakistan
Conclusion
The new Award process has been developed with the sole aim to provide the companies with greater opportunities to win the MAP awards and certificates. This system is expected to encourage companies to increasingly participate in the awards contest and adopt international best management practices that are the basis of the MAP Corporate Excellence Awards.
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Ratios Points
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1.Return on Capital Employed 10
2.Asset Turnover Ratio 10
3.Earning Per Share 10
4.Acid Test/Quick Ratio 10
5.Ratio of Market Value to Book Value of Share 10
Total 50
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Ratios Points
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A) Commercial Banks
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1.Return on Capital employed 10
2.Asset turnover Ratio 10
3.Ratio of Net Impaired lending to Equity 10
4.Ratios of Liquid Assets to (Deposits + Borrowings) 10
5.Ratio of Total Finance to (Deposits + Borrowings) 10
Total 50
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B) Insurance Companies
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1.Retrun on capital Employed 10
2.Asset Turnover Ratio 10
3.Premium solvency Ratio 10
4.Ratio of Net Investment Income to Premium Earned 10
5.Combined Ratio 10
Total 50
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Section No of No of
Questions Marks
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1.Corporate Governance 16 160
2.Strategic Planning 22 220
3.Leadership 06 60
4.Social Responsibility 07 70
5.Customer & Market Focus 09 90
6.Human Resource Focus 25 250
7.Operation Management 08 80
8.Information Management 07 70
100 1000
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1.Return on Capital Employed 10
2.Asset Turnover Ratio 10
3.Ratio of Net Impaired lending to Equity 10
4.Ratio of Liquid Assets to Total Funding 10
5.Ratio of Total Debt to Equity 10
Total 50
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