The Izdihar Index uses an annual monitored self-assessment of 45 indicators to place a free zone on a 5-stage Maturity Curve leading to Free Zone of the Future status for fully mature free zones functioning at peak operational performance.
1.BEEC Survey
Business Excellence and Economic Contribution (BEEC) form the foundation of the Izdihar Index framework. As a first step, free zones are asked to participate in the BEEC survey. This allows the World FZO to:
- Gather general information about free zone characteristics such as location and size.
- Provide a holistic view on how business excellence is pursued in the free zone
- Get a sense of the free zone’s current economic status and growth pace, and
- Capture a baseline performance of the free zone to measure improvements along that free zone’s Izdihar Index journey, should it choose to embark on it.
The BEEC metrics are a set of quantitative data that allow free zones to rank their status in the global free zone landscape. The answers to the BEEC survey are not weighted.
There are 8 sections in the BEEC questionnaire:
- Free zones characteristics
- business excellence
- economic contribution
- Past performance
- labor
- incentives
- infrastructure and facilities
- and competitiveness
Filling them in registers a free zone for the Izdihar Index, but doesn’t carry the obligation to go further. A free zone can therefore choose to participate only in the BEEC survey and nothing more, tracking only its BEEC metrics over time. However, by taking part in the Izdihar Index, a far more constructive journey can take place.
The next stage is the Izdihar Index survey.
2. Izdihar Index Assessment
The Izdihar Index is a non- prescriptive framework built along three dimensions, each with three criteria. Within these criteria are 45 qualitative indicators that define a free zones’ maturity, relative to its full operational potential.
By filling in the relevant questions for each of these 45 indicators, every year, a free zone will be able to self-assess its own qualitative performance in holistic, all encompassing fashion. This assessment will be validated where necessary by independent expert judges, vetted and appointed by the World FZO. The annual result will be made available to participating free zones as a customised online interface.
Best in class practices
Knowledge based - deploying a knowledge-based culture as a way of life
Safe Zone - maintain & sustain safety and security of premises and people to preserve health and wellbeing
Tech Ready - deploying latest & best available technology and providing smart services to stakeholders
Innovation Entrepreneurial - providing excellent opportunities for entrepreneurial to prosper, grow and succeed
SME developer - incubating SMEs and supporting them to grow and prosper during initial set up
Innovative - investing in creativity and innovation as means to growth and prosperity
Sustainability
Environmental friendly - providing eco-friendly premises and deploying eco systems
Good place to work - becoming a desirable, productive and attractive place to work
Socially responsible - reaching out and being socially interactive and beneficial.
The results of the Izdihar Index survey will be made available to participating free zones in an online dashboard.
This dashboard will let free zones clearly see where their strengths and weaknesses lie. They will also be able to map out which areas require improvement, before planning out a strategy to address these areas.
3.Maturity Curve
The Maturity Curve is both a measurement of status and a roadmap to full potential for any free zone taking part in the Izdihar Index.
Using the 45 metrics of the Izdihar Index, a free zone is placed on its own Maturity Curve. A customised transformative roadmap is then constructed with each FZ as part of the program, guiding them on their journey to their full performance potential.
The first three levels of the Maturity Curve focus on the deployment of processes that serve the nine criteria of the Izdihar Index. Once those processes are in place, the fourth stage opens up, a qualifying period of three years during which the processes must remain effective. After that time, the fifth and final stage is reached, where automated processes ensure that the free zone will continue to function at its peak potential.
Level 1 –
implies the preference of addressing as many as possible the
elements/ guidance points given in proper documentation such as
policies/ procedures/ processes/ etc.
Level 2 –
indicates the partial deployment of the documented policies/
procedures/ processes/ etc. across all or some levels within the free
zone
Level 3 –
indicates the full deployment of the documented policies/ procedures/
processes/ etc. across all levels within the free zone systematically
and comprehensively
Level 4 –
implies the necessity to monitor and measure the outcomes of the
deployment of the drivers and generating positive results that extend
for minimum three years with proper target and benchmarks
Level 5 –
indicates the importance of automating the processes and improving
both the drivers and results based on monitoring, measuring and
learning activities
Once a free zone
has reached full maturity, it is eligible to receive Free Zone of the
Future certification from the World FZO, a seal of quality that
validates a free zone’s high performing status.
4. Awards and Certificates
Awards will be given for every new level reached in each criteria. In addition, certificates will be awarded to a free zone every time it reaches full potential (ie. top awards) in every criterion under one of the three dimensions of the Izdihar Index.
The final stage, when a free zone has received certificates in all three dimensions of the Izdihar Index, is the coveted Free Zone of the Future certification.
5. Guidance Points
In practice, and as guidance points, free zone of the future :
- Organize to conduct knowledge sharing sessions that involve relevant stakeholders, or workshops,
- Attend in house or public learning sessions,
- Use different communication tools as appropriate,
- Create shared folders to capture information and knowledge
- Allow access to concerned stakeholders when required.
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Establish, communicate and activate a knowledge management policy, a communication policy, and/ or a knowledge management process, knowledge management framework, goals/ objectives/ initiatives/ programs, and a suggestion scheme to capture stakeholders ideas, information and knowledge.
- Create data strategy (covering data insertion, storage, manipulation, analytics, insight generation), and data governance frameworks
- Creating “patenting knowledge”- Intellectual Property to preserve the rights of the free zone on what and how knowledge is protected as an asset.
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Calculate the cost of acquiring knowledge,
- Set an annual budget based knowledge,
- Establish and approve a detailed knowledge investment plan as appropriate.
- Monitor and measure achievements through performance indicators and stakeholders perception
- Study the knowledge impact on the free zone annual growth,
- Study the impact on community, innovation engagement, uplifting employees skills, and stakeholders satisfaction.
- Evolve into a data-driven organization (all decisions being made upon concrete insights from data)
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Use knowledge to create added value to stakeholders and facilitate decision making process, Improve the services
- Adopt “ big data” concept for future planning, expansion and diversification.
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Identify hazards on an going basis across the premises, sources of hazards related to personnel and goods movement safety and security,
- Conduct risks assessments related to personnel, goods, goods movement and physical security
- Set safety and security objectives, targets, programs, and controls to mitigate the risks,
- Set control measures to deal with counterfeit goods
- Set control measures to prevent unauthorized access to financial & customers’ data/ information and files
- Maintain the integrity and security of the IT system
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Conduct physical safety and security inspection of premises and goods movement at defined intervals
- Give relevant information to all included parties to enhance compliance
- Monitor companies compliance with rules and regulations related to customs and counterfeit goods
- Determine causes of non compliance occurrence related to accidents/ incidents/ goods movement.
- Defines consequences applied in case of businesses failed to follow safety and security rules and regulations
- Investigate, report both compliances and non compliances.
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Appoint/ nominate certified fire marshals, first aiders.
- Allocate assembly points, prepare evacuation plans
- Provide training and awareness
- Conduct drills,
- Maintain business continuity, security of equipment and systems
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Conduct tool box meeting/ training,
- Perform in-house training, and organize for public training
- Conduct regular safety and security meeting,
- Conduct regular safety / security risk and threat auditing,
- Implement corrective and preventive actions
- Follow up on implemented actions
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Set policy/ procedure to restrict access and prevent unauthorized entry to free zone’ premises
- Maintain and archive records related to safety and security compliance/ non compliance,
- describe internal controls related to physical security such as fencing, gates, parking, private vehicles, building structures, key control, locking devices, lightning, alarms and video surveillance cameras.
- Set control for goods entering and leaving the free zone
- Describe the process to verify the integrity of any seals attached to trucks/ containers leaving the free zone
- Define the security requirements for businesses wishing to establish in the free zone
- Define the security requirements for suppliers/ service providers entering and leaving the free zone
- Ensures that all businesses in the free zone have financial and logistical transactions/ records accessible to any relevant authority when required
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Use solar systems, wind turbines, clean energy, to generate power.
- Utilize smart mobility and public transport,
- Apply smart applications/ systems for irrigation, water supply, and power supply
- introduction of biometrics for fast access, security and save energy
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Apply smart lighting system,
- Control temperature by using smart cooling/ heating system and day light,
- Manage wastes
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Provide IT infrastructure, and appropriate backups,
- Utilize clouds, and implement business continuity plans, and disaster recovery plans
- Ease clients smart connectivity by providing IT infrastructure
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Establish a digital transformation policy/ strategy
- Deploy the policy/ strategy by shifting the way of doing business to smart applications
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Use technologies, processes, and practices to protect networks, devices, programs, and data from attack, damage, or unauthorized access.
- Utilize cybersecurity to ensure business continuity and disaster recovery.
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Set free zone vision and strategic direction to incubate and support entrepreneurs
- Prepare strategic goals, plans and measures
- Turn the vision into reality to become entrepreneurial based free zone
- Align with strategic partners to facilitate entrepreneurs own businesses growth
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Provide special incentives packages to attract and incubate entrepreneurial investors
- Facilitate issuance of licensing procedure
- Provide support and ecosystem to accelerate their growth such as incubators and smart disks
- Maintain continuous dialogue with entrepreneurial investors to solicit feedback and improve their offerings
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Help entrepreneurs to expand and/ or diversify operations to grow physically and financially
- Provide learning and training opportunities to uplift skills of entrepreneurs
- Assist entrepreneurs to be legally involved in social practices and create job opportunities
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Engage in corporate innovation of the entrepreneurs
- Encourage improving products/ services offered to market,
- Support creating innovative based culture by attracting and retaining empowered youths
- Help entrepreneurs to tap into the creativity and ideas of their stakeholders
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Collaborate and foster the environment to achieve and sustain good business results for both
- Collaborate with education units and universities to foster R&D and grow up entrepreneurs’ businesses
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Has clearly defined SMEs and quantified number of SMEs at the free zone
- Create internal and transparent rules, and commercial arbitration (dispute resolution) environment that enables SMEs to develop fairly and equally.
- Assist SMEs to be legally involved in social practices and create jobs
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Facilitate availability of and access to loan, equity, finance, and funds.
- Ensure fast payment of SMEs’ suppliers
- Assist to improve trade and investment capacity,
- Provide different fee structure for startups
- Encourage attracting and retaining talents and college graduates
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Improve SMEs competitiveness by providing business support (i.e. consulting, training to uplift employees skills, accounting, legal, advertising, marketing, courier services, technical and technology services, including testing, product upgrading, etc.).
- Provide assistance to maintain business viability not less than 3 years
- Facilitate contracts awarding to SMEs’ suppliers
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Give priority to SMEs during free zone’ procurement
- Encourage SMEs to increase sales/ exports,
- Facilitate market access to SMEs
- Engage SMEs in technological cooperation and exchange.
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Provide special set up or infrastructure for SMEs
- Reduce the cost of initial set up,
- Monitor the annual increase of number of SMEs, and their increase of employees
- Track growth of SMEs (from micro to small to medium) and to graduate from SME’ threshold to a large business
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Set up vision & strategic focus (innovation strategy)
- Incorporate innovation into the organization structure
- Defines roles and responsibilities of innovation champions
- Sense the innovation culture inside the organization
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Deploy the innovation strategy through programs/ schemes/policies, and / or process to capture and manage creative ideas and turn it into innovative products/ services.
- Define areas of focus
- Define sources of ideas such as internal, external, stakeholders, or others
- Deploy best approved creative ideas
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Set up budget for innovation, training, workshops, events and benchmarks
- Set budget for R&D (research and development)
- Allocate human resources and incentives
- Deploy the required IT and manage knowledge and projects
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Assess the financial impact on business such as revenue growth and profit growth
- Assess the non financial impact of deployed ideas on stakeholders
- Test the overall speed of innovation
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Establish and maintain and manage policy / strategy for intellectual property and patents.
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Set the right sustainable policy/ procedure/ program/ plan related to environmental management system across the entire premises of the free zone and ensure effective implementation and improvement
- Employ green technology to achieve the plan
- Manage internal information and data related to sustainability
- Optimize building design and processes to improve water and energy efficiency
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Adopt green technology to manage conversation of water and energy through the installation of energy less equipment, solar water heating, grey water system, HVAC, LED lighting, and district cooling.
- Reduce the emission of greenhouse gases such as CO2, NOx, SOx and methane to the atmosphere by optimising processes and offsetting emissions
- Promote the use of renewable energy such as solar hot water, photovoltaics (PV) wind and other available sources
- Supporting these activities with awareness and training sessions
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Reduce, reuse, recycle, and manage wastes
- Conserve natural resources through appropriate rationalization
- Support these activities with awareness and training sessions
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Use and encourage mass transportation, reduce fuel consumption, electric consumption
- Encourage usage of individual electric/ self driving vehicles or at least lead free petrol.
- Support these activities with awareness and training sessions
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Maintain greenery areas, green roofs and plants that require less water or irrigation
- Optimize irrigation methods, e.g. drip irrigation
- Raise awareness amongst community through training, newsletters, press releases, social media, and share knowledge and information.
- Involve free zone’ employees in maintaining green environment.
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Set up policies addressing equal opportunities, code of ethics, employees rights, employees medical care
- Implement the policy
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Communicate through employees appraisal/ motivation/ involvement/ transparency / freedom of opinion/ and maintaining fun. happiness at work
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Handles employees complaints/ grievance/ transparency/diversity/ freedom of religion
- Ensure employees job security, secured living, secured working environment
- Maintain fair pay, benefits, conduct benchmark, and monitor recruitment process
- Achieve gender equality and empower women at work
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Provide suitable employees accommodation, offices, facilities, transport, and safety
- Improve communication with employees through employees appraisal / motivation / involvement / transparency / freedom
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Conduct regular employees engagement/ happiness surveys
- Measure and monitor employees productivity at all levels
- Monitor trends, set targets and take corrective actions
- Conduct more awareness sessions related to happiness and engagement
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Provide equal opportunities for training, education, recruitment of nationals from the community
- Maintain diversified work force and equal gender balance
- Work with local stakeholders to ensure that tenants have effective access to local workers and support local workers engagement and development
- Assist tenants to understand local employment potential and any incentives and support available for local employment, training and advancement
- Facilitate collaboration amongst tenants and other stakeholders to enable local supply chain development
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Maintain hazards free and safe premises
- Ensure healthy lives and promote well-being for free zone community all at all ages
- Prepare HSE awareness programs,
- Manage waste disposition, CO2 reduction, energy and water rationalization
- Work with tenants to assist them to meet and exceed HSE policies and practices,
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Recruit people with determination and provide special facilities for them
- Set up a policy/ strategy to sponsor charitable events/ organizations and philanthropic activities.
- Conduct joint initiatives with partners to enhance sustainable development
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Educate community through social media, and various communication channels on the importance of giving and be responsible citizen
- Align between free zone objectives, tenants and community development
- Engage effectively with local communities
- Advise and assist tenants wishing to effectively engage with local communities and development interests,
- Monitor and measure achievements through performance indicators and stakeholders perception
In practice, and as guidance points, free zone of the future:
- Promote and encourage people to maintain good health and their wellbeing through awareness about nutrition, sports, education, and facilitate access to appropriate source.
- Educating stakeholders on nutrition, sports, education, facilities , and others through various communication channels I do not know what this means in this context.
- Monitor and measure achievements through performance indicators and stakeholders perception