Strategy Development for Hormozgan Steel Group Companies with a Convergence and Organizational Excellence Approach
Specialized strategy development sessions for Hormozgan Steel's subsidiary companies were held, centered on the Industrial Engineering Department and within the framework of the CEO's directive to form a "Group Companies Steering Working Group," with the support and active participation of the working group's members—particularly the Deputy for Procurement, the Deputy for Technology, and the CEOs and senior managers of the subsidiary companies.
Marzieh Hamidi, Head of Industrial Engineering at Hormozgan Steel, described the purpose of these sessions—held at Hormozgan Steel’s Technology and Innovation Observatory—as aligning strategies, precisely defining missions, and achieving maximum synergy across the group’s value chain. Explaining the approaches and objectives of these strategic meetings, she stated: “Given the Industrial Engineering Department’s proactive and voluntary approach to maximizing opportunities for establishing systemic and foundational infrastructures, this department has placed the specialized and facilitating role in the strategy development process of the group companies on its agenda. The central goal of this initiative is to achieve systemic integration, full alignment of subsidiary companies’ missions with the parent company’s macro orientations, development of managerial competencies, and laying the groundwork for enhancing organizational maturity across the entire group.”
Strategy Development; A Tool for Convergence of Hormozgan Steel Group Companies
She considered one of the fundamental achievements of strategy development to be the clear demarcation of businesses and said: “Group companies should not become competitors to one another; rather, they must achieve value-creating synergy across the entire chain by complementing shared capacities.” Accordingly, the strategic orientation (including the statement of raison d’être, mission, vision, and organizational values), as well as strategies, key performance indicators (KPIs), and strategic actions for each company will be determined and, after approval by the steering working group, communicated.
Hamidi, clarifying the governance structure and separation of responsibilities in the strategic management process, emphasized: “In this management model, the Industrial Engineering Department, as the owner of the strategic management process at Hormozgan Steel, is responsible for designing the methodology, standardizing templates, leading specialized workshops, integrating documentation, and establishing the strategic performance evaluation system. On the other hand, the Group Companies Steering Working Group, formed pursuant to the CEO’s directive, as the supreme decision-making and corporate governance authority, is tasked with reviewing and final approval of subsidiary companies’ strategic orientations and roadmaps and exercising supreme oversight over the realization of their macro objectives.”
Leveraging Mobarakeh Steel’s Experience in Group Strategic Management Governance
Referring to the valuable experiences of the Mobarakeh Steel Group in holding governance, she added: “Mobarakeh Steel has already successfully traversed this maturity path and has consolidated the ownership of strategy within the structure of the ‘Strategic Development and Technology’ Deputy; at Hormozgan Steel, this process is being pursued coherently with the close cooperation of subsidiary companies and in full coordination with the steering working group.”
The Head of Industrial Engineering at Hormozgan Steel noted: “In order to enrich the methodology and align with best industrial practices, the valuable knowledge and experience of Allahverdi Taghavi, strategy advisor to Hormozgan Steel, who has a valuable background in developing strategies for the Mobarakeh Steel Group and its subsidiaries, has been utilized. This approach is in line with the major achievements of the ‘Mobarakeh Steel Group Enterprise Architecture Project’ in 1401 (2022–2023); a project during which business model canvases were developed to identify companies’ current position and map their future model in the market.”
Organizational Excellence; A Balanced Set of Foundational Projects Toward Achieving the Golden Statue Level by 1407
Hamidi, referring to Hormozgan Steel’s success in winning the “Silver Statue of the National Organizational Excellence Award” last year, described the organization’s movement vision as achieving the “Golden Statue of Organizational Excellence by the 1407 horizon” and stated: “Elevating the level of excellence in the Hormozgan Steel Group is a multidimensional process relying on a coherent and balanced set of transformational and infrastructural measures and projects, and is never limited to a specific project. Within the framework of the macro policies of the ‘Exalted Mobarakeh Steel Group’ and in line with the company’s documented plans, strategy development for subsidiary companies is only one of the fundamental pillars of transformation which, alongside other priority and foundational projects (such as establishing a sustainability management system, developing a roadmap for business capability development, establishing a productivity management system, and establishing a technology and innovation management system), provides a solid foundation for deepening excellence approaches and enhancing core competencies across all pillars of the organization and subsidiary companies.”
Hamidi concluded: “Monitoring and evaluating the progress of subsidiary companies’ strategic objectives is carried out continuously in the form of regular quarterly or semi-annual periods, centered on the companies’ steering working group and with the cooperation of the Industrial Engineering Department, and its analytical reports are presented for decision-making and applying intelligent revisions, so as to guarantee the dynamism, agility, and full realization of the Hormozgan Steel Group’s vision.”