Brief history of establishment, growth and development of consultancy and research in the Industrial Management Organization
During the crises period and economic stagnation of the 1950’s the need to establish an organization for empowering managers and equipping them with necessary managerial tools was mooted. This was because studies during this period showed that industrial units established by creative, enterprising and bold individuals upon entering the growth stage are not able to use traditional informal and conventional methods. In the Third Plan (1962 to 1967) of the country’s development plans before the Islamic Revolution, the policy was that with the simultaneous implementation of agrarian reforms and by transferring the capital of landowners, the foremost foundations of industrial investment be established. As a result, an organization called “the Iran Industries Guidance Center” was founded.
• Laying the foundations of the Industrial Management Organization in “the Iran Industries Guidance Center” was an initial attempt for assisting in the country’s industrial development.
• By changing its form and objective, this center started operations as “the Industrial Management Organization.” Reza Niyazmand was appointed as the first managing director of the organization (members of the board of directors of the organization comprised of representatives of the Plan and Budget Organization, the Ministry of Industries and the Chamber of Commerce and Industries).
• Laboratories affiliated to this center were transformed into “the National Standards Organization”.
• This step coincided with the establishment of the “Industrial and Mining Development Bank of Iran’ (the first private sector development bank in Iran)
• In the course of implementation of the Third Plan, there appeared the necessity of having a capable and comprehensive institution for development of the industry sector and speeding up industrialization. Therefore, in July 1967, managers of the “Center for Guidance …” established the “Iran Industries Development and Renovation Organization” (IDRO).
• In the year 1968, the Industrial Management Organization was registered under commercial law (with 50% of the shares belonging to the Iran Industries Development and Renovation Organization and 50% shares belonging to the employees of the Industrial Management Organization. After the Revolution, these percentages changed to 70 % and 30 % respectively).
The Industrial Management Organization considers itself responsible and committed to using all its potential and actual capacities in conjunction with the rest of the key beneficiaries for eliminating the existing challenges and making use of opportunities available to the people of Iran and the region.
• In the initial years of its activity the Organization utilized the services of foreign consultants especially of UNIDO affiliated to the United Nations and while offering its services, succeeded in transferring technology as well. However, on reviewing the performance of this period, the organization’s managers decided to go further than simply offering advisory services and by assisting in carrying out the recommendations and solutions, play a bigger role in initiation and realization of achievements and assume greater responsibility vis-à-vis results obtained from practicing new management techniques in transformation of institutions. In this way, the organization adopted the approach of “offering professional management consultancy services” by utilizing the services of local consultants and engineers.
• Similarly, the organization instead of operating in the form of a center with government services conducts its activity on the basis of value-creation for the employer and receiving a share of the profit obtained from sale of professional services to them. Thus, from the initial phase of its activity, the Industrial Management Organization as an autonomous organization and without utilizing government funds has made value-creation for the employer the basis of its existence.
• The organization’s management was aware of the importance and worth of human capital and the necessity of augmenting the capability of the organization’s consultants at the international level. Therefore, they sent the organization’s hardworking and committed experts to courses of several months to several years duration of reputed international schools and universities (such as the Wharton School, Harvard University, MIT University and other reputed centers of research and consultancy all over the world) for attaining specialization, knowledge and skill, academic qualifications as well as for developing and fostering international relations with foreign consultants and researchers. The return of educated individuals and the experiences gained from this unique investment led to the organization creating high competence and capability in offering useful services that perhaps matched those of the international competitors.
• From the latter part of the 1960’s decade, the organization launched its educational activities by organizing joint courses in “Training the Manager” with the University of Pennsylvania’s Wharton School of Business. These courses were organized at the post-graduate level and its degree certificate was awarded by the Wharton School that has always enjoyed a ranking of first to third among the world’s colleges of management. Until the victory of the Islamic Revolution, the organization conducted these courses on eight occasions.
• The Organization’s effective presence in the international arenas including its role in establishment of the Asian Productivity Organization.
• broad interaction with the world’s superior theorists in the field of management including Peter Drucker.
• utilizing the services of first-class international experts such as Russell Ackoff.
• changing the internal managerial systems of the organization that was of the most pioneering of systems of its kind and of its time implemented in the country.
• these steps caused the services development activities to continue with greater speed and the Industrial Management Organization to be transformed into a potent arm for the development and transformation of establishments; for changing traditional management approaches in the country as well as development and promotion of scientific approach to management and likewise, training and development of competent managers.
• In the years following the Islamic Revolution and during the Imposed Iran-Iraq War, the Industrial Management Organization in step with the changes in the country’s industrial environment, this time with its presence as a “research and expertise wing” alongside revolutionary institutions including the Mostazafan Foundation, the Construction Jihad institution and the War-affected Foundation, strove to fulfill its national duty. Towards this end it proceeded with carrying out relevant research projects and endeavored to exploit the specialist potentials for solving the country’s problems during the crises.
• With the end of the Imposed War and beginning of the reconstruction period, the Industrial Management Organization played a national role in paving the “route to scientific management in the country” as well as in “acquainting the country’s executive managers with applied concepts and methods and making use of knowledge of management.” This task has been realized through playing a role in “implementation of industrial development projects”, “spelling out the needs of the country’s scientific management,” “securing these needs by promoting novel approaches to management,” “professional and applied training of managers” and likewise, “ offering multi-dimensional, complex and packaged services” in establishing the country’s industrial units.
• In the latter part of the 1980’s, by relying on the experience gained from organizing “Manager Training Courses” the Industrial Management Organization designed the MBA – Master of Business Administration – course for the first time in the country. Following receiving approval of the Cultural Revolution Council and the Ministry of Sciences, it has conducted this course officially since the year 1994.
• During the reconstruction period, the presentation of more than 2000 management consultancy and research projects alongside spelling out many of the national projects as well as extensive and diverse educational activities that too in the form of an establishment that is autonomous and independent of government funding, has made the Industrial Management Organization a landmark organization with far-reaching national and regional impact.
• Transferring knowledge and methodology of ISO 9000 standards of quality assurance (ISO 9001, 9002 …) and helping in the promotion and dissemination of culture of quality in Iranian organizations; training and development of management consultants in this sphere and starting the installing of ISO standards in institutions, manufacturing units and various industries throughout the country.
• the Industrial Management Organization Publications started its operations under license of the Industrial Management Organization in the year 1995 with the aim and objective of developing the science of management through publishing management and scientific books. Very quickly it established its position in the ranks of the reliable publishers in the field of management such that most of the Publication’s books were made use of at various levels of management education. The outcome of the Organization’s Publications bureau during this period was production and publication of more than 300 books in different fields of management including human resources, strategy and transformation, financial management, management and leadership, production and operations, information technology, entrepreneurship and knowledge management.
• the Industrial Management Organization is always in search of novel and effective activities, programs and methods that can help in “developing the country’s management potential.” These activities also include establishing the “Managers’ House” in February 1997. In general, the objective of establishing the Managers’ House was the development and perpetuation of lifelong learning and ‘fostering the bond and relationship between senior managers of economic organizations and institutions.’
• From the year 1998, the Industrial Management Organization has started the program of “the Top Hundred Companies of Iran – IMI 100). In the first year, the rankings were done by using the financial statements of companies and solely with one criteria and the top hundred companies were named in terms of the criteria of sales / income. In subsequent years, attempts were made every year to increase the number of criteria, the IMI-100 database to become more comprehensive and a larger number of more applied reports and analyses to be made available to decision-takers in the country and at the international level. In this manner, the Industrial Management Organization by making available transparent and useful statistical data and information about the economic institutions of the country, has offered a brighter picture of the country’s business atmosphere. Moreover, it has assisted managers, policy-makers and researchers to obtain a better understanding and perception of the scale, financial and economic structure of the country’s big industries and economic establishments.
• In order to create synergy and an organization for developing the capacity of the country’s management consultancy industry, the Industrial Management Organization embarked on identifying a wide spectrum of the country’s management consultants.
• The independence of some colleagues and consultants of the Industrial Management Organization and establishing the first successful Iranian consultancy companies as well as abroad (for instance, Dr. Hossein Bani Asadi in the Bonyad Sanati Iran Company, Jalal Behbahani, Keyvan Emami and Faramarz Adl in the Iran Industry and Management Company etc …)
• In the year 1998, in line with its mission of developing the country’s management capacity, the Industrial Management Organization with its financial and moral support, played a significant role in establishing “the Iran Management Consultants Association”.
• Transferring knowledge and methodology of ISO 9000 standards of quality assurance (ISO 9001, 9002 …) and helping in the promotion and dissemination of culture of quality in Iranian organizations; training and development of management consultants in this sphere and starting the installing of ISO standards in institutions, manufacturing units and various industries throughout the country.
• the Industrial Management Organization Publications started its operations under license of the Industrial Management Organization in the year 1995 with the aim and objective of developing the science of management through publishing management and scientific books. Very quickly it established its position in the ranks of the reliable publishers in the field of management such that most of the Publication’s books were made use of at various levels of management education. The outcome of the Organization’s Publications bureau during this period was production and publication of more than 300 books in different fields of management including human resources, strategy and transformation, financial management, management and leadership, production and operations, information technology, entrepreneurship and knowledge management.
• the Industrial Management Organization is always in search of novel and effective activities, programs and methods that can help in “developing the country’s management potential.” These activities also include establishing the “Managers’ House” in February 1997. In general, the objective of establishing the Managers’ House was the development and perpetuation of lifelong learning and ‘fostering the bond and relationship between senior managers of economic organizations and institutions.’
• From the year 1998, the Industrial Management Organization has started the program of “the Top Hundred Companies of Iran – IMI 100). In the first year, the rankings were done by using the financial statements of companies and solely with one criteria and the top hundred companies were named in terms of the criteria of sales / income. In subsequent years, attempts were made every year to increase the number of criteria, the IMI-100 database to become more comprehensive and a larger number of more applied reports and analyses to be made available to decision-takers in the country and at the international level. In this manner, the Industrial Management Organization by making available transparent and useful statistical data and information about the economic institutions of the country, has offered a brighter picture of the country’s business atmosphere. Moreover, it has assisted managers, policy-makers and researchers to obtain a better understanding and perception of the scale, financial and economic structure of the country’s big industries and economic establishments.
• In order to create synergy and an organization for developing the capacity of the country’s management consultancy industry, the Industrial Management Organization embarked on identifying a wide spectrum of the country’s management consultants.
• The independence of some colleagues and consultants of the Industrial Management Organization and establishing the first successful Iranian consultancy companies as well as abroad (for instance, Dr. Hossein Bani Asadi in the Bonyad Sanati Iran Company, Jalal Behbahani, Keyvan Emami and Faramarz Adl in the Iran Industry and Management Company etc …)
• In the year 1998, in line with its mission of developing the country’s management capacity, the Industrial Management Organization with its financial and moral support, played a significant role in establishing “the Iran Management Consultants Association”.
• In this decade too, the Industrial Management Organization in order to expand its specialized consultancy and research capacity in the course of a professional employment and interview process, embarked on employing thirty young and elite manpower of the country. These individuals, after going through the tough process of selection and evaluation, were employed in the organization on full-time basis and as per the “Mobilize Plan One” program. They attended a two-year continual specialist-professional (MBA and consultation) course of internship and training and after a one-year stint as associate experts were formally employed in the organization.
• With the end of the Imposed War and beginning of the reconstruction period, the Industrial Management Organization played a national role in paving the “route to scientific management in the country” as well as in “acquainting the country’s executive managers with applied concepts and methods and making use of knowledge of management.” This task has been realized through playing a role in “implementation of industrial development projects”, “spelling out the needs of the country’s scientific management,” “securing these needs by promoting novel approaches to management,” “professional and applied training of managers” and likewise, “ offering multi-dimensional, complex and packaged services” in establishing the country’s industrial units.
• In the latter part of the 1980’s, by relying on the experience gained from organizing “Manager Training Courses” the Industrial Management Organization designed the MBA – Master of Business Administration – course for the first time in the country. Following receiving approval of the Cultural Revolution Council and the Ministry of Sciences, it has conducted this course officially since the year 1994.
• During the reconstruction period, the presentation of more than 2000 management consultancy and research projects alongside spelling out many of the national projects as well as extensive and diverse educational activities that too in the form of an establishment that is autonomous and independent of government funding, has made the Industrial Management Organization a landmark organization with far-reaching national and regional impact.
• Merging the Human Resources Studies and Productivity Institute with the Industrial Management Organization in the year 2003.
• Conferring National Award of Organizational Excellence in the year 2003. This award is based on evaluation of management approaches and systems of organizations and the results of their successes and a group of elite evaluators on the basis of “organizational excellence model” ascertain the situation of every organization against the criteria of achieving the expectations of the organizational excellence model. This award is conferred with three objectives in mind: 1. Creating a competitive environment for excellence of organizations; 2. Encouraging organizations to implement self-evaluation and identify the strong points and areas of improvement; 3. Creating an atmosphere for the successful exchange of experiences.
• Similarly, organizing the “Conference on Development of Human Resources” since the year 2003. The objective of this conference – which is the country’s most important scientific event in this field – is building culture for raising the position of human resources management in Iranian organizations and institutions and preparing the groundwork for development of human capital. In the course of this conference, the organization has held a series of conventions on “the sphere of learning of human resources managers” in order to assist in the program of theoretical discussions and present the successful experiences of companies and organizations in various provinces.
• the Industrial Management Organization’s assistance and support in establishing the Iran Human Resources Management Association and creating synergy in implementation of The National Award of Organizational Excellence, the Conference on Human Resources Development and in promoting the culture of human resources management throughout the country.
• In this decade too, for expansion of its expert capacity the Industrial Management Organization employed more than thirty young and elite of the country’s manpower in the “Mobilize Plan Two”. After going through a process similar to “Mobilize Plan One” they were employed by the organization on contractual and full-time basis.
• In this decade too, the Industrial Management Organization embarked on strengthening and empowering its previous team of experts, researchers and consultants and offered financial scholarships and education leave for its hardworking and hourly-basis employees. In this period, a number of the organization’s employees attended the courses at the specialized doctorate, professional doctorate and post-graduate levels.
• Since the year 2004, a number of employees attended the specialized doctorate (PhD) course organized by the Industrial Management Organization in collaboration with Bordeaux University of France.
• Since the year 2007, a number of employees attended the professional doctorate course (DBA) with the same aforesaid conditions.
• A number of employees too carried on with their academic education at the specialized doctorate level (PhD) in universities inside the country (government and open) or attended post-graduate programs in fields that were not offered by the organization.
• Since the year 2009 too, with the objective of updating knowledge of the alumni students, the organization’s employees attended new specialist courses (Post-MBA, Post DBA and Post Doc) that were offered in various fields of specialization.
• From the year 2012, with regard to the needs of industry and decision-making industry, mines and commerce organizations, the Industrial Management Organization as a professional, autonomous and pioneering organization in the field of rating companies and in line with its mission and assignment, has commenced rating of engineering, logistics and manufacturing companies (EPC Rating) in the industrial and mining, power station, oil, gas and petrochemicals sectors. Towards this end, a memorandum of agreement was concluded between the Industrial Management Organization and the Ministry of Industry, Mines and Commerce. With a view to its track record and experience in the field of designing and implementation of rating in various fields and subjects, the Organization was chosen as the official authority.
• Since the year 2015, the Industrial Management Organization has implemented the procedure of National Energy Management Award on the basis of joint memorandum of understanding with the “ Renewable Energies and Electrical Energy Productivity Organization”, “Fuel Consumption Optimization Company,” “Department of the Energy Technology Development Sector of the Science and Technology Deputy of the Presidency” and “Iran National Standards Organization” after conducting two years of studies and synergy between these four primary institutions.
• As a professional and autonomous organization having experience and excellent track record in promotion and indigenization of management systems and models including rating of companies, the Industrial Management Organization was selected on behalf of the Ministry of Industry, Mines and Commerce, as the trustee of organizing, empowering and raising quality in the elevator industry. Moreover, since the year 2017, with the agreement and cooperation of all beneficiaries and those involved in this sector (among them the machine-tools and equipment manufacturing department of the Ministry of Industry, Mines and Commerce, Iran National Standard Institute, inspection companies, Iran Elevator and Escalator Syndicate, relevant unions and guilds, State Construction Engineering System Organization, city municipalities of the Ministry of Interior, Fire Fighter and Safety Services Organization, universities and relevant educational institutions and likewise, contractors, manufacturers and producers and technicians in this field), it began implementing the process and evaluation model of the elevator companies.
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