WHAT DID IEL GRADUATES ASK HALF A CENTURY LATER?
I met up with some high school friends, well, to be precise, they invited me. They had prepared some thought-provoking questions, so I shared my answers.
I’ve written them down for you here and included a shortened version of the video as an attachment.
QUESTION 1: Company management, the evolution of management styles over the years, and future projections.
QUESTION 2: How can a company expand from Türkiye to the global market? How do you build a global business model?
This week, I’m sharing my answer to the first question. Hopefully, I’ll cover the second one next week.
Note: This article was originally punlished on February 23,2025.
In essence, as the business grew, how did I change and develop? That’s what I want to share with you. I changed. Why? Because if I hadn’t, my expanding business would have outpaced me, and I would have lost it. If I had both skill and luck on my side, I might have managed to sell it, ending up rich but unemployed. If not… well.
I took on the role of General Manager in 1986. You know the cliché: “The boss’s son rises quickly.” 😊 At that time, I was in charge of operations, while my late father was still involved in the business daily. Thus, I know what it means to be a general manager when the owner is hands-on. Before that, I spent five years working in various departments, including cost accounting, exports, quality control, R&D, and even logistics and distribution. Mr. Sabri always believed in the power of this approach to develop empathy. And he was right, I learned through experience.
Early on, whenever I delegated a task, I often ended up taking it on personally before the person assigned could get to it. Later, as General Manager, I continued both assigning and defining tasks. I planned and tracked daily and weekly targets at all levels (OKRs). But sometimes, impatience got the better of me, and I’d jump in and do it myself.
Let me share an experience. One of our factories caught fire; God forbid it ever happens again. We worked day and night to extinguish the flames. It was a financial and emotional ordeal, but thankfully, we got things back on track quickly. Later, when a similar incident happened in the biscuit warehouse, I immediately recalled my experience. I called over the responsible worker and fired him on the spot.
Then my father called me in. His office had a clear view of the factory’s entrance. Pointing outside, he asked, “Do you see that man standing across the street at midday? Why is he waiting?” I pretended not to understand. “He’s probably waiting for a minibus,” I replied.
Of course, my father had already been informed of what occurred. “No,” he said, “I’m talking about the worker you just fired.” Then, in his polite way, he added, “You are a General Manager. You cannot just fire people on your own. There’s something called delegation.” He then proceeded to explain the importance of delegation. “So, what should I do now?” I asked. “Rehire him, and then we’ll follow the proper steps,” he replied. I followed his advice. Afterward, I frequently saw that employee around and even shared meals with him in the cafeteria. Frankly speaking, it was a valuable lesson in delegation. My father taught me firsthand what shared responsibility truly means.
Today, I collaborate with individuals who are more specialized and skilled in their respective fields than I am. That’s exactly why I work with them. I set strategic goals for my CEOs (APGs) and firmly believe this approach drives our business forward. My colleagues are more skilled and more expert in their fields than I am, and I trust them. However, that doesn’t prevent me from playing devil’s advocate when necessary.
So, how do I do this?
As you know, we have a motto that defines our mission:
#MAKEHAPPYBEHAPPY
A business thrives only when all stakeholders are satisfied and feel rewarded for their efforts. This, in turn, creates a competitive advantage. Today, employee happiness in corporate environments is just as critical as customer satisfaction.
To ensure employee satisfaction, a fair performance evaluation is key. For years, we have implemented a 360-degree performance evaluation system.
Our mission (makehappybehappy) also extends to how we assess CEO performance beyond financial metrics, linking their objectives to measurable APGs (KPI-based goals). But even these KPIs are numerical.
Short-term annual achievements are rewarded based on KPI assessments in the Annual Operational Plan, while long-term results are recognized through Long-Term Incentive Plans (LTIPs).
About four years ago, we introduced the Objectives and Key Results (OKR) methodology, initially implementing it in our Yıldız Ventures New Initiatives Office under the leadership of Yahya Ülker. This method particularly resonates with younger generations, as they want transparency and a clear understanding of each step!
As for how OKRs benefit us, at Yıldız Holding, we define our primary objective with an acrostic: “GOAL21”, where the “A” represents Alignment of Purpose. I believe the biggest advantage of OKRs is precisely that: creating alignment.
A business thrives only when its employees are satisfied and feel that their contributions are appreciated. In today’s corporate world, employee happiness is gaining just as much importance as customer/consumer satisfaction. So much so that employees are now even referred to as “internal customers.”
Measuring employee performance fairly is essential for ensuring their satisfaction. To this end, we’ve implemented the 360-degree Performance Evaluation System, and the results have been highly rewarding. This system allows employees to be assessed by not just their superiors, but also by subordinates, colleagues, and team members. It offers a comprehensive evaluation by including feedback from those who work closely with you, whether they are peers, subordinates, or even those you report to or report to you. We’ve been using this system for some time now, and it serves as a mirror, offering valuable self-reflection.
In reality, every evaluation encourages a degree of self-examination, creating a heightened sense of awareness. I find this approach to be extremely beneficial.
That said, I must admit that conducting this evaluation comes with certain challenges for me. The reason? I can’t complete the full 360-degree cycle myself since I don’t have a superior evaluating me. However, if I look at it from a different angle, my ultimate superiors are, of course, my consumers and customers. When I consider their feedback, my performance score looks quite positive. In most surveys, Ülker consistently ranks as one of the most satisfying brands, and we have seen growth in our market share. In this sense, my 360-degree evaluation is essentially completed through the good grades we receive. I make others happy, then I am happy.
In the early days of the company, performance evaluations were conducted by just a few people. Three levels of superiors would assess employees independently without coordinating with one another. In the following years, a more structured performance evaluation system became necessary, and we decided to introduce performance assessments and rating mechanisms, extending them even to factory workers. However, it’s worth noting that there was some resistance to this system, even from the labor union. There was opposition to the idea that workers should receive different pay or bonuses based on performance—quite a curious mindset! Essentially, they were against rewarding high performance.
On the other hand, the system we implemented had one drawback: the ratings were subjective. Instead of evaluating an employee’s performance over the entire year, the events occurring at the time or in the recent past often had a greater impact. To mitigate this, we introduced a solution where multiple evaluators would independently assign ratings without prior discussion. Ultimately, it was a system of grading that indicated trends, and since everyone benefited financially, there was little resistance. The initial bonus system was tied to piecework tasks performed by workers, such as box filling and product stacking, as well as monthly sales targets for sales representatives. Sales bonuses, for example, were at least equal to their base salary, meaning they accounted for 50% of their total pay. As for senior executives, their bonuses started at 60% of their total income and could exceed 130%. Personally, my entire income was dependent on the company’s success. The only fixed salary I ever received was from Yıldız Holding, and even then, it was never the highest salary within the company.
Over time, we refined our performance measurement approach and transitioned to what is known as “Management by Objectives.” This allowed us to identify career goals, track how well employees met them, and incorporate this into their evaluations. We also introduced structured interviews as part of the assessment process, which yielded very positive results.
Eventually, we reached a point where we needed to quantify the system using “Smart KPIs”. We decided that 90% of the evaluation should be based on measurable data, while only 10% would remain subjective.
The most challenging aspect of the process, largely due to cultural factors, was the difficulty of delivering face-to-face feedback. Some general managers, after giving direct feedback, would turn around and raise the employee’s performance score. Their reasoning? The employee had been warned and was expected to act. But alas, an entire year had been wasted. Who cared? To prevent this, performance evaluations and feedback sessions were conducted multiple times throughout the year.
This approach yielded highly successful results. Evaluations became a guiding tool that helped us perfect our work.
Of course, as with any evaluation system, the human element plays a role, leading to a degree of subjectivity. This becomes evident when viewed from a high-level perspective (a helicopter view). For instance, employees with a grudge against their supervisor may express this in 360-degree evaluations.
During my tenure as General Manager, we used a 100-point evaluation system, with a threshold set at 60. Anyone scoring below 60 was dismissed. Salary increases were also tied to these evaluations. Those who consistently delivered outstanding performance received astronomical salaries. In fact, a senior security guard or a shift supervisor sometimes earns more than their manager. I recall an instance where a high-performing manager came to me, visibly upset, asking why he hadn’t been fired yet. The reason? His modest salary increases indicated that he hadn’t even scored 60 points, meaning he should have been dismissed the previous month, yet he was still employed. Upon investigation, we discovered a clerical error and corrected it. In another case, we intentionally gave a manager a low score and a minimal salary increase as a warning. However, his commitment to the company was so strong that he accepted it with gratitude and even came to thank us.
As times change, new systems emerge. Just as AI applications have transformed the tech industry, they are also introducing new perspectives to corporate management. Companies striving for innovation and differentiation in customer experience are in fierce competition to attract and retain top talent. HR departments are constantly searching for more scientific and effective performance management tools that will enhance employee motivation and productivity. As I stated above, numerous performance tracking methods have been developed and implemented, including the Critical Incident Technique (Flanagan & Baras, 1954) (1), Management by Objectives (Drucker, 1954) (2), Key Performance Indicators (KPIs), Balanced Scorecards (Norton & Kaplan, 1992) (3), 360-Degree Evaluations (Kuzulu & İyem, 2016) (4), and Electronic Performance and Tracking Systems (EPTS). The OKR performance management system, first introduced by Google and later embraced by innovation-driven tech giants such as Oracle, LinkedIn, Facebook, Baidu, Uber, and Netflix, has also been successfully implemented by non-tech industry leaders like BMW, Disney, Exxon, Samsung, and Anheuser-Busch, proving their effectiveness in driving success. The same applies to us; this system aligns us all toward achieving success (https://muratulker.com/y/her-seye-odaklanan-hicbir-seye-odaklanamaz/).
People often ask me how I manage to keep track of such a diverse and global business portfolio, and I reply: first, we have a structured division of responsibilities! Second, there’s a certain magic to the way we work, a fundamental principle: every day, we follow the same processes; our work exhibits patterns, even becoming monotonous at times. Yet, we persist in repeating the same routine daily. The key difference is that each day, we strive to perform the same tasks better than the day before. At least, that’s our goal. I can already hear you asking, “Where’s the magic in that?” But it’s very straightforward: we commit to doing our work better today than we did yesterday, and we deliver. That’s the difference—the magic is in execution, not just in talking about it. One of the most effective methods we use for this is OKRs (Objectives and Key Results). The book 4 Disciplines of Execution, a longtime bestseller in business literature, poses the question: “Which is more important, strategy or execution?” My answer has always been the same: Execution! (https://muratulker.com/y/acil-isler-mi-hedefimiz-olan-cok-onemli-isler-mi/)
There are two concepts related to execution that I frequently use and firmly believe in:
- “I Did It, I Succeeded”
- “Where Is My Trade?”
I want every employee, at every level and position, to embrace and apply these two principles consistently.
With the OKR method, employees can see how their work contributes to the company’s main objective and confidently say, “I Did It, I Succeeded.” Otherwise, the outdated method, where one person gives orders, another executes, someone else approves, and yet another oversees, leads to an extremely inefficient workflow. In other words, you’ll do it right the first time and succeed!
In today’s world, agile working methods empower every employee to decide and execute their responsibilities within their authority. From the company’s perspective, this approach also answers the question, “Where Is My Trade?” because the boxes in the organizational chart show the reason for their existence. After all, the purpose of every company’s existence must be commercial, encompassing all employment and activities. If it’s an NGO, then its activities must align with its specific mission.
OKRs are less about hierarchy and more about lateral impact, opening doors for talented individuals. What matters most in the next quarter, half-year, or full year? What are our top priorities for the upcoming period? Where should people focus their efforts? OKRs should be viewed not just as a performance system but as a business management system. We view OKRs as a system where performance is continuously managed in response to changing conditions, ensuring goal alignment, strengthening transparency, and improving communication within the company.
KPIs, on the other hand, are structured top-down, with only a few managers involved in their development and evaluation.
Most OKRs, however, are developed bottom-up, encouraging teams and individuals to take ownership of their goals from the outset.
While KPIs are typically set on an annual basis, OKRs can be refreshed every quarter.
This is the management approach required by today’s business landscape. Who knows what we will implement in the future and then say, “This is what the business requires.”
We’ve already started integrating AI, and Ali Ülker has expressed interest in having AI as a board member. Imagine how well-equipped and critically minded a board would be if its members were AI-powered.
I served as Chairman of the Board for 20 years before passing the leadership to the next generation, my nephew. Now, I contribute as an expert in areas of my choice, supporting my colleagues.
Moving forward, the Board of Directors, of which I am no longer a member, will consist of the CEO, third-generation leaders, and global members—that’s the plan.
I’m not in a hurry. I’m not tired. I’m healthy. I’m not retired. This is simply what the business requires.
Note: This open-source article does not require copyright and can be quoted by citing the author.
