Program of Changing KPC’s Management Model

At the outset, we would like to remind you that KPC is moving ahead in implementing the program to change its current management model and adopt the “Strategic Management Model”. This will enhance the current relationship between KPC and its subsidiaries to increase their commerciality by granting them more authorities and autonomy in managing their operations, in addition to focusing KPC efforts towards strategic issues related to the oil sector and setting high-level guidelines to subsidiaries while monitoring their performance without interference with their executive authorities

As you know, such program was segmented into different projects, each of which was assigned to a distinct implementation team.

Below is the progress in implementing the different projects up to February and the key steps to be carried out on March.

	Progress up to February	Next Steps to be carried out in March
Capital Administration Process	•  Project was completed
HR Strategic Planning (20Y) and Five Year Plan Processes	•  Updated HR strategic planning and FYP processes report as per the HR Sub-steering Committee comments. • Forwarded the report to all KPC's MDs for final comments.	• Update the report if necessary. • Present updated report to HR Steering Committee and obtain their approval.
Manpower Planning Process		• Obtain HR steering committee approval on the action plan and commence its implementation.
Strategic Planning (20Y) and Five-Year Plan Processes	•  Project was completed.
HR Polices/ Procedures	• HR Steering Committee approval was obtained on the team recommendations. • Final approved recommendations was forwarded to all MDs.
Performance Management System	• Performance Management documentation including definitions and agreed processes was issued to all MDs.
Reorganization Of International Marketing (RIM)		• Obtain KPC Board approval on the restructuring of International Marketing.
Transitional KPC-Head Office Organization Structure	• New transitional organization structure for Administration and Training groups was approved by Steering committee and issued to the Energy Minister for final approval.	• Provide Energy Minister with required information and seek his directives accordingly.
Change Management	• Executed the requirements for March communication plan. • Completed the 3rd pulse check survey, to test KPC and its subsidiaries employees’ awareness on the overall program and started analysis.	• Execute the requirements for April communication plan. • Discuss the results of the Org DNA survey with the management and prepare action plan to implement the recommendations of the survey. • Complete analysis of 3rd pulse check survey and develop action plan based on the results.