Progress up to July

Next Steps to be carried out in August

Capital Administration

•  The new framework for capital projects categorization, the Capital Budget categorization Committee and the new Capital Administration process were finalized and approved by the Managing Directors and KPC Board.

•  Commence implementing the new capital administration process for the budget year 2007/08

•  Finalize nomination of Capital Budget categorization Committee members.

HR Strategic Plan (20Y) and Five Year Plan Process

•  Started designing HR Strategic Planning process

•  Continue designing the HR strategic planning process

Manpower planning

•  Presented the recommendations on improving the manpower planning process to HR steering committee.

•  Commence implementation of the approved recommendations.

HR Polices/ Procedures (Compensation & Benefits, training, promotion, performance, succession planning, Job Evaluation, recruiting and Industrial Relations)

•  Developed recommendations on the following:

•  List of HR policies and procedures agreed to be harmonized.

•  List of HR policies and procedures agreed not to be harmonized

•  List of HR policies and procedures that are not agreed upon and needs minor modifications.

•  List of HR policies and procedures that are not agreed upon and needs further investigation.

•  Finalized the approach for investigating HR policies and procedures that are not agreed upon.

•  Present findings and recommendations to the MDs for approval

•  Revisit the teams and adjust the composition based on the approved findings/ recommendations.

•  Commence reviewing HR policies and procedures that are not agreed upon and needs minor modifications.

Performance Management System

•  Obtained Managing Directors approval on the new Key Performance Measures (KPMs).for KPC functional areas and subsidiaries

•  Started developing the following:

•  Target setting process

•  Performance Reporting process

•  Performance Review process with KPC's subsidiaries and functional areas.

•  Overall Performance Management process

•  Linkage between performance management process and the existing Senior Management Incentive Program.

•  Develop clear definition for each Key Performance Measure (KPM).

•  Finalize development of the following:

•  Target setting process

•  Performance Reporting process

•  Performance Review process with KPC's subsidiaries and functional areas.

•  Overall Performance Management process

•  Linkage between performance management process and the existing Senior Management Incentive Program.

Reorganization Of International Marketing (RIM)

•  The draft final International Marketing reorganization study was reviewed and updated.

•  Submit the final report to KPC Board of Directors.

Transitional KPC-Head Office Organization Structure

•  Detailed the new transitional organization structure for the departments whose roles will be significantly changed, along with their roles & responsibilities.

•  Developed High-level Manpower requirements for these departments.

•  Updated cross-department processes.

•  Review the final draft report and submit to steering committee for approval.

•  Develop Transition plan.

Change Management

•  Conducted Org DNA survey to be familiarized with KPC's and its subsidiaries culture.

•  Conducted a pulse check survey to test the awareness of planning groups in KPC and its subsidiaries on the overall program, and analysed the results of the survey.

•  Analyse the Org DNA survey results.

•  Prepare action plan to implement the recommendations of the first pulse check survey.