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 December and the key steps to be carried out in January.

	Progress up to December	Next Steps to be carried out in January
Capital Administration	•  Project was completed
HR Strategic Planning (20Y) and Five Year Plan Processes	•  Finalized designing the HR strategic planning process and related guidelines. •  Continued updating HR 5y process to ensure alignment with corporate and training 5y plans as well as manpower planning process.	•  Finalize HR 5y plan process. •  Approach HR sub-steering committee to discuss HR strategic planning and 5y planning processes.
Manpower planning	•  Presented and discussed the action plan to implement team recommendations on improving manpower planning process to HR sub-steering committee. •  Revised the action plan according to sub-steering committee directions. •  Revised action plan issued to CEO.	•  Obtain HR steering committee approval on the action plan and commence its implementation.
Strategic Planning (20Y) and Five Year Plan Process	•  Updated strategic planning and Five-Year Plan processes were approved.
HR Polices/ Procedures	• Discussed team recommendations with HR sub-steering committee regarding the following:-    * HR policies/ procedures with minor disagreement between KPC and subsidiaries.   * HR policies/ procedures under disagreement between KPC and subsidiaries, which require further investigation.	•   Update team report considering sub steering committee comments.
Performance Management System		•  Issue project documentation including definitions and agreed processes
Reorganization Of International Marketing (RIM)		•  Continue discussions of the final report of International Marketing reorganization study with the Board.
Transitional KPC-Head Office Organization Structure		•  Obtain steering committee approval on the new transitional organization structure for Administration and Training groups
Change Management	•  Executed the requirements for January communication plan. • In the course of implementing the action plan related to 2nd pulse check survey results, 2nd awareness session was held on the overall program as well as the new performance management system to KPC and Subsidiaries employees.	•  Execute the requirements for February communication plan. •  To complete the requirements of the action plan related to second pulse check survey results, a bulletin will be issued to KPC employees on the overall program. •  Conduct the third pulse check survey, to test the awareness on the overall program. •  Discuss the results of the Org DNA survey with the management and prepare action plan to implement the recommendations of the survey.