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 January and the key steps to be carried out on February.

	Progress up to January	Next Steps to be carried out in February
Capital Administration Process	•  Project was completed
HR Strategic Planning (20Y) and Five Year Plan Processes	•  Finalized designing the HR strategic planning and five-year plan processes and related guidelines. •  Presented the updated processes to HR Sub-steering Committee and commenced updating the report to reflect the comments raised by the committee.	•  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	• Discussed team recommendations with HR Sub-Steering Committee regarding HR policies/ procedures • Updated team report considering sub steering committee comments. • Updated report issued to CEO.	• Obtain HR Steering Committee approval on the team recommendations.
Performance Management System		• Issue project documentation including definitions and agreed processes
Reorganization Of International Marketing (RIM)		• Obtain KPC Board approval on the restructuring of International Marketing.
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 February communication plan. • Issued a bulletin to KPC employees on the overall program. • Launched the 3rd pulse check survey, to test KPC and its subsidiaries employees’ awareness on the overall program..	• Execute the requirements for March communication plan. • Discuss the results of the Org DNA survey with the management and prepare action plan to implement the recommendations of the survey. • Analyze 3rd pulse check survey and develop action plan based on the results.