cto dept., 2011 knpc leadership team (lt) alignment programme october, 2015 0/27

CTO Dept., 2011

KNPC Leadership Team (LT) Alignment Programme

October, 2015 0/27

CTO Dept., 2011

Alignment

October, 2015 1/27

WEBSTER Dictionary An arrangement of groups or forces relation to one another

Business Dictionary :Linking of organizational goals with the employees personal goals . Requires common understanding of purpose and goals of the organization.

Alignment is when all the organization’s teams – all the way from the top executive suite down to the front line teams – have goals that are in perfect sync with each other and are truly committed to such goals.

Strategic alignment is when all your team leaders – regardless of their rank (CEO, Middle Level Managers, or Entry Level Supervisors) – give precedence to the team they belong to, over the team they lead

Arrangement in a straight line or in correct position Or position of agreement or alliance

CTO Dept., 2011

KNPC Leadership Team (LT) Alignment Programme

Today I wanted to share with you a snapshot of a Top Team Alignment Program KNPC undertook in the first half of this year in order to transition from a “good” to “great” Leadership Team.

October, 2015

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Purpose & Priorities

Processes & Protocols

Mindsets & Behaviours

Roles & Accountability

STRATEGICCONTEXT

Performance Challenge& FY15/16 Strategic Priorities

Noble Leadership Purpose

Actionable Development Plan

(IDAP)

SMART Personal FY15/16 Objectives/SMAIP

INDIVIDUAL DIAGNOSTICS (Personality & 360)

TEAM ROLES and LT EFFECTIVENESS DIAGNOSTICS

Results & Reputation

2/27

CTO Dept., 2011

Individual Baseline Performance

At the individual level, our baseline provided insights on what success looks like at each level of leadership, and size of gap between how we perceive ourselves versus how others perceive us.

October, 2015

Individual

Job Profiles

Self v’s Others (360)

Think-K Competencies

Development Profile

3/27

CTO Dept., 2011

Team Baseline Performance

At the team level, we used 1:1 interviews and a top team effectiveness diagnostic tool to capture the baseline of our team performance.

October, 2015

Team

Themes to Resolve

From Good …. To Great Shifts

Stop-Start-Continue Actions

4/27

CTO Dept., 2011

Top Team Alignment

Three offsites were attended by the KNPC LT to develop and address alignment at 4 key levels.

October, 2015

Organisation – Performance Challenge Team – Unique Role of LT

Individual – Success Profiles

5/27

Strategic Priorities

CTO Dept., 2011

KNPC 2018 Performance Challenge

Intended to provide us with a 3 year “challenge”, so that we can align our strategies and actions to achieving these goals.

By March 2018, KNPC has transformed to a world class refinery complex comprised of competent staff, high performing teams and effective leaders that deliver superior products efficiently and safely, and together:

1. Deliver high value/profit to the Kuwait economy;

2. Drive accountability deeper into the organization and create a high commitment, high performance culture that accelerates and nurtures the next generation of future leaders;

3. Ensures leaders at all levels are empowered to take the right/hard decisions;

4. Build agile capabilities equipped to respond to local and international market changes;

5. Implement world class practices in Operational Excellence, Project Management, HSSE, Leadership Development, Stakeholder Engagement, and Risk Management;

6. Build the foundations required to be ready for integration with petrochemical down the value chain and supporting the development for new local industries;

7. Establish KNPC as a Employer of Choice for creating satisfying job opportunities and rewarding careers for Nationals.

October, 2015 6/27

CTO Dept., 2011October, 2015 7/27

CTO Dept., 2011

FY15/16 Strategic Priorities (1 of 4)

These provide clarity on the strategic priorities that the LT holds most important in FY15/16 for the successful achievement of KNPC’s objectives. The LT will dedicate the majority of its time and effort in ensuring these are implemented and enabled.

FY15/16 Priority

Safety First Culture

Proposed Initiatives

1. Rollout KPC HSSE Mgt System Framework2. Field site audits – assess adoption of HSSE

standards, processes & procedures in Plants

3. Safety induction programme for new hires/Contractors

4. Critical Behaviours5. Safety Performance reporting – Refinery

Safety Dashboard/Scorecard

Operational Reliability

1. Process and procedure review (w Shell)2. Gap analysis & Compliance action plan (w SK)3. Best practices & implementation plan (w Equate)4. Reliability Improvement Programme of Work 5. Financial Management of Refinery availability6. Training programme to embed best practice

behaviours and improve utilisation of existing processes/systems

7. CFP Commissioning

Rollout HSSE standards, processes, & practices

Mindset & behavioural change – Safety Ist Culture

Effective Safety reporting Improved HSSE

compliance Reduce cost of lost time Improved HSSE image

and KNPC reputation

• Process and system improvement

•Improved reliability & availability across all Refinery Assets

•Higher margin•Reduced maintenance cost

•Improved Safety record

Outcome

LT/DCEO SS

DCEO MAA

Sponsor

1

2

October, 2015 8/27

CTO Dept., 2011



FY15/16 Priority Proposed Initiatives

Attract, Develop & Retain

Human Capital

1. KNPC Talent Management & Succession Plan

2. Future Leaders programme3. KNPC Workforce Competency Assessment4. KNPC 2018 Strategic Workforce Plan5. KNPC Secondment Salary Scale Review6. Experienced Hire /Expat Recruitment

Taskforce7. Feedback/Coaching Culture

Business relevant competence

Accelerated capability development of workforce

Business critical roles filled with right talent

Reduced cost & transition time of new hires

Lower employee turnover Higher employee

engagement Robust leader pipeline, …

faster

Outcome

LT / DCEO F&A

Sponsor

Financial & Operational

Performance

1. Profit improvement2. Cost reduction3. Re-negotiate supply agreements4. Improve MOG processes in order to

improve refinery yields

Top line / Bottom line direct impact

DCEO P&LM

3

4

October, 2015 9/27

CTO Dept., 2011



FY15/16 Priority

Performance Culture

Proposed Initiatives

1. Workshops to cascade SMART Objectives & KPIs at all levels in each Directorate

2. Culture Diagnostic3. Performance Culture Development Plan4. Critical Behaviours & Pride Building5. Employer of Choice Plan including KNPC

Employee Value Proposition6. High Performing Teams Pilot7. Performance Management Pilot

Stakeholder Engagement

1. Stakeholder assessment – identify needs and threats to KNPC

2. KNPC Brand & Reputation - Baseline diagnostic of KNPC image/reputation and Plan

3. Key Stakeholder engagement plan, including value propositions and digital/social media

4. Capability development in issue and crisis management

5. Monitoring systems for continuous improvement

Clarity of what success looks like for employees

Compelling promise to employees

Clear accountability at all levels

Leaders performing effective annual reviews

High performers rewarded

Engaged workforce – increased pride

High performing teams Improved productivity

Reduced impact/cost of “threats”/“disruptions” caused by external stakeholders

KNPC value propositions for key stakeholders

70% employee engagem’t

Stakeholder trust in KNPC

Improved reputation Stronger KNPC brand

Outcome

DCEO Projects / DCEO MAB

DCEO SS

Sponsor

5

6

October, 2015 10/27

CTO Dept., 2011



FY15/16 Priority Proposed Initiatives Outcome Sponsor

Refinery /Petrochemical

Integration

Capital efficiency of projects

Increased operational value

DCEO P&LM1. ZOR/Petrochemical Integration Project2. CFP integration baseline study to better

prepare KNPC for integration7

October, 2015 11/27

CTO Dept., 2011

Role of LT

Intended to provide a clear view on what the LT is about, what it will stand for, the unique work that only the LT can do, and the behaviour and actions it will drive throughout KNPC.

The role of the LT in managing KNPC is to:

1.Represent KNPC – model one voice, positively influence future of Oil Sector, live core values;

2.Vision & Strategy - Set future growth direction and strategic priorities, create enterprise value, hold collective ambition, make strategic decisions about where to play and how to win, review/approve performance management scorecards;

3.Identity & Reputation – create & safe guard corporate image - Inspire people – review culture and model shared values – set expectations about what matters around here and build performance culture - realize potential of self and others;

4.Capabilities – find and leverage collective core capabilities, steer accelerated development of a robust pipeline of next generation leaders/talent, review/approve succession plans;

5.Prioritization & Allocation – make strategic choices, prioritize and approve strategic initiatives/projects, decide budget/investment allocation and review return;

6.Control – drive/review/correct performance (e.g. Refinery, Functions, HSSE, initiatives, risks) and compliance, resolve critical issues that impacts collective/reputation, review execution of strategic priorities and initiatives;

7.Innovation – fostering creativity and new ideas which will bring new value to the Company;

8.Information Flows – Transmit what matters internally; engage key external stakeholders, align and meet expectations of key stakeholders.

October, 2015 14/27

CTO Dept., 2011

LT Roles and Responsibilities

Intended to set clear expectations on our respective responsibilities in Meetings.

October, 2015

Role Responsibilities

CEO

Linked between K-Companies and KNPC Chairman – Drive LT decision making Facilitator – Set and monitor pace and tone, and resolve conflict (peace keeping) Approve LT agenda and minutes

DCEO

DCEO P&LM – Time Keeper, minutes review and distribution Be objective, listen/understand and communicate clear point of view Support implementation when LT decision made Sponsor – Approve topic, review presentation before LT and position Manager presentations during

LT

Management Support

Agenda preparation Minutes capture/writeup Presentation setup and transition Confidentiality Participate upon invitation

Presenter Adhere to guidelines Crisp and clear presentation – purpose, recommendation, how arrived at recommendation

16/27

CTO Dept., 2011

Purpose and Agenda for LT, MMM, EPMC, and SHEEC

Intended to improve the effectiveness of our key governance forums.

LT MMM EPMC SHEEC

Purpose

Drive execution of FY15/16 Strategic Priorities

Build Manager engagement and accountability

Capture Manager feedback

Drive strategic alignment and governance for Projects

Build LT & organisation commitment to HSSE agenda

Timing

Mondays 8am-3pm No LT in week of MMM

First Sunday each Month

Tuesday Monthly

Last Tuesday of each Month

Rotate Location

AgendaItems

Highlights CEO Message Review Actions Summary Agenda FY15/16 Priorities Internal LT discussion Reflection

Monthly Financial Performance & Analysis

Market Update 2030 Strategic

Initiatives Achievements Critical Issues Team Breakout

Sessions on FY15/16 Strategic Priorities

Input into LT Idea approval Go/No Go from

Design to Implement Project status review Value map Portfolio review Variation Orders /

Claims Additional Funding

Input into LT for Safety First Culture

HSSE Initiative Review

KNPC HSE Performance Review

Issue/Risk identification & mitigation

Review recommendation status

October, 2015 17/27

CTO Dept., 2011

Manager Success Profile

Intended to set clear expectations on what success looks like for Managers in KNPC.

Manager Success Profile

Summary

Enables: Alignment with LT direction and decisions Transmission of Management messages to teams and staff understanding of

implications Results and high impact solutions to resolve business challenges through Team

Leaders Performance culture - clear expectations on what success looks like for Teams /Team

Leaders Capture and implementation of new ideas/processes for continuous

improvement/innovation Employee engagement – gains emotional commitment of Team Leaders Anticipation and scoping of the needs of key stakeholders Collaboration between functions and business

Delivers Accelerated development of teams and team leaders through SOTJT &

coaching Department business plan to make change happen & achieve business

objectives High impact solutions, implementation of best practices, and safety plans Mission critical objectives/targets; Individual and Team KPIs Communication across, down and up Broad and deep pipeline of ready-now Team Leaders

Results Full Performance

Takes Ownership Deliver KPIs for balanced scorecard and MAIP Deliver budget Accountability pushed down to Team Leaders Internal/external customer satisfaction Business plan

All mission critical objectives/KPIs/targets met Key SMART objectives/KPIs for self & team leaders met Right people in right roles to deliver results Finger on pulse and 1-step ahead of senior management Function/Refinery plan understand/accepted by all Team Leaders Safety practices and plans implemented by Team Leaders

Focuses on People, Teams, and Culture Change leadership and long term thinking Models performance culture & KPC values Employee engagement Employee value proposition and KNPC brand Ready-now successors Successful stretch assignments for HiPo Team Leaders

Ready now successor in place; Team Leader pipeline improves each year Performance culture – Team leaders know what is expected, know the score each quarter& poor

performance addressed quickly Lives KPC values and code of conduct Creates feedback culture- Team leaders receive constructive feedback at least once every 90 days and

taught giving/receiving feedback skills 70% employee engagement for teams managed Team Leader stretch assignments/development plans set & delivered

Drives Performance and Innovation Self and Team Leaders meet business plan New ideas, methods, processes

Function/Production plan /business plan met/exceeded Projects/plans completed on time, on budget, & stakeholders satisfied Processes continually improved & personally implemented ≥1 innovation

Creates Integrated Value Best practice “One-K” culture Aligned stakeholders

Functional best practices implemented, ineffective practices eliminated Effective working relationships enable implementation of mgt messages Cross functional relationships improve business results SLAs met

October, 2015 18/27


Thank You

cto dept., 2011 knpc leadership team (lt) alignment programme october, 2015 0/27

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