1 Innovative ideas through “employees Engagement Mechanism”Presented by: Abdulaziz Al-Duaij Bader Al- Otaibi Mahmoud Abdullah Majed Al-Otaibi Waleed Al Ben Ali Presented on 30 Nov 015

2 Introduction KPC strategy set out a vison to create one integrated company, increase efficiency of the business, improving collaboration and providing greater opportunities for it’s staff. With the fierce competition and fast- growing technologies in the oil business, many businesses are at risk and need to adopt for change. In any organization, employees are the main pillar for any growth and development. Organizations need to adopt new innovative ideas that can increase employee engagement. The biggest reason to focus on employees is that companies already have talented people with great ideas and it is a matter of making use of them properly. In this regard, adaptation of a “ employees engagement mechanism ” strategy for reaping big benefits can be of added value to any organization. In response, KPC and it subsidiaries have to develop a proper “ Employees Engagement Mechanism”. K - LEAD

3 The Proposed Idea ConceptIn many cases innovation does not require inventing new things, it is just a matter of how to utilize and reconfigure existing opportunities and capabilities in a way that can create an added value to the business.  The Idea concept is all about how KPC and its subsidiaries create, deliver, and capture value through the “ Enhancement of the Employees Engagement Culture” K - LEAD

4 Methodology and ApproachProposed idea is to establish an “ Employees Engagement Mechanism” To accomplish this goal, several options on how to shape the idea are examined as follow: Option 1) Company by company approach. Option 2) Sector by sector approach, i.e. Upstream, Midstream, Down stream, etc. Option 3) KPC and Subsidiaries in one approach Resources and tools needed to develop the mechanism: Dedicated competent staff ( Focal Point) responsible for carrying out the task. Reliable IT system for ideas entry and distribution. Well developed evaluation criteria for ideas screening, evaluation and selection Awareness campaigns to introduce the new mechanism and its benefits to all K companies employees to get their by - in and commitment to participate. Top management sponsorship and support. KPIs for measuring the effectiveness of the process. Continuously look for system improvement. K - LEAD

5 Option 1: Company by Company Approachpros More focused with ideas relevant to one type of business. Easy to assign the right people and to control. Small size of resources. Faster decision making. Less volume of ideas. Chances of success and continuity are high. Faster implementation of the ideas if viable. Application is limited to one company. It takes time to be transferred to other companies. cons K - LEAD

6 Option 2: Sector by Sector Approachpros Consolidated efforts for the same type of business. Pool of expertise from more than one company. Chances of success and continuity are high. Faster implementation of the ideas in the same sector. Accountability can be of rotational basis between the companies in the same sector for more by – in and commitment. limited application to one sector. Slightly big size of resources needed. cons K - LEAD

7 Option 3: KPC and its Subsidiaries in One Approachpros Accountability with single entity representing all. More diversified ideas relevant to the oil sector. Potential application of ideas to more than one sector. Difficult to assign the right people Big size resources needed. Longer work flow Longer decision making Accountability and by – in by companies will be less. Overwhelming volume of ideas. cons K - LEAD

8 Selection Criteria and Ideas EvaluationEvaluation criteria will help in screening and selecting ideas that worth time and resources investment . Two approaches to evaluating and selecting the ideas: Evaluation check points: mainly the stages that ideas will pass through prior to decision making. Examples of such check points are: Is there any cost associated with the idea. Does the idea support any strategic direction. Does it need higher review and approval. Is it being submitted by more than one to avoid duplication and double handling. Does it require legal review. Long term vs short term. Is it previously evaluated. Is it implemented at any subsidiary. More information needed. Does it need expert assessment. Evaluation timeline: time needed in moving the ideas from a stage to the other. The time line pace depends on number of factors such as: Number of ideas in hand. Type and complexity of the idea. Response from concerned department when approval is needed. Budget availability for implementation. K - LEAD

9 Key Benefits and Added ValuesCan help in staff encouragement to think and act in a positive way for the benefit of the work they do and its development. Can help in finding practical ideas that can be used and shared among subsidiaries. Can help the organization in discovering the strengths of its employees. Can help in saving or making more money. Can help in improving efficiency of a process or procedure. Can help in HSSE improvement and compliance with regulations. Can help in improving quality of a product or service. Can help in fixing an existing problem. Can help in preventing a future problem. K - LEAD

10 Challenges Are we flexible enough to try new ideas and take some risk.How can we turn ideas into real innovations. How can we ensure this mechanism deliver and meet the objectives. How can we manage all of these Ideas. How can we evaluate all of these ideas. How can we ensure the continuity and development of this effort. How can we ensure the support from top management How can we ensure the by – in and support from the end users. How can we ensure people are supported and incentivized to be more engaged. K - LEAD

11 Success Factors Commitment from top management to support the idea.Hold managers accountable. Remove systems barriers. Sponsorship to ensure smooth implementation and makes sure the project tasks and overall timeline are on track. Improved communication, flow of information and tools needed to help in increasing staff engagement in the organization. Attractive staff recognition scheme to foster staff engagement. K - LEAD

12 Proposed Governance and Process FlowEmployees ideas Idea flow More clarification Filter ideas Short listed ideas to concerned departments for further validation Viable Ideas K - LEAD

13 Proposed Reward SystemSpecial “Thank you” notes, to be issued for each employee who submits a proposal (irrespective of its viability). After initial screening to-ranking proposals, employees submitting said proposals will have their names published in the company magazine. Employees receiving three awards or more within one year will be entitled to a special reward. It is suggested that the reward system should take the form of public recognition as well as presentation of commemorative gifts. This, of course, is in addition to the “Thank you” note all participants will receive simply for sending a proposal irrespective of its viability. The public recognition could be accomplished by means of issuing winner’s names and photos in periodic newsletter of the company. Rewarding with gifts of appreciation must be subject to a rating system whereby the three top ranking ideas will be eligible for prizes. The rating system should take into account two factors: Percentage of cost saved by the idea relative to budget of the concerned department. Percentage of cost saved relative to maximum absolute cost saved in the group of proposals being evaluated. Total number of points given to each proposal will be the sum of the above two prizes will be determined by management as appropriate. K - LEAD

14 Submission Form K - LEAD Company Name. My Company programProposal from  This form is intended for use by company employees to submit their ideas. Suggestions and proposals that could bring about such benefits. Date: From : ………………………………….……………………….. Dept : ……………………………………….………………….. Emp. No.: ……………………………………………………….. Title of proposal : ……………………………………………….. Brief description : ……………………………….……….………………………… Initial cost (if any): Saving expected : Other comments : …………………………….……….………………………… Attachments (if any) : ( ) Employee’s signature K - LEAD

15 Thank You Form K - LEAD Company Name. Internal Memo SAMPLE “THANK YOU” NOTE From : Committee …. To : Name of Employee ……………………………….. Emp. No. : ……………………………………………………….. Subject : Company Program This is to confirm that we have received your proposal dated …………. We will process the same through the screening and evaluation procedure. On Behalf of Committee I would like to extend my personal appreciation to your contribution towards improved performance of the company, and would urge you to continue you much-valued participation.    CC: Employee Manager (w/copy of proposal) File K - LEAD

16 Thank you K - LEAD