LQB Busniess plan
- 1. Booz & Company Tripoli, July 31, 2010 Launching the world-class Libyan Qatari Bank Fifth Steering Committee This document is confidential and is intended solely for the use and information of the client to whom it is addressed.
- 2. Agenda Approval of minutes from last Steering Committee GM report on progress Review of project status Review of issues and risks Approval for new premises Approval for appointment of key positions Approval of advertising agency Any other business Appendices Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 1
- 3. Agenda Approval of minutes from last Steering Committee GM report on progress Review of project status Review of issues and risks Approval for new premises Approval for appointment of key positions Approval of advertising agency Any other business Appendices Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 2
- 4. In the last meeting the critical path was shifted by three weeks as a result of delays in premises and the hiring of key staff High-Level Critical Path Jun 20 Jul 11 D Sep 28 Oct 13 Nov 14 Feb 20 Mar 30 E (TBC) L A • Detail Y • Business and regulatory • Complete & technical 3 requirements • IT system • Select IT system review IT training • Detail product implementati • Identify head office requirement • User Launch W features on s acceptance E • Develop op. E testing model Temporary HO K Chart of Temporary HO and IT infrastructure ready All staff training selected S Accounts branch ready for for integration testing completed ( 1 ready data center IT vendor ) IT business Staff required at All marketing selected requirements Product forms and launch hired and IT material ready gathering completed contracts developed training initiated Key staff (e.g., Wave I & II Year 1 budget & Third party All manuals completed Head of HR) of recruiting funding plan agreements signed and translated hired completed completed Key Policies & Appoint Procedures Soft Launch branding completed agency Forms and contracts printed Project Milestones 1) Delay as outlined in Steering Committee 4 due to lack of appoint key staff members (e.g., Head of HR) and delay in securing premises Note: Interim milestone dates have been updated based on further detail provided by Temenos and the IT infrastructure vendor Source: Booz & Company analysis Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 3
- 5. The appointment of key staff and the securing of premises remains outstanding, so impacting the project timelines High-Level Critical Path Jun 20 Jul 11 Jul 31 Sep 28 Oct 13 Nov 14 Mar 13 Apr 24 (TBC) D D E E L L • Detail • Business and A A regulatory • Complete & technical • Select IT Y Y requirements • IT system review IT training system • Detail product implementati 3 3 requirement • User Launch • Identify HO features on s acceptance W W • Develop op. E E testing model Temporary HO E E Chart of Temporary HO and IT infrastructure ready All staff training selected K K Accounts branch ready for for integration testing completed S S ready data center IT vendor IT business All marketing Staff required at selected requirements Product forms and material ready launch hired and IT gathering completed contracts developed training initiated Key staff (e.g., Wave I & II Year 1 budget & Third party All manuals completed Head of HR) of recruiting funding plan agreements signed and translated hired completed completed Key Policies & Appoint Procedures Soft Launch branding completed agency Forms and contracts printed Project Milestones Source: Booz & Company analysis Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 4
- 6. The premises and corporate identity workstreams have ‘issues’, while HR workstream remains ‘off track’ Status Update Overall Status Issues Five-Year One Year Highlights Strategy Business Plan Head of Risk & Credit on board - other Level 1 resources not yet joined due to protracted Organization Products & IT Systems negotiations and delays in approvals Design Channels Temporary Head Office agreement is in the Finance & process of being finalized by the GM Operations Treasury Accounting Temenos implementation has been kicked Internal Audit & off, however, the IT department has yet to be Risk Credit Compliance recruited Corporate Third Party Premises & IT infrastructure contract has been signed Identity & Agreements Infrastructure Remaining process workstreams have been Marketing kicked off and are underway HR & Recruitment Branding agreement is in the process of being finalized by the GM and vendor = Completed = On Track = Issues = Off Track Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 5
- 7. IT Update: Significant progress has been made for the key systems in the IT workstream with several major milestones being passed IT Workstream Update The IT workstream has gained further momentum since the last Steering Committee meeting: Temenos: – A contract was signed with Temenos on 20th July 2010 – The project was kicked off in Dubai on 26th July 2010 IT Infrastructure: – Commercial negotiations concluded with Agathon – A deal was finalized for LYD 5.2m that included a 10% discount and free IT Security and Policies & Procedures manuals – A legal review of the contract is under way, however a purchase order for critical data center equipment has been issued to ensure a Temenos deadline of 12th October 2010 is met ATM Machines and Card Management: – Evaluations of ATM machine vendor proposals are currently underway – Additional information has been requested from card management services and ATM network switch vendors / outsourcing companies Booz & Company Prepared for Libyan Qatari Bank 22 May 2010 31 July 2010 6
- 8. Compensation Recap: Mercer sized each job at LQB based on four factors: impact, communication, innovation and knowledge 1 Impact 3 Innovation Measures the contribution of a job in achieving business results Measures both the complexity Includes size of a company, taking into of the framework in which a account the number of employees and the position is performing and the total revenues/assets freedom to act Position Class indicates size of job Impact Communication Innovation Knowledge Total Contrib Commu Innovati Comple Know- Position PC Points Size Impact u-tion Points nication Frame Points on xity Points ledge Teams Breadth Points Chief Executive Officer General Manager 66 678 6 5 3 265 5 4 115 4 4 80 7 3 1 218 4 Knowledge 2 Communication Measures the expertise required to cover a Measures the level of influence in relation position and the number of resources to the job assigned to the role Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 7
- 9. Each job was placed into a particular grade reflecting its size and importance to the organization Job Grading - Illustrative Output Position Class indicates size of job Reporting Grade PC Reporting to LQB Position Line 0 11 66 BoD General Manager 1 10 63 GM Head of Retail Banking 1 10 63 GM Head of Wholesale Banking 1 10 62 GM Head of Insurance, Brokerage & Asset Management 1 10 62 GM Chief Operations Officer 1 10 62 GM Head of SME Banking 1 10 61 GM Head of Finance 1 10 61 GM Head of Risk Management 1 10 61 GM Head of Human Resources 1 9 60 GM Head of Credit 1 9 59 GM Head of Office of the GM 1 8 57 BoD Head of Shari'ah 1 8 57 BoD Head of Internal Audit Note: PC = Position Class, an indication of the size of the job based on Mercer’s Position Evaluation factor weighting Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 8
- 10. Of the key leadership roles at the bank, there are eight grade tens, and one grade nine and eight Organization Structure & Grading GM 66 11 Chief Business Officer 65 10 Retail SME Human Resources COO Banking Banking 63 10 62 10 61 10 62 10 Wholesale Insurance, Finance Risk Mgmt & Credit Banking Brokerage & Asset Mgmt 63 10 62 10 61 10 61 10 Office of the GM 59 9 Treasury 57 8 x = Position Class x = Grade Note: The Risk and Credit positions have been combined in the start up phase The Chief Business Officer role is dependent on recruitment of an appropriately qualified candidate. If recruited, will operate as the Deputy General Manager Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 9
- 11. Base salary bands were set according to each job’s grade LQB Base Salary Bands - Recommended by Mercer Range Grade Grade Titles Minimum Midpoint Maximum Range Spread Progression 11 General Manager 226,300 339,500 452,600 100% 60% 10 Assistant General Manager(1) 141,500 212,200 283,000 100% 60% 9 Assistant General Manager 96,400 132,600 168,700 75% 60% 8 Manager 60,300 82,900 105,500 75% 40% 7 Deputy Manager 47,400 59,200 71,100 50% 40% 6 Assistant Manager 33,800 42,300 50,700 50% 40% 5 Senior Professional 24,200 30,200 36,300 50% 40% 4 Professional 17,300 21,600 26,000 50% 40% 3 Administrator 12,300 15,400 18,500 50% 40% 2 Junior Administrator 8,800 11,000 13,200 50% 10% 1 Support Services 8,000 10,000 12,000 50% -- 1) Note the title Deputy General Manager has been replaced with the title Assistant General Manager for clarity = Recommended by Mercer Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 10
- 12. Mercer recommended the mid-point as the most appropriate salary reference point Guide to Ranges & Reference Points Range Spread Minimum Maximum The lowest rate paid; The highest rate paid; Midpoint typically for new hires serves to control without experience in (Reference Rate) compensation levels the job The organization’s market target for all jobs within the grade Mercer’s recommended reference point for salaries Recommended by Mercer Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 11
- 13. For recruits currently paid less than the recommended compensation, LQB should increase their pay gradually over time Implementation for Payment Structure LQB Comments Recommended Compensation Where candidates are currently paid Level significantly less than the Total salary differential between candidate’s current salary and Year 1 recommended salary, LQB should Mercer’s recommended salary Salary phase salary increases Compensation On joining candidates should be The Year 2 increase Joining represents a further one third granted no more than their current Salary of the salary differential salary, plus one third of the difference between this salary and Mercer’s recommended salary The Year 1 increase represents Candidate’s one third of the salary differential At the end of Year 1, candidates Salary at should be granted the second third of Existing the difference Employer Only at the end of Year 2 candidates Joining Year 1 Year 2 pay should be increased to reach parity with the Mercer recommendations Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 12
- 14. Agenda Approval of minutes from last Steering Committee GM report on progress Review of project status Review of issues and risks Approval for new premises Approval for appointment of key positions Approval of advertising agency Any other business Appendices Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 13
- 15. Project Issues Date 31 July 2010 Key Project Issues Overview Target Res. Module Issues Impact Action Required Responsibility Date PMO Lebanese resources Delay in the opening dates Follow up on second letter to Board July 11 have not been able to for the bank Office of the Prime Minister. members secure entry visas Resources are: - Fadi Najjar - Maha Raad - George Haimari PMO Implementation of Delay in progress of key Steering Committee to Steering July 11 approvals is taking longer workstreams (e.g., premises, delegate increased decision Committee than desired hiring) making capacity to the GM, where feasible HR Critical lack of IT and Delay in IT implementation Engage temporary local IT Steering July 11 business resources on due to LQB’s lack of ability to contractors Committee board to work with ‘keep up’ with IT vendors Temenos and other IT Secure immediate vendors appointment for outstanding resources Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 14
- 16. Project risks Date 31 July 2010 Key Risks Overview Module Risk Mitigating Action Responsibility Risk of potentially not meeting hiring Recruit business heads as a priority Booz & Company targets LQB Management HR Increase speed of recruiting decision making Board Increase pressure on recruiting partner Risk of delays in Temenos Prioritize rapid recruitment of IT project Booz & Company IT implementation due to lack of LQB IT managers and business heads to work with Recruitment Vendor and business resources Temenos on implementation Risk of delay in launch due to Regular and detailed communication to ensure Booz & Company IT compressed IT timelines with limited continued awareness of key dependencies, IT Vendors margin for error risks and issues Risk of delay in recruitment due to lack of Accelerate move to temporary offices LQB Management space resulting from slow move to new Plan office move on phased basis (e.g., Premises workstream Premise premises - office capacity reached by prepare initial section of offices ASAP) August 1 Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 15
- 17. Agenda Approval of minutes from last Steering Committee GM report on progress Review of project status Review of issues and risks Approval for new premises Approval for appointment of key positions Approval of advertising agency Any other business Appendices Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 16
- 18. Al Hadba offers superior access and layout and requires minimal interior improvements Temporary Head Office Evaluation = Recommended Dhara Building Al Hadba Excellent: Accessible by major thoroughfares, Good: Accessible by major thoroughfare, university Accessibility availability of parking within the property. Additional parking facilities can be used by the bank parking space can be constructed if required Good: Designed for a bank, vaults already in Layout Excellent: Open floor plan, customizable to bank needs premises, customizable space. Feasibility of Good: Large banking floor available for usage Excellent: Availability of multiple banking floors Branch Size 2,425 sqm 2,550 sqm . LYD 3.9m (Total cost of proposed lease based on Price currently negotiated contract of 5 years) LYD 11m (Total cost of purchase) LYD 65K per month lease Readiness Immediately, some interior work required Immediately - minimal interior work required to Move In Recommendation Do Not Progress Progress Note: The Dhara building was originally intended to be held for two years until a permanent Head Office was built Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 17
- 19. Agenda Approval of minutes from last Steering Committee GM report on progress Review of project status Review of issues and risks Approval for new premises Approval for appointment of key positions Approval of advertising agency Any other business Appendices Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 18
- 20. Six key positions need to be approved today Overview of Key Positions Recruitment Status - Approvals Required GM Internal Audit Chief Business Officer Retail SME Human Resources COO Banking Banking Wholesale Insurance, Finance Risk Mgmt & Credit Banking Brokerage & Asset Mgmt = Identified SC approval required Treasury Office of the GM = Hired = Not identified = Priority Positions Note: The Risk and Credit positions have been combined in the start up phase The Chief Business Officer role is dependent on recruitment of an appropriately qualified candidate. If recruited, will operate as the Deputy General Manager Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 19
- 21. Six key positions need to be approved today (cont’d) Overview of Key Positions Recruitment Status - Approvals Required Recommended Position Previous Employers Experience Nationality Status Candidate Al-Ahli Bank of Kuwait, Head of Retail, Kuwait Offer to be issued pending Head of Retail Alexandre (2 years) + 25 Years Egyptian interview with LQB GM Banking Tabbah NBK, Head of Retail, Kuwait (10 years) and SC approval NEDB, Head of Business Support (2 years) Head of SME Offer verbally agreed Mohamed Basher North Africa Bank, Director of Branches (9 + 20 Years Libyan Banking pending SC approval years) Head of Standard Chartered, Wholesale Bank Country Offer verbally agreed Wholesale Natheir Nasrawin Head (4 years) + 15 Years Jordanian pending SC approval Banking Arab Bank, Head of CR (5 years) Chief Noor Islamic Bank, Country General Offer verbally agreed Operating Sadok Attia Manager, UAE (2 years) + 30 Years Tunisian pending SC approval Officer Citibank, various roles (+20 years) OPEC Head of HR & Admin (5 years) Offer verbally agreed Head of HR Senussi Senussi + 30 Years Libyan Sirte Oil Company, Libya (+20 years) pending SC approval Head of Offer verbally agreed Ali Milad Zaidi Gumhouria Bank, Head of Internal Audit + 25 Years Libyan Internal Audit pending SC approval Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 20
- 22. Agenda Approval of minutes from last Steering Committee GM report on progress Review of project status Review of issues and risks Approval for new premises Approval for appointment of key positions Approval of advertising agency Any other business Appendices Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 21
- 23. The advertising agency will play an essential role in the launch success of the bank Role of Advertising Agency & Contents of RFP Role of Advertising Agency Contents of Advertising Agency RFP The primary role of an advertising agency is The RFP required the advertising agency to to effectively communicate with the bank’s submit a proposal for the following target audience using a range of medium activities: (e.g., newspapers, billboards, television, – Developing first year marketing plan events) – Creating material and content required to The advertising agency will play an execute market plan essential ongoing role in generating – Negotiating and procuring media awareness and acquiring customers for the channels as per bank marketing plan bank, particularly amongst the mass market – Managing end-to-end delivery of the retail customers campaigns Note: Branding agencies are responsible – Providing ongoing performance for developing the corporate identity of an evaluation of campaigns organization through logos, and design of Note: The RFP does not include the retail environments purchasing of media (e.g., television airtime) for the advertising campaign Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 22
- 24. ZHL-JWT is by far the most attractive advertising agency in Libya Advertising Agencies Evaluation = Recommended ZHL-JWT Arabicomm MENACOM Mindshare Remas Sadeem Very Strong: Bank Strong: Led the Strong: Many ME Weak: No bank Moderate: HSBC launch in Tunisia & Mashreq UAE banking clients, engagements, no Weak: No Previous FS campaigns in Dubai; HSBC repositioning; launch including Arab demonstrated experience with Experience Malta. Minor work Amanah Middle campaigns for Citi Bank, HSBC and international banks for NCB in Libya East campaign and Bank of Muscat Attijari (Tunisia) experience Very Strong: Strong: Have done Moderate: Media Weak: No local Moderate: Libyan Moderate: Libyan Relevant Libyan Completed projects some work in Libya relations and presence in Libya, based with based; clients Experience in Libya with local in conjunction with communications for but would operate experience in include Samsung, team of 15 staff a local partner Libya Energy City through ZHL-JWT media buying Sony & Bel Very Strong: Moderate: Clever Moderate: Classic Strong: Captures Weak: Generic Initial Creative Aligned with LQB use of visuals, Libyan visuals, but Libyan values with visuals and None provided Concepts values, engaging “making banking not aligned with classic visuals messaging for customers easier” LQB values Management & ATL agency: $480k $90,000 retainer Creative: $336k 12% of total Media agency: $30k per year +12.5% of PR: $48k 15% of net costs 10% of net costs Pricing marketing budget BTL agency: $230k net costs +1% tax Media: $70k Total: $255k(1) Total: $170k(1) Total: $204k(1) PR: $145k Total: $320k(1) Production: $45k Total: $885k Total: $500k(1) Strong local Weak local Good local Weak planning & Local and regional Insufficient presence presence backed presence and presence, but creative ability; Evaluation experience, but and knowledge in by international expensive price unproven ability to Expertise mainly in Overview may be undersized the Libyan market; expertise for overseas lead a bank launch media buying & for the task at hand expensive pricing Competitive price support campaign production Recommendation Progress Do not progress Do not progress Do not progress Do not progress Do not progress 1) Total pricing is estimated on the assumption of a $1.7mn first year marketing budget ($1.4mn for media/events and $0.3mn for production) Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 23
- 25. Agenda Approval of minutes from last Steering Committee GM report on progress Review of project status Review of issues and risks Approval for new premises Approval for appointment of key positions Approval of advertising agency Any other business Appendices Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 24
- 26. Any other business Approval of Booz & Company August Invoice - B3149200010001 Inv 8 - USD 600k Next Steering Committee Sunday 19th September 2010 Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 25
- 27. Appendices: List of Supporting Documentation (1/3) Minutes from Fourth Steering Committee New Premises - GM Memo on New Premises - Evaluation of New Premises Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 26
- 28. Appendices: List of Supporting Documentation (2/3) Appointment of Key Positions - Head of Retail Banking - Head of SME Banking - Head of Wholesale Banking - Chief Operating Officer - Head of Human Resources - Head of Audit Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 27
- 29. Appendices: List of Supporting Documentation (3/3) Approval of advertising agency - GM memo - RFP on advertising agency - Evaluation of advertising proposals - Advertising agency proposals (see electronic file of appendices) Booz & Company Prepared for Libyan Qatari Bank 31 July 2010 28