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