The document summarizes the agenda and materials for the Fifth Steering Committee meeting of the Libyan Qatari Bank project. Key topics discussed include delays in hiring key staff and securing premises, impacting project timelines. The IT workstream has made progress but other workstreams face issues. Compensation plans were presented, setting salary bands by job grade. Outstanding risks include potential delays in hiring targets and the IT implementation.

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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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26. Any other business
 Approval of Booz & Company August Invoice - B3149200010001 Inv 8 - USD 600k
 Next Steering Committee Sunday 19th September 2010
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27. Appendices: List of Supporting Documentation (1/3)
Minutes from Fourth Steering Committee
New Premises
- GM Memo on New Premises
- Evaluation of New Premises
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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
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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)
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