OrganizationStrategy-OverviewandDiscussionOrganizationStrategy-OverviewandDiscussionListCoListCoMarch28,2000March28,2000Slidecover-changetitle&date©AndersenConsulting200021.High-LevelOrganizationandGovernanceHigh-levelOrganizationandGovernanceCorporateCenterandSBUStructureOrganizationRelationshipandKeyGovernanceProcesses2.High-levelImplementationPlan3.Question&AnswerContentsContentspage-changed©AndersenConsulting20003Contents1.High-LevelOrganizationandGovernanceHigh-levelOrganizationandGovernanceCorporateCenterandSBUStructureOrganizationRelationshipandKeyGovernanceProcesses2.High-levelImplementationPlan3.Question&AnswerContentspage-changed©AndersenConsulting20004OrganizationEnablesEffectiveChangeTheneworganizationstructurewillbetheenginefordrivingandsustainingchangesthatallowListCotocompeteeffectively.AsoundorganizationalstructurecreatesclearlinesofauthorityandresponsibilityandmaintainsclearaccountabilityforresultsachievedAneffectivecompany-widecentralizedorganizationstructureenablesListCotooptimizeallofitsassetsandresourcesbyallocatingcapitalwhereitcancreatethehighesteconomicreturnsAneffectivestrategicbusinessunitorganizationstructureallowsindividualexecutivestofocusontheuniquecompetitiveconditionsandbusinessfundamentalsineachbusinessAneffectiveCorporateCentercost-effectivelyprovideshigh-qualityservicesthroughoutthecompanyandmaintainsandenforcescorporatepolicyandcontrolsystemsOnlyaftereffectiveleadershavebeeninstalledinkeypositionscannewcorporatestrategiesbeeffectivelydesigned,implementedandsuccessfullyexecutedTheCaseforChangepage2inOrgPresentation©AndersenConsulting20005CEOCOOExploration&ProductionSBULeaderOverseestheListCo’sfinancialmattersMonitorstheconductoftopmanagementProposesspecialshareholdermeetingsAccountableforestablishingcompanystrategicdirectionOrganizationallyresponsibleforexternalmattersExercisesoversightoverorganizationalperformanceActedbytheChairmanoftheBoard.However,theCEOroleshouldnotbetakenbytheChairmanifhe/sheisanofficerofSINOPECGroup(Pleaserefertothelaterdiscussion)AccountabletoCEOforday-to-daybusinessOrganizationallyresponsibleforinternalmattersPresidentofListCoandChairmanofExecutiveCommitteeExecutiveCommitteeBoardofDirectorsCEOCOOExecutiveCommitteeConsistsofCEO,COO,topmostSBUexecutives,andCFORecommends/establishesorganizationaltargetsandpoliciesManagesorganizationalperformanceandresolvesproblemsSBULeaders&CFOAccountableforoperations,administration,controlandorganizationalperformancewithintheirsphereofcontrolRecommendstrategies,capitalallocationsandbudgetsTakeactiontoimproveperformanceandremedyproblemsListCoTopManagementSupervisoryBoardConsistsofmanagement,shareholders&externalmembersRetainsfinaldecisionauthorityoverkeyissuesEstablishesperformanceexpectationsofmanagementSupervisoryBoardShareholdersShareholdersBoardofDirectorsRefining&MarketingSBULeaderPetrochem-icalsSBULeaderChiefFinancialOfficerInthisrecommendedorganizationstructure:ListCo’stopmanagementwillconsistoftheBoardofDirectors,CEO,COO,SBUleadersandCFO.HighLevelStructurepage5©AndersenConsulting20006CentralizedOrganizationStructureAsrequestedbySinopec,acentralizedorganizationstructurehasbeendesignedwherebykeydecisionauthorityisconcentratedathighlevels.TheBoardofDirectorswillretainfinaldecisionauthorityoverListCo’sstrate...