BP Amoco Finland Executive summary June 21, 2000

1. BPAmoco FinlandExecutive summaryJune 21, 2000 Lauri Eskola Daniel Messmann Essi Keltomäki Jani Ojala Petteri Urmas

2. Agenda • Overview • Organizational structure • Job description, job specification • Recruitment and selection • Training • Appraisal and compensation

3. Mission statement & Values ”We involve our whole value chain to provide high quality products to our customers 24 h a day. Our business is serving the motoring public.” Our core values are: • environmental and ethical responsibility • employee satisfaction • totally meeting customer needs

4. Objectives I • BPAmoco Finland will become the regional center of excellence • Establish a valid model for Russia and Baltics • Train personnel in Finland • Build market share by creating a strong brand name • Permanent and wide availability • Superior service • BPAmoco quality image

5. Objectives II • BPAmoco best practices utilized: ”Think Globally, Act Locally” • long-term internal and external relationships • promote cost-effectiveness • Provide standardized and high quality product • location close to population centers and main transportation routes.

6. Policies I • Have the right person to do the job • promote from within if possible • employ local personnel if possible • Regular measurement of performance • Individual goals vs. corporate goals • Flat structure, efficient and flexible organiaztion • Corporate culture

7. Policies II • Build long-term commitment and seek for potential talent • Employee empowerment • Make use of technology • reduction of labor costs • effective communication • up-to-date information • Importance of communication • Outsourcing

8. Organizational Chart

9. Outsourced Activities • Legal assistance • Maintenance • Security • IT- services • Logistics • Some HRM activities • Corporate level vs. Facility level • importance of communication and coordination

10. Analysis of the Organizational structure • Distribution of responsibility and clearly divided tasks • Outsourcing  concentrate in our core competences • Decreased hierarchy • improved communication

11. Board of Directors • Members • CEO Finland • VP Finance • BPAmoco Representative • Recognised executives • Tasks • control and expertise • relations to UK HQ • community relations

12. Management Team • Members • CEO Finland • Functional VP’s • Finance, Marketing, HRM, Purchase & Logistics • Country VP’s • Tasks • setting overall strategy; visions and values • cross-functional operations

13. Duties “The Captain” Reporting to BPAmoco UK HQ Providing vision and strategy Running the operation Communicating with Country VP/Functional VP Keeping contact with local authorities Specifications Master´s Degree 12+ years of experience in top mgmt Strong leadership and communication skills Russian language skills preferred CEO Finland

14. Duties Reports to the CEO Communicating with functional VP´s and Regional Managers Implement and control business plan Supply strategic visions Specifications Master´s Degree Fluent in English and local language 10+ years in upper middle mgmt position Great knowledge and understanding of the culture and market Country Vice President

15. Duties Reporting to CEO Interaction to other VP´s Short and long term planning MKTG: 4 P´s (price product, placement, promotion) Finance: Investment planning and control Logistics: network Specifications Master`s Degree in their area Fluent in English 10+ years in middle mgmt position in their field Strong interpersonal/facilitation skills Team work attitude Functional VP

16. Human Resource VP Duties • Recruitment program • Implement corporate policies and values • Relationships with unions • Compensation • Training • Performance appraisal

17. Duties Reports to country VP controls and supervises Facility managers Observing outsourcing evaluation Organizes area development/activities Manages the regional budget Specifications Bachelor´s degree Fluent in English and Finnish 8+ years of experience in management position Willingness to travel regionally Strong communication and interpersonal skills Regional Manager

18. Duties Reporting to Regional Manager Responsible for Ass. Facility Managers Responsible of controlling and coordinating the complex (e.g. mktg,promos) Evaluates outsourcing needs Implementing community activity Specifications Bachelor´s degree Fluent Finnish, good skills in English Ability to work individually and in a team some years of previous work experience in service industry Facility Manager

19. Duties Reports daily to Facility Manager Oversees quality of franchisees On-site manager of facility Takes care of maintenance and repairs Specifications Polytechnic degree Fluent in Finnish, moderate skills in English Some previous service work experience Self-motivation and willingness to adapt Ambition for future advancement Assistant Facility Manager

20. Job markets • Finland • Adequate supply of applicants for entry-level positions • Weaker candidate pool for mid-management • Baltics and Russia • Sufficient pool of qualified applicants

21. Recruitment by position: • CEO and VPs • Internal recruitment and Headhunters • trade-off corporate vs. local culture • Aim is to create a mix of expertise in corporate and Finnish cultures in the upper management

22. Recruitment by position: • Regional Managers • Professional organizations • Business newspaper ads • Internet • Internal recruitment in the future

23. Recruitment by position: • Facility Managers and Assistant Facility Managers • Internet • Universities and Polytechnics • Career Fairs • Educational institutions • Public Employment Agencies • Newspaper ads

24. Recruitment of trainees • Internet • Universities and Polytechnics • Career Fairs • Newspaper ads combined with the ads of Facility Managers and Assistant Facility Managers

25. Selection process Hiring decision Medical examination Supervisory interview Preliminary selection Background investigation Employment tests Initial interview Application screening

26. Employment tests • Psychological and honesty test • Teamwork ability test • Standardized measure of behavior • Prediction of job performance

27. Background investigation • Check references and work history • Good citizen (criminal record) • Reliability of applicant • Personal opinions of applicants, acquaintances • Deeper understanding of applicant

28. Preliminary selection • Ranking of applicants based on previous processes • Initial interview • Employment test • Background investigation • Select the best candidates for “second” round

29. Supervisory interview • In depth panel interview, behavioral type questions • closest supervisor, consultant and representative of HR department • Multiple opinions • In depth knowledge about applicants behavior and decision making capabilities

30. Medical examination • Test held by professional medical institution • Drug test • Physical health not the basis for selection • Protection against possible later law suits • Concern about the welfare of employees

31. Hiring decision • Final decision that is based on all of the tests and interviews conducted • Goal of the whole application process

32. Initial Selection Process CEO and VP’s Application Screening HR UK HR UK Initial Interview Employment Tests Outsourced Background Investigation HR UK Preliminary Selection HR UK Supervisory Interview BPAmoco UK Medical Examination Outsourced Hiring Decision BPAmoco UK

33. Initial Selection Process Other positions Application Screening Outsourced Outsourced Outsourced Outsourced Outsourced BPAmoco Finland Outsourced BPAmoco Finland Initial Interview Employment Tests Background Investigation Preliminary Selection Supervisory Interview Medical Examination Hiring Decision

34. After start-up • The selection process conducted entirely by the Finnish HR Department • employment tests outsourced • medical examination outsourced • BPAmoco UK has the power to hire the CEO and VP’s

35. Training • HR department and managers scan the workforce and identify training needs • Objective: Balancing individual KSA’s and organizational needs and goals

36. OrientationPackage • Copy of specific job goals and descriptions • List of training opportunities • Copy of policy handbook • Current Organization Chart • List of key terms unique to the industry, company and/or job • List of employee benefits

37. General Training Objectives • To promote loyalty to the organization • To increase productivity and profitability • To improve work environment and employee morale • To enhance career advancement and development

38. Top Management TrainingProgram • Preliminary orientation session in the UK by HQ • Objectives: • Creating common corporate culture and internalizing policies and procedures • Building internal relationships • Easy information flow and communication

39. Continuous Training • Seminars and conferences • Computer based training (internet) • Crisis management and conflict resolution • Russian and Baltic business practices, environment and culture • Weekly video conferences with the UK headquarters

40. Regional Manager Training Program • Orientation period in the UK by HQ • Objectives: • Internalizing corporate culture, procedures and policies • Improving leadership and communication skills • Building positive organizational atmosphere

41. Facility Manager and Assistant Facility Manager Training Program • Orientation objectives: • Internalizing corporate culture, procedures and policies • Franchisee relations • Quality control management

42. Continuous training of Regional, Facility and Assistant Facility managers • Training in cooperation with the HR department and consultants • Coaching of facility management by regional management • Staff meetings • Computer based training • Technological advancement • Leadership skills

43. Career Development • Partnership training with universities • BBA • MBA • Company policy is to encourage personal development • study leaves • study-work schedules • financial support

44. Internships • Objective: • To create a recruitment pool for future employees • Provided for students • Better opportunity to enter the company as an Assistant Facility Manager • Methods: • On the job learning, mentoring, coaching

45. Management Trainee Programs • Objectives: • develop management abilities and knowledge in practice • partnerships with polytechnics and universities • in-class training • job rotation (facilities, HQ) • monthly meetings with other trainees • case studies

46. Baltics And Russia • Experienced managers trained in Finland start the expansion in Russia and the Baltic region • Russian HR department trained in Finland in the future • Similar training programs held in Russia and the Baltic region

47. Purposes of Appraisals • Basis for organizational productivity • Developmental purposes • Administrative purposes • Identification of strengths and weaknesses • Fair appraisal

48. Appraisal Methods MBO 360-degree

49. Critical Issues • Error possibilities • 360° and MBO cons • Cultural characteristics

50. Compensation Policies • Pay for performance • Competitive base salaries • Incentives (merits, bonuses, stock options) • Indirect compensation • Salary ranges for each management level • No pay secrecy - open policy