1. Framing & Alignment Meeting PROJECT NAME:
Date: 28 October 2006

2. Pr 29:18 Where there is no vision (revelation), the people perish.
Pr 19:2 It is no good to have zeal without knowledge, nor to be hasty and miss the way.

3. Why an alignment meeting?
To achieve alignment between all the stakeholders on the business, project and project execution objectives.
When?
At the start – at kick off of the project
At the start of each phase of the project
Duration of about one day
Who?
The major project stakeholders :
Business owner & sponsor
Marketing
Operations & maintenance
Technical/engineering
Environmental

4. Why Are We Here?
As management members of relevant departments and/or of the project, you are here to provide expert input.
A viable business opportunity has been identified and is being pursued further.
To improve efficiency and coordination on the planning of this project.
You are asked to set aside any issues, power plays, politics and to focus on the interests of the project.
You are invited to co-operate as a part of a flexible and dynamic discussion group that will outline and define the ultimate success of this project.
Sasol Executives have decided that this project opportunity must be pursued further, at least to the next decision gate in the BD&I model, whichever one that might be. You will together determine that today.
Sasol Board Members like to know exactly to what they are committing themselves and the company to. The fact that this is not really achievable is simply not a consideration! You must find a way to maintain their confidence in your role in the project, while giving the decision-makers the information they need to be effective in their roles.
You can not at this time say with certainty whether the project will be an overall business success or not. The only truly effective benchmark for project success is the long-term return gained on the investment in the project. The success of a project is linked to meeting Sasol Executives’ expectations, and failure is directly linked to communication breakdowns.
As managers, your job is not just to help the project team bring this project in on time and within budget, maximum performance, quality, safety, and all the other traditional parameters of success. Your task is more than that. You must understand what Sasol’s business is all about and work to achieve its business goals. As this project progresses to the next decision gate, you must bear in mind what Sasol’s business objectives are for the project, and whether you as managers are steering this project towards achieving those objectives.
While we are using words like “stakeholders”, “success”, “cooperate”, “communicate” and “Alignment”, lets take a moment to make sure that we all agree on the definitive meanings of these words.

5. Meeting Ground Rules One conversation at a time – speak clearly.
All participate and contribute.
Listen to the contribution of others.
Getting ideas out, not judging them.
No rank in the room (except for the Facilitator!).
No political games.
No “us” and “them”
Cell phones off.
Have Fun!

6. Participants & Roles List of participants and introduction
Where are you from?
What role do you play in the project?
What are your expectations from the meeting?
Project Role
From
Name

7. Framing Meeting Objective and Deliverables
The objective:
1. Achieve alignment on project objectives, risk issues, scope of work, roles and responsibilities and next actions
The deliverables :
1. A List of :
Business Objectives
Project Objectives
Project Execution Objectives
2. A List of :
Business Risks
Project Risks
Project Execution Risks
3. A Block Diagram showing the scope of the project
4. Roles and Responsibilities
5. Governance Structure and Communication
6. Safety Health and Environment
7. Contracting Strategy
8. Project Ground Rules
9. A Project Milestone Roadmap, with deliverables and dates
10. A List of Next Steps
Some social fun (which you can read in your own time):
Subject:  A LESSON OF BUSINESS Lesson One O’ One
************** A crow was sitting on a tree, doing nothing all day. A small rabbit saw the crow, and asked him, "Can I also sit like you and do nothing all day long?" The crow answered: "Sure, why not." So, the rabbit sat on the ground below the crow, and rested. All of a sudden, a fox appeared, jumped on the rabbit and ate it. Management Lesson Number One: To be sitting and doing nothing, you must be sitting very, very high up.

8. Project Framing Agenda
Define business objectives
Define project objectives
Define project execution objectives
Business risks
Project risks
Project execution risk
A Block Diagram showing the scope of the project
Roles and Responsibilities
Governance Structure and Communication
Safety Health and Environment
Contracting Strategy
Project Ground Rules
A Project Milestone Roadmap, with deliverables and dates
A List of Next Steps

9. Framing Meeting Block Diagram
Project
Execution Planning
(Execution Objectives)
Project
Execution Plan
(Scope of services internal
& external) (HOW & WHO)
Business Planning
&
Objectives
(WHY)
Project
(Facility) Planning
(Project Objectives)
The Right Project
(Scope of Facilities)
(WHAT)
Market needs
& Requirements
Metrics to
measure
success

10. Business Objectives Define the Business Objectives:
Understand the business opportunity and why resources are committed to the project.
What are the reasons for the project?
How does it fit Corporate strategy?
What is the economic justification?
IRR %
NPV
What are the economic sensitivities ?
Feed cost
Sales volumes
Capital cost
Sale prices
What are the business drivers?
New markets & opportunities
Expansion
Environmental/regulatory requirements
What other projects are impacted - or may be impacted?

11. Objective Matrix Results Business Objectives
Results to Achieve: (Business Objectives)
Results to Prevent
Resources to be used
Restrictions preventing achieving objectives

12. Framing Meeting Block Diagram
Project
Execution Planning
(Execution Objectives)
Project
Execution Plan
(Scope of services internal
& external) (HOW & WHO)
Business Planning
&
Objectives
(WHY)
Project
(Facility) Planning
(Project Objectives)
The Right Project
(Scope of Facilities)
(WHAT)
Market needs
& Requirements
Metrics to
measure
success

13. Project Objectives Define the Project Objectives:
The project objectives support and underlay all the business objectives.
Production facility performance objectives – volumes, purity, yields, etc?
What are the project sensitivities – cost, schedule, (plant) performance (quality)?
What are the milestone dates that must be met? (Window of opportunity – Schedule?)
The technology to be used – new, proven?
Environmental/effluent objectives?
Site and location of the facility?
Project specifications to be used?

14. Objective Matrix Results Project Objectives
Results to Achieve: (Project Objectives)
Results to Prevent
Resources to be used
Restrictions preventing achieving objectives

15. Framing Meeting Block Diagram
Project
Execution Planning
(Execution Objectives)
Project
Execution Plan
(Scope of services internal
& external) (HOW & WHO)
Business Planning
&
Objectives
(WHY)
Project
(Facility) Planning
(Project Objectives)
The Right Project
(Scope of Facilities)
(WHAT)
Market needs
& Requirements
Metrics to
measure
success

16. Project Execution Objectives
Define the Project Execution Objectives:
The project execution objectives must support and underlay business AND project objectives.
Execution objectives with regards to:
Local content, country, site specific issues
Engineering / specifications
Procurement
Construction
Safety, health and environmental objectives
Strategic milestone dates that must be met
Understand Project Objectives and impact on
Cost
Schedule,
Performance/quality
Financier requirements e.g. World Bank

17. Objective Matrix Results Project Execution Objectives
Results to Achieve: (Project Execution Objectives)
Results to Prevent
Resources to be used
Restrictions preventing achieving objectives
Site location, remoteness
Site conditions, green field, revamp.
Logistic supplies
Infrastructure available
Local content

18. Business Risks Identify the business Risks
Risks arising from the business venture itself, effecting viability (good or bad) of the business model,
usually external, unpredictable and not insurable
Market risk: Price changes, demand changes, substitute products, barriers to market entry, competition, etc.
SHE risk: Changes in environmental requirements and legislation, green issues, CO2 emissions
Financial risk: Currency fluctuations, inflation rates, interest rates
Socio-political and economical risks: AIDS
Geo-political risks: regional wars, social instability

19. Project Risks
Identify Risk that will directly result from the project (facilities) itself:
Technology risks
Technical complexity
First of a kind
Scope risk – potential for significant scope changes
Quality risk
Cost risk
SHE risks
Any other risk inherent to the project

20. Project Execution Risks
Risk that will impact implementation and delivery of the project (EPC):
Availability of resources
Skills availability
Material and equipment supply & delivery.
Site issues – congestion, remoteness, etc.
Weather/climate
Country, area, site specific issues
Project Management risk
Scope definition – scope creep
Logistical, transport risks
Infrastructure, equipment availability

21. Scope of Work Define Scope of Work (Develop WBS)
Create a block diagram
What is in the scope?
What is outside the scope?
Define the Battery Limits?
Other opportunities?

22. Project Organigram (Governance structure)
Develop project organigram
Indicate:
Organisational structure – function, matrix or project
Indicate functions and reporting lines
Steering Committee and key role players

23. Project Governance and Communication
How will the project be governed?
Meetings
Technical Meetings – attendees, frequency
Project Progress Meetings – attendees, frequency
Steering Committee - members
Communication
Reports
Format and Frequency
Media, format, referencing, lines of communication
Approvals
What approval levels will be applicable

24. Roles and Responsibilities
Develop RASCI chart for the project with all the project team members together
R – for Responsible
A – for Accountable
S – for Support
C – for Comment
I – for Information

25. Contracting Strategy & Plan
Types of Contracts proposed for:
Feasibility Phase:
Basic Engineering Phase:
Execution Phase:
Construction:

26. Project Road Map
Agree the Current Starting Gate and Key Deliverables for Future Gates or Milestones
Define starting gate or milestone:
Define Next Gate or Milestone Deliverables and
Dates for:
Business deliverables
Technical deliverables
Projects deliverables

27. Project Ground Rules Technical Ground Rules Project specifications
Life span of the project
Cost, schedule or quality driven
Plant safety
Human Aspects
How are we going to work together ?
What are the “rules of engagement” for the team
People health and safety issues
Team member availability
Decision making process

28. Next Steps
Decide on and write down the next steps during and after the Framing and Alignment Meeting with completion dates and responsible persons

29. Conclusion
The results from the Framing and Alignment session serves the following purposes:
To achieve alignment on the WHY, the WHAT, and the HOW of a project
Ensuring that project objectives are
aligned with company objectives.
Forms the basis of the Project Charter
Forms the basis of the Project Execution Plan

30. Sasol Business Development & Implementation Model
Project Execution
Operational Business
Front End Loading
Implementation
Business/ Operations
Business Case
Business Plan
Final Business Plan
The Business
Running Entity
Post Audit Report
Engineering/ Technical
Preliminary Eng. Proposals
Conceptual Eng. Proposal
Basic Eng. Package
Technical Integrity
Start-up Assistance
Performance Certified
Project Management
Project Execution Assessment
Project Execution Philosophy
Project Execution Plan
Project as per Execution Plan
Project Close-out & Review Plan
Project Close-out Report
Sponsor
Feasibility Charter
Basic Development Charter
Project Charter
Governance
Probability of Business Development proceeding
Focus
Idea Generation
Idea Packaging 1
Pre-
feasibility 2 3
Basic Development 4 5 6
Evaluation/
Operation
Feasibility
Execution
Start-up 7
Opportunity
scanning
Brain storming
R&D Stage
Gate Model
Business
enquiries
Business Planning
Identify & assess
opportunity
Assess business
alternatives,
uncertainties & risks
Company Strategy
Alignment
Accuracy + 50%
Facility Planning
Develop & select best
alternatives
Select Technology
Execution & Design
philosophies
Develop Business
opportunity
Accuracy + 30%
Project Planning
Optimised & fully
defined scope
Authority Engineering
Execution Plan
Accuracy (+ 10% to +
20%) Depending on
contracting strategy
Provide assets according to Business Plan
Implement with
minimum changes
Facility & business
systems ready for
start-up
Owner quality
assurance
Safe start-up of the assets and business systems
End-of job
documentation
Steady operation
In specification
product
SBU acceptance
Evaluation to ensure project met objectives
Performance test
Start business
support
Post project audit
Phase objectives
Track Deliverables
30%
50%
70%
95%
100%
100%
100%
right
opportunity?
continue/abort/
rework
accept next
phase plan
right business
solution?
continue/ rework/
abort
principle approval
accept next
phase plan
strategy fit
continue /
abort
accept next
phase plan
project authorisation
optimum project
definition
continue/ rework/
abort
accept next phase
plan
ready for operation
approve start-up
beneficial
operation
stable operating
plant
quality product
all objectives met
acceptance of
post audit &
close-out reports
Gate Criteria
Copyright: © Sasol Technology (Pty) Ltd 2002, revision 4, 28 February 2003