Strategic Planning

Strategic PlanningMarch, 2009

Tamara PetrusawichDirector of Strategy and Enterprise Architecture

Presentation abstract

In theory, business strategy should drive a portfolio of IT projects prioritized according to business drivers and aligned with the businesses' risk tolerance.

In reality, different business lines have different priorities and risk tolerance. IT also has its own portfolio of projects necessary to maintain operation levels.

How does an IT organization balance competing agendas while ensuring maximum value is delivered to each business line and the company as a whole?

Having a clearly defined strategy of its own is the first step.

Why Develop a Strategy?

“The future influences the present just as much as

the past”. - Friedrich Nietzsche

“First, I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the Moon ”. - John F. Kennedy

“Lead, follow, or get out of the way.

- Thomas Paine

GIS Operating Model

Business Partners

Functional Leadership

Leveraged Service Delivery

(Expertise & Scale)

• Policy & compliance • Functional policies • Functional excellence

• Low-cost, high quality• Operational excellence• Service excellence• Transparency

• Strategic focus • Functional lead in the business• Liaison for leveraged services • Potential cross-functional responsibilities

Services Model

Removed examples of various group / tower strategies

One Team

Value Proposition

Deliver higher quality, lower cost, shortened cycle time services to improve competitive position and functional stewardship

Enable employees to deepen skills, sharpen focus and create opportunities to contribute and collaborate on a global scale

GIS Various Strategies / Initiatives

Upstream IS Focus Areas

Proactively support growth of production and

reserves

Proactively support optimization of legacy business

Enable step-function change in Upstream operations to compress cycle time

Maintain and Improve general GIS operating efficiency

Commercial IS Focus Areas

Enable expansion of existing businesses through operational excellence

Support the entry into new markets Increase Storage/Pipeline/Marine transport capacity

Corporate IS Focus Areas (draft)

Corporate Stewardship

Business / Service model imp.

Streamline Processes Globalization of services

Enabling Tools (transactional excellence)

Downstream IS Focus Areas

Ensure Downstream applications and services are available and usable

hold business wide IT costs flat year over year

Deliver value with business aligned IT projects

Address weakness and opportunities in the functional capabilities of our systems

LIS Focus Areas

IS Focus Areas(from culture doc to be used

at BP summit)

Business

Success

World Class Service / Performance Excellence

Value

Creation

Operational Excellence

Exceptional Workforce

Business

Success

World Class Service / Performance Excellence

Value

Creation



GIS Strategy on a Page

IS Focus Areas(from Marty’s goal slide)

Enhance Service Management Build One Team Adopt Enterprise Architecture

Drive Processes Excellence

Safety Business Alignment People Corp / Functional Alignment

COP Strategies

Financial Performance Manage & Optimize assets How decisions impact future performance

Ability to fund capital projectsCOP LRP

categories

Financial Optimization Operations Excellence Project Execution Capital DisciplineCOP “response”to environment

Build on scale and integration

Focus on execution of growth projects

Operations Excellence

Increase shareholder distributions

Utilize strengths in people & technologyCOP Corporate

Strategy

Fund Capital Program Move to AA Credit Rating Annual Dividend Increase

Share Repurchases

Financial Strategy

Capture upside through focused exploration & BD

Deliver Major projects and Drilling programs

Maximize Value from existing assets

Disciplined & consistent capital programUpstream Strategy

Operating Excellence

Cost Management

Margin Enhancement

Profitable Growth

Portfolio ManagementDownstream Strategy

Expansion of existing business

Increase storage & transport capacity

Maintain Global reach Capture opportunities from volatile marketsCommercial

Strategy

GIS Strategy

Strategic Focus Areas

Strategic Focus Areas

KeyBusinessObjectives

KeyBusinessObjectives



World Class Service and Performance


Business Success

Business Success

Creating Value

Creating Value

Performance improvements enabling agreed to annual growth rate while holding GIS budget flat

Performance improvements enabling agreed to annual growth rate while holding GIS budget flat

Be the benchmark for service delivery excellence and a catalyst forinnovative solutions to deliver world-class business results

Be the benchmark for service delivery excellence and a catalyst forinnovative solutions to deliver world-class business results

VisionVision

Service portfolio aligned with the business processes they support

Service portfolio aligned with the business processes they support

Project portfolio, functional strategy and individual goals prioritized and aligned with

key business strategies

Project portfolio, functional strategy and individual goals prioritized and aligned with

key business strategies

Effective, motivated workforce providing

quality service,

prepared for the future

Effective, motivated workforce providing

quality service,

prepared for the future



Deliver high quality, cost effective services that improve ConocoPhillips competitive position while maintaining functional stewardship

MissionMission

IS operating assets are managed, protected and optimized

IS operating assets are managed, protected and optimized

Downstream

• Improve U.S. Marketing POS • Exploit SAP by improving system usability, data and process standards• Improve cross Supply Chain transparency from Refinery product tanks to Marketing terminals• Establish Process Control Partnership• Operational Excellence

Upstream

• Proactively support growth of production and reserves• Proactively support optimization of legacy business• Enable step-function change in Upstream operations to compress cycle time• Operational Excellence

Commercial

• Expansion of existing businesses• Increase storage/pipeline/marine transport capacity• Support the entry into new markets• Operational Excellence

Alignment to Key IS Business Strategies

Functional Stewardship

CorporateStaffs

• Globalizing services• Decision support / optimization• Meet compliance responsibilities• Corporate stewardship – environmental, financial, • Functional Excellence – similar to what we have for ourselves• Operational Excellence

Project portfolio, functional strategy and individual goals prioritized and aligned with key business strategies

• Service portfolio aligned with the business processes they support • Performance improvements enabling agreed to annual growth rate while holding GIS budget flat• IS operating assets are managed, protected and optimized (Operational Excellence)• Effective, motivated workforce providing quality service, prepared for the future

Removed detailed goals associated with strategic focus areas


• Supervisory Excellence Program – LIS Sustainability Plan• Performance Management• Meaningful Career Discussions• Training Framework – for all GIS employees

• BP Skills and Training Plans• LIS Skills and Training Plans• Future Supervisor Training needs – supervising remote workers,

resource management, HR system changes• Leadership Skills and Training• GIS specific HSE training program (ie PRIDE)• Value Chain Class• Culture – Partnership, Alignment, Ownership

• Mentoring• Guest Auditors, Cross Functional Internships, other programs for

existing staff to build skills and knowledge in small bites.

Effective, motivated workforce providing quality service, prepared for the futureEffective, motivated workforce providing quality service, prepared for the future

Employee Development Workforce Planning

Retention

• Sourcing Strategy – who, what, when, where• Intern and New Hire program – US• Intern and New Hire program – Globalize• Recruiting US – Interns, New Hires, Experienced Hires• Recruiting Int’l – Interns, New Hires, Experienced Hires• University Relations• Experienced hires• 3rd party sourcing

• TMT: Succession Planning, IDPs, Hi Pot / Emerging Talent rotation program

• Manage temp pool • Annual review of Roles & Responsibilities (One Team)• Diversity Initiatives – working with different cultures

(geographic, demographic, company – JVs)• Job grade evaluation

• Develop position and support environment for Telecommuting, hoteling, flex time, other alternate work styles

• Computer World 100 Best Places to Work• EOS Response Plan – Recognition Culture (STAR)• TMT Promotions, Moves, Attrition KPIs

Communication• GIS Professional Intranet cleanup / rebuild• Education / Updates – Web Chats, LIS Supervisor Calls,

Town Halls• Consolidated weekly updates – One Team / One Answer; • Social Networking – Blogs• Project Communication (Internal GIS projects)• Surveys / Measurements• Day in the Life• Knowledge Sharing – BP NoE, Partner Portal, LIS

Supervisor NoE

Example

Strategy Alignment & Timeline

Example


Performance improvements enabling agreed to annual growth rate while holding GIS budget flatPerformance improvements enabling agreed to annual growth rate while holding GIS budget flat

IS operating assets are managed, protected and optimizedIS operating assets are managed, protected and optimized

Refresh / Upgrade

Desktop SW Business Application SW Development SW Back Office SW(monitoring, connectivity, etc.)

Capacity / Storage Growth License Renewal

Hardware

Removed COP specifics




Process Improvements Other

Enhanced Tool Set

Back OfficeBusiness Facing




Service portfolio aligned with the business processes they supportService portfolio aligned with the business processes they support


New / Enhanced Services - Business Facing Strategy Development / Path Forward

Other


Creating Value




Business Success





Lessons Learned

Change takes time. Build WITH the organization, not FOR the

organization

99% of the people are trying to do the right thing.

99% of the things people want to do are the right things to do.

Strategy should support the long term vision while providing a flexible framework for developing short term goals.

Having a clear vision and common strategy provides focus, supports flexibility and alleviates frustration.

Back Up Slide

In addition to lowering our ongoing operating costs, the Operating Model enables several other

types of benefits for each of our key stakeholders:

THE OPERATING MODEL DELIVERS MORE THAN JUST ECONOMICS

Service outcomes aligned with business needs (cost / outcome) (e.g. improvements to the service catalog)

Improvements in service quality (e.g. Upstream sub-surface conference)

A framework and processes for successfully operating our services business (e.g. WE)

Consistency across delivery groups

The satisfaction of working in a high-performing team (e.g. follow-the-sun support model)

Cross-functional career opportunities

Enhanced control (e.g. single process to audit for SOX compliance)

Ease of integrating mergers & rapid synergy capture (e.g. Burlington integration)FOR THE

OVERALL CORPORATION

FOR THE BUSINESS

UNITS

FOR GIS

FOR GIS EMPLOYEES

Value Proposition

Strategic Planning

Business

Transcript of Strategic Planning