Embedded DA vs Consultative DA

Group Exercise at DAAG 2014 110 attendees

Focus of SoftwareConsultative Embedded

“Knobs for nerds”

Powerful, flexible tools for analysts, address any

situation

“Get my work done”

Support multiple roles with simple interfaces that focus on what I

care aboutExamples

Dow Agro, Eli Lilly, Chevron

How DA is RepresentedConsultative Embedded

Tell them what you are going to do. Train

before start.

Focus on problem and deliver results, creating self-motivated interest

ExamplesEli Lilly

• Knowledge —> broader vs specific training • Culture Change • Example - Embed DA Expert at Siemans H.S. • Consultative Model is used in certain circumstances —>

Embedded DA at other times

Transparency of Information

Consultative EmbeddedAnalyst passes relevant

(possibly secret) information to decision makers

Create standard work processes that drive

transparency and deal with the conflict

ExamplesEli Lilly

Issue: Information gets prettied up

Mid-Level Decisions

Consultative Embedded

Never see decisions or try to train everyone. Opportunity lost.

Provide fit for purpose tools that make relevant

information available to people as they make routine

decisions ExamplesChevron

Short Fuse Decisions Asset Integrity

Six Elements of Decision Quality: What do we want?

Consultative Embedded

Discovery interviews with decision-makers

Policy statements, mission statements, clarity of objectives

Six Elements of Decision Quality: What are our alternatives?

Consultative Embedded

Framing =>Strategy Table Teach/Train teams => Standard Frame Templates

Six Elements of Decision Quality: WHAT DO WE KNOW?

Consultative Embedded

Framing & SMEs Databases, policy capturing (debiasing)

Six Elements of Decision Quality: How do we decide?

Consultative Embedded

Model alternatives (supplement DM judgment)

Achieve clarity quickly with simple standard models

Business Process

Consultative Embedded

Issue: Do we embed tools or people people into processes?

Continuum• Skills • People • Processes • Tools • Domain Knowledge • Problem Complexity • Problem Frequency

ExampleEmpowered reservoir engineer —> improved normative

decision-making

Decision ProcessConsultative Embedded

Required for projects requiring a discovery process

Needs a frame upfront

Iterative process over a short time frame

Not necessarily reusable frame

More time-intensive

Suitable for Repeatable Projects

Lends itself to standard templates

Process is well-established

Decision criteria clear/ well-established

Transparency of Information

Consultative EmbeddedDedicated team of analysts

Work on the projects one at a time

Individual projects are time bound

Gives an ‘answer’ at the end of each project (yes or no)

Training

Simple, robust templates & tools

Accept continuous improvement

even when ‘answer’ is not obtained

Issue: 1. Non-routine maintenance in O&G production facilities 2. R&D of Technology Portfolio

Broader use of Decision Framework

Consultative EmbeddedBring in a consultant, professional facilitator

knowledgable in techniques

Framing template - easy to follow for asset teams

- generic between projects

Make it easier to push framing into the organization

ExampleShell Person! Framing Templates, VoI Templates, OF’s OTrio

Framing

Issue: Critical, Stuck, Not a typical problem, Mid-sized decisions

Consultative Embedded

Outside firm, one-off focus on tools

Have a system that shows: • Assemble these kinds of

people • Ask these types of

questions • Test these items • Community of Interest • “Sophisticate” LUI of DA

ability

Issue: Decision for production planning

Consultative Embedded

Very centrally owned and not well understood

• Commonality of term definitions (i.e. high vs low)

• Transparency to understand key drivers

• Less about rolling optimization

• Automating forecasting process

• Lookbacks and learning loops for future decision

Issue: Protect DA from Change Management

Consultative Embedded• Create/coin names for tools &

processes • Our org performs due diligence on

every decision because we won’t let ourselves use a simple bang for the buck chart

• How to protect DA processes from change in exec champions? To embed org, needs to make it their own - decision fitness. Consultative has their own names for everything.

• We don’t make decisions as a portfolio stream. We make many little decisions separate from each other. Could we reference an ongoing bang for the buck chart?

• Templates useful when orgs are initially learning new processes, but risky if using unclear terminology (excellent vs very good not defined) and not ensuring alignment

Sustainable —> Portable Customize, Transparency Use/Impact?

Consultative Embedded• Manage sponsor pushing • DA pulling • Discretionary

• Management Sponsor pulling

• DA pushing • Mandatory