Strategic Planning March, 2009 Tamara Petrusawich Director of Strategy and Enterprise Architecture.
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Transcript of Strategic Planning March, 2009 Tamara Petrusawich Director 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
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
Operational Excellence
Exceptional Workforce
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
Operational Excellence
Operational Excellence
World Class Service and Performance
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
Exceptional Workforce
Exceptional Workforce
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
Exceptional Workforce
• 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
Operational Excellence
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
Operational Excellence
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
Process Improvements Other
Enhanced Tool Set
Back OfficeBusiness Facing
Removed COP specifics
World Class Service and Performance
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
Service portfolio aligned with the business processes they supportService portfolio aligned with the business processes they support
IS operating assets are managed, protected and optimizedIS operating assets are managed, protected and optimized
New / Enhanced Services - Business Facing Strategy Development / Path Forward
Other
Removed COP specifics
Creating Value
Service portfolio aligned with the business processes they supportService 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
Business Success
IS operating assets are managed, protected and optimizedIS operating assets are managed, protected and optimized
Service portfolio aligned with the business processes they supportService 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
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.
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