Conoco Phillips Using BPM to Focus on Core Business - ProcessForum Nordic, Nov.14 2013
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Conoco Phillips Using BPM to Focus on Core Business - ProcessForum Nordic, Nov.14 2013

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Customer presentation at ProcessForum Nordic 2013.

Customer presentation at ProcessForum Nordic 2013.

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Conoco Phillips Using BPM to Focus on Core Business - ProcessForum Nordic, Nov.14 2013 Presentation Transcript

  • 1. Using BPM to Focus on Core Business in ConocoPhillips Reidar Matre, Director System and Process Exploitation, ConocoPhillips Norway
  • 2. Cautionary Statement The following presentation includes forward-looking statements. These statements relate to future events, such as anticipated revenues, earnings, business strategies, competitive position or other aspects of our operations or operating results. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict such as oil and gas prices; refining and marketing margins; operational hazards and drilling risks; potential failure to achieve, and potential delays in achieving expected reserves or production levels from existing and future oil and gas development projects; unsuccessful exploratory activities; unexpected cost increases or technical difficulties in constructing, maintaining or modifying company facilities; international monetary conditions and exchange controls; potential liability for remedial actions under existing or future environmental regulations or from pending or future litigation; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; general domestic and international economic and political conditions, as well as changes in tax, environmental and other laws applicable to ConocoPhillips’ business and other economic, business, competitive and/or regulatory factors affecting ConocoPhillips’ business generally as set forth in ConocoPhillips’ filings with the Securities and Exchange Commission (SEC). Use of non-GAAP financial information - This presentation includes non-GAAP financial measures, which are included to help facilitate comparison of company operating performance across periods and with peer companies. A reconciliation of these nonGAAP measures to the nearest corresponding GAAP measure is included in the appendix. Cautionary Note to U.S. Investors – The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves. We use the term "resource" in this presentation that the SEC’s guidelines prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the oil and gas disclosures in our Form 10-K and other reports and filings with the SEC. Copies are available from the SEC and from the ConocoPhillips website.
  • 3. ConocoPhillips worldwide LETIN G PRODUKSJON LETING og PRODUKSJON The largest independent E&P company in the world, based on proven reserves and production of oil and gas. Activities in 30 countries. Estimated daily production in 2013: 1,5 million barrels of oil equivalents Around 16,900 employees Headquarters in Houston, Texas Proven reserves: 8,6 billion barrels of oil equivalents Liquid products LNG and gas Gas from North America From the OECD area From outside OECD
  • 4. Eldfisk Ekofisk Heidrun Huldra Oseberg Embla Troll Visund Tor Grane Alvheim Significant interests on the Norwegian shelf Net production: 134,000 barrels oil of equivalent per day, incl. fields operated by co-venturers. Ownership interests in Gasled: Pipelines and terminals for Norwegian gas. 4 Per 31. desember 2012
  • 5. Manage our key activities and be sustainable Business Targets for ConocoPhillips Management System Efficient BU, streamlining work processes and organizations Org. development, move from procedure to business process driven Line mangers, manage and control daily activities in own processes End Users, engaged end users to manage critical activities Integrated Operations, manage collaboration with offshore facilities Continuous change, end-to-end process view will improve Six Sigma efficiency Knowledge sharing, use work processes for communication and training Document structure, use process maps and requirements instead of procedures 5
  • 6. ConocoPhillips Norway BU Management System Business  Processes Support Processes Goals & KPI’s Knowledge Sharing Management Processes Network of Excellence 6
  • 7. Management system development From procedures to established process driven Management System Phase 1 – Develop Standard for BPM and the Management System including APQC based identification of high-level value chains Phase 2 – Develop Process Repository Content including modeling conventions (collaboration map template) Phase 3 – Integrate strategy, goals, KPI’s and documents in all key processes resulting in a process oriented Management System Phase 4 – Opportunity based level three and four process mapping using collaboration map template 7
  • 8. Phase 1: Develop high-level value chains and related structure Process Hierarchy Level 1: Key Value Chains  Established one Management System and one BPM procedure  The Process hierarchy, consisting of four levels, and numbering is a merged version of the APQC framework for Oil & Gas Upstream and client customization  Process hierarchy:  1 Management processes  14 Core upstream business processes  6 Support processes  Appointed key individuals with team members to represent each process 8
  • 9. ConocoPhillips Norway BU Management System Business  Processes Support Processes Goals & KPI’s Knowledge Sharing Management Processes Network of Excellence 9
  • 10. Phase 2: Develop Process Repository Content BPM & Management System Level 2 Example  Mapping of 21 key processes on level 2 as value chains and sub-elements  Mapping of 21 key processes on level 2 as collaboration maps (management engagement)  Preparing, training and supporting the organization in process analysis and mapping  Communicated COPNO standard for process design and analysis 10
  • 11. Phase 2: Customized Norway BU process model template (collaboration maps) Modeling Conventions Example  Drill down in process hierarchy for details, both through value chains and principle models  Principle process model/collaboration map from business management perspective.  Technical process model/collaboration maps from workforce perspective.  Dedicated swim lanes for key organizational units, including Applications and Documents  Interaction between the different organizational groups – visualized by standardized color coding 11
  • 12. Process model example (collaboration map for Risk Assessment) 12
  • 13. Process map for Green Tag Permit (with requirement) 13
  • 14. Process map for Green Tag Permit (with requirement) 14
  • 15. Phase 3: Management System Integration Business focus  Stronger connection between yearly goals & KPI’s vs processes & activities  Correlation of existing applications (300) with all 21 key processes  Correlation of existing governing documentation (400) with all key 21 processes  Two way connection between procedures and processes  Formalize all governing documentation including requirements as procedures  Keeping track of maturity, status and progress in many parallel streams  Integration of intranett based management system incl. procedure portal  Mapping of principle and technical collaboration maps (350) 15
  • 16. Phase 3: Management System Integration MS administrative structure 16
  • 17. Phase 4: Opportunity based level three and four process mapping (collaboration maps) Developed best practice process mapping  Focus on opportunities to improve core business (efficiency and safety) on a voluntary bases  Facilitate BPM work groups with minimum formalization to build momentum  Clarify interaction and dependencies between key processes  Formal requirements for use of “process model template” in all improvement projects, including IT  Same BPM team facilitates all process mapping with work groups/ line managers  Same work groups are responsible for communication, training and continuous development of as-is process models/ business activities  Line manager and process owner is most often the same person  Develop job descriptions based on process interaction and business activities  Basis for individual performance agreement with supervisor 17
  • 18. Questions from the audience BPM is an ongoing journey with a lifecycle perspective 18
  • 19. Summary Experiences  Process team and not the owner role have to be in focus along with key personnel  Process ownership is best handled by Process team appointed by line managers  Management System serves as the basis for communication and for further BPM activities inside each individual function  Communicate clearly that this is core business – not a one-time initiative  Resistance to change can be reduced by involving right people/end users  No need for selling – ”this is your job”  Develop in live systems  Ability to influence/improve their work processes by participating in the process teams/network.  Training for new employees and experienced employees into new roles  Managers gain a process oriented view of understanding their responsibilities and how their functional unit relates to other processes 19
  • 20. Thank you for your attention! 20