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Wipro - Unleashing the full potential

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Over the last ten years, an unprecedented array of technologies has become available to oil and gas enterprises. There has been, and continues to be, a steady flow of technological innovations that …

Over the last ten years, an unprecedented array of technologies has become available to oil and gas enterprises. There has been, and continues to be, a steady flow of technological innovations that impact both upstream and downstream sectors. But in many cases the benefits of new initiatives have not met expectations. Corporations often do not realize the promised return on investment that led them to fund and resource key initiatives.

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  • 1. Unleashing the Full Potentialof Technology InitiativesEffective Execution in a Global EnterpriseBy James Lawnin, Mark Allen, and S. Kent Gryskiewicz WIPRO TECHNOLOGIES
  • 2. EXECUTIVE SUMMARYOver the last ten years, an unprecedented array of technologies has become available to oil andgas enterprises. There has been, and continues to be, a steady flow of technological innovationsthat impact both upstream and downstream sectors. But in many cases the benefits of newinitiatives have not met expectations. Corporations often do not realize the promised return oninvestment that led them to fund and resource key initiatives.In our work with oil and gas companies over a number of years, we have seen the samechallenges arise over and over again, company after company. Ideas go through a disciplinedproject creation methodology, receive approval and funding, and move to a well-executed designphase and on to roll out— only to founder or die before full implementation is realized. The lossof money, productivity, and business benefit that this causes are immeasurable.Why is this a universal pattern when it comes to deploying global technology initiatives? We haveidentified seven common “sticking points” that slow down or kill initiatives along with the leadingpractices that will “unstick” them. Sticking Point Leading Practice Too many initiatives in play Include organizational capacity for new initiative adoption in selection criteria. No business participation in project Select and commit to a well-balanced governance governance structure within the business unit as a prerequisite to project start. Communication to the business falls Report both project progress and impact to the short. business in a meaningful way. Business case preparation is limited. Create business cases tailored to specific audiences and stakeholders. Lack of a strong sales approach. Formulate a sales approach for deployment. Business units are expected to fund Fund project design and proof of concept at implementation without a clear corporate/group level and implementation at understanding of solution benefits. business unit level. Lack of project coordination leading Create master plans to improve coordination and to initiative burn out in the business minimize overload.This white paper, the first in a series of leading practice white papers, addresses the problems thatare commonly encountered in global technology deployments and the solutions that will solve them.
  • 3. TABLE OF CONTENTSIntroduction ......................................................................................................................4Sticking Points ...................................................................................................................5 Sticking Point 1: Too Many Initiatives in Play .....................................................................................5 Sticking Point 2: No Business Participation in Project Governance .............................................................6 Sticking Point 3: Communication to the Business Falls Short ....................................................................6 Sticking Point 4: Business Case Preparation Is Limited ..........................................................................6 Sticking Point 5: Lack of a Strong Sales Approach ................................................................................7 Sticking Point 6: Business units are expected to fund implementation without a clear understanding of solution benefits....................................................................................................................7 Sticking Point 7: Lack of Project Coordination Leading to Initiative Burnout in the Business ................................7Leading Practices for Effective Execution ..........................................................................8 Leading Practice 1: Include organizational capacity for new initiative adoption in selection criteria .......................8 Leading Practice 2: Select and commit to a well-balanced steering team as a prerequisite to project start ...............8 Leading Practice 3: Report both project progress and impact to the business in a meaningful way ........................9 Leading Practice 4: Create business cases tailored to specific audiences and stakeholders. ................................9 Leading Practice 5: Formulate a sales approach for deployment. .............................................................9 Leading Practice 6: Fund project assessment/design at the corporate level and implementation at the business unit level. ...............................................................................................................10 Leading Practice 7: Create an overall master plan to improve project coordination and minimize overload. .............10Unleashing Big Potential....................................................................................................11Creating an Effective Deployment Model: A Client Experience.........................................12About the Authors.............................................................................................................13
  • 4. Unleashing the Full Potential of Technology InitiativesEffective Execution in a Global EnterpriseIntroduction“May you live in interesting times.”This ancient Chinese saying, meant as a curse wishing the recipient much challenge and upheaval, can be used tocharacterize the first decade of the twenty-first century, which has overflowed with interesting times for the oil andgas industry. Upheaval in the global economy and a range of sociopolitical events has spawned unprecedentedbusiness challenges.Turning these challenges into opportunities, an impressive array of technologies has become available to oil and gasenterprises over the past ten years. There has been, and continues to be, a steady flow of technological innovationsthat impact both upstream and downstream sectors. Smart technology, process control, ERP systems, procurementportals, digital oilfield, and intelligent refinery are examples of technological advancements with big potential forfinding and refining more oil, cutting operational costs, and improving safety performance.These technologies provide tangible benefits to business when implemented; however, the dissemination of thesetechnologies across an enterprise continues to be a stumbling block for most corporations. As a result, corporationsoften do not realize the promised return on investment that led them to fund and resource key initiatives. It is notunusual for global initiatives, each with a compelling business case and well-executed design, to founder, balloon incost, or get cancelled before full implementation is realized.The inability to fully unleash the potential of technology initiatives has a number of root causes. These programs arecomplex, spanning multiple business units and many countries around the world. Their success depends on bothoperational and human factors, and failure to fully execute each step of the implementation process can create oneor more “sticking points” that serve as obstacles to success.4 | www.wipro.com WIPRO TECHNOLOGIES
  • 5. Unleashing the Full Potential of Technology InitiativesEffective Execution in a Global EnterpriseSticking PointsYear on year, business units must find ways to decrease costs and increase productivity in operational areas, whilecorporate departments must do the same across the enterprise. Management commitment is high, impressiveexpertise and knowledge is applied to the challenge, and innovations abound. But in spite of the focus, funding, andattention put into deployment of difference-making technologies across an enterprise, a very small percentage oflaunched projects actually reach the finish line and become part of operational processes.In our work with a number of companies to increase the execution effectiveness of global technology initiatives, wehave identified universal “sticking points” that appear over and over again, no matter the nature of the initiative orwhere the sponsoring entity sits in the organization. These sticking points impede project progress, projectcompletion, and achievement of the benefits upon which the funding decision was based.Sticking Point 1: Too Many Initiatives in PlayLarge scale deployment of an initiative requires good alignment of people, process, and technology and very oftenrequires that changes be made in all three areas. Various obstacles can significantly impede progress and end upbogging down an initiative. Resources originally allocated to an initiative may be rerouted, unforeseen challengesmay arise that require additional time, and peoples natural and almost reflexive resistance to change may play apart in slowing things down. There are aspects of organizational culture that also contribute to the slowdown ofprojects during implementation. These are some examples of what can cause initiatives to slow down significantlyonce they enter the implementation phase.Regardless of the origin of the slowdown, one thing is certain: It has very little impact on the selection of newinitiatives for deployment. Corporate decision making criteria often does not account for the possible impact on thereceiving organizations bandwidth and what it can accept and effectively execute when it comes to issuing a newinitiative. With each budget cycle, funding gets approved for additional projects meant to address operationalchallenges and help improve business performance. And with funding, those projects move into implementation andout into the businesses to join the other projects already in implementation. The result: Too many initiatives in playrequiring significant resources and business commitment to be deployed effectively and efficiently.5 | www.wipro.com WIPRO TECHNOLOGIES
  • 6. Unleashing the Full Potential of Technology InitiativesEffective Execution in a Global EnterpriseSticking Point 2: No Business Participation in Project GovernanceGenerally speaking, internal project governance is effective and efficient over a project lifecycle. There are many bestpractices and corporate standards for governance models, internal communication requirements, and performancemanagement. The sticking point in project governance is the absence of structured engagement and support frommultiple levels in the impacted business.Typically, a project sponsor in the business receives periodic updates from project team, which assumes that he orshe will also provide governance and remove roadblocks that impact the projects success. However, if a projectsponsor is selected at a high level in the organization (which is common) and does not have additional governancesupport from other levels of the organization, the role of the sponsor becomes that of information recipient ratherthan active participant. Where this happens, the implementation team engages the business and meets significant,and very valid, resistance. Resistance takes forms such as unwillingness to provide resources, disagreement with theobjective or need for the solution, or difference of opinion about the initiative priority. This is the result of a lack ineffective governance across the business to set priorities, override resistance, and actively support the project teamin implementation.Sticking Point 3: Communication to the Business Falls ShortProject teams are generally good at keeping the business updated on project status in terms of timeline, activities,and budget. But they dont do a good job of communicating about projects in a way that resonates with the focus ofthe business. Each business has its own set of goals and priorities, and its own definition of what things look likewhen they are working. Communication from the project team does not do a good job of tying the initiative to thesegoals and priorities. In addition, there is not usually communication into the business about how the various in-flightinitiatives relate to each other. Without these linkages made clear, the only thing the business sees can are multipleinitiatives all asking for the same information and resources. With communication to the project team to thebusiness falling short, interest and support for the initiative can falter and fade.Sticking Point 4: Business Case Preparation Is LimitedProject teams typically pursue one of two for business case preparation: • They will create a single business case and apply it across the enterprise for project approval, regardless of the variations in business unit geography, culture, recovery mechanisms; or • They will focus a business case on a single audience (e.g., to top level business decision makers) and neglect the development of additional business cases for other audiences (e.g., the end users).Either tactic is insufficient.6 | www.wipro.com WIPRO TECHNOLOGIES
  • 7. Unleashing the Full Potential of Technology InitiativesEffective Execution in a Global EnterpriseSticking Point 5: Lack of a Strong Sales ApproachWhile deployment of an initiative may be well planned from a project management perspective, there is rarely astep that focuses on ensuring that intended beneficiaries of the initiative (e.g., the business unit management,operations staff) have bought in to its business value. In other words, the project team doesnt sell the initiative intothe business. Without a strong sales approach, local leadership may resist any initiatives coming from outside(especially corporate initiatives) and users may resist changes in work processes.The importance of selling an initiative to all key audiences in a business is consistently underestimated by projectteams. Everything else could be well executed, and a project could fail solely because the need to sell (and continueto sell throughout deployment) was trivialized or rejected.Sticking Point 6: Business units are expected to fund implementation without aclear understanding of solution benefits.Requiring a business unit to shoulder all the expenses of a new technology deployment can create a big stickingpoint. The project could be perceived as being foisted upon business unit management with no proof of concept,which raises resistance and creates friction between the business and the project team. In this situation, the projectis not likely to make meaningful progress or stay on track the implementation plan.At the other end of the topic, 100 percent corporate funding is not likely to ensure a projects success. With noinvestment from their own budget into the initiative, business unit management likely wont have the motivationand commitment that would be present if they were fiscally accountable for a portion of the deployment.Sticking Point 7:Lack of Project Coordination Leading to Initiative Burnout in the BusinessThis sticking point circles back to two prior points: the tendency to fund development of new ideas year on yearrather than focusing on in-flight projects and lack of communication outside of the project team.Lack of coordination occurs due to initiatives being launched by different corporate groups and also within businessunits. It is not unusual for projects to come into being in far flung parts of the enterprise with little or no cross-communication with other projects.Regardless of the reason, the impact on the organization is the use of the same key talent by different groups. Oneengineer may receive visits from three or four project teams asking for assistance in the space of a month. Overtime, this kind of activity can lead to “initiative burnout,” and business units end up refusing or limiting staffparticipation in the development of new ideas.7 | www.wipro.com WIPRO TECHNOLOGIES
  • 8. Unleashing the Full Potential of Technology InitiativesEffective Execution in a Global EnterpriseLeading Practices for Effective ExecutionIn the course of our work with clients in global enterprises, we have identified leading practices that will avoid or“unstick” project obstacles. Further, these practices help corporate and business units unleash the huge unrealizedpotential of the initiatives that are put into play.Leading Practice 1:Include organizational capacity for new initiative adoption in selection criteria.As we noted above, new initiatives in a business unit are often added to projects that are already in flight. However,the unleashed potential of an in-flight project is huge, much bigger than any new initiative. Avoid spreading businessresources too thin by trying to deal with fifteen initiatives. Better to fine tune focus on the projects that offer themost value and stop activities on those with less value. Six well-implemented initiatives will produce much greatervalue to the business than fifteen that cant get completed.In the longer term, a change in organizational culture can improve deployment effectiveness. In “hero” cultures,there are more rewards for managing 15 projects (even if not done well) than for executing six (even if done well).Alternatively, the culture may confer more rewards on originators of new projects than on the people who completethem. Taking steps to shift the culture to support the execution of fewer ideas all the way to completion will pay offbig over time.One way to do this is by including organizational capacity for new initiative adoption in selection criteria fortechnology deployment across an enterprise.Leading Practice 2:Select and commit to a well-balanced governance structure within the businessunit as a prerequisite to project start.The active participation by business decision makers in any project governance is a must. Members of the businessmust be involved in the deployment process, making decisions about timing and resources, articulating business unitrequirements, and actively helping the project team succeed. This can be formalized through creation of agovernance structure that includes business staff as well as project team members. An active steering committeewith strong project governance, makes project decisions that align with business priorities, frees up neededresources, and adjusts the project timeline.Prior to any engagement, the selection of a well-balanced steering committee and the articulation of clear roles,responsibilities, and time commitments must take place. If these prerequisites are not achieved, or the organizationdoes not commit, the project should be put on hold.8 | www.wipro.com WIPRO TECHNOLOGIES
  • 9. Unleashing the Full Potential of Technology InitiativesEffective Execution in a Global EnterpriseLeading Practice 3:Report both project progress and impact to the business in a meaningful way.A communication methodology that addresses business interests is key to maintaining initiative momentum. Inaddition to keeping the business informed about project progress, communicate the value that is being produced inthe process. Quantifying results that the business cares about (e.g., “we have saved the business $X million to date,”or “we have helped cut 2 days from this activity”) will help management understand how the project is impactingoperations.Leading Practice 4:Create business cases tailored to specific audiences and stakeholders.Each business is different from the next, even if operations are similar. As a result, business cases must be tailoredand made fit-for-purpose based on unique objectives and context of the specific business units, and to variousstakeholders within each business unit.The objectives of a business unit must be considered in preparation of a business case and emphasis must betailored for the various audiences. Typical business cases must demonstrate the impact of the technology on: 1)capacity, 2) capability, 3) operation cost, and 4) production. Taking the time to thoroughly understand the culture,processes, and issues of the business unit it is selling its solution to, and then creating a business case for thatparticular group, will remove many barriers, and is the first step in measuring the post-implementation impact of theinitiative.Leading Practice 5: Formulate a sales approach for deployment.If an initiative is valuable enough to roll out globally, it is worth the effort and resources to sell it effectively. As withany sales effort, clear articulation of pertinent and compelling benefits is needed. This requires a goodunderstanding of the “buyer” as well as excellent communication and influence skills. Selling the solution to thebusiness includes tactics like: • Starting with “easy wins,” implementing the solution in business units or work groups who are already bought in and who will share the value of the solution with peers. • Cultivating business influencers and facilitating their advocacy of the solution. • Communicating successes on a regular basis through multiple avenues. • Measuring and reporting business benefits.9 | www.wipro.com WIPRO TECHNOLOGIES
  • 10. Unleashing the Full Potential of Technology InitiativesEffective Execution in a Global EnterpriseLeading Practice 6:Fund project design and proof of concept at corporate/group level andimplementation at business unit level.To make sure that initiatives meet the needs of the broadest group of stakeholders with a common solution, theearly phases of an initiative need to be funded centrally. Idea appraisal and solution design should be done incollaboration with broad representation from the appropriate business units. This allows the cost to be spreadbroadly and encourages synergies that would not be available if funding was business-unit based.Project design needs to include funds to: • Validate the business benefits. • Develop specific business cases that will sell the solution to management and operational - staff . • Execution of a proof of concept in each separate business.Funding for implementation needs to come from the business unit. This gives the business unit a stake in theprojects success, helps hold it accountable, and motivates buy in for longer term success.Leading Practice 7:Create overall master plans to improve project coordination and minimizeoverload.A master plan is a timeline-based document that aggregates major initiatives, including project stages, estimates,and resource requirements. It includes all major initiatives and develops a detailed overarching plan showing inter-project dependencies, project milestones, and staging processes. A master plan allows multiple initiatives to betransparent to each other, so that one project team knows what other project teams are doing. As a high levelsummary of all project plans, a master plan will also mitigate initiative overload because teams are less likely torepeatedly tap the same talent. Each business unit should also develop a master plan to coordinate business unitactivities with corporate initiatives. These plans can ensure effective coordination and align expectations withmanagement, project teams, and business unit staff.10 | www.wipro.com WIPRO TECHNOLOGIES
  • 11. Unleashing the Full Potential of Technology InitiativesEffective Execution in a Global EnterpriseUnleashing Big PotentialThe seven sticking points presented in this paper are the most common obstacles we have encountered whenhelping clients deploy global technology initiatives. We identified the corresponding leading practices over time andby way of multiple engagements and we are confident that they will allow enterprises to unleash the big potential oftheir own technology initiatives.It is important to keep in mind that correcting the deployment process will be a project itself. It will need to beplanned and managed accordingly—using the leading practices we have discussed. Communication, changemanagement, sales, and business unit governance, for example, will be elements of the correction project.When a company has pinpointed the sticking points that are impeding its project deployment process, werecommend prioritizing and concentrating on unsticking one at a time. For example, if a company determines thatineffective deployment of in-flight projects, lack of a strong sales approach, and lack of coordination leading toinitiative overload are adversely impacting project success, it would be best to correct the most significant stickingpoint first, then move on to the second, and then the third. They may require several months to several years,depending on the severity and how much of the company the sticking point is affecting.11 | www.wipro.com WIPRO TECHNOLOGIES
  • 12. Unleashing the Full Potential of Technology InitiativesEffective Execution in a Global EnterpriseCreating an Effective Deployment Model: A Client ExperienceA global oil giant elected to develop proprietary software for a strategic upstream program. Each application wouldrequire global deployment; however, at the time the first application was ready, the enterprise did not have astandard deployment process in place. As a result, the implementation of the solution across the company’s manybusiness units was extremely challenging. For example: • Business managers did not buy in to the solution as the team has assumed they would. • Documents pertaining to the application were sitting in multiple repositories with no version control. • The deployment project did not have established processes, templates, or documentation to support the team’s activities. • No post-deployment plans had been created (e.g., how the application would be supported from a business perspective, or how to ensure that benefits realization is documented)Though the application implementation was completed, it required more time, resources, and problem solving thaninitially expected. The initiative was an important strategic undertaking for the company, and it was extremelyimportant that its applications be effectively deployed across the enterprise, no matter the location, the business, orthe asset. Based on this less-than-effective initial experience, the company launched an effort to ensure that futuredeployments would take place at the required efficiency level.We participated with the project team in this effort and helped the client model their deployment process to acommercial software vendor model. In other words, we assisted in creating the types of processes and tools thatthird party vendors utilize to sell, implement, and support their applications. Today, four years after that first difficultdeployment, the company has a clear approach to its global application implementations. The approach addressesbusiness requirements, technical requirements, deployment scale, timing, and tasks, and post-deployment support.Standard templates have been created and stored in a central repository. Because each business unit has uniquecharacteristics, project teams tailor these templates as needed for specific deployments.The creation of a multi-faceted, business-focused process will support significant performance improvement indeployments as the company’s program becomes firmly established.12 | www.wipro.com WIPRO TECHNOLOGIES
  • 13. Unleashing the Full Potential of Technology InitiativesEffective Execution in a Global EnterpriseAbout the AuthorsJames LawninMr. Lawnin is Vice President and leader of Wipro’s Global Energy Consulting Practice. He has over 25 years oil andgas experience: 15 years as an energy consultant for several large management consulting firms and 10 yearsexperience as a petroleum engineer, Before joining Wipro, Mr. Lawnin led the oil and gas industry practice for SAIC,a large consulting and outsourcing firm. He also led their global consulting and systems integration practice. Heholds certifications as a Project Management Professional (PMP) and a Black Belt 6 Sigma, and has held certificationsas a licensed CPA, a Chartered Financial Analyst (CFA), Certified Financial Planner (CFP) and licensed ProfessionalEngineer (PE). He is a frequent lecturer on solving complex oil and gas industry issues through innovative solutions.Mark AllenMr. Allen is a Partner in Wipro’s Global Energy Consulting Practice. He has over 20 years of experience in the oil andgas industry, working for one of the industry’s Super Majors for six years, then 14 years with two global managementconsulting firms. Prior to joining Wipro, Mr. Allen was the upstream industry lead for SAIC’s oil and gas practice. Mr.Allen’s focus is in the upstream oil and gas, and midstream natural gas and liquids energy segments. He has a longhistory of helping oil and gas clients with process improvements, cost management, system implementations andstrategy execution.S. Kent GryskiewiczMr. Gryskiewicz is a Senior Manager with Wipro’s Energy & Utilities Global Consulting Practice. Mr. Gryskiewicz isaccountable for global strategy, delivery, management, and growth of the Digital Oilfield Solutions program for aSuper Major. Mr. Gryskiewicz has over four years of major technology deployment in the Energy space. Prior toworking in the energy sector Mr. Gryskiewicz played a similar role for US Government agencies. Experienced innational and international political, defense, and energy sectors, Mr. Gryskiewicz has cross-cultural business fluencyin the Middle East, Europe, South East Asia, and Americas. Mr. Gryskiewicz is fluent in English, Turkish, andconversational French.13 | www.wipro.com WIPRO TECHNOLOGIES
  • 14. Unleashing the Full Potential of Technology InitiativesEffective Execution in a Global EnterpriseABOUT WIPRO TECHNOLOGIESWipro is the first PCMM Level 5 and SEI CMMi Level 5 certified IT Services Company globally. Wipro provides comprehensive ITsolutions and services (including systems integration, IS outsourcing, package implementation, software application developmentand maintenance) and Research & Development services (hardware and software design, development and implementation) tocorporations globally.Wipros unique value proposition is further delivered through our pioneering Offshore Outsourcing Model and stringent QualityProcesses of SEI and Six Sigma.ABOUT WIPRO GLOBAL ENERGY CONSULTINGWipro Global Energy Consulting offers solutions across the entire oil and gas value chain. Practice consultants apply field-tested anddeep knowledge of the industry to a wide range of projects, programs, and services that improve performance, ensure safety, andoffer cost benefits. They also draw from Wipro’s entire enterprise to bring innovative and leading edge technologies from otherindustries for effective application in upstream and downstream operations. Our strong strategic partnerships with key technologyproviders to the oil and gas industry allow client to take full advantage of comprehensive solutions that include both the tools andthe means to implement them into business unit workflows.14 | www.wipro.com WIPRO TECHNOLOGIES