This document summarizes Deloitte's transformation management and program leadership capabilities for oil and gas companies. It discusses Deloitte's dedicated team that helps clients lead and support large-scale transformations. It also outlines Deloitte's approach to transformations, which focuses on achieving strategic benefits through effective program management, operating model design, benefits management, and change management. Finally, it provides details on Deloitte's program leadership methodologies, thought leadership resources, and experience working with oil and gas clients on complex transformations.

1. Audit.Tax.Consulting.Corporate Finance.
Managing Complex
Transformations.
A summary of our transformation
management and programme leadership
capability in the Oil & Gas industry
26863 sm Managing complex:26863 sm Managing complex 3/10/08 11:29 Page 1

2. Our Programme Leadership practice 1
Our Approach to Transformations 2
Methodologies, Thought Leadership and Centre of Excellence 3
Our client experience 3
Why Deloitte? 5
Contacts 5
Contents
26863 sm Managing complex:26863 sm Managing complex 3/10/08 11:29 Page 2

3. 1
Managing Complex Transformations
Deloitte’s Oil & Gas practice has a dedicated
specialist team of programme leadership
professionals who have the knowledge, skills and
experience required to lead, advise and support large-
scale, complex transformational change. By their
very nature, organisations operating in the Oil & Gas
sector frequently undertake large-scale complex
transformations. There are significant pressures to
deliver benefits within tight time and cost
constraints whilst minimising risk. Our Programme
Leadership team draw upon skills, techniques and
expertise acquired through on the ground experience
to provide our clients with valuable advice and
support.
Our team provides solutions which address the range
of challenges facing companies as they adapt to
changing regulations, shifting political, economic
and environmental concerns, technological
developments, as well as to changes brought about
by market restructuring, mergers and acquisitions,
performance improvements, increased environmental
sensitivity and stakeholder pressures to increase
profitability. The amount of change which
organisations need to undertake requires real
expertise in the major issues and complexities around
planning, designing, structuring and effectively
executing Transformation Programmes. The ability
to shape, deliver and assure transformation is crucial
in minimising the risk of delivering the change
whilst maximising the benefits.
Our Programme Leadership
practice
Programme Leadership takes a holistic approach to the delivery of
projects and programmes in complex organisations. We align
projects with the overall strategic objectives, transforming the
business strategy into a coordinated portfolio of initiatives.
The approach addresses the need to build organisational capability
for the development and implementation of new processes,
structures and systems as well as the skills and abilities of people.
We take an integrated approach to delivering business changes,
creating a means for continuous delivery. Our approach is to build
core organisational capabilities which enable organisations to be
agile in response to their environment or markets.
Key areas Programme Leadership covers include:
• Strategy Translation – turning business strategy into
programmes of work to deliver organisations objectives.
• Programme Management – ensuring the benefits set out in the
programme of work are delivered.
• Project Management – ensuring that work packages are
delivered to time, cost and quality.
• Programme and Change Architecture – helping organisations
build capabilities that support challenges of large scale complex
change.
Our people
Programme Leadership is comprised of high calibre consultants with
a vast range of experience in programme planning and delivery across
the Oil & Gas industry. We invest in our employees who come from
a diverse range of backgrounds, by giving them access to the best
training and career development programmes.
Our consultants specialise in many areas including project and
programme delivery and management as well as risk management,
planning, governance and reporting. We work closely with our
colleagues in Human Capital and Technology Integration so together
we can provide credible solutions for the more significant and
complex challenges faced by organisations. We have an exemplary
track record in high quality programme delivery and have robust
process to assure the quality of our delivery so that you can focus
your efforts elsewhere.
Programme Leadership helps you unlock the full value of your
initiatives, especially when you have a range of complex projects
going on simultaneously. We combine deep strategic and operational
capabilities with extensive implementation experience in order to
develop value-based executable strategies and to realise and manage
benefits across your organisation.
Outputs
Outcomes
Benefits resolution
Strategic initiative
Business
strategy
Strategic portfolio
alignment
Programme deliverymanagement
Project management
ChangeArchitecture
ProgrammeArchitecture
26863 sm Managing complex:26863 sm Managing complex 3/10/08 11:29 Page 1

4. 2
Managing Complex Transformations
Our approach to advising, leading and shaping large global complex
transformations is based on our Managing Complex Transformations
(MCT) approach. This approach focuses on achieving key strategic
imperatives and benefits to deliver a sustainable and successful
transformation programme rather than the traditional project approach
of focusing only on time, cost and quality.
Through adapting this approach, organisations can create a ‘line of
sight’ between strategy and successful transformation delivery.
Based upon our extensive experience of advising, supporting and
managing complex transformations, we normally recommend
consideration of six critical themes within the Transformation
Management Office:
Our approach to transformations
Operating
m
odel design
Enterprise PM
O
Changemanagement
Planning&assurance
Benefits & value
management
Managing Complex
Transformations
Programme management,
design & governance
Programme Management, Design & Governance
• Focus on designing and shaping the transformation, developing
the vision, direction and design of the programme.
• Establishing effective governance with clear roles, accountabilities
and responsibilities across the programme. This should enable
effective supervision, decision making and necessary controls and
management.
• A fit for purpose yet flexible methodology supported by leading
tools and techniques to manage the programme and projects
effectively and efficiently.
Operating Model Design
• Design of the future Operating Model to ensure that when the
organisation is transformed, it is effective both to meet the
strategic objectives of the organisation and be congruent with the
top-down strategy and bottom-up operational realities across
business units.
• Consideration of an appropriate Target Operating Model design
of people, process and technology will enable the formulation of
a business case and creation of an integrated execution plan.
Benefits and Value Management
• Defining and developing a Benefits Management approach to
identify, define, plan, measure and report the realisation of
benefits intended from the transformation. This will involve the
development of an approach, framework, tools and techniques to
prioritise initiatives based on benefits, cost and risk, as well as
provide the approach, framework and tools to track the delivery
of benefits.
• Establishing a clear linkage between improvement initiatives and
shareholder value.
Enterprise Programme Management Office (EPMO)
• Implementing an Enterprise Programme Management Office to
monitor, co-ordinate, report and control all the transformation
activities across the projects within the transformation programme.
• Implementing intelligent processes, procedures and tools including
but not limited to planning, risk and issue management, resource
management, budgeting and financial control, change control and
quality management.
Planning & Delivery Assurance
• Definition of the scope of work, programme plan, and baselining the
activities across the projects within the transformation programme.
• A fully integrated scope and programme plan will need to be
developed.
• Specialist advice from deep industry and subject experts across all
subject areas to give independent delivery and technical advice and
assurance.
Change Management
• Assess their organisation’s readiness for change, along with the likely
impact of change on staff within the organisation.
• Strategic change needs to be managed through the development
and implementation of a tailored change strategy, which identifies
the interventions and organisational levers that will minimise
resistance to change.
More details of the Change Management aspect is covered in the
‘Translating strategy in complex environments to enable differentiation
through people’ brochure.
26863 sm Managing complex:26863 sm Managing complex 3/10/08 11:29 Page 2

5. 3
Managing Complex Transformations
When delivering projects, all our practitioners use PMM4, Deloitte’s
own Project Management Methodology. It builds on industry leading
best practice approaches to project management.
As well as PMM4, Deloitte has a suite of resources and material
available to all practitioners involved in the management of
Programmes and Programme Management Offices. We continuously
update these resources to add value to the programmes we deliver.
The majority of our staff are Prince 2 and PMI qualified and many of
our people also have MSP and Six Sigma qualifications. We have
developed independent relationships with many of the leading
programme management software vendors and can advice on which
Programme Management software solution will meet your needs.
We have Programme Leadership Centre of Excellences in the UK, US
and the Netherlands staffed with subject matter experts in managing
transformations and programmes in the Oil & Gas industry.
The Enterprise Programme Management book on delivering value was
published by Macmillan and written by David Williams and Tim Parr
from the Deloitte Programme Leadership team. This book argues that
the agile and dynamic organisation needs to develop enterprise wide
programme management as a core capability.
This starts at Board level in translating strategy into a
portfolio of programmes. Developing the structures,
systems, processes and new skills to effectively manage
and deliver these programmes is critical, but in our
experience seldom done successfully on an organisation
wide basis.
Methodologies, Thought Leadership and Centre of Excellence
De Beers, Diamond Trading Company, Transformation
Management Support
The Diamond Trading Company (DTC) is the sales and distribution
arm of De Beers Group. DTC was embarking upon a significant
objective to transform the organization by end of 2009 as a result
of a number of drivers for change. Deloitte was engaged to
structure, shape, scope, plan and design the transformation in
phase 1. This was to enable the execution of the activities to
achieve the end state vision, objectives and cost savings articulated
in the business plan.
Benefits to DTC
• DTC’s executive committee gained insight, understanding and
assurance over the transformation activities which were being
undertaken.
• Transformation activities were structured and formulated with
effective governance, reporting and oversight to enable control
and direction.
• Processes, tools and methodologies were established to enable
effective transformation management, change management,
benefits management, planning and design and operating model
design.
• Clear understanding of the gaps in the future operating model,
together with detailed action plans to remediate weaknesses.
• Baseline cost position for all business units was established along
with the process, and tool to track costs and benefits of the
transformation.
• Baseline plans were established to enable transformation
activities to be effectively tracked.
UK based Global Oil Supermajor, Exploration & Production,
Advanced Collaborative Environment
For the last two years, Deloitte have programme managed and
delivered “Project Mercury”, an enterprise transformation
programme to deploy Advanced Collaborative Environments at scale
in the client’s North Sea Oil Business. These environments allow
offshore and onshore staff to work as one combined collaborative
team by providing real time support to the client’s North Sea assets.
The Deloitte team piloted and designed the initial concept and then
planned and executed the scaled rollout of the final solution to the
business. This involved multiple workstreams to deliver the
transformation, including: people and process change; physical
environment design and build, new organisational roles and
responsibilities and the implementation of a leading technology
solution. This was underpinned by robust programme management
to deliver the change (including benefits, costs and resource
management).
Benefits to the client
• Defined how the client’s front-line Operations could best be
supported, re-defining roles and responsibilities, designing new
office layouts and specifying new technologies.
• Measurable increase in operating efficiency (and therefore
production), mostly through increasing the run-times of
equipment, preventing outages and accelerating plant re-starting
in the event of an unplanned shutdown.
• $20 million in approved benefits in the pilot phase – this includes
impacting the business performance for both the onshore and
offshore teams.
Our client experience
26863 sm Managing complex:26863 sm Managing complex 3/10/08 11:29 Page 3

6. UK based Global Oil Supermajor, Financial Control and Accounting,
Integrated Project Planning
The European CFO of an Oil and Gas Super-major required assurance
and visibility over the delivery of 100+projects across 15+ countries,
identifying and mitigating project related risks/issues and addressing
resource constraints. Deloitte's Programme Leadership team designed
the Integrated Project Planning (IPP) process to help the client’s
Finance, Control & Accounting department manage a complex
portfolio of projects across multiple countries and sites whilst
maintaining and managing ‘Business as Usual’.
After carrying out project assessments, Deloitte used an integrated
portfolio management (IPM) process to articulate findings and
produce reports and analysis. The workshop outputs were
consolidated to form recommendations to the CFO so as to inform
strategic decisions about the portfolio. It allowed a clear
understanding of resource, skill requirements and deployment
strategies, a clear escalation route to proactively resolve conflicts, and
enabled risks and issues to be identified and managed.
Kuwait Oil Company, Unified Change Programme
Deloitte was asked by KOC’s executive leadership team to support
them in a review of the alignment and delivery of their organization
wide change initiatives set up to deliver their 2020 vision. Working
with the client we conducted a review of the portfolio of initiatives,
their alignment and contribution to the expected benefits, looking at
the inter-dependencies and challenges for the delivery of the
portfolio. Following the portfolio review, we recommended a robust
control framework for the delivery and governance of the portfolio
and its core programmes. This study was delivered by a
multidisciplinary team drawn from our Energy industry and
Programme Leadership teams.
Recommendation delivered
• Recommended portfolio approach to enable the delivery of the
expected benefits.
• Recommended a governance framework that would meet the needs
of key stakeholders and the programme team, and which fits with
the organisation’s culture.
• Recommended supporting tools and templates for the control
framework.
UK based Global Oil Supermajor, Refining & Marketing, Process
Fitness Programme
The Refining and Marketing department of a large European
integrated oil company had been pursuing a transformation agenda
for the past few years. The role of Process Fitness is to enable strategic
performance units and functions to deliver their strategies through
improved processes. The Process Fitness Programme was established
to develop world-class process expertise, supported by proven process
improvement frameworks, tools and methodologies to tackle these
concerns and underpin organic growth.
Deloitte’s Programme Leadership team led and staffed the
Programme Management Office (PMO) team, our people supported
the Programme by providing advice, implementing and running PMO
processes across the Central Team, and through the Design and
Improvement work-streams. The PMO developed a standardised
programme management approach and materials, these included
status reporting, key performance indicator definition and reporting,
programme level planning, benefits definition, tracking and
reporting, quality assurance and cost control.
Shell, Global Finance Function, ‘One-Finance’ Finance Transformation
programme
Shell was embarking on an ambitious transformation of the Global
Finance Function, aiming to become world-class by 2010. The
objective was to ensure a more effective and efficient finance
function and meet business needs. This involved major process
standardisation, competence development and systems integration.
Deloitte’s Programme Leadership team provided assurance, advice
and expertise on whether an effective Programme Management
framework had been established. Deloitte’s Programme Assurance
methodology was used to undertake an independent assessment of
the structure, governance and processes of the framework providing
advice and recommendations.
Benefits to Shell
• Thorough and well-documented advice to the Vice President of
Finance Transition on the delivery of areas of good practice and
areas for improvement in the governance and control of the
Programme Management Framework. This allowed for major risks
to be re-mediated.
• Provided thought-leadership on the programme management
framework good-practice and effective PMO operation, this
enabled the PMO to function more effectively and efficiently.
• Provided expertise on prioritisation of projects and portfolio
management good-practice.
4
Managing Complex Transformations
26863 sm Managing complex:26863 sm Managing complex 3/10/08 11:29 Page 4

7. 5
Managing Complex Transformations
Contacts
David Williams
Partner – Energy, Infrastructure & Utilities
+44 20 7007 2965
+44 7798 838485
dewilliams@deloitte.co.uk
During his 23 years in consultancy and industry David has focused his
work in the energy sector. He has worked on programmes to support
engineering, maintenance management, production, operations,
drilling, collaboration, asset tracking, manufacturing, marketing and
finance.
He has experience of working in most European countries, the Middle
East, South Africa, Canada and the USA. Energy clients he has worked
for include: BP, BG, KOC, ADNOC, Mobil Oil, Total Oil,Marine,
Marathon Oil, Enterprise Oil, Kerr-McGee Oil, CNOOC, INA, Cooper Oil
Tool, National Grid and Petroleum Geophysical Services.
Tim Parr
Partner – Programme Leadership
+44 20 020 7007 7966
+44 7768 298031
tdparr@deloitte.co.uk
Tim leads our consulting Programme Leadership group, a team which
helps organisations deliver large complex programmes.
He has been influential in developing approaches to Programme
Management and delivery of large scale change in organisations and
capital projects. Tim has 12 years consulting experience, following
10 years working for leading ‘blue chips’ companies in industry in
various operational, project and change management roles.
Tim has extensive experience of working at Executive level in designing,
initiating and leading delivery of large scale organisational change
initiatives; and capital projects.
Niresh Rajah
Senior Manager – Energy & Programme Leadership
+44 20 7007 2807
+44 7917 597100
nirajah@deloitte.co.uk
Niresh has over 10 years experience in managing transformations,
programmes and projects in the Energy, Resources and Financial
Services industries. Niresh is Project Management Professional (PMI),
MSP and PRINCE2 qualified and is an expert in portfolio management
and setting up Transformation management offices.
Niresh has experience providing Programme Management, Programme
Assurance and Portfolio Management solutions for BP, Shell, Saudi
Aramco, Kuwait Petroleum and De Beers. Niresh managed a complex,
global multi-disciplinary programme for a super-major resulting in
successful delivery of objectives and benefits. He managed a global
team of 150 professionals across 10 locations.
Why Deloitte
Deloitte delivers more
As the only fully integrated professional services firm, Deloitte offers
clients a broad range of services that includes consulting, tax,
corporate finance and audit. Our client teams create powerful
business solutions for the consumer business sector, while our
integrated approach combines insight and innovation from multiple
disciplines with business.
At Deloitte our focus is on helping our clients excel. Our practical
approach to high-quality client service means that organisations
we work for can expect creative, pragmatic advice. With over
8,000 professionals in the UK and 20,000 professionals in
140 countries worldwide, Deloitte has a unique track record.
We have extensive experience of working with leading global
organisations
Through helping our clients to successfully deliver transformations,
we can deliver real gains to an organisation’s bottom line.
26863 sm Managing complex:26863 sm Managing complex 3/10/08 11:29 Page 5

8. Member of
Deloitte Touche Tohmatsu
Deloitte refers to one or more of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein, and its network of member firms,
each of which is a legally separate and independent entity. Please see www.deloitte.co.ukabout for a detailed
description of the legal structure of DTT and its member firms.
Deloitte & Touche LLP is the United Kingdom member firm of DTT.
This publication has been written in general terms and therefore cannot be relied on to cover specific situations;
application of the principles set out will depend upon the particular circumstances involved and we recommend
that you obtain professional advice before acting or refraining from acting on any of the contents of this publication.
Deloitte & Touche LLP would be pleased to advise readers on how to apply the principles set out in this publication
to their specific circumstances. Deloitte & Touche LLP accepts no duty of care or liability for any loss occasioned to
any person acting or refraining from action as a result of any material in this publication.
© 2008 Deloitte & Touche LLP. All rights reserved.
Deloitte & Touche LLP is a limited liability partnership registered in England and Wales with registered number
OC303675. A list of members’ names is available for inspection at Stonecutter Court, 1 Stonecutter Street,
London EC4A 4TR, United Kingdom, the firm’s principal place of business and registered office.
Tel: +44 (0) 20 7936 3000. Fax: +44 (0) 20 7583 1198.
Designed and produced by The Creative Studio at Deloitte, London. 26863
26863 sm Managing complex:26863 sm Managing complex 3/10/08 11:29 Page 6