bp

MiDAS - MiDAS - Performance Performance Management Management for a Global for a Global OrganisationOrganisation

bp Exploration & Production Segment

MiDAS

bp

bp plcbp plc

bp is one of the largest integrated oil companies in the world, with an estimated global market share of around 3% of oil and gas production and 4% of refining capacity.

revenues : $285 billion number of employees : 105,000 reserves : 18.3 billion bbl of oil and gas Market capitalisation : $210 billionCapital employed : $100 billion

Some key facts and figures

Exploration and Production Gas, Power & Renewables Refining and Marketing

Three business segments …

MiDAS

bp

How do we organise 100,000 people ?How do we organise 100,000 people ?

Group VP

Group VP

Group VP Group

VPGroup

VP

Group VP

Group VP

Group VP

InnoveneCEO

R&MCEO

E&P CEO

Gas & Power CEO

Group CEO

Group Legal Counsel

ChiefFinancial Officer

Chief ofStaff

Deputy CEO

BUSPU

BUBU BU

BU BU BU BUBU BU

BU

Business Segment

TAGTAG

SPU

PU PUPU

PU

PU

PU

PU

PU PU

PU

PU

PUPU

PU

PU

PU

PUPU

Segment Executive Team

(SET)

MiDAS

bp

By creating organisations of human scale… By creating organisations of human scale…

Strategic Performance Units (SPU) 14 in all— represent clusterings of

similar business types Business Units (BU): 28 in

all—Performance Contract

Performance Unit (PU): (136 in all)— Human scale— Clear activity focus— Significant pieces of

business— Maximum of 6 per BU

BUBU

BU

BU

BUSPU

PUPU

PU PU

PU

PUPU

PUPU

PU

MiDAS

bp

Managing performance Managing performance – the Group Financial Outlook

Current indicator of expected quarterly financial and operating performance identifying risks to delivery.

Allows for proactive interventions rather than corrective measures after the fact.

Focus on forward performance, driving conversations between the BU and the Segment Executive Team about mitigating risks for the future.

Provides understanding of what is changing and what are the drivers of that change

MiDAS

bp

MiDAS - Original Design MiDAS - Original Design ConceptConcept

1.Leverage the existing knowledge base surrounding the E&P Segment performance management system.

2.Develop a toolkit of robust readily available components to deliver an “off the shelf” application to bp Segments/Business Units.

MManagement anagement IInformation nformation DDatabase using atabase using AAnalysis nalysis SServiceservices

MiDAS

bp

How did we design How did we design MiDAS? MiDAS? Recognised that the use of Excel is an

integral part of business process.

Anticipated that the effective use and deployment of the system was going to be end user driven – the interface needed to reflect a non technical user base.

Understood that audit trails and security were an important part of a performance management system – business continuity, Sarbanes Oxley…

MiDAS

bp

How did we design How did we design MiDAS? MiDAS?

Considered performance management to exist in a fast changing landscape – analysis and reporting is a time dependant activity – half of your analysis today will be irrelevant in a year’s time if it lasts that long…

Wanted to build a platform that could be used to support many data management requirements

Understood that the life of the application was indeterminate

MiDAS

bp

What is MiDAS?What is MiDAS?

Microsoft SQL Server 2000Standard Edition

Aspex – bp builtEnd user Tool

XLCubedAdd-in & Web

Build cubesManage dimensionsHousekeeping

Data loadReporting

MiDAS

bp

AspexManagement

Tool

WorkFlowManagement

.Net

Integration withLocal Accounting

System

SQLServer2000

OLAPAnalysisServices

MiDAS MiD

AS

MiDAS

MiD

AS

What is MiDAS?What is MiDAS?

Data from Excel, FileTransfer or Web Input

Data from Excelor Web Input

Financial & Non-financial Data

MiDAS

bp

What does MiDAS deliver?What does MiDAS deliver?Rapid development and implementation

capability

Designed around the bp performance management framework

Has sufficient flexibility to allow the Segment/BU to be creative in how the toolkit is used – build new subsystems or complete standalone applications

Low cost to market and low ongoing maintenance costs

MiDAS

bp

What does MiDAS deliver?What does MiDAS deliver?Easy to use and maintain

Makes maximum use of existing infrastructure

Is capable of being the data hub of the organization

Manages and maintains data of all types – numbers and text

Promotes internal organizational capability

Is scaleable and responsive

MiDAS

bp

MiDAS deploymentMiDAS deployment

Assembled a team of BP people in London –engaged Altius Consulting to augment the Core Team.

Designed processes to be used as a blueprint by each BU.

Completed framework agreements with each of the Outsource providers to ensure that the BUs are treated consistently.

MiDAS

bp

MiDAS deploymentMiDAS deployment

Developed standard hardware and software packages that are clearly understood by the IT providers to minimize rework when installation is being planned.

Designed, built and tested a rapid implementation methodology

We want to leverage the scope and scale

of E&P to deliver a world class system

We want to leverage the scope and scale

of E&P to deliver a world class system

MiDAS

bp

MiDAS deploymentMiDAS deployment Conducted a design workshop (2 to 3

days)Deconstructed existing process

Looked at the current issues the business was addressing

Created a view of the desired state

Matched MiDAS to the requirements

Execute workshop (3 to 5 days)Hardware and software installed

People trained in Aspex, XLCubed, reporting and input techniques

Project plan

MiDAS

bp

Deployment experiencesDeployment experiences

Additional functionality identified.

Enthusiasm builds as people start to understand the toolset and what is possible.

Understanding the business is critical to building confidence with the people installing the system.

MiDAS

bp

Deployment experiencesDeployment experiences

Sharing ideas and harvesting synergies depends on the energy and commitment of the project teams

Delivering the project in discrete manageable chunks facilitates control and helps to manage expectations

Word of mouth is a powerful ally