Strategic Planning March, 2009 Tamara Petrusawich Director of Strategy and Enterprise Architecture

1. Strategic PlanningMarch, 2009Tamara PetrusawichDirector of Strategy and Enterprise Architecture

2. 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.

3. Why Develop a Strategy? “Lead, follow, or get out of the way. - Thomas Paine “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 “The future influences the present just as much as the past”. - Friedrich Nietzsche

4. GIS Operating Model • Policy & compliance • Functional policies • Functional excellence Functional Leadership Services Model Leveraged Service Delivery (Expertise & Scale) Business Partners • Low-cost, high quality • Operational excellence • Service excellence • Transparency • Strategic focus • Functional lead in the business • Liaison for leveraged services • Potential cross-functional responsibilities

5. Removed examples of various group / tower strategies

6. GIS Various Strategies / Initiatives IS Focus Areas(from culture doc to be used at BP summit) LIS Focus Areas Corporate IS Focus Areas (draft) Downstream IS Focus Areas Commercial IS Focus Areas Upstream IS Focus Areas GIS Strategy on a Page IS Focus Areas(from Marty’s goal slide) One Team Value Proposition

7. COP Strategies COP LRP categories COP “response”to environment COP CorporateStrategy Financial Strategy Upstream Strategy Downstream Strategy Commercial Strategy

8. GIS Strategy Be the benchmark for service delivery excellence and a catalyst forinnovative solutions to deliver world-class business results Vision Deliver high quality, cost effective services that improve ConocoPhillips competitive position while maintaining functional stewardship Mission Strategic Focus Areas Creating Value Business Success World Class Service and Performance Operational Excellence Exceptional Workforce Effective, motivated workforce providing quality service, prepared for the future KeyBusinessObjectives Project portfolio, functional strategy and individual goals prioritized and aligned with key business strategies Performance improvements enabling agreed to annual growth rate while holding GIS budget flat Service portfolio aligned with the business processes they support IS operating assets are managed, protected and optimized

9. 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 Upstream • 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 Downstream • Expansion of existing businesses • Increase storage/pipeline/marine transport capacity • Support the entry into new markets • Operational Excellence Commercial • Globalizing services • Decision support / optimization • Meet compliance responsibilities • Corporate stewardship – environmental, financial, • Functional Excellence – similar to what we have for ourselves • Operational Excellence CorporateStaffs Alignment to Key IS Business Strategies 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 Functional Stewardship

10. Removed detailed goals associated with strategic focus areas

11. Exceptional Workforce Effective, motivated workforce providing quality service, prepared for the future Employee Development Workforce Planning • 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. • 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 Example Communication Retention • 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 • 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

12. Strategy Alignment & Timeline Example

13. Operational Excellence IS operating assets are managed, protected and optimized Performance improvements enabling agreed to annual growth rate while holding GIS budget flat Refresh / Upgrade Back Office SW(monitoring, connectivity, etc.) Desktop SW Business Application SW DevelopmentSW Removed COP specifics Hardware Capacity / Storage Growth License Renewal

14. Operational Excellence IS operating assets are managed, protected and optimized Performance improvements enabling agreed to annual growth rate while holding GIS budget flat Enhanced Tool Set Business Facing Back Office Removed COP specifics Process Improvements Other

15. World Class Service and Performance Performance improvements enabling agreed to annual growth rate while holding GIS budget flat Service portfolio aligned with the business processes they support IS operating assets are managed, protected and optimized New / Enhanced Services - Business Facing Strategy Development / Path Forward Removed COP specifics Other

16. Creating Value Project portfolio, functional strategy and individual goals prioritized and aligned with key business strategies Service portfolio aligned with the business processes they support

17. Business Success IS operating assets are managed, protected and optimized Project portfolio, functional strategy and individual goals prioritized and aligned with key business strategies Service portfolio aligned with the business processes they support

18. Lessons Learned • Change takes time. • Build WITH the organization, not FOR the organization • Strategy should support the long term vision while providing a flexible framework for developing short term goals. • 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. • Having a clear vision and common strategy provides focus, supports flexibility and alleviates frustration.

19. Back Up Slide

20. Value Proposition THE OPERATING MODEL DELIVERS MORE THAN JUST ECONOMICS • In addition to lowering our ongoing operating costs, the Operating Model enables several other types of benefits for each of our key stakeholders: FOR THE OVERALL CORPORATION FOR THE BUSINESS UNITS FOR GIS FOR GIS EMPLOYEES