MiDAS - Performance Management for a Global Organisation

1. MiDAS - Performance Management for a Global Organisation bp Exploration & Production Segment

2. bp 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. Three business segments … • Exploration and Production • Gas, Power & Renewables • Refining and Marketing Some key facts and figures • revenues : $285billion • number of employees : 105,000 • reserves : 18.3billion bbl of oil and gas • Market capitalisation : $210billion • Capital employed : $100billion

3. Group VP Group VP Group VP Group VP Group VP Group VP Group VP Group VP BU BU BU BU BU BU PU PU PU PU PU BU BU BU PU PU PU PU PU PU PU PU PU BU BU PU PU PU PU How do we organise 100,000 people ? Chief Financial Officer Chief ofStaff Deputy CEO Group Legal Counsel Business Segment Group CEO Innovene CEO Gas & Power CEO E&P CEO R&M CEO Segment Executive Team (SET) TAG TAG SPU SPU

4. SPU PU PU PU PU BU BU BU PU PU BU BU PU PU PU PU 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

5. 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

6. MiDAS - Original Design Concept Leverage the existing knowledge base surrounding the E&P Segment performance management system. Develop a toolkit of robust readily available components to deliver an “off the shelf” application to bp Segments/Business Units. Management Information Database using Analysis Services

7. How did we design 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…

8. How did we design 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

9. What is MiDAS? Build cubes Manage dimensions Housekeeping Aspex – bp built End user Tool Microsoft SQL Server 2000 Standard Edition Data load Reporting XLCubed Add-in & Web

10. What is MiDAS?

11. 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

12. 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

13. MiDAS 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.

14. MiDAS 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

15. MiDAS 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

16. Deployment 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.

17. Deployment 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