Driving Cultural Changes with SaaS

Amy E. Absher, Chevron Global Aviation

Executives: C-Level Strategy

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Amy E. Absher

General Manager - Business Services

aeab@chevron.com

A swirling hurricane is often the best motivator for change

Hurricane Katrina devastated New Orleans and other Gulf Coast communities when it blew ashore on August 29, 2005. For the first time in its history, New Orleans was placed under mandatory evacuation given the high flooding probability. Countless lives were forever changed by this natural disaster.

How people and government agencies reacted in the face of such destruction was the defining factor of this event. Indeed, many lessons were learned.

Individuals and organizations rarely attempt significant change… unless there is a compelling reason to change

About Chevron Global Aviation

Industry Leader:

● North America #1 supplier of jet fuel and aviation gasoline

● Worldwide #3 with 12% global market share

Employees: ~500 (and ~ 200 contractors)

Regional Offices: Houston, Dubai, Singapore, London and Miami

Salesforce users: ~150 and growing

Operations:

● Sells approximately 500,000 barrels per day in 75 countries to over 200 airline customers

● Provides fuel for over 13,000 aircraft a day, at 350 commercial airports and 750 general aviation airports

● Offers flexible pricing, risk management tools and an integrated portfolio of value-added services

If There is No Flood, Why Change?

Watch for signs of rising water

Take a hard look at the current state, there were signs of a brewing storm

Growing business challenges… fed by capability gaps and cultural challenges

Hurricane Preparedness!

Project Background

Lead Opportunity Bid Tender Offer Contract

Account Activity Management

Customer PerformanceDemand Forecasting

Document Management

Bid to Contract: Manage/administer tendering process Bid-level analysis

Side-by-side comparative “what-if” scenarios (e.g., alternate routes and impact on cost, etc.)

Manage/track bidding process with customer Monitor active tenders and associated deadlines Generate expiring contract notifications Generate contract, agreements and addendums Manage negotiation and distribution of contracts Automate workflow for bidding process

Lead & Opportunity Management: Capture information about prospective business

Build customer and competitor portfolio data, by location

Manage leads, including lost bids

Generate campaigns and mailing lists

Account Activity Management: Manage customer contact information Track/manage customer disputes Manage customer account activity (log

pertinent on-site visit and conference call information)

Analyze account activity (customer segmentation, etc.)

Proactively gather, track and report on customer issues that may affect contract renewal

Customer Performance: Track customer performance against

plan Track location performance against

plan

Document Management: Store documents in centralized repository Search and retrieve documents by defined

attributes Review and revise documents Generate document expiration notifications

Wave 1 Wave 2 Wave 3

Highly Customized Functions in Red

Business unit delivering acceptable financial results no “Cat-5’s”, but small periodic tropical storms

● Just replace the “big” Excel spreadsheet…nothing more, please!

Typical merger fallout

● “Bowl of spaghetti” processes using overburdened spreadsheets and redundant shadow systems

Analysis and strategy development based more on “gut” and experience than on data-driven analysis

Consequence history of past IT project challenges

Globally diverse, unique processes

Process and data governance

Business Challenges

Aviation Marketing Manager profile

● 20+ years of marketing experience deep knowledge of customers and markets “in their head” not accessible to anyone else

Typical aviation sales/marketing perspective

● Pressing palms to flesh, not fingers to keyboards

Work style shifts from ultimate, individual flexibility using “backs of napkins” and spreadsheets to:

Data captured at the source (by Marketing Managers)

Standard way to process the business

Central, globally accessible repository

Data transparency

● “It’s not what we know that causes trouble. It’s what we know that ain’t so.” Will Rogers

Concerns over business information control, security and flexibility in a SaaS environment

Our “system” and data on an external server operated by a vendor!?

Cultural Challenges

Gaps in Our Capabilities…We Needed:

Deeper and broader understanding byeveryone of the entire value chain, and where the money is made and lost

● More sophisticated analysis would require:

Capture of more and different information

Standardized, global processes

Process and data governance

Analytical capabilities and organizationalsupport

Structured, global monitoring andmanagement of metrics

New technology

Shift from an unstructured, “individual”centric and comfortable world to a more structured, “business unit” centric world

Strong vision of the end business goal

Strong, visible leadership support

Global design, using the 80/20 rule as a guiding principle

Flexible technology to guide new process understanding and development

Start with a phased, core business function “push” to inspire subsequent “pull” from the business

Take necessary risks

No turning back!

The journey from “push” to “pull” will be thorny!

Our Strategy

Getting the Leadership Team On-Board…Open their eyes to the reality

BWReports

SAP

Cost & expenses

Contacts

Customer-specific information

New routes/new airlines

Old tender data

Old Contracts & Agrmt data

Customer-specific information

Customer credit info

Credit info (compliance)

Invoice data

Dispute information

DTFs

Bid-level analysis data

Bid-level analysis data

Bid negotiation feedback

Bid negotiation feedback Logistics costs

Transfer cost Transfer cost

Bid negotiation feedback

Bid negotiation feedback

Offer/Proposals

Offer/Proposals

Airport codes

Chevron Aviation data

Chevron Aviation dataIncumbent data

Incumbent data

Incumbent data

Customer visit/ phone call data

Competitive intelligence

Location agreements

Location agreements

Location agreements

Operational agreements

MSOutlook

Price data

DisputeMgmt

Spreadsheets

Lead Opportunity Bid Tender Offer Contract

Account Activity Management

AirportProfile

Documents

TenderMaster

Spreadsheets

CustomerSpreadsheets

GlobalDirectory

Spreadsheets

DeskfilesPDAs

Contract data

Performance data

Bid analysis

Customer Performance

PlattsService

Platts data

Ahhhhhhh….

Outcome reports

APM (Plan)

Bid-level analysis data

Getting the Leadership Team On-Board…Show them what is possible

Lead Opportunity Bid Tender Offer Contract

Account Activity Management

Fully Integrated System (Components)

Customer Performance

Airport/Loc Profile Data

Customer/LocData

CustomerData

Reference Data

DealData

Transaction Data

ContractData

PerformanceData

Document Management

Demand Forecasting

Ah….elegant simplicity

Key Learnings

Time

Goal….increase the frequency of Ahh-hah’s that generate “pull” from the business

Cultural change requires vision, tireless leadership, consistent reinforcement and role models it does not happen overnight, so plan accordingly

Cultural change is like a bag of popcorn…• Early adopters (first kernels to pop) see the possibilities have the “Ahh-hah”• Rate of adoption/acceptance (popping) will be erratic• Some kernels never pop tossed out with the bag!

Acc

epta

nce

Time

Our Journey From Push to “Pull”

The Push… Decommission “old” systems immediately

Put metrics in place from the beginning• Add specific, project-related performance

objectives to team members’ annual performance appraisals

• Define and implement business unit scorecard metrics affecting everyone’s performance

Year 1 – Focus on building a foundation Customer disputes tracked through new Case Management tools

• Year 2 – Shift to driving new business decisions Customer satisfaction, timely handling and reduction in disputes

Leaders must steward the process • Ask the “hard questions”

• Leverage “2-way” communication

• Engage the early adopters to help lead change

Encouraging Adoption

Metrics affecting compensation – cascading impacts• Contracts generated through Salesforce

• Requires all deals to be entered into system correctly to generate contracts

• Training and support• Ensures that training is kept current as resources change over time

Base Goal Max.

4 5 6 7 8 9 10 11 12 13

Organizational Capability

Salesforce Deployment (% of Plan) N/A80.0% 81.7% 83.3% 85.0% 86.7% 88.3% 90.0% 93.3% 96.7% 100.0%

SFDC Training completed for users (%)

Contracts generated by the system (%)

Case Management/Disputes Logged into the System (%)

MeasureSub-Goal Stretch Goals

Scorecard

Asking the “Hard Questions”

The deeper the data layers targeted by such questions, the more valuable the resulting analysis:

What is driving the change in our performance at location X?

How much contract volume is up for renewal this quarter?

Who are our most valuable customers?

What is the outcome of all bids submitted this year?

What customers and airports offer the best growth potential?

Where are our most strategic locations?

Techniques to Inspire Business “Pull”

Turn the “promises” into visible reality• Demonstrate immediate access to information

never before available

• Provide rapid fine-tuning of NEW functionality

• “Show and tell”

Leverage respected power users • Use testimonials

Gauge acceptance target that spot and one step beyond• Can’t eat an elephant all at once!

Educate…again, again and again

Reward and recognize

Don’t rush change takes time to stick

Spread the word, “the plane is leaving”

Are We There Yet?

Signs that the culture change has gained sustainable momentum: • Positive gossip

● Inquiries from outside the business unit

• Unsolicited requests for business use beyond original scope

• “New world” capabilities embedded in all recruiting efforts of the business unit

SoGet Ahead of the Curve in Driving Change!

Don’t wait for the “levees to break”

Recognize business challenges, capability gaps and cultural challenges standing in the way of progress

Develop and execute a strategy to overcome challenges and gaps, and then stick with it – take necessary risks!

Get leaders on-board • “Open their eyes”

• Involve them in driving change throughout the process

Communicate to all levels…”both ways”

Recognize when you move from “push” to “pull”… and support it!

Q & A

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