Classification: Statoil internal Status: Draft

People@Statoil – MBO in StatoilSBN konferanse 13.09.2006

2

About Statoil

•Statoil is an integrated oil and gas company with 23,899 employees and activities in 30 countries

•Total revenues in 2004 came to NOK 306.2 billion

•Operator for 60 per cent of all Norwegian oil and gas production, international production is rising steeply

•One of the world’s biggest sellers of crude oil

•Major supplier of natural gas in the European market

•Service stations in the Scandinavian countries, Ireland, Poland, the Baltic states and Russia.

•Listed on the Oslo and New York stock exchanges

3

Operations in 30 countries

Saudi Arabia

Turkey

Kazakhstan

United ArabEmirates

Algeria

Denmark

Nigeria

Norway

Brazil

Ireland

Belgium

France

Sweden

UK

Poland

Germany

Russia

Azerbaijan

Angola

Mexico

USA

Singapore

Iran

Lithuania

Latvia

Estonia

Venezuela

Libya ChinaQatar

4

People@Statoil project background and mandate

•The HR Director launched an initiative to improve the Individual review and Talent Management processes

•This initiative started with a new leadership process that was introduced for approx. 100 of top Statoil executives in the beginning of 2005.

•The main purpose of the initiative is to develop a new and consistent people process for all Statoil employees and the project has culminated in an overall project called People@Statoil.

•The goal for the entire People @ Statoil initiative is to enhance a performance and competence based culture in Statoil.

5

Status in September 2006

•The People@Statoil web based solution went live on 18 Jan, 3 weeks after original schedule

•The solution is available for approx. 16000 users:

– Permanent employees only

– Service station employees excluded

– “Big bang” roll-out

•13.430 employees have agreed to use the solution, i.e. given their consent to electronically storing of information

•Approx. 700 incidents to IT Support (help) that could not be solved on 1st line

•By 28 Aug, all employees should have registered their Profile incl. goals and development plan, had their PEP-talk with manager and be ready for the follow-up phase. Actual is 50%

6

My Page

MiS

Learn@Statoil

My Profile

PBC 2005 enclosed (yes/no)x

Background Succession Appraisal DevelopmentDeploymentComments Signatures

Name (link to home

page)

Link to CV

Job title

IPE-rating ofjob position

Business area (FO)

Reporting to

Organizational

belonging

Base salary [NOK]

Bonus scheme[No, standard 20%, other]

Years to present position

Employed in Statoil since

Photo

Nationality

Gender

Education

Year of birth

I agree that individual leadership review, including 360º feedback is collected

and stored electronically (confirm with initials)

PBC 2006 enclosed (yes/no)

360º 2006 enclosed (yes/no)

Link to PBC 2006

Link to 360º report

Description of responsibilities in present position (financial,

personnel, strategic development, …)

Key professional/leadership experiences (e.g.,

international/functional experience)

x

x

x

x

x

x

x

x

x

x

x

(Last name, First name)

x

xx

x

x

x

External experience

x

Salary group x

x

x

x

x

x

x

x

x

x

PBC 2005 PBC 2006

Link to PBC 2005If no, comments on status of PBC and 360º (short

description)

People@Statoil portal

Welcome to People@Statoil

Compe

•Access to previous years ESRS•Review and submit this years ESRS •Status on this years ESRS

•Access to 360/180/90 reports from previous years •Review and submit respondents for this year’s 360/180/90 survey

•Status and link to this year’s 360/180/90 survey

•Review and update individual competence profile•Search in competence mapping throughout the organization

XPeople@Statoil XPeople@Statoil

Professional

We in Statoil

- EvenStronger

•Submit standard entries, e.g. CV•Review and edit Homepage

Lear

n@Statoil

•Access to individual Learn@Statoil profile with recommended courses from development plan•Link to Learn@Statoil

CaringCaring

Compe

Compe

module

Compe

- name -

MyPage@Statoil

Home

Org. chartSearchAddresses

xxx

xxx

xxxxxx

xxx

xxxxxx

xxx

xxx

Job preferences Key strengthsInterpersonal skills

Key strengths experience

Hobbies

xxxxxx

Current position

xxxxxx

Personalia

Go to My CV

xxx

xxx

Introduction

Import

picture

- name -

MyPage@Statoil

Home

Org. chartSearchAddresses

xxx

xxx

xxxxxx

xxx

xxxxxx

xxx

xxx

Job preferences Key strengthsInterpersonal skills

Key strengths experience

Hobbies

xxxxxx

Current position

xxxxxx

Personalia

Go to My CV

xxx

xxx

Introduction

Import

picture

EvenStronger Values

People@StatoilReport generator

Competence@Statoil

One integrated and efficient web based IT-system to support the People@Statoil process

Business input

7

Project plans

IT project:

47 persons involved, 20 more than 50%

10+ SAP consultantsCost of phase I: 10 MNOK

8

HR solution architecture – use ERP functionality to support new HR processes

Enterprise Portal

WAS 6.40

(6.20??)

Existing components ultimo 2004

Existing components upgraded to NetWeaver 04 in 2005

New SAP components

Non-SAP components

Business Inf.

Warehouse (BW)

WAS 6.40 ALE/

RFC/

XI

One logical ERP system

P03 - OIL

R/3 4.6C

P07 - HR/CFM

R/3 4.6C

User

WEB Browser

Systems

Components to be used in new HR system

Appraisal forms

Reports etc.

Presented in

MSS/ESS

WEB Browser

E-recruiting in

Web-browser (BSP)

P09

LSO

Front EndWEB Browser

LSO (BSP)

P0B – HR2

mySAP ERP 2004WAS 6.40

HR/Org

Master data

AppraisalE-recruiting

9

SAP/R3 4.6

PO7 / QO7 /DO7

ERP2004

POB / QOB /DOB

▪ templates

▪ appraisal documents

▪ config MbO

▪ IT9200 (deployment)

▪ IT9201 (status/comments)

▪ IT9202 (succession)

BSP-Pages

ESS/MSS

WebDynpro

rfc/ale

Overview architecture, simplified

10

HTTPSPeople@Statoil

WAS 6.40

SAP ENTERPRISE PORTAL (’Ticker’) EP6.0

Web Dynpro Java

Runtime

Portal Content Studio

Web DynproiView

BSP iView

Jco

WAS 6.40

ActiveDirectory

MIIS

MIS

Lotus Domino

SAP ERP2004

P0B

SAP R/3 HRP07

SAP BIP04

XI

P00

BSP runtime

4.6C

SLD

ConfirmIT

.net

RFC

ALE

WAS 6.40

WAS 6.40

HTTPS

Call BW reports via URL

Excel

URL call

Selected goals

Portal

roles

Load 360 comments

Initial load of 360 data

Goals from MIS

Web Browser client

11

The People@Statoil process

12

Individual review phase

13

Scope of IT delivery, employees

A collection of information and documents for an employee:

Background PA/OM data + free text experience

(info types)

90° survey (PDF document)

Development plan (appraisal doc. With free text

elements)

Last years Appraisal

Performance goals for

current year (MPG – My Performance

Goals)

Mobility and job preferences

(info types)

Additional info for managers ++

The profile is generated in a

report once a year and goes

through a set of statuses

Successors (info types)

360° survey results

(BW report from ext. file)

Additional for pilot group:

Competence

14

15

Employee must consent to data storage before the profile can be updated.

Without consent, only display of documents is allowed.

Consent information is stored in info types.

16

17

Development plan is based on standard SAP appraisal doc. with enhancements

(e.g. use of access control BADI)

18

MPG – My Performance goals- is based on standard SAP appraisal doc. with enhancements

(e.g. use of access control BADI)

19

MPG – My Performance goals

for managers:

separate template with

interface to Lotus Notes

Application containing

Strategic Enterprise Goals

20

Mobility is stored in info type

21

Change of status

22

Employee can see Managers appraisal and both Managers' comments. Both Manager and Employee can edit the MPG.

Manager changes MyProfile to the next status

Manager, Employee. Manger's Manager

D.People&Statoil

Dialogue

Employee can add comments and sign/change to next status

Employee Manager and Manager's mgr

E.

Sign and Complete

No updates in MyProfile - employee and managers implement MyProfile.Manager can change status to In planning/Self Appraisal -

if employee moves to new position.

No oneEmployee, Manager and

Mgr's Mgr

F.Waiting for follow-

up

Manager's Manager reviews MyProfile, and can add comments before completing the review and changing

MyProfile to the next status

Manager's Manager (Manager can change to next status)

Employee (Cannot read managers'

input). Manager.

C.Submitted to

Manager's Manager

Employee review and update MyProfile, including self appraisal for last periode, new goals, development plan, mobility and job preferences.

When completed the employee submits MyProfile to mgr

Employee A.In Planning/ Self

Appraisal

No oneEmpl, Mgr, Mgr+1H. Follow-up compl

Follow-up dialogue. Manager can edit some of the

MyProfile documents an set status to Follow-up completed.

Manager (limited)Employee, Manager and

Mgr's Mgr.

G.

Follow-up

Manager appraises employee and reviews and edits goals and other MyProfile documents. Manager can also add a

general comment before submitting.

Manager Employee (Cannot read manager's

input)

B.Submitted to

Manager

What happens in My Profile in this status?Can changeCan readStatus

Strict access rules!

23

in planning /self appraisal

submitted to manager

submitted to manager +1

P@S dialogue

sign and complete

waiting for follow-up

follow-up

follow-up completed

in planning /self appraisal

submitted to manager

submitted to manager +1

P@S dialogue

sign and complete

waiting for follow-up

follow-up

follow-up

completed

A

C

B

D

E

F

GH

A

B

C

D

E

F

GH

Appraisal for current and

previous year are connected

in one Profile! Solved by

custom statuses and function

modules to ensure consistency.

24

Scope of IT delivery, managers

25

Manager view, org.units

26

Experiences

IT was involved too late in the process. McKinsey did not have the knowledge to ask the right questions some times

The process and requirements were “fixed”

Skilled persons in all components: EP, Web Dynpro, BSP, ERP2004, 4.6.c, XI, Lotus Notes, BizTalk

Extremely short time frame => parallel activities and missing specs, high pressure on key personnel

High emphasis on testing incl. usability due to new technology

3 interdependent projects with tight time schedule. Beneficial to complete SAP EP and

Statoil portal projects first

Teamwork in project landscape

SAP standard functionality was of limited use due to:

•Special requirements in the Statoil process

•Usability issues

High focus and top priority in management group(s)

NegativePositive

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Project experiences – seen from the IT side

•The process was not “complete” from the business’ side – exceptions not well enough considered

•Organisational complexities:

– Persons with relationships to several org.units

– Change of positions

– Change of managers

– Externals do not have access to P@S – but suddenly an external manager turns up!

•New technology: application integration in EP, Web Dynpro, many components and interfaces

•Several layers of user identification and access control: sso, EP, back-end roles and user controls built into the application

28

Important issues in Hand-over to production

•Early and good communication between the project and the Support(help desk) organisation

– Consider the companies’ landscape of PC + laptop + terminal server + log-on procedures that might cause problems outside the application itself

29

Further plans

• April 2006: Upgrade to ERP2005, unicode conversion + merge of the two HR systems into one. Test only.

• 2006: Upgrade of EP

•October 2006: Go-live with upgraded and merged systems

• September 2006: Go-live with 360°/ 180°/ 90° appraisals (ESV) + Extend use of competence mapping

• January 2007: Go-live with phase 2 of People@Statoil:

– Delegation of goal appraisal to task owner

– CV

– Improved competence module

– Additional reports, misc. improvements

• 2006/2007: Extend use of XSS in Statoil as part of establishing corporate shared services

30

Additional slides

31

BSP & Bapi’s

D0B

Developing Web Dynpro

SAP 4.6 C

BSP & Bapi’s

Q0B

BSP & Bapi’s

P0B

Bapi’sD07

Bapi’sQ97

Bapi’sP07

SAP ERP2004

Developing Abap & BSP

SAP ENTERPRISE PORTAL (’Ticker’) EP6.0

Web Dynpro Java

Runtime

Portal Content Studio

Web DynproiView

BSP iView

Deploy

RFC-calls

RFC-calls

HTTPS

Jco

Web Browser client

HTTPS

People@Statoil

WAS 6.40

WAS 6.40

SAP R/3

32System Landscape for people@Statoil

ES2

S0B/135

EP2EP2

P04/515P04/515

P0BP0B

P07/560P07/560

EQ2EQ2

Q04/515Q04/515

Q0B/380Q0B/380

Q97/560Q97/560

ED2ED2

D04/215D04/215

D0B/280D0B/280

D07/260D07/260

R/3 Transport R/3 Transport

S07/260

Portal

ERP 2004

HR

BW

Sandbox Development Quality Production

P00/??

SLD

P00/??

SLDQ00/320Q00/320D00/220

D00/220XI

MIIS

AD

MIS

ConfirmIT

S00/120

????

????

Statoil-netStatoil-net

Statoil-netStatoil-net

????

????

????

????

-Track Statoil MSS

-Track SAP XSS

JDIJDI

NWDI

Portal Transport Portal Transport

tap-nettap-net