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Pioneering Value Based Consulti International Program Leadership Case Study Pav Manocha January 2008

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Pioneering Value Based Consulting

International Program LeadershipCase Study

Pav Manocha January 2008

2

Introduction

Pav Manocha – President, Sympliciti, Inc.

Mr. Manocha is a global authority on technology integration and has over fifteen years of large-project cross-functional international supply chain & IT strategy consulting experience primarily within the energy and process manufacturing industries.

Clients served include, Bp plc., Chevron Corporation, Caterpillar Inc., Coca-Cola Company, ExxonMobil Corporation, Lubrizol Corporation and Terra Industries Inc.

His business consulting experiences have included feasibility/fit assessment studies, strategic and tactical planning, project management, business and systems re-engineering and M&A integration consulting. A native of New Delhi, India, he holds a holds a B.Sc. (HONS) in Applied Computer Systems, a M.B.A. in International Business and is a candidate for the D.B.A. in Entrepreneurship & Innovation Management.

3

Purpose of Our Discussion

Case OverviewCase OverviewCase OverviewCase Overview

ChallengesChallengesChallengesChallenges LearningsLearningsLearningsLearnings

4

Case OverviewCase OverviewCase OverviewCase Overview

ChallengesChallengesChallengesChallenges LearningsLearningsLearningsLearnings

5

Opportunity Statement:The Olympic Program is a global business initiative to

maximize the value of systematic harmonization, standardization,

and consolidation of Global Downstream’s business systems.

Olympic seeks to deliver common business platforms that will streamline operations, improve our processes, and enable a

comprehensive view across the breadthand depth of each global Business Unit and Service

Organization.

14© Chevron 2007 Project Olympic Winning the Marathon

PROCESS & SYSTEM DESI GN

_ Business Design Objects_ Process Designs

_ Configuration Instructions

_ RI CE Design Objects

_ Report Specifications

_ Interface Specifications

_ Enhancement Specifications

OriginalBusiness Case($89 MM/ year)

Functional Requirements

Functional Requirements

I T,12.0

Mktg, 33.5

S&T,

5.5

HR,

15.5

Fin,5.3

GL,

13.1

Represents Procurement savings captured within Global Marketing ($13.7 MM) and Global Lubricants ($3 MM).

Fin,5.2

I T,12.0

GL,13.3

HR,15.5

S&T,5.5

Mktg,

37.6

RevisedBusiness Case

($80 MM/ year)

ORG CAPABI LI TY / BUSI NESS READI NESS

_ Olympic Responsibility_ Go -Live Training

_ Role Design

_ Communications

_ Business Responsibility

_ Org Design

_ Data Cleansing/ Consolidation (Deployment Network)

_ Communications

KEY PERFORMANCE I NDI CATORS

DesignDesign

Represents Procurement savings captured within Global Marketing ($18 MM) and Global Lubricants ($3 MM).

Project 1 Business Case is $80MM/ Yr

Case Overview - What Is It?

6© Chevron 2007 Project Olympic Winning the Marathon

SALESOrder to Delivery, Secondary Transportation, Pricing & Taxes, Billing, Loans, AR, and Credit

Refine/Blend

Pipe

StoreInvoice

Invoice

FUEL SUPPLYI nv e ntory M a nagem e nt, Ex change s, Te rm ina ling,

Supply & Trading Ex ec – Prim a ry D istribution

LUBRI CANTS SUPPLY CHAI NDe m and Pla nning & Supply, Production

Pla nning & Ex e cution, W are housing & I nv entory M a na ge m e n t

PROCUREM ENT TO PAYABLESSourcing & Contra cts, Procure m e nt Ex e cution,

Accounts Pay able , PM

FI NANCEG/ L & Close, Profitability, Asse t M gm t ( AM , PS) , Re a l Esta te

HUM AN RESOURCESOrganiza tion M a nagem e nt, HR Da ta Adm in, Ne w H ire / Separa tion, S upport Organiza tion De sign

End

-to-End

Process Areas

Procu rem en t to Payables M an ufactu r ing Order to Cash

Project Olym pic Overview7© Chevron 2007 Project Olympic Winning the Marathon

2007 2009 20101Q 2Q 3Q

2012 20132Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Common Design 2Common Design 2

Americas RollAmericas Roll -- I nI n

Asia Pacific RollAsia Pacific Roll -- I nI n

Brasil 2Brasil 2

Future P roject 2

Europe RollEurope Roll -- I nI n

Africa RollAfrica Roll -- I nI n

Future P roject 3

Europe SAP Europe SAP CountriesCountries

Project 1

Common Common Design 3Design 3

Africa SAP CountriesAfrica SAP Countries(CRM)(CRM)

Asia Pacific SAPAsia Pacific SAPCountries (CRM)Countries (CRM)

Americas SAPAmericas SAPCountries (SCM & CRM)Countries (SCM & CRM)

Project 2Decision Prep

Ph 5 A - P

Phase 4

Phase 4

20081Q

Ph 5 Afr.

Phase 4

4Q

Ph 5 U.S.

PhasePhase33

PhasePhase22

PhasePhase1a & 1b1a & 1b

– Project Decision Points

– System Go -Live Points

SCM – Supply Chain Management

CRM – Customer Relationship Management

LEGEND

R1

R2

R3

Project 3Decision Prep

PhasePhase33

PhasePhase22

PhasePhase1a & 1b1a & 1b

HR Phase 4

Olympic is a Program – 3 Projects thru 2012

6Work is distributed across Five Regions & Fifteen Time Zones.Work is distributed across Five Regions & Fifteen Time Zones.

Rio de Janeiro~ 9 FTEs

Cape Town~ 150 FTEs

Manila~ 185 FTEs

Concord ~ 275 FTEs

Other globallocations

~ 25 FTEs

Mumbai~ 101 FTEs

Project 1 countries currently using SAP

Project 1Financials and HR only

Additional Project 1 countries deploying HR only

Project 1 Aviation (invoicing)and HR only

Case Overview Global Team of ~840 people

24:00 04:00 09:00 12:50 15:00

7

Mar

2007

Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul

2008

Aug Sept

Release 1U.S.

Release 2Africa

Phase 4cPhase 4cPhase 4cPhase 4c

Phase 4c (Asia and Africa)Phase 4c (Asia and Africa)Phase 4c (Asia and Africa)Phase 4c (Asia and Africa)

Phase 4d U.S.Phase 4d U.S.Phase 4d U.S.Phase 4d U.S.

Phase 5 U.S. Phase 5 U.S.

Phase 5 Africa Phase 5 Africa

Phase 4d AsiaPhase 4d AsiaPhase 4d AsiaPhase 4d Asia

Phase 5 Asia Phase 5 Asia

Phase 4d Africa and Phase 4d Africa and GlobalGlobalPhase 4d Africa and Phase 4d Africa and GlobalGlobal

Phase 4d Phase 4d CutoverCutoverPhase 4d Phase 4d CutoverCutover

4d Africa 4d Africa CutoverCutover4d Africa 4d Africa CutoverCutover

4d Asia 4d Asia CutoverCutover4d Asia 4d Asia CutoverCutover

Legend:

4c 4c HRHR4c 4c HRHRHR

Phase 4d HRPhase 4d HRPhase 4d HRPhase 4d HR

Phase 5 HR Phase 5 HR

Phase 4d CutoverPhase 4d CutoverPhase 4d CutoverPhase 4d Cutover

Release 3Asia/

Pakistan

Phase 4c - ConstructionPhase 4d - TestingPhase 4d - Technical CutoverPhase 5 - Go-Live & Transitional SupportGo-Live

Multiple Releases Are Worked Concurrently.Multiple Releases Are Worked Concurrently.

Phase 4c Phase 4c AsiaAsia

Phase 4c Phase 4c AsiaAsia

Case Overview Timeline of Project 1

We AreHere

8

Case OverviewCase OverviewCase OverviewCase Overview

ChallengesChallengesChallengesChallenges LearningsLearningsLearningsLearnings

9

CommunicationCommunicationCommunicationCommunication•Global

– Leadership• Global vs. Regional• e-Mail overload

– Multi-region• Time zone challenges• Network & telecom

•Diversity– Cultural

• Team norms / Holiday schedule

– Organizational• business unit• Partnering organizations

– Tools• MS-Project Enterprise• Olympic Manager• ARIS (Process Design)• Mercury (Testing)

– PMO Processes (escalation)• Red & Yellow Flag Database• Status reporting• Decision Publication process

– Infrastructure• MS-MeetingPlace• Speakerphones• Dedicated NetGIL

EnableEnableEnableEnable

Defining and deploying tools, processes & procedures

which are scalable, robust and globally accessible was key to

enabling communication

10

ComplexityComplexityComplexityComplexity

•Planning– Work plan

• 4c (Build phase) > 10,000 deliverables instance

– Maintenance• 25 sub-team work plans• Many cross-team assignments

•Execution– Coaching & Mentoring

• Design knowledge confined to a small core group of team members

• Success dependent on leveraging the global team

•Control– Metrics & Measures

• Earned Value• Deliverables status• Unused availability• Exception reporting (eg. Zero ETC and status =

not-complete)

– Power800

• Define decision makers• Encourage team to ask “Do I have enough

information to make this decision now?”

EmpowerEmpowerEmpowerEmpower

Empowering team membersto make decisions supported

by strong project managementcontrols helped guide usthrough this complexity

11

IntegrationIntegrationIntegrationIntegration

•Business Process– Standardization vs. localization

– Interim Business Processes & Dual Data Maintenance considerations

– Data preparation & cleansing

•External Initiatives– Dependencies on Everest Projects (Lynx,

Business Point)

– Global Partner impacts (EDI, Banks, Payrolls)

•Scope Control– Business Process & Technical

• Accountable Value Realization team consisting of Global / Regional Business Integration Leaders (BILs)

• Continued cross-team forum for Design Integration

• Sub-process standardization driven by Design Architects

– Cost• Clearly defined Change Request thresholds• Change Request approvers by category• Strict process compliance

GovernGovernGovernGovern

Strong governance helpedtackle these integration

challenges

12

SustainabilitySustainabilitySustainabilitySustainability

•Value Realization – Business Evolution (business case &

stakeholder alignment)• Reorganization• Process sponsors and advisor networks• Integration with IT governance• Managing project risk

– Project vs. Business Priorities & Compliance• Deployment network alignment• Sarbanes-Oxley

•Performance– Team member attrition– Burn-out

• Project 1 > three years• Career concerns• Great sense of personal ownership

•Finesse Flexibility– Anticipate change and ensure sufficient time

and resources are factored into the plan• Co-locate when needed• Revisit priorities (weekly)• Adjust timeline, milestones and scope• Dynamic staffing

Keep it personal

– Value in Real-talks• Understand team member goals• Promote alignment• Early awareness of issues

ChangeChangeChangeChange

Change is inevitable. In fact,when embraced and celebrated

provided us one method totackle the sustainability

challenge

13

Com

mu

nic

ati

on

Com

ple

xit

y

Inte

gra

tion

Su

sta

inab

ilit

y

Empower

Enable

Govern

Change

SummaryFinesse flexibility, seed scalability

14

Thank You

Pav Manocha – President, Sympliciti, [email protected]