bpm with a km twist - apqc with a...using the apqc model to guide process & knowledge management...

© 2010 The Williams Companies, Inc. All rights reserved.

Using the APQC Model to Guide Process & Knowledge ManagementSondra Holt, Manager Business ProcessesMatt Foste, Sr. Business Process Analyst

BPM with a KM Twist

APQC 2010 Member Meeting | November 4-5, 2010 |


* Footnote: Most of Williams’ midstream and interstate natural gas pipeline assets are held through its 80-percent ownership interest in Williams Partners L.P., a publicly traded master limited partnership that Williams established in 2005.

APQC 2010 Member Meeting | November 4-5, 2010 | 3


Williams Organization Overview

BUSINESS UNITS

WilliamsExploration and

Production(E&P)

Midstream Gas Pipes

NATURAL GAS PROCESS



Williams Assets



E&P Process Group Organizational Alignment • Aligned within E&P Business Unit

• Shared service across organization

• Projects in multiple areas of the business unit

• Group consists of 3 Analysts/ Specialist, 1 Technical Writer, 2 Support Staff, 1 Rotational Analyst

• Analysts are aligned to Processes rather than location



History of BPM

2000

–20

03 LAUNCH OF PROCESS MANAGEMENT

• Process Methodology introduced to Williams IT – BPM Practice formed (2001)• First E&P Process Initiative with E&P Accounting (2002)• Enterprise SOX documentation begins – foundation of early process work (2003)

FRAMEWORK & STANDARDS DEVELOPMENT

• Enterprise BPM Standards Team Formed After Participation in APQC BPM Study (2004)• BPM Standards Team identifies APQC as Benchmark (2005)• Standards Team Establishes BPM Methodology & WMB Process Model (2005)• Procurement process documented & first process team created (2005)• BPM Standards Team participates in BPM Tech study (2006)• E&P Core Processes defined and documented through Mgmt System Framework project (2006)

2004

-20

06

2007

-20

10

BUSINESS UNIT PROCESS FOCUS

• E&P Common Process Team formed (2007)• Formation of Business Process group in E&P (2007)• Creation of BPM governance framework and Process Support Team (2007)• Optimization of Barnett Shale Drilling & Production Operations• Rolled out Key Performance indicators for Key Processes (first Asset Team 2009)• Development of Knowledge and Records Management strategy and Plan (2009)• Development & roll-out of SharePoint for Knowledge/ Content Management (2010)



Aligning with the APQC FrameworkBACKGROUND

Framework adopted in 2001. Has been refined over the years as the processes have changed

Framework serves as a high level industry neutral enterprise model –Focused on energy

Allows internal departments to see activities from a cross-functional process viewpoint

Process Classification Framework used within organization to catalog and segment process documentation

APPLICATION

Processes are placed within Framework structure governed at enterprise level

Governance & maintenance of framework lies within Business Process Group Responsibilities

8 Point model below APQC PCF was adopted to separate types of process documentation (i.e. Process Maps, Standards, Policies, Tools, etc.)

Process Documentation displayed via internal Knowledge Repository site, but documentation housed on secure shared drive location

8 Point Process Documentation Model

(1)Policies

(2)Standards

(3)Process

Maps

(4)Procedures

& Tools

(8)Catalogs

(5)Supporting

Docs

(6)Process

Measures

(7)Projects



BPM Approach – Three Levels of Performance*

ORGANIZATION

PROCESS

JOB / PERFORMER

Vision, Strategy , Policy, Standards Processes, Measures, Scorecards Procedures, Training

SUPPLIERS CUSTOMERS

Documentation

RACI, Process Maps, Process Measures

E&P BUSINESS

APQC 2010 Member Meeting | November 4-5, 2010 | 9* Based on Rummler Model

Process Catalog, Relationship Map, Framework, Policies, Standards

Supporting Documentation, e.g., Procedures, Templates, Forms, etc.


Process Management Roadmap

IdentificationOf Processes

Process SupportTeam Review

APQC Process Classification

FrameworkPlacementIdentification

Of ProcessOwner

IdentifyKPIs/Metrics

ContinuousImprovement

Records Management

Knowledge Management

CompleteProcess

Documentation



Williams E&P Process ModelAligned to Framework

Assess Reserve Potential

(2.0)

Acquire Ownership(9.0)

Develop Reserves(2.0)

Optimize Production & Operations

(4.0)

Market & Sale(3.0)

INPUTIdentify New Areas to Drill

OUTPUTProduce Product

InformationTechnology

(7.0)

Manage Bus Improvement &

Change/ KM.(12.0)

Finance &Accounting

(8.0)

Vision, Strategy,Ensure

Compliance (Planning) (1.0)

EnvironmentalHealth & Safety

(10.0)

Human Resources

(6.0)

Close/ Abandon

(4.3.6)PAD

Construction

DrillWell

(4.3.3)

Gathering (4.3.2)

PSMFacilitiesNon-PSMFacilities

Pre-Drill(4.3.1)

Facility CompleteWell

(4.3.4)

Well Head Operations

(4.3.5)

CORE PROCESSES

ENABLING PROCESSYellow = Critical High Risk Processes


Business Processes Alignment - Framework

2.0 Design, Sale, Market Services

• Reserves• Land

3.0 Market & Sell

• Deal & Execution• Gas Mgmt• Gas Marketing

4.0 Produce & Deliver

• Procurement• Operations• GIS• Measurement• Gas Nominations

5.0 Manage Customers

• Gas Marketing

1.0 Develop Vision & Strategy

• A&D • Exploration• Policy Creation• Planning & Forecasting

• Strategic Initiatives

6.0 Develop & Manage HR

• On-Boarding• Staffing• Compensation

7.0 Manage Info Resources & Tech

• Information Technology

• IT Security

8.0 Manage Financial Resources

• Operation Acct• Joint Venture• Acct Close• AP Process• Tax

9.0 Manage Physical Infrastructure

• Asset Mgmt• Records Mgmt

10.0 Manage EH&S

• Environmental, Health & Safety

11.0 Manage Legal, Reg, & Compliance

• Legal• Stakeholder Feedback

12.0 Manage Improvement & Change/ KM

• Business Process Mgmt

• Knowledge Mgmt

CORE PROCESSES

ENABLING PROCESSES BLUE = Managed External to E&P


Process Focused Progression

FUNCTIONAL-BASED

• Hierarchical in practice • Manage people who perform

vertical process activities.• Difficult to respond to rapidly

changing markets and customer needs.

PROCESS-BASED

• Reorganize &manage completely around processes with an end-to-end focus on work flow that creates value for the customer.

• Functional activities are embedded in the processes

• A senior executive is responsible for the inter-enterprise process.

• Organize work starting at the customer interface to final service or product delivery.

PROCESS-FOCUSED

• Management of end-to-end critical processes

• Key performance metrics identified and begin to drive improvements

• Leaders shifts from hierarchical to horizontal management.

• Begin to integrate process-thinking with the organizational structures, business objectives, and people

PROCESS-THINKING

• Activity groups seen as processes• Understanding how processes work

together • Begin to define and document

processes

2006 2007 2008 2009 2010

GUIDING PRINCIPLESNon-disruptive to Operations

PracticalCost Effective

PRIORITIZATION CRITERIACost Containment, Cash Management

Position for re-boundCompliance (SOX, Audit, etc.)

Initial State Current State Target



Consolidated Approach – Process, Knowledge & Records Management

Knowledge

Mgmt

Becoming Process Focused:• Mgmt of end-to-end processes• Roles/responsibilities are

clearly defined• Key performance indicators

drive performance• Leaders manage horizontally

Records Mgmt Compliance:• Mgmt of records from creation

to disposalElectronic, Paper, Applications

• Records are inventoried• Files structures applied• Retention schedules applied

Knowledge Access• Effectively connects the right people to the right

information at the right time.• One source of information• Available thru multiple entry points • End-user has all tools needed to perform job in

one place


OPTIMIZEDPROCESS

Process

Mgmt

Records

Mgmt


Guiding Principles for Adopting a Process Framework

Utilize existing tools as a foundation (e.g., APQC PCF)

Align framework to existing business model

Apply centralized governance of framework

Reinforce use of model in all aspects of process management and optimization

Create a framework that’s transparent to Process Owner

Overcomplicate your framework Create a model that’s not easily

adjustable Make the framework the focal

point

DO’s DONT’s



Guiding Principles for Integrating Knowledge Management & Business Process Management

1 Integrate Process & Knowledge Management efforts consistent with business strategy & process model

2 Begin with creating and optimizing business processes then focus on Knowledge Management

3 Treat Knowledge Management as a part of the process – Not an initiative

4 Align Business Process, Knowledge and Records Management as a natural progression

5 Keep it Simple – Integrate where it makes sense when it makes sense

6 Ensure approach is non-disruptive to normal business operations, practical and cost effective



What’s on the Horizon in Williams E&P

Further alignment of Process to Key Performance Indicators Automation Expansion to lower risk processes

Continue process focused sites to enable Knowledge Management

Expand to include formation of Knowledge Management Process team



Process Catalog

Links Enterprise framework to E&P specific processes

Segmented by process Categorizes and lists all

process documentation including policies, procedures, maps, tools, etc.

Stored on Knowledge Repository for process owner and employees to view



BPM Framework: Knowledge Repository



KM Framework: SharePoint



Questions?

> Sondra HoltManager, Business [email protected]

> Matt FosteSr. Business Process [email protected]

PEOPLE

PROCESS TECHNOLOGY


bpm with a km twist - apqc with a...using the apqc model to guide process & knowledge management...

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