implementing strategic performance management (spm… · 2013-10-04 · implementing strategic...

PPCoN Information Technology

Implementing Strategic Performance Management

(SPM)Will it give You “The Power To Know”?

Pål Navestad, Phillips Petroleum Company NorwayIngrid Sternhoff, Phillips Petroleum Company Norway


Phillips Petroleum Company Norway (PPCoN)

• Part of Phillips Petroleum with 32,000 employees

• 1610 employees • Approx. 420,000 BOE daily • 29 platforms

–Various ageand life cycles

• SAP as main IT system


Strategy/measurement Prior to SPM

• Based on Lotus Notes• Text only, with manual follow-up• Hard to keep in synchronization with the

organization• Measurement separate from strategies• Measurement hard to maintain for all levels

in the organization


Strategy Plan Not Well Known


Example of Ppcon Strategy Plan in Notes


Example of Indicator Measurement


Why Strategic Performance Management?• A need to combine strategies and

measurement (performance indicators )• Easy to adapt to organizational changes• Link down and NOT drilldown

– What you want to see varies throughout the organization

• Still need to adhere to top level strategies

• Must be incorporated in PPCoN management system– E.g. Can NOT take Kaplan/Norton model as it is


Link Down and Not Drilldown

Management level- Cost- Results

Operations dept.- Cost- Back log - Coming work- Number of faults

Support dept.- Cost- Planning capacity- Process faults- Process optimizations


Choosing Software

• Looked at products vs. Consulting– E.G. SAS SPM

• Decided to purchase a product– Develop and maintain with internal personnel– Keep competence in the company– Need adaptability for future scenarios


Installation of SPM

• Installed and verified in 3 days– Upgraded SAS to 8.2 and installed OLAP

server at the same time• Easy to get started

– SPM manual good– New person effective within 3 days using SPM

manual as only aid


Building the Strategy Plan and Indicators

• Only PPCoN personnel– No one allocated 100 % to project

• Hard to keep focus• Problem gathering the core team

– Several people have acquired knowledge of product and strategy process

• Have been applied to other functions


Building the Strategy Plan and Indicatorscont.

• Project start October 2001• Old structure and existing top level indicators were

tied together• Revised strategy plan structure • Included end users early

– Few guidelines • Several ways of developing strategies and operating plans• Consolidation needed• Increased intellectual capital• Best practices achieved


• Year end 2001, top level strategies– Top level scorecard in production

• March 2002, departmental strategies and scorecards

• April 2002, the presentation for an employee town hall meeting was prepared in less than 1 day– Based on top level scorecard

• Currently automating data loading

Building the strategy plan and indicatorscont.


SPM Tool for Knowledge Management

• Visualizes the strategy process– Increases organizational knowledge

• The tool is flexible– Facilitates sharing of knowledge

• Easy to test ideas


PPCoN Top Level Scorecard


Scorecard by Strategies


From Raw Data to Knowledge


Data and knowledge warehouse

From Raw Data to Knowledge Cont.

E.g. SAP tables

Other tables

Large Warehouse Tables

Specific tables

Specific tables

Specific tables


From Raw Data to Knowledge Cont.


Utilization of SPM Product/thinking

• Control safety barriers• Control risk • SPM product will probably be used as entry

level for all reporting


Have We Achieved “The Power to Know”?

• Not 100 % but– We have the means– We have the flexibility– We have the ability to support a very complex

organization with live data– We have the ability to document data and knowledge– We have a learning tool for a learning organization

implementing strategic performance management (spm… · 2013-10-04 · implementing strategic...

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