Customer presentation at ProcessForum Nordic 2013.

1. Using BPM to Focus on Core
Business in ConocoPhillips
Reidar Matre, Director System and Process Exploitation, ConocoPhillips Norway

2. Cautionary Statement
The following presentation includes forward-looking statements. These statements relate
to future events, such as anticipated revenues, earnings, business strategies, competitive
position or other aspects of our operations or operating results. Actual outcomes and
results may differ materially from what is expressed or forecast in such forward-looking
statements. These statements are not guarantees of future performance and involve
certain risks, uncertainties and assumptions that are difficult to predict such as oil and gas
prices; refining and marketing margins; operational hazards and drilling risks; potential
failure to achieve, and potential delays in achieving expected reserves or production
levels from existing and future oil and gas development projects; unsuccessful exploratory
activities; unexpected cost increases or technical difficulties in constructing, maintaining
or modifying company facilities; international monetary conditions and exchange
controls; potential liability for remedial actions under existing or future environmental
regulations or from pending or future litigation; limited access to capital or significantly
higher cost of capital related to illiquidity or uncertainty in the domestic or international
financial markets; general domestic and international economic and political conditions,
as well as changes in tax, environmental and other laws applicable to ConocoPhillips’
business and other economic, business, competitive and/or regulatory factors affecting
ConocoPhillips’ business generally as set forth in ConocoPhillips’ filings with the
Securities and Exchange Commission (SEC).
Use of non-GAAP financial information - This presentation includes non-GAAP financial
measures, which are included to help facilitate comparison of company operating
performance across periods and with peer companies. A reconciliation of these nonGAAP measures to the nearest corresponding GAAP measure is included in the appendix.
Cautionary Note to U.S. Investors – The SEC permits oil and gas companies, in their filings
with the SEC, to disclose only proved, probable and possible reserves. We use the term
"resource" in this presentation that the SEC’s guidelines prohibit us from including in
filings with the SEC. U.S. investors are urged to consider closely the oil and gas disclosures
in our Form 10-K and other reports and filings with the SEC. Copies are available from the
SEC and from the ConocoPhillips website.

3. ConocoPhillips worldwide
LETIN
G
PRODUKSJON
LETING og
PRODUKSJON
The largest independent
E&P company in the
world, based on proven
reserves and production
of oil and gas.
Activities in 30 countries.
Estimated daily production in 2013:
1,5 million barrels
of oil equivalents
Around 16,900 employees
Headquarters in Houston, Texas
Proven reserves: 8,6 billion barrels of oil equivalents
Liquid products
LNG and gas
Gas from North
America
From the OECD
area
From outside OECD

4. Eldfisk
Ekofisk
Heidrun
Huldra
Oseberg
Embla
Troll
Visund
Tor
Grane
Alvheim
Significant interests on the Norwegian shelf
Net production: 134,000 barrels oil of equivalent per day, incl. fields operated by co-venturers.
Ownership interests in Gasled: Pipelines and terminals for Norwegian gas.
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Per 31. desember 2012

5. Manage our key activities and be sustainable
Business Targets for ConocoPhillips Management System
Efficient BU, streamlining work processes and organizations
Org. development, move from procedure to business process driven
Line mangers, manage and control daily activities in own processes
End Users, engaged end users to manage critical activities
Integrated Operations, manage collaboration with offshore facilities
Continuous change, end-to-end process view will improve Six Sigma efficiency
Knowledge sharing, use work processes for communication and training
Document structure, use process maps and requirements instead of procedures
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6. ConocoPhillips Norway BU Management System
Business

Processes
Support Processes
Goals & KPI’s
Knowledge Sharing
Management Processes
Network of Excellence
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7. Management system development
From procedures to established process driven Management System
Phase 1 – Develop Standard for BPM and the Management System
including APQC based identification of high-level value chains
Phase 2 – Develop Process Repository Content including modeling
conventions (collaboration map template)
Phase 3 – Integrate strategy, goals, KPI’s and documents in all key
processes resulting in a process oriented Management System
Phase 4 – Opportunity based level three and four process mapping
using collaboration map template
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8. Phase 1: Develop high-level value chains and related structure
Process Hierarchy
Level 1: Key Value Chains
 Established one Management System and one
BPM procedure
 The Process hierarchy, consisting of four
levels, and numbering is a merged version of
the APQC framework for Oil & Gas Upstream
and client customization
 Process hierarchy:
 1 Management processes
 14 Core upstream business processes
 6 Support processes
 Appointed key individuals with team members
to represent each process
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9. ConocoPhillips Norway BU Management System
Business

Processes
Support Processes
Goals & KPI’s
Knowledge Sharing
Management Processes
Network of Excellence
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10. Phase 2: Develop Process Repository Content
BPM & Management System
Level 2 Example
 Mapping of 21 key processes on level 2 as
value chains and sub-elements
 Mapping of 21 key processes on level 2 as
collaboration maps (management engagement)
 Preparing, training and supporting the
organization in process analysis and mapping
 Communicated COPNO standard for process
design and analysis
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11. Phase 2: Customized Norway BU process model template
(collaboration maps)
Modeling Conventions
Example
 Drill down in process hierarchy for details, both
through value chains and principle models
 Principle process model/collaboration map
from business management perspective.
 Technical process model/collaboration maps
from workforce perspective.
 Dedicated swim lanes for key organizational
units, including Applications and Documents
 Interaction between the different organizational
groups – visualized by standardized color
coding
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12. Process model example (collaboration map for Risk Assessment)
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13. Process map for Green Tag Permit (with requirement)
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14. Process map for Green Tag Permit (with requirement)
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15. Phase 3: Management System Integration
Business focus
 Stronger connection between yearly goals & KPI’s vs processes & activities
 Correlation of existing applications (300) with all 21 key processes
 Correlation of existing governing documentation (400) with all key 21 processes
 Two way connection between procedures and processes
 Formalize all governing documentation including requirements as procedures
 Keeping track of maturity, status and progress in many parallel streams
 Integration of intranett based management system incl. procedure portal
 Mapping of principle and technical collaboration maps (350)
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16. Phase 3: Management System Integration
MS administrative structure
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17. Phase 4: Opportunity based level three and four process mapping
(collaboration maps)
Developed best practice process mapping
 Focus on opportunities to improve core business (efficiency and safety) on a voluntary
bases
 Facilitate BPM work groups with minimum formalization to build momentum
 Clarify interaction and dependencies between key processes
 Formal requirements for use of “process model template” in all improvement projects,
including IT
 Same BPM team facilitates all process mapping with work groups/ line managers
 Same work groups are responsible for communication, training and continuous
development of as-is process models/ business activities
 Line manager and process owner is most often the same person
 Develop job descriptions based on process interaction and business activities
 Basis for individual performance agreement with supervisor
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18. Questions from the audience
BPM is an ongoing journey with a lifecycle perspective
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19. Summary
Experiences
 Process team and not the owner role have to be in focus along with key personnel
 Process ownership is best handled by Process team appointed by line managers
 Management System serves as the basis for communication and for further BPM activities inside each
individual function
 Communicate clearly that this is core business – not a one-time initiative
 Resistance to change can be reduced by involving right people/end users
 No need for selling – ”this is your job”
 Develop in live systems
 Ability to influence/improve their work processes by participating in the process teams/network.
 Training for new employees and experienced employees into new roles
 Managers gain a process oriented view of understanding their responsibilities and how their functional
unit relates to other processes
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20. Thank you for your attention!
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