The Power of Connections

June 2013

Dan Ranta

“Driving Business Excellence with Purposeful Collaboration”

ConocoPhillips: Company Overview

ConocoPhillips explores for, produces, transports and markets crude oil, natural gas, natural gas liquids, liquefied natural gas and bitumen on a worldwide basis. Key focus areas include safely operating producing assets, executing existing major projects and exploring for new resources in promising areas.The portfolio includes legacy assets in North America, Europe, Asia and Australia; growing North American shale and oil sands businesses; a number of major international development projects; and a global exploration program. ConocoPhillips conducts exploration activities in 19 countries and produces hydrocarbons in 13 countries, with proved reserves located in 15 countries as of Dec. 31, 2011. Headquartered in Houston, Texas, ConocoPhillips has operations in almost 30 countries. As of December 1, 2012, the company had almost 17,000 employees worldwide.

Footnotes

External Range

History of ConocoPhillips

2000 2001 2002 2003 2004 2005

Wilhelmshaven Refinery

Wilhelmshaven Refinery

2006 2007

Canada

ARCO Alaska

2008

LUKOIL

2013+

Repositioning

2004 2005 2006 2007 2008

PreviousNetworks – Downstreamand Upstream(FETs & NETsCreated)

KS Strategy/Upstream

GlobalAwards4-Gs

Upstream Network Model

Functional Excellence (continuous improvement)

Communication& Training

Semantic Analysis (Content)

Discussion Sharing

2009

Enterprise-wide KS Program

Defin

ing

New

Co

no

coP

hillip

sE

mp

hasis o

n In

tegratio

nE

xpertise L

ocatio

nN

etwo

rk Im

pact A

ssessmen

tsH

R / L

earnin

g L

inkag

e

Focus onConnectingPeople

2010 2013-4

KS Vision – 2014

Knowledge Sharing Journey

OneWiki Pilot and Launch

2011

“New Edge in Know-ledge” published

Global MAKE Award

2012

Repositioning

1990s-2003

SuccessStories

Networks 2 40 60 100 130 150+

KS University

105+

KS Provides a Strategic Advantage

Networks of Excellence 105+ Enterprise-wide technical expertise networks have 100 to 800+ members each (all networks sanctioned by the business)

Network Membership About 40,000 Total Network Members (13,000+ unique)

Global Collaboration Over 130,000 instances of peer-to-peer problem solving in the last 7 years – key source of business value; nearly percent of employees reading Network sites (Learning)

Collaborative Culture Focus on knowledge capture and re-use to retain critical knowledge and overcome demographic challenges

Business Impact $100s of millions of documented savings – (2004 – present)

External Benchmarking and Recognition

– 2005, 2010 Spirit Award– 2009 – 2012 Most Admired Knowledge Enterprise (MAKE) Winner

Key Measures and Results

Vision: A workplace where employees continuously deliver additional value

through global collaboration and expertise sharing.

FORMAL INFORMAL

FrameworksRoles

MethodologiesProcesses

Accountabilities

BusinessDetermines

Balance

Functional Excellence

Balancing the Formal and Informal

Adaptable NetworksAgile Interactions

CollaborationInnovation

Business 2.0

Help employees handle situations that do not fit cleanly into established processes and structures

Leadership BehaviorsDiversity of Thought

Organizational Transparency

7

Purposeful Collaboration provides Competitive EdgePurposeful Collaboration provides Competitive Edge Purposeful collaboration for global functions, disciplines and networks

is aligned with value for Business Units and Functions Other Knowledge Sharing is also valuable Key is for global networks to set goals with measurable deliverables

COLL

ABO

RATI

ON

TIME

VALUE

Purposeful Collaboration

8

Knowledge Library OneWikiAsk & DiscussEnhanced

• Expert problem solving…globally

• Questions & answers for challenges

• Where know-how and know-what is shared

• Sharing across networks

Sponsor

SME

MembersCore Team

Leader

Network of Excellence

Network of

Excellence

Network of

Excellence

• The 1st place to look for subject overviews

• Collective know-how, know-what, know-why

• Knowledge “in context”

• Global Learning

Knowledge Architecture / CultureKnowledge Architecture / Culture

Documented Knowledge

• Reusable internal and external content

• Lessons learned & Best practices

• Closed discussions

• Guidelines

Sister Network Sharing – powerful “horizontal” INTEGRATION

Wells Excellence

IT

Operations Excellence

Technology

Subsurface Excellence

HSE

Functions

Procurement

Project Development

Marine

Knowledge Sharing

Lin

e Org

aniza

tion

s: Resu

lts & R

eward

s

ConocoPhillips has a matrix organization

• Allows sharing more readily across boundaries (advantage)• Allows for specialization and career progression (advantage)• Requires coordination to ensure priorities are managed (challenge)• Requires effective leadership behavior (challenge)

Combination of Vertical and Horizontal work

patterns create: Sustainable Business

Value

Employees

Global Functions

Functions / Networks: Work Performance & Quality

Global Disciplines

Global Networks

Will Be: Values Based Performance- and results-driven Focused & aligned Efficient & non-bureaucratic Empowered & collaborative Inspired & fun

Collaboration is vital to our success as an agile independent Spread the word…culture changes happen one person at a time

Knowledge Sharing at ConocoPhillips

transformational services Collaborative jams Visioning strategy sessions Turning strategy into actionWikithons

13

2012 Advance Working Group Study2011 – “Excellence in engagement and participation for knowledge sharing and collaboration”2009 – “Excellence in sustaining effective communities of practice”2005 & 2010 – Spirit of Performance Knowledge Sharing & Business Partners2009 – 2012 – Most Admired Knowledge Enterprise (MAKE) Awards

Award-winning program

Leadership & Sponsorship must be active -- People respond positively when their supervisors are supportiveWe learn from each other and through stories (Know-how and Know-

what) – and this is great way to measure resultsKnowledge accumulates in Networks – that’s got to be the focusTechnology alone does not change behaviorContext is more important than contentKnowledge is not free; it requires development, maintenance and

transfer / absorption costs Nothing significant happens without trustFocus mainly on connecting people and local knowledgeMake it part of personal business goals / commitmentsRegular follow-up and health checks are essentialUse Continuous Business Improvement as a key driver

Best Practices – Keys to Creating a World Class KS Culture

Leadership / Governance / Communications•KS Strategy / Vision – clear roadmap refreshed regularly by business input•KS Function / Team – highly motivated, customer oriented KS Team•Governance – strong functional and regional leadership support (KLST) •Communications – relentlessly obsessing about our 10-year journey – internally and externally in•myriad of publications (including internal branding) •External Benchmarking & Awards – reciprocal sessions and MAKE awardsBusiness Focus•Business Value – high business value ($100s millions of ENCF impact) •Continuous Improvement – focus on “Functional Excellence” •Transformational Services – Visioning, Jams, WikithonsEngagement with Employees•Knowledge Sharing Culture / Sponsorship – unanimous EVP support for KS culture•Rewards and Recognition – highly coveted Global Awards for KS•Collaboration – high usage of our 100+ Networks and cross-network focus (very sticky)•Training – regular sessions face-to-face and virtual (KS University) •Innovation from Consulting Support – engage excellent consulting services (best technology)Focus on Learning and Quality Content•Learning Organization – 125,000+ instances of peer-to-peer problem solving and 75 percent readership across all employees•Intellectual Capital – with semantic analysis and OneWiki solutions

Best Practices – Keys to Building a World Class KS Program