Kwiniana RefineryKwinana Refinery

Organization capability strategy in a Global Business Services centre

Kitti Dobi – GBS EuropeHR Director

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BP Group OrganizationNumber of employees:83400

Service stations:21800

Exploration and production:In 30 countries

Refineries (wholly or partly owned):16

Refining capacity:2.4 million barrels per day

GBGB

Scene Setting

Purpose of GBS is to be a high performing Asset for BP Group. Deliver strategic value to the businesses and customers served.

This requires:•Integrity Management - safe, reliable and compliant operations•Cost Efficiency - Global Hybrid Model for risk, cost, agility and flexibility•Transformation capability – cost, cash, cycle time•Business par tnering to deliver change•Global Process Management, E2E for defined GBS scope

“GBS is part of, not separate to the business value chain”

Chicago450

Budapest850

Kuala Lumpur600

Cape Town200

Krakow150

Buenos Aires450

Melbourne500

Bangalore800

Manila325

Partners•Upstream•R&M• OB&C

Processes•Record to Report•Purchase to Pay•Order to Cash•Hydrocarbon Value Chain Accounting•Maintenance Technical Services

Captive Centre (BSC)

BPO Accenture

Central Teams

London150

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Our current footprint – GBS at a glance

GBS – Operating Model

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Upstream IST R&M OB&C

P2P

R2R

HVC

O2C

Revenue Acctg.

JV Acctg.

Product Control

Trade Completion

Supply Acctg.

Yield Acctg.

Tactical Sourcing e-Sourcing Ordering Receiving

Proc

.F&

A

Accounts Payable Intercompany Accounting

F&A

Tax

Trea

s.

F&A

CS Order Mgmt.

Credit

Accounts Rec.

Financial Acctg.

Fixed Assets & Project Acctg.

Internal Control

Statutory & Tax Acctg.

Planning & Performance

Reporting

Tax Reporting & Provisioning Tax Compliance

Treasury Operations & Services

H2R Onboarding

Timekeeping

Data & Org Structure Management

Payroll

Offboarding

Facilities Management

Business Analytics

Logistics & Scheduling

IT&S Helpdesk

Legal SupportOTHE R

Recharges

• Group-wide focus on Purchase- to-Pay (P2P) and Record-to- Report (R2R) processes

• Segment focus on Hydrocarbon Value Chain (HVC) and Order- to-Cash (O2C) processes

• Rationalised IT tool set which aligns with the process direction

• Process architecture comprehensively managed through BP Enterprise Activity Model (EAM)

• Data structures supportive of end-to-end processes

• Standard process metrics which measure and assure rigorous process execution

Hungary SSC market landscape

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•>80 SSCs in Hungary, ~25,000 employees•Average age is 30•Industry Ø tenure: 2-4 years with a company•Ø Turnover Rate is 18.9% (2011 HAY data)•Expanding scope/activities ~ 2000 FTE in 2013•Available knowledge: CS, Finance, Procurement, HR services, IT services

Centralizing processes in an SSC 6May 2012

Central Europe – competitive landscape

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Our Centre – Our Talent

• 400,000 students in 70 higher education institutions, 34 in Budapest with 180,000 students

• International talent pool, majority with international and/or work experience

• University diplomas require 2 language certificate and advanced computer knowledge

• Available experience on the market: language skills, computer skills, Finance, Procurement, HR, IT and CS industry knowledge, process reengineering expertise and focus

In practice:

• Employee headcount YTD: >870– 85% has a degree

• We have 29 nationailities in the Centre, only 83.8% Hungarian

• Countries supported: 16

• Languages spoken: 14

• Systems in usage: 223

• ISO certified: 9001 and 14001

• Delivered 63 transitions YTD

• ~200 Yellow Belts and 22 Green Beltss trained YTD

Our European Centre in numbers

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Top 5 People Risks Systematic management

People Risks•Sustaining employee engagement•Competitive landscape with "Supply Focus" on BP people as tenure increases

•Significant demands on our staff - transition, operations and transformation programs•Diversity of staff with focus on family support model

•Sustaining knowledge at a role level while advancing peoples careers

Mitigation• Developed GBS VoE to monitor

engagement, addressed middle management - formed ELT, TL community

• Balance recruitment profiles and strive for sustainability – introduced internship, graduate program and part time options, AC methodology in house

• Process focus vs people dependencies – robust MOC approach developed and knowledge management strategy in place

• Agile work arrangements, maternity leave and return program, cooperation with 3 NGO’s in place, Team Solaris

• Unique L&D offer ( over 40 offerings), and career management system supported by an EBSC talent program and succession plan

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L&D as differentiator – addressing retention

Differentiator – build domain expertise - development opportunities:

Differentiator – EBSC talent management program1. We have assessed our organization capabilities , identified key and critical roles

2. We have identified our key professionals and high potentials

3. Customized Development Centres to assess capabilities

4. Based on the results we run a seniority tailored development program

Functional/system skills• CS Excellence• BP Financial University • ACCA • CI-yellow belt • system skills - SAP, Cardex, Siebel

superuser program

Management and soft skills• Managing Essentials • Manager development programs• D&I • Problem solving• Change management• Train the trainer etc

Our organization development strategy - I, II

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EBSC talent mgmt program – our future success as an organization

The goal of Talent Management is to build sustainable capability for your organisation in support of business strategy.

People Strategy – 5 cornerstones

Assessment of organisation capability matched to business requirements

Structured development programs – time-phased, skills based, proficiency assessed

Targeted training programs to create transferrable skills

Strong marketing and communications structure to brand “Talent Management”

Global career path modelling to inform benefits for people and organisation from your talent program

Being a talent means:

Greater visibility and access to our senior leaders.

Greater opportunity to be considered for higher or broader roles.

Opportunity to participate in a focused development program.

Greater opportunity to become a nominee for BP Global Talent Programme.

Yearly assessment and review of population as part of year end people mgmt activities

Talent management in practice

2. Line Manager development - AchievementsOrganization development strategy – III.Career path - Make it live, transparent and

available

3. Career Opportunities - AchivementsAttract, provide perspective and educate

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What success looks like

Measurement Success Factors

Engagement Survey

Employees see they have career opportunities at eBSC

Employees feel they have meaningful conversations about the next step in their career development

Excellent performance, high-potential and aspiration are rewarded and recognized

Retention *

Line Managers develop and keep strong talents

Line Managers had a positive impact via talents’ feedback

Organization and Process Strength

Talents have clear and documented commitments

Talents have a development plan and agreed upon timelines

Talents have and take development opportunities (project- involvement)

Talents are considered for open leadership positions

HR Metrics

100% of talents have personal development plans in place

No talents terminate employment contract

Note: Studies show managers play a major role in employees’ decision to remain with the company.

If you do not measure...

Key success factor – middle management as engagement ambassador

PRIORITIESShort & Long

Term We build sustainable organisational capability by living BP values and culture.

We drive operational excellence for the benefit of our stakeholders and our people.

We create positive working environment based on trust, transparency and engagement.

One BSCOne eBSC

DELEGATIONRoles &Resp’s

ENGAGEMENT &INTEGRITY

CONTRIBUTE

BP VALUES

Final Thoughts

Keys to success

•Diversity of thought in order to drive change and innovation for the customer

•Global Career Path models with the customer

•Systematic management of HR processes – “Source to Develop Cycle”

Risks to manage

•Retaining our global talents

•Maintaining engagement as well as motivation – top down and bottom up

•Building diverse opportunities

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