Successful inquiry and performance systems delivery

BUSINESS PROCESS IMPROVEMENT Sketch Notes (strategy lean 5s bpi)

 

 

 

 

 

 

Impact

As a result of implementing the proposals, managers could now be managed; staff were made more effective in their jobs; and the company’s quality and efficiency improved.

 

Background

An upstream oil and gas company – with operations in Europe, Middle-East and Africa, and a turnover of £700m – was overrun with 10+ different business planning systems.

As a result, there was a lack of proper checks and warning systems, no proper management of managers, and instances of poor financial practice.

HVP were called in by the group’s International Business Unit to review the group’s planning systems and processes – and to make recommendations for improvement, and for changes to IT systems.

What we did

Peter Woodruff of HVP visited all the group’s departments – including exploration, engineering, economics, control and accounts, and strategic planning – spread across London, Scotland, the Netherlands and Germany.

In total he conducted 37 interviews and reviewed 25 Excel-based planning systems.

Having identified poor planning was limiting the financial reporting, he extended his review to control and accounting functions as well.

From Peter’s research and interviews, he identified 158 issues that needed addressing.  He presented his results to the company’s Board, alongside detailed recommendations.  As a result, several major changes and improvements took place:

  • A single and cohesive data management and planning system replaced the multiple stand-alone systems. Reporting was now properly aligned.
    Uniformity of data collection, its usage and interpretation, was now achieved.
  • Roles within the accounting and strategic planning departments were re-aligned. This introduced effective reporting of variances to budget and enabled managers to better manage – as well as allowing their performance to be measured.
  • The company’s bonus policy was now accurately applied.
  • The monthly financial reporting timetable was halved, from 8 weeks to 4.
  • The need for a financial controller, who would hold managers to account, was accepted.

 

Back to Top