ERO Opportunity Framing 11-3 PDF

Opportunity Framing
Essentials of Realising
Opportunities
Author: Sally Jabaley

Version: 20 February 2013
Essentials of Realising Opportunities 1

Copyright Shell International B.V. 2010. Strictly Private and Confidential
What is Opportunity Framing?
Essentials of Realising Opportunities Footer: Title may be placed here or disclaimer if 11 March 2013 2
Date 11/03/2013
required. May sit up to two lines in depth. 2
In Opportunities, Value is Created Upfront
Notice the difference that project definition, good or poor,
makes on the end results.
Value Identification Value Realization

Good Project
Execution
Good Project
Definition A
B
Poor Project
Execution
Value
Good Project
Execution
C
Poor Project
Poor Project
Definition
Execution D
Identify Assess Select Define Execute Operate
Divergent Thinking Convergent Thinking
A Good project definition and execution C Poor project definition and good project execution
B Good project definition and poor project execution D Poor project definition and poor project execution

Opportunity Framing Helps Us Create Value Upfront
Opportunity Framing is one of the early

activities where the opportunity team
can make the difference between a poor
and a good definition.
Quality Opportunity Frames in the
Identify Phase can make a huge
difference to the direction that a project
can take later on in the project lifecycle
Opportunity Framing At Its Essence
1 3 2
Where do
Where are How are we going to
we want to
we now? get there?
be?
At its essence, framing is a simple process of deciding and gaining alignment on

where we want to be and how to get there from where we are now.
Opportunity Framing is a Structured Dialog that creates common understanding
on exactly what the opportunity is and agreement and commitment on the path
forward.
For example:
Are you building a wall or the Sistine Chapel?

What Opportunity Framing is Intended to Achieve
Define the Opportunity - what is the value to the

Company ?
What the Opportunity is and is not
Understand in context of Group's strategies & Clarify the
objectives objectives.
Understand and rank the Value Drivers /
Critical Success Factors, and understand their
Identify potential
show stoppers.
trade offs
Identify stakeholders and develop plans to Assign actions to
engage them resolve questions.
Identify Opportunities & Threats as input to a
Risk Register and Risk Management Plan
Define success
Understand the key milestones

Opportunity Framing Deliverables
Opportunity Statement
Definition of Success + Strategic Fit
High Level Opportunity Road Map
Develop a decision hierarchy as input to the Clarify the
Integrated Decision Based Plan (IDBP) objectives.
Risk Management Plan Identify potential
Stakeholder Management Plan show stoppers.
Opportunity Assurance Plan
Assign actions to
resolve questions.
The Risk Management Plan, the IDBP, the Stakeholder
Plan and the Opportunity Assurance Plan should all be
integrated with one another to ensure that assurance is
commensurate to the magnitude of risk associated with
each Development Decision

Opportunity Framing at Shell
Opportunity Realisation Process
Identify Assess Select Define Execute Operate
Divergent Thinking Convergent Thinking
Opportunity Opportunity Opportunity Opportunity

Framing (re) framing (re) framing (re) framing
Opportunity Framing (OF) is a mandated activity per the ORM at the start of
each ORP phase, or as frequently as required.
Opportunity Framing is necessary at the start of each phase in order to re-
fresh the value drivers, risks, decisions and roadmap

The Process
Date 11/03/2013
The Opportunity Framing Process
The Opportunity Framing process is scalable, and can take
place over a series of weeks or in a single day, depending
on the size and complexity of the opportunity.
The process depends on the quality of input from the right
people and having all the appropriate information.
Opportunity Framing Workshops should be led by a
suitably qualified facilitator, who understands lifecycle
project delivery, and preferably who has delivered projects
themselves across multiple ORP phases.
The framing process provides alignment and buy-in from
the DE, FEDM, BOM and the team on what the boundaries
are, and the decisions and activities that are required to
deliver the project in an agreed timeframe.
Regardless of the scheduling of the process (length of time,
use of a workshop, etc.), the steps and deliverables are
always the same.

The Opportunity Framing Process
The Opportunity Framing process is scalable, and can take
place over a series of weeks (or months) or in a single day,
depending on the complexity of the opportunity.
The process depends on the quality of input from the right
people and having all the appropriate information.
Opportunity Framing Workshops should be led by a
suitably qualified facilitator, who understands lifecycle
project delivery, and preferably who has delivered projects
themselves across multiple ORP phases.
The framing process provides alignment and buy-in from
the DE, FEDM, BOM, the team, and other key stakeholders
on what the boundaries are, and the decisions and
activities that are required to deliver the project in an
agreed timeframe.
Regardless of the scheduling of the process (length of time,
use of a workshop, etc.), the steps and deliverables are
always the same.

The Opportunity Framing Process Steps
1 7
6
8
9
4

The Grounding Presentations

1
present the information that is
known going into the opportunity
to set the stage for the framing, Examples of Givens:
and should cover the full TECOP
Costs must be less than $X
spectrum.
Project will move forward if near
field exploration (NFE) well is a
Givens are the parameters of the
success
opportunity that are not
changeable, and thus not up for Project pace will be re-visited if
discussion. NFE well is dry
Commercial deal with Joint
Venture partner is required

The Opportunity Statement

defines the essence of the
2
opportunity: Example of an Opportunity Statement:
Why do we want to do it?
What, precisely, is the opportunity
Scope Content
for Shell?
What value does it bring to the
Provide infrastructure for the commercial evacuation of Sans Seriff Associated Gas
company?
to the Tahoma LNG plant starting 2004, on order to secure profitable oil production
Has many characteristics of the without flaring
elevator pitch: Business

Timing
Objectives
Short and crisp Boundary
Creates common understanding
Condition
Used for communication

Checked with management
Describes the full life cycle of the
opportunity

Stakeholder Analysis
Stakeholder Analysis
Identify all internal and external
3 Example of Stakeholder Map:
stakeholders
Assess their influence on the
project (positively or negatively)
Assess the issues and needs for
each of the key stakeholders
Develop an engagement plan to
obtain all necessary approvals
from them
Three distinct dimensions (influence, interest,
support) are to be identified. Consider using
colors (green, yellow, red) to denote support
and interest, as well as movement.

Value Drivers / Critical Success Factors
The project team must

understand the prioritised
4 Example Project Value Drivers:
Cost
drivers in order to make the
appropriate tradeoffs Schedule
Production
Value Drivers: Example supporting CSFs:
Identify and rank the project specific value
CSFs For Cost
drivers
Standardisation and Repeat Execution
Value Drivers are the Levers that will maximise value to
Shell Conduct External cost benchmarking
Ranking value drivers is important as it forces a Leverage Shells Frame Agreements for C&P
discussion on their relative trade offs CSFs for Schedule
For example; ranking Cost & schedule as equally Construction Yard availability
important is not possible.faster schedules cost
Drilling Rig availability
money!
Timely approvals for required permits
Critical Success Factors (CSF):
These are the supporting activities or
requirements to support the value driver
Risk Management Opportunity and Threat Identification
What are the major Risks to the
Opportunity? 5
Risks can be both Opportunities and Threats
but they need to be addressed and actively
managed in order to take the Example of O&T Grid:
opportunity forward Are there any
Showstoppers?
Conducted through facilitated team

brainstorming event
Important that the full breadth of Opportunities
and Threats are captured
.and as such it is important that the key
individuals are present.including the BOM!
This Risk brainstorming feeds the Risk Register

and the Risk Management Plan

TECOP provides broader spectrum of business aspects to
identify risks
Subsurface Operability
Technical

Infrastructure Availability
Surface Integrity
Technology HSE
Economic
Life-cycle cost Capacity
Phasing Economic model
Valuation method Regret costs
PSC and Fiscal Regime Terms
Commercial
Contracting Competition
Financing Marketing
Business Controls Liabilities
Legal
Structure Interfaces
Organisational

Resources
Competencies

Knowledge Management
Systems, IT
Procedures Governance
Government Reputation
Political

Stakeholders
Employment

Community
Localisation
Regulation NGOs
Security Export control
The end deliverable of the risk management process is the Risk Management Plan
Definition of Success and Strategic Fit
The Definition of Success

is generally defined at the
6
start of the project and then at
reference points (such as stage
gates) throughout the process. Example of Definition of Success:
It consists of: At DG3, the project will have Best Practical
Definition of Success Front End Loading score as measured by IPA
benchmarking.
Success Requirements
At DG3, the cost metrics for the project will be
Measures of Success Top Quartile as projected by IPA.
The Strategic Fit defines how Examples of Strategic Fit:

the opportunity fits with The project will deliver new reserves of X
corporate strategies. barrels of oil equivalent recoverable.
The project will deliver production of Y
boe/day at a plateau of 5 years.
The project will establish a new heartland for
Shell in this country.
Decision Hierarchy, Roadmap, and Action Plan
7
The Decision Hierarchy defines Givens, Focus/Strategic Decisions
and Tactics/Secondary Decisions, and provides guidance on the
priorities for decision making for the team.
The strategic and secondary decisions are key input to define the
Integrated Decision Based Plan

Decision Hierarchy, Roadmap, and Action Plan
The Roadmap pulls all of the Opportunity Framing decisions

together into one picture that guides the opportunity at the
8
high level. This high level Roadmap should be complimented
by the more detailed Integrated Decision Based Plan.
The Action Plan defines specific, tangible tasks that will be

taken by the team members to progress the opportunity.
9
Specific team members and dates are assigned to each task.

The Roadmap
Date 11/03/2013
Opportunity Roadmap
The Opportunity Roadmap is an agreed-upon

High level plan for delivery of the opportunity,
which aligns the team, the Line of Sight, and
other stakeholders, and which also articulates:
What activities should be undertaken and when
The timeline, with dates, for key milestone decisions
The key decision points
Any intermediate decisions between key decision points
The deliverables required to support the decisions
Often a roadmap covers a detailed description

of the activities in the next phases and an outline
of activities in later phases; it is then updated as
the Opportunity progresses.

Everything Comes Together in the Roadmap

The Roadmap
Life-cycle and high level decision-
based plan
Defines the timeline, milestone decision
points and decision makers
Defines deliverables and prime action
parties .... the team
Links activities, deliverables
milestone decisions
Enables alignment of work in multi-
functional teams
Roadmaps can be nested for
example there will need to be more
detailed Integrated Decision Based
Plans to support delivery of Assess and
Select Phases
The Roadmap Template
Timeline Date Date Date Date Date Date
Phase Identify Assess Select Define Execute Operate

Stop, Hold, Recycle Stop, Hold, Recycle Stop, Hold, Recycle Stop, Hold, Recycle Stop, Hold, Recycle Stop, Hold, Recycle
Decision DE/DRB: DE/DRB: DE/DRB: DE/DRB: DE/DRB: DE/DRB:
Opportunity Tollgate Tollgate Tollgate Tollgate Tollgate Tollgate
Statement Decision Decision Decision Decision Decision Decision
Mandate Mandate Mandate Mandate Mandate Mandate Mandate
Deliverables Deliverables Deliverables Deliverables Deliverables Deliverables Deliverables
Work Team Leader: Team Leader: Team Leader: Team Leader: Team Leader: Team Leader:
Team Team: Team: Team: Team: Team: Team:
Focus Items: Focus Items: Focus Items: Focus Items: Focus Items: Focus Items:
Focus Activities: Activities: Activities: Activities: Activities: Activities:

Items,
Activities
Assists/VAR Assists/VAR Assists/VAR Assists/VAR Assists/VAR Assists/VAR
PAP

Opportunity Framing
Essentials of Realising
Opportunities
End of Presentation
Author: Sally Jabaley

Version: 31 January 2013


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Opportunity Framing

Author: Sally Jabaley

Essentials of Realising Opportunities 1

Value Identification Value Realization

Identify Assess Select Define Execute Operate

Divergent Thinking Convergent Thinking

Essentials of Realising Opportunities 3

Opportunity Framing is one of the early

At its essence, framing is a simple process of deciding and gaining alignment on

Essentials of Realising Opportunities 5

Define the Opportunity - what is the value to the

Essentials of Realising Opportunities 6

Essentials of Realising Opportunities 7

Opportunity Realisation Process

Identify Assess Select Define Execute Operate

Divergent Thinking Convergent Thinking

Opportunity Opportunity Opportunity Opportunity

Essentials of Realising Opportunities 8

Essentials of Realising Opportunities 10

Essentials of Realising Opportunities 11

Essentials of Realising Opportunities 12

The Grounding Presentations

Essentials of Realising Opportunities 13

The Opportunity Statement

elevator pitch: Business

Used for communication

Essentials of Realising Opportunities 14

Essentials of Realising Opportunities 15

The project team must

Conducted through facilitated team

This Risk brainstorming feeds the Risk Register

Essentials of Realising Opportunities 17

The Definition of Success

The Strategic Fit defines how Examples of Strategic Fit:

Essentials of Realising Opportunities 20

The Roadmap pulls all of the Opportunity Framing decisions

The Action Plan defines specific, tangible tasks that will be

Essentials of Realising Opportunities 21

The Opportunity Roadmap is an agreed-upon

Often a roadmap covers a detailed description

Essentials of Realising Opportunities 23

Essentials of Realising Opportunities 24

Phase Identify Assess Select Define Execute Operate

Mandate Mandate Mandate Mandate Mandate Mandate Mandate

Deliverables Deliverables Deliverables Deliverables Deliverables Deliverables Deliverables

Focus Activities: Activities: Activities: Activities: Activities: Activities:

Assists/VAR Assists/VAR Assists/VAR Assists/VAR Assists/VAR Assists/VAR

Essentials of Realising Opportunities 26

Author: Sally Jabaley

Essentials of Realising Opportunities 27

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