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Schlumberger Business Consulting. Strategic Review (Extract) Houston, May 5, 2004. Objectives of the meeting. Review current SBC status and progress made since October 24, 2003 meeting Identify challenges to consolidate early success
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Schlumberger Business Consulting Strategic Review (Extract) Houston, May 5, 2004
Objectives of the meeting • Review current SBC status and progress made since October 24, 2003 meeting • Identify challenges to consolidate early success • Propose a long term vision for Schlumberger Business Consulting • Assess our impact on the rest of the business • Get your renewed support on SBC model and plan
Structure of the Document • Part 1- Achievements to Date • Achievements vs. business plan • People & location • Clients (per area) • Part 2 - Our Plan for the Future • People • Financial • Positioning • Part 3 - SBC Impact on Schlumberger Business • Cooperation at geomarket level • IM & IPM • iField
Achievements Right business plan Strong client demand, everywhere Right offerings No similar competitor, yet Right business model Right management team & management support Tangible benefits to GM Challenges Keep business model Keep doing our job (job quality, fee level…) Recruitment ramp-up, external & internal Elevate relationships Maintain GM interest Create a Schlumberger Consulting culture High Level Status of SBC – May 2004
Part 1: Achievements to date • Revenue & cost situation versus plan • People & location • NSA offerings, clients & pipeline • ECA offerings, clients & pipeline • Middle-East offerings & pipeline • South-East Asia offerings, clients & pipeline
Backlog and factored pipeline cover more than 100% of 2004 revenue target
NSA Highlights • Initial Principal training and market offering development effort completed • Strong backlog and pipeline growth • Good FY04 revenue target coverage in first 4 months of operations • Client traction across entire market offering portfolio • Good collaborative connections and relationships established with geomarket and global account teams • Good engagement representation on strategic iField opportunities • Good engagement representation across MOCs and premier MRH (Pemex)
ECA Highlights • 2004 revenue secured and current senior team fully loaded • Top level relationships, strong involvement in strategic change programs at Sonatrach & SNH • Management priorities in ECA: • Q2: build-up of UK senior team, to support Northern Europe development and E&P operations related consulting • Q3: focus on delivery to confirm SBC positions at main clients, emphasis on relationship building with Geomarket Managers • Q4: build-up of delivery team in the UK, and senior team in Russia
Part 2: Our Plan for the Future • $100m+ business, 12% net • >300 professionals, of which 100 from OFS/SIS • Recognized leader in the industry
Grow Practice to 300 Professionals within 5 Years • Structure & leverage (5,4 Operations consulting) • 40 to 50 Directors & Principals • 60 to 70 Managers • 40 to 50 Experts • 140 to 150 Consultants • Origin • 1/3 from Tier 1 Consulting firms (directors, most principals & managers) • 1/3 from MBA or Consulting firms (Consultant level) • 1/3 from Schlumberger (consultant level, MBA, experts, some managers) • Requirements & issues • Keep Business Model • Ability to attract talents from within (career mobility, IM cost, motivation) • Ability to attract/keep senior people
Raising our profile as O&G industry thought leader • Prominent role in O&G industry events • IQPC • SIS Forum • CIO Forum • HR Forum • White papers being prepared • I-field • Change management • Industry benchmarking exercises launched • HR • Upstream IT • Communication campaign launched
Part 3 : SBC Impact on Schlumberger Business • Current level of cooperation at geomarket level • IPM and Information Management • iField
Cooperation at field level: SBC starting to create an impact on Schlumberger business • Building strategic client relationships • Sonatrach, SNH, PTTEP, Medco, Pertamina • Joint pursuit & delivery initiatives • Hassi Messaoud field audit, SNH, Kerr McGee, Shell i-field • Field automation projects • Knowledge Management & Change Management • Contributing to Schlumberger’s views on key industry issues • iField, IM, HR • Contributing to Schlumberger client knowledge • Working with geomarket management to improve knowledge of its clients