The Value of an Integrity Managem The Value of an Integrity - - PowerPoint PPT Presentation

PIMS

• f London

The Value of an Integrity Managem The Value of an Integrity Management ent Process from Process from a a Business Perspective usiness Perspective

Presented by: Presented by: Trent Ackhurst rent Ackhurst

PIMS

• f London

Discussion Points

1. The Importance of Goals 2. The Drivers of Goals 3. Developing Business Strategy to Achieve Goals 4. Capabilities Required to Execute Strategy 5. Translating Strategy into Integrity Management Goals 6. Intermediate Steps of IMP from a Business Perspective 7. Review Goal Validity and Strategy Effectiveness 8. Conclusions

PIMS

• f London

Business Operating Rhythm Process Map - IMP in wider Business Process Process Map - IMP in wider Business Process

Review Business Goals Set Business Goals

Stakeholders

Define Business Strategy Functional Specification

Integrity Management Process

Goal Setting

Segment Identify Threats Gather Data

Assess Risk

Prioritise Evaluate Integrity

React Predict Correct Prevent

Respond

Review

Influencers

PIMS

• f London

Business Operating Rhythm

Review Business Goals Set Business Goals

Stakeholders

Define Business Strategy Functional Specification

Integrity Management Process

IMP

Goal Setting

Segment Identify Threats Gather Data

Assess Risk

Prioritise Evaluate Integrity

React Predict Correct Prevent

Respond

Review

Influencers

Set Business Goals

• 1. The Importance of Goals

Ensuring that an organisation has a collective understanding of where it wants to be.

PIMS

• f London

Business Operating Rhythm

Review Business Goals Set Business Goals

Stakeholders

Define Business Strategy Functional Specification

Integrity Management Process

IMP

Goal Setting

Segment Identify Threats Gather Data

Assess Risk

Prioritise Evaluate Integrity

React Predict Correct Prevent

Respond

Review

Influencers

Set Business Goals

• They set business direction
• They help to stretch an organisation
• They form the foundation of how the success of an Organisation is measured
• They assist in managing the expectations of Stakeholders and Influencers
• To do so, they must be effective (S.M.A.R.T.) and well-communicated
• To do so, they need collective buy-in.
• 1. The Importance of Goals

. The Importance of Goals

PIMS

• f London

Business Operating Rhythm

Review Business Goals Set Business Goals

Stakeholders

Define Business Strategy Functional Specification

Integrity Management Process

IMP

Goal Setting

Segment Identify Threats Gather Data

Assess Risk

Prioritise Evaluate Integrity

React Predict Correct Prevent

Respond

Review

Influencers Stakeholders

• 2. The Drivers of Goals

Who sets the goals and what factors or people determine what goals are appropriate

Influencers

PIMS

• f London

Business Operating Rhythm

Review Business Goals Set Business Goals

Stakeholders

Define Business Strategy Functional Specification

Integrity Management Process

IMP

Goal Setting

Segment Identify Threats Gather Data

Assess Risk

Prioritise Evaluate Integrity

React Predict Correct Prevent

Respond

Review

Influencers Stakeholders Influencers Influencers

Influencers

• Influencers set the boundaries that govern whether Goals

can be met

• Customers / Regulators / Employees
• Have an impact on strategy
• 2. The Drivers of Goals

. The Drivers of Goals

Stakeholders

• Develop Framework for Goals to be set
• In Private Sector they are Shareholders
• In Public Sector they are the Government

Types of Goals - Financial, Political, Social

PIMS

• f London

Business Operating Rhythm

Review Business Goals Set Business Goals

Stakeholders

Define Business Strategy Functional Specification

Integrity Management Process

IMP

Goal Setting

Segment Identify Threats Gather Data

Assess Risk

Prioritise Evaluate Integrity

React Predict Correct Prevent

Respond

Review

Influencers

Define Business Strategy

• 3. Developing Business Strategy to

Achieve Goals

Business Strategy is the route by which Goals can be achieved

PIMS

• f London

Business Operating Rhythm

Review Business Goals Set Business Goals

Stakeholders

Define Business Strategy Functional Specification

Integrity Management Process

IMP

Goal Setting

Segment Identify Threats Gather Data

Assess Risk

Prioritise Evaluate Integrity

React Predict Correct Prevent

Respond

Review

Influencers

Define Business Strategy

• 3. Developing Business Strategy to achieve Goals

. Developing Business Strategy to achieve Goals

In order to Define an effective Business Strategy, a Management Team must:

• Retain Framework of Defined Goals
• Understand the relevant Influences - eg Market Drivers
• Understand Resource constraints
• Challenge Technology to push the boundaries of what is achievable
• Operate within boundaries set by Regulators and Lobbyists

PIMS

• f London

Business Operating Rhythm

Review Business Goals Set Business Goals

Stakeholders

Define Business Strategy Functional Specification

Integrity Management Process

IMP

Goal Setting

Segment Identify Threats Gather Data

Assess Risk

Prioritise Evaluate Integrity

React Predict Correct Prevent

Respond

Review

Influencers

Define Business Strategy

• 4. Capabilities Required to Execute Strategy

Critical to ability to successfully execute Strategy

PIMS

• f London

Business Operating Rhythm

Review Business Goals Set Business Goals

Stakeholders

Define Business Strategy Functional Specification

Integrity Management Process

IMP

Goal Setting

Segment Identify Threats Gather Data

Assess Risk

Prioritise Evaluate Integrity

React Predict Correct Prevent

Respond

Review

Influencers

Define Business Strategy

People

• Leaders are required with Domain Knowledge and Objectivity
• Resources must be in place to track performance and review
• Teams must have Imagination to deliver on strategies with finite resources

Process

• Serves to break down tasks into manageable steps
• Governs collective direction and avoids duplication
• Process requires frequent review to ensure appropriateness
• 4. Capabilities Required to Execute Strategy

PIMS

• f London

Business Operating Rhythm

Review Business Goals Set Business Goals

Stakeholders

Define Business Strategy Functional Specification

Integrity Management Process

IMP

Goal Setting

Segment Identify Threats Gather Data

Assess Risk

Prioritise Evaluate Integrity

React Predict Correct Prevent

Respond

Review

Influencers

• 5. Translating Strategy into Integrity

Management Goals

Creating the Functional Specification that drives the Integrity Management Plan Functional Specification

PIMS

• f London

Business Operating Rhythm

Review Business Goals Set Business Goals

Stakeholders

Define Business Strategy Functional Specification

Integrity Management Process

IMP

Goal Setting

Segment Identify Threats Gather Data

Assess Risk

Prioritise Evaluate Integrity

React Predict Correct Prevent

Respond

Review

Influencers

Functional Specification

Building the Functional Specification

• The Strategies form the basis of the Functional Specification
• Internal “Mission Statements” also a

basis by which IMP Goals are set

• This Objective-criteria is combined with more Quantitative elements

Validating the IMP Goals & the Functional Specification

• Assess impact of the IMP on each component of Functional Specification
• Pipeline Integrity is central to O&M, rather than parallel to it.
• The exercise determines individual tactics to deliver on Functional

Specification

• 5. Translating Strategy into IMP Goals

PIMS

• f London

Business Operating Rhythm

Review Business Goals Set Business Goals

Stakeholders

Define Business Strategy Functional Specification

Integrity Management Process

IMP

Goal Setting

Segment Identify Threats Gather Data

Assess Risk

Prioritise Evaluate Integrity

React Predict Correct Prevent

Respond

Review

Influencers Integrity Management Process

Segment Identify Threats Gather Data

Assess Risk

Prioritise Evaluate Integrity

React Predict Correct Prevent

Respond

• 6. Intermediate Steps of an Integrity

Management Process from a Business Perspective

Understanding the impact of all

• f the steps between Goal

Setting and Review from a Business Perspective

PIMS

• f London

Business Operating Rhythm

Review Business Goals Set Business Goals

Stakeholders

Define Business Strategy Functional Specification

Integrity Management Process

IMP

Goal Setting

Segment Identify Threats Gather Data

Assess Risk

Prioritise Evaluate Integrity

React Predict Correct Prevent

Respond

Review

Influencers Integrity Management Process

Segment Identify Threats Prioritise

Segmentation and Prioritisation

• Serves to focus attention on the right assets first
• Various different methods or combinations of methods exist
• Allows budget tracking and cost benefit measurement
• 6. Intermediate Steps of an IMP

Identification of Threats

• Failure from a business perspective
• Allows prioritisation of responses to

specific threats

• Eliminates expenditure on

non-existent threats

PIMS

• f London

Business Operating Rhythm

Review Business Goals Set Business Goals

Stakeholders

Define Business Strategy Functional Specification

Integrity Management Process

IMP

Goal Setting

Segment Identify Threats Gather Data

Assess Risk

Prioritise Evaluate Integrity

React Predict Correct Prevent

Respond

Review

Influencers Integrity Management Process

Gather Data

Assess Risk

• 6. Intermediate Steps of an IMP

Gathering of Data

• Appropriate information supports correct Decision making
• Information must be rooted in the perception of Relevant Threats
• These requirements need to be pre-determined

Risk Assessment

• Generate a Risk Score using

Probability and Consequence of Failure

• Business Goals have to influence

weighting within Risk Score

• Set Integrity assessment priorities

using weighted Risk Score

PIMS

• f London

Business Operating Rhythm

Review Business Goals Set Business Goals

Stakeholders

Define Business Strategy Functional Specification

Integrity Management Process

IMP

Goal Setting

Segment Identify Threats Gather Data

Assess Risk

Prioritise Evaluate Integrity

React Predict Correct Prevent

Respond

Review

Influencers Integrity Management Process

Evaluate Integrity

React Predict Correct Prevent

Respond

• 6. Intermediate Steps of an IMP

Integrity Evaluation (Predictive Actions)

• Two scenarios that justify an Integrity Evaluation

1: When the data available results in an unacceptable span of the risk-score 2: When Predictive measures must be deployed to determine failure point

Addressing Threats & Consequences

• Reactive actions deal with the

Consequence rather than the Probability of failure

• Corrective actions address threats

that are present but have not caused failure

• Preventative actions must be taken

to remove the threat or consequence

• Need a cost/benefit review before

final response

PIMS

• f London

Business Operating Rhythm

Review Business Goals Set Business Goals

Stakeholders

Define Business Strategy Functional Specification

Integrity Management Process

IMP

Goal Setting

Segment Identify Threats Gather Data

Assess Risk

Prioritise Evaluate Integrity

React Predict Correct Prevent

Respond

Review

Influencers

Review Business Goals

Integrity Management Process

Review

• 7. Review Goal Validity and Strategy

Effectiveness

Reconciliation of the Integrity Management Process with the Goals and Strategies set out by the Management team of the Business

PIMS

• f London

Business Operating Rhythm

Review Business Goals Set Business Goals

Stakeholders

Define Business Strategy Functional Specification

Integrity Management Process

IMP

Goal Setting

Segment Identify Threats Gather Data

Assess Risk

Prioritise Evaluate Integrity

React Predict Correct Prevent

Respond

Review

Influencers

Review Business Goals

Integrity Management Process

Review

Did you do what you said you were going to do?

• Were all of the Goals rolled out to individual actions and tactics?
• Were the actions executed?
• Examines the effectiveness of communication and leadership.

Was what you said you were going to do effective in achieving your Goals?

Examines the effectiveness of translating Goals into Strategies & their roll-out. Evaluates whether the influencers requirements were properly evaluated. Evaluates whether operational issues are correctly appreciated at a higher Level.

• 7. Review Goal Validity and Strategy Effectiveness

PIMS

• f London

Business Operating Rhythm

Review Business Goals Set Business Goals

Stakeholders

Define Business Strategy Functional Specification

Integrity Management Process

IMP

Goal Setting

Segment Identify Threats Gather Data

Assess Risk

Prioritise Evaluate Integrity

React Predict Correct Prevent

Respond

Review

Influencers Integrity Management Process

IMP

Review

• 8. Conclusions

Highlighting the importance of aligning the Integrity Management Plan Goals to the Overall Business Goals

PIMS

• f London

Business Operating Rhythm

Review Business Goals Set Business Goals

Stakeholders

Define Business Strategy Functional Specification

Integrity Management Process

IMP

Goal Setting

Segment Identify Threats Gather Data

Assess Risk

Prioritise Evaluate Integrity

React Predict Correct Prevent

Respond

Review

Influencers Integrity Management Process

IMP

Review

Goals are critical in determining business direction These Goals must be translated into Business Strategy Translation of the Business Strategy into the Functional Specification ensures that Integrity is a fundamental part of the Business Cycle An IMP must be executed as a means of ensuring Pipeline Health Regulatory Compliance becomes a by-product achieved through having an Effective Process The successful combination of People and Process helps “you do what you said you were going to do”

• 8. Conclusions