Building organization for Enhanced Growth

Its time to put some more skin in the game. In my post  Building Synergi in Oil & Gas Industry”, I briefly highlighted about need for organization to focus on Enhanced Growth with totally new Strategy and Tactics. I would like to re-quote few line from this post published in 2014.

“There is a need for creating partnership, shared value between the Operator, Contractor and Suppliers. After the project gets awarded all parties should come together to form a conglomerate for efficient execution of project. The focus should be sharing knowledge, innovation and reducing the cost by opening up their cost structure to take the inefficiency and wastage out of it without compromising their profitability and in long run building up the cost structure for future projects.”

Since then Oil & Gas market became more challenging with Oil Price going as low as USD30 in 2016. At the same time, as expected, we have seen many M&Es, Liquidations, Job losses etc. as an effort for consolidation of this industry. With current Oil price nearing USD60.0, which is nearly 50% of 2011 price, it is forecasted to reach only USD80.0 by 2020. Which is not very promising. I would like to re-quote my proposed approach from the earlier post which I will be elaborating in this post.

“Now, with changing operating environment, there is need for service provider offering new value addition of Enhanced Growth (concept from Goldratt Consultancy). Service providers need to build up their competitive edge by offering Bonus Deals and Rapid Project Completion.”

Bonus Deals includes Shaping Bonus market, Bonus Offer Design, Value Modelling, Shaping the Bonus sales execution. The right Culture, Strategy and Tactics is required to be kept Inplace for effective implementation. System should be kept inplace to capture learning and continuous improvement. (POOGI by Goldratt Consultancy – Follow Red)

During the implementation of the first phase selling the reliability offer,the Company’s professionals examine each opportunity to check (without giving the offer!) the value of early completion.The parameters impacting the value and the projects categories where early completion is of high value are defined. In many cases, the projects where early completion has high value are representative of a group of projects. The Company has a detailed, early-completion offer that guarantees exceptional benefits to its clients while ensuring that the Company is not taking any real risk. For the various environments of the prospected projects, the sales force should be able to convince the client of the quantifiable value of early completion.

The cause for delays should always be reported, the software should be used to generate the Pareto analysis, and suitable improvement programs are set accordingly.

Required Culture:

1. Count the success – using more right thing minimize the use if wrong things- focus more on green than yellow or red,
2. Create Diverse group as they are more innovative.
3. Please check if people have required tools, feedback to make them realize even if they are not fit and most important is check what happens when you are not there.
4. Road runner strategy – Employee should not worry about losing their job when they are idle so that they can work on some constructive/innovative work. On the other hand during execution they should not waste time and give their 110% on project.
5. Quality – Doing it right when nobody is watching you – Henry Ford
6. Purpose, collaboration, sustainability, character – put your need after organizational need and take responsibility are some of the key professional behaviors required to achieve required call of current time – Enhanced Growth.

Some of my views and ideas highlighted in my earlier posts will certainly play a part in achieving the Enhanced growth.

Good Luck