Offshore and Deepwater
To thrive in an uncertain and volatile environment, successful businesses treat strategy development as a dynamic process. They analyze a constant stream of information from markets, experts, and the front line, use it to build an integrated perspective of their industry, and then drill down into the data to develop granular insights that can be swiftly translated into action. As a leading adviser to the oil and gas industry, we are uniquely well placed to help companies with complex strategic challenges. The following three areas represent our top priorities.
Focus on workforce development and talent management. The industry must assure a sufficient supply of qualified recruits to meet its growing requirements. Companies should assess how many people they will need at all levels, and with what skills, as the industry expands. They should then liaise with education providers—governments and training institutions—to ensure the provision of vocational training that will create the skilled manpower needed.
Here, industry can play an important role in defining the standards of occupational skills for apprentices, on which technical- and vocational-training providers can base their programs. In some countries, such as Saudi Arabia, progress has already been made in piloting such initiatives, but programs will have to be scaled quickly to prevent a talent shortage from blocking growth. In addition, larger companies should expand their own on-the-job training curricula for fresh graduates. In time, this will generate a cadre of skilled employees.
Build management and technical capabilities. Most Middle East petrochemical companies do not have world-class organizational and continuous-performance-improvement capabilities. Internal capability-building initiatives and functional-excellence programs can help to move them to the top rank.
There are a number of proven approaches that companies can embrace. These include programs based on adult-learning principles that combine conceptual training with on-the-job learning and the creation of continuous-improvement training teams to enable a company to constantly upgrade its capabilities.
In addition, a number of successful companies have invested in corporate academies to help build up a cadre of management trainees. Such academies often include the use of model factories, where management trainees along with all company employees—from top managers to plant operators—can learn better ways to operate based on experience.
Develop new models for growth partnerships. As noted, most Middle East companies have formed close partnerships with Western players; some of these partnerships aim not only to develop and execute joint projects in the region but also to transfer capabilities. Employee exchange and secondment programs, consulting agreements, and knowledge transfer on functional-excellence topics are all a part of the mix. We have observed that cultural differences and a lack of defined common objectives can handicap such initiatives, but if the transference of skills can be made an explicit part of the partnership agreement, these initiatives can be successful.
We help clients reassess the logic for allocating capital expenditure (capex) throughout the business and redesign planning and budgeting processes to link project funding to corporate strategy and value-creation potential. On mega projects worth $1 billion or more, we help clients minimize risks to the balance sheet and boost net present value by up to 25 percent by improving project concept and setup. On small- and medium-size projects, we help create business cases, optimize concepts and designs, and streamline construction—delivering typical savings of 10 to 30 percent of the addressable budget.
How can we help you?
We invest heavily in developing proprietary tools, databases, and methods to help clients analyze and compare their performance and build capabilities quickly.