Identifying Opportunities for Operational Excellence

The competitive dynamics of the global petrochemical industry—the chemical industry’s largest subsector—are changing. To make the right strategic decisions, companies must understand the industry’s shifting dynamics, as well as overall trends in demand growth and sources of cost advantage. We 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 translated into action.

We support oil and gas companies with technology strategy and procurement; advise services and equipment providers on strategy and operations; and counsel principal investors on strategy, commercial due diligence, and portfolio value creation.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.

Cross-functional integration. A clear distinction between an average and a world-class operator is the extent to which the value-delivering processes are coordinated. Especially in functional or matrix-type organizational models, management needs to ensure that planning and scheduling encompass all functional activities. For example, ensuring that facilities and subsurface activities take place simultaneously minimizes the length of shutdowns. Management also needs to ensure that performance-management metrics match across functions. For example, operators and petroleum engineers should both be responsible for water injection targets, to maximize production volumes.

Capability building. When getting the organization to adopt new ways of working, it is not sufficient to distribute a handbook with best-practice processes. The entire organization must upgrade its skills, and adults learn best by doing. Therefore, capability building is critical to the success of any attempt to transform operational performance. Action learning methods should be used to infuse new ways of working in everyone’s daily job. 

Leadership mind-set. Senior managers at world-class operators focus on operational performance and know what success looks like. They have clear performance expectations for both leading and lagging indicators, such as mean time between equipment failures and well test compliance. Reporting lines are clear at all levels and across functions. Targets cascade down all the way to the front line, and regular reviews ensure that everyone holds the proper performance dialogues, with the purpose of closing any performance gaps.

Business Technology Solutions

To help clients reduce exploration and production development costs and raise productivity in their upstream and downstream businesses, we offer state-of-the-art expertise in technology enablement, customer value management, and automation, asset utilization, and productivity management. We work with companies to optimize IT strategy and performance, create value from business and IT transformations, ensure the successful delivery of projects, and implement best practices in global business shared services. 

We help energy conglomerates mitigate and manage commercial, operational, and political risk, and enhance their performance in enterprise risk management and risk-based investments. We have developed proprietary tools and frameworks to diagnose risk, design best-in-class enterprise portfolio management systems and processes, assess risk culture, evaluate risk oversight, identify cash flow at risk, and analyze opportunity cost.

In addition to providing strategic advice and hands-on support with implementation, we are committed to building clients' capabilities at all levels of an organization to ensure long-term success. To help senior executives with their development, we offer focused learning opportunities through our Change Leaders Forum, our Organizational Design Executive Forum and our Executive Transitions Master class.

 

Related Practices

We help oil and gas companies craft strategies to pursue growth and create value in an uncertain and volatile environment.

Mr. David Solomon

Mr. David Solomon

Functional Excellence

We have regional leaders all over the world with a deep understanding of their local competitive and physical context, as well as an extensive global network of consultants, experts, and external advisors.

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