The organization must respond effectively
With respect to addressing greenhouse gases and the impact on upstream operations, the organization presents both the answer and the greatest source of concern relative to addressing the HSE agenda.
The vast majority of performance issues can be directly traced to the organization. Attitudes, beliefs and behaviors of leaders, groups of employees, suppliers and customers all create the conditions that most directly affect performance.
Competitive failure is the most obvious example to illustrate organization dysfunction. Therefore, moving beyond average or mediocre performance is the typical challenge for most oil & gas companies.
MTG’s point-of-view relative to organization effectiveness and operations excellence:
- Organizations are social and political. If leaders and employees were always capable of rational decision-making, perhaps operations excellence would be easier to achieve. Unfortunately, most corporations do not formulate and execute operations strategies on a purely rational basis.
- There is no single tool or silver bullet that can fix the dysfunctional organization. For the mid-pack organization (with regard to competition), the solution to improving organization performance involves the ability to identify root causes, mobilize leadership and the organization for change, design the nature of the required change program and then implement the changes in a way that real and lasting benefits are achieved.
- Competitive failure (falling short of expectations) is, more often than not, self-induced due to poor leadership coupled with the lack of effective and clearly articulated strategy and the inability to effectively execute operations strategy.
- It is the duty of executive leadership to ensure that operations excellence is achieved and sustained. It can’t be delegated to surrogates.
