Management: 9 Things To Always Include In Our Oil & Gas Operations!
Oil & Gas Operations.
As we conduct operations in various locations within different streams of the Oil & Gas Industry, at some point in time we all must undergo the balancing challenge to manage the 4 Ps of People, Processes, Plants and Performances. Sometimes the operations can be laminar, other times it can be transitional, and then off course the capability-testing times of turbulent operations. Similar expectations and observances are encountered in different operations of:
Geophysical Surveying | Drilling | Cementing | Completions | Well Intervention | Production | Pipe-Laying | Bunkering | Catering | Refining | Processing | Transporting.
Some of the standards elements involved in these Oil & Gas operations include but are not limited to:
Metrics and Reporting | Budget Management | Regulatory Compliance | Social Responsibility | Plant Optimization | Technology | Project Management | Inspection and Maintenance | Procedures and Practices | Control of Work | Risk Assessment and Management | Process Safety | People and Competence | Organizational Learning | Planning and Controls | Communication and Engagement.
#1: 10 OM Decisions.
We all know that Operations Management has different ‘hats’ of responsibilities and decision-making. I admit, in reality this multi-faceted role can be fun, fulfilling and challenging all at the same time. For instance, there are 10 typical decisions also known as the 10 Critical decisions of Operations Management:
(1)Design of Goods and Services | (2)Managing Quality | (3)Process and Capacity Design | (4)Location Strategy | (5)Layout Strategy | (6)Human Resources and Job Design | (7)Supply-Chain Management | (8)Inventory | (9)Scheduling | (10)Maintenance.
#2: 5S.
Sort, Straighten, Shine, Standardize and Sustain. This is simple but still profound because it can literally be applied to everything we do in life personally, publicly and professionally. In Oil & Gas operations housekeeping is very important, and 5S can easily be applied to scenarios such as Inventory storage areas, Offices and even the Drill deck. Major Oil & Gas Operators, for example BP, has incorporated 5S into their operations.
#3: M2R2.
I mentioned this before in my 2nd Article titled “Leadership – 6 Reality Checks To Use!”. M2R2 is often used when focusing on Performance Management and Measurement. In fact, I am not sure if this is an official technique, but I picked it up from performance management training; it may have been a technique the trainer developed throughout their career. It means Measure, Monitor, Reinforce and Reward. The reality is that the elements are true, and personally I have found it to be very useful in agile situations in this time-constrained and dynamic industry.
#4: 5-Step Ladder.
This can be applied to different systems; it is often applied to Safety cultures. The behaviours start at the bottom of the ladder with Pathological, then goes up to Reactive, then Calculative, then Proactive and finally at the top of the ladder with Generative. 3 things increase as the ladder is ascended: (1) Information shared and received, (2) Trust and (3) Accountability. The ultimate aim is to have a Generative culture. Examples of the statements for each step are:
Pathological = “who cares, that is not my job”
Reactive = “we will fix it when it gets defective”
Calculative = “there are reliable systems to mitigate any risks”
Proactive = “my continuous improvement project will save costs in the long-run”
Generative = “we expect, encourage and reward safety at this facility”
#5: Charter.
An integral part of forming and performing within teams is knowing, understanding, agreeing and establishing the directions, obstacles and boundaries that may be encountered. That’s why a ‘Team Charter’ document should always be relevant. Typically, properly established organisations should already have a ‘guidance on practice’ or ‘defined practice’ of operations, which the team can follow or at least structure their operations in alignment with the company’s structure. Some of the basic elements are as follows:
Team Vision | Team Mission | Core Values | Team Norms and Behaviours | How We Make Decisions | How We Define Roles and Responsibilities | Our Constraints | How We Will Ensure Responsibility for Commitments | How We Will Arrange Meetings | How We Will Handle Conflicts | Rewards and Sanctions.
#6: Theory X & Y.
This deals with how managers view their subordinates, and off course subsequently the applicable management style will be used to handle their teams to accomplish the organization’s objectives and deliverables. ‘Mindtools.com’ has a relatively good basic description.
Theory X managers view workers as:
“Dislike their work | Avoid responsibility and need constant direction | Have to be controlled, forced and threatened to deliver work | Need to be supervised at every step | Have no incentive to work or ambition, and therefore need to be enticed by rewards to achieve goals.”
Theory Y managers view workers as:
“Happy to work on their own initiative | More involved in decision making | Self-motivated to complete their tasks | Enjoy taking ownership of their work | Seek and accept responsibility, and need little direction | View work as fulfilling and challenging | Solve problems creatively and imaginatively.”
#7: Structure.
Yes, Organisational Structure is clearly valuable to implement, even though in some companies the structure may be distorted resulting from lack of strong leadership, merging of companies from an acquisition, or employee retention / turnover issues. However, my focus on organisational structure is in terms of the ‘Pros & Cons’ of the respective structure types which has been selected by the company or department. It is vital to know and understand the type of structure adopted, to facilitate the efficiency and effectiveness of our teams, whilst dividing teams and tasks as applicable. The structures can be:
Simple | Functional | Divisional | Matrix | Team-Based | Boundaryless.
#8: Culture.
The focus here is also on the ‘Pros & Cons’ of the respective culture types which has been selected by the company or department, or which have emanated and its existence is intentionally or unintentionally permitted to continue. Organisational culture can sometimes be misinterpreted. Basically, it functions to generate commitment, provide a sense of identity, define boundaries, enhance social stability and serve as a control mechanism. As observed in the Ice-berg effect, the vast amount of unseen activity and psychological contracts can make or break the organisation or team. The cultures can be:
Dominant Culture | Subculture | Counterculture | Constructive | Passive-Defensive | Aggressive-Defensive.
#9: Labels – Management vs Political.
Behavioural norms according workplace culture or simply being comedic, can sometimes hinder progress towards developing the right behavioural traits that the organisation requires; perspectives makes a significant impact. Part of the leadership role and management role is to set the right attitudes and behaviours for the work environment, whilst being aware of the labels that are expressed and sensed.
Certainly, the Oil & Gas industry must use more than these “9 Things” for it to be safe, efficient and reliable. My purpose in this article is to briefly highlight, reinforce and rejuvenate some of the valuable knowledge and tools within this industry, for us to continue striving towards the successful provision of Energy for our blessed Society.
a. Become Your Hero!
b. Overcome Your Horrors!
c. Welcome Your Happiness!
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