Global Oil Field Services Organization Alignment

A large multinational Oil Field Services was driven by market place and competitive pressures, internal competition for resources and the potential for market growth opportunities. Jim Crenshaw, a leader with vision, experience and the right values was selected to design and achieve achieved organization alignment

SITUATION

  • A large multinational Oil Field Services was segmented across nine separate business units under the parent holding company.
  • Market place and competitive pressures in the industry demanded that the company find cost efficiencies, and increase its value delivery to the global client base.
  • Internal competition for resources between the nine businesses was sub-optimizing the company‚Äôs market position, financial results and customer relations. Shareholder pressure was building. It was time to shape up and eliminate the entrenched fiefdoms.
  • The potential for market growth opportunities, coupled with cost efficiency savings, was a major driver to consider reorganization and taking steps to change the companies autocratic culture

OBSTACLES AND OPPORTUNITY

  • With a broad portfolio of products and services this global player was facing a daunting task to break the old paradigms and create a blended organizational structure.
  • The current management teams were resistant to change and reorganization
  • Due to lack of training and skepticism, the employee base was ill-prepared to take on the new scope of responsibilities. The level of trepidation across the 50,000 plus work force was paralyzing the organization.
  • Blending nine company structures into one meant changing leadership philosophy, company cultures, benefits, job descriptions and responsibilities.
  • The opportunity to create cost efficiencies and bring multiple services to the market place packaged in a single offering, managed by one team, was embraced by the global client base.
  • With changes in place to create value-added partnerships, the client relationship greatly improved, opening many new opportunities.

ACTION

  • The company leadership brought in a respected consulting group and began to lay the foundation for the global reorganization.
  • The decision made to turn the Parent holding company into an operating company became the basis for consolidating the 9 companies into a single global entity.
  • Jim Crenshaw was tasked to manage the 30 process teams assembled from across the globe, who were then sequestered off site for 4 months. Jim had spent the previous 2 years designing programs and implementing a crucial business strategy that included Quality Management and process re-engineering.
  • Each team was focused on an element of the business from either a geographic, core product, or support function perspective.
    • Methodology and objectives were set for each team to ensure coordination up to the enterprise level.
  • By working with each of the assigned team leaders and facilitators and coordinating with the senior management and advisors we developed
    • the organizational structure
    • processes for core activities & support functions
    • job competencies and descriptions
    • list of hire criteria.
  • Cultural tenants were clarified and a communication plan was developed.
  • After four months of behind the scenes work, the teams dispersed globally to interview, staff, and create the new global organization over a 30-day period.
    • Operating principals and processes were communicated in training sessions globally.
  • The initial roll out was successful, and cost efficiency targets of over $1.3billion were achieved in the first year alone. However, the management and leadership still lacked the necessary skills to blend the diverse employee base into a cohesive team.
  • Jim Crenshaw was part of the company team that researched and found a management and training philosophy developed by HRDQ and OLS that allowed the transformation to begin.
    • The initial program was aimed at developing managers into leaders that could empower the human capital, develop a sustainable client focused culture and bring true teamwork and dynamics to the organization and client relationships.
  • Jim led the pilot training across all Latin American countries addressing the leadership challenges, team and organizational dynamics, and creation of a customer focused sustainable culture.

Programs were developed and training delivered in partnership with key clients, creating positive impact on the relationship from a commercial and professional perspective.


RESULT

  • Based on the initial pilot training in Latin America, the company saw an increase in business levels, profitability, major project wins, better service quality delivery, and a sharp reduction in employee turnover.
  • Management and employee feedback was overwhelmingly positive that the skills taught had dramatic improvements on the work place and laid the foundation for true management and leadership development.
  • The program was then extended globally and is still utilized to this day. Most of the tools and techniques used in this global transformation are incorporated into the Waterfall tool box.

Employee empowerment, leadership development, global efficiencies in operations, cost controls, asset utilization, and global responsiveness saw dramatic improvements, and laid the foundations for successful M&A integrations as well as strong financial results through several cyclical downturns.

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