33
Intelligent Digital Oil Field Implementation: A Case Study of Change Management Strategies to Ensure Success Copyright 2013, Society of Petroleum Engineers This paper was prepared for presentation at the SPE Middle East Intelligent Energy Conference and Exhibiiton held in Dubai, UAE, 28–30 October 2013. This paper was selected for presentation by an SPE program committee following review of information contained in an abstract submitted by the author(s). Contents of the paper have not been reviewed by the Society of Petroleum Engineers and are subject to correction by the author(s). The material does not necessarily reflect any position of the Society of Petroleum Engineers, its officers, or members. Electronic reproduction, distribution, or storage of any part of this paper without the written consent of the Society of Petroleum Engineers is prohibited. Permission to reproduce in print is restricted to an abstract of not more than 300 words; illustrations may not be copied. The abstract must contain conspicuous acknowledgment of SPE copyright. Ahmad Al-Jasmi and Harish K. Goel, Kuwait Oil Company; and Soraya Sirikit Cerda, Kevin Barry, Guillermo Velasquez and Steven Knabe, Halliburton SPE 167395

Kb spe paper 167395 final draft in pdf 07092013

  • Upload
    5619

  • View
    221

  • Download
    1

Embed Size (px)

Citation preview

Page 1: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

1

Intelligent Digital Oil Field Implementation:A Case Study of Change Management Strategies to Ensure Success

Copyright 2013, Society of Petroleum Engineers This paper was prepared for presentation at the SPE Middle East Intelligent Energy Conference and Exhibiiton held in Dubai, UAE, 28–30 October 2013. This paper was selected for presentation by an SPE program committee following review of information contained in an abstract submitted by the author(s). Contents of the paper have not been reviewed by the Society of Petroleum Engineers and are subject to correction by the author(s). The material does not necessarily reflect any position of the Society of Petroleum Engineers, its officers, or members. Electronic reproduction, distribution, or storage of any part of this paper without the written consent of the Society of Petroleum Engineers is prohibited. Permission to reproduce in print is restricted to an abstract of not more than 300 words; illustrations may not be copied. The abstract must contain conspicuous acknowledgment of SPE copyright.

Ahmad Al-Jasmi and Harish K. Goel, Kuwait Oil Company; and Soraya Sirikit Cerda,Kevin Barry, Guillermo Velasquez and Steven Knabe, Halliburton

SPE 167395

Page 2: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

2

Abstract1Vision2

WIIFM Factors6Culture5

Change Management/People Side3Understanding the Change Position4

Process (Road Map)7

Conclusions/Lessons Learned9Success is a Journey8

Discussions and Appendices10

SPE 167395

Page 3: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

3

Abstract

1

SPE 167395

Abstract ChangeManagement

Culture SuccessVision Understanding the change

ProcessWIIFMFactors

Conclussions Discussions/Appendices

Page 4: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

4

The successful implementation of a world-leading Intelligent Digital Oil Field (IDOF) with a National Oil Company required extremely careful and innovative management of the large-scale change which arose from the project. In particular, the ‘People Side’ of that Change Management was to play a key role in embedding the project in the NOC orgainsation and in turn making the multi-million US dollar project a success. This paper begins by outlining the NOC expectations and describes the steps and processes taken to initiate and mobilize the ‘People Side’ of change in the IDOF project, and also does cover the Change Management challenges used before the People Side focused strategy was deemed to be the way forward. Using a simple ‘People Side’ focused change methodology not only ensured that the project was successful in terms of revenue over capital expenditure (ROCE), but also began the process of ownership and eased the adoption of the IDOF into the current NOC organization. The Change Management methodology described in this paper was designed to cover and mitigate important challenges that are relevant in driving the people side of change, particularly: WIIFM – “What’s in it for me” scenarios Culture - The way things are done around here Success - Collaboration,Technology Leap Frogging, People, Oil Gains

The paper concludes by updating main successes, key lessons learned, observations and progress made against the clearly defined NOC expectations. Finally, this document is presented in a simplified, succinct and visual friendly format, letting words and simple pictures tell the success story.

Leo Tolstoy

Everyone thinks of changing the world, but no one thinks of changing himself.

“ “Abstract

Page 5: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

5

Vision

2

The NOC’s expectations and objectives

SPE 167395

Abstract ChangeManagement

Culture SuccessVision Understanding the change

ProcessWIIFMFactors

Conclussions Discussions/Appendices

Page 6: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

6

Vision

SPE 167395

IDOF is much more than optimisation. It’s a new paradigm, our NOC’s passage to a brighter future. IDOF will put our NOC and our people in the frontline of the oil and gas industry.“ “

The IDOF project was born as a visionary state of the art prototype pilot for the NOC. From the outset of the project, expectations were set at a very high level – both, in terms of the technology that was envisioned to be used for Oil Production Optimization and the calibre of people involved in the IDOF.

This IDOF is seen as technological game changer, one of the NOC’s most strategically important projects in terms of optimizing oil production. In the IDOF state of the art collaborative work environment (CWE), a suit of advanced Smartflow Workflows provide smart functionalities coupling geological and reservoir subsurface models with production operation workflows. The workflows monitor real-time data to improve well performance, reduce well downtime, and increase field performance. The NOC executives and the Research and Technology (R&T) leadership were clear in their vision and aspirations, that they wanted this project to lead, not only the oil & gas GCC countries in the field of IDOF concepts and technology. But also to position the NOC as the preeminent world leader in IDOF technology The combination of a clear vision, high expectation whilst working in partnership with a major oil service organization, attracted immediately the best technology talent in the field of IDOF to the NOC, furthering enhanced the reputation of the project.

The internal design concepts for the new collaboration center were also fully maximized to match the NOC’s expectations. This helped to deliver one of the most spectacular and comfortable workplaces within the oil and gas sector.

Page 7: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

7

SPE 167395

Abstract

Change Management /People Side

3

SPE 167395

Abstract ChangeManagement

Culture SuccessVision Understanding the change

ProcessWIIFMFactors

Conclussions Discussions/Appendices

Page 8: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

8

Change Management

Change Management is the organizational process which leads individuals, teams or organizations from a current state to a desired future state.

The chart below shows clearly the gaps that can exist in the mindset and therefore the behaviours of the people. It is clear that forming the bridge is paramount.

What is it?

From the very beginning of the IDOF project the NOC leadership were clear in their vision that the Project and the ‘People Side’ Change Management process were to be parallel activities

The NOC R&T leadership also saw the change process as the bridge between solutions and results, and was indeed a fundamentally important process about people and their collective role of transforming change into sustainable successful project outcomes.

Commitment level

HighLow

The Bridge -Change Management

Time period

Satisfaction“Iʼm happy as

I am”

Resistance“I donʼt

want this”

Exploration“Could this

work for me?”

Denial“This doesnʼt apply to me”

Hope“I can see

how this can work for me”

Commitment“This works for me and my team”

Change Management provides a framework to enable the ‘People Side’ of change.“

Page 9: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

9

Change Management

There are numerous studies that demonstrate the correlation between effective change management and meeting project objectives. McKinsey study 2002 (LaClair and Rao1) results show that projects that effectively managed change realized well over 100% of the ROI, while projects that did not effectively manage change saw ROI at less than 50% of what was expected. Appendix 1 (McKinsey Quarterly article “Helping Employees Embrace Change” by LaClair and Rao.)

Prosci Change Report 2012 shows clearly the challenges that do exist to making any change successful; they talk in detail that senior executive leadership support is the No1 Success Factor of any Change Process.

The missing piece of the equation above is ‘change management’.Managing the ‘People Side’ of change is key to meeting project objectives and delivering the NOC’S expectations and vision.

Popular myth:A Great Solution

EffectiveProject

Management

Project Success

What really happens:

Meeting project’s objectives and Effective Change Management

Meeting or exceeding project’s objectives

Partially meeting or failing to meet project’s objectives

A Great Solution

EffectiveProject

Management

Change Management

Project Success

Very effective/Extremely effective

Moderately effective Very ineffective/ineffective

Page 10: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

10

Understanding the ChangePosition

4

SPE 167395

Abstract ChangeManagement

Culture SuccessVision Understanding the change

ProcessWIIFMFactors

Conclussions Discussions/Appendices

Page 11: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

11

Understanding the Change PositionTo understand the current ‘people side’ change positioning of the IDOF project, a ‘Heat Mapping’ evaluation process was developed to capture in a more conscious and systematic form the change positioning of key people involved in the project, and by using and updating regularly these simple visual parameters, the change position can be understood at any given time.

The inputs into the heat map cover: Vision and understanding the of the visions and the change, Culture – “ The Way we do things around here” WIIFM – “ Whats in it for me “ The ‘Heat Map’ when complete then sets the stage for developing the practical individual people focused strategies to be used in managing the “People Side” of change within the project.

Begins with five basic questions

Three simple steps...

To what extent are they

applying their influence in the change process?

What is their power / change influence in the organisation?

How easily can their opinion/influence be changed?

Who are the key players?

What significant relationships

exist among the key players?

Seeking the critical information

Quantitative Feel for the current change

process position

Mapping the Change Position

Page 12: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

12

Understanding the Change Position

CEOMD

Manager 4TL-2

TL RSTPM

PC4

Tech engineers

Graduates

Influence(within organisation)

Supporting Attitude

HighLowHeat MapAttitudes of key peopleinvolved in the project

CEOMD

Manager 4TL-2

TL RSTPM

PC4

Tech engineers

Graduates

Influence(within organisation)

Kwidf Heat MapAttitudes of key peopleinvolved in the project

Supporting Attitude

HighLow

CEOMD

Manager 4TL-2

TL RSTPM

PC4

Tech engineers

Graduates

Influence(within organisation)

Supporting Attitude

HighLowHeat MapAttitudes of key peopleinvolved in the project

CEOMD

Manager 4TL-2

TL RSTPM

PC4

Tech engineers

Graduates

Influence(within organisation)

Kwidf Heat MapAttitudes of key peopleinvolved in the project

Supporting Attitude

HighLow

By effectively managing the People Side of Change we gradually move from the initial position in the Heat Map to the ultimate goal position, and inturn achieve our overall change objective: people supporting the NOC’s vision and aspirations for the IDOF.

Once all of the outputs from our findings from Cultrure and WIIFM factors are gathered we then create a Heat Map. The Heat Map gives us a current and up to date snapshot of the current ‘People Side’ change position within the project. It also allows the Change Team to focus clearly on People at every level in the organization that require attention or intervention to keep the change moving forward. It should also be understood at this stage that managing the People Side of change at times requires giving indivudals within the change process the time and respect that is necessary to adapt and accept the change, this can involve indepth personal discussion and soul searching by said individuals.

InitialHeat Map(example)

Heat Map Goal (End Position)

You can’t tell the players without a scorecard

“ “

Page 13: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

13

Culture

5

SPE 167395

Abstract ChangeManagement

Culture SuccessVision Understanding the change

ProcessWIIFMFactors

Conclussions Discussions/Appendices

Page 14: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

14

CultureThere are indeed many ways to define both Culture (in the literal sense) and organizational culture.

However in this instance we focus clearly on the ‘People Side’ cultural position.

In essenceOrganizational culture is a key function of the People Side change process, and is also the specific collection of shared values, beliefs, and customary ways of thinking; in other words:

“The way we do things around here”.To begin to understand the cultural and also to help position the People Side change improvement process, a customized ‘People Side’ survey on a one-to-one basis was conducted internally within the NOC.

The study did provide relevant and descriptive insight into the current cultural positioning in relation to the IDOF position.

The ‘People Side’ Cultural study showed great promise, showing that moving the cultural mindset from the Happy as I am position, to the ideal IDOF Collaborative position could be successful, however it should be noted that the Change message required continuous reinforcement at every opportunity.

Collaborative Culture

Other Cultures

90

80

70

60

50

40

30

20

10

0

90

80

70

60

50

40

30

20

10

0

90

80

70

60

50

40

30

20

10

0

Collaborative Style(IDOF Ideal Vision)

Highly Motivated collaborative team players, ambitious,change

drivers.

Progressive Thinking

Willing to Change, want to see progress, personal goals are the

priority, (WIIFM)

Passive Thinking

‘I’m Happy as I am thankyou’

Page 15: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

15

WIIFMFactors

6

SPE 167395

Abstract ChangeManagement

Culture SuccessVision Understanding the change

ProcessWIIFMFactors

Conclussions Discussions/Appendices

Page 16: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

16

WIIFM FactorsIn the workplace managers can develop new procedures, tools and organizational structures, purchase new technology.

• However they cannot force their employees to support and engage in these changes, individuals will assess the nature of the change on a variety of levels that will include:

Individuals will assess the nature of the change on a variety of levels that will include:

SO

“What’s in it for me?”

What is the change ?

How will the change impact me ?

Page 17: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

17

WIIFM Factors

PersonalSituation

Organisational context and

history

Desire to support and participate in

the CHANGE

History of the change

andWIIFM

IntrinsicMotivators

By managing effectively the People Side of Change we satisfy the individuals WIIFM and also align the overall People Side of change with the NOC expectations, vision and aspirations. This framework is represented in a Road Map, which puts in place a methodology around the ‘People Side’ of the change process: It covers the high level activities, but does not cover a lot of the intangibles that occur daily.

Once the individuals understand the WIIFM, they make a positioning decision in their minds regarding the project and what it means for them:

1. Individuals determine if the change represents an opportunity or threat 2. And assess if the change will be fairly deployed with other individuals or groups.3. If at this time they see inequality between groups, this alone can provide an excuse to resist and oppose change!

Understanding clearly the relevant factors that influence the individuals desire to change is the first important step in the ‘People Side’ of Change.

If I understand the need for change and I am willing to change, can I expect that the change will happen?“ “

Page 18: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

18

Process(Road Map)

7

SPE 167395

Abstract ChangeManagement

Culture SuccessVision Understanding the change

ProcessWIIFMFactors

Conclussions Discussions/Appendices

Page 19: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

19

Phase IIPhase I Phase III

Action PlanUnderstanding &Engagement

Phase III

Engage all Executive Stakeholders

Engage all Stakeholders

Understand Historical Background and progressmade since project conception

Identify Potential People Side Risks

Conduct Readiness Assessments &Evaluate Results

Create a mechanism to enable processmeasurements and delivery

Positioning of kwIDF with KOC now

Executive Stakeholder Engagement

Identify Potential People Side Risks

Create a Platform for Stakeholder Engagementto promote Transitional Handover Process

Create a mechanism to enable measurement andCelebration of Success

Work with Project teams to integrate change activities into the project plan

Formalize IDOF full time core staff and implementa certified IDOF training program.

Establish Executive Shareholders Support.

Completed

Ongoing

Continous Stakeholder Engagement

ProcessAll Successful Journeys start with planning…We take all the elements we’ve collected and build a framework for our journey.

This forms our ‘Roadmap’

OUR ROADMAP TO SUCCESS

HEAT MAPCULTUREWIIFMVISION

NOWJuly 2013

Page 20: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

20

Success is aJourney

8

SPE 167395

Abstract ChangeManagement

Culture SuccessVision Understanding the change

ProcessWIIFMFactors

Conclussions Discussions/Appendices

Page 21: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

21

Success is a JourneyCelebrating success’s is an important and critical part of any change process and never more so that with the “People Side” focused methodology used in this NOC Idof Pilot Project, so we must in the first chapter in the NOC Project’s evolution celebrating said success, and also clearly articulate this success story ? In the following Success is a Journey pages you will also find People Side success testimonials (in their own words), this shows beyond doubt that the individual focus of “People Side” change is occurring, it is proof indeed that by motivating the People within the change process change happens and makes the project successful:

So to date, what does the success look like?

We also at the same time align the success with the original project vision as below

IDOF is much more than optimisation. It’s a new paradigm, our NOC’s passage to a brighter future. IDOF will put our NOC and our people in the frontline of the oil and gas industry.

““

A multidisciplinary and cross functional group of talented engineers Working in a CWE, pride and ownership in the IDOF (testimonials).

Delivering validated Oil Gains of 2380 mdb within 3 months of workflow commissioning, ROI (Return on Investment) reduced to 0% with the same period.

Completion in 3 years against a Oil & Gas norm of 5-7 years.

Leading the GCC and the eminent world leader in IDOF Technology.

People Side Project Optimize Oil Production

Technology

Page 22: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

22

Success is a Journey

• 49 Wells• Field Instrumentation in place• Workflows developed• Collaboration Centers built• Preparing people for theCollaborative WorkEnvironment

• Collaboration Centerspermanent core Team in place• Collaborative DecisionMaking as a standard• Continuous improvement

• Increasing amount of Wells• Working in a CWE mode• User’s team to familiarize with workflows and to help set the news IDOF business processes

Sabriyah Pilot project

PilotPhase

2010 - 2013 2013 - 2016 2016 - 2020

ExpansionPhase

Operational Phase

What we’re able to achieve in three years, would normally take five.

Page 23: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

23

Success is a Journey“IDOF is much more than optimisation. It’s a new paradigm, a new way of working”.

FDor

]WSWS

ESPContractor

WS

FD

WS

OP

FD

Opportunity

ChangeRequest

ChangeApproved

ChangeApproved

ChangeRequest

ChangeImplemented

Traditional Way

Collaboration Way

A fragmented process.

Decisions take days/weeks

Real Time Decisions

ESP NKCC

FD

WS

OPManage GCʼs

Implementresults

EquipmentManagement

Opportunity Identification

ESP Contractholder

WellOptimization

Decisions made in hours

The IDOF Collaboration Center gives the NOC teams the most advanced digital technology tools to access critical data from the field in real time. In seconds, through automated workflow processes allow and enable complex decisions that affect production to be made quickly, accurately and collaboratively.

Page 24: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

24

Success is a JourneyThe NOC’s expectations were clear and succinct...

… and the Change process is happening NOC Executive “With all the company teams’ contribution (R&T, Fields Development, Well Surveillance, Reservoir Studies, Production Operations, Water Handling, all) the IDOF is a reality.The IDOF new technology is helping to get real time data, and the process to optimize the production has been dramatically reduced. It´s not only the technology, but the people making it possible. We still need Change Management to continue helping us, as it is one of the most difficult tasks, indeed necessary all the way to continue succeeding”. IDOF Champion, Engineer “The IDOF is the next big step to improve, as it will elevate our company among top oil producers worldwide to the next level… the collaborative work environment, tools, workflows and the people of our IDOF is beyond and above ordinary”. Senior Petroleum Engineer “The change created by the Collaboration Center within the IDOF has not only drastically reduced the time from opportunity identification to execution, but also increased the synergy among the core operational teams thus creating a seamless unit.” Petroleum Engineer freshman “The change is noticeable in the Company with the IDOF: the Production Operations engineers from the field now have daily contact with the Field Development and Well Surveillance colleagues, who are working from the city offices. We can now work as a team and video-conferencing really helps to work in a dynamic way together on increasing the production”. Senior Reservoir Engineer and Senior Geologist, after a collaborative meeting “With TH IDOF reviewing the injection patterns for our wells is becoming easier and more frequent. Collaborative meetings are getting better every time. With the workflows and the collaboration center facilities, we can take faster decisions”.

Page 25: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

25

Success is a Journey“The IDOF has put our NOC in the frontline of the Oil and Gas Industry.”

There are numerous studies that demonstrate the correlation between effective change management and meeting project objectives. McKinsey study 2002 (LaClair and Rao1) results show that projects that effectively managed change realized well over 100% of the ROI, while projects that did not effectively manage change saw ROI at less than 50% of what was expected.

The above graphic shows the % of Oil Gains delivered from the pilot project’s scope after the Workflows commissioning and has returned the ROI (return on Investment well before normal Oil and Gas projects of it’s kind.

Sabriyah Oil Gains

Jan 2013

1,500

Feb 2013

1,886

Mar 2013

1,886

Apr 2013

2,328

-80%

-50% -50%

0%Oil Gains

Return on Investment (%)

Page 26: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

26

Conclusions/ Lessons Learned

9Abstract Change

ManagementCulture SuccessVision Understanding

the changeProcessWIIFM

FactorsConclussions Discussions/

Appendices

Page 27: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

27

Conclusions. Lessons Learned So, when Tolstoy stated

“Everyone thinks of changing the world but no one thinks of changing himself”he might not have realized or understood how his words and sentiments would be used in effectively communicating a “People Side” change message some 100 years later.

• We began this paper outlining the NOC Pilot Project expectations, aspirations and Visionary beliefs, we then continue and during the course of the paper show that by effectively managing the “People Side” of change it provides a platform for success, but does not indeed ensure success. • In continuation we show the simple Heat Mapping process and methodology used to identify the gaps within culture, WIIFM factors and “People Side” Change Challenges and show through said process that effective and continuous “People Side” change management as the most critical and important activity for ensuring project success and minimising cultural impact. • We also presented Success is a Journey and share with you the resounding technological and financial success of the pilot phase of the NOC technology project to date.

• The paper in its conclusion also presents a challenge to the NOC leadership executive as they look for continuation of the project success, that to ensure People Side change success, people side change needs to be considered at every part of the process moving forward.

Page 28: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

28

Lessons Learned

Lessons learned• Use NOC executive leadership and senior management to support, promote and communicate the change message and in particular when rewarding and celebrating the success.

• Putting People at the forefront of any change management Process should be given priority at the very beginning of any project.

• Align clearly the People Side change management process with project vision and aspirations at a very early stage to not only ensuring project success but also ensure that people adapt and own the change process.

• Identify upfront the WIIFM (What’s in it For Me) scenarios for the change champions / leaders and also the senior executive and project leadership.

• Understand the cultural change, using “The way we do things around here” adapt the strategy to suit , alignment, adaption rather than enforcing radical and abrupt change.

• Use very simple communication messages and be consistent with said messages, where possible use the people within the change to communicate these messages.

• Celebrate success at every opportunity, especially People Side success and where possible and relevant, reward this success,.

• Management -sponsors support is the key to IDOF survival and further development. Senior executive one-to-one sessions to reinforce progress and visible executive support are crucial.

• Conducting regular interventions when progress is stalled or the understanding is unclear is important to drive the change curve to the positive side.

• The promising results from the pilot stage of this project support the NOC vision of making IDOFs the operational norm for the NOC. A sustainable IDOF strategy needs to be formulated by the NOC to drive forward from the Pilot ensuring that the NOC’s Vision becomes indeed embedded in the NOC Organisation.

Change Management provides a framework for managing the People Side of Change

““

Page 29: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

29

PaperDiscussion

10Abstract Change

ManagementCulture SuccessVision Understanding

the changeProcessWIIFM

FactorsConclussions Discussions/

Appendices

Page 30: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

30

Paper DiscussionThe digital oil field pilot implementation discussed in this paper has been extensively documented in several SPE papers 1, 2, 3, 4, 5, 6, 7 and 8, where various technical aspects were discussed, however this is the one of the few papers related to that particular project that discussed the Change Management aspects and in particular the effect that change has on People or more succinctly the ‘People Side’ change.

Al-Abbasi et al 1, noted that “the ultimate purpose of collaborative IDOF workflows is to provide a more effective working environment for asset teams, allowing better communication and analysis to solve operational and management problems”, this is indeed a Change Management challenge by itself as there are significant aspects that need to be attended to in order to make this a reality.

Dudley, G. et al 9 identified the need to design the collaborative work environment (CWE) with the necessary functionality for the staff not just to be used as occasional meeting rooms. Also, the actual roles of the individuals assigned to the new CWE described their jobs referring to the tools made available to them through these CWEs. In their paper, they also noted the importance of establishing firm sponsorship and vision from the business leadership. This is in fact a common theme in the area of Change Management and this project was not an exception. This sponsorship was well captured in the documentary https://www.landmarksoftware.com/Lists/VideoRepository/Landmark- KwIDF-video.wmv done to demonstrate management support at all levels in the organization.

Bayerl, P.S. 10 identified through a series of interview and observations, eight factors that were considered conclusive for the success of collaborative environment. These factors were divided into two groups, one related to Design and the other related to Process. In the pilot project documented in this paper, the first set; i.e. those related to technology design and implementation, design of the actual physical environment and staffing, those factors were carefully dealt with during the development of the pilot and therefore it is believed that a solid foundation was put in place. On the other side, some of the process factors, are still being developed and will, for many years, continue to be refined and modified as this is organic in nature and these processes must be accommodated to the living organization. The preparation and training component is on-going as there is not an end to the operation of the DOF. However, inclusion of stakeholders (users, supervisors and managers) was something done throughout the entire development process but as the organization evolved and

Page 31: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

31

Paper Discussionmanagement changes were announced, more activities related to inclusion of stakeholders had to be programed and executed.

Mueller, K. 11 described the methodology focused on driving the required behavioral change to achieve the necessary performance. The authors depicted several aspects such as coaching, organizational structure, and support for the ‘digital’ workforce among others that the pilot project documented on this paper also had to go through. The authors claim this is part of a well-structured methodology developed and adopted by a major international oil company (IOC). The authors of the current paper note this methodology may have worked well for the IOC, it may not necessarily fit the needs of a national oil company (NOC), yet the components of the successful program may not be too different. The author, Mueller, K. 11, noted that addressing people – the human factor – and organizational issues must be a leadership top priority in order to achieve sustainable success in a CWE. This has been well acknowledged and understood by the people working on the development and implementation of the DOF in the current paper.

Sankaran, S. 12, documented the ‘organization’ aspects from several documented case studies. They noted that the development team resources are re-assigned or re-located at the end of the development and therefore there is a need to appoint internal champions during the development period who will remain in the operation of the project once the development is completed. This practice was indeed adopted by the current DOF without much success as the champions either were re-assigned due to company re-structuring or they left the organization to pursue other professional opportunities.

References1. Al-Abbasi, A., Al-Jasmi, A., Goel, H.K., Nasr, H. (Kuwait Oil Company) and Cullick, A., Rodriguez, J.A., Carvajal, G.A., Velasquez, G. and Bravo, C. (Halliburton) 2013. New Generation of Petroleum Workflow Automation: Philosophy and Practice. Paper SPE 163812-MS presented at the SPE Digital Energy Conference, The Woodlands, Texas, 05-07 March.

2. Al-Jasmi, A., Goel, H.K., Al-Abbasi, A., Nasr, H. (Kuwait Oil

Page 32: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

32

Paper DiscussionCompany), and Velasquez, G., Carvajal, G., Cullick, A. and Rodriguez, J. (Halliburton) 2013. Maximizing the Value of Real-Time Operations for Diagnostic and Optimization at the Right Time. Paper SPE 163696 presented at the SPE Digital Energy Conference, The Woodland, Texas, 05-07 March.

3. Al-Jasmi, A., Al-Abbasi, A., Nasr, H. (Kuwait Oil Company), and Carvajal, G., Johnson, D., Velasquez, G., Cullick, A., Moricca, G., Rodriguez, J., and Villamizar, M. 2013. A Surveillance Smartflow for Intelligent Digital Production Operations. Paper SPE 163697 presented at the SPE Digital Energy Conference, The Woodland, Texas, 05-07 March.

4. Al-Jasmi, A., Al-Zaabi, H., Goel, H.K. (Kuwait Oil Company), and Lopez, C., Carvajal, G., Vanish, D., Querales, M., Yong, Y., Rodriguez, J., Velasquez, G., Villamizar, M., and Mahajan, A. 2013. A Real-time Automated Workflow to Prioritize, Validate and Model Production Well Testing. Paper SPE 163813 presented at the SPE Digital Energy Conference, The Woodland, Texas, 05-07 March.

5. Al-Jasmi, A., Nasr, H. and Goel, H. K. (Kuwait Oil Company) and Moricca, G., Carvajal, G.A., Dhar, J., Querales, M., Villamizar, M.A., Cullick, A.S., Rodriguez, J.A., Velasquez, G., Yong, Z., Bermudez, F. and Kain, J. (Halliburton) 2013. ESP Smartflow that Integrates Quality and Control Data for Diagnostic and Optimization in Real Time. Paper SPE 163809 presented at the SPE Digital Energy Conference, The Woodland, Texas, 05-07 March.

6. Al-Jasmi, A., Nasr, H. (Kuwait Oil Company) and Carvajal, G., Cullick, A.S., Vanish, D., Wang, F., Velasquez, G., Villamizar, M., Md-Adnan, F., Betancourt, D., and Urrutia, K. (Halliburton) 2013. Enabling Numerical Simulation and Real-Time Production Data to Monitor Water-Flooding Indicators. Paper SPE 163811 presented at the SPE Digital Energy Conference, The Woodland, Texas. 05-07 March

7. Al-Jasmi, A., Al-Abbasi, (KOC), Villamizar, M., Vellanki, R., Cullick A.S.., Narasimha, R., Carvajal, G., and Rodriguez, J. (Halliburton) 2013. An Automated Workflow for Tracking and Assigning Operational Accountabilities in Real Time. SPE 163810. SPE Digital Energy Conference. The Woodland, Texas, 05-07 March.8. A. Al-Jasmi and H. K. Goel, Kuwait Oil Company; M. Querales, C. Lopez*, G.A. Carvajal, G. Moricca, R. Vellanki, M. Villamizar, J.A. Rodriguez, G. Velasquez and Z. Yong (Halliburton* Now with Hess Corporation) 2013. Gas Lift Smart Flow Integrates Quality and Control Data for Diagnostic and Optimization in Real Time. SPE

Page 33: Kb    spe paper 167395 final draft in pdf 07092013

SPE 167395

33

Paper Discussion165014-MS. SPE Artificial Lift Conference – Americas. Cartagena, Colombia, 21 – 23 May.

9. Dudley, G., Perry, J., Goodwin, S., Critchley, C., Hocking, P., Shahly, M., Barkved, O.I., and Saul, D. (BP) 2006. The Challenges of Implementing at Scale: Field of the Future – Technologies in the North Sea. SPE 99829. SPE Intelligent Energy Conference. Amsterdam, The Netherlands, 11-13 April.

10. Bayerl, P.S., Lauche, K., and Badke-Schaub, P. (TU Delft), and Sawraryn, S. (BP) 2008. Successful Implementation of Collaborative Environments: Human Factors and Implications. SPE 112104. SPE Intelligent Energy Conference. Amsterdam, The Netherlands, 25-27 February.

11. Mueller, K. (PDO), McClelland, C. and Anvar, A. (SAIC) 2010. The Role of Human Factors Integration and Change Management Coaching in Integrating Multidisciplinary Teams Working in Collaborative Work Environments. SPE 128616. SPE Intelligent Energy Conference. Utrech, The Netherlands, 23-25 March.

12. Sankaran, S., Lugo, J., Awasthi, A., Mijares, G. (Halliburton) 2009. The Promise and Challenges of Digital Oilfield Solutions – Lessons Learned From Global Implementations and Future Directions. SPE 122855. SPE Digital Energy Conference. Houston, Texas, USA, 7-8 April.

Articles 1, LaClair and Rao, “Helping Employees Embrace Change”, McKinsey Quarterly, 2002.