THE GREAT CREW CHANGE: W H AT ’ S N E XT F O R T H E O I L A N D G A S I N D U S T RY ’ S W O R K E R S ?

TODD BURDETTERICH MILL IGAN

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• The upstream oil and gas industry is undergoing what’s widely referred to as “The Great Crew Change.” Thousands of seasoned petro technical professionals (PTPs) are set to retire in the coming years; a development that will leave this evolving industry and its many complex projects in the hands of the less experienced. Ready or not, upstream companies are already facing this experience and knowledge gap that is taking shape and sure to widen.

• How did this crew change come about?• What are its implications?• What approach should oil and gas companies take?

Abstract

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Changing of the Guard

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• Retiring Baby Boomers• Potential Implications• The Millennials• The Important of Learning• Case Study- P2Support• How to create the Millennial Organization • Q&A

Contents

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• Retirements are in progress and roughly half the industry will retire in 10 years 1

• “The big crew change is happening now and will be mostly over in five years," 2

• By 2014, the flow of younger to experienced petro-technical professionals only about 17,000, compared with roughly 22,000 2

– Net shortfall of 5,000

1 – Rigzone.com2 – 2011 Schlumberger Business Consulting

Retiring Baby Boomers

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Potential Implications – Drillers

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• A 20% reduction in performance today would mean approximately $35 Billion in economic costs

• 20% of E&P professionals is roughly equivalent to 80,000 employees (with <5 years experience)

Information courtesy of J. Ford Brett – President, PetroSkills

Potential Implications

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The Millenials – The Industry’s Future

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• Generation born between1980 and 2000 – Also known as Generation Y or the Net (Internet)

Generation

• Entering employment in vast numbers– Have a lifelong affinity for technology and internet– Accustomed to ubiquitous digital connectivity instant

access to information– Collaborative by nature and trust online social

relationships– Desire a fluid balance of work and social life– Strongly believe in training and one-on-one mentoring

Millennials Defined – PWC Study

Why Millennials matter

15th Annual CEO Survey, PwC, 2012

Why Millennials Matter

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• By 2020 the number of millennials in the workplace will double to approximately 50% of the workforce. Can you turn this trend into a competitive advantage?

• Millennials already form 25% of the workforce in the US and account for over half of the population in India.

Changing Workforce

provided benefits

DiverseGeneration Gender Culture

Different Work Styles

Collaborative

More virtual communication

Additional Learning

Options

ChangingExpectations

Working with cutting edge technology to respond to

market demandsDesire for greater non-

financial opportunities: L&D is top choice for employee-

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• Loyalty-lite• Development and work/life balance are more

important than financial reward• A techno generation avoiding face time• Moving up the ladder faster• The power of employer brands and the waning

importance of corporate responsibility• Wanderlust• Generation tensions• Learning and Development is one of the most

significant factors in employee selection

Behaviors of Millennials

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• A struggle to support how employees interact and engage today.

• Unspoken knowledge is not captured, stored or shared– Cannot be distributed or learned with the right

contextual relevance• This complex landscape needs to be actively

managed and supported at the Enterprise level– Must ensure that firms develop and attract talent

for sustainable competitive advantage– Key to attracting and maintaining the Millennials

Additional Complications

The Importance of Learning

Global Trends

Technology

Workplace Workforce

0

Workplacemobile, global, virtual,

shrinking lifespan of knowledge

WorkforceBaby Boomers retiring, Millenials become

majority, talent wars, emerging professions

TechnologySocial-centric (social media), collaborative,

crowd sourcing, open source, rapid anditerative changes, mobility

GlobalTrends

The Enterprise Learning Ecosystem

Enterprise Learning 2.0, PwC, 2012

Org

aniz

ation U

nstr

uctu

red

• Defined desired results at start• Open, self-directed participation• Fixed duration• Ad hoc teams with little or no

structure governing interactionsIdea markets, Crowdsourcing

Innovation contents

• Anyone can participate at any time• Individuals take multiple,

simultaneous roles• Dynamic, constantly evolving

cadenceOn the job learning, Peer knowledgesharing, Enterprise social networks

Blogs, Wiki’s

• Set relationships• Expectations for contact frequency• General direction for what is shared

Huddles, Impromptu status meetings, Mentoring programs, Communities of

practice

Stru

ctur

ed

• Defined curricula/learning goals• Set participant lists• Established agendas• Fixed cadence

Instructor-led classroom courses,Computer-based training,Assigned learning plans

Defined UndefinedOutcomes

Enterprise Learning Ecosystem

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• Understanding where to focus your Learning spend will help the design of a more balanced Learning strategy to meet organizational-wide needs.

Realigning Support and Focus

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• Most learning happens outside of the classroom• Organizations are moving away from traditional

forms of Learning and embracing innovative solutions

Paradigm Shift in Learning

Old school definition: Learning = Training, Courses, Webinars

Newer expanded definition: Learning = Innovation,

Knowledge Sharing,Collaboration, on-demand/just in time

access to knowledge “in the flow of doing work”

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“Information is not knowledge” - Albert Einstein

• Technical Advancements in Data Capture– Large Databases– Increased Connectivity– Pervasive Data – High Volume

• Useful Data– Lacking Context

• Without Contextual relevance, overflow of information creates chaos

Context Knowledge

How to create a Millennial Org

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• Structure– Flexible, team oriented, dynamic and adaptable

• Tools and Technologies– High Tech, allowing for collaboration and multi-tasking – Forums, communities, wikis, blogs, chat rooms

• Knowledge management– Focused learning environment– Capture and share knowledge with the right contextual relevance

• Data Management– Organized knowledge share for easy search and dissemination

Definition – The Millennial Org

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Organizational transformation is needed to adapt to the significant shifts in technology and culture

• Recruiting and employee engagement

• Workplace environment training

• Development Technology

• Pervasiveness and skills

• Contextualize information

Getting Millennial ‘ready’

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To attract and retain Millennials, pro-actively managing your talent essential• Alignment

– Business Plan– Talent Strategy

• Face the future• Pay attention to pivotal roles• Financial Considerations

– Salary – Boomers and Millenials– Training – Balanced Approach

What must employers do?

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Questions