Meeting HR Challenges through Organisational Transformation Process in Hydrocarbon Sector

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UPES does not own the content in this presentation. These are presentations presented in 2002 during the 2nd HR Round Table.

Text of Meeting HR Challenges through Organisational Transformation Process in Hydrocarbon Sector

  • 1.Meeting HR Challenges through Organisational Transformation Process in Hydrocarbon Sector June 13-14,Mumbai Enhancing Competitive Capabilities inUpstream Business ThroughRestructuring (CRC)and Forward Integration Presented byDr A K Balayan atHR Round Table organisedbyISPe & UPES, Dehrdun

2. To be aworld-classOil & Gas Companyintegrated inEnergyBusiness with dominantIndianLeadershipandGlobalPresence Vision 3. The Need for Change

  • Increasing Demand for Oil Products
  • Changing Regulations
  • Increased Competition
  • Maturing Portfolios
  • Environmental Concerns
  • People
  • Organization
  • Technology

4. Strategic Goals

  • To double accretion of initial in-place hydrocarbons from 6 billion tonnes to 12 billion tonnes in next 20 years
  • Improving Global Recovery Factor from 28to 40 % by 2020
  • 20 MMTper annum Equity Oil & Gas equivalent from overseas by2020through ONGC Videsh Limited (OVL).

Contd. 5. Strategic Goals

    • Monetisation & Development ofsmall & marginal fields
    • Upgradation of Technology & Systems forDeepwater Exploration & Production
    • Upgradation ofTechnology
    • Emphasis on Safety, Health & Environment ( SHE )

Contd. 6. To ensure a strong balance sheet, ONGC integrating vertically

  • All global oil & gas majors are vertically integrated along the hydrocarbon value chain: E&P, ocean and pipeline transportation, refining, fractionation, manufacturing, marketing, petrochemicals, and in some cases, power generation
  • Vertical integration is essential
    • To safeguard against vulnerability of sectoral companies toprice volatilityin the particular sector especially in E&P (upstream)
    • To obtainstable cashflowby operating across the asynchronous price volatilities in different sectors
    • Tocapture valuein each sector
    • To obtain flexibility intransfer pricing
    • To cut outtransaction costs
    • To enhance and retainmarket capitalisation , and
    • To securesustained growth
  • Integrated majors have been merging to createsuper-majorsin order to minimise costs and to exploit global synergies

7. Collaboration throughPeople, Processes & Technology Just do it right ! People are our greatest asset 8. Key New Imperatives

  • Alliancing / Long-term contract for sourcingDeepwatertechnology andDrillingsystems andEORprojects
  • Adoptionandacquisitionofbest-in-classandcutting-edge technology

9. Technology acquisition

  • Acquisitionofonestate-of-the-artsurvey vessel
  • Acquisition of2 ultra deepwater Drillingrigs
  • Alliancewith leading deepwater players
  • Long termopen-endedcontractwith globally established Service providers

10. Upgradation of Technology

  • Seismic Acquisition, Processing & Interpretation (API)
  • Drilling & Workover rigs
  • Production Systems & Installations
  • MIS & Communication systems
  • Crisis Management Equipment

Total envisagedInvestmentto the tune ofRs. 7500 Crore in 3 yearsperiod. 11. Initiatives

  • ProjectPROMISE(Professional Review Of Major Infocom Systems & Equipment)
  • To identifyareas for improvingoperations & performance of major Information Technology (IT), Tele-communications and Process Control Systems.

12. Initiatives

  • ProjectEPINET(Exploration & Production Information NETwork)
    • Common E&P data model for integrated solutions
    • Digitizing vital Geological & Geophysical (G&G) data (Real wealth of ONGC) to avoid degradation and ensure safety & security
    • Data Centre at 2 locations- Dehradun & Mumbai- being set up

13. initiatives

  • ProjectICE(Information Consolidation for Efficiency)
  • An organization-wide ERP Solutioncovering allbusiness processes of ONGC on SAP R/3 platform with integration of ongoing projects viz., KUBER, SHRAMIK, IMMS & EPINET

14. Restructuring

  • CRC formulated from lessons learnt through Pilots of Organisational Transformation Project (OTP) launched in 1997.
  • Launched with blessings of Honble Minister (P&NG) on 20.8.2001
  • CRC roll-out complete Assets, Basins, Services etc., in place
  • Corporate Rejuvenation Campaign ( CRC )

Contd. 15. Restructuring

  • Time bound special groups/ assignments in critical areas of operation:
    • New & marginal fields development
    • Deepwater Development
    • Gas Flaring Reduction
    • Mini Group Gathering Stations (GGS)
    • Alliancing
  • Corporate Rejuvenation Campaign ( CRC )

Contd. 16. Restructuring

  • Time bound special groups/ assignments in critical areas of operation (contd.):
    • Efficiency improvement & cost reduction Corporate Industrial Engineering (IE) Group
    • Offshore Supply
    • Corporate Logistics
    • Fire Services
    • Crisis Management Operation & Upgradation
    • HR- Improvement in performance of ONGC Schools
  • Corporate Rejuvenation Campaign ( CRC )

17. Strategy forHuman Resources Development 18. HRD Processes

  • Revision of
    • Promotion Policy
    • Career path
    • Transfer policy
    • Incentive scheme
  • Multi Disciplinary Team working

19. Vision of a Collaborative Team Team An association of people with complementaryskills who are committed to acommon purpose ,performance goalsandapproachfor which they hold themselves mutually accountable(developing an asset)

  • Specific Focus
  • Specific Objectives
  • Shared Vision
  • Interdependent
  • Highly communicative

20. Asset / Basin Team Objectives Institutes Multi Disciplinary Asset Team Customers Services Collaboration & team working Regulations Portfolio Management Fields / Blocks 21. Enabling Team Collaboration Vision, Objectives & Strategy Performance Measures & Incentives Technology & Competencies Resources People Processes Organisational Structure Culture 22. Collaboration in Asset Teams Vision Multidisciplinary Collaborative Teams Effective Communication (Virtual Corporates ,..)Easier sharing and exploitation of Data, Information, and Knowledge-EPINET Better Technology and EquipmentUpgradation of rigs, PROMISE etc Integrated processes-ICE Increased Co-ordination-Vichar series Rich Support and Backup(Expert Advice from Services and Institutes) 23. HR Practices

  • Committee of the Board on HRM
  • - with external Director as Chairperson
  • External reporting of the HR climate
  • - as part of the annual report
  • Social responsibility
  • - Policy for spending on Socio-economic activities
  • Encouragement to outstanding sportspersons

24. Enhancing Human Resource Capabilities

  • Knowledge Building
  • Upgradation of Qualification
  • - Unnati Prayas
  • Management development
  • - Inhouse and External programs
  • Technical trainings
  • -Inhouse and abroad
  • - focus on technology absorption

25. Enhancing Human Resource Capabilities

  • Knowledge Sharing
  • Partnership with Institutes
  • Planned job rotation and transfers for executive development

26. Enhancing Human Resource Capabilities

  • Performance contracts with quantified parameters
  • Assessment center for competency profiling, succession and development inputs planning

27.

  • Stakeholders will increasingly demand more information on:
    • HR measures
    • Environment
  • In future these may even become mandatory
  • Whether standard HR measures can be agreed upon for all industries?

28. THANKYOU 29. Enabling Team Collaboration Vision, Objectives & Strategy Performance Measures & Incentives Technology & Competencies Resources People Processes Organisational Structure Culture