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1. Managing your workforce with data 2. Quan7ta7vely characterizing your skilled workforce 3. Selected case studies Appendix A – Further case studies Appendix B – About Alvarez & Marsal Appendix C – Speaker bio
Ongoing data capture and analysis is crucial A sound approach combines demand forecas7ng with the talent supply chain with the intent of allowing companies to dynamically align talent with current and future business needs
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Key elements of a sound manpower planning approach include:
1. Understanding Demand Pipeline Characteris=cs: Using quan7ta7ve and qualita7ve data to analyze and gain insights into the characteris7cs of the demand pipeline.
2. Quan=fying Work/Project Requirements: Capturing, qualifying and quan7fying project management requirements such as the type and quan7ty of capabili7es needed and the 7ming needs for resources.
3. Understanding Complex Internal Talent Dynamics: Using available data to build a picture of talent dynamics and shine a light on areas such as staff availability, under/over u7liza7on of staff, moves between projects and staff turnover.
4. Quan=fying the Talent Gap and Taking Ac=on: Assessing both sides of the talent supply and demand equa7on to iden7fy ac7ons needed to close gaps.
Managing the workforce takes a structured plan A best prac7ce is to work closely with project management leaders to iden7fy what companies do well and combine that with industry standard protocols to develop a solu7on that meets their long term needs
Startup • Develop project plan and gather data • Develop transforma7on plan
Evaluate/ Document Current State • Analyze resource porPolio, pipeline and churn for
roles, skills and capabili7es • Analyze present and future project characteris7cs • Document current state • Evaluate key stakeholders for transforma7on
readiness
Define Future State Requirements and Path Forward • Define model to simulate and predict talent
porPolio/ pipeline demand scenarios • Priori7ze opportuni7es • Develop future requirements
Deliverables • Project plan • Transforma7on plan • Key inputs to planning model • Conceptual design and roadmap
Build Future State Process • Develop manpower planning model and
standardized processes • Validate new model and processes with key
stakeholders • Develop communica7on and training plan • Prepare for pilot
Conduct Pilot and Incorporate Required Changes • Perform pilot and document key findings and
lessons learned • Adjust model and process to incorporate
findings and lessons learned • Use available data to test model effec7veness • Develop implementa7on plan
Deliverables • Finalized planning model • Documented standardized manpower planning
process • Implementa7on plan: training, communica7ons,
transforma7on, etc…
Train, Deploy and Support Solu=on • Deploy training for model and process • Implement standardized approach for
manpower planning model and process • Implement process for feedback and alignment
with future needs
Using model outputs, develop gap analysis • Assess talent shortage and surplus to project
pipeline • Iden7fy strategies required to address gaps • Develop manpower plan to address immediate
and longer term needs
Deliverables • Manpower demand forecast • Finalized list of key demand influencing
variables • Manpower plan
Phase One Assess and Define
Phase Two Build and Pilot
Phase Three Deploy and Sustain
Stakeholder Engagement and Transforma=on Management
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Project Prioritization & Planning
Process
A key enabler of our approach – Our own model Our model integrates availability of resources with an7cipated demand for projects and addresses numerous other factors Pipeline of Projects Available Resources
Project Type “A”
Project Type “B”
Project Type “C”
Project Type “D”
Project Type “E”
Resource Type “5”
Resource Type “4”
Resource Type “3”
Resource Type “2”
Resource Type “1”
§ Different Resources may be grouped by Type, based on skills, experience, etc.
§ Within each Type group the availability of resources will vary based on factors such as current project workload and timing, hiring plan, contractor availability, etc.
§ Specific Requirements for Types of Resources will likely vary by Type of project
§ Different projects may have varying priorities based on expected value, risks, and timing of related or dependent projects and objectives
Strategic Goals &
Priorities
Unscheduled Events
Prioritized List of Projects & Expected
Resourcing
Resource Utilization Forecast
with Gaps & Constraints Identified
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Workforce modeling is an enabler of strategic planning Tradi7onally, companies in the oil & gas industry take ac7on reac7vely, moving quickly to cut costs. With a workforce planning model, you can act on insights that take into account the long-‐term view.
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Model
Past project data Compiling past project data offers the chance to revisit lapses and capture best prac=ces
The results can be used to guide your organiza=on’s strategy
The model then lays bare both shortages and surpluses by labor type
Scenario analysis Strategic hiring Project targe=ng
Tools produced to support workforce planning Workforce management requires robust documenta7on
Resource Discipline Defini/ons & Mapping Project Categoriza/on & Resource Requirement Modeling
Project Staffing and Organiza/on Structures Resource U/liza/on Forecasts & Planning
Historical Project Performance and Demand Forecas/ng
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Background • Client is a leading Engineering, Procurement & Construc7on firm that focuses on complex systems for floa7ng oil & gas produc7on vessels in all
water depths from shallow to ultra deep water. Individual projects can take years to design and build and can be valued in the hundreds of millions of dollars.
• Client needed assistance with project planning, organiza7onal design and manpower planning • This represented the largest and most complex project they had ever undertaken and would require over 130 resources that would func7on as a
team for approximately three years. A&M Role
• A&M’s role was to design and build a fully capable project management team, organiza7on structure and policies & procedures that would enable all aspects of project execu7on and organiza7on setup.
• The A&M team did this by: – Analyzing thousands of pages of contract requirements to determine all that were applicable to the project management effort – Developing an organiza7on structure, roles and responsibili7es and procedures for the overall effort including project management,
various engineering disciplines, project controls, procurement, document control , IT and HR. – Procurement organiza7on design as well as policy/procedure crea7on were from the ground up and assumed no legacy capability. – A cri7cal success factor in this effort was that the project organiza7on had to be responsive to mul7ple stakeholder groups including
the state owned natural gas company, the European E&P operator and the consor7um construc7on partners. Complica7ng factors for the project organiza7on included the need to deal with stakeholder groups with poten7ally conflic7ng interest, challenging consor7um group members and several different languages and cultures.
Outcome • A&M successfully compiled project management requirements, developed a unified organiza7on structure that equipped the client to ramp up
quickly and immediately begin execu7ng the one hundred day plan followed by subsequent plans for building out various sub-‐teams according to the design engineering schedules.
• Key learnings from this exercise served as a basis for enhancing client’s exis7ng project management structure and processes for other projects.
Capital project design and staffing EPC Project Management Design and Manpower Planning
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Background • Large privately owned construc7on company that offers general construc7on, project management and construc7on management services. • Demand for skilled crah labor across the Company’s various business units is expected to increase, while the market availability of these trades
con7nue to come under pressure. In 2005, the company processed approximately 25,000-‐30,000 crah posi7ons and the specific crah posi7ons and needs will vary from job to job as well as across the Business units
• A&M was asked to review the exis7ng crah employment processes and iden7fy issues associated with current prac7ces and develop recommenda7ons to improve the crah employment processes in light of the 7ghtening labor market and forecast increase in demand for these skills.
A&M Role • Working with Employee Rela7ons and the Business Units to assess the standard business processes / policies, organiza7on structure and suppor7ng
tools • Developing alterna7ves and recommenda7ons for improvement across the following crah employment ac7vi7es: Resource Planning, Requisi7on,
Selec7on, Hiring, Reten7on, Jobsite Onboarding, and Termina7on • Conduc7ng over 100 interviews with client personnel/execu7ves, distribu7ng an employee survey to 2,000 crah laborers, and analyzing detailed
sta7s7cal data Outcome
• Developed nearly 40 detailed recommenda7ons and presented them to the Client’s top execu7ves • Completely redesigned resource planning, recrui7ng/sourcing process • Implemented a global real-‐7me labor forecast of supply/demand of crah laborers • Created a redeployment process designed to quickly and efficiently move crah laborers from one project to the next • Substan7ally reduced turnover of high performing crah laborers
Resourcing process improvement Large engineering and construc7on company
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Appendix A – Further case studies
Project demand forecas7ng Oilfield services technology, manufacturing and administra7ve facili7es
Background • Client is a global oilfield services company, and provides a wide range of services to oil & gas developers around the globe. The Client’s real
estate group manages facili7es around the world, including dozens of facili7es dedicated to manufacturing and technology development. • Iden7fying and execu7ng new projects was ohen a very reac7ve process, with key stakeholders only iden7fying the need for addi7onal capacity
or loca7ons once facility constraints were painfully evident. • Client needed to develop a more strategic approach to assessing current capacity against projected future needs of the business in order to
beker plan for real estate projects, par7cularly in Manufacturing and Technology, as well as administra7ve transac7on facili7es for func7ons such as finance, HR, and procurement.
A&M Role • A&M’s role was to develop a more proac7ve and strategic approach for engaging selected func7onal groups in order to beker understand their
current and future needs, and to become a more strategic partner with a view into poten7al needs looking out 3-‐5 years in the future. • The A&M team did this by:
– Interviewing key stakeholders to understand the underlying drivers of their resource and personnel requirements, and ul7mately their need for facili7es.
– Analyzing current and historical data for real estate facili7es, including quan7ta7ve and qualita7ve assessments of u7liza7on and the overall performance of facili7es in mee7ng the needs of stakeholders.
– Developing and tes7ng a methodology for modeling personnel and space requirements for different func7onal groups in order to assess the poten7al need for new facili7es over the next 3-‐5 years.
– In addi7on, assisted key stakeholders in iden7fying some simplified approaches for analyzing and forecas7ng their own internal resource requirements based on overall strategic forecasts for the company.
Outcome • Developing and pilo7ng the new approach to engaging key stakeholders helped them understand their own role in assessing the longer term
strategic needs in terms of new facili7es. • Key boklenecks and poten7al capacity constraints were iden7fied, enabling the real estate group to proac7vely engage stakeholders in
assessing the need for poten7al projects well in advance of when projects would need to be executed. • Several key stakeholders also realized that they could use these tools and approaches to beker forecast their own internal resource needs.
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Local content development Large upstream oil & gas operator with opera7ons in West Africa
Background • Client is an oil and gas company building opera7ons in West Africa
A&M Role • A&M’s role was to develop a long-‐term organiza7onal structure and human resource development strategy and plan to address growth goals
while maintaining compliance with local needs • The A&M team did this by:
– Developing and execu7ng viable long-‐term hiring/training plan and organiza7onal structure to meet expanding opera7onal needs in Angola
– Integra7ng compliance and “Angolaniza7on” efforts into hiring plan and long-‐term business strategy – Building near and long-‐term resourcing model to address short term and longer term recrui7ng and training needs – Assis7ng client with recruitment ini7a7ves to acquire capable resources in compe77ve market – Developed professional career plans for 18 Job Families and over 70 W Africa job descrip7ons – Facilita7ng crea7on and execu7on of training and development plans for local employees to promote professional growth – Developing key processes for the transfer of knowledge from supervisors to trainees – Planned / coordinated ELITE Career Fair in Angola (designed brochures, graphics, giveaways, processed resumes, etc.) – Began local training vendor research – related to Contract Program requirements – Ensuring compliance of client’s HR ac7vi7es in Luanda with all regulatory agencies – Preparing documents, presenta7ons, and templates outlining client’s current and future state objec7ves for submission to regulatory
bodies Outcome
• A&M successfully completed the ac7vi7es above and con7nues to manage the overall resourcing plans, training and development and recrui7ng strategies in-‐country to-‐date.
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Appendix B – About Alvarez & Marsal
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About Alvarez & Marsal For more than 25 years, Alvarez & Marsal has set the standard for working with organiza7ons to tackle complex business issues, boost opera7ng performance and maximize stakeholder value.
About A&M � Founded in 1983 by co-‐CEOs Tony Alvarez II and Bryan Marsal � 2,300+ professionals � 39 ci7es; 16 na7ons; 4 con7nents � 300+ Managing Directors North America New York (Global HQ) Atlanta Birmingham Boston Charlotte Chicago Dallas Denver Detroit Houston Kansas City Los Angeles
Miami Nashville Philadelphia Phoenix San Antonio San Francisco Seakle Toronto Vancouver Washington, D.C.
Europe and the Middle East London (European HQ) Amsterdam Dubai Madrid Milan Latin America São Paulo (Latin American HQ) Bogotá Asia Hong Kong (Asian HQ) Beijing Mumbai Seoul Shanghai
Mexico City
Moscow Munich Paris Warsaw
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Appendix C – Speaker bio
• David Vaucher, a Director with Alvarez & Marsal in Houston, specializes in upstream opera7ons and opera7onal costs. Mr. Vaucher’s insights on costs in the oil & gas industry and opera7ons to support shale oil & gas development in North America have been sought out and published by global news organiza7ons such as Thomson Reuters, The Wall Street Journal (La7n America), the Financial Times and The Economist, and local ones such as the Houston Chronicle and the San Antonio Express News.
• Mr. Vaucher has deep technical knowledge of oil & gas workover ac7vi7es, and has published and presented several Society of Petroleum Engineers (SPE) papers on this topic. He has years of hands-‐on field experience, and is highly knowledgeable about comple7on tools generally, and “thru-‐tubing” interven7on tools specifically.
• Prior to joining Alvarez & Marsal, Mr. Vaucher worked for IHS where he managed the Upstream Opera7ng Cost Analysis Service and was instrumental in driving the product’s growth, whose membership more than doubled during his tenure. His biggest contribu7on was spearheading the year-‐long effort to forecast opera7ng cost escala7ons for every single market in the cost service for over a dozen countries, under all 3 of IHS’ global energy scenarios, over a forecast period that spanned more than two decades.
• He began his oil & gas career as an engineer at Schlumberger based in Texas, focusing on cemen7ng and well construc7on opera7ons, and then worked for TAM Interna7onal (a maker of specialty comple7on tools) as a Technical Advisor suppor7ng the company’s global field opera7ons.
• Mr. Vaucher is a past editor-‐in-‐chief of “The Way Ahead” magazine, the SPE’s official publica7on for young professionals. In this role he managed a team of 45 editors located around the world to deliver a publica7on in print and online to roughly 26,000 readers. He currently writes the weekly column “Building Hydrocarbon Bonds” for the Houston Chronicle, and is the author of the book “Drilling Ahead: Your Guide to Star7ng, Building, and Securing a Career in the Oil & Gas Industry.”
• Mr. Vaucher speaks French fluently, and holds a Bachelor of Science degree in mechanical engineering from Rice University, an MBA from the University of Texas at Aus7n, and a Master of Engineering in petroleum engineering from Texas A&M University at College Sta7on.
E-‐mail: [email protected]
David Vaucher, MBA, MEng Director in Alvarez & Marsal’s Energy Prac7ce
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