Organizational Design
SITUATION
Oil and gas producer recently experienced rapid growth and Leaderrship was concerned that the existing organizational structure was no longer effective.
DRIVER GOAL
- Establish stretch targets for production and reorganize Operations, Development and Exploration to deliver increased production levels.
RESULT
- Implemented a new organizational design.
- Created job descriptions including roles and responsibilities.
- Implemented a new recruitment process.
Case Study
Redesigned Organization to Support Increased Production
Issue
An oil and gas producer had recently experienced a period of rapid growth as a result of bringing new reserves on stream. Leadership was concerned that the pre-existing organizational structure was no longer optimal for a major, growing business unit. Additionally, the persistence of informal “small company” practices, such as poorly or undefined roles and responsibilities, had created a climate lacking accountability with impaired organizational ability to fully implement improvement initiatives. This showed up in HSE performance well below median in the sector and poor production efficiency (over 10% worse than leading competitors).
Highland Approach
The Highland Group assessed the existing organization structure and leadership capability, reviewed Human Resources and people processes, and reviewed the workforce profile at all locations, including offshore and onshore. Then the team developed the optimized future state organizational design and worked with client leadership to implement the new structure.
Actions Taken
- Defined and delivered the new organization design concept, the detailed organization structure and job descriptions with detailed roles and responsibilities for virtually all positions.
- Delivered a re-engineered recruitment process.
- Implemented a new organizational design along with new job descriptions to support internal and external recruitment and to refocus the business on improving performance.
- Developed and implemented a System For Managing, including a top-level business dashboard and a defined process for cascading KPIs throughout the organization.