The offshore oil and gas operations is part of a complex ecosystem with numerous stakeholders and inherent challenges. These operations are situated in remote locations and are characterised by hazardous working environments and complex logistics that typically result in higher costs compared to their onshore counterparts. 

For example, offshore drilling platforms come in diverse configurations, with complex systems. Managing these complex structures requires the adoption of modern solutions, prompting many organisations to migrate from legacy systems to cutting-edge solutions.

However, when upgrading digital solutions in an operating environment, rigorous review of core processes prior to changing systems is critical to success. Additionally, obtaining buy-in from the operating teams is a best practice, which will ensure greater (and faster) adoption of new systems and tools.

There are many levers to improve the efficiency of offshore operations. This article discusses initiatives to re-engineer company processes and manage change to improve overall offshore performance.

Re-engineering processes

Many organisations overlook the critical step of re-evaluating their core processes and workflows when implementing new digital systems. Instead, they assume underlying processes are issue-free and adopt a mindset that automation will solve all operational issues.

It is important to note that the effectiveness of these systems can be compromised if the underlying process inefficiencies are not addressed. Attempting to retrofit existing processes to a new system often misses the mark, as it overlooks nuances and discrepancies between process and system.

These oversights lead to sub-optimal system performance and missed opportunities. Therefore, re-engineering the processes becomes a critical exercise. Here’s what your organisation can do:

1. As-Is vs To-Be: Analyse current processes and envision your desired future state to achieve operational excellence. Overly complex or piecemeal processes can create system gaps and often hinder efficiency.
2. Streamline workflows: Re-engineer processes for interoperability and efficient execution. The installation of Management Control Systems (MCS) can be an organisation’s most important procedural change, driving continuous organisational improvement. Having defined work processes across planning, execution, and material procurement enables closed-loop information flows and provides real-time insight to managers.
3. KPIs for continuous improvement: Implement Key Performance Indicators (KPIs) tailored to each department, outlining work processes, roles and responsibilities. Regular daily, weekly and monthly performance reviews help identify areas for improvement and recognise high performers.

Managing change by reshaping attitudes and mindsets

Philip Selznick, a central figure in the theory of organisation, once remarked, “Organisations are made up of individuals, and there is no organisation without individuals.” This is particularly true in the complex upstream oil and gas environment, where individual actions and mindsets can at times significantly impact operations.

Ensuring full understanding of the change by employees is a common challenge in implementing systems. While many organisations already have the tools to technically implement new systems, they lack effective change management expertise.

For example, a lack of employee awareness of the importance of entering non-attainment codes for incomplete maintenance orders prevents maintenance leadership from conducting effective non-attainment analysis, which can contribute to growing backlogs. This is not a system problem, it is an awareness and behavioural challenge…in other words, it is a “people problem”.

Embarking on an ambitious strategy to re-engineer the processes may raise the question, “So what?” The greatest challenge lies in managing employee resistance and sustaining the behavioural change. Success depends on changing the culture and securing buy-in from employees. To achieve this, consider the following:

1. Leadership and buy-in: Leadership sets the tone. Leaders need to have a deep understanding of the challenges being addressed and their desired outcomes. Similarly, implementers require a clear understanding of the “big picture” to ensure alignment and ownership.
2. Embracing change: Successful transformation relies on workforce readiness for new tools and methodologies. Active engagement and open communication are key to overcoming potential resistance.
3. Tailored intervention: Many different initiatives are being driven by, or proposed to, oil and gas companies. The trick lies in fostering behavioural change through targeted programmes that reshape attitudes, mindsets and organisational culture and instil a culture of continuous improvement. Reskilling existing employees or acquiring new talent with the right expertise may be necessary.

How Renoir can help you

Upstream oil and gas companies often struggle with the pitfalls of “scatter-shot” solutions, attempting too many changes at once without deep focus on initiatives that work. This leads to fragmented efforts and limited results.

At Renoir Consulting, we take a different approach. Our experienced consultants and subject matter experts employ robust methodologies to conduct a comprehensive analysis of your current processes and management systems (as-is). The analysis allows for the identification of gaps and weaknesses and facilitates the development of a programme aimed at achieving your desired (to-be) future state.

Given the critical role of human behaviour, our methodologies also involve actively engaging with your organisation. Through our “Go See and Assess” approach, which includes Day in the Life Observations (DILO) of offshore leadership and technicians, we gather insights from all levels. This enables us to tailor interventions that effectively shift mindsets and behaviours.

With over 30 years of experience, we understand the importance of hands-on support. When introducing new solutions or working methods, we provide initial training and maximise buy-in through active collaboration.

Our consultants oversee the process, organise workshops, develop practical solutions, and present findings to senior management. Engaging an impartial third party such as Renoir brings essential objectivity to addressing inefficiencies in operational processes and employee behaviour.