Working with JMW, this company generated a complete performance turnaround. Leadership development paved the way to a cultural transformation that facilitated the capacity to produce stellar results.
At a glance
Industry: Oil & Gas
Challenge: Implement huge shift in culture and quickly deliver new levels of value from asset base
Objective: Adopt new ways of working organization-wide, meet financial stretch targets
JMW Approach: Shift in organizational culture, strategy formulation, developing personnel
Results: Increase of 50% in share value, 10% in production; decrease of 30% in debt and 20% in costs
Formulate and quickly implement a bold new strategy for long-term success
This international oil company had to increase productivity, reduce operating costs and deliver value from its existing asset base, while in the midst of completely altering its business strategy from being transaction-based to internal performance-based. Delivering on these challenges was vital to the organization’s long-term success, and required not only organizational buy-in and commitment to aggressive, measurable objectives, but also a dramatic shift in culture.
New thinking, new actions, new results
JMW assisted the executive team in not only formulating the bold new strategy, but also developing the key management personnel who were responsible for its implementation and producing the desired business results. To successfully operationalize the new strategy, the company identified pathways and developed stretch targets consistent with the new direction. In addition, it created processes that allowed teams to actively engage with each other and align on the target and performance objectives.
JMW conducted education programs, work sessions and one-on-one coaching both to help senior and mid-level management apply concepts of breakthrough performance in their daily work environment and to help realize their new vision. In addition, JMW worked with individuals at all levels of the organization to support them in setting and achieving their specific area’s stretch targets.
The work was not without setbacks. During this time, the company downsized, reduced capital expenditures by half, relocated its corporate offices, and conducted a major physical renovation at its headquarters. As a partner with the CEO and executive and senior management teams, JMW facilitated work sessions and coached the leadership team in collaborating and aligning on critical decisions to take necessary actions to recover quickly—without ever veering from its strategy or abandoning the original stretch targets.
Shift in behavior and attitudes impacted bottom line
Employees learned new ways of thinking and working that led to significant financial stretch target results; some of which included: a sustainable increase in oil production of more than 10%; an operating costs reduction of 20%; an increase in share price by 50%; a decrease in debt by 30%; and capital efficiency outperformed the industry norm. What’s more, the company experienced a shift in employee rating from one of the worst companies to work for to one of the best.
One corporate officer states,
“How people go about their everyday business has changed. They are now willing to set goals that seem unattainable. We never had this option before.”