Meeting HR Challenges through Organisational Transformation Process in Hydrocarbon Sector
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Transcript of Meeting HR Challenges through Organisational Transformation Process in Hydrocarbon Sector
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Meeting HR Challenges through Organisational Transformation Process in Hydrocarbon SectorJune 13-14, Mumbai Enhancing Competitive
Capabilities in Upstream Business Through
Restructuring (CRC)and Forward Integration
Presented by Dr A K Balayan
at HR Round Table
organised by
ISPe & UPES, Dehrdun
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To be a world-class Oil & Gas Company
integrated in Energy Business with
dominant Indian Leadership
and Global Presence
VisionVision
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The Need for Change
Increasing Demand for Oil ProductsIncreasing Demand for Oil Products
Changing RegulationsChanging Regulations
Increased CompetitionIncreased Competition
Maturing Portfolios Maturing Portfolios
Environmental ConcernsEnvironmental Concerns
PeoplePeople
OrganizationOrganization
TechnologyTechnology
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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
28 to 40% by 2020
20 MMT per annum Equity Oil & Gas
equivalent from overseas by 2020 through
ONGC Videsh Limited (OVL).Contd.
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Strategic Goals
Monetisation & Development of small &
marginal fields
Upgradation of Technology & Systems for
Deepwater Exploration & Production
Upgradation of Technology
Emphasis on Safety, Health & Environment
(SHE)
Contd.
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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 to
price volatility in the particular sector especially in E&P (upstream)
To obtain stable cashflow by operating across the asynchronous price volatilities in different sectors
To capture value in each sector To obtain flexibility in transfer pricing To cut out transaction costs To enhance and retain market capitalisation, and To secure sustained growth
Integrated majors have been merging to create super-majors in order to minimise costs and to exploit global synergies
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Collaboration through People, Processes & Technology
Just do it right !Just do it right !
“People are our greatest asset”
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Key New Imperatives
Alliancing/ Long-term contract for
sourcing Deepwater technology and
Drilling systems and EOR projects
Adoption and acquisition of best-in-class
and cutting-edge technology
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Technology acquisition
Acquisition of one state-of-the-art survey
vessel
Acquisition of 2 ultra deepwater Drilling
rigs
Alliance with leading deepwater players
Long term open-ended contract with
globally established Service providers
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Upgradation of Technology
Seismic Acquisition, Processing &
Interpretation (API)
Drilling & Workover rigs
Production Systems & Installations
MIS & Communication systems
Crisis Management Equipment
Total envisaged Investment to the tune of Rs. 7500 Crore in 3 years’ period.
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Project PROMISE (Professional Review Of Major Infocom Systems & Equipment)
To identify areas for improving operations &
performance of major Information Technology (IT), Tele-communications and Process Control Systems.
InitiativesInitiatives
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Project EPINET (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
InitiativesInitiatives
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Project ICE (Information Consolidation for Efficiency)
An organization-wide ERP Solution covering all business processes of ONGC on SAP R/3 platform with integration of ongoing projects viz., KUBER, SHRAMIK, IMMS & EPINET
initiativesinitiatives
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RestructuringRestructuring
CRC formulated from lessons learnt through
Pilots of Organisational Transformation
Project (OTP) launched in 1997.
Launched with blessings of Hon’ble Minister
(P&NG) on 20.8.2001
CRC roll-out complete – Assets, Basins,
Services etc., in place
•Corporate Rejuvenation Campaign (CRC)
Contd.
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RestructuringRestructuring
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.
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RestructuringRestructuring
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)
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Strategy for Human Resources Development
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HRD Processes
Revision of
Promotion Policy
Career path
Transfer policy
Incentive scheme
Multi Disciplinary Team working
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Vision of a Collaborative Team
TeamTeam
An association of people with An association of people with complementary complementary
skills who are committed to a skills who are committed to a common purposecommon purpose, ,
performance goalsperformance goals and and approachapproach for which they hold for which they hold
themselves mutually themselves mutually accountable accountable
(developing an asset)(developing an asset)
Specific FocusSpecific ObjectivesShared VisionInterdependentHighly communicative
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Asset / Basin Team
ObjectivesObjectives
InstitutesInstitutes
Multi Multi Disciplinary Disciplinary Asset TeamAsset Team
CustomersCustomers
ServicesServices Collaboration & Collaboration & team workingteam working
RegulationsRegulations
PortfolioPortfolioManagementManagement
Fields / Blocks
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Enabling Team Collaboration
Vision, Vision, Objectives Objectives & Strategy& Strategy Performance Performance
Measures & Measures & IncentivesIncentives
Technology & Technology & CompetenciesCompetencies
ResourcesResources
PeoplePeople
ProcessesProcesses
Organisational Organisational StructureStructure
CultureCulture
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Collaboration in Asset TeamsVisionVision
Multidisciplinary Collaborative TeamsMultidisciplinary Collaborative Teams
Effective Communication (Virtual Corporates ,..) Effective Communication (Virtual Corporates ,..)
Easier sharing and exploitation of Data, Information, Easier sharing and exploitation of Data, Information,
and Knowledge-EPINETand Knowledge-EPINET
Better Technology and Equipment Better Technology and Equipment
Upgradation of rigs, PROMISE etcUpgradation of rigs, PROMISE etc
Integrated processes-ICEIntegrated processes-ICE
Increased Co-ordination-Vichar seriesIncreased Co-ordination-Vichar series
Rich Support and Backup Rich Support and Backup
(Expert Advice from Services and Institutes)(Expert Advice from Services and Institutes)
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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
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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
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Enhancing Human Resource Capabilities
Knowledge Sharing
Partnership with Institutes
Planned job rotation and transfers
for executive development
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Enhancing Human Resource Capabilities
Performance contracts with
quantified parameters
Assessment center for
competency profiling, succession
and development inputs planning
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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?
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THANK YOU
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Enabling Team Collaboration
Vision, Vision, Objectives Objectives & Strategy& Strategy Performance Performance
Measures & Measures & IncentivesIncentives
Technology & Technology & CompetenciesCompetencies
ResourcesResources
PeoplePeople
ProcessesProcesses
Organisational Organisational StructureStructure
CultureCulture