We help oil and gas clients engineer their organization for success through our unique combination of proven tools, benchmarks and deep industry knowledge.
The recent turmoil in the global oil and gas industry has combined with longstanding trends to raise fundamental questions for oil and gas players, including the right size and shape for their organization, ways to improve engineering productivity, how to manage an ever increasing pace of change and strategies to build the organizational capability needed to succeed.
Transformation programs are often seen as the answer to these questions, yet their effects can be short-lived. Our approach—based on decades of client work and extensive in-house research—helps clients address organizational issues to improve business performance alongside building their organizational health as the means to sustaining excellent long-term results. That involves developing the right capabilities, embedding efficient processes, and constantly reviewing the opportunities they pursue.
What we do
Over the past five years, we have served 14 of the world's top 20 oil and gas companies in more than 250 projects—spanning organizational analytics and design, performance transformation, human capital and talent, and merger management. In addition to providing strategic advice and hands-on support with implementation, we are committed to building clients' capabilities at all levels of an organization to ensure long-term success. To help senior executives with their development, we offer focused learning opportunities through our Change Leaders Forum, our Organizational Design Executive Forum and our Executive Transitions Master class.
How we work
We blend our breadth of organizational experience with deep expert knowledge of the oil and gas industry to bring clients the best thinking on the most critical organizational challenges they face. We develop our own unique perspectives on hot topics such as:
- The oil and gas organization of the future
- Trends in IOC and NOC organization, including benchmarking across dimensions such as capital project organizations, non-operated governance, board and shareholder governance
- How to successfully execute mergers in oil and gas
- Approaches to remove cost through organizational levers
- Closing the technical talent gap through strategic workforce planning, building the local talent pool (local content), expert career paths and capability development
We also offer unparalleled experience in tackling organizational challenges such as strengthening leadership development, changing mind-sets and behaviors, simplifying organization design, boosting the corporate center's effectiveness and efficiency and designing performance-management systems.
Examples of our work
- A fast-growing Asian independent oil company wanted to develop project delivery into a sustainable competitive advantage. With our help, it built the necessary cross-functional organization, culture, and capabilities while continuing to execute projects worth $3 billion. All these projects were delivered on time and on budget, and with an additional $500 million in accrued savings.
- After 30 years as a monopoly player, a national oil company was suffering from massive underinvestment. We helped it transform its performance and health for success in a modern deregulated market. Two years after the transformation began, upstream oil production had risen by 24 percent, refining yield by 4 percent, and fuel-station sales by 10 to 30 percent, while distribution costs had fallen by 10 percent.
We invest heavily in developing proprietary tools, databases, and methods to help clients analyze and compare their performance and build capabilities quickly. They include:
- Our Organizational Health Index is a means of measuring a company's health and benchmarking it against 50 oil and gas peers and 800 companies in other industries.
- Our International Upstream Production Performance Benchmarking helps companies make an objective assessment of their comparative performance, including production efficiency at an asset level. The database has unrivalled coverage, including detailed data from 200 assets from across the world.
- Our Upstream Workforce Benchmark helps companies compare their technical and operational headcount against peers to help inform transformation programs.
- Our Overhead Benchmarking Initiative is a tool for benchmarking general and administrative functions based on data from more than 1000 companies.
- Our OrgLab digital tool allows you to rapidly visualise and analyse your current organization as well as providing the ability to dynamically generate and test options for redesign.
- Our Oil and Gas Merger Management Toolkit captures all we have learnt from supporting the largest mergers in the industry over the past two decades. The toolkit includes integration boot camps, Day 1 checklists, draft integration plans and insights on typical value capture opportunities.
- Our McKinsey Capability Building program provides training and coaching to help clients apply best practices for themselves.