The CEO of this oil business needed to unlock growth, raise performance across the organisation, and align the business model to achieve the ambition. The business was heavily focused on production volumes, but this was not translating into optimal commercial performance against a backdrop of owner requirements for dividend delivery.
We worked with the executive team and shareholders to reset the business around value creation and ambitions for the organisation. This included redesigning the organisational structure, clarifying accountability, defining a set of clear organisational principles aligned to value, and embedding the capabilities and ways of working needed to translate strategy into measurable outcomes.
As a result, the organisation shifted from a production-led model, measuring success in barrels, to a value-driven business focused on maximising overall commercial performance. This enabled the business to extract greater value from its existing assets and created a stronger platform for disciplined future growth.
Finding efficiency, building effectiveness
Our restructuring of the business into a lean, focused operator identified US$40m per year of efficiencies, eliminated duplication, improved processes and risk management, and created clear roles, responsibilities and ways of working. But efficiency is only half the story. Effectiveness is the other. The restructure included the introduction of a commercial team who could transform the value the business generated from its existing portfolio, as well as identifying opportunities for growth.
Targeting opportunity
We helped the business identify its true competitive advantages. Understanding where and how they could expect to win helped to profile the target assets that would deliver growth. Now, as well as being an efficient, commercially-minded operator, the business has a clear growth strategy and a roadmap to deliver it.
Strategy without effective implementation changes nothing. As experienced practitioners who have led change in major commercial players, we continue to partner this client as we roll out the change management programme and communications strategy we designed, driving the results they invested to achieve.