Oil and Gas Sector

The client:

A significant player in upstream oil and gas sector in the Asia Pacific region whose performance and share price had fallen off significantly, despite a growing market. In addition, some of the senior project leads had been headhunted to the opposition. As a result, the board had decided to appoint an interim CEO to begin the process of reinvigorating the business.

The brief:

The Board and CEO requested Desert Oak undertake an Organisation Effectiveness Review of its Australian and Asian operations to identify the root cause of the people and operational issues and advise on strategies to quickly address the situation. The brief included a review of a joint venture business in Indonesia.

Our approach:

The review found that the organisation had reacted to its under performance by increasing its focus on risk management. As a result, subtle but quite profound changes were made to the organisation structure, reporting and authority levels with the net effect being overly centralising decision-making.

To restore the organisations self-belief and stability and begin the process of cultural change we worked with the CEO to develop a new strategy story for how the organisation would work in the future. Based on our recommendation a flatter organisation structure was implemented supported by a more responsive corporate office culture and a new project governance system. This objective was to re-empower the large project leaders and their teams to sort out bottlenecks and quickly escalate more strategic matters for resolution. In addition a new talent pipeline was created to rebuild commercial capability inside the large project teams and a plan put in place to actively retain key talent.