how hr is transforming petrofac to be the world’s most admired oilfield services company
DESCRIPTION
People and their capability are at the core of Petrofac’s growth strategies and a key source of “the Petrofac difference”, i.e. its competitive advantage. In an industry where talent shortages are the norm, excellence in identifying, developing and retaining people is no longer good-to-have but a strategic business priority. To transform from a reliance on “buying” expensive talent to excelling in developing it, HR at Petrofac is shaping and driving this strategic business direction ahead. Making the transition over time will result in an agile learning organisation that drives continuous development at every level. In this case study, Michael will share the journey of transformation to date and outline the business drivers behind the strategy. He will demonstrate HR’s strategic role, key achievements and hurdles, as well as the success stories and challenges lying ahead. Michael Schulz, Senior Vice President - Human Resources, PetrofacTRANSCRIPT
HR Transformation… Science or Art?
HR Summit and Expo 2014
The Petrofac difference
• We have a strong safety culture, both for our people and for our
assets
• We are focused on oil and gas, predominantly upstream
• We provide deep competency and operational excellence to
upstream asset owners
• We deliver life of asset services with flexible delivery solutions
• We emphasise local delivery and capability – we will train and use
local resources
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Local delivery, customer focus, commercial flexibility
18,000 Employees
29 Countries
33 Years
6.3bn 2013 revenue
(US$)
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Our Vision: To be the world’s most admired oilfield service company
Our heritage
• Petrofac is the largest UK-
listed service provider to
the international oil and gas
industry
• The Middle East is our
heartland
Our capability
• Our capabilities span the oil and
gas value chain
• We provide our services as
standalone offerings but also offer
our capabilities as integrated
services
• Ranked number one EPC
contractor for the last 4 years in
Oil and Gas Middle East
Life of asset services; flexible delivery solutions
Business development
tied to strategy
Focus on priority prospects
to increase win rate
Integrated approach
to sales across
business units
Systematic and
nimble approach to project
delivery
Balanced use of
low-cost centres and
value engineering
Collaborative delivery
of projects across
business units
Who delivers work Global performance
management process Common performance and
management framework applicable to all business units
Resourcing : Process/Systems/Selection Standard/EVP
HR Capability
People Development: Talent
identification/L&D/Succession
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Vision 2020: The people dynamic
Given our growth ambitions, we make the transition from an employer heavily reliant on
external recruitment to one known for developing and progressing internal talent
Resourcing
Learning
&
Development
Leadership
Development
Demand Planning
Graduate
Development
Succession
Planning
Planet HR 2012
Performance
Management
We operate:
In 7 different Business units
In over 20 different HR functional
locations
With over 6 different HR management
systems
With over 204 HR personnel.
The “Puzzle”:
• Is not responsive enough to changing
business needs and speed
• Has weak links between activities such
as recruiting & demand planning,
reward & development…
• Is Administratively intensive
• Is Cost Constrained
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Compensation
&
Benefits
Organization
effectiveness
& Change
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CORPORATE VISION, CULTURE & STRATEGY
Alignment
TALENT STRATEGY, ORGANIZATION & DEMAND PLANNING
Alignment
Stra
tegy
Compensation & Benefits
Performance
management
Talent Acquisition
Learning & Development
Executive Recruitment
Organization Design/ Development
Succession Planning
Leadership & Team Development
Employee Engagement & Retention
Pro
cess
COMPETENCY DEFINITION & ASSESSMENT
Support & Sustain
Co
mm
on
La
ngu
age
SYSTEM ENABLEMENT
Support & Sustain
Scal
abili
ty
Adapted from THENEWMANGROUP A FUTURESTEP COMPANY
Desired Future state
HR Capability and structure (hub)
HR Capability and structure (hub)
Performance Management
Leadership Development
Talent Planning & Acquisition
+ Embed the way we manage
performance, systemise it and create
a differentiating link to reward
- Appraiser skills ( objectivity,
evidence base, difficult feedback)
+ Petrofac Pathway
+ Development programmes for
supervisors, managers & leaders
implemented
+ e-Learning system
- Individual learning
- Learning progress
- PDPs
- TNA capability in businesses
+ More standardized global
process for talent
identification
+ Senior succession planning
- Develop employees
- Demand planning
Corporate vision, culture & strategy
Development of HR capability for generalists, specialists, transactional HR professionals consistently across the different businesses/product lines, both for HR professionals and line managers
Alignment
Support
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Compensation & Benefits
+ Global mobility policy
- Relevant and ongoing
external benchmarking
- Speed of adjusting variable
pay to changing needs
Desired Future state
Science or Art or else : A personal Leadership
Challenge
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“If the wind will not serve, take to the ores”
“10 years from now, you won't be remembered for the targets you hit and the
numbers you achieved. You'll be remembered for the lives you touched, the
people you inspired and the talent you spotted”
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Its not business as usual
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Respect each other and refrain from
disputes; you should not, like water and oil,
repel each other, but should, like milk and
water, mingle together”
Buddha
Collaboration: Listen, learn and the power of
why?
Geoscientists Needed
Geoscientists
Available
Worldwide O&G
Production, MMB/Yr
The power of metrics
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“You can discover more about
a person in an hour of
play than in a year
of conversation. “
Plato
Empathy & Discovery
“I like to listen. I have learned a great deal
from listening carefully. Most people never
listen.”
Ernest Hemingway
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Understand cultural & political
differences and act wisely upon them
Geopolitics
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The purpose of a storyteller is not
to tell you how to think, but to give
you questions to think upon
Brandon Sanderson, The way of
kings
After nourishment, shelter and companionship, stories are the thing
we need most in the world”
Phillip Pullman, Author
Story telling
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“Simplicity is the ultimate
sophistication. “
Leonardo DaVinci
Simplicity
“The force of his own merit makes his way”
William Shakespeare
….Enough said, you’ve got to be
good at what you do…
Science & Art or…
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