Collaborating for success
20 solutions for improved collaboration
Effective and innovative collaboration is critical in maximizing the potential across the oil and gas value chain.
The significant cost inflation in the oil and gas industry over the last decade has had serious consequences for both customers and suppliers on the Norwegian Continental Shelf (NCS). Market fluctuations in the oil price have put further pressure on companies’ income, margins, and on maximizing shareholders’ value.
Challenges and solutions go beyond organizational boundaries
Many of the business challenges behind the cost inflation span organizational boundaries, sometimes even the whole oil and gas value chain. Solutions too, must go beyond the organizational borders and happen at the intersection of two or more players. Industry collaboration is therefore recognized as a key enabler for solving a number of cost challenges.
Challenges with improving collaboration
Despite increasing focus on collaboration, working practices on the NCS have not changed significantly over the past few years. Industry leaders we have spoken with, frequently acknowledge that leading change in this area is challenging, both internally and across the oil and gas value chain. Leaders have repeatedly said that to make change happen there is a need for new and innovative ways of cooperation as well as knowledge of effective tools and actions.
“The key point in disciplined collaboration is to start with the end in mind: the goal of collaboration is not collaboration, but better results... you should only collaborate when it is the best way to improve performance”
(Morten Hansen, Berkeley and INSEAD)
Front-end loading and leadership
In our experience collaboration can only be achieved with sufficient investment in front-end loading and leadership transformation. Instead of focusing solely on processes and protecting boundaries of their own organizations or seeing interfaces as a problem, leaders in the oil and gas industry need to see value in cross-organizational boundaries. Customers and suppliers need leaders who understand collaboration and are able to build a collaborative culture both within and between companies.
The following article will provide a better understanding of some of the key challenges and introduce 20 practical steps that can be taken in order to unlock value through innovative and effective collaboration.