Driving operational performance in oil and gas

H o w E Y can he l p — achi e v i n g o p e rat i o n al e x ce l l e n ce
EY’s Oil & Gas professionals can work with clients to develop, design and implement operational excellence programs. Our Operational
Excellence team is composed of advisors with experience in engineering, plant operations, maintenance reliability, HSE, supply chain,
s t rat e g y an d o rg an i z at i o n al chan g e w i t hi n o i l an d g as .
Through our closely linked Transactions Advisory, Tax, Fraud Investigation and Dispute Services, and Advisory service teams,
co u p l e d w i t h o u r g l o b al t e am o f m o re t han 10, industry 000 professionals, EY is equipped to provide independent support and advice
t o o u r cl i e n t s t o e n ab l e t he i r g ro w t h i n a chan g i n g l an d s cap e .
1. Integrated business and
activity planning
A t t he f o re f ro n t o f o p e rat i o n al
p e rf o rm an ce i s t he n e e d t o t ran s l at e
l o n g - t e rm b u s i n e s s s t rat e g i e s i n t o
s ho rt - t e rm an d m e d i u m - t e rm
o p e rat i n g p l an s .
Key challenges
• ►Sponsorship and maturity: Success in any endeavor starts with executive sponsorship
an d a cu l t u re t hat s u p p o rt s an d u n d e rs t an d s t he o b j e ct i v e s .
• ►Strategy and framework: To prevent value leakage from siloed thinking that often
o ccu rs f ro m i n cre as i n g o p e rat i o n al co m p l e x i t y , o i l an d g as co m p an i e s m u s t e s t ab l i s h
clearly defined and well-understood connection and integration points among the
s t rat e g i c p l an n i n g l e v e l s .
• ►Translating strategy to operations: The enterprise strategy needs to be effectively
translated into quantitative and actionable business unit and functional goals and
t arg e t s t o f aci l i t at e p l an n i n g , b u d g e t i n g an d s t e w ard s hi p p ro ce s s e s .
2. Target operating model Key challenges
A t arg e t o p e rat i n g m o d e l d e s cri b e s n o t • ►►Siloed design architecture: Functions and geographies need to be fully integrated to
o n l y ho w p ro ce s s e s , p e o p l e an d s y s t e m s p ro m o t e co n s i s t e n cy i n cu l t u re , p ro ce s s e s , co n t ro l s an d t e chn o l o g i e s .
i n t e ract t o s u p p o rt t he b u s i n e s s b u t
• ►Unclear decision governance: Decision-making and delegation of authority underpin
al s o ho w t he y co u l d b e arran g e d an d
t he o p e rat i n g m o d e l an d s ho u l d i n cl u d e p o l i ci e s , p ract i ce s , co m m i t t e e s an d ru l e s .
prioritized to achieve optimum efficiency.
• ►Insufficient performance management: Many organizations are lacking a balanced set
of quantitative and qualitative performance metrics necessary to support the strategy
an d v i s i o n . I f m e t ri cs are p re s e n t , t he y o f t e n t e n d t o b e i n co n s i s t e n t l y m e as u re d ,
m an ag e d an d e v al u at e d .
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