With the oil and gas industry in the midst of the biggest downturn the industry has seen the 1990s if not earlier, the leaders are under growing pressure to successfully execute their increasingly fluid strategies. For some, the need for the right actions and right behaviours are paramount if their firm is to survive.
The path to “Excellence in Execution” now includes adopting new technology to become more agile and adaptive to these changing times, whilst strengthening the existing traits that presently facilitate execution of strategies.
Firms are now faced with regularly adjusting and executing two strategies:
- Corporate strategy (where the firm is going long term i.e the VISION)
- Business strategy (how the firm competes in an increasingly competitive industry)
For the most, survival will depend on how well they can execute their business strategies in 2016 and 2017. The corporate strategy is somewhat a longer-term issue.
Some of the most common business strategic themes of 2016 are:
- Capital Management / strategic spend
- Expense management / Financial discipline / Margin preservation
- Operational Excellence / Performance Optimization
- Production optimisation
- Asset management (optimizing maintenance and life cycle costs)
- Innovation / Technology adoption – enhanced efficiencies
- Cultural adjustments – cooperation, behaviours
- Cultural mandates – Execute with Excellence
Some of the most common corporate strategic themes of 2016 are:
- M&A Growth
- Divestiture of business units / assets
- Alliance and Partnerships
- Positioning for the future
- Fleet / Asset restructuring
Big Data and Evidence Based Management techniques are the new hot topic, which can and will make a difference to how effective some of these strategic themes will be.
THE SILENT BUT VERY EXPENSIVE AREAS OF LOST VALUE
An area that often goes without mention is the lost value between the intent of a strategy and the reality of the strategic results at the year-end or strategic period, quarterly, monthly or other.
Further value is lost as firms fail to adjust their strategies frequently enough to cater to changes in the strategic drivers or the actual effectiveness of a given strategic theme.
In short a lot of value is lost as firms implement and execute their prescribed strategies, using present day tools and methodologies of the past.
Many organizations today still get lost in the execution, not through their lack of capabilities but the absence of full alignment, ownership, accountability, understanding, focus and the inability to drive the actions and make dynamic adjustments based on the hard facts of progress.
According to the Economist[i] who surveyed some 587 global executives, only 56% of strategic initiatives are successful. Some 61% of the executive’s acknowledged that their firms struggled to bridge the gap between Strategy formulation and implementation.
Presented with these figures and the state of the Oil and Gas Industry, it is now perhaps time to consider how to enhance Strategy Execution by using the latest collaboration and business intelligence tools, as part 2016/2017 strategy initiatives.
“It’s not rocket science – it’s simply a matter of having the right tools to ensure the reality of the results and progress are visible and acted upon throughout all phases – implementation, execution and strategy adjustment.”
About Fennex Solutions
Fennex Solutions has developed highly adaptive, effective and simple cloud based platforms to enhance strategy execution for all sizes of firms, business units or facilities. Using Microsoft’s collaborative and business intelligence products these platforms will ensure you never lose sight of your strategy’s progress again.
The platform is adjusted to suit your specific strategy, objectives and actions and deployed within weeks, with no high upfront or hardware costs.
Once deployed real-time dashboards and pre-built reports will ensure you and your team can effectively track all elements of the strategy execution, ensuring you get the maximum value from your chosen strategies, or if needed allowing you to effectively adjust the strategy accordingly to the live data and results.
Enhancing your process of Strategy, Implementation and Execution.
Gone are the days of excel and email to drive and track results.
Gone are the days were strategies fail due to:
- Inadequate formulation of actions
- Misunderstanding of the actions
- Poor alignment and commitment of the team
- Lack of focus on what really matters
- Cultural barriers preventing effective execution
- Poor governance and control in the absence of facts
For more information please visit our strategy execution page – click here