Meeting HR

Challenges through
Organisational
Transformation
Process in
Hydrocarbon Sector
June 13-14, Mumbai
Enhancing Competitive Capabilities in
Upstream Business Through
Restructuring (CRC)and Forward
Integration
Presented by
Dr A K Balayan
at
HR Round Table organised
by
ISPe & UPES, Dehrdun
To be a world-class Oil & Gas Company
integrated in Energy Business with
dominant Indian Leadership
and Global Presence
Vision
The Need for Change
Increasing Demand for Oil Products
Changing Regulations
Increased Competition
Maturing Portfolios
Environmental Concerns
People
Organization
Technology




Strategic Goals
To double accretion of initial in-place
hydrocarbons from 6 billion tonnes to
12 billion tonnes in next 20 years
Improving Global Recovery Factor from
28 to 40% by 2020
20 MMT per annum Equity Oil & Gas
equivalent from overseas by 2020 through
ONGC Videsh Limited (OVL).

Contd.
Strategic Goals
Monetisation & Development of small &
marginal fields
Upgradation of Technology & Systems for
Deepwater Exploration & Production
Upgradation of Technology
Emphasis on Safety, Health & Environment
(SHE)
Contd.
To ensure a strong balance sheet, ONGC
integrating vertically
All global oil & gas majors are vertically integrated along the
hydrocarbon value chain: E&P, ocean and pipeline transportation,
refining, fractionation, manufacturing, marketing, petrochemicals,
and in some cases, power generation
Vertical integration is essential
To safeguard against vulnerability of sectoral companies to
price volatility in the particular sector especially in E&P
(upstream)
To obtain stable cashflow by operating across the
asynchronous price volatilities in different sectors
To capture value in each sector
To obtain flexibility in transfer pricing
To cut out transaction costs
To enhance and retain market capitalisation, and
To secure sustained growth
Integrated majors have been merging to create super-majors in
order to minimise costs and to exploit global synergies
Collaboration through
People, Processes & Technology
Just do it right !


People are our greatest asset

Key New Imperatives

Alliancing/ Long-term contract for
sourcing Deepwater technology and
Drilling systems and EOR projects

Adoption and acquisition of best-in-class
and cutting-edge technology
Technology acquisition
Acquisition of one state-of-the-art
survey vessel
Acquisition of 2 ultra deepwater Drilling
rigs
Alliance with leading deepwater players
Long term open-ended contract with
globally established Service providers
Upgradation of Technology

Seismic Acquisition, Processing &
Interpretation (API)
Drilling & Workover rigs
Production Systems & Installations
MIS & Communication systems
Crisis Management Equipment
Total envisaged Investment to the tune of
Rs. 7500 Crore in 3 years period.
Project PROMISE (Professional Review
Of Major Infocom Systems &
Equipment)

To identify areas for improving operations &
performance of major Information Technology
(IT), Tele-communications and Process
Control Systems.


Initiatives
Project EPINET (Exploration &
Production Information NETwork)

Common E&P data model for integrated
solutions
Digitizing vital Geological & Geophysical
(G&G) data (Real wealth of ONGC) to avoid
degradation and ensure safety & security
Data Centre at 2 locations- Dehradun &
Mumbai- being set up
Initiatives
Project ICE (Information Consolidation
for Efficiency)

An organization-wide ERP Solution
covering all business processes of ONGC
on SAP R/3 platform with integration of
ongoing projects viz., KUBER, SHRAMIK,
IMMS & EPINET


initiatives
Restructuring
CRC formulated from lessons learnt through
Pilots of Organisational Transformation
Project (OTP) launched in 1997.
Launched with blessings of Honble Minister
(P&NG) on 20.8.2001
CRC roll-out complete Assets, Basins,
Services etc., in place
Corporate Rejuvenation Campaign (CRC)

Contd.
Restructuring
Time bound special groups/ assignments
in critical areas of operation:
New & marginal fields development
Deepwater Development
Gas Flaring Reduction
Mini Group Gathering Stations (GGS)
Alliancing
Corporate Rejuvenation Campaign
(CRC)
Contd.
Restructuring
Time bound special groups/ assignments in
critical areas of operation (contd.):
Efficiency improvement & cost reduction Corporate
Industrial Engineering (IE) Group
Offshore Supply
Corporate Logistics
Fire Services
Crisis Management Operation & Upgradation
HR- Improvement in performance of ONGC Schools

Corporate Rejuvenation Campaign (CRC)
Strategy for
Human Resources Development
HRD Processes
Revision of
Promotion Policy
Career path
Transfer policy
Incentive scheme
Multi Disciplinary Team working
Vision of a Collaborative Team
Team

An association of people with
complementary
skills who are committed to a
common purpose,
performance goals and
approach for which they hold
themselves mutually
accountable

(developing an asset)




Specific Focus
Specific Objectives
Shared Vision
Interdependent
Highly communicative
Asset / Basin Team
Objectives
Institutes
Multi
Disciplinary
Asset Team
Customers
Services
Collaboration &
team working
Regulations
Portfolio
Management
Fields / Blocks
Enabling Team Collaboration
Vision,
Objectives
& Strategy
Performance
Measures &
Incentives
Technology &
Competencies
Resources
People
Processes
Organisational
Structure
Culture
Collaboration in Asset Teams
Vision
Multidisciplinary Collaborative Teams
Effective Communication (Virtual Corporates ,..)
Easier sharing and exploitation of Data, Information,
and Knowledge-EPINET
Better Technology and Equipment
Upgradation of rigs, PROMISE etc
Integrated processes-ICE
Increased Co-ordination-Vichar series
Rich Support and Backup
(Expert Advice from Services and Institutes)
HR Practices
Committee of the Board on HRM
- with external Director as Chairperson

External reporting of the HR climate
- as part of the annual report

Social responsibility
- Policy for spending on Socio-economic activities

Encouragement to outstanding sportspersons
Enhancing Human Resource Capabilities
Knowledge Building

Upgradation of Qualification
- Unnati Prayas
Management development
- Inhouse and External programs
Technical trainings
-Inhouse and abroad
- focus on technology absorption

Enhancing Human Resource Capabilities
Knowledge Sharing
Partnership with Institutes
Planned job rotation and transfers
for executive development



Enhancing Human Resource Capabilities
Performance contracts with
quantified parameters
Assessment center for
competency profiling, succession
and development inputs planning
Stakeholders will increasingly
demand more information on:
HR measures
Environment

In future these may even become
mandatory
Whether standard HR measures
can be agreed upon for all
industries?
THANK YOU
Enabling Team Collaboration
Vision,
Objectives
& Strategy
Performance
Measures &
Incentives
Technology &
Competencies
Resources
People
Processes
Organisational
Structure
Culture