This practical, intensive five day course aims to provide participants with a solid grounding in the principles and practices of business management that are essential in oil & gas organizations, when moving from an operational to a more strategic role. Where operational management is about implementing plans with known parameters, strategic management is about exercising judgement in complex environments where there is no ‘one right way’. This course provides the tools and processes that ensure that these judgements are based on sound thinking. Specifically designed for the oil & gas sector, the program is directed and facilitated by two leading international consultants who have direct and extensive working experience as executives in the industry, assisted by guest speakers who will discuss additional key issues affecting the industry in Asia and beyond. This program’s uniqueness comes from it NOT being just another overview of the industry but focused on the essential business management skills for the sector.
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PROGRAM OUTLINE
THE STRATEGIC CONTEXT
PROGRAMME INTRODUCTION
THE OIL & GAS INDUSTRY IN 2015
A review of the trends and issues facing the strategic future of
the oil & gas industry today to give context to the course and the
key business drivers that need to be addressed for success in the
future.
• Upstream & Downstream Trends
• Demand & Supply
• Outlook and implications
STRATEGIC THINKING
The practice of strategic planning and strategic thinking used in the
industry that underpins decision-making.
Participants will learn the core tools and approaches for strategy
development and work in small groups to apply them to their own
organization’s near term strategic plan.
• Strategic Planning & Strategic Thinking
- Trends and developments in strategic analysis and
organizational change
• Strategic Analysis Tools
- Exercises in the use of SWOT (Strengths, Weaknesses,
Opportunities & Threats), PESTLE (Political, Economic, Social,
Technological, Legal & Environmental), scenario development
and environmental scanning relating to the oil & gas sector
- Measuring performance through the Balanced Scorecard
• New Approaches to Strategy Development
- Using Systems Thinking and Large Group Participation processes
in strategy development and implementation
• Organization Strategy
- Developing a strategic focus for the industry, region and
participants’ own organizations
Morning Session | 08:30 - 12:00
DAY 1 - Monday 26th October 2015
Afternoon Session | 13:00 - 17:30
ESSENTIALS OF FINANCE
This module provides a firm understanding of the essential aspects
of finance and business accounting used in the oil & gas industry to
target, measure and manage financial performance.
This module is focused on expanding the financial awareness and
competencies of all staff who have an involvement with financial
information so they can contribute to the making of better value-
added decisions in their companies.
The competencies emphasised include the necessary basic finan-
cial and accounting knowledge, the analytical skills needed to
review financial information, and the ability to ask pertinent ques-
tions and then make good recommendations on the basis of the
data analysed.
The module starts with a review of the financial language and the
accounting basics, and explains the full scope of how financial
analysis and accounting are interrelated.
It explores how a clear understanding of the nature of the three
cycles of financing, investing and operating a business will help
the participants, from all disciplines and backgrounds, to make im-
provements in their own businesses.
• Corporate Objectives and Framework
• Financial Skills: Importance, Skills Framework & Course Focus
• The Three Cycles of Business
• A Performance Management Model for an Oil & Gas Company
• The Balanced Scorecard in detail
• The Performance Management Language 1: Accounting
Basics & Key Measures
• Accounting Exercises: A series of short questions on profit and
cash flow, requiring fairly straightforward calculations
• Profit Measures
• Cash Flow and Working Capital
• Introduction to Gusher Oil: First Financial Decision Making Case
Study
Evening Session |
FREE
There are no programs scheduled in the evening.
“Very good. Relevant & Educationals”
- Liam Powell, Rig Manager, Seadrill
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REVIEW & DEVELOPMENT OF TODAY’S INPUTS & LEARNINGS
PROGRAM OUTLINE
MANAGING PERFORMANCE
PERFORMANCE MANAGEMENT
This module focuses on understanding the key business drivers of
performance in the oil & gas industry, and how to use tools, indica-
tors and measures to target and monitor progress and achievement
of the key factors that determine financial and business success.
• The SFS (Standard Financial Summary): A standard technique for
the presentation of financial information, whether for a business/
operating unit, or in support of a capital investment proposal.
• Oil Industry Cash Flow Case Study: A multi-stage exercise for
delegates, illustrating initially the impact of inflation and then
volume changes on the 3 key financial statements, and especially
on working capital and cash flow.
• The Performance Management Language 2: ROACE, Ratios &
KPIs (Key Performance Indicators)
• Ratio Exercises: Series of short questions on KPI/Ratio
calculations
• WYMIWYG (What You Measure Is What You Get)
• Industry High Level KPIs
• Benchmarking of Financial Performance and Analysis of Sector
Attractiveness
• Operational Benchmarking
Morning Session | 08:30 - 12:00
DAY 2 - Tuesday 27th October 2015
Afternoon Session | 13:00 - 17:30
PERFORMANCE LEADERSHIP
Complementing the module on managing business performance,
this module addresses the need for business leaders to be able to
deliver results through people by investigating the personal factors
that drive high employee engagement and performance.
• Influencing the Factors that affect Performance
- Determining the critical factors to leverage improvement
• Employee Competence, Motivation & Engagement
- The basic principles and new developments in employee
engagement
- Working within industry norms and organization policies
• Team Dynamics & Cross Functional Working
- How to leverage expertise and synergies in project teams
- Understanding functional and other cultural influences on
behaviour
• Ready-Aim-Fire: Strategic Problem Solving & Decision Making
- Balancing teams to ensure creativity, analysis and
implementation
- Self assessment Questionnaire: Team Process Roles: implications
for problem solving and for other teams
- Leading and building teams for high performance
Evening Session |
FREE
There are no programs scheduled in the evening
“Excellent grounding in the financial and people skills
required to work in a dynamic and complex industry“
- Alex Storer, Senior Reservoir Engineer,
Mubadala Petroleum (Thailand)
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PROGRAM OUTLINE
DEVELOPING THE ORGANIZATION
LEADING THE21ST
CENTURY WORKFORCE
This module will provide an insight into the participant’s own
personality and leadership style and help them to develop an
authentic approach that will allow them to take the role of
respected leaders in the industry.
They will develop an understanding of current trends and leader-
ship practices and enhance their emotional intelligence to be able
to drive success.
• Personal Leadership & Management Style
- Personal Style inventory to identify individual style and approach
- Participants receive a personalised report on their style prefer-
ences, including implications and development guidance for
effective leadership
• Generation X & Generation Y
- How to manage and meet the specific needs of the new
generations in the workforce
• Providing Purpose & Direction
- Developing personal and organization vision
• Developing Employee Capability & Capacity
- Using coaching for development
- Identifying personal opportunities for staff development
• Remote & Virtual Teamworking
- Exercises and case studies in working in ad hoc project teams
- Using technology to overcome barriers to effective working in
non-face to face situations.
• Coaching to High Performance
- Practical exercise in the use of a simple coaching model to
improve individual performance
Morning Session | 08:30 - 12:00
DAY 3 - Wednesday 28th October 2015
Afternoon Session | 13:00 - 17:30
MANAGEMENT OF CAPITAL INVESTMENT
Capital Investment Decisions are typically amongst the most critical
for the success of any oil/energy company, not just because they of-
ten involve the commitment of very large sums of money, but also
since they dictate the operating infrastructure, and thus set the
boundaries for short term performance potential, for many years
to come. They are also almost always irreversible without incurring
major associated financial penalties.
These facts require that the skills of senior managers, as
well as specialist supporting staff, in these areas are highly
developed: in short, to ensure that the organization not only “Does
The Right Projects”, but also “Does The Projects Right”.
• What is Capital Investment?
• The Cost of Capital: Simple theory and practical application
• The Time Value of Money/DCF (Discounted Cash Flow) Basics
• DCF Exercises: A series of short questions on DCF and NPV (Net
Present Value) calculations for the Upstream and Downstream
• Upstream E+P Life Cycle NPV Case Study
• A Standard Evaluation Methodology/The Level Playing Field
• The 4 Key Economic Indicators
• Gusher Oil : 2nd Financial Decision Making Case Study
• Defining the Right Base Case: How to ensure it is the best of
those available
• The Critical Second Scenario: What if I Don’t Do the Proposed
Investment?
Evening Session |
FREE
There are no programs scheduled in the evening
REVIEW & DEVELOPMENT OF TODAY’S INPUTS & LEARNINGS
“Introspective and educational”
- Ed Collins, Team Lead
PNG Operations, Talisman
Delegates’ feedbacks on the level
of usefulness and application of
information and ideas gained at the
training
RATING OF APPLICATION OF
LEARNING
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REVIEW & DEVELOPMENT OF TODAY’S INPUTS & LEARNINGS
PROGRAM OUTLINE
MANAGING RISK&LEADING CHANGE
MANAGING RISK
This module addresses the fact that in business, and especially in
the energy industry, the future is always very uncertain, and major
decisions cannot be reduced to simple formulae e.g. a positive NPV
means you automatically approve an investment.
An oil company must ensure that it has in place a rigorous
methodology for appraising investment decisions, to ensure that
risks have been understood as fully as possible and to maximise the
probability that the best investment choices will be made.
• What is Risk?
• Risk Management & Mitigation
• Gusher Oil: 3rd Financial Decision Making Case Study
• Sensitivity Analysis: A Standardised Approach
• Internal Risks
• Gusher Oil: 4th Financial Decision Making Case Study
• Alternative Evaluation Methods: is DCF the only valid and
effective technique?
• Project Portfolio Management: An ongoing process of maintaining
a portfolio of projects, often far bigger than can ever be afforded,
and ensuring that the best ones are selected / approved for
delivery, and the remainder kept alive, updated and competing
for potential later approval
• Analysis of Competitive Strengths & Weaknesses
• Where does the NPV come from?
• The Sources of Value, with Practical Oil Industry Examples: The
essential need to focus on, and quantify, sources of competitive
advantage in any investment proposal
Morning Session | 08:30 - 12:00
DAY 4 - Thursday 29th October 2015
Afternoon Session | 13:00 - 17:30
LEADING&MANAGING CHANGE
This module addresses the ability to turn strategy into action by
ensuring that the organization develops the capacity to implement
the vision.
The factors which limit the ability to change are identified along
with proven tools and techniques that help to deliver complex
change: for example project management along with the ability
to influence and negotiate win:win outcomes with internal and
external partners, without resorting to directives and position
power.
• Why Change Fails
• Organization Capability for Change
• Individual Responses to Change
• Overcoming Resistance to Change
• Introducing change through project management
- Project planning tools
- Project implementation skills
• Getting Results Without Authority
- Self Assessment Questionnaire on individual communication and
influence style
- Individual and group exercises to practise and enhance the
influencing and negotiation skills necessary to work effectively in
projects, in matrix structures and with external partners
• Stakeholder & Political Mapping
- Mapping individual working environments to develop a strategic
influence plan to increase personal impact
Evening Session | 18:00 - 19:30
NETWORKING DINNER
“This course exceeded my expectations”
- Pete Hansen, General Manager Subsurface
Development, Cairn Energy Ltd
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PROGRAM OUTLINE
Morning Session | 08:30 - 12:00
DAY 5 - Friday 30th October 2015
Afternoon Session | 13:00 - 17:30
FUTURE SEARCH
A final review of the trends and issues facing the strategic future
of the oil & gas industry, and the opportunity to develop some
individual and organizational responses that will deliver success.
• Individual, Functional & Corporate Visions
- Self-formed common interest groups investigate the themes
of the week and the implications for their own organizations
- Working together with their colleagues, they create visions
for the industry future, their functions and their organizations
• Presentation of Visions
- Group presentations of their visions for the industry future, their
functions and their organizations
PERSONAL ACTION PLANNING
Participants devise a ‘re-entry plan’ for their return to their
organizations to share their experience and enact specific action
plans for immediate implementation or further development.
• Application of Learning to Personal Reality
- Participants consider their learning during the week and review
their personal and organizational learning logs in order to identify
specific areas where they can add value to the organization and
their function
• Individual Action & Development Plans
- Personal implementation plans to put into effect short, medium
& long term actions in their own working environment
- Identification of further learning & development needs and plans
for addressing them
• Sources of Support & Further Development
- Participants identify and contract with each other to provide
continuing support and challenge on return to their organizations
forming LinkedIn and other support networks
• Presentation of Awards & Certificates
OPPORTUNITIES FOR THE FUTURE
MANAGEMENT OF WORKING CAPITAL
In the past many oil companies gave limited attention to the
management of cash flow, and in particular of working capital, in
all its forms: stocks, stores, debtors and creditors, each usually with
several components.
In recent years there has been growing recognition of the signifi-
cant potential for improved financial performance from better
management of working capital - both directly from the immediate
release of cash and indirectly by improving the return on capital
employed.
Following the dramatic increase in oil prices (with working capital
now accounting for over 1/3 of capital employed for many oil com-
panies, and over 50% in Downstream), effective working capital
management has become critical to the achievement of acceptable
levels of financial performance.
• Optimise not Minimise
• Gross Working Capital Concept
• Key Issues and KPIs
• The Cost of Working Capital: Long Term and Short Term
• The Working Capital Toolkit, with examples of its practical
application
• Working Capital Toolkit Exercises: Several short questions,
requiring the application of the appropriate Cost of Working
Capital to the evaluation of a wide range of typical oil industry
working capital decisions (covering debtors, creditors, stocks
and stores)
SPECIALIST FINANCIAL SKILLS
With increasingly rapid change and intense competitive pressures,
successful companies must ensure that their managers commit
to the primacy of value generation and possess the necessary
financial understanding and skills to enable all their decisions to be
soundly based and have the best chance of maximizing corporate
value. This includes an awareness of the importance of a number
of specialist financial skills and when to call in appropriate experts.
This module attempts to demystify the often apparently complex
world of finance and make it more accessible and applicable in day
to day business management in all functions and at all levels.
• The Finance/Treasury Function
• The Range of Specialist Financial Skills
• Valuing Companies/Acquisitions + Divestments
• Oil Industry Acquisition Case Study: Delegates are given
a copy of a spreadsheet, showing the calculation of the NPV of
a proposed acquisition in the oil industry together with a note
summarising the project and some key assumptions. Delegates
are asked to review these and recommend what the bid price for
the target company should be: the calculated NPV or a different
number?
• The Financial Skills Ladder Revisited and Follow-Up
We work with global Oil & Gas companies to design and deliver
training programmes in-house. This 5-day Executive Development
Program can be further tailored to meet your internal talent
development initiatives in a cost-effective way.
For more information please contact Malina Raman on
+65 67419927 or email malina@asiaedge.net.
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Delegates’ feedbacks
• 73% found it very effective
• 27% found it fairly effective
PAST DELEGATES RATING ON
THE EFFECTS ON TRAINING