Future of Energy Industry - how to solve talent crisis - HR trends keynote speaker


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Future of energy industry in Asia. How HR innovation will solve talent shortages to fill key posts and ensure energy industry projects are completed on time. Keys to change management, motivation, better team performance, lower staff turnover, fewer vacancies and more agile workforce. How to attract the best talent from competing energy companies. Future of oil and gas industry. Shortage of skilled workers in alternative energies, coal, gas, nuclear power. Strategies for a more sustainable future. Patrick Dixon is a conference keynote speaker and co-author of SustainAgility. Presentation for Urban Forum in MalaysiaEvery HR challenge and every HR-related global trend is related in our increasingly hyper-connected world so it is hard to list just three challenges in isolation. Here are three issues that closely mesh together.

1. Rapid changes in the global energy markets
2. Rapid changes in national energy strategies in Asia
3. Rapid changes in Asia labour markets / urban migration / demographics

The fact is that global energy strategies, which must be built on related HR strategies, are being overtaken by events. The world is changing faster than you can hold a board meeting. A 20 second earthquake in Japan triggered a 40 year change in energy policy in Japan and Germany with far reaching global consequencies for the oil and gas work force. That means a completely new approach to strategy: the days of having only one strategy are over. Agility requires parrallel strategic thinking.

2. The O&G/Energy industry by its nature tends to recruit and promote technical and professional specialists into managerial and leadership positions because they are experts in their specialist subjects, but quite often their leadership/management capabilities are left underdeveloped. This can result in highly logical managers being very good with numbers and science but not particularly good at the things which motivate and encourage people. What are your thoughts on this?

The challenge happens both ways round: world-class specialists with less developed leadership skills, and world class leaders with less developed specialist understanding. We need both. Oil and gas industry leaders can learn from other industries such as law, accounting and financial services where history has proven how dangerous it is to build organisations on data , elaborate forecasts and so on, without close attention to how team members feel, whether they believe in what they are doing, and whether they like being at work.

I work with many groups of highly analytical leaders to develop their wider people skills. The key is to help each leader understand (often to their surprise) just how often their own personal, day to day decisions are influenced by “soft” emotional factors, and how they can use that understanding to achieve outstanding team performance.

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Future of Energy Industry - how to solve talent crisis - HR trends keynote speaker

  1. 1. SustainAgility Developing agile teams in the energy industry to drive profitable growth in a rapidly changing world Dr Patrick Dixon Chairman Global Change Ltd
  2. 2. Talent  shortages  are  nothing   new  but  now  impact  82%  of   energy  companies  globally    Companies  and  governments   need  to  work  together  for   sustainable  and  secure  future
  3. 3. US  energy  age 50%  of  skilled  workers   will  reAre  in  5-­‐8  years 40%  of  nuclear  workers Similar  in  EU  /  other  regions  
  4. 4. Asia-­‐Pacific talent  shortages  in most  industries
  5. 5. Build  or  Buy  or  ............ • BUILD  -­‐  “grow  own  )mber”  -­‐  can  be  too  slow   and  once  trained,  best  people  likely  to  be   poached  or  become  very  expensive  to  retain • BUY  -­‐  compe)ng  globally  for  a  few  people!
  6. 6. Future of HR is about EMOTION
  7. 7. Life  is  Short     do things you really believe in
  8. 8. Big strategies often overtaken by events World can change faster than you can hold a board meeting
  9. 9. Wild  Cards:  Risk  Management
  10. 10. • Click  to  edit  Master  text  styles
  11. 11. AGILITY means   more  than   one  strategy  
  12. 12. Shale gas 33% US supplies 3.3m US jobs $468bn pa + more oil produced than Saudi by 2020 200 years global supply Up from 60 years in 5 years
  13. 13. • Click  to  edit  Master   text  styles
  14. 14. Boom Bust
  15. 15. 5  coal  plants  replace  with  gas  =  9000  megawa>s  wind   Coal  prices  fall  =  more  coal  burnt  in  Vietnam  and  China 57  coal  plants  closed  in  US  in  2012  
  16. 16. $40 Trillion Green Tech Boom driven by oil price, cost cuts, green activism
  17. 17. 120,000 terawatts of sunlight /day QUEBEC  from  ARIZONA 7,000 times total power use MOSCOW  from  SAHARA
  18. 18. Solar  cell  generaAon  cost  parity  
  19. 19. Falling  solar  cell  prices  
  20. 20. “40%  E terawatts of sunlight /day 120,000U  power  =  wind  by  2050” Surplus  wtimes total global  to  methane  ?   7,000 ind  to  hydrogen  -­‐ power use Power Moscow from Libyan Desert
  21. 21. Growth  +  Cuts  in  Nuclear   — Challenge  to  achieve  carbon  reducAon  AND  cut  nuclear — Wild  card  =  dirty  terror  bomb  or  another  meltdown — Most  nuclear  industry  workers  will  reAre  in  5-­‐10  years
  22. 22. Smart  Power  RegulaAon   UAlity  Co  controls  consumpAon  in  homes  /  factories 10%  Australian  power  generaAon  only  used  for  72  hours  a  year Energy  prices  can  soar  from  $50/Mw  hour  to  $10,000/  Mw  hour
  23. 23. Germany  Power  Surplus • In  June  2013 • Electricity  prices  became  negaAve   • -­‐  minus  EU150  /  MWhr  !!
  24. 24. Power  Storage   Enough salt caverns planned to power Germany for a week
  25. 25. • Rapid growth HVDC Super Grids • 500,000 S Korea jobs - $200bn Smart Grid Project • China planning to power Moscow
  26. 26. PEOPLE HR  development  needs  to  be   as  agile  as  energy  trends  and   generaAon  M  -­‐  protecAng  and   redeploying  talent  through   booms  /  busts
  27. 27. Text
  28. 28. How  many  seconds  do  you wait  for  web  page  to  load  ?
  29. 29.                
  30. 30. AGILE  CAREERS RotaAng  high  fliers  through   variety  of  stretching  jobs  in   different  sectors  and  regions  to   create  agile  leaders  for   tomorrow  
  31. 31. AGILE  TRAINING fast-­‐track  for  flexible,  agile  roles
  32. 32. IMAGE How  do  they  feel  about  energy  industry  ?
  33. 33. 1  trillion  pages                  a  month
  34. 34. HIGH  SCHOOL   PromoAng  engineering  and   energy  industry  as  exciAng,  agile   ways  to  create  a  beier  world
  35. 35. UNIVERSITY PARTNERSHIPS Radical  approaches,  Sponsoring   courses,  individual  students, work  placements,  more   PhDs  and  research  departments
  36. 36. Europe  is  Dying     4 couples needed to produce just one greatgrandchild
  37. 37. 300 million move to cities in China and 475 million to cities in Africa by 2030
  38. 38. >40%  WDP  by  2015 — IMF - adjusted for Purchasing Power Parity
  39. 39. >70%  rise  energy   demand  will  be  in  Asia
  40. 40. 3.6m  engineering  graduates  a   year  in  China  by  2015 • Even  if  only  20%  “employable”  in  global  market,   China’s  output  is  now  larger  than  US • More  Brazilian  engineering  PhDs  than  US  by  2016 • Challenge  to  LOCATE  and  ACCESS  talent  in   unfamiliar  emerging  markets • Barriers  of  language,  culture,  willingness  to  move,   immigraAon  controls  etc • (Accenture  Inst  for  High  Performance  2011)
  41. 41. Most  STEM  graduates  in  emerging  markets  
  42. 42. China  and  India  dominate STEM  degrees   including  post-­‐graduate  /  PhDs
  43. 43. STEM  degree  holders  in  US
  44. 44. AGENCIES Global  market  -­‐  opportuniAes   for  pro-­‐acAve,  dynamic,   visionary  and  rapidly  adapAng   Specialist  Talent  Agencies
  45. 45. MENTORING CONSULTING by  older  workers
  46. 46. Diversity  in  workplace  means   larger  talent  pool  yet  87%  of   companies  with  talent  shortage   are  not  acAvely  looking  for  new   sources  of  talent   Manpower  Research
  47. 47. Diversity  linked  to  higher  sales,  market   share  and  profits,  as  well  as  recruitment
  48. 48. 85%  of  leaders  of  largest  US   corporaAons  say  diversity   is  key  to  innovaAon Forbes  study
  49. 49. Women  are  outperforming  men     Urban Tribal • 60%  US  /  EU  graduates • 40%  primary  earners • Most  women  leave   corporaLons  early • Solve  talent  shortage
  50. 50. Toxic  Testosterone  Culture    
  51. 51. Fit  around  Complex  Homes •Young  children •Dependent  parents •Double  careers •Double  shiB  paCerns •Divorce  /  separa)on
  52. 52. Balance  usually  about  people  
  53. 53. Reproduce  own  image Tend  to  recruit  people  with  familiar  name,   voice,  accent,  personality,  culture,  appearance
  54. 54. Agile  answers  to  talent  crisis • Treat  as  board  strategic  issue  requiring  rapid  acLon • Invest  heavily  in  in-­‐house  training  and  fast  track  development • Promote  cross-­‐business  training  /  broader  experience • Ensure  be>er  career  paths  /  conLnuity  between  projects • Allow  diverse  career  pa>erns  eg  part-­‐Lme  /  home  working • Re-­‐posiLon  older  /  reLring  team  members  incl  mentoring • CreaLve  partnerhips  with  UniversiLes  +  placements • Industry-­‐sponsored  PR  campaigns,  partnered  with  government • Teams  of  non-­‐specialist  leaders  supported  by  specialists • Recruit  people  who  thrive  on  rapid  change  and  ambiguity Built  on  a  four  word  phrase.....  
  55. 55. Building a Better World Energy industry is vital to our future —For  individuals —For  family —For  community —For  whole  earth
  56. 56. SustainAgility SLIDES + VIDEOS globalchange.com Dr Patrick Dixon Chairman Global Change Ltd