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SPE 167395

Intelligent
Digital Oil Field
Implementation:
A Case Study of Change Management
Strategies to Ensure Success

Ahmad Al-Jasmi and Harish K. Goel, Kuwait Oil Company; and Soraya Sirikit Cerda,
Kevin Barry, Guillermo Velasquez and Steven Knabe, Halliburton
Copyright 2013, Society of Petroleum Engineers
This paper was prepared for presentation at the SPE Middle East Intelligent Energy Conference and Exhibiiton held in Dubai, UAE, 28–30 October 2013.
This paper was selected for presentation by an SPE program committee following review of information contained in an abstract submitted by the author(s). Contents of the paper have not been reviewed
by the Society of Petroleum Engineers and are subject to correction by the author(s). The material does not necessarily reflect any position of the Society of Petroleum Engineers, its officers, or members.
Electronic reproduction, distribution, or storage of any part of this paper without the written consent of the Society of Petroleum Engineers is prohibited. Permission to reproduce in print is restricted to an
abstract of not more than 300 words; illustrations may not be copied. The abstract must contain conspicuous acknowledgment of SPE copyright.

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SPE 167395

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Abstract
Vision
Change Management/People Side
Understanding the Change Position
Culture
WIIFM Factors
Process (Road Map)
Success is a Journey
Conclusions/Lessons Learned
Discussions and Appendices
SPE 167395

Abstract

1
Abstract

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Vision

Change
Management

Understanding
the change

Culture

WIIFM
Factors

Process

Success

Conclussions

Discussions/
Appendices
SPE 167395

Abstract

The successful implementation of a world-leading Intelligent Digital
Oil Field (IDOF) with a National Oil Company required extremely
careful and innovative management of the large-scale change which
arose from the project.
In particular, the ‘People Side’ of that Change Management was to
play a key role in embedding the project in the NOC orgainsation
and in turn making the multi-million US dollar project a success.
This paper begins by outlining the NOC expectations and describes
the steps and processes taken to initiate and mobilize the ‘People
Side’ of change in the IDOF project, and also does cover the Change
Management challenges used before the People Side focused
strategy was deemed to be the way forward.
Using a simple ‘People Side’ focused change methodology not
only ensured that the project was successful in terms of revenue
over capital expenditure (ROCE), but also began the process of
ownership and eased the adoption of the IDOF into the current NOC
organization.
The Change Management methodology described in this paper
was designed to cover and mitigate important challenges that are
relevant in driving the people side of change, particularly:
WIIFM – “What’s in it for me” scenarios
Culture - The way things are done around here
Success - Collaboration,Technology Leap Frogging, People, Oil Gains

“

“

Everyone thinks of changing
the world, but no one thinks
of changing himself.
Leo Tolstoy

The paper concludes by updating main successes, key lessons
learned, observations and progress made against the clearly
defined NOC expectations.

4

Finally, this document is presented in a simplified, succinct and
visual friendly format, letting words and simple pictures tell the
success story.
SPE 167395

Vision

The NOC’s expectations and objectives

2
Abstract

5

Vision

Change
Management

Understanding
the change

Culture

WIIFM
Factors

Process

Success

Conclussions

Discussions/
Appendices
SPE 167395

Vision
The IDOF project was born as a visionary state of the art prototype
pilot for the NOC. From the outset of the project, expectations were
set at a very high level – both, in terms of the technology that
was envisioned to be used for Oil Production Optimization and the
calibre of people involved in the IDOF.
This IDOF is seen as technological game changer, one of the
NOC’s most strategically important projects in terms of optimizing
oil production. In the IDOF state of the art collaborative work
environment (CWE), a suit of advanced Smartflow Workflows
provide smart functionalities coupling geological and reservoir
subsurface models with production operation workflows. The
workflows monitor real-time data to improve well performance,
reduce well downtime, and increase field performance.

“
6

The NOC executives and the Research and Technology (R&T)
leadership were clear in their vision and aspirations, that they
wanted this project to lead, not only the oil & gas GCC countries in
the field of IDOF concepts and technology. But also to position the
NOC as the preeminent world leader in IDOF technology
The combination of a clear vision, high expectation whilst working
in partnership with a major oil service organization, attracted
immediately the best technology talent in the field of IDOF to the
NOC, furthering enhanced the reputation of the project.

“

The internal design concepts
for the new collaboration
center were also fully
maximized to match the
NOC’s expectations. This
helped to deliver one of
the most spectacular and
comfortable workplaces
within the oil and gas sector.

IDOF is much more than optimisation. It’s a new paradigm, our
NOC’s passage to a brighter future. IDOF will put our NOC and
our people in the frontline of the oil and gas industry.
SPE 167395

SPE 167395

Change
Management /
People Side
Abstract

3
Abstract

7

Vision

Change
Management

Understanding
the change

Culture

WIIFM
Factors

Process

Success

Conclussions

Discussions/
Appendices
SPE 167395

Change Management
From the very beginning of the IDOF project the NOC leadership
were clear in their vision that the Project and the ‘People Side’
Change Management process were to be parallel activities
The NOC R&T leadership also saw the change process as the bridge
between solutions and results, and was indeed a fundamentally
important process about people and their collective role of
transforming change into sustainable successful project outcomes.

What is it?
Change Management is the organizational process which leads
individuals, teams or organizations from a current state to a desired
future state.
The chart below shows clearly the gaps that can exist in the
mindset and therefore the behaviours of the people. It is clear that
forming the bridge is paramount.

Low

Denial
“This doesnʼt
apply to me”

Commitment level

Resistance
“I donʼt
want this”

8

“

High

Exploration
“Could this
work for me?”

Time period

Commitment
“This works
for me and
my team”

Hope
“I can see
how this can
work for me”

“

Satisfaction
“Iʼm happy as
I am”

The Bridge Change Management

Change Management provides a framework
to enable the ‘People Side’ of change.
SPE 167395

Change Management

Popular myth:
A Great
Solution

Effective
Project
Management

Project
Success

The missing piece of the equation above is ‘change management’.
Managing the ‘People Side’ of change is key to meeting project
objectives and delivering the NOC’S expectations and vision.

What really happens:
A Great
Solution

Effective
Project
Management

Change
Management

Project
Success

There are numerous studies that demonstrate the correlation
between effective change management and meeting project
objectives. McKinsey study 2002 (LaClair and Rao1) results show
that projects that effectively managed change realized well over
100% of the ROI, while projects that did not effectively manage
change saw ROI at less than 50% of what was expected. Appendix
1 (McKinsey Quarterly article “Helping Employees Embrace Change”
by LaClair and Rao.)
Prosci Change Report 2012 shows clearly the challenges that do
exist to making any change successful; they talk in detail that
senior executive leadership support is the No1 Success Factor of
any Change Process.
Meeting project’s objectives and Effective Change Management

Very effective/
Extremely effective

9

Meeting or exceeding project’s
objectives

Moderately effective

Very ineffective/
ineffective

Partially meeting or failing to meet
project’s objectives
SPE 167395

Understanding
the Change
Position

4
Abstract

10

Vision

Change
Management

Understanding
the change

Culture

WIIFM
Factors

Process

Success

Conclussions

Discussions/
Appendices
SPE 167395

Understanding the Change Position
To understand the current ‘people side’ change positioning of the
IDOF project, a ‘Heat Mapping’ evaluation process was developed
to capture in a more conscious and systematic form the change
positioning of key people involved in the project, and by using and
updating regularly these simple visual parameters, the change
position can be understood at any given time.
The inputs into the heat map cover:
Vision and understanding the of the visions and the change,
Culture – “ The Way we do things around here”
WIIFM – “ Whats in it for me “
The ‘Heat Map’ when complete then sets the stage for developing
the practical individual people focused strategies to be used in
managing the “People Side” of change within the project.

Three simple steps...
Seeking the critical
information

Quantitative Feel for
the current change
process position

Begins with five
basic questions

Who are the key
players?

What significant
relationships
exist among the
key players?

How easily can
their opinion/
influence be
changed?

11

Mapping the Change
Position

What is their
power / change
influence in the
organisation?

To what extent
are they
applying their
influence in
the change
process?
SPE 167395

Understanding the Change Position
Once all of the outputs from our findings from Cultrure and WIIFM
factors are gathered we then create a Heat Map.
The Heat Map gives us a current and up to date snapshot of the
current ‘People Side’ change position within the project. It also
allows the Change Team to focus clearly on People at every level in
the organization that require attention or intervention to keep the
change moving forward.
It should also be understood at this stage that managing the People
Side of change at times requires giving indivudals within the change
process the time and respect that is necessary to adapt and accept
Low High
Heat can involve indepth personal discussion and soul
the change, this Map
Attitudes
Low High
searching by saidkey people
individuals.
Supporting Attitude
Influence
HeatofMap
involved in the project
Attitudes of key people
involved in the project

Initial
Heat Map
(example)

(within organisation)

Supporting Attitude

CEO
MD

CEO

Manager 4

MD

TL-2

Manager 4

TL RST

TL-2

TL RST

PM
PC4

PM

PC4

Tech engineers
Graduates

Heat Map Goal
(End Position)

12

Tech engineers

Graduates

By effectively managing the People Side of Change we gradually
move from the initial position in the Heat Map to the ultimate goal
Low High
Kwidf Heat Map
position, and inturn achieve our overall change objective: people
Attitudes of
Low High
Influence
Supporting Attitude
Kwidf key people and
Heat
supporting the in the project Map aspirations for the IDOF. (within organisation)
involved NOC’s vision
Attitudes of key people
involved in the project

Supporting Attitude

Influence
(within organisation)

CEO

“

“

You can’t
tell the
players
without a
scorecard

Influence
(within organisation)

MD

CEO
TL-2

Manager 4

MD

TL-2

Manager 4

TL RST
TL RST

PM
PC4

PM

PC4

Tech engineers
Graduates
Graduates

Tech engineers
SPE 167395

Culture

5
Abstract

13

Vision

Change
Management

Understanding
the change

Culture

WIIFM
Factors

Process

Success

Conclussions

Discussions/
Appendices
SPE 167395

Culture
There are indeed many ways to define both Culture (in the literal
sense) and organizational culture.
However in this instance we focus clearly on the ‘People Side’
cultural position.

In essence

Organizational culture is a key function of the People Side change
process, and is also the specific collection of shared values, beliefs,
and customary ways of thinking; in other words:

“The way we do things around here”.
To begin to understand the cultural and also to help position the
People Side change improvement process, a customized ‘People
Side’ survey on a one-to-one basis was conducted internally within
the NOC.
The study did provide relevant and descriptive insight into the
current cultural positioning in relation to the IDOF position.

90

90

90

80

80

80

70

70

70

60

60

60

50

50

50

40

40

40

30

30

30

20

20

20

10

10

10

0

0

0

Passive Thinking

Progressive Thinking

‘I’m Happy as I am thankyou’

Willing to Change, want to see
progress, personal goals are the
priority, (WIIFM)

Collaborative Culture
Other Cultures

14

Collaborative Style
(IDOF Ideal Vision)

Highly Motivated collaborative
team players, ambitious,change
drivers.

The ‘People Side’ Cultural study showed great promise, showing
that moving the cultural mindset from the Happy as I am position,
to the ideal IDOF Collaborative position could be successful,
however it should be noted that the Change message required
continuous reinforcement at every opportunity.
SPE 167395

WIIFM
Factors

6
Abstract

15

Vision

Change
Management

Understanding
the change

Culture

WIIFM
Factors

Process

Success

Conclussions

Discussions/
Appendices
SPE 167395

WIIFM Factors
In the workplace managers can develop new procedures, tools and
organizational structures, purchase new technology.
• However they cannot force their employees to support and
engage in these changes, individuals will assess the nature of the
change on a variety of levels that will include:
Individuals will assess the nature of the change on a variety of
levels that will include:

How will
the change
impact me ?

What is the
change ?

SO

“What’s in it for me?”
16
SPE 167395

WIIFM Factors
Once the individuals understand the WIIFM, they make a
positioning decision in their minds regarding the project and what it
means for them:
1. Individuals determine if the change represents an 			
opportunity or threat
2. And assess if the change will be fairly deployed with other 		
individuals or groups.
3. If at this time they see inequality between groups, this 		
alone can provide an excuse to resist and oppose change!
Understanding clearly the relevant factors that influence the
individuals desire to change is the first important step in the
‘People Side’ of Change.

History of
the change
and
WIIFM

Organisational
context and
history

Desire to support
and participate in
the CHANGE

Intrinsic
Motivators

Personal
Situation

By managing effectively the People Side of Change we satisfy the
individuals WIIFM and also align the overall People Side of change
with the NOC expectations, vision and aspirations.
This framework is represented in a Road Map, which puts in place
a methodology around the ‘People Side’ of the change process:
It covers the high level activities, but does not cover a lot of the
intangibles that occur daily.

“

“

17

If I understand the need for change and I
am willing to change, can I expect that the
change will happen?
SPE 167395

Process
(Road Map)

7
Abstract

18

Vision

Change
Management

Understanding
the change

Culture

WIIFM
Factors

Process

Success

Conclussions

Discussions/
Appendices
SPE 167395

Process
All Successful Journeys start with planning…We take all the
elements we’ve collected and build a framework for our journey.
This forms our ‘Roadmap’

VISION

WIIFM

HEAT
MAP

CULTURE

OUR ROADMAP TO SUCCESS
Phase I

Phase II

Phase III

Understanding&
Engagement

Action Plan

Phase III

Engage all Executive Stakeholders

Positioning of kwIDF with KOC now

Establish Executive Shareholders Support.

Engage all Stakeholders

Executive Stakeholder Engagement

Continous Stakeholder Engagement

Understand Historical Background and progress
made since project conception

Identify Potential People Side Risks

Identify Potential People Side Risks

Create a Platform for Stakeholder Engagement
to promote Transitional Handover Process

Conduct ReadinessAssessments &
Evaluate Results

Create a mechanism to enable measurement and
Celebration of Success

Create a mechanism to enable process
measurements and delivery

Work with Project teams to integrate change
activities into the project plan
Formalize IDOF full time core stafand implement
f
a certified IDOF training program.

NOW
July 2013
19

Completed
Ongoing
SPE 167395

Success is a
Journey

8
Abstract

20

Vision

Change
Management

Understanding
the change

Culture

WIIFM
Factors

Process

Success

Conclussions

Discussions/
Appendices
SPE 167395

Success is a Journey
Celebrating success’s is an important and critical part of any change
process and never more so that with the “People Side” focused
methodology used in this NOC Idof Pilot Project, so we must in the
first chapter in the NOC Project’s evolution celebrating said success,
and also clearly articulate this success story ?
In the following Success is a Journey pages you will also find People
Side success testimonials (in their own words), this shows beyond
doubt that the individual focus of “People Side” change is occurring,
it is proof indeed that by motivating the People within the change
process change happens and makes the project successful:
So to date, what does the success look like?

People Side

Project

Optimize Oil
Production

Technology

A multidisciplinary
and cross functional
group of talented
engineers Working
in a CWE, pride and
ownership in the IDOF
(testimonials).

Completion in 3 years
against a Oil & Gas
norm of 5-7 years.

Delivering validated
Oil Gains of 2380
mdb within 3
months of workflow
commissioning,
ROI (Return on
Investment) reduced
to 0% with the same
period.

Leading the GCC
and the eminent
world leader in IDOF
Technology.

We also at the same time align the success with the original
project vision as below

21

“

“

IDOF is much more than optimisation. It’s
a new paradigm, our NOC’s passage to a
brighter future. IDOF will put our NOC
and our people in the frontline of the oil
and gas industry.
SPE 167395

Success is a Journey

Sabriyah Pilot project

Pilot
Phase

Expansion
Phase

Operational
Phase

• 49 Wells

• Increasing amount of Wells

• Collaboration Centers

• Field Instrumentation in place

• Working in a CWE mode

permanent core Team in place

• Workflows developed

• User’s team to familiarize

• Collaborative Decision

• Collaboration Centers built

with workflows and to help

Making as a standard

• Preparing people for the

set the news IDOF business

• Continuous improvement

Collaborative Work

processes

Environment

2010 - 2013

2013 - 2016

2016 - 2020

What we’re able to achieve in
three years, would normally
take five.
22
SPE 167395

Success is a Journey
“IDOF is much more than optimisation. It’s a new
paradigm, a new way of working”.

Traditional Way
A fragmented process.
Opportunity
FD
or
]WS

Change
Request

Change

WS

Approved

Change

ESP

Approved

Contractor

Change

WS

Decisions take
days/weeks

Request

Change

FD

Implemented

WS
OP
FD

Collaboration Way
Real Time Decisions

Opportunity Identification

FD
Equipment
Management

ESP

NK
CC

OP

Manage GCʼs
Implement
results

WS
ESP Contract
holder

Well
Optimization

Decisions made in hours

23

The IDOF Collaboration Center gives the NOC teams the most
advanced digital technology tools to access critical data from
the field in real time. In seconds, through automated workflow
processes allow and enable complex decisions that affect
production to be made quickly, accurately and collaboratively.
SPE 167395

Success is a Journey
The NOC’s expectations were clear and succinct...
… and the Change process is happening
NOC Executive
“With all the company teams’ contribution (R&T, Fields
Development, Well Surveillance, Reservoir Studies, Production
Operations, Water Handling, all) the IDOF is a reality.The IDOF
new technology is helping to get real time data, and the process
to optimize the production has been dramatically reduced. It´s
not only the technology, but the people making it possible. We still
need Change Management to continue helping us, as it is one of
the most difficult tasks, indeed necessary all the way to continue
succeeding”.
IDOF Champion, Engineer
“The IDOF is the next big step to improve, as it will elevate our
company among top oil producers worldwide to the next level… the
collaborative work environment, tools, workflows and the people of
our IDOF is beyond and above ordinary”.
Senior Petroleum Engineer
“The change created by the Collaboration Center within the
IDOF has not only drastically reduced the time from opportunity
identification to execution, but also increased the synergy among
the core operational teams thus creating a seamless unit.”
Petroleum Engineer freshman
“The change is noticeable in the Company with the IDOF: the
Production Operations engineers from the field now have daily
contact with the Field Development and Well Surveillance
colleagues, who are working from the city offices. We can now work
as a team and video-conferencing really helps to work in a dynamic
way together on increasing the production”.
Senior Reservoir Engineer and Senior Geologist, after a
collaborative meeting
“With TH IDOF reviewing the injection patterns for our wells is
becoming easier and more frequent. Collaborative meetings are
getting better every time. With the workflows and the collaboration
center facilities, we can take faster decisions”.

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SPE 167395

Success is a Journey

“The IDOF has put our NOC in the frontline of
the Oil and Gas Industry.”

Sabriyah Oil Gains
There are numerous studies that demonstrate the
correlation between effective change management and
meeting project objectives.
McKinsey study 2002 (LaClair and Rao1) results show
that projects that effectively managed change realized well
over 100% of the ROI, while projects that did not effectively
manage change saw ROI at less than 50% of what was
expected.
Oil Gains

0%

Return on Investment (%)
-50%

-50%

1,886

1,886

Feb 2013

Mar 2013

-80%

1,500

Jan 2013

2,328

Apr 2013

The above graphic shows the % of Oil Gains delivered from
the pilot project’s scope after the Workflows commissioning
and has returned the ROI (return on Investment well before
normal Oil and Gas projects of it’s kind.

25
SPE 167395

Conclusions/
Lessons
Learned

9
Abstract

26

Vision

Change
Management

Understanding
the change

Culture

WIIFM
Factors

Process

Success

Conclussions

Discussions/
Appendices
SPE 167395

Conclusions. Lessons Learned
So, when Tolstoy stated

“Everyone thinks of changing the world but no
one thinks of changing himself”
he might not have realized or understood how his words and
sentiments would be used in effectively communicating a “People
Side” change message some 100 years later.

• We began this paper outlining the NOC Pilot Project expectations,
aspirations and Visionary beliefs, we then continue and during the
course of the paper show that by effectively managing the “People
Side” of change it provides a platform for success, but does not
indeed ensure success.
• In continuation we show the simple Heat Mapping process and
methodology used to identify the gaps within culture, WIIFM
factors and “People Side” Change Challenges and show through
said process that effective and continuous “People Side” change
management as the most critical and important activity for ensuring
project success and minimising cultural impact.
• We also presented Success is a Journey and share with you the
resounding technological and financial success of the pilot phase of
the NOC technology project to date.

27

• The paper in its conclusion also presents a challenge to the NOC
leadership executive as they look for continuation of the project
success, that to ensure People Side change success, people side
change needs to be considered at every part of the process moving
forward.
SPE 167395

Lessons Learned

Lessons learned
• Use NOC executive leadership and senior management to support,
promote and communicate the change message and in particular
when rewarding and celebrating the success.
• Putting People at the forefront of any change management
Process should be given priority at the very beginning of any
project.
• Align clearly the People Side change management process with
project vision and aspirations at a very early stage to not only
ensuring project success but also ensure that people adapt and own
the change process.
• Identify upfront the WIIFM (What’s in it For Me) scenarios for
the change champions / leaders and also the senior executive and
project leadership.
• Understand the cultural change, using “The way we do things
around here” adapt the strategy to suit , alignment, adaption rather
than enforcing radical and abrupt change.
• Use very simple communication messages and be consistent with
said messages, where possible use the people within the change to
communicate these messages.

“

• Celebrate success at every opportunity, especially People Side
success and where possible and relevant, reward this success,.
• Management -sponsors support is the key to IDOF survival and
further development. Senior executive one-to-one sessions to
reinforce progress and visible executive support are crucial.

Change Management
provides a framework
for managing the
People Side of Change

“

28

• Conducting regular interventions when progress is stalled or the
understanding is unclear is important to drive the change curve to
the positive side.
• The promising results from the pilot stage of this project support
the NOC vision of making IDOFs the operational norm for the NOC.
A sustainable IDOF strategy needs to be formulated by the NOC to
drive forward from the Pilot ensuring that the NOC’s Vision becomes
indeed embedded in the NOC Organisation.
SPE 167395

Paper
Discussion

10
Abstract

29

Vision

Change
Management

Understanding
the change

Culture

WIIFM
Factors

Process

Success

Conclussions

Discussions/
Appendices
SPE 167395

Paper Discussion
The digital oil field pilot implementation discussed in this paper has
been extensively documented in several SPE papers 1, 2, 3, 4, 5, 6,
7 and 8, where various technical aspects were discussed, however
this is the one of the few papers related to that particular project
that discussed the Change Management aspects and in particular
the effect that change has on People or more succinctly the ‘People
Side’ change.
Al-Abbasi et al 1, noted that “the ultimate purpose of collaborative
IDOF workflows is to provide a more effective working environment
for asset teams, allowing better communication and analysis to
solve operational and management problems”, this is indeed a
Change Management challenge by itself as there are significant
aspects that need to be attended to in order to make this a reality.
Dudley, G. et al 9 identified the need to design the collaborative
work environment (CWE) with the necessary functionality for
the staff not just to be used as occasional meeting rooms. Also,
the actual roles of the individuals assigned to the new CWE
described their jobs referring to the tools made available to
them through these CWEs. In their paper, they also noted the
importance of establishing firm sponsorship and vision from the
business leadership. This is in fact a common theme in the area of
Change Management and this project was not an exception. This
sponsorship was well captured in the documentary https://www.
landmarksoftware.com/Lists/VideoRepository/Landmark- KwIDFvideo.wmv done to demonstrate management support at all levels
in the organization.

30

Bayerl, P.S. 10 identified through a series of interview and
observations, eight factors that were considered conclusive for the
success of collaborative environment. These factors were divided
into two groups, one related to Design and the other related to
Process. In the pilot project documented in this paper, the first
set; i.e. those related to technology design and implementation,
design of the actual physical environment and staffing, those
factors were carefully dealt with during the development of the
pilot and therefore it is believed that a solid foundation was put
in place. On the other side, some of the process factors, are still
being developed and will, for many years, continue to be refined
and modified as this is organic in nature and these processes
must be accommodated to the living organization. The preparation
and training component is on-going as there is not an end to the
operation of the DOF. However, inclusion of stakeholders (users,
supervisors and managers) was something done throughout the
entire development process but as the organization evolved and
SPE 167395

Paper Discussion
management changes were announced, more activities related to
inclusion of stakeholders had to be programed and executed.
Mueller, K. 11 described the methodology focused on driving
the required behavioral change to achieve the necessary
performance. The authors depicted several aspects such as
coaching, organizational structure, and support for the ‘digital’
workforce among others that the pilot project documented on this
paper also had to go through. The authors claim this is part of a
well-structured methodology developed and adopted by a major
international oil company (IOC). The authors of the current paper
note this methodology may have worked well for the IOC, it may
not necessarily fit the needs of a national oil company (NOC), yet
the components of the successful program may not be too different.
The author, Mueller, K. 11, noted that addressing people – the
human factor – and organizational issues must be a leadership top
priority in order to achieve sustainable success in a CWE. This has
been well acknowledged and understood by the people working
on the development and implementation of the DOF in the current
paper.
Sankaran, S. 12, documented the ‘organization’ aspects from
several documented case studies. They noted that the development
team resources are re-assigned or re-located at the end of the
development and therefore there is a need to appoint internal
champions during the development period who will remain in
the operation of the project once the development is completed.
This practice was indeed adopted by the current DOF without
much success as the champions either were re-assigned due to
company re-structuring or they left the organization to pursue other
professional opportunities.

References
1. Al-Abbasi, A., Al-Jasmi, A., Goel, H.K., Nasr, H. (Kuwait
Oil Company) and Cullick, A., Rodriguez, J.A., Carvajal, G.A.,
Velasquez, G. and Bravo, C. (Halliburton) 2013. New Generation
of Petroleum Workflow Automation: Philosophy and Practice. Paper
SPE 163812-MS presented at the SPE Digital Energy Conference,
The Woodlands, Texas, 05-07 March.

31

2. Al-Jasmi, A., Goel, H.K., Al-Abbasi, A., Nasr, H. (Kuwait Oil
SPE 167395

Paper Discussion
Company), and Velasquez, G., Carvajal, G., Cullick, A. and
Rodriguez, J. (Halliburton) 2013. Maximizing the Value of Real-Time
Operations for Diagnostic and Optimization at the Right Time. Paper
SPE 163696 presented at the SPE Digital Energy Conference, The
Woodland, Texas, 05-07 March.
3. Al-Jasmi, A., Al-Abbasi, A., Nasr, H. (Kuwait Oil Company), and
Carvajal, G., Johnson, D., Velasquez, G., Cullick, A., Moricca, G.,
Rodriguez, J., and Villamizar, M. 2013. A Surveillance Smartflow
for Intelligent Digital Production Operations. Paper SPE 163697
presented at the SPE Digital Energy Conference, The Woodland,
Texas, 05-07 March.
4. Al-Jasmi, A., Al-Zaabi, H., Goel, H.K. (Kuwait Oil Company),
and Lopez, C., Carvajal, G., Vanish, D., Querales, M., Yong, Y.,
Rodriguez, J., Velasquez, G., Villamizar, M., and Mahajan, A. 2013.
A Real-time Automated Workflow to Prioritize, Validate and Model
Production Well Testing. Paper SPE 163813 presented at the SPE
Digital Energy Conference, The Woodland, Texas, 05-07 March.
5. Al-Jasmi, A., Nasr, H. and Goel, H. K. (Kuwait Oil Company) and
Moricca, G., Carvajal, G.A., Dhar, J., Querales, M., Villamizar, M.A.,
Cullick, A.S., Rodriguez, J.A., Velasquez, G., Yong, Z., Bermudez,
F. and Kain, J. (Halliburton) 2013. ESP Smartflow that Integrates
Quality and Control Data for Diagnostic and Optimization in Real
Time. Paper SPE 163809 presented at the SPE Digital Energy
Conference, The Woodland, Texas, 05-07 March.
6. Al-Jasmi, A., Nasr, H. (Kuwait Oil Company) and Carvajal, G.,
Cullick, A.S., Vanish, D., Wang, F., Velasquez, G., Villamizar, M.,
Md-Adnan, F., Betancourt, D., and Urrutia, K. (Halliburton) 2013.
Enabling Numerical Simulation and Real-Time Production Data to
Monitor Water-Flooding Indicators. Paper SPE 163811 presented
at the SPE Digital Energy Conference, The Woodland, Texas. 05-07
March

32

7. Al-Jasmi, A., Al-Abbasi, (KOC), Villamizar, M., Vellanki, R., Cullick
A.S.., Narasimha, R., Carvajal, G., and Rodriguez, J. (Halliburton)
2013. An Automated Workflow for Tracking and Assigning
Operational Accountabilities in Real Time. SPE 163810. SPE Digital
Energy Conference. The Woodland, Texas, 05-07 March.
8. A. Al-Jasmi and H. K. Goel, Kuwait Oil Company; M. Querales,
C. Lopez*, G.A. Carvajal, G. Moricca, R. Vellanki, M. Villamizar,
J.A. Rodriguez, G. Velasquez and Z. Yong (Halliburton* Now with
Hess Corporation) 2013. Gas Lift Smart Flow Integrates Quality
and Control Data for Diagnostic and Optimization in Real Time. SPE
SPE 167395

Paper Discussion
165014-MS. SPE Artificial Lift Conference – Americas. Cartagena,
Colombia, 21 – 23 May.
9. Dudley, G., Perry, J., Goodwin, S., Critchley, C., Hocking, P.,
Shahly, M., Barkved, O.I., and Saul, D. (BP) 2006. The Challenges
of Implementing at Scale: Field of the Future – Technologies in
the North Sea. SPE 99829. SPE Intelligent Energy Conference.
Amsterdam, The Netherlands, 11-13 April.
10. Bayerl, P.S., Lauche, K., and Badke-Schaub, P. (TU Delft), and
Sawraryn, S. (BP) 2008. Successful Implementation of Collaborative
Environments: Human Factors and Implications. SPE 112104. SPE
Intelligent Energy Conference. Amsterdam, The Netherlands, 25-27
February.
11. Mueller, K. (PDO), McClelland, C. and Anvar, A. (SAIC) 2010.
The Role of Human Factors Integration and Change Management
Coaching in Integrating Multidisciplinary Teams Working in
Collaborative Work Environments. SPE 128616. SPE Intelligent
Energy Conference. Utrech, The Netherlands, 23-25 March.
12. Sankaran, S., Lugo, J., Awasthi, A., Mijares, G. (Halliburton)
2009. The Promise and Challenges of Digital Oilfield Solutions
– Lessons Learned From Global Implementations and Future
Directions. SPE 122855. SPE Digital Energy Conference. Houston,
Texas, USA, 7-8 April.

Articles
1, LaClair and Rao, “Helping Employees Embrace Change”, McKinsey
Quarterly, 2002.

33

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Kb spe paper 167395 final draft in pdf 07092013

  • 1. SPE 167395 Intelligent Digital Oil Field Implementation: A Case Study of Change Management Strategies to Ensure Success Ahmad Al-Jasmi and Harish K. Goel, Kuwait Oil Company; and Soraya Sirikit Cerda, Kevin Barry, Guillermo Velasquez and Steven Knabe, Halliburton Copyright 2013, Society of Petroleum Engineers This paper was prepared for presentation at the SPE Middle East Intelligent Energy Conference and Exhibiiton held in Dubai, UAE, 28–30 October 2013. This paper was selected for presentation by an SPE program committee following review of information contained in an abstract submitted by the author(s). Contents of the paper have not been reviewed by the Society of Petroleum Engineers and are subject to correction by the author(s). The material does not necessarily reflect any position of the Society of Petroleum Engineers, its officers, or members. Electronic reproduction, distribution, or storage of any part of this paper without the written consent of the Society of Petroleum Engineers is prohibited. Permission to reproduce in print is restricted to an abstract of not more than 300 words; illustrations may not be copied. The abstract must contain conspicuous acknowledgment of SPE copyright. 1
  • 2. SPE 167395 2 1 2 3 4 5 6 7 8 9 10 Abstract Vision Change Management/People Side Understanding the Change Position Culture WIIFM Factors Process (Road Map) Success is a Journey Conclusions/Lessons Learned Discussions and Appendices
  • 4. SPE 167395 Abstract The successful implementation of a world-leading Intelligent Digital Oil Field (IDOF) with a National Oil Company required extremely careful and innovative management of the large-scale change which arose from the project. In particular, the ‘People Side’ of that Change Management was to play a key role in embedding the project in the NOC orgainsation and in turn making the multi-million US dollar project a success. This paper begins by outlining the NOC expectations and describes the steps and processes taken to initiate and mobilize the ‘People Side’ of change in the IDOF project, and also does cover the Change Management challenges used before the People Side focused strategy was deemed to be the way forward. Using a simple ‘People Side’ focused change methodology not only ensured that the project was successful in terms of revenue over capital expenditure (ROCE), but also began the process of ownership and eased the adoption of the IDOF into the current NOC organization. The Change Management methodology described in this paper was designed to cover and mitigate important challenges that are relevant in driving the people side of change, particularly: WIIFM – “What’s in it for me” scenarios Culture - The way things are done around here Success - Collaboration,Technology Leap Frogging, People, Oil Gains “ “ Everyone thinks of changing the world, but no one thinks of changing himself. Leo Tolstoy The paper concludes by updating main successes, key lessons learned, observations and progress made against the clearly defined NOC expectations. 4 Finally, this document is presented in a simplified, succinct and visual friendly format, letting words and simple pictures tell the success story.
  • 5. SPE 167395 Vision The NOC’s expectations and objectives 2 Abstract 5 Vision Change Management Understanding the change Culture WIIFM Factors Process Success Conclussions Discussions/ Appendices
  • 6. SPE 167395 Vision The IDOF project was born as a visionary state of the art prototype pilot for the NOC. From the outset of the project, expectations were set at a very high level – both, in terms of the technology that was envisioned to be used for Oil Production Optimization and the calibre of people involved in the IDOF. This IDOF is seen as technological game changer, one of the NOC’s most strategically important projects in terms of optimizing oil production. In the IDOF state of the art collaborative work environment (CWE), a suit of advanced Smartflow Workflows provide smart functionalities coupling geological and reservoir subsurface models with production operation workflows. The workflows monitor real-time data to improve well performance, reduce well downtime, and increase field performance. “ 6 The NOC executives and the Research and Technology (R&T) leadership were clear in their vision and aspirations, that they wanted this project to lead, not only the oil & gas GCC countries in the field of IDOF concepts and technology. But also to position the NOC as the preeminent world leader in IDOF technology The combination of a clear vision, high expectation whilst working in partnership with a major oil service organization, attracted immediately the best technology talent in the field of IDOF to the NOC, furthering enhanced the reputation of the project. “ The internal design concepts for the new collaboration center were also fully maximized to match the NOC’s expectations. This helped to deliver one of the most spectacular and comfortable workplaces within the oil and gas sector. IDOF is much more than optimisation. It’s a new paradigm, our NOC’s passage to a brighter future. IDOF will put our NOC and our people in the frontline of the oil and gas industry.
  • 7. SPE 167395 SPE 167395 Change Management / People Side Abstract 3 Abstract 7 Vision Change Management Understanding the change Culture WIIFM Factors Process Success Conclussions Discussions/ Appendices
  • 8. SPE 167395 Change Management From the very beginning of the IDOF project the NOC leadership were clear in their vision that the Project and the ‘People Side’ Change Management process were to be parallel activities The NOC R&T leadership also saw the change process as the bridge between solutions and results, and was indeed a fundamentally important process about people and their collective role of transforming change into sustainable successful project outcomes. What is it? Change Management is the organizational process which leads individuals, teams or organizations from a current state to a desired future state. The chart below shows clearly the gaps that can exist in the mindset and therefore the behaviours of the people. It is clear that forming the bridge is paramount. Low Denial “This doesnʼt apply to me” Commitment level Resistance “I donʼt want this” 8 “ High Exploration “Could this work for me?” Time period Commitment “This works for me and my team” Hope “I can see how this can work for me” “ Satisfaction “Iʼm happy as I am” The Bridge Change Management Change Management provides a framework to enable the ‘People Side’ of change.
  • 9. SPE 167395 Change Management Popular myth: A Great Solution Effective Project Management Project Success The missing piece of the equation above is ‘change management’. Managing the ‘People Side’ of change is key to meeting project objectives and delivering the NOC’S expectations and vision. What really happens: A Great Solution Effective Project Management Change Management Project Success There are numerous studies that demonstrate the correlation between effective change management and meeting project objectives. McKinsey study 2002 (LaClair and Rao1) results show that projects that effectively managed change realized well over 100% of the ROI, while projects that did not effectively manage change saw ROI at less than 50% of what was expected. Appendix 1 (McKinsey Quarterly article “Helping Employees Embrace Change” by LaClair and Rao.) Prosci Change Report 2012 shows clearly the challenges that do exist to making any change successful; they talk in detail that senior executive leadership support is the No1 Success Factor of any Change Process. Meeting project’s objectives and Effective Change Management Very effective/ Extremely effective 9 Meeting or exceeding project’s objectives Moderately effective Very ineffective/ ineffective Partially meeting or failing to meet project’s objectives
  • 10. SPE 167395 Understanding the Change Position 4 Abstract 10 Vision Change Management Understanding the change Culture WIIFM Factors Process Success Conclussions Discussions/ Appendices
  • 11. SPE 167395 Understanding the Change Position To understand the current ‘people side’ change positioning of the IDOF project, a ‘Heat Mapping’ evaluation process was developed to capture in a more conscious and systematic form the change positioning of key people involved in the project, and by using and updating regularly these simple visual parameters, the change position can be understood at any given time. The inputs into the heat map cover: Vision and understanding the of the visions and the change, Culture – “ The Way we do things around here” WIIFM – “ Whats in it for me “ The ‘Heat Map’ when complete then sets the stage for developing the practical individual people focused strategies to be used in managing the “People Side” of change within the project. Three simple steps... Seeking the critical information Quantitative Feel for the current change process position Begins with five basic questions Who are the key players? What significant relationships exist among the key players? How easily can their opinion/ influence be changed? 11 Mapping the Change Position What is their power / change influence in the organisation? To what extent are they applying their influence in the change process?
  • 12. SPE 167395 Understanding the Change Position Once all of the outputs from our findings from Cultrure and WIIFM factors are gathered we then create a Heat Map. The Heat Map gives us a current and up to date snapshot of the current ‘People Side’ change position within the project. It also allows the Change Team to focus clearly on People at every level in the organization that require attention or intervention to keep the change moving forward. It should also be understood at this stage that managing the People Side of change at times requires giving indivudals within the change process the time and respect that is necessary to adapt and accept Low High Heat can involve indepth personal discussion and soul the change, this Map Attitudes Low High searching by saidkey people individuals. Supporting Attitude Influence HeatofMap involved in the project Attitudes of key people involved in the project Initial Heat Map (example) (within organisation) Supporting Attitude CEO MD CEO Manager 4 MD TL-2 Manager 4 TL RST TL-2 TL RST PM PC4 PM PC4 Tech engineers Graduates Heat Map Goal (End Position) 12 Tech engineers Graduates By effectively managing the People Side of Change we gradually move from the initial position in the Heat Map to the ultimate goal Low High Kwidf Heat Map position, and inturn achieve our overall change objective: people Attitudes of Low High Influence Supporting Attitude Kwidf key people and Heat supporting the in the project Map aspirations for the IDOF. (within organisation) involved NOC’s vision Attitudes of key people involved in the project Supporting Attitude Influence (within organisation) CEO “ “ You can’t tell the players without a scorecard Influence (within organisation) MD CEO TL-2 Manager 4 MD TL-2 Manager 4 TL RST TL RST PM PC4 PM PC4 Tech engineers Graduates Graduates Tech engineers
  • 14. SPE 167395 Culture There are indeed many ways to define both Culture (in the literal sense) and organizational culture. However in this instance we focus clearly on the ‘People Side’ cultural position. In essence Organizational culture is a key function of the People Side change process, and is also the specific collection of shared values, beliefs, and customary ways of thinking; in other words: “The way we do things around here”. To begin to understand the cultural and also to help position the People Side change improvement process, a customized ‘People Side’ survey on a one-to-one basis was conducted internally within the NOC. The study did provide relevant and descriptive insight into the current cultural positioning in relation to the IDOF position. 90 90 90 80 80 80 70 70 70 60 60 60 50 50 50 40 40 40 30 30 30 20 20 20 10 10 10 0 0 0 Passive Thinking Progressive Thinking ‘I’m Happy as I am thankyou’ Willing to Change, want to see progress, personal goals are the priority, (WIIFM) Collaborative Culture Other Cultures 14 Collaborative Style (IDOF Ideal Vision) Highly Motivated collaborative team players, ambitious,change drivers. The ‘People Side’ Cultural study showed great promise, showing that moving the cultural mindset from the Happy as I am position, to the ideal IDOF Collaborative position could be successful, however it should be noted that the Change message required continuous reinforcement at every opportunity.
  • 16. SPE 167395 WIIFM Factors In the workplace managers can develop new procedures, tools and organizational structures, purchase new technology. • However they cannot force their employees to support and engage in these changes, individuals will assess the nature of the change on a variety of levels that will include: Individuals will assess the nature of the change on a variety of levels that will include: How will the change impact me ? What is the change ? SO “What’s in it for me?” 16
  • 17. SPE 167395 WIIFM Factors Once the individuals understand the WIIFM, they make a positioning decision in their minds regarding the project and what it means for them: 1. Individuals determine if the change represents an opportunity or threat 2. And assess if the change will be fairly deployed with other individuals or groups. 3. If at this time they see inequality between groups, this alone can provide an excuse to resist and oppose change! Understanding clearly the relevant factors that influence the individuals desire to change is the first important step in the ‘People Side’ of Change. History of the change and WIIFM Organisational context and history Desire to support and participate in the CHANGE Intrinsic Motivators Personal Situation By managing effectively the People Side of Change we satisfy the individuals WIIFM and also align the overall People Side of change with the NOC expectations, vision and aspirations. This framework is represented in a Road Map, which puts in place a methodology around the ‘People Side’ of the change process: It covers the high level activities, but does not cover a lot of the intangibles that occur daily. “ “ 17 If I understand the need for change and I am willing to change, can I expect that the change will happen?
  • 18. SPE 167395 Process (Road Map) 7 Abstract 18 Vision Change Management Understanding the change Culture WIIFM Factors Process Success Conclussions Discussions/ Appendices
  • 19. SPE 167395 Process All Successful Journeys start with planning…We take all the elements we’ve collected and build a framework for our journey. This forms our ‘Roadmap’ VISION WIIFM HEAT MAP CULTURE OUR ROADMAP TO SUCCESS Phase I Phase II Phase III Understanding& Engagement Action Plan Phase III Engage all Executive Stakeholders Positioning of kwIDF with KOC now Establish Executive Shareholders Support. Engage all Stakeholders Executive Stakeholder Engagement Continous Stakeholder Engagement Understand Historical Background and progress made since project conception Identify Potential People Side Risks Identify Potential People Side Risks Create a Platform for Stakeholder Engagement to promote Transitional Handover Process Conduct ReadinessAssessments & Evaluate Results Create a mechanism to enable measurement and Celebration of Success Create a mechanism to enable process measurements and delivery Work with Project teams to integrate change activities into the project plan Formalize IDOF full time core stafand implement f a certified IDOF training program. NOW July 2013 19 Completed Ongoing
  • 20. SPE 167395 Success is a Journey 8 Abstract 20 Vision Change Management Understanding the change Culture WIIFM Factors Process Success Conclussions Discussions/ Appendices
  • 21. SPE 167395 Success is a Journey Celebrating success’s is an important and critical part of any change process and never more so that with the “People Side” focused methodology used in this NOC Idof Pilot Project, so we must in the first chapter in the NOC Project’s evolution celebrating said success, and also clearly articulate this success story ? In the following Success is a Journey pages you will also find People Side success testimonials (in their own words), this shows beyond doubt that the individual focus of “People Side” change is occurring, it is proof indeed that by motivating the People within the change process change happens and makes the project successful: So to date, what does the success look like? People Side Project Optimize Oil Production Technology A multidisciplinary and cross functional group of talented engineers Working in a CWE, pride and ownership in the IDOF (testimonials). Completion in 3 years against a Oil & Gas norm of 5-7 years. Delivering validated Oil Gains of 2380 mdb within 3 months of workflow commissioning, ROI (Return on Investment) reduced to 0% with the same period. Leading the GCC and the eminent world leader in IDOF Technology. We also at the same time align the success with the original project vision as below 21 “ “ IDOF is much more than optimisation. It’s a new paradigm, our NOC’s passage to a brighter future. IDOF will put our NOC and our people in the frontline of the oil and gas industry.
  • 22. SPE 167395 Success is a Journey Sabriyah Pilot project Pilot Phase Expansion Phase Operational Phase • 49 Wells • Increasing amount of Wells • Collaboration Centers • Field Instrumentation in place • Working in a CWE mode permanent core Team in place • Workflows developed • User’s team to familiarize • Collaborative Decision • Collaboration Centers built with workflows and to help Making as a standard • Preparing people for the set the news IDOF business • Continuous improvement Collaborative Work processes Environment 2010 - 2013 2013 - 2016 2016 - 2020 What we’re able to achieve in three years, would normally take five. 22
  • 23. SPE 167395 Success is a Journey “IDOF is much more than optimisation. It’s a new paradigm, a new way of working”. Traditional Way A fragmented process. Opportunity FD or ]WS Change Request Change WS Approved Change ESP Approved Contractor Change WS Decisions take days/weeks Request Change FD Implemented WS OP FD Collaboration Way Real Time Decisions Opportunity Identification FD Equipment Management ESP NK CC OP Manage GCʼs Implement results WS ESP Contract holder Well Optimization Decisions made in hours 23 The IDOF Collaboration Center gives the NOC teams the most advanced digital technology tools to access critical data from the field in real time. In seconds, through automated workflow processes allow and enable complex decisions that affect production to be made quickly, accurately and collaboratively.
  • 24. SPE 167395 Success is a Journey The NOC’s expectations were clear and succinct... … and the Change process is happening NOC Executive “With all the company teams’ contribution (R&T, Fields Development, Well Surveillance, Reservoir Studies, Production Operations, Water Handling, all) the IDOF is a reality.The IDOF new technology is helping to get real time data, and the process to optimize the production has been dramatically reduced. It´s not only the technology, but the people making it possible. We still need Change Management to continue helping us, as it is one of the most difficult tasks, indeed necessary all the way to continue succeeding”. IDOF Champion, Engineer “The IDOF is the next big step to improve, as it will elevate our company among top oil producers worldwide to the next level… the collaborative work environment, tools, workflows and the people of our IDOF is beyond and above ordinary”. Senior Petroleum Engineer “The change created by the Collaboration Center within the IDOF has not only drastically reduced the time from opportunity identification to execution, but also increased the synergy among the core operational teams thus creating a seamless unit.” Petroleum Engineer freshman “The change is noticeable in the Company with the IDOF: the Production Operations engineers from the field now have daily contact with the Field Development and Well Surveillance colleagues, who are working from the city offices. We can now work as a team and video-conferencing really helps to work in a dynamic way together on increasing the production”. Senior Reservoir Engineer and Senior Geologist, after a collaborative meeting “With TH IDOF reviewing the injection patterns for our wells is becoming easier and more frequent. Collaborative meetings are getting better every time. With the workflows and the collaboration center facilities, we can take faster decisions”. 24
  • 25. SPE 167395 Success is a Journey “The IDOF has put our NOC in the frontline of the Oil and Gas Industry.” Sabriyah Oil Gains There are numerous studies that demonstrate the correlation between effective change management and meeting project objectives. McKinsey study 2002 (LaClair and Rao1) results show that projects that effectively managed change realized well over 100% of the ROI, while projects that did not effectively manage change saw ROI at less than 50% of what was expected. Oil Gains 0% Return on Investment (%) -50% -50% 1,886 1,886 Feb 2013 Mar 2013 -80% 1,500 Jan 2013 2,328 Apr 2013 The above graphic shows the % of Oil Gains delivered from the pilot project’s scope after the Workflows commissioning and has returned the ROI (return on Investment well before normal Oil and Gas projects of it’s kind. 25
  • 27. SPE 167395 Conclusions. Lessons Learned So, when Tolstoy stated “Everyone thinks of changing the world but no one thinks of changing himself” he might not have realized or understood how his words and sentiments would be used in effectively communicating a “People Side” change message some 100 years later. • We began this paper outlining the NOC Pilot Project expectations, aspirations and Visionary beliefs, we then continue and during the course of the paper show that by effectively managing the “People Side” of change it provides a platform for success, but does not indeed ensure success. • In continuation we show the simple Heat Mapping process and methodology used to identify the gaps within culture, WIIFM factors and “People Side” Change Challenges and show through said process that effective and continuous “People Side” change management as the most critical and important activity for ensuring project success and minimising cultural impact. • We also presented Success is a Journey and share with you the resounding technological and financial success of the pilot phase of the NOC technology project to date. 27 • The paper in its conclusion also presents a challenge to the NOC leadership executive as they look for continuation of the project success, that to ensure People Side change success, people side change needs to be considered at every part of the process moving forward.
  • 28. SPE 167395 Lessons Learned Lessons learned • Use NOC executive leadership and senior management to support, promote and communicate the change message and in particular when rewarding and celebrating the success. • Putting People at the forefront of any change management Process should be given priority at the very beginning of any project. • Align clearly the People Side change management process with project vision and aspirations at a very early stage to not only ensuring project success but also ensure that people adapt and own the change process. • Identify upfront the WIIFM (What’s in it For Me) scenarios for the change champions / leaders and also the senior executive and project leadership. • Understand the cultural change, using “The way we do things around here” adapt the strategy to suit , alignment, adaption rather than enforcing radical and abrupt change. • Use very simple communication messages and be consistent with said messages, where possible use the people within the change to communicate these messages. “ • Celebrate success at every opportunity, especially People Side success and where possible and relevant, reward this success,. • Management -sponsors support is the key to IDOF survival and further development. Senior executive one-to-one sessions to reinforce progress and visible executive support are crucial. Change Management provides a framework for managing the People Side of Change “ 28 • Conducting regular interventions when progress is stalled or the understanding is unclear is important to drive the change curve to the positive side. • The promising results from the pilot stage of this project support the NOC vision of making IDOFs the operational norm for the NOC. A sustainable IDOF strategy needs to be formulated by the NOC to drive forward from the Pilot ensuring that the NOC’s Vision becomes indeed embedded in the NOC Organisation.
  • 30. SPE 167395 Paper Discussion The digital oil field pilot implementation discussed in this paper has been extensively documented in several SPE papers 1, 2, 3, 4, 5, 6, 7 and 8, where various technical aspects were discussed, however this is the one of the few papers related to that particular project that discussed the Change Management aspects and in particular the effect that change has on People or more succinctly the ‘People Side’ change. Al-Abbasi et al 1, noted that “the ultimate purpose of collaborative IDOF workflows is to provide a more effective working environment for asset teams, allowing better communication and analysis to solve operational and management problems”, this is indeed a Change Management challenge by itself as there are significant aspects that need to be attended to in order to make this a reality. Dudley, G. et al 9 identified the need to design the collaborative work environment (CWE) with the necessary functionality for the staff not just to be used as occasional meeting rooms. Also, the actual roles of the individuals assigned to the new CWE described their jobs referring to the tools made available to them through these CWEs. In their paper, they also noted the importance of establishing firm sponsorship and vision from the business leadership. This is in fact a common theme in the area of Change Management and this project was not an exception. This sponsorship was well captured in the documentary https://www. landmarksoftware.com/Lists/VideoRepository/Landmark- KwIDFvideo.wmv done to demonstrate management support at all levels in the organization. 30 Bayerl, P.S. 10 identified through a series of interview and observations, eight factors that were considered conclusive for the success of collaborative environment. These factors were divided into two groups, one related to Design and the other related to Process. In the pilot project documented in this paper, the first set; i.e. those related to technology design and implementation, design of the actual physical environment and staffing, those factors were carefully dealt with during the development of the pilot and therefore it is believed that a solid foundation was put in place. On the other side, some of the process factors, are still being developed and will, for many years, continue to be refined and modified as this is organic in nature and these processes must be accommodated to the living organization. The preparation and training component is on-going as there is not an end to the operation of the DOF. However, inclusion of stakeholders (users, supervisors and managers) was something done throughout the entire development process but as the organization evolved and
  • 31. SPE 167395 Paper Discussion management changes were announced, more activities related to inclusion of stakeholders had to be programed and executed. Mueller, K. 11 described the methodology focused on driving the required behavioral change to achieve the necessary performance. The authors depicted several aspects such as coaching, organizational structure, and support for the ‘digital’ workforce among others that the pilot project documented on this paper also had to go through. The authors claim this is part of a well-structured methodology developed and adopted by a major international oil company (IOC). The authors of the current paper note this methodology may have worked well for the IOC, it may not necessarily fit the needs of a national oil company (NOC), yet the components of the successful program may not be too different. The author, Mueller, K. 11, noted that addressing people – the human factor – and organizational issues must be a leadership top priority in order to achieve sustainable success in a CWE. This has been well acknowledged and understood by the people working on the development and implementation of the DOF in the current paper. Sankaran, S. 12, documented the ‘organization’ aspects from several documented case studies. They noted that the development team resources are re-assigned or re-located at the end of the development and therefore there is a need to appoint internal champions during the development period who will remain in the operation of the project once the development is completed. This practice was indeed adopted by the current DOF without much success as the champions either were re-assigned due to company re-structuring or they left the organization to pursue other professional opportunities. References 1. Al-Abbasi, A., Al-Jasmi, A., Goel, H.K., Nasr, H. (Kuwait Oil Company) and Cullick, A., Rodriguez, J.A., Carvajal, G.A., Velasquez, G. and Bravo, C. (Halliburton) 2013. New Generation of Petroleum Workflow Automation: Philosophy and Practice. Paper SPE 163812-MS presented at the SPE Digital Energy Conference, The Woodlands, Texas, 05-07 March. 31 2. Al-Jasmi, A., Goel, H.K., Al-Abbasi, A., Nasr, H. (Kuwait Oil
  • 32. SPE 167395 Paper Discussion Company), and Velasquez, G., Carvajal, G., Cullick, A. and Rodriguez, J. (Halliburton) 2013. Maximizing the Value of Real-Time Operations for Diagnostic and Optimization at the Right Time. Paper SPE 163696 presented at the SPE Digital Energy Conference, The Woodland, Texas, 05-07 March. 3. Al-Jasmi, A., Al-Abbasi, A., Nasr, H. (Kuwait Oil Company), and Carvajal, G., Johnson, D., Velasquez, G., Cullick, A., Moricca, G., Rodriguez, J., and Villamizar, M. 2013. A Surveillance Smartflow for Intelligent Digital Production Operations. Paper SPE 163697 presented at the SPE Digital Energy Conference, The Woodland, Texas, 05-07 March. 4. Al-Jasmi, A., Al-Zaabi, H., Goel, H.K. (Kuwait Oil Company), and Lopez, C., Carvajal, G., Vanish, D., Querales, M., Yong, Y., Rodriguez, J., Velasquez, G., Villamizar, M., and Mahajan, A. 2013. A Real-time Automated Workflow to Prioritize, Validate and Model Production Well Testing. Paper SPE 163813 presented at the SPE Digital Energy Conference, The Woodland, Texas, 05-07 March. 5. Al-Jasmi, A., Nasr, H. and Goel, H. K. (Kuwait Oil Company) and Moricca, G., Carvajal, G.A., Dhar, J., Querales, M., Villamizar, M.A., Cullick, A.S., Rodriguez, J.A., Velasquez, G., Yong, Z., Bermudez, F. and Kain, J. (Halliburton) 2013. ESP Smartflow that Integrates Quality and Control Data for Diagnostic and Optimization in Real Time. Paper SPE 163809 presented at the SPE Digital Energy Conference, The Woodland, Texas, 05-07 March. 6. Al-Jasmi, A., Nasr, H. (Kuwait Oil Company) and Carvajal, G., Cullick, A.S., Vanish, D., Wang, F., Velasquez, G., Villamizar, M., Md-Adnan, F., Betancourt, D., and Urrutia, K. (Halliburton) 2013. Enabling Numerical Simulation and Real-Time Production Data to Monitor Water-Flooding Indicators. Paper SPE 163811 presented at the SPE Digital Energy Conference, The Woodland, Texas. 05-07 March 32 7. Al-Jasmi, A., Al-Abbasi, (KOC), Villamizar, M., Vellanki, R., Cullick A.S.., Narasimha, R., Carvajal, G., and Rodriguez, J. (Halliburton) 2013. An Automated Workflow for Tracking and Assigning Operational Accountabilities in Real Time. SPE 163810. SPE Digital Energy Conference. The Woodland, Texas, 05-07 March. 8. A. Al-Jasmi and H. K. Goel, Kuwait Oil Company; M. Querales, C. Lopez*, G.A. Carvajal, G. Moricca, R. Vellanki, M. Villamizar, J.A. Rodriguez, G. Velasquez and Z. Yong (Halliburton* Now with Hess Corporation) 2013. Gas Lift Smart Flow Integrates Quality and Control Data for Diagnostic and Optimization in Real Time. SPE
  • 33. SPE 167395 Paper Discussion 165014-MS. SPE Artificial Lift Conference – Americas. Cartagena, Colombia, 21 – 23 May. 9. Dudley, G., Perry, J., Goodwin, S., Critchley, C., Hocking, P., Shahly, M., Barkved, O.I., and Saul, D. (BP) 2006. The Challenges of Implementing at Scale: Field of the Future – Technologies in the North Sea. SPE 99829. SPE Intelligent Energy Conference. Amsterdam, The Netherlands, 11-13 April. 10. Bayerl, P.S., Lauche, K., and Badke-Schaub, P. (TU Delft), and Sawraryn, S. (BP) 2008. Successful Implementation of Collaborative Environments: Human Factors and Implications. SPE 112104. SPE Intelligent Energy Conference. Amsterdam, The Netherlands, 25-27 February. 11. Mueller, K. (PDO), McClelland, C. and Anvar, A. (SAIC) 2010. The Role of Human Factors Integration and Change Management Coaching in Integrating Multidisciplinary Teams Working in Collaborative Work Environments. SPE 128616. SPE Intelligent Energy Conference. Utrech, The Netherlands, 23-25 March. 12. Sankaran, S., Lugo, J., Awasthi, A., Mijares, G. (Halliburton) 2009. The Promise and Challenges of Digital Oilfield Solutions – Lessons Learned From Global Implementations and Future Directions. SPE 122855. SPE Digital Energy Conference. Houston, Texas, USA, 7-8 April. Articles 1, LaClair and Rao, “Helping Employees Embrace Change”, McKinsey Quarterly, 2002. 33