The document discusses how implementing a values-based culture focused on safety can positively change the oil and gas industry. It describes one company's approach, including clearly defining values like integrity and safety, building a culture where employees report unsafe conditions without blame to encourage learning, and maintaining the culture through meetings and leadership visits to prioritize safety. This holistic approach helped create an environment where employees protect one another by following safety procedures.
1. How the Right Culture Can Change the Oil & Gas Industry
The values of a company define its culture. This rings more true in the oil industry, where
executive culture has a very important role. While it is generally not easy to implement a value-
based culture, it is of especial importance in Oil and Gas where safety is paramount to
protecting the health and well-being of every person.
The company I currently work for has clearly defined values - Integrity, Sustainability, Reliability,
Health and Safety and Respect and Care. We based our culture on our values to shape the
actions and interactions of our colleague. There was no second thoughts or compromise
involved with respect to these values.
Culture Transformation
Culture transformation was in need of the hour when I took over as CEO at Paradip. Upon my
arrival, I introduced certain changes so that we would not land into problems. We started driving
the topic of a safe culture and, when we started to see an impact, introduced reporting
conditions of the highest level, bring the number of unsafe conditions down. It took a while but
now an environment has been created to bring out out the culture of safety in the organisation.
Preventive Action
We built a culture wherein we support people who observe and report unsafe conditions. Once
corrective action is taken, it is then circulated amongst everyone in the company so that others
can learn from the incident. There is no action taken against the those who report so that it
encourages more people to come forward. The benefits of this system became more readily
apparent over a period of time as the reporting of unsafe conditions acts and corrective actions
led to a reduction in the number of unsafe conditions.
Holistic approach
We maintain this culture of safety through monthly town hall meetings in which we discuss how
safety is important for the industry, especially oil and gas, an industry that prizes safety above
all else. I also have ‘Walk the Talk’ sessions where I go out in the field and speak to people
about various issues like safety, culture and productivity.
Our performance management system incorporates these core values too, with performance
coupled with value-based assessments. If we find an incident to be very negligent or if an
employee is repeatedly involved in incidents, then rigorous action is taken.
‘No Blame’ Culture
Emphasis is placed on everyone taking ownership and following our values. The best policy in
the oil-tanking industry is a ‘No Blame’ culture. If something happens in the petroleum industry
like near-misses or unsafe conditions, the cause might be a deviation from standard operating
procedures. To avoid incidents like these, corrective action is taken to remedy unsafe conditions
and acts. This way, employees protect not only themselves but others as well by following
safety procedures and behaving in a way that ensures everyone is well informed and able to
perform to their best.
Cultural Diversity
Strengthen our culture further is the diverse nature of our workforce. Hailing from across the
country, everyone works in a different yet compatible style with their own cultures and cross-
cultural capabilities. It also helps that I have extensive experience, both national and
2. international, and am always ready to step in. We also have communities like the Assets &
Operations community that bring us together.
These practices suited my company well but it is up to you to decide which values would be the
best fit for your company, wants and needs. Based on those values, you can change your
company culture for long-term changes that will affect the employee's behaviour and mindset.