Carnrite was contracted to conduct a benchmarking study of an integrated major’s upstream performance against its competitors. Several performance gaps were identified, including business processes, organizational structure, portfolio, risk mitigation processes, capital allocation strategies and knowledge retention.
Operating costs, assets, misaligned leadership and poor exploration performance had put the client’s upstream business at a competitive disadvantage. The objective was to transform the company’s upstream enterprise into a best-in-class performer. Carnrite worked with the client to develop a three phase approach to close these gaps. In phase one, a deeper analysis of the client’s upstream business performance was conducted. Focus areas, as well as quick wins, were identified in the areas of market positioning, business processes, overhead and operating costs across the asset base. Tracking tools and metrics to determine the success of the transformation were also developed.
In the second phase, the teams developed and implemented operations and tracking tools, including a balanced scorecard, and solutions for the quick wins. Carnrite also worked with client employees identified as future leaders in the company to create a blueprint and implementation plan for a new upstream business model. In phase three, Carnrite assisted with implmenting mechanisms to ensure sustained and continuous improvement.
Carnrite’s strong project management skills kept this mult-year initiative moving forward and ensured that it received the necessary attention to meet its objectives on schedule.