March | 2014
The scope of an IO program can reach from the reservoir to the sales point and include organizational, data and technology elements. Multiple functional areas are impacted, and it is important that strategic direction, design and implementation decisions consider what is best for the overall company and IO objectives, not just one individual group. In order to accomplish this most effectively, a governance function must be part of pre-program planning.
What NOT to Do
When governance-related shortfalls are present in an IO program it can quickly become a struggle to engage end-users and deliver effective, global solutions on the right timeline. Over the years, we have observed a number of IO initiatives that encountered difficulties due to governance-related reasons which include:
Effective Governance, the Structure
The structure of the governance function is three-fold:
Effective Governance, the Process
A clear governance process must be mapped out as part of program pre-planning. This process should be at a level of detail that allows it to be parsed according to the audience. In other words, the process map will look different to a management-level audience than to front-line employees; the former will see information summarized at a management level while the latter will see detail that pertains to their day-to-day activities.
Once the governance process has been mapped out and established, it is critical to communicate the details to stakeholders – hence the need for the parsing noted above. This allows members of the impacted audiences to ask questions and get a clear idea of how they will need to interface with program governance. It will also demonstrate that the IO program is guided by a well-represented governance organization. Communicating the governance process at the right level of detail for each audience will go a long way to help instill the kind of “change mindset” needed to make the program successful.
The information I’ve offered here begins a conversation about effective IO program governance, and hopefully provides some food for thought for anyone seeking an IO approach for their organization. My next post will consider the second essential for successful IO program management – stakeholder engagement.
If you have any other views, please do write in.
Mr. Bart Stafford leads the Wipro oil & gas upstream solution group focused on Production Optimization & Integrated Operations. He previously led SAIC's global digital oilfield solution until the Wipro acquisition of SAIC's oil & gas practice.
As a part of his responsibilities at SAIC and Wipro, he has worked directly with the Digital Oilfield/Integrated Operations programs at Chevron, ZADCO, Shell, PTTEP and Qatar Petroleum. In addition he has been an active participant in industry discussions and conferences focused on these topics. He has also worked with joint industry/academic initiatives focused on providing an educational foundation for college graduates who wish to pursue careers in this domain.
Prior to joining SAIC, he was vice president of product marketing and sales for upstream oil & gas software companies OpenSpirit and Petris Technologies. As account director at CSC Mr. Stafford managed a large outsourcing engagement for a U.S. based oil & gas major as well as delivering management consulting projects for oilfield services clients.
Mr. Stafford started his professional career with Mobil Oil and later moved to Burlington Resources where he progressed through technology management roles. Bart holds a degree in business data processing from Stephen F. Austin State University and a management certificate in energy from Rice University. Bart is a member of the SPE where he is a frequent speaker and conference committee participant.
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