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THE GREAT CREW CHANGE: W H AT ’ S N E XT F O R T H E O I L A N D G A S I N D U S T RY ’ S W O R K E R S ?
TODD BURDETTE
RICH MILL IGAN
P2 Confidential
O C T O B E R 1 7 , 2 0 1 3
P2 Confidential 2
• The upstream oil and gas industry is undergoing what’s widely referred to as “The Great Crew Change.” Thousands of seasoned petro technical professionals (PTPs) are set to retire in the coming years; a development that will leave this evolving industry and its many complex projects in the hands of the less experienced. Ready or not, upstream companies are already facing this experience and knowledge gap that is taking shape and sure to widen.
• How did this crew change come about?• What are its implications?• What approach should oil and gas companies take?
Abstract
3
Changing of the Guard
P2 Confidential
P2 Confidential 4
• Retiring Baby Boomers• Potential Implications• The Millennials• The Important of Learning• Case Study- P2Support• How to create the Millennial Organization • Q&A
Contents
P2 Confidential 5
• Retirements are in progress and roughly half the industry will retire in 10 years 1
• “The big crew change is happening now and will be mostly over in five years," 2
• By 2014, the flow of younger to experienced petro-technical professionals only about 17,000, compared with roughly 22,000 2
– Net shortfall of 5,000
1 – Rigzone.com2 – 2011 Schlumberger Business Consulting
Retiring Baby Boomers
P2 Confidential 6
Potential Implications – Drillers
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• A 20% reduction in performance today would mean approximately $35 Billion in economic costs
• 20% of E&P professionals is roughly equivalent to 80,000 employees (with <5 years experience)
Information courtesy of J. Ford Brett – President, PetroSkills
Potential Implications
P2 Confidential 8
The Millenials – The Industry’s Future
P2 Confidential 9
• Generation born between1980 and 2000 – Also known as Generation Y or the Net (Internet)
Generation
• Entering employment in vast numbers– Have a lifelong affinity for technology and internet– Accustomed to ubiquitous digital connectivity instant
access to information– Collaborative by nature and trust online social
relationships– Desire a fluid balance of work and social life– Strongly believe in training and one-on-one mentoring
Millennials Defined – PWC Study
Why Millennials matter
15th Annual CEO Survey, PwC, 2012
Why Millennials Matter
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• By 2020 the number of millennials in the workplace will double to approximately 50% of the workforce. Can you turn this trend into a competitive advantage?
• Millennials already form 25% of the workforce in the US and account for over half of the population in India.
Changing Workforce
provided benefits
Diverse
Generation
Gender
Culture
Different Work Styles
Collaborative
More virtual communication
Additional Learning
Options
ChangingExpectations
Working with cutting edge technology to respond to
market demands
Desire for greater non- financial opportunities: L&D is
top choice for employee-
P2 Confidential 12
• Loyalty-lite• Development and work/life balance are more
important than financial reward• A techno generation avoiding face time• Moving up the ladder faster• The power of employer brands and the waning
importance of corporate responsibility• Wanderlust• Generation tensions• Learning and Development is one of the most
significant factors in employee selection
Behaviors of Millennials
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• A struggle to support how employees interact and engage today.
• Unspoken knowledge is not captured, stored or shared– Cannot be distributed or learned with the right
contextual relevance
• This complex landscape needs to be actively managed and supported at the Enterprise level– Must ensure that firms develop and attract talent
for sustainable competitive advantage– Key to attracting and maintaining the Millennials
Additional Complications
The Importance of Learning
Global Trends
Technology
Workplace Workforce
0
Workplacemobile, global, virtual,
shrinking lifespan of knowledge
WorkforceBaby Boomers retiring, Millenials become
majority, talent wars, emerging professions
TechnologySocial-centric (social media), collaborative,
crowd sourcing, open source, rapid anditerative changes, mobility
GlobalTrends
The Enterprise Learning Ecosystem
Enterprise Learning 2.0, PwC, 2012
Org
aniz
ation U
nstr
uctu
red
• Defined desired results at start• Open, self-directed participation• Fixed duration• Ad hoc teams with little or no
structure governing interactionsIdea markets, Crowdsourcing
Innovation contents
• Anyone can participate at any time• Individuals take multiple,
simultaneous roles• Dynamic, constantly evolving
cadenceOn the job learning, Peer knowledgesharing, Enterprise social networks
Blogs, Wiki’s
• Set relationships• Expectations for contact frequency• General direction for what is shared
Huddles, Impromptu status meetings, Mentoring programs, Communities of
practice
Stru
ctur
ed
• Defined curricula/learning goals• Set participant lists• Established agendas• Fixed cadence
Instructor-led classroom courses,Computer-based training,Assigned learning plans
Defined Undefined
Outcomes
Enterprise Learning Ecosystem
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• Understanding where to focus your Learning spend will help the design of a more balanced Learning strategy to meet organizational-wide needs.
Realigning Support and Focus
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• Most learning happens outside of the classroom• Organizations are moving away from traditional
forms of Learning and embracing innovative solutions
Paradigm Shift in Learning
Old school definition: Learning = Training, Courses, Webinars
Newer expanded definition: Learning = Innovation,
Knowledge Sharing,Collaboration, on-demand/just in time
access to knowledge “in the flow of doing work”
P2 Confidential 19
“Information is not knowledge” - Albert Einstein
• Technical Advancements in Data Capture– Large Databases– Increased Connectivity– Pervasive Data – High Volume
• Useful Data– Lacking Context
• Without Contextual relevance, overflow of information creates chaos
Context Knowledge
How to create a Millennial Org
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• Structure– Flexible, team oriented, dynamic and adaptable
• Tools and Technologies– High Tech, allowing for collaboration and multi-tasking – Forums, communities, wikis, blogs, chat rooms
• Knowledge management– Focused learning environment– Capture and share knowledge with the right contextual
relevance
• Data Management– Organized knowledge share for easy search and dissemination
Definition – The Millennial Org
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Organizational transformation is needed to adapt to the significant shifts in technology and culture
• Recruiting and employee engagement
• Workplace environment training
• Development Technology
• Pervasiveness and skills
• Contextualize information
Getting Millennial ‘ready’
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To attract and retain Millennials, pro-actively managing your talent essential
• Alignment– Business Plan– Talent Strategy
• Face the future
• Pay attention to pivotal roles
• Financial Considerations– Salary – Boomers and Millenials– Training – Balanced Approach
What must employers do?
P2 Confidential 24
Questions