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THE GREAT CREW CHANGE: WHAT’S NEXT FOR THE OIL AND GAS INDUSTRY’S WORKERS? TODD BURDETTE RICH MILLIGAN P2 Confidential OCTOBER 17, 2013.

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Presentation on theme: "THE GREAT CREW CHANGE: WHAT’S NEXT FOR THE OIL AND GAS INDUSTRY’S WORKERS? TODD BURDETTE RICH MILLIGAN P2 Confidential OCTOBER 17, 2013."— Presentation transcript:

1 THE GREAT CREW CHANGE: WHAT’S NEXT FOR THE OIL AND GAS INDUSTRY’S WORKERS? TODD BURDETTE RICH MILLIGAN P2 Confidential OCTOBER 17, 2013

2 P2 Confidential2 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 Confidential3

4 4 Retiring Baby Boomers Potential Implications The Millennials The Important of Learning Case Study- P2Support How to create the Millennial Organization Q&A Contents

5 P2 Confidential5 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.com 2 – 2011 Schlumberger Business Consulting Retiring Baby Boomers

6 P2 Confidential6 Potential Implications – Drillers

7 P2 Confidential7 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

8 P2 Confidential8 The Millenials – The Industry’s Future

9 P2 Confidential9 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

10 WhyWhyMillennialsmatter 15 th Annual CEO Survey, PwC, 2012 Why Millennials Matter

11 P2 Confidential11 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 Changing Expectations Working with cutting edge technology to respond to market demands Desire for greater non- financial opportunities: L&D is top choice for employee-

12 P2 Confidential12 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

13 P2 Confidential13 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

14 The Importance of Learning

15 GlobalTrends Technology WorkplaceWorkforce 0 Workplace mobile, global, virtual, shrinking lifespan of knowledge Workforce Baby Boomers retiring, Millenials become majority, talent wars, emerging professions Technology Social-centric (social media), collaborative, crowd sourcing, open source, rapid and iterative changes, mobility GlobalTrends

16 TheEnterpriseLearningEcosystem Enterprise Learning 2.0, PwC, 2012 Organization Unstructured Defined desired results at start Open, self-directed participation Fixed duration Ad hoc teams with little or no structure governing interactions Idea markets, Crowdsourcing Innovation contents Anyone can participate at any time Individuals take multiple, simultaneous roles Dynamic, constantly evolving cadence On the job learning, Peer knowledge sharing, 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 Structured 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

17 P2 Confidential17 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

18 P2 Confidential18 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”

19 P2 Confidential19 “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

20 How to create a Millennial Org

21 P2 Confidential21 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

22 P2 Confidential22 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’

23 P2 Confidential23 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?

24 P2 Confidential24

25 Questions


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