1. Encouraging Effective Use of Skills Gillian Black, Policy Affairs Director 12 January 2010

2. Aims Overview of OPITO – The Oil and Gas Academy; Encouraging effective use of skills – why, what and how? Some challenges

3. Overview of OPITO, The Oil and Gas Academy Ensures industry has a safe, effective and skilled workforce; Independent, owned by industry and trade unions, self- sustaining, not for profit, global; Invests over £10m per annum on skills and workforce development issues, any surplus is reinvested to improve safety and skills; Works in collaboration with industry employers, learning and training providers, education/academia, Government organisations Cross-industry governance board – Operators, Contractors, Well Services, Drillers, Subsea, Trade Unions, HSE offshore division

4. Encouraging effective use of skills – Why? Some lessons from the past Problem Failure to plan and develop long-term skills and feedstock strategies = skills shortages Implications Significant cost inflation Reduced competitiveness Decreased business efficiency Delayed projects Unattractiveness of industry as a career

5. As the Industry’s Academy: Take all opportunities to cascade message, encourage organisational buy-in, demonstrate best practice Highlight our “GEM” system –Innovative bonus scheme to support, encourage and reward working behaviours for effective business practice –9 identified behaviours identified as being important to OPITO’s culture and values –Much evidence where actions, behaviours and attitudes have led to measurable value to organisation Encouraging effective use of skills – What can we do?

6. Harness the potential of the next generation – 5 star code of practice to improve productivity. Opportunity to create an industry “standard”? Involved in 2 SFC funded Skills Utilisation projects –RGU/Aberdeen College to develop an employability/productivity best practice model for industry –OU Scotland “Recognising and Enhancing Skills Acquired in the Engineering Workplace: From Modern Apprenticeships to BEng” Profile PSN as an example of good practice for their learning and competence management system = improved productivity and workforce satisfaction Encouraging effective use of skills – What can we do?

7. New Cross- Industry Skills Forum – currently under way –led by the Academy –a forum for any skills issues or needs affecting the industry or individual companies to be brought to the Academy’s attention –open to any company working within the UK upstream oil and gas industry –membership made up of those actively involved in the areas of skills, training and education –link in to existing skills groups/academia at a senior and working group level –coordinate sub groups to address particular issues or projects when required Encouraging effective use of skills – How?

8. … But challenges Short term corporate agenda v long-term altruistic agenda Encouraging skills innovation in all organisations Sharing of best practice in a competitive industry Industry enthusiasm for skills agenda which is not life- threatening