The major strategic trends and challenges potentially facing Geoscience leaders September 2015

Using the Geo-Perform approach - what are the geoscience analogues of strategic challenges ? Fault line Plate slip Folding Compressional or extensional tectonics Unconformity Rupture Tsunami Creep Seismic activity Imminent earthquake Critical stress build-up Seal Noise Ground roll Overburden Foreshock / aftershock Tremor Zone of weakness

Presumptions You have a wide geographic remit comprising multiple assets, in various phases of field development, with multiple energy forms There is a geographically & technically diverse Geoscience team involved in leading and supporting all this activity, working closely with a range of subcontractors Technically - you have good people, with high level technical skills They have very good tools (Geoscience software applications) The main challenges come from market / external changes – in all areas These drive “organizational” decisions – direction, priorities, structure, resource allocation, core capabilities and those that can be outsourced, work division, location, roles & responsibilities, metrics, department boundaries, integration, collaboration, skill groupings There is an increasing challenge from the necessity of increasingly specialist skills and expertise, having to coming together to make good overall business decisions “Human factors” present other challenges – some related to the downside of people with tremendous technical expertise - individuals, teams, time, styles, perspectives, lack of creativity, differences of opinion, decision-making.

Strategic challenges Increasing larger organisations – with associated bureaucracy Continuing challenges within matrix organisations Increasing demands on geoscience functions Increasing technical / specialist requirements Need to have a more integrated view, approach Need to be more business and value focused Greater volumes of data and diversity, occasionally more data harmonisation Increasing influence and demands of national governments and NOCs Increasingly sophisticated and complex software applications More complex demands Demands for more standardization More diverse range of tasks, requirements and expectations

Some responses what new skills / capabilities required what keep in-house &/or outsource breadth versus depth of skills roles of Supervisor, Manager, Leader skills of people at different levels in the organisation span of control people tasks and structuring of tasks limits to scope of competence how best to integrate / organize

Summary and solutions Potential challenges: Performance doesn’t meet expectations In-efficiencies, costs too high Consolidation, organizational location decisions – what activities, where Lack of integration Lack of creativity Lack of flexibility & / or sharing Silo mentality Lack of measurement Challenges around team-work, collaboration / sharing In-effective workflows Optimal balance between standardization & autonomy Confusion or conflict on roles & responsibilities Managing greater specialisms and increased complexity Collaboration across regions Sharing best practices Scope & goal: achieving the desired performance of a Geoscience function through better optimization and alignment of the organization, tasks, methods and people Potential solutions: Re-organization Re-location Different / new processes Different / new metrics Role re-shaping Improve fit of roles & people Data sharing Greater partnerships and collaboration Defined work outsourcing strategy Training / skills development Benchmarking Potential root causes: Changing work, demands, pressures, needs, priorities Growth New investments Globalisation Acquisitions Consolidation Lack of catalyst, urgency or mandate for change Changes functions and locations New technologies

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