If you work in an oil and gas company, then you are familiar with the functional divides. We are all familiar with the jokes about geologists vs. engineers. We laugh and even create our own. But jokes aside, oil and gas companies operate in silos and with reason.
But while organizational silos may be necessary to excel and maintain standards of excellence, collaboration and connection across the silos are crucial for survival.
For an energy company to produce hydrocarbons from an asset, it needs all the departments to work together (geoscience, engineering, finance, land, supply chain …etc.). This requires sharing of detailed information and collaborating beyond meeting rooms and email attachments. But the reality in many oil and gas companies today is different, functional silos extend to information silos.
Connected Silos Are Good. Isolated Silos Are Bad
In an attempt to connect silos, “Asset Teams” or “Matrix” organizations are formed and incentive plans are carefully crafted to share goals between functions. These are great strides, but no matter the organizational structure, or the incentive provided, miscommunications, delays, and poor information hand-over are still common place. Until we solve the problem of seamless information sharing, the gap between functional departments will persist; because we are human and we rationalize our decisions differently. This is where technology and automation (if architected correctly) can play a role in closing the gap between the silos.
Asset team members and supporting business staff have an obligation to share information not only through meetings and email attachments but through organizing and indexing asset files throughout the life of the asset. Fit-for-Purpose IM architecture has a stratigic role to play in closing the gap between the functional silos.
Connecting Functional Silos With IM Takes Vision & Organizational Commitment
Advancements in IM (Information Management) and BPMS (Business Process Management Systems) can easily close a big part of the remaining gap. But many companies have not been successful in doing so, despite significant investments in data and process projects. There can be many reasons for this, I share with you two of the most common pitfalls I come across:
- Silo IM projects or systems – Architecting and working on IM projects within one function without regard to impact on other departments. I have seen millions of dollars spent to solve isolated geoscience data needs, without accounting for impact on engineering and land departments. Or spent on Exploration IM projects without regard to Appraisal and Development phases of the asset. Quite often, organizations do not take the time to look at the end-to-end processes and its impact on company’s goals. As a result, millions of dollars are spent on IM projects without bringing the silos any closer. Connecting silos through an IM architecture requires a global vision.
- Lack of commitment to enterprise standards – If each department defines and collects information according to their own needs without regard of the company’s needs, it is up to other departments to translate and reformat. This often means rework and repetitive verification whenever information reaches a new departmental ‘checkpoint’.
The above pitfalls can be mitigated by recognizing the information dependencies and commonalities between departments then architecting global solutions based on accepted standards and strong technology. It takes a solid vision and commitment.
For a free consultation on how to connect silos effectively, please schedule your appointment with a Certis consultant. Email us at firstname.lastname@example.org or call us on 281-377-5523.