1 – 3 December 2015 | Radisson Blu Hotel, Kuwait

Managing Change During Transformation

FARRUKH SOHAIL Senior Specialist, KOC

• 20+ years of experience in large scale transformations

• Formulated the R&D/Technology strategy for the oil & gas sector in Kuwait

• Designed the R&D/Technology Roadmap that is being used to prioritize investments on strategic technology challenges

• Designed and implemented Balanced Scorecard for Research and Technology businesses at KOC

• Made and managed investments in various sectors across Asia

• Crafted the turn-around strategy for Kuwait Airways

www.kockw.com

R&D at KOC – A case for Change

6

KPC and its Subsidiaries

Upstream Midstream Downstream

7

KPC’s 2030 Growth Plan Targets

Do

mes

tic

Oil Production Capacity

Inte

rnat

ion

al

Oil/Gas Production Capacity Oil/Gas Reserves

2010 2030

2010 2030 2010 2030

Domestic Refining PIC Production

2010 2030 2010 2030

Up

stre

am

Do

wn

stre

am

+150%

+35%

+85%

+55% +230%

8

To Achieve KPC’s Plan

Enhance Its oil recovery through secondary and tertiary methods

Grow and produce non associated gas

Segregate Crude Streams

Have Domestic & International Integrated refining & Petrochemical Operations

Operate and in a continuously ‘safe and Cleaner’ Environment

….

Produce and refine heavy oil

In 2030 KPC will…

9

Vision of Research & Development

To be a preeminent research and technology center that maximizes the value of Kuwait’s hydrocarbon resources in a sustainable manner

Leverage internal capabilities and global partnerships to provide cutting edge R&D and Technology solutions to Kuwait’s oil and gas sector

10

R&D/TM Roadmap will play a critical role in achieving the growth targets

Integrity & Sustainability

Materials, Inspection &

Corrosion

Flow Assurance

Water Management

Environmental

Management

Energy Efficiency

Downstream Shared Upstream

Process

Oil Refining Processes

Gas Process. &

Treatment

Heat Exchange Eng.

New Process

Development

Wave Phenomena

Applied Geosciences

Reservoir Characterization

Formation Evaluation

Rock and Fluid

Properties

Fluid Flow

Drilling and Completions

Drilling

Completions

Stimulation

Improved HC Recovery

Secondary Recovery

EOR

Next Generation

Gas

Heavy Oil

Tight Reservoirs

Well Management

Artificial Lift

Well Intervention

Monitoring

Catalyst

Conventional Oil

Refining

Heavy Oil Upgrading

Product Quality

Refined Products

Advanced Analytical

Techniques

Subsurface Imaging

Upstream Shared Downstream

Put Forward the 5-year Roadmap

Formulate R&D/R&T Projects

Diagnose & Prioritize Challenges

Compile Challenges

Review & Detail Challenges

Prioritize Challenges

I II III

11

Strategic Collaboration are being established to implement the Roadmap

Strategic collaborators are the most leveraged and

integrated partners with whom a long term

collaboration exists on many dimensions on top of the project portfolio

Relationships are those with whom prior

project work has been exercised or there

has been minor involvement recently (e.g., through consortia)

Project “suppliers” are engaged on a specific

project or a portfolio of projects under a certain

program where the strategic collaborator has no capabilities or capacity

Strategic

Engagement

Project

Engagement

Relationship

(Not yet collaborators)

Collaborators Engagement Level

Manufacturers /

Service Providers

O&G Companies

Universities

/ Research

Centers

I

II

III

Type of Collaborators

12

We also required expertise in several disciplines

Reservoir Characterization

Drilling and Completions

Well Management

Integrity & Sustainability

Improved Hydrocarbon

Recovery

Next Generation

Downstream

Subsurface Imaging 1

2

3

4

5

6

7

8

Reservoir Engineer

Chemical Engineer

Metallurgical Engineer

Completion Engineer

Mechanical Engineer

Drilling Engineer

Environmental Engineer

Corrosion Engineer

Computer Scientist

Geologist

Geochemist

Chemist

Petro physicist

Physicist

Geophysicist

Scientific Disciplines

1

2

3

4

5

6

7

8

1

2

3

4

5

6

7

Engineering

Disciplines

Required Expertise R&D Platforms

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Managing Change During Transformation at R&D

14

Pri

ori

ty In

itia

tive

s

Collaboration

People

Governance

For these Priority Initiatives, we developed an Action Plan by going through the Four Steps in Managing Change

Funds

Develop Action Plan and Kick-off Implementation

Define Key Stakeholders

Identify Barriers Define Change Goals

Identify challenges

Translate challenges into change goals

Clarify barriers which obstruct achievement of change goals

Outline initiative-specific actions

Determine formal and informal levers

Deliver action plan

Measure progress against change outcomes

Identify stakeholders and their level of involvement

15

For each initiative, we identified change goals, barriers and stakeholders

Change Goals

Right enablers to attract, retain and develop talent Enablers to create an environment that is conducive for staff to achieve their objectives Clear expectations to candidates

People Initiative: Change Management Details

Workshop

Barriers to Change

Current recruitment practice (i.e., process and cycle) Limited opportunity in terms of practices to provide management roles Perception of Kuwait by potential candidates

Decision Makers

People that Drive Change Management Outcome

Influencers

People that Shape Change Management Outcome

Impacted

People to Keep Aware of Change Management Outcome

16

Barrier: Current recruitment practice

• Train Stakeholders (Impacted)

in utilizing the CV screening and interviewing tools specific to R&D

Barrier: Current recruitment practice • Meet with relevant HR staff

to ensure their support in CV screening and interviewing process

• Communicate the above with other stakeholders via Planning Committee

• Meet with HR to align on recruitment calendar

Barrier: Current recruitment practice • Hire X R&D staff in 2015/2016

Communication Training Performance Management

Next, we developed the Change Action Plan including training and communication initiatives

Workshop

Barrier: Current recruitment practice

• Modify recruitment process

to incorporate CV screening and Technical Evaluations specific to R&D

• Develop CV screening and Technical Evaluation tools

Modify Process / Tools

4 3 2 1

1 2 3 4

17

We also developed a tool to monitor and manage the change initiatives

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Implementing the Change Action Plan Recruitment Practice

Interview Candidates & Extend Offer

Conduct Technical Evaluation

Short List Candidates Receive CVs

Technical Evaluation Forms

• Receive CVs from the existing channels at HR

• R&D Management to conduct final interview

• Job offers are extended to successful candidtes

• Candidates are screened against the CV screening criteria

• Only candidates with passing score are invited to the Technical Evaluation

• Perform Technical Evaluation either face to face or via video conferencing

• Only successful candidates are invited for the interview with R&D Management

CV Screening Forms

Process Improvement

Recruitment process was enhanced by introducing R&D specific CV screening and Technical Evaluation

Recruiter 1

Recruiter 2

. . .

Job

Description

1

Criteria was established and tools were developed for CV Screening and Technical Evaluation

Academics

Experience

Communication Skills

Leadership

Fit With KIPRC

I

II

III

IV

V

Screening Criteria CV Screening Form Technical Evaluation Guide

1

Timing Session

9:00 – 9:20 Introduction and Interview Video Examples

9.20 – 10.20 Interview Process

10.20 – 10.40 Interview Video Examples - Rerun

10.40 – 11.00 Break

11.00 – 11.15 Interview Quiz

11.15 – 11.45 Interview Forms

11.45 – 12.45 Interview Role Plays

12.45 – 13.00 Wrap-up and Q&A

Training in screening the CVs and in conducting the Technical Evaluations was provided to Stakeholders

2

Communicated the change to all Stakeholders

3

• Met with relevant HR staff to ensure their support in CV screening and interviewing process

• Communicate the process to all stakeholders

• Aligned R&D recruitment calendar with HR

Result is faster selection of better candidates

Several Change Initiatives are currently underway at R&D: • Strategic Collaborations • People • Governance • Funding Mechanism

Take-Away

1. Identify change goals and make an action plan

2. Get decision makers involved early

3. Train & engage staff that will be effected by change

4. Communicate, communicate, communicate

5. Monitor change and align continuously