1. CLIENT STORY Essar Oil Essar Oil operates a fully integrated, international oil company. Focus areas include exploration, and refining interests on three continents. In the first half of FY 2012-13, Essar Oils leadership was concerned with two trends which could significantly impact the companys prospects international crude price volatility and increasing internal complexity. Among other considerations, they needed to equip their middle and senior management to handle the challenges ahead. To address this, enParadigm implemented a simulation-based intervention for Essar Oil. Six months later, senior managers across functions report that the intervention inculcated critical practices like inclusive cross-functional decision making, revenue-driven operational planning and efficient resource utilization. This report traces the course of the intervention, implemented in early 2013. It puts the solution in context before examining business impact six months after the event. Business Situation In Q2 of 2012-13, Essar Oil's revenue touched INR 21,000 crore, having risen consistently year on year. However, two significant concerns emerged at this juncture: Cost uncertainty due to macroeconomic factors. Their profitability now depended heavily on external factors like volatile crude oil prices and an increasingly depreciating Indian Rupee. Hidden cost and revenue drivers due to increasing scale and complexity. Complexity and rapid growth saw managers focusing on day-to-day firefighting. They were increasingly constrained to functional silos and, while each department was effectively run, collaborative opportunities on growth, cost and revenue fronts slid out of focus. Mr. Lalit Kumar Gupta, MD & CEO, with Mr. Harsh Bhosale, Head HR, sought enParadigms Leadership Simulation WorkshopTM to equip their managers to deal with cost uncertainty and understand the financial impact of every business decision they made; and also to be able to consider the bigger business picture outside of their functional roles. Solution enParadigm's business simulation experts and facilitators worked with Essar Oils leadership team as well as individual participants over a two-week period to understand the business objectives of the proposed learning intervention. While the leadership team outlined strategic imperatives, the individual participant interviews brought out specific strengths and skill gaps. enParadigm then designed a Leadership Simulation WorkshopTM on its Learning CurveTM simulation platform. Company Essar Oil Mumbai, India (Headquarters) Industry Oil and Gas enParadigm Interventions 2 Leadership Simulation WorkshopsTM , Feb and April 2013 Participant Functions Sales, marketing, production, procurement, finance and maintenance Participant Level Middle and senior management Concerns Addressed - Increasing business complexity - Volatile macroeconomic cost environment - Linking operational decisions to financial impact - Cross-functional cohesion

2. The workshops were executed in February and April of 2013 for over 60 senior managers across departments from marketing to finance to HR. The intervention itself was very well received, with participants appreciating the experiential pedagogy as well as the relevance of concepts covered. However, both enParadigm and Essar Oils top management were more interested in actual business impact - in determining if the learning translated into deliberate everyday business actions. Results enParadigm reached out to Essar Oil a full 6 months after the 3-day intervention, to assess application levels of the workshops learning. The participants had actioned relevant learning from the workshop and were beginning to see direct impact on business. A few significant outcomes among them were: New revenue-maximizing, smart work opportunities were found and pursued, giving significant returns for negligible costs and effort. I work in marketing dispatch. The profit margins on domestic dispatch are higher than export, so I now see to it that they are done on priority. The bottom line has seen positive impact and inventory holding cost is also reduced as I speed up dispatches. - Paresh Choksi, Head Coastal/Barreling Plant/Audit Cross-functional and inclusive decisions improved, with managers linking internal plans to other departments and overall objectives. I am into the engineering of retail outlets and we are currently expanding the same at a very good pace. I need to coordinate with the commercial department, accounts and top management for roll-outs. Earlier, I did not understand why they rejected certain projects, but now I am able to work with them in making the right decisions - Ramesh Mehta, GM, Engineering The workshop simulated the following: An experience of the challenges in running a complex business organization Illustrations of the bottom line impact of their operational decisions A platform for managers to live through and navigate a volatile macroeconomic environment A constant undercurrent of the challenges & benefits of collaborating across functions The workshop was a great hands-on experience for our management. The elements that go into execution, including understanding each others' functions, team-spirit, challenges from the market, communication issues these were all good takeaways. - Harsh Bhosale, Head, Human Resources, Essar Oil ENPARADIGM | CLIENT STORY | ESSAR OIL | 2 3. Cost optimization on major drivers like manpower overheads, holding costs and interest expenditure. They company has around 40,000 transmitters. Initially, we used to completely replace faulty transmitters, which would cost anywhere between INR 25,000 and INR 5 lakhs. After understanding the long-term cost implications, we have invested in repairing instead of replacing, creating significant savings. - Anil Sherekar, Lead ISBL1 and Utility - Instrumentation Maintenance Focus on areas of maximum impact, which helped in efficient allocation of time and resources. Not chasing everything was a breakthrough learning for me. There were 150 odd audit observations. 20% of them have 80% of the impact. So my team focused all our energy on identifying and implementing these 20% of observations. - Sachin Aroskar, GM, Internal Audit, Essar Energy Economics and finance-driven planning at multiple levels helped improve Essar Oils competitiveness in a commoditized market with highly volatile supply side costs. Operations inputs are now sent to economic planning as well as scheduling before we finalize plans. Also, corrective actions are continuously taken. I learnt this process from the workshop - Jayesh Gajjar, Head ISBL Long-term focus, even with support functions, proved vital to sustaining their competitiveness which was increasingly based on talent and best practices. We do quarterly as well as yearly audits. I started to focus more on the yearly audit, as these provided observations for improvements. I have now developed a relationship with the auditees. My team now focuses on the observations more closely and acts as a solution provider for the business. - Sachin Aroskar, GM, Internal Audit, Essar Energy ENPARADIGM | CLIENT STORY | ESSAR OIL | 3 talktous@enparadigm.com 3rd floor, Twin II Complex, Marol Maroshi Road, Andheri East, Mumbai 400 059 enParadigm Knowledge Solutions LLP For enquiries and nominations to our next workshop: John Cherian, +91 97257 69408, john.cherian@enparadigm.com. We simplify business complexity through simulation based interventions for senior and middle management