Beyond the EVP

The experience of Subsea 7 (so far…)May 2015

Steve Harvey

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Who are Subsea 7

The Global Engagement Challenge

A perfect Storm

Our Response so far…

Our Next Steps…

So what’s this chat about?

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What we do

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The Global Context

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Traditional Engagement is not working

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New Rules of Engagement – Hay Group 2014

• The Major forces reshaping how organisations will attract, motivate and retain people:

– The world of work is changing – 6 Mega Trends• Globalisation• Environment• Demographics• Individualism• Digitisation• Technology Convergence

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From Integration to Engagement and beyond…

2004 to 2012Integration of

people into the business

2012 to 2015Engagement of people with the

business

2015 OnwardEmpowerment

of people within the business

Focus on culture, engagement, leadership,

empowerment and fit

Bersin by Deloitte

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A Perfect Storm

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The challenge for Subsea 7 – No 1

Market •Saudi and USA – A race to the bottom?

Oil Price •Collapsing…

Capex •Jobs are being cancelled or moving to the right

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Subsea 7 HayGroup Insights - Effectiveness profiles

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The Challenge For Subsea 7 – No 2

The results suggest a lack of connection between employees and the strategy / senior management team (Connect People with the Strategy)

People aren’t receiving feedback on their performance, there is a need for more coaching to align behaviours with the strategy (Create a feedback culture)

There is scope for more collaboration across the business (Create opportunities for collaboration)

01

02

03

To prevent a potential talent drain, more focus needs to be applied on fulfilling people’s career aspirations (Offer clear career opportunities)

04

Insights 2014 - Opportunities for Improvement

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The Challenge for Subsea 7 – No 3

Subsea 7

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So how do you change rapidly…and engage people with a long term future, when they think they may not have a future!!

Subsea 7’s Response

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Subsea 7’s 2020 Vision – Our 5 Focus Areas

Strategy Technology

Life of Field

Project Accountabili

ty

Organisation and Ways of

Working

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Collaboration

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Ways of Working - Collaboration

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Project Accountability

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Projects are our business

They are the onlyrevenue generationvehicle we have andeveryone, whetherworking directly in aproject team or in asupporting role, must befocused on thesuccess of the project.

We all need to be clear on our accountability

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• Project Managers hold single point accountability for delivery of their project

• Project Managers must mitigate risk and maximise opportunity on their project, as well as supporting the management of Group risks and opportunities

• Strong support from Functions and Service Providers is key to project success

• The role of the project and the role/obligations of our internal Functions/Service Providers must be aligned to ensure our people collaborate and Subsea 7 succeeds

• Project Managers are also accountable for the success of the interfaces between the Functions/Service Providers and their project

• The Functions/Service Providers are accountable to deliver their scopes of work in accordance with the “as-bid” situation

• The Hemisphere Business Unit and Corporate organisations are accountable for the adequate resourcing and support of all projects

Key principles of the Project Charter

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Projects are core to our business

We must all be focused on ensuring their success

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Ways of Working (ESSA)

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Ways of Working - ESSA

Standard

Simplify

Eliminate

(STOP)

Automate

Functional within Region

Tested

Actioned

Group

Hemisphere

Country

Country

Hemisphere

Country

Vision 2020 Change Team

Hemisphere Lead

ESSA Lead & Teams

Large Functional Workshops

Country ESSA Teams

ESSA Model

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Leading 7

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Leading 7 - Theory U in a nutshell

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Leadership for a Changing World

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Leading 7 – The Programme

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Strategic Narratives

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Vision 2020 Strategic Narratives

The Future

• Through Vision 2020 we will improve and develop our business in the long term:

– Leveraging our key strengths in project management and engineering and building on our extensive track record

– Broadening and improving our products and services through an increased strategic and technological focus

– Becoming more agile and cost-effective by changing our ways of working

• By improving what we offer the market, we will secure a better long-term future for our Company

Current Down Turn

• We are a successful oil and gas contractor and while the business environment is becoming more challenging, we are in a relative position of strength compared to many in the industry

• We have always navigated any market downturns and emerged stronger in any upturns

• Our Values, leadership attributes and behaviours will act as our ‘compass’, ensuring that we treat people with fairness and respect at all times

• To ensure we weather the downturn, we need to win projects by reducing our costs, improving our efficiency and delivering more value to our clients

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Our next steps…

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The Solution? What do people want from their work?

• The Energy Project and Harvard Business Review Survey

• 4 Key Findings:

– Physical – the opportunity at work to recharge the batteries

– Emotional – the feeling of being valued and appreciated for effort and contribution

– Mental – the opportunity to focus on the most important tasks without being distracted and importantly, allowing people an element of flexibility in how and when people get their work done

– Spiritual – the opportunity to express themselves in doing more of what they do best and enjoy most; by feeling connected to a higher purpose at work

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The Progressive Diversity Challenge…

Compliant Engaged Innovative Integrated Transforming

Citizen Concept

Tax & Legal Philanthropy Stakeholder management

Sustainability Business in society

Strategic Intent

Compliance Reputation Business Case Value Creation

Market & Social Change

Leadership Lip Service Supporter Steward Champion Visionary

Structure Marginal Functional Cross Functional

Aligned Business Driven

Issues Management

Defensive Reactive Policies

Responsive Programmes

Pro Active Systems

Defining

Stakeholder Relationships

Unilateral Interactive Mutual Influence

Partnership Cross multi company

Transparency Protection Public Relations

Public Reporting

Assurance Full Exposure

The Boston College

A collaborative Business

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What further steps might Subsea 7 begin to take?

Build a new Leadership Community

Align personal work cultures with the way that the organisation wants things to be

done

Determine where you can make

changes to working patterns, more flexible benefits

Adopt and use the IS/IT tools to work flexibly and collaboratively

Help to place people in roles that creates most happiness for

them

Engage people with compelling

vision of the future

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Thanks and questions please….

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