Change management is crucial for oil and gas companies to navigate technology adoption effectively, ensuring readiness for the future and enabling sustainable growth.
Research has shown that over 72% of oil and gas companies are distressed with their current manual operating systems. Improving the integrity level and achieving life extension of the ageing assets has been a top priority of energy operators in the region. With great technological advancements, achieving safety, and optimisation of assets while saving time and costs is becoming increasingly possible. However, leading the charge in this new economy presents a challenge in ensuring a smooth transition and widespread adoption of these digitised services. Managing change effectively is crucial for companies to stay a step ahead in the game.
Change management holds significant importance in the oil and gas sector for several reasons:
1. Reducing resistance to change
Any change is likely to be met with resistance, especially when people are unfamiliar with new technologies and processes. Change management helps mitigate resistance by providing stakeholders with information about the change, highlighting its benefits, and offering support throughout the transition.
2. Improving communication
Change often leads to communication breakdowns. Effective change management improves communication by ensuring clear and concise messaging about the change, fostering opportunities for questions and feedback, and ensuring alignment across the board.
3. Increasing employee engagement
Change can cause disengagement among employees. Change management fosters increased employee engagement both in office and on field by empowering them with a sense of ownership over the change, involving them in decision-making processes, and providing training and support.
4. Minimising disruption
Change can disrupt operations if not managed properly. Change management minimises disruption by careful planning, effective communication, and providing necessary support to employees during the change process. This is vital to generate ROI as well.
Several change management models are commonly used in the oil and gas sector. Here are a few popular ones:
1. The ADKAR Model
This five-step model focuses on raising awareness, building desire, imparting knowledge, enhancing ability, and reinforcing change acceptance.
2. The Kotter Model
This comprehensive 8-step model provides a step-by-step guide to managing change. It includes establishing urgency, creating a coalition, casting a vision, conveying the vision, enabling action, identifying short-term wins, consolidating accomplishments, and anchoring the change.
3. The Lewin Change Model
This three-step model involves unfreezing the current state, moving towards the desired state, and refreezing the new state to make it a lasting change.
Change management is crucial for the frictionless integration of new digital technologies. By following these tips, oil and gas companies can navigate change effectively, ensuring readiness for the future and fostering sustainable growth.