MN5131 Workshop 2. Case study
Restructuring management and leadership in the international oil and gas industry

In this case study, we consider the issue of management and leadership in a multinational oil and gas context. The driver for change in this organisation was the need to develop as a world-class oil and gas business. Leadership and management were identified as the necessary catalyst. Presenting problems in these grades were:

A lack of market competitiveness for excellent leadership and management - competitors had better developed leadership development and selection programmes. The attrition of talented leaders and managers who were leaving to join competitors that offered better salaries and benefits. A lack of skills in junior to middle management grades - managers and leaders at lower grades often lacked competencies and skills to deliver strategy.

In response, corporate HR introduced a new, simpler executive hierarchy in order to standardise leadership and management grades across the whole business. There were to be only eight levels of management and leadership covering supervisors to chief executive. HR knew that to populate these new structures, they would need to blend an approach to:

Identify and fast-track internal talent and high potential. Assimilate those competent at their current level. Recruit externally to key leadership positions (below chief officer and board).

A further complexity of the challenge was the international context of operations. In order to be world class, the organisation’s strategy was to enhance international operations, particularly through development into new countries in Africa and through collaborative joint ventures with other