EXECUTION FOCUS ITEMS: TRANSLATING BUSINESS STRATEGIES INTO EXECUTABLE, MEASURABLE, AND PRIORITIZED TASKS IN CHEVRON INDONESIA

• Main Author: Adiarto, Winu
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/45674
• Institution: Institut Teknologi Bandung

Chevron has been in Indonesia for over 95 years. In order to sustain its position as partner of choice for Government of Indonesia in oil and gas business, the company must continuously improve its performance to stay competitive in any business environment. With the current oil and gas business climate, the company must conduct internal business transformation including organization re-structuring which introduce significant changes to the organization. This initiative transform organization from asset-based to functional-based organization structure. This step change was necessary to ensure the organization to be more efficient and agile to adapt to any possible future business changes. This final project will discuss internal and external environmental business analysis to ensure company strategy is in alignment with internal and external dynamics. For external analysis, this final project discusses a brief observation of Indonesia oil and gas industry, PESTEL model, and Competitor Analysis. In internal business analysis, this final project discusses organization historical performance, organization structure and control, resources capabilities and competencies, and 7s McKinsey model. The analysis resulted a brief review of business level strategy. One of concerns in functional based organization is the appearance of silo-mentality which each function focus on their function interest rather than overall company business needs. Therefore, it is paramount that company go through transformation to functional based organization must have methods that will sustain collaborative culture among functions. In addition, company needs to have process in-place to ensure organization can continue focus on key strategy while going through significant organization changes. Therefore, Execution Focus Items (EFI) methods is introduced and implemented in the company EFI process enables the company to ensure organization focus on key business strategies, facilitate intra-function collaboration, enforce activities prioritization, and ensure organization alignment. Implementation review also identifies several implementation issues and propose area for improvement to ensure EFI process implementation to be more effective.