Improve oil company competitiveness by aligning company performance management with service strategy from well services company

• Main Author: Wiguna, Made Satria
• Format: Conference or Workshop Item
• Language: English
• Published: 2014
• Subjects: HD28 Management. Industrial Management
• Online Access: http://repo.uum.edu.my/15981/1/P42.pdf; http://repo.uum.edu.my/15981/; http://stmlportal.net/ictom04/TOC.html
• Institution: Universiti Utara Malaysia

Petroleum business is a highly risk business that requires high capital and high supporting technology.This business is highly depends to their business partner (well services company) support in providing excellent services to discover new field and to exploit existing field, converting oil reserves into production. Performance management system through Balanced Scorecard (BSC) helps Oil Company to establishing structure, system and processes towards Operational Excellence (OE).However, in operation level, sometimes many companies fail at implementing its strategy due to lack of alignment, communication and reviews of current strategy especially with business partner who’s outside of organization.Business partners tied in with company through a service level agreement which sometimes doesn’t utilized in optimum approach.This service level provided need to be aligned with company goals cascaded into operation level.A synergy between company and business partners by developing set strategies, mutual scorecard, key performance indicator & quarterly Service Level Agreement (SLA) assessment and feedback is essential.It will contribute to achieve company vision to be a world class oil company.The objective of this paper is to share and deliver recommendation for company performance evaluation of PT.ABC, a multinational oil company, on operation management level with business partner strategy to deliver more oil production in safe operation.Review of service level agreement results and set of change mutual strategies from company and business partner based on feedback and lessons learned result.The study is conducted by comparing company performance on operation level, before and after strategic alignment in 2013. Analyze cascaded company strategy maps and balanced scorecards with services strategic from business partner.How company and business partner can create and deliver more value.