Building Capacity for Innovation - A Drilling Contractors Approach to Continuous Change Management

Abstract

This paper presents how a drilling contractor based on the Norwegian continental shelf has increased efficiency and reduced NPT through a systematic approach towards continuous change management. In close collaboration with their customers, they have transformed their operational model through increased use of data-sharing, continuous support, and knowledge transfer. A qualitative case study of the change process revealed that the successful implementation was secured through:• The presence of an overall organizational structure giving room for innovative thinking and development of new ideas, while at the same time having a hierarchical and communicative structure rigid enough to ensure swift implementation.• An active use of efficient project organizations enabling relevant resources to be directed towards the change process.• Formalizing the champion role within the organization ensuring an efficient day-to-day follow-up of the change process.• Close collaboration with relevant actors in the company's surroundings, most notably major customers.The ability to focus on these factors enabled the building of an overall "capacity for innovation" within the company, meaning an ability to continuously harvest, develop, and implement new and transformative tools and work processes in the daily operations.The lessons uncovered in this study are highly relevant for other companies looking to prepare themselves for the increasingly changing demands the industry is facing. Operating with an organizational setup able to continuously change and innovate can prove decisive in the years to come. IntroductionThe field of integrated operations (IO) is maturing, and has been accepted as a vital avenue for value generation in the E&P industry. The focus is now shifting from R&D-initiatives and single-asset pilots towards securing continuous and companywide benefit realization. Change agents and managers spend less time convincing stakeholders of IOs' usefulness. Rather, the challenge has become to build an organizational robustness that ensures continued utilization of implemented solutions, while at the same time capturing new ones. This requires a continuous focus on change management and innovation.