All Hands On Deck
Explorer - April 1997 - Amerada Hess Corporation

 

When a sailing team competes in the America's Cup, it takes more than a sturdy high-tech sailboat. Just as important is the crew whose team members must work in harmony with one another. Otherwise, success would be hindered. The quest for the Cup entails hard work, skilled crew-members, constant communication and an all-hands- ondeck approach. In this sailing example, there are two "systems" in action: the "technical systems" of pulleys, ropes and sails and the "people systems" of decisions, skills and knowledge. The people and the technology must work in harmony to achieve success.

In the July Explorer, you saw the start of the AHC E&P "technical systems" development with the signing of the SAP contract. Since July, we have spent significant effort to design the SAP system to meet our needs. The next four months are critical to completion of the technical system. Thorough testing, interfaces to legacy applications, and customized financial reporting must be completed.

Equally important is the continued development of the "people systems." The technical system (SAP) gives us automated processes, allowing us to reach higher performance. In addition, SAP's process oriented approach to managing information gives us an opportunity to rethink how we organize our work. The work design will combine the new system needs and strategies for high-performance/high-commitment work units. This alignment will enable us to avoid the choppy waters that hinder high-performance. In addition, alignment of the "people systems" creates an environment where we can best achieve the long-term goals of the organization.

Just as sailing crews consult experts in hull design, AHC is consulting with a premier firm specializing in organizational design and alignment. The leading business consultant on the team, recognized worldwide and cited in numerous reengineering books and articles, states: "Organizations are perfectly designed to get the results that they get...to get optimum results, the corporate "systems" have to be carefully aligned with business goals in mind." A management team has formed to work closely with the consulting firm. Together they will look at those organizations directly affected by reengineering. The focus is on policy to support high-performance processes, job roles to support the new work, work groups and teamwork to create and maintain a high-performance, empowered workforce.

The training and communication efforts will continue to blend the "technical systems" and the "people systems." The goal of this plan is to ease the impact of change. This will result in smooth sailing for this transition and learning period.