What do you do if you're an oil and gas executive struggling to prioritize strategic decision-making?

Putting your strategy in writing, in the form of an strategic document or strategy playbook is very helpful, this document must be periodically updated to reflect the changing market reality.

Setting goals is critical, they also must be followed up, setting a cadence to discuss their progress is crucial to assure proper execution, to close any gaps and to adjust them as needed.

Understanding your competitive positioning is critical. Main data points to be tracked for your segment are TAM (Total accessible market), market share (yours and your main competitors) , technology trends, etc. You also should track big picture data point affecting O&G activity, such as WTI price, Henry Hub Gas price, rig count, frac spreads count, etc.

Utilize data analytics and modeling tools to analyze various scenarios and their potential impacts. This can help you make informed decisions based on quantitative insights rather than intuition alone.

I came across the pyramid on Knowledge Management: Data, Information, Knowledge and Wisdom. To have informed decisions, it requires comprehensive data sets on production, market conditions, geo-political dynamics etc. for strategic decision making. Time Series data- qualitative and quantitative are important. After data analytics refine the strategy for implementation. Successful implementation needs integration of both qualitative and quantitative information to use intuition, if any, based on the industry experience. Constitute teams for strategy implementation within the stipulated time. Regular review and mid-couse corrections are the key. Data collection on various costs will help in being cost conscious while implementation.

As an Oil & Gas executive, you shall translate the high level strategic goals into actionable items, these actionable items must be prioritized and properly communicated to your team.

Dashboards are essential to review goals progress, the dashboard shall be accessible 24/7 to all team members, to assure that anyone can track progress anytime.

It all goes down to planning, with the most impactful decisions being placed at the top and being assesed on being doable within the confines of finance, resources, technical ability, penetrating the markets to achieve the desired goals. Also review the low hanging fruits and the impact of going for these as part of the strategy for the preparation of the future aggressive strategies which require more resources.

Strategic execution is an essential item. It needs a thorough understanding of the strategic planning process from assessment to evaluation. Developing the performance gaps and bridging them through technology, training, monitoring, people involvement in both Top-Bottom and Bottom-Top Approach etc.

investment in Innovation: Explore opportunities for innovation and technological advancements that can enhance operational efficiency, reduce costs, and unlock new revenue streams. This may involve investing in renewable energy, digitalization, and sustainable practices. Long-Term Perspective: Balance short-term priorities with long-term sustainability goals. Consider the environmental, social, and governance (ESG) implications of your decisions and strive to create value for all stakeholders over the long term. Seek External Expertise: Don't hesitate to seek advice from external consultants, industry experts, and peer networks. They can provide valuable insights and best practices from other organizations facing similar challenges.

In a volatile oil and gas industry where major black swan disruptions are inevitable, instead of managing the organization through traditional planning and control based on extensive analysis, executives should learn to operate in shorter, rapid cycles. This requires increased focus on quick, low-risk decisions and experiments, learning from those that fail, and scaling those that succeed. Each rapid cycle could focus on a set of short-term outcomes, accomplished via prioritized deliverables and initiatives that reflect available short-term capacity and appropriately manage risk. Thus, outcomes, deliverables, activities, and resources may be prioritized during each cycle to reflect rapidly changing realities.