Kuwait Petroleum Corporation K-LEAD Journey to the Corporate Academy Japan Cooperation Center, Petroleum (JCCP) Human Resources Development for the future of Oil Industry Presented by: Husain Sanasiri 1 Japan, Jan 31 st 2013
Introduction 2
1979 1981 2002 2005 1934 Kuwait Oil Company 1963 Petrochemicals Industries Co. Kuwait Oil Tanker Co. Transportation Kuwait Foreign Production & Exploration Co. Upstream International Kuwait Gulf Oil Co. Upstream Divided Zone Oil Sector Services Co. Shared Services Domestic Upstream Petrochemicals HISTORY OF KUWAIT OIL SECTOR Domestic Downstream Kuwait National Petroleum Co. 1960 Aviation Fuelling Kuwait Aviation Fuelling Co. Corporate Kuwait Petroleum Corporation International Refining & Retail Kuwait Petroleum International Oil Development Co. Kuwait North Fields Project 1963 1980 1983 2003
Introduction Helps build confidence Kuwait Petroleum Corporation State-owned entity Responsible for Kuwait's hydrocarbon interests throughout the world Supplies the world with its vital oil and gas needs
Business Challenges
KPC Strategy The KPC Strategy states that we are an organization that aspires to be world class ; Operationally; this is all It also says: produce ambitious 4 million and barrels a day, develop natural inspiring; gas, the expand question refining capacity, remains how do we make advances in petrochemicals, joint get there? and who is ventures etc. going to make it happen?
Fact Finding In a 2010 Accenture study to understand what leadership capabilities would be required for top performing NOCs; results have concluded that the fundamental characteristics required of NOC leaders are the same as in any organization. However, the balance of capabilities needed to be successful in delivering their strategies is specific to NOCs (and, more critically, specific to the type of NOC as not all NOCs are the same). Simply applying the common practices of IOCs will not be enough. 7
Fact Finding NOC leadership challenges The concept of value-creation is of greater importance to an NOC than commercial returns. NOCs face more complex governance structures and decision- making processes. NOCs will need leaders that can maintain focus on the national mission and inspire and engage staff throughout the significant transformations ahead. NOCs have long focused on technical skills but must address significant shortfall in leaders soft skill. 8 Source: McKinsey Annual Survey & Report
Transformation journey Performance* Sustaining production in maturing fields, meeting oil and gas targets Monetizing upstream heavy crude and nonassociated gas production Maximizing value of downstream and petrochemicals products Sustaining operational efficiency, reliability and HSSE performance 2009 2010 2 1 Developing excellence in Integrating technology upstream business 2 Create internal momentum 9 Developing excellence in technology Capturing gains through Shared Services 1 Regain external confidence 3 Coordinating downstream conversion capacity 6 Integrating downstream value chain 8 Enhancing top team effectiveness 4 Building excellence through corporate functions 2 Professionalize 2011 2012+ Optimizing crude mix and placement Role modeling the new Oil Sector culture 7 Integrating downstream and petrochemicals 4 Aligning through change story beyond top team 5 Integrating gas value chain 10 Sharing best practices along the value chain 6 3 Rolling-out effective coaching culture 11 Building valueadding partnerships with focus on IOCs 7 Developing capabilities below manager level 9 5 Integrating and Building culture of harmonizing Oil innovation Sector HR systems Building the Leadership Academy Drive Commercialization 11 To become an integrated Oil Sector with streamlined business processes in order to maximise the value of hydrocarbon resources and empower employees 10 Motivating our people through the best opportunities 8 Implementing world-class recruitment processes Enhancing people performance management 13 14 15 Building a structured CSR program* Improving Oil Sector s governance structure Aligning State and KPC s vision 12 Building brand and image infrastructure Strengthening a distinctive environment of mutual support Increasing collaboration and efficiency across teams Enhance people s systems Creating a proactive and positive relationship with the external community Health** * Performance: what an enterprise delivers to stakeholders in financial and operational terms ** Health: the qualities, attributes, and actions taken today that help sustain performance tomorrow 9
Performance versus Health Performance Upstream & downstream integration Value-chain synergy optimization Efficiency improvement Technology upgrade Health, Safety, Security & Environment Sensitivity
Performance versus Health Health Collaboration & Teamwork Knowledge sharing Human Capital Development Leadership Pipeline Talent retention
Ensuring Alignment KPC Strategy Map Leadership Model Creates integrated value KPC Values 12
K-LEAD Corporate Academy 13 13
Why K-LEAD? Aligning learning goals to business goals and focusing on achieving demonstrable results and long-term sustainability. K-Lead aims to groom the current and next generation of leaders of the oil sector in line with its culture and strategic agenda. It will also ensure that all current and future leaders have common business understanding, leadership drive and strategic vision required for achievement of our strategic goals. 14
Stages of Development of K Lead Business drivers Leadership Model KPC Strategic Directions Vision, Mission, Values Measuring Talent 3600 Talent Inventory Assessment Centers Interviews Annual Targets K Lead Curriculum 15
K-LEAD Essential Leadership Learning Curriculum The curriculum will be designed to give our current and future leaders: Business Focus A deeper appreciation of the Kuwait Oil Sector value chain as a corporate whole Think K Increased knowledge and broader perspective of the oil & gas industry in the global context Improved decision-making based on better understanding of business principles Leadership Focus Improved managerial and leadership skills resulting in the emergence of a distinctive KPC Leader Profile Effective collaboration as members of teams and cross-functional groups and formation of lasting networks across functions, business units and subsidiaries Improved aptitude to drive and manage change 16
K-LEAD Architecture Business Performance & Management Corporate Renewal Strategic Impact Leadership Compliance Focused Pro-Active risk based approach Integrating Business Strategy Leaving behind a Legacy Stage 1 Understanding Stage 2 Beyond Compliance Stage 3 Stage 4 15 % of curriculum 20% of curriculum Comprehensive Sustainability 25% of curriculum Talent Management and building a pipeline of next generation of leaders 40% of curriculum World Class Leader 17
Development journey Oil Industry Specific A pool of competent & talented leaders to support KPC mission, vision & strategic goals Business & Performance Focus Leadership Focus World Class Leader 18
K-LEAD Essential Leadership Learning Curriculum Oil Industry Specific Business Performance & Management 2 1 Human Capital & Talent Management Financial Management BUSINESS MANAGEMENT 3 Understanding Enterprise Risk Management 7 RESPONSIBLE CITIZEN Corporate Social Responsibility 9 HSSE and Global Impact 8 7 What are hydrocarbons? OIL & GAS GLOBAL CONTEXT 8 Integrating value chain 10 Alternate Energy 11 OPEC, OAPEC, IEA & OTHERS 13 Associated & Non-Associated Gas Gas Reserves & major players 12 14 National & Capital Projects 3 6 Kuwaitization & building next generation 2 OIL & GAS KUWAIT CONTEXT State Audit Bureau & Fatwa Board Kuwait Crude, Refining & Petrochemicals 1 Supreme Petroleum Council Stakeholder Management 7 KPC Mission, Vision & Values Government & Parliament Marketing & Transportation 11 A pool of competent & talented leaders to support KPC mission, vision & strategic goals 4 Business Legal Framework Leader Coach 6 5 Stage 4 and beyond Stage 3 Stage 2 Stage 1 Leadership Strategic Impact Corporate Renewal 4 5 Role of Corporate Functional Areas Strategic Directions 9 World Class Leader Enhancing people performance management 15 Impactful Leader 14 Leaving a Legacy 13 Integrating and harmonizing Oil Sector HR systems 11 Motivating our people through the best opportunities Enhance people s systems Strategic Planning 10 8 Implementing world-class recruitment processes Being a Brand Ambassador 12 Building brand and image infrastructure Leadership 19
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