Drive Productivity During Meetings Using These 8 Tips
Drive Productivity During Meetings Using These 8 Tips
Looking to drive productivity during meetings? Follow the 8 tips listed below!
- Chair of the Meeting.
Every meeting should have one individual who is responsible for the management of the meeting itself. A “chair” or “facilitator” of the meeting can be particularly useful if one or more of the participants in the meeting is participating via a conference call. The chair or facilitator can manage the flow of the discussion and reduce participants speaking over one another or cross talking. Another useful technique for conference calls with large numbers of participants is for the chair to introduce the speaker(s) (or the speakers should identify themselves before speaking for the first time) in order to provide identity to the voice, particularly if some of the participants have not previously met or spoken with one another.
- Action Logs.
Assigning action items to individual accountable owners with specific due dates can dramatically increase the effectiveness of a meeting to ensure that the time invested in the meeting attains the maximum benefit. Action logs, or meeting minutes, can be useful for recording these follow up items and responsibilities. In addition, circulating the action logs to other members of the team who were not at the meeting but that may be designated as “Informed“ in the RACI chart, is an effective way of communicating and keeping these individuals informed on the agenda items.
- Close the Laptops.
If participants are going to attend a meeting, they need to be paying attention in order to meaningfully contribute and receive the benefits of attending the meeting. Participants cannot do this if they are focused on responding to emails or reviewing other materials. If necessary, the chair or meeting facilitator should request that all laptops be closed and other electronic communications devices be put away at the start of the meeting. If a participant’s attendance at a meeting is only relevant for certain agenda items, perhaps the agenda could be organized in such a way as to address that participant’s agenda items first (and then that participant can exit the meeting) or last (having that participant join the meeting at a particular time towards the end).
- Time of the Meeting.
Morning meetings earlier in the week (Tuesday or Wednesday) can sometimes be more productive because the participants may be better prepared and engaged (i.e. not trying to catch up on Monday morning emergencies, or focused on getting tasks or reports completed before the weekend). In addition, certain client resources may be working shortened workweeks (3-4 day weeks). With more use of flex hours and long commutes to the office, be careful not to schedule meetings too early in the morning as this may create challenges for the participants.
- Detailed Agendas.
The agenda for the meeting can be a very useful document to executing a successful meeting. In addition to setting out the agenda items to be discussed in the meeting, the format of the agenda can identify who is responsible for each item on the agenda, as well as an estimated period of time for each item on the agenda. The estimated period of time for each agenda item sets expectations for both the person tasked with that agenda item, as well as for the rest of the meeting participants, in trying to manage the time contract for the meeting schedule.
- Food Can Drive Attendance.
If you want / need strong attendance at a meeting, such as an opening meeting on a new client engagement where you need to secure as much buy in for the project as possible, consider scheduling the meeting at lunch time and having lunch catered. Offering lunch requires a little extra planning, particularly if it is at the client site (i.e. special dietary restrictions and preferences; hot vs cold food; sweets vs fruit for dessert) but may result in higher attendance, and may put the participants in a better frame of mind if they are well fed. On the flip side, a poor-quality food can be counterproductive, and may leave a bad taste, so give food the planning it deserves.
- Cautionary Note on Screen Sharing Applications.
Many online meeting technologies now include a screen sharing feature. While these can be very effective in ensuring that all participants are able to identify and understand the specific topic or document that is being discussed, the presenter needs to be very careful that the screen sharing does not inadvertently disclose other confidential information that happens to be visible on the presenter’s desktop. Care should be taken to close any open emails, communication forums and applications before the start of the meeting so that there is no inadvertent disclosure when using these screen sharing applications.
- Face to Face.
While not always possible, there are certain situations where a face-to-face meeting at a client site can be much more effective than a conference call meeting. For example, when attempting to sell a new idea or process change proposal or sell the client on a new piece of business, a face-to-face presentation is often more effective and successful. The presenters can read the client’s reactions in real time, and sometimes more effectively handle in-presentation questions. In addition, the clients generally appreciate their service providers taking the time and effort to travel to the client site, and it gives the consulting team a chance to understand better the client’s work environment and challenges that the client may be facing, as well as identifying opportunities to sell additional services that may be identified by being on site.
At Trindent Consulting, we are a global technical augmentation company with a passion for solving complex problems in the energy, healthcare, and finance sectors. With over 100 client partnerships, our success centers on prioritizing sustainable profit margin improvements and delivering impactful results.
As a medium-sized firm, we cultivate a close-knit environment where every team member knows one another. Our people are fun, and our work is intriguing and diverse. We actively strive to create an inclusive environment where everyone has equal opportunities for growth and success.
Interested in becoming part of our team? Check out our current openings page to find a role that best suits you.
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5 Ps of a Meeting – Ensuring Your Next Meeting is Effective
Consultants excel at solving problems that span across teams, organizations, and industries. By using a variety of methodologies and tools, they can quickly and effectively address issues for their clients—and who doesn’t love a quick and effective solution?
One such issue is ineffective meetings. Fortunately, there are many solutions available, and one of the most effective is ‘the 5Ps of a Meeting.’ This approach is a favorite among consultants for its simplicity, effectiveness, and ability to prevent ineffective meetings from happening in the first place.
By mastering the 5Ps, consultants can transform meetings into productive and purposeful sessions, ensuring every moment spent is valuable and impactful.
So, what are the 5Ps? The 5Ps are Purpose, Participants, Process, Payoff, and Preparation (some suggest it should be 6Ps including Pizza).
Purpose: Every meeting should have a clear purpose, which must be more specific than just a subject line calling for a ‘daily meeting’ (why should the team meet daily?).
Participants: Listing the participants makes the organizer think about who they are inviting and why. The organizer doesn’t have to list the names in the body of the invite, but should nevertheless make a conscious decision about who should be part of the meeting.
Process: How will this meeting be conducted? What is the agenda and the time allocated for each agenda item? This is key, as it prompts the meeting organizer to think about the necessary time for the meeting, helping the team avoid setting meetings in 30-minute chunks just because that is the norm.
Payoff: What does the organizer want to accomplish by the end of the meeting? This should be specific so that the meeting participants can be held accountable.
Preparation: What preparation is needed from the participants? This helps the meeting organizer revisit the payoff and appropriately size the participant list.
Including the 5Ps in every meeting invite is the easiest and most effective way to ensure and prepare for an effective meeting.
Extracting Value from Daily Review Meetings
Daily review meetings are an integral part of the of the active management initiative that organizations hire Trindent Consulting to implement. These meetings have a two-pronged purpose. They give managers a daily opportunity to review KPIs on the team dashboard to gauge progress against targets, and they function as an open forum discussion for staff to contribute ideas, share best practices, and bring up challenges they may be facing.
The first component is straightforward – managers preform the dashboard review while staff listen and absorb. However, in most organizations, the second component of the meeting is a challenging one. When staff are asked to share, the outcome is often not optimal. Staff can be reluctant to speak up if they feel they’re not being heard, or if they believe they can get away with not contributing or being accountable.
Without input from staff, the daily review meetings lose their value. They become an exercise in one-way dashboard review, something that doesn’t require a meeting to be held at all.
Here is where another important tool that Trindent advocates comes into play – the Action Log. When used as part of daily review meetings, it allows managers to instill a sense of engagement and accountability into their staff, thereby maximizing the value of the meetings.
The Action Log Is More Than a Tracker
The action log is more than just “meeting minutes”. It’s a tool that allows managers to record, prioritize, and keep track of the takeaways generated during the meetings in order to keep their team accountable; and it functions as a listening tool to drive engagement.
Unlike meeting minutes, action logs don’t document every discussion point in each meeting, but rather keep an on-going rolling record of the objective to-dos that come up at successive meetings. Each action is assigned an owner and a due date, and the logs are reviewed at the beginning of each meeting to go over what’s been completed since the last session, and at the end of the meeting to confirm new items that have been added.
This level of constant attention to the action items serves to not only ensure that no task slips through the cracks, but it promotes accountability of each staff member to complete their assigned tasks, as anything that’s outstanding will be brought to the attention of the entire team.
The second function of the action log is as a management listening tool to drive team engagement. A common sentiment from employees is that they feel their “voice is not heard” and that “managers don’t listen”. When actions are added to the list and read back to the team at the end of each meeting, it shows the team’s manager has listened to, and understood, everyone’s ideas. By documenting these next step actions, team managers are driving engagement by imparting importance and giving time to the ideas and questions their staff have brought forward.
By using this valuable tool, managers can empower their teams, drive accountability and engagement, and get maximum value from daily review meetings.
Hydrocarbon value chain optimization: Non-CAPEX opportunities to improve gross margins for the downstream sector—Part I
Kai. Y. WAN, Trindent Consulting, Toronto, Canada
The oil and gas industry comprises some of the most complicated manufacturing processes, involving mining, transportation, refining, distribution and retail.
Refining operations require a deep understanding of various refining techniques, including distillation, cracking and hydrotreating, among others. Implementing advanced technologies and optimizing process efficiencies are crucial steps toward achieving higher yields and reducing operational costs.
Meanwhile, the refining industry is inherently susceptible to market fluctuations, including raw material cost volatility, demand fluctuation due to global events and competition from renewable energy. To succeed in this dynamic environment, refiners must adopt cost-efficient operations that allow for quick adjustments in production levels and product portfolios.
A critical step in this process, collaboration with upstream and downstream partners is essential for refining success. Establishing robust relationships with crude suppliers, transportation providers and distributors enables smoother operations and increased negotiating power. Additionally, supply chain optimization principles, including efficient logistics and inventory management, can lead to reduced costs and improve overall profitability.
Part 1 of this article will outline a series of opportunities that oil and gas operators can consider immediately without the need for any capital expenditures (CAPEX) or software upgrades. These opportunities typically bring in strong cash flow performance within months and can improve gross margins significantly within a brief period of time.
CRUDE SELECTION: ENHANCING QUALITY MONITORING AND OPTIMIZING VALUE
Crude assay quality. Characteristics such as API gravity, sulfur content, distillation characteristics, Reid vapor pressure (RVP), total acid number (TAN), metal content, viscosity, asphaltene and resin content, pour point and cloud point all play pivotal roles in determining how a crude integrates within a refinery.
As crude oils traverse pipelines, their characteristics may undergo alterations. Consequently, comprehensive analyses at both the wellhead and refinery gate are essential. The information gathered serves as critical input for refinery operations, ensuring that refining units are optimally tuned to handle the specific qualities of the incoming crude.
Refineries that prioritize accurate crude assay quality assessments at both ends of the transportation journey can potentially gain tens of cents per barrel. These gains reflect enhanced operational efficiency and the prevention of potential processing challenges and equipment issues.
For example, a U.S. refinery situated at the end of the pipeline observed consistent crude assay performance at the refinery gate despite purchasing different types of crudes. The long distance between the injection point and the receiving point, coupled with breakout tankage on the route, allowed the crude flowing through the pipeline to mix. The refinery successfully adapted its strategy by using advanced data analytics to discount the impact of purchased crude at the injection point, enabling it to focus more on the real-time price optimization of the raw materials.
Without the proper crude assay analysis at the gate, a small refinery located near the U.S. Gulf Coast observed significant inconsistency in its linear programming (LP) model prediction when compared against the actual refinery yield profile. This was especially evident for its fluid catalytic cracker unit (FCCU). After a thorough investigation, it was observed that the crude purchased had changed its characteristics significantly during transportation and tank storage phases across the U.S. pipeline system. Using the crude assay profile information collected at the wellhead resulted in overestimating the distillation and sulfur content for the actual crude received at the refinery, which led to an inaccurate LP prediction of the chemical process. By adapting to a refinery gate crude assay program, this refiner was able to quickly adjust the crude assay input into the LP and create a more optimized plan for operation.
Crude sensitivity analysis. A key tool in achieving optimal raw material cost control is the crude sensitivity analysis, commonly known as the crude curve. The crude curve provides a detailed breakdown of the sensitivity of various crudes to changes in market prices. This practice guides supply chain teams, driving the process for how to strategically switch crude types in response to changing market dynamics and ultimately preventing costly procurement oversight. The crude curve helps crude planners to understand how different grades of crude value to the asset respond to shifts in price, allowing for precise decision-making in the procurement process.
This tactical approach has the potential to generate significant savings in the range of cents per barrel. Armed with the insights from the crude curve, supply chain teams are equipped to make informed decisions in real time. This includes determining the optimal mix of crude oils to refine, considering price differentials, availability and processing capabilities. By aligning procurement strategies with the ever-fluctuating market, refiners can seize opportunities and mitigate risks.
For example, FIG. 1 shows a simple type of crude sensitivity analysis for a refinery. Per the scenario illustrated, the crude planner can decide to switch crude purchases between Type A and Type B based on the current market price.
FIG. 1. Example of a simple crude sensitivity analysis.
Usually, the crude procurement plan for each refining asset is announced before the trading cycle. If this plan is not adjusted in real time—frequently applying market price fluctuations—market dynamics may put the original crude procurement plan at a disadvantage. By simultaneously conducting the crude sensitivity analysis when the crude procurement plan is published, crude planning teams can use a data-driven approach to respond to market price changes and optimize the cost structure of the refinery in real time during the trading cycle.
Without this tool, refiners may inadvertently lock in contracts for crude oil purchases that become uneconomical due to unexpected market shifts. The crude curve acts as a safeguard, providing a clear roadmap for adjusting procurement strategies to align with prevailing market conditions.
Working capital integration with planning. Not all crude source contracts are created equally. They vary in payment terms, credit provisions and contractual obligations. Refiners that take the time to scrutinize these contracts and align them to their operational realities can make precise decisions for when and how to allocate capital. This strategic approach ensures that financial resources are deployed efficiently, minimizing idle capital and maximizing returns.
FIG. 2. Working capital consideration during crude selection.
As illustrated in FIG. 2, a refinery with access to maritime crude delivery is presented with two different crude options. Option A may be a relatively cheaper option, but this crude would take about 30 d to be delivered to the refinery. Option B may be a relatively more expensive option but, due to its close proximity, the raw material can be delivered to the refinery within 3 d after an order is placed. Both suppliers have agreed to a Net 30 payment term, and the refinery has an average of Net 7 payment terms on refined products for all of its customers. The average crude on-hand time can be estimated at about 4 d before the crude is processed at the refinery. When comparing the two possibilities, Option A presents the refinery with a maximum financial exposure at the crude price per barrel. In contrast, Option B, due to its close proximity, offers the refinery a zero financial exposure as the payment of the refined product typically occurs before the due date for the crude purchase. An internal cost of capital of 10% means a price difference of $0.91/bbl may render no difference for both crudes, assuming an equal product value of $111/bbl. A simplified calculation to explain this concept is shown in
TABLE 1—the actual operation of factoring working capital during crude selection is much more complicated.
The financial impact of a refiner’s ability to be highly adept at working capital management is substantial. Refiners that fine-tune their capital allocation strategies based on varying crude source contracts can realize gains in the range of cents per barrel. Over time, these seemingly incremental gains accumulate into significant boosts to the bottom line.
PLANNING AND FORECASTING: STRATEGIC POSITIONING FOR SUCCESS.
Unconstrained LP analysis. Refiners should consistently evaluate sales constraints in their models for high-value products. Marketing efforts aimed at promoting and prioritizing the high-value products can yield substantial returns for refineries. One potential profit-driving opportunity is the distribution between premium gasoline vs. regular gasoline and jet vs. diesel, for example. It is worth noting that marketing initiatives should align seamlessly with the refinery’s operational capabilities and market demands.
This initiative can typically be identified when performing sensitivity analysis compared to the base LP case by opening product demand constraints one-by-one, and eventually removing all of them. This will enable the LP to fine-tune operational parameters, such as crude slate, processing capacities, product yields and production schedules. Such an analysis will define the business development direction to debottleneck current demand constraints, allowing the company to increase production throughput, as well as increase the ratio of the higher value product.
A case study completed for an integrated energy company by the author’s company indicated that this operator could focus on securing a contract to sell jet fuel to a nearby major airport. This carried a potential financial benefit of > $1/bbl. Note: The final opportunity was reduced by logistic costs and CAPEX.
The fiscal impact of this strategic marketing initiative is substantial. Refiners that prioritize high-value products can realize returns ranging from tens of cents to dollars per barrel. These gains, when extrapolated over time, translate into significant enhancements to the refinery’s bottom line.
Unit constraint optimization. Unit constraints dictate the operational limits of various refining processes. Regularly assessing and potentially challenging these constraints are essential practices, opening the door to uncovering inefficiencies, streamlining operations and ultimately boosting profitability.
For instance, the author’s company completed a case study for a refinery demonstrating that revising one unit constraint would subsequently generate a financial benefit of $0.10/bbl. Without regularly reviewing the unit constraints and performing the required LP optimization study, it is difficult for a refiner to prioritize among different opportunities and focus on the high profit drivers.
The financial impact of this strategic practice is substantial. Refineries that diligently assess and challenge unit constraints can potentially gain in the range of tens of cents per barrel.
PEOPLE: HIGH-PERFORMING TEAMS WITH CLEAR ROLES ANDRESPONSIBILITIES.
While the preceding sections have focused heavily on the technical aspects for how oil and gas operators can yield significant financial benefits without substantial capital investment, an often-underestimated factor is the human element in these processes. A high-performing team with clearly delegated authority and responsibilities is integral to a robust continuous improvement process. A few high-level concepts are discussed below.
Throughout engagements with clients, the author’s company has frequently encountered undefined roles and responsibilities for cross-functional areas like planning or blending, resulting in internal friction and rework. While opportunities can be overlooked without clear ownership, well-established accountability tends to drive individuals to claim ownership of their processes and enhance the performance of their designated areas.
An area where inefficiencies commonly arise is in the effectiveness of management meetings. The purpose of these meetings should be well-defined in advance, action items must be documented and regularly followed to support holding key stakeholders engaged and accountable for sustainable change.
Meetings have been observed that cover the “what/where/when” but neglect addressing the “how/why” questions, hindering continuous learning, skill development and improvement.
Takeaway. In a rapidly evolving industry landscape, the implementation of the above-mentioned refining strategies can significantly enhance refinery profitability and position them for sustained growth. By leveraging these opportunities, refiners can navigate market challenges, adapt to changing conditions and secure their position as industry leaders in the ever-evolving world of crude oil refining.
KAI Y. WAN is an Associate Principal at Trindent Consulting. Dr. Wan has collaborated closely with multiple business partners in the energy sector across North America and Asia-Pacific, including some of the world’s largest refineries, and has delivered > $300 MM in financial improvements, with typical project ROIs at 500%–1,500% during the first year after implementation.
Gasoline Blending Optimization using Spectroscopic Analyzing Techniques
The use of spectroscopic analyzing techniques in refinery process control, especially gasoline blending, is a fairly common practice in the industry. The technology to use Near-Infra Red (NIR), RAMAN, or Fourier-Transform Near-Infra Red (FTNIR or FTIR) to fine-tune component ratio, ensure meeting specification and minimize quality giveaway has been around for decades, but is this technology beneficial, and are refineries using it accurately?
Compared to traditional measurement techniques, spectroscopic analyzers such as NIR/RAMAN have several advantages in gasoline blending:
- High data density: typically 1 data point every 120 – 150 seconds, versus 1 data point every 360 – 1200 seconds of other technologies
- Ability to analyze multiple qualities simultaneously: 10 or more qualities can be monitored at the same time
- Ability to analyze multiple streams together: with the right setup, the same analyzer can monitor process streams and production streams together
- Easy to maintain: mostly filter changes and condition control, with lamp changes once every 6-12 months
With these features available, we have seen an increase in the number of refining operators investing in spectroscopic technology in the recent years, with over 90% of our clients in the past two years using one or more of these instruments to improve their process control.
Is it working well?
Unfortunately, for most refining operators, the answer is NO.
While the technology looks very attractive, we have often noticed that a refinery's investment in NIR/RAMAN lacks the complexity and understanding required to fully exploit the potential of these instruments. Spectroscopic measurement techniques utilize chemical principles and advanced statistics, while traditional analyzers rely more on physical principles. As a consequence, these upgraded projects frequently fail to maximize their financial return. In some extreme cases, due to a lack of experience working with spectroscopic analyzers in gasoline blending, the process control capabilities often regress, leading to higher quality giveaway costs for the refinery.
How can Trindent help?
In the past few years, Trindent has successfully implemented multiple solutions to improve the accuracy and reliability of NIR/RAMAN technology for our clients, especially in the area of gasoline blending optimization. To establish a top-tier NIR/RAMAN management system, followed by a strong gasoline blending program, a refinery should:
- Create a clear responsibility matrix outlining the ownership of accuracy of the analyzers
- Develop a comprehensive management system to oversee the analyzer performance
- Install a clear root-cause analysis framework to identify improvement opportunities
- Improve training and hence the knowledge of the responsible team
A successful NIR/RAMAN program requires the investment of technology, knowledge development, and active management but the last two pieces are often missing. With these missing links installed, our clients were able to achieve measurement accuracy as good as the primary testing method (PTM) and accomplish top quartile giveaway control comparable to some analyzer programs that comprise of PTM exclusively.
Click here to learn more about how we can help your organization use the right spectroscopic analyzing techniques develop a world class gasoline blending optimization program.
The author of this article Kai Y. Wan is an Engagement Manager at Trindent Consulting. Kai holds a Ph.D. in Chemistry (Hydrocarbon Catalysis) and a BSc in Analytical Chemistry from the University of Toronto. Kai's passion for chemistry coupled with his management consulting expertise has helped him deliver over $100,000,000 in financial improvements for some of the world's leading Oil & Gas companies.
How An Active Management Drives Sustainable Improvements
Implementing improvement is necessary, but can be a difficult, costly, and grueling process. Companies pay consultants to assist them in improving critical processes but forget to focus on what happens after the consultants leave. They neglect to teach managers the essential skills to drive sustained profitability from changes that were implemented.
Why does this make a difference? Because even the most efficient processes and best operating systems must be actively managed to drive sustainability.
Are You Training Your Managers? Is That Management Training Structured and Active?
Active management is the key to post-implementation sustainability, but active management must be built though a specific structured methodology to be effective.
“Active” Managers are managers, supervisors and other leaders in a company that drive exceptional results through the talents of other people. In working with our clients, Trindent develops the Active Manager by training six behaviors interwoven throughout an engagement in a specific order supporting sustainability and driving profit:
- Clear Communication: Communicating expectations is the foundation for successful engagement sustainability. Good leaders clearly outline the goals of the organization and how each staff member can contribute to their team achieving those goals.
- Follow up: A manager who holds others accountable, uses regular check-ins to ensure performance, addresses variances when necessary, and has a keen awareness of Parkinson’s Law - work expands to fill the time available for its completion – is essential to sustainability. Active management training stresses effective follow-up as the next building block for sustainable engagements.
- Feedback: Providing feedback is the next step in building structured sustainability. Trindent trains supervisors use every opportunity to provide others with constructive feedback – whether to praise good work or correct mistakes – to encourage learning and growth. The effectiveness of feedback increases when it’s personal, specific, and timely.
- Coaching: Being able to coach your teams is imperative to sustaining change. Active managers should coach skills gaps, teach others how to do their job with proficiency, develop all staff for their next challenge, and train members of their team to train others.
- Solve problems and alleviate barriers: Once the first four concepts are in place, an active manager is taught skills to effectively solve problems and alleviate barriers. Ultimately, the value of a manager is the additional performance they can create in a team. This requires learning the tools for removing roadblocks, identifying hurdles, brainstorming solutions, and implementing change.
- Report of Performance: Finally, an active manager must report on performance to ensure the profitability of a process or performance change has been sustained. They must use objective data (both quantitative and qualitative) to communicate to others, explain trends, and make decisions for business improvement.
Conclusion
Providing training on newly implemented processes and tools is inadequate to ensure sustainability. Any engagement must also include a structured approach to training leadership to actively sustain the desired outcomes. Successful programs employ training building blocks integrated into the process and tools to develop a synergy between system and management. Leadership is the foundation of sustainability and building active management training with a solid structure and integrated purpose is essential.
Click here to learn more about Trindent Consulting and how to build structured active management training to support sustainability.
Understanding The Factors Impacting Crude Oil Prices
In 2020, the combination of a huge run-up in crude supplies fueled by the Shale Revolution and the COVID-induced severe crude oil demand destruction, resulted in negative crude prices (WTI was trading at close to -38 $/B). At the time, the cliché of “nowhere to go but up” was precise and appropriate. It was a matter of time before the price of crude would rebound and the U.S. and the rest of the would be producing enough oil to meet their needs. Crude prices returned to $40/bbl after production curtailments and an OPEC/other countries production-cap agreement that went into effect in May 2020.
Global and US refinery demand outpaced supply (production + imports – exports) by the third quarter of 2020. This allowed the drawdown of the massive inventories that had accumulated in tanks in Cushing, the US Gulf Coast, and worldwide, plus floating inventories stored in anchored VLCC tankers. Despite the COVID health and economic crisis, the fundamentals prevailed and prices rose, as demand increased faster than supply due to slow production growth. This has enabled the global market to draw down the stocks that had built up at a neck-breaking pace in the first and second quarters of 2020. How quickly the gap is filled as we approach normalcy depends on the propensity of Exploration &Production (E&P) companies to invest in drilling at a higher pace.
Concerning production, the recent increase in rig count has been driven by private E&Ps, not only to enable them to benefit from higher crude oil prices but to make themselves more attractive takeover targets. In contrast, many publicly held E&Ps are facing ESG-related pressures from investors and have reined in their capital spending, returning more money to shareholders (via stock buybacks and dividends), and directing more of their cash flow into their bank accounts. This reluctance of many publicly owned E&Ps to invest more in drilling, even in this environment of higher crude prices, has been a significant factor in slowing U.S. production gains.
While crude oil prices over the long term reflect supply/demand fundamentals, there’s a lot more at play in today’s market — everything from COVID outlook and indicators of economic recovery; to OPEC and other producers’ strategic moves. We can't ignore the factors involved in production levels, cash accumulation by publicly owned E&Ps, Environmental, Social and Governance (ESG) factors, WTI futures, the forward curve, oil-market sentiment, the capacity of producers to ramp up, and momentum.
Where the pandemic and the economy might be headed next, is for the world to find out. Our view is that we’re past the worst, and demand for refined products like gasoline, diesel, and jet fuel will continue growing in 2022 & 2023.
In our next article in this series, we will discuss the concerns and issues surrounding the environmental, social and governance (ESG) requirements for Oil & Gas Companies.
Perfecting the Shift Change
In any environment with a constant flow of work, a smooth transition from the outbound shift to the inbound shift could be the difference between undisrupted output and a disaster waiting to happen. In hospitals where errors directly impact the healthcare outcomes of patients, it is imperative that the changing of shifts is carried out with absolute efficiency. The best healthcare providers focus on the following three principles when implementing shift change protocols.
- Standardize transfer of information: There is no room for ambiguity and interpretations when it comes to communicating patient status. When the outbound Nurse handover the care of their patients to the inbound Nurse, the patient’s health record should be in one consistent format such as a template or checklist. This reduces variability in communication and ensures that the right information is passed on each time.
- Pre-stage medical equipment: To ensure that the incoming shift is set up for success, the outbound shift could take some time to inspect and stage medical equipment. By doing so, we ensure that the equipment is in working condition, in the right location, and inadequate supply. Once the incoming shift arrives, they should be able to take over the work without having to spend time performing non-patient care tasks. Think of a Formula 1 pit stop. If the pit crew only started looking for tires once the car is in the pit, they would have already fallen hopelessly behind.
- Active management: We all look forward to the end of a workday but in a hospital environment, patient conditions can unexpectedly change, and we must remain alert. It is common in any work environment to see productivity slow down towards the end of the shift. Are there tasks that can be performed to ensure that the incoming shift is set up for success? Are there patient care duties that would benefit from having an extra set of hands? Questions like these allow managers to reallocate excess labour and ensure that productivity does not drop as the shift comes to an end.
A smooth shift change is indicative of a highly coordinated healthcare facility. When it comes to patient care, there is no room for error. By perfecting the shift change, we can reduce variability, alleviate the stress of medical staff, maximize productivity, and provide a positive patient experience.
The author of this blog, George Xu, is a Senior Consultant at Trindent.
Addressing Performance Variability
Outdated Process Series
Previous articles in this series discussed the challenges of identifying outdated and inefficient processes. This article will concentrate on performance variability as one of the indicators of an inefficient process and will look at some ways to effectively address it.
When it comes to business, variability is generally not welcome. It prevents us from creating accurate forecasts, makes us keep extra inventory on hand, leads us to engage more resources than we need, and thwarts long-standing plans. In other words, variability causes inefficiency.
Many kinds of variability are unavoidable but can be managed with analytic and quantitative approaches, like the Erlang staffing model. There are, however, types of variability which can and should be controlled. Performance variability, for example, which can have a very significant impact on efficiency and profitability, squarely belongs in the controllable category.
What is Performance Variability?
Performance variability occurs when different levels of efficiency are observed among similar roles or processes under similar conditions. This could refer to employees of the same skill level performing very differently, or similar processes yielding significantly different results, or two or more identical pieces of equipment showing varied throughput and/or quality.
Identifying Performance Variability
The first step in identifying performance variability is recording the variance in performance through observation or analysis. Next, any and all external factors which could cause the variance in results should be accounted for.
Once external factors are ruled out, and it’s established that conditions are, in fact, similar, analysis should be redirected to the root causes of the variability. A closer and more detailed look needs to be taken at each individual, process, or piece of equipment in question.
Addressing Performance Variability
When dealing with equipment, performance variability is straightforward and can usually be corrected by repair or replacement, and then avoided in the future with a proper maintenance program. Performance variability involving people is far more complex.
Let’s look at some root causes of employee performance variability, along with some actions that managers can take to rectify the situation:
- Difference in skills: Sometimes it’s assumed that two or more employees have the same skill level, but no formal skills evaluation was ever put in place. By introducing tools like an employee skills matrix, it’s possible to verify skillsets and address any gaps with training;
- Unclear expectations: Often, manager don’t clearly communicate expectations to front-line employees. Providing managers with a certain amount of coaching and setting KPIs used in active management usually resolve the variability
- Fear of losing service levels: This is prevalent in environments like call centers, where the drive to meet service levels comes at the expense of everything else. Coaching for managers and front-line staff, as well as smart KPIs can lead to a philosophy shift that resolves the variability by acknowledging that excellent customer service can be offered in an efficient manner.
- Opportunistic behavior: Sometimes the hurdles to employee performance are far more individual, like a personal problem or a lack of underlying motivation. Intervention by a good active manager can identify and rectify this cause of variability and help put performance back to desired levels.
- Lack of fit: Once all other options are exhausted, the only answer left is usually lack of fit. To resolve this, management can consider reassigning a particular resource to a different role, or redistributing responsibilities to other resources.
Identifying and addressing performance variability in people can be complex, and often requires an external and experiences perspective to effectively evaluate processes, systems, and behaviours.
Click here to find out more about Trindent’s approach and how we can help your organization address performance variability.