Arthur D. Little: Bridging the Talent Gap

A new report by Arthur D. Little explores the reasons why, despite the

buoyancy of record pricing, growth in the oil industry is being

constrained by a worrying skills shortage across the sector. The report

recognizes acute resource shortages as a key factor. Specifically

shortages in oil supply, refining capacity, and the talent, experience

and capacity of service companies are constraining both international

and national oil companies (IOCs and NOCs) in their efforts to meet

rapidly growing demand for energy and chemicals. This shortfall has

occurred despite a 20 per cent increase in investment by IOCs and NOCs

during 2004-2007, spurred on by high oil prices. Arthur D. Little´s latest report, "Ëœ´Bridging

the Talent Gap´´

examines and articulates how energy companies can close these gaps by

addressing five key issues in resourcing:

Building a human resource strategy to fit the new challenges "“ "business as usual" is no longer an option

Reshaping metrics and processes to drive capability development "“ ensuring that people are not just "doing the

job", but constantly learning and

developing along the way

Developing future leaders through innovative professional development "“ adopting best practice, not only from other companies in the energy

sector, but the best-in-class across like industries

Bridging the gap between classroom skills and application in the field "“ so that investment in training pays off more rapidly, and trainees

gain motivation and confidence from earlier successes

Creating a culture of learning and development across the business "“ a "learning for life" culture that permeates every level and every function.

Ensuring the above five issues are addressed in a practical manner

Arthur D. Little recommends a three-pronged strategy:

Sizing human resource needs correctly

Developing national resources

Improving managerial skills at supervisor level

"Our research has shown that the three initiatives, undertaken in

parallel, have the potential to resolve the impending labor crisis and

achieve the changes required in both processes and behaviours to prevent

the situation arising again," reflects Stephen Rogers, Global head of ADL´s energy

and utilities practice. "Recent years

have shown that efforts to increase efficiency and effectiveness in oil

and gas companies, through automation, process, improvement, outsourcing

etc., are beneficial, but not nearly sufficient to close the labor gap." According to the report, the current labor shortage cannot be solved

with a single line of attack. Given the urgency and severity of labor

shortages, it is all the more vital for oil companies to define the

resources they need, invest in new training tools and techniques to

develop national resources and focus on the long-term benefits of

creating a leadership development program for the supervisor group. The Bridging the Talent Gap report is now available for download

at www.adl.com/talentgap. About Arthur D. Little Arthur D. Little (ADL), founded in 1886, is a leading global management

consulting firm that links strategy, innovation and technology to master

complex business challenges while delivering sustainable results to our

clients. Arthur D. Little has a collaborative client engagement style

exceptional people, and a firm-wide commitment to quality and integrity.

ADL is proud to serve many of the Fortune 100 companies globally in

addition to many other leading firms and public sector organizations. Arthur D. Little has over 30 offices worldwide, employing over 1,000

people. If you would like additional information on the firm, please

visit www.adl.com.