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.
