A management framework for accelerating change

The petrochemical industry has been characterized by a rapid evolution of technology. This includes production technology such as new catalysts and unit operations as well as the support systems such as advanced simulators, business-wide optimization, and e-commerce linkages. Overlaid on these advances are the people changes induced by mergers and restructuring. Traditional organizational conflicts such as short versus long term tradeoffs and creativity versus control and discipline are aggravated. Developing and sustaining a competitive business in the face of these changes with leaner staff support is a never ending challenge. In learning to mitigate these downsides and speed the pace of progress in a range of petrochemical industry operations a consistently useful set of practices has emerged. The key factors that have emerged are the: (1) focus on more than a single fiscal year so that the organization can build commitment to the ongoing, long term changes needed for competitive success. (2) Use external reference points or benchmarks extensively to build an expectation of progress and the magnitude of change. (3) Don´t push tools and processes so hard you lose alignment with end results and a sense of urgency. Good knowledge management doesn´t guarantee good progress. (4) Use your reference points and benchmarks to make the enemy outside your organization. Don´t let the inevitable internal frustration and chaos find an internal target. (5) Build structure and rewards in ways that foster creativity and teamwork, not define bounds and limits