Culture Transformation for O&G Teams
The objective of this review is to explore some of what is known and what is not known about team culture transformation in the upstream Oil & Gas Industry. It is important to understand, based on this limited sample of the studies carried out, what knowledge there is, and what recommendations have been made for future studies to better understand the gaps for further research.
There will be limitations to this review, however there will also be sufficient reference to research about the body of knowledge on this topic which will help achieve the objective.
1. Team Development
The stages of group or team development will continue to be relevant and important while there are groups of people collaborating to complete tasks.
Bruce W. Tuckman is widely regarded as the source of seminal work when it comes to team development. He created a model which defined the stages of team growth (Tuckman, 1965).
These stages are forming, storming, norming, and performing. Adjourning was added later (Tuckman & Jensen 1977).
In a journal article by Tuckman & Jensen (1977), a table provides more insight into the elements of each of the stages of team growth, and Tuckman & Jensen delve deeper into small-group development, offering a model to understand development stages.
Tuckman & Jensen offer four stages with structures for each based on their literature review. This theoretical model is one which has been studied and applied when building teams.
Table 1: Stages of Group Development (Tuckman & Jensen, 1977).
Forming a new team and then progressing to performing as a team, is a team that is transforming from one set of behaviours to another. This theoretical model described by Tuckman & Jensen helps leaders and practitioners understand the stages in more detail.
Bain Consulting (1996 – 2022) describes culture as “behaviour at scale”, therefore a team’s behavioural progression through the stages of group development as described by Tuckman & Jensen, could be viewed as culture transformation.
2. Forming
The concept of multidisciplinary teams is not new, but Van Der Vegt & Bunderson (2005) shed some light on the perceived sweet spot when seeking the right balance between team identification, team learning, and team performance in the Oil & Gas industry.
Van Der Vegt & Bunderson conclude that diverse capabilities within a team do not necessarily mean higher performance.
Their journal article puts forth six hypotheses relating to team identification, team learning behaviour, and expertise diversity. The variables are shown in the table below.
Table 2: Means, Standard Deviations, and Correlations (Van Der Vegt & Bunderson, 2005).
The findings have relevance for team leaders and reinforce the importance of assembling the right balance of diverse expertise within a group, while also investing in team identification.
Takeaways include the necessity to aim for a moderate level of diversity, a one-team culture, continuity within the team, and an active interest in team learning behaviour as indicators of culture transformation.
This quantitative empirical research helps emphasise the balance required when building and forming teams to establish the right culture for excellence.
3. Storming
The O&G industry has an opportunity to improve in terms of knowledge sharing and team learning (Selvam et al., 2019). According to this research paper, knowledge sharing has not been a priority in the O&G industry.
The discussions in this paper highlight the importance of the right performance climate to encourage learning and sharing. There is emphasis on the significance of relationships, the importance of trust and the need to build a genuine team (Selvam et al., 2019).
The article discusses the importance of constructive challenge in order to grow as a learning organisation. Depending on how well this stage of team growth is led, there can be resistance to some learning activities and this defines the “storming” stage of Tuckman’s model (Tuckman & Jensen 1977).
“Such a culture turns an organization into a learning organization that promotes knowledge sharing.” (Selvam et al., 2019, p. 1823).
The intangible benefits associated with knowledge sharing are significant factors for team transformation. The authors of this paper repeatedly emphasise the link between knowledge sharing and collaboration (Selvam et al., 2019).
“Knowledge sharing builds interpersonal trust among employees. Furthermore, employees engagement in knowledge sharing activities builds a bridge between colleagues and creates a collaborative environment.” (Selvam et al., 2019, p. 1824).
This paper from Selvam et al (2019) also repeatedly references “norms” and “routines” which contribute to the norming stage of team growth and transformation (Tuckman, 1965).
The authors conclude that learning and development has a positive impact on staff retention which in turn accelerates organisational transformation (Selvam et al., 2019).
4. Norming
A qualitative study of HSE (Health, Safety, Environment) culture was conducted in the UAE within the last five years (Mazrouei et al., 2018).
The authors offer a theoretical framework which outlines four threats and four defences to HSE culture. The key elements of a strong HSE culture according to this article include leadership, vigilance, accountability with responsibility, and resilience.
Interviews were conducted with 30 people who represented a diverse sample of experienced frontline workers.
A clear finding in this study, is the reinforced importance of mindset. Individually and collectively, the right cultural mindset plays a major role in HSE performance.
The second finding of note, is the role of the supervisors in the success or failure of HSE initiatives. Leadership through action and engagement, in congruence with clear verbal and non-verbal communication, is a critical point for climate and culture. Poor communication is a contributing factor to past incidents in the region.
The third significant finding in this study, is that training is essential for the continual improvement of the HSE culture. It also provides a way to embed the right mindset throughout the group concerned, and it enables supervisors to lead engagement and communication in a structured way. The right mindset and method are linked through training discipline.
5. Performing
Unocal Corporation achieved remarkable results in deepwater drilling (O’Donnell, 2002).
In this journal article, the author defines and details the eight key areas of focus that enabled Unocal to achieve “drilling excellence” on their drilling operations in different parts of the world.
The first four points are all about the team. Team staffing involved selecting and recruiting the right people for the project. Team alignment, commitment and integration followed, and the author describes the criticality of this initial focus (O’Donnell, 2002).
The journal article makes it clear that only once the right people with the right mindset, are in place, can the team then focus on a proven method to achieve excellence.
The method involves planning, executing, and reviewing in a rigorous and inclusive way (O’Donnell, 2002).
“It is through this multi-dimensional, cross-functional design and review process that we arrive at an optimised well design.” (O’Donnell 2002, pp. 69-70).
O’Donnell’s conclusion is that people and process are more important than technology on any deepwater drilling project.
He notes in his final section on performance; “Upon completion of this review of Unocal’s eight-point drilling excellence plan, technology is conspicuous by its absence.” (O’Donnell 2002, p. 72).
This qualitative, empirical research is relevant to the topic of culture transformation. It is also particularly relevant in that it relates to deepwater drilling in the Oil & Gas Industry.
6. Transforming
Farooq et al (2008) examined the culture at ONGC using the OCTAPACE framework which was developed by Udai Pareek. This framework examines an organisation’s prevailing ethos to understand more about its potential to develop a strong performance culture.
“Any organization, in order to survive and achieve successes, must have a sound set of beliefs. If an organization is to meet the challenge of a challenging world, it must be prepared to change everything about itself except those beliefs as it moves through corporate life.” (Farooq et al., 2008, p. 42).
The OCTAPACE framework developed by Udai Pareek consists of openness, confrontation, trust, authenticity, pro-action, autonomy, collaboration, and experimenting. (Farooq et al., 2008).
In this study by Farooq et al (2008), ONGC Delhi is assessed using the OCTAPACE instrument. The finding is that the organisation had an average score on the culture scale; specifically, ONGC Delhi had a lack of openness and collaboration.
The implications of the findings are notable in this exploration of culture transformation in upstream O&G. Transparency and teamwork are necessary to break away from being average, and to transform to excellence.
“Ethos that fosters honesty and trust, replenishes member’s energy, builds collective strength, and develops an emotionally intelligent culture. Thus, a positive workplace atmosphere deriving out of the unique culture is worth developing, as it becomes the foundation of true organizational success.” (Farooq et al., 2008, p. 48).
In a study of the application of lean thinking to improve operational safety in the O&G Industry, Yeshitila et al (2021, p. 133) notes; “The core philosophy and two pillars of lean thinking are continuous improvement and respect for people.”
The study emphasises the importance of teamwork and team trust with regards to continuous engagement and improvement. The authors of this study argue that respect for employees could be improved in the O&G Industry.
In another lean study, Rachman & Ratnayake (2017) note the cultural significance of enrolment.
“Without buy-in from employees, the organization will be unable to embed a culture supporting the lean concept. In other words, leadership and commitment by management are required to convince employees in all layers of the organization to trust the potential improvements offered by the lean initiatives.” (Rachman & Ratnayake 2017, p. 326).
In a study of the adoption of technology in the O&G Industry (Roberts et al., 2021) there is reference to the importance of culture for progress.
“The organisational culture in which they work will influence all aspects of their decision-making process, driving motivations, attitudes, and risk perceptions. Most of all, leaders can direct organisational values, resources, and the way that technology adoption is embraced.” (Roberts et al., 2021, p. 15).
Green & Keogh (2000) studied collaboration in O&G and note the following factors as necessary for successful collaboration: Commitment and example from senior management, clear objectives understood and accepted by everyone, understanding where the ‘win/win’ comes from.
“An essential feature of a collaborative relationship is that it should represent a potential ‘win’ for all the companies involved… stretch objectives… change of beliefs, attitudes, and behaviours… no-blame culture… integrated team—no duplication of roles… frequent and open communication… training in collaboration and in developing new ideas.” (Green & Keogh 2000, pp. 253-255).
“The drive was to create a ‘total team’ where everyone was valued equally, dispelling the ‘them and us’ viewpoint.” (Green & Keogh 2000, p. 254).
Green & Keogh (2000) also reference projects that benefited from the involvement of objective, external accountability partners such as consultants and coaches, to help achieve culture transformation.
“Many successful collaborative relationships appear to use an external facilitator to assist with the processes of building shared objectives and of developing trusting relationships. Facilitators can help team members to identify and modify beliefs and behaviours that are barriers to new ways of working. The continuing involvement of a good facilitator after the initial phase can be a powerful aid to improved performance.” (Green & Keogh 2000, p. 255).
7. Summary
The objective of this review was to explore some of what is known and what is not known about team culture transformation in the upstream Oil & Gas Industry. There were limitations to this review, however the use of Tuckman’s (1965) seminal work as a guide for this limited literature review helped frame the key findings in the 11 journal articles referenced.
What appears to be known in the literature reviewed for this assignment is that culture transformation can take place provided the stages of group development are respected and followed. Unanswered questions include what the differences are between different sized groups, different scopes of work in O&G, and indeed how culture transformation differs in different parts of the world.
The implications of this review are that these aspects should be further researched. Given the diverse nature of workscopes and group sizes involved globally in the O&G Industry, further research needs to explore how these aspects influence culture transformation.
