Oil & Gas COOs have a complex job in one of the most demanding industries. COOs must figure out how to manage fluctuating production costs, uncertain energy prices, rugged conditions, globalization, and ever-changing regulations. They are perpetually challenged to balance management of current operations, while focusing on building capabilities for the future.
COOs are challenged to juggle it all. We’ve asked our oil and gas clients what mistakes they’ve made along their career path, and this is what they told us.
1. Being hyper-focused on cutting costs instead of driving value.
For example, proper maintenance of oilfield equipment can extend its life significantly. Cutting maintenance costs is a short-term strategy. To minimize negative consequences, you can look for a middle ground, like investing in inexpensive IoT devices to monitor remote oilfield equipment or gaining efficiencies through Field Service Software. These tools allow you to stay vigilant, while remaining cost-conscious.
When you’re in a budget freeze, use that time to plan for future value-add investments.
2. Waiting too long to move to the cloud.
3. Not capitalizing on data.
4. Not investing enough in modernizing.
5. Not placing enough emphasis on customer loyalty.
COOs can’t leave customer loyalty to be handled by other departments. When customer loyalty becomes a core organizational guiding principle, it becomes a strategic differentiator. As an example, some oil and gas equipment manufacturers have created a new revenue stream by adding Connected Field Service capabilities, where they provide an ongoing maintenance services in return for recurring revenue. Our COOs have found innovating around customer loyalty to be a great way to combat shrinking profit margins.
Are you an Oil & Gas COO?
What’s the biggest mistake you made along the way? What do you see as problems in the industry that your peers should focus on resolving? If you’d like to talk to one of digital transformation experts about how you can avoid these mistakes, contact us. We’d be happy to chat.
Author: Travis Pullen, Customer Engagement Specialist
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