RLG International Results Stories

A Success Story at a US Oil and Gas Company

Performance Improvement Implementation from June 2006-December 2007

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Key Objectives

The specific leadership coaching objectives of the project that led to these results were to improve the leadership team's ability to: focus their teams on business priorities; hold people accountable; involve front line personnel; and provide performance feedback on a regular basis.

The team improved safety, production and costs using RLG's performance improvement methodology.

After three years of cost increases of 20-30%, the team delivered costs at 12% below the previous year's spend and over 26% under budget.

Regarding the cost performance in 2007 a manager said, "Reduced field activity due to severe weather in January and February has impacted the 2007 costs, but efforts to closely manage costs has certainly been a major factor as well."

With the exception of early 2007, the team has consistently delivered costs well below their baseline. In addition to adverse weather during January to March of 2007, the well prescriptions of the asset engineers increased the average acid cost/pull with limited results. By making the engineers aware of this cost impact, the team was able to bring April costs back below baseline.

A Team Leader remarked, "I've always had a pretty good idea what our costs were, but RLG coming here really got my guys interested in it and talking about it."

The two teams in charge of compressors monitor Station Suction key performance indicators (KPI) on a daily basis and review them monthly. A compressor operator remarked, "Of course we've always looked at Suction PSI in a general way, but now each day I'm thinking, 'I want my chart to look good!'"

In November, the pipeline team started tracking their response time to pipeline ruptures. By simultaneously completing site preparation tasks and asbestos abatement coordination, they reduced the average response time from 10 days to 5.8 days.

The champion of this KPI later said, "I had never thought about how much money we were losing. This KPI gave us a sense of urgency."