Petroleum Industry 2020: Leadership and Industry Image

Abstract

Have you ever been confronted in public with contentious questions about the industry you work in, likeAre we running out of oil and gas?When is the next wave of layoffs?Why do your companies pollute the environment?Is global warming bad enough to steer away from using fossil fuels?Why does "big oil" only produce hydrocarbons from poor countries but never contribute to their development? Did you answer with confidence and clarity, or did you freeze up? Questions like these have been asked for many years. Are they grounded in incorrect perceptions or do they hold partial truths? Either way, such questions reflect a major disconnect between our industry and the public, one that continues to erode our image. What can we do to polish this impaired image? Is it only communication? I believe the industry needs to do a lot more than communication. Our traditional training approach for management explains part of the industry's reluctance to take on global issues. Most managers in the petroleum industry start as technical experts, but are then intensively trained to climb the management ladder. Management training is obtained in cross-industry classes that rarely focus on strategic issues specific to the petroleum industry. The presumption is that our industry's challenges are well addressed within the company. To bridge this gap, senior management normally invites experts to address major issues such as market outlook and scenario planning. This training framework yields excellent operations managers. Unfortunately, it is not conducive to grooming industry-wide leaders who can articulate clear positions on critical industry issues. Managers are also advised to avoid the media. Indeed, most corporations limit media interaction to public relations personnel who, most of the time, are not experts in the debated subject. This leaves a huge vacuum, with our industry lacking credible, well-informed spokespersons on its behalf. So our industry image continues to suffer because we are not offering persuasive rebuttals nor true solutions. What is the way forward? It's a matter of leadership. The distinction between leaders and managers is obvious. Leaders exhibit global awareness and magnetic appeal, and hold bold, visionary positions. They are very charismatic and persuasive communicators who can energize and mobilize widespread support for their goals. Leaders do not need to exert their position's power, or take a command/control approach to run the business. Indeed, they motivate people, and multiply the power of their subordinates through a climate of respect, care, fairness, and integrity. To enrich our leadership pool, we should hold intensive leadership seminars that focus on contemporary strategic issues. These seminars will serve to polish the leadership skills of the participants and at the same time develop industry-wide positions that can be carefully articulated and then shared with the public. Action plans to help prepare our industry for the future can also be developed.