One of the most important, and yet sometimes forgotten, elements of benchmarking is that it is best applied not just within the industry but outside the industry as well. In an example of benchmarking that is likely outside your usual business dealings, PwC has benchmarked the oil & gas land organizations. The findings are derived from responses from more than 70 professionals across 20 top oil & gas companies in the US.
Drilling for Answers
The conclusion reached by the study was that “rapid shifts from land acquisition to development have intensified the resource and organizational gaps in land administration and operations.” Like in many other industries, these companies are struggling to manage the vast amounts of data they are generating. Even communicating and coordinating effectively can be difficult. In order to meet these familiar challenges, PwC identifies five key trends for success:
- Effective executive leadership
- Centralization of operations
- Accountability, with clear roles and responsibilities
- Talent development
- Foundation for success
About effective leadership, a PwC article elaborates:
In highlighting the importance of executive leadership, results from the study also indicate that a single land organization leader strengthens communication and data flows across the land value chain. Among those with functional alignment under a VP of Land, 82 percent rated communication and coordination as excellent or good, compared to only 57 percent of those without a VP. In terms of data flows, 83 percent rated data flows as excellent or poor, compared to 59 percent of those without a VP.
What could be taken for granted as a best practice in one industry could be a revelation to another industry. Other times, a problem that leaves one industry frustrated can be shared among several industries. Either scenario highlights the ever-present importance of benchmarking. You can read more about the PwC study here: http://www.pwc.com/us/en/press-releases/2014/oil-gas-company-opportunities.jhtml