Monday, February 6, 2012

The Perfect Storm in Industrial Operations = People Excellence

The most significant disruption in operational strategy thinking is happening in this post GFC (global financial crisis) era, in determining an operational execution environment enabling timely contributions by the operational team to plant execution. The focus is on currently on operational processes, but quickly this will drive a new operational experience to go with a new operational execution plan. Traditional user interfaces will not “cut” it both in products, or the way they have been implemented. Let me expand on my thoughts on this operational experience, which I refer to as “People Excellence” driving a new paradigm of operational empowerment for all roles in plant operations.
In order to contribute to strategy I spend a significant amount of time a week, listening and asking end-users, and implementers, discussing changes and ideas. A common thread  around the world is operational personal challenge, especially the finding of people to replace to existing “baby boomer generation” and lack of experience available in the market.
This is only part of what I believe the most significant disruption in operational strategy in the last 20 years, yes since the introduction of the PC.
There is a perfect storm happening with these vectors:
·     Aging workforce: the significant amount of current experienced operations, maintenance, process workers who will retire in the next 5 to 10 years. I have heard some mangers in “oil and gas upstream” talk about 80% of their current team will be gone in 5 years. We have to be able to capture knowledge and enable
·      Operational Agility means Decision NOW: To be competitive decisions must be made now this has caused a change in thinking that workers need to be empowered to make more decisions, through more information, higher knowledge and access to experience, a transition from “worker” to “knowledge worker”. This also means they have more responsibility. As one customer said last week traditionally they had an operator cover 5 to 10 wells, this was fine when you have 100 wells which lived 20 years, but in the next 5 years he stated “we will have 20000 + wells, we will not have 20000 operators”.
·      The Rotating operational person means “time to experience” is shorter than ever: With the experienced generation retiring and transitioning to a generation 30 years their junior, and the new factor that people are not staying in their role or location longer than a year. One company stated 10 years ago people were in a role/loaction approx. 5 years, now they are seeing 8 months, so we have to design assuming limited experience. 
·      Transition to digital native worker, with very different expectations, causes challengers with worker retention: The new generation is “digitally native” they expect access to knowledge, they expect “touch experience”, they expect collaboration form anywhere, they expect to learn on the fly.
Step back and look at all these vectors; you have significant disruption happening for those in charge of industrial / manufacturing operational execution strategy. 
That will require:
·       A new generation of user interface products with more than interface capability, but embedded knowledge access, experience access, actionable procedures, collberation services and natural intelligence to really empower the operational workers in all roles.
·       Operational experience design. Notice I did not use HMI (Human Machine Interface), as it is a true “operational experience” that goes through the “day in the life” of the new generation of operational knowledge workers.
Example you see a massive $10B projects but they are all at risk due to lack of people to execute them and more importantly run them after they built.
As I stated in the last blog one of the “legs” of what Enterprise Control is about is “Empowerment of Operational People” this will be through a multiyear program of “People Excellence” which will evolve Invensys from a product centric approach to user interaction, to a more “operational centric experience”. Providing freedom to knowledge worker to execute his daily tasks, decisions through a number of user interface devices, different locations, and interacting with different team members naturally no matter the state.
There are many concepts here which I will explore over the coming weeks.

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