This month, we take a look at the changing world of, well, change. It seems that the dang thing is inevitable. We found it in workforce training, energy efficiency, pipeline infrastructure, and a lot of other places. These are the full versions of the “Drilling Deeper” news items that appeared as abbreviated versions in the print edition of PBOG’s September 2015 issue.
Campaigns to Ban Frac’ing are Widespread
The National Center for Policy Analysis (Dallas, Texas) recently unveiled a new online map that tracks hydraulic fracturing or “frac’ing” bans, restrictions, and other government action hostile to this revolutionary technique used to enhance U.S. oil and gas production. This map will be an ongoing project that tracks the status of federal, state, and local efforts to restrict frac’ing across the United States.
“Frac’ing bans and prohibitive frac’ing regulations are a threat to this country’s economic recovery and superpower status,” says NCPA Executive Vice President/COO Jacki Pick. “Enhanced energy production through frac’ing can help the U.S. revive its economy with unprecedented growth, greatly reduce the national debt and trade deficit, and ensure that we maintain our influence on the world stage.”
Frac’ing, combined with advanced drilling, is how the United States became a top natural gas and oil producer in just the past few years. Pick details the importance of frac’ing in a new video at https://youtu.be/g09FQca1Fvw
“Campaigns to ban fracking too often are based on questionable research, and are progressively choking development in exchange for illusory benefit,” says Pick. While many Americans have heard of isolated anti-frac campaigns, few are aware of the hundreds of successful anti-frac’ing efforts that have swept the nation. This map gives a comprehensive view of that activism and the full breadth of the threat it poses to our economy and energy security. The NCPA will continue to update this map over time as new anti-frac restrictions crop up around the country. See the frac’ing opposition map online at ncpa.org/fracmap/
The National Center for Policy Analysis (NCPA) is a nonprofit, nonpartisan public policy research organization, established in 1983. Its stated purpose is to bring together the best and brightest minds to tackle the country’s most difficult public policy problems—in health care, taxes, retirement, education, energy and the environment. Visit ncpa.org for more information.
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Bush Reboots Texas General Land Office
Less than a year on the job, Texas Land Commissioner George P. Bush is making good on his promise to streamline government and turn the Land Office into a sleek Texas powerhouse.
“Less government is more efficient government,” Commissioner Bush said. “As a conservative, I believe that any time we have the chance to shrink government and make it work better for Texas taxpayers, we should do it.”
Commissioner Bush and Chief Clerk Anne Idsal announced that the Texas General Land Office (GLO) would reboot itself as a “team of teams” instead of a retaining top-down structure that is typical of government agencies. The reboot is already underway, and is expected to take until the end of 2015. In the reboot, the Land Office is consolidating divisions to reduce the number of managers and the number of employees who report to each manager. The restructuring will move much of the agency’s day-to-day decision-making out of centers of managerial power and into the hands of front-line agency staff. “Team of teams” management was pioneered by Gen. Stanley McChrystal, USA (ret.) and creates flatter, networked and more task-oriented systems.
“‘Team of teams’ is 21st century Uber-style management in a highly networked, fast-moving world,” Commissioner Bush said. “It will empower our great staff and create a more agile Land Office.”
Commissioner Bush was elected in 2014 and sworn into office in January 2015. Idsal is the first female Chief Clerk in the history of the General Land Office. Commissioner Bush appointed her in April. The General Land Office manages state-owned lands and associated minerals, the state’s beaches, the Permanent School Fund, many state veterans benefits, and the Alamo.
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Let the “Waters” Roll (Over)
Texas Attorney General Ken Paxton has joined North Dakota Attorney General Wayne Stenehjem and 29 other states urging the EPA to extend the effective date of the planned Waters of the U.S. (WOTUS) rule, which is currently set to go in effect August 28, 2015. Once the rule goes into effect, virtually every river, stream, and creek in the United States will come under the oversight of bureaucrats from the EPA. This would force sweeping changes to environmental policy, and will cause unnecessary hardship to farmers, private property owners and businesses having a detrimental effect on local and state economies.
“This unlawful rule seeks to vastly expand the definition of waters under federal control, putting virtually any property owner at risk of facing costly new regulations,” Attorney General Paxton said. “The EPA’s overreach stifles growth, kills jobs, and hinders the creation of new ones, and I’m committed to fighting this unprecedented expansion of regulatory power.”
The letter, sent to EPA Administrator Gina McCarthy and Assistant Secretary of the Army Jo Ellen Darcy, requests that the EPA immediately act to extend the effective date of the WOTUS rule by at least nine months.
On June 29, joined by the states of Louisiana and Mississippi, Attorney General Paxton filed a lawsuit challenging the EPA’s unconstitutional, illegal and costly new water rule. By revising the regulatory definition of “waters of the United States” under the Clean Water Act, the EPA greatly expands federal jurisdiction over waters and threatens the ability of states and private property owners to use their own land. The rule violates the U.S. Constitution, federal law and U.S. Supreme Court precedent, and places costly burdens on landowners in Texas.
To view the letter, please visit: https://www.texasattorneygeneral.gov/files/epress/files/2015/07-29-15_Letter_to_EPA_and_Corps.pdf?cachebuster:22.
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Steve Suceda
Workforce Training
Steve Sauceda patiently maps out times and dates of trainings through various training organizations and certifying bodies on a large dry erase board fashioned into a calendar. He’s laying out a plan for upcoming workforce development trainings and seeing when and where he can add more. Before he finishes this, he gets a call from a local community organization wanting to do some workforce trainings with their administrators. Within minutes, he is going through his network of instructors determining who will be qualified and available to meet the request.
Sauceda, Customized Workforce Training Coordinator, has been doing this for almost nine years at New Mexico Junior College’s Training and Outreach (T&O) Division. His mandate: to work with local and regional organizations, individuals, and area businesses to offer access to a variety of workforce training courses for local and regional industry.
“The trainings that we offer are many: oil and gas safety; heavy equipment operator training; leadership; customer service; Command Spanish; computer software (MS Office; Adobe); human resource training; communication; well control/blow out prevention; and, conflict management, to name a few,” said Sauceda.
Sauceda takes his role seriously and his goals are in line with NMJC’s: 1) to reach as many people as possible and to equip them with necessary and leading skills for area industry and 2) to make NMJC one of the biggest and best workforce training providers in the state. With Sauceda’s persistence and support from NMJC leadership, NMJC claimed that latter title in 2014, and Sauceda is eager to maintain that position once again in 2015.
“Steve’s role at T&O has been instrumental in the exponential growth of workforce training and people served at NMJC,” said Jeff McCool, NMJC Vice President for Training and Outreach. “I know the number of people we reach will only grow each year, and so will our trainings. We will continue to diversify and listen to what industries need most in their employees, and design trainings based off that.”
NMJC’s T&O division beat out 17 other community colleges in New Mexico for having the most people serve in workforce training offerings, number of new clients served, and total number of non-credit workforce training hours. This was the first time NMJC ranked number one in all three categories.
“We have gone from a division that was created out of the vision of our president and community leaders to being the number one ranked workforce training school in the state of New Mexico,” said Sauceda. “Support from the NMJC president, the board, administration, and the dedicated staff of the T&O division have played a tremendous role in helping us reach this point.”
Every fiscal year, schools in NM that conduct workforce training submit a report that contains the total number of people they have trained, total number of training hours, and the number of new clients served. Each year, the legislative session allots a certain amount of money to be divvied up amongst the schools who conduct workforce training based on the total number of training hours.
“It became a personal goal of mine in the 2009-2010 year to unseat the long-standing #1 ranked school in all 3 categories,” said Sauceda.
This milestone was immense for NMJC in many ways especially because competing schools like those located in the Albuquerque metropolitan area have much larger population bases to draw from.
“The fact that the long standing number one ranked school comes from the state’s largest city with a population 20 times the size of Hobbs and an enrollment 11 times that of NMJC made the achievement of this team goal that much more satisfying,” said Sauceda.
Sauceda explains that capturing that title doesn’t happen in a vacuum. It involves working diligently with local and regional companies, organizations and community representatives to ensure trainings are current and relevant to the constituents’ needs.
Part of Sauceda’s job is to also find the best location for trainings to best meet industry needs, which sometimes entails stepping outside the 15,000 square-foot Larry Hannah Training and Outreach Facility on the NMJC campus. “If there is an instructor available to teach the subject, we can find a way to put it together for you,” said Sauceda. “It is truly ‘training made to fit’. We literally have one of the finest training facilities in the region where we conduct trainings—but if it works out better for us to come to you, we can do that too!”
A large part of what has fueled T&O’s success in training is their agreement to offer classes through Texas Engineering Extension Service (TEEX), which is an OSHA Training Institute Education Center. In 2007, T&O offered approximately 10 oil and gas safety trainings.
“In 2015, NMJC is offering 70 oil and gas safety trainings through TEEX with 60 percent being taught by local instructors of my choosing,” said Sauceda.
Recently NMJC became one of only five organizations in Region VI (NM, TX, OK, LA, AR) to be offered the distinction of being a Cooperative Learning Center (CLC), which gives T&O the ability to hire its own local instructors for the TEEX trainings as well as an ability to generate revenue off of the trainings.
“We are also only six months into our new CLC agreement with TEEX and I look for that partnership to continue to grow,” said Sauceda. “My goal is for 100 percent of TEEX courses we offer to be taught by local instructors by January 2017.”
While many of the trainings through T&O are oil and gas related, Sauceda and the T&O staff have made large strides in offering a variety of trainings that span several industries and local economic needs. This has helped the group to excel in its efforts and to respond to area industry trends.
“We are in the heart of the oil patch and the ebb and flow of that industry does affect us, but I believe that our efforts to diversify our variety of trainings has helped to not only weather the storm when oil prices dip but to also have steady growth across the board. The staff of the T&O division has tremendous projects that are being prepped to launch in the near future that will put us into new markets that we have not been in before.”
Some new trainings on the horizon for T&O include an instrumentation & controls program and a lease operator program complete with a new oil and gas training pad designed to be a mock well site.
Sauceda adds that the very business model of NMJC’s T&O is what sets it apart from other workforce training organizations.
“Our business model is unique in the fact that we do not have any trainers on staff for the trainings I coordinate,” said Sauceda. “Everything I do is contracted or sub-contracted out. So, when I am out and about in the community or participating in regional events and functions, not only do I have my business cards handy to let someone know that I can help them out, I am also looking to collect business cards from individuals and organizations who are consultants, contractors, instructors who can help me fill a training need, if and when the opportunity arises.”
Sauceda explains that many organizations shy away from this model for fear of competition.
“We are about empowering our clients and providing them with quality, competitively priced options that positively impact their bottom line.”
For this year, Sauceda is expecting to more than double the training hours alone despite the recent dip in oil prices. Final tabulations of the three categories will likely be released in September. Sauceda is adamant about continuing to build T&O’s presence and impact in the community.
“Despite being at this job for over 8 years, I still come across individuals both locally and regionally who are surprised to hear that NMJC has a workforce training division. So, an ongoing mission of mine is to continue to lessen the number of ‘oh! I didn’t know you did that or that your division even existed’ statements.”
Sauceda adds that a recent restructuring of the T&O division to only offer non-credit training will help to solidify the division’s place in the community, state and the region.
“Now that the T&O division is streamlined and 100 percent focused on non-credit workforce training it is exciting to see what we can be and how far we can go,” said Sauceda. “Given that we earned the #1 ranking prior to being re-aligned gives great hope that we can continue to be a premier training division.”
For the T&O staff, recent achievements have only propelled the group to strive for more.
“At T&O, we are driven to change people’s lives by offering them greater career opportunities through quality, short-term, workforce training,” said McCool.
“We are not content to simply have earned the #1 ranking once—we would like to create a streak of those achievements while staying focused on giving our customers, clients, and partners the absolute best service possible,” said Sauceda. “We are not in the business of offering trainings because we think they sound good. We are in the business of listening and responding to demand.”
For more information about NMJC T&O, please call 575-492-4716.
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Energy Efficiency Works
Energy efficiency has made major strides in the United States in the last 35 years, with “energy intensity”—the measurement of energy used per dollar of gross domestic product—down from 12.1 thousand BTUs per dollar in 1980 to 6.1 thousand BTUs per dollar in 2014, according to a major new report from the nonprofit American Council for an Energy-Efficient Economy (ACEEE).
ACEEE found that about 60 percent of the improvement in energy intensity over the report’s 35-year period was due to energy efficiency and about 40 percent to major structural changes in the economy. The bottom line: Just the energy efficiency portion saved U.S. consumers and businesses about $800 billion in 2014, roughly $2,500 per capita. Even though U.S. energy use edged up by 26 percent from 1980 to 2014, the U.S. gross domestic product (GDP) increased by 149 percent.
The ACEEE report is available online at http://aceee.org/research-report/e1502.
Issued to mark ACEEE’s 35th anniversary, “Energy Efficiency in the U.S.: 35 Years and Counting” also looks ahead and concludes that “(w)hile much progress has been made, there are large and cost-effective energy efficiency opportunities that, by 2050, can collectively reduce energy use by 40-60 percent relative to current forecasts.”
Examples of energy-efficiency advances since 1980 cited in the report include the following:
The energy use of new clothes washers has declined by more than 70 percent.
The energy use of new homes per square foot has declined by nearly 20 percent.
Industrial energy use per unit value of product is down by nearly 40 percent.
The fuel economy of passenger vehicles has improved by more than 25 percent.
Energy losses in the US electric transmission and distribution system have declined by more than 25 percent.
Report co-author and ACEEE Executive Director Steven Nadel said: “Energy efficiency has made great strides in the past 35 years, and we have learned many important lessons on how markets and policies can work together to advance it. Looking forward, we find opportunities to reduce 2050 energy use by half relative to a business-as-usual reference case. In order to harvest these large efficiency opportunities, we need to take our efforts to a higher level. The challenges are many, but so are the benefits in terms of lower energy bills, a stronger economy, improved energy security, and a cleaner environment. The past has shown us what efficiency can do and it can guide us to even greater success in the future.”
The ACEEE report notes: “Efficiency investments and savings also generate jobs, including direct jobs installing efficiency measures, indirect jobs upstream in the supply chain, and jobs induced as energy bill savings are spent elsewhere and multiply through the economy. Energy savings can also help to drive modest overall growth in the U.S. economy… Further, energy efficiency savings over the past 35 years have contributed to our nation’s security and improved our environment… Reductions in energy consumption also mean reduced emissions of fuel-combustion by-products, including sulfur dioxide and nitrogen oxides (contributors to acid rain and smog), mercury and other toxic metals (contributors to health problems), and carbon dioxide (the predominant greenhouse gas).”
To achieve even deeper energy efficiency advances in the next 35 years, the ACEEE report recommends:
Better systems integration, including through “intelligent efficiency,” i.e., the use of sensors, controls, big data, and computer chips to monitor and control energy use in real time.
Improvements to the many types of equipment (such as computers, televisions, and elevators) that collectively account for growing miscellaneous energy loads.
Evolution of building design to yield zero net energy and ultra-low-energy buildings.
Industrial process improvements.
Increased use of advanced vehicles, including electric, hybrid, and self-driving vehicles.
Taking building energy retrofits to a much higher level, including more widespread and deeper retrofits for larger savings per building.
Better efficiency of the electric grid through expanded use of combined heat and power systems, greater power plant efficiency, reduced transmission and distribution losses, expanded use of other distributed generation resources, and improved grid control and integration.
Promotion of sustainable development and transportation patterns.
Initiatives to change wasteful energy-using behaviors among consumers and businesses.
ABOUT ACEEE
Founded in 1980, the American Council for an Energy-Efficient Economy acts as a catalyst to advance energy efficiency policies, programs, technologies, investments, and behaviors. For information about ACEEE and its programs, publications, and conferences, visit http://aceee.org.
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Remote Camp Industry Stable
June 29, 2015, Orissa Software Inc.—North America’s leading provider of accommodation and guest management solutions—released its report, Workforce Accommodation—Quarterly Industry Watch, which examines year-over-year trends observed in the remote camp industry.
Orissa manages tens of thousands of rooms for some of the world’s largest oil companies, camp operators, and caterers, and was recently acquired by Gemstone Logistics to meet a rising industry demand for complete end-to-end travel and accommodation services.
Drawing on data from over five million resident days and 15 different camp installations, Orissa’s Workforce Accommodation—Quarterly Industry Watch is the first report of its kind to analyze the correlation between oil prices and camp behavior. Orissa will update and release this information on a quarterly basis, providing up-to-date data-driven insights ranging from regional market trends to operational statistics.
“This report leverages Orissa’s 14-year history and significant industry reach to provide unique insight into the state of the remote camp industry. The sheer volume of data makes this a very credible source of information,” said Jim Seethram, Acting COO of Orissa. “At a time when we’re seeing a lot of uncertainty around oil prices, it’s encouraging finding that large camp operations remain relatively stable.”
The report’s key findings include:
Large camp operations (1100+ man) remain steady despite drop in oil prices.
There has been an industry-wide increase in length of stay and strong reservation activity in Q1.
While the decline in WTI was universal, the data shows regional differences in the timing and size of its impact, with some regions showing very little to no negative impact.
To access the report, visit www.orissasoftware.com/news/
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Debora McLaughlin
Women: Difference Makers In Business
Only 18 percent of companies hire the right managers, according to a recent Gallup report. The study, titled “State of the American Manager,” finds that businesses do a poor job picking managers to lead their employees, collectively costing companies billions of dollars each year. The report is based on more than “four decades of extensive talent research, a study of 2.5 million manager-led teams in 195 countries, and analysis from measuring the engagement of 27 million employees.” The research yields a striking failure rate—82 percent—when it comes to how well companies select their managers.
On the plus side, with such an abysmal success rate in hiring managers, we can reasonably expect improvement in the workforce,” says Debora McLaughlin, CEO of The Renegade Leader Coaching and Consulting Group (www.TheRenegadeLeader.com), and author of Running in High Heels: How to Lead with Influence, Impact, and Ingenuity.
“More importantly, Gallup points out what many of us have known for decades—that including more women in leadership positions will reliably improve conditions within an organization’s work culture,” she adds.
An important criterion for how success is measured in management is engagement, where women have a decided advantage. Those who work for female managers are, on average, six percentage points more likely to be engaged, and those who work for female managers outscore employees of male managers on 11 of 12 engagement items.
“While I am a strong advocate for women in leadership positions, I think it’s safe to say that all of us, no matter our gender, have room to improve our management skills,” says McLaughlin, an executive and business coach who offers insight into achieving management goals.
- Rigidity won’t help you retain top talent; be open. The ideal management style for today’s business climate is evolving. The traditional top-down hierarchal structure is giving way in favor of a more collaborative team approach. That means being open to communication, empathy and encouraging inspiration in employees.
“In my years as a business coach, I’ve had to convince men that a strictly hierarchal approach is often a company’s demise,” McLaughlin says. “Retaining and encouraging talent today means I emphasize open communication, empathy and employee inspiration.”
- Encourage engagement by focusing on an employee’s strengths or positive characteristics. Of course, emphasizing someone’s positive traits doesn’t require you to ignore areas that could or should be improved. Clearly, if an employee is severely underperforming, then that must be addressed. However, if you can assume your employees are at least competent, then be proactive with your praise. Expressing positive reinforcement toward their tangible contributions has an empowering effect that will yield greater ownership of their roles.
“For many, this positive reinforcement may mean encouraging employees to be themselves,” McLaughlin says. “Our natural talents are freer to flow when we aren’t battling ourselves.”
- Too many exceptional women succumb to ‘off-ramping.’ Multiple studies have found that, on a woman’s path to the C-suite, she faces an abundance of “off-ramp” options – life decisions that take her off her career path. And, since the recession, the “on-ramps” have become scarce. According to a 2010 study from the Center for Work Life Policy, 73 percent of women trying to return to work after a voluntary timeout for childcare or other reasons had trouble returning to work or finding a job.
“This can lead to a cascade of resulting problems, such as reduced pay for women when they return or not off-ramping in the first place, which tends to yield an over-burdened lifestyle,” McLaughlin says. “This is a developing issue with more studies to be completed. However, I believe companies that are accommodating to a woman’s familial needs, for example, are ultimately helping themselves by retaining proven talent, promoting loyalty and preempting the uncertainty of a new hire.”
About Debora McLaughlin
Debora McLaughlin is the best-selling author of The Renegade Leader: 9 Success Strategies Driven Leaders Use to Ignite People, Performance and Profits. Her new book, Running in High Heels: How to Lead with Influence, Impact & Ingenuity, is a how-to leadership companion for women in business. She is CEO of The Renegade Leader Coaching and Consulting Group (www.TheRenegadeLeader.com. As a certified executive coach, McLaughlin helps business owners, executives and managers nationwide ignite their inner renegade leader to unleash their full potential, drive their visions and yield positive results, both in business and in life.
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Maximize The Risk-Reward Relationship
By Maxine Attong
Maxine Attong
There’s no shortage of fanfare for the hottest corporate buzzword of the past several years—innovation. As Forbes noted in a 2012 article, the word has become the “awesome” of corporate speak. Innovation is the quality desired by business leaders, who tend to believe that if you’re not innovating, you’re dying a slow death. While volumes have been written about the path to reliable innovation, corporate coach Maxine Attong has found none with the key ingredient that she has found so compelling in her work, safety.
“In order to take risks, which is the foundation of innovation and subsequent rewards, a team member has to feel safe,” says Attong, a certified facilitator and author of Lead Your Team to Win: Achieve Optimal Performance by Providing a Safe Space for Employees (www.MaxineAttong.com). “Anyone who has ever been in a classroom or company meeting knows the potential risk of making an out-of-the-box statement, which could be seen as silly, frivolous or ignorant—or as a groundbreaking insight. Without a sense of safety, most employees will decide to silence an unconventional statement that could risk their standing.”
Unusual and unconventional ideas are a sign of strength in a company, Attong says. It shows that team leaders really are open to innovative ideas. She further explains the importance of the idea and how to create safety to voice risk-taking ideas.
A safe space is the “office Vegas:” what happens in the room stays in the room. While business plans may be neatly fitted into a blueprint, the reality of any strategy involving humanity needs to account for our unpredictability. We’ve all had those days in which we were stressed out by personal matters. Meanwhile, deadlines and expectations loom as the workload continues to pile up. The more you try to ignore your personal problems, the more they come to mind.
“What would it be like if you could go into a room where you have total support and have a good cry for the dead dog, vent how angry you are at your loved one, or rant about how stressed you are over your coworker’s behavior?” Attong says. “When you are done, you leave the room knowing that your behavior was not judged, and your statements were confidential. That’s the kind of safe space that can facilitate innovation.”
Human beings have an amazing capacity for brilliance. However, the list of negative distractions is formidable: sick children, marriage or divorce, financial issues and other problems can take a focused mind off track. A safe space can get a mind back on track, and people working creatively on new solutions enable leaders to develop an outstanding team and instill stability. Creating a safe space can create a work environment in which team members actually look forward to work, a place where they can drop off their problems at the door and deal with them later. A safe place enables members to keep their egos in check and feel open to explore ideas. Innovation is often fun—it doesn’t have to be scary.
Safe spaces work on the inertia of several human traits. Safe spaces have been shown to work in other human affairs, including religion, addiction recovery programs, therapeutic counseling or coaching. People need to be heard, but they won’t reveal themselves unless they feel free from judgment. And, we need sensible guidance. After the safe space has been explained to team members, they’ll feel free to pursue productivity. The space assumes that the adults in the room want to be in charge of their lives and want to have relevant work experiences that contribute to their overall goals.
About Maxine Attong
Maxine Attong (www.MaxineAttong.com) has been leading small and large teams for the past two decades – both in organizational settings and in her private coaching and facilitation practice. She has helped organizations come to consensus, overcome the perils of ineffective leadership, redesign processes to suit changing environments, and manage the internal chaos inherent in strategy implementation. She has been trained as a Gestalt Organizational Development practitioner, a Certified Evidence-Based Coach, a Certified Professional Facilitator, a Certified Management Accountant and is a former Quality Manager. Attong is a graduate of the University of the West Indies, and divides her time between the Caribbean and the United States. Her latest book is Lead Your Team to Win: Achieve Optimal Performance By Providing A Safe Space For Employees.
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David Waits
Five Barriers to Implementing Strategy
By David Waits
Strategy is a framework within which decisions are made, which influences the nature and direction of the business. Strategy directs organizations as they make plans, marshal resources, and make day-to-day decisions. It is imperative that strategy is clear, concise, and congruent. Otherwise, organizations and people can be efficiently headed the wrong way. Companies lacking a clear, memorable, embraced strategy struggle with implementation, thwart tactical execution, and blunt their effectiveness. Take prudence to avoid these five barriers to implementing strategic direction.
Head in the Clouds
Barrier 1: Strategy that is too lofty and non-pragmatic
Many times, the strategic direction sounds good on paper but it is way too lofty. It is not pragmatic. A direction that is not pragmatic will not move people to action. Vision is a compelling picture of a future state that inspires people to perform. Strategic direction needs to be wrapped into that vision so that it gets off of the paper, off of the posters and out into the trenches where people work. This will start the process of getting the desired results. It is the direction, not intentions, that determines your organization’s ultimate destiny.
Now, Now, Now
Barrier 2: Overly focused on immediacy
Because of the incredibly fast pace of business in today’s world, it is easy for leaders to get preoccupied with the immediate and urgent things that are in front of them and lose sight of their main outcomes and objectives. Like the story of the little boy trying to put his finger in the dike, leaders can get caught up in moving from one emergency to the next, to the next, to the next. The immediacy of the next report or the next meeting keeps leaders from making sure that they pull back and stay focused on where they want to go. A strong strategy provides the framework for effective decisions.
But I Like It…
Barrier 3: Doing what we like to do
The third barrier that keeps leaders from implementing strategic direction is the trap of getting wrapped up in doing the things leaders like to do instead of the things the strategic direction is calling for. Think of it this way, if the strategic direction could talk, what would it be asking to be done today? The answer to this question will determine decisions, establish proper priorities and clarify the next appropriate step to take. Leaders should only be focused on tasks no one else can do. If someone else can do the task, delegate it, monitor the outcomes, make appropriate corrections, and celebrate progress.
Congruency/Commitment Conflict
Barrier 4: Lack of congruency at the top and commitment from the middle
It is important to have buy-in from the middle. Many postulate that leadership starts at the top maintaining that what is at the top is what filters down. There is certainly truth contained in that axiom. However, if there is not buy-in at the middle level of leadership, the implementation of the direction will be thwarted and ultimately blocked. It is important to have congruence at the top, so as a senior leadership group, there is a clarion message that is common to all top leaders. Otherwise, mixed messages will be sent. When there is a commitment at the middle level with congruency from the top, the lower level of leadership will help catapult strategy into success.
The Blinding Fog
Barrier 5: Not reviewing often enough
The last barrier that impairs consistent implementation is caused simply by not revisiting the strategy consistently. The consequence of this lack of continual review results in a loss of focus creating the calamity of operating in a dense fog. If strategic direction is not kept front and center, the forward driving force of the implementation is forfeited. Organizations and people move towards what they are focused on. Without this regular focus on strategic direction, efficient and effective implementation is impeded, if not stopped altogether.
Strategy implementation can be a long process. To implement strategic direction, first pinpoint clear messaging that is vibrant, specific and memorable. If implementation is going to be embraced and enacted, marketing your message internally to your team to facilitate buy-in from top to bottom is a critical necessity. Secondly, identify tangible milestones. Have definable indicators of the targeted results of each step of implementation and build in accountability measures for each milestone.
Thirdly, capture memories along the way to record the progress from where you started to where you are now. Many parents periodically make a mark on a chart or behind a door capturing the growth history of their children because it’s so easy to miss both the subtle and the dramatic development of each child. In the same way, keep a memory chart of steps, set-backs and victories throughout the process as a reminder of the progress you have made. Looking back at successes brings hope as you move through the challenges of the future.
ABOUT THE AUTHOR:
David Waits, founder of Waits Consulting Group, Inc., is a highly sought after consultant, speaker and author. As a proven expert in developing powerful initiatives that revolutionize culture, David helps his clients create a thriving organizational environment that facilitates rapid growth, innovative development and on-going profitability. He has worked with clients in all 50 states, including Quest Diagnostics, General Dynamics, Major League Baseball, Walmart, Walt Disney World and numerous other world-class organizations. For more information, visit www.DavidWaits.com.
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LINN Energy Finalizes Strategic Alliance With Quantum Energy Partners
LINN Energy, LLC (NASDAQ:LINE) (“LINN” or the “Company”) and LinnCo, LLC (NASDAQ:LNCO) (“LinnCo”), announced July 6 that LINN has signed definitive agreements with private capital investor Quantum Energy Partners (“Quantum”) to fund selected future oil and natural gas acquisitions and the development of acquired assets (“QL Energy I, LLC” or “AcqCo”).
Quantum has agreed to initially commit up to $1 billion of equity capital to fund acquisitions and development of oil and natural gas assets. LINN will have the ability to participate in all acquisition opportunities with a direct working interest ranging from 15 percent to 50 percent.
AcqCo assets will be managed by LINN in exchange for reimbursement of general and administrative expenses. Additionally, after certain investor return hurdles are met, LINN will have the ability to earn a promoted interest in AcqCo. Upon the sale of any assets within AcqCo, LINN will be given right of first offer to acquire the assets.
Strategic advantages expected for LINN:
- Creates a “drop-down” entity in which assets can be purchased and harvested on an ongoing basis;
- Allows participation in acquisitions outside of the conventional MLP asset profile;
- Enhances ability to capture acquisition opportunities during distressed market conditions;
- Provides potentially more accretion to cash flow per unit as a result of the promote structure;
- Creates a long-term partnership with a private capital provider which is scalable and repeatable; and
- Provides LINN with the dynamic ability to acquire and finance acquisitions at the most advantageous times.
Strategic advantages expected for Quantum and QL Energy I, LLC:
- Opportunity to partner with a premier management team and company to acquire and develop assets of size;
- Creates a well-funded entity, whose principals collectively have an exceptional track record of acquisition-driven value creation and growth;
- Ability to leverage LINN’s existing scale of operations and workforce across multiple basins in the United States; and
- Creates a long-term partnership with the largest upstream MLP/LLC, with the ability to develop and then monetize mature assets efficiently over time.
“We are very excited to have finalized this new opportunity and are pleased to be working with Quantum in this unique partnership,” said Mark E. Ellis, Chairman, President and Chief Executive Officer. “We anticipate a number of attractive assets may come to market in the current environment and we expect these agreements will position the Company to take advantage of such opportunities.”
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Pipeline Infrastructure Would Provide Relief
Expanding America’s pipeline infrastructure would relieve the nation’s overburdened freight rail network and improve service for farmers nationwide, according to a new study from the American Farm Bureau Federation.
The booming energy business in the Upper Midwest spiked rail congestion and freight costs for farmers in the region and cut their profits by $570 million during the 2014 harvest. The AFBF study found that the average North Dakota corn farmer may have received $10,000 less than the traditional market rate for the crop. Increasing U.S. pipeline capacity—particularly in the Bakken region—is a prime solution for adding freight system capacity overall and relieving rail congestion, according to AFBF.
“American farmers depend upon rail freight to move their products to market. The surge in rail transportation of crude oil has affected that ability and timing in recent years,” AFBF Chief Economist Bob Young said. “Construction of new pipelines would certainly be a more effective way to move that product to market. It would take crude oil off the rails and, in doing so, improve the overall efficiency of the transportation system. Improved pipeline infrastructure will also help enhance American energy security for everyone.”
Study author Elaine Kub said farmers face challenges in getting their goods to market that others do not.
“Due to the nature of grain production and use, the industry is fairly inflexible about which freight methods it can use, so any time one of those methods is unavailable, crops are lost or cost more to transport,” she said. “This leads to more expensive food for families and less profitable incomes for farmers. Crude oil, however, can be more efficiently and affordably shipped through pipelines, and can be done without crowding already overstressed railways.”
The AFBF study also featured mathematically simulated scenarios showing how expansion of any freight method—truck, rail, barge, or pipeline—can reduce overall congestion and, in certain scenarios, could increase the annual volume of grain moved by as much as 14 percent.
To read the study, click here.
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Atlas Copco Rental Acquires Mustang
Atlas Copco Rental, a leading provider of sustainable productivity solutions, has acquired the operating assets of Mustang Services, a specialty dryer rental business that primarily serves the rental industry to supplement their existing fleets.
Mustang Services rents out its equipment, mainly adsorption type air dryers, after coolers, and filters to the rental industry which service industrial, pipeline and other end-users that require dry compressed air in their processes. The products are often rented together with air compressors to provide customers with a total rental solution.
Dan Dorran is assuming the position of Vice-President of Operations for Mustang Services. Dan has an extensive and long career in the compressed air and accessories rental business.
“I am looking forward to embracing this challenge and continuing the development of Mustang Service’s business further. Mustang Services has created a successful business strategy to supply high quality air dryer and treatment equipment to the market and the ability to build on this proven platform is exciting. As part of the Atlas Copco Specialty Rental Group, Mustang Services will benefit tremendously from the already established structure and logistics across North America,” said Dorran.
Fairway Energy Partners Announcement
Fairway Energy Partners, LLC (Fairway) announced the closing of a private equity offering, the net proceeds of which will be used to fund the construction of the first phase of the Pierce Junction Crude Oil Storage facility. Fairway plans to use this capital to convert three existing underground storage caverns at the Pierce Junction Salt Dome in south Houston into crude oil storage service and to build out all of the requisite pipelines, brine ponds, interconnects, and pumping capacity to put the facility in commercial service. FBR Capital Markets & Co., a subsidiary of FBR & Co., served as the sole placement agent and initial purchaser in this offering, which was executed pursuant to Rule 144A under the Securities Act of 1933 and other exemptions.
The initial phase of the project is expected to be in service by the end of 2016 and has been designed to allow for storage of three segregations of crude oil for a total capacity of approximately 10 million barrels. Overall, Fairway has expansion rights up to a total of approximately 20 million barrels at Pierce Junction. Following the completion of Phase I, the company intends to take the project to its full capacity during a second phase of the project. Fairway has secured the exclusive right to store crude oil on the Pierce Junction Salt Dome.
Phase I also includes the construction of two separate bi-directional 24-inch pipelines intended to connect the facility to the existing Houston area crude oil grid, adding more than one million barrels per day of pipeline receipt and delivery capability in the Houston marketplace. The proposed pipelines will traverse approximately 21 miles across the Houston area to connect the caverns to the Genoa Junction and Speed Junction hubs. This should enable Fairway to provide receipt capability from inbound crude oil pipelines from the Permian and Eagle Ford Basins, the Mid-Continent and Canadian regions as well as the Gulf of Mexico. The hubs provide downstream connectivity to terminals, refineries and water outlets located in the Houston Ship Channel, Texas City and Beaumont/Port Arthur market areas.
In the first phase, Fairway will also construct brine ponds with approximately 10 million barrels of capacity and central pumping and metering facilities at the site. The project is designed as a closed system, minimizing any new air emissions as well as customers’ volumetric losses.
“This project will serve the growing crude oil storage needs driven by the significant delivery of new pipeline-delivered crude oil into and through the Houston market. We’re offering a new, low-cost WOD:47144.2 option to the market as a fee for service based provider. We do not intend to take title to the crude oil that we will handle and store, nor will we trade crude oil,” said Fairway CEO Chris Hilgert. “We are delighted to have the continued support of our original financial sponsor, Haddington Ventures, LLC (Haddington), as well as the new investors in Fairway who were brought to us through the engagement and efforts of FBR.”
Haddington was active in facilitating the transaction and will continue as a major investor in Fairway. “We are very excited about our investment in Fairway,” said Chris Jones, Managing Partner of Haddington. “Our long history with underground storage fits well with Fairway’s initiative and we look forward to continuing our involvement with the company to advance this critical project into the marketplace.”
This press release relates to an offering that has been closed and does not constitute an offer to sell or a solicitation of an offer to buy any securities, and does not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.
Fairway’s counsel for the transaction was Andrews Kurth LLP. Sidley Austin LLP represented FBR.
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Wear It Properly
When worn correctly, flame resistant (FR) clothing can provide life-saving protection against a variety of workplace hazards, such as arc flash, flash fires, and molten metal splatter. But if worn improperly, the clothing is not only out of compliance with industry standards, it also becomes less effective.
To help clarify some of the common mistakes workers make in the way they wear FR clothing, Workrite Uniform presents a list of the “Top Five Ways FR Clothing is Improperly Worn.”
Read on to learn how to receive the full safety benefits of your FR work wear.
TOP 5 WAYS FR CLOTHING IS IMPROPERLY WORN:
- WEARING IT WITH A NON-FR OUTER LAYER
In bad weather, it may be tempting to wear a non-FR jacket over your regular FR clothing. Even if you are wearing flame-resistant clothing, a non-FR outer layer can still ignite and burn, putting you in danger. When faced with cold weather conditions, it is important to invest in the proper FR outerwear. - WEARING IT WITH A NON-FR SYNTHETIC UNDER LAYER
Performance t-shirts made from polyester or other synthetic materials are often worn to help with moisture management, but they are not flame resistant and can actually melt to the skin. - ROLLING UP SLEEVES
Rolling up your sleeves may seem like the perfect way to beat the heat, however, this leaves the arms exposed and should be avoided. Instead, look for FR clothing made with lightweight, moisture-wicking fabrics that provide a greater level of comfort without sacrificing safety. - UNZIPPING COVERALLS OR UNBUTTONING SHIRTS
Just like rolling up your sleeves, unzipping or unbuttoning FR clothing can expose the skin or (as noted above) a non-FR under layer that could ignite and burn. - NOT TUCKING IN SHIRTTAIL
If the tail of your shirt is not properly tucked in, heat and flames can travel under the bottom of it and cause greater injury. Invest in FR clothing that’s purposely constructed with long shirttails to prevent this from happening!
So, to make sure your FR clothing is in compliance and ready to keep you safe, remember: wear FR outerwear, avoid synthetic under layers, and roll it down, zip it up and tuck it in!