Oil prices remain at unexpected lows, which have had both a direct and indirect impact on industries across the region and country. The fluctuation has had a devastating impact on the returns, outlook and workforce that drive execution in the field and in the offices for energy-related companies.
Yet, our industry continues to grow. While projections vary for projects depending on the sector, important opportunities continue to present themselves for both the short and long term. There is a pipeline of projects and real demand for the services we provide.
Demand creates opportunity and challenges for organizations of all sizes regardless of the economic conditions surrounding them. When the market is up, there is an all out scramble for human capital. And when economic or market challenges present themselves, there is often a reduction in the workforce, making the people who fuel the business appear expendable. This is the harsh, shortsighted reality of business, regardless of industry.
Reaction to the market conditions is a constant for all businesses. As leaders search for profitability and corporate sustainability, they also search for balance. This is a difficult conundrum for many companies that are faced with pressures from shareholders, investors and others with an interest in the organization. Balancing these pressures often defines how an organization emerges from unsettling or challenging times.
The new normal for these organizations is doing more with less — across the enterprise. This impacts people. It impacts culture. And it impacts performance. Unfortunately, financial pressures often win out over critical human capital initiatives that once were at the heart of the organization but are now relegated as superfluous or extras.
Visionary leaders with long-term perspective recognize there are some non-negotiables. Often, they center on the employee and his well-being.
For energy services businesses, the assets walk in and out the door every day — they are not attached to the shop floor. Challenging market conditions and dislocation present opportunities to acquire talent, develop craftsmen and build an identity for an organization. Employees and customers alike have much greater recall of a company’s behavior when facing a challenge or tough market conditions. It’s in tough times when a company establishes credibility with its people and its customers.
This presents a question for many companies: Do they believe people are their greatest asset and their culture is paramount to their long-term success, or do they view their people as simply human capital that can be replaced and remolded to fit their future needs? Some companies can replace their workforce — although it is far more challenging for those in a safety-related field to do so. But, all leaders have choices as it relates to their people. While some in difficult times are forced to choose the more shortsighted of these two options, all leaders have the opportunity to change and invest in the people for the betterment of the organization.
Companies that fiercely protect their people and their culture recognize the short- and long-term benefits to their organizations. This commitment to self not only provides the company a measure of continuity during challenging times, but it also allows employees, even in a volatile employment market, to take comfort in and more deeply embrace what they have always known to be true about their company. That continuity and confidence allows them to not only focus on the task at hand but also subtly encourages them to do more with less.
But doing more with less also poses problems. Employees, regardless of how engaged they are, experience increased levels of stress caused by the volume of work and the uncertainty of the environment around them. It is part of the human psyche to allow uncertainty to creep into their mindsets and unintentionally impact performance, focus and possibly, safety.
While remaining vigilant to the values, core competencies and behaviors that have long defined the company, organizations must now redouble their efforts around key operational initiatives that drive safety, quality and production. Safety is non-negotiable for the leading companies in the world — regardless of economic condition — and can be used as a tool to drive performance. Safe work practices are and must remain uncompromised. They should be nurtured, expanded and demanded — for the organizations that get this right, the rest will take care of itself.
Everyone has a choice when facing a challenge. You can choose to invest meaningfully — right now — in the items that will provide the greatest benefit to your craftsmen and customers. Those investments will clear a path for future success for the men and women who choose to work at your company and will drive tangible results for your customers.
It should not be surprising safety is sometimes sacrificed in times of market transition, but it is tragic — both for the company and the individuals who are now at increased risk. Customers are paying for past performance — making any financial decision that comprises performance in this regard unacceptable. It is up to the visionary leader, in the face of challenging market conditions, to hold steadfast and take a long-term view. It is also up to the visionary leader to make a commitment for the mutual benefit of the organization’s cultural integrity, its people and customers. This must become and remain the new normal.
Are you prepared for your new normal?
For more information on performance, contact Brad Deutser, director of performance at Apache Industrial Services, at (713) 899-9766 or bdeutser@apacheip.com, or visit www.apacheip.com.
