Corporate Culture

Transformation for
Sustained Relevance

MARIM International Conference 2019

21.08.2019

© 2019 Petroliam Nasional Berhad (PETRONAS)

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©Petroliam Nasional Berhad (PETRONAS) 2019 1

Open
Different global trends that are reshaping
the future impacting our business directly
Global macro trends Broader energy trends

Shift to emerging Increasing global

markets & rise of connections Renewable Future of
consumer
energy mobility

Oil and gas trends Other disruptors

Upstream Chemicals

Automation Process
and robotics digitalization
Retail

© 2019 Petroliam Nasional Berhad (PETRONAS)

Corporate Profile Today
Global footprint and diverse workforce

Worldwide Operations Workforce Strength

- >20 countries; 100 companies (total headcount) As 2019
at 1 Jan

53,149 53,215
51,034
49,193 49,911
46,145 48,001
40,992

33,944

25,733

13,136

6,715

18

Workforce < 35 years old Woman

Workforce 27%
Composition 51%

Nationalities Other than

20%
111 Malaysian
© 2019 Petroliam Nasional Berhad (PETRONAS)
Integrated and multiple business portfolio
for maximum value creation
Leadership & Capability Development

PETRONAS Institut Teknologi

Leadership Petroleum
Centre PETRONAS

Universiti Malaysian
Teknologi Maritime
PETRONAS Academy

Associate Companies

PIVA PIVSB
PETRONAS PTV International PTV International
Fertilizer
ICT Ventures Ventures Sdn Bhd
Americas, Inc.

KLCC Property Engen MISC

Holdings Berhad Limited Berhad

Malaysia Marine and Heavy

Vestigo Petroleum Petrosains Sdn. Bhd. Engineering Holdings
Sdn. Bhd.
Berhad (MHB)

© 2019 Petroliam Nasional Berhad (PETRONAS)

How do we continue to stay relevant and
profitable?

Business Culture
Strategy
Where & How Way we work

Various efforts were taken to transform the

organization

© 2019 Petroliam Nasional Berhad (PETRONAS)

Special attention to transform mindset &
behavior and systems & processes

Shape desired work Shape high-impact,

culture for sustainability cross-organization
and continuous transformation that
alignment to foster an affects business process,
engaged workforce system & structure

© 2019 Petroliam Nasional Berhad (PETRONAS)

Guiding principle adopted in designing
sustainable interventions

Leaders role model; 1

organizational alignment & clarity

Centrally shaped & govern; 2

Business implement

Everybody ABLE to manage 3

change

Simple & easy to use tools 4

Embed into organizational 5

formal mechanism
© 2019 Petroliam Nasional Berhad (PETRONAS)
Most effective culture to build is Culture of
Accountability®

A workplace culture where

people take accountability to
think and act in the manner
necessary to achieve results
Source : Partners in Leadership (PIL)

© 2019 Petroliam Nasional Berhad (PETRONAS)

Idea behind the process to manage culture

C1 C2

Source : Partners in Leadership (PIL)

The Results we achieve are the product of the Actions we take

The Actions we take are influenced by the Beliefs we hold

The Beliefs we hold are created by the Experiences we have

© 2019 Petroliam Nasional Berhad (PETRONAS)
PETRONAS CULTURAL BELIEFS -
alignment through common language

RESULTS OWN IT! FOCUSED EXECUTION

MATTER
I stretch my limits I own the results and I plan, commit, and
to deliver superior don’t blame others deliver with discipline
results

NURTURE TELL ME SHARED SUCCESS

TRUST
I always keep my I seek, give and act I collaborate for the
promise and build positively on feedback greater good of
mutual trust PETRONAS
© 2019 Petroliam Nasional Berhad (PETRONAS)
Simple culture management tools to
create experience on daily basis
Focused Feedback® Focused Storytelling™

Focused Recognition™ Focused Accountability™

Staff at every level are enrolled into
culture program

Upskill Leaders
as change
facilitators
• Alignment on Case for
Change
• Master tools
Role Model • Coach what to role
model

Train Staff
at Large • Explain to staff case
for change
• Teach tools &
application
• Set expectation for
action

© 2019 Petroliam Nasional Berhad (PETRONAS)

LEADERS AROUND THE GLOBE replicating
similar experience

Upstream
Downstrea
Italy m
Canada Turkmenistan

China

Argentina

Iraq
Indonesi
a
South
Africa
Chad

South Sudan
Open
Duba
Multiple touch points to sustain application
at workplace

Integrate
Leaders Feedback
into ‘Day to
Coach Session
Day Activities’

• Periodic one-to-one • Cross Business / • Build culture agenda in

coaching; personal Functional / meetings
journey to role Individual
model • Yearly performance
• Periodic team discussion
• Deliberate in alignment &
creating new accountability for • Embed into audit,
experiences that results assurance, HR & HSE
links to Result processes to reinforce
• ‘What else can I do’ cultural

+525 Change Agents to nudge on daily basis

© 2019 Petroliam Nasional Berhad (PETRONAS)

 Effectiveness through systems &
processes

Internal
Improving speed and accuracy through process
simplification; directly impacting results

Sustain competitiveness by
1 striking down costs and
simplifying the way we do
business

2
Improve efficiencies through
process simplification

Customer Lens

© 2019 Petroliam Nasional Berhad (PETRONAS)

Established platform to manage process
simplification efforts
SKILLS & STRUCTURE SYSTEMS
COMPETENCIES

Governance CI Academy
Office Portal
CI Academy
training
program LSS Business
Practi- PMOs &
tioners focal PLSS
Certification
Governing
recognized
LSS Coach Guidelines
world-wide
(MBB, BB)

Build sufficient Build a strong and Ensure sustainable

in-house established control mechanism
capability to drive network to create of successful
continuous pervasive impact implementation
improvement

© 2019 Petroliam Nasional Berhad (PETRONAS)

4 levers to ensure program sustainability
Process
Simplification &
1 LEAN Six Sigma 2 LEAN Six Sigma Learning
Program Strategy & Certification

1
 Develop & Roll out LSS
Training Modules

 Business LEAN  Certification requirement

aspiration and target 2 & Assessment Modules by

 Business Head to
4. Levels
Coaching,
endorse roadmap Review &
Feedback
3
LEAN Six Sigma
3 Project
PETRONAS LSS
Implementations 4 Trainers,
• Project identification & selection Coaches & Assessors
18

• Project progress and value tracking

• Monitor overall maturity level

© 2019 Petroliam Nasional Berhad (PETRONAS)

Competency growth path recognized worldwide
and accredited by American Council for Six Sigma
Levels of Competencies Project Requirements
Lead and Complete 3 DMAIC project
a) Improvement of 60% efficiency or more
DFSS Master Black b) Deliver 2 LSS Black Belt Define Stage
Belt Training
c) Coach 5 BB projects

Lead and Complete 3 DMAIC project

LEAN Six a) Improvement of 40% efficiency or more
Sigma Black Belt b) Deliver 2 LSS Black Belt Define Stage
Training
c) Coach 5 GB projects

LEAN Six Lead and Complete 2 DMAIC project

Sigma Green Belt with 20% efficiency or more
improvement

KAIZEN & PS Yellow Belt Not Applicable

OPI

Continuous
Improvement
Awareness Not Applicable
CoA, 5QP, 5GP,
OPI, Lean, Six
Sigma, LSS
© 2019 Petroliam Nasional Berhad (PETRONAS)
Results to-date

Value Creation 2017 – Business Process Jan –

Jun 2019 Jun 2019
(Realized) Efficiency

More than
RM40 Billion
* VC for LSS projects will be realized after 1 year depend on complexity
thus accumulation from 2017

Number of Jan – Organization 2016 –

Projects Jun 2019
Competency Jun 2019

OPU: 399 Certified In Training

GB : 278 GB: 748
469 Cross Business: 56
BB: 57 BB: 110
Organization: 14 MBB: 6 MBB: 0
* Average for 6 months

© 2019 Petroliam Nasional Berhad (PETRONAS)

 Keeping the change momentum high…

3 Community of Practice sessions were

conducted to share best practices on
Change

Strengthening meaning & purpose

Continuous sensing of pride and

purpose by being part of PETRONAS at
iConnect sessions #LiveLean campaign featuring
videos and infographics for staff
to inculcate LSS traits in their
Culture acceleration through Booster Shots daily life 24 Culture articles
posted in Be The Change
# sessions
25 to sustain the momentum
20
15
Integration of culture assessment
10
5 into business process i.e. due
0 diligence in M&A process
PET ICT Corporate Legal Finance PD&T 12 Brown Bag sessions in
Strategy
2018, with average 80 to Promoting staff to
Culture Booster Shots 100 participants in each continue using the
sessions conducted for session. Speakers included Culture Tools for
culture acceleration amongst external guests from Grab creating a C2
staffs Malaysia, MIGHT environment
© 2019 Petroliam Nasional Berhad (PETRONAS)
Purposeful assessments to measure
movement and impact of change

1 PETRONAS Organizational 2 Targeted topics via

Culture Survey (POCS) Focused Group Discussion

Localized Survey /
3 Interview Session 4 Barometer

© 2019 Petroliam Nasional Berhad (PETRONAS)

The journey is not a straight road; with
hurdles along the way

1 Sustaining the same pace and

momentum & commitment to
act throughout the group

Connecting the dots of

2
many change efforts with
clarity of messages

Building organizational
3
change capability

Managing collaboration and

4 coordination of work vis-à-vis
integrated operating model

© 2019 Petroliam Nasional Berhad (PETRONAS)

 Thank You

Internal