A GUIDE FOR CERTIFIED LEADERS TO FACILITATE PCB WORKSHOP FOR DOWNSTREAM EXECUTIVES IN ACCELERATING THE CHANGE (HALF DAY) CONFIDENTIAL AND PROPRIETARY INFORMATION ©2016 Partners In Leadership (Unpublished) All Rights Reserved Open PETRONAS Culture Workshop: Downstream Executives - 2016 Table of Contents 2 Objectives of the session 3 Guided Roles for Facilitators/Scribes 4 Recommended Workshop Agenda 9 Block 1: Safety Briefing & PCB DOA 12 Block 2: Steering PETRONAS Forward 13 Block 3: How am I now living the PETRONAS Cultural Beliefs? 17 Block 4: How am I using the Culture Management Tools now? 21 Block 5: How have others done it? 23 Block 6: Closing Remarks 23 Block 7: Feedback Session Objectives of the Session PETRONAS Culture Workshop: Downstream Executives - 2016 Objectives Expected Outcomes 1. To ensure Executives are clear on how they can contribute to CACTUS o Appreciate the magnitude of challenges that PETRONAS is facing and understand how they could play their role 2. To reinforce the understanding of PCB and ensure consistent demonstration of PCB behaviors o Consciously and consistently integrate Cultural Management Tools into dayto-day work 3. To reinforce the usage of Culture Management Tools o Buy-in to the benefits of living the PETRONAS Cultural Beliefs to achieve results Guided Roles for Facilitators/Scribes PETRONAS Culture Workshop: Downstream Executives - 2016 Facilitators 1. To be a role model to the participants by being approachable and open to new thinking and ideas 2. To inspire participants by candidly sharing individual experiences, both good and otherwise so that participants can learn and reflect on their own experiences 3. 4. To use appropriate languages that resonate well with the participants i.e. English or Bahasa Malaysia or mix languages Emphasize that the session is to accelerate the Culture change in achieving the Key Results 5. Always ask the participants on “What else can I do” within their individual circle of influence 6. Observe the C2 Behaviours and give out Focused Recognition to the identified participants as and when necessary Scribes 1. To ensure projector, A4 papers, markers, print copy of PETRONAS Cultural Beliefs and Focused Recognition Cards are available in the room 2. To ensure the safety briefing & HSE moment video are available 3. If there is PCB Doa Recital, to identify the person prior to the session 4. To ensure all the presentation pack of the session are available 5. Manage and alert facilitator on time – time keeper 6. Capture participants’ responses during open discussion 7. Capture the commitments from the participants. 8. Consolidate item No: 3 and share with the Change Agents 9. Take photo of the session and share with the Change Agent 10. Assist the Facilitator throughout the session Recommended Workshop Agenda PETRONAS Culture Workshop: Downstream Executives - 2016 Time Agenda 8:30 am Safety Briefing & PCB DOA 8.35 am Steering PETRONAS Forward 9.35 am How am I now living the PETRONAS Cultural Beliefs 10:50 am Morning Break 11.10 am How am I using the Culture Management Tools now? 12.20 pm How have others done it? 12.45 pm Closing remarks 12.55 pm Feedback session Instructions 1. This script is extracted from the Culture Track Training Facilitator Guide and Cactus Presentation for Executives – Speaker’s Script PETRONAS Culture Workshop: Downstream Executives - 2016 2. Where appropriate, use examples based on your relevant experience that participants can relate to. Visual Cues in This Guide ASK the participants these questions. DISPLAY the slide indicated. SHOW the video indicated. NOTE TO FACILITATOR outlines information to pay close attention to. ACTION refers to an individual or group exercise. In addition to the visual cues, all text that is the colour BLUE and indented indicates actual comments and questions the facilitator speaks. Block 1: Safety Briefing & PCB DOA (5 Minutes) Allocated Time 3 minutes Instruction/Script You may use your respective Safety Video and seek for some volunteers to share a safety moment. PETRONAS Culture Workshop: Downstream Executives - 2016 2 minutes Recommended PCB Doa Script Block 2: Steering PETRONAS Forward (I hour 10 minutes) Allocated Time Slides 3 minutes Instruction/Script By now, everyone knows this challenging environment that we are in. The oil price plunged severely in late 2014 and stayed low, leading to a significant drop in profits. Our Profit After Tax in 2015 dropped by more than half compared to 2014. This was the lowest profit margin we have seen in many years. The crisis is magnified by our unprecedentedly high capital expenditure plans. Key Message: The low oil price environment comes at a time of high capex requirements, putting us in dire straits. Even after capex optimization, we will still require RM300 billion for the next 5 years to fund projects like PRPC, Pacific Northwest LNG, Floating LNG and others. These projects are necessary to keep us relevant given the competition and changing market dynamics. Today’s oil price has improved slightly from what it was a few months ago but the year to date average (mid July 2016) is $40. Our Profit after tax for Q1 2016 is 60% lower than what it was in Q1 2015. While the oil price has shown some improvement, it is still far from previous levels. Based on consultants’ projections, oil price is forecasted to remain below US$100/bbl until 2020. This is the situation we are faced with. Imagine having to cope with only half your salary. And in the meantime, you are buying a house, expecting a child, and your parents are moving in with you. And there is little sign that your full salary will return anytime soon. Are you going to continue your life as usual or would you make serious changes to it? PETRONAS Culture Workshop: Downstream Executives - 2016 2 minutes Key Message: Project Cactus heightens focus on six key priority areas. 4 minutes Key Message: Cactus Cash came up with 10Things10B, what can you do to improve cash? To respond to these challenges, Project Cactus was activated in April 2015. Six priority areas were selected to focus our efforts: The first three - Cash, Cost & Projects - is to build our resilience and remain competitive and profitable in these challenging times. The next three - Technology, Talent and Culture - is to position PETRONAS to remain sustainable over the longer term. Each of the six workstreams convened labs to identify underlying impediments, and worked out solutions that would result in tangible and significant improvements. Project Cactus also uncovered inefficiencies in our organisation structure. The new structure we are in today removes issues of duplication of roles and reduces bureaucracy, putting us on more agile footing to respond to the industry challenges. The first of the six priority areas is Cash. In the current low oil price environment, our profits have greatly reduced and our cash position has become tight. We need cash to fund our daily operations. The ‘Cash’ workgroup looked into how we could improve our cash generation and management activities. By putting their heads together and being open and honest, the Cash workgroup from various functions identified 10 things which could generate 10 billion extra for PETRONAS by 2018. These 10Things10B ideas were raised by the Line, who saw the opportunity to use this period of crisis to return their focus on the basic things which had slipped through the gaps. A large number of the 10Things10B were about being “Brilliant at Basics”, and about just “Going the Extra Mile” to ensure money is not left on the table. Through the 10Things10B initiative, many startling facts were uncovered. *Did you know that our payment collection is on average 10 days later than our peers? By just collecting our trade account receivables one day earlier, we would have RM 900 million more on the table. Another disquieting finding was that we have surplus inventories worth RM1.3 billion lying in our warehouses, which we purchased “just in case” we needed them. What is worse is that some of these items are not properly stored and maintained. *(Speakers to refer to appendix on 10T10B at the end of this page and pick examples that are most relatable by their respective audience) As at May 2016, we have realized RM 1.75B These findings should jolt us into re-examining our activities. Are we doing the best that we can in managing our basic functions? These 10T10B ideas are just the tip of the iceberg and there are more to be found. Can we go the extra mile and come up with ideas to generate more cash from our current PETRONAS Culture Workshop: Downstream Executives - 2016 3 minutes Key Message: Cactus Cost focuses on measures to increase productivity through fit-forpurpose designs and standards e.g PTS and Value Engineering. activities? Let’s work together to develop our own cash ideas and implement them. While we improve our cash generation, it goes without saying that equal attention must be paid to cost. The organisation must look at improving cost efficiency, not simply cost reduction. We need to ensure that the money we spend gains us maximum value. The two concepts emphasised by the “Cost” workgroup are “fit-for-purpose” and “process simplification”. Fit-for-Purpose In the past, the oil and gas industry worked according to specifications which reflected the operating environment then. Today, with new technology and higher capabilities, many of the specifications are unnecessary and wasteful. However, we still tend to over-engineer and over-design to create unnecessary buffers. In line with this concept, our PETRONAS Technical Standards or PTS have been tiered and revised to ensure fitfor-purpose standards depending on asset life and nature of business. PTS is the standard used in design and engineering practices across the group which prescribes the minimum requirements to build, operate and maintain our facilities. This solution is expected to reduce cost by RM 2 Billion over the next 5 years as we won’t be spending on the unnecessary just to meet the gold-plated specifications. A similar concept for the design of capital projects called Value Engineering is now made mandatory. Value engineering is defined as an organized, systematic effort directed at analyzing functions of goods or services to decide how to achieve the intended function in the most costeffective manner. VE focuses on eliminating functions that do not add value. VE was successfully adopted in some of our projects before, with great savings achieved. Now under Cactus’ recommendation, VE has been made mandatory based on project complexities and is now institutionalized via PPMS. As you can see from the chart, VE has to be done at earlier FEL (front end loading) stages for higher cost savings. Additional info: For 2014 alone, a total of RM324.2 million of cost savings have been realized through the adoption of VE. Call to action: Again, can we look for opportunities to optimise cost wherever we can? Are we following outdated specifications when there are less costly options? We need to realise that overdesigning is a cost- it can cost us more money, it can cost us more time. PETRONAS Culture Workshop: Downstream Executives - 2016 3 minutes Key Message: Cactus Cost is simplifying procurement, HR and budgeting processes, what can you do to improve cost efficiency? Part of the systemic issues uncovered by Project Cactus is that we are a hierarchical and bureaucratic organisation. Things take a lot of time to get done in this company. And this translates into added manpower cost. Analysis has shown that our revenue-per-employee is only one-third of industry leader ExxonMobil. This indirectly means one ExxonMobil employee generates three times as much revenue as one PETRONAS employee! The ‘Cost’ workgroup put three Groupwide functions to the test, measuring the time it took for all the processes and identifying the amount of non-value adding activities. The three selected functions were procurement, HR and budgeting. The findings indicated that the process cycle efficiency of our P2P process is only 20%. This means that only 20% of the time it took to complete the task was actually value-adding. The others were time wasted in various review committees, transferring of documents, producing to unnecessarily high standards of perfection, etc. As a result of the lab findings, the procurement, HR and plans & budgeting processes are undergoing a substantial overhaul to reduce unnecessary manhours while enhancing the quality of the deliverables. A methodology called the 5 Guiding Principles (5GPs) which include concepts of LEAN and Six Sigma are being propagated so that process owners have a point of reference when embarking on process simplification. Are our processes too complex without adding value? We have the opportunity to change this. Additional info: Progress of the three key processes: Procure-to-pay – tendering processes simplified and rolled-out Groupwide and to contractors Plans & Budget – the new top-down P&B process has been rolled-out for groupwide implementation for FY2016 Hire-to-retire – 5 processes to be simplified (Workforce planning, Employee Performance Management, Organisational Design Structure, Job Management, Talent Sourcing). To date, the simplified EPM has been rolled out to all staff while the remaining processes will be rolled out in stages. 5 Guiding Principles consist of 5 principles of change towards greater effectiveness and efficiency: 1. Standardization 2. Lean Work Process 3. Empowerment 4. Self-Assurance 5. Continuous Improvement PETRONAS Culture Workshop: Downstream Executives - 2016 3 minutes Key Message: Cactus Projects has enhanced the PETRONAS project management system, tools, manning and accountabilities, what can you do to improve your delivery of results? 3 minutes Key Message: Cactus Technology has strengthened PETRONAS commitment to delivering technology as a differentiator, what can you do to support? Wastages are quantified in 8 Categories (Mnemonic: DOWNTIME) 1. Defects – Rework efforts 2. Over production- Producing more than needed 3. Waiting – Idle time not doing anything productive 4. Non utilized talent - poor utilization of existing talents 5. Transportation – Unnecessary movements of parts/information between processes 6. Inventory – Excess material/products 7. Motion - Unnecessary motion by staff 8. Extra processing – Producing beyond standard required by customer In industry benchmarking studies, our performance in projects delivery for some projects is in the lower quartile. We are frequently over schedule and over budget. In these trying times, PETRONAS simply does not have extra capacity to buffer these cost overruns or delays. To give a sense of the magnitude of the problem, delays in the RAPID project could see us lose up to RM10 million a day. That is money down the drain. ‘Projects’ workgroup conducted a thorough analysis on identifying the root causes, and developed solutions to conclusively address those gaps: Consistent FEL Practice: Front-End Loading practices is being made more consistent through additional gate-keeping and more prescriptive guidelines in the enhanced PETRONAS Project Management System (PPMS) Effective Project Control and Execution: Issues are to be escalated in a timely manner through more structured project monitoring with new tools and more follow-through via changes to project LOA and accountabilities. Efficient Project Delivery Organisation: End-to end project owner until operation, under PD&T. Priority is also given to ensure project teams are adequately and properly manned by those with the right expertise. PETRONAS has had a vision to pursue technology as a differentiator from 2006. But we have had little success due to our approach. In 2006, PETRONAS identified 25 technology focus areas but only 6 were pursued with varying degree of success. According to the lab, the reasons we have not had remarkable success in technology were due to, among others: Inadequate oversight from ELT. Resources allocated were insufficient. Strategy was revised too often. Based on these experiences, we seem to have formed the belief that we are not serious about driving technology, resulting in half-hearted execution. The solution is to commit fully to the aspiration of developing technology as a differentiator by: PETRONAS Culture Workshop: Downstream Executives - 2016 Defining and agreeing on an immediate, medium, and long-term Technology Agenda as the unwavering strategy. Increasing ELT oversight through a Special Technology ELT sitting every 6 months. Developing an enabling ecosystem: Technology functions including R&D are now centrally-led under PD&T A PETRONAS Technology Management System and a new funding mechanism have been developed to address unique challenges in delivering technology projects. These solutions from the Cactus lab are meant to drive technology as a differentiator for PETRONAS. By doing this, we also revalidate the belief that PETRONAS does value technology. As such, while Corporate drives the high-level Technology Agenda, we should also ask ourselves, how can we leverage on technology to deliver superior results in our work? 4 minutes Key Message: Cactus Talent has clarified the pathway to create strong leaders for the organisation, we can all develop ourselves to be better leaders for PETRONAS Additional info: The 6 technology areas that were successfully pursued from the 2006 Technology Agenda Upstream: PFLNG, Geo-imaging, EOR, CO2 Management Downstream: OEM Lubricant, mercury removal. When we look at talent, analysis indicates that we have gaps in both quantity and quality of leaders. The current way we manage and develop our talents will not meet business requirements, both current needs as well as future needs. Thus we need to take a step back and reassess how we manage talent. The ‘Talent’ workgroup focused on the question of how to address gaps in leadership succession, both in terms of quantity and quality. The solution was to design an end-to-end leadership development framework to be explicitly communicated and applied throughout the organization. A new 3P leadership model will be the criteria for appraisal and identification of potential leaders – this model makes it clear that ratings and progression will take into account not just performance, but passion, and emphasis on people development. With the clear criteria for assessment, identification of top talents will be simpler and quicker. Talents will also have specific development plans which will anchor 3P to better-prepare them for leadership roles. The new 3P leadership model will be unveiled soon. With this clarity, we will be better-able to develop ourselves and each other to become better leaders for PETRONAS. PETRONAS Culture Workshop: Downstream Executives - 2016 2 minutes The underlying issues in the five workstreams reflected our working culture. Key Message: Our culture is the root cause of the issues we face, we must change the way we work to move forward. Our people seem to be working in silos, sometimes competing, rather than collaborating. We lack accountability to solve issues. We lack discipline and rigour to deliver consistent world-class results. We need to correct the actions and behavior of our staff which have been the root cause of the issues. Without changing our culture, none of the five Cactus work stream solutions would achieve its intended goals. We need to change the way we work so that the solutions Cactus have proposed will work. We need to embrace “working the Cactus way”, by being proactive in developing solutions and value-adding ideas, so that we can rise to the next level. To align the Group, the corporate agenda serves as our compass. Mission and Shared Values now features prominently in the Corporate Agenda. 2 minutes Key Message: The Corporate Agenda serves as our compass 2 minutes Key Message: R2 provides us a more tangible and immediate measure to strive and contribute towards. 4 minutes What is the next level that we want to achieve? Our Vision has always been to become a leading oil and gas multinational of choice. Our Corporate Agenda provides the business strategies for achieving that Vision. However, we needed a tangible and more immediate milestone to measure our progress, which is the R2. The R2, to be attained by 2020, is: to achieve a 20% improvement in PBT margin from 2015, which is 18%; as well as Successful delivery of growth strategies. These goals are realistic, but challenging. We can achieve them, but it requires every one of us to step up, and play our role. WILL PLAY AUTOMATICALLY UPON CLICK FROM THE PREVIOUS SLIDE Key points from video for speaker’s reference only, not to be said 1) The first part of R2 is 20% improvement on PBT margin PBT margin as a financial indicator is a common denominator across the organization that can be applied down the line. Key Message: PETRONAS Culture Workshop: Downstream Executives - 2016 R2 emphasises on cost efficiency and successful delivery of growth strategies 3 minutes Choosing PBT margin as a proxy to efficiency gives us a measurement of control in trying to achieve this goal within the external environment that is working against us. To achieve this, emphasis must be given to improve efficiency in all of the operations and processes in executing our day-to-day work. We must strive to reduce cost and increase value. 2) The second part of R2 is the successful delivery of our growth strategies. This is necessary to ensure our long term sustainability. We are in a high growth phase in the years leading to 2020. Despite all the cuts that we are making, our capex budget is still a budget for growth. Thus we need to focus on delivering projects on time, on budget and on scope. We must also maximize return on capital allocated and continuously rebalance our portfolio to ensure resilience over the long term. The way we are today, our current culture, will not get us to R2 The PETRONAS Cultural Beliefs was thus introduced to drive a new work culture and create better day-to-day experiences Today you will be deepening your understanding of the PETRONAS Cultural Beliefs and how to demonstrate them so that we can change our culture to a more enabling one. PCB is also a foundational element in the 3P leadership model and will be assessed in the EPM starting this year. Key Message: To achieve R2, we need a new culture i.e C2 What is Downstream game plan in achieving PETRONAS R2? 2 minutes Downstream EVP to share talking points 2 minutes Downstream EVP to share talking points PETRONAS Culture Workshop: Downstream Executives - 2016 3 minutes Downstream EVP to share talking points 2 minutes Downstream EVP to share talking points 3 minutes Downstream EVP to share talking points 5 minutes To share respective business key results for 2016. (OPU key results contributing to Downstream game plan and eventually PETRONAS R2) 15 minutes Key Message: Cactus has laid the foundation and given you examples of what Individually, how would you translate these into your own contribution? You can pledge to deliver more. This can be through looking at how you can: generate more cash optimise cost simplify processes deliver with focused execution, and in more innovative ways develop yourself and others into strong leaders Some key questions: PETRONAS Culture Workshop: Downstream Executives - 2016 you can do to contribute to R2. Now it’s your turn as an individual to contribute. - How do you play your role? Share one specific initiatives/areas that currently been undertaken? What examples of (any 6 key areas) that you have seen? Get some participants to share their initiatives or any ideas around any of the 6 key areas Block 3: How am I now Living the PCB (I hour and 15 minutes) Allocated Time 5 minutes Slides Slide: How am I now Living the PCB? Instruction/Script Let get ourselves into groups of 5-6 and please make sure that you have the workbook with you. Can someone share with me why we need the six PCBs? Get few participants to give the input As an organization, we have set a few Key Results that we want to achieve in order for us to thrive and continue to be relevant in the current challenging environment. These Key Results are what we call…….? (R2). Good! We have realized in order to achieve R2, we cannot afford to continue to think and act the way we used to. It is no longer Business As Usual. In order to achieve R2, we need a shift - a shift in the way we think and in the way we act or behave. Essentially a shift in culture, a shift to C2. So what is C2? It’s the culture we need to create. With these shifts in mind, we have collectively developed the 6 PETRONAS Cultural Beliefs. These Cultural Beliefs describe C2 and are how we need to think and act in order to achieve our R2. 10 minutes 15 minutes Slide: PETRONAS Cultural Beliefs Look at the PCB and what do you understand about e.g. ‘Focused Execution? What are the key words in this cultural belief? PETRONAS Culture Workshop: Downstream Executives - 2016 Get responses from participants and pay attention to their feedbacks. Most of the answers are usually repeating or explaining the descriptors or describing how the Focused Executions looks like according to their understanding. Note: Go through each one of the cultural beliefs – solicit inputs how they understand the cultural belief. Which word stands out to them? If I ask you to tell me the descriptor for each of the PCB without looking on this slide or without any references, do you remember? It is crucial to remember the descriptor for each of the beliefs as how we behave and act are guided by the descriptors. The consistency and coherence of our actions are in the descriptors. Now get into your group and share with the others in your group what your experience so far on these cultural beliefs. Consider some of these questions in your discussion. You have 5 minutes for these discussions. (Note: Share a few of the questions listed below). Potential Questions 1. What is your experience so far on these cultural beliefs? 2. What have you observed on the people whom you work with? on our leaders in PETRONAS? with regard to these cultural beliefs? 3. Think about your own team: which cultural belief you would consider a strength in your team? which one you would think requiring considerable improvement? Note: After 5 minutes, get everyone’s attention and initiate a discussion with the whole group. Get a few participants to share some of the points they have discussed in the small group. Get responses from participants 15 minutes Slide: Workbook page Now, look at your workbook on this page. I want you to spend the next 5 minutes to do a self-reflection of your own behaviors in the past 3 months and answer these questions (Note: Read out the questions). Record your reflection in the workbook. PETRONAS Culture Workshop: Downstream Executives - 2016 30 minutes Slide: Time to share Notes: After 5 minutes, get everyone’s attention. Ask everyone to share his/her reflection with his/her group. Give the groups 15 minutes for the sharing. After 15 minutes, invite a few participants to share their thoughts and ask these questions: What have you learned from this session - about the PETRONAS cultural beliefs? about yourself? Get responses from participants PETRONAS Culture Workshop: Downstream Executives - 2016 Block 4: How am I using the Culture Management Tools now (I hour and 15 minutes) Allocated Time 0 minutes Slides Instruction/Script Slide: How am I using the Culture Management Tools now Can someone share with me how many Culture Management Tools are there? Get a few participants to give inputs Why do we need these tools? Get a few participants to respond 3 minutes There are four Culture Management Tools and we will go through each of the tools again. 2 minutes Slide: Results Pyramid We are all familiar with the Results Pyramid? Okay, now…we have talked about our PETRONAS R2 and Key Results So what do we do to achieve our Results? We take actions. So do we get our Results if we just focus on our Actions? PETRONAS Culture Workshop: Downstream Executives - 2016 Yes! Research have shown we get Results about 70% of the time if we focus just on Actions. So what do we do when we don’t get the results? We change our Actions – we change our processes, systems, organisational structure etc. And when we still don’t get the results? What do we do? We change our goals and targets. How often have we heard of changing goal posts? Why do we just focus on just the Top of the Pyramid? (Because it is easy and visible). What happen when we just keep working on the top half of the Results Pyramid, the Results and the Actions, and ignoring the bottom part, the Beliefs and the Experiences? (The Results we are getting will not be sustainable) Why is it not sustainable? Get a few participants to respond Thank you for your responses. When we focus just on the actions to get results, and we ignore the other 2 components at the bottom half of the Results Pyramid, we are falling into the Leadership Trap! So in order for us to change the way people behave and think to drive the actions that will produce Results, we need to create Experiences to reinforce the Beliefs that drive those actions. Culture Management Tools are the tools that help us in creating new experiences and the right experiences that help accelerate the Culture Change for us to achieve our Key Results. 5 minutes Slide: Collage First, let’s try something. I am going to give you four seconds to identify as many objects as you can on the slide. Four seconds. Ready? What did you see? After someone calls out an item, ask the participants How many of you saw the (repeat the item)? How many of you did not see the (repeat the item)? Repeat this five or six times before asking the next question PETRONAS Culture Workshop: Downstream Executives - 2016 Why is it? When we all had the same amount of time, some of us saw some things while others saw different things? (Interest, past experience, where you are seated, etc) Let me ask you, does time have an impact on what you see? If you had more time, would you see more? Is that true at work? Does where you’re sitting in the room have an impact on what you see? Let me ask you, how many of you have been promoted and suddenly saw things very differently? Where you are in the organization, in which function…will it impact what you see? Would you all agree that we are predisposed to see certain things and block out other things based upon our past experiences? So what is the whole point of the exercise we did just now? NOTE: Allow time for participants to respond If we want to see the whole picture, what must we do? (Be open to the perspective of others and listen to them) 5 minutes Slide: Feedback Filters How we respond to people when they give us feedback has a big impact on whether they will give us feedback again. What do we sometimes do when we receive feedback, particularly feedback that we do not like or feedback that we do not agree? Note: Allow some time for participants to respond (We become defensive, we try to justify, we give reasons why we behave that way or why the feedback is not accurate…) So, if you do that every time you get a feedback, what will happen the next time you ask for feedback from your colleague? What will your colleague say or do? (Yes, most likely he or she will not offer any more feedback or he will simply say everything is fine with you) It is not important if the feedback is accurate or not, if there’s any basis or not, whether it is right or wrong. What is important is whether the beliefs works for you or not. PETRONAS Culture Workshop: Downstream Executives - 2016 Whenever you receive a feedback, simply ask the question “Is that a belief I want them to have?” Will that belief drive the results that we are looking for? If the belief doesn’t work for you, where do we go on The Results Pyramid? – EXPERIENCES Create new experiences in order to create a new belief. 5 minutes Slide: Focused Feedback This is the Focused Feedback structure that we use. Focused Feedback creates movement in the right direction. To accelerate culture change, we need to exchange Focused Feedback around the Cultural Beliefs and the Key Results “What feedback do you have for me?” suggests your openness to receive feedback. It also implies that the other person has feedback for you, which is often the case. The appropriate response for a feedback is “Thanks for the feedback!” It communicates your appreciation for the feedback. The statement is neutral and does not indicate you agree or disagree. Using this statement creates the experience for others that you are open for feedback. Focused Feedback consist of Appreciative and Constructive feedback. Appreciative Feedback – tell them what we feel they are doing well and reinforce progress. This will reinforce and encourage positive behavior /actions. Sharing best practices. Constructive Feedback – feedback on how you feel they can improve and be more effective. It is constructive when it is meant to help them improve, as opposed to just pointing out the problem. 1 minutes Slide: Focused Storytelling Let’s talk about the second tool, Focused Storytelling. Let me ask you, do people tell stories about the company? Do people tell stories about people at the company? Do the stories have an impact on how people think and feel about the company? Absolutely! PETRONAS Culture Workshop: Downstream Executives - 2016 5 minutes Slide: Focused Storytelling **Why we need focused storytelling? We want to evidences of c2 happening… to know we are in the C2 or not. Story telling. Demonstrating how the PCB looks like. Aiming for and start to take place. Stories will either move us in the direction we want to go, or they will anchor us to the past. If we more frequently and purposefully tell stories about the Cultural Beliefs, we will more quickly adopt the attitudes and behaviors necessary to create the C2 Culture we need. Focused Storytelling is powerful and helps the organization start telling the right stories to accelerate our shift to C2. Here is the language we want to use when telling these stories. Why do you think this language is important? We reinforce the specific Cultural Belief and tell people what it looks like to demonstrate it. 5 minutes Slide: Focused Recognition **Why we need focused recognition? It is important to recognize the demonstration of PCB. We would be able to see it, help them achieve the results. Recognizing the behavior and not the results that they have achieved. Each of us will have the tendency to fall back into C1 ways of thinking and acting. That’s why we need to recognize and reinforce our C2 efforts. We need to stay focused on the steps forward! We need to look for the steps forward that we see from everyone on this team and throughout the organization. Focused Recognition is a recognition tool that allows everyone to participate in recognizing one another as we demonstrate C2. In essence, Focused Recognition is about watering what we want to see grow. Which culture do we want to see grow in PETRONAS, C1 or C2? C2…Exactly! 5 minutes Slide: Focused Accountability **Why we need focused accountability? - Opportunity to use this. - Conducting a brainstorming workshop/team project Reinforce where integration can be done individually This is a team-based tool. When you are using this tool, think about the team that you regularly work with on a day to day basis. It can be your department team, or maybe your project team. Teams focus their accountability on making the cultural shift that are most needed on their team. That’s what we mean by Focused PETRONAS Culture Workshop: Downstream Executives - 2016 Accountability. It’s a team owning the shift they most need to make happen right now You as a team will ask these three questions: 1. Which Cultural Belief do we most need to address as a team? 2. What are the current behaviors of the team that need to stop, and what are the new behaviors that need to start happening? 3. What are the Type 1 Experiences we need to create to help make that shift? And remember, Type 1 experiences are experiences that clearly reinforce the PETRONAS Cultural Beliefs and require little or no interpretation by the person who experiences it. 2 minutes Slide: Culture Management Tools Ask participants: 1. Which of the tools that you use most? Why? 2. Which of the tools that you hardly use at all? Why? Note: Get some responses. 10 minutes Slide: Workbook page Each and every one of us has our own experiences, and perhaps some challenges in using the tools. Now I would like you to spend the next 5 minutes to reflect on these questions about the culture management tools (Note: Read out the 3 questions on the slide). Go to your workbook and record your thoughts on the relevant page on the workbook. 22 minutes Slide: Time to share Notes: After 5 minutes, get everyone’s attention. Get the participants into groups of 5-6. Invite everyone to share his/her reflection with his/her group. Give the groups 15 minutes for the sharing. After 15 minutes, invite a few participants to share their thoughts and ask these questions: What have you learned from this session - about the Culture Management Tools? about yourself? Get responses from participants PETRONAS Culture Workshop: Downstream Executives - 2016 3 minutes Block 5: How have others done it? (10 Minutes) Allocated Time Slides Instruction/Script 10 minutes Slide: How have others done it Introduce the person who will be sharing him/her experiences. Encourage participants to ask questions. PETRONAS Culture Workshop: Downstream Executives - 2016 Block 6: Closing Remarks (10 Minutes) Allocated Time Slides Instruction/Script 4 minutes Slide: Practicing Accountability Let us recap what it means to be accountable. When we are being accountable, we are behaving and thinking Above The Line, meaning that we See It, Own It, Solve It and Do It. Probably you have realized that the exercises we have done today…the things you have reflected on and the observations you have shared with one another are part of Seeing It and Owning It (letak one of the traits of accountability). Now I would like you to complete the remaining Steps to Accountability. Think about the things you have learned today, and the insights that you have got from your own reflection and the sharing. Then write down your thoughts on what you will do that will play ur role here in accelerating …. help create movement to C2 within your team by demonstrating the PETRONAS Cultural Beliefs as per the descriptors and by using the culture management tools. You just need to think of one action you will do for each one of those areas. And remember to be specific about how and by when you will do that. I will give you 5 minutes to complete this exercise. 6 minutes Summarize the entire workshop. Why are we here today? The environment is very challenging today. PETRONAS have set to achieve R2 by 2020. (reiterate R2) PETRONAS Culture Workshop: Downstream Executives - 2016 What are the steps taken? Project Cactus activated to focus on 6 priority areas. We need to thrive in tough times and ensure long term sustainability. To align the group, Corporate Agenda has been refreshed To provide tangible milestone towards our Vision, R2 is established as immediate target A refined organizational structures have been put in place, providing clarity of roles and creating critical Centre of Excellence. How are we going to move forward? It is all about creating greater individual and organizational accountability to deliver PETRONAS R2 and be the leading oil & gas multinational of choice. In order to shift to a C2 Culture, we need to consciously and consistently use Cultural Management Tools in our day-today work and to commit and deliver the action plan that you have written down as a result of today’s session. Thank you for demonstrating ‘Own It’ by attending this session. I believe it is critical for us to affect the desired change by creating the right experiences in this challenging time. Let us all: Be the Change, Support the Project Cactus initiatives, Live the PETRONAS Cultural Beliefs, Live our Shared Values and; Work together as an integrated PETRONAS. Block 7 : Feedback session (5 Minutes) Slides Instruction/Script 5 minutes Get participants to fill the Feedback Questionnaire.
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