Our approach
to building highly effective teams
Gordon A Headley
Chief HR Officer
November 2010
Strategic
Finding
Petroleum
HR Network
–November
–September
20102010
20th January 2009
Slide 1
Slide 1
What will be covered……..
• Tullow Oil plc –some context for the presentation?
• Finding the right people
• Creating the “team”
• Driving team performance
• Conclusions
Finding Petroleum
Strategic
HR Network
–November
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20102010
Slide 2
Tullow Oil plc –a brief context
• What does Tullow Oil do?
•How has the business developed
• Where do we operate
•How do we perform
-Our business footprint……….
Finding Petroleum
Strategic
HR Network
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Slide 3
A Tullow History - 1986
Key Events around the world
- Nuclear Disaster at
Chernobyl
- Space Shuttle Challenger
explodes in mid Air
- Argentina wins the world
cup in Mexico
Tullow Market Cap -Minimal
Tullow Employees 9
Finding Petroleum –November 2010
Key Tullow Events
-Tullow formed in Ireland
-Initial capital raised from family and friends of Aidan Heavey
-1987 Rights issue raised £2.65m
-1988 Placing (at 23p) raises £4.5m
-1989 Placing (at 16p) raised £4.5m
Slide 4
A Tullow History - 2000
Key Events around the world
- George W Bush becomes US
president
- North and South Korean
Defence ministers meet for the
first time since 1946
Tullow Market Cap £233m
Tullow Employees 99
Finding Petroleum –November 2010
Key Tullow Events
-UKCS assets acquired from BP Amoco for £201m
-Headquarters moves to the UK and Fully Listed Holding Company
-Placing and Open Offer at (57.5p) raises £60m
-First borrowing base facility
Slide 5
Tullow Oil History – Present Day
Active in 22 Countries with
85 Licences
Exploration success rate
87% in 2009
Tullow Market Cap £11 bn
Tullow Employees 1250
Approx FTSE 30
Finding Petroleum –November 2010
Slide 6
Tullow Oil share price performance over the past 5 years
Tullow share price performance vs FTSE 100 (5 year)
2,000
31 Jan: Sale
of M’Bundi
to Korea
National oil
Company for
$435m
1,800
1,600
Share Price (GBp)
1,400
1,200
18 Jun:
Significant
oil discovery
off shore
Ghana
21 March:
Positive
Waraga-l
drilling report
1,000
25 Feb: Oil
discovery in
Odum-l well
16 & 17 Sep:
Venus &
Ngassa Oil
discoveries
27 Jun:
Completion
of $1.35bn
acquisition
from
Heritage Oil
& Gas
1 Dec: Sale of
51.7% in
Hewett/Bacton
interests to Eni
16 Dec
successful drill
of Budffalo-1
well
800
600
12 Mar:
Strong final
results
400
6 May: Oil
discovery
in
Mahogany
well
15 Jul:
Jubilee field
approved
8 Dec: Successful
appraisal well drilled
on Odum field and
25% farm out of
Guyane Maritime
Permit
200
0
01-Sep-05
01-Mar-06
01-Sep-06
01-Mar-07
01-Sep-07
Tullow Oil
01-Mar-08
01-Sep-08
01-Mar-09
01-Sep-09
01-Mar-10
01-Sep-10
FTSE 100 (rebased to Tullow share price)
Source: Datastream as of 2 September 10
Finding Petroleum –November 2010
Slide 7
Finding the right people
• The
market
• Know what you are looking for !
•
Capability or “Chemistry”
• Integrating the new blood
-Performance is all about the people……….
Finding Petroleum
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Slide 8
Where in the world……..
• Shrinking workforce
• Great “Crew Change” –use of the “silver surfers”
• How many has Tullow found –why have they left the “majors”
• Some “laws of attraction”
• Mobility and choice…. Its harder to fill positions in remote locations
• With the scarcity of resource –companies must show even more value
and appreciation for the talent they have –and develop it even more.
• Localisation –the common right and a real contractual expectation
Finding Petroleum –November 2010
Slide 9
Where in the world……..some views…
• “By 2010, 20% of people in the Oil Industry will have less than 5 yrs
experience”
Hay Consulting (2008)
• “The rapid growth of NOC’s has outstripped the supply in many parts of
the world”
Maxwell Drummond /KPMG (2010)
• “Good talent is being very well retained with retention bonuses and share
schemes that seriously tie people in”
Curzon Partnership (2010)
• “The average age of a technical professional in our industry is 50. It is
expected that by 2020 about 80% of our people are not presently
working in it”
University of Houston (2007)
Finding Petroleum –November 2010
Slide 10
What are you really looking for……..
Finding Petroleum –November 2010
Slide 11
What are you looking for……..
or….Perhaps some independent “thinking”……….. Or maturity…..
Much cheaper than “rambo”
Almost extinct but very grateful..
Yours – for $2,500 / day
Finding Petroleum –November 2010
Slide 12
Chemistry or Capability ?
Both !
Initial interviews assess capability
The final selection is then based on chemistry
i.e. Who is the best fit with Tullow Values and style
Finding Petroleum –November 2010
Slide 13
Integrating the “new blood”
We call this the “sheep dip” or Induction
Finding Petroleum –November 2010
Slide 14
Creating the team
Getting the leadership in place
Why is this so important ?
Finding Petroleum
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Slide 15
Join the family……..
Finding Petroleum –November 2010
Slide 16
What is Culture?
• The way people talk around here
• What you say about your boss / company
• How people act and behave in their job
• The systems and processes in place
• Myths and Legends
Finding Petroleum –November 2010
Slide 17
Tullow Vision
Tullow aims to be the leading global independent
exploration & production company
Together, we will:
• Build on our excellent track record by being the best in
all that we do
• Continue to grow value over the long term as partner,
operator and employer of choice
• Conduct our operations with respect for the people &
environments in which we work
Finding Petroleum –November 2010
Slide 18
Integrity and Respect
Strong sense of focus on results,
driving tasks and projects through to
completion with the flexibility to
adapt to changing situations
Work with integrity and with respect
for people, and for the environments
in which we operate
So
Focus
on Results
So
Work in a collaborative manner,
empowering ourselves and others,
whilst taking responsibility for
our actions
Finding Petroleum
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Entrepreneurial
Entrepreneuri
al Initiative
Spirit and
Spirit and
Maintain our
entrepreneurial and creative
Initiative
spirit as we challenge
ourselves to develop
the business and ourselves
Slide 19
"look for opportunities"
Commitment to Tullow and
Each Other
Integrity
and
Respect
So
"work together"
Commitment
to Tullow
and Each
Other
"take responsibility"
Focus on Results
So
"develop and deliver"
Living Our Values
Sources of information and their impact
7%
32%
61%
Media
Infrastructure
Leaders
Finding Petroleum –November 2010
Source: Towers Watson
Slide 20
Communicating with your leaders
According to the “Edelman Trust Barometer” in 2010
•Employee’s credibility as ambassadors is rated above the CEO’s
•Employee focus, alignment and engagement are all driven by leaders
Communication.
Leaders are therefore most influential means of performance improvement
-when they are “authentic” and culturally aware
It makes sense therefore to communicate with them highly effectively
Finding Petroleum –November 2010
Slide 21
Communicating with our leaders within Tullow
• Coaching –Helping them communicate better –provide the
intelligence and why
• Management Conferences
• Functional Specialist Conferences (Geoscientists / Engineers /
Finance etc)
• Dinner / Lunch (for leaders and staff) with the plc Board
Fill the information gap !
Finding Petroleum –November 2010
Slide 22
” The more elaborate our means of communication,
the less we communicate."
Joseph Priestley
Finding Petroleum –November 2010
Slide 23
Driving Performance
• Why is “engagement” so vital
to achieving a high Performing Team
Finding Petroleum
Strategic
HR Network
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Slide 24
What is engagement ?
• It is a combination of commitment to the organisation
and its values, plus a willingness to help out colleagues.
It’s more than job satisfaction and is something we
choose to do. It is discretionary and cannot be ‘required’
as part of the job.
Finding Petroleum –November 2010
Slide 25
25
Why does it matter…… ?
• When we are engaged, we go above and beyond the
normal and exert extra effort and initiative to contribute
to business success.
• Engagement comes from being valued and involved,
having opportunities to be heard, feeling well-informed
about what’s happening in the organisation and believing
that your manager is committed to you and your
organisation.
Finding Petroleum
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20102010
Slide 26
26
Setting up the right environment
Finding Petroleum –November 2010
Slide 27
Sell them the dream….. Or….
Finding Petroleum –November 2010
Slide 28
A different reality…..?
Finding Petroleum –November 2010
Slide 29
F. My company: reputation
I like what I hear in the media about Tullow.
84.3
I will still be working for Tullow in three years' time.
77.2
I would recommend Tullow to a friend as a good employer.
16.9
91.1
I am proud to work for Tullow.
10%
20%
30%
40%
50%
5.9
6.22.7
94.4
0%
Finding Petroleum –November 2010
13.2 2.5
4.2
1.4
60%
70%
80%
Slide 30
90% 100%
High engagement –the key to top performance
Higher profitability
High levels
of Employee
Engagement
Better EHS performance
=
Lower costs
More Innovations
Better creativity
Low staff turnover
Better place to work
FACT !
Finding Petroleum –November 2010
Slide 31
So What Engages People
•
•
•
•
•
•
•
•
Include them
Share The Vision
Invite them to take an active part
Appreciate them (and show it!)
Listen to them
Learn from them (acting on the listening)
Be Authentic
Trust them
Finding Petroleum –November 2010
Slide 32
The Tullow “people” journey………
Attract
Retain
Employer Brand
Employee Brand
Perceived Values
Experienced Values
CSR records
Social Groups
Business Profile
Package design
Myth & Legend
Feel Valued
Reputation
Contribution
Develop
Organic Growth
Opportunities
Training
Experiences
Delivering
Build Strengths
Individual
&
Team
Unique
Environment
200 apply
-1 position
Finding Petroleum –November 2010
Sustaining
Environment
Growth
Environment
Emp. T/over
< 5%/annum
“Learning
Organisation”
Slide 33
" It is better to have one person working with you,
than three people working for you."
Dwight D. Eisenhower
Finding Petroleum –November 2010
Slide 34
Understanding and respecting local values/needs
• Applying the group frameworks to local needs
• Listen to your staff and ask them about the benefit structures
• Understanding the local culture….what works and what doesn’t
• Understanding the community
• Hot cooked meals
• Funeral costs
Finding Petroleum –November 2010
Slide 35
Status…..
Finding Petroleum
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Slide 36
Total Reward that works…..
• Consistency
• Share Options Worldwide
Salary
Bonus
Pension
Life Assurance
Personal Accident Assurance
Long Term Disability Assurance
Private Healthcare
Gym Membership
Other Benefits**
Share Options*
Finding Petroleum –November 2010
Slide 37
Rewarding Performance
• Create a culture of recognition by creating tangible links
between business and personal performance and reward
• Ensure that our packages are competitive in all the
locations where we operate
• Ensure that our senior managers are competitively
rewarded for the roles that they deliver
• Ensure that we are managing our contractor staff
consistently and appropriately
Finding Petroleum –November 2010
Slide 38
Rewarding Performance
•Most staff don’t understand what they have, so
communicate what you give and then communicate again
•Engage people at all times –in all locations
•Use staff surveys, then listen and act
•Constantly review competition and benchmark what works
for employees and the company
•Provide rewarding opportunities for growth.
It’s not just about money……
Finding Petroleum –November 2010
Slide 39
People Development –the planting analogy
Finding Petroleum –November 2010
Slide 40
Abundant growth –healthy development
Finding Petroleum –November 2010
Slide 41
Conclusions
• Employ the best “fit” and mix for your organisation
•Provide good Leadership AND value the contribution
Of all your employees
•Engagement is best achieved through
effective and honest “communication”
•Ensure robust and effective mechanisms to
drive, measure and reward performance
•Develop a strong cultural identity, with integrity,
and ensure that the “values” are real
“Walk the Talk”
Finding Petroleum
Strategic
HR Network
–November
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20102010
Slide 42
Thank you for
your kind
attention
Any Questions
???
Finding Petroleum –November 2010
Slide 43