First Case – Management Consulting for MedcoEnergi

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Here is the first case :

MedcoEnergi is an integrated energy company with business activities consisting of oil and gas exploration, development and production in Indonesia and abroad, as well as LPG production, chemical, and power generation. It is the first Indonesian company operating in the oil and gas exploration and production business listed since 1994 in the Indonesia Stock Exchange, the Singapore Stock Exchange and the Luxemburg Stock Exchange. Realizing their business challenges, MedcoEnergi asked for Accenture expertise to assist in becoming a global player and leader in the energy business by implementing several improvement projects.

After undergoing an organization transformation at the corporate level, the company has been facing several challenges that hindered its effectiveness to perform as a world-class operation. Based on Accenture’s diagnostic, competency improvement at the leadership level was identified. MedcoEnergi did not have a formalized integrated company-wide leadership program to address the requirements and conditions for a company to grow from within and knowing how leaders can teach leaders.

How Accenture Helped

Accenture helped MedcoEnergi through 3 programs, this include :

a. Integrated Program Management (IPM) initiative to ensure alignment, coordination, and integration among multiple improvement initiatives. IPM acted as a governing body to align initiatives that were formed based on the key findings of the High Performance Business Framework project. It covered the coordination and facilitation of a total of 23 initiatives implementation at both the corporate and subsidiaries levels.
The goals of this programs is to implement an integrated environment that combines all aspects, so it could communicate effectively between corporate team and subsidiaries level, make the entire program act likes running one program which is gives a solid foundation for managing and controlling all the projects. Coordination within all associate is important to successfully this program, they work and give information to each other, learn the tools and techniques for effective cross functional program so they can reach the goals together.

As a result of this program, MedcoEnergi will have benefit:
– Communication and coordination between corporate and all subdiaries level can keep always on the right track.
– Improved cooperation and reduced organizational conflict through development of shared objectives.
– Enhanced making a decision.
– Efficient management of complex projects according to MedcoEnergi objectives

b. Business Process Realignment is focused on building a process and tool to enhance investment/ divestment decisions and transparency.
Realigning core business processes is a vital step in the understanding of the business process because it can lead to a significant improvement in performance, market position and customer focus and also helping management respond to internal problems and react to external threats.
These processes are used by people. Their involvement, understanding and action are critical to a successful outcome, this will help the management make a right decision which is very useful to continue improvement and minimize risk.

As a result of this program, MedcoEnergi will have benefit:

– Understanding of the effectiveness and efficiencies of key business processes
– As a tools to better reflect how the company actually did business, make a new improvement also right decision, so it can be increased market share, revenue, and reduced costs.

c. Leadership Development Program.
Successful businesses know that investing in the next generation of leaders is critical to sustaining competitive advantage and achieving corporate growth over the long term. Leadership Development focused on designing, developing and monitoring its Leadership Development Programs for Senior Management level. As a leader in a department, Senior Management level must effectively manage people and processes, they needs to be a smart leader with advance decision making, execution skills and also well equipped to take on greater cross-functional responsibilities. With their knowledge and skill they can deliver what they know to the lower level, so in the next generation MedcoEnergi will grow with high potential leaders.

During this engagement, Accenture worked with 12 Medcoenergi’s best talents and all directors from four different subsidiaries within 6 months in:
• Developing Blueprint for Leadership Development Program which includes coaching, action learning and workshops.
With developing blueprint, senior management level has benefit to enhance their knowledge of basic leadership principles and skills.

• Creating a company-wide integrated program to develop leadership capabilities.
As a leader in the energy business, all program must be integrated to establish a shared understanding of the critical success factors for performance in MedcoEnergi leadership roles.

• Designing and develop action learning project, workshop material and format based on their leadership competencies definition and requirement.
Leadership competencies cannot be acquired in a few training sessions or in a single training course, but only as the result of a long-range development process over a number of years. The acquisition of leadership competencies occurs by plan and design and the goals of this program is to learn how to make leadership process more efficient and effective.

• Implementing and monitor effectiveness of leadership development program.
Leadership development program must be monitored by another team to control learning process and avoid deviation, so they always focus on MedcoEnergi objective.

• Creating a Leadership Statement to establish a formal definition of leadership to strengthen culture and values.
Leardership statement will bring an impact for MedcoEnergi leadership culture and values in the next future, its all about giving the motivation and quality of the leadership.

As a conclusion, the implementation of those programs (Integrated Program Management, Business Process Realignment and Leadership Development Program) will help MedcoEnergi increase business performance and provide value added point for their competitive in global market.

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