1 / 17

Value Creation through Growth and Excellence – Implications for the Human Talent

Value Creation through Growth and Excellence – Implications for the Human Talent. Mosaed Al Ohali, EVP – Manufacturing SABIC March 2010. Agenda. An Outlook of Chemical / Petchem business Value Creation through Operational Excellent Reflection on Talent.

sevita
Download Presentation

Value Creation through Growth and Excellence – Implications for the Human Talent

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Value Creation through Growth and Excellence – Implications for the Human Talent Mosaed Al Ohali, EVP – Manufacturing SABIC March 2010

  2. Agenda An Outlook of Chemical / Petchem business Value Creation through Operational Excellent Reflection on Talent

  3. Global Petrochemicals Demand Slowing .. Note : Petrochemicals comprise Methanol, PE & PP Source: CAMI; Global Insight

  4. Petrochemical Capacity Investment 2003 - 2013 Source: Deutsche Bank, DTT Chemical Group, CMAI 1/2010

  5. Margins erosion – more difficult to make profit ... Source: Deutsche Bank, DTT Chemical Group, CMAI 1/2010

  6. R&D investment in chemicals has continued to decline R&D as percentage of revenues 1998 - 2008

  7. Industry Landscape ... • Slowing growth rates with excess capacity • Falling gross margins • Reduction in R&D budgets • High and volatile feedstock prices • Weak end-user markets with production moving east • Volatile return on investment

  8. Future Leaders are those that keep healthy margins … • Prices • Effective customer care system • Access to advantaged technologies • Low Cost • Access to advanced feedstock • Efficient global supply chain • Operational Excellence - integrated manufacturing and Supply Chain management.

  9. Value Creation through Operational Excellence .. • Chemical companies are increasing their focus on the development and use of Operational Centres of Excellence to provide: • License to Operate – HSE Performance • Exploitation of operational expertise • Standardisation of operational processes / development of best practises • Performance management and standardisation of KPIs

  10. Value Creation through Operational Excellence .. O Has Operations Excellence Safe, Responsible Reliable, Efficient P W Rohm and Haas has Global Asset Management Excellence E R

  11. Manufacturing Excellence can capture significant value ... Scope Examples • One industry major claims to achieve €500 Mn of integration benefit at one site • From single sites individually to portfolio of sites • Value of side streams, energy efficiencies, capabilities, .. Site Integration • A multi-plant petrochemical region with $10 Bln in revenues, improved performance by 18-28% of Manufacturing Conversion Costs • Optimization of product slate across production sites (e.g. grades, products, production campaigns) Asset Optimization • Typical results: 10-25% improvement in controllable costs and increase in OAE of 10-20% • Implementation of best practices and standards across all assets • Top-quartile performance Functional Excellence

  12. Work Environment is Changing …. • Standardization of work processes and structures. • Personal accountability through team work. • Emphasis on soft (beside hard) skills. • Advanced learning processes • Flatter organization, less managerial positions. Reporting span • 1990’S 5-10 per supervisor • 2000’S 10- 15 per supervisor / matrix organization • Managerial vs. professional – a trend toward equal rewards. • New engineers aspire to manage • Projects in their 20’s • People in their 30’s • Companies in their 40’s

  13. Talent Development … Development of human resources is a strategic objective. Human resource development is all encompassing system Create business value through competency models. Employees empowered and accountable to drive their own development.

  14. Career Development has joint responsibilities Individual Responsibilities Company Responsibilities IDP Appraisal Development opportunities Career counseling Secondments Coaching Mentoring

  15. Mathematics Score .. Country Comparison .. Advance (625) : Students can organize and draw conclusions from information, make generalizations, and solve nonroutine problems.. High (550) : Students can apply their understanding and knowledge in a variety of relatively complex situations. Intermediate (475) : Students can apply basic mathematical knowledge in straightforward situations. Low (400) : Students have some knowledge of whole numbers and decimals, operations, and basic graphs. 332 in 2003 Source : TIMSS 2007 / 2003 Reports

  16. Science Score .. Country Comparison .. Advance (625) : Students can organize and draw conclusions from information, make generalizations, and solve nonroutine problems.. High (550) : Students can apply their understanding and knowledge in a variety of relatively complex situations. Intermediate (475) : Students can apply basic mathematical knowledge in straightforward situations. Low (400) : Students have some knowledge of whole numbers and decimals, operations, and basic graphs. 398 in 2003 Source : TIMSS 2007 / 2003 Reports

  17. Thank you…

More Related