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The Future of Energy Leadership

By Luis Vielma Lobo - CBMX
Director General

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By Luis Vielma Lobo | Director General - Thu, 03/30/2023 - 15:00

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The energy sector is changing worldwide, and companies understand that. This new reality is forcing organizations to look for individuals with differentiating competencies and relevant experience to ensure they have an innovative leadership style in an environment where the generation of economic value no longer represents the only value for companies. Nowadays, value creation should include elements like governance, people, environmental security, and first and foremost, the right vision for building a sustainable future.

Leaders should understand the industry within increasingly complex, dynamic, and heterogeneous environments. Historically, the oil business has been more a matter of hydrocarbons and has gradually become an energy business, representing an additional challenge. Hence the importance for those who lead to incorporate new issues into their agenda and a broader lexicon to remain competitive, facilitate the search for innovative solutions, and, above all, adequately respond to the demands of their clients and society.

Business leaders must implement profound structural changes in their organizations. Our political system and lifestyle are at risk if we do not transform our institutions, generating and sharing value for everyone. Authentic leadership impacts the people they lead in every aspect of their lives. Society requires genuine and honest leaders capable of inspiring and motivating others and being positive influencers in their environment by their example. There is no more extended separation between the role of an individual as a leader, regardless of the sector in which they operate, and their personal life. 

Companies that improve their corporate cultures by fostering creativity, permanent learning, and collaborative work will have a better chance of retaining and attracting the most competent and qualified individuals to their work teams. Added to the above is the importance of incorporating mentors or tutors to contribute to the development of new professionals and better prepare them for the future, providing up-to-date advanced training and development programs that include, among other topics, the discussion of issues related to energy transition and its importance, as well as the vision of hydrocarbon companies moving toward integrated energy businesses. This would help young workers understand the oil sector's current dynamics and reach their aspirations and professional potential

In the last two decades, the supply of talent from universities to the industry has decreased; likewise, current human capital has been aging. This represents a problem for organizations. In addition, the generation of young millennials has a very particular vision of their lives and professional growth, making them explore different options in the initial phase of their career, seeking more time and flexibility for personal and family needs. These two factors play a decisive role when entering the labor market. Furthermore, many of these young people likely pay attention to the issue of climate change, and this influences their decision to stay away from the hydrocarbon industry, considering it a predator of the planet.

Therefore, the importance for companies to be closer and contribute to universities and academic institutions to understand the interests and aspirations of young students considering the business' particular needs and to be able to develop recruitment strategies that facilitate a compelling connection to get them hired. It is essential for oil and gas, and service companies to generate collaborative relationships with universities. One of the existing and practical mechanisms to contribute to specialized training is the assignment of experts from companies that serve as teachers or lead special projects with senior students. This would show them advances in the different technical disciplines of the business and bring the student closer to collaborative work, real situations in organizational issues, and the environmental and social impacts of the operation.

To remain competitive and meet their strategic objectives, oil and gas companies must continually review their workers' development and succession plans. This makes it a differentiating element for the organization and its people. A succession plan is not limited to finding an individual for a specific position; it allows the organization to guarantee management continuity to meet its strategic objectives and goals. When carrying out this exercise, it is essential to identify people aligned with the company's vision and mission and passion for its success. A career plan is designed to expose them to challenging tasks and coordinate specific projects and processes related to talent development. It must be a structured process with the support and supervision of senior management. As a result, the company will have prepared and committed employees who can lead the organization to achieve results never seen before.

A lesson learned from the pandemic was that we began to identify ourselves more as individuals than company workers. This insight could be key to fostering and developing a more humane and collaborative corporate culture that will facilitate a more prosperous and committed future for the energy industry and society at large.

Photo by:   Luis Vielma Lobo

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