Organisational transformation to improve operations and talent development: ADNOC

Founded in 1971, ADNOC operates across the energy value chain, responsibly meeting the demands of an ever-changing market. Its network of fully integrated businesses is already in the top tier of the lowest carbon-intensity oil and gas producers in the world, but it has set its sights on making today’s energy cleaner still while investing in the clean technologies of tomorrow.

To achieve this and its wider goals required a review of the entire organisation and its context to decide what does and doesn’t work. Its Shared Services programme was the result of that process.  

What is the challenge?

Since 2016, ADNOC has been implementing fundamental changes to streamline its business and overcome the challenges presented by fragmented structures, siloed operations and diverse systems.

It decided to develop a transformational initiative that would remedy these multiple issues through an integrated solutions approach.

What are the objectives?

Overall, the Shared Services model was introduced to enable a more efficient, commercially-minded and performance-driven organisation to deliver best-in-class business operations and talent development across the ADNOC Group.

Specific key objectives included:

• Cost efficiency: Optimising the total cost across six core support functions.
• Consumer centricity: Enhancing customer service and offerings.
• Resource optimisation: Repurposing optimised resource capacity to add incremental value.
• Business synergy: Streamlining business operations to the benefit of all group companies to share, access and utilise based on their respective needs.
• Process standardisation: Standardising processes across ADNOC’s businesses.
• Growth and continuity: Adopting an intelligent business services model.
• Productivity enhancement: Driving productivity growth in alignment with portfolio investments.
• Operational agility: Ensuring an agile and scalable delivery model with a robust business continuity plan.
• Employee opportunities: Providing career opportunities and exposure for employees.

What did it do?

Adopting a five-phased approach, the meticulously planned transformation took place over 36 months to ensure the effective and transparent management and transition of people, processes and technology with the least disruption possible.

The programme was centrally managed and sponsored and set on a large canvas with an intricate matrix that was built up around the six in-scope functions: Finance, Human Capital (HC), Procurement, Group Digital and Cyber Security, Group Business Services and Legal. At the conclusion, the initiative delivered over 600 services for these six functions, reaching more than 45,000 users located across 14 group companies, with services managed end-to-end by 3,000 employees. A dedicated team of 450 employees and partners worked tirelessly to make these changes a reality, ensuring that they were delivered smoothly via 13 workstreams.

Throughout the implementation, HC set up a wide range of support mechanisms for line managers and employees alike. They included:

• tailored leader dialogue packs to assist line managers in their discussion of the changes with their teams
• town hall meetings, briefing sessions and ‘Team Connects’ to provide employees with ongoing updates
• a people counselling committee to support employees with any specific questions or concerns regarding the outcome of their role
• a post go-live support model that provided a clear end-to-end process of how and where employees were able to access support services, specifically related to HC
• a microsite online platform to know more about shared services accessible to all employees
• an employee assistance platform, an independent and confidential employee wellbeing support portal for social, financial, legal or other advice
• an employee transition team, for all functions and group companies, aimed at providing effective movements of employees who were changing roles as part of the Shared Services model
• a dedicated change management and communications team tasked with ensuring that employees remained up to speed and aware of developments
• training solution to support the successful transition of employees moving into Shared Services
• FAQs for managers and all employees to answer questions that are frequently raised.

What outcomes have been achieved so far?

The implementation of this initiative has been transformative for ADNOC with clear and demonstrable impact. Shared Services now forms the backbone of the group’s operating model, supporting ADNOC on its trajectory to become a leading, progressive energy company.

Business outcomes to date include:

• direct savings which by EoY 2023 were 40% above the initial target and achieved 12 months ahead of plan
• additional savings through cost avoidance
• 106% increase in workforce productivity (target of 137% by 2028)
• 94%+ reduction in applications/systems, with more than 800 consolidated into only 50 platforms
• operational efficiency up by 20%, validated by 86% user satisfaction
• regular employee experience feedback surveys having identified advantages/improvements across all areas, including employee transition, employee support functions, HC Enterprise Resource Planning services, cost reduction and overall benefits realisation
• acceleration in ADNOC’s ambition to be the most AI-enabled energy company through the rapid development and adoption of AI use cases that deliver enhanced business value
• creation of a community of professionals serving all ADNOC’s internal customer base, driving improved service delivery and providing world-class customer support and insight.

Key learnings

• The successful execution of this landmark programme has been testament to excellence in change management and having a dedicated team working on the programme.
• The leadership team’s combined expertise in project management as well as the five-phase approach proved instrumental to delivery.
• Under their guidance, the initiative achieved impressive stakeholder alignment, driving progress and navigating complex challenges with unwavering determination.