Decentralization within oil and gas companies can
also enable these companies to identify changes in
external environments and then help them to actively
and effectively response to these rapid changes. Less
emphasis on formalization can also provide freedom
for experts and internal consultants to more innovatively handle their work operations, which leads to
higher job satisfaction within oil and gas companies.
James Hesket and his colleagues in their book, “The
Ownership Quotient: Putting the Service-Profit Chain to
Work for Unbeatable Competitive Advantage,” state that
job satisfaction can stimulate the quality of products and
services that potentially leads to higher degrees of customer satisfaction and profitability. Therefore, I suggest
that business consultants in oil and gas industries should
also consider the importance of organizational structure
in improving performance in oil and gas companies.
Organizational strategy can also play a critical role
in improving performance. Firms’ strategy can be categorized into two prominent streams: the first being
that research indicates that there is a strong alignment
between business strategy and external environment
that potentially leads to higher degrees of performance
at the organizational level. The other stream sheds light
on different typologies of business strategies, and argues that one typology of these existing typologies can
create better results for organizations when compared
to others. It can be seen that these two streams have
highlighted business strategy as an important enabler
to improve organizational performance.
In terms of STROBE strategy dimensions, analysis
strategy can in turn develop opportunities for human
resources development within organizations operating
in oil and gas industries, by assessing current situations in details. Analytical orientation has major effects on the performance of these companies through
focusing on analytical decision-making process. Human resources development can potentially facilitate
financial performance of oil and gas companies, by
improving profitability for these companies.
Defensive strategy as a necessary requisite enhanc-
es profitability, which enhances efficiency in compa-
nies’ current positions in the hypercompetitive oil and
gas markets. Since pro-activeness manifests itself in
behaviors such as continuously exploring the emerg-
ing opportunities to invest, this strategy can positively
contribute to the efficiency of oil and gas companies
through helping these companies to find better oppor-
tunities for investment that potentially leads to better
financial performance for these companies in terms of
return on investment (ROI) and profitability.
Futurity strategy, which implements basic studies to
develop an effective and comprehensive vision for the
future, can also enable oil and gas companies to identify
and actively respond to the changes occurred in the ex-
ternal environment. In line with this, I suggest business
consultants in oil and gas industries should consider the
critical role of strategy in improving organizational per-
formance for companies operating in these industries.
Information technology is a key factor to im-
prove business. Forbes’ Reports on American in-
dustries clearly indicate that effective information
technology significantly contributes to firms’ finan-
cial performance. These researches acknowledge
that information technology is an important enabler
to effectively implement organizational processes.
Communication technologies can in fact reduce
paper-based transactions for oil and gas companies
that potentially decrease costs and subsequently
improve profitability within these companies.
Furthermore, it can be seen that communication tech-
nologies contribute to these companies to effectively
identify opportunities in the external business environ-
ment that leads to identify best opportunities for invest-
ment in oil and gas industries that potentially leads to
improve financial performance for companies operating
in these industries in terms of return on investment.
Decision-aid technologies as another kind of infor-
mation technology can also help oil and gas companies
to effectively create more innovative solutions for their
organizational problems. In this way, I argue that in-
formation technology is positively associated with two
important factors of product and service quality and
customer satisfaction. I, therefore, recommend that oil
and gas companies should consider information tech-
nology as a key player in improving their performance
in today’s oil and gas hypercompetitive environment.
Mostafa Sayyadi is a senior business consultant in
Australia. In recognition of his work with Australian Institute
of Management and Australian Human Resources Institute,
he has been awarded the titles, “Associate Fellow of the
Australian Institute of Management” (AFAIM), “Certified
Professional Manager” (CPMgr) and “Certified Professional
in Human Resources” (CAHRI).