While most corporations should be optimizing their company cultures, energy companies specifically need to move the needle on driving forward innovative culture for its employees. Getty Images

The prevailing economic environment has made innovation essential to gaining a competitive edge in the oil and gas industry.

Global economic shifts and the unstable oil market have been considerable factors inhibiting the advancement of innovation in the oil and gas sector. Oil prices have not significantly increased in the past four to five years, while investors and Wall Street hold corporate executives accountable for capital discipline.

In light of these trends, corporate culture and innovation are key factors that hold the potential to drive novelty in the next upcycle. To bring value to shareholders, the oil and gas industry needs to nurture an environment that fosters a radically innovative culture to create new product lines and markets, unique ecosystems, product content, and processes.

Culture from the top down

Organizational culture is one of the essential dynamics that drive innovation. Employee behavior helps influence and promote the acceptance of innovation as a fundamental corporate value. Organizations are therefore admonished to concentrate on fostering an innovative culture that allows the growth of new ideas.

This culture needs to be created by deliberate action on the part of leaders of industry or by indirect measures such as composition and institutional policy directions. A model of innovative culture which translates into cultural transformation emerges as a result of this deliberate action and institutional policy directions.

Various studies over the years have examined innovative culture models focused on cultural characteristics or factors. A comprehensive, innovative culture model that incorporates cultural traits and their determinants is reviewed in this contemplative piece.

Execution  culture vs. innovative culture

In her book, "The Culture Map: Breaking Through the Invisible Boundaries of Global Business," Erin Meyer explains that "ambidextrous culture" is the concurrent search of flexibility and alignment at a business unit/sector which is linked to several organizational outcomes including improved performance and innovation.

This ambidextrous culture can be divided into two broad categories: Execution culture and innovative culture. Execution culture is a working environment that is more process- and task-driven to get things done. The oil and gas industry has typically favored the execution culture, where there is a central decision-maker at the head of the table. Research and recommendations on pertinent matters are typically presented to decision-makers who sit through a PowerPoint presentation. Subsequently, a decision is made based on the facts presented via PowerPoint presentation.

One critical demerit of this setup is that it usually leans towards low-risk conservative judgment. The executive lifestyle has worked in the past in the oil and gas industry due to the high fixed cost, and the "failure is unacceptable" approach in the industry.

With new technologies such as 3D printing, predictive analytics, machine learning, and deep learning, one can test some ideas or thoughts through rapid prototyping in a lab setting to test their hypothesis. Therefore, this type of culture as a sole approach to decision-making in the industry may need to be reconsidered.

Meanwhile, innovative culture is a work environment where leaders encourage and nurture unorthodox thinking in approaching problem solutions and applications. If the energy industry leaned more toward this style of culture, it would help foster innovation and accelerate the innovation landscape in the industry.

Innovative culture is a more design-oriented approach that generates a large pool of options and also incorporates a visual thinking framework. It enhances a creative mode for the audience, and everybody in the company ends up being a decision-maker. This type of culture fosters open innovation, eliminates the fear of expression, and pushes for more collaboration and creativity in the ecosystem.

According to a recent survey done by Accenture Strategy, 76 percent of leaders say they regularly empower employees to be innovative, while only 42 percent of employees agree. This shows an apparent disparity in more than the perceptions of employers versus employees and the belief that innovative culture is not promoted by middle management. This barrier can be broken down by instituting and enforcing an innovative culture.

Staying agile in a transforming world

The world has changed, and it will continue to transform. Various factors are disrupting traditional methods of business management across the globe, and organizational behavior is being impacted significantly. For an organization to be competitive globally, it requires innovation and creativity.

The rate at which businesses are facing competition requires agility. Employees are pressured to give their best and to come up with new ideas at a level even beyond some of history's greatest minds. For many, uncertainty and insecurity abounds. The fear of being made redundant and a resulting lack of trust prevents creativity among employees.

Trust, productive gameplay, and fun — critical components of an innovative culture — can spark creativity and increase global competitiveness. Due to the recent downturn, most teams are burdened with the same amount of work, which was meant for double or tripled their workforce and are still expected to perform at their peak capability. They need the right conducive environment to function.

Implementing action

While the energy industry should avoid trying to copy innovative practices from technology companies, oil and gas companies should review possible case studies that can be incorporated in fostering an acceptable culture for millennials to be attracted to the industry.

Presentation is important

Take a look at your marketing materials, for instance. Skip the stereotypical image of the macho oil guy on a rig operating the brake handle and showcase how the industry is adapting open innovation across sectors such as using predictive analytics and rapid prototyping to help design a safe working environment. Showcasing the conducive culture we experience in oil and gas, which challenges us to think outside the box and solve the world's energy problems will be an excellent way to create opportunities internally in companies and also attract and retain talent from different backgrounds and industries to help solve the world's energy problems.

Consider flexible work initiatives

To help establish and foster an innovative culture in oil and gas, the industry needs to embrace virtual and remote working environments, retraining and refresher courses to keep employees' skills relevant to solving problems, leaders setting a positive example on work-life balance and cutting down or avoiding long-distance travel via virtual meetings. Others essential pointers to consider are, giving employees the freedom to be themselves at work, leadership or management having a positive attitude towards failure, allowing remote work on days on which employees have personal commitments, networking events with company leaders scheduled during office hours, having an open channel for the report of sexual discrimination/harassment incident(s) to the company, among others.


I'd like to close with a quote from another influential book, "The Innovator's Dilemma," by Harvard Professor Clay Christensen. He writes, "When an organization's capabilities reside primarily in its people, changing to address new problems is relatively simple. However, when the capabilities have come to live in processes and values and especially when they have become embedded in culture, change has become extraordinarily complicated."

Establishing a uniquely innovative culture within the energy industry will be a great foundation going forward, for spurring progress in the oil and gas sector.

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Nii A. Nunoo is senior associate and management consultant within Strategy and Energy Core Operations at KPMG.

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CultureMap Emails are Awesome

10+ can't-miss virtual business and innovation events in Houston for August

Where to be online

Another month, another roundup of events Houston innovators should attend — and yes, they are still all virtual. From Houston Exponential launching its new virtual database and networking platform to informative workshops and panels, here's what you need to attend this month.

August 5 — IP Agreements Every Startup Should Know About

Every startup should protect their Intellectual Property (IP) as means to protect their developing products and/or concepts, but often do not know where to start. Join The Ion and Baker Bots as we explore different IP agreements your startup should consider.

Details: This event takes place online on Wednesday, August 5, from 1 to 2 pm. Learn more.

August 5 — Texas Founder Hotseat: Pitch Texas Investors & Experts Online

Do you have a startup, or a strong idea for a startup? Could you use blunt, honest feedback on your startup ideas? On this live and interactive online event you can pitch your ideas to a panel of Houston startup investors and experts for ratings and feedback, all from the comfort of your home. Even if you don't want to pitch, you are invited to hear startup ideas and watch how the experts analyze businesses.

Details: This event takes place online on Wednesday, August 5, at 4 pm. Learn more.

August 6 — Bayou City Showcase

Celebrate the launch of the newest startups from Rice University's OwlSpark and University of Houston's RED Labs. Sixteen startups from Class 8 of the program will be pitching and demonstrating during an expo.

Details: This event takes place online on Thursday, August 6, from 2 to 4:30 pm. Learn more.

August 11 — LGBTQ+ In Tech Summit

Capital Factory is hosting its first virtual LGBTQ+ In Tech Summit. The organization is dedicated to increasing diversity in the entrepreneurial and tech community while making our coworking space an inclusive environment for all. Attendees can look forward to a special keynote guest, insightful fireside chats, discussion sessions, a startup showcase, Epic Office Hours, and panels on relevant topics facing the tech ecosystem.

Details: This event takes place online on Tuesday, August 11, from noon to 5 pm. Learn more.

August 12 — Managing Your Digital Presence in a Post-COVID Era

Your startup's digital presence is more important now than ever. In a world where everything has gone virtual, your digital presence is the first thing your potential customers will see prior to contacting you. If you are struggling to create your digital marketing strategy, you're not alone. But fear no more, Allie Danziger of Integrate, is here to help.

Details: This event takes place online on Wednesday, August 12, at 11 am. Learn more.

August 13 — HTX TechList Launch

Join Houston Exponential for a live launch of Houston's innovation discovery platform, HTX TechList, featuring speakers from Start-Up Nation Central, Mayor Sylvester Turner, the Greater Houston Partnership, and a demo by Houston Exponential. Join live virtual breakout sessions moderated by members of the innovation ecosystem influencer. Editor's note: InnovationMap is a media partner for the event.

Details: This event takes place online on Thursday, August 13, at 11 am. Learn more.

August 14 — How Women in Tech Can Affect Change in the Workplace 

The Suffragist movement has long been known for its effectiveness in creating grassroots efforts that created laws to give women the right to vote. 100 years later women are still fighting for equal rights and inclusion. Women's votes will have a tremendous impact on the 2020 election. It's time to organize the collective power of our votes to fight for equality in the workplace.

Details: This event takes place online on Friday, August 14, at 11 am to 12:30 pm. Learn more.

August 18 — Intro to the Texas Startup Scene & Ask Me Anything

Are you an entrepreneur starting a new company? Recently moved your company to Texas? Want to find out how to connect with other entrepreneurs, mentors, and investors in the startup ecosystem? Join Capital Factory VIRTUALLY to hear an overview from experienced entrepreneurs, venture capitalists, and community partners at Intro to Texas Startup Scene & Ask Me Anything.

Details: This event takes place online on Tuesday, August 18, at 2 to 3:30 pm. Learn more.

August 19 — Igniting Innovation: Business Roundtable

Join serial entrepreneur Dr. Juliet Breeze as she moderates a conversation with experienced healthcare executives to explore what the impact of the pandemic has meant to their businesses. They'll share insights regarding ways in which they're adapting and positioning for survival and continued success.

Details: This event takes place online on Wednesday, August 19, at 1 to 2 pm. Learn more.

August 25 — HAN + Carta Cap Table Workshop

The Houston Angel Network has teamed up with Carta, the experts in capitalization table management and valuation software. Carta helps companies and investors manage their cap tables, valuations, investments, and equity plans. During this workshop Carta will discuss cap table basics, common mistakes, and tips for responsible equity management. There will also be a real life cap table scenario where both founders and investors can ask their questions about the often little understood mechanics of cap tables and how they evolve with each fund raise.

Details: This event takes place online on Tuesday, August 25, at 11:30 am to 12:30 pm. Learn more.

August 26 — Equity in Tech: How We Can Do Better

The tech industry is incredibly powerful — not only through the products created, but with its economic force (forecasted to reach 1.7 trillion in the US in 2020). With great power comes great responsibility. Tech can – and must – do better to create and nurture diversity, equity and inclusion within the industry.

Details: This event takes place online on Wednesday, August 26, at 11:30 am to 1 pm. Learn more.

New locally owned food delivery app rolls into Houston area

orange you glad?

A new delivery app aims to give diners a locally owned alternative to the big national names. Meet OrangeCrate, an app that does things a little differently.

Unlike the national brands, each OrangeCrate affiliate is locally owned and has a specific geographic territory. Franchisee Cody Lee has brought the company to two areas of Houston, Fort Bend County and the greater Memorial area. Lee launched in Fort Bend on June 1 and will bring Memorial online August 24.

"We're just like UberEats or DoorDash, but we're locally owned and locally operated, so I have a lot of control and flexibility versus some of the bigger name brands," Lee tells CultureMap.

That flexibility starts with the cost restaurants pay to use OrangeCrate. While national operators might charge as much as 30 percent to deliver a meal, Lee says OrangeCrate's fees are typically half that, usually between 10 and 15 percent.

Customer fees start at $2.99 and go up depending on how far away from the restaurant they live. Most orders also have a $10 minimum.

In terms of control, Lee trains each driver personally and monitors them when they're working. Unlike other services, drivers may only make one delivery at once, and they're only allowed to make OrangeCrate deliveries while they're on the company's schedule.

"I can chat with them and understand if there's an issue and minimize the impact to the customer," Lee says. "There's a lot of control where I can maintain a lot of variables to ensure the customer experience."

From a user's perspective, the experience will feel familiar. Order and pay via OrangeCrate's website and app. A driver — wearing masks and gloves, of course — will arrive with a bright orange bag containing the food order.

Lee says that so far his biggest challenge has been building awareness of the brand and convincing restaurateurs that he's a viable alternative to the more familiar names. From his perspective, restaurants that promote his company can save money on delivery fees and expand their reach, which is particularly important at a time when some people don't feel comfortable eating in restaurants.

"Most people know the bigger guys," Lee says. "It's important to hear Orange Crate, and that we're a local option; we're also a cheaper option. They get the same or better service for their customers."

In Fort Bend County, Lee has started with a roster of mostly national and regional chains like Chili's, 5 Guys, and Chuy's, but he says he's trying to add as many local restaurants as possible. In the Memorial area, he hopes to launch with between 50 and 60 establishments.

"My focus is on local restaurants and earning their business," Lee says. "I will only be adding local restaurants as we go forward."

So far, Lee has seen enough growth that he's optimistic about the service's future. He's got his eyes on Galveston and The Woodlands as potential market for expansive, with Inner Loop neighborhoods in his long term plans.

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This article originally ran on CultureMap.

3 Houston innovators to know this week

who's who

Editor's note: A key attribute of innovators and inventors is the ability to look forward — to see the need for their innovation and the difference it will make. Each of this week's innovators to know have that skill, whether it's predicting the rise of autonomous vehicles or seeing the future of health care.

Sola Lawal, product operations manager at Nuro

Autonomous vehicle delivery service is driving access to food in Houston’s vulnerable communities

Native Houstonian Sola Lawal is looking into how AI and robotics can help increase access to fresh foods in local food deserts. Photo courtesy of Nuro

Sola Lawal has always found himself back in his hometown of Houston. Now working for artificial intelligence and robotics company, Nuro, he sees the potential Houston has to become a major market for autonomous vehicles.

"I think that autonomous vehicles are going to become an industry in the same way your standard vehicles are," Lawal says."One really strong way the Houston ecosystem and Nuro can partner is essentially building out the ancillary."

Lawal shared more on how Houston and Nuro can work together on this week's episode of the Houston innovators podcast. Read more and stream the episode.

Jose Diaz-Gomez, an anesthesiologist at CHI St. Luke's Health

CHI St. Luke's Health has invested in around 40 of the Butterfly iQ devices that can be used to provide accurate and portable ultrasonography on COVID-19 patients. Photo courtesy of CHI St. Luke's

A new, portable ultrasound device has equipped Jose Diaz-Gomez and his team with a reliable, easy-to-use tool for diagnostics and tracking progress of COVID-19 patients. And this tool will continue to help Diaz-Gomez lead his team of physicians.

"Whatever we will face after the pandemic, many physicians will be able to predict more objectively when a patient is deteriorating from acute respiratory failure," he says. "Without this innovation, we wouldn't have been able to be at higher standards with ultrasonography." Read more.

Kimberly A. Baker, assistant professor at UTHealth School of Public Health

UTHealth School of Public Health launched its Own Every Piece campaign to promote women's health access and education. Photo courtesy of Own Every Piece

It was unnerving to Kimberly Baker that proper sex education wasn't in the curriculum of Texas schools, and women were left without resources for contraceptives. So, along with UTHealth School of Public Health, she launched its Own Every Piece campaign as a way to empower women with information on birth control and ensure access to contraceptive care regardless of age, race, relationship status or socioeconomic status.

"You feel like the campaign is talking to you as a friend, not talking down to you as an authority or in any type of shaming way," says Kimberly A. Baker, assistant professor at UTHealth School of Public Health. One of her favorite areas of the website is the "Find a Clinic" page, connecting teens and adult women to nearby clinics, because "one of the biggest complaints from women is that they didn't know where to go," says Baker. Continue reading.