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.

From Rex Tillerson's thoughts on leadership and politics to Houston's role in the low-carbon energy movement, check out these powerful quotes from the 2020 KPMG Global Energy Conference. Getty Images

Overheard: Oil and gas experts weigh in on the future of low-carbon energy and Houston's role in the movement

Eavesdropping in Houston

As the energy capital of the world, Houston can't get complacent. The oil and gas industry is changing — carbon is out and finding clean energy alternatives is in.

At the 2020 KPMG Global Energy Conference on June 5 and 6, hundreds of energy professionals listened to the O&G elite — even including former Secretary of State and former ExxonMobil CEO Rex Tillerson — give their two cents about the revolution. Day two of the conference featured the Houston Low Carbon Energy Climate Summit by the Center for Houston's Future.

In case you missed it, here are a few powerful quotes from both days of the program — from Houston's role in the low-carbon energy movement to Tillerson's leadership expertise.

"Texas is one of those places where you can just get stuff done.”

— Cindy Yeilding, senior vice president at BP, says Texans are willing to collaborate on this. In the "Visions of our Energy Future" panel during the Low Carbon Energy Summit on Thursday, June 6, she predicted Houston will be a net zero carbon city by 2040 or 2035.

“One of the things we need to focus on is being able to attract and retain talent.”

— Mary Anne Brelinsky, CEO of EDF Trading, stressing the importance of talent in the effort to keep Houston the energy capital of the world. Brelinsky advocated for corporations and its execs getting involved with local universities. "We're competing against Silicon Valley," she says in the panel.

"You’ve got the source, and you’ve got the sinks. … Houston is going to be one of our focal points.”

— Charlene Olivia Russell, vice president of Low Carbon Strategies at Oxy, on how Houston is set up for success when it comes to staying as a power player in the global low carbon energy platform, but, during the panel, she emphasizes collaboration needs to continue happening.

“When Shell agreed to sponsor this summit, it was pitched as a climate change summit. It was changed to a low-carbon summit because some people in this room are uncomfortable with the phrase 'climate change.'"

— Jason Klein, vice president of U.S. Energy Transition Strategy at Shell, says at the "Energy Transformations" panel during the Low Carbon Energy Summit on Thursday, June 6.

"If we want to be the leader and the energy capital of the world, we need to attract talent, capital investment, and innovation, and if the people are going to do those things think that we don’t even like to talk about those things, then they aren’t going to come here — they’re going to go to San Francisco.”

— Klein continues. The audience responded with a round of applause.

“I think it is important as Americans to remember that our greatest strength and the most important element to our national security has been that we are a nation that has many allies and friends. Our adversaries — Russia, China, North Korea, Iran — have no allies or friends.”

— Former Secretary of State Rex Tillerson who served as CEO of ExxonMobil from 2006 to 2016. Tillerson discussed a wide range of topics on Wednesday, June 5, at the 2020 KPMG Global Energy Conference in his fireside chat with Regina Mayor, global sector head and U.S. national sector leader of energy and natural resources at KPMG US. Click here to watch the full interview.

“We’re all a work in progress. You’re never done. I’m not done — I’m still a work in progress. If you have that view and you have that set of values that are never going to change … [then] I can keep developing as a human being.”

— Tillerson says of leadership lessons learned. He's an avid proponent of the Boy Scouts of America organization, and cited many valuable lessons he's learned about himself and about leading people from his involvement in the nonprofit.

At a conference focused on women in business, three Houston entrepreneurs gave their advice for the next generation of female innovators. Photo by Scott Halleran/Getty Images

Overheard: Houston female entrepreneurs share advice and experience

Eavesdropping in Houston

Hundreds of women gathered for the Greater Houston Women's Chamber of Commerce's annual Greater Houston Conference for Women. The full-day event on April 18th shined a spotlight on the work women are doing in business in the Bayou City.

One part of the programing included a panel of three Houston entrepreneurs who told their stories and meant to inspire the next generation of businesswomen.

"Innovation is critically important to our city," says Tandra Jackson, KPMG's Houston office partner and moderator of the panel. "Having an ecosystem where we bring innovative capabilities, solutions, and organizations to our community is absolutely paramount to the longevity of our city."

If you missed the event, here are some powerful quotes overheard at the panel.

“I look for a passionate entrepreneur with a point of difference — there’s got to be a reason for you to be doing this company. What are you bringing to [the industry]?”

—Janet Gurwitch, founder of Laura Mercier Cosmetics and private equity investor focused on cosmetics companies, when asked if there was a difference between male and female entrepreneurs. "Other than biologically, no," she says.

“It’s extraordinarily important that you find an investor who basically gets it — whether it’s the financial [concern of] how to you do revenue recognition in the software world, or how do you capitalize and understand the valuations. It’s important that you get the right player.”

— Samina Farid, founder of Merrick Systems Inc., an energy software company when asked about advice for young women interested in starting their own company.

“One of the things I see is [the importance of] really knowing the problem that you solve. When you’re early on, [you have to know] what is the core market that you’re going to serve and is the market large enough that you’re going to attract enough customers to solve that problem.”

— Janette Marx, CEO of Airswift, an international workforce solutions provider. Marx contributes as a mentor in GHWCC's office hours and advises entrepreneurs to look into the program.

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Houston company premieres new platform for gig economy workforce

tech support

As the independent workforce continues to grow, a Houston-based company is aiming to connect these workers with companies that match their specific needs with a new digital platform.

FlexTek, a 14-year old recruiting and staffing company, launched a first gig site tailored to the needs of the individual worker. The platform, Workz360, is built to be able to manage projects, maintain quality control, and manage billing and year-end financial reporting.The company is also working to expanding the platform to provide infrastructure to assist independent workers with education, access to savings programs, tax compliance through vetted third-party CPA firms, and hopes in the future to assist with access to liability and medical insurance.

With a younger workforce and a shifting economy, the “gig economy,” which is another way to describe how people can earn a living as a 1099 worker, offers an alternative option to the corporate grind in a post-pandemic workscape. Chief Marketing Officer Bill Penczak of Workz360 calls this era “Gig 2.0,” and attributes the success of this type of workforce to how during the COVID-19 pandemic people learned how to work, and thrive in non-traditional work environments. The site also boasts the fact it won’t take a bite out of the worker’s pay, which could be an attractive sell for many since other sites can take up to 65 percent of profit.

“In the past few years, with the advent of gig job platforms, the Independent workers have been squeezed by gig work platforms taking a disproportionate amount of the workers’ income,” said FlexTek CEO and founder Stephen Morel in a news release. “As a result, there has been what we refer to as ‘pay padding,’ a phenomenon in which workers are raising their hourly or project rates to compensate for the bite taken by other platforms.

"Workz360 is designed to promote greater transparency, and we believe the net result will be for workers to thrive and companies to save money by using the platform,” he continues.

As the workforce has continued to change over the years, a third of the current U.S. workforce are independent workers according to FlexTek, workers have gained the ability to have more freedom where and how they work. Workz360 aims to cater to this workforce by believing in a simple mantra of treating your workers well.

“We’ve had a lot of conversations about this, but we like the Southwest Airlines model,” Penczak tells InnovationMap. “Southwest Airlines treats their people very well, and as a result those employees treat the passengers really well. We believe the same thing holds true. If we can provide resources, and transparency, and not take a bite out of what the gig worker is charging, then we will get the best and the brightest people since they feel like they won’t be taken advantage of. We think there is an opportunity to be a little different and put the people first.”

NASA launches new research projects toward astronauts on ISS

ready to research

For the 26th time, SpaceX has sent up supplies to the International Space Station, facilitating several new research projects that will bring valuable information to the future of space.

On Saturday at 1:20 pm, the SpaceX Dragon spacecraft launched on the Falcon 9 rocket from NASA’s Kennedy Space Center in Florida — bringing with it more than 7,700 pounds of science experiments, crew supplies, and other cargo. The anticipated docking time is Sunday morning, and the cargo spacecraft will remain aboard the ISS for 45 days, according to a news release from NASA.

Among the supplies delivered to the seven international astronauts residing on the ISS are six research experiments — from health tech to vegetation. Here's a glimpse of the new projects sent up to the scientists in orbit:

Moon Microscope

Image via NASA.gov

Seeing as astronauts are 254 miles away from a hospital on Earth — and astronauts on the moon would be almost 1,000 times further — the need for health technology in space is top of mind for researchers. One new device, the Moon Microscope, has just been sent up to provide in-flight medical diagnosis. The device includes a portable hand-held microscope and a small self-contained blood sample staining tool, which can communicate information to Earth for diagnosis.

"The kit could provide diagnostic capabilities for crew members in space or on the surface of the Moon or Mars," reads a news release. "The hardware also may provide a variety of other capabilities, such as testing water, food, and surfaces for contamination and imaging lunar surface samples."

Fresh produce production

Salads simply aren't on the ISS menu, but fresh technology might be changing that. Researchers have been testing a plant growth unit on station known as Veggie, which has successfully grown a variety of leafy greens, and the latest addition is Veg-05 — focused on growing dwarf tomatoes.

Expanded solar panels

Thanks to SpaceX's 22nd commercial resupply mission in 2021, the ISS installed Roll-Out Solar Arrays. Headed to the ISS is the second of three packages to complete the panels that will increase power for the station by 20 to 30 percent. This technology was first tested in space in 2017 and is a key ingredient in future ISS and lunar development.

Construction innovation

Image via NASA.gov

Due to the difference of gravity — and lack thereof — astronauts have had to rethink constructing structures in space. Through a process called extrusion, liquid resin is used to create shapes and forms that cannot be created on Earth. Photocurable resin, which uses light to harden the material into its final form, is injected into pre-made flexible forms and a camera captures footage of the process, per the news release.

"The capability for using these forms could enable in-space construction of structures such as space stations, solar arrays, and equipment," reads the release. "The experiment is packed inside a Nanoracks Black Box with several other experiments from the Massachusetts Institute of Technology Media Lab and is sponsored by the ISS National Lab."

Transition goggles

It's a bizarre transition to go from one gravity field to another — and one that can affect spatial orientation, head-eye and hand-eye coordination, balance, and locomotion, and cause some crew members to experience space motion sickness, according to the release.

"The Falcon Goggles hardware captures high-speed video of a subject’s eyes, providing precise data on ocular alignment and balance," reads the release.

On-demand nutrients

Image via NASA.gov

NASA is already thinking about long-term space missions, and vitamins, nutrients, and pharmaceuticals have limited shelf-life. The latest installment in the five-year BioNutrients program is BioNutrients-2 , which tests a system for producing key nutrients from yogurt, a fermented milk product known as kefir, and a yeast-based beverage, per the release.

"The researchers also are working to find efficient ways to use local resources to make bulk products such as plastics, construction binders, and feedstock chemicals. Such technologies are designed to reduce launch costs and increase self-sufficiency, extending the horizons of human exploration," reads the release.

3 Houston innovators to know this week

who's who

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from esports to biomaterials — recently making headlines in Houston innovation.

Zimri Hinshaw, CEO of BUCHA BIO

Zimri T. Hinshaw, CEO of BUCHA BIO, joins the Houston Innovators Podcast to discuss how he's planning to scale his biomaterials startup to reduce plastic waste. Photo courtesy of BUCHA BIO

After raising a seed round of funding, BUCHA BIO is gearing up to move into its new facility. The biomaterials company was founded in New York City in 2020, but CEO Zimri T. Hinshaw shares how he started looking for a new headquarters for the company — one that was more affordable, had a solid talent pool, and offered a better quality of life for employees. He narrowed it down from over 20 cities to two — San Diego and Houston — before ultimately deciding on the Bayou City.

Since officially relocating, Hinshaw says he's fully committed to the city's innovation ecosystem. BUCHA BIO has a presence at the University of Houston, Greentown Labs, and the East End Maker Hub — where the startup is building out a new space to fit the growing team.

"By the end of this month, our laboratories will be up and running, we'll have office space adjacent, as well as chemical storage," Hinshaw says on the Houston Innovators Podcast. Listen to the episode and read more.

Kelly Klein, development director of Easter Seals Greater Houston

A nonprofit organization has rolled out an esports platform and event to raise awareness and funding for those with disabilities. Photo via Easter Seals

For many video games is getaway from reality, but for those with disabilities — thanks to a nonprofit organization —gaming can mean a lot more. On Saturday Dec. 3 — International Day of Persons with Disabilities — from 1 to 9 pm, Easter Seals Greater Houston will be joining forces with ES Gaming for the inaugural Game4Access Streamathon.

Gaming helps enhance cognitive skills, motor skills, improve mental well-being, and can help reduce feelings of social isolation due to the interactive nature of playing with others.

“This is really a unique way for (people) to form a community without having to leave their house, and being part of an inclusive environment,” says Kelly Klein, development director of Easter Seals Greater Houston. ”The adaptive equipment and specialized technology just does so many miraculous things for people with disabilities on so many levels — not just gaming. With gaming, it is an entrance into a whole new world.” Read more.

John Mooz, senior managing director at Hines

Levit Green has announced its latest to-be tenant. Photo courtesy

Levit Green, a 53-acre mixed-use life science district next to the Texas Medical Center and expected to deliver this year, has leased approximately 10,000 square feet of commercial lab and office space to Sino Biological Inc. The Bejing-based company is an international reagent supplier and service provider. Houston-based real estate investor, development, and property manager Hines announced the new lease in partnership with 2ML Real Estate Interests and Harrison Street.

“Levit Green was meticulously designed to provide best-in-class life science space that can accommodate a multitude of uses. Welcoming Sino Biological is a testament to the market need for sophisticated, flexible space that allows diversified firms to perform a variety of research,” says John Mooz, senior managing director at Hines, in a press release. “Sino is an excellent addition to the district’s growing life science ecosystem, and we look forward to supporting their continued growth and success.” Read more.Read more.