Project Portfolio – Team-Based Organization

Encor Inc. - Oil and Gas Production Company 1991-92

Objectives

Encor needed to significantly lower its cost of production and operations, and at the same time reduce the time it took to get new ideas implemented. In order to achieve these objectives, Encor implemented a team-based organization throughout its exploration and production division.

Fall Line’s Role

Fall Line developed and led the implementation plan for the team-based organization. Key steps included the development of an implementation strategy, facilitation of start up meetings for all teams, coaching of executive leaders and team leaders, training in team problem solving and decision making for teams. We established an implementation committee that identified and managed issues, and led progress reviews to ensure the process stayed on track.

Results

The team-based organization produced remarkable results: in the first year, production volumes were 18% over budget, production expenses were 15% under budget, G&A expenses were under budget, and on average wells were tied in and brought under production in 18 days compared to the 25 days previously achieved. In the second year, asset teams focused on building solid business strategies for their areas, while operating teams continued to reduce costs.