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Solution
Current External Trend
At Saudi Aramco, one relevant current external trend is the global shift towards sustainability and clean energy, which is driven by regulatory pressures, along with growing demand for environmental, social, and governance (ESG) standards (Aramco, 2024). With this shift, companies in the oil and gas sector need to diversify into the renewable energy and this calls for diverse leadership and management practices. To navigate into this energy transition, Saudi Aramco’s leaders need to adjust their approach to more flexible, future-oriented mindset in order to balance short term performance to support long-term sustainability goals.
Leadership and Management Development Activities
Activities on leadership and management development may have to focus on increasing agility, innovation, and environmental awareness (CIPD, 2014). For example, the trainings should focus on such activities as sustainability leadership, digital transformation and change management, enabling leaders to cope with the new operational challenges. It is important that current leaders conduct a review of the current programs to prepare future leaders to lead efficiently in managing technological disruptions, regulatory compliance and stakeholder expectations. Some of their programs could be case studies on successful energy transitions, or partnerships with clean tech firms to develop a culture of innovation and responsible leadership.
Future External Trend
The increasing adoption of artificial intelligence (AI) and automation across the energy sector is a significant external trend with significant future relevance to Saudi Aramco. With AI technology advancing, operations will be streamlined and there will be enhanced efficiency with cost reduction, but that will necessitate a workforce management and skill development (CIPD, 2024b).
Leadership and Development Management Activities
Leadership and management development programmes need to be reviewed so that leaders are prepared to manage a more digitally enabled workplace. Leaders should be provided with training on AI integration, digital strategy, and data analytics in programs, so that they can make decisions based on AI-driven insights. On top of that, leadership development needs to be geared towards developing adaptability and innovation that is a vital requirement to stay competitive in a world that is rapidly changing (CIPD, 2024c). For example, managers could be trained on AI tools for predictive maintenance or optimisation of energy production through workshops or through partnerships with tech firms. The focus should shift to upskilling employees to work with AI technologies, so that there is seamless transition to an automated operational model while maintaining employee engagement and resilience.
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