Solution
Executive Summary
This assignment aims to explain how a change process while guaranteeing that the team leader and members can implement it by leverage on the skills and capability possessed. This evaluation has focused on a new category management strategy by ADNOC. Through a focus Abu Dhabi National Oil Company (ADNOC), the best practice in change implementation has been evaluated. The selected category of spend is sourcing for Information Technology (IT) system as part of their operations. Although they now have a system that enables suppliers to sign up and participate in procurement, they still need to update their sourcing strategy. ADNOC intends to improve its sourcing strategy by investing in the appropriate technology. A team selected from the PS&M would enable the deployment of this category under my guidance. To achieve the objectives of this report, various change management techniques, as well as leadership training to give leaders the skills they need to execute category management, have been used. This is relevant to drawing meaningful conclusions from both quantitative and qualitative data.
The outcomes demonstrate that for the category management to be successful, the team must possess the necessary change management abilities. This presupposes that the leaders have total control over applying category management. These skills include the ability to embrace diversity and incorporate a range of sources. The success of adopting category management will also depend on the capacity of the assigned team to embrace innovation as a skill. The best practice also involves involving leaders in determining how the change will impact various stakeholders based on their influence and level of authority during the change process. This would make it possible to implement the best transformation strategy comprehensively.
Ultimately, the observations and conclusions result in the development of several ideas, including;
- Within six months, PS&M personnel will be provided with chances for capacity building through partnerships with educational institutions to gain knowledge and skills for implementing category management.
- The PS&M would become more motivated in the long run by providing recognition and benefits for pursuing category management implementation.
- Within a year, an effective change management strategy would be pursued, focusing on tracking the change and spotting change resistance
Table of Contents
1.0 Introduction. 3
1.1 ADNOC Organisation Background. 3
1.2 Identified Category Management 4
2.0 Change Management Approach. 5
2.1 Introduction of the Required Change Process. 5
2.2 Strengths, Weaknesses, Opportunities, and Threats (SWOT) of the Change Management 8
2.3 Process of the Change Management. 9
3.0 Stakeholders Analysis. 11
3.1 Identifying and Analysing Stakeholders. 11
3.2 Communicating and Obtaining a Buy In for the Stakeholders. 13
4.0 Process of Implementing Change. 14
5.0 Ensuring Team Leader and Team possess Relevant Skills for Implementing the New Category (Managing People) 16
5.1 Approach of Leading the Team.. 16
5.2 Skills for Working Together Effectively and Successfully. 16
5.3 Team Diversity. 18
6.0 Conclusion and Recommendations. 19
References. 21
Figure 1: ADNOC Organisation Structure. 4
Figure 2:Drivers of Change Model 6
Figure 3:Summary of Forces for and against Change. 8
Figure 4:Summary of the ADNOC Stakeholders analysis 12
Figure 5:ADNOC Stakeholders Analysis. 13
Figure 6:PESTLE Analysis Summary. 15
Figure 7:Kotter 8 Phases of Change Implementation. 16
Figure 8:Tannebaum & Shmidt Model 17
Figure 9:Personality Traits summary. 18
Figure 10:Vroom-Yetton Jago Decision Model 19
Table 1:Summary of the Drivers of Change in ADNOC Organisation. 7
Table 2:SWOT Analysis. 9
Table 3:Gantt Chart 10
Table 4:Gantt Chart 11
Table 5:Summary of the Stakeholders Analysis. 13
Table 7:Summary of the RACI Matrix. 14
1.0 Introduction
1.1 ADNOC Organisation Background
In this report, the organisation of focus is Abu Dhabi National Oil Company (ADNOC). This is for understanding the impact of contract terms and conditions on distribution of risk and power with their suppliers. This is an organisation which began its operation in 1971 and today is ranked as the leader in diversified energy group which is owned by Abu Dhabi Government (ADNOC, 2022). The organisation network of holistically integrated business has based their operations across the entire energy value chain assisting their capacity for meeting overall demands of the consistently changing energy markets. For remaining competitive, the organisation has allocated $15 billion for advancing and accelerating lower-carbon solutions, investment in new energy solutions and decarbonisation technologies for lowering their carbon intensity with 25% by 2030 and successfully facilitating their NetZero by 2050 target.
The company has a network of fully operational companies that operate throughout the entire hydrocarbon value chain, handling tasks including exploration, production, processing, storing, refinement, and supply in addition to manufacturing a wide range of petrochemical products.
I work as a Contract Engineer for ADNOC Offshore, one of the company's divisions. The offshore division of ADNOC is responsible for the delivery and development of oil and gas resources in the waters surrounding Abu Dhabi. With OPEX and CAPEX, ADNOC Offshore spends over 3,000 million dollars annually. The organisation structure is as illustrated in figure 1;
Figure 1: ADNOC Organisation Structure
1.2 Identified Category Management
The deployment of the iSourcing system, a technology-focused procurement procedure, was chosen as the category management in this study. The need for oil and gas has significantly expanded in the modern era since the Covid-19 epidemic. As a result, ADNOC is forced to spend money on equipment to help them process and refine more oil and gas products. In light of this, the team leader's responsibility is to see that an iSourcing system is in place and can be utilised to purchase the new machines that the company needs to upgrade its operations. Locally in UAE, regionally in the Middle East, and internationally in Western nations, this would apply.
This project aims to produce a report outlining the implementation of the change approach. This is done while ensuring the team members and leader have the necessary abilities to carry out the plan successfully. Implementing the new category management strategy is the kind of change being sought. The learner will be the team leader throughout the full category management process since a team has been chosen to oversee the deployment of iSourcing. The practical approach would be utilising various tools and strategies that demonstrate leadership and best practices in change management, along with a focus on the category management data from the ADNOC firm.
2.0 Change Management Approach
2.1 Introduction of the Required Change Process
In its Procurement Supply and Management (PS&M) budget, ADNOC had allocated roughly 10 million UAEis before the COVID-19 epidemic. Up to 5,000 domestic and foreign providers are currently utilised in this. Because of the significant financial allocation in PS&M, the ADNOC sourcing method is crucial to their operations in this scenario. Logistics, equipment, and facility administration are all purchased separately by the organisation, all of which fall under the organisation's primary spending categories of computers and technical systems. As a result, they lack a centralised system that would allow all departments to be involved in aiding the procurement procedure (CIPS, 2020).
The Burke-Litwin Model (Coruzzi, 2020) can pinpoint the internal and external factors that contributed to the identified change. This model ranks the many change drivers according to their importance and provides evidence of each one in figure 2;
Figure 2:Drivers of Change Model
When taking into account the ADNOC organisation and indicated change, these elements have the following effects, as stated in Table 1:
Table 1:Summary of the Drivers of Change in ADNOC Organisation
| Factors of change |
Explanation |
| External environment |
Supply chain networks have been significantly impacted since COVID-19. ADNOC's ability to replenish stock, equipment, and machinery has been affected. Therefore, ADNOC would participate in strategic alliances by including diverse actors and intermediates in the complete value chain through iSourcing |
| Individual and oganisational performance |
ADNOC's investment in iSourcing would reduce PS&M turnover, everyone's performance, and supply chain network satisfaction. |
| Leadership |
To ensure iSourcing success, the PS&M will lead and manage efficiently. This inspires and guides other organisations to iSourcing success. |
| Mission and strategy |
The achievement of ADNOC's aim to provide high-quality oil and gas products would be ensured by the deployment of iSourcing. The justification for this is to quickly and effectively engage highly qualified vendors. |
| Organisation culture |
Implementing iSourcing would promote the collaborative and teamwork-oriented organisational culture of ADNOC. This is due to the platforms offered by iSourcing that provide suitable options for teamwork and collaboration. |
| Task requirements and individual skills |
Employees at ADNOC lack the knowledge and skills necessary to deploy iSourcing. This deficit might be filled by offering possibilities for professional advancement. Implementation of the change would be successful. |
| Employee motivation |
This report's proposal suggests that providing monetary and non-monetary rewards is necessary to encourage people to adopt iSourcing. This is for employing remarkably contemporary systems of practice. |
Assessing the change's supporters and detractors is also crucial. The Lewin Force Field Forces (Gaivoronskaya et al., 2021) should consider these factors. Figure 3 shows that change-supporting variables were 12 and 8, respectively. The adjustment is appropriate in this case.
Figure 3:Summary of Forces for and against Change
Since the COVID-19 pandemic, ADNOC has struggled. Flechsig et al. (2022) say delayed service delivery and internal process automation reduce efficiency. Thus, integrating internal procedures, evaluating vendors, and monitoring the sourcing process with iSourcing will benefit ADNOC. A successful and efficient supply chain would result—in situational leadership to handle all everyday situations. Mulyana et al. (2022) define this as improving cost reduction, client satisfaction, and complex and critical processes. The ADNOC organization's automation and flexibility would improve. This involves learning, teamwork, and smart buying. Those fighting against iSourcing face massive supply chain challenges. Yevu et al. (2021) projected network security, system reliability, and persistent unauthorised access difficulties for ADNOC. This would hurt ADNOC's reputation with stakeholders, make persuading clients hard, and alienate supply chain actors. Transformational leaders may remedy this by creating enduring, positive change in their followers and moulding ADNOC PS&M followers into leaders.
2.2 Strengths, Weaknesses, Opportunities, and Threats (SWOT) of the Change Management
Additionally, it is crucial to comprehend the Strengths, Weaknesses , Opportunities, and Threats associated with the present strategy and the new category strategy for the change implementation to succeed. To do this, CIPS (2022) recognizes SWOT analysis as influential in capturing various decisions taken and would aid in guiding and educating category management. Table 3 illustrates the SWOT Analysis;
Table 2:SWOT Analysis
In conclusion, as shown in Table 1, while the existing strategy has strengths such as giving opportunities for comparison, transferring risks, and extensive evaluation, it is time-consuming and expensive. Using iSourcing makes it feasible to provide chances for risk transfer, pricing comparisons between suppliers, and finding the best items. Furthermore, it ignores sustainability-related aspects essential to contemporary procurement strategies (Hazaea et al., 2022). To equip staff members with the necessary abilities to use the new system, ADNOC must pursue security measures and ongoing capacity development. To handle the interference, a leader must promote the consultative approach in the sourcing process. To continuously acquire new skills and information, relevant L&D plans have been granted.
2.3 Process of the Change Management
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