How maintaining performance during a downturn can attract investors
It’s no secret that oil and gas prices remain down in 2016. While the price-per-barrel has recently increased slightly, there are few signs of a significant bounce back in the near future. This spares consumers at the pump, but also means that companies in the oil and gas industry must address a market downturn. At ProSight, we understand that attracting investors is imperative no matter the price-per-barrel, and one way to keep the capital flowing is for companies to maintain a high standard of performance and efficiency. So what does this look like in the real world?
Like any industry that moves and uses huge quantities of raw materials, oil and gas companies usually have large amounts of data. Knowing how to parse this data, and derive valuable information from it is key if leaders hope to see their company hit and pass performance markers. To understand which data is important, it’s helpful to ask three questions:
1. How is performance measured?
2. Which decisions lead to success?
3. How does data provide information that leads to wise decisions?
Analysts and managers who approach every new piece of data armed with these questions will have a strong basis to guide their firms toward impressive performance standards. In many cases business intelligence (BI) software tools can help companies get a handle on all of their key information quickly and efficiently.
Maintaining and improving company-wide performance requires good top-down management and sound governance. Here are a few ways that executives, managers, and supervisors can ensure that their teams are meeting or exceeding requirements:
- Basing strategic decisions on data, analytics, and accurate reporting
- Using performance management tools to guide employees toward their goals
- Creating and maintaining clear incentives for high performance
- Enacting long-lasting programs through consistent implementation and attention to detail
By creating and maintaining high standards and using metrics insightfully to measure progress, a company’s performance will speak for itself. This will encourage investors to pick the best teams (and create the best practices) for when fossil fuel prices rise again.
For more information about ProSight Specialty Insurance’s programs for Oil & Gas Contractors, please contact Sandye Dohm at SDohm@prosightspecialty.com.