Happy Monday – we’re kicking it off with our 6th Deadly Sin of Oilfield Service Companies post. This week, it’s all about management by crisis.
The 6th Deadly Sin:
Management by Crisis
The Energy Services industry is one with a history of crisis management. The well is plugged with sand, the well fills with water, the compressor seizes up and stops working, etc. When crises occur, crews mobilize, time is of the essence and the financial implications are secondary.
VistaVu once had a client with a multi-million dollar drilling rig laying in the yard, unable to go out and work. Why? Because a window for the dog house hadn’t been ordered.
As President & CEO of VistaVu, Jory Lamb sees it - when you’re always in crisis mode, it’s hard to think about the future. Habitual management by crisis results in poor employee morale, reduced product or service quality, lack of consistency in delivery to the customer, and lower profitability.
Given this, it’s important to have a system that looks ahead and alerts you well before an issue becomes a crisis. Lamb recommends that companies pay particular attention to gross margin, deviation from budget, outstanding receivables, preventative maintenance and employee certifications.
