If I had just one word to describe how I feel about the state of oil and gas, given all that has transpired over the past 12-18 months, it would be ‘encouraged’.
The industry has faced unprecedented challenges—from the temporary collapse in demand caused by the pandemic to an increasing need to cut costs and decarbonise. It should come as no surprise that organisations have risen to the occasion. I am more confident than ever that we are on the path to a prosperous and sustainable future.
Amid this trying period, Siemens Energy has undergone a transition of its own. In September 2020, we officially spun off from Siemens AG and became a publicly traded independent entity. We are now one of the only pure-play energy companies in the world with a footprint spanning the entire energy value chain—from hydrocarbons to e-fuels (e.g. hydrogen, methanol) and renewables.
As the EVP of the Industrial Applications business—which primarily serves the oil and gas and industrial verticals—I have had the opportunity to see first-hand the tremendous progress the industry is making as it drives toward a low-carbon future. During our listing process and through my experience interacting with colleagues, customers and world leaders, I have learned several lessons I believe every company tasked with navigating the transition can benefit from.
Believe in the power of people
Much of the dialogue surrounding the energy transition today focuses on operational strategies—and more specifically, on what technologies need to be deployed to meet carbon reduction targets. The human element of the transformation equation is often given less attention. But people are the true drivers of change. For an organisation to be successful, it must foster an open and cooperative culture where employees feel empowered to ‘speak up’, to learn from one another, thrive and reach their full potential.
In this regard, the importance of inclusion and diversity cannot be overestimated. Inclusion is not just a value in itself, it is directly related to the company's success. Multiple studies have shown that organisations with a diverse workforce are more productive and innovative. Also, potential shareholders are more likely to invest in a company that sets credible priorities on inclusion and diversity.
Although I am proud to have 40pc of female leaders in my leadership team and representatives from eight different cultures, I believe there are additional steps we can take to make our company a more inclusive place to work. Last November, Siemens Energy appointed Maria Ferraro as our chief inclusion and diversity officer. Maria is working with our teams worldwide to meet a clear target: by 2025, 25pc of our managers at the first and second level will be women.
In addition to diversity of gender, ethnicity and beliefs, we must also strive for cross-generational diversity by bringing together different perspectives and experiences from a broad range of backgrounds. This holds especially true in oil and gas, where there is a pressing need to transfer domain expertise from older professionals to young workers just beginning their careers.
The industry cannot afford to lose valuable knowledge because of discrimination. We must strive to make the best use of everyone’s experience and talents.
Transformation requires a new way of thinking
To successfully navigate the energy transition, leaders and managers will also have to demonstrate that we can unlearn old ways and learn new ones—that is, adaptability. After all, change can only be shaped by managers who exemplify it.
During a career, we accumulate many routines and views that help us get things done; however, some habits can obstruct our view and prevent us from trying new methods. If we can learn anything from the Covid-19 pandemic, it is that virtually any challenge can be overcome if we are willing to adapt and change.
At Siemens Energy, we encourage our managers to ‘live the change’ by keeping an open mind and seeking new information and differing perspectives and approaches to ensure that we make the best decisions.
This includes encouraging all voices to speak up, gather regular feedback and engage in dialogue at eye-level with teams. The prerequisite for building this type of relationship is trust. Employees need to know that they will find an open ear and, if needed, advice from their superiors.
Managers, on the other hand, must trust that things will work without their direct supervision. This means saying goodbye to the old misconception that managers can do everything better and know the answers. Instead, they define the framework and desired results of work and then coach and support employees on the way to the desired goal.
Embracing a more collaborative mindset
The idea of unlearning old ways and adopting new ones also applies to how we engage externally with customers.
The energy transition is a social project in which a wide range of interests must be negotiated to find a balance between sustainable, affordable and reliable energy. The path to a low-carbon society will require co-creation and collaboration on the part of many different stakeholders. To create this cooperative environment, we must all strive to eliminate siloed thinking and aspire to serve a common cause.
Politicians, the energy industry and society must find joint solutions to combine the world's growing demand for electricity with sustainable development. For the success of the energy transition, the security of supply is just as important as the expansion of renewable energies.
At Siemens Energy, we work with our customers around the world to develop energy roadmaps and build long-term partnerships. For example, BASF and Siemens Energy signed a memorandum of understanding earlier this year that focuses on achieving ambitious climate targets. For us, this partnership represents a key step toward pursuing strategic goals, namely low-emission or emission-free generation of electricity and heat, transmission and storage of electricity, a smaller carbon footprint and lower energy consumption in industrial processes, as well as shaping a sustainable hydrogen economy.
Turning possibilities into reality
At Siemens Energy, we believe our company's success and that of others navigating the energy transition will depend on people and how we actively listen to each other. Technologies are a prerequisite, but ultimately, people will make the difference and drive the industry’s transformation.
Only after we embrace our differences in gender, background, age, nationality, affiliation and ability can we unleash our full potential and turn possibilities into reality. We must move with agility, leave silos in the past and courageously team up to build trust and powerful partnerships.
I am proud to be part of a leadership team that has put these values into practice, and I encourage other leaders across the industry to do the same.
Thorbjoern Fors is the executive vice president of Siemens Energy’s Industrial Applications Business
Comments