One area that I have not touched on recently is the Compliance & Governance Modules attributes. I think the key attribute that makes People, Ideas & Objects more functional and higher in performance is the Military Command & Control Metaphor that is incorporated in the Draft Specification.
Lets face it, the hierarchy is in control and has been extremely effective and efficient for over 100 years. It has been the great innovation of the Twentieth Century and deserves more respect than what I frequently belittle it as in this blog.
It also needs to know that it's time to go. Retirement is the right thing to do for the global economy to proceed in new organizational directions and methods. This is also what I think this current economic depression is. The old dying off for the new to take over.
What is the "new" and what can it do to replace the inefficiently efficient hierarchy. If we consider the "installed base" of how things operate around the world. Our Governance Model will have to be a method of organizational structure that competes with a very well established culture. And that is what the Military Command & Control Metaphor (MCCM) is capable of doing. And why it is selected as the alternate Governance structure of the People, Ideas & Objects software application modules.
The advantages we gain in adopting the MCCM are significant. The Joint Operating Committee is the organizational representative of the oil and gas partnership. A partnership that operates systemically and culturally throughout the industry. Occasionally some oil and gas assets are owned exclusively by one producer, but those situations are rare. When it comes to risk mitigation and extending the aerial extent of the operations, partnerships are a necessity.
The cultural equivalent to the hierarchy is the MCCM. People understand the rank and file of the Military far sooner then they are exposed to a hierarchy. For at least half the population, the MCCM is well ingrained by the age of five.
One advantage we see in representing a property with an MCCM. Traditionally the ability for the one producer that is designated operator is required to undertake all the necessary capabilities to manage the property. This has lead to the building of redundant and mutually exclusive capabilities in each and every producer firm. This creates the false expectation that the industry needs more talent. Whereas I think there is concurrence in the industry that it needs to more effectively deploy the resources they have, more so then acquiring new talent.
If there were a pooling of the resources of the partnerships. Then the MCCM will enable the pooled resources to operate in much the same fashion as NATO's member countries assign resources. What country is willing and capable of helping out and then the planning and assignments can be parsed out. What is necessary for these to happen is the elimination of the designated operator classification, and an ability to cost the pooled contributions to each producer in their correct or equalized ownership share. These are done in the
Partnership Accounting Module of the People, Ideas & Objects Draft Specification.
A critical part of the success of the MCCM is the
Community of Independent Service Providers (CIPS). They are the authors of the People, Ideas & Objects application and the people that will be providing the resources to be pooled in the JOC. They, operating their own independent services business', with the People, Ideas & Objects software in which they designed, are constantly enhancing, are the people that the producers of the JOC will be looking to fill the various and necessary roles.
I think the concept of using the Military Command & Control Metaphor is ready, and should be used in the Governance Framework of the oil and gas industry. These are the ideas that are included in the vision as detailed in the
Draft Specification of the People, Ideas & Objects software application. Two related concepts that should be discussed soon are the enhanced division of labor and the natural separation of markets and firms. With the JOC being the market, and the producer of course being the firm. Please join me
here in this worthwhile cause and I'll certainly do my best to make sure this content finds the people that will make this happen.
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