How does the oil and gas investor fit in?
How does the investor fit into this software development project? Like a glove. The People, Ideas & Objects system modules we are building add a few new dimensions that will be of interest to oil and gas investors. First, as their soon to be former management cries over its un-cashed and now worthless stock options, the investor has to take control. The days of the separation between management and ownership is over. In this posting I want to provide support for the idea of the investor as the one sitting at the virtual Joint Operating Committee (JOC) table.
In the Preliminary Research Report Professor Giovanni Dosi instructed how the focus needs to be on the situation in hand. Companies apply strategic policies on a blanket basis to all the properties they own. Irrespective if the policy is of advantage to the asset or not. This can no longer be the case if we are to have innovation based on the local focus that Professor Dosi suggests is required. Recall the JOC provides this level of focus. All aspects of each and every JOC are unique to the characteristics of all others. We need to tap into this uniqueness and build upon it. When the participants are engaged in discussion there is no ambiguity as to which property is under discussion. There is also no ambiguity as to which direction the property should take. Even though the strategies of participant are individually unique, consensus is driven by financial motivations. If these JOC participants are the actual investors, we have eliminated the management, and tied the incentives of the property to the decisions made by those that are the benefactors.
The Financial Marketplace module provides some of this uniqueness. Having the ability to secure bank financing based on the JOC participants ownership interest in the JOC. Not on the basis of the corporate entity. If each property were individually secured by the bank that provided all of the services just for that JOC, then we would have a highly focused team where the application of the policies are in the best interest of the JOC and irrespective of any other (corporate) considerations.
Another critical element in this software is the movement of the Compliance & Governance module to be aligned with the cultural, financial, operational decision making and legal frameworks of the Joint Operating Committee.In today's corporate environment compliance is used by management as the justification for the managements existence. The Compliance & Governance module is a fall out of the decisions made in the JOC. This alignment will provide the accountability that is missing in today's corporate environment. As I've stated in the Preliminary Research Report, the separation of governance and operational decision making is the recipe for a breakdown in accountability.
In a related discussion Carl Icahn had an interview on Bloomberg in which he was talking about the extent of the governance issue in the United States. He extends the scope of the current meltdown to not only
the financial side, but also on all corporations lack of accountability. Icahn also states "There is no accountability in companies and boards. You've let the fox guard the hen house." I'd be willing to bet that Icahn knows the better solution would look very similar to the People, Ideas & Objects Draft Specification.
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