There was some actual research into productivity done by Ernst and Young (E&Y) relating to oil and gas organisations. At the risk of quoting my oft slandered economists, from the E&Y report:
organisational productivity in the sector is not being measured effectively, with 55% of respondents not measuring organisational productivity.
“This is surprising. There is much debate as to the root causes of Australia’s productivity problem but everyone agrees that productivity matters, yet not everyone is measuring it. Those organisations without explicit productivity measurement will struggle to identify and deliver productivity improvements
Surely they can’t be that dumb? David Knox, CEO of Santos, Stewards of the Gladstone Liquefied Natural Gas (GLNG) has been banging on about productivity and joined a chorus of CEOs demanding a focus on productivity from the Federal Government.
Hi David!
Derek Fischer, CEO of QCLNG, the Australian overseeing arm of the BG Group also likes to keep productivity on the agenda.
The head of BG Group’s Australian business says environmental regulations, costs and productivity will be critical issues for the UK company
Grant King, of Origin Energy, is harder to pin down. Most of what I can find (that is relevant) is hidden behind the AFR’s pay wall.
Of course if you move it one tin at a time it’s going to be pricey.
OK so why pick on these three guys? Well if you were going to throw your hat into the productivity ring it would be a good idea not to start by building three (A fourth one was apparently contemplated) separate LNG processing facilities and pipelines in the same place. What does the E&Y survey have to say about key productivity measures:
Collaboration with another firm in the same line of business is the third most important driver of organisational productivity, with each additional collaboration increasing by up to four times the odds of seeing productivity gains.
Four times you say? Well that’s pretty serious stuff. What’s that? There’s more?
Innovation is the number one driver of organisational productivity – organisations that innovate are 40 times more likely to have increased productivity increases.
Well fuck me. That would make banging on about the high cost of doing business in Australia due to the IR settings seem pretty pointless. Especially when it turns out one of the big problems (apparently) is a lack of skilled workers and prolonged approval processes.
Also important was to ensure access to a skilled workforce, through training within Australia and through measures to access overseas workers.
Seriously you moppets. There would be more precision high pressure welding operators available at better rates if you weren’t duplicating your infrastructure and competing with each other for their sign ons. I think all levels of government would be grateful to have to only process one development application rather than four.
Clearly the problem.
How dare you demand anything from government on the basis of productivity issues when you don’t even measure it yourself. I find this particularly galling as it was the investment phase of these projects and the rampant waste of their fast start mentality that drove the decline in Multifactor Productivity that allowed the whole productivity debate to get such huge play to begin with.
Thanks for less than nothing you fucking clowns.
thisisseriouscom 