McKinsey imposes آ‘Cut and Pasteآ’ solutions for ONGC

Vol 3, PW 25 (19 Jan 00) People & Policy

Middle managers at ONGC are accusing the US consultancy McKinsey of trying to implement cut and paste solutions in their effort to reform the organisation.

This report learns that the groundswell of opinion against McKinseys reform programme has reached such fever pitch that there is now open talk of ditching the companys much-vaunted Organisational Transformation Project (OTP), which was introduced with the support of Chairman Bikash Bora. Much of the resentment against McKinsey centres on an individual consultant (Rudy), who is charged with the ONGC brief.

Middle-to-senior officers are united in their opinion of Rudy as a loud-mouthed know-it-all who is insensitive to existing working practices. He is hated, an ONGC officer tells Petrowatch, In every meeting he expresses a view which derides our technical capability.

Within ONGC there is widespread belief that McKinseys failure to understand ONGC is responsible for the corporations overall fall in net production. Officers point to the Mehsana project in ONGCs Western Regional Business Centre (WRBC), the first of ONGCs five regional centres to implement McKinsey reforms.

In September last year, Mehsana was producing 39,200 barrels a day (b/d). Today, it is producing 37,100 b/d, a drop of 2,100 b/d.

Figures due out soon suggest production will drop further, despite the discovery of pool extensions and new pays (among them Linch Pay which ONGC reckons could hold 350m tonnes of recoverable reserves). The introduction of powerless individual Asset Managers, forced to work outside ONGCs established hierarchy in terms of equipment procurement and field management, is also criticised as naأ¯ve, as these managers face obstacles from others in the hierarchy, who are committed to blocking reform.

There's no doubting it: the knives are out for Mckinsey.