REFORM MOVES ONE STEP AHEAD AT ONGC

Vol 3, PW 12 (07 Jul 99) Exploration & Production
     

Bikash Bora, Chairman, ONGC, has formally set in motion a reform process which - in time - will transform the organisation from a bureaucratic monolith to a leaner, fitter and more accountable company.

On 4 June, the ONGC chief put his signature to a radical McKinsey-inspired overhaul of ONGCs Western Regional Business Centre (WRBC) - one of five regional business centres (call them pillars) on which ONGC stands. The order - which "comes into force with immediate effect" - dispenses with the traditional management structure and replaces it with an "Asset Based Model".

Out goes the bureaucratic and time-consuming chain of command. In its place come three new class of ONGC managers: Asset Manager; Basin Manager and Service Manager.

Each will be asked to sign a "Performance Contract", and each will be individually accountable to a new "Performance Management Forum" (another name for the Board). Gone, it is hoped, are the days when middle managers could buck responsibility for bad decisions by making sure they got lost in red tape.

"With the implementation of the Asset Based Model", reads the order, "the concept of functional business groups at WRBC will cease to exist". After the Neelam oilfield in the Bombay Offshore, ONGCs WRBC is the second branch of ONGC to adopt the Asset Based Model proposed by McKinsey.

Its only a question of time before the whole organisation is overhauled in the same fashion.

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