ABSTRACT
Human Capital Readiness is the most complex and onerous element of Operational Readiness (OR) owing to the dynamic nature of human factors. It is now recognised that human capital has become one of the critical sources of economic growth. Operational Readiness therefore relies heavily on achieving Human Capital Readiness. GP Strategies argues that Human Capital Readiness failures have caused delays in 73% of projects and budget overruns in 64% of projects in the Oil and Gas industry.
Human Capital Readiness (i.e., readiness of human resources and related functions and processes) not only supports the achievement of an Operational Readiness, but also plays a critical role in achieving a state of Operational Excellence soonest after Start-Up. The latter entails improvements to the operational environment and involves “lean operations” based on Lean Thinking concepts.
Chapter 7 also discusses the probable adjustments to the business/operational environment focusing explicitly on Human Capital, such as (a) Strategic Business Plans, (b) Resource Envelope, (c) Business Alignment, Workplace Ergonomics, (d) Organisational Design, and (e) Change Management. A roll-out of Human Capital Readiness in Gas and Petroleum megaprojects is likely to take 22 months.
