Downstream Energy Transformation

Achieving high performance in a low-carbon economy

Accenture’s experience with downstream energy companies shows marked similarities in how companies have achieved successful business transformation. And while there are multiple paths to change, we believe the most successful downstream organizations will execute a formal step-process and transformation program, led from the top by executives who can focus and enable their organizations to compete through “distinctive” processes that drive value in the low-carbon economy.

Based on numerous business transformation projects with downstream energy organizations, Accenture has identified five actions that can position companies for high performance in the coming low-carbon economy.

Transformation moves start with a new strategy, followed by a corresponding shift in operating models and governance to develop the organizational capabilities that will displace the “business-as-usual” mindset and change how companies operate both across and within refineries. Companies that have achieved the most benefits have typically designed and managed a transformation through five distinct initiatives, where they:

• Choose the right executives to lead and own the business transformation, and then hold them accountable with compensation tied to program success.

• Make significant investments in specific change management and organizational capabilities that align with the new strategy.

• Provide and enforce a laser focus on a few “distinctive capabilities” or core competencies that offer sustainable competitive differentiation.

• Follow formal programs and governance models that integrate downstream processes to optimize supply, first regionally and then across the entire hydrocarbon value chain.

• Standardize and centralize transactional processes into a shared services model to reduce risk, improve service quality and control costs.