III Change and Innovation Management Model i. Integrating Change Management with Innovation Exxon’s change management model is a disciplined management framework known as the Operations Integrity Management System (OIMS) (Exxon Mobil, n.d., para. 2). With OIMS, Exxon describes their commitments to safety, security, health, environment, and product safety (Exxon Mobil, n.d., para. 2). Specifically, OIMS includes eleven elements across Exxon Mobil, which considers design, construction, and operations in each element (Exxon Mobil, n.d., para. 3). The management team at Exxon integrates change management within their organization by upholding the OIMS framework, to address and mitigate their industry’s intrinsic risks (Exxon Mobil, n.d., para. …show more content…
5 - 16). In element I, for management accountability, managers are directly responsible for encouraging the adoption of corporate initiatives within their direct area of control, which is essentially a trickled-down approach (Exxon Mobil, n.d., para. 5). In element 2, for risk management, qualified and experienced individuals must continuously review and assess risks, and suggest mitigating actions to mitigate the risk or solve the issue entirely (Exxon Mobil, n.d., para. 6). Then, the acceptable risk moderating changes and innovations require documentation on the risk ledger (Exxon Mobil, n.d., para. 6). In element 3, …show more content…
11). Essentially this element covers the evaluation and management of all changes in operations, procedures, standards, operating plants, and within the organization to keep risk at a manageable level (Exxon Mobil, n.d., para. 11). Furthermore, this element deals with the approval, review, and implementation of temporary and permanent changes (Exxon Mobil, n.d., para. 11). In addition, this management of change process addresses the authority to approve changes, analysis for operational integrity, ability to comply with regulations, procurement of applicable permits, management of change documentation, time scope limitations, and risk reducing measures (Exxon Mobil, n.d., para.
Exxon Mobil is world’s largest publicly traded integrated oil company serving companies in more than 200 countries worldwide. Standard and Poor’s stock report for Exxon Mobil indicates that Exxon’s global functional organization and substantial diversification helps mitigate its exposure to business risk and margin volatility.
Change management in the form of policy that empowers employees to make decisions about product development and ensures the decision focus aligns with the grand strategy. The key success factors lie in maintaining high product quality, high product performance, and keeping track of what the competitions is doing. Risk is quite low and manageable through practices that include ensuring the market needs and wants are met and that quality control is applied during program development and delivery.
ExxonMobil is an American international oil and gas corporation. The company’s financial perspective focuses on improve the values of the company and growth in sales revenue.
Exxon Mobil is a great example of a corporate giant. It all started in 1870, when JD Rockefeller founded U.S. Standard oil a company that will go on to be the most profitable in the world. In 1911 the company split up into 34 different companies, amongst these companies was Vacuum oil company that will later be called Mobil Oil and Jersey Standard which was renamed to Exxon corporation. In 199 the two companies decided to work together again, this was the birth of Exxon Mobil.
Prior to the year of 1999, Exxon and Mobil were the two largest American oil companies, which were direct descendants of the John D. Rockefeller’s broken up Standard Oil Company. In 1998 Exxon and Mobil signed an eighty billion dollar merger agreement in hope to form Exxon Mobil Corporation, the largest company ever created. Such a merger seems astonishing, not only because it reunited parts of Rockefeller’s Standard Oil Company, but also because it would be extremely difficult for the Federal Trade Commission (FTC) to approve this merger due to its size and importance in the oil market. In fact, it took the FTC an entire year after the merger was proposed to make a decision due to its rigorous analysis in the product and its geographic market, the concentration of the oil market, the potential anticompetitive effects of the merger, the effects towards their growth and labor force, and lastly, the likelihood of entry and the efficiencies that may affect anticompetitive concerns. Although all of these notions are played a role in the analysis of the merger, it is important to remember that the merger’s result efficiencies did outweigh the the anticompetitive risks that were involved, especially since the oil market was headed towards decreasing prices to expand production.
We have been engaged to audit the financial statements for Exxon Mobil Corporation (ExxonMobil) and assess the effectiveness of their internal controls for the fiscal year ended December 31st, 2010 in compliance with the laws of the state of Texas and the standards set forth by the Public Company Accounting Oversight Board (PCAOB). In the previous memo sent, we outlined the client’s high inherent risk due to the account balances and transactions, foreign currency translations and the complexity of accounting for and auditing the client’s vast oil reserves and inventories. This memo will address preliminary assessment of control risk and the appropriate level of detection risk given the forgoing conclusions on inherent risk, audit risk and control risk.
The purpose of this report is to reflect the practices of the company and proffer suitable organizational components that can help the company manage the challenges and more competitive. Also, make a recommendation in order to bridge the gap between the practices and the market environment. It has been described in the literature the need for companies to undergo changes on a continual basis. Thus the importance of organizational change in today's turbulent business environment has increased.
This paper will be broken down into six sections profiling each critical part of implementing and managing change in an organization. The sections included are; outline for plan creating urgency, the approach to attracting a guiding team, a critique of the organizational profile, the components of change, and how to empower the organization.
Rather, it is centered around comprehension the key risks an organization confronts then going for broke at the best time in the wake of utilizing the most suitable safety measures (Valderrey, 2016). Even in the best of times, in the event that you are to oversee risk successfully, you should make to a great degree decision making ability calls including information and measurements, have an unmistakable feeling of how all the moving parts cooperate, and convey that well. In the most noticeably awful of times, risk management can go into disrepair. Recorded models can come up short, liquidity can become scarce, and relationships can get to be more grounded all of a
The nature, scope and impact of change management at a strategic level; when management needs to be changed in Caribbean Motor Spares, the CEO/owner usually sets the requirements for the vacancy and place the vacancy in whichever mean he sees fit. When the vacancy is placed and CV’s are coming in, the CEO/owner then shortlist applicants. When he sees suitable applicants, they are then invited for an interview. When all the applicants are finished interviewed the best suitable applicant is then chosen to take up the role of the manager. After the manager is chosen, the owner of Caribbean Motor Spares then train the manager on how to perform tasks and what he/she needs to do to ensure all duties are carried out correctly.
Shell Petroleum Development Company of Nigeria (SPDC) is a multinational company based in Nigeria for the last 50 years dealing with petroleum products. Apart from offering exploitation and drilling of oil in Nigeria, shell has ventured in the power generation to serve the small and medium enterprises in Nigeria. The production of oil takes place in the Nile Delta region which stretches 30km2 where the company is working in 90 oil fields with a total of 1,000 oil wells. This paper provides a long term strategy that will ensure that the company will be able to expand and be able to withstand both social and political pressure
The objectives of operation, reporting, and compliance are represented in the column. Components are represented by the rows regarding the ERM. The third dimension is the entity’s organizational structure. It demonstrates clear how and how counteract low risk tolerance and high risk appetite. Risk reduction is obtained by facilitating effective internal control with a broad scope that reflects changes in the framework to risk management with ERM. The framework requires adaptability which enables flexibility due to a overlap of functions of identify, assessing, and responding to risks within operations, reporting, and compliance. Activities, information, communication should be monitored, evaluated, and identified for response are part of the ERM for effective and efficient risk management. The concept of risk appetite and risk tolerance is introduced because the identification of potential events affecting achievement can be managed. Also, the process requires communication, consultation before and monitoring and review after every decision or action (McNally, 2015). The financial principles to risk management are effective risk management creates value, integration, decision making, address uncertainty, systematic structure, and facilitated continuous improvement. The financial principles form effective and efficient management within a firm. Financial principles help ERM with risk
Since its discovery back in the year 1858 crude oil has been become one of the most sought after resources on the face of the planet. It is due to this fact that the oil industry has fallen into a rather odd category in the case of globalization and seeking out new markets, new labor and new customers. The reason being that the need for crude oil and fuel is always present therefore the product of oil in its basic sense sells itself and the companies do not have to go out and publicly advertise it in the sense that clothing lines and other commodities do. Oil companies must focus more on the matter of why an individual should buy their oil and along with other alternative fuels over their competitors even though in the end the companies products are the same thing. The company ExxonMobil has been the superior company in the oil industry for quite sometime now, and had plenty of success as individual companies before their merger in 1999. The reason for there success is partially due to the power they wield as the most successful company, leading to many new refineries around the world, making deals with smaller companies to gain access to new markets and are leading the world in alternative fuel research. However these things all come naturally to the biggest oil company in the industry, the real question is how they became the powerhouse they are now. That question can be answered by the way in which the company has not focused in globalizing their product of fuel and oil, but globalizing the image of the company company. This is achieved by focusing on charity in which they donate hundreds of millions of dollars, Foreign Direct Investment in areas in which they wish to expand by attempting to provide these impoverished areas wit...
Identify the potential risks which affect the company and manage these risks within its risk appetite;
The world is constantly changing in many different ways. Whether it is technological or cultural change is present and inevitable. Organizations are not exempt from change. As a matter of fact, organizations have to change with the world and society in order to be successful. Organizations have to constantly incorporate change in order to have a competitive advantage and satisfy their customers. Organizations use change in order to learn and grow. However, change is not something that can happen in an organization overnight. It has to be thought through and planned. The General Model of Planned Change focuses on what processes are used by the organization to implement change. In the General Model of Planned Change, four steps are used in order to complete the process of change. Entering and Contracting, Diagnosing, Planning and Implementing, and Evaluating and Institutionalizing are the four steps used in order to complete the process of change in an organization. The diagnostic process is one of the most important activities in OD(Cummings, 2009, p. 30).