Project Delays, Budget Overruns Could Cost Oil and Utility Industries Trillions of Dollars

by CFO Innovation Asia Staff, 12 July 2012

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topics:
Budgeting and Planning Management

tags:
Budgeting and Planning capital projects oil and gas industry utilities

Regardless of the number of contractors and suppliers, better methods of collaboration and data transfer need to be agreed upon in upfront planning.

Accenture says companies must have the capabilities to collect data at all levels and then leverage advanced analytics to gain insight from that data.

At a basic level this includes comparing estimates on past projects, reviewing variances, and identifying causes of the variances to avoid repeating them.

One of the key areas for improvement is the transition from the construction phase to an operating asset.

It requires better collaboration across the teams responsible for planning and building to commissioning and start-up of the project.

Finally, developing a talent strategy early on is essential, and there are multiple elements to consider, including leadership, organisational culture and organisational structure.

MORE ARTICLES ON BUDGETING AND PLANNING

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