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PART3

objectives summary

In pretext of the current business plan’s objectives, some key trends have been observed. The business model clearly depends upon the assumption that the integration of the automated walking rig design into the existing system will dramatically increase the company market reach and would help gain investor confidence into the company. Patterson-UTI Energy, Inc. already has an arsenal of more than 325 working rigs, and the addition of these automated rig models would possibly increase the available drilling sites as this technique revolutionizes fracking. One of the ethical risks attached with it is the killing of workers jobs. But true innovators do not see this is a disadvantage, but find more ways to keep the workers’ jobs in the company which is exactly according to Patterson-UTI Energy’s vision. Another assumption in this venture is that the legal regulations would allow fracking into new sites; it is a relatively safe assumption considering the multiple pollution free benefits of automated walking rigs. But since the rig does not produce as many jobs as the normal rigs too, there is a risk of rejection on these values too, as it does not open up local jobs. The company needs to find a way to keep both the jobs of the workers and the benefits of automated rigging to truly outdo the competition.

In order to evaluate some of the strategic objectives, we consider the following four quadrants:

· Shareholder Value or Financial Perspective

· Customer Value Perspective

· Process or Internal Operations Perspective

· Learning and Growth (Employee) Perspective

Shareholder Value or Financial Perspective

The shareholder value or financial perspective demands the economic considerations of the project. It asks important questions like: Is the scheme financially viable? Will it generate profits in the long term? It evaluates the proposal based on if it maximizes product value from a shareholder’s perspective. The company owes many ethical obligations to its shareholders but the first of them all is the generation of adequate profits (Balanced Scorecard Software - BSC Designer, 2010). These objectives depend upon factors like market share of the company, revenues vs. cost analysis, profitability of the venture over the long run and most importantly, the competitive position of the investment compared to one’s rivals. Considering this perspective, some of the clear strategic objectives is:

· “Ensuring that the automated walking rig investment scores us enough market share against our competitors to justify its financial investment in a period of 2-3 years. The percentage of increase in market share is determined at least 10% within the next 2 years”.

· “Guaranteeing that the investment truly penetrates the intended market, with the proper advertising and legal means in the next 3 years. This means that we need atleast 20-40% of the entire target audience to get exposure to the product within 3 years.”

· “Warranting that the addition of the automated rig improves on the company’s existing performance. If the projected success is viable, then shifting of existing rigs to automated ones is another goal for the next 10 years. This means that the company’s performance records’ percentage increase must be recorded and the relevant data should help switch to a better alternative of the new rigs”

Customer Value Perspective

This is another major perspective when considering any business investment or expansion. If the product does not satisfy the intended market, then the investment is a simple failure. Even the financial success for the shareholders depends upon the positive review of the customer related to the product (Cretu and Brodie 2007). As this is a new drilling machine, most customers will not be happy to risk it out despite the obvious advantages. Therefore, in light of these circumstances, some of the clear strategic objectives are:

· “Advertising of the product into the market with proven success indicators to instil trust within customers in the next 6-8 months with at least 50% positive response into the market. In case of negative response, the strategy must be revaluated.”

· “Ensuring the smooth operations of the automated rig and highlighting its benefits over the old rig towards existing clients and future customers over the next 2 years. In case of ideal targets, the benefits would be advertised with 80% positive response from the clients in a period of 2 years”

· “Ensuring that the vacuum of jobs created by the new rig is not presented as an unethical means; Presenting more opportunities for the able to earn their living in the next year. The ideal target is retaining all the jobs indefinitely. If the company has to let go of people, an alternative strategy must be developed to curtail atleast 70% of the jobs indefinitely”

Process or Internal Operations Perspective

This perspective of the process analyses some of the internal factors related to the product’s induction into the company. These “internal operations” depends upon both the operation of the machine itself, and the effect of the induction of the machine into company’s work environment performance, overall market value, technical data etc. It measures the effective productivity of the machine, so to speak. Thus, some of the Strategic objectives from this perspective are:

· Quantifying the success rate of the rig’s operation over old rigs by support from relevant data in the coming year. Thus, The success rate of the rig must be at least 30% higher than the old rig in just 3 years.

· Presenting the “package” of data reports of the performance of the new rig to both the stakeholders and possible clients to prove the competence and opportunity it offers. This must be done immediately in the next year and the response of the stakeholders must be recorded to ensure 100% success.

· Analysing the impact of the new rig over the company’s performance and the impact over overall profitability in the coming year in the form of metric data report. In case of a negative slope, the data can be further analysed to come up with a solution.

Learning and Growth (Employee) Perspective

This perspective purely analyses the employee concerns related to the project. These objectives will focus on factors like employee satisfaction, employee turnover or retention, level of organizational capability, nature of organizational culture or climate and technological innovation. The strategic objectives of this perspective are:

· Instilling employee confidence into the company by not losing jobs due to the rig and capitalizing by increasing profits, not decreasing costs and assigning jobs as soon as possible. The company will make sure that at least 80% of the old rig staff is maintained and relocated within the company.

· Making sure that the installation of the rig and its use are taught to the employees by means of rigorous educational and technical programs to ensure smooth operation by existing staff in the next few months followed by detailed programs in the coming 5 years. Within 5 years, at least 80% of the workers should be proficient in using the new rig.

· Making sure that the organizational culture promotes growth and happiness of the employees. Incentive based bonuses are an excellent way to implement this. The targets are 5-10% better performance by each branch with each successive year.

Communication Plan

The communication plan to convey these strategic objectives is essential. The purpose of this communication is the need to actualize our goals on an organizational level. The audience is the managerial body of the organization. The best way to communicate these objectives in an organizational level is by a hierarchical management scheme. Each objective could be assigned to a different department and the results and progress of that particular objective could be better evaluated. This division of objectives will ensure better performance, but it is key to communicate the indispensable linkage of these objectives to be employees. All of these objectives contribute in the success of the drill, and therefore each objective is delicately linked as a gear in a complex mechanism designed to boost the product.

REFERENCES: Balanced Scorecard Software - BSC Designer. (2010). A Financial Perspective of the Balanced Scorecard. [online] Available at: http://www.bscdesigner.com/financial-perspective.htm [Accessed 11 Sep. 2016].

Cretu, A.E. and Brodie, R.J., 2007. The influence of brand image and company reputation where manufacturers market to small firms: A customer value perspective. Industrial Marketing Management, 36(2), pp.230-240.