There once was an engineer who wanted a pond dug on his property but didn't have equipment to dig it nor the money to hire a contractor.
He analyzed the situation and devised a plan to get his pond dug for free.
Because he and his neighbors all lived within a 100-year flood plain, there were low spots in everyone's yards that they might want to fill. There also was a church being planned nearby that would need fill-dirt to elevate its foundation slab.
So the engineer sold topsoil to his neighbors-much cheaper than they could have bought it otherwise-and sold the balance of the soil to the church. Then he used the money from dirt sales to hire a contractor to dig the pond.
The neighbors and the church-builders were delighted to get such cheap dirt; the contractor was happy to have the job, especially one where he could deliver the dirt nearby, saving dumping and transportation fees; and the engineer got his pond for free.
That's a win-win-win scenario.
Defining the pond
The oil and gas industry also has numerous problems that need solving, perhaps with similar out-of-the-box thinking. Three current trends are particularly troublesome: the market's rise-and-fall cycle with its accompanying industry staffing dilemma (OGJ, Oct. 29, 2001, p. 19), an aging workforce that necessitates recruitment of younger personnel, and the critical need for the industry to maintain a positive public image. These elements all play off one another in a number of ways.
The "Catch-22" when recruiting younger personnel, for example, is the industry's sometimes-negative image and the fact that an employee's future in this industry may not be perceived as secure because of the boom-and-bust cycles. Although the up-and-down cycles recently have been shorter, they still plague us and must be addressed.
Likewise, oil and gas companies invest millions of dollars seeking a good corporate image and the acceptance of the public-a valuable intangible that affects legislative progress, company growth, and profits and that also engages personnel, engendering in them loyalty and a sense of company pride, important in attracting good employees.
One creative solution
In 2001, another industry hard hit by the US economic downturn-the information technology industry-hit a "bust" stage that also forced layoffs by the thousands.
One such company, Cisco Systems Inc. of San Jose, Calif., had to release 6,000 employees last April but devised an innovative way to still "retain" some of them in a win-win-win scenario that is worth noting-and perhaps emulating.
Cisco did not want to lose the expertise of its workforce and wanted to have a bank of experienced employees available when the company is able to hire again. If all the released employees secured jobs elsewhere, the costly twin issues of finding and retraining new personnel would arise later when the industry recovers. (Sound familiar?)
So the company devised a program whereby their outgoing employees could choose between simply departing with a severance package or, in lieu of severance, representing Cisco for a year working at food banks, homeless shelters, or other community services. Personnel would receive one third of their previous salary (which Cisco would pay) and could retain all Cisco company benefits and stock plans. At the end of the year, they would receive an additional 2 months of (reduced rate) salary and would be considered primary internal candidates for any jobs at Cisco that became available-although there could be no guarantees of their being rehired.
Because thousands were unemployed, and there were few jobs, 80 civic-minded Cisco employees accepted the latter program.
They are now working with many nonprofit groups, some through Cisco's own pilot Community Fellowship Program. Cisco employees are teaching computer skills and resume writing to the homeless. They also have installed a fund-raising database at a food bank, implemented a new online accounting database for a group of shelters, supported Habitat for Humanity, and contributed to a longstanding Cisco program that has helped to establish over 8,000 educational academies in 130 countries.
Winning again
Through this approach, Cisco contributes to the community via employee salaries; keeps experienced, civic-minded personnel available during the industry downturn; and generates a most positive public profile.
At the same time, Cisco's employees keep a foot in the corporate door, retain company benefits, and gain the satisfaction of being paid to help others.
The charities and communities they serve are delighted.
Another example of win-win-win.
Can this scenario be emulated in our industry? It's something to think about.
