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Executive Summary and Main Points
Recent trends in the upstream oil and gas sector emphasize the evolution of operating models as pivotal for business resilience amid uncertainties of the energy transition. A benchmarking study comparing asset-centric and function-centric operating models across organizations reveals that asset-centric models generally outperform function-centric models in operational efficiency and reduced operating costs. These models center decision-making and P&L accountability within individual asset teams. Conversely, function-centric models centralize functional expertise and exhibit more consistent results, albeit with lower performance. These insights highlight the importance of strategic operating model selection to maximize performance in a dynamic energy sector.
Potential Impact in the Education Sector
Applying similar operational model insights to the Further Education and Higher Education sector could have significant impacts. Institutions adopting an ‘asset-centric’ approach—where academic programs or departments act with high autonomy and accountability—may realize enhanced pedagogical outcomes and cost efficiencies. Conversely, ‘function-centric’ university models adopting broad, centralized strategies could lead to a consistency in educational delivery. The integration of these models with Micro-credentials could enhance personalized learning pathways and partnership opportunities with industry leaders. Strategic partnerships and digitization initiatives could drive both innovation and operational excellence in education.
Potential Applicability in the Education Sector
Innovations such as AI and digital tools can advance global educational systems by fostering adaptive learning environments, improving student engagement, and bolstering administrative efficiency. Adopting ‘asset-centric’ principles, universities could empower individual departments to tailor curricula with AI-driven analytics to better align with student needs and industry demands. Conversely, a ‘function-centric’ approach could standardize digital learning platforms across an institution to facilitate resource sharing and cross-disciplinary collaboration.
Criticism and Potential Shortfalls
The real-world adoption of operational models from the oil and gas sector to education is not without potential drawbacks. Asset-centric models might lead to siloed approaches and uneven quality of education between departments, as seen in international case studies. Function-centric models could result in bureaucratic inertia and a lack of adaptability. Additionally, ethical considerations around data privacy and cultural implications of digitization necessitate careful planning to avoid a one-size-fits-all approach to diverse educational contexts.
Actionable Recommendations
International education leaders should consider piloting mixed operational models, taking on ‘asset-centric’ autonomy in programs with established success metrics while applying ‘function-centric’ coherence in general operations. Leveraging AI for predictive analytics can guide resource allocation and curriculum development. Strategic partnerships with tech firms can facilitate the digital transformation of learning and administrative services. Lastly, continuous evaluation and adaptation should drive the integration of technology in education to ensure alignment with evolving pedagogical goals and global best practices.
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Source article: https://www.mckinsey.com/industries/oil-and-gas/our-insights/five-features-of-operational-excellence-in-oil-and-gas-organizations