Many companies incorporate a ‘values’ statement in their corporate messaging. Fewer companies, however, look for values alignment in their supply chain and partnerships.
This is a story of three companies that sought this alignment and how this created a force multiplier in their market positions and corporate results.
The story starts with a Fortune 1000 oil and gas exploration company who set out to significantly alter their approach to facility security. Their objective was to optimize cost management, increase value, and mitigate risk. The company has 80+ years of success in the energy industry and was one of the first independent producers to explore in the Gulf of Mexico. They have helped shape the industry along with their own success.
This organization has a well-documented and highly transparent history of double-digit growth over the past decade. They have an outstanding record among U.S. based energy independents. Their broad asset base includes both development and exploratory resource opportunities with an extensive list of crude oil and natural gas projects in the U.S. and internationally. Also, the company’s well-balanced portfolio and strong financial platform provide the flexibility to prosper across economic and commodity price cycles.
Their values show in how they measure success and their ultimate goal is to create superior returns relative to their peers. But they also gauge success based on their performance as a preferred business partner, a responsible corporate citizen and the employer of choice for the industry’s top talent. Therefore, they conduct their business according to the following principles:
- Manage a portfolio of superior assets
- Execute a best-in-class exploration program
- Invest in people and technology
- Maintain investment and fiscal discipline
- Demonstrate leadership in environment, health, safety, compliance management, and corporate citizenship
Realizing Sustainable Business Value Through Security Solutions
Butchko, Inc. is a Houston-based security solutions provider. Butchko focuses on crafting security solutions that provide business value. Their mission is to deliver the “Right Technology, Right Process, and Right Procedure while Addressing the Right Problems.” With intense engineering discipline, business process acumen, and a focus on information that business leaders need for success, Butchko represents a unique approach to the business of security. When Butchko assesses product and service vendors for clients, they look for shared values and a similar, disciplined approach.
The oil and gas company sought a highly experienced oil and gas veteran with a pedigree in global security as a partner for a key security project. They also preferred experience on the African continent and required standards-based risk analysis experience that could drive the security requirements for their overseas projects. Finally, they looked for expertise in the technology that was being considered for the project. This was important, because if the technology was approved, it would be an extension of the existing systems thus forming the basis of a global corporate system.
Butchko’s competency and experience provided the alignment the company was looking for. Butchko was selected and tasked with developing an approach to an integrated security and operations program in Malabo, Equatorial Guinea (Malabo). Butchko devised a unique collaborative approach with the client as well as with any chosen subcontractors. The challenge required designing a stand-alone facility with reliable security infrastructure that would support a feeling of safety and security for in-country staff. Investing in people and the systems that allow them to be efficient, secure, and safe is foundational to the corporate mission.
The comprehensive plan would have to support emergency evacuation plans. In addition, it would require the ability to escalate security protections and communication in the event of incidents that could impact the public view of the company or its partners. And, since security is intertwined with operational capabilities, the ability to expand the Malabo system to support security and emergency support for all Equatorial Guinea operations was critical. In essence, Butchko was being asked to strategically support a future global security technology platform and approach.
The company performed a detailed threat analysis and developed a Threat Profile for the facility. This was used in conjunction with the architect, the design team, and selected members of management to develop a Concept Design Narrative for the facility that addressed the entire physical security infrastructure for the site. This included: electronic security, perimeter barriers, landscaping, safe havens/safe rooms, a command & control strategy for monitoring alarms, assessing situations, and coordinating response, vehicle and pedestrian access control barriers, perimeter lighting, credential approach, procedure, and finally, manpower strategies.
Crime Prevention Through Environmental Design (CPTED) principles were applied throughout the process to achieve security objectives in a subtle manner befitting a country headquarters campus. Security provisions and systems were also developed to enhance the emergency response capabilities planned for the new complex. Butchko, Inc. was selected to bridge this approach with the experience and expertise to perform system designs from concept through detailed engineering and commissioning.
Assess, Design, Plan, Deploy
The incumbent access control technology was Lenel OnGuard from United Technologies since it was already in use at other client facilities. A list of Lenel-certified integrators with presence in Africa was provided by Lenel. However, Equatorial Guinea did not have any Lenel certified companies. So, the strategy became to design the system and deployment process remotely. This would have to consider pre-engineering, pre-build, and then shipping and fielding in Malabo once the previous steps were complete. The remote design/build strategy was accepted. Butchko then approached the client with the concept of utilizing a U.S. based company to provide a solution since U.S. citizens are not subject to visa processing requirements.
A small number of companies with a strong Lenel background and international deployment history were contacted and considered. Aronson Security Group (ASG), headquartered in Renton, Washington, was the only U.S. Company that passed pre-qualification.
Two South African integrators were invited to provide a bid out of approximately 10 African companies receiving initial consideration. Ultimately, a U.S. based process was deemed more cost effective than doing pre-engineering and certification activities in South Africa. ASG was competitive on overall price, project management, and technical capabilities.
ASG’s U.S. company registration and U.S. citizenship allowed for greater flexibility for transit to and from Malabo, despite the long distance. Project Management requirements for design and management in the RFP were very high and took many vendors out of contention. ASG’s strong credentials and disciplined methodology were significant in the vendor evaluation.
In the RFP process, ASG provided insightful recommendations from a technical and process perspective. Several suggestions were adopted and integrated. A close collaborative process was utilized to engage ASG with the Butchko and client teams throughout the deployment and commissioning process, including a limited number of pre-deployment site visits to ASG as well as pre-construction site visits to Malabo.
Having multiple locations and companies serving a Malabo-based project created significant communication and management challenges. Butchko was able to successfully navigate this through a highly collaborative program management capability as well as strong service level agreements and cooperation with the participants. This included the client as well as the architect. Butchko, headquartered in Houston, Texas and the general contractor located in the Canary Islands, worked closely together along with the carefully selected risk, resilience, and security solutions provider and integrator, Aronson Security Group.
Following system commissioning, the pre-designed maintenance program was instituted. This involves preventative maintenance, in-country spares, locally trained technicians, local system administrators, remote support from ASG, and on-site support from ASG for major issues. These elements were envisioned during the design and refined during the deployment phase to provide long-term predictable and reliable system operation. The key factors to project success were the reliable and predictable in-country schedule for final deployment, successful Preliminary System Acceptance Test on first run, and strong communication and process discipline.
This Fortune 1000 company took stock of its distinct business values and chose a consulting and engineering firm with the same values. The consulting firm, in turn, chose a process driven integration partner with the same values. The result: a showpiece facility in a strategic area of the world, operationally integrated with safety and security, ultimately creating a competitive advantage in the oil and gas market. In the end, aligning the values of the businesses drove value to their businesses as a whole.