Pipeline

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Pipeline Gas JournalPipeline Opportunities
Conference

• Workforce Demographics
• Addressing a Potential Crisis
• Houston, TX
• March 26, 2007
• Chad Fletcher
• Enginuity, LLC

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Agenda

• Workforce Issues Is There a Crisis?
• Workforce Statistics
• The Education Gap
• Knowledge
• Strategies
• INGAA Foundation Initiative
• Resources

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Is there a crisis?
Workforce Issues
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Global Talent Shortage

• There is already a talent shortage in many areas
  of the global labor force, a situation that will
  grow more acute and more widespread across more
  jobs over the next 10 years and could threaten
  the engines of world economic growth and
  prosperity.
• Source Confronting the coming talent crunch
  Whats Next?, Manpower Inc., 2006

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Shortages?

• The U.S. Bureau of Statistics estimates a
  shortage of 12 million qualified skilled workers
  by 2010 rising to 20 million by 2020 in the
  United States.
• Source W. Atkinson, Confronting The Coming Labor
  Shortage, Public Power, November December, 2005.

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Industry Pain?

• Industries currently feeling the greatest pain
  in terms of skills shortages are oil, gas,
  energy, healthcare, and government.
• Source Managing the Mature Workforce
  Implications Best Practices, Morton, Foster,
  Sedlar, The Conference Board, 2005

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CrisisProportions?

• In certain sectors, these (skilled worker)
  departures are nearing crisis proportions. In
  the oil and gas industry, for example, the
  average employee age has risen dramatically
  current estimates suggest that roughly 60 of
  experienced managers will retire by 2010.
• Source Strategies for Preventing a Knowledge
  Loss Crisis, Parise, Cross Davenport, MIT Sloan
  Management Review, Summer 2006

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Workforce Statistics
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Workforce Statistics Projections

• From 1950 to 2000, the U.S. labor force grew 1.6
  per year.
• Over the next decade, the annual growth rate is
  projected to drop by 1/3 to 1.1 per year
• By 2010, the number of 35-44 yrs old will decline
  by 10
• By 2010, the number of U.S. workers age 45-54
  will grow by 52
• If Boomers retire at historical rates, there will
  be a significant skilled labor shortage

Source Managing The Maturing Workforce, The
Conference Board, 2005
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Workforce Statistics Projections

• 20 of employees currently eligible for
  retirement
• By 2012, almost half the workforce will be
  eligible for retirement
• Critical skill loss occurs at nearly twice
  attrition, or over 60 over next 10 years

Source Interliance Management Consulting,
Changing Workforce Demographics Is the pipeline
industry in a crisis?, Houston INGAA Foundation,
Inc., April 2006.
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The Education Gap
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Science Engineering

• We have observed a troubling decline in the
  number of U.S. citizens who are training to
  become scientists and engineers, whereas the
  number of jobs requiring science and engineering
  (SE) training continues to grow.

Source National Science Board, Science and
Engineering Indicators, 2004
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U.S. Education Gap
Even if action is taken today to change these
trends, the reversal is 10 to 20 years away.
Source National Science Board, Science and
Engineering Indicators, 2004
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U.S. Education Gap

• 46 drop in Electrical Engineering talent over 10
  year period
• 35 drop in students taking trade or industry
  related vocational or technical courses
• At Colorado School of Mines and Texas AM, B.S.
  degrees in Petroleum Engineering dropped 67
  between 1986 2001 and 81 between 1982 2001

Sources URS Presentation April 2006 referencing
Dr. John Daly, University of Texas-Austin, UBEC
Issues Update, July 2005, Oil Industry Waits for
Skilled Workers, Alexanders Gas and Oil
Connections, Volume 6, Issue 14, July 31, 2001
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Knowledge
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Wheres the Knowledge?
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Current Knowledge Management Practice

• Types of Knowledge
• Explicit Knowledge
• Manuals
• Databases
• Documents
• Specifications
• Procedures Processes
• Tacit Knowledge
• Has personal quality
• Rules of Thumb
• Intuition
• Relationships
• Values Opinions

• Management Strategies
• Knowledge Elicitation (Capture)
• Expert Systems
• Expert Interviews
• After action reviews
• Knowledge mapping
• Knowledge Exchange (Connect)
• Orientation
• Training
• Communities of practice
• Expertise location
• Mentoring / peer assist
• Alternative work arrangements

Source Gray Matter Matters Preserving Critical
Knowledge in the 21st Century, IBM Business
Consulting Services, 2003
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Strategies
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No ActionWithout Pain

• Inevitably, there will need to be pain
  associated with the looming talent shortage
  before people take the issue seriously and
  integrate it in their strategic thinking without
  pain, it is just too easy to keep putting it off
  and leaving it for someone else to resolve.
• Source Confronting the coming talent crunch
  Whats Next?, Manpower Inc., 2006

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Solutions Requirea Long-Term Strategy

• It seems very clear that to cope with the aging
  population, it takes a 100 percent, long-term
  policy. I mean, you can predict these things 25
  to 30 years in advance.But this proves a true
  problem for modern democracies, which are instead
  mostly preoccupied with short-term problems.
• Source Esther V. Rudis, CEO Challenge 2004
  Perspectives and Analysis, The Conference Board

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INGAA Foundation Initiative
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INGAA Foundation Initiative

• 2006 Workshops
• April 12, 2006 Changing Workforce
  Demographics. Is the pipeline industry in a
  crisis?
• October 5, 2006 Contractor / Operator
  Construction Issues Workshop
• 2006 2007 Studies
• Phase I Study focused on development of
  high-level strategy roadmap to guide future
  Foundation efforts
• Phase II Proposal to build on roadmap with focus
  in key areas that are aligned with the
  Foundations mission

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Resources

• Friedman, Thomas L., The World is Flat, Farrar,
  Straus, Giroux, 2005
• Manpower Inc., Confronting the Coming Talent
  Crunch Whats Next?, 2006
• The Conference Board, Managing the Mature
  Workforce, Morton, Foster Sedlar, 2005
• U.S. Bureau of Labor (Statistics)
• www.bls.gov
• Society for Human Resource Management
• www.shrm.org
• Calgary Economic Development Workforce
• www.calgaryeconomicdevelopment.com

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The Issues are Real!Its Not Just an HR
ThingWe Must Take Strategic Action Now!
Aging Workforce Education Gap Knowledge Loss