Although this transformation was necessary, its focus on improving operating efficiency and effectiveness is surely more of a demonstration of an operational necessity rather than a dynamic, inspirational pathway to an envisioned future.
Details of the ‘potential’ of the outcome are largely left to the imagination of the analyst. Perhaps a more visionary outcome description would have contributed to a stronger defence of the company against its recent acquisition by private equity company Pacific Equity Partners.
WorleyParsons (WP) is a company that is comfortable in communicating its most pressing strategic issues in its strategy. In fact, it incorporated them into its way of doing business.
WP started as a private domestic engineering company and grew continually through the years to improve its cash flows and shareholder value; ultimately evolving into a publicly-listed firm with more than 40,000 employees and operations in 44 countries.
In the early years, though, WP faced the same issues as all consultancy firms: how to differentiate and compete? In the mid 1970s its newly-appointed CEO, John Grill, oversaw the growth of the business through a bevy of acquisitions that transformed it from a small vendor of brownfield services contracts to a provider of mega greenfield projects.
Describing WP as “the preferred global provider of technical, project and operational support services to our customers”, the firm differentiates itself from its competitors by “using the distinctive WorleyParsons culture to create value for clients and prosperity for its people”.
The specific points of difference expressed by WP are not necessarily earth-shattering; as with Toll, that would be difficult in such a commoditised industry, anyway. But its efforts to do so demonstrate confidence in themselves and a solid commitment to the future. They include promises to “employ committed, empowered and technically-capable people; provide a comprehensive geographic presence, focus on long-term contracts and asset based services, and deliver outstanding operational and corporate performance”.
What makes the difference is the way in which the WP vision is aligned to the strategy, and the strategy inculcated into the fabric of the business.
As WP grew over the years it evolved its skills, competencies and technologies to address all challenges that can arise from its now well-established customer base. WP went so far as to structure its entire service offering around the phases of its product lifecycle, they are: Select projects (identify and evaluate); Deliver projects (define and execute), Improve assets (operate, maintain and improve). Customers are left with little other choice than to select WP!
In a difficult, highly competitive industry, WP found a way to differentiate and win; the company has experienced year-on-year growth and is not afraid to tell the world about the challenges they face – in fact, it goes to a lot of trouble to describe/communicate its points of difference as a way to emphasise, not hide, the basis of competitive advantage.
