Some oil and gas companies have allowed production goals to divert their attention from shareholder expectations.

In combat situations, in the oil patch and in the corporate jungle, principles of good military leadership build better teams.

Manage - to conduct or administer.

Lead - to go before and show the way.

The above definitions shed light on the difference between managing personnel and leading them. With the current scarcity of petroleum engineers and the desire for a better image of the oil industry, the following tips are meant to help oil companies attract young petroleum engineers and retain those already in their companies.

To enlighten the reader on my background, I must first admit I do not have an MBA. Therefore, those who do not truly "think out of the box" may not wish to read the rest of this article. My background is the epitome of "thinking out of the box." I am a former member of US Special Forces, more commonly referred to as "Green Berets." I tell you this only to make the point that I completely understand guerrilla warfare, and more importantly, what it takes to instill the confidence necessary to convince soldiers to follow you into battle and the loyalty that is instilled once that confidence is gained. These principles are from the years of experience my staff and I have gained while working with different cultures and different levels of hierarchy around the world. These simple steps transcend cultures, class structure and business models because they relate mostly to the human spirit and what inspires people to follow.

They apply to operations from the corporate headquarters of a major oil company to drilling crews on an offshore rig to field teams trying to wring the last drop of oil from a mature installation.

L - Leverage assets regardless of position. Many executives fail to appreciate the talent within their own organizations. Many employees contribute to the overall good of the company. A perfect example in the oil industry is the way a company enters emerging markets. Many companies spend large amounts of money to gain access to a market only to find that dealing with the culture will be a costly uphill battle.
Often times, a person within the corporation has worked in that country or is actually from that country. Regardless of whether the person with this knowledge is a janitor, a junior petroleum engineer or the chief executive officer (CEO), the use of this personal asset can save the company thousands of dollars and countless hours of community relations work. Furthermore, by showing the junior petroleum engineer that his or her input is valued, you take a huge step in gaining his or her loyalty.

E - Exemplify the qualities you expect from subordinates. Don't just set company policy, set the example. Remember, as a leader, everything you say and do is being watched. One cannot expect subordinates to be honest on travel settlements and show up for work on time when the leader turns in huge travel expense reports and is continually late.

This carries into other areas as well. If a leader leaves employees with the impression that as long as the company turns a profit, character is not important, subordinates will rationalize flaws in their personal work habits. Most of you have been frustrated by such an attitude at an oilfield site, in the actions of a partner or in dealing with government agencies.

Nobody wants to continue working for leaders who maintain a double standard. Of course, the most influence in this area is held by the immediate supervisor, but if you are a senior executive who behaves this way or who allows junior leaders to behave this way, you should wonder how many quality employees have left to work for your competitors.

The key is to remember that you, the leader, are actually three people: the person you think you are, the person you are and the person your employees and or the stockholders perceive you to be.
In our business, we have this phrase: "Perception is reality." One can be a great CEO, but if actions are perceived as improper, the CEO can lose the confidence of his or her people. This dovetails into the image of the petroleum industry and the stockholders. Obviously, there are those who seek to find fault in even the best leaders, but when the general population of the workforce is unimpressed with the leader, there is a need for some behavioral changes. Conversely, if members of the workforce believe in their leaders, it would take a large pay increase from a competitor to cause employees to leave.

A - Accept responsibility. In many cases, managers refer to the vast responsibilities they have when negotiating their own compensation, and understandably so. However, often times, the same managers who justify their pay through their level of responsibility are quick to point fingers at others if something fails. The key here is that "A leader is responsible for everything his department does or fails to do." When leaders point fingers at subordinates or make excuses, they create a credibility gap with their employees and stockholders that can rarely be overcome.

I realize that in the era of libel suits, unfortunately, apologies can rarely be given on the larger issues, but small in-house problems can be dealt with by simply accepting responsibility and proposing measures to decrease the possibility of the same mistake recurring.

Once again, placing blame sets the example for employees to follow. How much money could be saved if employees spent time developing solutions rather than blaming someone else while the root problem is never solved? Many oil companies already have policies of finding solutions, not scapegoats in inter-business dealings. It's a good policy for in-house operations, as well.

Quality people will remain working in organizations that do not appear to "eat their young" by placing blame on them. An honest, straightforward organization makes people feel secure. People who feel secure rarely leave the environment they are in.

D - Disseminate information, and state why tasks are required. Intelligent people want to know why certain seemingly mundane tasks are necessary. Nobody wants to hear "Because I said so."
Leaders should clearly explain the overall goal. If the goal is well-defined, subordinates can act in the absence of the leader. For example, when conducting a mission on the battlefield, the operations leader explains the overall goal so that the last person standing can still move toward that goal. If the goal is to block a roadway, the intent is to deny enemy access. Although the lowest-ranking rifleman has the simple task of providing security while an explosives expert fells a tree to block the road, the rifleman knows in the back of his mind that if everything goes wrong, he should still deny the enemy access, not knock down the tree. If he is the only person left and can devise another way to deny access, the goal is achieved.
Without knowing that the intent was to deny access, his mission would simply be to provide security until there was no one to provide security for.

An often-used analogy in the oil business is that the goal is to find commercial deposits of oil and gas, not to drill perfect holes. A bit dramatic, but the point stands that employees can offer more suggestions and develop additional plans if they know the intent.

E - Ensure you are approachable. I cannot begin to tell you what it means to an employee to be recognized by senior leaders. If you are the CEO or another senior executive, take 15 minutes out of your busy schedule and greet employees as they walk in the door. The rewards from this can be enormous. A keynote to the success of this is that it must be sincere.

In addition, try to remember a few names and faces of new staff. I guarantee that if 6 months later you can greet them by name and ask about their children, you will have gained employees who will move mountains for you the rest of their lives.

This is also beneficial to the functionality of the organization, according to another useful phrase, "The truth is with the troops." That means, if you want to know how a project is really going, don't ask the project manager, ask the most junior person working on the project. If you have established a reputation of being approachable and truly seeking honest answers, junior members will inform you of the progress. Furthermore, project managers will be less likely to "filter" the truth when they know senior leaders tend to "spot check" progress.
R - Reach decisions. People dislike working in an environment in which they don't know from one day to the next which direction to move. Gather and appreciate input, but let employees and junior staff know that at the end of the day, you are the final decision-maker. Once you have established this, make a decision. An indecisive leader is a roadblock to productivity and a frustration to employees.

This point applies not only to a tool pusher coping with a blowout, but also to the person with the business suit in the front office of the oil company.

Quality employees who are eager to solve problems and complete projects will not continue to work for indecisive leaders. It is important to note that the best employees of any company are very marketable, and they can and will find an organization that fulfills their needs other than their pay.
One could fill a book about how leadership correlates to the retention of quality personnel. Unfortunately, I have only a few thousand words in this media. The most important thing to remember is that true loyalty cannot be bought at any price.

If an employee is loyal simply because of salary, his or her loyalty will diminish when a larger salary comes along. Loyalty must be earned. This applies to employee loyalty, customer loyalty and the loyalty of the shareholders. History shows example after example of small forces overcoming larger, better-equipped forces simply because they believed in their leaders and stayed in the fight when success looked impossible. I'm sure there are veterans throughout your organization who can provide some firsthand examples of leadership under fire. In fact, maybe you could leverage these assets within your organizations to speak at a function and relay their stories to the younger generation. You might be amazed at the accomplishments of some of your staff. I know my staff amazes me daily.

Leverage people assets
Exemplify admirable qualities
Accept responsibility
Disseminate precise goals
Ensure you're approachable
Reach decisions