Creating Leaders in a Volatile Industry

Increased competition, stiffer regulation, globalization, shifting alliances, mergers and acquisitions, retiring baby boomers, and an increasing number of stakeholders — among other factors — mandate that energy companies have skilled leaders to thrive in today’s volatile and complex industry environment. Consequently, an effective leadership development strategy is essential to survival and prosperity.

Pioneer Natural Resources, headquartered in Dallas, is a large independent oil and gas exploration and production company with operations in the U.S., South Africa and Tunisia with more than 1,900 employees.

More than five years ago, senior management at the company recognized that industry challenges would demand a new generation of leaders. They first needed to create alignment and integration within the current management group, formed from the legacy companies that came together as Pioneer. The company was formed through the 1997 merger of Parker & Parsley Petroleum Co. and MESA Inc. Then, in September 2004, Pioneer merged with Evergreen Resources Inc., creating a new core area in the Rocky Mountains that enhances Pioneer’s strong foundation in North America.

The challenges of the recent global economic recession prompted the need to improve employee productivity and maintain commitment. The increasing pace of change throughout this period demanded adaptability and agility at all levels of management. As the economy strengthened, an incoming wave of talent, mainly from the millennial generation, had to be integrated into the organization. This only accelerated the requirements for skilled leadership throughout the Pioneer organization.

To supplement its internal training and development resources, Pioneer turned to SMU Cox School of Business to build development options that would enhance Pioneer managers’ abilities to coach and give feedback to their employees and equip them to meet industry challenges.

In the past, new managers were typically promoted from within on the basis of technical expertise, and they required development to effectively manage their teams, according to Doug Hull, senior director of HR and administration for Pioneer Natural Resources.