- In E&P, all activities are creating either business value or firm value. For us, project outcomes are business deliverable. Everything in E&P should be geared towards making project outcomes happen.
- Therefore, it is the job of the function to synchronize their work to the project outcome and not the function’s processes & measures.
- Functions need to be seen as contribution units that contribute to the project outcome (business value) or contribute to strengthening the institution (firm value).
- Each function can be of two kinds – Project Services or Institutional Services / Enablers.
- Project Services include – Manufacturing, Industrial Structures, Design & Engineering, People Resources, Procurement & Logistics, Technical Services, Financial Resources, etc.
- Institutional Services include – HR, Financial Controls, etc.
- Certain functions like HR, Finance have dual roles as both project service and institutional enablers. HR contributes to the project by providing the right people resources at the right time. HR contributes to the institution by designing rewards, HR policy, etc. and has responsibilities aligned to the larger Tata Steel HR agenda.
- It is important to separate & clarify the project role of each function from their institutional role.
To summarize, though we have lot of functions, there is a common function we have i.e. delivering projects.