Introduction

Harbour Energy has been operating as an independent oil and gas company operating on a global basis having their headquarters in the UK. The organisation was founded during 2014 by a private equity firm EIG Global Energy (Harbour Energy, 2024). As of 2017, Harbour Energy completed their first acquisition by backing Chrysaor Holdings Limited for obtaining a package of the UK North Sea assets from Shell (Harbour Energy, 2024). During 2021, Chrysaor was merged with Premier Oil to create Harbour Energy (Harbour Energy, 2024). The prime purpose of the organisation is to play a significant role for addressing the energy needs throughout the globe under the lights of a responsible and efficient production of hydrocarbons. In this regard, Harbour Energy also considered the strategy of creating value while continuing as a diversified oil and gas organisation with a gradual emphasis over cash flow and distribution.

PESTLE analysis

The economic and technological factors are considered in this case from the PESTLE analysis.

Economic factors

The UK economy is observed to obtain gradual stability as well as distinct future growth opportunities. For example, the nominal GDP in the UK has increased by around 1.2% during the first quarter of 2024 (GOV, 2024).

Figure 1: Oil and gas industry growth in the UK

(Source: Statista, 2024)

Along with this, the UK oil and gas sector is eventually estimated to ensure a compound annual growth rate of 4.95% during the forecast period between 2024 to 2029 (Statista, 2024) (Refer to Appendix). The pictorial presentation provided in this case is effectively disclosing gradual stability and continuous rise of energy production in the UK. Through this evidence, conclusive growth opportunities can be signified for companies like Harbour Energy and others with attractive industrial growth as well as flexible increments of GDP throughout the country.

Technological factors

The touch of technology advancement and innovation is largely influencing the oil and gas industrial operations in the UK. For this purpose, effective and active implications of different technical aspects can be considered including the consideration of marine seismic survey, remotely operated vehicle technology and others (Business Town, 2024). Moreover, directional drilling technology is also largely referred to in this industry for reducing environmental impact where improved drilling sensors as well as GPS and real time technologies are also utilised (Refer to Appendix). Along with this, the decommissioning technology is also observed to play a major role across the UK oil and gas sector (Business Town, 2024). With the help of these innovations, organisations like Harbour Energy and others can identify attractive future opportunities with the improvement of their existing operations and service quality.

Organisational change models

For this purpose, the McKinsey 7S model is considered along with ADKAR change theory. McKinsey 7S model is considered as a change framework, which is dependent on organisational design (Odeh, 2021). Moreover, the ADKAR model is also considered as a theoretical concept of change management, which is reflecting the similarity of these two models. Sequential focus of both the models are kept upon signifying change management. However, McKinsey 7S model is applied with the constellation of interrelated factors, which play an influential role to signify corporate ability to change. Similarly, ADKAR model is considered as an outcome-oriented change management framework, which focuses on limiting the resistance or barriers to corporate change (Sulistiyani et al. 2020).

However, certain differences can be pointed out between the mentioned theoretical frameworks. For instance, McKinsey 7S model helps in enlightening the factors responsible for empowering the overall process in an organisation rather than focusing on a conclusive change management plan. This theory also looks forward to signify the relationship between the factors for contributing to the leaders for identifying exact requirements for implementing the change process (Keček et al. 2023). As compared to that, the ADKAR model is largely emphasized towards the goals rather than focusing on the pathway to reach the goals. Another limitation can be signified with this theoretical framework where a large range of changes cannot be properly tackled through this theory (Paramitha et al. 2020).

Advantages and disadvantages

The prime advantage of McKinsey 7S model indicates its applicability for critically assessing each single component within the corporate environment before focusing on change action or process. The emphasis on interconnected factors such as strategy and structure along with shared values and systems, style, staff, and skills have been extremely important to effectively conduct the change process while keeping a sequential focus on the differences between the current state of seven factors and the proposed state after the change implementation (Zincir and Tunç, 2020). Along with indicating the behavioural patterns, ultimate strong points of this theory can also be signified with the achievement of a clear understanding regarding the interrelation of the mentioned factors, which is required to be emphasized while implementing the change. The prime disadvantage of this theory reflects its inappropriate focus on highlighting the visionary pathway of conducting the change process.

Similarly, the ADKAR model of change management is precisely related to the attributes of change goals and objectives (Ali et al. 2021). The systematic procedure highlighted in this model is equivalently supportive to reflect probable aim of the leaders for achieving successful change implementation. Along with this, the aspects of reinforcement highlighted in this model are also reflecting successful implementation of the sustained change with a focus on dedication and engagement from the leader’s perspective. Through this aspect, the strong directions of this model can be understood to create the change of vision or goal. The only disadvantage of this theory can be understood with its poor emphasis on the influential factors related and responsible for driving the change process.

Appropriateness of both models

Both the theories are effectively considered as a prospective measure to signify change management implementation in the workplace environment with a sequential emphasis on the influential factors as well as proper change vision. These aspects are considered extremely crucial and valuable to signify successful change implementation. Moreover, both the models are extremely appropriate from the perspective of outlining valuable ideologies regarding change management and implementation while considering the change vision and factors as stated (Odeh, 2021); (Ali et al. 2021). However, both the theories are also considered appropriate from the view point of critically exploding and analysing the vision behind the consideration of the change process as well as the elements to be considered for changing the existing state of an organisation. Due to this reason, these two models are also recognised as a sequential measure to signify change management despite having subsequent differences of theoretical emphasis.

Conclusion

Based on the overall report, a prospective understanding is obtained regarding the business environment of Harbour Energy. With attractive economic growth of the oil and gas industry in the UK as well as distinct touch of technology advancement are enlightening positive opportunities and influences for the organisation. However, critical evaluation of the change models is also considered in this report by including the McKinsey 7S model and ADKAR change theory. While indicating the similarities of both the models to properly focus on changed vision and goals, the appropriateness of the models is understood while enlightening effective understanding of change management ideologies. From this understanding, both the highlighted theories can be considered as major drivers of change process in the corporate environment for creating better values.

References

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Paramitha, T.A., Tobing, D.K. and Suroso, I., (2020). ADKAR Model to Manage Organizational Change. International Journal of Research Science and Management, 7(1), pp.141-149.

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Sulistiyani, E., Ali, A.H.N. and Astuti, H.M., (2020). Change management strategies to implement a fingerprint based attendance system in information systems department using ADKAR model. Applied Technology and Computing Science Journal, 3(1), pp.22-29.

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Appendix: PESTLE analysis of the UK oil and gas sector