Organizational culture is a very important factor in the development of an organization, since organizational culture has a great influence on the ability of the entire organization to be able to adopt changes. The existing culture contains beliefs and values that very often are not indicated for the change to a new organizational environment.
An important point of these changes are the privatizations within the organizations, which are undoubtedly a phenomenon of remarkable scope around the world. However, neither the rhythm nor the modalities of the privatization processes have occurred in a homogeneous way, whether it is the case that we speak of the dominant features in the interaction between different countries or that we speak of what happened within the same country..
The oil industry is in Mexico, one of the main generators of sources of economic income in the country. The Mexican oil exploration and production industry occupies a significant place among the producing countries of the world, thanks to its reserves and production of crude oil and gas.
Mexico's natural resources provide important oil reserves that must be exploited since the discovery and development costs are relatively low compared to those of other international producers.
More precisely, the Petrochemical Industry can be placed as the fifteenth in importance in the entire world, and this current state is in danger due to the lack of new investments, which leads to a lack of competitiveness against large international industries.
Since 1976, the Mexican oil industry has increasingly participated in the international market. In addition to satisfying the internal demand for hydrocarbons and a high percentage of primary energy, its contribution as a foreign exchange generator has been essential for the development of our country.
In the specific case of Mexico, the privatization process over several years acquired very different modalities depending on the sector towards which it was focused. The case of the energy sector and specifically of the privatization trends in the field of oil exploitation, has suffered much more delay within the different industries, as well as being considered the most complex and the one with the greatest difficulties, both internal and external. external.
This document contains information about the need for certain organizational changes within an institution such as PEMEX in which an extensive analysis of its current situation, its projection into the future and some observations and / or recommendations that we consider important both in its internal organizational structure as its in its role within its external environment of competition.
In the same way, various concepts and methodologies are analyzed in which the objective of the project is supported, in order to provide a solution to the identified problem, on which work will be done so that through a radical change within the organization, it is seen positively affected by its performance.
2. MEXICAN OILS IN CONTEXT
2.1 DESCRIPTION OF PEMEX
PEMEX is a government institution dedicated to the oil and petrochemical industry, it is the only oil company in the country. It currently has about 138,000 employees and generates 1.6% of GDP, which represents 33.4% of the federal government's income. The direction of this great structure changes with each presidential term. The national economy has taken a turn thanks to the fact that PEMEX, through its alliances with the industry, has positioned itself as a lever for national development, generating high employment rates.
The purpose of PEMEX is to maximize the economic value of hydrocarbons and their derivatives, to contribute to the sustainable development of the country. Currently the vision of PEMEX proposed to 2006 is:
“PEMEX, the pride of Mexico and of the oil tankers, has become one of the most competitive state companies in the world, since it operates in a timely, modern, transparent, efficient and effective manner, with standards of excellence and honesty.
- General Directors Corporate Directors Internal Comptrollers
The Coordination of the Transparency and Fight against Corruption Program involves:
- Procurement Public Works Marketing Human Resources Financial Cycle Strategies
The PTCC is based on three axes: Creativity, Consensus and Follow-up. This has allowed it to position itself among the first places in the APF.
The PTCC faced high organizational and administrative complexity, resolved through a process structure, which covers the needs of the Corporate, Organizations and Subsidiaries, and provides objective information for internal benchmarking.
PTCC monitoring
To control the CCTT in a timely manner, a control system was developed, which has followed a constant process of evolution.
Evolution of the PTCC
The PTCC Pemex has been subject to a process of continuous evolution and improvement in order to consolidate a culture that encourages transparency and fighting corruption in the industry.
10.2 TRANSPARENCY PERCEPTION INDEX (IPT)
Methodology
The Transparency Perception Index (IPT) was designed considering the total satisfaction of users, in a three-dimensional model, in which the base is represented by the way in which the rules of the game and their application are perceived, and the height corresponds in the image of honesty. The variables are:
- Honesty Equity Regulation
IPT = Real Volume * 100 / Total Satisfaction Volume
Each component of the transparency perception index was estimated by grouping the information collected in the surveys for the following topics:
The joint result of the surveys carried out in 2002 and 2003 indicates that the general patterns of perception are changing in a positive sense.
- IPT2002 = 5.9% IPT2003 = 14.3% IPT2004 = 24% (target)
Achievements 2003
The actions carried out are making it possible to consolidate an improvement through a closer relationship with social agents, dissemination of commitments and accessibility to internal information.
PTCC achievements
- Consultative Commissions with the participation of Chambers and Associations Collaboration Agreements with Chambers, Associations and Educational Institutions State-of-the-art Methodology for Review of Previous Bidding Bases. Generation of economic savings. Unified Code of Conduct. Improvement in the IPT perception Implementation of Information Systems for Personnel Implementation of Information Systems for Suppliers and Creditors Implementation of a Follow-up System for Sanctioned Homologation of best practices Regulatory simplification Central leadership
10.3 2004 COMMITMENTS
10.4 INTERNAL REGULATORY IMPROVEMENT COMMITTEE (COMERI)
All the areas, Corporate and Organisms are represented both in COMERI and in the subcommittees by processes.
Basis
COMERI's activities are based on the results of the surveys, as well as on the analysis of the regulations by process.
Achievements 2003
The actions that have been carried out have allowed the consolidation of a process of continuous improvement in the review, analysis and updating of regulatory and administrative provisions:
- Institutional Normateca enabled and operating Dissemination of normative projects for consultation Dissemination of best practices Classification of provisions by areas and processes Elaboration of the methodology for the analysis of regulations Institutional Normateca system: 3416 registered provisions Newly created provisions: 16 Revised and updated provisions: 2409 Consultations to the SNI: 20424
Federal Law of Transparency and Access to Government Public Information
11. NEW TECHNOLOGIES IMPLEMENTED IN PEMEX
11.1 MIGRATION OF THE MEXICAN OIL NETWORK
PEMEX, one of the five most important oil companies worldwide, has one of the most modern networks in Mexico, due to the incorporation in its technological systems of migrated ATM solutions to MPLS (Multiprotocol Label Switching) technology, which It will allow the oil consortium to offer more communication services, increase its efficiency and save administration costs of its complex network.
This new Cisco-based infrastructure will allow PEMEX to increase its efficiency and save significantly on its administration. With the experience of Cisco, the world leader in Internet networks, a network with national coverage will be modernized with at least 50 ATM switches and 200 telephone switches; This network will allow for satellite links, microwave systems and coverage to vessels of the oil fleet and refining plants.
PEMEX decided on Cisco, since it has the latest modular technology in terms of switching and routing, to respond to the high dynamics required, in addition to its technology being compatible with the equipment that was previously installed, which is why it was not Costly for PEMEX to go from ATM technology to MPLS technology: “The ability to lead the market with cutting-edge technology is one of the great attributes of Cisco, in addition, MPLS technology is on the technological frontier and what it does is put a label for differentiate the information, so that the user is the one who has control of the Information traffic »commented Engineer David Estopier, General Superintendent of the Business Unit for Network Integration and Administration of Petróleos Mexicanos.
Prior to 1995, PEMEX did not have the technology to integrate various types of information traffic. This prevented him from timely meeting the needs of each of the subsidiaries that currently make up the parastatal company.
With the arrival of the Internet, business models were transformed, allowing companies to more easily enter the New Global Economy, so PEMEX decided to integrate with the support of Cisco to this change proactively, developing a strategy that would allow optimizing the exchange of information between the four subsidiaries and the Corporate.
After an international public bidding process, PEMEX was placed in the hands of INTERSYS, a recognized integrator that has the highest certification granted by Cisco; INTERSYS has been in charge of supplying, installing, configuring and operating the information transport network for 32 operation centers, including offshore platforms. The strategy was based on adopting Cisco's ATM / Frame Relay technology, as being the best in transporting data, voice and video traffic quickly, safely and reliably from any PEMEX office, plant or platform across the country.
Among the benefits of this network, is the ability to classify and prioritize traffic intelligently, with higher bandwidth, shorter shipping time and with quality of service in tasks such as billing, ship controls, mission critical applications of production, simplification of administration, creation of virtual private IP networks, voice and video conferencing services over IP, collaboration applications, training of personnel without leaving their workplace, etc.
To make this possible, Cisco developed a fully consistent end-to-end solution, creating clearly homogeneous architectures in its network services for ATM, making it behave according to quality policies. This technology has made it possible to network the marine platforms of the Gulf of Mexico, as well as concentration nodes in Coatzacoalcos, where PEMEX-Petroquímica and its subsidiaries La Cangrejera, Cosoleacaque, Morelos, Escolin and Pajaritos, among others, are located.
"Cisco helps to turn what many considered a technological utopia, into a reality, through the incorporation of ATM and MPLS technology into the network of the big oil company," said Jaime Carpenter, CEO of Cisco Mexico.
Aarón Gómez Escobedo, Cisco's Enterprise Regional Sales Manager and head of the project, highlighted: “Thus, with a minimal investment, we are going to add the entire IP world to the benefits of the ATM network, with which we are giving enormous potential to PEMEX, because today all technology runs towards IP ».
PEMEX currently has 1,850 Permanent Virtual Circuits (PVC), which are one-way paths to all others to send information, and require complex administration. With the implementation of the MPLS Label Distribution Protocol base, the creation and maintenance of PVCs will be eliminated, changing the operation to a control based on layer three routing protocols.
«This network has increased productivity in various areas of PEMEX. For example, the departments that manage large volumes of information have the infrastructure to streamline their work, which has improved their response times and increased the services available to a greater number of users, "stated Eng. Felipe Heredia Smith, Chief of the Corporate Planning and Evaluation Unit, belonging to the PEMEX Telecommunications Engineering Management.
Although the network is based on complex technological platforms, its operation is simple and its growth horizontal. This means that the network will grow because it has all kinds of functions installed, from the simplest to the most sophisticated. For example, it will be possible to incorporate the interpretation of the signaling of telephone switches, voice and videos over IP, as well as different developments for Intranet, Extranet and Internet.
Heredia Smith highlighted: "Based on this network, PEMEX incorporates computer applications that allow it to improve its management, support production processes and incorporate future developments." In the same way, he pointed out that the network allows us to be able to integrate the information traffic of different nature and optimize the bandwidth sufficient to meet higher user requirements and take better advantage of PEMEX's transmission infrastructure, which has represented important savings and an adequate opportunity cost.
11.2 TECHNOLOGICAL INNOVATION
Innovation is the continuous improvement of any process, technique or method; Currently the vast majority of companies have implemented various systems that aim to make the process of generating new ideas easier, especially those focused on technological research and development, which has become the main asset of progress not only of industry but of nations.
PEMEX, a parastatal company, does not escape this heading and throughout its history has presented various changes of different kinds in order to remain competitive and improve production, setting goals that with the human effort and help of technology it has been achieving.
Throughout the history of Petróleos Mexicanos, one of the largest technological changes was the fact of telecommunications. This started in 1995, with the aim of increasing their levels of efficiency, which is why the establishment of ERP systems was defined to support their production and management processes. In this way and with the aim of efficiently facing and optimizing the resources of its network, technological research began to innovate and modernize the PEMEX network and respond to the great dynamics that this firm is experiencing in terms of information transfer and telecommunications.
Each offer was then carefully examined; aiming to find the best provider to migrate the Petróleos Mexicanos network to a protocol that was then at the technology frontier, ATM (Asynchronous Transfer Mode), which would allow them to support voice, data, and integration services. video conferencing on a convergence backbone.
Finally, Cisco System was the company chosen for the development of this technological change. As a consequence of this change, productivity was improved due to better process efficiency.
Currently, as at that time, telecommunications management faces the arrival of the Internet in business processes, a fact that requires the convergence of applications and services in IP (Internet Protocol), so PEMEX decided to integrate to change strategically and proactively.
Knowing the great competitive advantages and benefits of basing their business model on the Internet, it was decided that the time had come to modernize the sophisticated Institutional network and prepare it so that Internet-based business initiatives are supported with quality.
For this, it was chosen to scale the ATM network, to a new and impressive technology, called MPLS or Multi Protocol Label Switching, which is an intelligent technology that allows priority information to travel first than not important on the network due to the variety of applications that are integrated within it.
With this, the exchange of information between the four subsidiaries and the Corporate is being optimized, which allows the company to enter the New Global Economy more easily and allow it to improve its management, support production processes and incorporate future developments..
12. OBSERVATIONS AND RECOMMENDATIONS
12.1 ON THE TRANSPARENCY AND COMBAT CORRUPTION PROGRAM
Corruption, among other impacts, affects prices and market conditions, reduces confidence in the authorities and consumers, affects the sustainable economic development of the country and companies, discourages investment, increases uncertainty for commercial transactions, and increases companies' operating costs.
For a long time, the phenomenon of corruption was considered a national phenomenon. Multilateral efforts to combat corruption began long after. Globalization caused many of these problems that were considered merely local to become problems with global solutions. For this reason, the Mexican government has committed itself to the Organization for Economic Cooperation and Development (OECD) to create a transparency program.
Based on the great distrust of historical and systemic corruption problems that PEMEX has had, this company in the current administration took action on the matter, giving priority to the program issued by the state government and conducting a synergy with various organizations to integrate a single transparency and anti-corruption program (PTCC). Thanks to this great decision, PEMEX created the general directive commission of the program, generating a specialized structure.
In order to follow up on this project, a control system was developed, which has followed a constant process of evolution consisting of a paradigm shift, from recording to evaluating; from fulfilling to achieving.
To maintain the cohesion of its principles, objectives and results, the PTCC requires an independent central leadership of the processes and those involved.
Under these considerations, we consider that to make the fight against corruption more effective and efficient:
- Projects such as the PTCC must be developed but linked to an initiative for organizational change, where the organizational structure is redesigned and a new organizational culture is created that covers all the sectors of the company, and with this, generates drivers that cleanse Pemex of the heavy burden of corruption and inoperability and ranging from eliminating corruption to simplifying bureaucracy, with effective projects that involve organizational change, both structural and in its organizational culture.
- Pemex must effectively combat the theft of its products, especially gasoline, both inside and outside its facilities. For long years, Pemex workers have collaborated with thieves to remove gasoline from Pemex pipelines in remote areas to fill tankers and then sell the gasoline to Pemex gas station franchises. Thefts cost Pemex more than 12,000 million pesos a year. Fuel theft is also evident within the same facilities, in the same storage and distribution centers.
12.2 ABOUT YOUR INVESTMENT IN EMERGING TECHNOLOGIES
Despite the fact that in some official reports it is said that Pemex is up to date with technological developments, the truth is that it lacks state-of-the-art technology in some of its areas, mainly in exploration and exploitation. For this reason, Pemex must invest more in emerging Technologies:
- Mexico, the world's fifth-largest oil producer, could run out of oil in a decade or two unless Pemex modernizes its exploration and drilling equipment to seek to increase its proven reserves, it must also modernize its refineries and petrochemical complexes. Oil companies such as Exxon-Mobil and Chevron-Texaco, the first and second largest oil company in the United States, have technology for drilling in deep waters, to open the still virgin oil deposits of Mexico; Pemex no. Pemex is not only not up to date with technological advances, but it is considerably behind. Today's technology, even the newest part, built in less than ten years, is out of date. Outdated equipment requires repairs, slows down production, and raises costs.Lack of investment in exploration and new technology for Pemex's refineries and offshore drilling rigs means it is a quarter of a century behind major producers. Pemex's largest oil fields are in the Gulf of Mexico, and Pemex has neither the experience nor the funds to exploit wells in deep waters.
12.3 ON DEVELOPMENT OF STRATEGIES
- Pemex should seek to increase its proven reserves. Pemex plans to spend some 125,000 million pesos this year in exploration and production, more than double the 53,000 million pesos it spent in 2000. The 2003 annual report says that the company replaced a fifth of the proven oil reserves it depleted. last year. Last year's record total income, 626.1 billion pesos, represented an increase of 30% compared to 2002. Pemex's oil reserves have decreased for more than 20 consecutive years because the company is producing faster than it can explore. Exxon Mobil, the world's largest oil company, discovered reserves to replace more than 100% of the oil it produced last year, according to its 2003 annual report.Private partnership and some possible strategic alliances must be considered to be more operationally effective and more competitive in the global market, without jeopardizing its sovereignty. Currently, Mexico is the only oil exporting country that prohibits foreign companies from investing in its oil industry, reducing costs and the number of employees, reducing benefits, seeking foreign investment, and partnering with some other company to extend its reach. It could impact on the increase of its performance and its productivity. It could be considered that Pemex is a company that is listed on the stock market, an organization with shares on the stock market can strengthen its financial statements.
12.4 ABOUT ADMINISTRATION, OPERATION AND OTHER ITEMS
- That the director of the parastatal has not only the profile of leadership that the position requires but also that he is an honest, capable official with strong organizational attributes and proof of corruption. Simplify and transparency operations and administrative decisions. Example, when Pemex undertakes an exploration, up to 14 government agencies must audit the Project. Rather than hiring a single service company to build an oil rig, as most companies do, Pemex distributes the work among several dozen contractors, each requiring a separate contract. Lack of financial, administrative, and flexibility operational. The same kind of rules that apply to buying desks for primaries apply to building offshore platforms.Pemex must drive investment. Last year, the Mexican Congress authorized Pemex to increase its investment budget by reducing costs or increasing total revenues. Previously, Pemex had no incentive to improve its financial results, because the Government was left with any income that exceeded Pemex's forecasts. It is possible that with this new law, Pemex could increase its investments by up to $ 2.4 billion this year. Part of the problem is that the government extracts too many resources from Pemex. In 2003, the federal government took 60% of the 626,100 million pesos of income that Pemex had to finance around a third of the federal budget. Pemex needs investments of 100,000 million dollars in the next 10 years to sustain its production on the Tax Reform.Tax laws that dictate the amount of Pemex sales that the Government can keep must be reformed. This proposal would halve the taxes Pemex pays for new projects, and would leave current levies on existing projects to avoid a sudden drop in government revenue. Congress has done nothing with this measure from then to here. Pemex's investment decisions should be simplified. Today, it can take months to hire a drilling company, a process that other oil companies complete in a matter of days or weeks. Repairing a offshore platform can take months due to required permits and tender reviews, costing Pemex revenue while the platform remains idle.Emergency procedures should be established so that it takes less time to undertake the repairs. Pemex is going through a critical stage and that it does not have management autonomy, so losses can be perceived in the lower part of the financial state of the parastatal. Mexico must achieve –In energy matters- strategic alliances, which to date have not been possible due to the political and bureaucratic system in Pemex.
12.5 CHALLENGES TO BE FACED BY PEMEX
Pemex has several challenges that must be overcome in order not to fall into technological obsolescence that implies a lack of effectiveness and competitiveness and that triggers a major financial crisis. These challenges include:
- Increase their efficiency (oriented to value creation) Projects oriented to value creation Best practices in project management Modernization of plants and pipelines Optimization of the supply chain and value chain Creation of value in corporate services (medical and telecommunications) Administration of risks Compensation according to performance Modification of the tax regime New hydrocarbons should be taxed competitively according to tax regimes of countries with similar geological conditions Old hydrocarbons should be taxed based on the short-term needs of the Mexican federal government Have more financial resources for their new projects Implement best practices in corporate governanceIncrease the transparency and credibility of the administration process The Pemex budget is part of the federal budget The most efficient audit system Solve legal restrictions for strategic alliances Improve the structure of corporate governance Create and promote a new organizational culture Continue the incorporation of best practices: Independent members on the Board of Directors Audit Committees Clear and expedited disclosure of information Performance-based compensation Clear imperatives in value creation Increase your operational and financial autonomy More flexible relationships with government
12.6 PEMEX'S BUSINESS CAPACITY IN GRAPHICS
13. GENERAL CONCLUSIONS
- There are many controversies and controversies regarding the future of the company, these differences are further accentuated due to the continuous debate between the main political parties in Mexico, which lose sight of the primary objective - the financial and operational health of Pemex - and are They tear their clothes to maintain or impose a supremacy of their partisan ideas or projects over other parties. Pemex is and has traditionally been the economic support of the country. Its financial contributions to the Federation range from 40,000 to 50,000 million dollars annually. This means that they do not leave financial margin to grow technologically at the rate required by the current times of industrial competition. A public monopoly, with so much emphasis on the exploitation of raw materials, and the elaboration of work contracts,In order to pay the current government spending, it is not the ideal scheme for an oil company, which aspires to be the engine of national development in the coming years. There is decapitalization and there is no investment, previously 2 pesos of wealth were generated, for one of liabilities, and currently this phenomenon is the other way round. The crisis is not just a financial one, since there is also a record of an accelerated loss in the achievement of reserves. There are two reforms that must be seriously considered: the energy and The fiscal; Because we are one of the countries in the world with less public spending and less tax collection and, on the other hand, by 2010, between 50 and 60% of the generation of electrical energy could be private. Today, the parastatal has the lower reserves (Pemex, by the end of the six-year term,It intends to recover these by 75%.) Regarding the exploration of new oil fields, Pemex does not have the appropriate technology or enough money for the development of deep waters, which is why there are many fields that have only been extracted by 40%. It suffers from technological lag and lacks the investment necessary to take advantage of emerging technologies that would give it a competitive advantage in the highly competitive oil and gas industrial environment. and dictatorial-, for lack of a clear managerial vision and because they have not developed and applied an efficient project that effectively fights against the corruption nested within the parastatal. It simply cannot work effectively any program,however efficient and developed it may seem, if there is no effective organizational change or if the same internal stakeholders (main actors) are maintained within the company, retaining their same functions, their same privileges and their same way of acting. They themselves will be in charge of boycotting the project or putting makeup on its results to make it seem functionally adequate. It requires a radical or profound organizational change, this implies that you have to turn your face towards the entire organization and develop a project that involves re -organizational design and a change in the organizational structure -remove, add or change strategic positions and people- and create a new organizational culture that produces the change that is sought as an objective. But this new culture, like in agriculture,It is sown from the top down, starting with the managerial or managerial positions, until reaching the workforce and the productive bases of the organization.
14. BIBLIOGRAPHIC REFERENCES
- PIW 2002 Rankings, Petroleum Intelligence Weekly Energy Information Administration (EIA) Expansión www.pemex.com Herold and PEMEX Interview with Raúl Muñoz Leos by Nick Benequista and Loren Steffy, translation by Giselle http://www.sentidocomun.com.mx/ http: //www.coparmex.org.mx/contenidos/publicaciones/entorno/2004/mar04/7.htm Doctor Alfredo Palma Fellenberg, 9/28/2004 http://www.cisco.com/global/PA/sne/ pc / tecnologia / atm / pemex.shtml “Pemex: An uncertain future”, David Shields, Editorial Planeta, 2003 IMEF 2004, Moisés Orozco G.
Author:
Ing. Federico Plancarte Sánchez
This work was carried out as a project of the Organizational Architecture of the New Economy chair, taught by Doctors Miguel Ángel Pérez and J. Ignacio Icaza from the Master in Information Technology Administration (MTI), at the Instituto Tecnológico de Monterrey, Campus Monterrey.
The results and conclusions of this article are the sole responsibility of the author.
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