The Drilled Well Scorecard: A Step to Building a Learning Organization

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Abstract
Performance measurement is useless if it does not lead to process improvement. Evaluation of individual functional areas alone will not necessarily lead to a better overall process. The effectiveness of process inputs, outputs, and actions must be measured against the organization's underlying goals. UPRC is not in business just to drill holes in the ground; UPRC is in business to make money. Ideally, all actions in the process should reflect this goal.

To describe this whole system phenomena, we have developed a relational control model of the drilling process. Together, UPRC and OGCI designed a performance measurement system, the Drilled Well Scorecard, to reflect the relationships in this model and to make performance evaluations that will lead to real, continuous improvement. The scorecard was designed to facilitate communication across teams, to document project goals and assumptions, to measure the effectiveness of drilling plans in meeting these goals, and to reconcile the differences between intended and actual results.

If these scorecards are used for post-analysis and then to help plan future projects, they can facilitate organizational learning. A learning organization must: define specific goals linked with its financial performance -ensure that actions are directed at meeting these goals -"remember" how decisions were made -build an accessible reservoir of experience, of the right expertise and technology -accurately monitor performance -use this experience to adapt its practices to "do it better next time.

When the organization uses the scorecards as system feedback, it will be able to capture the benefits of it's experience. The company is planning to use the experience stored on the "Drilled Well Scorecard" as part of an effort to improve both it's planning process and it's project execution, as a step to building a learning organization. Again, this should be the ultimate goal of any performance measurement program.