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Mol Refinery – Concordia cooperation

Hearing about the silver medal in September 2014 we were awarded for the MOL Refinery and Concordia OD project made us extremely happy and proud (as advisers as a client also).

Constantinus International – The Global Management Consulting Award silver medal project

Hearing about the silver medal in September 2014 we were awarded for the MOL Refinery and Concordia OD project made us extremely happy and proud (as advisers as a client also). It is the result of an almost four years long close cooperation, that goes beyond this project, as we still work together on other tasks.

In the next few paragraphs we would like summerise the essence and result of this work. A comprehensive process of culture changeaiming to reform the inner workings and mentality of the whole of MOL Refining. The most important challenges facing MOL Plc and MOL Refinery in 2008 were as follows:

  • Increasingly strong international competition requiring an ongoing improvement of operative efficiency.
  • Regional expansion that brought new refineries under the control of the company, which necessitated the creation of an integrated, uniform and mutually supportive operation.
  • Breaking corporate strategic goals down to the level of Refining, organizations and individuals.
  • Facilitating the use of synergies within the organization by demolishing the “walls” separating individual areas and by taking intra-organizational cooperation and activity to a whole new level.

Facilitating the use of synergies within the organization by demolishing the “walls” separating individual areas and by taking intra-organizational cooperation and activity to a whole new level. Based on the above, a comprehensive process of culture change was carried out, aiming “to create an open, innovative organizational culture based on co-operation wherein the satisfaction of our colleagues and their will to act are a guarantee for both achieving our corporate targets and fulfilling the demands by our customers.”

The primary strategy within the change process was to involve as wide audience as possible, in a bid to strengthen dedication to the program and to change. This allowed the involvement of several hundreds of people already in the early stages of establishing and discussing the situation. Also, both the objective and the vision were formulated in the framework of a large group workshop of some 120 people, upon the initiative, and with the active involvement, of the management.

Our first task was to introduce the new vision to the organization. In order to achieve that we organized a program of “break down and operational excellence” for each organizational unit. Within the framework of these units co-workers were introduced to the vision, and each organizational unit had the opportunity to pinpoint where they could contribute to the achievement of goals.

After actions were aligned throughout Refining we launched our programs aiming to facilitate change. These involved various fields and groups of employees, and included operational excellence programs, leadership skills development trainings, and actions enhancing organizational efficiency.

All of these had the following results:

  • Based on the findings from a survey gauging the implementation of the vision against 83 statements, changes between 2008 and 2012 were 96% positive.
  • Owing to the program 1,2 Billion forints were saved during the period of 3 years, mainly coming from the reduction of steam usage, „torch losses” quality. The developed communication, strengthen cooperation and raised financial awareness also played a significant role (in the process leading to the results.)
  • There was a significant progress made at key areas such as increasing HSE awareness, dissemination of a business approach, facilitation of integration, knowledge sharing, ongoing improvement, and cooperation among organizations and individuals.
  • 112 office and shift leaders attended leadership related skill development programs, and in the framework of workplacerotation more than 500 colleagues spent longer period of time at related fields to study their processes.
  • In the framework of the Eiffel program (corporate idea management system) more than 1000 ideas were handed in during the first 3 years. In connection with this over 40 million forints bonus/reward have were prayed out, and these ideas resulted 400 million forints saving for the Refinery only in 20013.
  • Last but not least one of the greatest and most significant success, that both the organization and employees have learnt how to manage change and channel new challenges without external assistance.

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VISTEON HUNGARY LTD.

"Our company was launched in Hungary as a green field investment. Concordia had a definitive role in creating a corporate management system and a corporate culture based on empowerment and on the operation of autonomous work groups, which are fundamental to our successful operations. I thank Concordia for their efforts."

Sándor Erdei

Director of Human Resources

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