International Journal of Energy Engineering          
International Journal of Energy Engineering(IJEE)
Frequency: Yearly
Editor-in-Chief: Prof. Sri Bandyopadhyay(Australia)
Corporate IQ Optimization as a Mitigation Strategy Against Enterprise Disconnect Case Studies from the Energy Business
Full Paper(PDF, 719KB)
A high Corporate Intelligence Quotient (IQ) is crucial for survival in any business. In this study, the Corporate IQ concept has been applied to assess the specific cognitive abilities of energy organizations. The IQ test results confirm that international oil companies (IOCs) lead the industry with best practice as reflected in high Corporate IQs. It takes genius to win the race for access to ever more complex oil and gas prospects. However, the building of enhanced Corporate IQ by organizational learning has now also been taken up successfully by several former national oil companies. Getting to the best oil and gas prospects first and developing these with positive margins means a company must outsmart its oil and gas rivals. If such industry leaders succeed, other companies run a risk of lagging behind. Locally operating oil and gas companies typically lag behind and run a high risk of enterprise disconnect. A deterioration of cash flow is a tell-tale sign of enterprise disconnect from its business environment. What hallmarks the top management of failing companies is a persistent neglect of warning signs and undue risk taking. In contrast, the common denominator of those firms who timely recognize and avoid such mishaps is adeptness to change and rapid organizational learning.
Keywords:Energy Business; Corporate IQ; Organizational Learning; Competition; Corporate Governance; Change Management
Author: Ruud Weijermars1
1.Alboran Energy Strategy Consultants, Molslaan 220, Delft 2611CZ, the Netherlands
  1. Weijermars, R., 2011. Building Corporate IQ: Moving the Energy Business from Smart to Genius: Executive Guide to preventing Costly Crises. Springer, London, ISBN 978-0-85729 -678-8.
  2. Weijermars, R., 2012. Responsibly Securing Natural Resources – The Art of Managing Risk in Complex Field Operations and Volatile Energy Markets. First Break, Vol. 30, No. 6 (June Issue), p.111-119.
  3. Kotter, J.P., and Rathgeber, H., 2006. Our Iceberg Is Melting: Changing and Succeeding Under Any Conditions. Macmillan, New York.
  4. Conner, D., 1992. Managing at the speed of change: How resilient managers succeed and prosper where others fail. New York, Villard.
  5. Weijermars, R. & Watson, S., 2011. Unconventional Natural Gas Business: TSR Benchmark and Recommendations for Prudent Management of Shareholder Value. SPE Economics & Management, vol. 3, no. 4, p. 247-261, SPE 154056.
  6. Weijermars, R., 2012. Jumps in proved unconventional gas reserves present challenges to reserves auditing. SPE Economics & Management, SPE 160927-PA & Online First. 10 May 2012.
  7. Weijermars, R., 2011. Security of Supply: Operational Margins at the Wellhead and Natural Gas Reserve Maturation, Abstract & Forum Presentation, Taking Natural Gas Seriously: Opportunities and Challenges (AAPG) General Assembly A; Co-Chairs: S. W. Tinker, W. L. Fisher and S. Ikonnikova, AAPG 12 April 2011. Search and Discovery Article #70106 (2011); Posted Sept 19, 2011.
  8. Mendelson, H. and Ziegler, J., 1999. Survival of the Smartest: Managing Information for Rapid Action and World-Class Performance. Wiley.
  9. Weijermars, R. 2011. Moving the Energy Business from Smart to Genius by Building Corporate IQ. SPE Economics & Management, Vol. 3. Issue 3 (July), p.186-194 (SPE paper 144490-PA).
  10. Weijermars, R., SPE paper 144489: Credit Ratings and Cash Flow Analysis of Oil & Gas companies: Competitive disadvantage in financing costs for smaller companies in tight capital markets. SPE Economics & Management, Vol. 3, Issue 2 (April 2011), p. 54-67.
  11. Weijermars, R. & Watson, S., 2011. Unconventional Natural Gas Business: TSR Benchmark and Recommendations for Prudent Management of Shareholder Value. SPE Economics & Management, vol. 3, no. 4 (Oct.), p. 247-261, (SPE paper 154056).