Introduction
Phillips 66 is a refining company that is expanding its business. The company had to change its business model, and it has done so in different ways. It now acts as general contractors in both construction and operation of pipelines and terminals.
As part of the refiners’ current business model, midstream companies such as Phillips 66 now act as general contractors in both construction and operation of pipelines and terminals.
As part of the refiners’ current business model, midstream companies such as Phillips 66 now act as general contractors in both construction and operation of pipelines and terminals (Page 14). This means that refiners deliver crude oil to a refinery’s dock and then transport products from the dock to customers via pipeline. Refiners also own all of the infrastructure related to this process, including gathering systems that carry oil from wells or other sources; transmission lines that transport natural gas across long distances; distribution networks for natural gas in cities; storage facilities for liquefied petroleum gases at terminals or pipelines; marine terminals where ships can load up with refined products like gasoline or diesel fuel.
In a true cross-functional team, members see themselves as on the same side — they respect each other’s expertise and share responsibility for the outcome.
In a true cross-functional team, members see themselves as on the same side — they respect each other’s expertise and share responsibility for the outcome. In this environment, people can communicate openly with one another about their views and concerns. They are also willing to listen to others’ ideas, even if they don’t agree with them right away.
In a true cross-functional team, all members should be able to work independently but have faith in the ability of others on their project or department. They must trust that everyone is doing his or her job well enough without micromanaging each other’s tasks or actions.
A Phillips 66 line worker at a manufacturing site noted, “My job is to make it happen. We work a lot faster now that we don’t have to go through so many approvals”.
The new model has improved productivity, reduced costs, increased transparency, and improved employee satisfaction. Not only will this make your organization more efficient and profitable but it will also help you retain your employees by making them feel valued.
By restructuring the plant’s operations around functional teams, the refinery management team could drive efficiencies and productivity by flattening structures and increasing transparency on key performance indicators — all while reducing costs.
When you’re given a project to manage, it’s important to understand your options. It may seem like common sense that a functional team is better than another type of team, but this isn’t always the case. In fact, one of the most important steps that companies can take when restructuring their operations around functional teams is understanding their advantages and disadvantages.
The first advantage of having an organization structured around functional teams is that they are more efficient and productive because each team has clearly defined responsibilities and objectives. This helps to eliminate ambiguity or overlap in roles or responsibilities among employees who belong on different teams within the organization. Another advantage of this type of structure for an organization is that it makes it easier for employees from different departments within the same company (e.g., marketing vs accounting) to collaborate on projects because they aren’t working together all day long every single day like people might do if they were part of one big departmental group at work – which would make communication difficult if not impossible altogether!
Employees still worked daily with their old colleagues, but now all nine teams met together weekly to discuss issues and identify opportunities for improvement.
The first thing the company did was gather all nine of its teams together for a series of meetings. These meetings were designed to allow team members from across the organization to learn about each other’s jobs and collaborate on ideas for improvement. The hope was that this would help them better understand what others do and make it easier for everyone to work together toward a common goal.
Here’s how it worked: Each team had weekly meetings with their old colleagues, who were now in different groups but still working daily with them, discussing issues and identifying opportunities for improvement.
Phillips 66 is implementing new business ideas and models
Phillips 66 is implementing new business ideas and models. For example, the company has announced a new joint venture with Saudi Aramco in the Permian Basin, which will help to boost production capacity in an area that’s been hard hit by low oil prices. Additionally, they’ve also entered into an agreement with ConocoPhillips to acquire its 50% stake in their jointly owned refinery in Borger, TX.
Conclusion
This case study is about how Phillips 66 transformed their business model to increase efficiency and drive costs down. The company has put into place a model that has been successful for them and will continue to be used in the future as they grow their business.
