Final Submission essay




MedcoGas and Oil Company is one of the private industries that has heavilyinvested in the mining industry. It is based in Indonesia andspecifically in Jakarta town. The company started in the year 1980with a primary business of mining. It specialized in the mining ofthe crude oil as well as the production of natural gas. Currently,the company is not static in its initial primary business but hasventured to some other investments that are related to its maindealings. It is now an integrated energy company that handles a widevariety of activities including the generation of electricity, themining of coal as well as the storage and transportation services. Ontop of these activities, the company as well handles all the servicesthat are associated with drilling and also the trading of gas. InIndonesia, Medco has subsidiaries all over the country, and itcurrently owns the blocks of oil and gas. The enterprise is estimatedto have 3000 staff members currently, and the number does not deviatevery much from this figure (MedcoEnergi 2015).


MedcoCompany has a flat organizational structure with a limited number ofmanagement levels. Each and every department in this company ismandated to make its decisions to ensure that its successes in theactivities that are directly linked to each respective department.Because the departments can make independent decisions, the span ofcontrol in Medco Company is, therefore, enormous. The flatorganizational structure ensures that the company attains its growthstrategies within a very short time. The management of the companycan monitor the transactions taking place in the firm giving emphasisto the critical functions that ensure that the enterprise grows. Themanagement can as well authorize some of the individuals who theyconsider eligible and delegate some powers to them so that they canoversee some activities on behalf of the management. When it comes tomatters of making decisions, all levels are actively involved meaningthat the company has a decentralized decision-making process. Theprocess of making decisions is devolved to lower levels within thefirm thereby ensuring that the vital decisions are made within theshortest time possible. Because of this devolved function, thedecisions made are very efficient in serving the intended purpose.

Accordingto the Medco Company structure, the highest rank is the Board ofCommissioners followed by the president, director and the ChiefExecutive Officer. Below the CEO are the different directors who arein charge of different departments within the enterprise (MedcoEnergi2015).

TheMedco structure can be presented diagrammatically as follows

The Board of Commissioners

President, Director &amp CEO

Director &amp Chief Financial Officer

Director &amp COO E&ampP

Director &amp Chief Planning Officer

Chief Business Support Officer

Chief Int’l E&ampP and New Venture Officer

Director &amp COO Power &amp Mining

Director of Production

Director of Development


Severalcompanies wish to expand their business beyond the regionalboundaries to the foreign markets. Medco Oil and Gas Company has thesame wish, and it will only be possible if the firm changes somedrivers. Since it was established, the company has done a lot toexpand its transactions, but it needs to do a lot concerning theinnovation of new products and services so that it can competitivelyget involved in the international markets. This will enable thecompany to capture the target market nationally and internationally.Through innovation, the company should ensure that the oil productsthey manufacture do not have any environmental hazards, and they areaffordable to all people regardless of their economic status in anyparticular country. Similarly, the gas produced by the company shouldbe packaged in different volumes to cater for the different socialclasses of people both nationally and internationally.


Inthe course of implementing the proposed change, some of the keyshareholders are likely to be affected directly. In particular, theinvestors of the company will be directly affected in case thecompany decides to adopt the innovation suggested. The investors arethe ones who should provide the necessary funds to ensure that thechange so recommended is successfully implemented. Similarly, theycan directly influence how the innovation of the new products andservices can be deployed in the Medco Oil and Gas Company. Likewise,the management will be affected as well because they are the peopleto ensure that the innovation suggested is realized. The managementwill have to come up with a plan on how the process of implementationof the proposed innovation will take place in the company. Themanagers will ensure that they suggest part of them to make sure thatthe plan goes on as scheduled and report any deviation witnessed tothe management for action where necessary. The right people toimplement the innovation should be identified, and such culture ofinnovation should be communicated to the employees of the company whoshould be creative as well. The employees will combine the skillsthat they have to ensure that they come up with new ideas that willlead to the new products and services.

Changeinitiative overview

Theserevolutionary changes have the primary aim of ensuring that Medco Oiland Gas Company remains highly competitive in both the national andthe foreign markets. The progress of the modification should betracked to ensure that everything goes as planned. Tracking willalert the management of any possible failure or success of the changeinitiative, and this should be done particularly on the companypatents. The historical data of the different employees will be vitalin determining the type of workers who should be given the mandate ofensuring that the proposed change is successfully initiated. Part ofthe initiative ensures that the products and services of the companydo not pose any environmental hazards. Ethical considerations,therefore, should be incorporated to the initiative to make sure thatthe ways packaging will be done do not pose any environmentalproblems though efficiency will be highly observed. This will as wellenable the company not to contravene the laid down rules andregulations of conserving the environment.

Keysuccess factors

Forthe implementation to take place successfully, I will have to employsome factors in the Medco Company. First, I will start with urgencywhere I will ensure that everybody in the company starting from theworkers to the stakeholders see the reason we should adopt the newstrategy. Secondly, I will set clear goals of the initiative andensure that everybody understands each and every objective laid down.Thirdly, I will employ an open communication to all the people whowill be affected by the change both internal and external. Fourthly,everybody should be committed to ensuring that the change is asuccess. The top management should offer the required support andensure that the cultural fit of the company is observed by ensuringthat some key people in the company are involved in the process ofimplementing the new change. The last factor is monitoring where somemeasurable key elements should be closely monitored to ensure thateverything is within the desired control.

Theprinciple implications of these factors are that the change managerswill have to understand every element to make sure that theyincorporate it in the initiative to ensure that the implementation ofthe change is successful. Otherwise the company’s change initiativewill not succeed.

Changeinitiative process

Thefirst step is to show a sense of urgency where I will help the entiremanagement see why we need to change and see that the matter is trulyurgent. I will then work towards ensuring that the change is live byintegrating the values of people in the organization to have aguaranteed success. Secondly, I will create a coalition that willguide the entire organization in attaining the change. I will includesteps like identifying the importance of these people in decisionmaking and ensuring that they have the desired qualities to lead. Thethird step will be to develop a vision that will be a guidingprinciple to attain the required change. The idea will be effectivewith the desired characteristics. Fourthly, I will communicate thevision to ensure that every member of staff understands and acceptsit so that they give it support to enable me to put the words inactions. The fifth step will be to empower a broad-based action byensuring that I do away with the possible barriers and encourage allwho are involved in doing their best in ensuring that the change issuccessful. In the sixth step, I will try to generate the short-termwins so that I will know any barriers and also reward the performingemployees. The seventh step will be to bring together the gains Iwould have achieved and also try to initiate more change wherenecessary. Lastly, I will ensure that the new approaches areincorporated into the culture of the company so that every employeeis aware of it.

Thetechnology will be used throughout the process especially insituations where innovation will be mandatory.


Theproposed change is intended to ensure that the returns are maximizedfor the purpose of keeping stakeholders’ interest in mind. Becausethis for their benefit, I expect a positive reaction from thestakeholders without any objection but am sure there can be a minimalnumber who may oppose the idea. To deal with such reactions, I willemphasize on the factors that will build the trust of thestakeholders towards the change. Similarly, I will ensure that Iexplain all the organizational procedures in a manner that avoids anyambiguity. Lastly, I will give the promises that I am sure that theycan be delivered within the set period as agreed with thestakeholders. Ethically, I will ensure that the proposals of theshareholders are integrated into the change initiative.

Evaluationand assessment

Evaluationand assessment are crucial in fostering the change, and it will bedone throughout the process and where the available opportunities areseen. I will measure such possibilities and compare them to thetarget set as well as asking for the feedbacks from the staff membersso that they can help make revisions on the original changeinitiative plans. If the evaluation meets the set target, then I willconsider it successful.


MedcoEnergi,2015, Oil and gas retrieved from May 2, 2016.