Career development

Leadership and Culture in the Oil and Gas Industry

Cultural differences become increasingly important as professionals move from technical to management roles. Managing projects often means not leading just the specific technical aspects of the project, but also the people who are working on them.

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Maria Angela Capello is an active SPE member, thought leader, and an expert in reservoir management. She is an advocate for diversity and inclusion, sustainability, and talent development. Capello is an SPE Distinguished Lecturer on the topic "Bouncing Forward: What Works for Boosting Resilience in Individuals and Organizations" and the 2019 chair of the SPE Buisness Management and Leadership Committee. She is the lead author of  the books Learned in the trenches: Insights into Leadership and Resilience, and Mentoring and Sponsoring: Keys to Success as well as more than 89 articles.

Working in different countries and companies makes you realize how culture impacts everything we do. I grew up in a small town in Central Venezuela, Altagracia de Orituco where my grandparents on my mother’s side settled in the 1950s migrating there from Italy. I worked for a number of years for PDVSA and later Halliburton in Venezuela. I moved to Middle East in the mid-2000s because of my husband’s work, first at Halliburton and then Kuwait Oil Company (KOC). It was important for me to keep our family together, and there were exciting new career opportunities in Kuwait. It was a challenging transition and I appreciated all the support that my and my husband’s companies gave us.

Venezuela and Kuwait are very different countries. They have different cultures, different food, and just a different way of living. I was fortunate that my company provided training to help me navigate the differences. What I discovered was that the commonalities were just as important as the differences. For example, Middle Easterners would often ask first about personal matters such as asking about your family or how you were feeling, before diving into business. Italians and Venezuelans are the same. That made it easier to get acclimated to a new culture—finding what you have in common. In this case, family values were important for both cultures and that made the transition a little bit smoother.

A country’s culture also impacts its companies. There are different styles of leadership depending where you are, impacted by the government, the people, and the local community. Even if a company has a global presence, the organization will be different in Africa or Europe compared to India or the US. The global processes get adapted to the local ways and laws. Based on my experience, that is not only logical, but necessary. The company needs to accommodate the local labor force, and the local communities. I noticed that when working for Halliburton in Venezuela and in Dubai, it’s the same company, same rules, same procedures, same databases, same templates, but the way to get the approvals and the respect for the bosses was very different.

The respect leaders receive is probably the biggest difference I have seen across cultures. There is much more reverence for leaders in the Middle East and Latin America than in Europe or America. In Europe anyone can debate, challenge his or her boss because there is an understanding that being a boss is a temporary assignment, and that you are a person just as any other. That’s particularly visible in Italy and in Holland, as I see it. But in the Middle East, people have reverence for their seniors, and an utmost appreciation for their leaders, their managers, their deputies, and their CEOs. Whatever the leaders say is rarely questioned but followed. Similarly, in Venezuela and other countries in Latin America, there is that kind of reverence for those very senior professionals in the company, like the president of the corporation. Employees just follow what the leader says. They don’t argue or ask about what is happening. This jeopardizes corporate resilience, as you want to have internal debate and an evergreen debate, to ensure sustainability of plans and goals of the organization, as well as the participation of the best talent in your ranks. All ranks!

One of the elements that I researched and realized as part of being a distinguished lecturer is the concept of corporate resilience. It’s about how flexible the company is, how it looks at its future, and how the company can enable debate, accept new ideas, and challenge the leaders. I noticed that in Africa the new generation is more open to change, debate, question what is happening, and their leaders, though still with a reverence for seniority. I have seen this in Nigeria, Mozambique, and South Africa. That is refreshing, because I have worked in countries where leadership is revered and respected to the point that decisions are not questioned. It’s very healthy to see that in other places that is not the norm. At KOC, I felt very fortunate. I was able to implement my ideas and my initiatives, to invent, to be creative. It’s all win-win. I found a niche to grow because I am not scared or threatened by any particular role. I feel comfortable in different cultural environments. It worked well in Kuwait.

The cultural differences become increasingly important as you move from a technical to a management role. At the end of the day, you are often not leading specific technical aspects of the project, but the people who are working on them. Being a leader means facilitating collaboration and communication to minimize delays and making sure everything got done the right way. Different countries and companies operate differently, and you need to consider that when working with other people—particularly if you are leading a team. In some cultures, a team member may not be willing to speak up if they think something is not working, whereas in others there may be more transparency. Part of being a leader is making sure everyone can speak up when they need to and that good ideas get heard.

Working in different countries and travelling as a distinguished lecturer has provided me opportunities to experience new cultures and develop leadership skills, but it is important for everyone working in the industry to better understand how culture impacts their companies. Working together is critical to succeeding in this industry—including in multidisciplinary and multicultural teams. Learning about how cultures vary across countries and companies is a big part of being a better team member and progressing in your career.