How diversity can alleviate sharks and bandwagons in the gas sector
Joanna M. Spanjaard A B and Sarah A. McAlister-Smiley A BA Deloitte Touche Tohmatsu, GPO Box 1463, Brisbane, Qld 4001, Australia.
B Corresponding authors. Email: jspanjaard@deloitte.com.au; smcalistersmiley@deloitte.com.au
The APPEA Journal 59(2) 724-727 https://doi.org/10.1071/AJ18210
Accepted: 12 March 2019 Published: 17 June 2019
Abstract
A level-headed decision maker in a well-run gas business would appear to be a good candidate to navigate through change. But instinctive responses and overconfidence can lead to irrational decision making. During periods of greatest risk, at the moment rationality is needed most, the impulse to act irrationally kicks in. This paper explores how diversity can alleviate risks associated with ‘sharks’ and ‘bandwagons’ in the gas sector. It explores the Queensland gas sector and how diversity of thought can play a powerful role in reducing the impact of bias on identifying risk and making rational decisions. It also offers practical advice as to how the gas sector can improve diversity and metaphorically punch those sharks and halt those bandwagons.
Keywords: bias, change, coal seam gas, CSG, decision making, liquefied natural gas, LNG, opportunity, performance, risk, risk culture, risk management.
Joanna Spanjaard is the Queensland Lead Partner of Deloitte Risk Transformation. She has advised many organisations in energy, gas and mining in identifying and operationalising effective risk-based decision making. Joanna has a Bachelor of Engineering (Honours Class I) from the University of Queensland and a Master of Engineering Science from the University of Manchester. She has in-depth practical industry knowledge of both strategic and operational risk gained over her 30-year career in both operational, engineering and management roles and leads engagements to design, implement and provide assurance over risk, compliance and governance frameworks. Joanna is also a Board member of Common Ground Queensland, Graduate of the Australian Institute of Co. Directors and sits on the University of Queensland School of Engineering Advisory Board. |
Sarah McAlister-Smiley is the National Lead Partner of Deloitte Business Modelling. She has worked extensively in the Queensland CSG to LNG sector since before each project’s Final Investment Decisions in 2010. She has advised JV participants on the APLNG and QCLNG projects as well as Arrow in relation to their Queensland CSG assets. Sarah has a Bachelor of Economics, Honours in Econometrics (Class I), a Bachelor of Laws with Honours, a Graduate Diploma of Applied Finance and is an Associate of the Financial Services Institute of Australasia. She has over 17 years of industry experience in financial and economic modelling, forecasting and financial analysis, business case development and product modelling. Sarah has also been involved in reviewing project legal and financial documents to ensure the commercial arrangements framing the project business case are embodied in the subsequent project documentation and agreements. Sarah has also acted as a subject matter expert on engagements across our member firms in the UK, the US, Canada, Singapore, NZ, PNG and India and is Australia’s representative on Deloitte’s Global Panel of Modelling Experts. |
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