Beyond Agility: An Integrated Framework for Measuring Transformation and Safety Performance in High-Hazard Industries

Sidik Darusulistyo; Dermawan Wibisono; Harimukti Wandebori; Santi Novani

doi:10.48161/qaj.v6n1a2162

Authors

Sidik Darusulistyo School of Business and Management, Institut Teknologi Bandung 40132, Indonesia. https://orcid.org/0000-0003-0296-3946
Dermawan Wibisono School of Business and Management, Institut Teknologi Bandung 40132, Indonesia. https://orcid.org/0000-0001-5551-9414
Harimukti Wandebori School of Business and Management, Institut Teknologi Bandung 40132, Indonesia. https://orcid.org/0000-0002-3439-121X
Santi Novani School of Business and Management, Institut Teknologi Bandung 40132, Indonesia. https://orcid.org/0000-0003-2193-6898

DOI:

https://doi.org/10.48161/qaj.v6n1a2162

Keywords:

agile transformation, performance measurement, balanced scorecard, soft systems methodology, oil and gas industry.

Abstract

The oil and gas industry increasingly adopts agile methodologies to enhance organizational adaptability; however, existing performance measurement frameworks remain inadequate for high-hazard environments. Current models, predominantly designed for software development and manufacturing contexts, fail to integrate agility metrics with safety-critical indicators, leaving a significant gap in how organizations evaluate transformation success without compromising operational integrity. This research addresses this gap by developing and validating an integrated performance measurement framework that systematically aligns agile transformation goals with safety, risk management, and regulatory compliance requirements a combination absent in prior literature. Using a multimethodology approach, the study combines Soft Systems Methodology (SSM) for systemic problem structuring with the Balanced Scorecard (BSC) to create a structured yet flexible evaluation model. The framework was developed and validated through action research within a multinational oil and gas company, involving nine interviews with senior executives and two focus group discussions with operational leaders. The primary contribution is a novel set of key performance indicators across four perspectives financial, customer, internal process, and learning and growth specifically designed to balance agile transformation imperatives with safety-critical operational metrics in high-hazard industries. This research presents an empirically tested model that provides practical guidance for industry leaders seeking to enhance organizational agility without compromising operational integrity and regulatory compliance.

Downloads

Download data is not yet available.

References

International Energy Agency. (2023). World energy outlook 2023. IEA.

Jennifer, L. (2023, January 31). BP’s 2023 outlook for global energy transition: Key takeaways. CarbonCredits.com.

Deloitte. (2021). Portfolio transformation in oil and gas: How companies are reshaping for the future. Deloitte Insights.

McKinsey & Company. (2023). Agile transformation in heavy industries: An interview with SOCAR Türkiye.

Chowdhury, P. (2025). A study on the implementation of corporate Social responsibility in Thermal Power Company. Qubahan EcoLead Journal, 4(3).

International Association of Oil & Gas Producers. (2023). Safety performance indicators report 2023. IOGP.

Digital.ai. (2021). 15th state of agile report: Agile adoption accelerates across the enterprise.

Ernst & Young. (n.d.). Oil and gas industry transformation: Performance measurement and agile challenges.

Hüllmann, J. A., Kimathi, K., & Weritz, P. (2025). Large-scale agile project management in safety-critical industries: A case study on challenges and solutions. Information Systems Management, 42(2), 138–160.

Dikert, K., Paasivaara, M., & Lassenius, C. (2016). Challenges and success factors for large-scale agile transformations. Journal of Systems and Software, 119, 87–108.

Olszewska, M., Heidenberg, J., Weijola, M., Mikkonen, K., & Porres, I. (2016). Quantitatively measuring a large-scale agile transformation. Journal of Systems and Software, 117, 258–273.

Biswakarma, G., & Bhandari, P. (2023). Agile practices and their impact on agile maturity level of software companies in Nepal. Interdisciplinary Journal of Information, Knowledge, and Management, 18, 107–125.

Johnston, K. A., & Gill, G. (2017). Standard Bank: The agile transformation. Journal of Information Technology Education: Discussion Cases, 6, 7.

Huck-Fries, V., Nothaft, F., Wiesche, M., & Krcmar, H. (2023). Job satisfaction in agile information systems development. Information and Software Technology, 163, 107289.

Hopkins, A. (2009). Thinking about process safety indicators. Safety Science, 47(4), 460–465.

Radovanović, V., Krčadinac, O., Perišić, J., Milovanović, M., & Stanković, Ž. (2024). Comparison of agile and DevOps methodologies. Journal of Information Technology & Applications, 14(1).

Zhou, X., Lu, H., & Kumar Mangla, S. (2024). The impact of digital traceability on sustainability performance. Supply Chain Management: An International Journal, 29(3), 497–522.

Checkland, P., & Scholes, J. (1999). Soft systems methodology in action. John Wiley & Sons.

Jackson, M. C. (2001). Critical systems thinking and practice. European Journal of Operational Research, 128(2), 233–244.

Mingers, J., & Brocklesby, J. (1997). Multimethodology: Towards a framework for mixing methodologies. Omega, 25(5), 489–509.

Augustsson, H., Churruca, K., & Braithwaite, J. (2019). Re-energising change management in healthcare. BMC Health Services Research, 19(1), 666.

Bunch, M. J. (2003). Soft systems methodology and the ecosystem approach. Environmental Management, 31(2), 182–197.

Proches, C. N. G., & Bodhanya, S. (2015). Application of soft systems methodology in the sugar industry. International Journal of Qualitative Methods, 14(1), 1–15.

Liu, W. B., Meng, W., Mingers, J., Tang, N., & Wang, W. (2012). Developing a performance management system using soft systems methodology. European Journal of Operational Research, 223(2), 529–540.

Kotiadis, K., & Mingers, J. (2006). Combining PSMs with hard OR methods. Journal of the Operational Research Society, 57(7), 856–867.

Kaplan, R. S., & Norton, D. P. (1996). The balanced scorecard: Translating strategy into action. Harvard Business Review Press.

Kaplan, R. S. (2001). Strategic performance measurement in nonprofit organizations. Nonprofit Management and Leadership, 11(3), 353–370.

Norreklit, H. (2000). The balance on the balanced scorecard. Management Accounting Research, 11(1), 65–88.

De Geuser, F., Mooraj, S., & Oyon, D. (2009). Does the balanced scorecard add value? European Accounting Review, 18(1), 93–122.

Hoque, Z., & James, W. (2000). Linking balanced scorecard measures to organizational performance. Journal of Management Accounting Research, 12(1), 1–17.

Fernandez-Gonzalez, R., Puime-Guillen, F., & Vila-Biglieri, J. E. (2023). Environmental strategy and the petroleum industry. Journal of Petroleum Exploration and Production Technology, 13(2), 763–774.

Marr, B., & Adams, C. (2004). The balanced scorecard and intangible assets. Measuring Business Excellence, 8(3), 18–27.

Ittner, C. D., & Larcker, D. F. (2003). Coming up short on nonfinancial performance measurement. Harvard Business Review, 81(11), 88–95.

Hanafizadeh, P., & Moayer, S. (2008). Defining strategic processes in organizations. Business Process Management Journal, 14(2), 219–227.

Molina-Azorín, J. F., Pereira-Moliner, J., López-Gamero, M. D., Pertusa-Ortega, E. M., & Tarí, J. J. (2020). Multilevel research in management. BRQ Business Research Quarterly, 23(4), 319–333.

Midgley, G. (2000). Systemic intervention. In Systemic intervention: Philosophy, methodology, and practice (pp. 113–133). Springer.

Creswell, J. W., & Clark, V. L. P. (2017). Designing and conducting mixed methods research. Sage.

Rubin, H. J., & Rubin, I. S. (2011). Qualitative interviewing: The art of hearing data. Sage.

Krueger, R. A. (2014). Focus groups: A practical guide for applied research. Sage.

Bowen, G. A. (2009). Document analysis as a qualitative research method. Qualitative Research Journal, 9(2), 27–40.

Yin, R. K. (2018). Case study research and applications (Vol. 6). Sage.

Nuottila, J., Aaltonen, K., & Kujala, J. (2016). Challenges of adopting agile methods in a public organization. International Journal of Information Systems and Project Management, 4(3), 65–85.

Sharma, S., Singh, G., Jones, P., Kraus, S., & Dwivedi, Y. K. (2022). Agile innovation management adoption for SMEs. IEEE Transactions on Engineering Management, 69(6), 3546–3557.

Conboy, K., & Carroll, N. (2019). Implementing large-scale agile frameworks. IEEE Software, 36(2), 44–50.

Niven, P. R. (2005). Balanced scorecard diagnostics. John Wiley & Sons.

Joiner, W. B., & Josephs, S. A. (2006). Leadership agility. John Wiley & Sons.

Hammer, M. (2014). What is business process management? In Handbook on business process management (pp. 3–16). Springer.

Parasuraman, A., Zeithaml, V. A., & Berry, L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12–40.

Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. The American Economic Review, 48(3), 261–297.

Senge, P. M. (2006). The fifth discipline. Broadway Business.

Deming, W. E. (1986). Out of the crisis. MIT Press.

Reichheld, F. F. (2004). The one number you need to grow. Harvard Business Review, 82(6), 133–133.

Meadows, D. (2008). Thinking in systems. Chelsea Green Publishing.

Jensen, M. C., & Meckling, W. H. (2019). Theory of the firm. In Corporate governance (pp. 77–132). Gower.

Penman, S. H. (2010). Financial statement analysis and security valuation. McGraw-Hill.

Brigham, E. F. (1982). Financial management: Theory and practice. Atlantic Publishers.

Davis, M. M., & Heineke, J. N. (2005). Operations management. McGraw-Hill.

Saks, A. M. (2006). Antecedents and consequences of employee engagement. Journal of Managerial Psychology, 21(7), 600–619.

Juran, J. M. (1999). Juran’s quality handbook.

Mintzberg, H. (1994). The rise and fall of strategic planning.

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533.

Hackman, J. R., & Oldham, G. R. (1976). Motivation through the design of work. Organizational Behavior and Human Performance, 16(2), 250–279.

Eisenhardt, K. M., & Martin, J. A. (2017). Dynamic capabilities: What are they? In The SMS Blackwell handbook of organizational capabilities (pp. 341–363).

Imai, M. (1986). Kaizen: The key to Japan’s competitive success. McGraw-Hill.

Kolb, D. A. (2014). Experiential learning. FT Press.

Nonaka, I. (2009). The knowledge-creating company. In The economic impact of knowledge (pp. 175–187). Routledge.

Gibbons, R. (2005). What is economic sociology? Journal of Economic Perspectives, 19(1), 3–7.

Cohn, M. (2010). Succeeding with agile. Pearson Education.

Garvin, D. A. (1994). Building a learning organization. Business Credit, 96, 19.

Garbie, I. H. (2011). Measuring the agility level in petroleum companies. In IISE Annual Conference Proceedings (p. 1).

Baskaran, V., Singh, S., Reddy, V., & Mohandas, S. (2019). Digital assurance for oil and gas 4.0. In SPE/IATMI Asia Pacific Oil & Gas Conference and Exhibition.

Dam, N. A. K., & Le Dinh, T. (2021). Key performance indicators for crisis-ready organizations. In AMCIS.

Giuliano, A. (2009). Financial services offered by a multidisciplinary B2B network.

Masood, S. A., Jahanzaib, M., & Akhtar, K. (2013). Key performance indicators prioritization in business processes. Life Science Journal, 10(4s), 195–201.

Laurent, D., & Yildiran, C. (2019). Ship finance practices in major shipbuilding economies. OECD Science, Technology and Industry Policy Papers.

Kim, H. T., Na, S., & Ha, W. H. (2011). Marine accident investigation and human error. Journal of the Ergonomics Society of Korea, 30(1), 137–150.

Knemeyer, A. M. (2006). Logistics and supply chain management. Transportation Journal, 45(1), 61–63.

Soyer, B., & Tettenborn, A. (Eds.). (2016). Ship building, sale and finance. CRC Press.

Iaiani, M., Tugnoli, A., Macini, P., & Cozzani, V. (2021). Outage and asset damage in process plants. Reliability Engineering & System Safety, 213, 107685.

Soliman, M. N., Guen, F. Z., Ahmed, S. A., Saleem, H., Khalil, M. J., & Zaidi, S. J. (2021). Energy consumption and environmental impact of desalination plants. Process Safety and Environmental Protection, 147, 589–608.

Wang, C., Zhang, S., & Zhang, X. (2022). How to embrace sustainable performance via green learning orientation: a moderated mediating model. Sustainability, 14(13), 7933.