Leading Innovation and Change Report: Petronas Innovation Strategies

This report provides a detailed analysis of leading innovation and change within Petronas, a major oil and gas company. It begins with an introduction to Petronas, its business operations, and the significance of innovation and change within the organization. The report outlines the aim and objectives, identifying challenges faced by leaders in fostering innovation, such as employee resistance and adaptation difficulties. A situational analysis assesses strategies for leading innovation, including technological investments, partnerships, and the adoption of the Blue Ocean Strategy. The report then explores important changes to business practices for achieving financial value through innovation and sustainability. The second part includes an evidence review, conceptual models, and research methodology. Finally, the report concludes with a reflection on employability enhancement, evaluating skills and leadership requirements for future career development. The report emphasizes the importance of leadership in driving innovation and change, offering insights into Petronas's strategic initiatives and the challenges it faces.

Running head: LEADING INNOVATION AND CHANGE
LEADING INNOVATION AND CHANGE
Name of the Student
Name of the University
Author’s Note

1LEADING INNOVATION AND CHANGE
Table of Contents
PART 1: COMPANY’S REPORT..................................................................................................3
Introduction..................................................................................................................................3
About Petronas.............................................................................................................................3
Aim of the report.........................................................................................................................4
Objectives of the report...............................................................................................................4
Challenges faced by the leaders while fostering innovation and change within this organization
.....................................................................................................................................................5
Situational analysis to assess strategies for leading innovation and change in the present
operating business environment of Petronas...............................................................................6
Important changes to business practices of Petronas for achieving new financial value capture
through innovation for sustainability...........................................................................................8
Tracking system to periodically monitor progress and performance outcomes from defined
leadership position.....................................................................................................................11
Conclusion.....................................................................................................................................13
Part 2: Evidence Report.................................................................................................................15
Introduction................................................................................................................................15
Background information............................................................................................................15
Rationale of research.................................................................................................................16

2LEADING INNOVATION AND CHANGE
Research Problem......................................................................................................................17
Research objectives...................................................................................................................17
Literature Review......................................................................................................................17
Conceptual models for innovation.............................................................................................18
Innovation Genome...................................................................................................................18
The Pentathlon model................................................................................................................20
Conceptual change model..........................................................................................................21
Mc Kinsey7S model..................................................................................................................21
Research Methodology..............................................................................................................22
Data collection method..............................................................................................................23
Sampling method.......................................................................................................................23
Research timeline.......................................................................................................................23
Part 3: Reflection for employability enhancement........................................................................25
Realizing critical thinking and core capabilities needed for achieving this consultancy task...25
Evaluating skills, knowledge and competencies for assessing ability to complete this task.....26
Leadership skills required for future personal development and career accession....................27
References......................................................................................................................................29

3LEADING INNOVATION AND CHANGE
PART 1: COMPANY’S REPORT
Introduction
The present report provides an overview about the importance of leading innovation and
change interventions of the company. The company that is chosen for this assessment is Petronas
that is situated in Malaysia. Innovation and change has huge significance in the organization as it
facilitates them to work in new way and manufacture new commodities and services. Innovation
can also been seen as capacity in changing that can aid the enterprise define new things.
Innovation basically involves change while every change does not involve innovation.
Innovation can be of different form that includes- process innovation, disruptive innovation,
product innovation etc. Additionally, change includes dissolving behavior patterns, establishing
some new behavior and thus making them norm. Change can be of various types – incremental,
revolutionary, reactive and anticipatory, hard and soft changes. Leaders play a vital role in
fostering innovation in the organization. The company that gives priority on innovation tends to
embrace the leaders in order to bring about change in the work environment (Euchner 2017). In
the first part of this study, the strategic initiative of this organization for implementing
innovation and change has been illustrated. The second part highlights on the evidence review
that supports the self-determined conceptual theories. The last part of this report is the reflection
on the enhancement of employability skills readiness.
About Petronas
Petronas (Petroliam Nasional Berhad) is the biggest oil and gas enterprise situated in
Malaysia, which was founded in the year 1974. Petronas has been ranked as the 75th biggest
enterprise in the globe by the Fortune. In addition, this enterprise is also been considered as one

4LEADING INNOVATION AND CHANGE
of the most profitable companies in the globe. This company is mainly owned by the Malaysian
government and thus takes responsibility of the total oil as well as gas resources of this nation.
They basically manufactures products including- petroleum, natural gas and petrochemicals. In
fact, they also offer shipping services to their customers. This company provides huge source of
income basically for the Malaysian government (Petronas.com.my. 2018). They have earned
huge profit in the year 2017 and thus improved in their financial performance. Total number of
employees working in this enterprise is near about 51000 as recorded in the year 2016. This
organization has its business worldwide that is near around 35 nations and thus has 135
subsidiaries. Few subsidiaries of this company are petronas chemical, MISC, KLCC property
Buildings, Petronas Gas, Bintulu Port and so on. Their business strategy regarding their
innovation and change is that they seek to work with worldwide innovators for driving industrial
growth and improve their capabilities. Their business activities involves – development and
manufacture of oil as well as natural gas in both domestic and international market, liquefaction
and transportation of LNG( Liquified Natural Gas), processing as well as transmission of gas,
refining as well as marketing of the petroleum products etc.
Aim of the report
The main objective of this report is to critically analyze contemporary evidence as well as
core knowledge of theory relating to leading innovation and change. In addition to this, a sellf-
determined framework regarding lead innovation in the enterprise context is the aim of this
report. Furthermore, this importance of leadership in fostering innovation and change within the
organization is another objective of this study.

5LEADING INNOVATION AND CHANGE
Objectives of the report
 To identify challenges faced by the leaders while fostering innovation and change within
the organization.
 To analyze strategies for leading innovation and change in present operating business
environment
 To propose change in business practices for achieving financial value through
innovation for sustainability
 To recommend solution and adoption of innovation and change for Petronas
Challenges faced by the leaders while fostering innovation and change within this
organization
Leaders as well as managers also faces huge challenges when managing as well as
leading innovative changes in diverse as well as multicultural business enterprise. One of the
challenges that the leaders of this enterprise face while fostering change and innovation is those
employees who do not support innovative idea. It has been found out by Davila, Epstein and
Shelton (2012) that, in the enterprise where the workers are used to perform daily task in varied
ways, resistance is necessary while introducing change and innovation. There are some workers
in Petronas who are afraid of this change owing to increase in demand for work and insecurity
that they might have regarding innovation. In addition to this, another challenge that the leaders
of this organization faces when leading innovation is the workers facing huge difficulty while
adapting to new change (Vaccaro et al. 2012). It has been noted by some researcher that this
difficulty arises in Petronas owing to diverse business environment. Furthermore, when the
innovative idea is introduced in this enterprise, the leaders also face difficulty in assigning task to
the team members. This is because these employees take time to accustom themselves with this

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innovative idea owing to their different cultural backgrounds. Apart from this, another difficulty
situation arises for the leaders when some of the workers become slow in understanding this new
idea.
Situational analysis to assess strategies for leading innovation and change in the present
operating business environment of Petronas
Strategic situation analysis mainly needs the utilization of business framework for
assessing strategies adopted by the organization for fostering change and innovation in the
presence of operating business environment. Due to the present volatility in the prices of oil,
innovation and change within the enterprise is necessary for minimizing cost as well as
optimizing returns. As the this oil and gas enterprise is mainly run by the government of
Malayasia, the President of this company obeys their order. The management if this enterprise
adopts the strategy to embark on the new phase of innovation and change with the use of new
technology within the business environment. Over the last few years, this enterprise has been
identified as one of the top enterprises in terms of leadership (Schalock and Verdugo 2012). For
making the innovative idea and change to be successful, the leadership team of this enterprise
uses their skills as well as knowledge for executing this properly. Recent study reflects that
leaders of this organization apply proper judgment in the innovative projects in order to make it
successful.
It has been opined by Mohamad and Said (2012) that, gaining competitive advantage
mainly occurs through situational analysis, which involves understanding external as well as
internal business environments. Recent evidences highlights that this enterprise has allocated
near about MYR 1.1 billion for their E&P technology centre in order to develop innovative
technology. This organization implemented this strategy in order to rejuvenate their mature oil

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fields, enhance production in maturing the oil fields and also design methods to monetize their
hydrocarbon resources. For attaining success in this strategy, they have employed more than 150
skilled people. In addition to this, these challenges on commercial as well as technical fronts
have lead to innovations and change, which in turn helped them to reduce overall cost as well as
enhance performance through usage of these technologies. They also strategizes to work with
other technology partners for innovating different products as well as services and bringing about
change in the organization. Moreover, the managers as well as leaders of these organizations also
consider the way their employees adapt to these new changes (Pisano 2015). In fact, these
managers also strategize to motivate their employees for fostering innovation and help them to
become resistant to change. This in turn also improves the performance of these workers.
The leaders of this organization also involve all their team members in the process of
innovation in order to avoid these challenges arising from implementation of new changes. It has
been found out by Fullan (2014) that, the employees might be open to these changes if the
enterprise gives the opportunity to involve them in the process of innovation. Apart from this,
another situation in Petronas highlights that the leaders of this organizations informs their
employees about the innovation idea and also prepares their minds for bringing about the change
within the workplace. It has been opined by Høyrup et al. (2012) that, participation of employees
in the process of innovation also enables the workers to understand their requirement for
innovation and also gives them ideas of different ways of manufacturing innovative product and
service. In addition to this, it also enables the workers to understand their role in this change
adoption.
Recent study reflects that this organization partners with MIT innovation for developing
iCWD( Intelligent Circulation While Driiling). ICWD is a technology that is used by the

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enterprise for reducing drilling cost (Norman and Verganti 2014). However, implementation of
this strategy helps this enterprise to have remote- controlled business operations along with agile
activation. In fact, the innovation of this technology also facilitates the leaders and mangers of
this enterprise to improve their domestic as well as international business operations. All of the
technological endeavors of this enterprise are mainly geared towards driving innovations
basically with the potential of being game-changer for manufacturing, storage and supply of
hydrocarbons worldwide. Additionally, this organization has also adopted BOS ( Blue Ocean
strategy) in their business operations for fostering change within the workplace environment.
This in turn also reaped them huge benefits in account of savings of overall business cost.
Adoption of this strategy also improved their profit margin despite several market challenges.
Furthermore, this company has been leading a sector wide effort including 25 PACs (Petroleum
arrangement contractors) for embracing structural change in oil and gas upstream work
environment in this nation. But still this company should apply several innovative approaches to
the technology, which in turn will help them to unlock as well as maximize sources of energy
from remote as well as difficult environments. Furthermore, in order to foster change within their
workplace, Petronas should also adopt strategy of provide training to their employees on the
utilization of hydrocarbon technologies. This organization should also strive for more innovation
and change for improving yields, increasing efficiency and reducing business costs. Additionally,
it will also help them to improve their business growth.
Important changes to business practices of Petronas for achieving new financial value
capture through innovation for sustainability
The steady growth of Petronas over the last few years reflects their commitment to
innovation, leadership and sustainability of their services and goods. The business practices of

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this enterprise mainly open innovation through challenging creative minds and crowdsourcing
around the world. For this enterprise, sustainability defines as carrying out business in socially
responsible as well as holistic manner for ensuring continued business growth. Sustainability is
mainly guided by the CSF ( Corporate Sustainability Framework) that delineates those areas
where they plays the role in managing their risk as well as affect and also leveraging their
strength for contributing to sustainable development (Doppelt 2017). The CSC ( corporate
sustainability council) is the major deliberative body on issues in this company. This CSC is
basically responsible for their sustainable development policies as well as strategies, specifically
in the areas of world concern that includes change in climate and use of natural resources. They
mainly strive to continue developing their business in socially, environmentally and ethically
responsible manner while facing increasing technical as well as environmental challenges in the
market. They are mainly committed to address all these challenges with the help of their business
practices for building capability in some niche areas and creating positive economic influence in
the communities.
The climatic actions of this company are basically geared towards decreasing GHG
emission through their delivery of business operational excellence. For making this action
successful, they have changed their business practices that involves-
Promoting the natural gas as low carbon fuel-They advocates natural gas utilization as
solution in pathway towards low carbon nation (Ockwell and Mallett 2013). However, they have
gone on board for building PFLNG SATU, which in turn unlocks value mainly from the gas
reserves.

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Improving efficiency of energy in their operations-They have innovated ELMS( Energy and
Loss Management System) for monitoring as well as improving utilization of energy in their
downstream operations. Additionally, they have also innovated cogeneration plants as well as
cooling system for improving efficiency in energy.
Reducing emission of methane in their operations- The carbon commitments of this company
have been designed for adopting zero venting basically for the upstream assets.
Delivering efficiency of fuel in their products-They have innovated fuel saving goods
including Petronas Dynamic Diesel Euro 5 for efficient utilization of fuel and decrease of GHG
emission (Krishna et al. 2012).
Reducing flaring where feasible-The decrease of flaring has been one of the vital aspects
within the carbon commitments of this organization. Moreover, new facilities have been mainly
designed based on the philosophy of zero flaring.
Carbon footprinting practice-Petronas have continuously increased as well as align their
carbon footprinting practices based on the industrial guidelines. In the year 2017, the GHG
emissions of this enterprise have decreased at high rate as compared o previous year. However,
this emission has been one of the main contributors to their carbon footprint (Benn, Edwards and
Williams 2014).
Maritime operations have been one of the vital aspects of their business. There has been
emerging problems impacting the seas that involves- inter- state conflict, piracy, arms
proliferation, trafficking, illegal fishing and so on. However, Petronas have changed their
business practices regarding their maritime security by developing governance mechanisms
according to their SeMS (Security Management Systems). Apart from this, they also conducts

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security assessments by applying asset classification. In addition to this, water being the vital
commodity to this industry, this company has changed their water management practices for
achieving financial value and business growth (Petronas.com.my.2018). They conducts risk
assessment relating to water for identifying as well as assessing stress levels of water and making
changes in management practices of fresh water. They have implemented Water 3R initiative
that is reduce, reuse and recycle for promoting efficient as well as responsible utilization of water
in their business operations. Furthermore, this company also continuously recognizes, evaluates
and controls risk throughout their commodity life cycle. However, the management approach of
their product life cycle mainly entails reduction of hazardous chemicals utilization in both
upstream as well as downstream operations. In the year 2016, the PCG ( Petronas Chemical
Group Bhd) have conducted risk assessment of their product systematically across their portfolio
for facilitating the development of GPSS ( Global Product Safety Summaries).This in turn
provided them product safety and also decreased risk. Although they have changed their
sustainability framework, they should make certain changes and innovate new idea for
improving their business. Being the strategic consultant in this organization, they should foster
innovation as it will help them to supply sustainable as well as affordable energy. Therefore, this
enterprise should change and introduce new business practices for attaining new financial value
and maximize profit in the business.
Tracking system to periodically monitor progress and performance outcomes from defined
leadership position
The leaders as well as managers of the organization are required to monitoring progress
periodically and assessing performance outcomes of action taken by them. Petronas mainly use
tracking system for monitoring progress and outcomes of performance of the products and

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services provided by their employee. Owing to increase in demand, this enterprise requires huge
number of these maritime vessels to move their equipment as well as personnel safely between
two sites. The leaders of Petronas uses vessel tracking system for driving better security,
operational efficiency, cost and safety. This tracking system facilitates this company to reduce
the cost of business and achieve their corporate objectives. However, Petronas has deployed
Clearwater Vessel tracking system for operating in the overseas. In addition, real time tracking of
these vessels usually provides them with vessel visibility (Clearwatertracking.com. 2018).
Besides this, it also provides them with real time vessel visibility speeds. It also permits this
organization to enforce several policies that involves assuring vessels adhere to the optimal
speeds. This in turn reduces huge fuel consumption and motivates them to reduce carbon
emission. Furthermore, it also gives them extra benefits through vessel compliance enforcement.
It duration also helps them to manage fuel in effective way. Adoption of this tracking system
also helps this company to receive their daily report which highlights on the berthing as well as
times per vessel. Thus, implementation of this vessel helps the organization to track location of
this supply vessel. As a result, this helps them to save huge amount on the operating cost of
marine.
Petronas also uses RFID (Radio Frequency identification) for tracking as well as
monitoring activities of the individuals working in different areas. RFID is manly wireless sensor
technology that is based on detection of the electromagnetic signals (Tapp et al. 2012).
Implementation of this technology is mainly e-passport, which involves specific details of
traveler along with destination, time and date of travel. This tracking system utilizes four main
frequency bands that involves- high frequency ( HF), low frequency (LF), microwave frequency
and ultrahigh frequency(UHF). There are times when the leaders integrates RFID systems with

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GUI( graphical user interface) for monitoring as well as tracking of the activities within some of
the designated areas. However, these two tracking system benefits the leaders and managers of
this enterprise as it helps then to track the overall progress of the action. Being the strategic
consultant of this enterprise, it is suggested that the leaders should design their tracking system
by applying their innovative skills and knowledge. Moreover, they should further develop and
design the tracking system by analyzing their target market and rivalries.
Figure 1; RFID tracking system
Source: (Tapp et al. 2012)

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Conclusion
Leaders in this enterprise plays huge role in leading innovation and change within the
workplace environment. Over the years, the company has been recorded good progress in
business owing to adoption of their innovative idea on products and services offered by them.
But the leaders of this enterprise should select different leadership style for creating innovative
culture and integrate change within the system. In addition, they should also implement new
innovative idea regarding development of new technology for innovating products and utilizing
them in business. This in turn will help them to attain higher profit and gain competitive
advantage over the rivalries.

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Part 2: Evidence Report
Introduction
Petronas, the biggest oil and gas Company in Malaysia has been facing several challenges
regarding the innovation and change within the business environment. This enterprise’s formal
leader, Tan Sri Marican played important role in changing the organization by fostering
innovation in services and product. This enterprise has always appointed top personnels in order
to improve performance and growth in business. Even the present leaders of the organization
adopted different leadership style for incorporating innovation culture and change within the
workplace (Maital and Seshadri 2012). In the section, literature is reviewed, the importance of
innovation as well as change is discussed, challenges faced by Petronas relating to this is
explained, relevant evidences for supporting origination of the conceptual model and research
methodology is also discussed.
Background information
The enterprises in the oil and gas sector of this nation are operating in the highly
competitive business environment. The organizations however recruit talented and skilled
personnel within the workplace for leading innovation and change within the organization.
Globalization as well as managerial methods creates several issues within Petronas both in
domestic and international market regarding implementation of innovation and change. In
addition to this, owing to various economic fluctuations, this company tries to keep on changing
their strategy for fostering innovation and change within the workplace. Their desire to improve
continuously and the excel has also ensured that they have continued to deliver differentiated
services as well as innovative products for their customers. It had been stated by Cameron (2012)

16LEADING INNOVATION AND CHANGE
that, the leadership style adopted by the leaders of this enterprise also directly influences
innovation and change within the enterprise. The leaders adopting green innovation strategy
across the enterprise all over the world for improving quality change in working environment
and enhancing supply chain (Hrabowski 2012). Moreover, the technology expertise of this
company also innovate the products and services with the help of differentiated formulation
strategy. In fact, the management of this company analyzes their target market before developing
innovative product and service and implementing change. This strategy also helps them to attain
trust of their customers and attain good reputation in the marketplace.
Rationale of research
In this present highly competitive business environment, successful implementation of
innovation provides the enterprise huge advantage and also improves the performance. The
leaders of Petronas seeks in giving huge significance to innovation of product in order o sustain
in the competitive marketplace. Some of the key areas in which innovation provides competitive
edge to their rivalries involve process, methods of production, suppliers and markets. Some
researchers also found out that effective leadership is extremely vital for managing change in the
present business environment. Change creates positive enterprise culture, which in turn
motivates the workers to learn and communicate with each other. But as the leaders of Petronas
makes changes in their policies and strategizes for implementing change, their employees faces
difficulty in adapting with this change in the enterprise (Schalock and Verdugo 2012).
The rationale of this research is to analyze the importance of innovation and change
within the business environment. The research study focuses on the conceptual models of change
as well as innovation that are needed to be used by Petronas for proposing as well as
implementing change in business and developing innovation idea.

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Research Problem
Petronas being the government owned enterprise is mainly influenced by change in the
policies implemented by the Malyasian government. The employees in this organization face
huge difficulty owing to change in work environment that is basically integrated by the leaders.
Not only the employees but also the leaders face challenges in implementing strategy for
innovation and change owing to different attitude as well as behavior of the other members.
However, conflicts might arise within the workplace and hence creates bad culture in the
enterprise. This company also reshuffles their senior executives in order improve the work
culture and performance. It has been evident from the recent study that this company has
suffered from lower revenue owing to implementation of new policy for innovation and change.
Research objectives
 To identify problems faced by Petronas owing to integration of innovation culture and
change in their present business environment
 To propose change within the company through implementation of innovation as well as
change management practices
 To identify conceptual models relating to innovation
 To analyze impact of innovation and change in Petronas
 To recommend solution for the leaders of this enterprise to improve their strategy for
innovation and change
Literature Review
In this particular section, the literature review is mainly based on the analysis of
conceptual model of innovation and change required for implementing change within Petronas.

18LEADING INNOVATION AND CHANGE
Conceptual models for innovation
Two kinds of conceptual models for innovation can be useful for incorporating change within
Petronas, which includes-
 Innovation Genome
 The Pentathlon model
Innovation Genome
This innovation Genome model refers to a strategic blueprint framework that recognizes and
solves innovative challenges. It is a four quadrant model where each quadrant reflects various
forms of value such as practices and features of the organization. The four quadrants of this
innovation genome model are- Collaborate, compete, control and create. This framework is the
practical method to facilitate the enterprise develops and adopts change as well as innovation.
The measures of this quadrants are linked to certain kinds of practices including- behaviors of
leaders, enterprise practices and the workplace environment (Omicsonline.org. 2018). However,
this model allows to align the company’s practices with strategic factors, which is the key of
developing innovation. The collaborate quadrant represents type of individuals who are mainly
committed to community more than business (Hanington and Martin 2012). Compete profile
indicates type of individuals who always appreciate intensity of achievement as well as
competition. Control profile signifies type of persons who needs incremental change, which is
systematic and practical. They strives to adopt innovation by extending the enterprise existing
goods with less variations. Create profile depicts the type of persons who mainly pursues breaks
from past and breakthrough ideas. It generally integrates three parts involving- people working in
an enterprise, practices and purposes. Some uses of this framework involves-

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 Changing enterprise culture
 Strategic planning
 Developing process of customized innovation
 Incorporating innovation into present business process
 Launching few innovation initiatives
It has been evident from the Petronas report that this company incorporates innovation in
sustainability framework and also in all other business processes. This company has innovated
green energy initiative by installing solar PV system on rooftop of one of the shopping mall
(Tidd and Bessant 2014). Clean energy that is generated from this system mainly contributes to
reduction in greenhouse gas by near about 360000 kg carbon dioxide each year. However,
Petronas should continue to integrate this model for further innovation within the business.
Figure 2: Innovation Genome model

20LEADING INNOVATION AND CHANGE
Source; (Omicsonline.org. 2018)
The Pentathlon model
This framework mainly addresses different procedure and soft enterprise issues for managing
innovation. Petronas must adopt this model for achieving success in innovation and change
within the enterprise. There are five elements in this model that involves-
 The first element is considering satisfaction of the stakeholders specifically customers
while developing innovation strategy
 The second element involves management of innovation and generating ideas as well as
knowledge
 The third element involves those ideas that are to be abandoned and those that are to take
into consideration
 The fourth element includes that the requirement of customers have been met after
adoption of selection innovative idea
 The fifth element involves the fostering of innovation culture in the business.
Although Petronas has achieved success in some of their innovative ideas, their leaders must
utilize this model for making more innovation in future. Recent evidences reflect that conflicts
have occurred between the management and leaders of this company owing to implementation of
strategy relating to innovation and change (Cho et al. 2016). However, implementation of this
model will help the leaders of Petronas to avoid conflict as it involves formal process of
innovating products and service.

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Figure 3: The Pentathalon Innovation model
Source: (Taran, Boer and Lindgren 2016)
Conceptual change model
The change model is one of the valuable tolls that are mainly applied to several situations.
Some of the common uses of this model are –
 The change within the enterprise to be facilitated
 Helping new strategy that is to be adopted
 Identifying the area that is to be changed within the enterprise
 Merger of enterprise to be facilitated
Mc Kinsey7S model
In this model, the soft as well as hard areas of the enterprise are divided into mainly
seven areas. The hard areas of this model are the system, strategy and structure. On the contrary,
the enterprise foundation is the soft area and thereby is difficult to administer to create
competitive advantage (Omicsonline.org. 2018). Furthermore, the strategy as well as structure of
the hard areas of this framework is mainly supported by formal and informal system process. In

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addition, the systems in this area determine that area where the managers should focus on the
overall change in system. The foundation of enterprise basically involves recruitment, reward,
education to the employees and the kind of employees required by enterprise. The core of this
Mc Kinsey 7S Model is mainly the shared values. In all the enterprise it is the basic foundation
that the enterprise actions (Cummings and Worley 2014). Petronas should also implement this
model for guiding the behavior of leaders as well as employees through proper norms.
Research Methodology
Research design is used by the researcher to design the whole research study in
systematic manner. There are three kinds of research design involving- explanatory, exploratory
and descriptive (Mitchell and Jolley 2012). In this particular research study, the researcher will
take descriptive research design for analyzing the importance of innovation and change within
Petronas by collecting detailed data from all sources.
Research philosophy refers to the concept that describes the collection, utilization and
analysis of data. This philosophy considers two kinds of beliefs including- doxology and
epistemology (Flick 2015). Research philosophy is divided into four types- interpretivism,
positivism, pragmatism and realism. For this research, positivism philosophy will be taken by the
researcher as it facilitates to gather data through quantitative and qualitative method.
Research approach refers to the approach that aids to interpret data with proper analysis.
There are two kinds of research approaches involving- inductive and deductive approach
(Sekaran and Bougie 2016). For this specific research, deductive approach will be taken by the
researcher as it facilitates to analyze data from the theoretical perspectives. This approach is also
useful in making quantitative investigation on the innovation and change occurred in Petronas.

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Data collection method
This refers to the systematic method that enables researcher to gather data based on the
research questions. There are generally two kinds of data collection method- primary and
secondary. The researcher will take both primary as well as secondary data for doing this
research. For collecting primary data, survey will be conducted by researcher. Close-ended
questionnaire will be designed for the employees of Petronas. On the other hand, the researcher
will gather secondary data from company’s website, journals, articles, books etc.
Sampling method
For collecting the data, the total sample size will be about 150 employees involving
leaders, managers and workers. The survey will be conducted by the researcher based on the
random sampling method as it facilitates to gather data from subset of total population. While
collecting this data, interview of the leaders of Petronas will also be taken by researcher.
Research timeline
Activities Week 1 Week 3 Week 5 Week 7 Week 9 Week 10 Week 11
Selection
of the topic
✓
Review of
literature
✓
Identifying
process of
data
collection
✓

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Gathering
data
(Survey
and
Interview)
✓
Analysis of
Data
(Primary as
well as
secondary)
✓
Conclusion ✓
Final
Submissio
n
✓
Table 4: Proposed Gantt chart
(Source: Author’s Creation)

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Part 3: Reflection for enhancement of employability
Realizing the critical thinking as well as core capabilities required for attaining this
consultancy task
Innovation as a source of competitive advantage for enterprise has been the consolidated
problem for the past few decades. This has been mainly attained when the organizations either
develop or possess their technological capabilities. The ability of the enterprise for technological
development leads to huge technical change, which in turn permits for successful process of
innovation. One of the important drivers of innovation and change within the business is
effective leadership style adopted by the leaders and managers of the enterprise. Consultancy
task has been difficult for me to comprehend since I had to properly understand the requirement
relating to this preset topic that aligns with the leading innovation and change. I went through all
the innovations and change occurred in Petronas in the past and present years. However, I found
out that although this enterprise has innovated different technologies and services for reducing
cost and increasing productivity, they still need strive for more innovation. Furthermore, recent
study reflects that Petronas faced several challenges while fostering innovation and change
within the business. I have incorporated several articles and concepts behind analyzing
innovation and the drivers that are required for change. Moreover, I have also found out that
critical thinking of the leaders is necessary for fostering innovation since their judgement us
mainly required for producing desired value outcomes. The contemporary enterprise evidences
was not sufficient for analyzing this study as all the strategies adopted by the leaders has not
been disclosed by them. Moreover, this information about this company’s innovation has been
gathered from the secondary sources including internet, journals etc. These secondary sources

27LEADING INNOVATION AND CHANGE
helped me to gather the idea about significance of leaders in the development of innovative idea
and bringing about change within the workplace. Petronas enterprise report helped me to gather
information about the current innovation and change occurred in the present years. I also
increased my knowledge about this topic from different newspaper articles of Petronas.
However, the core capabilities that is required for achieving this task is detailed study on the
leadership skills and knowledge required by the leaders to innovate idea and implementation of
proper strategy in bringing about change within the workplace.
Assessing current skills, knowledge and competencies for analyzing my ability to complete
this consultancy task
The present knowledge about this topic gathered from the secondary sources helped me
to complete this consultancy task. As research work on this topic required systematic approach,
my present knowledge gathered from secondary sources about the theories of innovation process
and factors integrating change helped me to complete this consultancy task. As I have done
internship in a particular enterprise, it facilitated me to gather knowledge about the innovation
process and effective leadership skills to be applied for implementing change within the
business. I lacked certain skills that created difficulty for me to complete this consultancy task.
As I have good communication and interpersonal skills, it facilitated me to convince the leaders
about the requirement of innovation and change within the organization. I have the skill of
listening others and open to criticism, which in turn helps me to listen to leader’s feedback. My
critical thinking skill facilitates me to understand the attitude of the leaders of this company and
provide them knowledge of innovation and change need. I also have the skill of stepping out of
my comfort zone and meet with all the leaders as well as managers of this organization for
establishing their idea on innovation. My creativity skill also helps me to provide creative idea to

28LEADING INNOVATION AND CHANGE
the leaders about innovation and change. But I have lack in time management, decision making
and confidence skill and hence this creates difficulty in implementing new idea to the leaders.
Competency refers to the capability in applying set of knowledge and skills for successfully
performing critical functions regarding work in specific work setting. This usually serves the
basis mainly for the skills standards that mainly specifies the knowledge level and abilities
needed for success in organizations. The main competencies that are required for completing this
task are communication, planning and organizing resources, teamwork, development of team,
time management skills, decision making and active listening. My teamwork, team building,
team development competencies helps to solve conflict occurring during completion of this task.
Leadership skills needed for career accession and personal development in future
Effective leadership skills are mainly required for future personal development, setting
target and career accession. I have continuously improved my leadership skills for keeping skill
set aligned with changing target as well as priorities of the laborforce. The leadership skills that
is basically needed for personal development and accession of career in future are- interpersonal
skills, motivating the team members, critical thinking, taking initiative, knowing the method of
delegation, tackling of conflicts and so on. By taking the role of strategic consultant, I mainly
need to sharpen communication skill, critical thinking ability, understanding proper delegation
method and time-management skill. Proper time management skill will aid me to complete the
task within specified time and achieve the target. In addition, sharpening communication skill
will help me to communicate with senior leaders with huge level of confidence and improve the
presentation as well as negotiation skill. Furthermore, critical thinking ability will also helps me
to strategically plan the process of innovation and change to be implemented in the enterprise.
Besides this, it will also help me to foresee issues and develop method for preventing problems.

29LEADING INNOVATION AND CHANGE
Improving proper delegation method skill helps me to integrate effective strategy in the process
and attain huge success in the business. Thus it is necessary for every leader to improve their
leadership skill as well as knowledge and adopt leadership skill for designing career accession
and personal development plan.

30LEADING INNOVATION AND CHANGE
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