THE BIG PICTURE - Ward Petroleum

Ward Petroleum—October 2015Through the PipelineT H E B I G P I C T U REExecution: T he Fi rst Disci pli ne ¹“Power isn’t controlat all — power isstrength, and givingthat strength to others. A leader isn’tsomeone who forcesothers to make himstronger; a leader issomeone willing togive his strength toothers that they mayhave the strength tostand on theirown.” ― Beth RevisIn the May Big Picture article, we began a discussion onexecution. We defined the real enemy of execution as thewhirlwind. Over the next few months, I will discuss the fourdisciplines of execution and how they can apply to Ward. Just asthere are principles that govern human behavior, there areprinciples that govern how teams get things done, or how theyexecute. The principles of execution have always been focus,leverage, engagement and accountability. Understandingthese principles has not been the problem. The challenge for leadersand their teams has been finding a way to implement them, especiallywhen the whirlwind is raging.BILL WARDChairman, President& CEODiscipline #1: Focus on the Wildly Important (WIG)This discipline may seem simplistic at first glance, but it is not simple. Focus your finestefforts on the one or two goals that will make all the difference instead of giving mediocreefforts to dozens of goals. Execution starts with focus. When it comes to setting andachieving goals, the law of diminishing returns is as real as the law of gravity.In this issue:The Big Picture1-3Ward Golf Tournament4&5FYICalendar7Around WardWard Chili Cook Off8¹This article is based on principles presented in The 4 Disciplines of Execution by Sean Covey and Jim Huling.Continued on page 21

Ward Petroleum—October 2015Here is the science behind these findings. Human beings are genetically hardwired to do one thing at a time withexcellence. You’re probably thinking – proudly – that you’re great at multitasking and can get a lot of things done at thesame time. To the Wildly Important Goal, you want to devote your best effort. Science tells us the human brain can givefull focus to only a single object at any given moment. In our culture of multitasking, “The neural circuits devoted toscanning, skimming, and multitasking are expanding and strengthening, while those used for reading and thinking deeply,with sustained concentration, are weakening or eroding.” What’s the consequence? “Habitual multitaskers may besacrificing performance on the primary task. They are suckers for irrelevancy.”² “Improving our ability to multitaskactually hampers our ability to think deeply and creatively the more you multitask the less deliberative you become;the less you’re able to think and reason out problems.”³Of course, you don’t have to overload the brain. You can leverage the brain’s capacity to concentrate on one wildlyimportant goal at a time, while still being aware of other priorities. To succeed, you must be willing to make the hardchoices that separate what is wildly important from all the many other merely important goals on your radar. You don’tabandon all your other important goals. They are still on your radar, but they don’t require your finest diligence andeffort right now. People who try to push too many goals at once usually wind up doing a mediocre job on all of them.You can ignore the principle of focus, but it won’t ignore you.Here is the challenge. Many of us are hardwired to violate this first discipline of execution. Creative and ambitiouspeople always want to do more. You can see more than a dozen existing things that need improvement and anotherdozen new opportunities you would like to be chasing on any given day. On top of that, there are other people and theiragendas that can be adding to your goals.The greatest challenge you face in narrowing your goals is simply that it requires you to say no to a lot of good ideas.Nothing is more counter intuitive than saying no to a good idea, and nothing is a bigger destroyer of focus than alwayssaying yes. As Stephen Covey says, “You have to decide what your highest priorities are and have the courage –pleasantly, smiling, unapologetically – to say no to other things. And the way you do that is to have a bigger ‘yes’ burninginside.”A second challenge we face is trying to turn everything in the whirlwind into a WIG. Within the whirlwind are all of ourexisting measures for running the organization today, illustrated below as dials. It is perfectly appropriate for our team tospend 80% of their time and energy sustaining or incrementally improving the whirlwind and the goals within. But, if ourteam is spending 100% of their energy trying to significantly improve all of those dials at once, we will have lost focus.²Professor Clifford Nass of Stanford UniversityᵌJordan Grafman, National Institute of Neurological Disorders and Stroke2Continued on page 3

Ward Petroleum—October 2015Identifying our Wildly Important GoalsFor Ward, the organizational WIG is not difficult to identify. Our Vison for WEP is to create 500 million in value by theend of 2018.⁴ This is our “WAR WIG”. The challenge now becomes, how do we choose the supporting WIG’s that willensure we accomplish our WAR WIG? Let me illustrate with the following diagram:Teams can take different shapes in Ward. We have Departmental Teams and Inter-departmental Teams. These are theteams that will determine the supporting WIG’s (BATTLE WIG) and fight the battles that win the WAR. Let me illustratewith an example.ExampleOne of our 2015 Company Performance Commitments is to add a targeted 15,000 MBOE of Reserves through acreageadditions or identification of new resource on existing acreage. Let’s assume our team has come together and agrees thatthis is an important supporting goal. The reasoning behind this would be that we need a deep inventory of opportunities toreach our WAR WIG of 500 MM in value by 2018. Adding 15,000 MBOE (Reserve Additions) of reserves to WEP by theend of 2015 would be a BATTLE WIG. The teams responsible for reserve additions would include Geologists, Engineersand Landmen. The reserve addition goal would be broken down by project area with an exploration team assigned to each.Each team would have a specific goal for each project area. Let’s look at our Loyd5 project area specifically. For 2015, weare targeting adding 5 MBOE in this project area. This can be translated into a very specific goal of adding 325 of tier 1 netacres in our Loyd project by the end of 2015. This gives very specific targets for our Land Team that is working this project.Guidelines to follow when implementing Discipline #11. No team focuses on more than two WIG’s at the same time.2. The battles you choose must win the war.3. Senior leaders can veto, but not dictate.4. All WIG’s must have a finish line in the form of from X to Y by when.In the next few months, I will discuss the next three disciplines which include: Acting on lead measures. Keeping a compelling scorecard. Creating a cadence of ased on the many good opportunities we are currently evaluating, Leadership may raise the value stated in our Vision.5Projectnames have been changed for confidentiality purposes.3

Ward Petroleum—October 201531st Annual Golf TournamentThe Teams .Dave Stone’s TeamRichard Easley’s TeamEvan Ward’s TeamBrenda Brummal’s TeamMarshall Hall’s TeamBill Ward’s TeamMark Jopling’s TeamLynn Combs &Melodie Turnbow—RegistrationLarry Jenkins’ TeamTim Collins’ TeamKimberly Mitchell’s TeamTom Taylor’s TeamMichael Hodges’ TeamJames Jackson’s TeamMike Cocheres’ Team4Drew Deaton’s Team

Ward Petroleum—October 2015Kevin Smith’s TeamMika Dick’s TeamLarry Jenkins,TournamentCoordinatorThe Winners .5

Ward Petroleum—October 2015Let there be lightTwo factory workers were talking. The woman said, “I can make the bossgive me the day off.”The man replied, “How can you do that?”The woman winked at him. “Just wait and see.”When the boss came by a few minutes later, he found the woman hangingupside down from the ceiling. “What are you doing up there?” he demanded.“I’m a light bulb!” she said.The boss looked concerned. “You know, I think you’ve been working too hard. Why don’tyou take the day off?”She jumped down and headed for the door. The man started to follow.“Hey, wait a minute!” the boss shouted. “Where are you going?”The man pointed at his co-worker. “I can’t work in the dark.”Guns in the U.S. on the decline?Although gun-related violence seems to dominate the headlines, gun ownership in theU.S. appears to be declining, at least according to the University of Chicago’s GeneralSocial Survey.The survey found that 32 percent of Americans either own a firearmor live with someone who owns a gun, tying with a record low infirearm ownership from 2010. The 32 percent figure represents asharp drop from the late 1970s and early 1980s, when close to 50percent of Americans indicated that they had a firearm in their home.The GSS researchers believe that the decline in gun ownership is related to a drop ininterest in hunting. In 1977, 32 percent of Americans said they lived with at least onehunter; fewer than 16 percent say the same today.QUOTESWithoutmathematics, there’snothing you can do.Everything aroundyou is mathematics.Everything aroundyou is numbers.—Shakuntala DeviGood health is notsomething we canbuy. However, it canbe an extremelyvaluable savingsaccount.—Anne WilsonSchaefWhen you accept aleadership role, youtake on extraresponsibility for youractions towardothers.—Kelley ArmstrongBut the real secret tolifelong good health isactually the opposite:Let your body takecare of you.—Deepak ChopraSuccess is findingsatisfaction in giving alittle more than youtake.—Christopher ReeveThe starting point ofMarshall Hall and Mark Jopling at the Fishing/Golf Retreat in ColoradoWe do not remember days; we remember moments.—Cesare Pavese6all achievement isdesire.—Napoleon Hill

Ward Petroleum—October 2015OCTOBERBIRTHDAYSAmanda Goodman10-03Rosie Pomeroy10-06Terri Houska10-08Mika Dick10-11Wally Gilbreath10-14Richard Easley10-15Mark Jopling10-22Kent Clingenpeel10-24Susan Hessel10-28ANNIVERSARIESMary Kruger10-1334 yrsKent Craig10-131 yrStuart Houska10-157 yrsGilbert Tompson 10-1732 yrsJudy Martin27 yrs10-17Amanda Goodman 10-21October 2015SunMonTueWedThuFriSat1234 Octoberfest 56789 PD1011131415161712Columbus DayBosses Day181920212223PD2425262728293031Halloween2 yrsRosie Pomeroy 10-2334 yrsGinny McCoy 10-3114 yrsProtecting your eyes from injury is one of the most basic things you can do to keep your vision healthythroughout your life. The American Academy of Ophthalmology reminds everyone to wear protectiveeyewear when performing home repairs or maintenance, and while playing sports.November 2015SunMon12Daylight SavingsTue3Fall BackNovember 1st @ 2 amWed4ThuFri56 PDSat7EndsGain an hour8BIRTHDAYSDrew Deaton91011121314Veteran’s Day15NOVEMBER1617181920 PD2111-05Jody Kuberskey11-07Steve Eckert11-15Patricia Vilhauer11-19Gilbert Tompson11-21Mary 3028Brenda Brummal34 years11-16Marcus Stephens1 year11-17Save the Date!Ward Christmas Party—Dec 19th7