Corporate renewal in the natural gas industry

The changes occurring at the gas-related operating companies of Nova Corporation of Alberta are reviewed. These companies include Nova Gas Transmission, Alberta's major gas pipeline company, which moved 3.8 trillion ft3 of gas in 1993; Nova Gas Services, a provider of gas management services to customers in Canada, USA, and Mexico; and Novacorp International, a joint venture investor in gas pipeline developments and consulting. The changes were made in response to increased competition in the gas transport industry following the deregulation process that started in the mid-1980s. A strategic direction based on growth rather than cost-cutting was chosen in order to make the Nova companies dominant players in North American gas supply. Nova's confidence in being able to implement such a strategy is based on four factors: abundant supply of gas and high potential for growth in the Western Canada Sedimentary Basin; steadily growing demand for gas; the development of a market-responsive industry; and the emergence of a truly North American market that includes Mexico. Business transformation teams were established with the task of finding out the right business design to meet customer needs and to provide exceptional service. Detailed plans for implementing the transformation are being completed, and a performance measurement system with clear targets has been developed to measure the success of the transformation