finance
monthly
Personal Finance. Money. Investing.
Contribute
Newsletter
Corporate

Commuting to work has been a topic of many conversations. We all discuss and explore our options: walking, cycling, driving, car sharing, or staying with the good old public transport. For people working, offshore choices are limited and safety concerns are high and many. Reflex Marine Ltd, a company founded over 25 years ago, dedicates all its time and resources to developing and facilitating safe crew transfers by crane. FROG, Reflex Marine’s main product, found its way to all continents and their many offshore platforms, vessels and installations. FROGs helps transfer over a million offshore workers each year; it’s a simple yet safe, efficient and flexible way to reach your work post on the sea.

Earlier this month, we sat down with Sandra Antonovic, Chief Operating Officer for Reflex Marine and we talked about revolutionising marine transfer.

 

Maybe we could start by quickly summarising what is it that you do at Reflex Marine?

The role of Chief Operating Officer is a very complex and layered one in any company, maybe more so in Reflex Marine, because we are small in number of people (less than 20), yet we cover the market globally and are involved in all stages of product development, product testing, product manufacturing, product marketing, positioning and placement, and finally post-sale client support and service. The very essence of my job is understanding the market and the ways it grows, changes and/or shifts; creating a space for our company in that market and then making sure we deliver in the most efficient and effective way possible. It is an incredibly interesting, eclectic and multi-faceted job covering anything from designing, negotiating and closing a fleet deal with a major client, to looking at the cash flow or projected earnings.

 

How do you ensure you can effectively do your job without feeling overwhelmed?

People reach corporate or C-suite positions because they have the ability to stay focused regardless of what goes on, they can filter through the noise and they are able to make decisions in matter of seconds, if necessary. These people perform best in high-paced, very demanding environments, and they are able to deliver in the most strenuous circumstances. Their motivation, their drive and their stamina comes from within, not from the outside. Once your motivation starts depending on other people or circumstances, you are limiting yourself and what you can achieve. At the very beginning of my career, almost 25 years ago, I understood that growth, both personal and professional; but also the growth of a business; is all about willingness to accept responsibility and accountability, as well as about being comfortable outside your comfort zone.

 

A lot of people in the offshore industry, particularly offshore safety, say that Reflex Marine revolutionised marine transfer. What is it like to work for such a company, and how do you see that ‘revolution’?

Yes, you are absolutely right, Reflex Marine very much revolutionised the way people think about offshore crew transfer; and it certainly revolutionised marine transfer. Almost singlehandedly, Reflex Marine transformed marine transfer from an obsolete and risky operation to one of the safest methods of crew transfer offshore. We remained revolutionaries over the years, in how we do business, in how we approach the market and in how we keep reinventing ourselves; never forgetting our prime purpose: designing and delivering products that ensure the highest level of offshore safety.  Working for Reflex Marine has always been a great honour for me.

 

You say that Reflex Marine remained a revolutionary over the years. Could you please expand on that?

Reflex Marine has always been and always will be a company that pushes the boundaries and explores the unexplored, not just in what kind of products we design and manufacture, but in how we do it. When we talk about offshore crew transfer, it often sounds “either/or” – either you use helicopters, or you use crane transfer; either you use crane transfer, or you use gangway. In practice, in real life situations, things are never that black or white. Commuting to work onshore looks simple in comparison. Every morning we make a choice how to get to work – walking, cycling, taking the metro, or a bus, or driving a car. Going to work offshore doesn’t give us that many options, and the way of commuting is predefined by the operator. Helicopters are good for getting people from the port to remote installations in deep water; gangways are useful when we need to get large number of crew from a vessel to the platform; and then there is transfer by crane, which gives flexibility and cost effectiveness.  Thirty years ago, transferring people by crane had its challenges – people were transferred in net ‘baskets’, unprotected and exposed. “How can we keep the cost effectiveness and flexibility offered by crane transfer while ensuring people are safe and protected from impacts and harsh weather?”, was the question Philip Strong, Reflex Marine’s CEO and the person behind the FROG idea, kept asking himself as he embarked on a journey of improving safety of offshore crew transfer. Several years later, the first FROG was sold. The original FROG range was launched in 1999 and fifteen years later, the re-designed and re-engineered FROG-XT range was introduced to the global market.

 

Would you say that design and technical features helped your product differentiate itself on the market and would you say it helped you define the unique selling proposition?

Very much so. The FROG-XT Personnel Transfer Carriers (PTCs) are personnel transfer device designed to provide increased passenger protection when carrying out the transfer of personnel between vessels and installations. Crane personnel transfers are carried out for a wide variety of reasons including routine, urgent operational and emergency reasons. The FROG-XT can accommodate a stretcher to transfer injured personnel in a protected environment. ‘The FROG-XT comprises the following two main assemblies: firstly, the stainless steel outer framework containing polyethylene buoyancy panels; secondly, a spring-dampened seating assembly mounted on a central column. All materials have been selected specifically to minimise corrosion in the marine environment. The outer framework protects passengers from impacts and contains the buoyant elements which ensure the FROG-XT floats and is self-righting in water. The outer shell lands on four feet that provide shock absorption and ensure that the FROG-XT is stable on uneven surfaces or when landing on a heaving vessel. The outer shell also has four large open accesses that allow rapid unimpeded entry and exit. During transit passengers are seated and secured with full harnesses to protect them against whiplash and falling. Seating is mounted on a sprung carriage to provide protection against heavy landings. The lifting assembly is of a special design to prevent rotation.

Each Reflex Marine personnel transfer product is specified within the following controlled documents: » Build Manual – A controlled document with all relevant manufacture and assembly instructions and quality and documentation requirements; » Drawing Package – A complete listing of all pertinent drawings (in all pertinent to the model and revision); » Design Dossier – A controlled document with all relevant, design calculations and standards, risk assessments and compliance testing data; » User Manual – A controlled document with the required end-user information and maintenance and inspection requirements for use throughout the product life.

 

Safety of the transfer operation is both a function of the design and of the operation of the FROG-XT unit. The FROG-XT Design Dossier sets out to establish the performance expectations and define the safe operating envelop of the design and to understand the risks of operation and how these might be operationally mitigated and controlled.

There are large number of factors that affect the safe conduct of marine personnel transfers. These include crew skill and experience, met-ocean conditions, landing areas, vessel station keeping capability and response to sea conditions, visibility and line of sight. A combination of many factors will determine the risk involved.

 

What is the situation in the offshore industry generally, when we talk about safety in crew transfer?

Before Reflex Marine’s work began, there was no central database for marine transfer incidents. By collecting and analysing data spanning a 20-year period, the company was been able to isolate when and where these incidents happen. Crucially, this allows us to consider how best to protect personnel with the carriers we create. As expected, the study showed that most incidents happen on the vessel itself. Less predictable was the high level taking place during pick-up, which can result in serious injuries or fatalities, compared to those caused by heavy landing, which are more likely to result in minor injuries. From detailed analysis, it was found that many incidents are caused by the pendulum ‘swing factor’: an often unavoidable misalignment between the crane line and the transfer device. The research showed that the pivotal risk factors in transfers are equipment design and crane operating error. Very few incidents relate directly to the condition of the transfer device or crane; instead, the design of the equipment often has a powerful effect on its safety. A lack of training, planning and preparation was also a concern in a considerable number of the incidents studied. Using these findings, Reflex Marine tailored their carriers to address the specific risks crews face. With falls during pick-up causing serious injuries or even fatalities, Reflex Marine developed devices that offer additional safety measures. Passenger fall restraints are a design essential in all of their carriers, preventing loss of grip or dislodging. A protective outer frame and buoyancy panels reduce the dangerous effects of side impact, which frequently results from the pendulum ‘swing factor’. Reflex Marine also put in place comprehensive training programmes to encourage safe practice.

 

We touched a few times on a new market approach the company developed. Tell us a bit more about that.

Reflex Marine Ltd designs, engineers, manufactures and markets crew transfer carriers, also known as FROGs. The company was founded 25 years ago, and our dedication to safety and efficiency earned us over one million transfers per year, with over eight consecutive years without a lost time incident. We were always very focused on the quality and safety. The last oil price downturn, a few years ago, showed us that we need to be equally focused on the market and The Client.

Our core market has always been offshore oil and gas. IOCs, drilling companies, supply vessel companies. We never really looked elsewhere, at least not in the strategic, long-term way. The oil price was stable, purchase orders were coming through, market share sounded okay, and we carried on for years. Our main ambition was to improve our original FROG range; and we certainly did that with our FROG-XT range, launched back in 2014.

We were proud of our work and product innovation, delivered by our in-house designers and engineers. We were then, and still are today, the only manufacturer of personnel transfer carriers delivering the products developed and rigorously tested taking into the account different body types, impacts different operational transfer situations might have on a human body, human behaviour and weather conditions. FROG-XT range was tested using techniques and approach very similar to those testing a VOLVO car. We were keen to deliver the safest crew transfer option, and we succeeded. One question remained, though – how do we make sure we can continue our work amidst severe market fluctuations that are impacting our bottom line?

Looking back, the answer now seems obvious, but back in 2015 it raised a few eyebrows and meant the entire team had to get outside of their comfort zone. We decided to diversify to other offshore sectors. We started researching merchant shipping, tankers, VLCCs, ports, navy and coastal guard, and yes, LNG. The potential was enormous. Our decision to diversify triggered many changes in how we work and with whom. We were actively pursuing the market and we started creating our own opportunities through layers of activities: editorials and interviews; attending and exhibiting at large expos; speaking at conferences; organising webinars and using any and every other opportunity to share our knowledge and experience. We never chased contracts, we chased opportunities to share what we know, for free. We chased opportunities to discuss and debate; but most of all, we chased the opportunities to listen and learn.

The narrative became very important – the context – why did something happen, how did it happen, what caused it and so on. The company used to look at numbers only, revenue, expenses, manufacturing costs, overheads. Having a more corporate finance angle and approach the entire team started to appreciate the need and importance to have narratives accompanying every report, and to have an understanding of the context. We focused on analysis, on market research, on understanding our weaknesses and on working hard to mitigate the risks they could have created. We became very bold in our thinking; and it helped with the general attitude and team’s confidence.

We recognised that the market conditions changed. While that change started long before the oil price drop, it became evident and emphasised during the last oil price crisis. The cost of oil production offshore has always been high, so it comes as no surprise that oil operators and the industry’s supply chain generally made a lot of effort to reduce the time of exploration and production. What used to take two years, now takes eight months, and so on. For suppliers that meant only one thing – adapt, and do it fast. You have to reduce your lead time, your transit time, you have to lower the prices and you have to be available 24/7. Flexibility and responsiveness are the key ingredients.

Reflex Marine reduced the number of its employees by 30%, but increased productivity and responsiveness by 50-60%. We have a much better understanding of the global markets and we are able to see and comprehend the fine layers of the industry. We moved from a company that operates from 9-5 in one time zone, to a company that operates almost 24/7 in all time zones. It doesn’t mean people don’t sleep; it just means we do things in a very different way than we used to. The focus is on the outside, on the market, on the client, and on our role in helping them solve their problems. The change in focus changed everything for us.

Defining and developing a strategy for any region inevitably includes understanding the wider geopolitical context, market volatility, currency fluctuations, and inevitably, the oil price trend. Having that context helped us define and deliver the strategy that improves, strengthens and facilitates the operations of our clients.

 

What is the role of international agreements, regulations and bodies in understanding SWOT analytics and strategy planning?

International agreements, regulations and regulatory bodies can have quite a significant role in strategy planning and looking at SWOT analysis. One of the most recent examples is when Brazilian regulatory body for offshore operations changed the regulation on what types of carriers can be used to move people back and forth while working offshore. That change stipulates that people have to be seated, and we are one of two companies that manufactures personnel transfer carriers for seated passengers. Needless to say this change had and will have a huge impact on our strategy, from supply chain, manufacturing, post-sale approach, market communications and general focus.

 

What is next for Reflex Marine?

Keep innovating. Standing still is a terminal illness. We have a very defined idea on where we want to be two years from now, but also five and ten years from now. I see Reflex Marine as a company that will always be an innovator, both in products we place on the market, but more so in the approach we take and particularly, in how we execute our ideas. Execution will be the key, understanding the market and behavioural change is essential, without those things there is no real progress, no real revolution (laughs). I am confident and excited about Reflex Marine’s future.

 

Website: https://www.reflexmarine.com/

In this issue, we sat down with Sandra Antonovic, Chief Operating Officer at Reflex Marine Ltd, a company that designs, manufactures and markets offshore personnel transfer carriers. Ms Antonovic is responsible for global commercial development and strategic business positioning.

 

You have twenty years of experience working for multinational companies across a range of industries, but you are fairly new to the offshore industry. What made you decide to take a job in this sector?

A combination of factors, from family context to personal interest; but I think challenge was the deciding one. I was hired when the company was in a serious crisis, and the question “Can I turn this thing around and make it work” created a very positive trigger in my mind.

If you are focused on understanding the problem and the context around it – how was the problem created and why; if you are focused on solving the problem and if you find difficulties on the road stimulating rather than discouraging, I don’t think it matters what industry you are in. It is like being a film producer – you take the topic of the film and you run with it, you make the best production you can.

Starting to work in an industry you are not that familiar helps with a few other things – you keep going back to basics and you keep questioning everything, because you are not “settled in” and your mind doesn’t (yet) have that, sometimes dangerous, trait “Oh, I’ve done this a thousand times, I could do it in my sleep; I’ll just wing it.”

Being new makes you do your homework, it makes you look at things from different angles, it makes you come prepared. It also helps you think out of the box, have a fresh pair of eyes, see new opportunities and solutions and be unburdened with “historic context” both within your organization and elsewhere.

People may like it or they may hate it, but one thing is certain – they won’t be indifferent to it; and slowly but surely, the change will start happening.

 

You said you were hired when the company was going through a serious crisis. Interesting timing, some might say.

I have been on the Board of Reflex Marine since early 2014; but apart from a few annual meetings, I wasn’t really involved in the business, nor did I fully understand the huge impact internal context would have on the future of the company.

While there was a significant downturn in the oil and gas industry triggered by the incredible oil price drop, the crisis that hit Reflex Marine was mainly due to internal factors. Having had a fair number of successful years, having been on the market for over 20 years, having been based in the South West of UK, an area not much to do with offshore industry, and having had a team of very young, very local, internationally inexperienced people eventually caused reactive approach to the business and the industry.

Being reactive in any industry and any line of business never really works out; and for a company like Reflex Marine, that prides itself on being innovative when it comes to crew transfer problem solving, product design and engineering, even marketing, being reactive was basically against the very core essence of the company.

 

How do you “fix” reactiveness? Can it be fixed?

Everything can be fixed if you really want to fix it. The first step in solving a problem is recognizing there is a problem. That was the most difficult and challenging part. Being new on the team, and saying, literally on your first day “You have a serious problem”. Even the most open-minded people might see you as a “disruption”.

 

How do you deal with that?

Understanding human behaviour and reactions helps you not take things personally, and stay focused on the job. Understanding that you need a team to succeed motivates you to find a way to work with people who may not like what you do, or may not understand your vision or strategy or even a short-term plan. It’s a fine balance; but ultimately your responsibility is to the company, not individuals. You can easily get trapped in dealing with stubbornness and tantrums, or insecurities of team members. If you are to succeed you mustn’t deviate too much, and staying focused takes practice and experience.

 

How did you deal with insecurities people inevitably have?

The only thing you can do, as a manager, is create a platform where knowledge transfer can occur in an (almost) natural way. The rest is up to every person – they either want to learn, or they don’t. They either want to be the best version of themselves, or they don’t. It is up to each individual to make that determination. I believe people can make you think, and see things from a different angle; but when it comes down to motivation, no one can motivate you except yourself. The same way no one can make you happy but yourself.

The responsibility of a manager is to care for and about people, to create the best possible work environment and to create a platform for learning and growing. A bit like a parent who clothes you and feeds you and schools you, and may set some examples for you, but at the end of the day, you become a person you want to be (or you think you should be). Once people start realizing that they actually have the power to change their lives and / or careers, and the way they feel about work, magic things can happen.

 

You have a corporate finance background, yet at Reflex Marine your focus is on global commercial development and strategic business positioning. Was it difficult to adjust to this role?

No, not really. Having a corporate finance background helped me in many ways; particularly in understanding market shifts, geopolitical context and the impact of currency fluctuations. It was also invaluable in pricing strategy, growth forecasts, interpreting trends and understanding the long-term potential, rather than getting trapped in daily (financial) noise.

 

You mentioned geopolitical context. How do you see the importance of understanding macroeconomic factors in market development and crisis management?

We live in a volatile world, and most industries are quite volatile. The offshore industry particularly so. You have to do your homework, you have to understand what things, other than simple supply and demand, may impact or are impacting the global market. You also need to understand regional and sub-regional particularities.

When you are trying to recover a distressed company, the most important thing is not to rush; but you also need to act quickly. Time is, more often than not, of essence. It sounds like a paradox, but it really isn’t.

You need to be able to stay calm, and not panic. Yes, the cashflow is pretty bad, the sales are recovering slower than you would want them too, people are resisting change and so on and so forth. You have to look at those things as noise, a chatter, and you need to block it out so that you can give yourself time and space to look at the big picture. The more experience you have, the easier it is to switch between looking at the big picture, and dealing with day-to-day issues.

Understanding even the basics of geopolitics, recent history and current affairs helps your ability to detach yourself from daily work life and have an overall view of threats and opportunities, weaknesses and strengths. Understanding even the basics of macroeconomics helps you connect the dots between trends and forecasts, and keeps reminding you that everything moves in cycles. It also reminds you that you always need a plan B, and C and D.

 

With your corporate finance background, it would be fair to say you know more than just basic macroeconomics.

That would be a fair statement. Macroeconomics is like a wide lens camera. If you are working on a recovery of an international company operating in every continent, it helps you with a global perspective. Furthermore, it is invaluable in understanding that everything is connected, and that the global market is very fluid between regions. You can’t just look at one country or one area, without looking at the global outline.

We had a very interesting situation in Reflex Marine – we were trying to recover the company; but at the same time we were trying to further develop existing markets, and also open up new sub-markets with new opportunities. It was a constant juggle of going back to basics; and looking at things from a very sophisticated perspective. I think we all learned a lot in the process. I also think that process should never end. We should keep examining things and comparing views and perspectives; we should keep getting deeper and deeper understanding of the market shifts and what triggers and drives them. Only then will we be able to say we are ready for the next crisis.

 

So you think there will be another crisis?

There is always another crisis, it is just a question of when. Maturing as a manager also means looking at every crisis as an opportunity to learn and change; rather than looking at it as an imposition or a difficulty. The crisis that hit Reflex Marine two years ago was probably the best thing that could have happened to us. It was difficult to see it then, but it is very clear now. It forced us to become a lean, proactive company, a team that keeps learning and a group of people that is striving to be better with each new day. Yes, we still have issues and problems, and nothing is ever perfect; but we keep moving forward and we keep growing. That’s a pretty good result in my book.

 

You mentioned that Reflex Marine became a lean company. Could you please elaborate on that.

The market conditions changed. While that change started long before the oil price drop, it became evident and emphasized during the last oil price crisis. The cost of oil production offshore has always been high so it comes as no surprise that oil operators and the industry’s supply chain generally made a lot of effort to reduce the time of exploration and production. What used to take two years, now takes eight months, and so on. For suppliers that meant only one thing – adapt, and do it fast. You have to reduce your lead time, your transit time, you have to lower the prices and you have to be available 24/7. Flexibility and responsiveness are the key ingredients.

Reflex Marine reduced the number of employees by 30%, but increased productivity and responsiveness by 50-60%. We have a much better understanding of the global markets and we are able to see and comprehend the fine layers of the industry. We moved from a company that operates from 9-5 in one time zone, to a company that operates almost 24/7 in all time zones. It doesn’t mean people don’t sleep; it just means we do things in a very different way than we used to. The focus is on the outside, on the market, on the client, and on our role in helping them solve their problems. The change in focus changed everything for us.

 

Where was the company’s focus before?

It was very internal, and when you do that for a long time, it can backfire in a very bad way. Too much of an internal focus can turn you into a company that debates and dwells, rather than focuses on solving problems.

 

How did the team respond to all these changes and shifts of how the company operates?

Different people reacted in a different way and that is normal. Not everyone can accept and adapt to change and disruption, even if they see that it will bring good things in the long run. About 15% left on their own, all quite senior people.

 

Did you ever find it discouraging, having managers leave?

No, I can’t say that I did. Others in the team may have, but I was very determined that nothing will destabilize our recovery, not even people leaving because they disagree with the new direction of the company.

 

That sounds very detached. Were you then and are you now?

You have to be detached, in a way, if you want to do what is the best for the company, not for (some) individuals. Your responsibility is to the company and the community around it – all its employees, its clients and suppliers. You can’t jeopardize that because of one person. It is not always an easy position to be in, but with years and experience it gets easier.

 

We touched a few times on a new market approach the company developed. Tell us a bit more about that.

The narrative became very important – the context – why did something happen, how did it happen, what caused it and so on. The company used to look at numbers only, revenue, expenses, manufacturing costs, overheads. Having a more corporate finance angle and approach the entire team started to appreciate the need and importance to have narratives accompanying every report, and to have an understanding of the context.

We focused on analysis, on market research, on understanding our weaknesses and on working hard to mitigate the risks they could have created. We became very bold in our thinking; and it helped with the general attitude and team’s confidence.

Our increased, more structured and more layered knowledge on the market conditions and on our own capabilities helped us become more realistic in recognizing and accepting the gap between the market potential and where we are at the moment. Seeing you’ve had 30% growth in revenue versus previous thing may lull you into feeling you made it; until you look at the market share figures that tell you that you are below 10% share of the market and that you still have a long way to go (and to grow). It puts things in perspective and keeps us focused. Compared to where we were two years ago, the dynamic in the company changed a lot, and became more positive, more focused on hard work, and more realistic.

 

You touched on SWOT briefly. What is the role of international agreements, regulations and bodies in understanding SWOT analytics and strategy planning?

International agreements, regulations and regulatory bodies can have quite a significant role in strategy planning and looking at SWOT analysis. One of the most recent examples is when Brazilian regulatory body for offshore operations changed the regulation on what types of carriers can be used to move people back and forth while working offshore. That change stipulates that people have to be seated, and we are one of two companies that manufactures personnel transfer carriers for seated passengers. Needless to say this change had and will have a huge impact on our strategy, from supply chain, manufacturing, post-sale approach, market communications and general focus.

 

Reflex Marine is a global company, doing business globally. How do currency fluctuations affect you?

Reflex Marine is a company that operates globally, but is registered in the UK, so the impact coming from currency fluctuations was very evident after the Brexit vote. We export a lot, thus the impact we’ve had has been a positive one, since Pound Sterling plummeted, and US dollar was fairly stable; but we are closely monitoring the currency market and adjusting our market approach when and if necessary.

 

How does this adjustment happen?

I would call it fine tuning, and it’s mainly adjusted through discounts. If the currency shift works for us, we offer higher discounts; if it doesn’t we are more careful with the discounts. That way the benefit from the currency fluctuations gets trickled down to the end client and it helps everyone.

 

Website: https://www.reflexmarine.com/

About Finance Monthly

Universal Media logo
Finance Monthly is a comprehensive website tailored for individuals seeking insights into the world of consumer finance and money management. It offers news, commentary, and in-depth analysis on topics crucial to personal financial management and decision-making. Whether you're interested in budgeting, investing, or understanding market trends, Finance Monthly provides valuable information to help you navigate the financial aspects of everyday life.
© 2024 Finance Monthly - All Rights Reserved.
News Illustration

Get our free monthly FM email

Subscribe to Finance Monthly and Get the Latest Finance News, Opinion and Insight Direct to you every month.
chevron-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram