Miller, Chemicals to Vice Chairman M.
Royal Dutch Petroleum Company N. Bruno Medeiros case Organizational 8 Restructuring within the Royal Dutch Shell Group At the beginning of , the Royal Dutch Shell Group of Companies Shell was emerging from one of the most ambitious and far-reaching organizational re- structurings of its year history. Leaders re-connect with peers regularly as they travel through LEAD together. Head office costs had been reduced and the increased coordination and control that the new sector-based organization permitted were helping Shell to control costs, focus capital expenditure, and prune the business portfolio. This provided a basis both for assessing the existing structure and for generating ideas for change. Despite persistent problems corruption and bureaucracy the international business community increasingly sees Nigeria as the central driver of a vast African market that remains the last under-developed commercial market in the world.
Outside the com- pany, Shell-watchers both in the investment community and in other oil companies had little doubt that the reorganization had contributed substantially to the efficient and effective management of the Group. Unlike most other companies, the basis for these strategic plans was not forecasts but scenarios — alternative views of the future that allowed managers to consider strategic responses to the different ways in which the future might unfold.
The Committee comprised five Managing Directors. Even allowing for the differences in organizational structure between Shell and its competitors, this was bigger than the corporate and divisional administration of any other oil and gas major.
Walvis P. Everyone in the organization can compete for any job — and we also actively hire from outside. This provided the opportunity to challenge assumptions and hear diverse points of view from both sponsors and representatives of the target leadership population. However, much of the improvement in bottom-line performance was the result of the recovery in oil prices during the year. Treanor Operating Companies We used to have a complex regional matrix system — with multiple reporting lines. It was intended that the new structure would allow more effective planning and control within each of the businesses, remove much of the top-heavy bureaucracy that had imposed a costly burden on the Group, and eliminate the power of the regional fiefdoms.
In short, LEAD is scalable across a broad range of job levels.
Walvis P. In its place, four business organizations were created to achieve closer integration within each business sector across all countries. The former would sup- port the executive role of the CMD; the latter would provide professional services to companies within the Group. Our vision of the future is one of increasing competitive surprise and discontinuity, of increasing change and differentiation in skills required to succeed; and of increasing demands by our people at the front line for accountability within a framework of clear business objectives, and with access to a global source of specialist expertise. There was no crisis — which in some ways was part of the problem.
The Formal Structure As noted, the formal corporate structure shown in figure 8. At the beginning of January, the report was circulated to the chief executives of the main opcos and the coordinators within the service companies with a request for reactions by the end of January. We see the business conditions of today, with flat margins and low oil prices continuing into the future. We will still have discussion, but we will make business decisions rapidly.
During and , the Shell management development function moved into a higher gear. Peer Groups are functional groupings Larger Business Units are divided into separate comprising functional specialists from Performance Units.
Our vision of the future is one of increasing competitive surprise and discontinuity, of increasing change and differentiation in skills required to succeed; and of increasing demands by our people at the front line for accountability within a framework of clear business objectives, and with access to a global source of specialist expertise. This should include any accessible records such as employment, school and medical records, along with any test results that may have been carried out. Electrical Engineering and Computer Science EECS spans a spectrum of topics from i materials, devices, circuits, and processors through ii control, signal processing, and systems analysis to iii software, computation, computer systems, and networking. The day-to-day management activities of the Group, which Shell refers to as executive responsibilities, are complex, and the structure through which the Group is actually managed does not correspond very closely to the formal structure. Metrics on bottom-line safety and business performance will be tracked closely in and onward.
Grant, 9 Ibid. Refinery cutbacks included the closure of Shellhaven refinery and partial closure of Berre refinery in France. Department of Electrical Engineering and Computer Science. Their relationship to corporate is defined by their annual performance contracts. When it was launched — in — it was an excellent system. When leaders focus on the what, they help people connect to the business results that prove their organization to be a world class investment case.