Oil giant Royal Dutch Shell on Wednesday announced a series of changes to senior management roles and responsibilities, which it said were aimed at creating a sharper focus on operating performance and technology.I interpret these changes as an admission that the engineering and earth sciences necessary for each barrel of oil produced are increasing. The Calgary Herald reported that Voser said:
"Organisationally, we are too complex, and our culture is still too consensus-oriented. Our costs are simply too high," Voser said in an email to staff, excerpts of which were seen by Reuters.Details of the changes include the consolidation of divisions into operating units around geographical locations. North America being one in which I would assume Houston will take the lead role in. It is also reported that many lay offs will occur throughout the company.
Exxon is renowned within the industry for its strict management practices and insisting employees do not deviate from standard operating procedures. BP, on the other hand, had a risk-taking culture that allowed considerable freedom to managers of units or fields, and Shell had a culture of making decisions by consensus.
- The Preliminary Research Report provides:
- A focus on the expanding earth science and engineering demands of each barrel of oil.
- A focus on innovation and its iterative impact on science.
- How a firm can adopt an innovative footing.
- A greater focus on the business of the business through the five frameworks of the Joint Operating Committee.
- Providing the innovative footing and science based strategy.
- The legal, financial, operational decision making, communication and cultural frameworks of the industry.
- A global dedicated oil and gas software development capability.
- Unconstrained by the paradox of code and customers.
- Draft Specification.
- Eleven modules based on the research contained in the Preliminary and Final Research Reports.
- Firm focused application modules.
- Marketplace focused application modules.
- Joint Operating Committee application modules.
- Accounting application modules.
Lastly I would point to how this project is a commercially viable one by pointing out the business model of People, Ideas & Objects and the Community of Independent Service Providers. And the Technical Vision of where the Information Technologies promise the greatest value and how this product is supported technically.
These firms are a part of the global oil and gas industry and therefore part of the focus of this development. I encourage you to forward this post to the people you know at Shell, Exxon or BP and have them read for themselves what is possible. I would also encourage you to get involved in moving this vision forward by joining in this process.