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Leaked Andrew Manley email reveals Voser impact on Shell Downstream-One plans

CURRENT SHELL INTERNAL EMAIL FROM ANDREW MANLEY, DOWNSTREAM-ONE PROGRAMME DIRECTOR

Re-phasing the Downstream-One Programme

This email has been sent to the Downstream Leadership Team, Programme Management Team, Programme staff including country Programme teams, Downstream-One IT, Implementation Council, Process Owners, Process Design Council, Operational Excellence teams, lead Process Focal Points, and Local Senior Downstream Representatives in countries live or to go live.

Dear Colleagues,

In the current environment it has been made clear to all of us that we have to manage our cash-flow very carefully and make tough decisions about allocation of resources. Indeed, Peter Voser has asked all the businesses to deliver tough top-down stretch targets on cost.

Against this backdrop, the Downstream Leadership Team has decided to re-phase implementation of the Downstream-One Programme so it can be delivered at a reduced rate of spend.

§         Because their existing systems can be maintained for another few years, implementation in US Fuels, Brazil, Argentina and Chile will be deferred indefinitely.

In the meantime, expenditure on GSAP in these countries will cease, including design work on Release 2.4 (the version of GSAP to be deployed in the US). Work to streamline business models and processes in US Fuels, Brazil, Argentina and Chile will however continue within normal business budgets.

The upgrade of Luminon, the existing SAP system for Pipelines in the US, will proceed in the meantime and its replacement will no longer be part of any future implementation in the US.

§         The Go-Live date for China will be deferred by 12 months to 1 April 2012.

§         The Go-Live date for India will be deferred by 6 months to 1 October 2011.

§         The Go-Live date for UAE/Oman will be deferred by 3 months to 1 January 2012 (Oman subject to Board approval).

§         The Go-Live dates for Pakistan, France, Italy, Turkey, CEE, International Aviation Marine and Canada are unchanged.

§         The retrofit of all live countries to the same Release 2.3 platform will be on 1 July 2011.

I know this will disappoint all of you that have been working tirelessly to prepare the impacted countries to go live with Downstream-One on schedule. I’m also conscious it creates uncertainty about what happens in the immediate term to the people working to support the Programme in these countries.

As a matter of urgency, I have asked each Assurance Manager to work with the Country Programme Managers and country Downstream-One HR to look at what this decision means practically for our teams in the impacted countries. The Global GSAP Deploy Manager will work with the country GSAP Deploy Managers to look at the impacts on the Downstream-One IT teams. The Programme Management Team and Process Owners will look at the impact on their central teams. There may also be impacts on other teams in the businesses that will need to be worked through with the relevant stakeholders.

We will provide clarity on this as soon as possible, consulting with staff representatives as appropriate. If you have any immediate queries, please raise them with your line manager recognising that they may not be able to answer everything straight away.

We should remember that we are delivering the most ambitious transformation programme in the world, and one that is critical for better business performance and growth.

While these changes mean we have to change our schedule yet again, they do provide the opportunity to complete the roll out to a core of countries, embed the base system and increasingly focus on Operational Excellence and improvements before tackling our biggest and most complex implementations. They also allow the Downstream business to focus its short-term spending on opportunities for growth.

Thank you for your hard work and ongoing support.

Regards,

Andrew Manley
Programme Director

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