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Shell’s proposed global organisation changes: Part 2

By John Donovan

Today we publish another sizeable chunk from Shell’s current internal consultative document which, although directed at Shell’s Dutch employees, includes a detailed description of Shell’s proposed global organisation changes. Still no legal action by Shell to prevent publication of its plans. 

PROPOSED NEW TECHNICAL DIVISIONS & CHANGES TO THE HR & CP ORGANISATIONS:

Technology

The Technology Workstream within the Delivery Models offers an opportunity to further transform our Technology Commercialisation capability whilst delivering equal or better value creation in Shell from the development and deployment of technology at 35% lower P&T cost versus 2015 actuals and no additional cost to the business. Work undertaken to review the design and execution of the current technology delivery process have identified a number of pain points which include:

  •  Inability to effectively translate business demand into required technology and suboptimal business commitment for deployments, leading to depressed deployment rates.
  • Lack of transparent information and robust capabilities to deliver this, leading to suboptimal portfolio management and decision making on technology development activities (high pass rates in early stage gates).
  • Insufficient leverage of external innovation ecosystems, with instances of in house technologies being less competitive than those available on the external market.
  • Lack of consistency on end-to-end (E2E) accountability/not having a ‘single point of contact’ for technology delivery across different technical divisions and many interfaces and overlap between activities.In the current setup, technology development as described in the Business Management System has multiple interfaces, hand off points and inconsistencies across the technology platforms. Penetration and alignment around Technology Strategy objectives are inconsistent outside PTI, and the effort spent on constant re-alignment across interfaces slows the effectiveness of the change journey. It is proposed that these issues are addressed through clear transformation plans for each of our value levers, which are detailed below:Maximizing deployment and replication
  • Strong business alignment upfront on the technology portfolio through early agreement of business model economics and deployment targets including licensing, utilizing the Business Technology Committees (BTC’s) established in 2016, leading to clear technology value articulation in the business plan and transparent value realization tracking.
  • It is proposed that all technologies will be available for licensing, except where the BTC articulates specific reasons to keep technology proprietary. This will provide greater exposure to the market in order to learn and improve our own operations faster, and to make a difference in society (creating shared value).
  • Deployment integration across P&T, with the technical divisions for Development, Engineering, Construction and Wells eager and ready to “catch and run with” energy solutions coming out of the technology development funnel, and drive deployment at scale.

Failing fast in order to concentrate the majority of resources on winning technology projects

  •   Transparent metrics for decisive portfolio and funnel management
  •   Lean ways of working
  •   Iterative development (“agile” as a methodology)
  •   Peer challenge sessions to polarize probability of success (technical and commercial)Collaborating with others
  •  It is proposed that all initiation of technology development will start with a market scan (by CP, STV and LSIP) to see whether external sourcing options, industry solutions/ outside technologies, exist.
  • It is proposed that we increase our use of Shell TechWorks to assess re-purposing of existing technology, instead of developing new, especially for equipment and devices.
  • It is proposed that we use portfolio characteristics to determine more directly which innovation work needs to be carried out in-house and which work is better done by collaboration partners.Preventing organizational duplication
  • It is proposed that a single technology organisation will be created to better facilitate end-to-end technology management and to present a ‘single technology face’ (including Digital) to the BTC’s.
  •  At the same time, it is proposed that we reduce the number of interfaces within Technology, optimising spans of control and the technology location footprint, in order to make creative collaboration easier and faster.The principles used to design the proposed new Technology organization are as follows:
  • An e2e Technology organisation covering technology maturation until first commercial deployment available for replication;
  • Securing a ‘single integrated technology face’ at the EC-2 level for the Business Technology Committees, responsible for technology platform selection tailored to business needs & manage the technology portfolio;
  • Structurally embed E2E accountability and governance, with single points of accountability and aligned responsibilities for technology development and deployment support, e.g. housing GTL in Technology;
  •  Focusing capability from both an organisational and locational design perspective to drive productivity, ideation and promote Agile ways of working;
  • Optimize spans of control and layers by seeking a balanced combination of related activities
  • Drive consistency and excellence in technology commercialisation, portfolio and funnel management through a newly created Innovation Excellence VP-Ship. It is proposed that intimacy with BTC/Technology Platform agendas will be ensured by co-locating a number of these resources with the business facing Technology VPs.
  • Focusing technology development in as few locations as possible to drive productivity and ideation benefits. The current technology footprint is dispersed across multiple buildings and external best practice reinforces the journey begun under Winning Innovation to seek to co- locate Technology Development in one or two Technology Hubs, only duplicating Wet Lab capability across hubs where there is a clear business proximity requirement.

The creation of an end to end (e2e) Technology EVP-Ship will enable a stronger mandate and authority over resources for Technology Opportunity Managers (TOMs) to drive development and deployment projects end to end. The proposed organisational design has the following new VP- Ships:

VP’ships

Catalyst Manufacturing, Sales & Technology Licensing

It is proposed that this VP-Ship combine the CRI and Criterion business (as previously announced) together with the Technology Licensing team (PTD/S). This department will be responsible for Catalyst Manufacturing and Sales and will also be tasked with securing licensing agreements for the wider licensing remit for Technology.

The proposed new organization would grow its sales of catalysts and technology licenses. In doing so it will play a key role in delivering Shell’s technology commercialization strategy, by increasing deployment opportunities, accelerating development, de-risking, generating learnings as well as increasing overall income. It is also anticipated that it will play a key role in supporting Shell’s energy transition. The proposed new integrated organization would ensure clear accountabilities, increased focus on business development and flexibility and agility to quickly react to changing external market conditions.

In addition, the proposed new organization would focus on global strategy and regional execution as opposed to the current organization of more scattered regional strategy setting and local execution. The improved integration of catalyst sales, technology licensing and services would deliver stronger and more differentiated customer solutions, creating greater value for customers and subsequently greater financial returns for Shell. The proposal to integrate the three businesses also allows for streamlining of common activities, in particular, across marketing, new business development and operations.

The new organization will consist of the following GM-Ships:

  • GM Technology Licensing. With the shift in mindset to make all technologies available for licensing unless there is a reason not to do so, it is proposed this department will seek to test the competitiveness of Shell Technology in the marketplace with minimum of 75% of revenue arising from licensing income and a maximum of 25% of income from technical services. Technical services will be undertaken only when there are clear links to supporting licensing sales, catalyst sales or specific wider group objectives.
  • GM Operations: It is proposed this department contains all manufacturing and supply chain related components of the Catalyst business.
  • GM Sales Americas: It is proposed this department contains the catalyst sales staff focused on the Americas region.
  • GM Sales EUMEAF: It is proposed this department contains the catalyst sales staff focused on Europe, the Middle East and Africa regions.
  • GM Asia Pacific: It is proposed that this department contains the catalyst sales staff focused on the Asia Pacific region.
  • GM Global Marketing: It is proposed that this department contains the global marketing capability for the catalyst business.
  • GM New Business Development: It is proposed that this department contains staff focused on the long-term strategy for the catalyst business, with the specific aim of developing new business opportunities.Catalyst & Refining Technology:
    It is proposed that Catalyst R&D (PTD/C), Refining Technology (PTD/TR) and the Analytical Chemistry (PTI/CT) teams are brought into a single VP-Ship. This proposed construct ensures that both refining technology and catalyst R&D, which provides support across Shell’s strategic themes with proprietary technology, have high visibility on the proposed new leadership team for the Technology organization. It is proposed the VP Catalyst and Refining Technology is the single interface to the Catalyst BTC and the Refining BTC.This would create a simpler, leaner organization enabling synergies such as integration of the Hydroprocessing R&D unit with the GM Refining Catalyst R&D and the integration between the Analytical Chemistry and the Catalyst R&D Experimental groups.

    It is proposed this organization contains the following GM-Ships:

  • GM Refining Catalyst Technology: It is proposed that this department focuses on R&D for catalysts in support of Refining.
  • GM Chemicals Catalyst Technology: It is proposed that this department focuses on R&D for catalysts in support of Chemicals.
  • GM Gas Catalyst Technology: It is proposed that this department focuses on R&D for catalysts in support of Integrated Gas.
  • GM Novel Catalytic Materials: It is proposed that this department focuses on R&D for novel catalytic materials – e.g. in support of the IH2 project in Bangalore.
  • GM FCC Technology: It is proposed that this department focuses on R&D, deep technical expertise and design activities for DS M Fluid Catalytic Crackers units as well as for the licensing business and selected 3rd parties.
  • GM Hydroprocessing & Base Oils Technology: It is proposed that this department focuses on R&D, deep technical expertise and design activities for DS M Hydrotreating, Hydrocracking,Residue Conversion and base Oil units as well as for the licensing business.
  • GM Distillation, LE & Thermal: It is proposed that this department focuses on R&D, deep technical expertise and design activities for DS M Distillation, Light-Ends (reforming, alkylation) and Thermal Conversion units as well as for the licensing business and selected 3rd parties.
  • GM Front End Development & Optimization: It is proposed that this department focuses on Front End Development for DS M large capital projects and selected hydrocarbon master planning as part of technology licensing. At EC-4 FEDM’s are located at multiple locations around the globe. A modelling team supports FEDM’s, master planning activities as well as licensing and 3rd party business.
  • GM Analytical Chemistry: It is proposed that this department focuses on development & implementation of innovative measurement technology, supporting both R&D and assets of various businesses (e.g. Catalysis, various Refining Technology Departments, Chemical Technology, DSM, IG, Upstream, etc.). To capture synergy, it is proposed that the analytical capability in Catalysis and in Analytical Chemistry are merged – allowing more efficient cross- sharing of resources and efficiencies of scale.
  • Chief Scientist Chemistry and Catalysis: This is the pinnacle of the individual contributor route for individuals in the R&D Skillpool involved in catalysis.Chemicals and New Energies:
    It is proposed that the Novel Process and New Energies Technology (PTI/D) and Chemicals Technology (PTD/TC) teams are brought into a single VP-Ship. The proposed design keeps the novel process development capability in one VP-Ship and creates an e2e organization for the maturation of Chemicals Technology. It is proposed the VP would be the single interface to the Chemicals BTC & New Energies BTC.The proposed organization comprises of the following GM-Ships:
  • GM Base Chemicals: It is proposed this department manages the Chemical Centre of Expertise (CoE) for Base Chemicals technologies with the purpose to: provide and implement technology solutions to maximise profitability of the Base Chemicals Business in DS-Chemicals. Nothing significantly changes from Prozona design.
  • GM Polyethylene: It is proposed this department manages the Chemical Centre of Expertise (CoE) for Polyethylene (PE) technologies with the purpose to: provide and implement technology solutions to maximise profitability of the PE business in DS-Chemicals. Shell is entering the PE business with the Pennsylvania Chemicals project and the GM PE will work closely with the business to provide the technical capability to enter the PE market. PE was not part of Prozona scope as we do not have any PE manufacturing assets at the moment – first will be part of the Pennsylvania Chemicals project. The major change for PE is that all PE activities in STCA will be stopped in 2018 and all PE resources will be concentrated in the US. In the US PE resources will start to move from Houston to Pennsylvania in preparation for the start-up Pennsylvania Chemicals.
  • GM SMPO & PODer: It is proposed this department manages the Chemical Centre of Expertise (CoE) for Shell’s proprietary SMPO/PODer technologies with the purpose to: provide and implement technology solutions to maximise profitability of the SMPO/PODer business in DS- Chemicals. Nothing significantly changes from Prozona design.
  • GM HODer: It is proposed this department manages the Chemical Centre of Expertise (CoE) for Shell’s proprietary HODer technologies with the purpose to provide and implement technology solutions to maximise profitability of the HODer business in DS-Chemicals. Nothing significantly changes from Prozona design.
  • GM EOG/Solvents: It is proposed this department manages the Chemical Centre of Expertise (CoE) for Shell’s proprietary EOG technologies and existing solvents technologies with the purpose to: provide and implement technology solutions to maximise profitability of the EOG and solvents businesses in DS-Chemicals. Nothing significantly changes from Prozona design.
  • FEDM Nebras: It is proposed this role is accountable for the delivery of a robust technical development concept and basis for design ensuring technical integration of the full TECOP spectrum of risk and uncertainty into the technical solution/concept/project definition for the potential JV project in Iraq. Nothing significantly changes from Prozona design. Note this role will end if the Nebras project does not progress. If the project does progress the role moves to the P&T projects organization at DG3 and the role will likely move out of the Netherlands and be located in the Middle East
  • GM Process Evaluations & Projects: It is proposed this department focuses on evaluating the commercial competitive position of novel process technologies and front end design for chemicals projects.
  • GM Process Development: It is proposed this department comprises expertise in commercialization of new or improved process technology to produce Hydrocarbon Products, Chemicals, or Alternative Energy products (e.g. biofuels, hydrogen) in partnership with Shell businesses.
  • GM Long Range Research: It is proposed this organization is focused on delivering programmes and will utilize external and internal partners to execute the experimental elements of the programme. As a result, it is proposed the hydrogen fuels resources in PTI/DB move to LRR.
  • GM Emerging Technologies: It is proposed this organization is the home for in-house experimental capability. Keeping with the execution model it proposed there would be the need for a senior Biosciences program lead in Long Range Research but the total biodomain experimental capability in PTI/DB Houston will be moved to Emerging Technologies.
  • Chief Scientist Chemical Engineering: This is the pinnacle of the individual contributor route for individuals in the R&D Skillpool involved in process development.Fuels Technology
    It is proposed that the Fuels Technology (PTD/F) organization which currently reports to EVP Downstream moves to report to the new EVP Technology. The delivery model of Fuels Technology had been modified in 2015 to enable more impactful and affordable delivery of technologies to the DS businesses and to improve the working experience for staff across PTD/F. Therefore, the Fuels Technology organization is not proposed to change in its fundamental structure but this round of delivery model adjustment provides an opportunity to leverage learnings over the last two years to further evolve the organization and drive further effectiveness and efficiencies.It is proposed this organization comprises the following GM-Ships:

    •   GM Future Portfolio & Technology Maturation: It is proposed this department continues tocontain the Technology Opportunity Manager for Fuels Technology, therefore keeping an E2E delivery perspective. Detailed delivery through this department focuses on a 4 – 15 year time horizon and therefore on next generation fuels development and supporting Retail’s future portfolio ambitions in the alternative fuels space. It leads substantiation test methodology development, Industry liaison, forward looking external technology scouting, technical advocacy and all Motorsport activities.
    •   GM Gasoline Development: It is proposed that this department continues to cover the fine- tuning and de-risking of new product formulations (not of isolated molecules) and the substantiation of marketing claims for gasoline products. Also, this department coordinates all product deployment activities with Retail globally and with individual markets. Additionally, product quality and field problem support is primarily managed through this department.
  • GM Diesel Development: It is proposed that this department continues to cover the fine- tuning and de-risking of new product formulations (not of isolated molecules) and the substantiation of marketing claims for diesel products. Additionally, all on-road and off-road commercial fuel activities (excl. Aviation but incl. GTL fuel usage applications) ranging from targeted product tailoring and demonstration to front-line customer support are managed through this team.
  • GM Operations: This department is proposed to continue managing and driving effectiveness and efficiency for the assets & facilities and delivery staff related to experimental and operational aspects for delivering the fuels (and partly lubricants) programs. The assets contain fuel laboratories, fuels blending facilities and engine & vehicle testing rig (of which a substantial amount of delivery is for the Global Commercial program). Additionally, this department coordinates and organizes the outsourcing of activities (excl. Industry group and consortia, Universities and OEM collaboration).
  • Site Manager Shell Technology Centre Hamburg (STCHA): This department is proposed to continue to manage and drive safety and efficiency related to the infrastructure for STCHA, incl. maximizing value for utilizing services through Shell Real Estate. For STCHA the ownership of the license to operate sits in this department therefore interfacing with local legislators and authorities.
  • Chief Scientist Mobility: This is the pinnacle of the individual contributor route for individuals in the R&D Skillpool. This specific Chief Scientist role focusses on technologies and trends in the space of future mobility and transportation and associated opportunities and risks for RDS.Global Commercial Technology:
    It is proposed that the Global Commercial Technology (PTD/L) organization which currently reports to EVP Downstream moves to report to the new EVP Technology. It is proposed to continue to re- distribute capabilities to unique sites to avoid overlap and to co-locate senior roles with wet labs (with a proposed complete by 2020). It is also proposed to further dismantle the matrix structure of resource managers and delivery managers resulting in the elimination of two current GM roles and to create a single Global Operations GM-ship to consolidate the experimentalist skillpool analogous to Fuels organization paving the way to efficiency gains/outsourcing opportunities. It is proposed to strengthen the regional GM positions with additional global remit including associated budget to ensure that VP and each GM (except GM Ops) will have a ‘seat at table’ at relevant Leadership team in the GC business. This proposed new organization with clearly defined capabilities and geographic reach will provide a solid platform for future business growth.It is proposed the organization contains the following GM-Ships:

GM Lubricants Technical Services & Europe: It is proposed that this department delivers both current 3rd line technical field services and develops novel customer services offerings in addition to managing the pool of Hamburg-based product developers and representing Technology in the Europe, Middle-East & Africa region GCLT.

  • GM OEM Lubricants Technology & Asia Pacific: It is proposed that this department coordinates the global network of Industry and B2B Product Application Specialists and supports OEM approvals and factory-fill opportunities in addition to managing the pool of product developments in Shanghai (& Bangalore) and includes site management responsibilities for SST (Shell Shanghai Technology) whilst representing Technology in Asia-Pac region.
  • GM Lubrication Science & Americas: It is proposed that this department leads the lubrication science function for foundational sciences, early-stage (D0-D2) lead generation and co- engineering activities. Aside from managing the pool of product developments in STCH, the role also manages the bespoke Aviation Technology group. This role is the primary Technology interface for the Americas region.
  • GM B2C Lubricants Technology: It is proposed that this department leads all Business-to- Consumer branded (Helix, Pennzoil, Quaker State, Advance) and unbranded (Auto OEM Genuine Part Oils) product developments globally. The GM-ship includes a dedicated network of auto- OEM Product Application Specialists. The GM role represents Technology for Global Key Accounts in Global Commercial.
  • GM B2B Lubricants Technology: It is proposed that this department leads all Business-to- Business branded (Rimula, Rotella, Spirax, Tellus, Omala, Turbo, Gadus, Alexia et.al.), and unbranded lubricants developments including Greases and Marine & Power products and assumes the responsibility for baseoil technology. This role is also the TOM for Global Commercial Technology and will sit on the LSC Leadership Team.
  • GM Specialties Technology: It is proposed that this department is the center of excellence for all Specialities (Bitumen & Sulphur) Technical Services and R&D delivery through a global skillpool based in Bangalore and in three Downstream-business funded Solution Centres. The role is a member of the Specialities extended Leadership Team.
  • GM Global Operations Lubricants: It is proposed that this department is the global operational skillpool for experimentalist staff and managing wet-lab, rig and blend plant operations across the four main Global Commercial sites (Houston, Hamburg, Bangalore and Shanghai) and tasked with driving operational excellence and effectiveness.Integrated Gas & CO2 Abatement Technology:
    It is proposed that the Integrated Gas Technology (PTI/G), GtL and Gas Processing Technology (PTU/T) and Gasification Technology (PTU/G) teams are brought into a single VP-ship. This proposal brings GTL, Gasification, Gas Processing and CO2 Abatement into an E2E Technology organization as these technologies have strong Shell proprietary positions. This new VP-ship does not include LNG technology, which makes much greater use of third party technologies and is therefore considered more of an engineering-led technology. Consequently, it is proposed that LNG Technology resides in Upstream Development. In line with the Integrated Gas BTC Governance, it is also proposed that this VP-ship houses Materials and Corrosion Technology capability and the associated “Future of Construction” technology platform. It is proposed that the VP Integrated Gas & CO2 Abatement Technology is the single interface to the Integrated Gas BTC, (also representing LNG Technology, for simplicity).The purpose of the VP-ship Integrated Gas & CO2 abatement technologies is to deliver technology solutions and deep technical expertise that meet the short, medium and longer term needs of Shell’s business (operating assets, marketing & sales, projects and NBD) and to support the RDS Technology Strategy, in the CoE focus areas of Technology Maturation, Technology Deployment to Projects (incl. process/design integration, Process Integration pre-DG3) and Technology Deployment to Assets (incl. ‘3rd line’ operations support for deployed technologies).

It is proposed that this organization contains the following GM-ships:

  • GM Materials and Corrosion: It is proposed this department contain the E2E capability to support the Materials and Future of Construction technology platform. It will contain the materials and corrosion lab capability in PTI and PTE. It is proposed this capability migrates to India over a 4-year period, with a detailed flight plan for transition, which is outlined later in this consultation document.
  • GM Gas Processing Technology Maturation: It is proposed this department houses the capability required for Gas Processing Technology Maturation D0-D4.
  • GM Gas Processing Integration and Operations Support: It is proposed this department houses the capability required to support the deployment and ongoing asset support associated with Gas Processing Technology.
  • GM CO2 Abatement Technology: It is proposed this department houses the capability required for CO2 Abatement Technology D0-D4.
  • GM GTL Technology Maturation: It is proposed this department houses the capability required for GTL Technology Maturation D0-D4.
  • GM GTL Process Integration: It is proposed this department houses the capability required to support pre DG-3 GTL projects.
  • GM GTL Operations Support: It is proposed this department houses the capability required to support existing GTL Assets.
  • GM Gas and Residue Gasification: It is proposed this department house the capability required to support technology maturation D0-D4 and asset support in Gas Residue and Gas Gasification Technology.
  • GM Other Gasification: It is proposed this department houses the capability required to support Gasification Technology for product lines such as petrocoke and biomass gasification.
  • GM Site Management STCA and SPTR: It is proposed this department houses the capability required for the discharge of responsibilities associated for “License to Operate” issues at STCA and SPTR, as well as operational supervision & experimental services. N.B. There are no changes to this department proposed at this time. Once the complete Delivery Model picture is known it is proposed that this department is reviewed and any adjustments made.Wells, Deepwater & Shales Technology:
    It is proposed that the Wells & Deepwater Technology (PTI/W) and the Unconventionals Technology (PTI/U) teams are brought into a single VP-Ship together with elements of the Drilling Mechanics Technology team (PTW/DMT) and elements of the PTE/APFA and PTE/EPFA flow assurance teams. It is proposed that the VP Wells, Deepwater & Shales Technology is the single interface to the Wells BTC, the Deepwater BTC and Shales BTC.It is proposed this organization houses the following GM-Ships:
  • GM Wells Technology: It is proposed this department houses capability required for technology maturation in Drilling & Well Construction, Automation, CWI and Abandonment in support of the Wells BTC.
  • GM Deepwater Technology: It is proposed that this department houses capability required for technology maturation in Floating Production Systems, Flow Assurance, Production Chemistry and Subsea Processing & Equipment in support of the Deepwater BTC.
  • GM Brazil Technology: It is proposed that this department houses capability required to discharge Shell’s Brazil R&D Levy requirements associated with Subsea/ Topsides and Wells R&D. In addition, it is proposed the Brazil Technology GM continues to be the primus inter pares for R&D other team lead positions in Brazil and owns the relationships with the Brazil businesses and external stakeholders in country in relation to the Brazil Levy.
  • GM Unconventionals Technology: It is proposed that this department houses capability required for technology maturation in Production Forecasting & Completions & Stimulation in support of the Shales BTC.
  • Shell TechWorks: It is proposed this organization continues to be a rapid response engineering innovation group supporting all seven strategic themes utilizing technology solutions from a spectrum of industries outside of oil and gas. In addition to the current capabilities associated with value chain analysis, architecture studies, business case construction and trade studies, rapid prototyping, proof of concept demonstrations etc., it is proposed this organization becomes the key route for the prototyping of packaged products technologies.
  • BOM Infrastructure: It is proposed that a BOM role (and supporting team) is created to review Shell’s operations at Gasmer and to support the closure of the Rijswijk Rig and associated workshops and laboratory space. Further details on the business case for the closure of the Rijswijk Rig and associated workshops and laboratories can be found below:As stated above, it is proposed to cease operation of the test rig in Rijswijk as well as selected activities in the Sierra halls and wet labs by the end of 2017. Demobilisation of all equipment would be completed by year-end 2018. The proposal includes the creation of a Business Opportunity Manager role to oversee the most commercially and logistically effective manner of decommissioning, and to evaluate and action alternatives to perform some portion of the stopped work at different site(s) in the future. The intent is to demobilise safely and to maintain business continuity for those capabilities deemed to be business-critical while alternatives are assessed and then implemented. Some activities that are not deemed business-critical may cease altogether while others may experience a pause between stopping work in Rijswijk and starting alternative capability provision elsewhere.This proposed action is aligned with several elements of the Technology Delivery Model strategy. First, the demobilisation aims to support an optimal Technology footprint where staff and key capabilities are co-located in Technology hubs for easier collaboration and less duplication. Second, the Delivery Model strategy includes more work done through third parties, engendering stronger external innovation partnerships. This externalisation would hold vendors accountable for essential work and provide faster and easier access to results. Alternatives to continuing to run the Rijswijk test rig may include a third party moving it to a site in NL or elsewhere, or a third party building a new test rig or upgrading an existing one at a site in NL or elsewhere. Decommissioning the Rijswijk Wells-related R&D test rig, labs, and testing equipment opens the possibility that for those capabilities deemed necessary for the future, some portion of the required equipment and supporting infrastructure could be built or utilized in Brazil and contribute to Shell’s annual levy obligation.

Upstream and Subsurface Technology:
It is proposed that the Upstream Technology (PTI/R) and Exploration Technology (PTI/E) are brought together into a single VP-Ship. It is proposed that the VP Upstream & Subsurface Technology is the single point of interface to the Conventional Upstream BTC and the Exploration BTC.

In Wave 2, we will review how the RDS Digital Strategy and required digital capabilities will impact Technology in the areas of Upstream and Subsurface Science and Computational & Analytical Technologies. This is consistent with the approach of identifying interdependencies, grouping moves together where sensible and seeking to avoid impacting same groups of individuals with multiple changes. We will ensure the guiding principle to maintain the single technology interface to the Businesses to facilitate integration of digital with molecular and engineering technologies can still be executed. Digitalisation is one of the transformation themes for Technology to drive its own efficiencies and productivity targets; and should be articulated in the Technology benefits realization plan. Consequently, only a move of the following GM-Ships from the Upstream Technology (PTI/R) and Exploration Technology (PTI/E), together with the removing positions already consulted in prior consultation is proposed at this time:

  •   Geoscience Programme Lead
  •   GM Novel Geophysical Measurements
  •   GM Seismic Technology
  •   GM Integrated Geoscience
  •   GM Oil Recovery
  •   GM Reservoir Surveillance
  •   GM Rock & Fluids
  •   GM Storage & Containment
  •   GM Computation and Modelling
  •   Technical Advisor
    In addition, it is proposed that resourcing the VP Upstream and Subsurface Technology position is postponed until Wave 2, and to only appoint an interim manager for the intervening period.Computational and Analytical Technology: It is proposed that the Computational and Analytical Technology (PTI/C) moves to report to the EVP Technology, with the exception of the Analytical Chemistry team, which it is proposed moves to report to the newly created VP Catalyst & Refining Technology.In Wave 2, we will review how the RDS Digital Strategy and required digital capabilities will impact Technology in the areas of Upstream and Subsurface Science and Computational & Analytical Technologies. This is consistent with the approach of identifying interdependencies, grouping moves together where sensible and seeking to avoid impacting same groups of individuals with multiple changes. We will ensure the guiding principle to maintain the single technology interface to the Businesses to facilitate integration of digital with molecular and engineering technologies can still be executed. Consequently, no further changes are proposed at this time.

Innovation Excellence:
It is proposed a new Innovation Excellence VP-Ship is created which will contain the Portfolio Team (PTI/P), the External Technology Collaborations team (PTI/I), Technology Replication Thrusts (PTI/RT & PTU/O/U), a Lean Agile Centre of Excellence (incorporating Lean/Agile Coaches from across PTD and PTI) and a new Commercial Delivery team. This department will help drive excellence in innovation and techno-commercial capability in support of the other VP-Ships within the Technology organization.
It is proposed that this organization contains the following GM-Ships:

  • GM Technology Portfolio: It is proposed this department contains centralised but dedicated support to each VP-ship to ensure consistent approach to Portfolio Management and application of metrics. It is also proposed that this team will work with each VP to ensure that a Business Technology Plan exists for each BTC capturing key challenges/ objectives. It is proposed this department will act as the CTO Office, leading business planning, performance reporting and support for Global Technology Committee etc. and be responsible for the Business Management System and audits.
  • GM Commercial Delivery: It is proposed that a new team is created on the basis of the learnings from the PT2020 T&I theme. It is proposed that this team contains dedicated focal points for each VP-ship to support and lead opportunity framing (systems thinking, trade studies, ideation) and commercial ‘assists’ ahead of Stage Gates. It is proposed this team is also responsible for providing Valuation support to the organization, maintaining the ‘Scouting Toolkit’ to enhance ability to effectively monitor and leverage external environment and bringing in the necessary expertise from innovation vehicles at the right time and supporting L&D to upskill organization.
  • GM Technology Deployment & Replication: It is proposed that this team has a primarily Upstream focus and is responsible for embedding technology in Projects and Assets (Business Technology Mapping, TRT and Global Technology Catalogue) and screening available 3rd Party technologies;
  • Principal Systems Engineer: It is proposed that this role helps to build systems engineering capability within the Innovation Excellence organization to ensure systems thinking is embedded in Opportunity Framing, Business Technology Needs identification, and solution thinking. This resource will also liaise with and draw upon resource within STW, PTE and external consultancy as required to resource specific projects.
  • PT2020 T&I Manager: It is proposed the PT2020 T&I theme is overseen by a single dedicated resource.
  • GM Lean/Agile CoE: It is proposed to bring all existing Agile/Lean/ Continuous Improvement individuals into one team to share best practice and provide resource flexibility; and drive an Agile agenda within the new Technology organization. It is proposed that team members are embedded within the organization in all locations (Houston, Amsterdam, Hamburg and Bangalore).
  • GM Shell Research Connect & Gamechanger: It is proposed to fully merge the External Technology Collaborations Team (ETC) and Gamechanger. It is proposed that the new team houses responsible for building, maintaining and leveraging relationships with one/ more external innovation ecosystems. Where required it proposed team members are co-located with external strategic partners where required e.g. San Francisco (Berkeley), London (Imperial & Cambridge), Boston (MIT) and China (SARI). It is also proposed this team houses capability to crowd source solutions in support of BTC agendas through delivery of specific projects with start-ups/ incubators in partnership with technical organization, facilitating open calls and seed funding.

EXTRACTS ENDS

TOMORROW: Consequences of the proposed change for the current PTD global organisation EC-1, -2 &-3

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