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Shell Leaked Transformation Plans Part 5

By John Donovan

Published below is a further multi-page segment from Shell’s leaked internal document mentioned in a Reuters/New York Times article published last week: Shell Plans 400 Job Cuts at Dutch Projects and Technology Department. The plans are much greater in scope than suggested by the headline. Their implementation will result in a managerial jobs upheaval and significant job cuts as a consequence of the acquisition of BG Group and the decline in oil prices. Once again, I have left in the page numbers, which appear at the foot of each page and sometimes interrupt paragraphs.

Projects & Engineering

Engineering:

The current Engineering organisation (PTE) is providing engineering support to assets, projects and technology across RDS and was established during transition 2009.

It is mainly organized along discipline lines across three Engineering VPs, a VP Production Excellence, a VP Quality Engineering and CI, a VP Decommissioning and Restoration, a VP Discipline Engineering and a GM Systems Engineering.

Since its inception, the main operating model for staff in PTE has been to work within discipline teams in support of assets, projects and technology wherever the need arose. This has led over time to an extreme fragmentation of the work with significant inefficiencies and administrative burden. This fragmentation has also made it very difficult for PTE staff to feel connected and build deep intimacy with the bottom line they are contributing to.

In January 2016, an initial step was taken to align the engineering organisation more closely with the Strategic Themes by shifting Engineering VPs from a regional focus to a Strategic Theme focus. Small multi-discipline engineering teams were also established in support of ST projects.

With the proposed Delivery Model changes, we will be aligning engineers with either assets, projects or technology, thereby dramatically reducing the fragmentation of their work and ensuring deep alignment and intimacy with the bottom line.

Asset Support

Quality of Asset Support

Although P&T asset support is highly valued by the LoBs, the scale and scope has grown to include non-differentiated work and its delivery has become fragmented. In 2015, a base load equivalent of 1200 FTEs of asset support was delivered by more than 3500 people, distributed over 9 Technical Divisions and 50+ skill pools. The fragmentation of work and scope introduces numerous pain points for integrated solution delivery, including large numbers of integration points/people between the Asset requestor and the delivery staff, significant internal P&T sub-contracting, and substantial cost associated with the coordination of the execution teams and management of financial activities. Whilst pockets of excellence in Asset Improvement support do exist, there is an opportunity to enable the central Asset Support organisations to integrate and better partner with the Businesses and focus the application of RDS differentiated technical capabilities to assist the Lines of Businesses in achieving their objectives of best-in-class operating performance and unit operating cost.

Quantity of Asset Support

To become Fit for the Future, it is necessary for Lines of Businesses to readjust activity levels and organisational footprints across RDS to compensate for the lower oil & gas prices and to be cash flow positive. Due to the shift in activity levels across RDS and the relative shift towards more Non- Operated assets (due to the merger with BG and other portfolio actions), there is a significant reduction in demand of Production Excellence support by the LoBs and less pull on central RDS asset

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support functions (including P&T). Therefore, the central asset support functions are no longer rightsized to meet the Business need.

Today, a multi-interface exists between Service Managers in P&T Upstream (PTU), P&T Engineering (PTE), Production Excellence (UPP), IGP LoB and the Performance Units. Assets develop annual/multi-year improvement plans and can request and agree required support from the central organisations in UPP, IGP, PTE and PTU by way of service plans. However, the multiple interfaces have proven to be too complicated (“crowded”) and not cost effective. Additionally, because UPP provides process support and PTE/X does execution support, a doubling of some team lead positions (‘team lead’ in PTE/X and ‘regional lead’ in UPP) has occurred.

Consequently, the proposal is to merge the Production Excellence execution arm for Asset Support in P&T (part of PTE/X) and the Decommissioning and Restoration team (PTE/R) with the Upstream Production Excellence (UPP) organisation and to move the Service Management team from P&T Upstream (PTU) to the Global Production Excellence organisations in UPP and IGP. Production Excellence (UPP) will also be renamed Production Support and Excellence to further establish UPP as a centre of excellence.

The proposed integration of Service management organisations into Upstream and Integrated Gas will lower the (internal) costs by removing duplication of Production Excellence staff/work across PTE, PTU, UPP and IGP. It also allows for streamlining of interfaces and right sizing the central organisation to deliver effective asset support. Recently Downstream underwent a similar exercise as part of the Prozona reorganisation for Downstream Asset Support, which resulted in the formation of the new Manufacturing Support & Excellence organisation – we seek to build on the learnings from this change.

Additionally, the proposed move of the Decommissioning and Restoration Centre (PTE/R) into UPP will further increase efficiency by increasing alignment with the business without sacrificing links with the P&T organisation, as the execution function will remain with PTW and PTP. The links in UPP with the production EVPs in both UP and IG will enhance the smooth transition from end of field life planning and strategy into decommissioning of held assets. Finally, moving the Decommissioning organisation into UPP will strengthen the connectivity with the Lines of Business in recording decommissioning cost savings on both Shell books and in the Operating Plans.

Projects:

PTP is a global organisation whose purpose is to delivery Shell’s capital projects safely, competitively and affordably. PTP is accountable for the safe execution of Shell Upstream’s Operated projects and Downstream’s flagship Shell Operated projects.

In recent years, project delivery has become more predictable, with fewer outliers against GIP promises on cost and schedule, and external benchmarking showing first year performance of new facilities on stream better than industry average. However, the same bench-making data also shows a need to improve by about 20-30% against top-quartile / best in class cost and schedule performance. Best-in-class is a continuously moving target as our peer group in the industry responds to the same cost pressures we experience in Shell. Further, setting a ‘best-in-class’ oil and gas industry target may not ultimately be enough: the industry as a whole has become less efficient over the last 1-2 decades, whilst automotive, aerospace, solar and wind for example have become more efficient. To offer a sustainable world class investment, we will need to set our sights beyond what is best in class today.

Aside from this cost context, Shell’s project portfolio mix is expected to be distinctly different from the past. Whilst Shell will ensure that it retains the capability to successfully delivery highly complex mega projects (Pearl GTL, Prelude FLNG), there will be fewer one-of-a-kind highly complex mega

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projects and proportionately more simple to medium complex projects (tie-backs to existing hubs, ‘copies’ of previous solutions, e.g. FPSOs).

This heralds a more ‘commoditised’ world for project delivery, which demands a leaner, more agile, more integrated project delivery organisation. It demands an organisation which operates highly efficient interfaces with the lines of business in order to ensure complete clarity on business drivers and end-to-end trade-offs. It requires an organisation which can competitively scope its concepts, leveraging wherever possible existing industry solutions. It requires a mind-set of ‘do we need this?’ not just at concept level but also during FEED and Detailed Design. We need to specify our requirements to take advantage of industry solutions and have the skills to verify that these industry solutions will serve our needs, or in other words a ‘Systems Engineering’ set of skills and behaviours running coherently through concept select all the way through project design and delivery. Leveraging industry solutions and systems engineering effectively, as well as driving improved productivity in construction, could be greatly enabled by an ability to work consistently with a smaller number of contractors.

The proposal to bring projects and engineering into a single organisation will significantly reduce the number of organizational interfaces needed to deliver projects in this new model. Already the refreshed Project Management Framework (released in February 2017) puts in place a fit for purpose set of processes for project delivery which enable project teams to ‘right size’ their project deliverables according to the risk profile of the project. Bringing the discipline engineering teams organizationally closer to project delivery within one organisation, particularly for the work they do pre-DG3 (full-time discipline engineers on flagship projects already sit in PTP project teams post DG3), will enable the Project Manager to more effectively integrate the engineering, execution and supply chain aspects of the Project Plan. It will also facilitate greater business intimacy and risk/reward balance in determining the degree of functionality required. When technical authorities sit more remotely from a project, they are less able to weigh up the value and risk trade-offs of their decisions, and current interfaces between technical authorities and project teams have the potential to be more efficient in practice, despite simplifying DCAF and launching the PMF.

Organisational proximity between discipline engineering (including Quality Assurance) and project delivery (including Project Services) will also more easily facilitate the adoption of Systems Engineering within project delivery, which starts with the implementation of requirements management.

A separate Development organisation is maintained in recognition of the key role in the leadership and integration of sub-surface contributions required pre-concept select. From concept select to DG3, the focus shifts to facilities engineering, however Decision Gate 3 is a more formal, and well- documented stage of the ORS than Concept Select and is felt to therefore represent a more appropriate point of ‘official’ handover from Development to Facilities Engineering.

Bringing facilities engineering deliverables under the direct accountability of the Project Manager represents a significant simplification in the number of functional interfaces he or she needs to deal with in order to deliver the project. It is proposed to further simplify this by moving the direct reporting relationship of the Quality and Project Services function into the delivery line. It is expected that this will sharpen the focus on bottom-line delivery and re-dress somewhat the balance towards delivery versus function. A potential risk of this decision could be insufficient functional oversight on project decisions. It is proposed to mitigate this by safe-guarding the assurance role of the functions on key decisions (e.g. maintaining the independent role of Project Services in the approval of a project’s Estimate and Schedule Fact Sheet), and by ensuring the function continues to play a key role in the selection, development and performance of function personnel.

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VP’ships Projects & Engineering

EVP Projects & Engineering
There will be a single EVP for Projects & Engineering with 8 direct reports:

  •   4 Line of Business VPs Project Delivery: VP Deep Water Projects, VP Integrated Gas Projects, VP Conventional Oil and Gas Projects, VP Downstream and Unconventional Projects,
  •   2 Flagship Project Directors (Prelude and TBD, based on future flagship projects). Prelude will demobilize by mid-2018, bringing to 7 the total number of direct reports to the EVP by end 2018.
  • 2 Functional VPs: VP Project Management & Project Services and VP Engineering & Asset Support.

VPs Project Delivery
There are 3 principal design changes which occur to the 4 Lines of Business VPs Project Delivery.

1)  Discipline Engineering support to Project Delivery will be organized within these Delivery VPships, either directly to a delivery portfolio or – where discipline engineers support multiple portfolios – to a new role GM Engineering & Project Excellence.
2)  Quality support to Project Delivery will be organized within these Delivery VPships, directly to a delivery portfolio or – where spanning multiple portfolios – to a new role GM Engineering & Project Excellence.

 

3)  Project Services staff who are dedicated to specific Line of Business projects and portfolios will be organized within these Delivery VPships, either directly to a Project Manager or – where supporting multiple projects within a portfolio – to a Country Project Services Lead who will report to the Country Project GM.

VP Project Engineering and Project Services

This new organisation combines Project Engineering and Project Services Functional Excellence and will comprise ~282 FTEs.

It will have 9 GMs:

  •   4 Project Services GMs: EMEA, Americas, East and Upstream Development. These lead the Project Services staff who support multiple lines of business and therefore cannot be mapped to a specific Delivery VPship.
  •   A GM ORA/ CSU, a GM Design Services and Digitalisation, a GM Performance Assurance & Benchmarking, a GM Capability, Standards and Tools and a GM Project ExcellenceThese functional teams will be distributed across the P&T Hubs.This VP’ship is created to combine Project Engineering and Project Services Functional Excellence. The organisation must accelerate the transformation in the competitiveness of PT, deploy functional initiatives such as Systems Engineering, Digitization, CI, Project Services Tools, etc. whilst continuing to support safe and effective front line delivery of ongoing activities (e.g. projects in flight). The organization is designed for business intimacy & bottom-line accountability with teams proximate to business partners where this is resource efficient and cost effective. Delivery accountability drives line reporting whilst strengthened functional roles, with clear authority for resource / skillpool development & deployment, assurance and functional improvement in this

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VP’ship, provide balance. Functional leaders’ role extends to all of their skillpool, whether staff are located in Projects, Asset Support, in the Business or in the Functional Projects organization. Designed to enable the flexibility of resources as demand changes, the proposed organization is leaner and maintains high-end expertise. Interfaces for the Project Managers and Country organizations are simplified by reducing where possible the number of reporting lines out of a country.

Functional roles in this VP ship will develop and standardize the tools and protocols for Project Delivery excellence and for Design Services and Digitization. The organization will act as change agents for implementing the strategic intent of the Delivery Model ways of working and as the architect and custodian of the Digital backbone. The Delivery VPs in the LoBs will be accountable for the deployment of PDM ways of working, improvement initiatives and tools.

The following Design Principles have been applied to Project Services (PS);

The PS strategic purpose /role remains unchanged: Integrated delivery of Cost Estimating, Cost Control, Schedule, Risk and Benchmarking. PS serve multiple customers equally: PTU for Opportunity Development decision support, PTP for delivery of projects and Assets for locally led activities.

The PS Reporting structure is based on one reporting line per Technical Directorate in PT (EVP);

  •   PS staff assigned to a specific project – report to PM;
  •   PS staff working in a local country matrix – report to the local project services leader who reports to local PTP LoB GM / delivery lead;
  •   PS staff working in regional hubs supporting various opportunity developments or projects, or performing functional roles (tools dev’t, capability, skillpool) report to VP Project & Engineering Services via their respective GMs in PE & PS;
  •   On exceptional basis, PS staff could stay in the regional hub reporting structure if there is no PM in country yet (e.g. pre DG 3), or there is a small junior team in country only who would struggle keeping PS principles against local pressures.For staff working in a regional hub, true functional roles are segregated from roles with a delivery accountability towards opportunities & projects (different between PTU and PTP), recognizing the two roles of PS staff: Delivery Support, and Independent Reporting and Assurance.Organisations need to be able to accommodate staff returning from projects – otherwise by design the skillpool delivery capability erodes if RDS deploys the strongest performers on projects.GM Project Design & Digital Data Systems

    The GM’ship Design and Digital Data Systems is led by a position based in Bangalore. The organization has 3 areas of focus;

1. Data Centric Working;
i. The Digital Data Systems team within this GM’ship exists to build and maintain

capability and tools to identify the replicable 3D blocks from prior Projects, attach engineering “intelligence” to it (requirements/ specifications, applicability range,

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etc.) and incorporate it into a “replication catalogue” to scale and use across all lines of business. From within this team, there is a NL based Senior Systems and Design Engineer position which has moved into the new organization.

ii. The Engineering Productivity Solutions team then takes the “replication catalogue”, and 3D tools like OptiPlant to help Projects screen for competitive and affordable options through the data centric backbone, and interface to the MTO capture and Cost Estimating Tools. They maintain the efficient workflows, identify the taxonomy and work with CP, etc. to ensure full data centric way of working with the Contractor. They work with the Global Functional Requirements and Standard Production Systems community to bring the Requirements and Systems Engineering work into the data centric space, such that EPCs can use them seamlessly. The team is headed by a NL based role with a NL based SME position.

VP Engineering & Asset Support

This new organization will consist of 2 distinct parts: a consolidated Asset Support organization and a Functional organization for Discipline and Process Engineering.
The Asset Support organization will have 4 GMs with global remit and aligned with the Strategic Themes: GM Asset Support Upstream Operated & Deepwater, GM Asset Support Downstream & Third Party/Licensing, GM Asset Support Integrated Gas, GM Asset Support Upstream Joint Ventures.

These GMs will provide discipline engineering and, for Upstream, process engineering support to the assets in line with their Gap-to-Potential plans. Each GM will have multi-disciplinary teams reporting to them.

The Functional organization will have a Chief Facilities Engineer, a GM Systems Engineering & GDH Quality and 4 Global Discipline Heads (GDH) covering multiple disciplines:

  •   GDH Mechanical Engineering: will cover Mechanical, Materials and Integrity (MMI), Rotating Equipment and Heat Transfer
  •   GDH Process Engineering: will cover Process Engineering, Utilities and Flow Assurance
  •   GDH Civil, Offshore and Pipelines: will cover Civil, Structures and Offshore (CSO), Subsea andPipelines
  •   GDH Instrumentation Control and Electrical: will cover Process Automation, Control and Optimisation (PACO) and Electrical Engineering
    These four Global Discipline Heads will each have a small team of Principal Technical Experts reporting to them. Together, they will constitute our deepest technical expertise which will be deployed on assets, projects and technology across RDS, wherever required.
    The Chief Facilities Engineering will provide functional leadership to both Discipline Engineering and Process Engineering. This role will replace the currently separate Chief Discipline Engineer and Chief Process Engineer.
    The GM Systems Engineering and GDH Quality will lead the on-going change journeys on Systems Engineering and Quality. This combination recognizes the synergies between the Quality improvement journey and the drive to embed Systems Engineering in projects and assets.As shown above the EVP Projects now takes responsibility for Project Delivery, Engineering and Asset SupportThe roles of the VPs Project Delivery and the Project Directors Flagship Projects will have a broadened scope. VPs Project Delivery will now also have accountability for the activities of

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Engineering, Project Services & Quality across their portfolios. Project Directors Flagship Projects will now have direct line responsibility for Project Services and Quality teams on their projects.

A new role of GM Engineering & Project Excellence is created, reporting to the VPs Project Delivery, to drive improvement across the delivery organisations. These roles will be co-located with the VPs.

VP Downstream & Unconventionals:

This VPship combines two Line of Business projects portfolios. Previously Unconventionals was paired with Integrated Gas in a single VPship. This change is proposed to better balance the VPships and to provide better geographic coverage. The GMs reporting to the VP Downstream & Unconventionals are:

  •   GM Engineering & Project Excellence (new role, Houston based)
  •   GM Unconventionals (new reporting line, job re-evaluated, otherwise no change).
  •   GM Americas & New Energies (new role, Houston based)
  •   Project Manager Aladdin / CSPC (no change, Beijing based)
  •   GM DS Project East (change of location to Singapore, no other changes)

VP COG Projects:

There is a new role GM Engineering & Project Excellence, NL based. This role will now oversee the work of the Project Excellence Support Manager, together with pre-DG3 discipline engineering and quality.

Other GMships remain largely the same except that they now include direct responsibility for project related engineering, quality and project services:

  •   GM UK Projects (Aberdeen based)
  •   GM Nigeria COG Projects (Port Harcourt based)
  •   GM NL & NOV (NL based)
  •   GM Iraq Projects (Iraq & Dubai based)
  •   GM Norway Projects (Stavanger based)
  •   GM East Projects (Miri based)

VP IG Projects:
The VP role will now be NL based from 1 July.

The role GM IG Programme Office (NL based) becomes titled GM Engineering & Project Excellence. The role will now oversee the work of the Project Excellence Support Manager. Pre-DG3 Engineering activity currently done in this GMship moves to the GM IG Projects East. The role is re-evaluated and will remain in NL.

The GM IG East is proposed to move to Bangalore. Its scope now includes discipline engineering for the relevant projects, as well as pre-DG3 IG project engineering support.

The other GMships and Project Directorships remain the same:

  •   Project Director Abadi (Jakarta based)
  •   Project Director Lake Charles (US based)
  •   Project Manager Trinidad Hub (Trinidad based)
  •   Project Manager Elba (Houston based)

VP DW Projects:

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The GM Topsides becomes the GM Engineering & Project Excellence, and oversees the work of the Project Excellence Support Manager.

Other GMships remain largely the same except that they now include direct responsibility for project related engineering, quality and project services:

  •   GM Nigeria Deep Water (Lagos based)
  •   Project Manager Appomattox (Houston based)
  •   Project Manager Vito (Houston based)
  •   Project Director Bonga South West & Aparo (Lagos based)
  •   GM Brazil (Rio based)
  •   GM Surf Projects GOM (Houston based)

Project Director Prelude (Perth based):

No change. This role will continue until Q2 2018 and then demobilizes.

Project Director TBD, based on future flagship projects (Houston based):

This role previously reported to the VP Downstream Projects and will now report to the EVP. No other change.

VP Project Management & Project Services (Bangalore based)

The roles of VP of Project Engineering and VP Project Services will cease to exist. This new VP of Project Engineering and Project Services, based in Bangalore, will be established to combine the scope of these roles, together with the ORA/CSU scope of the VP Production Excellence. Reporting to this new VP role are:

  •   The 3 GMs Project Services Region mentioned above, based in Houston, Rijswijk and Bangalore: manage the teams supporting multiple lines of business with Capex and Opex Cost and Schedule estimates, benchmarking delivery, risk management deployment and feasex management for pre-DG3 projects. These GMs can call upon the GM Performance, Assurance and Benchmarking to assure project services deliverables on a given project if they are dissatisfied by the quality of work performed in the project delivery lines.
  •   1 Project Services GM for Upstream Projects (NL): acts as a single point of contact for all pre-DG3 Upstream projects, for New Business Development and who leverages resources from the 3 regional hubs to deliver quality estimates
  •   GM Project Excellence (Virtual): this role is the Subject Matter Expert for Construction Productivity, Contractor Performance Management, and Brownfield Project Delivery.
  •   GM Performance, Assurance & Benchmarking: to provide the management information and consistent reporting of the performance of all projects in the portfolio, externally benchmarked.
  •   GM Design Services and Digitalisation (Bangalore): an adjustment on the scope of the current GM Design Office to more explicitly provide a mandate to lead the creation of a digital backbone for projects (which later become assets)
  • GM Capability, Standards and Tools and Global Discipline Head Project Services (Bangalore): a new role combining 4 GM roles in the current structure. This role oversees the professional development of the Project Management and Project Services skillpools, and the maintenance of tools essential to the execution of their professional remit.

VP Special Projects (NL based). This role ceases to exist, together with 3 direct reports.

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Consequences of the proposed change for the PTE organisation including NL

(The specific details of the impacts of the below changes to NL positions can be found in the tables attached)

In the proposed new structure, the current EVP Engineering and VP roles in PTE will cease to exist. At GM and Team Lead level, most roles will also cease to exist except when it is proposed to move existing teams to other parts of the organization.

Engineering (PTE/E, PTE/A, PTE/P, PTE/D)

Engineering activities in support of projects will move to the project delivery line.

Engineering activities in support of assets will be consolidated in a new Asset Support organization under the new VP Engineering and Asset Support.

Engineering activities in support of technology development will move to the new Technology organization. This mainly affects the Materials & Corrosion, Flow Assurance and Utilities & Heat Transfer disciplines.

Four new Global Discipline Head roles, covering multiple disciplines, will be established in replacement of the existing structure with 8 Global Discipline Heads (7 for Discipline Engineering and 1 for Process Engineering). The new Global Discipline Heads will have a small team of Principal Technical Experts reporting to them.

The position of Chief Facilities Engineer will be created, providing functional leadership to Discipline and Process Engineering.

Quality Engineering and CI (PTE/Q)

Quality engineers supporting projects will move to the project delivery line. A small functional group for Quality Engineering will be established and combined with the Systems Engineering team under the leadership of the GM Systems Engineering and GDH Quality. This combination recognizes the synergies between the Quality improvement journey and the drive to embed Systems Engineering in projects and assets.

The most senior CI position will move to the PT2020 PMO team (PTF). The other CI positions will cease to exist.

Production Excellence (PTE/X)

As described above, part of PTE/X will move to UPP. The remaining activities will be consolidated under the GM OR & CSU reporting to the VP Project Engineering and Project Services.

Systems Engineering (PTE/S)

The Systems Engineering team will be combined with the Quality Engineering functional group under the leadership of the GM Systems Engineering and GDH Quality.

Decommissioning & Restoration (PTE/R)

The Decommissioning and Restoration team will move to Production Excellence (UPP).

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Consequences of the proposed change for the current PTP organisation, including NL (The specific details of the impacts of the below changes to NL positions can be found in the tables attached)

VP Special Projects

This VP’ship will be cease to exist along with the four positions, VP and three direct reports.

VP COG Projects & Engineering

The changes within the COG VP’ship are two-fold;

  1. The change in reporting lines for Engineering, Project Services and Quality from functional reporting lines into the Projects or Delivery GMs
  2. The creation of an Engineering & Project Excellence team based across NL/Bangalore which works across the COG project portfolio to drive excellence through the deployment of functional (e.g. Systems Engineering, PMF) and transformation (e.g. PDM) initiatives

Creation of Engineering & Project Excellence Team

This new GM’ship reports to the VP COG Projects. The team is 29 in total, of which 19 positions are based in NL, with the remainder based in Bangalore. Whilst the team construct is new, 15 NL positions have moved across from existing parts of COG (PTP/O) and Engineering (PTE/E).

The purpose of the team is to;

  1. Manage performance and drive transformation in COG projects
  2. Provide engineering and project resources for pre-DG3 Hub-based projects
  3. Provide ad hoc or short term support to project teams based in COG countries

Below the GM, the team has a small group working on Project Performance and 2 teams (one NL and one BGL based) providing project and discipline engineering support to the COG project portfolio.

In creating the new organization, 8 positions in NL have ceased to exist as the future work will be better placed out of Bangalore given the activities within the COG project portfolio;

In addition to the moved (NL) roles, we will be resourcing 4 new positions

VP DS & Unconventionals

GM EMEA Downstream – GM DS Projects Europe

  •   Role of GM EMEA, Downstream changes JG and retitles as GM DS Projects Europe, due to larger accountability.
  •   The SDA Engineering Manager role moves from PTE/A and reports to the GM DS Projects Europe. The following 3 Quality roles will move from PTE/Q and report to the SDA Engineering Manager: Project Quality Engineer, Senior QA Engineer, Quality Manager. The following 7

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Engineering roles will move from PTE/A and also report to the SDA Engineering Manager: Civil & Structural Engineer, Mechanical Engineer, Heat Transfer Engineer, Senior Process Control Project Engineer, Civil Lead Eng Downstream Projects EUA, Senior Automation Engineer and Mechanical Engineer.

  •   The following 5 Project Services roles will report directly to the GM DS Projects Europe and move from PTP/C: Project Cost Estimating Engineer, Project Cost Engineer, Cost Engineer, Project Services SDA Project, Cost Engineer.
  •   The following 3 roles reporting to the GM DS Projects Europe will cease to exist: JG2 Principle Project Manager, JG2 Vacancy Perform Portfolio Manager
  •   The following 4 roles will continue to report to the GM DS Projects Europe and will have updated reference indicators: Project Development Manager DS Projects, SDA Construction Manager, Senior Project Engineer, and Project Engineer. The following 2 roles will continue to report to the Project Development Manager DS Projects and will have updated reference indicators: Project Engineer and SDA Project Engineer.
  •   The GM DS Projects Europe will also manage a newly created role titled Early Project Dev/LoB Support Mgr. Reporting to this newly created role are 3 newly created roles: Engineering Manager, Project Engineer and Senior Project Engineer.
  •   Under the newly created Engineering Manager, the following Engineering role will move reporting from PTE/E: Pipeline Engineer. Also under the newly created Engineering Manager, the following 4 Engineering roles will move reporting from PTE/A: Energy & Other Utilities Engineer, Eng. Integrator Downstream Projects, Rotating Equipment Engineer and Senior Mechanical Engineer. The following 3 newly created roles will report to the newly created Engineering Manager: M&C Engineer, Electrical Engineer, PACO Engineer.
  •   Lastly, the following position will cease to exist: Business Improvement Mgr Downstream.VP Engineering & Asset SupportThis is an entirely newly created VP’ship see the relevant details under the new organisation structure above.VP IG Projects

    The VP IG Projects role is largely unchanged in terms of scope. As with other Delivery VP’ships where appropriate Project Services, Discipline and Quality Engineering will move into the direct reporting line. This position will move to become NL based.

    The Project Excellence Support Manager will move to report to the GM Engineering and Project Excellence.

    GM LNG Program Office – GM Engineering & Project Excellence

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This role will be renamed GM Engineering & Project Excellence to reflect the change in scope. The IG Program Office will continue to be a primary accountability for this role. The Project Excellence Support Manager will move to report to this role. The Project Development & Delivery Manager will cease to exist in NL and a new position will be created in Bangalore reporting into the GM IG Projects East, based in Bangalore by 1st December 2018, along with three JG2, five JG3 and one JG4 Project Engineering roles.

GM IG Projects East

By 1st December 2018 this GM’ship including this position will be moved to Bangalore in line with the long-term strategy to continue to build capability in Bangalore and to optimise the P&T footprint. As a result of both this move and reduction of activities 4 projecting engineering NL based roles will cease to exist.

As part of the move of facilities engineering a new position Engineering Manager will be created this will be based in NL and will report to the GM IG Projects East, with 15 NL based positions that currently carry out engineering activities for IG mapping across.

GM IG Projects West

As a result of reduced activity levels this vacant GM position will cease to exist.

The Principal Project Engineer LNG supporting LNGC is ceasing to exist due to the restructuring of activities to meet changing project demands

VP Project Engineering & Project Services

New VP position combining Project Engineering and Project Services Functional Excellence.

GM Project Design & Digital Data Systems

There are 3 NL based roles within the GM’ship of Design and Digital Data Systems;

  1. Engineering Productivity Solutions Manager – JG1 (new position)
  2. Efficient Engineering SME – JG2 (new position)
  3. Senior Systems and Design Engineer – JG3 (moved)

GM Project Delivery Excellence

This GM role is a new position dedicated to driving the Project Management Framework and Project Delivery Models ways of working into deployment. Accountabilities will include Project Excellence coaches and Subject Matter Experts in Future of Construction, Brownfield and Integrated Improvement Planning. The team will;

 Have a dedicated GM driving the PMF and PDM ways of working into project deployment via the full time and part time PE Coaches.

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  •   Centrally coordinate and own the annual IIP for PE and PS, with deployment of improvements via regional hub & and country /project team staff.
  •   Continue to drive the Brownfield Theme across all LoBs.
  •   Coordinate and deploy Future of Construction initiatives as they mature.
  •   Provide dedicated input as a PE practitioner into the Focused Contractor initiative.
  •   Form the ‘bridge’ – dependency between delivery teams and the true functional PE tasks.The position will have nine direct reports of which five will be based in NL. In addition, three roles will be based at the most appropriate hub location (which includes NL) for the suitable candidate.GM OR and CSUThis GM position will be based in Bangalore this new GM’ship will be accountable to lead the global community of practice of highly specialised engineers for Operations Readiness as well as Commissioning and Start-up. The community consists currently of approx. 750 practitioners, approx. 500 of which are Shell employees currently). The accountabilities will include further:
  •   Responsibility for maintaining the competences, training programs and tools required for all RDS practitioners in all businesses.
  •   Responsibility for sign off, of “pre-start up” assurance for all major projects in Shell.
  •   GM and Team Leaders are thought partner/coach of CSU or asset managers at sites where there is significant project work.
  •   GM is accountable to provide expertise advice to Project VP’s and EVP to set the direction for this critical part of project delivery with huge impact on performance and delivery.The position will be supported by three regional Team Leads (Americas, Asia, Europe), three Principal Operations Readiness Engineers as individual contributors of which two will be based in NL and one NL based Principal CSU Engineer. The regional OR/CSU Europe team will be led by a team lead based in NL with 7 direct reports, five of them based in NL.GM Project Services DevelopmentThis GM role was created as part of the TOM in 2016. The team is reduced in size in terms of direct reporting line with the portfolio co-ordinators per PTU VP’ship remaining and the front end PSMs reporting into the regional hubs. The role is primarily a global delivery support role, with some elements of driving global portfolio reporting consistency. Specific focus on delivery of front end opportunities and decision making, through portfolio coordination.
  •   Serving as single point entry for pre-DG3 work done from the Regional Hubs – member of PTU-LT and owner of the PTU/FEDM interface with PS.
  •   Importance of PS in front end growing with new PDM operating philosophy: Early benchmarks & target setting, & focused contracting starting in select. Ambassador for Delivery Model changes.

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  •   Separate GMship allows restriction on amount of staff in Most Confidential delivery in Growth & NBD Projects.
  •   Limited number of highly experienced staff, only PSMs as LoB focal points for VPs and FEDMs in PTU.
  •   Role is to drive Global PS Consistency in Delivery of front end opportunities and decision making, through portfolio coordination, staff embedded in quarterly performance appraisal process, and running functional networks for front end practices between regional hubs and front end staff in country PS teams
  •   PS generalist / growth staff in regional hubs, also primarily working in front end / with PTU FEDMs, will change their reporting line from the GM PS Development to Regional Hub GMs for PSThere will be five direct reports to this GM, with three roles based in NL. One position will cease to exist in NL and move to Bangalore 1st December 2018 to align with the IG Program office change.GM Project Services EMEAThis position is adapted and is one of three equivalent Regional Hub Management positions. The Regional Hub manager EMEA leads the team of staff in the hub that supports opportunities and projects for all LoBs, both Operated and NOV. They will deliver Capex, Opex, Feasex, Schedules, Risk Management Deployment and project focused benchmarking.

    PSM hub staff are either in one of the PS discipline teams or labelled as PSM Generalist / Growth – the interface manager roles cease to exist. Staff in the regional hub will support functional activities on request of the GM Capabilities as required.

    The GM will act as RDL for PS staff skillpool, and act as TA 1 with respect to DCAF controls in the region

    GMs will manage the routing towards VP for sign-off of ESFS, both for ESFS sign-off of ESFS generated in the hubs, as well as ESFS sign-off for ESFS generated in the region (after providing the necessary assurance), in line with MoA in Finance Control Framework / ORS

    The GM will sit in the PTP LoB Leadership team.

    GM Performance Assurance & Benchmarking

    This new NL based role will focus on the co-ordination of all reporting and appraisal activities facilitating Quarterly Performance Appraisals.

    Internal RDS, the team will co-ordinate all reporting and appraisal activities facilitating Quarterly Performance Appraisal done by Finance as end accountable entity. The team will be the custodian of the Management Information System (MIS) for PTP EVPs in PTP, and will perform special studies on performance on request of EC and (E)VP.

    The team also has an external Industry focus, and will provide Competitive Intelligence, collaborating with SCI manager: Market Intelligence & Category Analysis. The team will deliver the annual Competitive Cost Outlook together with SCI, CP and multiple other players as managed by Finance; also, the team manages the contracts and links with IPA, CERA, etc.

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Within this team there will be 5 positions in NL. In addition, there will be one role that will be based at the most appropriate hub location (which includes NL) for the suitable candidate.

To provide balance to the change in reporting lines to Projects or local country teams in PTP delivery LoB, the formal assurance role has been strengthened.

The number of PS Assurance managers globally has grown while the links with the OVA team in Finance remain intact. The team will provide assurance through ESARs at all decision gates, and will perform PERs & PSERs, Assists funded by projects. The team will provide independence though participation (mostly remote) in all CSRA’s – continued practice every 6 months in execute.

On exception basis, an on-site PSER (Project Services Execution Review) will be performed during execute –Trigger by the Functional line (VP) rather than by the project line of sight, funded by project, staffed from function.

Enabled by data centric working from Bangalore, the team will perform active project controls via the Global Support Office, or passive monitoring through data access to all monthly project reports to enable random quality checking and data build up for benchmarking and data capture

Accountability to develop and manage the PSM global network to drive discipline professionalism for Estimating, Risk Management, Controls, Planning, Benchmarking, replacing PS line communications as per current practice

GM Project Capability, Standards & Tools

This is a new position for the combined project engineering and project services functional accountabilities. The GM will also be the GDH for Project Services.

  •   The team will combine the management of PE and PS standards, building on the change control principles of the PMF, and will manage & maintain the ISO 9001 certified management system (project man & project services management manual)
  •   The team will combine Capability management for PE and PS, managing competence profiles, graduate programmes, strategic demand forecasting, and act as counterpart to SPA and HR skillpool.
  •   The team will hold dedicated Resources to capture “as installed “capex and opex data and provide feedback loop to CCET.
  •   Provide dedicated resource to moderate SIGN Network through the PDM change journey, providing proactive and engaging dialog and support to the change.
  •   The team will have one centralized group for the continuous improvement, maintenance and help-desk function of the multiple PS tools in one place.
  •   Central coordination of the PTEs and SMEs who represent the functional center of excellence for PE/PS.
  •   Data management analysis and studies and link to design and digitalization.

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As part of strengthened assurance and the management of the capability in the global skillpool, the PS GDH has the right of Veto for job appointments /transfers and progressions of roles minimum JG 3+.

PS Management from the Regional Hubs and Global Functions will provide input to the full Individual Performance Review cycle for all PS skillpool staff including input into GPAs and performance ranking.

This team will have 6 NL based roles. In addition, there will be 4 roles that will be based at the most appropriate hub location (which includes NL) for the suitable candidate.

Summary of the NL consequences

Extracts end

TOMORROW:

PT Upstream Development (PTU)

Links for earlier extracts from the same document:

Part 1: Shell’s 88 page global transformation plans leaked to John Donovan: 31 July 2017

Part 2: Shell’s proposed global organisation changes: Part 2: 2 Aug 2017

Part 3: Shell’s leaked global organisation changes: Part 3: 2 Aug 2107

Part 4: Leaked Shell Transformation Plans: Part 4: 4 Aug 2017

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SHELL JOBS UPHEAVAL: 1 Aug 2017

Leaked Shell global transformation doc: 88 pages of HR buzzwords and BS: 2 Aug 2017

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