Learning From the Royal/Dutch Shell Experience
The results seen in Shell New Zealand are by no means unique. Gary Steel recalls an FRD project in Brazil that yielded five million dollars in 90 days and generated more than 80 million dollars in savings over five years. When the Brazilian management team asked why they had never identified the project before, Steel said “they responded that they had never been asked.” Another program in Oman identified nearly two billion dollars in untapped reserves. Steel noted that at the end of the process the managing director said it was the most liberating experience he had ever had. “He learned three things. First, he didn't need to have all of the answers. Second, the best answers are within the organization. And third, if you build a plan with the involvement of 1,500 people, the organization will deliver.” Stories like these abound within Royal Dutch/Shell.
The Royal Dutch/Shell experience demonstrates a few critical principles.
An aligned Teachable Point of View that is delivered with passion by senior leaders can motivate and engage an organization.
Leaders must personally teach and role model the new ways of thinking and behaving that they attempt to instill in their organizations.
Leaders need a structured process and support network to drive changes on a large scale.
Focus on developing the teaching and leadership capability at all organizational levels enables rapid, broad people development and organizational change.
When change occurs in the context of a common Teachable Point of View, change within pockets of the organization is more easily aligned with the overall organization's direction.
Those who are most capable of driving organizational change and identifying solutions to problems are those who work in key operating positions.