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1Royal Dutch / Shell Group of Companies

Shell Exploration and ProductionGlobal Networks

Andy [email protected]

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2Copyright SIEP B.V. and SIEP Inc., Dec. 2000

Shell Group E&P interests (as at December 31st 2000)

Production (incl. development)Exploration

Shelloperated

Shell

non-operated

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Shell Group upstream summary, 2000

34 producing, 3 developing and 18 exploration only ventures

9,751 million bbl oil/NGL proved reserves56,283 bln scf gas proved reserves600 mln bbls proved oil sand reserves

2,274 thousand b/d equity oil production8,212 million scf/d equity natural gas production available forsale

Profit $9,880 million

Capital investment of $5.0 billion

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Service Companies organisation

RenewablesDownstreamGas & Power

ChemicalsOil ProductsExploration& Production

Customers

ProfessionalServicesUnits(PSUs)

Corporate Centre

Research&TechnicalServices



B U S I N E S S U N I T SB U S I N E S S U N I T S

ExecutiveCommittee

ExecutiveCommittee

ExecutiveCommittee

ExecutiveCommittee

ExecutiveCommittee

ExecutiveCommittee

OperatingUnit

CMD

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5/31 5Copyright SIEP B.V. and SIEP Inc., Dec. 2000

Global EP human resources distribution

EP total global workforce 30202

International technical 3453professionals

International staff moves 1000per year

Multi-cultural (nationalities)

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SSISIDS

RTS BTCCoE

OUOU

OU

OU

OUOUOU

OUSDDS

OUOU

OU

OU

OU OUOU

OU

CoE

SIDSSDDSRTS

SSI

Centr

al i

sed

Glo

balC

o-oper

ation

CoE

1995 1998 2001

Towards EP Global Co-operation

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7/317Copyright SIEP B.V. and SIEP Inc., Dec. 2000

Thinkglobally,

actlocally

New Ways of Working

Global Networks GlobalConsultants

DistributedTeams

Centres ofExcellence

Internal resources

New Ways of Working

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Terminology

Distributed ProjectTeams - DTW

(teamworking)

Are groups of people

with a common goal,interdependent work,and jointaccountability ofresults.

Communities ofPractice - CoP

(sharing)

Are groups of people

who share information,insight and advice abouta common interest orpractice

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Global Networksalso called Common Interest Networks - CINs,

Communities of Practice - CoPs

Working smarter instead of harder

Working together for maximum benefits

Achieving breakthrough performance through peoplesharing and applying talents, learning's and resourcesglobally

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Concept of a Global Network (CoP)

Discussion Group,High traffic area

Knowledge BaseWhat informationdo we already have ?

What do othersknow ?

The answer isnew Information

Add thenew Information

Start withinserting yourcurrent Information

Coordinator &Subject Focal points

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Lotus Notes Email EDMS SiteScape LiveLink MS Exchange

Tools?

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Key ingredients in CoP kick-off

Some 15 very enthusiastic 1st members Value for the participants and for the business Content, satisfying first time visitors Subject Focal Point or Global Coordinator

community builder, energiser, ambassador,chaser

Facilitator, experienced in kicking-off newnetworks

Technology, preferably hook in to existingcommunity

Money, as it does not come free of charge

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Typical Growth Profile

Prepare Initiate Incubate Expand Renew Mature, let go

Richard McDermotRichard McDermot

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The key to success

Works:

Start small, with a seed Keep it simple Natural communities Members identify business

benefits of theirnetwork Members recognise there is

something in it for themselves Energiser bunny

To be avoided:

Complicated things,Academic approaches Knowledge

management Do It Yourself approaches,

Just give me the technology Force. (depends on culture) Top expert as moderator Implement via a Consultancy Firm (let

them guide you how to do it) A database of best practices

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People not websites!

A focus on makingthe IT technologyavailable limits

the chancesof success to 20%.

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Development of a Global Network

1998 1999 2000

No.ofmembers

Time

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Sub-surface GNSurface GNWells GN

Procure-

ment(PGN)

Bench-

marking(BGN)

Major

Projects(VPR)

Commercial(ECN)

Portfolio of Global Networks

3800+ members

Per day:

350 logins

80 new entries

350 files viewed

4 new users

3400+ members

Per day:

160 logins

50 new entries

180 files viewed

3 new users

- Competitive Intelligence- Knowledge eBusiness

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The organisational structure

Hub Coordinators (1 per OU)

Global Coordinator (1)

Subject Area Focal Points(1 per subject area)

Doers / Userswithin each OU and subjectarea (according to theirinterests and needs)

Gl b l N k i i l l

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Global Networks activity levels Q1 - 2001

0

200

400

Activity

Total/

day

Surface GN 50 184

Subsurface KS 78 357

Wells GN 85 268

Cross Business GN 28 147

Creations per day Views per day

Global Networks Activity levels

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Total Members and Active Members Q1 - 2001

0

1,000

2,000

3,000

4,000

Global Network

Total

Total Members 3,151 3,137 1,779 3,046

Active Users 1,250 1,888 1,163 2,150

Surface GN Subsurface KS Wells GN Cross Business GN

Global Networks membership

C t ib ti i Gl b l N t k

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Contributions in Global Networks

Global Network usage Oct'

0

50

100

150

200

250

300

39 40 41 42 43 44

Week N

Nonetwo

rk

queries/responses

Wells

Surfa

Subsu

Value

RealisProcu

KnowSharinBench

Comm

CompIntelli

10.000+ users; 30% in (growing)cross-business networks

Th i l t ti

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The implementation Doers will

collaborateprincipally in

this area. All new items

will be placedhere.

All items will

have a shelflife in thisfolder.

Items will bemigrated tostructured

portion of site.

Remainder ofsite maintainedby Subjectmatter FocalPoints (SFPs) and

NetworkFacilitator.

Doers can replyto (or commenton) any items in

the formalstructure.

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An example from the Wells community

Wh p pl j i

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Why people join

Priority

Post QuestionsContribute AnswersPassive UserLearning medium

New Technology

1 (top)

I

IIIIIIIIIIII

2

IIII

III

IIIIIII

3

IIIIIIIIIII

II

4

IIIIIII

II

5 (low)

IIIIIIIII

IIII

II

Time invested hours / week Return on time invested

< 0.5 0.5 - 1.0 1.0 - 2.0 > 2.0 Good Neutral Poor

II IIIII IIII II IIIII IIIII I

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Benefits and usage

Magnitude: 1 common (ish) model 11 networks 200+ entries/day 1,000+ logins/day

10,000 users Business benefits at least

200 MM$/annum(based on a value reviewcompleted in 2000)

Why people do it: > 70%: good investment 30-70%: good return on

own time investment 30-70%: exposure to new

technology 20-40%: Learning medium 10-30%: raise questions

How people do it: 50% spend

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Knowledge Bases We manage our high level technical know how in Standards, this has worked

for years in Shell (since the 30s) We have spent millions building databases of detailed technical documents:

No body searched them

They were quickly out of date No structure which document do I take as the best It is massively expensive to implement and maintain

With our complex business the taxonomy is too difficult to get right Example of 15% (and dropping) benefit analysis

We have now abandoned this and now focus on eLearning packages to deliverbase competencies, Global Networks to be the corporate memory andStandards as being the massed high level knowledge, we drive best practicethrough focused delivery teams

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What we mean by Knowledge Bases

Standards/procedures/Policies

Discussions withpeers/colleagues

Best PracticesGood Practices

Common (to a few) procedures

KnowledgeBase

EP History

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EP HistoryPre computers

ExPats and standards carried knowledge - very successful we still do itmassively today

1997

Development of initial concepts 1998

Implementation: 106 small CoPs of 20-300 members Increasing proliferation and overlaps = confusion

1999 The major leap forward:

Harmonisation of the 106 CoPs into 3 Global Networks 2000

4.5 MM$ central funding(1/3 spent centrally, 2/3 spent in individual Global Networks)

Networking imbedded in normal way of working (included in formal processes) 70% of professional staff join a network, Portfolio extended outside the core disciplines

Peer Review via the Global Networks (i.e. Short project work in GlobalNetwork)

Cross Business Networks were launched 2001

5.5 MM$ central funding.....

With hindsight

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With hindsight

Build larger communities by gluing smaller ones together, not by initiating

them as such. This goes against current Consultant Advise who promotesmall trusting communities who know or get to know each other , this wefeel in Shell created too many silos

In building the smaller ones, keep the larger picture in the back of yourmind, move the smaller into the larger ones ASAP

Larger communities need a more detailed organisational structure withenergizers and they have the critical mass to implement this. Do it yourself, you know your business, you know how your people work,

consultancies do not. Have one single place where the community members look for new items

and have a prompting system so they can keep in touch without logging in Databases of Documents do not have credibility in Upstream Shell

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Invitation

We continually are looking for people who have similarcommunities to share good practices with. We have learneda lot from the likes of Siemens, VW, World Bank, BuckmanLabs and we would like to think they have learned a littlefrom us

Please contact us:[email protected] or [email protected]

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31Royal Dutch / Shell Group of Companies

End of Presentation

Demo of one of our Global Networks

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