Shell Exploration and Production Global Networks

Andy Boyd a.boyd@siep.shell.com

Royal Dutch / Shell Group of Companies

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

Shell nonShell operated operated Production (incl. development) Exploration

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

Shell Group upstream summary, 2000

34 producing, 3 developing and 18 exploration only ventures 9,751 million bbl oil/NGL proved reserves 56,283 bln scf gas proved reserves 600 mln bbls proved oil sand reserves 2,274 thousand b/d equity oil production 8,212 million scf/d equity natural gas production available for sale Profit $9,880 million Capital investment of $5.0 billion

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

Service Companies organisation

Customers Operating Unit
Exploration & Production Oil Products Chemicals Downstream Gas & Power Renewables

Professional Services Units (PSUs)

Research & Technical Services

Research & Technical Services

Research & Technical Services

Executive Committee

Executive Committee

Executive Committee Committee

Executive Committee Committee

CMD Corporate Centre

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

Global EP human resources distribution

EP total global workforce International technical professionals International staff moves per year Multi-cultural (nationalities)

30202 3453 1000 <70

7495

EPN

EPM

9016

Corporate organisations

EPA EPG
6853 4444

2394

No of expats working outside 3052 home country % non-Dutch / non-British expats

40%

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

Towards EP Global Co-operation

Global Co-operation
OU OU OU
OU
CoE RTS
SIDS SDDS

OU

RTS OU

SSISIDS
SDDS

E Co
OU OU

OU

OU
BTC

OU

CoE

OU

OU

SSI

Centralised

OU

OU

OU

1995

1998

2001

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

New Ways of Working

Centres of Excellence

Think globally, act locally

Distributed Teams

New Ways of Working

Global Networks Global Consultants

Internal resources

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

Terminology
Distributed Project Teams - DTW (teamworking) Are groups of people with a common goal, interdependent work, and joint accountability of results. Communities of Practice - CoP (sharing) Are groups of people who share information, insight and advice about a common interest or practice

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

Global Networks
also called Common Interest Networks - CINs, Communities of Practice - CoPs

Working smarter instead of harder Working together for maximum benefits Achieving breakthrough performance through people sharing and applying talents, learning's and resources globally

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

Concept of a Global Network (CoP)

What do others know ?

Discussion Group, High traffic area

The answer is new Information

Add the new Information Coordinator & Subject Focal points Start with inserting your current Information

What information do we already have ?

Knowledge Base

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

10

Tools?

Lotus Notes Email EDMS SiteScape LiveLink MS Exchange

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

11

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 new networks Technology, preferably hook in to existing community Money, as it does not come free of charge

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

12

Typical Growth Profile

Prepare

Initiate

Incubate

Expand

Renew

Mature, let go

Richard McDermott

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

13

The key to success

Works:
Start small, with a seed Keep it simple Natural communities Members identify business benefits of their network 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

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

14

People not websites!

A focus on making the IT technology available limits the chances of success to 20%.

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

15

Development of a Global Network

No. of members

1998

1999

2000

Time

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

16

Portfolio of Global Networks

3800+ members Per day: 350 logins 80 new entries 350 files viewed 4 new users

Sub-surface GN

Wells GN

Surface GN

3400+ members Per day: 160 logins 50 new entries 180 files viewed 3 new users

Major Projects (VPR)

Commercial (ECN)

Procurement (PGN)

Benchmarking (BGN)

- Competitive Intelligence - Knowledge eBusiness

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

17

The organisational structure

Hub Coordinators (1 per OU)

Global Coordinator (1)

Subject Area Focal Points (1 per subject area) Doers / Users within each OU and subject area (according to their interests and needs)

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

18

Global Networks Activity levels

Global Networks activity levels Q1 - 2001
400 200 0
Surface GN Subsurface KS Wells GN Cross Business GN

Total / day

Creations per day 50 78 85 28

Views per day 184 357 268 147

Activity

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

19

Global Networks membership

Total Members and Active Members Q1 - 2001
4,000 Total 3,000 2,000 1,000 0
Total Members Active Users Surface GN 3,151 1,250 Subsurface KS 3,137 1,888 Wells GN 1,779 1,163 Cross Business GN 3,046 2,150

Global Network

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

20

Contributions in Global Networks

Global Network usage Oct'00
300 No network queries/responses 250 200 150 100 50 0 40 10.000+ users; 30%39 (growing) in cross-business networks 41 42 43 44 Week No
W ells

Surface

Subsur

Value a Realisa Procure

Knowle Sharing Benchm

Com m e
21

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

Com pe Intellige

The implementation

Remainder of site maintained by Subject matter Focal Points (SFPs) and Network Facilitator. Doers can reply to (or comment on) any items in the formal structure.

Doers will collaborate principally in this area. All new items will be placed here. All items will have a shelf life in this folder. Items will be migrated to structured portion of site.

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

22

An example from the Wells community

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

23

Why people join

Priority Post Questions Contribute Answers Passive User Learning medium New Technology 1 (top) I IIIIIII IIIII 2 III I III IIIIIII 3 4 5 (low)

I IIIIIII IIIII IIIIIII IIII II I IIII II II II

Time invested hours / week < 0.5 II 0.5 - 1.0 IIIII 1.0 - 2.0 IIII > 2.0 II Good IIIII

Return on time invested Neutral IIIII Poor I

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

24

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 review completed 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 <1 hour/week on it

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

25

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 deliver base competencies, Global Networks to be the corporate memory and Standards as being the massed high level knowledge, we drive best practice through focused delivery teams

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

26

What we mean by Knowledge Bases

Standards/procedures/Policies Knowledge Base Best Practices Good Practices Common (to a few) procedures Discussions with peers/colleagues

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

27

Pre computers ExPats and standards carried knowledge - very successful we still do it massively 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 Global Network) Cross Business Networks were launched 2001 5.5 MM$ central funding.....
Copyright SIEP B.V. and SIEP Inc., Dec. 2000
28

EP History

With hindsight

Build larger communities by gluing smaller ones together, not by initiating them as such. This goes against current Consultant Advise who promote small trusting communities who know or get to know each other , this we feel in Shell created too many silos In building the smaller ones, keep the larger picture in the back of your mind, move the smaller into the larger ones ASAP Larger communities need a more detailed organisational structure with energizers 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

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

29

Invitation
We continually are looking for people who have similar communities to share good practices with. We have learned a lot from the likes of Siemens, VW, World Bank, Buckman Labs and we would like to think they have learned a little from us Please contact us: a.vanunnik@siep.shell.com or a.boyd@siep.shell.com

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

30

End of Presentation
Demo of one of our Global Networks

Royal Dutch / Shell Group of Companies

31