Royal Dutch Shell
Table of Contents
EXECUTIVE SUMMARY 2
1. PROBLEM CAUSE IDENTIFICATION 3
1.1 STRUCTURAL STRATEGY 4
1.1.1 Strategic Management and Direction 4
1.1.2 Organisation Structure 5
1.1.3 Absence of Programme Management 5
1.2 BEHAVIOURAL STRATEGY 6
1.2.1 Absence of Total Quality Management 6
1.2.2 Poor Communication 6
1.2.3 Poor leadership 7
1.2.4 Unethical Behaviour 7
1.3 OPERATIONS STRATEGY 8
1.3.1 Poor HR functioning 8
1.3.2 Lack of Policies and Procedures 8
1.3.3 Absence of Risk Management 8
2 SOLUTION RECOMMENDATION 9
2.1 STRATEGIC MANAGEMENT 9
2.1.1 Using the Balanced Score Card (BSC) 9
2.2 INTRODUCING THE CHIEF PROGRAMME OFFICE 11
2.3 PORTFOLIO OF STRATEGIC TRANSFORMATION 12
2.4 BECOME A LEARNING ORGANISATION. 13
2.5 IMPROVING LEADERSHIP 14
2.6 MANAGING CHANGE 16
3. IMPLEMENTATION STRATEGY 17
3.1 IMPLEMENTATION PLAN 17
3.2 REVIEW AND APPRAISAL 17
CONCLUSION 18
BIBLIOGRAPHY 19
APPENDIX A – MATRIX ORGANISATION STRUCTURE 20
Executive Summary
Successfully managing strategic change requires a continued process that evaluates and controls the business activity of the organisation. This includes assessing the competition and setting goals and strategies that fall on or above par with them. This strategy then needs to be regularly assessed to determine if it has been successful or whether a new strategy needs to be developed to meet ever changing circumstances, new technologies and new economic, social, financial or political environments.
This report highlights the cause of the problems that ultimately resulted in the failure of Royal Dutch/Shell to implement a successful strategic change. It also aims to provide a solution that will aid the organisation in realising their business objectives and goals.
The fundamental root cause problem within the Royal Dutch/Shell organisation can be surmised in the blatant lack of strategic management and direction. The organisation is clearly not focussed on its vision. There is no direction for
EXECUTIVE SUMMARY 2
1. PROBLEM CAUSE IDENTIFICATION 3
1.1 STRUCTURAL STRATEGY 4
1.1.1 Strategic Management and Direction 4
1.1.2 Organisation Structure 5
1.1.3 Absence of Programme Management 5
1.2 BEHAVIOURAL STRATEGY 6
1.2.1 Absence of Total Quality Management 6
1.2.2 Poor Communication 6
1.2.3 Poor leadership 7
1.2.4 Unethical Behaviour 7
1.3 OPERATIONS STRATEGY 8
1.3.1 Poor HR functioning 8
1.3.2 Lack of Policies and Procedures 8
1.3.3 Absence of Risk Management 8
2 SOLUTION RECOMMENDATION 9
2.1 STRATEGIC MANAGEMENT 9
2.1.1 Using the Balanced Score Card (BSC) 9
2.2 INTRODUCING THE CHIEF PROGRAMME OFFICE 11
2.3 PORTFOLIO OF STRATEGIC TRANSFORMATION 12
2.4 BECOME A LEARNING ORGANISATION. 13
2.5 IMPROVING LEADERSHIP 14
2.6 MANAGING CHANGE 16
3. IMPLEMENTATION STRATEGY 17
3.1 IMPLEMENTATION PLAN 17
3.2 REVIEW AND APPRAISAL 17
CONCLUSION 18
BIBLIOGRAPHY 19
APPENDIX A – MATRIX ORGANISATION STRUCTURE 20
Executive Summary
Successfully managing strategic change requires a continued process that evaluates and controls the business activity of the organisation. This includes assessing the competition and setting goals and strategies that fall on or above par with them. This strategy then needs to be regularly assessed to determine if it has been successful or whether a new strategy needs to be developed to meet ever changing circumstances, new technologies and new economic, social, financial or political environments.
This report highlights the cause of the problems that ultimately resulted in the failure of Royal Dutch/Shell to implement a successful strategic change. It also aims to provide a solution that will aid the organisation in realising their business objectives and goals.
The fundamental root cause problem within the Royal Dutch/Shell organisation can be surmised in the blatant lack of strategic management and direction. The organisation is clearly not focussed on its vision. There is no direction for