Royal Dutchs Shell Dynamics

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Royal Dutchs Shell Dynamics Royal Dutch Shell (RDS) is the sixth largest company on the planet. It is made up of 1700 smaller companies and employs 101,000 people throughout the world. This is not a nimble start-up company that is attempting to create a brand new culture; this is a behemoth of a company, with over 100 years of history and a workforce that is literally global. The business in which RDS operates is primarily oil and natural gas, commodities that can fluctuate dramatically in market value by the minute. Systems thinkers in the 1970’s at Royal Dutch began to plan for many future scenarios, including a future where a barrel of oil would cost $15 (this, at a time when the value of a barrel of oil was $30 a barrel). This was a move in a positive direction. However, if RDS was to survive for another 100 years, then a new culture had to be born out of the old to enable it to adjust to these possible scenarios. In the 1990’s, Royal Dutch Shell began its transformation into a learning organization. There is now an emphasis on self-direction for every employee and a true commitment at all levels of viewing mistakes as learning models. Management has to allow the organizational systems and structures to be re-made, and then commit to the belief that everything is subject to re-examination. Phil Carroll, former CEO of U.S. Shell (SOC, the American arm of Royal Dutch Shell) believed in the importance of the servant-leader model of leadership. In the early 1990’s, when this new leadership model was introduced, it shook the foundations of a company that had known success for many years using a more traditional authoritarian model of leadership. He wanted to completely transform the company into an organization that could continue to expand, and make a profit doing so. The company needed to tap into the resource it had (and still does) right under its nose – its employees! Mr. Carroll wanted the culture of the company to be transformed into a model of self-directed leaders who share knowledge amongst each other, creating an environment of continuos improvement. According to the American Management Association “Phil Carroll has led Shell Oil Company toward a significant transformation of its corporate culture. It is comprised of a new vision, a new business model, a new system of governance, a new concept of leadership, and the use of learning... ... middle of paper ... ...o survive today (Scwartz, 1991, p. 44). What started out with futures planning at RDS has now become something much more. A major force behind the creation of a school of thought coined the learning organization; Royal Dutch Shell and U.S. Shell were successful in transforming themselves into competitive and effective enterprises. Their work is not done however, because the work of a learning organization is never done. It must continually improve and develop, and every employee in the company must commit to this, from the janitor to the CEO. Bibliography: Schwartz, Peter. The Art of the Long View. New York: Currency Doubleday, 1991 Kline, Peter and Saunders, Bernard. Ten Steps to a Learning Organization. 2nd ed. Arlington: Great Ocean Publishers, 1998. Pascale, Richard. (1998, April) Grassroots Leadership – Royal Dutch Shell. Fast Company, 14, 110-106 Brenneman, W. B., Keys, J. B., & Fulmer, R. M. (1998, Autumn). Learning across a living company: the Shell companies’ experience. Organizational Dynamics, 27(2), 61-70. Guyon, J. (1997, August 4). Why is the world’s most profitable company turning itself inside out? Fortune, 136(3), 120-125.

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