"This reorganization is all about a simpler structure, more accountability and faster implementation [image-nocss] of decisions and strategy," he said. "This is a step change for Shell. This will create a platform that should have fewer staff and less complexity. Thousands of staff will be impacted. The organization will be more focused, simpler, more cost-efficient, and decision-making will be faster."
Peter Voser will succeed Jeroen van der Veer as CEO on July 1. "Senior roles will be filled by July 1. From there, we fill roles progressively, and new organization will be up-and-running by year end," said Wiggins.
Shell's upstream activities are currently managed in three separate organizations: Exploration & Production, Gas & Power and Oil Sands. Upstream will now consist of two businesses: Upstream Americas covering North and South America and Upstream International covering the rest of the world. Marvin Odum, currently Shell's executive vice president for EP Americas, will become director for Upstream Americas. Malcolm Brinded, currently Shell's executive director for E&P, will become executive director of Upstream International.
There will also be changes in downstream. In addition to the Refining, Marketing & Chemicals businesses, the downstream portfolio will be expanded to include Trading and Alternative Energy activities in Shell, excluding Wind, which will be part of Upstream. Downstream will continue to be led by Mark Williams as director.
A new business, Projects & Technology, will combine all of Shell's major project delivery, technical services and technology capability covering both upstream and downstream. It will also oversee Shell's safety and environment performance. Matthias Bichsel, who is currently Shell's executive vice president for E&P Technology, will be the director of this business.
Corporate functions will be refocused, with activities reallocated directly into the businesses or consolidated into the portfolios of the CFO, Simon Henry, and the human resources director (to be re-titled chief human resources and corporate officer), Hugh Mitchell. Beat Hess continues as general council, and completes the reshaped Executive Committee.
"This new structure will increase accountability in the company and improve Shell's performance on delivering new projects and developing new technologies," said Voser. These changes will increase our focus, accelerate our plans to reduce complexity, corporate overheads and costs and result in faster decision-making and delivery."
Added van der Veer: "We have made good progress on simplification and improving efficiency in recent years, but the competition is not standing still, and neither is Shell. The industry, and Shell, faces considerable challenges, from high costs, volatile energy prices and competition for new projects. We must build on our recent momentum, improve our operating performance and increase the pace of strategy execution, to raise our competitive position. The changes we have announced will have a major impact on the organization. We will speed up our decision-making, and increase both personal responsibility and personal accountability."
"Jeroen has pushed hard on simplifying Shell, and creating a more commercial and delivery-focused culture. Peter Voser is picking up on that, and pushing forward into the next stage," Wiggins said.
Following this reorganization, the Executive Committee of Shell will comprise Voser, Henry, Brinded, Odum, Williams, Bichsel, Mitchell and Hess. Roxanne Decyk, currently Shell's corporate affairs and sustainable development director, will step down from the Executive Committee and will head up Shell's government affairs department based in Washington, reporting to the CEO. Three Executive Committee members will be on the Board: CEO, CFO and executive director Upstream International.
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