Shell Downstream One Change Program Case Study

The system will be able to simplify major operations such as employee human resource management by providing an online human resource management platform. Moreover,the ERP system will provide a convenient resource sharing center for the company since all company resources shall be shared through the ERP system. Therefore,the system shall provide easy reference incase of decision making since the system will be synchronized with decision support system. Moreover,the system shall be able to process payrolls, invoices while keeping all the company data. This change proposal contains the necessary steps that shall be taken to ensure complete implementation of the downstream-one change program while outlining the necessary stake holders who shall take part in the change process. Nevertheless, the system is prove to be effective and it has numerous advantages hence emerging the best solutions for managerial limitations at Shell.

Furthermore, the proposal includes the necessary strategies to be followed in the implementation process. The change program outlined in this proposal is designated to the Chief Executive Officer of Shell, Ben Van Beurden to spearhead and monitor the change process. 2 Scope of Work The objective of this proposal is to recommend the necessary change strategies which are instrumental for the implementation of Shell change program. The Implementation of the proposed enterprise resource planning system (ERP) will ensure effective integration and co-ordination of all managerial and operational functions for Shell Company globally. Therefore,decision making and co-ordination of organization processes and programs globally will be made easier. Major cause of delay in information flow is basically lack of an effective and efficient system of communication4.

Nevertheless,the ERP system offers the best solution because it brings different sources of information together while creating an efficient information sharing center for the organization. Furthermore,quality of decision making with different department and subsidiaries of Shell company will be improved by creating a comparison and reference platform because all ideas are shared within the ERP platform. Furthermre,the change program will serve a major source of motivation for the employees because of the shared working environment created by the ERP processes. Therefore, the management will have to brain storm and visualize the potential managerial and operational risks which are likely to interfere with the operation of Shell6. One major risk is likelihood of high wage bill which could interfere with the revenue generation for Shell due to high cost of wage bill.

Therefore, elimination of unnecessary processes which might be handled by systems will be effected through the implementation of an efficient enterprise resource planning system7. The second risk which may likely affect the operation of Shell is managerial inefficiencies due to business complexities as Shell continues to expand to new market territories. Similarly such problem will be eliminated by the implementation an ERP System because it shall co-ordinate all the major functions of management hence eliminating any cases of managerial inefficiencies. The fourth step of the change implementation of the ERP system at Shell shall be the communication of the change objective to the stakeholders. The change implementation department must be patient and willing to inform and explain their vision clearly to all the stakeholders in Shell11.

The communication must cover the potential impact of the change implementation to employees and shareholders by explain the effect of the change to the revenue streams of the company which affects the interest of shareholders directly. Furtherrmore,the orientation process on how to use the system should be addressed in order to prepare the employees psychology because they have a critical role in the implementation of the change program. Moreover,employees should be explained how the implementation of the system shall interfere with their individual performance in the organization. Seven step which Kotter refers as consolidating gains, is basically consolidating different success factors before moving to the final stage of change implementation. At this stage, the change management consolidates are necessary resources and support teams which are critical for the implementation of the change program14.

For the case of Shell change implementation team, the company will need to secure sufficient ERP system management teams to consistently stress test the system to evaluate its suitability before rollout of the system in the whole organization. The last step of the change implementation will be the full implementation of the ERP system in the Shell and orienting all the employees and relevant technical personnel on the Usage of the system. Furthermore,Shell shall ensure continuous relationship with the ERP system provider for at least a period of five years after the system launch to be able get immediate technical assistance in case of any system issues. First model is the leadership change model. The leadership of Shell will undergo massive change because the CEO will not need massive leadership support as it was the case before the implementation of the ERP system15.

Therefore, the CEO will be able to issue any instructions directly to a particular department without necessary passing through other channels of communication due to the simplicity created by the implementation of an ERP system change program. The second change model is the management model. The management structure of Shell will also undergo massive change because the senior managers will be able to monitor the operations directly through the use of ERP system16. Strengths and Limitations The change process at Shell indicates massive strengths. First of all, the change process is well coordinated by the CEO of Shell who serves as the chairman of the change implementation committee. Secondly, the change is implemented step by step evaluating any necessary corrections which need to be made at every step in the implementation process19.