Table of Contents
PROBLEM CAUSE IDENTIFICATION
Strategic Management and Direction
Absence of Programme Management
Absence of Total Quality Management
Poor HR functioning
Lack of Policies and Procedures
Absence of Risk Management
Using the Balanced Score Card (BSC)
INTRODUCING THE CHIEF PROGRAMME OFFICE
PORTFOLIO OF STRATEGIC TRANSFORMATION
BECOME A LEARNING ORGANISATION.
REVIEW AND APPRAISAL
APPENDIX A – MATRIX ORGANISATION STRUCTURE
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 growth, pointed out by its lack of trading shares and diminished interest in expansion or mergers. The organisation structure attributes to many of it inefficiencies, specifically related to risk management, effective communication and effective leadership. As pointed out in the case, there is a lack of accountability and responsibility and executives have never been held accountable for poor management and decisions. To steer the organisation in a direction of achieving strategic benefit, there is a need for introducing a matrix project structure, with a programme office reporting directly to a CPO. An external portfolio office for managing strategic transformation needs to be set up using the BSPM concept, as proposed by Steyn. Once this is realised, this office will disintegrate and a portfolio of projects for continuous improvement will continue to focus on company growth through the process of becoming a Learning Organisation. The change incorporated by this process will require significant change and this can be addressed using Lewin’s Change model, as proposed. The problem of poor leadership and trust exists within management, and this attributed directly to the absence of a value system (TQM). This can be addressed by leadership development programmes, EQ training, performance management and appraisals. HR does not seem to be playing their role in talent development and appraisals. This operational issue needs to be addressed by either implementing processes or enforcing policies that are already available. Appropriate measures and controls must be set up to ensure these processes are implemented and maintained. The structure of the organisation, together with its dysfunctional behaviour does not provide a medium conducive to team cohesion and effective communication. This was identified in the inaccurate reports submitted to shareholders and investors. These problem areas are addressed by the establishment of the programme office which intends to manage by...
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