Shell refuels global IT model

by Paul Tate

February 8, 2001 —

ALAN MATULA, GROUP CIO FOR ROYAL DUTCH SHELL, is developing a new model for governing a widely dispersed global IT enterprise. How dispersed? Matula supervises around 5,000 IT staff members who support Shell's 100,000 employees in 130 countries. Raised in Indiana, Matula moved to Shell's Holland headquarters in July after working his way up the company's management ladder for the past 18 years. Originally a business planner with an MBA and a degree in quantitative business analysis, he brings a business perspective to IT management.

Q: What is a global IT governance model?

A: An effective model makes some conscious choices about what IT segments the CIOs actually want and don't want to drive globally, in terms of critical corporate IT services.

You can drive a global strategy across 75 percent to 80 percent of the company, but there's about 20 percent where we're just forced to be a hell of a lot more flexible, because of the local cost structure, the ability to get local staff, the state of the telecommunications environment, or even the state of the country and the government.

We're working on a tiered governance structure that allows us not only to set some standards and make things stick from the top down, but also to engage with the right level of leadership across Shell. It's a brand-new model, and we're really hoping it will help push us in the future.

Q: How much will change in Shell's IT department?

A: IT governance follows business governance. Our country-based model is changing very rapidly into a business model with four key lines of business.

We also recognized that there are two pieces of an effective IT strategy. First there's the "what," or the "content," which drives the business needs at any given planning period. Then there's the piece of strategy about how to execute IT. And you need both. And both have a global and local component.

Everyone wants to get to a global model, but you can only go as fast as the business governance will allow you. There's a lot of legacy around that operates on a local or company basis.

Q: How does the shift in the business model and the IT governance model affect the CIO role?

A: We are strengthening the group CIO function. To be effective globally, you need key standards and services. To make that approach stick, you need a stronger CIO role.

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