The operating model expresses the direction being followed by Shell Chemicals in delivering bulk petrochemicals to large industrial customers, through standardised global processes and at the lowest possible total cost. With sustainable development (SD) at its heart, the model also emphasises the need for adherence to SD principles in all business areas.
Within the operating model there are both 'threshold' and 'differentiating' factors. Getting the threshold factors right is essential if the competitive positions of the Shell chemicals companies in the petrochemical sector are to be secured. So, for example, the portfolio of businesses has to be balanced in line with the goal of delivering bulk petrochemicals. Each of the businesses in the portfolio also has to operate to world scale and so capture the resultant economies of scale. Additionally, there is a strong focus on working with the right cost structures, an imperative that has led to substantial cost reductions in recent years.
But being equipped simply to stay in the game is not enough and so there is a complementary emphasis on the differentiating factors, those that set Shell Chemicals apart from the competition. These differentiators include building strong customer relationships and offering customers the products, services and ease of doing business that fits their needs.
Adopting standard global processes is also essential to ensure quick decisions and clear accountabilities. But without the right people, the right processes will never ensure success and so there is an underlying emphasis on building the 'attributes' and 'behaviours' among all Shell chemicals companies employees that will collectively enable us to win.
Read more about how the operating model drives specific strategies
