Royal Dutch Shell’s Journey to Strategic Competence Management

Abstract

Talent & Technology In 2001, Shell began globalization of competence management with the implementation of its SAP human resources information technology (IT) platform. Hoping to capitalize on this IT investment, Shell’s various disciplines and functions began enthusiastic efforts to create competence frameworks and job competency profiles that could be managed within a single repository. The following decade of organic growth resulted in a proliferation of competence frameworks that blanketed the organization. Complexity, inconsistency, and redundancy were some of the unintended consequences of leveraging a global IT platform without tightly managing the overarching competence management practices. When Shell reviewed its competence management infrastructure in early 2010, pockets of excellence surfaced. Unfortunately, for most areas the value of competence management was crumbling under the weight of overengineered deployments. Capturing large volumes of data on employees’ competencies was deceptively attractive and comforting to management as well as those in the organization tasked with managing workforce capability. However, these data did not necessarily translate to valid or reliable information at an aggregate level for a variety of reasons, most notably due to inconsistencies associated with assessments. As the repository grew, managing everchanging individual competence data proved cumbersome and problematic. Competence management was clearly presenting several challenges, tensions, and dilemmas. In short, leadership knew the approach was missing the mark against an increasingly dynamic internal and external environment.