CEP - Completely Effective Product?

CEP (Currently Estimated Potential) is Shell’s potential ranking tool. Job grades in Shell have SEG as most senior, then B, A, 1, 2 and downward through the numbers.

CEP is one of the things that makes Shell special. Invented fifty years ago, part of the folklore, written up in learned tomes. Loved and hated in equal measure.

When I started in 1982, CEP was probably the most important piece of data on the CV. I remember my HR planner, aka God, a lovely old chap called Guy Ackers, explaining the concept with emotion close to love. I remember my first boss solemnly informing me that, after enormous consideration, and based on all of 6 months experience of working me on some pretty mundane projects, that my first CEP was A stroke B. Ironic, that is my last CEP as well. But in the old days A stroke B didn't mean waht it does now - some nebulous broad territory covering A and B grades - but was pinpoint precision slightly better than A and slightly worse than B. How they could do that I have no idea. But, well done Guy, history shows they got it dead right! In the intervening years, my CEP has followed the Duke of York, marching all the way to the top of the hill, and all the way down again. That hasn't changed - if you are newish in Shell, expect your own CEP to follow that sort of path, and for good reason.

Pros and cons of CEP?

Pro is that it is honest with staff, giving people useful feedback about where they stand regarding their career and data they can use.

Pro is that it is a quality designed process, when applied well.m Trust me, I've applied it, it is good and fair, and nowadays not over-complex and no longer pretending to be so pinpoint.

Pro is that it is a great planning database for HR and leaders in managing the talent pool. Let's face it, other companies probably do a CEP type thing anyway, but on the quiet, therefore less well grounded and less honest with staff.

Cons of CEP?

Mainly these are where it misused or misunderstood. I don't buy the argument that it demotivates and drives people from the company. In my view the honesty point trumps that. I'm happy to work for a transparent company.

But misuse happens, maybe less than before but it is still there. Misuse comes in many forms.

I saw people given the royal blessing of a high CEP at 24, who became immune to criticism until they were 40, an elite unchallenged (and inevitably arrogant and delusional) class. That was the old way, with Netherlands the worst culprit in my experience. This should not happen now, where CEP's are ranges and where proper reviews occur each two years with lots of changes expected.

I saw people condemned to a second class life by a CEP given by unqualified snobs, for example based on someone not being a graduate. There are some glorious exceptions - I know one fabulous Dutchman who reached A from a start point of 6, with his CEP equal to his current job group every step of the way. Good on ya Simon. But for every Simon, there are probably 100 wasted talents. Why are the Dutch and Germans so obsessed with university qualifications?

I see bad panels, with cowardice (not ready to give a tough message) and bias bordering on discrimination. Not being bitter - the end result was perfect for me and probably right for the wrong reasons - where they downgraded me after a breakdown was a disgrace.

I see power of the process lost when managers don't take the trouble to really explore C, a and R and give developmental feedback to staff deriving from it.

I see stupidity in force fitting CEP's to people before there is evidence or they are ready to receive them.

And, most common, I see people misinterpreting a CEP and not given enough wisdom to draw the right conclusions.

On balance, the pros outweigh the cons, since it is potentially a good thing and we ought to be able to manage it properly to get rid of the cons.

Some advice if you are new in your career and fretting about your CEP.

First, ask for proper feedback, taking C A and R separately. Listen to it and act on it with respect. It is a gift. Ask to see the form with all the indicators on it - it is good stuff, you can learn from it.

Next, remember CEP's can and do change. I'm not sure it is in anyone's interest to have a CEP of SEG before they are 33 (even putting aside the argument that it is not really possible to make such an assessment with any confidence). It makes you arrogant. It creates a hostage to fortune. It makes managers suspicious of giving you a job. It sets you up for a fall later. There is plenty of time to get there, based on real evidence.

Try to avoid gossip and competition and comparison with your mates, especially early career. Most often, the reason one is higher than another is because they have been lucky with opportunity and/or smart managers to have been able to provide evidence. Be smart in choosing your jobs and your bosses and you will get your chance to provide evidence too.

Finally, don't sit there thinking that all employing managers have CEP high in their list of criteria when deciding whether to give you a job. In the old days it was, but not any more. It is at best aminor factor, something HR will intervene with occasionally to ensure good people get good opportunities. Managers will be swayed much more by your immediate fit for the job at hand.

Hope this helps you a bit.