My Room 101

In the UK, there is a popular TV programme called Room 101, where people are asked what they would like to consign to a dark room forever. I’ve had a go at it from a Shell perspective. See what you make of my list. If you like it you can use it as a bullshit bingo card, or count how many times you catch yourself using an item. What would you consign to your own Room 101?
My number one item is Intellectual Property. It makes sense to protect valuable assets, even Apple does that, but I’ve found discussions around IP in Shell on balance to be destructive. People focused on protecting the past find it harder to innovate. The tendency can become to value the store cupboard of patents over the customer need served or money earned. Via a metaphor, I blogged on this in “Once upon a time” in January 2008, and I’m still as suspicious.
Number two is the word Alignment. This first became standard business vocabulary in the late 1990’s, the same time as granularity (where did that come from?), and it has mushroomed since. I find it is usually a weasel word. When I hear “we are aligned” what is too often really being said is “we will do what we want anyway and have agreed not to fight about it” or “we disagree but are too bored to try to agree so will just pretend” or simply “please leave us alone” or “I’ve done my bit, boss, will this do?”
Number three is a denial of cost competitiveness epitomized by phrases like “we will always be expensive”. Who says? In the long run, uncompetitive equals dead. In retail pie charts segmented customer into price quality buyers, with price buyers beneath our consideration. But we didn’t provide any real quality, so the price buyer segment grew year on year and our business shrank. Then others use their cost advantage to offer more quality and the cycle reinforces. The mindset is endemic in Shell and is poisonous, not just in marketing. It really says “I am overpaid and lazy”.
Number four is the concept of Must Win. So what, exactly, happens if we don’t? Not much, really. It is conceivable that Holland’s third match in the world cup could be “must win”. In business terms, it is hardly ever so clear cut. And managers using the concept become so scared of losing that they define the so called must win so generally that they can later claim success whatever the outcome.
Number five is the overuse of the Industry, and Joint Industry Projects. This is another Shell disease, and a clear difference with Exxon. Partly this is as an avoidance of anti-competitive temptation, but there is more to it. Winners think of serving customers, market share and beating competitors, losers tend to think of margin structures and industry conditions. Choose a sound market and be the most competitive player and in the long run you will prevail. Furthermore, people who think industry often fail to spot threats from outside the cozy establishment.
Number six is accountability. A lack of any sense of accountability or supporting structure is bad. But in my experience to be accountable tends to be one of those irregular verbs. I am accountable means I expect obedience and all the resources I demand. You are accountable means I will blame you when it goes wrong, and he is accountable means to he should be fired. Not all that helpful, really.
Number seven is the word portfolio. Listen to the people who use it. Often it is used to excuse a poor operating performance. Or by people who consider our business a game of battleships played with other majors, and again underplay operational excellence or non-traditional competition. Oh yes, and people who want to make their job sound grander than it really is.
Number eight is the teleconference. How could we live without it, with our virtual teams and fast paced agendas? It would be tough, but I claim that overall I’ve hated and wasted more time on telecons than the value I’ve gained from them. At least set a strict time limit of 45 minutes and the banning of regular telecons like weekly team meetings. Both become lazy too easily and waste time, as well as being a poor substitute for authentic communication.
Number nine is the concept of non-technical risk. Inevitably this term is used by technical people who believe all interesting things in the world are technical and who resent that other things matter as well. Hence they usually fail to give due attention to such matters, display arrogance when the customer insists on considering them, and explain our ultimate failure to win a deal as bad luck, uncontrollable circumstances or someone else’s fault. Treat technical as one category among many please.
Number ten is complexity. I’m not a great believer in simplicity as a goal, since it drives the business towards commoditization. Genuine complexity in business provides potential to add value and differentiate. However, complexity as a mindset becomes self fulfilling. Most things can be simpler than we believe if we try to make it so. Starting from the customer, most businesses are pretty simple really. Complexity is a weak and overused excuse for uncompetitiveness.
So there are my ten. In my opinion, Shell would be a stronger company if each of these were consigned to room 101. But then I’m on my way rapidly to room 101 myself, so you can just ignore these and come up with your own list.