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The New Face of Leadership

By: Rekha BaluWed Dec 19, 2007 at 8:38 AM
Steve Miller marshaled a diverse group of Royal Dutch/Shell employees to transform the company's operations in Europe. Now, as president, chairman of the board, and CEO of Shell Oil Co., he is using that same grassroots approach to meet a new challenge: diversity itself.

And that leads to the third piece of Miller's strategy. Miller wants managers in the coming year to focus on developing a pipeline of candidates. That means leaders become talent developers or "sponsors," as well as business managers. They must train candidates and "open doors," so that nobody is denied a job for lack of preparation.

The incentive for managers? Compensation. If a manager isn't developing, hiring, or promoting enough candidates who are women, disabled, gay/lesbian, or ethnic minorities, it affects his performance review. Miller himself presents an annual report on diversity to his board of directors. "Although the wellspring of ideas is always at the grassroots, employees can't do it alone," Miller says. "That's why the link to senior management is important."

Of course, Miller realizes that each business within Shell sits at a different point along the diversity spectrum. Some businesses, such as Shell Legal Services, have won awards for their minority-development programs. Others are just starting to think about training. "I'm not worried," Miller says. "I'm concerned that we build momentum toward a diverse workforce, not that all Shell businesses arrive at the same point at an arbitrary time."

Shell Chemical Co.'s Diversity Scorecard:

As of January 1, 2000 As of January 1, 2001
82% men, 18% women
11% black, 82% white
4% Hispanic, 3% Asian-Pacific
80.7% men, 19.3% women
12.2% black, 79.2% white
5.5% Hispanic, 3% Asian-Pacific

Shell Oil Co.'s Diversity Scorecard:

As of January 1, 2000 As of January 1, 2001
73% men, 27% women
11% black, 80% white
5% Hispanic, 4% Asian-Pacific
74% men, 26% women
10.5% black, 79.7% white
5.8% Hispanic, 4% Asian-Pacific

The petroleum-refining industry: 7.2% women corporate officers (Source: Catalyst)

Shell Oil Co.: 18% women members of the Shell Oil Co. Executive Leadership Team

Rekha Balu (rbalu@fastcompany.com) is a Fast Company senior writer.

Read more on Royal Dutch/Shell: Grassroots Leadership and Updating the Agenda

April 2001

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