Global Facilities Management Platform
An Introduction
Real Estate & GFPT CP
September 2013
CONFIDENTIAL
1
Real Estate – Providing a Great Place to work, rest & play
Who are Shell? Global group of energy and petrochemicals
companies with 90k employees in more than 70 countries and
territories. We use advanced technologies and take an innovative
approach to help build a sustainable energy future.
Real Estate : Real Estate’s role is to manage the Group’s property
portfolio and non-hydrocarbon infrastructure (beyond offices).
Facilities Management : Deliver a fit-for-purpose working
environment and related services, driving functional excellence in
strategy, standards and tools for non-hydrocarbon infrastructure.
Procurement Strategy : Develop a global strategy/platform, local
application and sensitivity
Scope of Global Re-Tender
Contract Value : $500m spend per year, $3.5bn Contract Value (5+2 Years)
Services in Scope : Hard Services, Soft Services, Minor Projects and Asset
Protection (Security)
Geographies Covered in RFP : 30+ Countries in Scope, 20x Bid Lots
Sourcing Approach : Let the market drive optimal outcome and level of
supplier consolidation
Process : Intensive RFI, yellow-pad and dialogue sessions to really
understand competency, coverage and capability and build relationships.
Competitive RFP process with Technical and Commercial evaluation.
Technical team composition drives buy-in of staff
Governance : Secured commitment from Upstream, Downstream and
Projects/Technology via robust governance and Stage Gate process with
Decision Review Board (DRB) and commercial review at Shell Group
Contracts Board (GCB) to drive group wide visibility of strategy
Vision & Objectives for 2nd Gen RFP
Global Vision
Appropriate Segmentation
linking to business drivers
Move from Proving,
Proving to Partnering
Engage the Market
Interdependencies
Benefits Delivered
Savings Delivery : Double digit % value improvement over
prior year costs with savings glide path over years 2-5.
Service Providers : New framework suppliers complement
existing 1st Gen providers. 50%+ re-distribution of wallet
Standards : Global set of output specifications (OLAs)
Common Tools and Process : Tools, processes and
organisation in Real Estate support implementation and
stabilization of the new contracts.
Local Content : Global strategy but with local sensitivity and
content (US, Canada, Middle East, Africa).
Worker Welfare : Social Performance, Employee Value
Proposition fully considered in complex/remote/camp
locations.
Aspiration to achieve transformational Change - Program
Change Team : Appointed with PMO.
Mobilization SharePoint and Tracker created
Focus : Go-Live Ready and Stabilize Contracts
Training Programme : Training program devised
to support the change process. Key components
are :

Module 1: Collaboration Workshop. Full day face to face
session including the team leaders from both Shell RE and
their Suppliers. Aim to instil the right collaboration
behaviours, stress test behaviour in safe environment

Module 2: Ethics & Compliance & OLAs. Dial in session,
repeated on a monthly basis throughout the mobilisation
period. Open to both Shell RE and suppliers

Module 3: Technical and Commercial elements of GFMP.
Dial-in session which open to both Shell RE and suppliers
Communications : Internal & External
Next Generation Challenges
Extract Value Beyond Price : How to get more from
strategic relationships with service providers?
 Shared
Savings Incentive Scheme following early delivery
of the whole-life cost down commitments
 Invest
in better governance and line of sight within global
relationships
 Develop
Eco-System thinking within pool of global
framework agreement suppliers
 Drive
CI (Continuous Improvement) agenda much harder
bottom up and top-down
Growth & Complex Ventures
 Help
service providers grow their business with Shell
 Offer
a workable solution to Joint Ventures to allow
adoption of strategy (global strategy, local execution)
Real Estate Operating Principles
Performance : Service delivery aligned to operational business needs.
Clear measurement, structured review, aligned reward
Real Estate Focus : RE interpret business needs and manage group’s Real
Estate portfolio. Suppliers manage operational detail
Real Estate – Organisational Methodology (FMOM)
Shell Business : Needs Real Estate to manage
the business & supplier interface. Single line
of sight / entry for business. RE positioned as
a professional function, not service provider
Organisational Design : Real Estate site
management roles involved in the
strategic/tactical management of buildings
only. Not operational issues.
Empowered Suppliers : Clear roles and
accountabilities supported by strong
foundation (behaviours, relationships, tools
and processes)
Shell Site Roles : Understand business needs,
activity planning, liaison with supplier
managers, measure performance and
provide targeted assurance.
Regional HSE
Advisor
Territory
Manager
Regional AP
Manager
Site Manager
HSE
Specialist
(large sites)
Site FM Roles
RE Site team
AP
Manager
(key sites)
Real Estate – How Work Gets Done (REPM)
Way Work Gets Done : Common design
principles on the way work gets done in Shell
covered by a standard Real Estate Process
Model which covers FM delivery
Process Guidance : Defined processes in
place to confirm how work gets executed by
Service Providers and Shell staff
Process Owners : Critical control points built
into process design.
Optimise Group
Real Estate
Define Site
Services
Agreement
Manage
Construction and
Refurbishment
Manage Real
Estate Deals
Manage
Site
Services
Manage
Building
Integrity
Manage
Site
Security
Review performance
Manage Site
Services
Define Site
Services
Agreement
On boarding
- Services
- Organisation
- Contracts
Manage Site
Security
Manage
Building
Integrity
Review performance
Real Estate – How Work Gets Done (Planon)
Planon : Integrated Workplace Management
System (IWMS) selected by Real Estate as the
single global standard platform.
Usage : 100,000 Shell staff and contractors
have access. 20x standard requests, 40k
service requests are managed each month.
Functionality : Modules configured in the
Shell implementation to directly support Real
Estate Process Model.
Purpose : Visibility of activities carried out by
service providers at operational level,
enabling Shell to remain in control of building
integrity and service performance and to
carry out assurance and contract
management activities.