Financial Times: Shellshocked: “The first necessity for making deep-seated cultural change is realising that you really need to do so, and the message certainly seems to be getting through to the leadership of Royal Dutch/Shell.” (ShellNews.net) 16 Dec 04

By Martin Dickson

Published: December 16 2004

The first necessity for making deep-seated cultural change is realising that you really need to do so, and the message certainly seems to be getting through to the leadership of Royal Dutch/Shell.

In a strongly worded address to senior managers, Jeroen van der Veer, chief executive, has admitted that his "head is on the block" unless the company gets to grips by the end of the year with the way in which it books its oil and gas reserves. He also said he was "steaming inside" about the slow progress in changing Shell's culture after its reserves scandal and admitted that middle management had lost faith in the leadership.

Coming on top of the company's plans to dismantle its 100-year old corporate structure and create a unified board, the speech strikes a very different note from the arrogant, complacent Shell of old. But you can only change cultures slowly, and with a great deal of leadership by example. Mr Van der Veer, as he himself seems to acknowledge, has a great deal still to do.