Thread regarding Chevron Corp. layoffs

Why centralization doomed to fail?

This centralization will eventually fail. The centralized teams aren’t built from the BUs, and most of the people there lack the capability and experience to understand how things actually get executed in a business unit — let alone run a business. Many of them have stayed in the center since they were university hires and have never worked in a BU. They have no idea how to deal with real business realities or how to actually drive a project.

In the past, they could claim that they contributed significant impacts to multiple projects and BUs to justify their PSG levels. However, their actual contributions within the BUs were largely unverified — many BU results could have been delivered even without their involvement. As a result, their impact has been largely inflated.


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| 3961 views | | 12 replies (last November 14) | Reply
Post ID: @OP+1k9k50tnz

12 replies (most recent on top)

@dj You mean biggest "winner".

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Post ID: @14f+1k9k50tnz

@n6 who moved my cheese?!

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Post ID: @r4+1k9k50tnz

They will use contractors to fill in the gaps. If you want to continue in the O&G industry, then get with a major design firm. Once this fiasco is over, Chevron will be looking for someone to step forward and help out. You won't be allowed a career but you'll have a job.

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Post ID: @qh+1k9k50tnz

@n6 Only someone at the GM level or higher could be this heartless.

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Post ID: @nc+1k9k50tnz

All i am hearing is a whinning employee. Change is constant, get onboard or get out.

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Post ID: @n6+1k9k50tnz

Centralize, decentralize, wash and repeat. Every company has been doing this for decades. Soon, everyone in Houston will be deemed useless and disposed of and everyone in the oil and gas industry knows you have have to stay close to the well head to survive. Nobody in the field is going to take any direction from a centralized anything unless it's to let them fail. Central or Center folks are on borrowed time.

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Post ID: @jd+1k9k50tnz

@dv In this case, the junior engineer who actually spends significant time doing real work isn’t getting recognized, because you have to follow “the Chevron way” to get promoted. As a result, they only receive an additional 2% pay increase, while the centers continue to enjoy higher PSGs by claiming work that could have been done much faster and has limited relevance to the BUs.

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Post ID: @h7+1k9k50tnz

Centralization where? Houston or some other center? Chevron has some talented operations people that will retire or be layed off in 3 years. How will it concentrate institutional knowledge if it’s not sending people on overseas and field assignments. How will ENGINE improve or challenge this knowledge transfer?

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Post ID: @ee+1k9k50tnz

@dv or another scenario. There are far more experienced and competent green badges around locally, and "help" from the center is viewed for what it is - unhelpful

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Post ID: @e4+1k9k50tnz

My experience so far:

A BU requests engineering support. DM&C takes an eternity to prioritize the request and ultimately decides that it's not worth their time versus other priorities. The BU sees that ENGINE isn't adequate for the job and TPE wants a charge code which the BU won't pay. Therefore, the overloaded junior engineer at the BU ends up on his own to do the work.

The priorities of a BU aren't the priorities of the central organization and will never be fast or responsive enough in urgent matters. That is where centralization will fail.

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Post ID: @dv+1k9k50tnz

@ct What do expect when the leader of your country is the biggest whinner of them all. All the red hats copy him.

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Post ID: @dj+1k9k50tnz

That’s absolutely right. In many cases, center people are added to projects mainly to demonstrate the “partnership” between the center and the BUs, but their actual involvement is very limited. As a result of this centralization, these people now stand alone in the centralized team and are unable to deliver what they are asked for. The BUs end up delivering the projects with fewer people, while the center has more people who don’t know how to get things done.

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Post ID: @a1+1k9k50tnz

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