Mining momentum.
by Pellet, Jennifer
Meet Steve Harman, Shell Oil's go-to man when a division needs
to fuel growth. Harman grew up in Durham, a small mining village in the
U.K. Raised in a coal-mining family, he left school and entered the pits
at age 16. Two years later, Harman was back in class courtesy of a
program run by the National Coal Board. A subsequent university
scholarship to study geography and geology enabled him to leave coal
mining--but not coal mines--behind.
"Because they pay for your education, you basically sign your
life away," he explains. "So I made a 10-year commitment to
work with the Coal Board traveling all over the world and consulting on
mining developments."
Harman had bought out his contract and began working in sales when
he was recruited by Shell in 1984. In the 24 years he's been with
the multinational oil and gas company, he's run various divisions.
Most recently, however, his role has been start-up operations and
growing and globalizing mature businesses. Harman ran Shell's
Marine Products business as CEO, then went on to help architect and lead
the globalizations of Shell's Liquefied Petroleum Gas, Marine and
Lubricants businesses.
In January 2006, Shell tapped Harman to lead Houston, Tex.-based
Shell Lubricants, Americas, a division that encompasses operations in 17
countries in North and South America. Were it a stand-alone operation,
Shell's global lubricants business would rank it among the Fortune
250, with the markets under Harman's domain accounting for more
than 50 percent of its revenues.
Harman's mission? To leverage the company's strong share
of market and brand recognition in driving growth in a market
that's declining as consumers drive less and drive differently in
response to rising oil prices.
[ILLUSTRATION OMITTED]
"We spent a lot of time looking at what we call our
'growth bets'--in other words, where we can provide more value
than anybody else," says Harman. The U.S. lubricants market, for
example, is very fragmented, with hundreds of competitors vying for
customer attention. Shell's strengths included brand recognition of
Pennzoil Quaker State, which it purchased in 2002; a significant sales
and distribution network, and a sizable investment and research arm.
But those pluses come with a flip side. "One of the challenges
of running a big company is you can drift toward being too internal,
towards bureaucratic dinosaur-type stuff," notes Harman, who
introduced a "Sales First" program to combat that tendency.
"It's essentially a behavioral program to encourage leaders
and staff to look for external opportunities for growth, to go out and
get to know their top customers and top prospects personally."
All too often, that's the sort of thing companies pay lip
service to but don't actually carry out effectively, he points out.
"When a [branch] knows the CEO is coming around, they clean their
offices and make sure to visit a tame customer," says Harman, who
meets regularly with regional staffers for "sandwich" lunches
and to tag along on customer calls. "I spend about 60 to 70 percent
of my time in the field meeting with staff and customers. Building and
maintaining these partnerships with distributors and customers is like a
marriage. Sometimes you have to back up and just say, 'How's
it going?'"
In addition to guiding Shell toward a more customer-focused
culture, Harman is steering the company toward product innovations.
Already, Shell's fully synthetic motor oils have gained momentum,
with Pennzoil Platinum the fastest growing product in that segment and Q
HorsePower winning approval for use in Ferrari and Maserati vehicles.
Shell also launched Rotella-T, a diesel fuel product, and its recently
launched Rain-X wiper blades quickly became the company's top brand
in the car-care business. More innovations--including entries in the new
energy and renewables arena--are under way, with time horizons ranging
from two to 20 years out.
"We're working on a whole range of technologies in the
new energies and renewables space," Harman notes. "A world
less dependent on oil represents a whole suite of opportunities around
new products."
In the meantime, his early efforts have already born fruit. Under
Harman's tenure Shell Lubricants Americas strengthened its No. 1
position in the U.S. and achieved customer recognition from major
customers, including a vendor of the year award from Tractor Supply and
a Supplier of the Quarter award from Wal-Mart.
"We've won many good pieces of business over the last
couple of years and external recognition," says Harman.
"I'm delighted with where we are, but I'm never
complacent. I'm never relaxed. We're on a journey and
that's got to be sustainable."
COPYRIGHT 2008 Chief Executive
Publishing Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
Copyright 2008 Gale, Cengage Learning. All rights
reserved. Gale Group is a Thomson Corporation Company.
NOTE: All illustrations and photos have been removed from this article.