The Context

In 1990, Shell applied a collaborative improvement methodology in its North Sea oil drilling projects to improve performance and reduce costs. This methodology was part of a consulting approach called “Cooperation & Beyond” developed by consultants John Carlisle and Robert C. Parker.  It focused on changing the culture, improving cooperation, trust, and buyer-supplier relationships across the project supply chain.  It also aimed at reducing adversarial contracting and increasing productivity.

The Intervention‍

They set up 12 joint improvement teams who identified what the waste was at the interfaces and set up a drive to improve the interface relationships that were feeding the waste.

The Impact

This programme reduced costs by around 18% in six months. From a bench marked position of 14th in the North Sea, Shell went to No 1 in 1 year by involving its suppliers in a partnering initiative.  In one year, they reduced the project cost by 34%.  In the following year, they increased the number of drilling operations by 30% for the same operating costs.

This was the birth of Project Partnering, and John Carlisle Partnerships (laterJCP) was established as the primary consultancy in the UK for CollaborativeWorking.

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