With operations in more than 180 countries and 47,000 employees, a key challenge for ChevronTexaco is to create common strategies and practices that work across the globe.
IT plays a vital role in connecting these global outposts and businesses, and was particularly important when, in 2001, Chevron and Texaco joined forces to create the US’ second largest oil company. Using the experience of this merger meant that when Unocal was taken over last year, ChevronTexaco was confident that integrating it into the fold would not be a problem.
“We have very strong integration capabilities...
and intend to combine operations and achieve synergies quickly”
– David O’Reilly, CEO, ChevronTexaco
“We have very strong integration capabilities following the merger of Chevron and Texaco and intend to combine operations and achieve synergies quickly and efficiently,” chairman and CEO David O’Reilly said when the deal was announced. “At the same time, we remain strongly focused on enhancing our existing base business and increasing global production through development of our strong queue of capital projects.” A few years ago, the company embarked on a major global realignment programme to create a platform of fewer, more standard systems supporting common business processes. IT is centralised where possible to save money, yet the company tries not to impose too rigid a structure. Each operation is given the flexibility to respond to market opportunities in their region.
With such a widespread workforce and operations, any global project is going to be mammoth. It took 500 people two years to complete the company’s NetReady initiative to re-architect its desktop, network and server infrastructure, which linked 50,000 desktops and 1,800 buildings. But the effort has paid dividends. Having the global information link (GIL) and standard networks and desktops means that teams can concentrate on getting the job done unhampered by distance, helped by using corporate tools such as instant messaging and NetMeeting.
Another strand of its global IT management strategy is Everest, a business-focused IT programme that aims to align IT and corporate priorities. So instead of individual business units going ahead with individual investments, ChevronTexaco hopes that Everest will coordinate how these initiatives are undertaken across the organisation.