Sources of Power in Leadership

The chairman of racing shell Australia, Russell Caplan, has had many careers since graduating from Melbourne University in 1968but all in wholeness company. close to recently, Caplan led the restructuring of the companys petroleum and chemical distribution and merchandise into a global business from late 2004. Shell Australias earn before interest and tax increased almost 70 per cent, to $1. 23 billion, in 2005 after reforms at Victorias Geelong and Sydneys Clyde refineries added to oil and gas production profits. But Caplan is facing a considerable foot race in helping Shells Gorgon gas joint-venture partners gain final exam approval from the WestAustralian Government for the project, after concerns were raised by the WA environmental Protection Agency. Here is what he utters In all of my time with Shell, the one constant is change. I say to my people, You had better take out used to it because thats the steering we work. The contribution I can make is to express things as simply and clearly as I can. People react positively if they are shown a clear way forwardit doesnt gift to be a new or profoundly brilliant way it just has to be clear. I find people collapse impediment with priority setting, so giving them some guidance makes it legitimate to concentrate on ome things more than others. When it comes to the challenges of depletion of natural resources and reducing emissions facing the oil industry, the for the first time thing is to recognise sustainable development as a central part of our philosophy. Triple-bottom-line reporting is real for us, non just talk. We would not be involved with the Gorgon project unless we could meet the social and environmental consequences too. I amaze personal targets associated with my remuneration. Triple-bottom-line reporting is embedded in our company, and that sometimes makes me a petty sharp with some people who wish to take he gaze that we are big industry and therefore we couldnt recognise those i ssues. I affirm been continually surprised and pleased by the opportunities that I have had at Shell, and many were not of my choosing. If I said, when I joined in 1968, I could have planned this, that would be fatuous. I think that you should have two principles. The first is do the best you can. It annoys me when people focus on what they are going to do next rather than what they are doing now. I am very attracted to someone who delivers a little more than they say they are going to deliver, a little faster and is very etermined to imitate at what they are currently doing. That is the greatest indicator of what they can do. You in any case need a sense of good and bad. If you want to be in a legitimate business, Shell is a good place to be. on that point is a lot of good in Shell its not perfect, but theres a lot of good and it gives you opportunities. In terms of my leadership style, I can think of a get of influences. I learned the importance of pushing yourself and doing the best you can do. I learnt from former Shell executive and Rio Tinto chairman Paul Skinner the reach of clarity, consistency and moderation.I have also learnt something remarkable from my wife that is, the ability to astound to core hold dears and express them simply. Finally, I am conscious of the occurrence that I have come back to Australia after ten days away, and it is critically important to my potentness as a leader to reconnect with the Australian community, because my role as a leader is to bridge outside and inside. You get very remote if you are living away and following Australia by Internet, as opposed to smelling the dustand seeing the pain of St Kilda losing. Russell Caplan face Chairman Organisation Shell AustraliaStaff 3200 Direct reports Four Time in position Four months Time in company 39 geezerhood Activities for discussion, analysis and further discussion 1 Would you consider Russell Caplan to be an effective leader? Why? What characteristics of eff ective leadership do you identify in him from the case material above? 2 What characteristics does he appear to value in subordinates who he believes will be promotable? 3 Would you be hustling to work for this manager? Why? Source Adapted from Tandukar, A. 2006, The good oil, agate line Review Weekly, John Fairfax Holdings Limited, 22 June, p. 44.