Dirk Verburg

Twenty years ago, in 2004, Shell was hit by the reserves scandal. In the midst of this crisis, the board asked Jeroen van der Veer to become CEO and navigate the company out of this crisis. Recently Jeroen wrote a book titled ‘Van A near B – Lessen in leiderschap’ (‘From A to B – Lessons in Leadership’), in which he reflects on these, and other experiences during his long career (which also included for instance being the chairman of the supervisory board of ING during the financial crisis).

In this episode of the Leadership 2.0 podcast, I discuss with Jeroen:

1️⃣ How his leadership style evolved in the 40 + years of his career in Shell

2️⃣ Which authors in the area of management and leadership inspired him

3️⃣ Why the board asked him to become CEO to navigate Shell out of the reserves crisis.

4️⃣ How he personally experienced his appointment at that time

5️⃣ How he established his plan to move Shell out of this crisis

6️⃣ His top team in Shell during his five years as CEO

7️⃣ Decision he regrets

8️⃣ The three leadership lessons in his book ‘From A to B – Lessons in Leadership’

9️⃣ The different world graduates face nowadays

🔟 Final thoughts

You can watch or listen to the podcast with our conversation on:

➡️ YouTube

➡️ Apple Podcasts

➡️ Spotify

➡️ No time to watch or listen to podcast now? Here is a short summary of our conversation ⤵

Dirk Verburg: Jeroen, thank you so much for joining the podcast. My first question is: how did your leadership style evolve during your career at Shell? Did you do more or less of certain things over time?

Jeroen van der Veer: My leadership style evolved. When I was a project manager, I was very direct. You have to be, as a project manager is not a democracy. Over time, I went more to the leadership of a firm, where you empower people. The most important thing I learned was to stop thinking in terms of management and to start thinking in terms of leadership. This means understanding that people look at you and the way you behave. The second is to understand the strengths and weaknesses of your company and to lead from there, using a model like Michael Porter’s. My core idea was to go from management to leadership.

Dirk Verburg: In 2004, a number of senior leaders at Shell were asked to resign. The board trusted in you, a Shell veteran, to lead the company. What was the rationale of the board to ask you to lead the company in the midst of this reserves crisis?

Jeroen van der Veer: The board knew me, and I knew the board. I was the number two at the time. When a crisis happens, the board wants somebody from the inside who knows the culture and knows the behaviors of the company. It was a very emotional moment for me. On one hand, I was being asked to lead the company, which was an honor. On the other hand, the crisis was very severe, with the company’s reputation, stock price, and employee morale at stake. I was very concerned about these things, but I felt it was an opportunity to implement change. I was asked to lead the company out of the crisis, and I knew the board had faith that I was the right person for that.

Dirk Verburg: The reserves crisis was very complicated. There was a lack of trust from the financial world, and Shell’s reputation with national governments had to be restored. How did you analyze the situation and come up with a plan to address all these challenges?

Jeroen van der Veer: When you face a crisis, you have to focus on the basics and communicate simply and straight. When I took over, Shell’s previous strategy had 16 points. We changed that to “more upstream and profitable downstream.” This simple message resonated with everyone. We also focused on communication. I wrote a weekly one-page letter to all staff to explain the situation, which was translated into different languages. I also visited as many stakeholders as possible, including ministers and heads of state, to explain the situation. The other thing is that you have a top team, and you have to work together. Many people say it is lonely at the top, but I found that very strange. The team is much stronger than an individual who feels lonely.

Dirk Verburg: The top team that you assembled was an exception in Shell’s history, with constant stability and continuity. What were the common characteristics of the people on this team?

Jeroen van der Veer: The common characteristics were that everyone had a strong personality and was a team player. They put the company first, paraphrasing John F. Kennedy. It was “What can I do for Shell?” not “What can Shell do for me?” We focused on solving problems and delivering results. My team was not interested in endless debates about the long-term strategy, but in taking action. Their self-confidence was so strong that they were not afraid to help me, as the CEO, by giving their perspective. They had a feeling that the company had a crisis and that they had to restore it, and this joint experience brought them together.

Dirk Verburg: In your career, you’ve seen a number of successful and unsuccessful projects. You mention that many of the good lessons are learned from the bad ones. What were some of these lessons?

Jeroen van der Veer: The biggest lesson I learned from unsuccessful projects is the danger of being very optimistic. I recognized a pattern: we had an idea that something was not going well, but we decided to give it another chance. We should have stopped these projects earlier. It is better for the company and the people involved to stop a project that is not going to be successful. You have to ask yourself, is the rest of the company strong enough to support this? Why do we need this particular project in the first place? It’s about being more realistic and less optimistic.

Dirk Verburg: In your book, “A to B,” you describe three basic principles for leadership: A to B, simplification (ESSA), and leaders as leaders. Can you briefly explain these principles?

Jeroen van der Veer: The A to B principle is about focusing on the present situation (A), making clear what needs to change, and defining a clear and aspirational future (B) for the company. Then, you involve people to help get the company from A to B. The second principle is ESSA, which stands for Elimination, Simplification, Standardization, and Automation. This is about fighting complexity, which is something that companies do all the time. The third principle is that leaders must be leaders, not just managers. They have to grow their own leadership style and not just copy others.

Dirk Verburg: Do you think graduates nowadays face a more complex world than you did at the start of your career, and what advice would you give them?

Jeroen van der Veer: Yes, work-life is more complex. The bar has been raised on how you approach sustainability. I was sent overseas, and my reporting was limited. Today, with social media, there is much more transparency and public pressure on companies. Graduates also face what we call the “rush hour of life,” where both partners want a top job while raising a family. My advice is to write down a one- to two-page note about where you are today and where you want to be in ten years, focusing on your personal and professional objectives. You can adjust this note every year, and it will give you more focus in your life.

Dirk Verburg: We’ve covered a number of aspects of leadership. Is there anything else you would like to mention?

Jeroen van der Veer: A leader’s ability to change direction is one of the most important things. A good leader realizes that words like humility and modesty are not weaknesses, but strengths. The long-term effective leader will combine personal features, such as humanity and modesty, with the ability to change direction and make tough decisions. I also believe that a leader must develop their own natural and inclusive leadership style. Don’t copy others. It is the combination of these things that will make a leader effective in the future.

► About Jeroen van der Veer

Jeroen van der Veer Jeroen studied mechanical engineering and economics. He worked for Shell from 1971 to 2009, the last 5 years as CEO. He also took on a number of supervisory board positions, e.g. at ING, Unilever, Boskalis, Equinor, Philips, and the Dutch Central Bank. Other key and high-profile activities included Chairmanships for the World Economic Forum and Co-chair with Madeleine Albright for the new NATO Strategic Concept.