One Hundred Days to a New Product
To the casual observer, it looked like the start of any other business meeting. There was the usual shuffling of paper as a delegation of Shell people sat down across the table from representatives from Chemical Bank.
But there was nothing ordinary about this meeting. For one thing it was taking place in New York City at 11 o'clock on a Friday night. By the time it ended, even the city that never sleeps was dozing. And the Shell MasterCard project was still on track for a lOO-day launch
The idea for a Shell MasterCard grew out of a marketing analysis of Shell's proprietary credit card. "Even though our card was in the hands of 6.3 million Shell customers, it was obvious that proprietary credit cards were becoming dinosaurs," says Mark Evers, Manager of Marketing Planning.
Initially, the discussion revolved around ways to make the old card work better, but eventually the thinking broke free of those constraints and entered the realm of "What if?" What if Shell launched a major credit card in partnership with a major bank? The advantages were obvious: it would tie up less cash, reduce costs, and reward customers for their loyalty with a discount. Best of all, it had the potential to increase sales of gasoline, a product in which Shell was already the leader.
To get the go-ahead, team members began working their way through the traditional chain of command. First they approached J.W. Schutzenhofer, Vice President of Marketing, then Jim Morgan, President of Shell Oil Products Company, and finally, Shell Oil Company's President and CEO, Phil Carroll.
Although there was talk that Carroll was a champion of innovation with a propensity to trust people even in situations involving some risk, the team was nevertheless unprepared for the thoughtful hearing and almost immediate green light accorded their project.
The team knew that the first oil company into the major credit card fray would reap "first mover" advantages. They were keenly aware that in the case of Ford (which introduced its card after GM), Ameritech (which followed AT&T), and United Airlines (which trailed American), second just wasn't good enough.
Looking ahead, they saw a natural launch date--the annual meeting of the industry's dealers and jobbers in Las Vegas in November. There was only one problem with that date: it was just a little over 100 days away.
"That kind of timetable would have been unthinkable in the 'old Shell'," Evers concedes. But he had been granted a glimpse of the new culture, one in which "fear of failure could be driven out by the hope of something great."
Even so, the team faced an awesome task. Not only would they have to find the right banking partner--one big enough to handle the anticipated volume but small enough to value Shell as a key partner--but they would also have to negotiate a complicated contract. The marketing department would have to do enormous amounts of customer research, develop lists of creditworthy prospects, and create marketing strategies. They would have to work with colleagues in other departments, with the bank's representatives, and with outside vendors. The bank would also face the formidable task of hiring and training over a thousand new people to handle the work associated with the launch of the new card.
There were moments when the enormity of the task threatened to overwhelm them. But they were buoyed by the confidence Carroll and Morgan had displayed in them.
That confidence followed them every step of the way. "Since the credit card would represent Shell to millions of people, we thought Phil Carroll would want to participate in the selection of the final card design," Evers says. "But he told us that we knew more about it than he did!" Months later, a note of wonder stills creeps into his voice. "He and Jim trusted us with the Company's image."
That trust was rewarded with one of the most successful--and certainly one of the fastest--product launches in Shell's history.
It also provided a glimpse into the new Shell--where people are customer-focused, willing to make decisions even when those decisions involve risks, are powered by a sense of urgency, and are comfortable working in teams, creating alliances, and crossing boundaries.
Evers is the first to admit that the speed of the project gave rise to some problems, especially in customer service where new bank staffers sometimes made mistakes. While he regrets those lapses, he feels that in the long run customers as well as the Company benefit.
There have also been many rewards for the people involved. In June, Phil Carroll presented the members of the MasterCard project with the President's Award for Team Excellence. It was a satisfying moment. But most agree that the greatest reward was the opportunity for personal growth and the realization that they had forever redefined the notion of the possible.
When Shell's history is being written from the vantage point of the 21st century. the MasterCard project may well be treated less as the launch of a successful new product and more as an example of the cultural change that transformed Shell into the premier company in the United States.