Thread regarding Chevron Corp. layoffs

We accidentally used AGILE at Gorgon LNG. We designed the MVP for $35B then built with agile improvements along the way for just $55B. A lot of it didn't work initially because we rushed the design, so we added the necessary bits for billions more and now most of it works. Except CO2, which was the cornerstone of the project.

AGILE Might be fine for software development, where minor updates can be forward and then recycled as needed. It is totally misguided for petroleum development, where project gates are go/no-go decisions about starting major capital projects. Once a project is a go we can’t recycle because the moneys are being spend and construction has started. For this business , Chevron’s previous take the “time to do it right” (the first time) is a better model.

how is AGILE doing is the real question

The fundamental problem with agile, as many companies use it, is that its relentless pace biases developers. They want to get out a minimum viable product in only a few weeks, so they skimp on scoping out just what the product should accomplish. Or worse, in my experience, they make two kinds of compromises.

First, rather than take the time and uncertainty to develop a new capability, they go with the skills they currently have. They accept their existing constraints, which automatically limits the potential for a high-growth offering.

Second, they curtail their ambitions on the product. Instead of a major breakthrough, they tend toward only incremental improvements on existing offerings. Or if they do go bold, their minimum viable product isn’t really viable at all, so customers can’t give realistic feedback. The developers haven’t had time to do their homework and prepare something that’s sustainable.

The team tells itself that whatever information they get is still valuable toward some future breakthrough product. But that future rarely comes. Too often, the process of two-week sprints becomes the thing, and the team never gets the time and space to step back and obsess over what is needed to truly delight customers. Teams think in bite-sized chunks based on the resources that they already have — there’s no time for the careful thinking that breakthroughs require.

Agile proponents worry that a working backwards approach takes the authority and urgency away from teams to launch new code, get feedback from customers, and iterate rapidly. But speed isn’t everything, especially when it comes to breakthrough products. Don’t confuse writing code with making progress per se. By working backwards, you can actually get a successful product to market faster.

How to Make Agile Work Better
I'm not arguing that companies should throw agile out the window. It’s still a highly effective tool for product development, especially software-driven offerings. Many of its principles and processes have been used successfully by Amazon and other companies. After all, most product development involves only incremental changes. You don’t need a lot of thought around these improvements. Just put together two rough alternatives and try them out in the real world, where you’ll get vital feedback.

Teams with breakthrough products can benefit from agile as well, once they’ve done the kind of advance work involved with the working backwards approach. When you’re in the coding and product construction phase, you want to move quickly and avoid getting bogged down. Sprints keep you on track and ensure that you actually get something to market.

The best solution, then, is to combine agile with something like working backwards. Amazon, for example, has learned to use the working backwards process for idea development, but then follow agile to build and ship the product. If a giant like Amazon can switch course like that, then even CVX companies can follow suit.

'Simplifies' and 'consolidates' are euphemisms for 'shrinking'. Chevron's heyday is clearly in the past.

@ttn hit it right on the mark. Unless you're >psg 25, every year you work past 60 gets you only incrementally better retirement benefits. Add to that if you've got the points, you stay on Chevron medical insurance until Medicare (yes, for about $4000 more per yr.) .

Unless you're getting substantial increases in pay after you hit 60, You really need to think about taking the lump asap. The lump is based on an annuity, interest rates for discounting and expected remaining life. It's true that you are getting paid your salary and benefits but each 1% increase in the interest (discount) rate results in more than a 10% decrease in your lump sum. And each year, your remaining annuity life decreases as you approach death. You are basically working for free and the system was designed to gently nudge you to the door. The rates over the past few years are unprecedented. Here's a thought, find a job with a different company, resign and get the big lump plus maintain a salary and benefits.

Chevron is consolidating its upstream, midstream, and downstream business segments as it looks to simplify its organisational structure.

Nigel Hearne will lead the consolidated upstream, midstream, and downstream segments as executive vice president of oil, products and gas.

The company is also consolidating into two upstream regions — Americas and international, headed by Bruce Niemeyer and Clay Neff, respectively.

“We’ve made significant progress over the last two years, and these changes position us to further enhance execution across all aspects of our business as the energy system evolves,” said chief executive Mike Wirth.

“It will also bring strategy, policy and business development into tighter alignment as we focus on leveraging our strengths to deliver lower carbon energy to a growing world.”

The changes will take effect on 1 October, 2022.

Chevron is also organising its strategy and sustainability, corporate affairs, and business development divisions under a new executive president of strategy, policy and development, Mark Nelson.

Jay Johnson, who has worked for the company for 41 years, most recently as executive vice president of Upstream, will stay on through 31 January, 2023, as a senior advisor to support the transition.

Jay Pryor, who has worked at the business for more than 43 years, most recently as vice president of Chevron’s business development, will retire, effective 29 July 2022.

Steve Green will also retire, effective 30 September 2022. He has worked at Chevron for more than 24 years, most recently as president of Chevron North America E&P.

“I’m confident that our new team will continue to effectively lead the company in delivering the affordable, reliable and ever-cleaner energy that enables human progress,” Wirth said.

“Their contributions will be essential in enabling us to advance our objectives of higher returns, lower carbon.”

“I want to especially thank Jay Johnson, Jay Pryor and Steve Green for all they’ve done for our company, our industry and our employees over the course of their careers. Each of them exemplifies the finest qualities of character, integrity and excellence, and their influence will be felt for many decades still to come.”

Balaji Krishnamurthy was also named vice president of chevron strategy and sustainability, effective 1 October, 2022.