Over the last decade, Shell has been undergoing an IT transformation that is remarkable for the scope of change it is seeking in one of the world’s largest and most complex organizations—one with 25 business portfolios and operations across more than 100 nations. The transformation is defined by four phases, says Alan Matula, executive vice president and group CIO.

The first was about going back to basics—allowing Shell’s IT leaders to better align IT with the business units by stabilizing operations, establishing project discipline, and tracking costs, people, and assets. Matula says that this solid foundation is essential to any successful IT transformation.

In the second phase, the targets were costs and complexity. Shell rationalized and consolidated infrastructure, substantially reduced the number of business applications, improved procurement procedures, and aggressively offshored. It also strengthened governance by recognizing that a real dialogue with the businesses was needed and recruited high-grade talent to conduct it.