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Roger Beach looks to far shores: Unocal Corp.'s new chief is focusing on international ventures.


Unocal Corp.'s new chief executive officer, Roger C. Beach, says being CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board.  of a multibillion-dollar corporation is an exciting but sobering experience.

During the first week at his new position, which began May 1, he was in Europe talking to Noun 1. talking to - a lengthy rebuke; "a good lecture was my father's idea of discipline"; "the teacher gave him a talking to"
lecture, speech

rebuke, reprehension, reprimand, reproof, reproval - an act or expression of criticism and censure; "he had to
 potential partners about energy-related joint ventures in various parts of the world. More recently, he was busy putting out fires on his home turf.

"We had a raccoon raccoon, nocturnal New World mammal of the genus Procyon. The common raccoon of North America, Procyon lotor, also called coon, is found from S Canada to South America, except in parts of the Rocky Mts. and in deserts.  come into the refinery in Wilmington. It chewed itself into the power cable and shut the whole refinery down," Beach recalls. "We had flares and everyone was all excited, and the fire department was rolling out -- just because of a raccoon."

While California, and Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850.  in particular, have played a crucial role in Unocal's history, the company is now planning to sell off many of its California oil and natural gas assets. Beach is redirecting the company's resources into far-flung growth areas -- the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico
Golfo de Mexico

Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east
, Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. , and possibly even Vietnam and China.

This same man -- while navigating an oil industry giant into some of the globe's most exotic locales -- concedes that in his leisure hours he pursues a far less exotic form of navigation. He engineers a half dozen model trains through a scaled-down 1890s town of Silverado, Colo., which he built into his backyard. The town is equipped with man-made mountains, rivers, lakes, farms, tunnels, trestles This article is about the surf spots. For the table, see trestle table. For the type of bridge, see trestle.
Trestles is a collection of surf spots in San Onofre, CA near the Orange County border.
, houses, a church and even a bordello.

"It's a lot cheaper than a yacht and not nearly as frustrating as golf," Beach points out.

Back on the work front, Beach intends to kickstart Unocal into a growth phase, starting with a reorganization at the top.

On June 27, he announced that Unocal would be doing away with its two main divisions -- Energy Resource (which focuses on exploration and production) and Petroleum Products and Chemicals. In their stead will be three new groups: finance, operations and growth.

"We probably haven't reorganized at the top since the turn of the century," says Beach, who intends to take the company's "team concept" up the ranks.

"We've found them (teams) much more effective than the old style of managing by command and control," he explains. "We give more authority lower in the organization and hold people accountable for performance and let them do the job. And they take more ownership of facilities that they're operating."

Beach's predecessor, Richard Stegemeier, who had headed up Unocal since 1988, agrees that the team concept is the way to go -- especially under Beach's leadership.

That's because, he says, Beach has an uncanny ability to plan for the future and think long term, as well as a management style that favors delegating responsibility.

Stegemeier traces the start of Unocal using the team concept to 1985. The company implemented the concept to accommodate the bare-boned condition it was in after it had thwarted a takeover attempt Noun 1. takeover attempt - an attempt to take control of a corporation
bear hug - a takeover bid so attractive that the directors of the target company must approve it or risk shareholder protest
 by Mesa Petroleum Co.

Stegemeier credits Beach with bringing the team experience to an even higher level about two years ago, when Beach organized a series of strategy sessions with Unocal's top brass shortly after he was made the company's president and chief operating officer Chief Operating Officer (COO)

The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president.
.

Sequestered se·ques·ter  
v. se·ques·tered, se·ques·ter·ing, se·ques·ters

v.tr.
1. To cause to withdraw into seclusion.

2. To remove or set apart; segregate. See Synonyms at isolate.

3.
 away from Unocal's downtown L.A. headquarters for about 10 days, the executives and some outside consultants laid out the company's strengths and weaknesses and came up with game plans under various scenarios, laying the groundwork for the upcoming reorganization.

"Despite some heated discussions, everyone came away feeling this (strategy retreat) was a great experience," Stegemeier recalls, "Roger has demonstrated his ability to grasp the large issues and set up an organization able to cope with them."

Beach largely credits the challenges of his own life experiences in preparing him to take the helm at Unocal.

As a teenager, he says, he was left to run his family's 100-acre farm since his father's job required extensive traveling and his older siblings were off in college or starting lives of their own.

With tips from the local 4-H Club, Beach parlayed the profits from hog sales into a university education, including room and board.

Fresh out of college, he soon faced the responsibilities of being a refinery foreman at Pure Oil Co. when the former foremen were fired for stealing gasoline. Working on various shifts around the clock made him more attuned at·tune  
tr.v. at·tuned, at·tun·ing, at·tunes
1. To bring into a harmonious or responsive relationship: an industry that is not attuned to market demands.

2.
 to how a business is run at all hours of the day. That experience was accompanied by words of wisdom from his manager on the art of management: "You can't be too nice."

Pure Oil merged into a Unocal operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock.  in 1965, and Beach continued up the ladder in refining operations.

Then, in 1975, he was tapped to represent Unocal in President Gerald Ford's Interchange Program, a cooperative effort between the government and private industry. He ended up working with the secretary of the U.S. Navy for a year as a consultant on shipyards, public works and other issues. It was, notes Beach, his first staff job -- one that gave him contacts and insights into Washington's inner workings, as well as an introduction to other up-and-comers in American business.

He returned to Unocal as manager of special projects, was made director of refining and market planning two years later, and was named vice president of crude supply in 1980. Along the way he learned the corporate, financial and international aspects of the petroleum industry.

By 1986, Beach was president of Unocal's refining and marketing division. Two years later, he was elected to the board of directors, and by 1992, he was advocating a blueprint for change.

His crusade to update policy extends beyond the corporation.

For example, Beach pushed Unocal's 40-year commitment to the 4-H Club organization into the inner city by spearheading its After School Program in Los Angeles.

The project was launched within days of his February 1993 visit to a prototype program at the Dana Strand housing development in Wilmington, which is located within two miles of a Unocal refinery.

"Beach asked me to pull together a vision team consisting of various agencies and interested groups to decide if this 4-H after-school prototype program could be expanded throughout the Greater Los Angeles area The Greater Los Angeles Area, or the Southland, is the agglomeration of urbanized area around the city of Los Angeles, California, United States. There are two "official" definitions—the Los Angeles metropolitan area consisting only of the Los Angeles and Orange ," recalls Ron Mertz, a Unocal manager who had worked with 4-H in the past.

The vision team represents about a dozen contributors, including Unocal, the University of California The University of California has a combined student body of more than 191,000 students, over 1,340,000 living alumni, and a combined systemwide and campus endowment of just over $7.3 billion (8th largest in the United States).  system, the U.S. Department of Housing and Urban Development and Volunteers In Service to America VISTA or Volunteers in Service to America was created by Lyndon Johnson's Economic Opportunity Act of 1964 as the domestic version of the Peace Corps. Initially, the program increased employment opportunities for conscientious people who felt they could contribute tangibly  (VISTA).

Since May 1, volunteers and paid staffers at 11 sites in L.A. County have been overseeing homework preparation and "learn-by-doing" experiences for hundreds of inner-city students. Forty more sites are expected to be opened in L.A. County by the first quarter of 1996.

Snapshot

Roger C. Beach

Resident of: Rancho Palos Verdes Rancho Pal·os Ver·des  

A city of southern California on a channel of the Pacific Ocean west of Long Beach. Population: 42,100.
 Native of: Loveland, Colo. Age: 57 Education: B.S. in chemical engineering; Colorado School of Mines Colorado School of Mines, at Golden; state supported, coeducational; chartered 1874. It was one of the first mineral engineering schools in the United States. ; Golden, Colo.
COPYRIGHT 1994 CBJ, L.P.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Article Details
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Author:Berger, Robin
Publication:Los Angeles Business Journal
Date:Jul 18, 1994
Words:1137
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