Ambition to action & Beyond Budgeting Bjarte Bogsnes PDF
Preview Ambition to action & Beyond Budgeting Bjarte Bogsnes
From ”Blowing up the budget” to ”Kicking out the calendar” The next chapter of the Statoil journey Bjarte Bogsnes Vice President - Performance Management Development Chairman - BBRT Europe Classification: Internal 2011-04-11External Some European cases Beating the Europe’s most cost competition 40 years effective universal in a row bank ”I have been waiting for this for 20 years” (CEO) CCllaassssiiffiiccaattiioonn:: IInntteerrnnaall 22001110--0049--1110E x ternal Statoil in brief • Turnover and market cap Arctic approx. 90 bn. USD North Sea & • 20.000 employees in 34 Norwegian Sea Russia countries • Canada World‟s largest offshore operator Caspian North • US Gulf of Europe„s second largest Africa Mexico gas supplier Middle East • The world‟s third largest South crude oil seller America West •Listed in New York and Africa Oslo Current production of oil and gas Classification: Internal 2011-04-11External Relative Statoil performance RoACE – 2010 Total shareholder return 2010 ExxonM ConocoP Chevron Chevron BP Target Anadarko Statoil Occidental Total Shell BG BG Shell ExxonM Target Occident Devon Repsol Eni Lukoil Devon Statoil ConocoP Encana Petrobra Eni Repsol Total Anadark Petrobras Encana BP 0% 5% 10% 15% 20% 25% -25% -15% -5% 5% 15% 25% 35% RoACE – 2009 Total shareholder return 2009 ExxonM Petrobr Statoil Lukoil BG Target Anadark Petrobras Statoil Total Occiden ChevrBoPn RepsBoPl Target Encana Encana BG Occidental Total Devon Shell Eni Eni Shell Devon ConocoP Chevron Repsol Conoco Anadarko ExxonM -1% 4% 9% 14% 19% -15% 10% 35% 60% 85% 110% *Peer group: Anadarko, BG, BP, Chevron, ConocoPhillips, Devon, Encana, Eni, ExxonMobil, Lukoil, Occidental, Petrobras, Repsol, Shell, Statoil, Total. Classification: Internal 2011-04-11External Source: Barclays Capital From calendar driven to business driven Classification: Internal 2011-04-11External The controller and the fisherman…. CCllaassssiiffiiccaattiioonn:: IInntteerrnnaall 22001110--0049--1110E x ternal New principles From calendar-driven to business-driven No annual versions – Update strategic objectives, KPIs, KPI targets, forecasts and actions when necessary, triggered by external or internal events (event = “big for you”) Simple change and coordination controls – Seek approval if big, inform if small. Inform other affected units as required Varying time horizons – Target and forecast horizons reflecting urgency and lead times People@Statoil – Still annual performance evaluation, but against a dynamic Ambition to action Classification: Internal 2011-04-11External Simpler and better … … but not necessarily “easier” Bad news for those who want to be instructed on what, how and when? Classification: Internal 2011-04-11External The world has changed – what about the way we lead and manage? Implementation workshop BBRT 10th Annual Conference Bjarte Bogsnes Vice President - Performance Management Development Chairman - BBRT Europe Classification: Internal 2011-04-11External Outline • The case for change - what is the problem? • The Beyond Budgeting principles • The Statoil model - Ambition to action –Target setting –Forecasting –Dynamic resource allocation –Holistic performance evaluation • Implementation experiences and advice Classification: Internal 2011-04-11External
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