Putting People First: How Values Drive Strategy Execution at Statoil
Oil and gas giant Statoil takes a values-based approach to managing the organisation. Values are non-negotiable words and actions that drive how the organisation performs and behaves and are central to all management processes.
Values are tightly aligned to the 1400 Balanced Scorecards (which Statoil calls Ambition to Actions) that are in place organisation-wide. Among other innovations, the Ambition to Action has a People and Organisation perspective (its version of Learning and Growth) at the top of the scorecard, and devolved scorecards focus on “translation” rather than cascading. Moreover, inculcating a strategy-aligned and performance-driven culture has also led Statoil, a Palladium Balanced Scorecard Hall of Fame® member, to abandon the annual budgeting process.