Implementing Beyond Budgeting, 2nd Edition

CHAPTER 4The Statoil Case

“The way we deliver is just as important as what we deliver.”

The Statoil Book

Introduction

Sharing the Statoil case is quite different from sharing the Borealis case. First time around compared to getting the chance a second time makes a big difference. I am very grateful for that opportunity. The Statoil journey actually made me understand the Borealis journey better: what we did, what we didn't do, and what we could have done differently. Back then, there was no Beyond Budgeting guidance to help us put things in perspective.

The Borealis days are long enough behind to allow for the necessary reflection and learning. The Statoil case is still a work in progress. Although we have been on our Beyond Budgeting journey for more than ten years now, we still are as I write and probably also as you read.

Statoil was established in 1972 as a national oil company following the discovery of significant oil and gas reserves on the Norwegian continental shelf in the late 1960s. Norway is among the very few countries in the world where huge natural resources have been a blessing and not a curse. Even the Dutch messed it up when the country discovered big gas reserves many years ago. Wise Norwegian politicians have not only secured a fair distribution of the new wealth, they have also resisted the temptation to spend it all. The Government Pension Fund now has close to one trillion dollars invested around the world, almost USD 200,000 per Norwegian.

Statoil hit ...