Managing in Dynamic Business Environments

Managing in Dynamic Business Environments

Between Control and Autonomy

Edited by Katarina Kaarbøe, Paul N. Gooderham and Hanne Nørreklit

This timely and innovative book focuses on budgeting control and ongoing Beyond Budgeting trends and its consequences for the organization. Ensuring an optimal balance between individual autonomy and management control is a critical challenge for organizations operating in dynamic business environments. Too much of the former leads to chaos, and too much of the latter guarantees rigidity. This book explores the tensions that arise in seeking the best possible balance between these two dimensions. Resolving these tensions is a critical challenge for achieving competitiveness.

Chapter 2: Taking reality seriously – towards a more self-regulating management model at Statoil

Bjarte Bogsnes

Subjects: business and management, corporate governance, strategic management


Statoil is a Norwegian oil and gas company with activities in 36 countries, 23 000 employees and a turnover of USD 130 billion. The company is listed in New York and Oslo. On the Fortune 500, it ranks number 40 on size but number 1 on social responsibility and number 7 on innovation. Transparency International has named Statoil the most transparent listed company globally. At Statoil, we try to take reality seriously, not just a dynamic and unpredictable business environment, but also all the competent and responsible people in the company. It sounds obvious, but requires fundamental changes in how we lead and manage. In 2005 we started on a journey of radically changing our management processes, which included abolishing traditional budgeting. In 2010 we also decided to “kick out the calendar” wherever possible. These were both key steps towards a more dynamic, flexible and self-regulating management model.

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