Statoil's management practices in Azerbaijan
By Gulgiz Dadashova
Bjarte Bogsnes, Vice President Performance Management Development, Statoil
Bjarte Bogsnes has an outstanding international career, both in Finance and HR. He is currently heading up the Beyond Budgeting implementation in Statoil, Scandinavia's largest company with operations in 36 countries and a turnover of 90 bn USD. Bjarte is Chairman of the Beyond Budgeting Round Table Europe (BBRT), and is a popular international business speaker. He is the author of "Implementing Beyond Budgeting - Unlocking the Performance Potential" in which he writes about his implementation experiences. Statoil realized that traditional leadership and management practices no longer work in today's competence organizations operating in business environments more complex, dynamic and unpredictable than ever. The company implemented innovative and agile alternatives to traditional management, which included abolishing both traditional budgets and calendar-based management.
Mr. Bogsnes will visit Azerbaijan on November 4-5 to speak at the "Baku HR Experience" about changing the traditional management models. Prior to his visit, he spoke to Azernews about HR policies and his upcoming presentation.
Q. Statoil has set up a diversified and significant business in Azerbaijan. Do you encounter any difficulties in recruitment here?
A. We started activities here in the mid-nineties, and have been happy with the qualifications of the persons we have employed. Most need further in-house training and development, but the base qualifications are good.
Q. What is Statoil's human resources policy in Azerbaijan? Does the company plan increasing the share of locals in its projects realized in Azerbaijan?
A. Our HR policy worldwide is aiming for nationalization to the maximum possible degree. Our present position in Azerbaijan is mainly as a partner, so that we for now have limited tasks and potential for exposure. However, in one of our smaller operator activities we have, after developing competencies for five years, increased the ratio of nationals significantly.
Q. Could you please describe the methods the company uses to improve the professional skills of its employees?
A. The main tool we use is on-the-job training, with stretch targets. We of course make a development plan for each individual and we provide training according to that plan. Also, many of our talents have been sent to Norway for periods of up to two years to get operational work exposure.
Q. Which novelties has Statoil brought to the Azerbaijani labor market?
A. I think the most important ones are: competence within upstream oil and gas, gas marketing and sales.
Q. What can you tell us about the presentation you are going to hold at the "Baku HR Experience" next week?
A. The presentation is about why we must create more agile and human organizations and how to do that. We will talk about radically changing traditional management, including micromanagement and centralized command and control practiced through traditional budgeting.