When Halliburton Energy Services Group, a leading oil field services company, revamped its strategic planning process, senior managers decided that these two processes were in fact one and they designed their strategic planning accordingly. Halliburton now has one owner of strategy and capital allocation, with clear accountability for ensuring alignment between the two. This senior manager owns the corporate-wide strategic managing process and chairs a “capital committee” composed of a handful of the most senior executives who decide how to fund strategies approved earlier in the year by the CEO and business unit heads. Only initiatives linked to a short list of strategic priorities can be funded. This ensures a balance of long-term strategic goals with short-term financial constraints.
Source: “Strategic Planning Redux”
Original Publication: Mercer Management Journal
Subjects: Finance, Strategy