2008-03-30-奥纬咨询-Get_Serious_About_Strategic_Planning_7页_113kb

Energy Industry Strategic Planning

Getting Serious About Strategic Planning

• Rising energy prices have made companies complacent, but long-term growth requires strategic planning to identify high-priority initiatives.
• Capital-rich E&P firms need a sophisticated approach to planning, incorporating business analytics and risk assessments.

Case for New Value Growth Strategies

• Past reliance on "plowback" investments has stagnated strategy development due to excess cash.
• Reduced plowback ratios signal opportunities for growth but require reevaluation of long-term strategy.
• Superior strategic planning avoids uncertainty, ensuring optimal capital allocation and initiative prioritization.

Importance of Strategic Planning

• Strategic planning prepares organizations for future market conditions, regardless of price volatility.
• A holistic approach integrates strategy with execution, aligning resources, culture, and incentives with business goals.

Steps to Develop Holistic Planning

1. Internal Audit: Assess the company's strategic planning maturity and align with its culture.
2. Apply Best Practices: Use data from industry benchmarks to refine processes.
3. Design Parameters: Build consensus on priorities, considering constraints and capabilities.
4. Core Process Design: Map out detailed planning processes across departments.
5. Testing and Learning: Continuously refine the system by recalibrating based on changing conditions.

Incorporating Risk Analysis

• Risk modeling incorporates internal and external factors like market fluctuations, political shifts, and operational risks.
• Metrics and portfolio adjustments consider risk-adjusted returns to optimize investments.

Conclusion

• Implementing a robust, integrated strategic planning system can drive sustainable value growth and a competitive advantage, especially in an era of persistently high energy prices.