Mature Business Strategy
A multi-billion dollar operating business had been one of the leading cash generators of a global oil and gas major, and a key contributor to technical leadership and innovation. However, the company’s momentum strategy was to “make the most of what we have." Senior leadership was focused on operations rather than discovering breakthrough alternatives.
SDG helped shatter this paradigm by demonstrating a surprising insight: The total added value of all discretionary activity was very small but consumed half the management resources. This insight led to an urgent search for the valuable options that deserved focus and funding.
As a result, the organization chose to limit its focus to the few material opportunities with the potential to substantially boost near-term performance. The company reorganized into a leaner, more focused organization that successfully tested these options and gave management a clear framework for efficient, decisive, value-focused action.
