Evergreen Targets and Why Your Business Should Use Them

In: BlogDate: Jan 29, 2018By: Claire Lickman

In this two minute video, Bjarte Bogsnes (Chairman at the Beyond Budgeting Institute) talks about evergreen targets at Statoil, and why you should deploy them in your own business.

Hi, we are Happy

We are leading a movement to create happy, empowered and productive workplaces.

How can we help you and your people to find joy in at least 80% of your work?

More about Happy

Evergreen Targets and Why Your Business Should Use Them

“These are our most important financial targets in the company [Shareholder Return and Return on Capital] – the two KPIs here definitely have their weaknesses, but that is not the point, the point is that we are thinking in relative terms.

“On return on capital there is no target of 11 and a half or whatever, it’s all about doing well against competition. Here are some of the guys we compete with. We are not identical, so this is not as precise as setting 12 and a half, but it’s ten times more relevant.

“We call these ‘evergreen targets’. We’ve had the same ones for maybe ten years now, we’ve moved the one on the right [Return on Capital] up and down a few times, but we don’t need a big exercise every autumn to recalculate this – they stand until we have some other ones. These are probably the closest our board comes to approving a budget.”

Why not sign up to our newsletter?

Sign up to our monthly newsletter, full of tips, tricks and news to help you to be happier and more productive at work.

Sign up here

Statoil is Scandinavia’s largest company, with operations in 36 countries and a turnover of 130bn USD. On Fortune 500, the company was recently ranked #1 on Social responsibility and #7 on Innovation. Transparency International has named Statoil the most transparent listed company globally.

Bjarte was speaking at the 2017 Beyond Budgeting Conference in London. Click here to view more videos, PowerPoint and blogs from the event.

Bjarte is the Chairman of the Beyond Budgeting Institute and Senior Advisor Performance Framework at Statoil. Bjarte is a popular international business speaker and winner of a Harvard Business Review / McKinsey Management Innovation award. He is the author of Implementing Beyond Budgeting: Unlocking the Performance Potential. Follow Bjarte on Twitter at @bbogsnes.

Claire Lickman

Claire is Head of Marketing at Happy. She has worked at Happy since 2016, and is responsible for Happy's marketing strategy, website, social media and more. Claire first heard about Happy in 2012 when she attended a mix of IT and personal development courses. These courses were life-changing and she has been a fan of Happy ever since. She has a personal blog at lecari.co.uk.

More by Claire

Next Conference: Happy Teams and the Buurtzorg Way

We are very excited to be partnering with Buurtzorg for this online event! If you haven't heard of them, Buurtzorg is a healthcare organisation in the Netherlands with over 15,000 staff that receives top marks from care inspectors and has a current patient satisfaction rating of 9.3. It's also been rated five times as one of the top places to work in the Netherlands. Why? Their staff is made up of hundreds of self-managing teams supported by regional coaches and a back office of just 50 people — with overheads accounting for just 8% of its total costs!

At this workshop from 10am to 4pm on 27th May 2021, you will hear from nurses and a coach working the Buurtzorg way in both Britain and the Netherlands. You will also be introduced to some of the techniques Happy uses for more effective staff involvement in decision-making.

Find out more and book your place