A comprehensive management system which comprises all governing documents
Comprehensive management system
Statkraft has a comprehensive management system which describes the way in which the Group manages its business and which internal frameworks employees must comply with in their daily work. The management system brings together all the governing documents, from the Articles of Association to the various Group policies and procedures. This provides an important basis for business management, risk management, internal control procedures and the ongoing improvement work within the Statkraft Group.
The management system shall facilitate:
Efficient management information
Making the Group’s framework for management visible and easily accessible
Ensure compliance with internal and external requirements
By establishing an appropriate structure of governing documents, we have provided a basis for a culture that contributes to quality and efficiency in daily operations, as well as in reporting to the company’s management, the board and capital markets.
Five levels in the decision hierarchy
The management system is a decision-making hierarchy split into five levels in accordance with this figure.
Articles of Association
Statkraft’s activities are described in the Articles of Association, All the Group’s activities shall be pursued within the framework of these regulations. The Articles of Association are adopted by the owner. You may find the Articles of Association here.
Vision and values
Statkraft’s vision states: “As Europe’s leader in renewables, we will meet the world’s need for pure energy”.
Statkraft’s core values - expertise, responsibility and innovation - describe the essence of our business and guide everything we do. This level also contains Statkraft's code of conduct, as well as Group policy for corporate governance. Statkraft's code of conduct describes our basic ethical principles, and sets requirements both for Statkraft's employees and for our business partners. The Group policy for corporate governance clarifies the distribution of responsibilities between the owner, the board and the general management. All documents at this level are adopted by the board.
Read more on Statkraft's visions and values on our website.
Strategy
The Group's strategy has been described in the Strategic Platform document. The document conveys the main lines of the strategy and serves as a reference document with guidelines for business decisions during the strategy period. The strategy is adopted by the board.
Read more on our strategy under Group strategy.
Group policies
The Group policies state the intention and direction for all underlying activities and provide a guide for employees to follow in their daily work. The Group policies are consistent with Statkraft’s Articles of Association, vision, values and strategy. The Group policies are adopted by the President and CEO.
The four highest levels of the management system apply to all employees in the Group. All employees are responsible for familiarising themselves with the documents at these levels, and shall comply with the relevant requirements in their daily work.
Processes
The governing documents for all management, core and support processes are contained in the process models. Process-level documents are prepared in accordance with the Group policies. Employees are expected to comply with the relevant governing documents in implementing their work processes.
Planning and follow-up – Statkraft's operational management model
Statkraft has developed a management model that emphasises the relationship between strategic guidelines, operational management tools and follow-up. The constant follow-up carried out by the board and the Group management is concentrated around scorecard systems with supplementary financial and operational reporting. The budgets have been replaced by scorecards, forecasts for the next four quarters, three-year project plans and long-term projections.
See illustration Value-driven management
Management signposts
The premises for operational management are adopted by the board and embedded in the Group’s strategic platform, which contains priorities and targets that are communicated internally. This platform also forms the basis for calculation of long-term economical effects based on the strategic choices where capacity investments and financing needs are the main issues.
Operational management aims to ensure goal achievement, resource coordination and cost control by actively employing tools such as scorecards, forecasts and cost limits. Balanced scorecards form the core of Statkraft’s corporate governance. Statkraft uses Group score cards and scorecards for business and staff units to implement and follow up the Group's strategies and objectives. The scorecards cover financial and operational aspects, as well as organisation, HSE and reputation. The executive management ensures financial control by monitoring key cost figures and accounting history, and by establishing intervention limits for the key cost figures. Authorisation systems ensure approval and control of individual transactions.
Reporting
The administration prepares internal reports for the board and Group management each month. In addition, the executive management holds quarterly business reviews with the business units.
