Best domestic and international practices taken into account in Gazprom’s strategic planning system
The Gazprom Board of Directors took note of the information about the Gazprom Group’s strategic planning system.
It was emphasized that Gazprom applied a three-level system of planning: short-term (for 1 year), medium-term (for 1–3 years) and strategic (long-term, for 10 years or more) planning. This system takes into account the best modern Russian and international practices and methodologies developed by the gas industry’s leading organizations and experts. The underlying principles of the system are a comprehensive approach, well-balanced performance indicators, scientific validity, efficiency and continuity of managerial decisions.
Long-term planning, which involves integrated planning of investment, financial and operating activities, is aimed at achieving Gazprom’s strategic goal to be a leader among global energy companies by diversifying the sales markets, ensuring the reliability of supplies, enhancing the operating efficiency and utilizing the scientific and technological potential. A number of strategic targets of the first and second levels are used in order to quantify this goal.
The first-level strategic targets constitute a list and target values of Gazprom’s key performance indicators. The target values are set by the Board of Directors for the end of a decade and serve as benchmarks for devising Gazprom’s Long-Term Development Program. The second-level strategic targets break down the first-level ones by areas and types of activities, describing more in detail production, economic, staffing and other objectives. The second-level strategic targets are also included in the Long-Term Development Program.
The Long-Term Development Program is annually updated and approved by the Board of Directors in order to ensure the optimal development of Gazprom with due account for the changing external and internal environment.
The Management Committee was tasked to continue improving the Gazprom Group’s strategic planning system, taking into account the best international practices.
The Board of Directors also approved the updated Long-Term Development Program of Gazprom.