Planning September 27th, 2010 MGT 330 Halliburton Management Planning Halliburton is a leader in manufacturing oil services. They are a global company that provides various equipment, oilfield tools, and services to the oil and gas industry.
Halliburton was founded in Duncan, Oklahoma, in 1919 and they operate today out of Houston, Texas and Delaware (About, 2010). The company has grown exponentially within the last few years, having opened a second headquarters in Dubai, United Arab Emirates in 2007 (Davidson, 2007).According to Davison (2007), Halliburton operates in Dubai in accordance with the laws and government regulations set forth by the Unites States.
Planning is a crucial management function at Halliburton. They operate in more than 70 countries and have more than 50,000 employees (About, 2010). Management at Halliburton must be efficient in establishing and implementing procedural guidelines. In 1997, Halliburton began an internal program, Performance Improvement Initiative (PII) (Halliburton, 2006).
PII is an internal annual review that was created to address health, safety, environmental, and service quality concerns.PII includes a review of “past performance, an assessment of currently available tools, and the development of objectives and strategies for continuous global improvement” (Halliburton, 2006). The company is continually under media scrutiny for suspected corrupt activities. Therefore, Halliburton is forced to recognize the influence of legal, ethical, and social responsibilities during their annual strategic planning sessions. In 2009, Kellogg, Brown, and Root, LLC (KBR), a subsidiary of Halliburton, plead guilty to bribery charges for violating the Foreign Corrupt Practices Act.
Halliburton was charged with “promising and paying tens of millions of dollars in bribes to officials in Nigeria in exchange for business contracts between 1995 and 2004” (AP, 2009). In 2005, a probe was conducted by the Department of Labor (DOL) and found that Halliburton was in violation of the law. According to Williams-Walsh (2005), the organization was using money from workers pension funds to pay for executive pension funds and bonus plans. It was demanded that Halliburton pay more than $8. 6 million in fines and legal costs.
The other violation cited by the DOL included a misappropriation of money.Halliburton was supposed to distribute several million dollars worth of cash and stock options to pension participants but “instead kept the money for itself” (Williams-Walsh, 2005). Currently, Halliburton is under investigation with the Environmental Protection Agency (EPA) for hydraulic fracturing, or “fracking” (Daly, 2010). Fracking is a controversial method of getting oil and natural gas to flow by forcing a mix of chemicals, sand, and water into underground channels. There are numerous factors which influence Halliburton’s strategic, tactical, operational, and contingency planning.
Halliburton professes to learn from strategic planning mistakes and encourages management to learn strategically. According to the organization (Halliburton, 2009), one factor that may affect strategic planning is location and the availability of outside resources. When planning for tactical advantages, lower costs must be considered as well as time management and risk management.
Operational considerations include leadership, teamwork, and management. Halliburton states they are currently putting these operational planning strategies into use today “within management and by management” (2009).Unfortunately, contingency planning does not seem to be of much concern to a business like Halliburton. However, Halliburton and its subsidiaries are coming under fire from agencies like the EPA to adhere to regulations. Halliburton is a global power. A company like Halliburton must take special care to ensure they are following all federal procedural guidelines and plan carefully for the implementation of their strategies. By adhering to a system-wide plan, and implementing it accordingly, management can and will be held accountable for any discrepancies.
Companies like Halliburton should strive to practice all business plans and strategies in the most moral and ethical way possible.References Associated Press. (2009, February 7).
KBR nears guilty plea on bribery charges. Retrieved September 26, 2010, from SFGate. com. Daly, M. (2010, September 9). EPA seeks chemical information on hydraulic fracturing.
Retrieved September 26, 2010, from SFGate. com. Davidson, A. (2007, March 12). Halliburton to Move Headquarters to Dubai. Retrieved September 25, 2010, from