Anadarko Petroleum Corporation: Leading Transformational Change
The case describes the transformation of the large independent oil and gas company, Anadarko. The company had fallen into bad times as a consequence of a host of environmental factors as well as questionable strategic choices and ill-timed acquisitions. James Hackett was hired as the new CEO to transform the company. The case discusses the major changes that he made during his tenure and the transition from Hackett to his handpicked successor Al Walker. It dwells on the era of Hackett more than Walker and focuses on the manner in which Hackett engineered the key changes, his approach to leadership, and his inclusive transformational approach. The case ends with some key challenges confronting Al Walker as he contemplates the changes he would have to make in both preserving the legacy of his mentor Hackett and addressing the challenges that confronted the company in 2017.
The case has been used in both the graduate classroom especially in courses that deal with strategy implementation, change management, and authentic leadership. In the executive classroom, the case provides several crucial lessons on the approach to picking the right strategy, energizing the implementers, and rallying external stakeholders to the cause. It has been extremely well received in both settings. It works really well in specialized courses/programs dealing with the oil and gas industry.
The specific teaching objectives for the case are:
(a) To explore the intersection between strategy formulation and strategy execution through the lens of authentic leadership
(b) To identify the paradoxes involved in planning and executing strategic transformations
(c) To discuss the creation and execution of large-scale change management programs that require a host of changes in structure, organizational culture, organizational strategy, as well as organizational systems and processes.