|Regardless of size or industry, businesses face challenges they must work to overcome. Southwestern Energy is no different. And it was during some of the most difficult times our company found both its spirit and its determination. Perhaps it is the story behind the Formula that best explains the passion that Harold Korell and his management team have for this unique Formula.
“We developed the Formula during some of the darkest moments of our company’s history,” Korell said. Near the end of 1999, the management team met to discuss its business strategy to define, in clear terms, how they were going to deliver better results in spite of the challenges the company faced at the time. The result of that brainstorming session was what is now known as “the Formula,” which the team wrote on a marker board in the short-hand format seen today.
“The Formula simply defines what Southwestern Energy is all about,” explained Korell. "Each part of the equation represents something critically important to our company. Not only do we have ‘The Right People doing the Right Things,’ but we are also ‘wisely investing the cash flow from our underlying Assets’ to create greater value for every dollar we invest.
“Everything is right there in the Formula, Korell added. “It is the right people. Those are people with curiosity who are innovative, creative, and hard working, who know right from wrong, can do the technical work, and do the hard work at times when it’s needed. You combine that with the focus on areas where we have competitive advantages and you can create value.
Through the years, the Formula has become more than a business strategy. In the words of Korell, “It’s become a rallying point in the company. It’s how people think about themselves.”