How not to handle a crisis situation
THERE IS NO SUBSTITUTE FOR
LEADERSHIP:
AN ANALYSIS OF BRITISH PETROLEUM
A comparison of different leadership methods in reference to crisis management
THERE IS NO SUBSTITUTE FOR LEADERSHIP:
AN ANALYSIS OF BRITISH PETROLEUM
• The Organization : British Petroleum
• The Crisis Incident : The Deep Water Horizon Explosion
and Oil Spill
• The Solution : The Leadership of Methods of James Burke
The Organization : British Petroleum
History
Founded by William D’Arcy in 1901
First oil discovery - Persia 1908
Creation of Castrol brand during world war two
Began the first offshore operation in the English Channel in 1970
First oil flowing from Alaska Pipeline in 1977
Formation of BP America from Sohio in 1987
Deep water Horizon environmental disaster in 2010
BRITISH PETROLEUM – VALUE OF COMMON STOCK
(FIVE YEAR PROGRESSION)
What Happened?
THE INCIDENT : THE DEEP WATER HORIZON
EXPLOSION AND OIL SPILL
• Explosion in Gulf of Mexico on April 20, 2010 – killing 11 workers
• Original Estimates of spillage – 8,000 barrels/day
CRISIS MANAGEMENT – WHAT NOT TO DO
Do not avoid addressing the crisis
Blame the crisis on another group or organization
Tell the stakeholders that they are bothering you
Do not go against your organizational policy
Negative Publicity generated from bad leadership in a crisis situation
During the Deepwater Horizon incident, BP had more brand recognition than any of the different venues for cellular communication.
Most Companies strive for high brand recognition, However, in the summer of 2010;
British Petroleum got much more than they ever wanted
POOR CRISIS MANAGEMENT – IRREPARABLE
ORGANIZATIONAL DAMAGE
Romar Tower - Orange Beach - Alabama
Tony Haywood deposition
WHAT IF ANOTHER EXECUTIVE WAS THE LEADER OF
BRITISH PETROLEUM, WOULD THE RESULT HAVE BEEN
THE SAME TODAY?
Apologized and took
responsibility for the situation
Used wisdom
LEADERSHIP:
AN ANALYSIS OF BRITISH PETROLEUM
A comparison of different leadership methods in reference to crisis management
THERE IS NO SUBSTITUTE FOR LEADERSHIP:
AN ANALYSIS OF BRITISH PETROLEUM
• The Organization : British Petroleum
• The Crisis Incident : The Deep Water Horizon Explosion
and Oil Spill
• The Solution : The Leadership of Methods of James Burke
The Organization : British Petroleum
History
Founded by William D’Arcy in 1901
First oil discovery - Persia 1908
Creation of Castrol brand during world war two
Began the first offshore operation in the English Channel in 1970
First oil flowing from Alaska Pipeline in 1977
Formation of BP America from Sohio in 1987
Deep water Horizon environmental disaster in 2010
BRITISH PETROLEUM – VALUE OF COMMON STOCK
(FIVE YEAR PROGRESSION)
What Happened?
THE INCIDENT : THE DEEP WATER HORIZON
EXPLOSION AND OIL SPILL
• Explosion in Gulf of Mexico on April 20, 2010 – killing 11 workers
• Original Estimates of spillage – 8,000 barrels/day
CRISIS MANAGEMENT – WHAT NOT TO DO
Do not avoid addressing the crisis
Blame the crisis on another group or organization
Tell the stakeholders that they are bothering you
Do not go against your organizational policy
Negative Publicity generated from bad leadership in a crisis situation
During the Deepwater Horizon incident, BP had more brand recognition than any of the different venues for cellular communication.
Most Companies strive for high brand recognition, However, in the summer of 2010;
British Petroleum got much more than they ever wanted
POOR CRISIS MANAGEMENT – IRREPARABLE
ORGANIZATIONAL DAMAGE
Romar Tower - Orange Beach - Alabama
Tony Haywood deposition
WHAT IF ANOTHER EXECUTIVE WAS THE LEADER OF
BRITISH PETROLEUM, WOULD THE RESULT HAVE BEEN
THE SAME TODAY?
Apologized and took
responsibility for the situation
Used wisdom
References: Hayward, Tony. (2010). A message from Tony Hayward. Retrieved from: http:///www.youtube .com.a message.from.tony.hayward_small.3gpp Hayward, Tony. (2010). BP CEO Tony Hayward I’d Like my life back Retrieved from: http:///www.youtube.com.bp.ceo.tony.hayward.id.like .my.life.back. Hayward, Tony. (2011). Deposition. Retrieved from:http:///www.youtube.com. the video BP doesn_t want you to see mp4_small (2).3gpp News, Tylenol. (1982). Tylenol News 1982_medium.mp4. Retrieved from: http:///www.youtube.com.Tylenol News 1982_medium.mp4 Petroleum, British. (2013). BP Energy Outlook 2030 America’s Energy Future. Retrieved from: http://www.youtube.com/watch?v=2B3dLWv7HNs&feature=player_detailpage Tylenol, News Clip. (1982). Tylenol News Clip. Retrieved from: http:///www.youtube .com.News Clip Tylenol