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How not to handle a crisis situation

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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



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

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