The Transformation of Bp

Topics: Knowledge management, BP, Future Pages: 6 (772 words) Published: December 7, 2008
The Transformation of BP

Chapter 5-4

| Eric | Summer | Helen | Lidya | Mandy |


• Introducing BP

• Transforming BP

• BP Superior performance through Knowledge Sharing

• BP Building Cooperate Reputation Through facing the Public Responsibility

• Conclusion and Future Consideration

Introducing BP

BP at a Glance

BP is of one of the world's largest energy companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items

Turnover $285 billion (year 2000).

Number of employees 102,900(year 2000)

Exploration Active in 26 countries

Refineries 21

Transformation of BP


• The fall in oil prices after the Gulf War in 1987 with stock market collapse .

• Face the danger of public concern for the effect of energy consumption towards environment. (Global warming)

Immediate solution (ST):

Throughout a series of mergers and acquisitions with Amoco in 1998 and then with ARCO in 1999.

Face the risk of climate change, social responsibility by putting together the corporate and citizenship

Management strategy (LT)

BP and Knowledge Sharing

Building Platform for Superior Performance

Sharing Knowledge at BP (1)
Performance Leaders: Atomic Structure

Organizational changes/characteristics that can be found at BP

Despite BP size and the complexity of its operations, it is a very flat team based organization where people freely exchange information and knowledge (Trust and common interest)

Knowledge must be replicated throughout the company.

Remove hierarchy and alter information flows to encourage the sharing of knowledge

Management Structure

Sharing Knowledge at BP (2)
Setting the Targets: The Performance Contract

Creating a Learning Organization

To enhance the depth, breadth and quality of conversation at all levels

Knowledge to flow within and across BUs.

People at all levels, individually and collectively, are continually increasing their capacity to produce results they really care about.

Performance Target

Sharing Knowledge at BP (3)
Providing the Stretch: The Peer Challenge

management’s role in the transformation

Encourage people to capture the information that company needs in order to able to use knowledge repeatedly. (Creating purposeful conversation)

Keep a record of the people who have the know-how to solve a problem so that others can find them when needed. (Leveraging through peer assist)

Worldwide KS sharing through intranet (BP Virtual Team)

Critical factors that contributed to BP’s successful transformation

BP encouraged the development of knowledge & integration through conversation for the purpose of:

Motivated individuals; excel at building KS capital; forging distinctive relationship; create values

An organizational structure that allows face-to-face interactions and to form deep personal relationships

No boss but peers

Strategic planning process is to keep ideas flowing and to stimulate thinking

Evolving rather than pre-planned

Building of BP’s Reputation

Aligning organizational and individual value

Building of BP’s Reputation(1)

BP’s Continuous Problem of

Environmental impact of emission

Accused of funding private armies in Colombia

A Force For Good

It’s not enough to just provide wealth and resources to the host nation

To have a goal that are worth pursuing by both the company and community; that have to do with making society better

Reputation Building Strategy

Safety for everyone

Natural environment


To invest for the community of people

The Reorganization of 2001

Balance complexity against ownership (Company structure)

Reconsolidate business units (too much complexity. too many interactions)

GVP distributed as Presidents or Regional...
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