Skip to main content

Improvement Project of Science Construction CS

Abstract Science Construction’s business is in planning, developing and building road projects. The major of its clients are municipalities, city governments, and other public sector entities. While the bankruptcy rates for these clients is very low, when economic downturns happen, their ability to pay in a timely fashion also suffers. This leads to businesses such as Science Construction needing to take on additional debt and to find creative methods in order to stay afloat during times of recession. Methods such as selling accounts receivables at discounted rates and taking larger lines of credit through banks and other lending institutions are some of the ways organizations can remain viable when their cash inflows have turned into a trickle. Science Construction is asking the Turkish Courts to postpone their bankruptcy proceedings for a year while they attempt to restructure. Through this, suggestions such as forcing shareholders to pay their debt to the organization, gaining credi...

British Petroleum and Deepwater Horizon

This paper discusses a case study about the Deepwater Horizon environmental disaster that
occurred in 2010. It will present a summary regarding the work culture and leadership that
existed at the time of the event within the British Petroleum organization, and how this directly
impacted the disaster happening. Additionally, it presents the issues that lead up to the disaster,
identifies stakeholders, and explores how radical change might be implemented within British
Petroleum if the same culture were present today.
Keywords: leadership style, radical, change

Background

British Petroleum (BP) is a multinational company based in the United Kingdom, as of
2018 the company had over seventy thousand employees, and total equity at over $101 billion
U.S. dollars. In April 2010, BP’s Macondo oil well located in the Gulf of Mexico blew out
causing the Deepwater Horizon rig to explode. The result was seventeen injured, eleven dead,
and one of the world’s worst environmental disasters that lasted over two and a half months.
Numerous attempts were made to cap the oil well, but all failed which allowed 171 million
gallons of oil to leak into the Gulf causing horrific damage to the wildlife, coastal communities,
and businesses that depended on the Gulf for their livelihoods.
Stakeholders

The stakeholders most affected by the Horizon Deepwater disaster are the injured and
dead employees, the environment, the Gulf of Mexico wildlife, coastal communities, coastal
businesses, the state of Louisiana, the state of Texas, the state of Mississippi, the state of Florida,
the fossil fuel industry, the economy, and British Petroleum employees.
Corporate Culture

Nine years later, history holds the dysfunctional leadership that was in control of BP
responsible for the weak response to the crisis. Corkindale (2010) states that then “CEO Tony
Hayward presided over an organizational culture that sanctioned extreme risk-taking, ignored
expert advice, overlooked warnings about safety issues and hid facts” (2010, para 4). This
incubated an organizational culture that was extremely flawed and influenced BP’s poor initial
response to the situation. Instead of owning their accountability, BP’s leadership chose to try and
spin to deflect blame. According to Corkindale (2010), in a crisis “leaders must recognize when a
crisis cannot be spun” (2010, para 5).

Examples of the toxic culture at BP can be found in a letter from the House Energy and
Commerce Committee to then BP CEO, Tony Hayward, that outlined findings at the time of the
disaster. (Moynihan, 2010). The findings state “the project was late and costing at least $500,000
a day in overruns; engineers were hurrying; they cut corners on the well design and safety
features and tests.”

Furthermore, according to an AP report, in an email, four days before the well exploded a
BP official wrote of an engineer’s recommendation to use 21 “centralizers”: “It will take 10
hours to install them. I do not like this.” Later that day, another official recognized the risks of
proceeding with only six centralizers but commented: “Who cares, it’s done, end of story, will
probably be fine.” (Moynihan, 2010, para 4). These findings speak volumes towards the
company’s attitude regarding change, if it cost time and money, they did not care for it. Another
issue is that in the late 1990s the asset federation model was put into practice and this allowed
each site manager (rig manager) to manage their “asset” autonomously. This also allowed each
manager to be compensated based on its performance (Ingersoll, Locke, & Reavis, 2012). This
created a culture where there was no incentive to share information among managers regarding
any risk management best practices. (Ingersoll, Locke, & Reavis, 2012).

The leadership style that would have benefitted instilling radical change within BP at this
time would have been a CEO that recognized versatility as a requirement in leading change.
Someone who was aware that acquiring information, strategizing, and sharing information were
the keys to planning out a pathway for ethical and functional work culture.
Pathway from Fossil Fuels to Renewables
Radical change calls for five distinct stages and according to Ingersoll, Locke, & Reavis
(2012), they are planning, enabling, launching, catalyzing, and maintaining. Additionally, each

stage has its focus and a leadership style that works best with it. These characteristics are detailed
in the table below.
Table 1

Radical change stages

Note. Adapted from “BP and the Deepwater Horizon Disaster of 2010“, Ingersoll, Locke, &
Reavis (2012).
Assuming that the organizational culture at BP is still dysfunctional, implementing
radical change would require a reset from the top down with respect to culture. Having the
company move from fossil fuels to renewable energies would entail a planning phase to acquire

information on climate change and how the use of fossil fuels plays into it. It would mean
looking at how the employee structure at BP would be affected; possible job losses versus gains.
Gathering information on the possible economic gains from any switch.
In the enabling phase any initial plans that were developed during the planning phase
would be shared with employees. Requests for feedback on the plans would be sought out, with
the key of involving employees at the grassroots level. The launch would entail beginning the
steps of any transitions, ensuring that all are participating, having a regular check in and progress
process to see where all are at in the change. In the catalyzing phase the focus would be on the
people affected by the change. For example, are there opportunities being offered in the plan for
retraining into occupations for the renewable energy markets that BP would be going into? If so,
are employees being supported and encouraged to take the training?
In the maintaining phase, the focus would still be mostly on the people involved.
Ensuring that there is an “ongoing emphasis on input and involvement” (Ingersoll, Locke, &
Reavis, 2012, p. 12). At this stage of the process, progress is also still being gauged in a longterm
sense. Change maintenance is just that, maintaining a momentum over a long period of time
and keeping the people engaged with it.

References
Corkindale, G. (2010, June 28). Five Leadership Lessons from the BP Oil Spill.
Retrieved from https://hbr.org/2010/06/five-lessons-in-leadership-fro.
Ingersoll, C., Locke, R., & Reavis, C. (2012). BP and the Deepwater Horizon Disaster of
2010. Cambridge, MA. This work is licensed under the Creative Commons Attribution-
Noncommercial-No Derivative Works 3.0 Unported License. Retrieved from:
https://mitsloan.mit.edu/LearningEdge/CaseDocs/10%20110%20BP%20Deepwater%20Horizon
%20Locke.Review.pdf.
Moynihan, C. (2010, June 18). MercatorNet: Management attitudes behind the
Deepwater Horizon disaster suggest another problem the company needs to address. Retrieved
from https://www.mercatornet.com/articles/view/bps_creaky_ethical_machinery/.

Comments

Popular posts from this blog

Luxury Watch

We are so used to our hands or legs that so long they are okay we don’t really realize their value. But when any of them is damaged by some accident; we know how indispensable they are! So the watch we wrap in our wrist or the shoes we wear in our feet. We are equally used to them as if they are as natural as where we fasten them. Imagine the plight when your watch is not ticking or you are walking bare footed. Here we are going to discuss about the watch. In our world we all use watch for common need, which is time. But various watches offer various other features too; like date, temperature or some of them serve as compass as well. They are of various price bands and designs. Amongst them few stand apart. They are designer luxury watch . Using them will put you apart from the crowd. Do you know; when you own a designer luxury watch , you may be only on the earth to own such a watch with such features and design. This itself is a matter of pride. If you gift someone you love w...

CHITTARANJAN IN 50s

Hi, Everybody, sometime some of you keep me asking about my days and time at Chittaranjan. This is natural, after all there are gaps of decades between most of you and me ! This has prompted me with an idea of writing this to share my old good days with those of you who are interested. Indian Railway under the British colonial rule was another group of companies with different British Managements. Since the different railway networks under all of them were used mutually for their own benefits. At places, different railway companies had the facilities of repairing and maintenance of their locomotives and passenger and goods carriages. To name a few, like Anda, Adra, Howrah, Liluah, Mughal sarai, Jhajha , these are they places I mention since they are quite closed by our loving Chittaranjan. The locomotives were imported from Manchester, England and few from Canada and Australia , all under the Union Jack. A good number of railway operational staffs were anglo Indians,...

Unfriendly Indian TV Channels

  Watching TV serials in the evening; is most favourite pass-time perhaps all over the world. When TV was yet to become household source of entertainment here (India) ; we heard about soap-operas becoming popular;  where Television permeated the drawing rooms. Obviously they were popular in foreign lands. We used to hear of them from various magazines. I still remember Kabir Bedi, becoming popular with Italian TV and audiences. Do you know long before we became familiar with TV; Pakistan had matured TV channels. I remember watching Lahore TV; sitting at UN camps in Indo-Pak border areas. In early 70s of last century; I watched quiz shows produced by Polka Ice-cream and that was quite popular show of Lahore TV. It took decades to present such programs here in India. However during the early days of  Durodarshan; ‘Humlog’  the unending serial ruled the roost for long. Then came a period when Durdharshan produced few best serials like ‘Buniyad’, ‘Tamash’ and many more....