Question

In: Operations Management

3. With your knowledge of crisis action planning, research BP’s Gulf Oil Spill and evaluate their...

3. With your knowledge of crisis action planning, research BP’s Gulf Oil Spill and evaluate their preparedness and response to a crisis. If you use a source, make sure you list it at the end of your discussion.

Solutions

Expert Solution

BP has not been very effective at crisis management. Here are some of their misses:

* BP anticipated lawsuits and offered $5,000 to potential plaintiffs to not enter litigation. This isn't very ethical. If they felt responsible, they should have been ready to put forth their case.

*THE CEO of the company - Tony Hayward - should have waited on the analysis and crisis assessment but was very quick in underestimating the impact of a disaster this size - May 18th, 2010 - "I think the environmental impact of this disaster is likely to be very, very modest,"

* He further showed denial by neither owning the accident nor feeling accountable. In his words, he said " Ah, this wasn’t our accident.

This was a drilling rig operated by another company. It was their people, their systems, their processes." Blame game should never be used during a crisis without valid proof.

* Apart from denial, he also rallied for the sympathy vote. Additionally, these were also his quotes -
"What the hell did we do to deserve this?" (April 29th, 2010)

*"I want my life back" (May 31st, 201Rapid and effective exchange of information is key during crisis. At a time when BP should have worked together in recovery and keep the public and other stakeholders informed, instead, it was reported that BP’s Web site mentioned a only minimal number of advisories per day with links to social media.

*The CEO is the face of the company. And his statements showed arrogance, insensitivity, misjudgement and lack of accountability.

Sources:
http://edition.cnn.com/2010/OPINION/06/21/kimberly.bp.management.crisis/
http://www.cbsnews.com/news/bp-oil-spill-crisis-management-how-not-to-do-it/


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