In: Operations Management
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.
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/