BP Case Study Introduction (BP Case Study

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In general, crisis management focuses on three major activities: 1) What are the most appropriate methods of response to both real and perceived crises?, 2) What models and scenarios need to be defined that constitute a crisis and should engage a necessary and appropriate response?, and 3) What is the communication plan and chain that is necessary to ensure that the emergency phase of crisis management is handled appropriately? (Fink, 2000). However, there is a clear difference between the leadership style needed from a multinational corporation and that needed from a local franchise. The overall theme, though, regardless of how correct it is, is indeed set by BP. Consumers see the corporate logo- the sign, and the image is transferred from international to local.

Using a model developed by leadership experts Kouzes and Posner we can find at least three major leadership gaffes committed at both the BP international level and local BP Station Manager level regarding the Deepwater crisis:

Issue

BP Corporate

BP Local Station Manager

Foresight

Lacked foresight to see how serious the crisis was and support its franchisees.

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Unable to get cogent and complete information from corporate office. Management in a vacuum.

Focal Leader

Hayward of BP was voice, but not focal leader.

Local manager put employees in front of customers; did not make a statement, press release, or strong community message.

Reactionary rather than decisive

Blame was everywhere, but failed to accept responsibility early on While not directly at fault, reactionary by calling police almost as if anticipating trouble.

Kouzes and Posner's model for leadership, though, shows us the following were missed.....

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