Question

1. March 23, 2005: Explosion at BP's Texas City

2. 2006: Two leaks at BP's giant Prudhoe Bay

3. April 20, 2010: Explosion aboard the Deepwater Horizon

Question: for each!!!

With the three problems faced by BP

a. Why are these unacceptable add facts and data

b. Create tactics for corrections that weren’t used

c. Create a timeline to implement tactics

d. Measure how this is gonna work

Answer 1

a) The given facts and data are unacceptable as they portray that the company did not learn anything from its mistake and kept continuing its business operations as it is. After the first explosion event, the company was required to conduct a root cause analysis to identify the major problem causing the explosion. After identifying the root cause, the company needed to develop strategic solutions and integrate them in its existing business model.

b) Immediately after the first explosion event in the company, BP was required to conduct a holistic root cause analysis to identify the main reason behind the explosion.

The leadership of BP needed to be more proactive and needed to have ears to the ground. This way, they would have been able to perceive the inhibitions at the ground level, the propagation of risk and negligence in the system. Clear direction in the leadership would have brought more clarity in the business strategy and thus would have made the business processes more concrete and focused. An impactful leadership would have been able to establish clear communication lines across the system, the absence of which was one of the major factors to this tragic scenario.

Comprehensive risk assessment of each business process must be conducted. Risk mitigation strategies need to be developed and incorporated in the business processes. A crisis and disaster management plan must always be ready with the managers.

c) The timeline will be dependent on how comprehensively the company is trying to find a way out from the given problem. The short term objectives can be achieved within 3 months and long term objectives can be fulfilled in a year.

d) The performance rate and accuracy of the given tactics can be analysed by studying the company’s performance data post the integration of the risk mitigation plan. The company needs to observe if any similar incident happened post the study and incorporation of risk mitigation plan. This will highlight the effectiveness of the measures adopted by the company.