Strategic Management And Leadership Skills At BP
British Petroleum is one of the largest energy companies providing fuel for transportation, energy for heat and light, petrochemicals products, retail services for customer’s everyday life worldwide. It was founded in 1909 as an Anglo Persian oil company which is British Petroleum Company in 1954. Its Headquarters is in London, United Kingdom. Carl-Henri Sven berg is the chairman of the company.
By using world class assets, technologies, capabilities BP operates the frontiers of the energy industry and know how to meet energy needs and deliver long term value. The ingenuity and determination of the world people have new brought resilience to BP from deep beneath the ocean to complex refining environments, from remote typical islands to next generation’s biofeedback.
Their products are BP petroleum and derived products, BP service stations, air BP aviation fuels, Castro motor oil, ARCO gas stations, am/pm convenience stores, Oral service stations solar panels. The BP group operates across six continents, and our products and services are available in more than 100 countries including Asia, Africa, Australia, Europe, North America and South America.
The BP brand The Helios awards Code of conduct his values. BP wants to be recognised as a great company – competitively successful and a force for progress. We have a fundamental belief that we can make a difference in the world. We help the world meet its growing need for heat, light and mobility. We strive to do that by producing energy that is affordable, secure and doesn’t damage the environment. BP is progressive, responsible, innovative and performance driven.
(See at a glance of BP appendix 1)
Task 1 – Management and Leadership
1.1 Explanation the link between strategic management and leadership.
Strategic Management deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of ¬rms in their external environments. It entails specifying the organization’s mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives, and then allocating resources to implement the policies and plans, projects and programs.
“There is strategic consistency when the actions of an organization are consistent with the expectations of management, and these in turn are with the market and the context.” Strategic management includes not only the management team but can also include the Board of Directors and other stakeholders of the organization. It depends on the organizational structure. (Arieu – (2007)
Leadership is the route of social control where one person can solicit the aid and maintain of others in the achievement of a common assignment.
“Leadership is ultimately about creating a way for people to contribute to making something extraordinary happen.” (Alan Keith of Genentech)
According to Ken “SKC” Ogbonnia, “Effective leadership is the ability to successfully integrate and maximize available resources within the internal and external environment for the attainment of organizational or societal goals.”
The link between Leadership and Management
1. Achieving goals is the main aim of Leadership and management.
2. Leadership and management both organize and operate resource.
3. Leadership and management serve up as a linkage between subordinates (or followers) and top management (or board).
4. Leadership and management depend on subordinates (or followers) and consequently try to encourage them to get profit.
1.2 The impact of management and leadership style on strategic decision in case of British petroleum.
People work together with the leader and the community, certainly the level of their commitment to the organisation, depends on the management style. The bigger the organisation the more complicated it is to achieve the necessary level of co-operation. To improve the style of management can by itself increase the efficiency of operating; get better results obtained, the way in which assets are being used, by about 25%. The results to be achieved by improving the style of management are therefore very considerable from the point of view of a good return and satisfaction to the stakeholders overall change companys strategic decision .
According to case study, British Petroleum implicated in the Gulf of Mexico oil spill to cut costs and save time which is contributed to the disaster. BP hadn’t sufficient controls in place to make certain safety. There are specific risks is identified include;
1. Defective design for the cement used to seal the base of the well.
2. That seal identified as a problem although was “incorrectly judged a success”.
3. Workers are failed to identify the first signs of the near future blow-out.
“We have a leadership style that probably is to directive and doesn’t listen sufficiently well,” Tony Hayward, Chief Executive Officer of BP. “The top of the organisation doesn’t listen hard enough to what the bottom of the organisation is saying.”
It is certain that stakeholders reaction, interest, delegations, depends on leadership style, behave and the style of management. They have changed the CEO of BP. This is a great impact of the business profit and strategic decision.
(See the case study appendix 2)
1.3 Evaluation of leadership styles can be adapted to different situations:
Leadership style means a leader’s behaviour and it is the effect of the personality, philosophy and experience of the leader.
Autocratic or authoritarian style
Autocratic leadership style is all decision-making powers are centralized in the leader, as with dictator leaders. This style permits swift decision-making and one person decides for the whole group and keeps each judgment to himself until he feels it is needed to be mutual with the rest of the group. Autocratic style in use at BP which is affects the whole organization. BP believes the services are second to none, to all our consumers large or small. High standard of workmanship engaged in the manufacture of our products combined with an excellent delivery service by means of our own transportation, come together to make sure customer satisfaction, all determined by the managing director.
Participative or democratic style:
Democratic leadership style favours decision-making by the group, such as leader gives instruction after consulting the group. They know how to win the support of their group and can inspire them effectively and optimistically. Decisions of the democratic leader are made by the consultation with the group members and involvement by them. Angolan Leadership Development Programme (ALDP), i-coach academy worked directly with BP Angola to design and deliver a coaching programme to work together with a leadership development plan aimed to support Angolan Leaders. In Angola BP has done in democratic style to develop the skills of the leader.
Laissez-faire or free rein style:
A laissez-faire style leader does not lead but leaves the group exclusively to itself; such a leader allows maximum freedom to subordinates, such as they are given a free hand in deciding their own policies and methods. Leadership styles depends on situation. In an emergency, an autocratic leadership style may be most effective. However, a highly encouraged and united team with a harmonized level of proficiency, here democratic or laissez-faire style might be more effective. Laissez-faire style is also using at BP like local management team are doing many activities in according to local rule. Sometimes employees and teams work to cooperate or dealing with customers. Employees are receiving regular training and feedback. So, which style is followed it is deepened on situation.
2.1 Review the impact that selected theories of management and leadership style on BP strategy
Transformational leadership means a leadership move towards which causes modify in persons and social systems. It’s created valuable and positive change in the supporters with the end goal of developing supporters into leaders and enhances the enthusiasm, confidence and performance of his supporters through a range of mechanisms. Simon is a man of action and determined to refocus BP’s core performance. He introduced 1-2-5 Project and as a leader, he determined to start this strategy which could save the big business and enabled him to achieve recognition from his workers and therefore it would be easier for them to trust on his strategies.
Transition leaders are liable for gains support from and assurance of others, takes responsibility, provides positive feedback to others, builds relationships with consumers, upper class and scheme team members, inspires and motivates, provides clear path, creates opportunities for little wins. Angolan Leadership Development Programme (ALDP) is the example of transition leadership and management style. BP and Tana Holness the BP Angola L&D Manager has implemented this style.
2.2 Create a leadership strategy that support organizational direction
Transformational Leadership in a Transnational Organization
According to case study BP is a transnational organization and need to be changed into transformational leadership. In BP, Robert Horton’s and David Simon’s leadership styles in the situation of the turmoil of the oil industry in the past 25 years and the roles the leaders played in the transformation procedure at British Petroleum. The two men’s goals were nearly one and the same, their individual style determined failure for one and achievement for the other. In this case address issues of transformation, general and business cultures in a transnational organisation.
(See the case study appendix 3)
3.1 Use appropriate methods to review current leadership requirement
Hayward described a typical direction and control organization that is excessively fixed on cost-cutting and consumed with fire combating. His frank explanation demonstrated his aspiration to change BP’s leadership theory from a transactional theory into a transformational theory. Year 2010, Hayward’s own leadership style came under inspection when BP’s flash in the Gulf of Mexico killed 11 employees. Hayward was in-charge over the last 3 years and had a leadership style dissimilar than BP’s business culture. He unsuccessful to create positive change linked to cost-cutting, safety, and ecological sustainability. So, he established resilient leadership by protecting his business and ethical leadership style for taking the definitive accountability, his occupation.
Corporate social responsibility is a form of corporate self-regulation included into a business model. CSR strategy functions as an integrated, self-regulating method whereby business monitors and ensures its active observance with the strength of the law, moral values, and global norms. Main goal of CSR is to embrace accountability for the company’s activities and cheer an optimistic impact through its performances on the environment, customers, workers, communities, shareholders and all members of the public sphere. Moreover, CSR-focused businesses could proactively encourage the public attention by encouraging neighbourhood growth, expansion and voluntarily eliminating practices that damage the public sphere, despite of legitimacy. It is the planned enclosure of public interest into business decision-making, the core business of the company and the honouring of a triple bottom line and that is people, planet, and profit.
British Petroleum continuously strives to be a force for good quality and strength for human improvement in every country it work. In parallel, BP enthusiastically pursues superiority in all operations. Superiority is founded on accountability and starts with liable operations that support safety and integrity, diminish the impacts to the environment and offer a healthy and safe work environment for its workers. Thus, CSR method is essential for BP future grow BP counts itself among the world’s innovative and progressive companies. BP believed that long-term prospect depends on their first-class ecological and social performance and superiority in all operations. Its represents the way BP do business. Responsible operations and development for the long-term common benefit of all parties and this is the method to current leadership requirement.
3.2 Plan for the development for the future situations requiring leadership
BP leadership development plan for the future situations could be
Adapted Kammy Hatnes’ pyramid
Level 1 Get it done
Planning is most important and the first measure in any management assignment and the most often unseen or deliberately skipped movement. They are Six P’s of planning
“Proper Planning Prevents Pretty Poor Performance”. To develop leadership skills need to plan to go to level 4 of the pyramid to make a good leader for future situations.
As a manager he has to be able to organize teams, responsibilities and projects in order to obtain the team’s job done in the most professional and effective manner. New manager may organize a small work team or a project team. Same skills will be required later on in profession whilst have to organize a branch or a new division of the company. In the beginning managers should also be capable to organize offices, records systems. As a new manager is required to organize him, time, and space so one can be most effective.
It is the action movement. One has designed and prepared the work. Now, one has to direct his team to obtain the job done. Begin by making confident the goal is obvious to every person on the team. They all identify what the goal, their role is in getting the team to the goal, they have everything they need (resources, authority, time, etc.).
It is the most and important part of the success of the leader. A good leader must find the problem and control everything he does. Managing everything means controlling everything with good manner, establishing performance standards, reporting or monitoring performance, comparing performance against standards, identifying unsatisfactory performance and pursuing appropriate action to correct significant deviations in performance.
Level 2 – Develop Staff (Team Management Skills)
At the level 2 team management skills are vital for management job.
2. Motivating Individuals
4. Training and Coaching
Some training, coaching, motivational programme of an organization etc are important for developing staff.
Level 3 – Improve Self (Personal Development)
Personal management skills need to be a successful manager. self management and time management are the personal management skills.
To development as a manager need to assigning work to employees and coaching them to produce best work, motivate and discipline them, build a team for them, inspire them. Self management is including by taking ownership of your job, do right things, dont waste time, identify the important and urgent things and do it properly.
In management profession, you have learned that there is no sufficient time to do all the things you believe required to get finished. It’s essential to success as a manager that be capable at managing time. Making a list focus on the important ones, practice to make it done, control over meetings you attend, the project schedule have a good chance of staying within the project budget, all of these need to be done as a manager in time.
Level 4 – Success (Leadership)
At the peak of the Management Skills Pyramid, the most in developing success in management profession is leadership. This way one can make the switch from manager to leader. Leadership, a vital management talent, is the capability to encourage a group of individuals toward a common goal.
4.1 Plan the development of leadership skills for a specific requirement
Angolan Leadership Development Programme (ALDP) and BP’s leadership framework are the plan to develop of leadership skills.
BP Angola had to set up its own development programme and taking place the Angolan Leadership Development Programme (ALDP) in 1999. Good plan must change leader and benefit for the company. To develop leadership skills ALPD is the best method for future. Like this programme if BP work all over the world, they can improve leadership skills and fulfil all goal.
The most appropriate coach can help understanding the individual’s challenges and knowledge of each coach as well as their strengths. Face to face coaching made most excellent use of the time obtainable given the organisational pressures of the instant and development plans for illustration stakeholder management and delegation, are also include as the programme evolved.
To supporting an individual’s development, this is a demanding feature of the agenda as all participants but principally team leaders are under tremendous pressure preparing for “first oil” Recognising that buy-in is critical to achievement of the project and that they understood the role in partnering with the trainer and the learner in offering feedback alongside development plan objectives and performance.
BP’s leadership framework
Strong leadership as well as high performance depend on having a straightforward and dependable view of what leadership means during BPs varied businesses. Therefore, stick to a single, ordinary management structure, with a obvious and purposeful set of expectations. Leaders in BP will
1. Value expertise, e.g. by developing competence in the team.
2. Energize people, e.g. by encouraging teamwork, giving and receiving open feedback.
3. Act determinedly, e.g. by setting a clear direction and considering tough decisions through.
4. Deliver results, e.g. by driving safe, reliable and efficient operations and continuous improvement.
This framework is used right through BP to help select, assess, develop and reward leaders.
4.2. Report on the usefulness of methods used to plan the development of leadership s
Angolan Leadership Development Programme (ALDP) is very important to develop leadership skills all around the world. By i-coaching BP can develop
1. Effective leadership positions,
2. Stakeholder management,
3. Influencing skills,
4. Performance management,
5. And feedback skills
6. Remove argument between the pressures to perform in the day to day and the pressures of the leadership programme.
7. Three ways of review sessions between the Team Leader, Coach and Participant get extensive logistical challenges and gain more value from face to face coaching.
8. It will increase confidence as a leader.
9. It develop the truth of taking ownership, individual accountability and emotional growth
10. To take challenge, ability to see others from different point of view and influence though acknowledging and in respect of difference.
11. To enhance the consciousness of existing leadership style and its link to the leadership behaviours which reproduce the organisation’s core ethics & leadership capability structure.
12. To discover the current strengths and growth requirements as leaders and also improve the motivation and self-confidence.
13. To increase capabilities to complete different teams and to deliver results from part to part others.
14. To enhance skills to control pressure, balance individual and professional life.
15. To maintain existing team leaders to develop coaching, leadership style and grow leadership development challenges across the organisation.Order Now