Organizational Leadership

3551 Words Mar 9th, 2015 15 Pages
BP’s Deepwater Horizon Gulf of Mexico Oil Spill: What Went Wrong
Elizabeth D. Jones
Southern New Hampshire University
Student: 0811981

Abstract
On April 20th 2010 the Deepwater Horizon rig, operated by BP, exploded unleashing millions of barrels of oil into the Gulf of Mexico resulting in the largest marine oil spill in history. What makes this spill so significant is the fact that the spill continued unabated for three months causing the declaration of a state of emergency across several states (Bozeman, 2011). The purpose of this study is to highlight the significant issues of management and leadership within BP and point out how the poor decisions surrounding the spill deeply hindered their corporate reputation. Additionally, the
…show more content…
The remainder of this case study will focus on the significant issues of management and leadership within BP and how the poor decisions surrounding the spill deeply hindered their corporate reputation. It will offer solutions that had BP had in place prior to the disaster it would have likely been prevented as well as if BP were to establish them now they can prevent something like this from happening again.
Risk management and mitigation
“Failure, in organizations and elsewhere, is deviation from expected and desired results. This includes both avoidable errors and the unavoidable negative outcomes of experiments and risk taking” (Bozeman, 2011). Risks are an inherent component of projects and without proper attention, planning and identification of all potential risks an organization will inevitably crash. “Risk is an uncertain event or condition that, if it occurs has a positive or negative affect on project objectives. A risk has a cause and, if it occurs, a consequence” (Larson & Gray, 2010, p. 211). Within the drilling industry there are many inherent risks that mainly center on safety and as such safety should be of utmost importance. “The method used in drilling for oil offshore in deep water, which is generally defined as water more than 1,000 feet deep, relies on very sophisticated technology... but with high-end technology also comes high risk. The margin for