Developing Strategic Management And Leadership Skills At Bp Management Essay

British Petroleum is one of the largest energy companies supplying fuel for transit, energy for heat and visible radiation, petrochemicals merchandises, retail services for client ‘s mundane life worldwide. It was founded in 1909 as an Anglo Iranian oil company which is British Petroleum Company in 1954. Its Headquarters is in London, United Kingdom. Carl-Henri Sven berg is the president of the company.

By utilizing universe category assets, engineerings, capablenesss BP operates the frontiers of the energy industry and cognize how to run into energy demands and present long term value. The inventiveness and finding of the universe people have new brought resiliency to BP from deep beneath the ocean to complex refinement environments, from distant typical islands to following coevals ‘s biofeedback.

Their merchandises are BP crude oil and derived merchandises, BP service Stationss, air BP air power fuels, Castro motor oil, ARCO gas Stationss, am/pm convenience shops, Oral service Stationss solar panels. The BP group operates across six continents, and our merchandises and services are available in more than 100 states including Asia, Africa, Australia, Europe, North America and South America.

The BP trade name The Helios awards Code of behavior his values. BP wants to be recognised as a great company – competitively successful and a force for advancement. We have a cardinal belief that we can do a difference in the universe. We help the universe meet its turning demand for heat, visible radiation and mobility. We strive to make that by bring forthing energy that is low-cost, unafraid and does n’t damage the environment. BP is progressive, responsible, advanced and public presentation driven.

( See at a glimpse of BP appendix 1 )

Undertaking 1 – Management and Leadership

1.1 Explanation the nexus between strategic direction and leading.

Strategic direction:

Strategic Management trades with the major intended and emergent enterprises taken by general directors on behalf of proprietors, affecting use of resources, to heighten the public presentation of i¬?rms in their external environments. It entails stipulating the organisation ‘s mission, vision and aims, developing policies and programs, frequently in footings of undertakings and plans, which are designed to accomplish these aims, and so apportioning resources to implement the policies and programs, undertakings and plans.

“ There is strategic consistence when the actions of an organisation are consistent with the outlooks of direction, and these in bend are with the market and the context. ” Strategic direction includes non merely the direction squad but can besides include the Board of Directors and other stakeholders of the organisation. It depends on the organisational construction. ( Arieu – ( 2007 )


Leadership is the path of societal control where one individual can beg the assistance and maintain of others in the accomplishment of a common assignment.

“ Leadership is finally about making a manner for people to lend to doing something extraordinary happen. ” ( Alan Keith of Genentech )

Harmonizing to Ken “ SKC ” Ogbonnia, “ Effective leading is the ability to successfully incorporate and maximise available resources within the internal and external environment for the attainment of organisational or social ends. ”

The nexus between Leadership and Management

1. Achieving ends is the chief purpose of Leadership and direction.

2. Leadership and direction both organize and run resource.

3. Leadership and direction serve up as a linkage between subsidiaries ( or followings ) and top direction ( or board ) .

4. Leadership and direction depend on subsidiaries ( or followings ) and accordingly seek to promote them to acquire net income.

1.2 The impact of direction and leading manner on strategic determination in instance of British crude oil.

Peoples work together with the leader and the community, surely the degree of their committedness to the administration, depends on the direction manner. The bigger the administration the more complicated it is to accomplish the necessary degree of co-operation. To better the manner of direction can by itself increase the efficiency of operating ; acquire better consequences obtained, the manner in which assets are being used, by about 25 % . The consequences to be achieved by bettering the manner of direction are hence really considerable from the point of position of a good return and satisfaction to the stakeholders overall alteration companys strategic determination.

Harmonizing to instance analyze, British Petroleum implicated in the Gulf of Mexico oil spill to cut costs and salvage clip which is contributed to the catastrophe. BP had n’t sufficient controls in topographic point to do certain safety. There are specific hazards is identified include ;

1. Defective design for the cement used to seal the base of the well.

2. That seal identified as a job although was “ falsely judged a success ” .

3. Workers are failed to place the first marks of the close future blow-out.

“ We have a leading manner that likely is to directing and does n’t listen sufficiently good, ” Tony Hayward, Chief Executive Officer of BP. “ The top of the administration does n’t listen difficult plenty to what the underside of the administration is stating. ”

It is certain that stakeholders reaction, involvement, deputations, depends on leading manner, behave and the manner of direction. They have changed the CEO of BP. This is a great impact of the concern net income and strategic determination.

( See the instance survey appendix 2 )

1.3 Evaluation of leading manners can be adapted to different state of affairss:

Leadership manner means a leader ‘s behavior and it is the consequence of the personality, doctrine and experience of the leader.

Autocratic or autocratic manner

Autocratic leading manner is all decision-making powers are centralized in the leader, as with dictator leaders. This manner permits fleet decision-making and one individual decides for the whole group and keeps each judgement to himself until he feels it is needed to be common with the remainder of the group. Autocratic manner in usage at BP which is affects the whole organisation. BP believes the services are 2nd to none, to all our consumers big or little. High criterion of craft engaged in the industry of our merchandises combined with an first-class bringing service by agencies of our ain transit, come together to do certain client satisfaction, all determined by the pull offing manager.

Participative or democratic manner:

Democratic leading manner favours decision-making by the group, such as leader gives direction after confer withing the group. They know how to win the support of their group and can animate them efficaciously and optimistically. Decisions of the democratic leader are made by the audience with the group members and engagement by them. Angolan Leadership Development Programme ( ALDP ) , i-coach academy worked straight with BP Angola to plan and present a coaching programme to work together with a leading development program aimed to back up Angolan Leaders. In Angola BP has done in democratic manner to develop the accomplishments of the leader.

Laissez-faire or free rein manner:

A individualistic manner leader does non take but leaves the group entirely to itself ; such a leader allows maximal freedom to subsidiaries, such as they are given a free manus in make up one’s minding their ain policies and methods. Leadership styles depends on state of affairs. In an exigency, an bossy leading manner may be most effectual. However, a extremely bucked up and united squad with a consonant degree of proficiency, here democratic or individualistic manner might be more effectual. Individualistic manner is besides utilizing at BP like local direction squad are making many activities in harmonizing to local regulation. Sometimes employees and squads work to collaborate or covering with clients. Employees are having regular preparation and feedback. So, which manner is followed it is deepened on state of affairs.

Undertaking 2

2.1 Review the impact that selected theories of direction and leading manner on BP scheme

Transformational leading

Transformational leading means a leading move towards which causes modify in individuals and societal systems. It ‘s created valuable and positive alteration in the protagonists with the terminal end of developing protagonists into leaders and enhances the enthusiasm, assurance and public presentation of his protagonists through a scope of mechanisms. Simon is a adult male of action and determined to refocus BP ‘s nucleus public presentation. He introduced 1-2-5 Project and as a leader, he determined to get down this scheme which could salvage the large concern and enabled him to accomplish acknowledgment from his workers and therefore it would be easier for them to swear on his schemes.

Passage Leadership

Passage leaders are apt for additions support from and confidence of others, takes duty, provides positive feedback to others, physiques relationships with consumers, upper category and strategy squad members, inspires and motivates, provides clear way, creates chances for small wins. Angolan Leadership Development Programme ( ALDP ) is the illustration of passage leading and direction manner. BP and Tana Holness the BP Angola L & A ; D Manager has implemented this manner.

2.2 Create a leading scheme that support organisational way

Transformational Leadership in a Multinational Organization

Harmonizing to instance survey BP is a multinational organisation and demand to be changed into transformational leading. In BP, Robert Horton ‘s and David Simon ‘s leading manners in the state of affairs of the convulsion of the oil industry in the past 25 old ages and the functions the leaders played in the transmutation process at British Petroleum. The two work forces ‘s ends were about one and the same, their single manner determined failure for one and accomplishment for the other. In this instance address issues of transmutation, general and concern civilizations in a multinational administration.

( See the instance survey appendix 3 )

Undertaking 3

3.1 Use appropriate methods to reexamine current leading demand

Hayward described a typical way and control organisation that is overly fixed on cost-cutting and consumed with fire combating. His blunt account demonstrated his aspiration to alter BP ‘s leading theory from a transactional theory into a transformational theory. Year 2010, Hayward ‘s ain leading manner came under review when BP ‘s flash in the Gulf of Mexico killed 11 employees. Hayward was in-charge over the last 3 old ages and had a leading manner dissimilar than BP ‘s concern civilization. He unsuccessful to make positive alteration linked to cost-cutting, safety, and ecological sustainability. So, he established resilient leading by protecting his concern and ethical leading manner for taking the unequivocal answerability, his business.

Corporate societal duty is a signifier of corporate self-regulation included into a concern theoretical account. CSR scheme maps as an integrated, self-acting method whereby concern proctors and ensures its active observation with the strength of the jurisprudence, moral values, and planetary norms. Main end of CSR is to encompass answerability for the company ‘s activities and hearten an optimistic impact through its public presentations on the environment, clients, workers, communities, stockholders and all members of the populace sphere. Furthermore, CSR-focused concerns could proactively promote the public attending by promoting neighbourhood growing, enlargement and voluntarily extinguishing patterns that damage the populace sphere, despite of legitimacy. It is the planned enclosure of public involvement into concern decision-making, the nucleus concern of the company and the honouring of a ternary underside line and that is people, planet, and net income.

British Petroleum continuously strives to be a force for good quality and strength for human betterment in every state it work. In parallel, BP enthusiastically pursues high quality in all operations. Superiority is founded on answerability and starts with apt operations that support safety and unity, decrease the impacts to the environment and offer a healthy and safe work environment for its workers. Therefore, CSR method is indispensable for BP hereafter grow BP counts itself among the universe ‘s advanced and progressive companies. BP believed that long-run chance depends on their excellent ecological and societal public presentation and high quality in all operations. Its represents the manner BP do concern. Responsible operations and development for the long-run common benefit of all parties and this is the method to current leading demand.

3.2 Plan for the development for the hereafter state of affairss necessitating leading

BP leading development program for the hereafter state of affairss could be

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Adapted Kammy Hatnes ‘ pyramid

Degree 1 Get it done


Planing is most of import and the first step in any direction assignment and the most frequently unobserved or intentionally skipped motion. They are Six P ‘s of planning

“ Proper Planning Prevents Pretty Poor Performance ” . To develop leading accomplishments need to be after to travel to level 4 of the pyramid to do a good leader for future state of affairss.


As a director he has to be able to form squads, duties and undertakings in order to obtain the squad ‘s occupation done in the most professional and effectual mode. New director may form a little work squad or a undertaking squad. Same accomplishments will be required subsequently on in profession whilst have to form a subdivision or a new division of the company. In the beginning directors should besides be capable to form offices, records systems. As a new director is required to form him, clip, and infinite so one can be most effectual.


It is the action motion. One has designed and prepared the work. Now, one has to direct his squad to obtain the occupation done. Get down by doing confident the end is obvious to every individual on the squad. They all identify what the end, their function is in acquiring the squad to the end, they have everything they need ( resources, authorization, clip, etc. ) .


It is the most and of import portion of the success of the leader. A good leader must happen the job and control everything he does. Pull offing everything means commanding everything with good mode, set uping public presentation criterions, coverage or monitoring public presentation, comparing public presentation against criterions, placing unsatisfactory public presentation and prosecuting appropriate action to rectify important divergences in public presentation.

Degree 2 – Develop Staff ( Team Management Skills )

At the degree 2 squad direction accomplishments are critical for direction occupation.

1. Motivation

2. Motivating Persons

3. Mentoring

4. Training and Coaching

5. Supervision

Some preparation, coaching, motivational programme of an organisation etc are of import for developing staff.

Degree 3 – Better Self ( Personal Development )

Personal direction accomplishments need to be a successful director. self direction and clip direction are the personal direction accomplishments.

Self direction

To development as a director demand to delegating work to employees and training them to bring forth best work, motivate and train them, construct a squad for them, animate them. Self direction is including by taking ownership of your occupation, make right things, dont waste clip, place the of import and pressing things and make it decently.

Time Management

In direction profession, you have learned that there is no sufficient clip to make all the things you believe required to acquire finished. It ‘s indispensable to success as a director that be capable at pull offing clip. Making a list focal point on the of import 1s, pattern to do it done, control over meetings you attend, the undertaking agenda have a good opportunity of remaining within the undertaking budget, all of these demand to be done as a director in clip.

Degree 4 – Success ( Leadership )

At the extremum of the Management Skills Pyramid, the most in developing success in direction profession is leading. This manner one can do the switch from director to leader. Leadership, a critical direction endowment, is the capableness to promote a group of persons toward a common end.

4.1 Plan the development of leading accomplishments for a specific demand

Angolan Leadership Development Programme ( ALDP ) and BP ‘s leading model are the program to develop of leading accomplishments.

BP Angola had to put up its ain development programme and taking topographic point the Angolan Leadership Development Programme ( ALDP ) in 1999. Good program must alter leader and benefit for the company. To develop leading accomplishments ALPD is the best method for future. Like this programme if BP work all over the universe, they can better leading accomplishments and carry through all end.

The most appropriate manager can assist understanding the person ‘s challenges and cognition of each manager every bit good as their strengths. Face to confront training made most first-class usage of the clip gettable given the organizational force per unit areas of the blink of an eye and development programs for illustration stakeholder direction and deputation, are besides include as the programme evolved.

To back uping an person ‘s development, this is a demanding characteristic of the docket as all participants but chiefly team leaders are under enormous force per unit area fixing for “ first oil ” Recognizing that buy-in is critical to accomplishment of the undertaking and that they understood the function in partnering with the trainer and the scholar in offering feedback alongside development program aims and public presentation.

BP ‘s leading model

Strong leading every bit good as high public presentation depend on holding a straightforward and reliable position of what leading means during BPs varied concerns. Therefore, stick to a individual, ordinary direction construction, with a obvious and purposeful set of outlooks. Leaderships in BP will

1. Value expertness, e.g. by developing competency in the squad.

2. Stimulate people, e.g. by promoting teamwork, giving and having unfastened feedback.

3. Act unfalteringly, e.g. by puting a clear way and sing tough determinations through.

4. Deliver consequences, e.g. by driving safe, dependable and efficient operations and uninterrupted betterment.

This model is used right through BP to assist choose, buttocks, develop and honor leaders.

4.2. Report on the utility of methods used to be after the development of leading s

Angolan Leadership Development Programme ( ALDP ) is really of import to develop leading accomplishments all around the universe. By i-coaching BP can develop

1. Effective leading places,

2. Stakeholder direction,

3. Influencing accomplishments,

4. Performance direction,

5. And feedback accomplishments

6. Remove statement between the force per unit areas to execute in the twenty-four hours to twenty-four hours and the force per unit areas of the leading programme.

7. Three ways of reappraisal Sessionss between the Team Leader, Coach and Participant get extended logistical challenges and derive more value from face to confront coaching.

8. It will increase assurance as a leader.

9. It develop the truth of taking ownership, single answerability and emotional growing

10. To take challenge, ability to see others from different point of position and influence though acknowledging and in regard of difference.

11. To heighten the consciousness of bing leading manner and its nexus to the leading behaviours which reproduce the administration ‘s nucleus moralss & A ; leading capableness construction.

12. To detect the current strengths and growing demands as leaders and besides better the motive and assurance.

13. To increase capablenesss to finish different squads and to present consequences from portion to portion others.

14. To heighten accomplishments to command force per unit area, balance person and professional life.

15. To keep bing squad leaders to develop coaching, leading manner and turn leading development challenges across the administration.