Business Continuity and Crisis Management - BP Oil - Case Study Example

Report College BUSINESS CONTINUITY AND CRISIS MANAGEMENT INTRODUCTION Even though business organizations put measures in place to curb different levels of crisis that may befall their organizations, they still tend not to have complete control over their business environment. For this reason, both private and public sectors undertaking business ventures are advised to have appropriate business continuity management (BCM). Crisis that can befall a business organization ranges from terrorist attack, accidents (e.g. spillage, plant explosion, car crash etc.), and also technology disruptions. All these situations are unpredictable situations, and scan led to serious after-effects that if not addressed immediately and accurately. Several businesses suffer disruptions yearly around the world; therefore, good crisis preparations to prevent such occurrences that threaten viable operations of businesses should be put in place. In these report, I will cross-examine the BP OIL company spillage at the ocean gulf on Mexican Gulf. BUSINESS CONTINUITY AND CRISIS MANAGEMENT DURING BP OIL CRISIS The BP oil spillage is considered the worst catastrophe ever in U.S history. It killed up to 11 and injured 17 others people it also polluted the vast water body. Though the well is located over 5,000 feet beneath the water’s surface, it is still polluted. Underwater cameras showed the BP pipes was leaking only to be capped 87 days later (July 15,2010) at a time about 3.19 barrels of oil had leaked already. Transocean (owner of the Deepwater Horizon rig), government agencies, and BP workers tried to control the spread of the oil to beaches, resorts and other coastal ecosystems after the explosion. They used floating booms to absorb those on the surface and chemical oil to break down those under water. Scientists and researchers were also deployed in the Gulf region to collect data and till to date they are still trying to understand the impact of the spill on aquatic, marine and human life (Coppola 110). The spill affected 16,000 total miles of coastline that include coasts of Texas, Mississippi, Florida, Texas, and Alabama. Despite being capped the gushing well still, washes up on shores thus causing long term damages to the people living around there. Since some, oil floated to the water surface to form slicks they were quickly spread by the wind that pushed them. 22 mile oil plume was reported during this spill. Part of this spill also sunk to the seafloor after gluing together particles in water such as phytoplankton to form marine snow. Deep sea carols ended up being damage. In response to this tragedy, the President Obama’s administration announced their intention of creating a $20 billion spill response fund. Several cleanup methods were devised and put to test. Though cleaning up the ocean is a difficult task something had to be done. The type of oil and amount greatly affect how it spreads within an area, alike the type of water body also plays a role for instances; tides, tides and air temperature this makes putting measures in place to curb any spillage difficult as one may not work for the other if need arises. The most common method of cleanup is controlling its spread with physical barriers since oil floats on water and spread out forming thin slicks called sheen that looks like a rainbow when it spills different tools can be used in most cases skimmer boats are used. Absorbents that either absorb or adsorb oil are then used to mop up traces that remain since oil stick on its surfaces. Some of these materials are natural organic like peat moss, straw, hay and sawdust while others are natural inorganic materials like volcanic ash, sand, and clay. Others are synthetic material made of plastic. The pipe utilized rest on specific spill as they are affected by weather conditions too. This spillage had far-reaching consequences; it may have wiped out microscopic population of planktons and microbes including animal larva e.g. fish. Seabirds were harmed the oil on the surface. Pelican nesting in Minnesota that feed in the Gulf of Mexico during winter were found by scientist to be laying eggs containing chemical compounds from petroleum that are feared to lead to developmental and reproductive problems, these shows that the spills affect even those that do not depend on the sea water directly. In addition, the western population of Atlantic Bluefin tuna larva that is considered endangered has been killed by the BP spills. Gaps in species population were created as a result of this spill thus endangering the food web. Though much was done to correct the mistake and accident that had occurred in the spillage, a federal judge in New Orleans in his ruling said that BP’s gross negligence and willful misconduct was the cause of the huge oil spillage that occurred in the Mexican Gulf in 2010 and the company’s irresponsible behavior subjected it to a fine of as high as $4,300 a barrel under the Clean Water Act. The BP Company could have been open to up to a fine of as much as $ 17 billion. The company therefore put aside $ 3.5 billion for potential clean water. These add to the expenses of the company thus reducing their net profit and at the same time BP shares tumbled nearly 6 percent on the news. Even though, BP never agreed with these decisions of the court. There were blame games on whose fault it was and who did not do their part well between the three partners who took part in the plant. Each had to take responsibility for the damage caused by the spillage causing all of them to pay fines that were divided among them by the court. According to scientific theory, organizational activities were carefully measured and both activities and results specified. The management also tended to be same. Here workers were rewarded and also punished. Taylor’s theory appeared to work well even in large organizations and also those with mechanized and routinized organizations just like the BP case. If the administration had applied this technique, their plant spill would probably be evaded. Since the plant required command center that would administer punishment and reward to employees, they would have been more careful with the plant processes, making routines in plant would also ensure that workers were very conversant with what they are supposed to be doing as the repeat it over and over. Max Weber on the other hand proposed the bureaucracy and focused on division of organizational hierarchy, establishing strong lines of authority and also control. Weber also suggested that organizations develop comprehensive and detailed standard operating procedures for all routinized tasks. The BP would have created distinct hierarchy between its workers in their daily operations. There should also bureaucracy in the organization, given that the plant had several parts that needed to be brought together at the end of the worked day. This theory would have proved handy in the BP plant running as authority and control would keep the workers on their toes. The human relation theory on the other hand arose due to the dehumanizing situations in which people; it also recognized the need for cultivating supervisory. Contingency theory states that when managers make decisions they take into account all aspects of current situations and also those key to situations at hand. On BP situation the plants floor was designed to shut down and consequently stop crude oil from coming up to the surface, for some unknown reasons the floor failed to close when it was needed to save the plant and its workers too (Diane 45). Such shows that someone did not do their job well. System theories, on the other hand, require managers to interpret patterns and events in the workplace. System can be described to have both inputs and output just as the case of oil exploration by BP. Also in a system one part cannot work when the others are malfunctioning just as the plants daily operations needed collective effort of both workers and the management, collective decision making is also necessary for full production in organizations. Chaos theory on its part suggests that events in organization are rarely controlled and turns out to create problems in the organizations daily dealings and their eventual downfall therefore requiring more energy to maintain stability or fall apart in the end. In case crisis are not prevented and they end up occurring solutions must be sort of normalcy to return further problems also be kept at bay. This step requires the employees, management and the workers collaboration for it to work effectively and produce desired results. Effective crisis management depends majorly on the communication channels in place and how effective they are .Organizations can put in place structures such as websites they post both announcements and also problems and the organizations views on certain issues that either affect production or their general wellbeing. Such sites should be made accessible to everyone concerned. The Corporate Leadership Council (2003) points out the value of a crisis website designed to help identify how problems can be identified and be dealt with appropriately. Intranet sites are also recommended for organization RECOMMENDATIONS Negligence accounts for the spillages that might have been on the part of the workers or the management itself. There was no substantial report by the management and stakeholders on where they diagnosed the problem to have originated. The public who are the most affected in these circumstances needed an explanation of how such a huge mistake could have been made by people who were supposedly experts in their field of operation. The government was also put to task since the citizens expected them to protect and be accountable when such occurrences are experienced. If this organization had placed systems through which every person is given responsibility and made answerable in case anything happens. This way more serious and caution will be put in the operations of the organization even when supervision is minimal. The management on the other hand will take the responsibility of ensuring that the workers are doing what is stipulated by the organizations laws. They should also bridge the space between the different levels of administration as this ensures the smooth flow of information from all parts of the organization. Decision-making also lays on their shoulders forcing them to do research on emerging issues in their organization and the numerous ways of setting and solving arising problems. Organizations can conduct exercise at least annually to the crisis management plan they have in place. Such will leave them with the assurance of the real state of the organization at large; moreover, make informed decisions on the daily running of the organization. Problems that might build up within the organization can be identified on time and solution provided before they get out of hand. Stakeholders on their part should be in a position to give full information on what the organization is up to at all time. The flow of information, meetings that constitute all parties should always be organized and done frequently and also whenever need arises (Fishcher 57). This step will not only keep everyone on the same page but also do away with the conflicting information reaching the public which is the targeted market for the organizations produce thus keeping everyone on the safe side. A crisis management plan can also be helpful organizational operation, it can be used as a reference source by the governors of organizations. However, it will ensure that the sequence and easy problem shooting thus saving time. If this plan is undertaken in steps designed the organization can also use it as a reference source in case something needs to be done. A team can also be put in place to update them. A computer system can be included to make the process more effective. Within this team a leader should be appointed to control their function and represent them in meetings held by the organization. A crisis response team should also be put in place to repair the image of the organization after an unpleasant occurrence and also act swiftly after a disaster. This section should be quick and rather simple and be in a position to act on short notice. The organizations workers who are exposed to potential danger should be assured of safety. Though the BP Company had placed life saver boats, they were not enough to save all the workers on board at the time of catastrophe forcing others to swim their way out. To avoid such situations, life-saving equipment’s should be equal and able to accommodate all workers on board at every particular time. However, it will reduce the rate of injuries and even possible deaths (Bankoff 67). Organizations should self-reliant in rescue operations this will enhance response in cases of emergencies quick response are met, they can collaborate with various security and rescue organization to ensure all their equipment are working accordingly. Everyone who works in an organization should be trained on how to protect themselves and others in cases of disasters; they can be trained to detect abnormal situations in their various areas of work and what best to do in order to prevent any injuries. Given that disasters can be prevented but still occur, organizations should set aside funds that can be used to replace damaged property and if it has huge capital reserve those that can be used to compensate workers or even those affected by disasters occurring as a result of organizations operation. CONCLUSION In conclusion, it has openly come out that different organizations require different crisis actions depending on their location, and line of operation, therefore each organization should modify present solutions to disaster management to suit their cases and situational needs. In addition, it will save them the problem of applying wrong methods to solve issues just because it worked for other organizations. BIBLIOGRAPHY BANKOFF, G., FRERKS, G., & HILHORST, D, 2004, Mapping Vulnerability Disasters Development and People. London, Earth scan. BANKOFF, G., LÜBKEN, U., & SAND, J, 2012, Flammable cities: urban conflagration and the making of the modern world. Madison PHILLIPS, B. D, 2014, Qualitative disaster research, The University of Wisconsin Press COPPOLA, D. P, 2007, Introduction to international disaster management. Amsterdam, Butterworth Heinemann. http://site.ebrary.com/id/101514 Diane Pub. Co. WALSH, D. W. (2012). National incident management system: principles and practice. Sudbury, MA, Jones & Bartlett Learning. ohost.com/login.aspx?direct=tru FISCHER, H. W, 1998, Response to disaster: fact versus fiction & its perpetuation : the sociology of disaster. Lanham, Md, University Press of America. GALLANT, B, 2008, Essentials in emergency management: including the all-hazards approach. Lanham, Md, Government Institutes55..ebscGOSS. (n.d.). Guide for all hazard emerge MCENTIRE, D. A, 2014, Disaster response and recovery: strategies and tactics for resilience. STRINGFIELD, W. H, 2000, Emergency planning and management ensuring your companys survival in the event of a disaster. Rockville, Md, Government Institutes. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=499529. ncy operations planning. [S.l.], WALSH, D. W, 2012, National incident management system: principles and practice. Sudbury, MA, Jones & Bartlett Learning. e&scope=site&db=nlebk&db=n WATTERS, J, 2010, The business continuity management desk reference: guide to business continuity planning, crisis management & IT disaster recovery. Northampton, Leverage Pub. labk&AN=94796 WATTERS, J, 2014, Disaster recovery, crisis response, and business continuity a management desk reference. [New York, N.Y.], Apress. BLYTH, M, 2009, Business continuity management building an effective incident management plan. Hoboken, N.J., J. Wiley & Sons. http://www.books24x7.com/marc.asp?bookid=31920. MCENTIRE, D. A, 2007, Disciplines, Disasters and Emergency Management the Convergence and Divergence of Concepts, Issues and Trends from the Research Literature. Springfield, Charles C Thomas Publisher, LTD. http://public.eblib.com/choice/publicfullrecord.aspx?p=556266. GRAHAM, J., KAYE, D., & ROTHSTEIN, P. J, 2006, A risk management approach to business continuity aligning business continuity with corporate governance. Brookfield, Conn, Rothstein Associates. http://www.lib.sfu.ca/cgi-bin/validate/books24x7.cgi?bookid=14172. Read More