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Measurable and Non-Measurable Results – BP Oil Spill Case

Measurable and Non-Measurable Results – BP Oil Spill Case

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Published by Jorrian
Jorrian Gelink's Various Articles on Peter Drucker, Business, Management, Economics and Social Media.
Jorrian Gelink's Various Articles on Peter Drucker, Business, Management, Economics and Social Media.

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Published by: Jorrian on Apr 26, 2011
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05/12/2014

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Jorrian.com  Central Hub for Management Knowledge | Jorrian Gelink1
Measurable and Non-Measurable Results ± BP Oil Spill Case
 With results only existing on the outside, only the customer determines what the organizationsmeasurables are. Customers do not quantify results however, the organization determines what theychoose to quantify. Organizations have different measurables depending on what they contribute tosociety.For example, at an animal shelter, the quantifier is the amount of animals incoming and outgoing fromthe shelter. An oil refiner will look at how fast it is processing and distributing oil; whereas, governmentmay be looking towards how many of its citizens are satisfied within the jurisdiction. These are the
quantifiable results,
an executive or logician can look at the results and create formulas to effectivelychart the organization towards success. However, this is not the
only 
way to track results.Every organization has the human element attached to it. Even automated systems such as theemergence of applications throughout the Internet are developed and maintained by a group of individuals. It is human tendency to act and react based on emotion; even the analytical mathematicianor determined scientistare driven by emotion. Society works in a similar fashion; emotions are drivenbased on external forces directly or indirectly caused from organizations.
These non-measurable eventsthat cannot be recorded now will turn into measurable results in the future.
A severe accident occurred within BPs oil sector in early 2010, resulting in parts of the Gulf of Mexicobeing covered in oil from a decimated rig leaking up to 5000 barrels a day. The measurable results areclearly there: the dollars lost in oil spilling into the ocean, the extra costs in cleanup and repair and thelost asset of this rig caused from an explosion. What are not tangible are the consequences of thisecological disaster and its impact to the corporation in the future.Non-tangibles include:
y
 
The emotion towards the contamination of wildlife and the coasts along the United States.
y
 
The questions of safety controls and contamination controls built within BPs systems.
y
 
The impact of multiple governments all coordinating on reducing this man-made disaster.
y
 
Investor trust of the organizations future after this disaster costing millions of dollars a day.These non-measurables cannot be recorded on a financial statement; they will continue to be outsideevents until the certainty of the future of BPs corporation is in place.Organizations consist of a conglomerate of people aiming for tangible results; whether measurable ornon-measurable. The nature of results exists only on the outside of an organization  the customers,investors, and society determines the profits; the inside of an organization is just a cost center creating aproduct in order to profit from. Profit can be determined in a variety of ways; profit does notnecessarily mean making money, but anything that can contribute to the organization. Determining the

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