Organizational Chart

Tony Hayward
CEO

Byron Grote
CFO
Vivienne Cox
Ian Conn Andrew Inglis
Chief Exec , Alt
Chief Exec R&M Chief Exec, E&P Dana Deasy
CIO
Energy
Charlie Forte
VP IT & Operation
 Organizational Structure
An organizational structure consists of activities such as task
allocation, coordination and supervision, which are directed
towards the achievement of organizational aims.
BP has an enormous execution gap.
Several companies and government organizations were
involved in the operation of the Deepwater Horizon rig.
BP is the well’s owner, Transocean owns the rig, and
Halliburton provides oil rig services.
In addition, the Minerals Management Service regulates
offshore drilling .
It resulted in a lack of clear accountability and poor-quality
decisions.
The rig’s crew was unclear about whether BP’s or
Transocean’s managers were in charge after the explosion,
and that confusion led to inaction in the critical moments
following the rig explosion.
The fragmented nature of the government oversight
contributed to poor decisions being made well before the
explosions.
BP asked for and got exemption from an environmental
review, permission to test the blowout preventer at lower
pressure, and permission to delay mandatory testing of the
blowout preventer. Each of these decisions was made by a
different agency that did not appear to know what the others
had done.
BP is the well’s owner, the organization that contracted with
the other companies for service and had the primary interface
with government agencies.
A good structure enhances accountability, coordination, and
communication.
Plus, it ensures that decisions are being made as close to the
action as possible.
BP should have worked with the other companies and
government agencies connected to the rig to put in place an
operational structure that clarified the responsibilities, level of
authority, and expectations for all involved.
 Corporate Governance
Corporate governance is the set of processes, customs,
policies, laws, and institutions affecting the way a corporation
(or company) is directed, administered or controlled.
Board Culture of Corporate Governance, defines corporate
governance as 'an internal system encompassing policies,
processes and people, which serves the needs of shareholders
and other stakeholders, by directing and controlling
management activities with good business savvy, objectivity,
accountability and integrity.
The perceived quality of a company's corporate governance
can influence its share price as well as the cost of raising
capital.
The mission statement says that it should engage the creative
talents of its employees, develop and apply leading cost-
effective technology and intellectual creativity to enhance
innovation and new ideas.
It should carry on its business in an environmentally
responsible manner, and develop cleaner energy and
renewable energy sources.
On 3/JAN/2002 Standard & Poor's assigned corporate
governance score (CGS) of 'CGS-9.6' to UK-based BP p.l.c.
The impact of the BP oil spill in Gulf of Mexico has resulted in
a drop in its credit rating, downgraded by rating agencies
such as Moodys, Standard and Poor and Fitch.
After the spill BP shares have fallen by 45%. It is also the most
heavily fined energy company in the US.
The response from the BP Board on this disaster has been
deafening silence.
BP has tried hard to position itself as the "green" oil company.
As such company wasn't as proactive with production risk
analysis as they were with their PR campaigns.
Investors should scrutinize BP's Board governance structures
and demand a full and immediate accounting of their failures
and the actions that they will take to strengthen their project
planning and Environenmental , Health and Safety (EHS)
policies and procedures.
Support research that focuses on the quality of management
defined not only in financial terms but also with regard to EHS
concerns.