Let’s review the agenda and go over what will be covered today….Please feel free to interrupt me if you have any questions about what will be covered today.
Let’s talk about the direction of BP….
The direction of the BP continues is that we want to capitalize on our strengths. Leader in the industry Enhance safety and risk In areas where we have fell short, be vigilant to earn our trust back Provide good, strong leadership and management Be an asset in the communities we operate Understand the politics of the communities we serve Continue to develop our systems including contractors (This is BP’s Strategic Focus)
Focus on safety at all times Be clear and deliberate in our communications Let’s not be too complicated in delivering our goals Identify where we want to have a presence in the communities we function Keep clear and consistent communication
In this case the alternatives that I have laid out are not really “Alternatives” that we realistically want to consider, but let’s review them anyway….
Alternatives to what I have laid out are: Mistrust by the community Lack of generated revenue Increased injuries to our team Lack of knowledge regarding BP Misperceptions regarding BP Possible increase revenue by the competition This is not the direction we are striving for and In this industry cost competition is only half the battle. We have to set ourselves apart from others in the energy field.
The following are a summary of our BP goals that ultimately effect how we function as a team, operate in communities and how we do business.
Depending on the nature of the issue, management and leadership will convey to the board as necessary.
Communication is essential in all that we do, every step of the way.
Performing safety checks and tightly monitoring issues before an incident arises help BP stay ahead of potential hazards. When situations do arise it’s very important they we are controlling the situation to eliminate further risk.
This is the vision and where we have to be in 2020 in order to keep BP flourishing…..
Strategic plan as stated earlier: We strive to be a safety leader in our industry, a world-class operator, a good corporate citizen and a great employer. We are working to enhance safety and risk management tearn back to trust and grow value. Tactical Plan: Our first priority is to keep a relentless focus on safety. Good management of risk serves to protect the people at the front line, the places in which we operate and the value we create. Operational: We are working to become a simpler business, with a clear focus on what we do best. Our distinctive capabilities include exploration, deepwater, giant fields, natural gas, downstream, technologies and relationships. Contingency Plans: BP devises contingency plans for its proposed drilling in preparation for a possible deep-water accident.
BP Global November 22 2012Presentation to the Board of Directors
Agenda Organizational Direction Situational Analysis Alternate Goals and Plans Goal and Plan Evaluation Goal and Plans Selection Implementation Conclusion
Organizational Direction We strive to be a safety leader in our industry, a world-class operator, a responsible corporate citizen and a great employer. We are working to enhance safety and risk management, earn back trust and grow value. Keeping a relentless focus on safety is a top priority for us. Good management of risk helps to protect the people at the frontline, the places in which we operate and the value we create. We understand that operating in politically-complex regions and technically- demanding geographies, such as deep water and oil sands, requires particular sensitivity to local environments. We continue to enhance our systems, processes and standards, including how we manage contractors. ("Bp", 2012)
Situational Analysis Mitigate and eliminate situations that put the company at risk Goal transparency is key to building trust and relationships Simplify goals so interpretations are clear Have a broader presence in the communities we serve Communicating is key to building trust and relationships
Alternatives Mistrust by the community Lack of generated revenue Increased injuries to our team Lack of knowledge regarding BP Misperceptions regarding BP Possible increase revenue by the competition
Goals Recognize potential for our presence to impact the lives of indigenous communities Sensitivity to community displacement as a result of our company projects Complete Revenue transparency with governments, non- governmental organizations and international agencies Manage environmental sensitivities and the potential impacts on communities Create a culture of Safety
Oversight Day-to-day risk identification and management occurs in the group operations and functions, with the approach varying according to the types of risk we face. Oversight and governance occurs at board, executive and function levels to help foster effective group-wide oversight, business planning and resource allocation, intervention and knowledge sharing.
Realizing the Opportunity Production Increasing potential to sustain growth to 2020 Efficiency Projects: improve capital efficiency Drilling: close gap to best well in each basin Production costs: maintain momentum Refining and Marketing Safety is key Be a Pillar in the community Costs: return to below 2004 levels Continue production to keep costs low Refining: targeting break-even in similar environment to 2009 ("Bp", N.D.)
Planning…. Strategic Plan Tactical Plan Operational Plan Contingency Plan
References BP. (2012). Retrieved from http://www.bp.com/sectiongenericarticle800.do? categoryId=9036153&contentId=7066889 BP. (N.D.). Retrieved from http://www.bp.com/liveassets/bp_internet/globalbp/ST AGING/global_assets/downloads/I/IC_bp_strategy_pres entation_march_2010_slides.pdf