British Petroleum (BP): Case study

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British Petroleum (BP): Case study

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What was BP's overall strategy with respect to organizational processes since Horton's appointment as CEO, and through Simon's term? Did this strategy focus on people management and, if yes, in what way? Was it successful or unsuccessful? How? On June 1992, Robert Horton, Chairman and CEO of British Petroleum (BP), was ousted after only two years as the CEO. The other non-executive members of the board had had some doubts about Horton for some time. There weren't specific events that could explain this feeling, however, that prompted the directors to act. Lord Ashburton said, "It was an accumulation of feelings, of events, all quite small in themselves, we felt the company would be better organized if we had a change of individual". In 1957, R. Horton had joined the company as an engineering trainee, at that time, beginning his steady rise through the organization. Through years, Horton proved to be adaptable and street smart. He transformed his image from a Brit reputation and americanized himself and became popular. When he was named CEO of standard oil, he showed the necessity for personnel cuts and was able to convince people about this strategy by persuading that even if it's bad for employees, it's good for the company. As he said, "I wanted employees to know that my mission was to help the company recover, not to go around smashing things up". During his tenure as CEO, he restored morale and kept it high even through extensive corporate change. He was named BP's CEO in 1889.

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What was BP's overall strategy with respect to organizational processes since Horton's appointment as CEO and through Simon's term? Did this strategy focus on people management and, if yes, in what ways? Was it successful or unsuccessful? How?
1. What about Robert Horton
2. What about David Simon
Describe first Horton's and then Simon's leadership styles. Identify the differences, if any, between them. How do you perceive these two leaders and, in view of class readings and discussions, how appropriate or inappropriate in your opinion their actions might have been?
Do you believe Horton's and Simon's leadership styles to be determined by personality or do you see them as acquired or both? Bearing in mind class discussions and readings, justify your answer
What similarities and / or differences can you detect between the leadership styles of Emma, Jobs, Horton and Simon? When analysing your personal leadership style, who would you more easily identify with and why?

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[...] What about Robert Horton On June 1992, Robert Horton, Chairman and CEO of British Petroleum was ousted after only two years at the help. The other non executive members of the board had had some doubts about Horton for some time. There's wasn't specific events that could explain this feeling, however, that prompted the directors to act. Lord Ashburton said was an accumulation of feelings, of events, all quite small in themselves; we felt the company would be better organized if we had a change of individual”. [...]

[...] In fact he always fixed objectives and wanted to go beyond them and he exercises team spirit with his subordinates. Moreover he displays fair play with Horton, for instance. While he was in competition with him for the job of CEO in 1989, he supported him for the OPEN project in 1990. Simon was not an academic and he was more open-minded than his predecessor. He had always been sociable and could easily adapt to other cultures due to the education given by his family. That is the reason why he did not play a role with his subordinates. [...]

[...] The British firm and was not receptive to this type of management. Indeed, the principal failure in his management way is that he did not respect the culture differences between American and British people. He tried to set a method which functioned in the US without taking into account the British way of life. As a result, the non-executive directors took action and the board Horton that BP needed a change at the top. On June 1992 Horton resigned from his position of Chairman and CEO of BP. [...]

[...] However I believe that if there is a good agreement between people, the team spirit is more propitious, the targets will be more easily respected. And a sensitive and honest person is favourable to establish this sort of climate within a team. Conclusion To conclude, each director could manage in a different way but the main difficulty is to choose the leadership style which fits to your character, your team, and your company. A lot of criteria should be taken into account before establishing a management method. And this method should always evolve according to the environment of the company. [...]

[...] During his four-year experience in the United States Horton made effort to “Americanize” himself. Indeed his reputation of a “feat Brit” was a well- known fact before his coming in Cleveland. He understood that he should transform his behaviour to be respected by is employees. So he adopted the American style and became a model of authoritarian and very directive manager. This way of management was smooth running and he became very popular in Ohio so that he started a public social career. [...]

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