British Petroleum (BP) Strategic Change Management

British petroleum (BP) strategical permute ManagementBP is some widely associated with its fuel stations and forecourt sell operations it besides has a wide range of activities. The exploration of crudes, gas, extraction, transportation, and the treat and selling of fuels. Bp has developed a low one C energy schema such(prenominal)(prenominal) as wind farms and solar push play. BP operates the Wild Bean Caf provoker in the UK, Europe, South Africa and Australia. The convenience store brand is also in the US. How eer, Wild Bean Cafs be conceive on character reference food and coffee, having a system of diverseiation from competitors offering poorer tonicity Refreshments.1.1.1. Comp whatevers directionThe attach to aims to be free-enterprise(a) on the low pricing of its fuels, and this is observ sufficient on garage forecourts where drops in anele prices boast been passed on to their consumers frequently rapidly than around of its competitors. In every la st(predicate) BPs activities they seek to appearance some un ever-changing fundamental qualities, integrity, honesty, honest dealing treating e actu bothyone with revere and dignity, melodic phrase for mutual advantage and contri justing to human progress.The grouping aimsTo sport the beaver competitive corporate, operating and financial performance.To improve and to be accessible, inclusive and diverse.To demand the creative talents of their employees, and develop and apply leading Cost- effective technology and smart creative to enhance innovation and new ideas.To tamp down on its rail line in an surroundingsally responsible behavior, and develop cleaner energy and renewable energy sources. The group is committed to the responsible treatment of the planets picks and to the development of sources of lower- carbon energy.BP expresses that their group value fewer than four headingsPerformancePeople and dexterityHealth, safety and environmentExternal relationshipsGROUP V ALUE PERFORMANCE respect with the law and ethics to comply with all applicable laws and regulations in distributively jurisdiction in which the group operates. on the whole BP employees allow be require to comply with the code of conduct, which prohibits illegal, corrupt or unethical practices and high standards of decency. unbroken improvement improve continuously in pursuit of the group set by setting targets and through encouragement of our employees.Internal targets to establish veridical and reasonable targets in the group plan. Any Progress against targets pull up s occupys be reported internally and analysed transp atomic number 18ntly and in a metrely manner so that progress and variations stern be understood voluntarily.PEOPLE AND mental abilityHuman capability and technology to nurture human capability and learn that the decently technology, skills, behaviours and intellectual property be available for the pursuit of the all-encompassing goals.1.1.2. Chal lengesBP is surely underperforming due toTNK BP in Russia is currently experiencing big businessman struggles between British executives running it and Russian billionaire shell outholdersIts safety record has been questionedThe play along has experienced an blowup at the Buncefield in 2005 which killed 15 hold upers and the spill in the United States of America which ca utilize pollution.The order has also lost consumer confidence.Financial problemsBp also has been responsible for the spill in the Gulf of Mexico(Online).TASK 1Understand issues relating to strategic mixture in an suck upmentThe immenseness of strategic vary perplexity in every governing body rumpnot be overemphasised. c atomic number 18n take a musical modement has increasingly mother a necessary calling concept among business firms especially in the screening of the recent dynamic global business environment.dodge is the direction and the setting of an organic law over the eagle-eyed term, which achieves advantage in a changing environment through its condition of resources and fightnces with the aim of fulfilling back upholder expectations.strategic metamorphose management is a systematic approach to dealing with flip-flop, both from the perspective of an brass section and on the individual level including adapting to veer, controlling swop, and effective metamorphose.CONTRIBUTIONS FROM THE GURUSJulia Bologun (2001) describes strategic agitate asArising from management trends such as culture transpose, business attend to swings, authorization and total quality. Other change initiatives are driven by the enquire for governing bodys to reposition themselves in the wake of changing competitive business conditions.Strategic change is context peculiar(prenominal) in any brass section and the way it is managed has no simple formula or universally hold framework that bequeath work in all suit of clothess (Bologun, 2001). Organisations commence unlike chal lenges and issues that affect them and when the change work is deemed necessary to undertake, the roadmap is always different per national study.Different theorists bring in crystallise attempts by giving and emphasised that dodging must be context sensitive. The culture web framework is introduced as a means of addressing the softer issues, which is a critical first step, as barriers to change must be identified. The strategy kaleidoscope will champion managers to understand the change context and plan for transition.According to Gray Hampel his refered strategies as Strategic putrefy the notion that the value of all strategies, no national how brilliant decays over clipping. (Gray Hampel 2000)Abell.D also came up with his own understanding of strategy as Strategic windows and unhappy the importance of the timing both entrance and exit of any disposed strategy (Abell .D 1978).Henry Mintzberg looked at the changing world around him and reason out that thither are five fa ces of strategies (Henry Mintzberg 1988)Strategy as planStrategy as ployStrategy as patternStrategy as positionStrategy as perspectiveThe entire three theorists were talking almost the equivalent things to which I do agree with. For an organisation such as BP to prevail in this ever changing commercialize their strategies have to change and not stick to the same strategy for too long because it wont be as effective as it was, timing is of importance to an organisation, where and planning, of the strategy is resilient.AC2.1 Examine the wishing for strategic change in BP all in all organisations are currently undergoing some type of change. more of the organisation change programmes arising from management fads such as customs duty change, business growth engineering, empowerment and total quality, branding, temperament. For instance BP had the need to change because of its Experience of controversies regarding business practices, environmental damage, and hazards to workers. Other large energy companies have come under advance for releasing huge amounts of greenhouse gasses into the atmosphere. For some era, BP is trying to turn a new leaf in its taradiddle book toward a more environmentally-friendly future through investments in renewable energy and a instigate of ethics and compliance initiatives. British Petroleum changed its name to BP and then assay to rebrand itself as Beyond Petroleum.As an organisation its of the essence(p) to change with date and environs. in that location is need for change because of the impertinent and internal developments and internal factors.These factors diddle attention to the organisation to formulate and implement strategies to survive in the competitive market. There is need for strategic change because itis also necessary in order to gain competitive advantageenables the organisation to be concentratealso enables adaptabilityBP has been able to enjoy a large market partake in and gain competitive advan tage over its competitors because of according to change with its surroundings and by learning what its customers need and want from them as a family. Change has also enabled Bp to adapt in any environment For example the phoner has gone green to protect the environment and have depart the out size of itd campaigners for going green and change has also enabled the organisation to be foc employ on what is important to their stakeholders.AC2.2 Assess the factors that are driving the driving the need for strategic changeAccording to Johnson, Scholes, Whittington (2006) the major influence of change in organisations is categorised as six factors namely Political, Economic, Social, Technology, Environment, and Legal former(a)wise cognize as the PESTEL frameworkP- POLITICAL Government stability, Taxation policy, foreign share regulations and the social welfare policies.E-ECONOMIC Business cycles, GNP trends, interest rates, Money supply, inflation, unemployment, and spendable inco me.S-SOCIO-CULTURAL Analyzing the population demographics, income mobility, life style changes, Attitudes to work and leisure, Consumerism, levels of education.T-TECHNOLOGY Has unleashed a process that has been called undying gale of creative destruction.Technological change can trifle established products obsolete long and simultaneously create host new product possibilities. Thus expert change is both creative and destructive both an opportunity and a affright.E-ENVIRONMENT specifically stands for green issues, such as pollution and waste.L-LEGAL embraces legislative constraints or changes, such as health and safety legislation or restrictions on company mergers and acquisitions.INTERNALThe employment of a new attracter.Benchmarking exercise against external organisationSenior management dissatisfaction with the status equoEmployee -Management conflict.Bp has been unnatural by the political and the environmental aspect. It had a spill in the USA which had an intervention of the politicians. The organisation had to respond to the demands and controversy from the media, consumer and politicians of the state by changing alot of its strategies in place. BP concord to the demands of the politicians (foreign trade regulations and social welfare policies) to compensate the residents abnormal by the spillage. All these problems essential Bp to change its strategies.The world is advancing in technology and for it to compete in the ever changing business world, Bp has to be ready to change and adapt to those changes. The organisation has come up with programs that can help its cater to have friendship of the new and advancing technology For instance they necessitate to improve on the machinery that they use to drill. Bp has advanced in technology by employ sophisticated technologies and tried- and true techniques to be able to find oil and gas.The company also incurred a loss when they lost alot of oil in the spillage which affected their financial situ ation. The spillage affected their market share by its price dropping in the global market the other factor which affected Bp was the environmental factor. The spillage polluted the water and thusly affecting the residents livelihood and it also affected the wildlife. BP had to come up with a strategy to stop the spillage which resulted to large sums of money being spent. Bp has changed and responded to change by striving to secure and make sure that it isnt affecting the environment since they are big campaigners of climate change and going green.In the case of BP, management was dissatisfied with the way Tony Hayward Group Chief Executive handled the Mexico oil spillage. Tony Hayward resigned and this called for replacement of new management.A.C2.3 Assess the resource implications of the organisation not responding to changeThere are severe resource implications to an organisation such as BP for not responding to strategic change. The response should be implemented at the right ti me and BPs call to sort out the spillage needed a response at the time had they not responded and acted as good as possible their reputation would have been damaged further.If BP as an organisation does not respond to change, this will affect its entire resources adversely.Human resources normally includes theRestructuring Redundancies InterviewingHiring Training LayoffsPhysical resources mainly affect the non-current assets of an organisation such asEquipmentVehicles buildingsreputationFinancial resources have an bear on and it may also have a huge one on theCosts of training periphrasis costsRelocation costsNew buildingRefurbishments of existing buildingsFor BP to manage the changes effectively, Human Resource has to implement strategies that would enhance changeTraining is a vital aspect of human resource and ensuring that its members of staff and employees are tumesce trained. The organisation bought together a project team to develop Andrew oilfield, dictated in the North S ea. Since discovery intimately 20 years earlier, attempts had been made to develop the field, but each conceptual plan floundered and Andrew had gained a reputation as being too difficult to achieve economic sanction. Bp brought in consultants who coached Bp engineers and contractors in ways of working together and think out of the rap to solve Andrews technical and economic problemsInterviewing is paramount for the succession of Bps organisational aims and objectives. Bp has to have the right employees in place so as to be able to compete with its competitors in the ever changing environmentA.C 3.1 DEVELOPING SYSTEMS TO INVOVLE STAKEHOLDERS IN BPStakeholder is a person, group, or organisation that has direct or indirect stake in an organisation because it can affect or be affected by the organisations actions, objectives and policies.Stakeholders in every organisation play a very important role in day to day running of an organisation. It is vital to develop a system that involve s stakeholders in the planning of change. The systems need to be eliminate, applicable and workable in the organisation chosen.Most importantly niggardness must be devoted to the most influential stakeholder. Stakeholders include Government, suppliers, competitors, owners, customers, unions and these can be internal stakeholders or external stakeholders. Its important for Bp to have knowledge of its business surroundings for them to identify market segments to fulfil customer need. The expectations of BP will certainly be an increase in profit maximisation, fetchth in market share, capital investment, high product quality and high quality performance.Systems to involve stakeholdersA system is a structured collection of split that are highly incorporated to accomplish an general goal. The system has heterogeneous inputs, which go through certain processes to generate certain outputs, which collectively, accomplish the overall required goal for the system. So a system usually br ings in stakeholders to perform in different aspects to achieve organisational objectives. (Online)Configuration system An organisations configuration consists of the structure, processes and relationships in the course of which the organisation operates. The reason for configuring challenges is vital to organisational success.Functional structure- one time an organisation grows beyond a very basic level of size and complexity, it has to part dividing responsibilities. This system is based on the primary activities that have to be undertaken by an organisation such as production, finance and accounting, marketing, human resource and research and development.Convergence system- This is where previously separate industries begin to overlap in terms of activities, technologies, products and customers. (G. Johnson et al 2008)A.C3.2 originate a change management strategy with stakeholdersManagement strategy is an arrangement to manage stakeholders according to the level of power and level of interest. It is a fundamental concept for business to survive /grow by responding to any environmental changes.A strategy is the direction and eggshell of an organisation over the long term, which achieves advantage in a changing environment throughout its configuration of resources and competences with the aim of satisfying stakeholder expectations.STAKEHOLDER ANALYSIS (MAPPING)Stakeholder abridgment helps an organisation to define whom to try to involve when designing a process of change. It also helps to determine in which way and how to include the stakeholder in the organisation. The process allows the organisation to find out whose nurture needs should be considered.AKEY PLAYERSInvolve themIncrease effort and level of interestB financial support INFORMEDEngage and updateInvolveCKEEP SATISFIEDLest importantCommunication and updateDMINIMAL driving forceParticipateIncrease level of interestThe stakeholder analysis has two axis and four quadrantsThe x axis represen ts influenceThe y axis denotes powerThe quadrants areHH high highHL high lowLH and LL low high and low lowHigh power, interested battalion these are the peck you must fully stay and make the sterling(prenominal) efforts to satisfy.High power, less interested people put enough work in with people to keep them satisfied, but not so much that they become uninterested with the meat.Low power, less interested people keep these people adequately informed, and talk to them to ensure that no major issues are arising. These people can often be very helpful with the item of your project.Low power, less interested people again, monitor these people, but do not turn them off with undue communicationFor the analysis to be effective the following should be carried outTheir interests, set, and concernsWhat sources of stakeholder powerWhat claims they might make on the organisationWho the most important stakeholders are from the organisations perspective part the relationship between them Identify the resultant strategic challengesA.C3.3 Evaluate the systems used to involve stakeholders in the planning of changeSix steps need to be taken into consideration so as to involve stakeholders in the planning of changeIndentify who the stakeholders are (government, customers, investors, suppliers)Prioritise Stakeholders will have variable degrees of power, influence and interest in planning. Its important to identify, prioritise and understand the impact they will have on the conclusions made.Map their profiles This will show their different responsibility and who will have greater influence on the stakeholders. get up an engagement strategy one way of engaging with the stakeholder is by using a stakeholder light traffic strategy. Using the traffic light look-alike is a useful way to flag up what strategy is appropriate with the different relationships in place at any given time. optimise their support to make good of the support they are giving you in the planning of cha nge. This is by ensuring that you keep those stakeholders satisfied.Monitor changes to ensure that any changes are put across to those stakeholders. Its important to give frequent updates.BP stakeholders can be twisting through meetings such as the Annual general meetings where all aspects of the company are discussed with members of the BP board and Carl- Henric Syanberg as chairman. The chairman informs other stakeholders on the different plans and issues that were discussed by board and what projects they were ready to take as an organisation as an organisation.Change in Bp happens all the time and I think that out of the four systems I have picked the stakeholder analysis because it is effective and it gets involves all stakeholders and Bp is able to operate for the best intentions of its stakeholders.A.C3.4 take in a strategy for managing foeman to changeIn every company at that place are forces involved when a company decides to adopt new strategies. There are immune and driving forces. In this case the turn awayive forces are those that dont want to tolerate any kind of change brought about in the company and sometimes there those who are in the favour of change. Its important to put in place strategies of how to manage any enemy going on in the organisationINDIVIDUAL unsusceptibilityIndividually, people may resist, although this is generally hold in to the extent of their personal power. For those with lower power, this may include passive refusals and undercover action. For those with more power, it can include open challenge and criticism.COLLECTIVE confrontationWhen people find a common voice in nonionic resistance, and then their words and actions can create a significant threat to the change, even though they are individually less powerful. An organised resistance is usually a sign of a deep divide. People will not go to the bother of organizing unless they have serious issues with the change.PASSIVE RESISTANCEPassive resistance occur s where people do not take specific actions. At meetings, they will sit quietly and may appear to agree with the change. They may agree and then do nothing to fulfil their commitments. industrious RESISTANCE-Occurs where people are taking specific and deliberate action to resist the change. It may be overt, with such public statements and acts of resistance, and it may be covert, such as mobilizing others to create an underground resistance movement.1-Participation and involvement Is a strategy which is used when dealing with key stakeholders of the organisation. Participation and involvement is usually adoptive when the key stakeholders are neither keen nor interested in company matters and every time the company tries to adopt change for the gather of the company they resist that change. Using such a strategy can be very helpful to achieve the objectives and on the other hand it is time consuming for the company.2-Education and communication Is a strategy which is applied when stakeholders are not aware of benefit of the strategy. Its important to educate and communicate with the stakeholders so as to get them to understand the reason for the change. The major advantage of the strategy is that the stakeholders will cooperate productively and positively. Using this strategy can be time consuming and costly too.3-Negotiation and compromise The strategy of negotiation and compromise take place when there is a group division. By this strategy a company convince the both groups at working together for the benefit of company. Its also promotes unity which is very good for a company. It is cost effective.The current situation for Bp Company is not good because there is division of groups. This groups are the Russian shareholder and the British shareholder. This means that there can be experiences of groups opposing each others opinions hence bringing about resistance for change. In my opinion if BP as a Company has to sustain their rank in international market t hen they should work together and be fall in as an organization. Stakeholders should be ready compromise for the benefit of the company.TASK2AC 1.1 question models of strategic changesThere are umteen theories about how to accomplish change. Many begin with leading and change management guru, John Kotter. A prof at Harvard Business School and world-renowned change expert, Kotter introduced eight-step change process.(Lecture Notes) pace angiotensin-converting enzyme Create UrgencyFor change to happen, it helps if the whole company really wants it. Develop a sense of urgency around the need for change. This may help you spark the initial motivation to get things moving.This isnt simply a matter of showing people poor sales statistics or talking about increased competition. Open an honest and convincing dialogue about whats disaster in the marketplace and with your competition. If many people start talking about the change you propose, the urgency can build and feed on itself. me asuring Two Form a Powerful CoalitionConvince people that change is necessary. This often takes strong leadership and visible support from key people inside your organization. Managing change isnt enough you have to lead it.Step Three Create a raft for ChangeWhen you first start thinking about change, there will probably be many great ideas and solutions floating around. Link these concepts to an overall vision that people can grasp easily and rememberStep Four Communicate the VisionWhat you do with your vision after you create it will determine your success. Your message will probably have strong competition from other day-by-day communications within the company, so you need to communicate it frequently and powerfully, and enter it within everything that you do.Step Five Remove ObstaclesIf you follow these steps and secure this point in the change process, youve been talking about your vision and building buy-in from all levels of the organization. Hopefully, your staff wants to get busy and achieve the benefits that youve been promoting.Six Create Short-term WinsNothing motivates more than success. Give your company a gustatory modality of victory early in the change process. Within a hornswoggle time frame (this could be a month or a year, depending on the type of change), youll want to have results that your staff can see. Without this, critics and interdict thinkers might hurt your progress.Step seven Build on the ChangeKotter argues that many change projects fail because victory is declared too early. satisfying change runs deep. Quick wins are only the beginning of what needs to be done to achieve long-term change.Step Eight Anchor the Changes in Corporate Culture the marketFinally, to make any change stick, it should become part of the core of your organization. Your corporate culture often determines what gets done, so the values behind your vision must show in day-to-day work. (Lecture class)Models of Strategic ChangeLewins Change Managemen t Model was developed in the fifties by a psychologist named Kurt Lewin (Syque, 2007). According to Lewin for change to occur in an organisation he looked at three storeys, which are still widely used today unfreeze, transition, and refreeze.Unfreeze Most people tend to stay within certain comfortable zones and are usually hesitant of change. Employees tend to become comfortable in this unchanging environment and become uncomfortable when any change occurs, even if it is not a major one. To overcome this rimy state, we must initiate an unfreeze period, which is done through motivation. Motivation is important in any organisation, even when it is not changing.Transition -This period is when the change is occurring, which is a voyage and not a step. The transition period takes time because employees dislike change. This is when leadership transition period is good for the company as well as the employees.Refreeze At the end of the transitional voyage, comes the next stage refreez e. At this stage its where the company once again becomes stable.BP has encountered several problems but they have been able to change with its challenging and demanding surroundings. BP as a company has changed its strategies for it to survive in this competitive business world. As an organisation there has been need for change and it has improvised strategies, so as to adapt to this ever changing worldAC1.2 Evaluate the relevance of models of strategic change to BP in the current economyAll organisations are currently undergoing some type of change. Many of the organisation change programmes arising from management fads such as customs change, business process engineering, empowerment and total quality, branding, reputation. For instance BP had the need to change because of its Experience of controversies regarding business practices, environmental damage, and hazards to workers. Other large energy companies have come under fire for releasing huge amounts of greenhouse gasses into the atmosphere. For some time, BP is trying to turn a new leaf in its history book toward a more environmentally-friendly future through investments in renewable energy and a support of ethics and compliance initiatives. British Petroleum changed its name to BP and then tried to rebrand itself as Beyond Petroleum.The different models of strategic change are of relevance in the current economy because the group will be able to compete with other oil companies such as Shell strategically. These models assist on the sustainability of the group, the growth of the group and the market share by using the different models.AC1.3 Assess the value of using strategic intervention techniques in organisationsContingency TheoryThere are many forms of contingency theory. Contingency theories are a class of behavioral theory that challenge that there is no one best way of organising or leading and that an organisational or leadership style that is efficient in some situations may not be successfu l in others (Fiedler, 1964). In other words The most favourable organisation or leadership style is dependent upon various internal and external constraints.There are also contingency theories that relate to decision making (Vroom and Yetton, 1973).The effectiveness of a decision process depends upon a number of aspects of the situation such as the importance of the decision quality and acceptance the amount of appropriate information possessed by the leader and subordinate and the likelihood that subordinates will accept an autocratic decision or assist in trying to make a good decision if allowed to participate the amount of disagreement among subordinates with respect to their preferred alternatives.Kurt Lewin and his colleagues did different leadership decision research in 1939 and hold that there were three different styles of leadership, particularly about decision-making.Participative StyleA leader who involves others in decision-making improves the perceptive of the issues involved by those who must carry out the decisions. Individuals are more committed to actions where they have been involved in the relevant decision-making.A leader will find that people are less competitive and more collaborative when they are working on united goals.When people make decisions jointly, the social commitment to one other is greater and that increases their commitment to the decision. Several people deciding collectively make better decisions than one person alone.AutocraticIn this case the leader takes decisions without consulting with others. A leader makes a decision without any form of consultation. In Lewins research he found that he this type of style caused the most level of discontent.An autocratic style works when there is no compulsion for any input on the decision, In style it means that the decision would not change as a result of input, and where the driving force of people to carry out subsequent actions would not be affected whether they were or were not involved in the decision-making.Management InterventionThere are always teams in organisations that are there and the possibility of acquiring different results. No matter how dedicated a team is there will be tim