Lessons for managers and organisations from the current BP disaster

Do you think the Gulf of Mexico would appreciate a contingency plan? One of the greatest environmental disasters of all time struck the Gulf Coast on April 20. An oil rig, located off of the coast of Louisiana, exploded killing 11, injuring 17, and causing three leaks in pipes that until a week ago was emitting an estimated 200,000 gallons of crude oil into the ocean every day, and costing BP over a hundred million dollars a day!

BP is responsible for the oil, but denies responsibility for the actual leak. They place the blame on Transocean Ltd., the operator of the rig, for the catastrophe. Regardless of which company will take the fall for this devastation, the obvious pitfall is that neither company had a contingency plan for an incident of this magnitude. Many are wondering, how can something like this happen today, and why hasn't anyone stopped it yet?

There were warning signs that a leak could occur, but no preventative measures were established; machines are faulty, and people make mistakes. Had the corporations involved with these machines created plans for emergency situations, this crisis might not even exist.

Companies should always have contingency plans for potential circumstances. Proactively planning for the worst ensures that companies are accountable for their actions. Managers should understand plans made by the company, and also work with employees to create new plans in case of emergency situations. Contingency plans can be made for everything from employee conflict, to a physical attack on company property, to a company-wide issue, such as an oil spill. Plans should be utilised to secure the problem, and to inform each audience affected by the incident.

The oil spill is a prime example of what happens with poor planning. Had these companies ensured that each rig met production and safety standards, and that if they didn't there was a way to correct them, the Gulf Coast would not be suffering as it is now.

Article contributed by LMA's sister company, Profiles International

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