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Crisis management and leadership as related to BP’s most recent organisational crisis

| March 28, 2015

Literature Review
This section briefly discusses crisis management and leadership, the two key areas of literature that will help to examine Tony Hayward’s leadership during BP’s most recent organisational crisis.

Crisis and Crisis Management
There is no one definition of the term ‘crisis’ (Keown-McMullan, 1997), however, a guiding definition is that a crisis is an event that impacts or has the potential to impact the entire organisation (Mitroff and Anagnos, 2000). A crisis can also be described as a major, unforeseen circumstance that can potentially jeopardise an organisation’s employees, customers, products, services, fiscal situation, or reputation (Callan, 2002, Augustine, 1995, Santana, 2003). This definition is in line with the theory that a crisis is characterised by three elements: high threat, short decision time, and an element of surprise, indicating that each crisis contains an urgency that necessitates decisions and actions to be taken immediately by the people involved (Keown-McMullan, 1997, Reilly 1987). In an organisation, the managers should be the forefront of handling urgencies and acting in response to a crisis situation, the failure of which effects the motivation of the employees. In a crisis situation, it is possible for employees to lose focus on their work and worry among their impending job loss which effects the productivity of the organisation as a whole. Therefore, how the manager handles a situation could mean the difference between disaster, survival or even financial gain (Boin and ’t Hart, 2003). Managers have to make quick fix decisions on allocating resources, interpret information, respond to possible allegations and issues. In normal scenarios, these sort of decisions are taken without any problems. But in a crisis scenario, sound decision making becomes difficult because of very limited information, stress and pressure which may lead to faulty decision making occurring in either of the 2 ways. In the first case, management cannot produce a sound decision because of disagreement and conflicts between the members of the management trying to save their own skin. The second scenario is the exact opposite of first case where the team are so cohesive which leads to absence of independent critical thinking leading to the suppressing of disagreement and the appraisal of alternatives. In most of the crisis situation, decision makers usually “react” rather than “reflect” on the situation, which may compound the crisis.

While the idea that a crisis as a negative state of affairs is still the most popular construal in the literature, the idea of a positive outcome from a crisis situation can also be found in some definitions and discussion (Keown-McMullan, 1997). For example, Fink (1986, p. 15) defines a crisis as:
…an unstable time or state of affairs in which a decisive change is impending – either one with the distinct possibility of a highly undesirable outcome or one with the distinct possibility of a highly desirable and extremely positive outcome. It is usually a 50-50 proposition, but you can improve the odds.
This definition implies that, if managed effectively, a crisis can bring a desirable outcome. Indeed, it has been suggested that an organisation can experience a ‘successful’ crisis that actually leads to improved firm’s performance (Boin and ’t Hart, 2003). Such an outcome is possible because crisis “focuses attention on how tasks are managed and draws new patterns of cohesion, a successfully handled crisis can benefit an organisation” (David, 1990, p. 90). This therefore reinforces the fact that the effective management of crises is important. It should thus entail the execution of well-coordinated actions to limit any damage and preserve or rebuild confidence in the organisation under crisis. It is also important that crisis management should start before a crisis arises and may extend after the ‘actual crisis come to an end, such as after the oil has stopped gushing into the sea (Fink, 1986). Based on this, Santana (2003, p. 308) defines crisis management as:
… an ongoing integrated and comprehensive effort that organisations effectively put into place in an attempt to first and foremost understand and prevent crisis, and toeffectively manage those that occur , taking into account in each and every step of their planning and training activities, the interest of their stakeholders.
There are number of elements within the external environment, shifting of which leads to the occurrence of a crisis. These elements include Political – legal, economic, social and technological forces and these constitutes a complex network within which organisations exist. Even though shifting of these elements do not occur often, organisations needs to consider these elements while drafting their strategy because of negative blow that would be brought about by shifting of these elements. The most common examples are when government across the world come up with a law that bans the sale of certain type of products. This would create substantial disruption in a firm’s operations which would constitute a crisis. This does not mean that every external threat faced by an organisation will constitute a crisis. For e.g., if a government passes a law which would require manufacturers of certain products to have 2 languages in a product pack, rather than having one that is used in the current pack, it cannot be considered as a crisis as it would not probably cause substantial disruption. Therefore, the term ‘crisis’ cannot be used for every external threat and in most of the cases, even though the organisations tend to be regularly exposed to number of actual and potential crisis situations, they fail to recognise its seriousness. The following examples illustrate this reality (Crandall et al, 2009).
Political and legal forces
Some of the political forces that contribute to a shift, that has the potential to lead to a monumental crisis include relations between countries, outcome of meetings between government leaders, rules and regulations and decisions taken by individuals and teams at various levels of government. The legal forces that can contribute to the crisis include laws and legislations passed on by governments, the judgements made by judiciary in various cases involving government and an organis ation etc (Crandall et al, 2009) (GOEL, 2009).
In the book, The M3C model of Co operative, Contextual change written by Lloyd.C.Williams et al, they mention that change process brought about by a crisis is fruitful to an organisation only if the individuals who make up the organisation agree to initiate a change from a common point of stability. The process and state of being that would allow the organisation to modify its functioning but while retaining and enlarging its identity is called dynamic stability. The attainment of dynamic stability is obtained by developing a sense of community by which individual gets involved. There are four stable elements of dynamic stability which people can understand and use when they experience the process of community. These four elements include the stake, the ground rules, the systemic relationships, and the solution-oriented mindset. The stake represents an asset, either tangible or intangible, which the community or individual wants to protect with their actions and includes goals, beliefs, structure and processes. The rules for engagement between the community and the external environment as well as the way by which actions are carried out within the community is defined by the ground rules. Systemic relationships among members of the community are important so as to attain an organisation alignment needed to protect the stake. A solution-oriented mindset can be achieved by granting of responsibilities and from learning experience. (Williams et al, 2011).

Economic forces
The economic forces contributing to the shift includes changes in the Gross domestic product and various indicators that show the economic health of a country. These include inflation, exchange rate and interest rates (Labrosse et al, 2009)/
Social forces
The social factors contributing to the shift includes values within the society, the change in traditions and religious practices. The crisis from social factors will be disastrous when society / people lose trust in the company or are angry with a corporation. This can be explained by the recent banking and financial crisis. The main reason for the crisis is that people and society and organisations lost trust in each other. There were 2 kinds of trust that was lost which made people flee market In first, as the the future economic growth was revised downwards, there was loss of trust in appreciation of asset value, In the second, as people found that governing authorities and legal frameworks was not adequate to ensure the efficient operation of the markets, they lost trust in the functioning of the market. This made people withdraw huge sums of money from the banks, who were not in a position to fulfil the demand because the banks or organisations from which they were expecting money were not willing to provide them the cash. What made people angrier was that banks or other financial institutions were paying huge amount of bonuses to their employee while people outside these institutions were losing money. This opportunistic behaviour of bankers, stockbrokers, investment bankers etc lead to a situation where common man lost trust in the stock market, which is an indicator of the performance of top companies of a nation, and it plummeted down to record levels not seen in recent memory. The spiral effects lead to laying off of thousands of people which affected the economies of the countries across the world because as companies lay off workers, their spending capacity reduces. Once their spending capacity reduces, then they are not in a position to go to high street shops to buy products. When people are not going to high street shops to buy products, then these shops lay off people thereby affecting the local economy. Most of these people would be having a number of commitments like paying their mortgage, credit card debt, personal loans etc. When people are not in a position to pay off these debts, the financial institutions are not in a position to roll over money which hits the core of banking activity. Thus, this shift in one social factor called trust has lead to one of the most dreadful global crisis ever experienced by mankind in recent history. Even though, it’s been close to 2 years since the crisis, a vast majority of countries and organisations have not yet been able to recover fully from the impact (Crandall et al, 2009) (Jordan-Meier, 2011).
Technological forces
The technological factors which contribute to shift include major scientific innovations or improvements. These innovations or improvements can lead to either creation of new opportunity or threat to existing businesses. Technological innovations and improvements have the capability to destroy not only existing businesses but also entire industry as well. For example, personal computers were a fantastic technological innovation which gave rise to a entire new industry centred around computers which includes monitors, servers, operating systems etc. But the rise of the computer industry was followed by the slow demise of the type writing industry following the development of word processors and personal computers (Moore, 2005). In fact, just a couple of months back, world’s last remaining typewriting factory was closed by its owners Godrej and Boyce in Mumbai, India
Over the period of last few decades, different frameworks for crisis have been developed by taking into account different stages of crisis. The frame work for a crisis is based on the analysis of the life cycle of the crisis and this is usually accounted for by three-stage approach and four-stage approach (Laws, 2006).
The three-stage framework is the most basic approach to crisis and involves the following stages – PreCrisis, Crisis and Post Crisis. Different experts have suggested different formats for three-stage format. In the three-stage approach suggested by Smith (1990), Crisis of management constitutes the Pre Crisis stage; the crisis stage is called Operational Crisis and post crisis stage is called Crisis of Legitimation. In the Crisis of Management stage, a crisis can be easily triggered by a event due to the fact that organisation is not prepared to handle the crisis and actions of the leaders in the organisation does not inspire confidence in their teams. In the second stage, called the Operational Crisis stage, all the key leaders in the organisation put their heads together and try to develop quick fix solutions to get over the crisis. In the third stage called Crisis of Legitimation, the key stakeholders in the organisation including the ones who played a major role in Operational stage starts looking for scapegoats so as to shift blame and to appear legitimate and rightful in the eyes of public after the crisis (Andari, 2010) (Coombs, 2010).
Another approach to three-stage framework is the one suggested by Richardson (1994). In this framework, the PreCrisis stage is called disaster phase and this phase focuses on neutralising all the threats that may cause a crisis. In Crisis stage is called Rescue stage and is focused on the occurrence of the crisis. The Post Crisis stage is called Demise stage which emphasis on restoring stakeholders confidence in the organisation following the occurrence of the crisis (Coombs, 2010).
Another approach to crisis is a four – stage framework which adds an additional stage, to the three-stage framework, which focuses on the progression as it happens during the crisis. In one of four-stage framework suggested by Myers (1993), the first stage is a Operations stage, where the organisations puts in standard operating procedures and crisis management teams to act in response to the occurrence of the crisis. The second stage is the emergency response stage which focuses on the response that needs to be initiated in the first few hours following the occurrence of the crisis. The third stage is called Interim processing stage where stop gap arrangement and temporary procedures are put in place until the restoration of normal operations. The fourth stage is the restoration stage where the organisation comes back to normal operations (Coombs, 2010) (Crandall, 2009).
Another approach to four-stage framework was put forward by Fink (1996). In the approach, the first stage is called Prodormal stage which is stage before a full blown crisis and shows all the red flags and warning signs that a crisis is imminent. If remedial measures are taken during the prodormal stage, then a crisis can be prevented. The second stage is called Acute crisis stage and this is stage where actual crisis is happening and normal operations are seriously disrupted. This is also the stage where outsiders of the organisations get to see and hear about the crisis on a regular basis. The third stage is called chronic crisis stage which is not as dramatic as acute crisis stage and the organisation is trying to clean the mess created during the acute crisis stage. The Resolution stage is the final stage where the organisation has just gotten over the crisis and is slowly coming back to the normal operations (Fink, 1996)
Five stage frameworks is another approach to crisis and provide a more detailed approach than the three stage framework and four stage frameworks. It provides a more detailed understanding of different stages of the crisis (Perason & Mitroff, 1993).
In the five stage framework suggested by Pearson and Mitroff (1993), the following stages are included :
• Signal detection: These are warning or red flags which occur when an organisation is slowly moving towards a crisis. In most cases, these warning and red flags are raised by people on the ground or lower level or middle level management or those directly interacting with customers. Detecting these signals and accepting them as ones which may lead to crisis so as to try to look at ways to manage a crisis is a skill not found is many leaders. Developing a mindset and skills so to become adept at detecting these signals is what organisations needs to embrace (Perason & Mitroff, 1993).
• Preparation / prevention – In this stage, organisation gets ready to attack the crisis by setting up crisis management teams and workings on different plans to tackle different crisis occurring in different forms. The approach towards a crisis management will be through a systematic manner and should be on going. The objective from which this step is approached is to ensure that any crisis that may occur gets nipped in the bud (Perason & Mitroff, 1993).
• Containment / damage control – This stage focuses on actual management of the crisis and trying to contain it with as minimal damage as possible to the organisation and stakeholder (Perason & Mitroff, 1993) (Mitroff, 1992).
• Recovery – This stage focuses on bringing the workings of the organisation to as normal a stage as possible. The recovery process passes through different sub stages. The short term recovery stage tends to bring the working on the organisation to a minimal acceptable level of service. The short term recovery is followed by long term recovery where the operational capabilities of the organisation reach pre crisis level. In some cases, long term recovery will be followed by another recovery process whereby the organisation tends to work at a higher level than that was observed during the precrisis stage. For example, if a fire at a production facility destroys a old machine which has the capability to produce ‘X’ number of products every hour, then a modern machine which has been installed following a crisis has the capability to produce ‘2X’ products thereby ensuring higher level of productivity when compared to the Pre Crisis period (Perason & Mitroff, 1993) (Mitroff, 1992).
• Learning – This fifth stage, post the recovery stage, focuses on improvising operational problems so as to prevent the occurrence of future ones. The stages emphasises on reflecting on the crisis and documenting the lessons learnt rather than finding scapegoats and blaming other parties (Perason & Mitroff, 1993).
Particularly important during major crises such as the BP oil spill, which affects many different stakeholders, is crisis communication. Crisis communication, which involves communicating with a range of stakeholders, generally relates to the public relations element of crisis management, and is arguably the single most important aspect of the organisation’s response to the crisis. It therefore requires communication with internal stakeholders, including employees and shareholders, and external stakeholders, such as customers, the media, and the surrounding community, about what occurred and how the organisation is managing the crisis (Callan, 2002).
Effective Leadership in Crisis
Leadership is one of the most discussed topics in times of crisis because, to most people, the importance of leadership is clear since effective organisational leadership:
…provides a sense of cohesiveness, personal development, and higher levels of satisfaction among those conducting the work; and it provides an overarching sense of direction and vision, an alignment with the environment, a healthy mechanism for innovation and creativity, and a resource for invigorating the organisational culture (Van Wart, 2003, p. 214).
As with trying to define ‘crisis,’ there are also many definitions of ‘leadership’ (Stodgill, 1974). Some researchers present established definitions of leadership, for example Kotter (1999, p. 10) defines leadership as “[t]he development of a vision and strategies, the alignment of relevant people behind those strategies and the empowerment of individuals to make the vision happen, despite obstacles.” Alternatively, some researchers present more general definitions of leadership that may apply equally well to leadership in organisations as to leadership in other settings. Peter. G.Northouse in his book “Leadership: Theory and Management” (2007 explores four components that are central to leadership:

(1) Leadership is a process.
(2) Leadership involves influence.
(3) Leadership occurs in a group context.
(4) Leadership involves goal attainment.

Based on these four components, Northouse coined a definition which states that “Leadership is a process whereby an individual influences a group of individuals to achieve a common goal”. (Northouse, 2007, p .3). The concept of leadership has evolved over a period of time which typically reflects the larger society as norms, attitudes, and understandings in the larger world have evolved and thereby changed (Richard Daft, 2005).

Crisis leadership effectiveness depends largely on an organisation which is responsible for creating an environment for the leadership to operate. A highly experienced and competent manager will still struggle to successfully manage a crisis if there is no adequate support from his colleagues and if the groups are poorly structured and disorganised. Micheal Blyth in his book Business continuity management: Building an effective incident management plan mentions about the following organisational principles to support effective crisis leadership (Blyth, 2009).

Clear responsibilities

Demarking of clear responsibilities in organisation will ensure that gaps and shortfalls are avoided and duplication of efforts is prevented. Establishing clear responsibilities will also ensure that during the occurrence of crisis along with internal company politics are eliminated (Blyth, 2009) (Fearn-Banks, 2007).

Training and education
Every organisation should develop a team of leaders who have expertise in dealing with crisis situations and that companies should regularly train these leaders by keeping aside time and resources. These leaders should be regularly trained on managing crisis and utilisation of policies, systems, tools and protocols (Blyth, 2009) (Fearn-Banks, 2007).

Practice and rehearsals.

Regular practice and rehearsals by the crisis management groups will ensure that any loopholes or shortfalls. Regular practice will not only increase the confidence of crisis management team but also help develop familiarity with the Crisis management plans (Blyth, 2009).

Empowering Leadership

An organisation should develop certain parameters within which crisis management leadership should be empowered and given the freedom to operate. This decentralization process will ensure that crisis at the local level can bring about effective management in times of crisis. Having a centralised leadership in terms of crisis management will significantly undercut the ability of leaders in the ground to successfully manage crisis (Fearn-Banks, 2010).

An important aspect of crisis management structure and the one which is the core component of empowering leadership is to sensibly delegate responsibilities to the lowest level decision making abilities so as to put in place a structured and streamlined management system (Blyth, 2009).

Authority lines

During the crisis, middle level managers should be aware of the person to be contacted for requisite permissions so as to prevent a scenario where the people attempt to name a decision maker during the crisis event. To ensure that swift actions are taken during the crisis, clear authority lines and permissions should be granted to the crisis management team and people within the organisation must be made aware of the responsibilities of their colleagues in times of crisis (Blyth, 2009).

Established systems and supporting mechanisms

Effective response to a crisis can be generated by having established systems and support mechanisms in place. Establishing these strategies in place prior to the crisis will help crisis leaders in taking logically defined decisions which will develop confidence among their peers and sub ordinates (Devlin, 2006).

Innovation and Flexibility
The corners stones of effective crisis leadership are Innovation and flexibility as crisis tends to be unique every time thereby requiring tailored approach for achieving resolution (Blyth, 2009).


Companies and crisis management teams must be smart enough to leverage both outward and inward resources, capabilities, knowledge and also external resources so as to ensure that it does not lose out opportunities for effectively responding to the crisis (Blyth, 2009)..

The leadership framework for crisis management involves drafting a crisis management policy, setting up of crisis management team, developing a communication strategy, establishing partnerships and ensuring preparedness of the crisis management team with regular practice and training sessions.22

Crisis management – a leadership challenge, 2011
Drafting the crisis management policy includes setting the tone for leadership commitment and mentioning the generic guidelines for action. This policy is based on an organisation’s values and philosophy (Crisis management – a leadership challenge, 2011).
After drafting the policy, the next step is to establish a crisis management team. The crisis management team analyzes different scenarios leading to a crisis and plans for the scenarios. Also while establishing a management team, the roles and responsibilities of different members of team are established so as to prevent ambiguity in times of crisis (Crisis management – a leadership challenge, 2011) (George, 2011).
Following the setting up of a crisis management team, an effective communication strategy and infrastructure will ensure that there is going to be a consistent flow of information to all stakeholders at all time (Crisis management – a leadership challenge, 2011) (George, 2011)..
The established crisis management team should go about setting up of partnership with external agencies / organisations so as to ensure availability of critical resources and timely help (Crisis management – a leadership challenge, 2011) (George, 2011).
To ensure preparedness of the crisis management team and make sure that they are always on their toes, regular training programmes needs to be conducted and the capability of the crisis management to deal with crisis situation should be checked from time to time through mock drills (Crisis management – a leadership challenge, 2011) (George, 2011).
Leadership is particularly important in crisis situations and Boin and ’t Hart (2003) argue that crisis and leadership are closely related phenomena. Since crisis situations are times of uncertainty, people inside and outside the organisation look to leaders to ‘do something’ and thus the visibility of top management, particularly the CEO, during a crisis assures the public that the crisis is being tackled at the highest levels (Halverson et al., 2004, Sadgrove, 2005). Top managers must also actively engage in long-term corrective and preventive actions to avoid being involved in crises time again (Augustine, 1995). Additionally, leaders need to understand the dynamics and psychology of a crisis if they are going to respond well because crisis events require the organisation to make considerable changes to its ‘standard operating procedures’ while still responding to the crisis (Borodzicz, 2000, Santana, 2003). This seems to be have been missing in the case of BP, as the company has found itself in several crises situations over the past five years that have done major damage to its image and left it seemingly unable to respond well to new crises. In the latest oil spill, the leadership performance of BP’s CEO, Tony Hayward, was not well received. According to Boin and ’t Hart (2003, p. 544):
When crisis leadership results in reduced stress and a return to normality, people herald their ‘true leaders’… But when the crisis fails to dissipate and ‘normality’ does not return, leaders are obvious scapegoats.
This view of leadership sits quite comfortably with the forms of organization that are common in business, the armed forces and government. Where the desire is to get something done, to achieve a narrow range of objectives in a short period of time, then it may make sense to think in this way. However, this has its dangers. Different leaders have different styles. A great deal of power remains in their hands and the opportunity for all to take responsibility and face larger questions is curtailed (George, 2011).
The question to be investigated in this research is: What lessons can be learnt by Hayward performance as a leader during this crisis? The way in which this question can be answered is described in the next section.

This chapter focuses of the methodologies that have been used by the researcher during the course of this research. Research Methodology is the course taken by the researcher to find answers to research questions (Kumar, 2005).

Middle level managers from BP were engaged in a semi structured interview which focused on their view of BP’s leadership in general and their opinion of how their leaders went about handling Deepwater Horizon Oil rig disaster in particular. The answers collected have been used to provide a simple overview of the factors contributing the crisis and then BP CEO Tony Hayward’s performance as a leader during the crisis

Research Methodology

The various paths or courses available to choosing data collection techniques and analysis procedures can be depicted by using research “onion” (Fig A). The centre of the onion gives an idea on the exact way of collecting the data to answer research questions and this centre is reached by peeling away important layers. The important layers that needs to be peeled away to reach the centre point i.e. data collection methods include research philosophy, research approach, Research strategies and Time horizons (Saunders, 2009).


Research Philosophy

The development and nature of knowledge encompasses the term research philosophy. This development and nature of knowledge contains important assumptions on the way a researcher views the world which underpins a researcher’s choice of a research strategy and the methods chosen as part of the strategy. This philosophical commitment not only has a significant impact on what researcher does but also on how they understand things while investigating (Johnson, 2006).
The three different research philosophies are Positivism, Interpretivism and Realism. Positivism involves development of knowledge based on observable social reality. The end product of research based on Positivism philosophy is law like generalisations similar to those produced by natural scientists. Intrepretivism involves development of knowledge based on the understanding of differences between humans in roles as social actors and the emphasis on their variables such as behaviour, mood and previous experience. Realism is the development of knowledge based on scientific approach and assumes the independent existence of objects from the human mind (Kothari, 2008) .
The research philosophy adopted for this dissertation is Intrepretivism as the development of knowledge was through questioning and dialogue by which people shared their experience. This is because feelings and attitudes towards performance management as “social phenomena that have not external reality and cannot be measured and modified” (Saunders et al, 2006). Interpretavist stance provides scope for the researcher to use phenomological case studies of people and how they make sense of the world, using their opinions and experience of performance measures in the working environment. Postivisim was not preferred because conducting research among people involves taking into consideration various factors such as behaviour, mood etc which is advocated by interpretivism rather than objects such as trucks and computers as advocated by positivism, whereas emphasis is on working with observable social reality. On the flip side, the difficulty of taking interpretavist stance is that findings make not be generalisable. However, it may be that the types of people being interviewed, due to culture of a BP background, have similar thought processes and hence are generalisable with a BP context (Goddard, 2004).

Research Approach
Deductive research and inductive research are the research approaches which results in the achievement of new knowledge. Deductive research is more like a top down approach to research where objectives are established followed by defining of key definitions and assumptions. Then the researchers works through a logical structure, based on the key definitions and assumptions, to accomplish the objective. Inductive research is more like a bottom up approach to research where conclusion is drawn only from observations of specific situations (Panneerselvam, 2004).
This research involved the development of theory only after analysis of collected data therefore approaching research through inductive approach. Deductive approach was not chosen as the approach required the development of theory and hypothesis and then testing of this hypothesis by designing a research strategy whereas this research was based on finding view of BP’s middle level managers on their leaders handling of Deepwater Horizon Oil rig disaster and the performance of then BP CEO Tony Hayward’s performance as a leader during the crisis, which was the outcome of data collected through semi structured interview. Using Saunders et al’s ( 2006) characteristics of inductive research, the following are reasoned.
An understanding will be gained of the meanings humans attached to events through the meanings they attach to performance management, and there will be a close understanding of the research context through the investigation of reasons as to how best to operationalise performance measurements (Kumar, 2005) .
The data to be collected will be qualitative, which suggests that the deductive approach is more natural. There may be the potential for collections of qualitative data as well that may lend itself to a deductive approach, but the number of people intended to be interviewed would not enable any generalizations to be made (Kumar, 2005) .
The flexible approach of the inductive stance means that if findings lend themselves to a change of direction within the dissertation, this will be possible (Singh, 2009) .
The researcher realizes that as part of the research process, ideas developed may translate into action research as they are suggested to the interviewees (Kumar, 2005).
Research Strategy
The analysis of the collected data so as to obtain information through systematic and orderly approach is called Research strategy. In management studies, the three important research strategies that are rooted in inductive approach and are commonly used include case study, grounded theory and Ethnography. A research strategy for a research is chosen based on certain criteria’s like research questions and objectives, availability of time and resources, existing knowledge level etc (Kumar, 2005).
During this research, the researcher used a case study approach which Robson (1999, p. 146) defines as “a strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon within its real-life context using multiple sources of evidence.” This was chosen because, in this research, “a ‘how’ or ‘why’ question is being asked about a contemporary set of events, over which the researcher has little or no control,”. The case study approach will not only entail in depth examination of single case but also engage many variables with collecting of information from multiple sources such as interviews with BP personals, archival data from BP’s files etc. This research strategy will be used as part of a qualitative methodology because qualitative research examines the ‘why’ and ‘how’ of human behaviour and so does the case study methodology (Yin, 2003).
Other strategies such as grounded theory and ethnography which are rooted in inductive approach was considered but it did not fit the scope of this research because of the fact that they are time consuming (Kumar, 2005).
Data Collection method
• Sampling
The research objectives were concerned with understanding of BP’s middle managers view of BP’s leadership in general and their opinion of how their leaders went about handling Deepwater Horizon Oil rig disaster in particular and then BP CEO Tony Hayward’s performance as a leader during the crisis. Therefore, the sampling frame for this research included middle-level and senior level managers of BP. Only those managers who have in depth analysis related to the topic of interest were chosen. This method of sampling is called purposive sampling. Unlike random sampling in which every combination of respondents from the sampling frame has a known probability of occurring, purposive sampling is used in the research when the research selects those respondents that are most appropriate for the study (Robson, 1999). Purposive sample is powerful because it allows the researcher to choose respondents that have the most information for in-depth analysis related to the central issues being examined. The richest information is not likely to be available from the ‘typical’ case and so using purposive sampling will allow examine in detail the root causes of a given issue and its consequences. A close colleague of researcher who is on the staff of BP helped the researcher in short listing only those managers with access to in depth knowledge of the research topic and on the basis of the contact details provided by the provided by the researcher’s colleague, the researcher sent across email requesting for an appointment to the discuss the research topic and only those who expressed willingness to part of the research was interviewed (Jackson, 2008).
• Data Collection
Data will be collected in face-to-face interviews with three middle level managers within BP over a period of one week. Thus till date collected is the primary data. The data will be collected using semi-structured in-depth interviews. Semi-structured interviews were chosen over alternative approaches, such as focus groups and surveys, as this method will allow researcher to guide the research and probe for deeper answers, elaborations, and examples to allow further explanation of specific topics and at the same time cover a wider scope if undiscovered issues should arise (Robson, 1999). Additionally, semi-structured interviews allow interviewees to tell the interviewer what they consider most significant (Marshall and Rossman, 1999). Semi-structured interviewing starts with more general questions or topics rather than the formulation of detailed questions ahead of time and so structured and unstructured questions will be outlined prior to the interviews based on the research question framework (Marshall and Rossman, 1999). In this research, relevant topics will have to be initially identified as well as the possible relationship between these topics and the issues. These managers are responsible for teams of professionals and would be able to provide insight into leadership issues in the organisation, allowing them to accurately articulate ‘rich’ descriptions of their experience of leadership at BP. Each interview is expected to last between 30 and 90 minutes and the interviews will be transcribed within one week of having conducting them to ensure that no additional material or observations were lost or forgotten (Marshall and Rossman, 1999).
Following the collection of primary data, secondary data was collected so as to understand get a overall prespective of BP’s leadership and its response to deepwater Horizon Oil Spill. This data was obtained by analyzing various sources including internet and published guides (Jackson, 2008) .
• Data Analysis
This research will use qualitative content analysis to interpret the data collected and further analysis will be carried out by triangulating these findings with the findings of the literature review and the questions and topics that this raised. Content analysis is often recommended for analysing semi-structured interviews because it allows the researcher to identify themes, concepts, and meanings and is a way of classifying content (Krippendorff, 2004). As there is existing (but incomplete) theory about crisis management, this research will use a directed approach to content analysis, which allows existing theoretical frameworks to be validated (and sometimes extended) (Hsieh and Shannon, 2005). In the directed approach to content analysis, extant theory will be used to form codes that will be used in the initial analysis. Data that do not fit into these predetermined codes will be identified and later analysed to determine whether they represent a new category or a subset of a current category. Data that cannot be coded will be identified and analysed later, as suggested by Hsieh and Shannon (2005), to determine if they represent a new category or a subcategory of an existing code. While this method has limitations, the accuracy of predetermined categories can be increased by using an audit trail and audit process (Krippendorff, 2004). By compiling a spreadsheet of literature topics and cross-referencing this to the interviews, it is hoped to be able to correlate findings that produce new insights into the implementation of performance measurement and enable a more effective method of doing so at BP and potentially, within other organisations.
Data quality issues
The drawback of doing a semi structured interview is the lack of standardisation in these interviews. But the researcher still went ahead with the current interview structure because of the fact that the topic of interest is complex and dynamic and using a semi structured interview approach will provide an opportunity for the interviewer to explore the topic in greater detail (McBurney, 2009). Therefore, in order to overcome these issues, careful planning was done which has been described below.
1. Level of knowledge
The effectiveness of interviewing particular manager and their level of knowledge in the deepwater horizon oil spill was obtained by researcher following a detailed discussion with a colleague, who was working in BP. The literature review provided enough level of knowledge with respect to the situational context (McBurney, 2009).

2. Level of information given to the interviewee
The interviewees were given relevant information with respect to the research including the topic of the research, the motive of conducting the research and goal to be accomplished by the end of the research (McBurney, 2009).
3. Appropriateness of location
The prior appointment was taken before meeting the managers. A meeting room within the BP offices was chosen as the location for the meeting. This was done so to ensure that there is minimal disturbance during the interview process (Louis Cohen, 2000).
4. Appearance in the interview.
Even though BP is a highly successful and highly powered organization, its dress code is causal i.e. no suits. Therefore, the researchers appearance was also causal which not only went in sync with BP’s dress code but also went well with the semi structured approach to interview Louis Cohen, 2000)..
5. Opening comment during the commencement of the interview.
To ensure that the discussion shapes in the right direction, the participants of the interview were given the brief on the motive of conducting the research and goal to be accomplished by the end of the research and following their consent, interview questions were put forward Louis Cohen, 2000)..
6. Questioning approach
The researcher made sure that the questions put forward for the interview were open ended questions. This was done so as to ensure that the researcher had the opportunity to explore the question in greater detail. Also, while discussing the questions, the researcher was careful not to use highly complex industry jargons whose meanings may vary with the interviewee. In scenarios where the use of jargons were essential, the researcher took care to ensure that both the researcher and the interviewee had the same understanding Louis Cohen, 2000)..
7. Behaviour during the interview
The researcher ensured that at all times there was appearance of enjoying the interview process as any appearance of boredom will not encourage the interviewee to give a good response. Also, for the answers given by the interviewee, the researcher made sure that a neutral response was projected so as to not to provide lead that may result in bias Louis Cohen, 2000).
8. Demonstration of attentive listening skills
In order to ensure that the interviewee gives as much information as possible, the researcher made sure that the thoughts were held back deliberately. Defending or arguing a particular point of view mentioned by the interviewee would not only result in diverting away from the topic but will also stop flow of thoughts (Jackson, 2008).
9. Documentation of the data
The information gleaned from the interviewee was recorded using audio recording equipment and also by taking down notes while the interview was in progress (Jackson, 2008).
10. Generalisability
As this research follows Intrepretivism, the development of knowledge was through questioning and dialogue by which people shared their experience. These sharing of knowledge are highly subjective and vary on the moods and behaviour of the people. Therefore, the concerns raised in the dissertation are organisation specific to B.P and may not be applicable to other organisations. But the problems associated with arriving at the right kind of Leadership and crisis management is universal and therefore this dissertation will be useful in other contexts (Jackson, 2008).
11. Access and Ethical Considerations
Access to the organisation is to be gained via a close colleague that is a currently on staff at BP. Complying with the ‘Qualitative Research and the Data Protection Act 1998,’ before every interview the researcher will give participants an informed consent form, explaining that the interview will be recorded and that they have the right to withdraw at anytime and withhold any information that they do not wish to share (Marshall and Rossman, 1999). The participants will then be required to sign a consent form before the interview commences.
The researcher has read and understood the university’s ethics policies relating to the dissertation and is confident that the dissertation will be carried out by ensuring the following.
• All interviewees have the choice whether or not to participate in the research
They were provided with the outline proposal for the research. The interviewees provided written consent prior to taking up the interview and were given the option of withdrawing from the interview anytime (Jackson, 2008).
• Selection of interviewee on the basis of the most appropriate people
The intention of the researcher was to get the information from the people who had been hands on involved in the crisis and in most of the cases, those involved in the day to day managing of the crisis were the heads of various departments. In scenarios where the researcher request for an interview was turned down by the ‘heads’, the researcher went about through the research by interviewing the deputy or people further down the line so as to get as much authentic information as possible (Greenfield, 1996).
• Interviewees are anonymised in the dissertation
In order to get the most objective responses from the interviewees, the researcher intends to safeguard the confidentiality of the response. The researcher made it clear to the interviewees that they will not be identifiable in the final piece of work and that the main purpose of this project is to produce a dissertation for completion of the Masters course. If BP finds that the research and findings may promote good practice, then no references will be made to any participants in the reports and recommendations. The interviewees will also be made clear that recording of the interview is only for the purpose of transcribing the interview and once the interview is transcribed then the recording will be deleted (Greenfield, 1996).
• The responses generated from research questions will be analysed qualitatively alongside its comparison to the issues generated from literature review
While working on the dissertation, the researcher will conduct in an ethical and professional way as it befits the organisation and the university. In case of change of methodology, the researcher will always keep the project under review to ethical consideration. On completion of the dissertation, a summary of the main findings will be emailed to all the respondents who are interested in the outcome of the research (Greenfield, 1996).

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