Organizational Chart

Tony Hayward CEO

Ian Conn Chief Exec R&M

Andrew InglisChief Exec, E&P

Byron GroteCFO

Dana DeasyCIO

Charlie ForteVP IT &

Operation

Vivienne CoxChief Exec , Alt

Energy

Organizational Structure

An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims.

BP has an enormous execution gap. Several companies and government organizations were

involved in the operation of the Deepwater Horizon rig. BP is the well’s owner, Transocean owns the rig, and

Halliburton provides oil rig services. In addition, the Minerals Management Service regulates

offshore drilling .

It resulted in a lack of clear accountability and poor-quality

decisions. The rig’s crew was unclear about whether BP’s or

Transocean’s managers were in charge after the explosion, and that confusion led to inaction in the critical moments following the rig explosion.

The fragmented nature of the government oversight contributed to poor decisions being made well before the explosions.

BP asked for and got exemption from an environmental review, permission to test the blowout preventer at lower pressure, and permission to delay mandatory testing of the blowout preventer. Each of these decisions was made by a different agency that did not appear to know what the others had done.

BP is the well’s owner, the organization that contracted with

the other companies for service and had the primary interface with government agencies.

A good structure enhances accountability, coordination, and

communication. Plus, it ensures that decisions are being made as close to the

action as possible. BP should have worked with the other companies and

government agencies connected to the rig to put in place an operational structure that clarified the responsibilities, level of authority, and expectations for all involved.

Corporate Governance Corporate governance is the set of processes, customs,

policies, laws, and institutions affecting the way a corporation

(or company) is directed, administered or controlled. Board Culture of Corporate Governance, defines corporate

governance as 'an internal system encompassing policies, processes and people, which serves the needs of shareholders and other stakeholders, by directing and controlling management activities with good business savvy, objectivity,

accountability and integrity. The perceived quality of a company's corporate governance

can influence its share price as well as the cost of raising capital.

The mission statement says that it should engage the creative talents of its employees, develop and apply leading cost-effective technology and intellectual creativity to enhance innovation and new ideas.

It should carry on its business in an environmentally responsible manner, and develop cleaner energy and renewable energy sources.

On 3/JAN/2002 Standard & Poor's assigned corporate governance score (CGS) of 'CGS-9.6' to UK-based BP p.l.c.

The impact of the BP oil spill in Gulf of Mexico has resulted in a drop in its credit rating, downgraded by rating agencies such as Moodys, Standard and Poor and Fitch.

After the spill BP shares have fallen by 45%. It is also the most heavily fined energy company in the US.

The response from the BP Board on this disaster has been deafening silence.

BP has tried hard to position itself as the "green" oil company. As such company wasn't as proactive with production risk analysis as they were with their PR campaigns.

Investors should scrutinize BP's Board governance structures and demand a full and immediate accounting of their failures and the actions that they will take to strengthen their project planning and Environenmental , Health and Safety (EHS) policies and procedures.

Support research that focuses on the quality of management defined not only in financial terms but also with regard to EHS concerns.