INNOVATION AND ENTREPRENEURSHIP

Innovation and Entrepreneurship in British Petroleum



Innovation and Entrepreneurship in British Petroleum

Introduction3

Pressures for Change5

Demographics:5

Social values:5

Globalisation:6

Technological change:6

Development for All People in the Organisation6

Management Learning and Development8

The competency approach to development8

Role of Training and Education9

Conclusion10

References13

Innovation and Entrepreneurship in British Petroleum

Introduction

Most organisations which are currently thought of as successful have, over recent years, made considerable efforts to improve company performance through attention to financial structure, costs and corporate control. This concern with incremental change in organisation's management frequently reaches remark able heights of invention - but does it really address the key issues? Is this continuous process of fine tuning of systems and financial assets likely to produce any more than modest returns?

British Petroleum appreciates that the bond which unites it has less to do with assets than with the values which underpin its organisational culture and management style. These values are the key to organisational transformation and are the very essence of the learning organisation. These are reflected in people's reaction to the way they are managed and developed; how they are able to learn and what it feels like to work for this company (Toffler, 1980, 210-220). They involve the emotional aspects of employee relationships and their commitment to the company. Thus, although these values may sometimes seem intangible, they nevertheless have great power and impact, particularly if it is accepted that the ultimate form of management is through cooperation and consent. BP sees this as the only viable option for management of scarce human resources in the 1990s and beyond. It recognises that neglect of these values, and of the key role of people in the organisation, will impair its capacity to compete in a changing future.

However, it is also important to consider the organisational context in which these values will be reflected. What is the focus for added value in a multinational such as BP? Carlzon (1987) began efforts to achieve competitive advantage for Scandinavian Airlines by identifying this “moment of truth” as the customer interface. The energy driving change was therefore the realisation that the quality of customer service was a direct reflection of the way in which staff were managed (Carlzon, 1987, 75-80). However, this interface is not always as clear-cut for the organisation whose business is highly capital intensive, with complex products and processes. Added value for these organisations often lies in the application of high quality expertise to technical, commercial and financial problems by highly qualified and trained professionals, often working as teams. This expertise is applied through professional pride and sometimes through personal ambition, but how often through personal commitment and loyalty? Do companies always have the hearts as well as the minds of such staff?

Pressures for Change

Drucker (1989) believes that “the next century is already here”, but points to “the profound sense of unreality which characterizes much of today's politics and economics” (Drucker, 1989, 46). If this is true in such a broad context, is it so surprising that many organisations are tempted to play down the scope and significance of the ...