The Gulf oilrig explosion and its aftermath is an example of how what we do (or fail to do) impacts others we don’t know in ways we haven’t even considered. Did the relentless push to drill, baby, drill faster to save money and to get the oil (revenue) flowing as quickly as possible compromise BP’s values? Lives have been lost; livelihoods are endangered; ecosystems and economies may never recover. Even my condo in Hilton Head has seen an increase in rentals because vacationers don’t want to risk a holiday on the Gulf coast. The ripple effect will be felt globally through many channels in very quantifiable ways.
We are so intertwined and so connected, thanks to technology and the Internet; we are so darned global that more of us have the power to impact other people’s lives than ever. So, how we behave; how we treat others and how we build trust with employees and customers have an exponential impact on them, on others we can’t even identify and on our own businesses.
Leaders: this is where you come in.
The CEO of BP can hug all the fisherman in Louisiana he wants but if he put profit before ethical behavior (by short circuiting safety for example), what does that say to his employees in terms of their own behaviors? How should customers react? What has this done to BP’s prized Brand? Judging by recent loyalty scores for Toyota, for example, customers and would-be buyers take time to recover when confidence is shaken.
BP’s Values are Progressive, Responsible, Innovative and Performance-driven. It looks good on a web site but do they influence behaviors and decisions? Time will tell and the whole world will be judging.
As a leader, Tony Hayward needs to demonstrate how he and his company will rise above PR, litigation and playing the blame game to behave in a way that inspires confidence and trust. That behavior will ricochet around the world in social media channels and news outlets as fast as the bad news is traveling. His recent performance on Capital Hill suggests that this is not a lesson Mr. Hayward has learned yet.
Dov Seidman, author of the book, How, says that we all now live in the “Era of Behavior”. He argues that too many of us are behaving by situational values or whatever the situation allows. Sustainable values on the other hand inspire us to do what should be done in every situation; they strengthen relationships for the long-term and reinforce our reputation in the global networks that drive our brand performance.
If how we behave doesn't match what we say on web sites, in annual reports or corporate communications, how successful do you think we will be with issues like employee engagement, customer commitment or organizational culture change? Behavior matters. End of story.
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The issue may not be as simple as it appears. Yes, Hayward has an obligation to all those people damaged by the spill but what of his obligation to BP, it's employees, it's shareholders, it's stakeholders, all the retirement funds that hold BP and the list goes on? The more he comments the more those comments will turn up in what is almost guaranteed to be the largest case ever litigated in the US. Is it possible the litigation could totally destroy BP? If so doesn't he have an obligation to prevent that while balancing the needs of those hurt by the spill?
ReplyDeleteThese are the times that define real leadership and ultimately what is "right" in the long term may not be "right" in the short term.
Makes for an interesting discussion and may give pause to all those who seek leadership positions?
Thanks for your comments, Pat. No, it's never as simple as it appears, is it? But, I feel strongly that when a leader takes that role on, there is an accountability that cannot be ignored. Mr. Hayward did not acquit himself well during Congressional hearings: blame games and finger-pointing do not make for good C-Span or social media commentary.
ReplyDeleteYes, he has a responsibility to BP's stakeholders in terms of preserving equity, jobs and so on. But his larger duty is to live out BP's vision and values and I think that's where he has fallen down. Otherwise, it's a case of do as we say, not as I do.
I agree that leadership positions are extremely complex, which is why I think that a company's values matter so much these days.
While none of the three executives acquitted themselves well, Congressional hearings are a lose/lose proposition. No one ever looks good in those spectacles including the congressmen & women.
ReplyDeleteWho are we to say that he isn't living out BP's values as he sees them? Is it possible that our perception of those values is different than his. He could see drilling a 13,000 ft. well in 5,000 ft. of water as both innovative and progressive. He could see announcing BP is responsible for the clean up as being as far as he could go on responsibility without betraying his responsibility to the stakeholders. He could see attempting to limit the potential punitive damages as being performance driven.
None of that might square with our interpretation of those values. So maybe the real issue is shared values?
Right, I can agree it is shared values but how do we perceive those in action except in behaviors? BP has done a masterful job under Lord Browne of linking brand with vision and values; I think he did a great job of creating sizable brand equity with the concept of Beyond Petroleum.
ReplyDeleteBut, values have to endure even under an impatient and modern CEO like Tony Hayward. So are we saying that there are versions of a company's values? I guess that would be like having situational values as well as situational behavior! He says BP is responsible, one of the values, yes, but he equivocates by stating the accident isn't BP's fault. And, there are a lot of employees who are talking about the disconnect between what is said in public now and what has been done in prior years. I understand about his fiduciary responsibilities and they are onerous, so why not just state that everything that can be done will be done within the company's values and stop with the sound bites and the 3-minute camera opportunities? How we do what we do matters.
You're making me think a lot today! Thank you.
Barbara, you are right that there were many ways he could of done a better job articulating BP position that would have been more consistent with the stated values and still protected the company.
ReplyDeleteLord Browne was no role model for the stated values given the discovery of the safety violations following the Texas City refinery explosion.
I don't think there are situational values but I do think that values can play out differently depending on the situation - if that makes any sense at all.
I agree Pat that BP's safety record is nothing to be proud of but Browne did create that "shareholder value" thing that some people think is more important than any other leadership activity. And that drives me crazy! I guess where we differ is that I don't think values should play out differently depending on circumstances; for me, that's the point of values. It's like what all of our parents taught us about behaving in a certain way no matter what. I can be situational about a lot of things but on values, I'm a fundamentalist. Better not to parade non-existant values around and then abandon them when things get tough. If you do that, you don't have values.
ReplyDeleteShareholder value is certainly one of the metrics that measures leadership in a public company but it isn't the only metric nor necessarily the most important.
ReplyDeleteI'm interested in the concept of a value fundamentalist. Suppose one of your values was safety and you saw a small child about to venture out onto a busy street. Later you saw another small child about to climb a small tree. Both situations represent unsafe situations but my sense is you could react differently to these two situations but still be consistent in valuing safety.
Or better yet you value honesty and someone asked you how they looked and you replied "fine" when you really thought "dreadful". Can you be consistent to the value of honesty and spare others the brutal truth?
That's what I meant by values playing out differently depending on the situation.
I think it's better for companies and people to think very carefully about what matters most to them. If one of my core values were Do The Right Thing, I would attempt to save the child in the street and watch the child in the tree. They are two different scenarios based on degrees of risk to the child. But, I wouldn't blow off either child.
ReplyDeleteI love this discussion but my point in Tony Hayward and BP's collective case is that one of their core values is responsibility. When you take on an enormously risky (and lucrative) project with no fail safe, no back up plan(s) and an attitude that other companies stand in front of them in the litigation queue, that's not living up to that value. So, better not to publicize something that isn't authentic and be the company and the person you are and let the chips and the oil fall where they may.