Managing the BP Disaster: A Case Study On April 20, 2010, the Deepwater Horizon oil rig exploded in the Gulf of Mexico and killed 11 workers on board the oil rig (Webley, 2010). The rig sank into the ocean after burning for several days. Because the underwater well was more than 5,000 feet below the oceans surface, the well could not be easily capped, and eventually more than 184 million gallons of oil leaked into the Gulf (Webley, 2010). In addition to the human loss of life, the regions fishing and tourism industry was devastated as a result of the explosion and subsequent spill. Days after the Deepwater Horizon spill, British Petroleums CEO Tony Hayward toured the impacted region that was ravaged environmentally and economically from the oil spilling into the Gulf of Mexico. According to a Time magazine report, Hayward told reporters, I would like my life back, referring to the way the spill had taken over his time (Walsh, 2010). Several weeks after that comment, Hayward entered his yacht in the JP Morgan Asset Management Round the Island Race, which some felt was being insensitive to those suffering from the explosion and its effects. Charlie Kronick of Greenpeace said Hayward was rubbing salt into the wounds of Gulf residents whose livelihoods have been wrecked by the disaster (Sherwell, 2010). Hayward has a PhD in geology and specialized in oil exploration and production before assuming his position as CEO. However, his actions following the spill exemplify the importance of possessing emotional intelligence; unfortunately, he lacked the understanding to navigate the sensitivity of the situation. Eventually, Tony Hayward was replaced at BP by American Robert Dudley, who grew up in Mississippi. According to a New York Times article, Dudley spent his summers fishing and swimming in the Mississippi Gulf (Mouawad & Krauss, 2010). Dudley has an appreciation of the region that Hayward did not, which may have contributed to his public insensitivity. Dudleys appointment as CEO of BP marks the first foreigner as head of the organization. Rice Universitys Amy Myers Jaffee considered Dudleys appointment historic and added that it sends a message that merit and competency mean more than nationality (as quoted in Mouawad & Krauss, 2010).

1. If you were in Haywards position, how would you have handled the aftermath of the oil spill? 2. Think about the balance that is required between technical skill and emotional intelligence; what do you think is more important for a leader? 3. It appears by the appointment of Dudley that culture has a bearing on sensitivity. What do you think? 4. Does cultural aptitude impact ones emotional intelligence? 5. What advice might Hayward take from Drucker (cited toward the beginning of this chapter) to improve his success in the future?