CHANGE MANAGEMENT

Understanding Change Management Cases of British Petroleum



Understanding Change Management Cases of British Petroleum

Introduction

The research report discusses the process of change management at British petroleum. The main focus of the research report lies on two case scenarios. First when company had to change the mode of payment from local currencies to the Euro. And second is about operations change management in the chemical division of British petroleum. The report also explores literature available on the subject from academic journals and books, while it attempts to contribute in understanding of the concepts related to change management from these two scenarios.

Conversion to Euro

December 31, 2001 - non-negotiable term of BP oil, so that all their petrol stations in Europe in euros. Eighteen months to go, and they were in a panic, until Phil Crane intervened for the project change management.

Tony Blair is not the only one who suffered from the Euro-headache. Two years ago, BP Oil faced the mammoth task of converting 5,500 gas stations across Europe in local currencies to the euro. This meant that new systems for point of sale, back office management, pumps and other equipment at petrol station forecourts. BP Oil vs. non-negotiable deadline - December 31, 2001, the day before the currency in the euro zone countries was to converge. Business was under some considerable pressure.

Six management companies - in Austria, Germany, Holland, France, Portugal and Spain - were involved, along with the three suppliers, British, Italian and Danish. Coordination of vendors was a challenge, and companies need more attention on developing implementation plans and project support. BP Oil is trying to cope with the problem without any central point of responsibility, and floundering.

Graham Pooley, Euro Project Leader at BP Oil, says:. "We need someone to coordinate the implementation of the euro, which means the definition of what is required from a business perspective, all these different countries and markets, turning it into a technical specification that vendors, operating units and BP Oil central command failed to agree on and then following through the program, keeping all parties on the course through constant communication".

Time for Interim Changes

They realized that they needed an experienced specialist, and at first looked at the advice. "We could not find the person with the requisite qualifications and experience," says Pooley. They turned instead to time the market, and found someone who met their needs exactly. Philip Crane just retired from the Royal Dutch Shell after almost 35 years in the oil industry, where he specializes in the IT retail systems. "Phil was exactly the right experience," says Pooley. "But as well as his technical background, he was also very strong interpersonal skills, allowing him to act as a mediator and get all the different cultures, markets, and a group of people working together. He has established credibility quickly with suppliers, retail management and IT people on earth. "

Not only that BP Oil to fulfill its terms to switch its systems to the euro, it has completed the design change management by 25 ...