Knowledge Management Initiatives at British Petroleum
(Page 2)
Abstract
The case discusses the various knowledge management (KM) initiatives undertaken by the UK- based oil and gas exploration major British Petroleum Plc. (BP) in the 1990s. It describes in detail the Virtual Teamwork project started in late 1994; the Knowledge Management team established in 1997; and the application of KM tools for reducing the emission of harmful gases like carbon dioxide and methane in the late 1990s. The case also describes the various KM tools used by BP including Peer Assist, BP Connect, After Action Review and Retrospect. The benefits reaped by BP through the above KM initiatives and the challenges faced during the implementation process are discussed.
Headquartered at London, UK, BP also operated in other parts of Europe, North and South America, Asia, Australasia and Africa. One of its subsidiaries, BP Exploration and Production (BPX), was engaged in oil production and exploration activities. In 1993, BPX
was reorganized into 42 separate units, termed the "federation of assets." The
units aimed at accomplishing the overall strategy of BP, but enjoyed complete
autonomy in their operations.
They were free to develop their own processes and solutions according to their local requirements. In order to integrate the efforts of the business units engaged in the same business activities (for example, refineries), they were organized into peer groups. Each peer group consisted of around 12 business units, which met periodically to discuss the performance of their businesses. The purpose of the reorganization was to facilitate knowledge sharing, i.e. to pass on the knowledge, creative capabilities, and expertise of the employees in one unit to those in the other units of BPX.
To achieve this objective, proper communication infrastructure was required to facilitate frequent interactions between the units. Consequently, in 1994, John Browne, the then CEO of BPX, initiated the Virtual Teamwork Project (VTP).
This was an 18-month, $13 million pilot project to connect the units with communication equipment and test the communication infrastructure in terms of its problem-solving and cost saving capabilities. The VTP was designed to enable employees to share task-specific information and develop a cordial working relationship with the employees of other units. The aim of VTP
was to encourage the sharing of knowledge and to motivate the business units to
utilize IT tools to improve their business....
More...
FORMATION OF GROUPS
TABLE I : THE FIVE GROUPS SELECTED FOR THE VTP
THE CHALLENGES FACED
THE BENEFITS REAPED
THE FOLLOW UP
TABLE II : KM TOOLS IN KM FRAMEWORK AT BP
EMISSIONS TRADING AT BP
THE EMISSION TRADING SYSTEM AT BP
QUESTIONS FOR DISCUSSION
EXHIBIT I : BP'S FRAMEWORK FOR KNOWLEDGE MANAGEMENT
ADDITIONAL READINGS OR REFERENCES
Case Code ITSY026 Case Length 11 Pages Period 1994 – 2002 Organization British Petroleum Pub Date 2003 Teaching Note Not Available Countries UK Industry Petroleum
Issues
• To understand the KM tools and techniques adopted by a company successful in its KM initiatives.
Keywords
Knowledge management, KM, UK, based, oil and gas, exploration, British Petroleum Plc., BP, 1990, Virtual Teamwork, 1994, 1997, KM tools, emission, carbon dioxide, methane, 1990, Peer Assist, BP Connect, After Action Review, Retrospect.
Please note:
This case study was
compiled from published sources, and is intended to be used as a basis for
class discussion. It is not intended to illustrate either effective or
ineffective handling of a management situation. Nor is it a primary
information source.
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