Knowledge Management Initiatives at British Petroleum

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.

"The wonderful thing about knowledge is that it is relatively inexpensive to replicate if you can capture it. Most activities or tasks are not onetime events. Whether it's drilling a well or conducting a transaction at a service station, we do the same things repeatedly. Our philosophy is fairly simple: Every time we do something again, we should do it better than the last time."

- John Browne, CEO, British Petroleum.

"The biggest single source of sustainable competitive advantage in the future will be our ability to create and mobilize knowledge in the interest of new products and services."

- Kent Greenes, Knowledge Management Team Leader, BP Amoco.

By the end of 2001, the UK-based British Petroleum Plc (BP) had successfully implemented the emission trading system (ETS) in all units of the company. The ETS enabled BP to reduce the harmful emission of two gases - carbon dioxide and methane - in a cost-effective way. The company used advanced knowledge management (KM) applications such as internal electronic markets (IEM). By March 2002, due to ETS, BP could reduce the quantum of emissions from all its business units by 10%.

Analysts felt that one of the main reasons for the success of BP's KM initiatives was the enthusiasm displayed by the employees in knowledge sharing and in applying various KM tools in their work. Commenting on the significance of BP's KM initiatives, David Negal, the head of BP's gas unit in Egypt, said, "The model here (at BP) is an open market of ideas and people develop a sense of where the real expertise lies. Rather than having to deal with the bureaucracy of going through the center, you can just cut across to somebody in Stavanger [Norway] or Aberdeen [Scotland] or Houston and say, 'I need some help. Can you give me a couple of hours?' And that is expected and encouraged."

BP, which was founded in 1909 as the Anglo-Persian Oil Company in Iran, had emerged as one of the leading oil exploration companies in the world. Its primary activities included exploration and production, and refining and marketing of oil and gas (through its network of subsidiaries engaged in the chemical, exploration, gas, power and solar industries).

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        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.

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.