Modern corporations are like gigantic trees. They require the deep-reaching roots of trust and philosophy on which to build a strong, thick stem of revenue to support their multiple subsidiary branches. Every leaf does its bit to advance the growth of the tree, just like the top-down and bottom-up approaches followed by organizations universally. Let’s know about BP Organizational Structure.
About: Persian Roots and diversity of products
Established in 1909 as the Anglo-Persian Oil Company, and later christened into British Petroleum in 1954, BP is one of the largest oil and natural gas companies in the world. With revenues in excess of $183 billion, and with a history of being the first to strike commercially viable oil in the Middle East and Iran, British Petroleum is rightfully counted amongst the world’s seven oil and gas supermajors. With time, it has also divested into renewable energy resources such as solar and wind. With a diverse repertoire of resources and products, having a good team to ensure stability is vital to any company. On the whole, British Petroleum has about 11 divisions led by 11 Vice Presidents, all answerable to the board of directors and the CEO Bernard Looney.
Board of Directors: The Knights of the Oil Table
British Petroleum has a board of eleven directors who answer to shareholders. The board makes top-level policy decisions for each of the individual departments to implement. In modern companies, the board is answerable to the shareholders of the company and often enjoys a stake in it as well. This makes the board responsible for the success and failure of the company, although only the CEO really directly oversees the implementation of those policies. The highest echelon of British Petroleum features heavyweights with years of experience in other high-level roles with giants like Dean Whitter and Motorola.
CEO- Bernard Looney
Chairman of the Board- Helge Lund
Board of Directors-
Paula Reynolds
Pamela Daley
Erroll Davis
Melody Meyer
Tushar Morzaria
Brendan Nelson
Karen Richardson
John Sawers
Johannes Teyssen
The Enforcers- Evolution and Value Growth
If the board is like the brain of the company, then the Executive Vice-Presidents are like the other organs that pump blood and keep the machine running. They are all answerable to the Chief Executive Officer Bernard Looney and are responsible for the smooth functioning and the day-to-day operations of the company. British Petroleum has 11 departments, each handling a niche of the business. Each department has its own Executive Vice President who oversees all operations and a core leadership team looking into all aspects of the department. Out of these 11, four business groups facilitate the achievement of their goals of going carbon neutral and reducing methane and carbon intensity in their products.
- Customers and products: A healthy customer relationship built on trust and satisfaction is a must for any successful organization. The customers and products department emphasizes developing and innovating current and new products to keep their customer base happy. They envision a future wherein lubricants and fuelling will be much safer than it is now. The department is led by Emma Delaney and is also responsible for the operations of brands like Castrol.
- Gas and Low Carbon Energy
Probably one of British Petroleum’s most important departments, Gas and Low Carbon Energy, has the crucial undertaking of handling all of its renewable energy resource businesses. With the deposits of mineral oil fast getting depleted, and not to mention the effects they have on the environment, this department is committed to British Petroleum’s goal of going net-zero by 2050. The team is led by Executive Vice President Dev Sanyal and is responsible for growing and developing the gas, biofuel, solar, hydrogen, and wind energy resources of the company.
- Innovations and Engineering
Innovation makes products better and more efficient. They lead to a transformative shift in the way we do things. For an energy company like British Petroleum, this means research for a cleaner tomorrow. This also means safer operations of all its businesses. The department led by David Eyton invests around $100 million per year in new companies and upgrades its infrastructure to make it safer for workers, hence enabling their march towards a cleaner environment and energy resources.
- Production and Operations
British Petroleum is an oil company, and its primary business is sourcing and refining mineral oil through efficient, clean, and ethical resources, processes, and assets. The department, run by Gordon Birrell, discovers oil resources around the world and operates pipelines and refineries. It hopes to amalgamate all of its oil business to bring safety and efficiency to the industry.
Does x mark the spot? Finding opportunities- Integrators
These departments act as the glue that holds BP’s act together. They help coordinate all of BP’s programs and put ideas onto paper. They also help BP advocate for a carbon-neutral world by forming associations with cities and organizations.
- Strategy and Sustainability
The department was formed to reemphasize British Petroleum’s commitment to net-zero carbon emissions in the near future. The department integrates its energy systems, partners with government entities and cities, and develops a sustainable approach to carbon management activities. Led by Executive Vice President Giulia Chierchia, the department acts as an adhesive to coordinate strategies from all departments and then put them into action.
- Regions, cities, and Solutions
Cities have always been complex. That’s because people are complex, especially in the 21st century. Electricity and the lightbulb have enabled billions to come out of the darkness. With the advance of technology and prosperity comes the growing demand for energy resources. Citizens also expect a certain quality of life for their families. Led by William Lin, this department partners with cities around the world to meet all their energy problems while not compromising the safety of citizens. Sustainable development for local communities and businesses is the name of the game here.
- Trading and shipping
Global supply chains are complex, but they are critical for any business, especially for oil and natural gas companies like British Petroleum. This department, led by Carol Howle, operates and oversees all of BP’s trading partners and modes of transportation. Transporting natural resources can be a hazard-prone occupation, so the department is critical to BP’s clean energy goals. The department also hopes to bring its zero-carbon dream to global supply chains as well.
The catalysts- Communications, Finance, Legal, People, and Culture
Apart from its business groups and operational departments, British Petroleum, like any other multinational company, has its own legal, finance, cultural, and communications departments. Chief Financial Officer Murray Auchincloss oversees a host of other subdivisions within the finance department, each with its own leaders and vice presidents. These include:
- Mergers & Acquisitions- Robert Lawson
- Tax- Jan Lyons
- Finance- Kate Thomson
- Accounting, Reporting & Control- Jane Hodgson
Eric Nitcher is the face of British Petroleum’s legal integrity as Executive Vice President, while the People and Culture Department under Kerry Dryburgh works to hone world-class recruits.
From a company founded to exploit middle-eastern oil resources, British Petroleum has transformed into an advocate for clean energy resources. Key to this transformation is the multitude of organizational shakeups and reforms which have resulted in the current structure that we see today. Running a company isn’t easy, but the blend of talent, organization, vision, and structure is what made British Petroleum dripping in oil.
