Jul 30

BP recently announced the appointment of a new CEO: Robert Dudley, an American citizen who will take the helm of the oil company. Dudley will replace British national Tony Hayward who had been in charge of one of the world’s largest organisations for the last three years.

This decision did not come as a big surprise. Hayward is paying for the Mexican Gulf disaster which is considered one of the worst ecological disasters ever seen. Hayward’s very public role as CEO combined with several PR gaffes in the days that followed the platform incident have all played a role in him being replaced.

Most US journalists and communication specialists have pointed out a lack of commitment, concern and apologies from BP’s CEO during the oil spill. Hayward was also described as distant and not really interested in the events occurring in the Mexican Gulf.

Oil Platform Nick Cook i1 BP has a New CEO: Did Culture Play a Role?

© istockphoto.com/ Nick Cook

 

These accusations seem somewhat strange, however, if we look at the bigger picture. How could a CEO remain unconcerned when his company is responsible for a massive oil spill that will harm the brand’s image and potentially market value for decades? As emotions run high in the US and particularly in the Gulf of Mexico States it is easy for Americans to accuse the besieged BP Chief of being a callous polluter.

One of the key elements of this case is the nationality and culture of Hayward. As a British national, his communication style and core cultural values are different from those which you typically find in Americans. More precisely, Hayward is less likely to show his emotions openly. Brits are renowned for their reserve, straight face and lack of emotional display, even in tense and dire situations. Foreigners often perceive this to be quite cold and a sign of disinterest – hence the reaction from the American public.

Although much of Hayward’s communication style could be influenced by his national culture and values, much of his communication strategy was poor and things he said were inappropriate. This is where cultural awareness training can be really helpful. If he had known what kind of audience he was communicating to, what expectations they had of him and the style of communication they preferred, he could have adapted his approach to be more positively received.

A better understanding and awareness of US culture and communication styles could have helped Hayward to adapt and choose a better strategy to deal with this crisis. Americans are known to be more open and direct and tend to expect their leaders, businesspeople and celebrities to openly apologise in public when they have done wrong. Recent American history is full of incidents where famous “wrongdoers” have publicly apologised and been “rehabilitated” by the American public. After all, “To Err Is Human, to Forgive Divine” (Alexander Pope).

BP will have a new CEO in October. His primary objective will be to mend the image of the company around the world but particularly in the US. The fact that he his American will probably help him to find the right tone and style to accomplish this difficult task. Hopefully, his previous experience in other countries will also help him to adapt to other cultures as BP continues to work and expand in other international markets over the next few years.

Cross cultural awareness training programmes such as Communicaid’s Doing Business in the US or Managing International Mergers and Acquisitions can help organisations to deal with such cultural differences and react more effectively to crisis such as this one. Understanding the key differences in communication styles as well as cross cultural perceptions and business practices is essential for any organisation working in the international arena.

© Communicaid Group Ltd. 2010

Mar 17
Brazil 2 bkindler i1 God is Brazilian! The International Rush for Brazilian Oil

© istockphoto.com/bkindler

 

‘God is Brazilian!’ – Those were the patriotic words of Brazil’s president Lula da Silva, upon hearing of the recent discovery of new oil fields off the coast of Brazil which – if current estimates prove to be correct – could place Brazilian oil reserves level with those of Russia and Saudi Arabia.

The blocks are 170 miles off the coast, under both deep water and thick layers of salt, so drilling them promises to be technically very challenging. Yet the potential profit is so great that Brazil has become the focus of all major international oil companies searching for new reserves, including British-based BP.

While it has a strong presence in the Gulf of Mexico, BP was one of the few international companies with no assets in Brazil, at least until this week when it announced the beginning of a joint venture with US based Devon Energy. As part of the joint venture agreement BP has bought the American firm’s precious oil fields off the Brazilian coast, and has secured the future development of its oil sands in Canada.

The challenges posed by an international business venture of the size and importance BP is embarking on are many. Establishing new operations in foreign countries, or taking over the management of pre-existing ones require both technical know-how and a sound awareness of the cultural differences in business practices new and existing employees are likely to encounter.  Communicaid has worked alongside a number of international oil and gas companies providing tailored cross cultural training programmes to ensure employees have the right level of cultural knowledge and skills required to be successful when doing business in other cultures.

Cross cultural training programmes have included pre-assignment training for existing staff and their families prior to relocation. Programmes like Living and Working in Saudi Arabia provide employees and their families with the necessary input to live and work successfully in the target destination.

Communicaid has also delivered a number of tailored cross cultural training programmes for business and management to a number of large oil companies.  These programmes are designed ad-hoc with each organisation’s specific needs in mind and therefore vary in both nature and content.

One of the most common requirements international oil companies have identified is the need to train key decision makers to successfully Manage International Teams. The nature of the energy industry means that teams will most likely be composed of highly qualified and experienced individuals from a variety of cultural backgrounds. Creating a successful team spirit and working environment, bridging any possible cultural difference, therefore becomes key for the team’s success, and ultimately for that of the whole organisation.

Communicaid’s cross cultural training programmes are delivered by trainers with vast experience of the country of destination so they bring first hand experience and understanding of the potential problems that can occur both in the workplace and in ever-day situations in another culture. Training is highly interactive, allowing delegates to develop a concrete awareness of the cultural differences they will encounter and personalised ways of dealing with them.

While the race for Brazil’s black gold is most definitely on, unlike most races the first one to get there is not necessarily the winner. Many international joint ventures are known to have failed with the passing of time, often due to a lack of cross cultural awareness by all parties involved.

Communicaid has long recognised the risks to global organisations of ignoring cross cultural differences in international operations and has developed a vast network of trainers and a rich database of materials to provide international companies the training they need to avoid lost money and time and give them the competitive edge.

© Communicaid Group Ltd. 2010

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