The explosion of the Deepwater Horizon oil rig not only caused the tragic loss of 11 lives, but is now the most catastrophic environmental disaster in history. It’s appalling to think that the initial explosion occurred on 20 April and there’s still an estimated 20,000 barrels/day pouring into the Gulf of Mexico (see BP’s live feed) with no end in sight. To-date, oil/tar balls have been discovered in Florida, Mississippi, Alabama and Louisiana even though the USG has recovered over 338,000 barrels of oily water and continues to conduct booming and skimming operations to protect the coast (click here for a map of the impacted area).
In the world of crisis management/contingency planning/risk management, this catastrophe was a foreseeable event. At some point, BP should have asked the question “what if we have a catastrophic break one mile down?” The next question is “what are our options for the worst case scenario and what’s the timeline for each of those options to avoid/minimize environmental/human impact?”
Unfortunately, because of the lack of good planning, we are seeing ad-hoc crisis management play out and it’s not going very well. Not only is BP failing at crisis communications (click here for more), but they’ve now been pushed into a defensive posture by the growing stable of lawyers from the Justice Department; thus, are less likely to take necessary risks to stop the spill for fear of further liability.
It’s hard to believe that with all the amazing technological advances and the brilliant minds we have around the globe, there wasn’t a prioritized list of options within 24 hours of the explosion and we still haven’t come up with a good fix over a month later. We’ve heard “top kill”, “top cap”, “relief wells” and “blow out preventers”, but nothing is working and most of these options are being developed in the heat of the moment (not a good plan). Now we see the growing slick extending from Louisiana to the Florida Keys.
So where do we go from here? We learn – hopefully. Some of the lessons learned from this crisis:
- Understand your risks: if you say “it will never happen”…it will. An oil rig that’s connected to a mile long pipe going into the floor of the ocean (and down another couple miles) can break and may break in the worst place possible. Know what the worst case scenario is and at least talk about it!
- Establish the Incident Action Plan: start with the immediate damage assessment and quick reaction clean-up (e.g., booms and skimmers) to the off-the-wall course of last resort (a Massive Ordnance Penetrator, MOP, bomb or nuclear weapon).
* If you communicate the options early, especially the least desirable/most controversial, you’ll have less resistance if you have to employ the most controversial option.
- Communicate: don’t hide the facts – they will come out and your company will lose in the court of public opinion or worse. Open, honest communication with the press/public is critical. Empathize!
* An executive saying “I want my life back” when people died and many lost their livelihood is not only terribly insensitive, but creates another PR crisis for the company.
- Collaborate: consider engaging experts from various disciplines. Nobel prize winners and scientists may not have the practical experience or ability to “expand the box” to actually come up with the right fix.
- Analysis: no mitigation plan can be too outrageous. Have a process to analyze and disposition ideas so good ideas can be harvested quickly.
*If people/companies offer ideas and they feel they are being ignored, they’ll go to the press and make it look like the company isn’t doing everything possible to resolve the crisis.
Two appropriate quotes to close from Benjamin Franklin and Elbert Hubbard:
“By failing to prepare, you are preparing to fail” and “A failure is a man who has blundered, but is not able to cash in on the experience”
Prepare and learn from mistakes…excelsior