Lessons From The BP Oil Spill: The Rickover Lesson, And The Pitino Lesson

Some reasoned thoughts on the BP spill, and what can be learned from the experience.

James Hamilton, UC San Diego, shares the thoughts of Steven R. Kopits, an oil industry specialist. One of the points (all are cogent) is most interesting:

Do Send Field Managers to the 'Rickover School'. In an aggressive corporate culture seen in many oil majors, the ability of field managers to push back is critical. In such a situation, the most dangerous manager is one trying to dutifully comply with the mandates passed down from above. All field managers in the oil business (frankly, in the energy business) responsible for major at-risk activities, for example, the management of a refinery or an offshore drilling rig, need to know how to push back against management. The best I have ever met in this respect have been alumna of the nuclear fleet under Admiral Hyman Rickover. Rickover, considered the father of the US nuclear navy, left a legacy of technical achievements including the United States Navy's continuing record of zero reactor accidents. A key component of this legacy was the empowerment of subordinate officers and enlisted personnel to resist the unreasonable requests of senior officers. I don't know if this program is available commercially, but it wouldn't be too difficult to set up a school. Attendance should be mandatory.

Another lesson that can be taken away could be summarized by a quote recently attributed to Rick Pitino of the University of Louisville: 'If you tell the truth, your problems will become a part of the past. If you lie, they are a part of your future.' Rick should know, as he sowed the wind and reaped the whirlwind in these past few years. Look it up, if you wish. Warning given, however: It is a seriously, seriously ugly and disturbing cautionary tale.

Kids, choose your heroes wisely. Rick shouldn't be on the list, at least not for a long time to come.

As ugly as it was, BP did the right thing by letting the world view that oil gushing from its well for all those weeks. It was bad news, but it was the truth. When they finally did cap it, after showing their failures in live video, there was no doubt in anyone's mind that they had achieved the goal, ahead of the stated time-line. And now, the press is covering the clean-up, not the cover-up.

One of OS's acquaintances works in corporate PR. He's The Grim Reaper. If he shows up in your boardroom, your corporation is in very deep doo-doo. He gets called out 'when the knives are pulled', as he laconically says, with a quiet grin. OS calls upon his wisdom if he suspects things may go pear-shaped, before the knives come out.

Given what he's learned from The Grim Reaper over the years, BP made some very correct decisions in the midst of their deeply bone-headed ones.