What’s the point of performance management, if a business is neglecting risk management?It’s interesting to see news that BP’s Tony Hayward has stepped down as Chief Executive, effective 1 October. This is not just for failing to adequately handle the PR aspects of the spillage in the Gulf of Mexico. But as is becoming increasingly clear, the disaster looks like it was a result of cutting costs to the point of taking unacceptable risks, and management ignoring warnings from staff.
The cost of the spillage, both directly and in the damage to BP’s reputation, is way in excess of any savings. The share price has been decimated, still a third down on its price before the accident. Sadly it appears it wasn’t just a matter of if, but when.
If you are in business, where are you taking excessive risks? With any aspect of your IT systems? Or would you prefer the pay-off when you have to leave?
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