This week BP signed a joint venture with Russian state energy firm Rosneft to exploit potentially huge deposits of oil and gas in Russia's Arctic shelf. The agreement will see the firms exchange expertise in exploring the region. It is BP's first deal since the Deepwater Horizon spill in the Gulf of Mexico last year, which cost it billions.
There are many leadership lessons we can take from this, lets take just two:
1. Why are BP doing this?
To answer we must surely look at the Mission and Values of BP – from their website we find this statement:
"BP wants to be recognised as a great company – competitively successful and a force for progress. We have a fundamental belief that we can make a difference in the world.
We help the world meet its growing need for heat, light and mobility. We strive to do that by producing energy that is affordable, secure and doesn’t damage the environment.
BP is progressive, responsible, innovative and performance driven."
BP leaders have set this up as a guide to all their actions. The deal with Rosneft is clearly in line with their mission of “helping the world meet it’s growing need for (energy)”.
2. How are BP doing this?
BP have been active in Russia for over 20 years, so this is not something that happened overnight. They have built up strategic relationships and this deal signals a new level of co-operation between a Corporate giant and a major country. BP will provide the knowledge and know-how to retrieve the energy resources from the Arctic, while Rosfelt provides the access to those resources. There is also an exchange of shares so that BP will own 9.7% of Rosneft and Rosneft will own 5% of BP – so each can tangibly partake in the success of the other. A clear synergy of purpose.
The lessons to be learned here then are around the importance of having a Mission and the ability to create relationships that help to make the goals possible. Have you a mission for your sphere of influence? Do all your actions relate to the mission? How are you at creating the positive relationships that help you achieve that mission? Especially those close at hand i.e your staff!
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