Strategic Asset Management: A Critical Analysis of Deepwater Horizon Disaster at BP

STRATEGIC
ASSET
MANAGEMENT

Introduction
 The focus of the presentation is on the strategic management of
assets considering the case scenario of Deep water Horizon
disaster of 2010 at BP.
 The assets’ management failure can be experienced while
defining the asset management requirements and even during
the designing phase or operating phase
 This will help in mitigating the risks and manage consistency all
throughout the asset life cycle
 The critical analysis of Deep water Horizon disaster in the year
2010 will also focus on the causes and how crisis management
approaches can be undertaken.

Concepts of strategic asset management
 The organisational assets tend to reflect the creation of value and costs
incurred along with implementing strategies to sustain in the future
 The strategic asset management plan involves disaster plan development
and protect brand image, reputation and mange services too consistently
 The management of assets is possible through investments and with the
purpose of mitigating the risks and maintain enhanced business performance
 The management of both tangible and intangible assets can facilitate the
completion of the entire asset life cycle and ensure successful management
of resources too quickly and appropriately

Strategic asset management
 The tangible assets are machineries, equipment, working space, tools while
the human resources, financial assets, working capital, brand image and
reputation are considered as intangible assets
 With the strategic asset management, BP has created a good balance
between risks, performance and cost for delivering effective solutions across
the entire asset life cycle
 The asset management excellence pyramid defines new ways of thinking and
management of planning and scheduling needed to maintain better control,
continuous improvement and consistency of business functions.
 It can even improve the business functioning for BP to ensure vale creation
and maintenance of reliability through optimisation of processes in the asset
life cycle