When John Browne became head of BP Exploration he was determined to transform the company from underperforming bureaucracy to a global leader.

Although BP was successful, the world was changing, and the business had to become more adaptive to keep pace with new rapidly changing economy.

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To enhance organizational capability, BP reduced or removed central functions, and business units were empowered to choose their own routes to implement changes. BP's organizational structure has evolved significantly towards an entrepreneurial, empowered "federation" of 100 business units. A flat organization was established. The number of management levels was reduced from 13 to 5.

The Browne's strategy for BP included:

1. Entrepreneurial design driven by consistent decentralization

2. Single common strategy

3. A knowledge network of peers across the business units.


As a start of creating more value, both internally and externally, Browne opened up the organization, decentralized it, established information sharing and knowledge management  networks and developed an action plan for competitive corporate learning >>>

To find a natural equilibrium between creative chaos and order and free the energy in BP, Browne moved the organization to the situation that was at the edge of chaos. He created room for different thinking. The company adopted new business thinking and a new relationship to its business ecosystem.

New approaches to developments, new working relationships with contractors and new alliances have been adopted.

Browne's strategy included also process improvement, major outsourcing, and asset sales.

Most importantly, it included total changes in BP corporate culture.

As a result of corporate transformation, BP increased the value of its share price by a factor greater than 10 in a period when other companies were seeing marginal improvements in their share prices. The overall benefit of company-wide transformation was measured in billions of dollars.