'''
The Challenge: Developing Leaders in a Time of Crisis
In 1992, facing a record-low share price and a change in CEO, British Petroleum (prior to its merger with Amoco) identified the need for a systematic approach to leadership. The company was undergoing a massive culture change initiative, "Project 1990," to foster a more open and empowered leadership style. However, it lacked a common set of expectations for what successful leadership looked like within this new culture.
To address this, the organization launched an integrated, competency-based management development system. This system became a cornerstone of its turnaround, helping to develop world-class leaders who would significantly increase the company's value over the next seven years.
Developing the Leadership Competency Framework
The foundation of the new system was a set of clearly defined leadership competencies.
Identifying Core Competencies
To define what separated great leaders from average ones, the company undertook an 18-month study of its top 120 leaders. Using behavioral event interviews, it compared a group of "superior" leaders (those seen as successors to the managing director) with a group of "average," or plateaued, leaders. The analysis revealed the unique characteristics that distinguished superior performance.
These competencies were then refined by a global group of stakeholders to ensure they aligned with the company's strategic direction and were articulated in the BP-specific language. This strategic alignment and leadership buy-in were critical to the model's success and longevity.
The Nine Leadership Competencies
The final model defined the behavioral framework for outstanding performance at the top of the organization. It consisted of nine core competencies, each with three underlying behavioral indicators.
| Respected Player | Acts Wisely & Decisively | Leads Change |
| Strategic Influencer | Builds Best Teams | Shapes Performance |
| Strategic Conceptualizer | Environmentally Astute | Ensures Alignment |
With sponsorship from the CEO and managing directors, the competency model was cascaded through the top 3,000 leaders in the organization.
Tools for Assessment and Development
Defining competencies was not enough; leaders needed tools to measure their performance and guide their growth.
360-Degree Feedback Tool
A 45-item digital questionnaire was developed to allow leaders to receive anonymous feedback from their manager, peers, and direct reports. The results were aggregated into a comprehensive profile, often visualized as a "snowflake" diagram, highlighting strengths and development areas against the nine competencies. An HR specialist would then help the participant interpret the results and build an action plan.
However, this 360-degree process had limitations:
- Raters and participants might not have opportunities to observe all nine competencies in a given role.
- Results could not be used to compare individuals due to differing roles and raters.
- Aggregating the data for strategic analysis was not meaningful.
The LEAD Program: A Senior-Level Assessment Center
To overcome these limitations, BP Amoco created the Leadership Enhancement through Assessment and Development (LEAD) program in 1993. This senior-level assessment center was designed to provide a standardized, objective measure of the nine leadership competencies.
Participants were nominated from the top tiers of leadership based on performance and potential, with an option for self-nomination. Observers were selected from the organization's top 275 senior leaders, who in turn received development in observation, data gathering, and feedback skills.
Inside the LEAD Program
The week-long program used an intensive business simulation to assess leadership behaviors in a controlled environment.
Business Simulation
Participants engaged in a two-day simulation set in a fictional global beverage corporation. This setting leveled the playing field, ensuring assessment was based on leadership behaviors rather than specific industry knowledge. Participants tackled various people, operational, and strategic challenges in individual and group settings.
Integration and Performance Evaluation
Following the simulation, teams of observers and an industrial/organizational psychologist spent over 14 hours integrating their observations for each participant. They used a five-point, behaviorally-anchored scale to rate performance across the nine competencies, categorizing each as a strength, a development need, or a weakness.
Feedback, Reporting, and Action Planning
On the final day, participants received a 90-minute feedback and coaching session from a senior observer. They later received a detailed written report. Crucially, participants were required to form a "Development Group" with their line manager, an HR professional, and a mentor. This group reviewed the LEAD report alongside other performance data to validate its findings and co-create a clear, actionable development plan. This step was vital, with 90% of Development Groups confirming the reports as "fair and accurate," thereby validating the program itself.
Strategic Application of Competency Data
The LEAD program provided powerful data for both individual and organizational development.
Matching Competencies to Business Needs
The company developed "fingerprints" by mapping the most critical competencies required for success in different strategic business situations. This provided a framework to guide career development discussions and place leaders in roles where they could best succeed and grow.
Aggregating Performance for Strategic Advantage
Unlike the 360-degree data, the standardized results from the LEAD program could be aggregated. This gave the organization an unprecedented, quantitative view of its leadership talent pool, highlighting collective strengths and identifying critical gaps. This data-driven approach allowed HR to make a powerful business case for strategic development investments.
Furthermore, the program successfully identified "missed" talent—experienced, high-performing individuals who had been overlooked by earlier identification processes.
The Integrated High-Potential Program
The competency framework was also the cornerstone of the company's high-potential program, which managed the development of 300 individuals identified as having the potential for the top 120 posts.
A Structured Approach to Talent Progression
A committee of top leaders categorized high-potentials into one of four "cohorts" based on their readiness for senior roles (e.g., Cohort 1 was within five years, Cohort 4 was 16-20 years away). This system provided a long-term view of the talent pipeline.
A Roadmap for Development
Clear development criteria were established for each cohort, creating a roadmap for a senior management career. For example, individuals in one cohort might focus on gaining international experience, while those in another might attend a senior leadership program. Progress was tracked via a checklist, sharpening development discussions and ensuring a steady supply of ready leaders. '''