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Third Generation Leadership - why we need it NOW!

Written by: Douglas Long

Article Overview: If ever there was a "wake up call" as to the necessity to shift our leadership understanding and approach then this Gulf of Mexico disaster should be it. The time is ripe for facilitating a shift to a Third Generation Leadership world view as our dominant paradigm.

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Third Generation Leadership - why we need it NOW!

In May 2010 there was a massive crude oil leak disaster on an oil rig leased by the oil giant, BP, in the Gulf of Mexico. The Deepwater Horizon rig operated and owned by contractor Transocean exploded and sank, killing 11 men and triggering the leak. In the hours after the accident, BP and the Coast Guard said there appeared to be no leak, but the estimate was later revised to 1,000, then 5,000 barrels per day. In this last week, US government scientists raised estimates for the amount coming from its leak to 40,000 barrels per day from their earlier revised forecast of 20,000 barrels. The US Coast Guard accused the company of failing to have the right equipment and back-up plans and Rear Admiral James Watson blamed the company for lacking the necessary equipment to capture all the oil flowing from its catastrophic leak. The negative effect on the physical environment has been immense. Plumes of oil have formed beneath the surface of the ocean and the oil slick is drifting in the wind and currents to affect shorelines, flora, and wildlife as far away as the US state of Florida and other countries such as Cuba. Those relying on the sea for their livelihoods have had their sources of income removed and entire communities face the possibility of total devastation. There is also, to use a term so loved by the military, 'collateral damage' in that the value of BP stock has plunged and its shareholders have had their dividends affected because BP will be paying for the cleanup as well as, probably, to all those who have lost their livelihoods - and those costs will be in the billions of dollars.

Of course, this is not the first time off-shore oil rigs have had problems. Over the years there have been issues from time to time in the North Sea and as recently as 2009 there was a serious problem close to Australia when the West Atlas oil rig in the Timor Sea, operated by the Thai-owned PTTEP Australasia, blew on August 21 and leaked over 400,000 litres of oil, gas and condensate into the Timor Sea at a rate reported variously as being from 300 to 1,200 barrels a day.

Unfortunately oil spill disasters are not new. On March 24, 1989, the Exxon Valdez, an oil tanker en route to Long Beach California hit a reef in Alaska's Prince William Sound and spilled an estimated minimum 40.9million litres (or 250,000 barrels) of crude oil. Until recently, this was considered to be one of the most devastating human-caused environmental disasters ever to occur. The oil eventually covered 2,100km of coastline and 28,000km2 of ocean.

Given that both the history of and the potential for disaster was well known and clearly documented, why was BP's response in the Gulf of Mexico so poor? While at the time of writing (June 2010) the leak is still continuing, full investigation into the spill is yet to occur and all the facts are not known, it does seem reasonable to assume that inadequate attention had been paid to any 'worst case' scenarios. And I suggest that this is totally in accord with the Second Generation Leadership world view that dominates both big business and the political scene. Second Generation Leadership - a view that focuses primarily on economic growth and success - dominates and, apparently those in charge do not operate at the thinking stratum level necessary for dealing with the degree of ambiguity and complexity that is involved.

If ever there was a "wake up call" as to the necessity to shift our leadership understanding and approach then this Gulf of Mexico disaster should be it. The time is ripe for facilitating a shift to a Third Generation Leadership world view as our dominant paradigm.

Third Generation Leadership is fully cognisant of the need to run organisations profitably. There is no conflict between economic success and Third Generation Leadership. The difference lies in the path to this success. Third Generation Leadership sees the overall interaction between all the systems at play - both in the short term and the very long term - and then seeks to ensure that any negative implications are minimised both now and in the future by having detailed and appropriate contingency plans in the event of accidents occurring.

President Obama, the people of the United States (especially those in the affected areas), and most of the rest of the world are rightly angry at what has occurred. But the problem is not just that BP and/or Transocean failed to adequately consider all of the possible issues and scenarios and to have available the means for dealing with these. Those responsible for the legislation allowing and governing the operation of these rigs are also culpable - in drafting and enforcing any such legislation they clearly did not adequately consider worst case scenarios and how these could be averted.

There are calls now for tighter regulations and better policing in relation to off-shore exploration and drilling in the USA. This is good and necessary. There needs to be an equally strong call for a change in our dominant leadership approach. The approach of personal greed and profit before all else - an approach which can lead to excessive cost reduction and the cutting of corners to obtain fast results - is again proving to be seriously flawed.

Third Generation Leadership is not the magic wand that will fix everything and create utopia. But Third Generation Leadership will help us avoid the situationwhere yesterday's answers have become today's problems.

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Home > Leadership > Douglas Long > Third Generation Leadership why we need it NOW
Article Tags: disaster, exxon valdez, gulf of mexico, oil spills, third generation leadership, timor sea, wake up call

About the Author: Douglas Long
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Author of "Third Generation Leadership and the Locus of Control: knowledge, change and neuroscience" 2012, Gower Publications UK

Helping leaders and organisations improve revenues and returns through a new way of engaging people

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