Transformation of the IT Function at British Petroleum

In 1989 the IT function of the exploration and production division of British Petroleum Company set out to transform itself in response to a severe economic environment and poor internal perceptions of IT performance. This case study traces and analyzes the changes made over six years. The authors derive a model of the transformed IT organization comprising seven components which they suggest can guide IT departments in general as they seek to reform themselves in the late 1990's. This model is seen to fit well with recent thinking on general management in that the seven components of change can be reclassified into the Bartlett and Ghoshal (1994) framework of Purpose, Process and People. Some suggestions are made on how to apply the model in other organizations.