Exxon's Decision 1
Exxon's Decision 1
Exxon's Decision 1
Press Inc.
ISSN: 0363.8111 All rights of reproduction in any form
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David E.
Williams and
Bolanle A.
Olaniran
Exxons DecisionMaking Flaws: The
Hypervigilant Response
to the Valdez Grounding
ABSTRACT: The March 24, 1989 Exxon Valdez grounding
caused one of the worst oil spills ever witnessed in the
United
States. While clean up crews were battling the spill, Exxons
crisis
management personnel were fighting an uphill battle against
the
unyielding press coverage and negative reactions from
people
across the country. At the heart of Exxons crisis
management
shortcomings were the flaws in decision making which were
made
at the beginning of the crisis.
This article explores the difficulties of crisis decision making
and
reveals how Exxon employed the maladaptive crisis
response pattern
of hypervigilant decision making during its initial response to
the
spill. The article also offers procedural changes which would
benefit
crisis management personnel who might face a similar
catastrophe
in the future.
David Williams and Bolanle Olaniran are both assistant
professors
the best means for escaping danger (p. 64). The adaptive
strategy is the vigilant
approach to decision making which is likely to lead to
effective emergency action
with a much better chance of a successful outcome than
hypervigilance or any of the
other patterns (p. 65).
Unconflicted inertia develops when a decision maker or
group determines that
signs of danger do not warrant an action. The decision maker
may believe the threat
of danger is minimal or that the damage would be
intolerable. Having deemphasized
the threat of danger, the decision maker will continue to do
whatever he
or she has been doing without any change in response to the
crisis threat. When the
actual crisis occurs, or the danger intensifies, the
organization is caught off-guard and
unprepared.
Unconflicted change occurs when the decision maker selects
one solution to a
crisis and then refuses to consider any other alternatives.
With this strategy the
8 Vol. 20, No. 1
E&ons Decision-Making Fluws: ne F&per-vigilant
Response to the Valdez Grounding
decision maker will frequently follow the first possible
solution or the solution which
is most easily adopted. When following this strategy there
will usually not be any
thought given to contingency or backup plans in case the
initial plan fails. Uncontlicted
change provides two means for faulty decision making. First
the most easily adopted
solution to a crisis is rarely the best choice. Second, when
the initial solution fails the
decision maker falters by not selecting a better alternative.
Sound area for oil spills. Exxon was not responsible for the
disbandment ofthis team.
However, the lack of an emergency team on site helped to
make an unexpected
accident appear to be an accident for which Exxon was also
unprepared.
The hypervigilant situation took greater shape with the
pressure that was placed
on Exxon to react quickly to the spill. Exxon had very little
time to fully consider the
alternative strategies for dealing with the spill because of
the immediate attention of
the press. It was just one day after the grounding that
environmentalists and marine
biologists were placing animals on an in danger list. Four
days after the incident
biologists predicted that the damage to the Valdez shore and
wildlife may last for
years. On that same day the New Tarb Times reported that
the accident was
responsible for increased oil prices. As Small (1991) noted:
Television, of course, ran endless pictures of the damage to
the shoreline and the
wildlife. It ran interviews with local natives, with
environmental critics, with
government officials in Washington. It seemed that very little
was said by Exxon
and very little reported of the companys efforts, (p. 10).
Dyer, Miller, and Boone (1991) revealed that Associated
Press wire stories about
Exxon increased from approximately 20 in February 1989 to
130 in March and 325
in April. Likewise the print media reacted quickly in
questioning and condemning
Exxon for the spill. Not surprisingly, Exxon was not receiving
sympathetic or even
neutral press coverage concerning the spill.
Exxon officials had to deal with more than the pressure
provided from media. The