The environment companies operate in has become increasingly complex. With increased complexity, comes increased risk for high consequence/low probability events. At the same time, society’s expectations for performance have never been higher. In other words, achieving excellence in safety is both more important and more difficult than ever. Yet a select few High-Reliability Organizations (HROs), such as the U.S. Nuclear Navy, have defied this trend. This presentation will examine how these HROs leverage management systems and culture to thwart the impacts of complexity and achieve safety and operational excellence, while simultaneously creating the opportunity to significantly reduce operating costs.
2. Complexity is stretching the capabilities
of most organizations
TECHNOLOGY
PRODUCTS & SERVICES
PROCESSES
ORGANIZATIONS
REGULATIONS
MARKETS
X
XX
X
XCOMMUNICATIONS
4. 4
Characteristics of complex systems
1. Non-linear reactions
3. Unknown interactions
2. Feedback loops
4. Emerging properties
5. Many companies are passing a
complexity threshold
5
VALUE
(diminishing returns)
COST & RISK
(exponen4al growth)
$
Complexity
Few companies are s.ll
here
Many companies are
here
An increasing number of
companies are here
7. Catastrophic incidents are becoming more
frequent and more severe
1979 – Three-Mile Island core meltdown
1988 – Piper Alpha explosion
2005 – Texas City Refinery explosion
2010 – San Bruno Pipeline explosion
2010 – BP Deepwater Horizon oil spill
2011 – Fukushima Daiichi disaster
2013 – West Fer1lizer plant explosion
11. The Nuclear Navy has never had a reactor
accident over its
50+ year history
150 mobile nuclear
reactors
6,000+ years of reactor
plant opera4on
11 www.wilsonperumal.com
12. 12
Three Lessons from the Nuclear Navy
#1 Safety should not be a GOAL!
#2 Simplify your management system
#3 Culture is critical
1
2
3
16. 16 www.wilsonperumal.com
The Nuclear Navy simplifies with one
management system for all outcomes
People
Process
Equipment
Change
Key
Controls
Safety
People
Process
Equipment
Change
Key
Controls
Environ-
mental
People
Process
Equipment
Change
Key
Controls
Quality
People
Process
Equipment
Change
Key
Controls
Reliability
People
Process
Equipment
Change
Key
Controls
Cost
Common Management
System Approach
Nuclear Navy
Management System
People
Process
Equipment
Change
Increased performance
Accelerated learning
Reduced cost and overhead
Safety
Quality
Environmental
Reliability
Compliance
Cost
Key
Controls
20. 20
The culture required was a vast departure
from traditional military culture
Tradi1onal Military
Culture
Follow orders
Do what you are told
Don’t ask ques4ons
Never ques4on your
superiors
Rickover’s Cultural
Pillars
Have a higher level of
understanding
Follow procedures
Ques4on procedures when
things don’t seem right
Back each other up
Do it all with integrity
22. WP&C has worked with the Nuclear Navy to
benchmark its culture
1.00 2.00 3.00 4.00 5.00 6.00 7.00
Seek the company's success
Be results oriented
Walk the talk
Follow procedures
Con4nually seek greater knowledge
Always collaborate
Confiden4al
Pay alen4on to hierarchy and status
Do what your are told
Compete with peers
Work long hours
Cover the mistakes of others
Punish failure/mistakes
Shortcuts are tolerated
Change
Current vs. Target = 32%
40 Characteris1cs
Target Culture
Current Culture
Average ranking for Current vs. Target Cultures
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