Safety culture: A requirement for new business models · [email protected] 30 2016-03-01 ....
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Transcript of Safety culture: A requirement for new business models · [email protected] 30 2016-03-01 ....
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Safety culture: A requirement for new business models
Lessons learned from other high risk industries
Lena Kecklund, MTO Safety AB, Stockholm, Sweden
www.mto.se
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MTO Safety
Expertise and consultancy services within safety management, safety culture, human factors and the interaction between humans, technology and organization
Application of a systemic safety framework
HuMans
Organization
Technology
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What we do
MTO Safety manages risks related to the interaction between HuMans, Technology and Organization (HTO)
Organization
Technology
HuMan
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Outline • Changes and new business models in high risk
industries
• Challenges for safety, quality and performance - Observed effects on safety performance
and safety culture
- Learning from other industries
• Challenges for the nuclear community
• Safety culture to meet the challenges – Management commitment
– Leadership skills
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• Deregulated markets
• Global markets and competition
• Changes in legal and regulatory frameworks
• Transfer from monopolistic to private market models
• Technical changes
• New Life cycle stages, e. g. Decommissioning and Waste Management
Changes in business models
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Challenges for the nuclear industry
• Market demands for lower prices
• Need to fund long term investments for new production facilities to secure energy supply
• Safe and reliable deliveries
• Climate change and transfer to renewable production
• Public acceptance challenged by major accidents
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Learning from aviation, railways, process industry
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Impact of new business models Air traffic control services in Sweden
Change from a regulated market to a completely degregulated market and back to a partly regulated
market in five years
• Rapid rate of change – inadequate change management
• New goals and targets, e.g. moving from client to supplier in a few years requires major changes in company mission and culture
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Government
Regulators, Associations
Company
Management
Staff
Work
Laws
Company Policy
Plans
Action
Regulations
Adapted from Rasmussen 1997
System levels
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Technology
Organization
HuMan
HuMans – Technology - Organization A system safety view
HTO > H + T + O
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Need for new oversight areas and indicators
• Safety culture
• Management committment to safety
• Safety as a core business value and how it is included in the business model
• Management system, e.g. forms of employment
• Governance structure, e.g. subcontracting, outsourcing
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Safety Development Process
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Survey
Feedback
Implemen-tation
Follow up
Feedback
Change
Communication Participation
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Safety culture
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External - Market demands, stakeholder requirements, legislation, regulations, competition, national culture etc
Social processes and group norms, leadership
Management commitment and priorities, leadership
Safety management
Understanding
Behaviour
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Characteritics of a good safety culture
• Safety as a fundamental value and priority
• Management commitment and leadership skills
• Trust and just culture
• Learning
• Accountability
• Commmunication
• Work situation, working conditions, work processes, tools and equipment
• Safety culture and management of change
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Observed effects in aviation and railway
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Safety as a fundamental value and priority
Safety has not been properly managed as a basic core value in times of change
• The driving force of the changes have been costs reductions rather than learning and development of work processes
• Safety can remain a basic value on the operational level while changing at the senior management level
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Management commitment and leadership skills
Management communication and behavior must be targeted to supporting safety as a basic value in times
of change
• Staff members most often perceive that high level management give higher priority to economy and to cost reductions than to safety.
• Senior level management in times of change does not show enough commitment to safety to support the basic safety values. This may affect the decision making process on all organizational levels
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Social process of risk-taking
The group's perception of
leadership, commitment
and safety priority
The group's commitment
to safety
Individual responsibility
Safety related behavior
Group/organization Individual
“Breaking the group norms "cost" more than breaking the formal rules”
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Trust and just culture Management styles have been developed that
contradict safety culture as well as provisions and regulations on Crew Resource Management (CRM) and
Safety Management Systems (SMS)
• Lack of trust and just culture prevents aviation pilots from reporting safety occurrences.
• Some airlines´ management styles include blame culture, for example by non-renewal of contracts when staff legitimately applying safety procedures
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Learning
• Arenas for learning, e.g. meetings are reduced
• More focus on reactive learning
• Impaired learning processes and complacency
• Extensive subcontracting and
procurement leads to information
not being shared
• Loss of competence in the
client organization
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Learning (cont’d)
• Organizations give up their own sense of involvement and accountability related to negative events and criticism
• Disinclination to acknowledge and analyze events will severely impair organizations to learn
• Subcontractors are reluctant to report occurrences
• Less incentives for organizational learning and impaired processes
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Accountability and the effects of outsourcing and subcontracting
• Many levels of subcontractors
• Managers state that more than ten levels of subcontracts is not achievable
• Numerous interfaces to manage will increase costs to subcontracting
• Increased number of hand over points, raises the number of errors related to communication and hand over
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Accountability and the effects of outsourcing and subcontracting (cont’d)
• Reliance on formal contract terms - but in times of change, contracts and terms can get quickly outdated
• Social dumping by external contractors and loss of competence if procurement requirements are not taking quality and safety issues into account
High risk industries are complex systems. New business model increases complexity by adding more
subcontractors.
Rapid rate of change will reduce control in such systems.
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Working conditions, work processes and equipment
The new business models means higher workload and clear cut backs related to the employees working
conditions. The slack in the demand-resource balance is reduced thus making the organization less resilient.
• New employment models, increased mobility of labour, weakening of employment status, safety critical services provided by non-certified service providers and long term leasing.
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Safety culture and the management of change
• Major changes related to deregulation and cost reductions are often done too fast without adequate planning and preparation
• Lack of control on safety and quality has a negative effect on safety and business performance
• Any change process is stressful for the organization therefore it is imperative to manage staff concerns in order to uphold safety and performance
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Safety culture and the management of change (cont’d)
Change management in safety critical industries has to be directed towards developing and refining work
processes focusing on safety, quality and efficiency.
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How to make changes in high risk industries
• Change management process
• Safety is included in the business model
• Management commitment is critical for safety and safety culture
• The staff's and leaderships trust and mutual confidence is important
• The concept of safety must a part of the management’s core values
• Leadership is the driving force in safety culture and its values must be communicated in words and actions
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Conclusion • Safety must be included in the business case and explicit
in the management system, e g goals & measurements
• Only senior level managers and officials can create conditions to prevent major accidents
– Must be fully aware of this accountability
– Must have knowledge on safety culture and safety management
• New business models will increase complexity
by adding more subcontractors
• Rapid rate of change will reduce control
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Where is nuclear safety heading? • External demands - major challenges related to
earnings, investments, renewable energy and public acceptance
• Keep safety focus at senior management level
• Leadership for safety
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