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Tracy CoxDirector, Performance Consulting
Raytheon Professional Services LLCApril 22, 2015
@RaytheonRPS
S T R AT E G I E S F O R H I G H C O N S E Q U E N C E T R A I N I N G
Copyright © 2015 Raytheon Professional Services, LLC, and Training Industry, Inc. All rights reserved.
TOMORROW’S R ISK TODAY:
Today’s Speaker
Tracy CoxDirector, Performance Consulting
Raytheon Professional Services LLC
Agenda
• Raytheon Professional Services introduction• Overview and definition of organizations operating in high consequence environments • Types of organizational risk• Sources of organizational risk• Setting training strategy for organizations operating in high consequence environments
Raytheon Professional Services• Raytheon
• Over 90 years of innovation• 62,000 employees worldwide• Defense, Homeland Security, Aerospace
• Raytheon Professional Services• High consequence training expertise worldwide• Trains more than 2 million people a year• 1,100 learning professionals• Over 100 countries and 28 languages• Learning solutions designed to solve critical business
challenges
6
This Research
• Training Industry conducted a series of structured phone interviews with a variety of learning and development professionals at Raytheon working with organizations that operate in high consequence environments across a number of industries, including:• Aerospace• Automotive manufacturing• DOD/military• Government• Financial services• Pharmaceuticals• Utilities (e.g., oil & gas)• Air traffic control• Heavy manufacturing
• The observations and recommendations in this webinar are the cumulative outcome of these interviews
Poll Question
In your opinion, where is the greatest risk to your organization?
Injury to human resources
Injury to customers/clients
Loss of intellectual property/information
Loss of financial assets
Loss of productivity (e.g., damaged equipment)
Defining ‘High Consequence’ for Organizations
Organizations operating in high consequence environments can be described as having the following characteristics: • (1) Significant business concern with managing, mitigating, or eliminating risk borne of unwanted variability
• (2) Processes and procedures focused on consistency and predictability
• (3) Focus on safety (incl. but not limited to potential for physical injury and death), and regulatory/compliance standards as required by operating environment
• (4) High value on industry/domain expertise due to high cost of failure
Organizations operating in high consequence environments can also be referred to across various industries as safety critical organizations, high risk organizations, or high reliability organizations.
Types of Organizational Risk
• Preventable risks• Internal risks, usually controllable, can be eliminated/avoided
• Strategic risks• Voluntary acceptance of risk to achieve specific business outcomes
• Probabilistic, not inherently undesirable
• External risks• Arise from events outside the company, beyond organizational influence or control• E.g., natural and political disasters, major
economic shifts
The “Traditional” High Consequence Workplace
• Risk to human resources• Atypical incident risk of physical injury/illness/mortality
• Safety behavior failures by employee• Process/system failures causing adverse critical incidents• External catastrophic event
• Typical risk of physical injury/illness/mortality• Safety critical interactions• Maintenance failures• Resource constraints• Emotional/psychological health
The “Modern” High Consequence Workplace
• Risk to physical resources• Risk to physical organizational assets• Risk to financial organizational assets• Risk to intellectual property
• Risk to customers/clients• Client failing to use products/services correctly
• Failure of client education on safety protocols
The “Modern” High Consequence Workplace
• Cyber‐security• Increasing area of risk for all organizations
• Only 20% of companies are in compliance with credit card security standards
• 47% of American adults had PII comprised in 2014• 27% CLOs reported their employers have suffered a data breach
• Exemplars of recent breaches:
Summarizing Risk
• Q: What is the ultimate source of risk common to nearly all organizations operating in high consequence environments?
• A: PERSONNEL• 57% of the information breaches in Europe in the past 10 years
involved organizational errors, insider abuse, or other internal mismanagement (Center for Media, Data, & Society, 2014)
• “Cultivation of a consistent ‘risk culture’ throughout firms is the most important element in risk management.” (Institute of International Finance, 2008)
• Q: What is the most controllable source of risk to Organizations operating in high consequence environments?
• A: PERSONNEL• Why? They can be trained!
Tomorrow’s Risk Today
• Training strategy is key to mitigating organizational risk• Needs to be aligned with corporate strategy• Compliance with regulatory/certification entities
• Training is not always seen as strategic• Organizations must understand impact to top‐ and bottom‐line impacts & implications
• Not a discretionary expense
• Training needs to occur in the context of a business matrix• Not enough to have L&D solely responsible for strategy
Strategy Development for High Consequence Training
1. Identify business goals for risk management
2. Identify existing training gaps related to known risks
3. Identify relevant training goals4. Consider the measurement
approach for risk‐related outcomes
5. Consider the cost, available resources, and likely training modality
Strategy Development for High Consequence Training
• Identify business goals• Identify and assess current areas of risk
• What is the current business model for addressing risk?• i.e., where is risk strategic versus preventable/external?
• What areas of risk are unique to the work environment?• Do areas of risk apply organization‐wide, or within a number of
business units, or within a specific team or occupational category?
• Intersection of business goals and areas of risk• What risk‐relevant functions and operations are core to the business?
• Is the ‘current‐state’ regarding risk appropriate? Is the ‘future‐state’ regarding risk appropriate?
Strategy Development for High Consequence Training
• Identify existing training gaps related to identified risks• What gaps are unique to the work environment?• Must ensure strategy adheres to all industry‐relevant regulatory/compliance requirements• Global implications (if applicable)
• Does high consequence training need to occur in different countries that may have different training gaps, working conditions, and/or requirements?
Strategy Development for High Consequence Training
• Identify relevant training goals• Training goals must be tied to business goals
• What is the desired outcome of high consequence training?• Need to work with specific, measurable, time‐bound processes and outcomes• May have to address embedded cultural obstacles
• e.g., the “that's not how I was taught“ argument
Strategy Development for High Consequence Training
• Consider measurement approach for relevant outcomes• What are the nature of risks?
• Single point of failure versus systemic failure• Labor/resource cost of failure
• What is the best way to measure success?• May need to go beyond existing organizational metrics• “Best way” does not mean “easiest way”
Strategy Development for High Consequence Training
• Consider cost, available resources, and likely training modality• Separate “must‐haves” from “nice‐to‐haves”
• Estimate opportunity cost of committing training resources• Estimate process loss of committing employees’ time to training
• Identify points of decentralized decision‐making to pre‐empt resource obstacles• Leadership sponsorship
• Fidelity of training modality• Are there unique considerations with the work environment that may inform the training modality?
High Consequence Organizational Culture
• Successful organizations or business units operating in high consequence environments foster a culture comprised of several key elements:oA clearly documented strategy for addressing risk that is communicated organization‐wide
oHigh standards for attention to detail and information flows
oThreat escalation frameworksoModeling of standards/behaviors by leadershipoPerspective of high consequence training as a campaign, not merely an event
Q&A
Tracy CoxDirector, Performance ConsultingRaytheon Professional Services LLCEmail: [email protected]
Raytheon Professional Services LLC • Visit our website: www.rps.com
• Call us: (+1) 972‐205‐5300
• Connect with us on one of our social networks:
• LinkedIn: Raytheon Professional Services LLC Group
• Twitter: @RaytheonRPS