3rd european sms symposium - 2012 london - managing risks with carrots & sticks

7/23/2019 3rd European SMS Symposium - 2012 London - Managing Risks With Carrots & Sticks

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YOU CAN LISTEN TO THE NARRATED VERSION OF THIS

PRESENTATION @ https://talk.city.ac.uk/p47043247/



A quote from “The Balanced Scorecard – Measures that Drive Performance” by Robert S. Kaplan andDavid P. Norton, published in HARVARD BUSINESS REVIEW Jan–Feb 1992



INCENTIVES & PENALTIES MAY DRIVE CULTURAL CHANGE

Source: Flicker

‐ Connected

Company



INCENTIVES & PENALTIES

ENCOURAGE RISK TAKING & DISCOURAGE REPORTING



• FOQA / FDM

• Aircraft / Engine Health

Monitoring (Real

‐time

accessing data collected

from systems onboard)

• Thanks to TECHNOLOGY

but it has its limitations



Engineering a Safety Culture - Prof. James ReasonSource: Managing the Risks of Organisational Accidents, 1997



Risk management is a balancing act. It involves balancing risks and rewards.

Risk Thermostat – Prof. John AdamsSource: Risk, 1995

“We are all ambivalent risk managers.

Managing risk involves balancing

potential rewards against potential

losses. No one wants an accident but

everyone wants to be free to take risks ‐

without them life would be unutterably boring. Safety interventions that do not

acknowledge the perceived rewards of

risk are likely to be met with behaviour

that seeks to frustrate them. We also

resent and resist risks imposed upon usby others and, generally, support

regulation to contain them.”



“If you look at the science there is a mismatch between what science knows and what

business does. And what's alarming here is that our business operating system, think of the set of assumptions and protocols beneath our business. How we motivate

people , how we apply our human resources. It's built entirely around these extrinsic

motivators, around carrots and sticks. That's actually fine for many kinds of 20th

century tasks, but for 21st century tasks that meganistic reward and punishment

approach doesn't work , often doesn't work and does harm.“

http://www.ted.com/talks/dan_pink_on_motivation.html

http://youtu.be/u6XAPnuFjJc



processes for setting

performance measures

A Service Level Agreement (SLA) that

includes clear Key Performance Indicators



Monthly Average

Availability Achieved

% of Monthly

Revenue Payable To

100.00 11.00% Maintenance Organisation







98.90 1.00% Operator (Airline)






Technical Availability =F fleet size on the day

Do length of operating day (defined as 18 hours)

TOOS total time out of service during the day resulting

from technical delays (see Clause S10.1.2.1) and

out of service events (see Clause S10.1.2.2).



COMMUNICATING ACTUAL PERFORMANCE THROUGH

INTRANET & TV SCREENS ACROSS THE ORGANISATION



CONTR CTU L OBLIG TIONS

What happens if the Operator monitors the contracted organisation’s

performance only by ‘Availability’ and ‘Technical Dispatch Reliability’?

Number of Deferred Defects Amount £ Payable to

0.5 or less 10,000 Maintenance Organisation

0.6 to 1.5 5,000 Maintenance Organisation

1.6 to

2.5 2,000 Maintenance

Organisation

2.6 to 3.5 0

3.6 to 4.5 2,000 Operator (Airline)

4.6 to

5.5 5,000 Operator

(Airline)

5.6 and more 10,000 Operator (Airline)



Number of Deferred Defects Amount £ Payable to

0.5 or less 10,000 Maintenance Organisation

0.6 to 1.5 5,000 Maintenance Organisation

1.6 to

2.5 2,000 Maintenance

Organisation

2.6 to 3.5 0

3.6 to 4.5 2,000 Operator (Airline)

4.6 to

5.5 5,000 Operator

(Airline)

5.6 and more 10,000 Operator (Airline)



NEXT TIME YOU ARE GOING TO USE



• Collecting data can be problematic for some

organisations, because the relationship between Just

& Reporting Culture is del icate. So be careful how tohandle punitive action.

• CAUTION: Risk Assessment is a subjective process.

Risk takers can always assess high risk as

acceptable.

• “THREE KINDS OF LIES! LIES, DAMN LIES &

STATISTICS” We need to chal lenge stat is tics, should not

always be slave to them and consider the big picture.

• Let ’s not get obsessed about per formance. Iron ical ly i f

we push people too hard to achieve bet ter per formance,

they wil l take more r isks. (The f inancial mess we are in?)

• SMS SHOULD NOT STEAL THE LIMELIGHT FROM

HUMAN FACTORS! WE STILL NEED TO ADDRESS

HUMAN ERROR, RISK TAKING BEHAVIOUR AND

NEGLIGENCE TO ACHIEVE BETTER PERFORMANCE.

•

MANAGING HUMAN RISK NOT ONLY IN THE BOARDROOM BUT ALSO AT THE SHARP END IS THE KEY.



MANAGING HUMAN RISK IS THE KEY TO ENSURE FLIGHT SAFETY.

I’M A

GENUINE

ERROR MAKER

I’M A

RISK TAKER

I’M

NEGLIGENT



[email protected]

Please

do

not

hesitate

to

contact

me

if

you

require

further

information or you think we can conduct joint research

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