Tomorrow's Risk Today: Strategies for High Consequence Training

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Nearly all organizations are creating training programs designed to minimize everyday business risks that can impact the performance of employees, customers, and assets.

This TrainingIndustry.com webinar, sponsored by Raytheon Professional Services, LLC, featured Tracy Cox, director of performance consulting for Raytheon Professional Services, discussing the trends and challenges for setting training strategy when consequences are high. On demand webinar here: http://www.trainingindustry.com/webinars/tomorrows-risk-today-training-strategy-for-high-consequence-organizations.aspx

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Tomorrow's Risk Today: Strategies for High Consequence Training

  1. 1. Tracy Cox Director, Performance Consulting Raytheon Professional Services LLC April 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 RISK TODAY:
  2. 2. Today’s Speaker Tracy Cox Director, Performance Consulting Raytheon Professional Services LLC
  3. 3. 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 
  4. 4. 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
  5. 5. 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
  6. 6. 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)
  7. 7. 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.
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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:
  12. 12. 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!
  13. 13. 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
  14. 14. 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 goals 4. Consider the measurement  approach for risk‐related  outcomes 5. Consider the cost, available  resources, and likely training  modality
  15. 15. 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?
  16. 16. 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?
  17. 17. 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
  18. 18. 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”
  19. 19. 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?
  20. 20. 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 frameworks oModeling of standards/behaviors by leadership oPerspective of high consequence training as a  campaign, not merely an event
  21. 21. Q&A Tracy Cox Director, Performance Consulting Raytheon Professional Services LLC Email: tcox@raytheon.com 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

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