Operational Discipline - Deepwater Horizon Case Study
1. Doing the right thing, the right way, every time!
Case Study: Creating a Culture of Operational Discipline
2. What we will cover in this case study
• What is Operational Discipline?
• What are the core values, or “pillars”, that define a culture of
Operational Discipline?
• Why is Operational Discipline necessary?
• Case Study: Deepwater Horizon and Operational Discipline
• How do I create a culture of Operational Discipline?
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3. Operational Discipline starts with a clear and
concise definition
Operational Discipline is composed of 3 simple requirements:
Operational Discipline
1
Do the right thing
2
the right way
3
every time
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4. The definition of Operational Discipline implies the
necessary core values
Operational
Discipline
Doing the right thing,
the right way,
The necessary Core Values or
“Pillars”
Level of Knowledge. Understand not just what you do, but why
you do it. Continually seek greater knowledge about the systems,
processes, and hazards in and around your workplace.
Formality. Treat your workplace and your role with respect,
recognizing the seriousness of what you do and your role as a part
of something bigger. Follow authorized procedures and expect
the same from others. If you think of a better way, follow
authorized processes to review and improve the procedures.
Questioning Attitude. Constantly ask yourself what could go
wrong. Check for out-of-the-ordinary and learn to anticipate
potential problems. Don’t assume things are okay—verify.
every time.
Forceful Watch Team Backup. Backup your co-workers by looking
out for what they may have missed, and expect the same in
return. Have the courage to care, intervening even when it makes
you uncomfortable. If you see an issue, own it.
Integrity. Be reliable. Do what you say you are going to do,
completing every task the right way, every time, even if no one is
watching.
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5. The Pillars of Operational Discipline are
Self-Reinforcing
Integrity
Integrity means
you can be relied
upon to support
your team
Forceful
Watch Team
Backup
Formality ensures
backup is
professional &
productive
Backup
drives
procedural
compliance
Level of Knowledge
allows ID of out-ofthe-ordinary
conditions
Level of
Knowledge
Level of
Knowledge
allows you to
back up others
Questioning
Attitude helps you
spot what others
may have missed
Formality
Questioning
Attitude enhances
Level of Knowledge
Questioning
Attitude
Questioning Attitude
supports process
improvement, not
work arounds
The Pillars of OD are self-reinforcing and interdependent – OD cannot be
achieved by adhering only to one or some of the Fundamentals.
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6. Robust processes and procedures alone will not
lead to Operational Excellence
Sound
Strategy
Operational
Excellence
Leading
Performance
Effective
Processes
and
Procedures
Culture of
Operational
Discipline
Operational
Excellence
Processes and procedures, without a culture that embraces the Pillars of
Operational Discipline, will not result in Operational Excellence. To
demonstrate this, consider the following case study.
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7. Case Study: Leadership activities and Operational
Discipline aboard Deepwater Horizon
Deepwater Horizon Facts
• On April 20, 2010, an explosion on BP’s drilling rig
“Deepwater Horizon” in the Gulf of Mexico was
the largest marine oil spill in the history of the
petroleum industry1
• The explosion killed 11 platform workers, injured
several others, and released approximately 4.9
million barrels of crude oil
1) BP: ‘An accident waiting to happen’, Fortune Features, Jan 24, 2011
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8. Case Study: Leadership activities and Operational
Discipline aboard Deepwater Horizon
Most people don’t know that a group of four BP and Transocean VIPs were onboard
the vessel and conducting a safety focused “management visibility tour” when the
explosion occurred. Let’s look at the events of the day.
3 PM
• VIP team lands on rig and attends
Safety Orientation
• Tour continues to Driller’s Control
Room where one VIP notices
“confusion” . He asks the Rig
Manager to stay behind and help out
• VIPs conduct “light-hearted” meeting
w/ personnel in galley
• Discuss safety goals, emphasizing
“hand safety” and “dropped objects”
campaigns
4 PM
• The VIP’s proceed with a safety tour.
One VIP inspects safety harnesses.
Another looks for a slip/trip hazard.
5 PM
6 PM
7 PM
• VIP follows up with Rig Manager and
asks "Everything all right up on the rig
floor there? Get everything sorted
out?“ The Rig Manager responds with
thumbs up
8 PM
9 PM
1) Management Walk-Arounds: Lessons from the Gulf of Mexico Oilwell Blowout, Andrew Hopkins, Feb 2011
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9. Robust processes and procedures alone will not
lead to Operational Excellence
• From 2008-2010, BP implemented an Operations Management System (OMS)
to ensure that the processes and procedures necessary to ensure safe and
environmentally compliant performance were in place.
• The OMS required that management ensure operating procedures are in place,
operators are competent to perform work, and leaders are active and visible.
• We would all agree that the activities or processes that the VIPs participated in
were the right ones…..yet the result was not what was intended.
• Why? Because the Pillars of Operational Discipline were not in place.
Effective Processes
and Procedures
Culture of Operational
Discipline
Operational Excellence
• Safety meetings
• Leadership
visibility tours
• Share Lessons
Learned
No culture of
Operational Discipline
Activity driven
behavior without
the intended results
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10. Deepwater Horizon: In their own words….
• We will now view several video clips of the VIPs testifying to
their activities and behaviors on that fateful day.
• While watching, keep in mind the following:
– They were following the processes and procedures that were
expected of them.
– We would all agree that the activities they participated in (safety
orientation, safety tour, award ceremony, etc.) were all activities in
which we would expect good leaders to participate.
– All of these men thought they were doing the right and good thing
that day. None of them woke up that morning anticipating this
disaster would happen.
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11. In their own words……
While viewing the clip on the next slide, consider
the following questions.
• Why did these leaders go on the Leadership Visit?
• What was their goal?
• How did they prepare for the visit?
• Did they demonstrate the Fundamentals of Operational
Discipline?
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12. Deepwater Horizon Revisited
Questions to consider while viewing the clip on
the next slide
• What was the purpose of his Safety Tour? To learn? To
find new problems?
• Why did he want to discuss dropped objects?
• Why did he inspect harnesses?
• Were the Fundamentals of Operational Discipline
exercised?
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13. Deepwater Horizon Revisited
Questions to consider while viewing the clip on
the next slide
• Why was he in the driller’s shack? Was he there to
surface problems?
• What did he do when he noticed the confusion?
• Did he ask the right questions?
• Were the Fundamentals of Operational Discipline
exercised?
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14. Deepwater Horizon Revisited
Questions to consider while viewing the clip on
the next slide
• How do these leaders deal with employees that don’t
follow procedures?
• How do they make sure that their employees have
adequate knowledge? How do they interact with them?
• Were the Pillars of Operational Discipline exercised?
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15. Questions to consider
1.
Level of Knowledge—Did these leaders demonstrate a desire to learn
about and understand the operations they were responsible for?
2.
Formality—Did these leaders demonstrate a commitment to following
procedures and ensuring that others do as well?
3.
Questioning Attitude—Did they follow up on things that seemed out of
the ordinary and seek to surface problems?
4.
Forceful Watch Team Backup—Did they hold others accountable and
expect them to do the same for them?
5.
Integrity—When things became uncomfortable, did they do the right
thing anyway?
What if they had?
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16. Complex operating environments require a
different approach to Leadership
• In complex operations, situational
inventories are impossible.
• We cannot create comprehensive rules /
tasks to cover every situation.
• The Pillars of Operational Discipline
create a framework for thinking about
the right behaviors.
• This framework is useful for helping
leaders understand how they
demonstrate the Pillars of Operational
Discipline in their daily activities.
Let’s review examples of how the Pillars of Operational Discipline
apply to daily activities using a simple “Right/Wrong” framework
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17. The Pillars of OD enable employees to determine
the right behaviors for any activity
Leadership Visits
OD Pillar
Fundamentally Right
Fundamentally Wrong
Level of Knowledge
Not preparing or being
Leaders view visits as an opportunity
knowledgeable about the site and
to learn about the business
its risks prior to visit
Formality
Observe high risk procedures and
verify steps are followed
Not asking to see procedures to
verify compliance
Questioning
Attitude
Review past audits prior to visiting
and verify completion of corrective
actions
Primary goal is to be “visible”, not to
identify problems
Forceful Watch
Team Backup
Ask other leaders to tour your area
and point out issues
Don’t want to make a big deal or
interfere
Integrity
When you find problems, share
them with others even if they might
be embarrassing
Visit conducted just because “there
is a schedule”
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18. The Pillars of OD enable employees to determine
the right behaviors for any activity
Safety Tours
OD Pillar
Fundamentally Right
Fundamentally Wrong
Level of Knowledge
View the tour as an opportunity to
learn about the operation
Not using the tour to learn about
the operation and to surface high
consequence, low probability risks
Formality
Inspect procedures people are
following and verify steps
Not inspecting procedures during
the tour
Questioning
Attitude
Question employees to verify their
level of knowledge
Only looking for pre-determined
issues, not looking for new issues
Forceful Watch
Team Backup
Ask other leaders to conduct safety
tours in your area
Focus on easily observable, easily
correctable risks so as not to make
people uncomfortable
Integrity
Investigate the out of the ordinary,
no matter where it may lead
Looking for specific risks just
because they are the “focus” area
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19. The Pillars of OD enable employees to determine
the right behaviors for any activity
Audits
OD Pillar
Fundamentally Right
Fundamentally Wrong
Level of Knowledge
Periodically accompany auditors to
understand process
Used as a weapon for compliance—
noncompliance is responded to with
punishment rather than desire to
understand root cause
Formality
Enforce adherence to the audit
schedule
Auditors focus on what they know
and are not thorough
Questioning
Attitude
Expect and want to find deficiencies
Focus of audit is on the score/grade,
not how to resolve deficiencies
Forceful Watch
Team Backup
All repeats audit findings are
reviewed by senior leaders to
determine root cause for not
correcting them
Audit findings and resolutions are
not shared
Integrity
All deficiencies are reported
accurately
Sites acknowledge findings, but do
nothing to resolve them
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20. 4 Steps for creating a culture of Operational
Discipline
Align Leadership on
the Pillars
• Need for Pillars
• Definition of
Pillars
• Approach for
implementation
Create the
Case for
Change
Internalize the
Pillars
• Use case study like • One-on-one
conversations
Deepwater
between leaders
Horizon to make
and employees
case for change
using right/wrong
• Create a sense of
framework to
discomfort
discuss behaviors
• Leader
interactions on
the shop floor
Embed in
Management
System
Processes
• New hire selection
• Orientation /
training
• Incident
investigation
• Performance
Management
Creating a culture of Operational Discipline must start at the very
top of the organization!
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21. Contact us for more information about our approach to Operational Discipline and to
schedule a workshop for your Leadership Team
We will customize a workshop to provide your
team with a strong foundation for
implementing Operational Discipline:
Contact Information:
On the Web: www.wilsonperumal.com
Email: contact@wilsonperumal.com
• Alignment on the Pillars of Operational
Discipline and approaches for implementation
Twitter: @Wilson_Perumal
• Creating the “Case for Change” within your
Leadership Team
United States: (972) 716-3930
• Utilizing the “right/wrong” framework for
helping employees internalize the fundamentals
LinkedIn: http://linkd.in/10BnH1i
Europe: +44(0)203 206 1496
• Step-by-step, practical guidance on creating a
culture of Operational Discipline
Learn more by following our Operational Excellence Blog at www.wilsonperumal.com/blog
22. Our team has deep, hands-on operational
experience
Andrei Perumal, Managing Partner
• Thought leader on complex systems and integrating strategy, operations, and organization
• Formerly with George Group Consulting (Engagement Director of the Year) and Bain & Company
(winner of Best of Bain Award); co-author of Waging War on Complexity Costs
• Developed the Joint Munitions Command Integrated Logistics Strategy for the US Army
• Aerospace, nuclear, and chemical engineer; prior aerospace industry experience
• BS Aeronautical & Astronautical Engineering, Massachusetts Institute of Technology
Brian Flis, Manager
• Expertise in manufacturing, operational excellence, and LEAN implementation
• Developed complexity reduction plan for a U.S. manufacturer; identified cost savings of $140 million
• Supplier Quality Manager, Eaton Corp. - Handpicked by Senior VP of Supply Chain, Operational
Excellence and Quality to launch urgent business performance initiatives across the business
• Acquisitions Officer, U.S. Air Force - Led process improvement team that successfully increased ballistic
missile booster production from 1 booster a month to 8 boosters a month
• MBA, Ohio State University; MS Mech. Engineering; BS Mech. Engineering, U.S. Air Force Academy
Chris Seifert, Case Team Leader
• Expertise in manufacturing, operational excellence, and management system design and
implementation
• Former Operations Leader, Owens Corning (increased plant productivity by 25% in just 9 months)
• Former Plant Manager and Manager of Business Strategy & Analysis, Georgia Pacific (Koch Industries)
• Top-ranked submarine officer, US Navy (ranked #1 of 9 submarine junior officers)
• MBA, Summa Cum Laude, University of Georgia; BS Business Administration, St. Louis University
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