High Reliability Organizations: Managing Risk in Complex Operating Environments

Abstract

Over the past two decades the environment companies operate in has become increasingly complex, and the pace of change continues to accelerate. With increased complexity, comes increased risk for high consequence/low probability events. At the same time, society’s expectations for performance have never been higher. Injuries to personnel, impacts to the environment, and disruptions in production will no longer be tolerated. In other words, achieving excellence in safety and operations is both more important and more difficult than ever before. Yet there are a select few High-Reliability Organizations (HROs), such as the U.S. Nuclear Navy, that have defied this trend. Their culture and organizational practices allow them to consistently demonstrate extraordinary levels of excellence while operating in complex, high-risk environments. This paper will examine how these HROs leverage management systems and culture to thwart the impacts of complexity and achieve safety and operational excellence.