YOUCANLISTENTOTHENARRATEDVERSIONOFTHIS

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

A quote from The Balanced Scorecard Measures that Drive Performance by Robert S. Kaplan and
David P. Norton, published in HARVARD BUSINESS REVIEW JanFeb 1992

Source:Flicker ConnectedCompany

INCENTIVES & PENALTIES MAY DRIVE CULTURAL CHANGE

INCENTIVES & PENALTIES

ENCOURAGE RISK TAKING & DISCOURAGE REPORTING

 FOQA/FDM
Aircraft/EngineHealth
Monitoring(Realtime
accessingdatacollected
fromsystemsonboard)
ThankstoTECHNOLOGY
butithasitslimitations

Engineering a Safety Culture - Prof. James Reason

Source: Managing the Risks of Organisational Accidents, 1997

Engineering a Safety Culture - Prof. James Reason

Source: Managing the Risks of Organisational Accidents, 1997

Risk Thermostat Prof. John Adams

Source: 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 us
by others and, generally, support
regulation to contain them.

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

http://youtu.be/u6XAPnuFjJc

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

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.

processes for setting

performance measures

A Service Level Agreement (SLA) that

includes clear Key Performance Indicators

F
Do
TOOS

Technical Availability =

fleetsizeontheday
lengthofoperatingday (definedas18hours)
totaltimeoutofserviceduringthedayresulting
fromtechnicaldelays(seeClauseS10.1.2.1)and
outofserviceevents(seeClauseS10.1.2.2).

Monthly Average
Availability Achieved

% of Monthly
Revenue

Payable To

100.00
99.80
99.60
99.40
99.20
99.10
99.00
98.90
98.80
98.60
98.40
98.20
98.00

11.00%
9.00%
7.00%
5.00%
3.00%
2.50%
1.00%
1.00%
2.00%
3.00%
5.00%
7.00%
8.00%

Maintenance Organisation
Maintenance Organisation
Maintenance Organisation
Maintenance Organisation
Maintenance Organisation
Maintenance Organisation
Maintenance Organisation
Operator (Airline)
Operator (Airline)
Operator (Airline)
Operator (Airline)
Operator (Airline)
Operator (Airline)

COMMUNICATINGACTUALPERFORMANCETHROUGH
INTRANET&TVSCREENSACROSSTHEORGANISATION

CONTRACTUAL OBLIGATIONS
What happens if the Operator monitors the contracted organisations
performance only by Availability and Technical Dispatch Reliability?
NumberofDeferredDefects

Amount

Payableto

0.5orless

10,000

MaintenanceOrganisation

0.6to1.5

5,000

MaintenanceOrganisation

1.6to2.5

2,000

MaintenanceOrganisation

2.6to3.5

3.6to4.5

2,000

Operator(Airline)

4.6to5.5

5,000

Operator(Airline)

5.6andmore

10,000

Operator(Airline)

NumberofDeferredDefects

Amount

Payableto

0.5orless

10,000

MaintenanceOrganisation

0.6to1.5

5,000

MaintenanceOrganisation

1.6to2.5

2,000

MaintenanceOrganisation

2.6to3.5

3.6to4.5

2,000

Operator(Airline)

4.6to5.5

5,000

Operator(Airline)

5.6andmore

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 delicate. So be careful how to
handle 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 challenge statistics, should not
always be slave to them and consider the big picture.
Lets not get obsessed about performance. Ironically if
we push people too hard to achieve better performance,
they will take more risks. (The financial 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 BOARD
ROOM BUT ALSO AT THE SHARP END IS THE KEY.

IMA
RISKTAKER
IMAGENUINE
ERRORMAKER

IM
NEGLIGENT

MANAGING HUMAN RISK IS THE KEY TO ENSURE FLIGHT SAFETY.

Pleasedonothesitatetocontactmeifyourequirefurther
informationoryouthinkwecanconductjointresearch

cengiz.turkoglu.1@city.ac.uk