Play it safe

How to mitigate increasing tech-related risks in the workplace, according to this Houston expert

In a world of driver-less cars and artificial intelligence, companies have an increased need to focus on safety in the workplace. Getty Images

New technologies — driverless vehicles, delivery drones, and AI — are making an accelerated push into operational excellence across industries, and are generating a lot of attention. Hype notwithstanding, we need to also think also about safety and risk and how to prevent safety incidents before they occur so that safety operates in partnership with new technologies and innovation.

Today, safety as process that is wrapped into ones' organizational culture requiring companies to look beyond intended performance and innovation breakthroughs, to their own assumptions about safety. And how it works and does not work, despite best efforts, financial investments and operations programs that are intended to create a culture that is incident free in the workplace.

When firmly in place, an effective safety culture instills an environment where employees differentiate between events which, while detrimental to performance, have low probability of generating an incident, and those with seemingly minimal impact on performance, yet high probability of escalation into full-blown safety incidents, accidents and sometimes deaths.

Six safety principles

Creating safety in the workplace requires a new and different mindset which incorporates six sustainable safety behaviors:

  1. Leadership consistently practice positive regard and good intent to articulate, demonstrate and reinforce employee behaviors that exemplify a commitment to safety.
  2. Leadership clearly communicate safety objectives and provide employees information to enable and empower employees to make value-based decisions and set priorities consistent with their levels of accountability and roles in the organization.
  3. Leadership supports employees identifying real and perceived barriers to a safe environment in compliance with policies, regulations and risks.
  4. Leadership practice positive employee regard to encourage, and assume good intent to accept, constructive challenges to policies and practices that have little or no value.
  5. Leadership support and create an environment in which commitment to identify risks during the course of one's work activities and take action, when first seen, creates a mindset that will genuinely transform the organization.
  6. Leaders are visible and consistently viewed by employees as champions of safety every day.

Safety mindset threats

Many current safety efforts occur after the incident takes place. In other words, after an injury happens — someone falls off a lift, for example — actions are taken to prevent similar injuries in the future. This is known as reactive safety and is not an ideal solution. If we can determine the why of an accident, safety can become proactive.

An effective safety program trains everyone, and encourages safety precautions, as well as strives to understand and reduce risk, rather than waiting for an accident to occur.

With an effective safety program in place your focus is always on preventing injuries before they occur and targeting 80 to 90 percent of the risk. Through utilization of this kind of process worker-controlled program, precautions can prevent injuries, reinforces these behaviors, identifies and removes systems, conditions and obstacles that make it difficult or impossible to take the right precautions.

In addition, employees may be practicing vicious compliance, in contrast to authentic commitment to process safety, in which they follow management's policies, procedures and other mandates "to the letter", even in situations where other choices would make more sense.

The workforce may act unilaterally based on their own assumptions, for example:

  • "They talk a good game about process safety, but I know it's really about getting the work done. I'll operate to get the desired production rate, even if this pushes the equipment to its limit." Indeed, the oft-ignored employee assumption and resulting belief is that production trumps process safety.
  • Employees' reliance upon personal experience to evaluate risk of low-frequency events: "As an employee, my experience teaches me that I've worn my personal protective equipment 100 times and there has never been an incident. So, if I don't wear it this one time, especially since I am so busy, it seems to me that the associated risk of an incident is quite low. So, why does management constantly 'get on me' about wearing it? Aren't there more important issues facing us?"

Routine behavior often includes silence or compliance, but with little challenge of issues or conversation about what could or might happen. As a result, management may perceive that all is well when in fact employees have significant concerns and issues.

To avoid major safety incidents, both known and unknown, an organization can take process safety to the next level by:

  • Exploring and challenging deeply-held beliefs, values, and assumptions by examining the underlying antecedents of process safety behaviors and utilizing new technology systems that shut down operation when a safety situation is first detected before an incident occurs.
  • Achieving the desired operational discipline, including paperless documentation, setting expectations, defining critical cyber secure procedures, and linking executive bonuses to achieving safety goals.
  • Focus on practicing a leveraged safety program that delivers results in the most effective and efficient mean possible by frequently focusing on decreasing threats, risks and increasing attention and communications to prevention, detection and correction.

The ultimate effective safety process and program relies upon effective use of new technologies in the workplace self- and organizational awareness, and the constant, never-ending focus on safety everyday and minute that we spend in the workplace.

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Mark Hordes is principal at Houston-based Mark Hordes Management Consultants LLC, an organizational consulting advisory.

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Building Houston

 
 

Last weekend was a tumultuous one for founders and funders in Houston and beyond. Here's what lessons were learned. Photo via Getty Images

Last week, Houston founder Emily Cisek was in between meetings with customers and potential investors in Austin while she was in town for SXSW. She was aware of the uncertainty with Silicon Valley Bank, but the significance of what was happening didn't hit her until she got into an Uber on Friday only to find that her payment was declined.

“Being positive in nature as I am, and with the close relationship that I have with SVB and how they’ve truly been a partner, I just thought, ‘OK, they’re going to figure it out. I trust in them,'” Cisek says.

Like many startup founders, Cisek, the CEO of The Postage, a Houston-based tech platform that enables digital legacy planning tools, is a Silicon Valley Bank customer. Within a few hours, she rallied her board and team to figure out what they needed to do, including making plans for payroll. She juggled all this while attending her meetings and SXSW events — which, coincidentally, were mostly related to the banking and fintech industries.

Sandy Guitar had a similar weekend of uncertainty. As managing director of HX Venture Fund, a fund of funds that deploys capital to venture capital firms around the country and connects them to the Houston innovation ecosystem, her first concern was to evaluate the effect on HXVF's network. In this case, that meant the fund's limited partners, its portfolio of venture firms, and, by extension, the firms' portfolios of startup companies.

“We ultimately had no financial impact on venture fund 1 or 2 or on any of our portfolio funds or our underlying companies,” Guitar tells InnovationMap. “But that is thanks to the Sunday night decision to ensure all deposits.”

On Sunday afternoon, the Federal Deposit Insurance Corp. took control of SVB and announced that all accounts would be fully insured, not just up to the $250,000 cap. Customers like Cisek had access to their accounts on Monday.

“In the shorter term, the great news is SVB entity seems to be largely up and functioning in a business as usual manner,” Guitar says. “And they have a new leadership team, but their existing systems and predominantly the existing employee base is working well. And what we're hearing is that business as usual is taking place.”

Time to diversify

In light of the ordeal, Guitar says Houston founders and funders can take away a key lesson learned: The importance of bank diversification.

“We didn't think we needed one last week, but this week we know we need a resilience plan," she says, explaining that bank diversification is going to be added to "the operational due diligence playbook."

"We need to encourage our portfolio funds to maintain at least two banking relationships and make sure they're diversifying their cash exposure," she says.

A valued entity

Guitar says SVB is an integral part of the innovation ecosystem, and she believes it will continue on to be, but factoring in the importance of resilience and diversification.

"Silicon Valley Bank and the function that they have historically provided is is vital to the venture ecosystem," she says. "We do have confidence that either SVB, as it is currently structured or in a new structure to come, will continue to provide this kind of function for founders."

Cisek, who hasn't moved any of her company's money out of SVB, has similar sentiments about the importance of the bank for startups. She says she's grateful to the local Houston and Austin teams for opening doors, making connections, and taking chances for her that other banks don't do.

"I credit them to really being partners with startups — down to the relationships they connect you with," she says. "Some of my best friends who are founders came from introductions from SVB. I've seen them take risks that other banks won't do."

With plans to raise funding this yea, Cisek says she's already started her research on how to diversify her banking situation and is looking into programs that will help her do that.

Staying aware

Guitar's last piece of advice is to remain confident in the system, while staying tuned into what's happening across the spectrum.

“This situation that is central to the venture ecosystem is an evolving one," she says. "We all need to keep calm and confident in business as usual in the short term while keeping an eye to the medium term so that we know what happens next with this important bank and with other associated banks in the in our industry."

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