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IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Structures & Attributes
Of Successful US NPP Organizations
A Presentation For:
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes
13 December 2016
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Presentation Agenda
2
Overview of Goodnight Consulting
Principles Of Successful Organizational Designs
Layers of Management/Spans of Control
Centralization
Culture
Summary
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016 3
Goodnight Consulting Has Conducted Over 120 Engagements
For Global Nuclear Power Industry Clients Since 2001
Over 30 nuclear power clients in
over 20 countries
Nearly every US nuclear
operator
International nuclear
operators
NSSS reactor designers
EPCs and technical
firms
Select ClientsSelect Fleet ClientsSelect Non-Fleet Clients
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
We Have A Consulting Team With Extensive
Nuclear Power Experience, Many As Senior Executives
4
% of Team w/Prior Experience
Nuclear 91%
Operations 73%
Corp Governance 68%
Maintenance 68%
Engineering 64%
HR 34%
Construction 32%
Decommissioning 20%
Ma
na
gem
ent Utility COO
Nuclear CEO
CNO
Nuclear COO
Site VP
Plant Manager
Op
era
tio
ns Manager
Shift Mgr.
CRO
Ma
inte
na
nce Manager
Superintendent
En
gin
eeri
ng VP
Design Mgr.
Systems Mgr.
Su
pp
ort VP Finance
VP HR
HR Mgr.
Former job titles-highlights:
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Goodnight Consulting Helps Nuclear Industry Clients Pursue
The Seven Common Traits Shared By Top Performers
5
Safety
•Nuclear, personal, and industrial safety
Management System
• Integrates all systems and processes in to one complete framework, providing the ability to work as a single unit with unified objectives
Leadership
•Strong leaders with a strategic vision and the fortitude to see it through
Culture
•A single, unified culture
Processes
•Work processes and procedures that emphasize safety, effectiveness, and efficiency
Organization
•An efficient organizational model
•Functionally-aligned
Staffing
•Appropriate numbers of suitably qualified and experienced personnel in the right places at the right times
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Goodnight Consulting Also Offers Additional Services
That Help Our Clients Optimize Performance
6
• Senior team will provide an assessment of your site and identify areas where we can assist
• Executive-level support available on call
Executive FIN Team
• Labor relations
• Change Management
• Employee Retention Programs
• HR Strategy
• Program Implementation
• Plant Shutdown
• Staffing Adjustments
HR Services
A detailed, quantitative assessment of your organizational culture with actionable steps to fix problems and drive improvements
Cultural Assessments
• Human Resources
• Communications
• Key Employee Retention
• Employee Displacement
• Employee Re-Absorption
• Phased Staffing & Organizational Models for Shutdown
Shutdown Strategy
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Goodnight Consulting Has Also Developed Staffing and O&M
Cost Models For New NPP Reactor Designs
We have developed proprietary staffing and/or O&M models for a range of new Gen III+ and Gen IV designs:
• Areva (EPR)
• B&W (Generation mPower SMR)
• GE Hitachi (ESBWR)
• GE Hitachi (PRISM)
• KEPCO (APR1400)
•TerraPower (TWR)
• Westinghouse (AP1000)
7
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Goodnight Consulting Also Offers Additional Services
That Help Our Clients Optimize Performance
8
• Senior team will provide an assessment of your site and identify areas where we can assist
• Executive-level support available on call
Executive FIN Team
• Labor relations
• Change Management
• Employee Retention Programs
• HR Strategy
• Program Implementation
• Plant Shutdown
• Staffing Adjustments
HR Services
A detailed, quantitative assessment of your organizational culture with actionable steps to fix problems and drive improvements
Cultural Assessments
• Human Resources
• Communications
• Key Employee Retention
• Employee Displacement
• Employee Re-Absorption
• Phased Staffing & Organizational Models for Shutdown
Shutdown Strategy
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Goodnight Consulting Developed And Presents The
New Nuclear International Conference Series (NNIC)
9
• NNIC conferences have been organized and presented
to “bring the nuclear world together”
2013 Abu Dhabi, UAE
Under the Patronage of the UAE Minister of Energy, and in Partnership with
the Emirates Nuclear Energy Corporation; Included a site tour of the Barakah
NPP construction site
2015 Dead Sea, Jordan
Under the Patronage of the Jordan Ministry of Energy, and in Partnership with
The Jordan Atomic Energy Commission (JAEC) and The Jordan University of
Science & Technology; Included a site tour of the Jordan Research & Training
Reactor construction site
2016 Warsaw, Poland
Under the Patronage of the Polish Ministry of Energy, and with Polska Grupa
Energetyczna (PGE) serving as the Platinum Sponsor; Included a site tour of
the operational MARIA research reactor facility
NewNuclearInternational.com
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Presentation Agenda
10
Overview of Goodnight Consulting
Principles Of Successful Organizational Designs
Layers of Management/Spans of Control
Centralization
Culture
Summary
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Principles That Support The Company’s Vision Are Agreed
Upon Before Drawing Boxes On A Whiteboard
Developing organizational principles beforehand will help guide you through the challenging times on the horizon.
We have seen senior leaders use pre-determined design principles to help “break a tie” when making a difficult decision.
11
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Successful Organizations Apply Principles
That Directly Support The Organization’s Vision Statement
“Safe” = Oversight & Management
Leaders are positioned to oversee and managethrough direct reporting from line functions
“Low Cost” = Centralization
First, physically centralize activities that are not required to be on site, Next, centralize “virtually”
Alignment = Achieve “reliable energy production”
Align related activities to ensure appropriate horizontal support and communications
12
Vision statement example: “A top quartile industry
leader in safe, low cost, reliable energy production.”
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Leverage Four Key Concepts
Has Help Many Organizations To Be More Effective
13
Align
related
functions
Remember to
separate
unrelated
functions
Centralize
activities
Benefits of
centralization
Reduces costs
Curbs
distractions
Supports
standardization
Describe new
roles
Establishes
responsibilities
and
authorities
Train on
expectations
Use training
to emphasize
the vision
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Presentation Agenda
14
Overview of Goodnight Consulting
Principles Of Successful Organizational Designs
Layers of Management/Spans of Control
Centralization
Culture
Summary
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Successful Organizations Balance Layers of Management,
And Separately, Spans of Control
15
Too many layers of management:
• Increases bureaucracy
• Increases staffing
• Hampers communications
Too few layers of management:
• Requires large spans of control
• Decentralizes management
• “Flattens” the organization
Small spans of control require
extra supervisors
Large spans of control
overburden leadership
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Example Of Typical US NPP Site Organizational Structure
Site VP
GMPO
Operations
Maintenance
Work Management
Chemistry
Radiation Protection
Admin. Assistant
Oversight Dir.
Licensing/ Reg. Affairs
Emergency Planning
Safety Programs
ProcedureWriting
INPO Loanee
NIOS
Admin. Assistant
Engineering Dir2
Budget Coordinator
Design Engineering1
SystemsEngineering
EngineeringPrograms
Reactor Engineering
Admin. Assistant
Training Dir.
Ops Training
Maint. & Tech Training
Training Support
Admin. Assistant
Site Services Dir.
Site Projects
Procedure Writing
Communications
HR
Budget/Accounting
IT
Admin. Assistant
Security Dir.
Security Support-Access
Security Support-FFD
Security Ops
Security Training
Emergency Planning
Admin. Assistant
Executive Assistant
16
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Presentation Agenda
17
Overview of Goodnight Consulting
Principles Of Successful Organizational Designs
Layers of Management/Spans of Control
Centralization
Culture
Summary
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Successful NPP Operating Organizations Recognize And
Maximize All Applicable Centralization Opportunities
Centralization Opportunities
Other generating facilities in
your company
Neighboring plants with different owners
Corporate offices
Regional offices
18
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Successful Organizations Understand The Differences
Between Organizational Design And Workforce Planning
Organizational Design Project
Workforce Planning Program
19
Like a construction project, organizational design is an
activity with a beginning, activities to be completed, and
an achieved goal (the completed organizational model)
Workforce Planning is an activity with
a beginning, but without end; as such, it
is a program that requires ongoing work
and effort to maintain that ensures other
goals continue to be met (appropriate
staffing levels are maintained with
managed pipelines to ensure on-going
capability)
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Presentation Agenda
20
Overview of Goodnight Consulting
Principles Of Successful Organizational Designs
Layers of Management/Spans of Control
Centralization
Culture
Summary
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
There Are 12 Key Organizational Culture Elements
1. Mission Criticality
2. Standardization
3. Fully Empowered Employees
4. High Integrity Workplace
5. Strong Trust Relationships
6. Highly Effective Leadership
21
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
There Are 12 Key Organizational Culture Elements (Cont’d)
7. Effective Processes
8. Responsive to Internal Customers
9. Effective Communications
10. Emphasis on Recruiting/Retaining Best Employees
11. High Degree of Adaptability
12. High Accountability Standards
22
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Discussion On Accountability
Leaders will align
with these behaviors
23
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Leadership Versus Management
• Management is overseeing processes
– Operations
– Maintenance
– Engineering
– Security
– Human Resources Management
– Etc.
• Leadership is developing people: “A leader is someone who
takes others to a place they would not otherwise go”
……therefore leaders can be either good or bad, and still lead
• Senior Managers need to be leaders
24
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
On “Ops Focus” Has Consistently Resulted
In Higher Performance At US NPPs
25
• Have an “Ops Culture” (as opposed to Maintenance, Engineering, or Bureaucratic)
– Operations should be the customer, but should have a solid understanding of the support being provided
by other organizations
• Prioritize Knowledge Transfer within Ops, and out to other organizations
– Transferring Ops personnel out to other organizations is critical to developing and maintaining an Ops
Focus over time
• Focus on relationship building with the organizations that directly support Ops
– Chemistry
– Radiation Protection
– Reactor Engineering
– Systems Engineering
– Training
– Maintenance Craft & FIN Teams
– Work Management
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
US “Top Performer” NPPs
Have A Quantifiable “Operational Focus:
26
3 Criteria:
• Less than Average Staff/MWe
• Higher than Average 3-Yr
Capacity Factor
• Lower than Average 3-Yr
Cumulative NRC ROP Score
• In every comparison (1-Unit vs. 2-Unit, PWR vs BWR, Old vs
New, Fleet vs. Non-fleet, etc.) the Top Performer NPPs have
MORE On-Shift Operations personnel than Non-Top Performers
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Presentation Agenda
27
Overview of Goodnight Consulting
Principles Of Successful Organizational Designs
Layers of Management/Spans of Control
Centralization
Culture
Summary
IAEA Technical Meeting on the Responsibilities of Owners/Operators
in New and Expanding Nuclear Power Programmes, Atlanta, Georgia, USA 12-16 December 2016
Summary
28
• Identify the organization’s vision
• Organize to support that vision
• Balance Layers of Management and Spans of Control carefully
• Maximize centralization where appropriate
• Understand and apply the differences between designing the organization and developing & maintaining a workforce planning program
• Define and drive the organization’s culture – do NOT let it evolve on its own
• Develop and maintain an Operational Focus