Nearly all organizations are creating training programs designed to minimize everyday business risks that can impact the performance of employees, customers, and assets. This TrainingIndustry.com webinar, sponsored by Raytheon Professional Services, LLC, featured Tracy Cox, director of performance consulting for Raytheon Professional Services, discussing the trends and challenges for setting training strategy when consequences are high. On demand webinar here: http://www.trainingindustry.com/webinars/tomorrows-risk-today-training-strategy-for-high-consequence-organizations.aspx

1. Tracy Cox
Director, Performance Consulting
Raytheon Professional Services LLC
April 22, 2015
@RaytheonRPS
S T R AT E G I E S F O R H I G H C O N S E Q U E N C E T R A I N I N G
Copyright © 2015 Raytheon Professional Services, LLC, and Training Industry, Inc. All rights reserved.
TOMORROW’S RISK TODAY:

2. Today’s Speaker
Tracy Cox
Director, Performance Consulting
Raytheon Professional Services LLC

3. Agenda
• Raytheon Professional Services introduction
• Overview and definition of organizations operating
in high consequence environments
• Types of organizational risk
• Sources of organizational risk
• Setting training strategy for organizations operating
in high consequence environments

4. Raytheon Professional Services
• Raytheon
• Over 90 years of innovation
• 62,000 employees worldwide
• Defense, Homeland Security, Aerospace
• Raytheon Professional Services
• High consequence training expertise worldwide
• Trains more than 2 million people a year
• 1,100 learning professionals
• Over 100 countries and 28 languages
• Learning solutions designed to solve critical business
challenges
6

5. This Research
• Training Industry conducted a series of structured phone interviews
with a variety of learning and development professionals at Raytheon
working with organizations that operate in high consequence
environments across a number of industries, including:
• Aerospace
• Automotive manufacturing
• DOD/military
• Government
• Financial services
• Pharmaceuticals
• Utilities (e.g., oil & gas)
• Air traffic control
• Heavy manufacturing
• The observations and recommendations in this webinar are the
cumulative outcome of these interviews

6. Poll Question
In your opinion, where is the greatest risk to your
organization?
Injury to human resources
Injury to customers/clients
Loss of intellectual property/information
Loss of financial assets
Loss of productivity (e.g., damaged equipment)

7. Defining ‘High Consequence’ for Organizations
Organizations operating in high consequence environments can be
described as having the following characteristics:
• (1) Significant business concern with managing, mitigating, or
eliminating risk borne of unwanted variability
• (2) Processes and procedures focused on consistency and
predictability
• (3) Focus on safety (incl. but not limited to potential for physical
injury and death), and regulatory/compliance standards as
required by operating environment
• (4) High value on industry/domain expertise due to high cost of
failure
Organizations operating in high consequence environments can also
be referred to across various industries as safety critical organizations,
high risk organizations, or high reliability organizations.

8. Types of Organizational Risk
• Preventable risks
• Internal risks, usually controllable, can be
eliminated/avoided
• Strategic risks
• Voluntary acceptance of risk to achieve specific
business outcomes
• Probabilistic, not inherently undesirable
• External risks
• Arise from events outside the company, beyond
organizational influence or control
• E.g., natural and political disasters, major
economic shifts

10. The “Traditional” High Consequence Workplace
• Risk to human resources
• Atypical incident risk of physical injury/illness/mortality
• Safety behavior failures by employee
• Process/system failures causing adverse critical incidents
• External catastrophic event
• Typical risk of physical injury/illness/mortality
• Safety critical interactions
• Maintenance failures
• Resource constraints
• Emotional/psychological health

11. The “Modern” High Consequence Workplace
• Risk to physical resources
• Risk to physical organizational assets
• Risk to financial organizational assets
• Risk to intellectual property
• Risk to customers/clients
• Client failing to use
products/services correctly
• Failure of client education on
safety protocols

12. The “Modern” High Consequence Workplace
• Cyber‐security
• Increasing area of risk for all organizations
• Only 20% of companies are in compliance with
credit card security standards
• 47% of American adults had PII comprised in 2014
• 27% CLOs reported their employers have
suffered a data breach
• Exemplars of recent breaches:

13. Summarizing Risk
• Q: What is the ultimate source of risk common to nearly all
organizations operating in high consequence environments?
• A: PERSONNEL
• 57% of the information breaches in Europe in the past 10 years
involved organizational errors, insider abuse, or other internal
mismanagement (Center for Media, Data, & Society, 2014)
• “Cultivation of a consistent ‘risk culture’ throughout firms is the
most important element in risk management.” (Institute of International
Finance, 2008)
• Q: What is the most controllable source of risk to Organizations
operating in high consequence environments?
• A: PERSONNEL
• Why? They can be trained!

14. Tomorrow’s Risk Today
• Training strategy is key to mitigating
organizational risk
• Needs to be aligned with corporate strategy
• Compliance with regulatory/certification
entities
• Training is not always seen as strategic
• Organizations must understand impact to top‐ and bottom‐
line impacts & implications
• Not a discretionary expense
• Training needs to occur in the context of a business
matrix
• Not enough to have L&D solely responsible for strategy

15. Strategy Development for High Consequence Training
1. Identify business goals for risk
management
2. Identify existing training gaps
related to known risks
3. Identify relevant training goals
4. Consider the measurement
approach for risk‐related
outcomes
5. Consider the cost, available
resources, and likely training
modality

16. Strategy Development for High Consequence Training
• Identify business goals
• Identify and assess current areas of risk
• What is the current business model for addressing risk?
• i.e., where is risk strategic versus preventable/external?
• What areas of risk are unique to the work environment?
• Do areas of risk apply organization‐wide, or within a number of
business units, or within a specific team or occupational
category?
• Intersection of business goals and areas of risk
• What risk‐relevant functions and operations are core to the
business?
• Is the ‘current‐state’ regarding risk appropriate? Is the
‘future‐state’ regarding risk appropriate?

17. Strategy Development for High Consequence Training
• Identify existing training gaps related to
identified risks
• What gaps are unique to the work environment?
• Must ensure strategy adheres to all industry‐relevant
regulatory/compliance requirements
• Global implications (if applicable)
• Does high consequence training need to occur in different
countries that may have different training gaps, working
conditions, and/or requirements?

18. Strategy Development for High Consequence Training
• Identify relevant training goals
• Training goals must be tied to business goals
• What is the desired outcome of high consequence training?
• Need to work with specific, measurable, time‐bound
processes and outcomes
• May have to address embedded cultural obstacles
• e.g., the “that's not how I was taught“ argument

19. Strategy Development for High Consequence Training
• Consider measurement approach for relevant
outcomes
• What are the nature of risks?
• Single point of failure versus systemic failure
• Labor/resource cost of failure
• What is the best way to measure success?
• May need to go beyond existing organizational metrics
• “Best way” does not mean “easiest way”

20. Strategy Development for High Consequence Training
• Consider cost, available resources, and likely
training modality
• Separate “must‐haves” from “nice‐to‐haves”
• Estimate opportunity cost of committing training resources
• Estimate process loss of committing employees’ time to
training
• Identify points of decentralized decision‐making to
pre‐empt resource obstacles
• Leadership sponsorship
• Fidelity of training modality
• Are there unique considerations with the work environment
that may inform the training modality?

21. High Consequence Organizational Culture
• Successful organizations or business units
operating in high consequence environments
foster a culture comprised of several key
elements:
oA clearly documented strategy for addressing risk that
is communicated organization‐wide
oHigh standards for attention to detail and information
flows
oThreat escalation frameworks
oModeling of standards/behaviors by leadership
oPerspective of high consequence training as a
campaign, not merely an event

22. Q&A
Tracy Cox
Director, Performance Consulting
Raytheon Professional Services LLC
Email: tcox@raytheon.com
Raytheon Professional Services LLC
• Visit our website: www.rps.com
• Call us: (+1) 972‐205‐5300
• Connect with us on one of our social networks:
• LinkedIn: Raytheon Professional Services LLC Group
• Twitter: @RaytheonRPS