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High-Reliability Organization

Increased dependence on high-performing technologies in critical infrastructures such as transportation, energy, and telecommunications is a hallmark of modern societies in a technological age. At the same time, many technologies, such as nuclear weapons, nuclear power plants, and large jet aircraft, are highly hazardous, with costly if not catastrophic consequences attending accidents, failure, or, more recently, terrorist assault. The reliable management of these crucial or hazardous systems is now a major concern of the modern state.

The term high-reliability organization (HRO) has been used to refer to an organization charged with the management of a hazardous or crucial technical system under the highest level of operational reliability. For an HRO, avoiding accidents, failure, or the worst consequences of a terrorist attack is a requirement for societal safety and security, as well as for continued acceptance and possibly survival in an unforgiving political and regulatory niche it is forced to occupy. The special challenge for an HRO lies in a specific set of events that simply must not happen, that must be precluded by technological design and by organizational strategy and management. The responsibility to preclude a given set of events from occurring means that trial and error is sharply limited as an option for a high-reliability organization. The cost of key errors, should they occur, cannot be balanced by the learning that might come from them.

This nearly failure-free standard is a rare challenge for human organizations. Overwhelming evidence and dominant theoretical perspectives in the study of organization suggest that such performance may even be beyond the capacity of human organizations, given their inevitable imperfections and the predominance of trial and error learning in nearly all human undertakings. Yet, a group of organizational researchers have identified an unusual set of organizations that seem to be achieving this standard and thus surviving in highly precarious settings with respect to social demands for reliability. High reliability as a distinctive organizational property as well as social challenge has come into its own recently as a subject of careful analysis.

The High-Reliability Perspective

Individual case studies of nuclear aircraft carriers, nuclear power plants, and air-traffic control centers have been the cornerstone of the emergence of HRO research. In these organizations, reliability is not treated as a probabilistic property that can be traded off at the margins with other organizational values such as efficiency or market competitiveness. Instead, organizational design and management treat reliability in relation to occurrences that must, as nearly as possible, be deterministically prevented.

The distinctive features of these organizations as reported by high-reliability researchers, include (a) high technical competence throughout the organization; (b) a constant, widespread search for improvement across many dimensions of reliability; (c) a careful analysis of a set of core events that must be precluded from happening; (d) an analyzed set of “precursor” conditions that could leave operations a single contingency away from the precluded events or that would constitute conditions that lie outside prior analysis; (e) an elaborate and evolving set of procedures and practices that keep operations away from the zone of precluded events as well as precursor conditions; and (f) a formal structure of roles, responsibilities, and reporting relationships that can be transformed under conditions of emergency or stress into a team-based approach to problem solving. Further, these organizations develop (g) a culture of reliability under which the values of care and caution, respect for procedures, attentiveness, and individual responsibility for the promotion of safety are widely distributed among members throughout the organization. Finally, these organizations are characterized by (h) external supports, constraints, and regulations that allow for the development of the other features noted previously. The HROs analyzed so far all exist in closely regulated environments that constrain them to take reliability seriously but that also shield them from full exposure to market competition. Competitive demands would likely undermine the precluded event standard of reliability in favor of organizational strategy that would turn reliability into a “marginal” property.

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