Tag: Safety and Environmental Management System

  • Leadership Selling

    Leadership Selling

    “The price of greatness is responsibility.” – Winston Churchill

    I recently watched a documentary about Three Mile Island.  I did not fact check it or try to assess bias but if much of what went wrong were correctly portrayed, leadership was missing in action.  The father of the US Nuclear Navy, Admiral Hyman G. Rickover and his demand for excellence was referred to on several occasions.  He was rightfully positioned as THE sector leader during that era when nuclear power generation was an emerging technology.

    In the context of leadership, the following is attributed to him, “Responsibility is a unique concept… You may share it with others, but your portion is not diminished. You may delegate it, but it is still with you… If responsibility is rightfully yours, no evasion, or ignorance or passing the blame can shift the burden to someone else. Unless you can point your finger at the man who is responsible when something goes wrong, then you have never had anyone really responsible.”  This is a very telling statement that is applicable to the many human foibles that have resulted in cataphoric failures, even warfare and almost all high visibility major industrial incidents.

     A clear explanation of the difference between Management and Leadership.

    What Does All This Have to Do with Selling?

    Typically, organizations refer to the process of revenue generation as Sales.  However, a more accurate description this process is Selling.  The action verb, selling can result in a sale or series of sales.  Yet, for each competitive engagement most of these costly attempts at revenue generation will result in no sales–zero revenue.   Fail at enough opportunities and the firm’s Cost of Sales can skyrocket.

    Moreover, increasingly B2B solutions are a combination of products (seller product line and possibly third parties) as well as services (can include Cloud subscriptions).  By definition, Complex Sales is getting more complex and interrelated with other new/existing systems.

    Failure is Not an Option!

    SUBSAFE was born in 1963, just two months after mechanical failures resulted in the loss of USS Thresher (SSN-593).  The program was started with a simple goal in mind: ‘. . . provide the maximum reasonable assurance that the ship will not have flooding but if flooding does occur, assures that the ship will get safely to the surface.’”  The program is deemed as a major life saving success, partially by enabling real responsibility to all including contractors.

    Safety and Environmental Management Systems (SEMS) are a similar construct.  Most organizations in Critical Infrastructure sectors incorporate SEMS into their Operations Management Systems (OMS).  For our purposes here, we will repurpose and slightly change the nine tenants of the US Bureau of Safety and Environmental Enforcement’s BSEE, SEMS.

    We posit that the following Tenants comprising our Selling Management System (SMS):

    1. Commitment to Values and Actions. Leaders demonstrate a commitment to societal and organizational values in their decisions and behaviors.
    2. Issue Identification and Risk Management. Issues potentially impacting the deal and its successful delivery are promptly identified, fully evaluated, and promptly addressed or corrected commensurate with their significance.
    3. Personal Accountability. All individuals take personal responsibility for process and personal behavior, as well as the stewardship of those entrusted to them.
    4. Work Processes. The process of planning and controlling work activities so that the selling action items are in accordance with organizational mission and policies as well as boding well for success.
    5. Continuous Improvement. Opportunities to learn and codify selling and delivery knowledge, ensuing future success and organizational learning.
    6. Environment for Raising Concerns. A work environment is maintained where personnel feel free to raise issues and concerns without fear of retaliation, intimidation, harassment, or discrimination.
    7. Effective External and Internal Communication. Communications maintain a focus of the selling efforts and processes.
    8. Respectful Work Environment. Trust and respect permeate the organization with a focus on teamwork and collaboration.
    9. Inquiring Attitude. Individuals avoid complacency and continuously consider and review existing conditions and activities in order to identify discrepancies that might result in error or inappropriate action.

    It is not surprising that action items focused on revenue generation should align with business imperatives towards effective and efficient operations.  This is especially true when operations personnel are assigned to the pursuit team as they will play a major role assuring successful delivery, i.e. most capital (CAPEX) goods and services.

    Tenant 6, Environment for Raising Concerns is perhaps one of the most important when enabling junior leadership.  For example, if a material issue is identified by a new college graduate in her or his field and unnoticed by more senior individuals schooled in early technologies, failure to be “heard” may have deal failure ramifications, i.e., engineering or software errors.

    Leadership is not part of a title, except by self-serving politicians who routine call themselves leaders.  Leaders are not born either, they are individuals (all ages and genders) who when needed, rise to occasions great and small.  The Rickover Mind Model enables leaders to emerge and that includes leadership during selling processes.

    Complex Deal Pursuit Team

    A deal Pursuit Team is a formal group assigned to drive revenue opportunities for a single deal/long-term strategic relationship or even partnership.  It can be an ad hoc assemblage or more effectively the assembly of experts with this type of experience.  Ideally, for a significant opportunity this team has a sole focus during its lifecycle, but that is not always the case or even practical in some firms or deals.

    Team composition can include, Sales Representative(s), Sales Management, Sales Support Team (as required) Executive Sponsor (if appropriate), Subject Matter Expert(s), Project Management, Third Parties (subcontractors and/or technology/professorial services providers), and others as needed.  Not all participants will be required full time.

    Typically, there are three phases to this process:

    • Relationship and Opportunity Development–The relationship building processes between seller and buyer as well as identification of value that can be added from seller products/services/solutions.
    • Formal Proposal Submission–Development and draft (with revisions) of a documented Scope of Work/Products, Deliverables and Pricing.
    • Proposal Assessment and Acceptance–Buyer review, changes and agreement to move forward–The Deal!

    Leadership is required throughout this process, and it may come from very unlikely sources.  Often top-level technologists and engineers are not the most outgoing folks.  However, their thoughts can be game changing.  It is important that those on the quiet side be actively ‘Included,’ and their ideas sought out and given serious discussion.

    Role of AI Agents

    AI sales agents are autonomous applications that analyze and learn from your sales and customer data to perform tasks with little or no human input. These agents can perform a wealth of functions, from top-of-funnel tasks like nurturing leads with email outreach, answering questions, booking meetings with sellers, and quote creation to tasks more deeply integrated inside sales teams, like active buyer roleplays and coaching. What makes them different from simple workflow automation is that agents are capable of learning, using data analysis to work more efficiently, taking action on their own.”

    The Pursuit Team is responsible for winning the deal and AI is another tool, not unlike product demonstrations and marketing efforts.  AI inputs should be calibrated and interpreted just like other data sources and analyses.

    Final Thoughts

    Remember that people buy from people and individuals on both the selling and buying teams have personal agendas, such as getting promoted.  Sellers who identify many/most of these concerns stand a better change of closing the deal.

    Closing deals generates jobs.  Both by the vendor and its ecosystem as well as the client who will use the product/service/solution to increase the stakeholder value ecosystem.  Stakeholders are broadly defined including local communities and customer’s customers.

    It is safe to say that the complex selling process is dramatically changing.  Time to get on board!

    Nothing happens until somebody sells something!  How is your company assuring the selling process is routinely successful?

    Pre order our new book

    Navigating the Data Minefields:

    Management’s Guide to Better Decision-Making

    We are living in an era of data and software exponential growth.  A substantive flood hitting us every day.  Geek heaven!  But what if information technology is not your cup of tea and you may even have your kids help with your smart devices?  This may not be a problem at home; however, what if your job depends on Big Data and Artificial Intelligence (AI)?

    Available April 2025

    We are also pleased to advise our loyal readers that CRC Press has accepted our proposal for this forthcoming book, Nonlinear Big Data and AI-Enabled Problem-Solving: Transforming From A Spreadsheet Society.  Stay tuned for more details.

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials herein.  They are provided for education and entertainment only.

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is the coauthor of the 2023 book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    We are also pleased to announce our forthcoming book to be released by CRC Press in April 2025, Navigating the Data Minefields: Management’s Guide to Better Decision-Making.  This is a book for the non-IT executive who is faced with making major technology decisions as firms acquire advanced technologies such as Artificial Intelligence (AI).

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross-Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg and his book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • Reputation, Reputation, Reputation

    Reputation, Reputation, Reputation

    “It takes 20 years to build a reputation and five minutes to ruin it.  If you think about that, you’ll do things differently.”

    – Warren Buffett

    It is fascinating how many accident videos get posted to social media.  Guess we all go to NASCAR races to see car wrecks.  In some cases, videos are personal disasters for those involved.  In some cases, they are downright funny and in the category of what were they thinking.

    Equipment and facilities damage, lost production/project time, personal injury litigation are just some obvious costs.  One hidden cost is reputational damage.  Would you hire a firm that hires, does not train, and/or tolerates some of this behavior?  Probably not, and in some case a strong safety record is part of the procurement decision process.

    Risk Mitigation

    Most of the social media video show failures in occupational safety.  Typically, in the United States these would fall under the Occupational Safety and Health Administration (OSHA) and/or state and local safety regulations.  This is laudable, but without a broader safety governance framework, a lackadaisical attitude can continue.

    Under a Strong Bond Governance Framework, a robust Operations Management System (OMS) enables both public and private firms to realize the Safety Culture they seek that will keep them off the social media most watched list.

    Strong Bond Governance

    An organizational governance model with the following attributes first put forth by the author in our seminal 2014 book, following the Deepwater Horizon incident.

    • Direct, defined relationships that enables open and valid information between governance members.
    • Led by authorities who are closely connected and strongly bonded.
    • Strong Governance, Risk, and Compliance (GRC) system.
    • Back office and field processes combined into a single information model (OT-IT).
    • Designed for application and use in Mission-Critical Environments. [i]

    [i] Holland, Winford “Dutch” E. and Shemwell, Scott M. (2014). Implementing a Culture of Safety: A Roadmap to Performance-Based Compliance. New York: Xlibris.

    Operational Excellence

    Operational Excellence is the execution of the business strategy more consistently and reliably than the competition, with lower operational risk, lower operating costs, and increased revenues relative to its competitor.  It is needed more than ever in today’s technology driven rapidly changing business models, which require organizations to undergo end-to-end business transformation. Operational Excellence can also be viewed as execution excellence. 

    However, the focus of Operational Excellence goes beyond the traditional continuous improvement methods to a long-term change in organizational culture.  Companies in pursuit of Operational Excellence do two things significantly differently than other companies: they manage their business and operational processes systematically and invest in developing the right culture. 

    Operational Excellence manifests itself through integrated performance across revenue, cost, and risk. It focuses on meeting customer expectation through the continuous improvement of the operational processes and the culture of the organization.  The goal is to develop one single, integrated enterprise level management system with ideal flow.  The second component, a culture of Operational Discipline, is commonly described as doing the right thing, the right way, every time.  This culture is built upon guiding principles of integrity, questioning attitude, always problem-solving, daily continuous improvement mind-set, level of knowledge, teamwork, and process driven.

    Organizations attain and sustain Operational Excellence using tools such as Operations Management System OMS).

    A Typical OMS Framework includes all the major areas involved in organizational processes such as shown in this graphic.

    OMS is a collection of processes and procedures enabling a company to effectively manage business practices and achieve the highest level of Operational Excellence in daily operations.

    One of the more notable examples is the Safety and Environmental Management System (SEMS).  SEMS embodies the Safety Culture into the organization’s OMS.  This systemic model is incorporated into a Strong Bond Governance Framework causing safety to become ‘the way we do business.’  In other words, the culture of the organization and by extension its Ecosystem.

    Systemic Safety Culture

    In a culture of safety, people are not merely encouraged to work toward change; they take action when it is needed.  Inaction in the face of safety problems is taboo, and eventually the pressure comes from all directions — from peers as well as leaders. There is no room in a culture of safety for those who uselessly point fingers or say, “Safety is not my responsibility, so I’ll file a report and wash my hands of it.” 

    — Institute for Healthcare Improvement

    Systemic Safety Culture is the Core Set of Values and Behavioral Economics of ALL participants of the extended organization and its Enterprise Risk Management strategy that reflect a Strong Bond Governance commitment to behaving as a High Reliability Enterprise Ecosystem in a safe and environmentally responsible manner.

    Most Safety Cultures have a set of tenets similar to the nine shown in the following list.  These are based on those developed by the Bureau of Safety and Environmental Enforcement’s (BSEE) for marine offshore oil and gas operations and are typical of those used in other Critical Infrastructure sectors.

    Nine Tenets of a Culture of Safety

    1. Leadership
    2. Problem Identification and Resolution
    3. Personal Accountability
    4. Work Processes
    5. Continuous Learning
    6. An Environment for Raising Concerns
    7. Effective Communications
    8. Trust and Respect
    9. Inquiring Attitude

    Finally, it is common practice for parties to refer to a singular industry ‘Safety Culture.’  In reality since each organization has its own culture, there are literally hundreds if not thousands of Safety Cultures in any critical infrastructure sector.  As shown in the above figure, each individual can interact routinely with a myriad of other cultures, both internal to their organization as well as with external economic players.

    After the Deepwater Horizon disaster in 2010, the authors quickly recognized that all economic players in the industry regardless of size would need to immediately adopt a Safety Culture if they were to survive.

    The resulting 2014 book, Implementing a Culture of Safety: A Roadmap for Performance Based Compliance remains one the few that readers can use as a roadmap to incorporate a Safety Culture into their Operational Excellence business model regardless of industry.

    Smart OpEx

    Fifteen years ago, large organizational Operations Management Systems were struggling to incorporate structural safety as more than the so-called, ‘slips, trips and falls’ of OSHA regulations to one where safety is endemic to the culture.  Smaller firms, often participants in the supplier ecosystem were largely forgiven.  The logic being that the major contractors and operators would assure that the final work product met Safety Culture requirements.  This is no longer the case.  Firms of all sizes in every business sector with an operations component now require an OMS to manage not just internal operations but third-party contractors as well.

    The Smart OpEx Operations Management System software solution is joint venture between The Rapid Response Institute LLC and Knowledge Ops, Inc.

    As Mr. Buffet mentions, reputations can be lost in an instant.  According to a 2007 Harvard Business Review article, “In an economy where 70% to 80% of market value comes from hard-to-assess intangible assets such as brand equity, intellectual capital, and goodwill, organizations are especially vulnerable to anything that damages their reputations.”  While almost 20 years old, the premise of the HBR piece remains the case as Boeing, Bud Light, and others can attest.

    Put systems with checks and balances in place that enable the organizational governance and protect the company from entering the Halls of the Disreputable.

    An individual’s and organization’s reputation are everything.  How are you assuring both are protected?

    Pre order our new book

    Navigating the Data Minefields:

    Management’s Guide to Better Decision-Making

    We are living in an era of data and software exponential growth.  A substantive flood hitting us every day.  Geek heaven!  But what if information technology is not your cup of tea and you may even have your kids help with your smart devices?  This may not be a problem at home; however, what if your job depends on Big Data and Artificial Intelligence (AI)?

    Available April 2025

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials herein.  They are provided for education and entertainment only.

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is the coauthor of the 2023 book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    We are also pleased to announce our forthcoming book to be released by CRC Press in April 2025, Navigating the Data Minefields: Management’s Guide to Better Decision-Making.  This is a book for the non-IT executive who is faced with making major technology decisions as firms acquire advanced technologies such as Artificial Intelligence (AI).

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross-Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg and his book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.