Sensitivity to Operation Concepts for the Energy Transition

I recently wrote a recent article on the concepts that High-Reliability Organizations (HRO) deploy in practice and how these principles could be applied by policymakers and the energy sector in the forthcoming energy transition. I received a lot of feedback on this article, in particular, that I did not provide enough information on each of the five HRO concepts and how they could relate to the energy transition. Therefore over the coming weeks, I will write five articles on each of the HRO concepts. Last week I wrote about the reluctance to simplify with the energy transition and today I will expand on why HRO's exhibit high levels of Sensitivity to Operations and how these concepts can be applied to the energy transition.

The energy transition is a structural shift away from fossil fuel-based energy systems to renewable or clean energy systems. For a successful transition to occur, several HRO concepts will contribute to this path and one such mechanism is the Sensitivity to Operations (STO). STO is a principle that encapsulates critical thinking and constant attention to ongoing operations to identify the potential for errors and real-time problem-solving. This could be applied to all decision-making processes of the transition (policy-making, design, installation and operations).

What are the key SFO steps that could be applied to the energy transition?

1. Develop a detailed understanding of the existing infrastructure, technology, and processes intertwined in the energy landscape. This includes developing an environment that thrives on critical thinking and undertakes a thorough analysis of the various energy system's operations, including underlying trends, recurring problems, and opportunities for efficiency gains and continuous improvement.
2. The management process of the existing energy assets will need to be reviewed. As energy systems transition towards more clean or sustainable alternatives, tools for real-time tracking, monitoring, and management of energy assets will be essential. This allows for more critical thinking to occur and will result in an efficient, reliable, and effective transition by quickly identifying and replacing or upgrading inefficient systems.
3. A key element of the SFO concept is to develop a deep-seated culture of problem identification and sensitivity within the organization. Employees at all levels must be trained to anticipate, identify, and address issues that may arise during the energy transition. This means cultivating a culture where everyone takes ownership and plays a role in recognizing vulnerabilities and taking preventive measures.
4. The SFO and lean concept called a Gemba Walk is an excellent tool that can be applied to the energy transition. The Gemba walk concept was initiated at Toyota and it implies that leadership "goes out" and reviews the process, asks the "why's" and "shows respect" to all who are involved in the process. This concept of the Gemba walk will also further enhance the energy transition, as policymakers and the energy sector can develop a strong continuous improvement culture.

Incorporating STO concepts into the energy transition process will offer the potential to implement a smooth transition as;

• It will lead to faster identification and solution for issues. This should ultimately reduce the time and cost spent on issues that could escalate, if not detected or addressed early.
• The STO principles can assist in establishing a culture of anticipation and preparedness within the energy transition, decreasing the risk of failure due to unanticipated problems.
• It will develop a culture of empowerment within teams to ensure issues are raised openly, without any retribution. It will also remove the key risk of group thinking and should result in a culture of critical thinking.
• Applying a more sensitive or structured approach to operational processes can make the transition smoother by creating awareness of and adjustments to the impacts of the change. Thereby enabling an efficient, cost-effective, and less disruptive process for the energy transition.
• Policy-making leadership will be more openly involved in the energy transition process, as they will be required to openly see the consequences of the decision-making process via the Gemba walk process.

So what does this all mean for the energy transition?

STO is a HRO concept that highlights the need for high reliability and seamless integration within any operational modification. It emphasizes a culture that focuses on continuous observation of operational processes, the early detection of trends (positive or negative), and the incorporation of design solutions to enhance the reliability or efficiency of the process. The implementation of STO concepts in the energy transition will also result in a better customer experience. The concepts will ensure efficiency, but more importantly, they will focus on reliability, cost-effectiveness, and further sustainability. Therefore, it's another essential HRO tool for policymakers and the energy sector to deploy to keep reliable and resilient operations throughout the transition. It will also ensure a culture of critical thinking is implemented instead of a culture that thrives on the psychological safety of group thinking.