Striking the Balance: Achieving the Optimal Level of Strategic Safety for Organizations

This is the 4th?article in a series of six about the importance of strategic safety in organizations.?

Article 1 – Strategic safety, a key to business survival

Article 2 – The difference and relation between physical, social, and psychological safety

Article 3 – Are you aware of the current state of your strategic safety??

Article 4 – What level of strategic safety should you strive for?

Article 5 – How to develop, rollout, embed and monitor strategic safety in organizations across different national cultures.

Article 6 – How to adapt strategic safety strategies to changing circumstances.

Strategic management of total safety at the workplace is a key factor for the survival of any organization, society, or community.???

Hence the publication of this article series.?

Sjaak Pappe, co-founder, Coconut Blue | Safe Culture Solutions?

Article 4 -?What level of strategic safety should you strive for?

Subtitle: Striking the Balance: Achieving the Optimal Level of Strategic Safety for Organizations

Context: Why many safety systems fail

When serious accidents, incidents, unethical or unacceptable behavior happen most of the time only procedures, structures, and systems are assessed and adapted where needed. For example, a new protocol is installed, a new training course is rolled-out or a confidant is appointed. However, very often one notices that the unsafe situation doesn’t change or only for a short period of time. How come? My premise is that dealing with the “hardware” factors of safety is found easier than with the “software” of the minds, behavior, attitude, and beliefs of people in an organization. A lot of safety systems, including the ones stating to deal with culture and people’s behavior, are not really used as they should be. Most of the time they are used as checklists and ticking the box is seen as enough. When organizations do focus on people to improve safety most of the time discussion sessions, briefings and training are used. But one forgets that reverting to old behavior is incredibly easy. The circumstances at the workplace aren’t changed when people return. There is too much belief that people will change the circumstances. They won’t because of culture and certainly many leaders have too much on their minds to deal with it consistently. But still many leaders seriously belief that a new protocol or course will help.?

It won’t. People make or break organizations. Nothing else. Of course, EHS managers, confidants and compliance officers, and other leaders involved in safety install new procedures to improve behavior. But when these new factors are not aligned with people’s norms and values, they will fail to make an impact.?

In this series of six articles, I will share with you my experience on how personalities and cultures predominantly impact (un)safe behavior. This 3rd?article is about the importance of measuring the present situation concerning strategic safety.???????????

The safety and well-being of employees is of utmost importance in any organization. While it is essential to create a culture of safety within the workplace, measuring the level of safety is equally important. Measuring the level of safety in an organization provides a valid and reliable means to assess the effectiveness of safety practices and policies. In contrast, relying solely on employee perceptions can be unreliable and subjective. In this article, we will explore why measuring the level of safety in your organization is more valid than working with perceptions.

Introduction:

In today's rapidly evolving business landscape, organizations face a multitude of challenges that can potentially undermine their success. From economic uncertainties to disruptive technologies, the need for strategic safety has become more crucial than ever. But what exactly is the right level of strategic safety that organizations should strive for? Is it a conservative approach that prioritizes stability and risk avoidance, or a more daring, agile mindset that embraces calculated risks? This article delves into the concept of strategic safety and explores the optimal level that organizations should aim for to thrive in an increasingly competitive world.

Understanding Strategic Safety:

Strategic safety refers to an organization's ability to identify, analyze, and mitigate risks and take opportunities in its strategic decision-making process to create conditions for enduring business survival. Survival goals and objectives by the way vary very much per culture. E.g., Japanese business plans tend to look ahead many decades, Chinese even centuries, while American business goals tend to have a three-year horizon. It encompasses both internal and external people and factors, like means and rules, that could impact the organization's ability to achieve future-proofness. But the foundation of strategic safety lies in creating a?safe culture first. This means that leaders and employees stick to the rules for physical safety, adhere to the law and the organization’s ethical standards, and have the freedom to initiate and self-organize innovations, based on e.g., ‘Blue Ocean Strategy’[1]?like ideas, or adequate and quick response to changes. While it is natural for organizations to seek growth, ideally positioned within development, and innovation, neglecting strategic safety can expose them to significant risks that may lead to detrimental consequences. On the other hand, excessive caution can hinder progress and stifle innovation. Striking the right balance is crucial.

The Pitfalls of Insufficient Strategic Safety:

Organizations that neglect or underestimate the importance of strategic safety often find themselves vulnerable to unexpected challenges. Failing to conduct thorough risk assessments and implement appropriate mitigation strategies can result in financial losses, reputational damage, and even operational failures. Moreover, without a solid safety net, organizations are ill-equipped to adapt to dynamic market conditions or seize emerging opportunities, leaving them stagnant and susceptible to competitors.

The Benefits of an Optimal Level of Strategic Safety:

While excessive risk aversion can hinder growth, striving for an optimal level of strategic safety provides numerous advantages. Let's explore some key benefits:

1. Enhancing Decision-Making:?A well-rounded strategic safety approach provides decision-makers with the necessary information and insights to make informed choices. It ensures a comprehensive understanding of risks, opportunities, and potential consequences, enabling leaders to evaluate trade-offs and make calculated decisions that align with the organization's goals.

2. Ensuring Resilience:?By proactively identifying and addressing risks, organizations can build resilience and adaptability into their strategies. This allows them to withstand unexpected disruptions, such as economic downturns, natural disasters, or industry shifts. Resilient organizations are better equipped to recover quickly and maintain stability during turbulent times.

3. Facilitating Innovation:?Strategic safety does not equate to stifling innovation. On the contrary, an optimal level of strategic safety encourages innovation by fostering a culture that embraces calculated risks. By understanding potential pitfalls and managing them effectively, organizations can create an environment where experimentation and creativity can flourish while minimizing the negative impact of failures.

4. Maintaining Stakeholder Trust:?Organizations that prioritize strategic safety demonstrate their commitment to the well-being of their stakeholders. This includes employees, customers, investors, suppliers, and the wider community. By actively managing risks, organizations can maintain trust, protect their reputation, and create stronger relationships with stakeholders who value transparency and responsible decision-making.

Striving for the Optimal Level:

Finding the right level of strategic safety is not a one-size-fits-all approach. It varies depending on the nature of the country’s culture, organization, its industry, and its risk appetite. However, several principles can guide organizations in their pursuit of the optimal level:

1. Robust Risk Assessment:?Conduct comprehensive risk assessments that consider both internal and external factors. This includes analyzing market trends, technological advancements, regulatory changes, potential operational vulnerabilities, and predominantly the risks that lie in the culture of the organization.?

People are the only ‘source’ that organizations have. Culture is about unwritten codes and instructions that teams and whole organizations have developed on how to work, collaborate, and deal with the outside world. They are never written down and therefore only visible in behavior, attitudes, and beliefs of people. But the intentions behind this are seldom to never revealed. But culture can be measured, by using surveys that don’t reveal what you are looking for cultural characteristics can be valid and reliably revealed.?

We have developed SCARA (Safe Culture Analysis and Risk Assessment), a science-based measurement tool to reveal the current safety risks and enablers in the culture, what the ‘safe paradise culture’ is for respondents, as also what is the change readiness.?

Regularly reassess these risks to ensure agility and adaptability.???????

2. Proactive Mitigation Strategies:?Implement proactive measures to mitigate identified risks. This may involve changing the culture, developing contingency plans, diversifying operations, establishing effective crisis management protocols, or investing in appropriate insurance coverage. By addressing risks head-on, organizations can reduce the likelihood and impact of potential disruptions.

3. Cultivating a Culture of Risk Awareness:?Foster a culture where all employees understand the importance of strategic safety and feel empowered to identify and communicate potential risks and opportunities. Encourage open dialogue, cross-functional collaboration, and learning from past experiences to continuously improve risk management practices.

4. Embracing Responsiveness and Agility:?Recognize that the business landscape is ever evolving, and organizations must remain responsive, i.e., quick, adequate, and agile to thrive. This requires a willingness to adapt strategies and embrace calculated risks when warranted. Foster an environment that encourages innovation, experimentation, and learning from failures, while maintaining a strong foundation of strategic safety.

How to embed these principles??

The previous principles should best be embedded in the culture. That starts by organizing several workshops with leadership, key in-/external culture influencers and employee representatives to determine the strategic culture.?

It’s recommended that external consultants or facilitators are involved. This is not a plea for hiring consultants, but it’s very difficult to discuss one’s own culture without a culture measurement and outsider’s view. The reason lies in the fact that a culture is a given and one doesn’t think about it, because people are ‘unconsciously competent’ in dealing with their culture. They are unaware and need an outsider and mirror to understand it.?

Let me illustrate this with an Arab proverb:

‘We don’t know who invented the sea, but we are sure it wasn’t a fish”

The several workshops have the following 4 objectives:

1.?????Given the business goals and 4 principles for strategic safety what behavior, attitude and beliefs do we want to develop in our organization?

2.?????Given the outcome of the current and paradise culture measurement and change readiness what are the gaps between the strategic culture and the current culture?

3.?????Given the outcome of the paradise culture measurement and change readiness what is the emotional gap: where can resistance be expected and where support for change?

4.?????Given the outcome of the two gap analyses what should be the priority of focus areas? Culture change is a steady and gradual process, so starting with changes that require less effort to achieve maximum effect is key. People should experience change quickly. Only then the ‘flywheel’ of change can start turning.?????

Conclusion:

Strategic safety plays a vital role in the long-term success and sustainability of organizations. Striving for the optimal level allows organizations to navigate uncertainties, seize opportunities, and create a resilient framework for growth. By finding the right balance between risk aversion and calculated risk-taking, organizations can establish a culture of strategic safety that drives innovation, enhances decision-making, and maintains stakeholder trust. In today's dynamic business environment, organizations that prioritize strategic safety are best positioned to thrive amidst uncertainty and achieve sustainable success.

In the next article I will write about how to develop, roll-out and implement cultural change.?

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[1]?https://www.blueoceanstrategy.com/what-is-blue-ocean-strategy/