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Case Study 14: Gospels of Failure: The reports on three high-profile disasters offer rich lessons in why organizations fail -- and how not to.

Excerpt:

Here's a riddle. What is the only business book ever to spend more than 19 weeks on the New York Times best-seller list, sell more than a million copies, and be nominated for the prestigious National Book Award?

Give up? It's The 9/11 Commission Report , which is shaping up to become the surprise hit of the last year. It's a trick question, granted: The 9/11 study isn't a traditional business book; at least, it's not the overhyped, how-to, warmed-over fluff that all too often dominates the genre. But the commission's report is a careful analysis of flawed organizations, and of the devastating effects of siloed cultures and ineffective management.

We live and work in a world where organizational failure is endemic -- but where frank, comprehensive dissections of those failures are still woefully infrequent; where success is too easily celebrated and failures are too quickly forgotten; where short-term earnings and publicity concerns block us from confronting -- much less, learning from -- our stumbles and our blunders.

Now we have an opportunity to buck the tide -- in the form of three brutally honest anatomies of catastrophe, none of them directly from the business world, published in the last year and a half. The 9/11 Commission's gripping book, the Columbia Accident Investigation Board's thorough report of the space-shuttle tragedy, and the New York Times ' reflective account of the scandal involving the fabrications by reporter Jayson Blair are windows on our own organizations' vulnerabilities. With the glaring clarity of hindsight, all of these tragedies are striking reminders that while individuals can be quite adept at picking up on hints of failure in the making, organizations typically fail to process and act on their warnings.

Reacting to those weak signals -- to the information trapped within the system -- may or may not have prevented these catastrophes. Indeed, we cannot begin to sift through every cause that led to what are unthinkable disasters. But each report stresses one of three factors -- imagination, culture, or communication -- as the greatest culprit in ignoring, trapping, or suppressing crucial warning signs. These were the factors that made the blinking red signals so hard to see.

Culture -- Disturbing the Perfect Place

The National Aeronautics and Space Administration (NASA) spent the 1960s, quite literally, shooting for the moon. The seemingly impossible successes it achieved during the Apollo era made it a symbol of human accomplishment, establishing a remarkable "can do" culture. But even as the mission of NASA changed, and its goals shifted from man-on-the-moon triumphs to routine shuttle operations, the early glories held fast. NASA had become a "perfect place," wrote Yale professor Garry Brewer back in 1989. In such cultures, he wrote, the ability to listen to dissent requires "the shock of heavy cannon."

Somehow, even the Challenger disaster of 1986 was not heavy enough. Then, early on the morning of February 1, 2003, the Columbia shuttle exploded over the piney woods of East Texas. The physical cause for the accident may have been a piece of foam debris that struck the shuttle's left wing just seconds after launch, but that wasn't the only problem. "In our view," writes the Columbia Accident Investigation Board (CAIB) in its report, "the NASA organizational culture had as much to do with this accident as the foam".

NASA, in a nutshell, remained conditioned by its past success. Even after Challenger , the CAIB authors write, NASA suffered from the symptoms of the perfect place. Its decision making was still marked by unwarranted optimism and overconfidence. NASA was still a place where lessons-learned programs were voluntary, where frontline engineers feared ridicule for expressing their concerns, where, writes the CAIB, "the intellectual curiosity and skepticism that a solid safety culture requires was almost entirely absent."

How do we eliminate perfect-place arrogance in our own organizations? First, don't be straitjacketed by traditional perspectives. After the foam strike was discovered, engineers called it almost an "in family" event. This meant it was treated in the same way as well-known, traditionally "accepted" risks and therefore was wrongly written off as posing no harm. Although top shuttle management quickly dismissed the threat, lower-level engineers were concerned and asked for better photos in order to more accurately assess the damage. Though they tried three different bureaucratic channels, all of their requests were denied.

"Take your labels lightly, don't hold them dogmatically," says Karl Weick, who has studied high-risk organizations extensively. In addition to the in-family label, Weick notes, NASA had long thought of the shuttle as being "operational" when it had really never left the experimental phase. "Once you attach that kind of label to it, you seal yourself off from any likelihood that you're going to learn anything."

NASA's perfect-place culture also led to a warped outlook on safety. After the engineers' requests for photos were denied because there was no "requirement" for them, they found themselves "in the unusual position of having to prove that the situation was unsafe," write the CAIB authors, "a reversal of the usual requirement that a situation is safe." This may sound like mere semantics, but it meant NASA exhibited an overconfident, prove-it-wrong attitude rather than one that demanded engineers prove it right.

To help break down such attitudes, Weick suggests a similar semantic reversal. By restating a close call as a near hit, you turn the event on its head. You almost failed, rather than barely succeeded. It's simple, but it can be a great reminder that the system is all too capable of big mistakes. "In general, it just breeds a kind of wariness, a kind of attentiveness," says Weick. "Complacence is what you're worried about."

So does all this mean we don't shoot for the moon? That we dwell on our failures rather than taking pride in our triumphs? Not at all. But there's a fine line to walk between a proud culture and a prideful one, between celebrating a healthy history of success and resting on your laurels.

Copyright © 2004 | Culture Care Technologies | Updated March 24, 2010
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