High Reliability Organizations – Learning from and Applying US Nuclear Navy Extreme Operational Excellence Principles in the Oil and Gas Industry

High Reliability Organizations (HROs) are organizations which succeed in avoiding catastrophes in an environment where normal accidents can be expected, due to risk factors and complexity. Companies who have worked to systematically implement US Nuclear Navy HRO principles of Extreme Operational Excellence (OE) have developed a vibrant culture of process and personal safety, environmental stewardship, and top tier performance.

An HRO model will be presented, which can be used to support companies in transitioning towards becoming an HRO. Aspects of this model include Leadership, Culture and OE Management Systems along with critical keys to success: establishing leadership accountability; using risk management techniques to “Filter and Focus” on the critical few safeguards that prevent high consequence events; understanding performance variability and how to build error-tolerant systems; understanding critical safeguard assurance; and finally, how to nurture a culture of organizational learning and create high velocity learning teams.

This paper provides the co-author’s experience in capturing and applying actionable Lessons Learned from the US Nuclear Navy, working with Oil and Gas clients, and from extensive experience working at multi-national energy companies (Chevron, Cheniere) in executive OE positions. Application of the HRO model should enable other companies to accelerate their own OE journey.