Breakout session 2

Risk-Based Thinking

Data Management

Vicki Good & Jim Brown

Continual Improvement & Innovation

Some common techniques for fostering innovative thinking include:

– Visualizing the problem in different ways & from different angles

– Representing thoughts in visuals– Thinking fast and frequently– Trying different combinations– Investigating the opposite side– Thinking beyond what is known– Looking for disconnects– Thinking in teams & building on others’ ideas

Risk Based Thinking & OpportunitiesRisk Based Thinking Risk & Opportunities

Overview

• Clause 6.1 actions to address:

– Risks (negative)

– Opportunities (positive)

• When to consider risk-based thinking:

– New projects/programs

– Routine changes

– Business situations

• Management is accountable

Unacceptable Risk?

As Low as Reasonably Practicable (ALARP)

• Weigh the risk against the trouble, time, and money needed to control it.

• Describes the level to which we expect risks to be controlled.

• For high risk situations need formal decision making techniques (FMEA, etc).

• “How much risk are we willing to accept”

“Proof is in the Pudding”

• Can we demonstrate what process may cause the risk?

• Can we link the project we have built to prevent the risk?

• Have we conducted an analysis of the risks of the new product?

• Have we planned for variation, i.e. the variables that can impact our plan?

• Have the undesired effects been considered?

Proactive: Actively seeking the identification of hazardous conditions through the analysis of the organization’s processes

Reactive: Responds to events that have already happened, such as incidents and accidents

Proactive vs. Reactive

Risk Identification

• Risk Definition: combination of the consequences of an event and the associated likelihood of occurrence.

• Hazard/Risk Identification:

– Customer feedback

– Nonconformance reports

• Incident reports

• Word of mouth

• Surveys

What Can Go Wrong?Hazard Identification

How Often? Frequency Analysis

How Big?Consequence Analysis

So What?Risk Assessment

What Do I Do?Risk Mitigation

1Negligible

2Minor

3Serious

4Major

5Catastrophic

5Frequent 5 10 15 20 25

4Probable 4 8 12 16 20

3Occasional 3 6 9 12 15

2Remote 2 4 6 8 10

1Improbable 1 2 3 4 5

Severity

Pro

ba

bili

ty

Evaluating risk

Risk Assessment

Low 1-4 Medium 5-14 High 15-25

Failure Modes Effects Analysis

• Select the process you want to examine

• Assemble the team

• Define the process steps

• Analyze the failure modes

• Define the actions and outcome measures to prevent the failure

Bowtie Tie Technique

Threat Proactive Barriers Hazard Reactive Barriers Consequence

Summary

• Risk is everywhere, so are opportunities

• Organization must define our risk tolerance

• Organization must proactively manage risk in every location

Data Management

Key Topics/Categories of Data Management

Source: https://www.dama.org

Key ISO Management Principle…

“Factual approach to decision making”

• Effective decisions should be based on the analysis of data and information

• Focus on facilitating information/knowledge sharing

• Focus on Alignment of Goals/Activities

Organizational Knowledge• Internal Sources

– Lessons learned

– Intrinsic staff knowledge

– Subject matter experts

– Intellectual property

• External Sources

– Evidence based literature/benchmarking

– Regulations/standards

– Conferences

– Customer/supplier feedback

Achieving Quality Objectives

• SMART Goals

– Specific

– Measureable

– Attainable

– Realistic

– Time-bound

• Key Performance Indicator (KPI)

• Organizational Balanced Scorecard

Enterprise Scorecard

Leadership Evaluation Manager

Setting Goal Targets

Target set by Sr. Leaders

National Benchmarks

Yes

Yes

No

No

Internal Benchmarks

3 = Defined Target4,5 = Desired progress

1,2 = Unacceptable movement

Ex. Budget, firm org goals, WWTK

3 = Desired comparison4,5 = Attainable progress2= Current performance

1= Unacceptable comparisonEx. PSI-90, Core Measures

3 = Central group of distribution5 = Best performers

2,4= Logical gaps1= Lowest performers

Ex. Internal Satisfaction

SME / Accountability

Team

3 = Desired comparison4,5 = Attainable progress2= Current performance

1= Unacceptable comparison

No

Yes

Yes

How do you capture and use knowledge?

Learn from your experiences, both good and bad: • Project debriefs• Staff meetings• Case/Patient reviews• Examination /Assessment of data such as

Customer/Patient Feedback or established Quality Measures

How do you capture and use knowledge?

Evaluate how you capture and use knowledge in your team/work unit:

• Is there a process? Is it clear and functional? • Is the knowledge maintained and accessible (i.e.,

documented and available)? • Simple audit could be to inquire about recent

failures or successes with one of your processes. • How and what did you learn from these events?• How are you going to help make it more

successful going forward?

Focus on facilitating information/knowledge sharing

Questions