You Can’t Live Without It | Granatum Advising

There are many examples in history that demonstrate key information never making it to the top executives, resulting in utter disaster. Perhaps most famous is the known issue with a part called the O-ring in space shuttle Challenger. Before the space vehicle’s launch on January 28, 1986 engineers had tried to raise awareness of the gravity of the faulty part which sealed hot gases from flowing over the exterior of the vehicle. Although all aspects of the disaster are undoubtedly tragic, perhaps the most painful to grasp is that someone knew it was fatal and nothing was done about it. In this example, proper risk assessment was not executed and the proper channels and structure were even available to one of the most well-financed and managed institutions in the US. In an arena where consequences were literally life and death, NASA failed to listen, assess, and address a risk that could have avoided disaster. Albeit an extreme example, the Challenger disaster shows us bluntly the importance of taking risk management seriously.

In an ideal situation, all players, all stakeholders, all employees no matter their area of expertise or rank would have a space to share their concerns with leadership and the collective group. We know a diverse workplace in all regards creates a healthy environment, but leadership that is willing to listen to everyone and everything their employees worry about will ultimately bring greater success. If we address areas of risk in each area of a company, there is no doubt cost saving, but also the saving of quality time that might have been putting out a fire needing emergency attention and funds. The cherry on top is the boost in morale and camaraderie among staff, knowing that their concerns are being heard at the top.

As a risk manager in a US Navy satellite program, I made sure every voice had a chance to tell me what kept them up at night. I asked receptionists, data crunchers, offsite personnel, janitors as well as the most senior engineers and managers the same questions. If they could tell me what worries them, what keeps them from being more successful at work and why, we were well on our way to greater success. By bringing those voices forward and actually considering them key to meeting our requirements and budget we are not only avoiding or mitigating another O-ring situation, we are more likely to be saving money, saving time, and exceeding expectations.