How do organizational structures impact operational safety? Part 1 - Understanding the dangers of decentralization

Abstract

This paper (Part 1) is about the influence of organizational structures on the way major accident risks are managed. It discusses how decentralization, meaning the dispersion of decision-making autonomy within the company, undermines operational safety. A case study is presented, and three real situations experienced by an oil and gas company are described, revealing how the decentralized structure contributed to the negative outcomes observed in each case. The examples demonstrate the need for an operational safety structure with a higher degree of centralization and a greater independence from business pressures. Then, in a separate paper (Part 2) following on from this discussion, the authors propose a design strategy to strengthen the operational safety function. In the suggested structure, a more centralized and independent control of risks is achieved, without losing the ability to quickly identify and effectively address the safety issues at the asset level. Show more