Our Nuclear Brand of Leadership

Richard T. Purcell Senior Vice President – Industry Performance Improvement

Institute of Nuclear Power Operations

• Decay heat

• Radioactivity

• Core energy

• Potentially broad reaching regional impact

Why Is Nuclear Power Different?

• Plants cancelled

• Billions lost

• Trust eroded

An Industry Challenged

Mission

To promote the highest levels of safety

and reliability – to promote excellence – in the operation of commercial nuclear

power plants.

INPO Performance Indicator Index

March 2012

89.0 86.6 87.4 87.7 88.4 87.8 87.4 85.8 84.0 84.3 86.1

82.1 82.2

76.2

70.4 67.0

0

10

20

30

40

50

60

70

80

90

100

2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997

2015 PI Index

Unit Capability Factor (WANO)

18-24 Month Cycle Median Values

March 2012

78.4 80.3 80.7

84.9 85.2 84.6 86.3 88.3

91.2 91.4 91.4 91.4 91.4 92.0 91.4 91.5 91.0 91.3 91.4 91.4 91.1 92.0

0

10

20

30

40

50

60

70

80

90

100

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Goal

Industry Scram Trend

Auto vs. Manual

57 60

46

69

59

45

38 42

36 40

50

42

92 90

73

113

87

65 67 70 71

74 77

62

35 30

27

44

28

20

29 28

35 34

27

20

0

20

40

60

80

100

120

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Auto

Total Scrams

Manual

Air-Operated Valve (AOV)

– Related Scrams

0

1

2

3

4

5

6

7

8

9

10

2006 2007 2008 2009 2010 2011

No

. of

Scra

ms

Our Nuclear Brand of Leadership

Managing the Unexpected Karl Weick & Kathleen Sutcliffe

Our Nuclear Brand of Leadership

• Safety Culture

• Engagement

• Technical Conscience

• Cultural Leadership

• Continuous Learning from Operating Experience

Our Nuclear Brand of Leadership Key Attributes

• Safety Culture

• Engagement

• Technical Conscience

• Cultural Leadership

• Continuous Learning from Operating Experience

Our Nuclear Brand of Leadership Key Attributes

The core values and behaviors resulting from a collective commitment

by leaders and individuals to emphasize safety over competing goals to ensure protection

of people and the environment.

Safety Culture Definition

• Safety Culture

• Engagement

• Technical Conscience

• Cultural Leadership

• Continuous Learning from Operating Experience

Our Nuclear Brand of Leadership Key Attributes

The Challenger Launch Decision Diane Vaughan

Friendly Fire Scott A. Snook

INPO SOER 10-2

Engaged, Thinking Organizations

• Safety Culture

• Engagement

• Technical Conscience

• Cultural Leadership

• Continuous Learning from Operating Experience

Our Nuclear Brand of Leadership Key Attributes

• Leaders respect and reinforce the importance of technical considerations in decision-making

• Engineering leaders accept and exercise technical authority

• Engineers identify, communicate, and advocate resolution of technical concerns

• Engineers adhere to sound engineering principles and judgment

• Engineers challenge conditions and decisions when needed

Technical Conscience Key Principles

• Safety Culture

• Engagement

• Technical Conscience

• Cultural Leadership

• Continuous Learning from Operating Experience

Our Nuclear Brand of Leadership Key Attributes

Assessment Trends over 10 years

1 1 (20 percent)

(34 cases)

2 2 (65 percent)

(2 cases)

3 3 (15 percent)

4 (100 percent)

First Case-Return to Excellence

1 1

2

Characteristics

• Aggressive action at first sign of decline

• Embrace critical feedback-all sources

• Dissatisfaction, not rationalization

• Engagement at all levels

• Training & CAP valued as critical tools

• Genuine focus on Learning Culture

…Leadership typically strong and stable

…Equipment programs typically sound

Other Cases – Stay at 2 or drop

1

2 2

3 3

4

Characteristics

• Leaders slow to recognize and accept

• Rationalize rather than solve

• Reluctant to make decisive changes

• Compare to own past, not industry best

• Sometimes defensive to INPO and others

…Often several related AFIs, unsat SOERs

…Often problems in CAP and training

…Equipment reliability sometimes eroded by reduced capital investment

• Attention, measurement, and control

• Reaction to critical incidents and crises

• Resource allocation

• Deliberate role-modeling, teaching, and coaching

• Rewards and status

• Recruiting, selecting, promoting, and excommunicating

Mechanisms that Leaders Use Dr. Ed Schein

• Safety Culture

• Engagement

• Technical Conscience

• Cultural Leadership

• Continuous Learning from Operating Experience

Our Nuclear Brand of Leadership Key Attributes

U.S. Industry Fukushima Response

Our Nuclear Brand of Leadership

Richard T. Purcell Senior Vice President – Industry Performance Improvement

Institute of Nuclear Power Operations