Our Nuclear Brand of Leadership. Richard T. Purcell Senior Vice President Industry Performance Improvement Institute of Nuclear Power Operations

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1 Our Nuclear Brand of Leadership Richard T. Purcell Senior Vice President Industry Performance Improvement Institute of Nuclear Power Operations

2 Why Is Nuclear Power Different? Decay heat Radioactivity Core energy Potentially broad reaching regional impact

3 An Industry Challenged Plants cancelled Billions lost Trust eroded

4 Mission To promote the highest levels of safety and reliability to promote excellence in the operation of commercial nuclear power plants.

5 INPO Performance Indicator Index March PI Index

6 Unit Capability Factor (WANO) Month Cycle Median Values March Goal

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8 Industry Scram Trend Auto vs. Manual Auto Total Scrams Manual

9 No. of Scrams Air-Operated Valve (AOV) Related Scrams

10 Our Nuclear Brand of Leadership

11 Managing the Unexpected Karl Weick & Kathleen Sutcliffe

12 Our Nuclear Brand of Leadership

13 Our Nuclear Brand of Leadership Key Attributes Safety Culture Engagement Technical Conscience Cultural Leadership Continuous Learning from Operating Experience

14 Our Nuclear Brand of Leadership Key Attributes Safety Culture Engagement Technical Conscience Cultural Leadership Continuous Learning from Operating Experience

15 Safety Culture Definition 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.

16 Our Nuclear Brand of Leadership Key Attributes Safety Culture Engagement Technical Conscience Cultural Leadership Continuous Learning from Operating Experience

17 The Challenger Launch Decision Diane Vaughan Friendly Fire Scott A. Snook

18 INPO SOER 10-2 Engaged, Thinking Organizations

19 Our Nuclear Brand of Leadership Key Attributes Safety Culture Engagement Technical Conscience Cultural Leadership Continuous Learning from Operating Experience

20 Technical Conscience Key Principles 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

21 Our Nuclear Brand of Leadership Key Attributes Safety Culture Engagement Technical Conscience Cultural Leadership Continuous Learning from Operating Experience

22 Assessment Trends over 10 years 1 1 (20 percent) (34 cases) (2 cases) 2 2 (65 percent) 3 3 (15 percent) 4 (100 percent)

23 First Case-Return to Excellence Leadership typically strong and stable Equipment programs typically sound 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

24 Other Cases Stay at 2 or drop 1 Characteristics Often several related AFIs, unsat SOERs Often problems in CAP and training Equipment reliability sometimes eroded by reduced capital investment 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

25 Mechanisms that Leaders Use Dr. Ed Schein 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

26 Our Nuclear Brand of Leadership Key Attributes Safety Culture Engagement Technical Conscience Cultural Leadership Continuous Learning from Operating Experience

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28 U.S. Industry Fukushima Response

29 Our Nuclear Brand of Leadership Richard T. Purcell Senior Vice President Industry Performance Improvement Institute of Nuclear Power Operations