Aircraft Maintenance Technology November 2019 - 51
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unit cohesion. In aviation, the commitment to the safety of
passengers, employees, suppliers and communities in which
one operates is a defining value and part of the DNA of any
respectable aviation business and aviation professional. This
foundational commitment to safety should not be subject to
purported cost-benefit, return-on-investment or business case
considerations, especially in the context of cost-cutting initiatives during economic downturns.
2.
Don't be penny wise and pound foolish.
3.
Not all "slack resources" are bad.
As stated above, the
commitment to safety should be part of the DNA of any
aviation business. As a foundational value, it should be
non-negotiable and not fall victim to considerations of financial
optimization. At the same time, it is worthwhile to remember
the old adage, "If you think safety is expensive, try an accident."
Often, investments into a positive safety culture and the corresponding technical, organizational and human resources are
relatively minor. Usually, they are much lower than the direct
and indirect costs - moral, reputational, financial and otherwise - of serious incidents, let alone accidents involving loss
of human life that can result in the need to re-design products
that had been brought to market prematurely without sufficient
consideration of safety-relevant details.
When assessing cost-cutting opportunities, aviation leaders ought to stay clear of
"penny wise and pound foolish" traps and pursue sustainable cost-management strategies. One of the most straightforward and therefore most tempting approaches to cost-cutting is
getting rid of "slack resources." However, before enthusiastically
cutting the apparent excess of a particular resource, aviation
businesses should keep in mind that appropriately calibrated
"slack resources" can enhance organizational resilience and
allow to buffer shocks. As much as one would not operate a
flight without any alternate or contingency fuel, "slack resources"
can provide the extra margin that allows an organization to
get safely through a crisis or unforeseen circumstances. In the
end, the merit of not minimizing fuel reserves to zero and not
reducing resources to the point of incurring single failure modes
should be obvious for any aviation professional.
4.
Do more with more, when appropriate. In the context of navi-
gating safety management challenges during an economic
downturn, protecting "slack resources" can be a necessary, but by no means sufficient, approach to cost management.
Adding to one's cost basis during a downturn certainly seems
counter intuitive. However, in the case of quality and safety
management functions, adding rather than maintaining - let
alone reducing - resources can be a recommended course of
action. After all, tighter financial and operational constraints during a downturn can exacerbate organizational stresses. It should
be no surprise that regulatory authorities often intensify their
monitoring of aviation businesses exactly during these times.
Doing adequate justice to internal organizational dynamics and
stresses and to intensified regulatory supervision can generate significantly higher workloads in the areas of quality and
safety management. Aviation businesses might be well-advised
to increase resourcing of these critical functions during times
of cost-cutting pressures.
5.
Get signaling right. Credible commitment to a positive safety
6.
Be alert to personal stress and duress. In addition to the orga-
culture is as much a function of adequate resourcing as
of effective signaling on the part of a business' leadership team, vis-à-vis its workforce. Getting this right in ordinary
circumstances is not a trivial undertaking in the first place (see
my article "Four Ways to Champion a Positive Safety and Quality
Culture" in the Aircraft Maintenance Technology June/July 2018
issue). In tough economic circumstances characterized by difficult and often painful trade-off decisions, effective signaling
becomes even more important. One of the easiest ways of
negative signaling with respect to the importance of safety is
an undifferentiated approach to cost management. Across-theboard cost-cutting such as a 10 percent reduction of all budget
line items regardless of implications for safety above and beyond
the direct budgets for quality and safety management functions
fails to signal priorities such as protecting an organization's
safety culture. It is likely to send the wrong message.
nizational stresses mentioned above, more often than
not, economic downturns tend to generate significant
personal stress and possibly even duress. Even some of the best
managed aviation businesses end up reducing their workforce
during prolonged economic downturns. And even if a given
aviation business successfully avoids workforce reductions, the
spouses, partners or other family members of its employees
might well be subject to occupational uncertainty and the associated stress at their own workplace. Aviation businesses would
well be advised to watch out for early signs of workforce stress
and duress and adjust their resource base and human factors
programs accordingly.
CONCLUSION
Building and maintaining an effective safety culture is a significant
leadership endeavor in its own right in the best of times. In light
of current general macro-economic and aviation industry-specific
risks, aviation businesses should prepare for a potential downturn. This article suggests six guiding principles for sustaining
an effective safety culture during tough economic times and for
navigating cost management challenges. These six guiding principles are intended to help aviation business leaders to cut costs
where necessary and appropriate without cutting corners.
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Aircraft Maintenance Technology November 2019
Table of Contents for the Digital Edition of Aircraft Maintenance Technology November 2019
2020 Annual Directory
Build the Labor Pool
Maintenance Business in the APAC Region
Supplying the Supply Chain
Six Guiding Principles or Sustaining an Effective Safety Culture During Economic Downturns
Overdue for an Oil Change?
Another Year, Another Decade
Hiring Right for Cultural Fit
Do Your Homework
Ring in the New
Product Showcase
Advertisers' Index
Aircraft Maintenance Technology November 2019 - 1
Aircraft Maintenance Technology November 2019 - 2
Aircraft Maintenance Technology November 2019 - 3
Aircraft Maintenance Technology November 2019 - Another Year, Another Decade
Aircraft Maintenance Technology November 2019 - 5
Aircraft Maintenance Technology November 2019 - 2020 Annual Directory
Aircraft Maintenance Technology November 2019 - 7
Aircraft Maintenance Technology November 2019 - 8
Aircraft Maintenance Technology November 2019 - 9
Aircraft Maintenance Technology November 2019 - 10
Aircraft Maintenance Technology November 2019 - 11
Aircraft Maintenance Technology November 2019 - 12
Aircraft Maintenance Technology November 2019 - 13
Aircraft Maintenance Technology November 2019 - 14
Aircraft Maintenance Technology November 2019 - 15
Aircraft Maintenance Technology November 2019 - 16
Aircraft Maintenance Technology November 2019 - 17
Aircraft Maintenance Technology November 2019 - 18
Aircraft Maintenance Technology November 2019 - 19
Aircraft Maintenance Technology November 2019 - 20
Aircraft Maintenance Technology November 2019 - 21
Aircraft Maintenance Technology November 2019 - 22
Aircraft Maintenance Technology November 2019 - 23
Aircraft Maintenance Technology November 2019 - 24
Aircraft Maintenance Technology November 2019 - 25
Aircraft Maintenance Technology November 2019 - 26
Aircraft Maintenance Technology November 2019 - 27
Aircraft Maintenance Technology November 2019 - 28
Aircraft Maintenance Technology November 2019 - 29
Aircraft Maintenance Technology November 2019 - 30
Aircraft Maintenance Technology November 2019 - 31
Aircraft Maintenance Technology November 2019 - Build the Labor Pool
Aircraft Maintenance Technology November 2019 - 33
Aircraft Maintenance Technology November 2019 - 34
Aircraft Maintenance Technology November 2019 - 35
Aircraft Maintenance Technology November 2019 - 36
Aircraft Maintenance Technology November 2019 - 37
Aircraft Maintenance Technology November 2019 - Hiring Right for Cultural Fit
Aircraft Maintenance Technology November 2019 - 39
Aircraft Maintenance Technology November 2019 - Maintenance Business in the APAC Region
Aircraft Maintenance Technology November 2019 - 41
Aircraft Maintenance Technology November 2019 - 42
Aircraft Maintenance Technology November 2019 - 43
Aircraft Maintenance Technology November 2019 - 44
Aircraft Maintenance Technology November 2019 - 45
Aircraft Maintenance Technology November 2019 - Supplying the Supply Chain
Aircraft Maintenance Technology November 2019 - 47
Aircraft Maintenance Technology November 2019 - 48
Aircraft Maintenance Technology November 2019 - 49
Aircraft Maintenance Technology November 2019 - Six Guiding Principles or Sustaining an Effective Safety Culture During Economic Downturns
Aircraft Maintenance Technology November 2019 - 51
Aircraft Maintenance Technology November 2019 - Do Your Homework
Aircraft Maintenance Technology November 2019 - Overdue for an Oil Change?
Aircraft Maintenance Technology November 2019 - Product Showcase
Aircraft Maintenance Technology November 2019 - 55
Aircraft Maintenance Technology November 2019 - 56
Aircraft Maintenance Technology November 2019 - Advertisers' Index
Aircraft Maintenance Technology November 2019 - Ring in the New
Aircraft Maintenance Technology November 2019 - 59
Aircraft Maintenance Technology November 2019 - 60
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