Dave Farr

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Dave Farr Director, Plant Evaluations and
Organizational Systems INPO
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Nuclear Generator Supplier 2006 Executive
Summit
Leadership and the Nuclear Industry
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Presentation Objectives
Nuclear Generator Supplier 2006 Executive
Summit

• Summarize U. S. Industry Performance
• Overview INPO Assessment Results (1990 to 2005)
• Review the characteristics of excellent plant
  performance
• Discuss status of INPO work on situational
  leadership and the leadership behaviors important
  to achieving and sustaining excellent performance

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U.S. Industry Performance Summary (As of March
31, 2006)
Nuclear Generator Supplier 2006 Executive
Summit

• Declining indicators from previous quarter
  results
• Fuel Defects

• Improving indicators from previous quarter
  results
• PWR radiation exposure
• BWR radiation exposure
• Forced Loss Rate

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INPO Performance Indicator Index
Nuclear Generator Supplier 2006 Executive
Summit
Slight Decline since 2002
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Unit Capability Factor
Nuclear Generator Supplier 2006 Executive
Summit
Essentially flat since 2000
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Unplanned Capability Loss Factor
Nuclear Generator Supplier 2006 Executive
Summit
Essentially flat since 2000
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Unplanned Automatic Scrams
Nuclear Generator Supplier 2006 Executive
Summit
Generally good performance since 2000
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Safety System PerformancePercentage of Systems
Achieving 2010 Industry Goal
Nuclear Generator Supplier 2006 Executive
Summit
High reliability levels being maintained
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Fuel ReliabilityPercentage of Units Reporting
Zero Failures
Nuclear Generator Supplier 2006 Executive
Summit
Notable Decline
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INPO Significant Events
Nuclear Generator Supplier 2006 Executive
Summit
Stable performance since 2000
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Contributions to Performance
Nuclear Generator Supplier 2006 Executive
Summit

• Equipment performance has declined
• Grid and switchyard problems are challenging
  operations
• Non-station personnel are contributing to events
• Training problems attributed to weak management
  ownership
• Senior managers are less focused on operations

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Performance Trends (The take-away)
Nuclear Generator Supplier 2006 Executive
Summit

• Industry performance has remained essentially
  flat through the decade
• However, a high level of performance is being
  maintained.
• But good enough never is!
• We must guard against the biggest enemy
  complacency!
• So, what are the INPO assessment numbers showing?

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Nuclear Generator Supplier 2006 Executive
Summit
(Private)
Plant Assessments
1990
1995
2005
2000
As ofSeptember
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Nuclear Generator Supplier 2006 Executive
Summit
Plant Assessments

• Characteristics of Category 1 plants
• Strong leadership
• Self-critical, complacency never tolerated
• Operationally focused
• Exceptional equipment performance
• Training used to improve performance
• Characteristics of Category 3 4 plants
• Leaders not setting high standards
• Weak self-critical attitude
• Weak day-to-day operations
• Broad equipment problems
• Deficient fundamental knowledge and skills
• Conclusions
• Number of plants in the 1 and 2 categories
  has remained relatively constant over time
• Complacency is Category 1 plants biggest enemy
• Only one single site operator is in Category 1
• One-half of the plants in the 3 4 categories
  have been there for extended periods of time

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Nuclear Generator Supplier 2006 Executive
Summit
How is INPO Addressing this?
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Charting the Course to Organizational Excellence
Nuclear Generator Supplier 2006 Executive
Summit

• Key strategy in 2006-2010 INPO Business Plan
• Objective
• Improve performance of chronically low performing
  plants
• Improve INPOs expertise in organizational
  effectiveness
• Improve INPOs effectiveness
• Improve performance of member nuclear plants

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Approach 2006-2008
Nuclear Generator Supplier 2006 Executive
Summit

• Define leadership behaviors associated with
  creating and sustaining high performing
  organizations
• Share with industry and obtain diverse input from
  the academic and organizational development
  consultant community
• Model behaviors internally to improve INPO
  performance
• Influence industry through integration into INPO
  Cornerstone activities

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What we Have Done
Nuclear Generator Supplier 2006 Executive
Summit

• Reviewed and Analyzed last 24 Months of OR AFIs
  and Strengths from Plant Evaluations
• Reviewed academic literature for high performing
  organizations and summarized key points
• Held expert panel of industry leaders,
  university professors, management consultants,
  and INPO personnel to explore leadership
  behaviors needed to improve organizational
  performance

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Expert Panel Learning
Nuclear Generator Supplier 2006 Executive
Summit

• Defined Attributes of High Performing
  Organizations
• Leadership
• Engaged Work-Force (People)
• Values
• Directions
• Accountability
• Organizational Processes/Structures

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Expert Panel Learning
Nuclear Generator Supplier 2006 Executive
Summit

• For each attribute, observable leadership
  behaviors were developed
• These behaviors were further refined for
  different organizational stages on the journey to
  excellence
• What does that look like?

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Nuclear Generator Supplier 2006 Executive
Summit
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Base Camp vs. The Summit(a few observable
behaviors)
Nuclear Generator Supplier 2006 Executive
Summit

• Approach to base camp
• Requires strong leadership
• Management led
• Focus on fundamentals
• Reinforce the basics
• Dependent on oversight
• Guard against becoming overwhelmed
• Accountable to the boss
• Brute force to make things work
• Motivated to avoid pain
• Searching for light at end of tunnel
• Reward fundamental behaviors
• Focus on the next steps

• Approach to excellence
• Effective teamwork, mgmt engaged
• Team led
• Focus on cross-functionals
• Continuous learning
• Self-critical line leadership
• Guard against complacency
• Accountable to each other
• Effective processes
• Motivated by achievement
• Redefining excellence
• Reward excellence behaviors
• Focus on vision of end state

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Preliminary Findings
Nuclear Generator Supplier 2006 Executive
Summit
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Preliminary Findings
Nuclear Generator Supplier 2006 Executive
Summit
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Preliminary Findings
Nuclear Generator Supplier 2006 Executive
Summit
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Preliminary Findings
Nuclear Generator Supplier 2006 Executive
Summit
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Preliminary Findings
Nuclear Generator Supplier 2006 Executive
Summit
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Preliminary Findings
Nuclear Generator Supplier 2006 Executive
Summit
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Preliminary Findings
Nuclear Generator Supplier 2006 Executive
Summit
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Next Steps
Nuclear Generator Supplier 2006 Executive
Summit

• Develop Leadership Behaviors that Create and
  Sustain High Performance document
• Conduct industry seminars to review and obtain
  additional input
• Train Team Managers to bring additional expertise
  to plant evaluations
• Conduct pilot assistance visits
• Identify internal INPO gaps and implement
  specific actions to improve INPOs organizational
  effectiveness
• Identify specific improvements to plant
  assistance to accelerate improvements at
  chronically low performing plants

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Questions? Comments?
Nuclear Generator Supplier 2006 Executive
Summit
Inputs?