Engineering as Technical Conscience and Advocate

1. Engineering as Technical Conscience and Advocate CMBG June 21, 2010 Presented by: Mike Hayes

2. Background – Technical Conscience • An industry meeting held on July 28 and 29, 2009 with representation from the NRC, INPO, Westinghouse, Enercon, Sargent & Lundy, and 17 US and Canadian utilities. • The attendee mix was mostly very experienced engineering leaders, but also included Operations, Site Vice President, and Nuclear Fuels. • Outcome of meeting – Developed 5 initial Principles and Attributes of Technical Conscience

3. Technical Conscience - Principle 1 • All Leaders Demonstrate a Commitment to Technical Integrity [Fidelity] - Corporate and site leadership understand, respect, and promote technical integrity [the accuracy of bounding plant technical requirements]. They understand the natural tension between conservative technical positions and the flexibility of operations [operational priorities] and provide a positive environment for issue identification and resolution.

4. Leadership Attributes • A deep personal sense of responsibility to protect safety margins and the accuracy of the plant design and licensing basis. • Clear communication of the reasons for decisions; especially those which are not well understood or received. • Inter-organizational roles and responsibilities that minimize and avoid conflicts of interest and promote a healthy balance between conservative technical positions and operational perspective. • A safe environment to promote the identification of issues and delivery of quality technical products and decisions. • Development of the concepts of technical conscience in employees. • A willingness to change self behaviors and decisions based on feedback from others.

5. Technical Conscience – Principle 2 • Engineering Leaders Develop and Exercise their Technical Authority - Engineering leaders are intrusive with plant technical issues, and understand the basis for engineering recommendations. Engineering leaders use their vested technical authority and exercise a deep personal sense of responsibility to defend issues that compromise plant safety, technical integrity [accuracy], design basis, and design and operating margins.

6. Leadership Attributes • Courage through independence of thought, exercise of vested technical authority, and commitment to the development of quality technical products and decisions. • A deep personal sense of responsibility to protect and adhere to plant design and licensing basis, technical codes and standards, and margins. • Challenge and questioning attitude regarding technical accuracy and potential consequences of decisions for clear understanding, definition, and communication of issues. • High standards and reinforced expectations for the practice of technical conscience in employees. • Individuals prepared for challenges to technical positions.

7. Technical Conscience – Principle 3 • Individuals Identify and Communicate Technical Concerns and Promote Resolution - Individuals identify trends and emerging technical issues, communicate concerns, advise management, and proactively promote the resolution of conditions that affect safety, design and plant performance.

8. Individual Contributor Attributes • Technical accuracy, design and licensing basis, and safety margins are subject to continuous scrutiny. • Potential problems are understood, clearly defined, and promptly communicated for action. • The potential consequences and options for technical issues are thoroughly evaluated and communicated to management as information becomes available. • Corrective action plans are developed and periodically evaluated to ensure successful outcomes.

9. Technical Conscience – Principle 4 • Technical Staff Adhere to Sound Engineering Principles & Judgment - Individuals develop high quality technical products & decisions by using appropriate engineering practices, critical challenge, operating experience, and working within their area of expertise and knowledge. The potential consequences and risks associated with actions, products, and decisions are thoroughly evaluated and clearly understood.

10. Individual Contributor Attributes • Diverse and factual information used to develop technical products, recommendations, and decisions. • The basis for technical products, recommendations, and decisions are thoroughly documented and include transparent communication of assumptions, judgment, non-conservative positions, and potential risks. • Outcomes are timely and based on well-supported information with full consideration of risks and consequences to avoid unintended results. • Causes for issues are pursued using systematic and thorough methods. • Individuals granted technical authority maintain expert knowledge of plant design, operating requirements, and industry codes and standards. • Individuals granted technical authority demonstrate accountability.

11. Technical Conscience – Principle 5 • Technical Staff are Willing to Stand Firm When Needed - Using best available information, engineering judgment, and /or facts engineers are willing to draw the line and stand firm to prevent compromising the plant safety, design basis, and design margins. Engineers advocate for positions which will preserve and recover operating margins and that support reliable equipment performance. In cases of disagreement, engineers are willing to listen to others, yet ensure their position is communicated and understood.

12. Individual Contributor Attributes • A deep personal commitment and obligation to defend the accuracy of bounding plant technical requirements and margins. • Advocacy for positions based on technical facts verses opinions or emotion • Transparent communication of assumptions, judgment, and non-conservative positions. • Confidence, courage, and integrity when standing firm and advocating for their positions. • Understanding and acceptance of management technical decisions that are based on facts and an understanding for potential consequences.

13. Culture Change Developed Training Materials (including definition) based on the draft Technical Conscience Principles Pilot Training (with Eng Managers) held at Dresden on January 22, 2010. Four different sites participated, along with an outside utility observer. Improvements were incorporated into training and feedback from SVP’s was to develop a separate Senior Leadership Team presentation and present prior to Engineering Manager training 13

14. Senior Leadership Team One hour presentation at site for SVP, Plant Manager, and their direct reports. Objectives: Understanding of the Technical Conscience Principles What they should expect from our Engineering Leaders What’s in it for Them Their Role in Making us Successful Presenter uses own experiences / examples to personalize good and not good SLT support 14

15. Engineering Manager and Directors Training Training on site for all Engineering Directors, Managers, and Supervisors (including Rx Eng, CMO, and Procurement ). Agenda/Objectives: Understanding of the Technical Conscience Principles Homework Assignment / One-on-one Exercise Case Study reviews and report outs Summary / Take Away Points Presenter includes personal experiences / examples of good and not good support for different principles Participants identify personal Technical Conscience behavior gaps and include in 2010 personal development goals 15

16. Engineers Training in development Expected Objectives / Agenda: Understanding of the Technical Conscience Principles What they should expect from our Engineering Leaders What they should expect from our Senior Leadership Team What we expect from them to successfully implement the Principles Homework, Exercises, and Case Studies Target all training to be presented to site CRC’s and completed by end of 4th quarter 2010 16

17. How We Will Monitor Our Performance In development Dedicated one full day of recent Engineering Peer Group meeting to identifying what good looks like for each of the 5 Principles. Draft criteria includes: FMS categories Use of existing Performance Indicators New CFAM Indicator window Assessment observation criteria Assessment interview questions Plant Manager & SVP viewpoint observation criteria Plant Manager & SVP viewpoint interview questions Scheduled to finalize draft criteria by June 30, 2010 Planning fleet-wide assessment in 2011 17

18. What We Have Learned So Far Our Engineering Leaders are not good salespeople - The structure and presentation of a remotely controversial technical recommendation is weak at best. We need a lot more training in this area. Too many gaps in the identification, communication, and proper resolution of issues – The most significant examples almost always had a breakdown in this Principle. This is a focus area for corporate oversight in 2010. The Senior Leadership Team and Engineering Leaders do not put themselves in each other’s shoes – The face-to-face exercise really helped to reveal and close this gap. We will need to expand on this. The population for this training might need to be expanded – Feedback from Site Directors and Managers identified Shift Managers, RP, and Chemistry managers could benefit from training in these Principles. Overall, very positive feedback on this training – The face-to-face exercise, personal examples, and case studies are impactful. The 2010 goals and performance will be the ultimate measure. 18

19. Summary • Strong industry need and support to define and put actions into place to ensure we develop strong Technical Conscience for today and the future. • Technical Conscience is a key to Engineering Leadership Development Plan • The Principles of Technical Conscience have been defined and future changes will be refinement • We need to move forward to implementation our plan and achieve our goal • Ensuring nuclear safety by developing the Technical Conscience in our people and organizations, both today and tomorrow to ensure we are rigorously driving to the correct technical solutions and taking a stand when necessary.