How managers avoid costly worker errors

IN THE WORKPLACE

- REY ELBO

Our factory has clear, well-communicated operating standards. Our workers know them very well. Sometime ago, a worker committed a serious mistake resulting in losses worth millions. Our code of conduct prescribes a maximum one-month suspension without pay, as the owner, with a paternalistic management style, does not want to dismiss anyone. So, the company must absorb the damage and keep the employee on board. How do we prevent this same error from happening again? — Red Falcon.

Except for your paternalistic boss, this scenario sounds uncomfortably familiar. Many organizations fall into the trap of believing that written rules and clarity will prevent worker mistakes. It’s an appealing belief — after all, if the instructions are crystal clear and everyone has signed the acknowledgment form, what could go wrong?

However, policies and clarity are small parts of the productivity net equation. There are a lot more. Human nature, systems design, and company culture all play an equally critical role.

People get tired, distracted, or become overconfident. Systems have gaps that reveal themselves under pressure. And the paternalistic culture — the invisible hand guiding daily behavior — can either encourage vigilance or breed complacency.

SOLUTIONS

With that in mind, here’s how to make sure those expensive mistakes become an important lesson and prevent the same situation from happening again through the following solutions:

One, do a root cause analysis. When a serious mistake happens, the first impulse is to focus on the what: the broken machine, the ruined batch, or the production delay, among others. But the real learning comes from the why.