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Monday 15 March 2010

Book: Resilience Engineering

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A book edited by Erik Hollnagel, David D. Woods and Nancy Leveson (and containing chapters by these and many other authors), from 2006, about an improved approach to safety management.

"Resilience Engineering" is a well-integrated collection of quite thorough explorations and analyses of safety management in complex systems, both on the theoretical level as well as in the form of case studies. Even though the title might give an initial impression of the book being focused on technical systems, it is actually quite universally applicable and looks at techno-social systems as wholes, mainly in the form of technologically oriented organizations.

The core idea of "Resilience Engineering" is to move the field of safety management from the kind of design-time analysis that has been expected to produce "demonstrably safe" systems that should be safe within predescribed working conditions but in reality still experience failures due to the unpredictability and complexity of the real world, to the construction of adaptively resilient systems that are actively monitoring and adjusting for dangerous deviations.

Also, the book calls for better accident models that do not view failures as simply breakdowns or deviations of the components from the design specifications, but also as events that may easily arise as occasional unexpected consequences of interactions between otherwise acceptably working parts: "Rather than looking for causes we should look for concurrences, and rather than seeing concurrences as exceptions we should see them as normal and therefore also as inevitable. This may at times lead to the conclusion that even though an accident happened nothing really went wrong, in the sense that nothing happened that was out of the ordinary. Instead it is the concurrence of a number of events, just on the border of the ordinary, that constitutes an explanation of the accident or event."

Additionally, the book notes that even if the theoretical basis for understanding and preventing the majority of failures would be well-developed and widely available (which it isn't), there is still a major practical concern to tackle: safety management incurs an additional cost for the system, and in real life the pressing need for higher efficiency keeps (justifiably) trying to minimize all costs. Therefore, "from a risk management perspective, the key question is how to keep concern for risk alive when things look safe". And this can be particularly difficult due to the effectively working safety measures seeming unnecessary to a superficial observer for the very reason that those measures successfully prevent the failures and leave an impression of a safe environment. Or, as the book puts it: "superficially a safety manager’s job is to handle irony: the core of a good safety culture is a self-defeating prophecy, and a whistle blower’s ultimate achievement is to be wrong". The solution is to create a well-developed and strong safety culture that avoids the erosion of critical safety measures in the endless push for efficiency.

I definitely found the book educative and enjoyable, and would recommend it to anybody who has a deeper interest in safety management and in the adaptivity issues of (complex) systems.

More info about the book at Amazon: http://www.amazon.com/dp/0754649040/

Wednesday 27 May 2009

Book: Go It Alone!

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A book by Bruce Judson, from 2004, freely available on the web ( http://www.brucejudson.com ), that talks about how to start small companies that are not necessarily small in revenues.

When talking and thinking about start-ups (especially in high-tech) it is quite common to assume that large venture capital investments into the company and fast increase in the number of employees are very positive indicators of company's success. However, this book describes an inverted alternative:

  • The business is started with a minimal investment, and the founder or founders retain full ownership and control of the enterprise.
  • The business is run entirely by a small number of people, generally from one to six.
  • The founder does not set out to create a small business. He or she is working from the premise that the business has unlimited revenue potential.

The third point is what distinguishes this approach the most from the common abundant solo entrepreneurs and tiny companies -- in modern world a company that is small by employee count can nevertheless be large by market share (in its specific niche) and cash flow. The main method of achieving it is extreme outsourcing (not to be confused with offshoring) where the majority of company's business activities are conducted externally. This allows the entrepreneur to concentrate on those key areas s/he can do best (and enjoys most) while all the rest is handled cost efficiently by various service providers, preferably using customizable off-the-shelf solutions instead of special orders.

Over time I have skimmed quite a few writings about creating (tech) start-ups (for example, I keep an eye on Paul Graham's essays http://paulgraham.com/articles.html that, at least from the perspective of a computer programmer, are quite a fun reading), but so far it is the "Go It Alone!" that seems to have had the strongest effect on lowering my psychological threshold of starting a company.

The book is available at http://www.brucejudson.com .