Management of organizational change

Organizational change – ranging from mergers and acquisitions to shifts in reporting lines to movement of staff and more – is a normal part of business life. For organizations where major hazard risks are present, highly reliable systems must be in place to manage these types of changes in order to ensure the safety of people and property, and protect against potentially devastating incidents and high-value losses.

In the energy and power industry, some organizational changes – for example, changes to minimum staffing levels – are not always analyzed and controlled as thoroughly as engineering and plant operating changes.

Compared to engineering changes, the impacts of organizational change are typically less understood, and the risk assessment processes less robust. In general, organizational changes are made by management in a “top-down” manner, with risk assessments typically carried out after a change is decided and/or in place.

This report aims to help onsite operational teams identify various types of organizational change, and provides practical guidance on how to manage them. It focuses on effectively identifying and managing minimum staffing levels – a key criteria during underwriting assessments by insurers.