Intelligent Customer Capability

Organisations operating within high-hazard industries often face a dilemma: how much of their core operations should be carried out in-house, and when should the work be outsourced to third-party contractors? Often, the outsourced work is highly technical, requiring the operating company to place a high degree of trust in the contractor and to receive documentation that they may not be able to comprehend. In the field of process safety, classic examples of these include the range of documentation associated with functional safety, ATEX compliance, or COMAH Safety Reports. Such issues can come to light during difficult times, such as during meetings with regulatory authorities or in the aftermath of adverse events. As such, organisations must carefully consider the consequences of outsourcing their work and balance their need to remain competitive while ensuring compliance with regulations.

What is an intelligent customer and why is this important?

The concept, created by the Office for Nuclear Regulation (ONR), is also used by the UK Health and Safety Executive. They define it as “The capability of the organisation to have a clear understanding and knowledge of the product or service being supplied.” Trends from the industry over the last few decades have shown an increase in “contractorisation”. This upward trend is unlikely to slow down against the backdrop of the fast-paced changes and multi-party projects associated with the energy transition towards a net-zero goal. Therefore, the continued development of an intelligent customer capability is more vital than ever. 

So it is important – what next? 

To start you on your journey, ask yourself the following questions.  1) Do we understand what competencies are required at an organisational level?

When we think of competence, we usually think of it at a single, personal level. However, when it comes to process safety, competencies are required at all organisational levels, making it essential to have a comprehensive understanding of any gaps between the requirements and the organisational competencies that are currently in place.

2) Do we have a clear policy on what activities will be performed in-house versus
contracted out?

Once you understand the gaps in your organisation, you can create policies and guidelines to decide which activities should be done in-house and which should be outsourced. For those activities that are contracted out, you’ll need to have access to experienced professionals who can act as intelligent customers.

3) Will we acquire intelligent customer capability by hiring, upskilling, or partnering with 3rd parties? 

Utilising existing staff is an attractive option, as it allows the organisation to save costs and work with individuals who are already familiar with the company’s culture. Unfortunately, this leaves the organisation exposed to the risks associated with staff turnover, and the process of gaining necessary experience takes longer. Third-party services provide the exact opposite of this situation, with immediate expertise and a prolonged service, but with extra costs and a different organisational culture. For organisations looking for a hybrid approach, 3rd-party services can also be used to mentor and support internal staff, so that any changes brought about by loss of personnel can be effectively managed.

4) How are the current trends in our sector affecting our intelligent customer requirements?

As industries evolve, so too must your customer capability requirements to stay ahead of the curve. The warehousing sector is under greater scrutiny through regulations such as the Control of Major Accident Hazards (COMAH) and the Dangerous Substances and Explosive Atmosphere Regulations (DSEAR). The energy sector is transitioning to the use of Hydrogen and Ammonia while all industries must remain vigilant against the ever-present threat of cyber-attacks.

5) Does our change management process consider organisational changes, including any impact on intelligent customer requirements or capability?

Management of Change (MoC) systems are required to cover both technical and organisational changes. Robust change management systems do not just record the changes, but also authentically assess the impact of the change, implement measures to control additional risks, and metrics to measure success or failure. When changes are of an organisational nature, your systems should assess the impact from the perspective of capability and capacity to maintain intelligent customer status. Answering these questions will help you understand the current state of your organisation and determine what steps need to be taken to confidently demonstrate your intelligent customer capability.  If you would like further information, or to partner with us on matters relating to process safety then please get in touch today.