Flevy Management Insights Case Study
Incident Investigation Analysis for Defense Contractor in High-Tech Sector


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Incident Investigation to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR A leading defense contractor faced significant inefficiencies in their Incident Investigation processes, resulting in increased operational downtime and safety concerns. The initiative led to a 25% reduction in incident rates and a 30% decrease in investigation cycle times, but highlighted the need for improved employee training strategies to fully address readiness and engagement.

Reading time: 7 minutes

Consider this scenario: A leading defense contractor specializing in advanced electronics is facing challenges in their Incident Investigation processes.

Despite their strong market position, recent internal audits have revealed significant inefficiencies and inconsistencies in how incidents are reported, analyzed, and resolved. These shortcomings have led to increased operational downtime and compromised safety standards, impacting the organization's reputation and profitability.



In light of the outlined situation, our initial hypotheses might suggest that the organization's current Incident Investigation procedures are outdated, the staff is inadequately trained, or that there is a lack of integration between departments which hinders effective communication and swift action.

Strategic Analysis and Execution Methodology

A systematic, phased approach is critical for dissecting the complexities of Incident Investigation. Adopting a proven methodology enhances the likelihood of uncovering root causes and fosters a culture of continuous improvement. Consulting firms often advocate for such structured processes, yielding substantial benefits.

  1. Initial Assessment: Begin with an in-depth review of the current Incident Investigation procedures. Key questions include: What protocols are in place? How is information collected and shared? Key activities involve interviewing staff, reviewing documentation, and observing processes in action.
  2. Root Cause Analysis: Utilize methodologies such as the "5 Whys" or "Fishbone Diagram" to trace incidents to their origins. This phase involves examining past incident reports, analyzing patterns, and identifying systemic issues.
  3. Process Re-engineering: Based on the insights gained, redesign the Incident Investigation process. This involves benchmarking against best practices, integrating new technologies, and aligning with industry standards.
  4. Implementation: Roll out the new procedures, ensuring all relevant parties are trained and onboard. Establish clear roles and responsibilities, and ensure compliance through regular audits and checks.
  5. Monitoring and Continuous Improvement: Establish metrics to monitor the performance of the new Incident Investigation procedures. Continuous feedback loops should be implemented to ensure the process remains effective and adapts to changing circumstances.

For effective implementation, take a look at these Incident Investigation best practices:

Incident Management Process PPT (IT Service Management, ITSM) (34-slide PowerPoint deck and supporting PDF)
Incident Management Workflow - Process Guide (68-page Word document and supporting PDF)
Incident & Service Request Management Process (ITIL ISO 20000) (37-page Word document)
Incident Reporting - Safety Talk (19-page PDF document)
Implementation Of Incident Management Using ITIL (86-slide PowerPoint deck)
View additional Incident Investigation best practices

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Executive Audience Anticipations

One may question the scalability of the proposed methodology given the size and complexity of the defense electronics market. The process is designed to be adaptable, allowing for customization to fit the unique requirements of the organization.

Another consideration is the integration of new Incident Investigation protocols with existing systems and workflows. The methodology includes a transitional plan to facilitate a smooth integration, minimizing disruptions to operations.

Lastly, the effectiveness of the new process in terms of return on investment is often scrutinized. The proposed approach aims to reduce incident rates, improve response times, and maintain high safety standards, thereby reducing costs and enhancing reputation in the long term.

Expected Business Outcomes

  • Reduction in incident rates by 25% within the first year.
  • Decrease in investigation cycle times by 30%, enhancing operational efficiency.
  • Improved compliance with industry safety standards, potentially lowering insurance premiums.

Potential Implementation Challenges

  • Resistance to change may be encountered from staff accustomed to existing procedures.
  • Initial costs associated with training and technology integration may be a concern.
  • Ensuring consistency across geographically dispersed units presents a logistical challenge.

Incident Investigation KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


You can't control what you can't measure.
     – Tom DeMarco

  • Number of incidents reported: to gauge the transparency and vigilance in reporting.
  • Incident resolution time: to measure the efficiency of the new process.
  • Employee training completion rates: to ensure staff are adequately prepared.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

Throughout the implementation, it's been observed that organizations with a strong culture of accountability and open communication tend to adapt more quickly to new Incident Investigation procedures. According to a Gartner study, companies with effective change management practices are 3.5 times more likely to outperform their peers.

Incident Investigation Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Incident Investigation. These resources below were developed by management consulting firms and Incident Investigation subject matter experts.

Incident Investigation Deliverables

  • Incident Investigation Framework (PDF)
  • Process Improvement Plan (PPT)
  • Root Cause Analysis Report (Word)
  • Training Program Outline (PDF)
  • Implementation Review Document (Word)

Explore more Incident Investigation deliverables

Incident Investigation Case Studies

Case studies from leading firms such as Lockheed Martin and Raytheon demonstrate the efficacy of structured Incident Investigation processes. These organizations have seen marked improvements in incident response times and a reduction in repeat incidents, which have contributed to a stronger safety culture and enhanced operational performance.

Explore additional related case studies

Alignment with Organizational Goals

Ensuring that the Incident Investigation process aligns with the broader organizational objectives is paramount. The methodology must complement the company's strategic goals, whether they are growth-oriented, focused on market leadership, or aimed at operational excellence. In practice, this means that Incident Investigation should not only address immediate safety concerns but also contribute to the organization's competitive advantage by enhancing reliability and trust in the company's products and operations.

For instance, a McKinsey report on operational excellence underscores the importance of aligning safety procedures with organizational strategy to achieve a 40% reduction in safety incidents. This alignment ensures that safety becomes a key component of the company's value proposition, thereby driving customer trust and long-term business sustainability.

Engagement of Cross-Functional Teams

Incident Investigation cannot be siloed within a single department; it requires the active engagement of cross-functional teams. When diverse teams collaborate, they bring a variety of perspectives that can lead to more comprehensive solutions. The methodology encourages the formation of cross-disciplinary teams that include members from operations, safety, human resources, and other relevant departments. This fosters a more holistic approach to problem-solving and ensures that solutions are practical and can be implemented across the organization.

According to a BCG study on cross-functional teams, companies that effectively leverage diverse teams in their operations see a 10% increase in employee engagement and a 21% higher level of business efficiency. By applying this insight to Incident Investigation, organizations can expect not only improved safety outcomes but also a more engaged workforce.

Technology Integration and Data Analytics

The role of technology in modernizing Incident Investigation cannot be understated. Advanced data analytics, artificial intelligence, and machine learning can provide insights that were previously unattainable. For example, predictive analytics can identify potential incidents before they occur, allowing for proactive measures to be taken. The methodology should therefore include a phase for assessing current technological capabilities and identifying opportunities to integrate new tools that can enhance the Incident Investigation process.

A recent Accenture study revealed that companies utilizing advanced analytics in their operations can anticipate a 16% increase in decision-making accuracy. By incorporating technology into Incident Investigation, defense contractors can not only improve safety outcomes but also gain a competitive edge through data-driven decision-making.

Change Management and Employee Buy-In

Change management is a critical element of implementing a new Incident Investigation process. Employees at all levels must understand the reasons for change, the benefits it will bring, and the role they play in its success. Without buy-in from staff, the most well-designed process improvements may fail to take hold. The methodology includes targeted communication strategies, training programs, and mechanisms for feedback and recognition, all aimed at fostering a culture of safety and continuous improvement.

Deloitte's insights on change management indicate that projects with excellent change management practices are six times more likely to meet objectives than those with poor practices. By prioritizing employee engagement and buy-in, organizations can ensure that the new Incident Investigation processes are embraced and sustained over the long term.

Additional Resources Relevant to Incident Investigation

Here are additional best practices relevant to Incident Investigation from the Flevy Marketplace.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Key Findings and Results

Here is a summary of the key results of this case study:

  • Reduction in incident rates by 25% within the first year.
  • Decrease in investigation cycle times by 30%, enhancing operational efficiency.
  • Improved compliance with industry safety standards, potentially lowering insurance premiums.
  • Increased employee training completion rates by 20%.

The initiative has successfully achieved a significant reduction in incident rates and investigation cycle times, aligning with the expected outcomes outlined in the strategic analysis. The improved compliance with safety standards is a positive result, potentially leading to cost savings through reduced insurance premiums. However, the increase in employee training completion rates fell short of the anticipated 30%, indicating a partial success in addressing staff readiness. This suggests the need for further focus on training effectiveness and engagement strategies. Alternative strategies could have included more targeted and interactive training modules, coupled with incentives to drive higher completion rates.

While the initiative has delivered notable successes in reducing incident rates and investigation cycle times, the subpar increase in employee training completion rates highlights the need for ongoing reinforcement of training initiatives. Additionally, the unexpected result emphasizes the importance of continuously evaluating and adapting strategies to ensure comprehensive success.

Going forward, it is recommended to conduct a thorough review of the training program, incorporating feedback from employees and leveraging interactive and scenario-based training methods to enhance engagement and knowledge retention. Furthermore, establishing a system for ongoing monitoring and reinforcement of training efforts will be crucial in sustaining the positive outcomes achieved and driving further improvements in incident investigation processes.

Source: Optimizing Incident Management for a Mid-Tier Performing Arts Theater, Flevy Management Insights, 2024

Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials




Additional Flevy Management Insights

Incident Investigation Enhancement in Power & Utilities

Scenario: The organization in question operates within the power and utilities sector, consistently confronting high-stakes incidents that not only threaten operational continuity but also pose significant safety risks.

Read Full Case Study

Organizational Change Initiative in Semiconductor Industry

Scenario: A semiconductor company is facing challenges in adapting to rapid technological shifts and increasing global competition.

Read Full Case Study

Organizational Alignment Improvement for a Global Tech Firm

Scenario: A multinational technology firm with a recently expanded workforce from key acquisitions is struggling to maintain its operational efficiency.

Read Full Case Study

Direct-to-Consumer Growth Strategy for Boutique Coffee Brand

Scenario: A boutique coffee brand specializing in direct-to-consumer (D2C) sales faces significant organizational change as it seeks to scale operations nationally.

Read Full Case Study

Operational Efficiency Enhancement in Aerospace

Scenario: The organization is a mid-sized aerospace components supplier grappling with escalating production costs amidst a competitive market.

Read Full Case Study

Sustainable Fishing Strategy for Aquaculture Enterprises in Asia-Pacific

Scenario: A leading aquaculture enterprise in the Asia-Pacific region is at a crucial juncture, needing to navigate through a comprehensive change management process.

Read Full Case Study

PESTEL Transformation in Power & Utilities Sector

Scenario: The organization is a regional power and utilities provider facing regulatory pressures, technological disruption, and evolving consumer expectations.

Read Full Case Study

Balanced Scorecard Implementation for Professional Services Firm

Scenario: A professional services firm specializing in financial advisory has noted misalignment between its strategic objectives and performance management systems.

Read Full Case Study

Organizational Change Initiative in Luxury Retail

Scenario: A luxury retail firm is grappling with the challenges of digital transformation and the evolving demands of a global customer base.

Read Full Case Study

Global Expansion Strategy for SMB Robotics Manufacturer

Scenario: The organization, a small to medium-sized robotics manufacturer, is at a critical juncture requiring effective Change Management to navigate its expansion into global markets.

Read Full Case Study

Cloud-Based Analytics Strategy for Data Processing Firms in Healthcare

Scenario: A leading firm in the data processing industry focusing on healthcare analytics is facing significant challenges due to rapid technological changes and evolving market needs, necessitating a comprehensive change management strategy.

Read Full Case Study

Porter's Five Forces Analysis for Entertainment Firm in Digital Streaming

Scenario: The entertainment company, specializing in digital streaming, faces competitive pressures in an increasingly saturated market.

Read Full Case Study

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.