So this is a more difficult question, but I think of one scenario in my life as a kind of an enterprise risk manager working as an employee of a company that had a very serious problem with some failures in technology.
This is a company that operated coin exchange kiosks around the country. And when I was brought on, they were experiencing very high rates of loss nationally that historically had been attributed to internal theft thinking that they had transport employees that were stealing from them.
And to the extent that they were sending investigators out, spending lots of money on time and travel, meals and interviewing employees that were associated with locations that are experiencing high volumes of loss.
In some cases, employees were confessing to just totally de minimis loss amounts. Yeah, I took 20 bucks, loose change that fell on the transport truck and gave it to my kids so they could buy bubble gum. They would get confessions like that and spending thousands of dollars to do an investigation to get a $50 admission.
So I started looking at this from a technical technology perspective and saying, this is a machine and machines can fail.
One of my favorite stories growing up is the story of the Christmas ham. Have you heard of that?
The Christmas ham story goes like this:
Mom's making the Christmas ham.
Mom's making Christmas ham and little Janie comes into the kitchen and sees that Ma has brought out a hacksaw and it's carving the end bone off the ham before she puts it in the oven.
Little Janie says, "Mom, why are you carving the bone off the ham?" And she says, "Well that's cause what my mom, your grandma used to always do every year at Christmas. So that's what I do.
So let's go ask her why she did it." So they go find grandma in the dining room sitting at the table, chatting. "Grandma, how come you used to cut the bone off for Christmas ham every year?" And she says, "Well that's because my mom, your great grandma used to always do that. So I did it.".
So they go in to great grandma who's 95 years old and passed out with a scotch in the rocker in the living room by the fireplace. They wake her up and say, "Great grandma, why did you used to cut the end bone off the Christmas ham every year?" "Well, we homesteading there in Oklahoma and all we had was this wood burning stove and the ham wouldn't fit. So I had to send Johnny out to the barn and get the saw to carve that bone off so I could fit it in the stove."
So the moral of the story is you need to ask why in order to figure out what's really going on.
And my grandfather was a big influence on me.
He used to say, "You need to ask why five times and you'll get to the truth."
So I started asking myself and asking people about why is it that we're losing money in these machines and is there a mechanical reason why that could be happening?
So one day the lead technician for the company happened to be in the office. He was the guy that trained people all over the country and he happened to be in town and I went up to him and I said, "Is there a component on this machine that could break and if it broke would cause the machine to count the coin but not collect it, in other words, reject it and send it back to the customer?" He said, "Sure. There is...".
There is a device called a, anyway, there was a piston in the kiosk that sat behind the sensor that measured whether or not a coin was legitimate. And if that sensor identified a coin as being good, it would trigger the piston to shoot the coin into the acceptance barrel. But if that piston failed when the sensor told it to kick, the coin would be returned to the customer.
And this was a device, solenoid is the word I'm looking for, so exchange the word piston for solenoid. So if this solenoid failed, the coins that were counted as good coin by the sensor would be returned to the customer. The machine would pay off like a slot machine effectively over time as the solenoid would progressively fail further and further.
So with that one question of trying to ask why could this be happening, the guy answered a mystery that saved the company almost a million dollars a year in the years to come.
Because I took that information and implemented a program to monitor for every kiosk in the network, failures associated with certain denominations of coin that we could monitor progressively the number of shortages associated with every denomination in every bin that was counted.
And we got to the point where we could predict that that solenoid was about to fail in a kiosk and replace it. So we replaced a loss prevention problem with a prevented maintenance solution and saved the company $1 million a year.