Case Name :      Ontario Ministry of Small Business & Consumer Services: Managing the Toronto Propane Explosion (C)

Authors :           Explosion (A) Jean-Louis Schaan, Ken Mark

Source :             Ivey Publishing

Case ID :            910M34

Discipline :        General Management

Case Length :    02 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

In August 2008, there was a large explosion at a propane facility located in Toronto, Ontario. The Technical Safety and Standards Authority (TSSA) was a not-for-profit corporation that was responsible for the delivery of regulatory services and ensuring technical safety, and fell under the supervision of the Ministry of Small Business and Consumer Services (the Ministry). After the explosion, with the TSSA facing intense public and political scrutiny, the Ministry requested that the TSSA perform audits at every propane facility in Toronto. The audit results were reported by the media in such a way as to damage TSSA’s reputation. The Ministry then ordered an organizational review of the governance structure of the eight Delegated Administrative Authorities (DAAs) of which the TSSA was one. Determined to act in the best interests of the province, the Ministry subsequently ordered a 30-day Propane Safety Review but needed to make three decisions: 1) select an insider or outsider to lead the panel? 2) should the leader be a prominent figure or technical expert? 3) what is the optimal timing of the review?