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Safety Improvement with a leadership focus
Greg Lazzaro
AHRI – Safety Presentation
4th August 2009
Introduction



      Safety Improvement

      Employee Engagement &
      Culture Change.

      Personal experience firstly in
      operational roles and now at GM
      level with an ASX 200 company.

      Discuss Safety Leadership and
      how to engage and influence the
      culture using safety as a lever.




                                         2
Summary of topics


  Safety Leadership – what does this mean in business change management context ?

  Safety Improvement – How do we take business forward in this area ?

  Safety Culture – Identifying, Influencing and changing safety culture ?

      Practical mechanisms to change perceptions of risk ?

  Turning risks to opportunities by leading safety change ?

      People – how do we engage our people to believe in safety ?




                                                                                    3
1. Safety Leadership


   Safety leaders are identified as passionate and visible.

   “Leadership is the process of influence in which one person can enlist the aid and
   support of others in the accomplishment of a common task”.



       Managers administer; leaders innovate.                   Managers do things right; leaders do the right things.



      Managers maintain; leaders develop.               Managers rely on control; leaders inspire trust.



             Managers imitate; leaders originate.              Management involves power by position. Leadership
                                                               involves power by influence.


                      Managers ask how and when; leaders ask
                      what and why




                                                                                                                         4
Safety Leadership

 Case Study – Safety Awareness Change Process
 (Orica business)

 Change process initiated by leader of the site – Site Manager

 Resultant culture change took about 12 months – 18 months (realistic)

              Site             Site Mgr             Shift
          discussions        discussions          Supervisor
            (year 1)
              1024               450            25% residual

 Site management were convinced in the program ~ 6 month mark

 Systems improved as the discipline in safety heightened

 KEY Points for change

 Needs key leadership sponsor – e.g. Site Manager to lead role

 Needs realistic timelines and clear objectives

 Communication of outcomes at local levels and in management
 forums


                        LTI FR         LTI FR                            LTI Free days >500
                         2.4            <1.0
                                                                                              5
Safety Leadership


Learning's on success




   Need to understand the current safety climate in the workplace - Engagement


   Develop a high level plan as to what it is the workplace desires to achieve in a given
   time – Plan

   Work on targeting the areas where there are identified deficiencies - Execute

   Measurement of progress to plan and celebration of success - Measure




                                                                                            6
Safety Leadership


 Practical Safety leadership comprises of:



 Engagement of the workforce

 Discovering and empowering enablers

 Safety Leader to be seen as the facilitator

 Encourage the celebration of success




                                               7
2. Safety Improvements


   What is Safety improvement within a workplace?

   Experience has shown that it is not based solely on traditional key performance
   indicators (LTIFR, TRCFR etc..) but a combination of heightened sophistication in the
   activity that is demonstrated and heightened awareness of risk and management of
   the reduction of exposures at the activity level.

   How do we measure this?

   Usually when things go wrong, we can narrow it to an event. Therefore focus at the
   event level is key.

   In the following example, the mechanism of risk was devised by the engineering team at the site
   along with the operations staff.




                                                                                                     8
Example of High Pressure activity


                                                         Cleaning of a heat exchanger

                                                         Once a month activity

                                                         High pressure water cleaning activity

                                                         Previous manual cleaning using lance

                                                         Ejection of plastic particles were hazards

                                                         Equipment was not ideal

                                                         Solution

                                                         Manual hydraulic ram was engineered and
                                                         remote operation as seen in the picture

The process was instigated by a series of safety awareness discussions on the activity and
ultimately the operations group gathered support from management and was seen as a
success for both safety and efficiency.
                                                                                                      9
3. Safety Culture

 What is Safety culture? How do you determine this?

 What does the general workforce talk to their friends and family about their business?

 What do contractors expect to see when they approach your workplace?

 The need to “Walk the Talk”

 People within the organisation need to understand that they will be assessed on how they
 interact with the safety protocols and subsequent culture of the organisation in every task
 they conduct.

 Case study: Contract gardeners at a major petrochemical facility. Good safety turned to great
 business




                                                                                                 10
Safety Culture – when things go wrong


Case Study – Influencing by consequence and focus
When things go wrong!

CRISIS MANAGEMENT

   Safety Leaders must rely on facts.

   Management Systems are key

   Crisis Management brings true leaders to the surface.

   Prioritising events

   Proper management of expectations from a human factors and legal perspective a
   must.


                                                                                    11
Incident 1 – Typical Autumn Saturday morning



    Phone call received at 9:00am regarding an incident at a manufacturing site
    Details become more detailed of an injured employee taken to hospital
    Employee apparently fell about 2.5 meters from a piece of equipment that was being
    worked on during a weekend as it was shutdown
    Upon arrival at the site, the gravity of the incident took more shape
    A 2.5 tonne bearing housing was found within 0.5m of where the employee grounded
    When discussed with the site personnel, it was found that the person was standing on
    the bearing housing when it dislodged and he narrowly missed being crushed.

    How does this incident then translate to the need for culture change?

    Safety Leaders are confronted with a decision on how they would deal with this
    very serious event.




                                                                                           12
Consequence translated to action

Safety Leader has path of action to take:

1. Fully understand the facts
2. Engage the stakeholders to ensure that all factors
   leading up the incident are accurate
3. Root cause analysis
4. Communication within stakeholder groups to agree
   that the causal analysis is correct
5. Establish a communication and action plan

Where do safety leaders now need to influence?

1. Identify and establish key accountable parties
2. Take the parties through the investigation
3. Ensure senior management attendance
4. Identify the worst case scenario and work back
   i.e. fatality and related repercussions               CLARITY of CONSEQUENCE
5. Ensure that all parties are given the consequence             will ensure
   feedback and “what if” scenario                      ACTIONS completed to REMEDY
6. Obtain commitment form all to ensure that the
   actions will be implemented and that senior mgt
   demand that the findings are closed out
                                                                                      13
Safety culture – Building from crisis


   Safety Leaders influence culture by demanding expectation of system and process

   Influencing systems compliance by the use of validation checks and audits

   Enabling stakeholders to understand and identify precursors to hazards

   Influence “what’s in it for me” approach to safety management

   Enlisting enablers to carry the messages and stimulate involvement in process’s such
   as investigations and action plans

   Decide on the improvement approach that best suits the culture change required

   Translate the learnings into process


                                                                                          14
Incident 2 – Not so typical winter weekday nightshift



    Major petrochemical operation
    Shutdown activities into 2nd week spirits
    high but physical factors of N/S showing
    3am Chocolate run and safety discussions
    underway with shift supervisor
    A number of safety discussions conducted
    When walking down pump alley, the most
    horrifying scenario was discovered
    Flammable gas – pungent smell and
    realisation something seriously wrong
    Emergency called, evacuation of activities
    and MFB called
                                                   Managing Crisis
    What happened then was the most                Managing people safety
    terrifying experience I have ever had          Life & Death scenario
                                                   Unknown cause
                                                   Emergency services

                                                                            15
What Happened


In a nutshell:

   Maintenance was being conducted to
   Liquefied gas the storage area of the plant
   Work on particular vessel that took water
   from the storage vessel
   High pressure flammable gas pressurised
   and infiltrated the steam system (reticulated
   to the whole plant) due to faulty one way
   valve
   This delivered flammable gas to nearly the
   whole plant via steam traps
   Approximately 4 tonne of gas was lost to
   atmosphere (390:1 expansion ratio)
   Only the actions taken that night prevented
   a major community disaster with potential
   for multiple fatalities.


                                                   16
Systems & Crisis


   Evacuation procedures worked well
   MFB response – reliance on site leaders
   Safety Leadership was seen as the re-
   enforcement of real trust to the group
   Actions taken were methodical and relied
   on systems
   MFB command elected to take
   instructions from site once they confirmed
   that the control strategy was sound
   Plant alarms were saturated
   Remedial works were carried out with
   precision and controlled by expertise
   Site engineers were on site within 30
   minutes of alarm
   Response was systemic clockwork


                                                17
Summary


  System and process being defined,
  validated and practiced is crucial
  Safety leaders to ensure that they are
  facilitators
  Engagement of stakeholders is essential
  for holistic change
  Emphasis on crisis management and
  expertise to be used for varying task

  Results
  Well understood expectations when
  people enter the facility
  Desire to comply to rules and procedures
  if they are checked
  There is a level of respect given to
  systems is they are seen to be useful
  Senior management involvement is key
  to success



                                             18
4. Turning risk into opportunities

                                                              Safety Leadership revolves around the
                                                              need to manage risks

                                                              People regularly are put off if the risk
                                                              assessment is too conservative

                                                              Safety leaders influence the balance
                                                              between value add and diminishing
                                                              returns which needs to be very well
                                                              gauged. Appropriate experience
                                                              should guide this process




      The key message for safety leaders is to ensure factual and balanced information is
      presented to ensure that there is effective risk mitigation coupled with opportunity to conduct
      activities.


                                                                                                         19
Conclusion


   Safety leadership relies on a
   passion to influence real change
   Enablers within the facilities are
   crucial to spread the word
   Culture change comes with a shift
   in behaviours and a belief in
   expectations
   Engagement of the workforce takes
   time but is predicated on trust
   Senior management MUST be
   involved and seen as sponsors
   It is the Safety leaders responsibility
   to seek and influence / coerce
   support
   Sometimes, scare tactics work but         “Safety leadership is more than just management, and
   use wisely!                               refers to not just what, but how a person influences and
                                             motivates others.”



                                                                                                        20
Q&A




      21
www.unitedgroupltd.com

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  • 1. Safety Improvement with a leadership focus Greg Lazzaro AHRI – Safety Presentation 4th August 2009
  • 2. Introduction Safety Improvement Employee Engagement & Culture Change. Personal experience firstly in operational roles and now at GM level with an ASX 200 company. Discuss Safety Leadership and how to engage and influence the culture using safety as a lever. 2
  • 3. Summary of topics Safety Leadership – what does this mean in business change management context ? Safety Improvement – How do we take business forward in this area ? Safety Culture – Identifying, Influencing and changing safety culture ? Practical mechanisms to change perceptions of risk ? Turning risks to opportunities by leading safety change ? People – how do we engage our people to believe in safety ? 3
  • 4. 1. Safety Leadership Safety leaders are identified as passionate and visible. “Leadership is the process of influence in which one person can enlist the aid and support of others in the accomplishment of a common task”. Managers administer; leaders innovate. Managers do things right; leaders do the right things. Managers maintain; leaders develop. Managers rely on control; leaders inspire trust. Managers imitate; leaders originate. Management involves power by position. Leadership involves power by influence. Managers ask how and when; leaders ask what and why 4
  • 5. Safety Leadership Case Study – Safety Awareness Change Process (Orica business) Change process initiated by leader of the site – Site Manager Resultant culture change took about 12 months – 18 months (realistic) Site Site Mgr Shift discussions discussions Supervisor (year 1) 1024 450 25% residual Site management were convinced in the program ~ 6 month mark Systems improved as the discipline in safety heightened KEY Points for change Needs key leadership sponsor – e.g. Site Manager to lead role Needs realistic timelines and clear objectives Communication of outcomes at local levels and in management forums LTI FR LTI FR LTI Free days >500 2.4 <1.0 5
  • 6. Safety Leadership Learning's on success Need to understand the current safety climate in the workplace - Engagement Develop a high level plan as to what it is the workplace desires to achieve in a given time – Plan Work on targeting the areas where there are identified deficiencies - Execute Measurement of progress to plan and celebration of success - Measure 6
  • 7. Safety Leadership Practical Safety leadership comprises of: Engagement of the workforce Discovering and empowering enablers Safety Leader to be seen as the facilitator Encourage the celebration of success 7
  • 8. 2. Safety Improvements What is Safety improvement within a workplace? Experience has shown that it is not based solely on traditional key performance indicators (LTIFR, TRCFR etc..) but a combination of heightened sophistication in the activity that is demonstrated and heightened awareness of risk and management of the reduction of exposures at the activity level. How do we measure this? Usually when things go wrong, we can narrow it to an event. Therefore focus at the event level is key. In the following example, the mechanism of risk was devised by the engineering team at the site along with the operations staff. 8
  • 9. Example of High Pressure activity Cleaning of a heat exchanger Once a month activity High pressure water cleaning activity Previous manual cleaning using lance Ejection of plastic particles were hazards Equipment was not ideal Solution Manual hydraulic ram was engineered and remote operation as seen in the picture The process was instigated by a series of safety awareness discussions on the activity and ultimately the operations group gathered support from management and was seen as a success for both safety and efficiency. 9
  • 10. 3. Safety Culture What is Safety culture? How do you determine this? What does the general workforce talk to their friends and family about their business? What do contractors expect to see when they approach your workplace? The need to “Walk the Talk” People within the organisation need to understand that they will be assessed on how they interact with the safety protocols and subsequent culture of the organisation in every task they conduct. Case study: Contract gardeners at a major petrochemical facility. Good safety turned to great business 10
  • 11. Safety Culture – when things go wrong Case Study – Influencing by consequence and focus When things go wrong! CRISIS MANAGEMENT Safety Leaders must rely on facts. Management Systems are key Crisis Management brings true leaders to the surface. Prioritising events Proper management of expectations from a human factors and legal perspective a must. 11
  • 12. Incident 1 – Typical Autumn Saturday morning Phone call received at 9:00am regarding an incident at a manufacturing site Details become more detailed of an injured employee taken to hospital Employee apparently fell about 2.5 meters from a piece of equipment that was being worked on during a weekend as it was shutdown Upon arrival at the site, the gravity of the incident took more shape A 2.5 tonne bearing housing was found within 0.5m of where the employee grounded When discussed with the site personnel, it was found that the person was standing on the bearing housing when it dislodged and he narrowly missed being crushed. How does this incident then translate to the need for culture change? Safety Leaders are confronted with a decision on how they would deal with this very serious event. 12
  • 13. Consequence translated to action Safety Leader has path of action to take: 1. Fully understand the facts 2. Engage the stakeholders to ensure that all factors leading up the incident are accurate 3. Root cause analysis 4. Communication within stakeholder groups to agree that the causal analysis is correct 5. Establish a communication and action plan Where do safety leaders now need to influence? 1. Identify and establish key accountable parties 2. Take the parties through the investigation 3. Ensure senior management attendance 4. Identify the worst case scenario and work back i.e. fatality and related repercussions CLARITY of CONSEQUENCE 5. Ensure that all parties are given the consequence will ensure feedback and “what if” scenario ACTIONS completed to REMEDY 6. Obtain commitment form all to ensure that the actions will be implemented and that senior mgt demand that the findings are closed out 13
  • 14. Safety culture – Building from crisis Safety Leaders influence culture by demanding expectation of system and process Influencing systems compliance by the use of validation checks and audits Enabling stakeholders to understand and identify precursors to hazards Influence “what’s in it for me” approach to safety management Enlisting enablers to carry the messages and stimulate involvement in process’s such as investigations and action plans Decide on the improvement approach that best suits the culture change required Translate the learnings into process 14
  • 15. Incident 2 – Not so typical winter weekday nightshift Major petrochemical operation Shutdown activities into 2nd week spirits high but physical factors of N/S showing 3am Chocolate run and safety discussions underway with shift supervisor A number of safety discussions conducted When walking down pump alley, the most horrifying scenario was discovered Flammable gas – pungent smell and realisation something seriously wrong Emergency called, evacuation of activities and MFB called Managing Crisis What happened then was the most Managing people safety terrifying experience I have ever had Life & Death scenario Unknown cause Emergency services 15
  • 16. What Happened In a nutshell: Maintenance was being conducted to Liquefied gas the storage area of the plant Work on particular vessel that took water from the storage vessel High pressure flammable gas pressurised and infiltrated the steam system (reticulated to the whole plant) due to faulty one way valve This delivered flammable gas to nearly the whole plant via steam traps Approximately 4 tonne of gas was lost to atmosphere (390:1 expansion ratio) Only the actions taken that night prevented a major community disaster with potential for multiple fatalities. 16
  • 17. Systems & Crisis Evacuation procedures worked well MFB response – reliance on site leaders Safety Leadership was seen as the re- enforcement of real trust to the group Actions taken were methodical and relied on systems MFB command elected to take instructions from site once they confirmed that the control strategy was sound Plant alarms were saturated Remedial works were carried out with precision and controlled by expertise Site engineers were on site within 30 minutes of alarm Response was systemic clockwork 17
  • 18. Summary System and process being defined, validated and practiced is crucial Safety leaders to ensure that they are facilitators Engagement of stakeholders is essential for holistic change Emphasis on crisis management and expertise to be used for varying task Results Well understood expectations when people enter the facility Desire to comply to rules and procedures if they are checked There is a level of respect given to systems is they are seen to be useful Senior management involvement is key to success 18
  • 19. 4. Turning risk into opportunities Safety Leadership revolves around the need to manage risks People regularly are put off if the risk assessment is too conservative Safety leaders influence the balance between value add and diminishing returns which needs to be very well gauged. Appropriate experience should guide this process The key message for safety leaders is to ensure factual and balanced information is presented to ensure that there is effective risk mitigation coupled with opportunity to conduct activities. 19
  • 20. Conclusion Safety leadership relies on a passion to influence real change Enablers within the facilities are crucial to spread the word Culture change comes with a shift in behaviours and a belief in expectations Engagement of the workforce takes time but is predicated on trust Senior management MUST be involved and seen as sponsors It is the Safety leaders responsibility to seek and influence / coerce support Sometimes, scare tactics work but “Safety leadership is more than just management, and use wisely! refers to not just what, but how a person influences and motivates others.” 20
  • 21. Q&A 21