improving contractor safety performance --- a formula for...

DOC ID© Chevron 2005

Improving Contractor Safety Performance ---A Formula for Success

[Presentation Excerpts]

Allan Quiat

11th Bi-Annual FABA/OBMNetwork Conference

Sarasota Florida

19 January 2007

2DOC ID© Chevron 2005

A Bit About Chevron Corporation

� The second-largest integrated energy company in the

United States

� Conducts business activities in ~180 countries

� More than 59,000 employees worldwide at year-end

2005

� Capital and exploratory expenditures:

� 2006 --- $14.8 billion

� 2007 --- $19.6 billion

� Business strategies are focused in these areas:

� Global Upstream

� Global Gas

� Global Downstream

� Continue Investment in Renewable Energy Technologies

3DOC ID© Chevron 2005

Purpose of Presentation

� Purpose: To share the “formula for success”

we have developed for implementing change

initiatives

4DOC ID© Chevron 2005

Formula for Success Ingredient 1:The Right Team

� Assemble an integrated, multi-functional

team of people to work on the project

� Noted as a key project success factor through

industry benchmarking by a third party

� Integrated:

� A team, not a collection of individuals

� Multi-functional:

� Diversity in many dimensions (knowledge,

skills, abilities, experience, etc.)

5DOC ID© Chevron 2005

Formula for Success Ingredient 2:A Solid Frame

� Define the project frame clearly, to include:

� opportunity or problem statement

� current state

� desired state

� scope

� stakeholders

� business case

� etc.

� Document the frame in a way that will enable

it to be easily presented to stakeholders for

discussion and alignment

6DOC ID© Chevron 2005

Formula for Success Ingredient 3:Clear Direction

� Clear Direction is about alignment, ensuring

that the project opportunity has been

appropriately framed, with clear objectives

and scope, and ensuring that the business

case is compelling at each level of the

organization impacted by the change

7DOC ID© Chevron 2005

Formula for Success Ingredient 3:Clear Direction (continued)

� We have already discussed the frame; let’s take a

minute to cover the compelling business case

� A compelling business case answers the question

each stakeholder will or should ask

� “Why should we consume our time and resources to

do this now?”

� “What’s in it for me?” [WIIFM]

� It contains information that encourages key

stakeholders to view the implementation as

important and worthwhile

� It describes the project succinctly, and it paints a

clear vision of success

8DOC ID© Chevron 2005

Formula for Success Ingredient 4:Sponsorship

� Sponsorship is about how to secure the right

sponsors and what those sponsors must do

throughout the change process to achieve

successful implementation

� Sponsors engage in behaviors to support:

� Creating Alignment

� Communicating

� Gaining Commitment

� Shaping and Reinforcing Behavior

� Arranging Resources

� Building Durability

9DOC ID© Chevron 2005

Formula for Success Ingredient 5:Engagement

� Engagement consists of two activities:

1. Conducting inquiry with stakeholders during

the early phases of the project to –

� clearly understand the current state and

how things happen today

� get reactions to the proposed changes

� define critical ideas for implementation

10DOC ID© Chevron 2005

Formula for Success Ingredient 5:Engagement (continued)

� Engagement consists of two activities:

2. Systematically using dialogue as a means to

build ownership for implementation among

the people most directly impacted by the

change during the later phases of the project

11DOC ID© Chevron 2005

Formula for Success Ingredient 6:Communication

� The way in which information is shared

during an implementation process can serve

as powerful antecedents and/or

consequences to influence behavior

�Make certain that you establish and use an

effective, two-way communication system

12DOC ID© Chevron 2005

Formula for Success Ingredient 7:Measurement

� Measurement is the process of systematically

identifying and monitoring the most effective

measures for tracking implementation and

progress towards desired business outcomes; four

types of success measures should be considered:

� Results measures

� Process measures

� Behavior measures

� Project tracking measures

13DOC ID© Chevron 2005

Formula for Success Ingredient 8:Shaping / Reinforcement

� Shaping / Reinforcement is the process of

planning and executing specific actions to move

behavior from the current state to the desired

state

� Shaping Plans are critical to success for change

efforts which require large shifts in behaviors

� They help consequence providers systematically

plan to provide supplemental reinforcement to

people whose behavior needs to change

14DOC ID© Chevron 2005

Formula for Success Ingredient 8:Shaping / Reinforcement (continued)

� Use ABC Analysis to develop antecedents and

consequences to promote desired behaviors

of key performers

� Identify key consequence providers to each

key performer

� Develop cascaded shaping plans for

consequence providers to set up antecedents

and deliver consequences (focusing on R+

where possible)

� This is a “play within a play”...

15DOC ID© Chevron 2005

Formula for Success Ingredient 9:Planning

� Plan systematically

�With that said, people can become very

creative during this period; we need to

capitalize on this creativity by allowing for

appropriate plan refinements throughout the

change to incorporate the feedback of those

impacted (while managing project scope

carefully)

16DOC ID© Chevron 2005

To Conclude...

� Our project achieved excellent results through:

1. Use of an integrated cross-functional team

2. Developing a solid project frame

3. Establishing and aligning on a clear direction

4. Securing and coaching the right sponsors

5. Active engagement of key stakeholders along the way

6. Effective communication to enable behavior change

7. Measurement of the right things to gauge progress

8. Shaping/reinforcing performers’ key behaviors

9. Systematic planning