copyright ©2012 summit safety technologies all rights reserved the value of safety the far-reaching...

Copyright ©2012 Summit Safety Technologies All Rights ReservedCopyright ©2012 Summit Safety Technologies All Rights Reserved

The Value of SafetyThe Value of SafetyThe Far-Reaching Effects of Safety Decisions

&Implementing an Effective Safety System and Culture

A presentation of

Copyright ©2012 Summit Safety Technologies All Rights Reserved

Introduction

Safety in business is often viewed as an expense and something that must be done to comply with the law.

This view limits the tremendous value offered by an effective safety system and safety culture.

Using safety as a business tool, one can reduce costs, increase production, increase revenue, and improve customer relations.

This course will help you view the value-adding potential of safety rather than seeing it as just another expense or necessity.

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What You Will Learn

The Elements & Importance of a Safety System and Culture

The Costs of Not Having an Effective Safety System

Steps to Safety System & Culture Implementation

Options for Safety System & Culture Management

The value of the Part Time Safety Manager Service

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The Elements & Importance of a Safety Culture

The employer must recognize safety as its top priority and the importance of a safety culture.

This section will introduce you to the following elements that support a culture of safety: 1) A pervasive commitment to

safety. 2) Open communication.3) A blame-free environment.4) The importance of safety

design in preventing future incidents.

5) Management involvement and accountability.

1: Each employer shall furnish to each of his employees employment and a place of employment which are free from recognized hazards that are causing or are likely to cause death or serious physical harm to his employees.2: Each employer shall comply with occupational safety and health standards promulgated under this act.3: Each employee shall comply with occupational safety and health standards and all rules, regulations, and orders issued pursuant to this Act which are applicable to his own actions and conduct.

The OSHA General Duty Clause states:

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What is “safety culture?”

Safety culture can be defined as: The set of values, beliefs, and norms

about what’s important, how to behave, and what attitudes are appropriate when it comes to safety in a work group.

Organizations with effective safety cultures have a constant commitment to safety as a top-level priority, and these actions and attitudes are evident throughout the organization.

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Safety Culture: A Means to Reduce Injuries

Key Beliefs Culture is created by what you

do…not what you say. Management is key in enabling a

culture shift. Cannot continually make people

do what they don’t want to do. Once enabled, the organization

grows/sustains the culture. The Road to a Total Safety

Culture Establishing business and

personal value for safety. Make safety a core value. Management walks the talk. Employee accountability.

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How is "safety culture” Measured? Experts delineate a number of safety culture

dimensions, which can be measured by a variety of methods including surveys.

Some areas to consider measuring include:1) Supervisor/manager expectations &

actions promoting safety.2) Organizational learning—continuous

improvement.3) Openness of communication4) Feedback & communication about

incidents.5) Senior management support for safety.6) Non-punitive response to incident (blame-

free environment or a “just” culture).7) Staffing.8) Teamwork within departments.9) Teamwork across Company departments.

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Acknowledging that success in creating a culture of safety requires the commitment of both organizational leadership and frontline workers, the employer must stress:The critical role of

managers and supervisors in the process.

The role of each and every employee.

Importance of a Safety Culture

LeadershipExpectations

Behaviors

Org Culture

Human Performance

SafetyCulture

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Safety Culture Stages

There are four stages of safety that produce varying levels of effectiveness depending on how evolved a company is in their approach:

1. SWAMP: - Safety Without Any Management Process, or "costs are the problem"

2. NORM: - Naturally Occurring Reactive Management, or "people are the problem"

3. Excellence: - safety excels to the 4th quartile - safety is "managed"

4. World Class Safety: - Safety is "not managed...safety is led"

Where is your company? Where would you like your company to be?

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Safety Culture Principles

Safety is everyone’s responsibility. Leaders demonstrate commitment to safety.

Management at all levels must set the set the standard. Particularly important for senior leadership; they must set the standard

they want to become the norm of behavior for everyone in (Company Name). This includes:

Completion of safety training requirements. Encouraging reporting of all incidents (including near-miss incidents). Ensuring supervisors/managers are not pressured to provide production

at the expense of safety.

Trust permeates the organization. Decision-making reflects safety over

production. A “what if” approach is cultivated. Organizational learning is embraced. Safety programs & policies undergo constant

examination.

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Creating a Culture of Safety

What is Known…Safety = Good Business.Leadership is Critical.A Culture of Safety Must be Nurtured.Organization Must be Involved from Top to

Bottom.Safety is a Journey, not a Program.

What is at Stake... Each Day in the U.S.…

◊ 16 people will die at work.◊ 15,479 people will be injured.◊ Workplace injuries will cost the U.S. $470

Million in direct and indirect costs.

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Safety Paradigm Shifts

When Safety is a Priority When Safety is a Core Value

Injuries are unavoidable All injuries can be prevented

Major injuries are investigated All injury incidents are eliminated

Safety training is sporadic Safety training is continuous

Safety off-the-job is a personal matter

Off-the-job safety = on-the-job safety

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“If you do what you’ve always done, you’ll get what you always got!”

W. Edwards Deming


Primary Concepts of Safety Culture

Process, not a programProcess, not a program

Adaptation Vs. Adoption Adaptation Vs. Adoption

Employee Involvement - personal stakeEmployee Involvement - personal stake

Don’t Blame Employees - behavior is a Don’t Blame Employees - behavior is a function of the management system.function of the management system.

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The Blame-Free Environment or “Just” Culture

While management often feels that their organization has achieved a non-punitive environment, many of the employees may feel otherwise.

Safety incidents will often go unreported unless employees are assured they will not be punished in any way for taking a stand and reporting incidents and hazards.

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Punishing people for making mistakes emanates from the misconception that:The individual is entirely to

blame for his or her mistakes. That punishment will lead to

improved performance in that individual.

That punishment will act as a deterrent to others.

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Abundant evidence in human factors and cognitive psychology literature recognize that most human incidents are symptoms of underlying systems failures, not personal failures.

No one goes to work thinking, ‘How can I make a mistake today?’ Yet, mistakes do occur!

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It is not surprising that many employees are concerned that when the next downswing occurs their job will be on the line. And if an employee

believes that reporting hazards and incidents is viewed negatively by management, a fear of reprisal during the next downswing can prevent an employee from reporting hazards or incidents.

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Characteristics of an organization with a blame-free environment: Embraces the concept that employees do not purposely

seek to create incidents and that most incidents occur as a result of ineffective, improperly designed, or flawed systems.

Seeks to develop policies and procedures that support the realization that most incidents are not the result of individual failure, but system failure.

Develops ways to reward rather than discourage reporting of incidents or safety concerns.

Purposely works to alter its mindset about incidents and its behavior with respect to incidents, possibly by changing the language it uses to talk about safety and incidents.

Seeks to engender an environment where reporting about incidents and safety is the norm by actively creating an environment where managers and employees do not fear retribution for raising concerns or reporting incidents.

Implements methods of feedback to learn from incidents.

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The Challenge

The challenge is to change the environment from one of crisis and blame to that of learning and improvement.

In the past, organizations thought that if they rebuked those who where involved in incidents and provided enough training, it would address the problem.

We must create a reporting culture where people come forward when an incident occurs, and everyone works together to improve safety.

We must recognize that competent and knowledgeable individuals will make mistakes and we must not instill fear or punishment for reporting them.

In fact, many incidents result from an inadequate or complex system.

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The Challenge

Obviously, the transformation to a non-blaming culture does not occur overnight, or because of one intervention.

However, there are shifts that must occur and barriers to change.

A good place to start is with building the following into our culture: A pervasive commitment to safety, open communication, safety design, and management involvement and

accountability.

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Pervasive Commitment to Safety

Improvement in safety does not occur unless there is a commitment by the organization’s senior management.

An overt, clearly defined, and ongoing effort on the part of Company leaders to sustain the organization’s interest and focus on safety is imperative.

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Pervasive Commitment to Safety

Characteristics of an organization with a pervasive commitment to safety include: Articulates safety as a specific aim and

then determines how to translate that goal into its processes and procedures.

Establishes safety programs with defined executive responsibility that supports strong, clear, visible organizational commitment and attention to safety.

Meaningful safety programs should include:

◊ senior-level leadership; ◊ defined program objectives and plans; ◊ dedicated personnel resources; ◊ a budget; ◊ collection and analysis of data; and ◊ the monitoring of progress to a Safety

Committee and senior management.

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Open Communication Communication about the importance of safety must

be well- conceived, repeated, and consistent across the entire organization.

In its communication with managers, employees, and customers, the organization should stress that safety problems are quality problems and that everyone must be involved in identifying deficiencies in current processes and in designing and executing solutions needed to create safer systems.

Communicated messages must be supported by organizational behavior that reinforces the priority the organization places on safety to ensure that communication is believable and promotes the desired behavior of those working and being served within the organization.

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Open Communication Characteristics of an organization with open

communication about safety include: Openly discusses safety at all levels of the

organization.◊ Seeks mechanisms to reinforce safety as an

organizational priority ◊ Demonstrates that everyone’s contributions and

concerns about safety are valued and respected. Strives to include employees as active

participants in safety.◊ Promotes questioning of organizational routine,

procedures, and processes whenever something does not look or seem “right.”

Keeps all employees informed of incidents, safety problems, and efforts directed at maintaining and improving safety.

◊ Both the good news and bad news about safety is shared on a regular basis with all employees.

Fosters a management style in dealing with incidents that ensures that there are no reprisals and no impediments to information flowing freely.

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Safety Design When human failures do occur,

they are most often consequences of inevitable, “built-in” limitations of human cognition or endurance, such as: Limits on short-term

memory capacity. Sustained vigilance over

long periods of time. Judgment impacted by lack

of sleep. Problem solving under

stress. Prevention of future incidents

requires changing systems, not attempting to change individuals.

Safety Management System

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Safety Design Characteristics of an organization with a focus on safety

design include: Recognizes the weaker aspects of human performance.

◊ Purposely and tirelessly works to design incident elimination and improve safety in the workplace processes in a proactive manner by addressing such issues as:

Work hours Workloads Schedules Sources of distraction Employee turnover

Seeks to reduce variation in how work is done and devises strategies to avoid reliance on memory through the use of procedures, checklists, and standardization of work processes.

Evaluates how the number of steps in carrying out specific processes can be simplified.

Reviews research and the experiences of others in and outside of our industry in developing alternatives to reduce the possibility of incident and to improve safety.

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Management Involvement & Accountability

Characteristics of an organization with management and employee involvement and accountability include: Incorporates accountability for

safety into employee job descriptions.

Discusses the importance of safety with all employees, beginning with their orientation to the organization.

Evaluates employees on the contributions that they made in the area of safety.

Rewards employees for disclosing incidents, near misses, and safety concerns.

Success in creating a culture of safety starts with organizational leadership. However,

involvement of employees and managers is crucial in actually succeeding in implementing safer systems.

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Management Involvement & Accountability

Many organizations need to break out of the “blame and train” mentality that punishes individuals for incidents and rarely looks beyond to underlying job designs or system malfunctions. In these environments, personnel

tend not to report incidents they can hide and are hesitant to discuss them.

As a result, voluntary reporting typically identifies fewer than five percent of the incidents that actually occur.

Until this culture changes, voluntary reporting is of limited value in assessing the extent of incidents and in an organization’s ability to make systemic changes that will improve safety.

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The Costs of Not Having an Effective Safety System

Now that we know about safety systems and culture, it’s time to discuss what the lack of these can cost us.

Not having an effective safety system and culture in place is much more costly than having one.

Even the initial steps of safety system and culture implementation need not be costly.Building the foundation is much easier than

one might believe. Let’s look at the costs of injuries and how to

put effective safety in place.29


Costs of Safety

High costs are associated with work-related injuries. Many of these costs are not readily seen and are

considered “hidden costs”. Money spent on safety to prevent injuries is money

well-spent.◊ For every $1 spent on safety, $4 to $6 are saved in

direct/indirect costs due to injury.

How much should we spend on safety? This may best be answered by the following:

◊ How much is it worth to prevent an employee from suffering a life-long, disabling injury?

◊ What is the value of losing one’s sight?◊ While the courts may place dollar values on these,

how much are you as a manager willing to spend to keep your employees safe on the job and free from injury?

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Injury Costs

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Let’s take a look at how much injury incidents cost us and how much additional sales are required to cover the costs associated with these injuries…

A National Safety Council Safety Survey: Each Work-related injury costs the employer

approximately $35,000.– Using this figure, injuries could cost as

follows:• 5 Injuries x $35,000 = $175,000• 10 Injuries x $35,000 = $350,000

The next slide shows where these costs come from…

It Makes Good Business Sense: Invest $20,000 to reduce annual injuries by just 2 and you have a net savings of $50,000 per year.


Direct and Indirect Costs: The Iceberg Effect

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Direct Costs– Medical Costs (including worker’s

comp)– Indemnity Payments

Indirect Costs– Time Lost (by worker and

supervisor)– Schedule delays– Training new employees– Cleanup time / equipment repairs– Legal fees

If direct costs for an injury is $5,000, your total costs are around $25,000. A small investment in safety can prevent these injury-related costs!

On average, the indirect costs of accidents exceed the direct costs by a 4:1 or 5:1 ratio.


Revenues Needed To Cover Costs

1% 2% 3% 4% 5%

$1,000 $100,000 $50,000 $33,000 $25,000 $20,000$5,000 $500,000 $250,000 $167,000 $125,000 $100,000

$10,000 $1,000,000 $500,000 $333,000 $250,000 $200,000$25,000 $2,500,000 $1,250,000 $833,000 $625,000 $500,000$50,000 $5,000,000 $2,500,000 $1,667,000 $1,250,000 $1,000,000

$100,000 $10,000,000 $5,000,000 $3,333,000 $2,500,000 $2,000,000$150,000 $15,000,000 $7,500,000 $5,000,000 $3,750,000 $3,000,000$200,000 $20,000,000 $10,000,000 $6,666,000 $5,000,000 $6,670,000

Cost of A

ccident

Profit Margin

The time to implement an effective safety system and culture is NOW…before an injury accident cuts into your profit.

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Proactive vs. Reactive

It's smart to pay for safety systems before an accident occurs. For every proactive dollar spent preventing

workplace accidents, four to six dollars are saved in direct/indirect accident costs.

For every reactive dollar spent on the direct costs of a worker's injury or illness, much more is spent to cover the indirect and unknown costs associated with the injury or illness.

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Unlike direct costs, indirect costs are uninsured...they come right out of the Company pocketbook.


Costs Associated With One Lost Workday

Consider what one lost workday due to injury might cost in terms of: Productive time lost by injured employee. Productive time lost by employees and

supervisors helping the accident victim. Cleanup/start-up of operations interrupted

by an accident. Time to find replacement for injured

worker. Overtime costs to cover schedule.Time and cost for repair or replacement of

damaged equipment or materials. Reduced morale among employees, and

perhaps lower efficiency. Cost of completing paperwork generated

by the accident.

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Managing Safety Improves the Bottom Line

Considering the:Far-reaching impact of injuries on a business,Negative impact of OSHA citations,Reduction in Workers Comp premiums,Positive impact on employee moral, andImpression made on your customers…

? Why not begin the financially prudent move to implement an effective safety system and culture…

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Steps to Safety Implementation

Any employer can develop, implement, and manage an effective safety system and culture.The primary requirements are:

◊ Commitment of senior management.◊ Resources (primarily time) to allocate.

Let’s consider:The components of an effective safety

system.A roadmap to safety improvement.

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Components of an Effective Safety System

A safety management system (SMS) consists of several components.

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Components of an Effective Safety System

Commitment Full support of all management

Policies & Objectives Safety policy, goals and objectives

Safety Organization & Structure Responsibilities, accountability Programs, manuals, procedures

Risk Management Identify hazards, job hazard analysis, mitigate risk

Incident Investigation Root cause analysis, corrective actions, lessons learned

Training OSHA required training courses

Communication Availability of safety information to all employees Safety as agenda item in all meetings

Continuous Improvement Plan, Do, Check, Act

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Roadmap to Safety Improvement

After implementing a safety system and starting a culture of safety, a cycle of continuous improvement will keep the focus on safety behaviors in every business function

An effective safety system and culture is a win-win situation! And it’s easy to get started today!

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Safety Management Options

Now we know:What makes a Safety Culture.Why an effective safety system and culture

make good business sense.The basic components of a safety system and

continuous improvement. It’s time to look at the options for making

this happen.Basically, you can do it yourself in-house or

contract with someone else to do it.◊ The next page discusses 5 possibilities…

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Possible Safety Management Options

I. Assign safety management responsibilities to existing employee’s job.

a) If in-house safety skills do not exist, expect a long and steep learning curve.

b) The safety management functions will be placed in line along with all of the other responsibilities this employee may have.

II. Spread out safety management work among several employees.

a) Difficult to coordinate. Someone still needs to be in charge of managing all of these safety functions. Number I above also applies.

III. Hire a full-time Safety Manger.a) Expect to pay salary of $80-$100,000 or more plus benefits.

IV. Contract with a large safety consulting firm to manage safety responsibilities.

a) Cost of $40,000 per year or more.b) Consultant assigned to you may rotate, resulting in inconsistency of

how safety is managed.V. Contact Summit Safety Technologies and ask about our

Safety Manager Training Service or our Part-Time Safety Manager Service.

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Information

For more Information:

Summit Safety TechnologiesSummit Safety Technologies

www.SafetyProgramNow.comwww.SafetyProgramNow.com

Phone: (310) 940-1394Email: [email protected]

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A Presentation

of

Thank you for completing

The Value of SafetyThe Far-Reaching Effects of Safety Decisions

&Implementing an Effective Safety System and Culture

45

copyright ©2012 summit safety technologies all rights reserved the value of safety the far-reaching...

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