Leadership:Learning from the Major Hazards Sector

Ian Travers Deputy Director, Chemicals Regulation Directorate

Lessons from Notorious Incidents

FlixboroughBhopalPi

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Seveso

Esso LongfordBP T

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City

Buncefield

Macondo

Lessons from Major Accidents • Inadequate leadership and poor culture have been

recurrent features: – a failure to recognise things were out of control often due

to lack of competence at different levels of the organisation;

– an absence of, or inadequate, information on which to base strategic decisions – including the monitoring of safety performance indicators at Board level;

– a failure to understand the full consequences of changes, including organisational ones;

– a failure to manage process safety effectively and take the necessary actions.

Leadership • Senior Managers need to understand the risks posed by

their organisation’s activities, and balance major accident risks alongside the other business threats.

• Leaders need to recognise: – major accidents as credible business risks; – the integrated nature of many major hazard businesses –

including the potential for supply chain disruption; – management of process safety risks should have equal

focus with other business processes including financial governance, markets, and investment decisions, etc.

Set the Direction & Measure the Outcome

HSG 254

Essential Elements of Corporate Governance for Process Safety

Essential Elements of Corporate Governance for Process Safety

• LEADERSHIP AND CULTURE: CEO and leaders create an open environment

• RISK AWARENESS: CEO and leaders broadly understand the vulnerabilities and risks

• INFORMATION: CEO and leaders ensure data drives process safety programmes

• COMPETENCE: CEO and leaders assure their organisation’s competence to manage the hazards of its operations

• ACTION - CEO and leaders engage in articulating and driving active monitoring and plans

Management systems were both deficient and not properly followed, control room staff had little control over flow rates and timing of receipt and did not have sufficient information to manage precisely the storage of incoming fuel

A culture where keeping the process operating was the primary focus and process safety did not get the attention, resources or priority that it required

Getting it right pays large dividends Scottish Power believes it could not run its business effectively without a process safety framework and KPIs to show real-time performance. Enhanced plant reliability has led to a reduction in unplanned outages and breakdowns, and a drive to less reactive maintenance has significant cost savings: •20% reduction in operations and maintenance costs; •22% increase in plant availability; and •25% reduction in plant forced outage rates.

Operational and Compliance Audits, Technical Risk Management, Staff Competence, Operational Management, Maintenance Management, Critical Systems Management Alarm and Instrument Management, and Emergency Preparedness.

Scottish Power KPI Programme

Risk Profile • Control measures tailored according to the

‘risk- profile’. More emphasis, more in-depth control in parts of the process where numerous challenges to safety and consequences of failure are significant

Focus on Safety Outcomes

• Leaders should: – focus on safety outcomes and not draw comfort

from the complexity of the control measures and the systems

– Question perfection - never fully believe that risks are being adequately controlled – should actually know based on information from Key Process Safety Indicators – KPIs

– Identify failings and act quickly and decisively – don’t just measure and feel good