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The Escalating Consequences of EHS Incidents
for High Tech Manufacturing Industry David Turberfield
Consequences of EHS issues
Business success depends on
innovation, cost control, timely
output delivery, supplier
management…
EHS management
» Its dynamic and a source of
increasing risk to business
» Community locally, new
graduates, competitors and
customers increasingly care
about it
Poor EHS management
» Taints success – of
organizations and individuals
» Can have very significant cost
implications
» Damages reputations 2010 Deepwater Horizon @ $60B
Mitsubishi Materials Corp. Yokkaichi, Japan,
January 2014 (Youtube screenshot)
SK Hynix, Wuxi, China,
September 2013 (BusienssKorea)
Co
mp
an
y
Perf
orm
an
ce
Stakeholder
Expectations
Growing Gap
Actual performance
• Incidents/ accidents
• Compliance
• Eco-efficiency
• etc.
Time
A source of increasing risk to the business
Media
Incidents
Education
Science
Regulation
Declining tolerance of risk
A B C D
In a recent survey,
99% of our clients
believe we are now in
the lift-off phase
Anticipating big challenges
Strength defined by where its weakest
Performance varies across teams/operating units/divisions
Almost all organizations have areas where performance is more fragile
Activity specific
Specific regions/geographies
Organisational entities/departments
If it goes seriously wrong, its most likely to do so in these areas
Often in areas where leaders don‟t „get it‟ … and are resistant to changing the status quo
Identifying these weak spots is critical
Performance
Great project teams and not so good ones
Each and every team has its own culture, performance
standards
Culture a product of leaders‟ actions and especially their
reactions
Quality of leadership in the team the most critical factor by far
in determining
Performance on EHS and everything else
Whether the team has
accidents
Behaviour
Behaviour =
We can only change how people act if we get them to think
differently
Thought
+ Action
Performance all depends on leaders’ actions
Risk Control /
Accidents
Compliance /
Non-Compliance
Acceptable /
Unacceptable
Impacts
Achieving a zero noncompliance culture
Better outcomes only if front line personnel change their behaviours (i.e., if
people think and act differently)
Behaviours on the front line will only change if their leaders up and
down the line change their behaviours
How do you quickly change the behaviours of leaders … especially leaders
of operations which present the greatest risks for the business – the ones
that „don‟t get it‟?
Causing improvement - getting leaders to think and act differently
Telling leaders to change is a big ask. And it probably won‟t work!
Simple steps to deliver and sustain improvement
Get the leaders WANTING change – up and down the line
Equip them to deliver behavioural change down the line
Make it real in the field – robust hazard recognition for leaders at all
levels and their interactions with folks absolutely critical
Assessment for leadership alignment on the need for change
Risk Control /
Accidents
Compliance /
Non-Compliance
Acceptable /
Unacceptable
Impacts
1. Observations and
photos of at risk
conditions and work
practices
3. Discussion
with leaders on
extent to which
their
behaviours,
culture they
create,
processes they
use are giving
rise to
behaviours on
the front line
2. Discussion
with folks on
the front line to
understand
why they are
behaving in a
way which is
creating
suboptimal
outcomes
Graphics
What‟s this layout for?
Plain slide without a text box –
used for inserting graphics e.g.
pies, bars or images
Time to Act Actions Outcomes Building on…
Field observations and causal
analysis with escorts
Working sessions with the
leadership lead by the escorts
1-on-1 sessions with leaders
High impact closing with photos
Case for change for the
leadership
Status in the field
Breakdowns
Here and now
Personal
Data you have
Prior exercises
Established
programs
Element
EHS Leadership
Training: Providing
leaders up and down the
line with the means to
change behaviours
Coaching Leaders on
Hazard Recognition
and High Impact
Interactions
Mobilizing Champions
to Sustain and
Improve Performance
Leadership Alignment/
Diagnostic
8 high intensity hours in the
classroom with leaders at all levels
Leaders make choices
Impacts of accidents
How it is now and why – case for
change
Define a new path
Choosing a different path
Impacts of accidents
Safety: a matter of
choice for leaders
Its not ok
Practical changes they
can make
Data you have
Prior exercises
Established
programs
2.5 hours in the class room
5.5 hours in the field with coaches
(1:2 or 1:3)
Peer sharing changes and
focus on 2 fundamentals
Hazard recognition
Creating a culture of
oversight
3 hours in the classroom and 5
hours in the field – Coaching Based
Interventions
Building capacity to
support leaders in the field
Data you have
Prior exercises
Established
programs
Positive Interventions – Socratic Questions
ASK. DON‟T TELL. 1. First Encounter to Establish
Rapport
2. ”Do you see anything not quite
right with what A is doing? –
Helping B to identify the hazard
3. “What could happen here?” –
Helping B to identify the
Consequences
4. “Why did you not notice it before?”
- B feels he’s let his colleague down
5. “Don’t you want to watch out for
each other?” - B makes a
commitment to watch out for his
colleagues
6. “Would you do that by getting C
and asking him the same questions
that I asked you?” – B shows his
commitment by spreading his
learning
The Asian Challenge…
Steadily aging assets
Week enforcement
High risk tolerance
Command and control
leadership
Reluctance to report bad
news
Mixed cultures and
languages
Skills and competencies
Systems and leadership
We have helped our clients improve outcomes and transform EHS performance
“This day-and-a-half has changed the way I think about my job and the way I interact with others. I can‟t
wait to get out there and try it.”
“I left here yesterday and told my men that from now on they would be seeing my true colors. I‟m going
back now to show them that I can be better than I‟ve been.”
“If I leave this project tomorrow, this training will be something that I take with me for the rest of my life
and career. It has made me a better leader and a better communicator.”
Project Citation
Oil Refinery, Singapore 55% reduction in Total Recordable Incident Rate over a period of six months - endured two years. HSE Manager “our best year ever”.
Chemical Manufacturer, South Korea
- Unsafe behavior rate for inhalation of dust: 35% to 4% - Unsafe behavior rate for slips, trips and falls: 24% to 5% - Observation Rate increased five fold - Unsafe Conditions Reported: 77 to 144 - Corrective action completion rate: 50% to 93%
Pharmaceutical Manufacturer (API), India
Regional Corporate HSE Director “what we all could not do in the last 15 years, you guys have done in 6 months. We were trying to take the horse to the water and make him drink, but he wasn‟t drinking. But now the horse himself is saying that he wants to drink the water. We see significant change in the leadership‟s thought process, they are taking a full and active lead on safety matters for the first time.”
Chemcial Manufacturer, Indonesia, Japan, Argentina
Global EHS Director “An enhancement to our traditional program that we apply to priority sites that need a more attention in improving their safety performance. The process is very effective in identifying high priority gaps, identifying root causes, and inspiring change.”
Conclusion: Four Imperatives
1. Focus initially on senior most leaders, then leaders at all levels
together
FLLs, Senior Leadership, Middle Management
Employees and contractors
EHS functional staff have a critical role to play
2. Field and consequence focussed
Use photos at first (bring the field conditions to them)
Then with leaders in the field
3. Use high impact presentation, training and interview techniques
4. Externals provide activation energy, expertise and focus – but
changes only driven from within
Carefully selected champions of change engaged throughout to embed capabilities
to sustain improvements
Growing concerns about EHS performance in Asia
• A bigger issue today and a much bigger issue in future …
• A source of increasing risk and opportunity to your business
• Rising to the challenge
Changing behaviours in the field … for good
Through their leaders or not at all
• The heart of the sustainability challenge
• Our challenge
Contact: David Turberfield [email protected] Mobile: +65 9711 8611