The Escalating Consequences of EHS Incidents for High Tech Manufacturing Industry David Turberfield

Transcription

1 The Escalating Consequences of EHS Incidents for High Tech Manufacturing Industry David Turberfield

2 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 $60B

3 Mitsubishi Materials Corp. Yokkaichi, Japan, January 2014 (Youtube screenshot)

4 SK Hynix, Wuxi, China, September 2013 (BusienssKorea)

5 Company Performance Anticipating big challenges Media Incidents Education Science Regulation Declining tolerance of risk In a recent survey, 99% of our clients believe we are now in the lift-off phase Stakeholder Expectations Growing Gap A source of increasing risk to the business A B C D Time Actual performance Incidents/ accidents Compliance Eco-efficiency etc.

6 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 Performance Often in areas where leaders don t get it and are resistant to changing the status quo Identifying these weak spots is critical

7 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

8 Behaviour Behaviour = Thought + Action We can only change how people act if we get them to think differently

9 Performance all depends on leaders actions Risk Control / Accidents Compliance / Non-Compliance Acceptable / Unacceptable Impacts

10 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?

11 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

12 Assessment for leadership alignment on the need for change 2. Discussion with folks on the front line to understand why they are behaving in a way which is creating suboptimal outcomes 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 Risk Control / Accidents Compliance / Non-Compliance Acceptable / Unacceptable Impacts 1. Observations and photos of at risk conditions and work practices

13 Time to Act Element Actions Outcomes Building on Leadership Alignment/ Diagnostic 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 EHS Leadership Training: Providing leaders up and down the line with the means to change behaviours 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 Coaching Leaders on Hazard Recognition and High Impact Interactions 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 Data you have Prior exercises Established programs Mobilizing Champions to Sustain and Improve Performance 3 hours in the classroom and 5 hours in the field Coaching Based Interventions Building capacity to support leaders in the field

14 Positive Interventions Socratic Questions 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 ASK. DON T TELL. 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

15 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

16 We have helped our clients improve outcomes and transform EHS performance Project Oil Refinery, Singapore Chemical Manufacturer, South Korea Pharmaceutical Manufacturer (API), India Chemcial Manufacturer, Indonesia, Japan, Argentina Citation 55% reduction in Total Recordable Incident Rate over a period of six months - endured two years. HSE Manager our best year ever. - 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 Corrective action completion rate: 50% to 93% 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. 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. 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.

17 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

18 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 david.turberfield@erm.com Mobile: