Acuren North Slope. Acuren North Slope 9/13/2011

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1 Presented by: Randy Selman, BP Alaska Integrity and Assurance Manager Frank Noble, Acuren Regional Manager BP NDT Inspection Contractor Employs 250 employees on the North Slope Comprehensive NDT inspection including Digital Radiography and Ultrasonic Corrosion Testing for Pipelines, Tanks, and vessels 24/7 Operation with a fully dedicated night crew Top Priorities SAFETY and QUALITY 1

2 Acuren - North Slope 2

3 Acuren Employee Concern Background Doing North Slope inspections since 2002 Significant workforce increase 2009 (increase from 140 to 220 employees in 6 months) Employee Concerns regarding work environment identified by external consultant in 2004 Attempts were made to manage employee issues via front line management Feedback from BP on-slope leadership regarding Acuren Issues Employee Concerns begin going external in 2007 to BP Office of the Ombudsman No ECP program at this time Warning signs and red flags Billie Garde FIX THIS Acuren Employee Concern Background Responded to obvious employee concerns new uniforms, better equipment, improvement camp environment, significant improvements to safety and quality programs Local management didn t recognize the larger impact of work environment concerns lack of trust, favoritism, confidentiality, retaliation, enforcement of respectful workplace Lack of corporate engagement and limited HR support = no alternate avenues of support for employees and no training or subject matter expertise for front line management Attempts made to manage EC from the corporate office (Greenwich, CT) were remote and reactive An Education in ECP ECP was a new concept for Acuren Employee surveys and work environment assessments shed light on the current situation Education and direction provided from BP s Office of the Ombudsman and the BP Alaska ECP Need for immediate improvements communicated from BP Senior Management to Rockwood Corporate 3

4 Management Gets it!!! Got complete buy-in from leadership at the corporate and local level Acuren General Manager and Project Managers become advocates for a new way of doing our business and this is required of the entire leadership team Resources are dedicated to the improvement effort Path to Recovery Alaska based ECP Manager is hired in late 2010 reporting to Rockwood Corporation Focused Field visits with technicians to build trust and educate on the program 2010 BP Office of the Ombudsman Assessment and Independent Employee Survey conducted Independent avenue for employee concerns with timely resolution of issues Path to Recovery Immediate and intensive safety culture/positive work environment training including HIRD for entire leadership team Weekly Personnel Action Review Board established to ensure consistent treatment, prevention of HIRD, and transparent communications On-site HR support added to manage employee realtime consistent application of procedures Work Environment Improvement Plan is developed with input from all employees to address survey results and focus on broad improvements to the safety culture and overall work environment 4

5 Acuren s Positive Work Environment Safety Culture Trust & Teamwork Positive Work Environment Respectful Workplace Transparent Communications Current ECP Initiative s 360 Reviews for the entire North Slope Leadership Team includes coaching and development plans Improved Performance Management Process including mid year reviews Follow-up Leadership Training -Performance Management Training & Conflict Resolution Updated Employee Handbook & HR Procedures Employee Training on Handbook and Workplace Expectations Regular Teambuilding Activities Opportunities for increased employee engagement Safety Committee, Tech Time, Continuous Improvement Projects, etc Increased Leadership time-in-the-field Improved communications via , scrolling monitors for important updates, weekly department meetings Behavior based recruiting Personal Accountability Workshop for interested technicians Where are we now? Employee Concerns Raised Externally

6 Path to Recovery Lessons Learned Targeting the root causes of our Employee Concerns had led to lasting organizational improvements Transparency in decision making Improved Communications Clear Policies and Defined expectations for Employees Changes to our HSE and HR staff and organization Overall improvements in Leadership capabilities More efficient to manage concerns in a timely manner at the lowest possible level Path to Recovery Lessons Learned Appropriate handling of Employee Concerns is an opportunity for our company to go from Good to GREAT Employee Concerns are normal and expected; Its about continuous improvement Just like safety, we have to continuously work to ensure we have a positive work environment If we want to continue to be the best in our business, we need to have the engagement of all people involved Procedures cant deal with everything there will always be new/unexpected challenges and we must depend on an active involved workforce to alert management and participate in evolving work practices to move beyond safe to very safe What s Next? Fully Implement North Slope Program Expand ECP Program elements to other Rockwood companies and Acuren regions Positive Work Environment Training Leadership Development Opportunities: 360 Reviews & Coaching Supervisor Training 6

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