HRO From Dream to Corporate Priority. 5 th International HRO Conference Chicago, Illinois May 2012

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1 HRO From Dream to Corporate Priority 5 th International HRO Conference Chicago, Illinois May 2012

2 Your panelists today Jeff Dudley Director Maintenance Technology Center Darrell Callander Learning Leader University of Operational Excellence Brian Metcalfe Reliability Improvement Leader Kevin Bauman Technology Improvement Leader From Dream to Corporate Priority Organization Impact Practical Applications How Maintenance Has Influenced the Larger Organization

3 What is The Dow Chemical Company? Commercial Production 1898 Manufacture Bleach Incorporated 1897

4 114 years later Midland, Michigan $60 Billion 52,000 Employees 197 Manufacturing Sites 36 Countries 5,000 Products Customers Countries

5 Dow combines the power of science and technology with the Human Element to passionately innovate what is essential to human progress

6 One example Edison Gold Award for Best New Product DOW TM POWERHOUSE TM Solar Shingle hailed as one of 50 Best Inventions of 2009 by Time Magazine Now commercially available in select U.S. markets

7 Culture we are creating at Dow A poem is never finished it is just abandoned Paul Valery - French Poet

8 Have you ever wanted a day. Just How You Planned It?

9 What if every person said I Need to Do Something

10 How this dream was born Significant Epiphany

11 I began to ask myself Why not something different? CULTURE Change 2 things 1 2

12 Culture change - a compelling purpose Compelling Purpose Leadership 1 2

13 So here s where it started 10 Years Ago Now

14 But even through all of that... Voice in the Wilderness

15 Large International Company External Validation Breakthrough Meeting

16 Culture Change: New Ideas Spread Slowly Dream was Born Break through Meeting CEO Elevates Reliability Enterprise Reliability Culture Change HRO HRO Principles Principles Reliability IT Project Join Efforts Awareness and Teaching

17 Teaching the Principles Group Teach Cross Functional Participants Self Discovery Everybody s Job

18 Teaching the Principles 10,200 Employees 1,600 Leaders 100% Pull

19 Awareness Video Series Awareness Video Series Conversatio n Starters 5 minutes or less

20 The Journey Begins Formula 1 Racing Analogy Manufacturing Leaders Single Failure = Lose Race Connection to Safety Culture No One Person Responsible

21 The Formula for Success Case for change How leaders can change their organizations 5 Principles of HRO s

22 The New Frontier Safety in the Earlier 1900 s Cultural Revolution Conditions Before Event Berkeley and University of Michigan What would you have done in 1912? Principles of HRO s - New Frontier What will you do now?

23 Change Management Don t Under Estimate the Power of Short Video Messages and Group Learning

24 Faced with the challenge Challenge HRO Not Tagged Just Another Initiative

25 I am Responsible for... Safety Product quality Reliability

26 Tools and Processes I need to do Something Talk about it all the time Engage People Outside of the Reliability Community

27 Beginning of Meetings HRO Moment

28 What issues do you see? Broken Insulation strap Potential Cut? Valve wrench hanging on valve not secured can the wrench fall and hit someone? Broken support what damage can one broken support do? Insulation barrier missing corrosion opportunity? Broken Conduit what if the wires break? What control will be lost? DOW RESTRICTED - For internal use only

29 Operator Reliability Focal Points Volunteer Operators Aligned to Specific Equipment Accountable for Reliability DOW RESTRICTED - For internal use only Ownership and Personal Development

30 HRO Principles Analysis Apollo Root Cause with HRO Behaviors HRO Principle Before Event During Event After Event Preoccupation with Failure Some Behaviors Demonstrated Behaviors Demonstrated Behaviors Demonstrated Reluctance to Simplify Lacked HRO Behaviors Behaviors Demonstrated Behaviors Demonstrated Sensitivity to Operations Some Behaviors Demonstrated Behaviors Demonstrated Behaviors Demonstrated Commitment to Resilience Some Behaviors Demonstrated Behaviors Demonstrated Behaviors Demonstrated Deference to Expertise Some Behaviors Demonstrated Behaviors Demonstrated Behaviors Demonstrated DOW RESTRICTED - For internal use only

31 Resolve Adverse Conditions Everyday How does The Perfect Day Look? What Conditions Might Impact This? Is the Abnormal Now Normal? Leadership support is critical Have you looked inside your computer lately? DOW RESTRICTED - For internal use only

32 From Dream to Operational Priority Vision of Manufacturing Changed a Company Vision of Maintenance Changed Manufacturing Vision of one Leader Changed a Business DOW RESTRICTED - For internal use only

33 Senior Executives Visible Champions EH&S is the number one priority and reliability is priority number two Reliability today means much more than yesterday the bar is higher. to get to the next level of reliability we need engagement of all employees. Now is the time to truly elevate Dow s reliability in meeting our commitments DOW RESTRICTED - For internal use only

34 Vocabulary of Company is Changing Corporate Shuttle Leader Messages Daily References HighROAD Calls DOW RESTRICTED - For internal use only

35 Enterprise Reliability Group Kickoff Launched 2011

36 5 Strategic Pillars - Stakeholder Commitments

37 Summary I Need to do Something A Reason to Care Learn and Teach Patience

38 Summary A New Journey is Just Beginning HRO From Dream to Corporate Priority

39 Questions

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