Contractor Safety Performance -
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1 Contractor Safety Performance - Maximizing Your Influence Insert then choose Picture select your picture. Right click your picture and Send to back. Copyright 2018 by ERM Worldwide Group Limited and/or its affiliates ( ERM ). All Rights Reserved. No part of this work may be reproduced or transmitted in any form or by any means, without prior written permission of ERM.
2 Contents Getting Organized Understanding the business need for contractors and where you want to go Managing contractors and performance challenges Setting expectations and goals Leadership Importance of leadership Making work practices sustainable Maximizing your influence Looking at success Building the Basics Embedding safety into all stages Influencing safety performance Building competencies and capabilities What does success look like?
3 More Relevant Than Ever in NorCal 3 Businesses are growing and the economy is on a tear Construction is booming Companies are growing Increased outsourcing Different models for outsourcing (consolidation) The global REFM outsourcing market remains healthy and continues to grow. A high number of end-user organizations today, especially larger firms in western markets, have already undertaken some level of REFM outsourcing, even if it has been to outsource a few services (e.g., janitorial, cafeteria, and amenities services). Leading organizations continue to move more and more to an Integrated Facilities Management model. * Source: 2018 Global REFM Outsourcing Pulse Survey, KPMG
4 A typical major project and its HSE challenges Company (many parts with a common goal, but usually competing objectives, rewards, etc.) Contractor Contractor Several EPC Contractors Contractor PMC Potentially Several PMCs Pre-FEED FEED Detailed Design Construction Commissioning Operations and Maintenance Operations and Maintenance Feasibility of selected concept Defining HSE Philosophies for FEED (ESD, Relief/Blowdown, Fire Protection, etc.) Facility siting Segregation of process units Other layouts (e.g. safety equipment, escape routes) Initial design Initial consideration of design operability (HAZOP) Understanding HSE Critical Equipment and Systems (HSECES) Initial performance requirements for HSECES Update HSE Philosophies for DD Detailed design Adequacy of detection, shutdown, blowdown systems Passive / active fire protection systems Sufficiency of layers of protection Material selection Detailed specifications for HSECES Constructability Operability Maintainability Management of Change HSECES integrity assurance (QA/QC) from vendor selection through to equipment installation Management of Change Simultaneous Operations (in terms of Occ. Safety) Emergency Response (in terms of Occ. Safety) Precommissioning HSECES integrity assurance QA/QC Management of Change Simultaneous Operations (not just Occ. safety) Emergency Response (not just Occ. safety) Asset integrity Management of Change Simultaneous/ Concurrent Operations Emergency Response Asset integrity Management of Change Simultaneous/ Concurrent Operations Emergency Response 4 Unclear Process Safety direction/ plan How to achieve Sustainable Safety in such a complex system? FEED contractor to several EPC contractors Large change in EPC contractor teams significant ramp up in construction staff numbers Change in EPC contractor teams - progressive reduction in construction resources Transition to smaller O&M team Company focus changing from mega-construction to major hazard operations
5 Getting Organized What is the baseline and where do you want to go?
6 What is your baseline? How are you using 3 rd party contractors? What business processes do you have in place? How do you manage these contractors? What are your expectations for contractors? How does contractor performance impact your core business? 6
7 Contractor safety performance affects your business Operational efficiency Asset integrity Morale Reputation / license to operate
8 Typical measures to manage contractor safety Safety Qualification & Selection Criteria Contract Terms Induction / Onboarding Monitoring, Inspection, Enforcement & Discipline Safety Rules & Procedures Are you able to get the maximum value from your investments in contractor safety? Click to continue
9 Why is contractor safety management challenging? Language Barriers Delivery Pressure / Long hours Safety Qualification High Disconnects & Selection Risk Criteria Jobs (Procurement & Ops) Turnover (Unclear or Misaligned) Induction / Onboarding Contract No Direct Terms Oversight or Control Expectations Remote Monitoring, Locations Inspection, Enforcement & Discipline Safety Rules & Procedures Culture Differences Lowest Cost Contracts Skill / Experience Gaps Click to continue
10 What are your short and long term goals? Based on your understanding of business drivers and current performance: What are your risk and opportunity Paretos telling you? What is the tolerance/ appetite for risk by your stakeholders, by your decision makers Workshops driven by data to achieve consensus and ownership Set achievable short and long term goals 11
11 Leadership The importance of leadership and how to maximize your influence
12 Achieving performance in a complex system Behaviour and performance are driven by culture Leadership directly influences the systems AND culture (via visible commitment and actions of leaders at all levels) PROCESS drives Behaviour drives Performance 13 PEOPLE LP PLANT CULTURE LEADERSHIP A safe organisation or project occurs at the intersection and self sustaining overlap between people, process and plant
13 Moving towards Sustainable Safety with ERM 15 Assessment Sustainable Safety performance by creating a positive culture based on engaged leaders and robust technical systems and studies. We: Understand the process safety and personal safety risks that need to be managed Develop a compelling vision LEADERSHIP for a safe project and operations SPOKEN & VISIBLE Establish risk-based focus areas using our technical expertise Define leadership focus, skills and strategies to drive the journey of change in terms of meeting the overall vision and coaching in focus areas Support technical assessments with discipline specialists Risk Learning & Improvement Safety Critical Tasks LEADERSHIP SPOKEN & VISIBLE Communication Processes & Procedures Communication Manpower Planning Processes & Procedures Manpower Planning Management of Change Human Machine Interfaces Management of Change Human Machine Interfaces Competence Assurance Job Roles & Leadership
14 Benefits of adopting Sustainable Safety Safer organisation or project Decrease project variances Decrease cycle time and budget risk Decrease shutdowns and retrofits Fewer process safety incidents Fewer injuries and fatalities More engaged and integrated workforce LEADERSHIP SPOKEN & VISIBLE Communication Processes & Procedures Manpower Planning Management of Change Human Machine Interfaces 16
15 Example Sustainable Safety activities LEADERSHIP Leadership Competence Assessment for Project Managers Stakeholder Leadership Strategy Planning (defining leadership vision,expectations, behaviours and SOPs) Train-the-Leader on Safety Leadership Skills (Safety Leadership Training) & Coaching for Leadership Impact and Focus in key technical focus areas Define leadership safety performance leading KPIs TECHNICAL Development of HSE Competence Assurance Framework for all levels & stakeholders Development of management systems including policies, philosophies, standards, procedures & Manpower needs analysis Formal & informal safety assessments & interactions including HAZID, HAZOP, QRA, SIL, Construction, Behavioural Quality etc. Human factors engineering & critical task analysis / measurement Information Solutions & Analytics of Critical Risks (Human & Process based) 17
16 Maximizing influence Positive and impactful interactions and engagement by all All interactions and engagements driving towards same safety expectations
17 Maximizing influence Every interaction you have with a contractor is like a vector: it has magnitude and direction. How many interactions are you having? How are those interactions impacting your contractors? CURRENT Safety Outcomes DESIRED Safety Outcomes 19 Click to continue
18 Maximizing your influence: (non) engagements If You don t go in the field to observe your contractors work Then You are probably not really interested You go in the field, see the hazards, but don t recognise the risks You recognise the risks, but don t interact You accept the risks and set the standard You interact by telling what is wrong You don t learn anything about the cause You are asking questions and try to understand causes You will understand and can coach the team to find solutions 20
19 Maximizing influence Increase the number of engagements on safety Amplify the magnitude = more impact from your engagements Vectors all pointing in the right direction: being much more conscious of the impacts you do have 21 CURRENT Safety Outcomes Become the DESIRED Safety Outcomes DESIRED Safety Outcomes Click to continue
20 Safety interactions with impact Take time to observe and use the power of teamwork Contractors Recognize good practices Coach your leaders to identify risks and potential consequences Coach them to engage to understand and to set the standard Set the expectation that people will watch out for each other YOU Field Supervisor Contractor 22 Build a culture of confidence, trust and a safer work environment for and with contractors
21 Tailoring Your Audits Balance records review and documentation, time in the field observing, and discussions with stakeholders to gain a deeper understanding Targeted audits with deep dives into select programs, processes, organizations Participative audits with non-ehs stakeholders Increase level of engagement Increase sense of ownership Increase safety awareness and competencies
22 Building on the Basics Understandings, and Competencies
23 Embed Safety into Each Stage of Contractor Management Qualify Establish minimum safety requirements for contract companies. Select Assess competency, culture and risk management: capabilities to perform work in accordance with standards. Contract & Plan Embed safety expectations into contract terms. Develop project safety planning tools for accountability. Induct / Onboard Communicate vision, values, expectations and standards to plan, setup and execute work safely. Execute Engage in the field, identify and mitigate hazards, and monitor safety performance. Close-out Conduct post-job safety evaluation, provide feedback. Incorporate learnings into future plans & contractual tools.
24 Understanding Your Leverage LOST SAFETY INFLUENCE POTENTIAL Qualification Selection Contract & Plan Induct / Onboard Execute Close out Safety performance influence: Use it or lose it
25 Key factors influencing contractor safety performance #1 Ensure contractor management processes holistically address safety
26 Key factors influencing contractor safety performance #2 Enable co-ordination and alignment between Procurement teams Contract holders Operational and executive leaders Contractors.
27 Key factors influencing contractor safety performance #3 Transform interactions and engagements to maximize your influence at every stage
28 Building Competencies Do you and your contractors know what safe looks like? Do you and your contractors know what to do to mitigate the identified hazards? Am I engaging learning in a positive and encouraging way? Remember: There is no substitute for competence 30
29 Build capability: Critical hazard field guides 31
30 Reinforce Learning: Field Cards 32
31 Case Study Situation: A client was undergoing a campus expansion. Contractor pull and their internal project teams rapidly grew to meet the demands. Despite having good programs in place, the rapid growth contributed to a rise in safety incidents. Approach: ERM completed a gap assessment of the company s leadership, culture, management, and programs. Results pointed towards improvement in the company s contractor management culture. ERM worked closely with their facilities team and their general contractor s field management. (Supervisors, field engineers, and foremen) to bridge gaps and reduce safety incidents. Key Focus Areas: 1. Evaluate compliance, asses risk, and correct construction safety concerns 2. Coach the company s facilities team in hazard identification and how to better identify and track specific high-risk activities during construction work 3. Evaluate current processes, identify gaps, and assist in refining their contractor safety programs 4. Combine training and in-field coaching to induce behavioral change Benefits: Training and field coaching increased awareness of safety measures and earlier identification of high risk activities through their Work Authorization program. Created a shift towards a more open relationship between the client and contractors. This has lead to more reporting and shared learning as evidenced by the increased use of their work authorization program and their reduction of incidents/injuries.
32 What does success look like? 34 Key processes and plans are in place: Usable and fit for purpose From stop-work to don t start work authority They do not sit on a shelf Key stakeholders understand their roles through effective training, and reinforced with meaningful interactions Leaders foster a dynamic team culture which supports safe values Meaningful engagements and coaching in the field by leaders Discussions not just telling them when something goes wrong Building a team that truly cares about their teammates safety Recognize great results!
33 What does success look like? Procurement operates in service of the project safety vision; e.g. partnership in tendering, procurement and performance management Establish and preserve an effective culture through phase transitions (e.g. from Client to FEED Contractor, back to the Client, then EPC Contractor(s) etc.) Effectively on-board a rapidly growing and evolving design and construction team from different backgrounds, speaking different languages working with new management and supervisory teams Use information management support to enable big data analysis and focused dashboard analytics for each project phase 35
34 Thank You! Questions and Answers Mike Lewman, Partner, Heather Davis, Principal Consultant, ERM
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