THE NEXT EVOLUTION IN EHS

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2 THE NEXT EVOLUTION IN EHS

3 Extracting much greater value from your investment in safety: safeguarding lives assets and reputation Brian Kraus Global Managing Partner, Safety Transformation ERM The world s leading sustainability consultancy

4 ERM Leading consultancy providing environment, health, safety, process safety and social services for over 40 years. Safety at the heart of the services we provide and how we operate our business. Helping clients take their safety performance to the next level by maximizing the value they derive from their established investment in safety - safeguard lives, assets and reputation. 150 offices in 40 countries > 4,500 professional staff Completed projects in > 160 countries 9 The Business of Sustainability

5 Safety leadership and front line performance Leaders Behaviors, Culture they Create, and Processes they use Behaviors of Personnel on the Front Line 10 The Business of Sustainability Risk Control/ Incidents and Accidents

6 Safety leadership and front line performance Leaders Behaviors, Culture they Create, and Processes they use Behaviors of Personnel on the Front Line 11 The Business of Sustainability Risk Control/ Incidents and Accidents

7 Behavior Behavior = Thought + Action We can only change how people act if we get them to think differently 12 The Business of Sustainability

8 Culture Behavior = Thought Thought + Action 13 The Business of Sustainability Organizational culture represents the collective values, beliefs and principles of organizational members

9 Safety processes 14 The Business of Sustainability

10 Permit to Work Processes Audit Incident Investigations Performance Reporting Safety Training Town Halls Site Safety Induction Videos Tool Box Talks 15 The Business of Sustainability Leadership Field Engagements

11 Question 1 What percentage of total labor costs is focused on safety related processes and programs? 16 The Business of Sustainability

12 Question 1 What percentage of total labor costs is focused on safety related processes and programs? What percentage of this total effort really impacts how people think... to the point where it will really impacts their actions? 17 The Business of Sustainability

13 Safety Processes and Programs 18 Established safety processes and programs account for ~20% of labour costs. There is little appetite for new processes. Processes naturally and quite quickly decay into tick box approaches because of repetition. As little as 5% of the resources expended on established safety processes impact behaviors and therefore performance. Only leaders can breathe life into their processes. The Business of Sustainability Townhall meetings Permit to work Last minute risk assessment Refresher Training Safety Metrics and Reporting Toolbox Talks Incident investigation Alerts Induction Meetings Leaders walkabout Audit program corrective action

14 Breathing Life into Core Safety Process 19 Tension arising from how the brain handles repetition (subconsciously) and the intent of the process (conscious, mindful engagement with the hazards) Only have a crucial role to play in breathing life into the processes Safety need to demonstrably crucial for them They need to understand the practical actions they can take: high impact engagement techniques Mostly about leaders engaemnts in the field, but 70-80% of leaders engagements in the field deliver the wrong outcomes The Business of Sustainability Townhall meetings Permit to work Last minute risk assessment Refresher Training Safety Metrics and Reporting Toolbox Talks Incident investigation Alerts Induction Meetings Leaders walkabout Audit program corrective action

15 Equipping leaders to move from A to B Teach leaders to observe hazards, risk, behaviours and culture teach them to see differently Teaching leaders high impact engagements techniques to change behaviours: changing how people think and act Field guides pictures Coaching style engagements using questions to cause people to think differently Coaching style engagements to get people to engage differently B B 20 Challenge and coach people to engage differently With each other With the processes (tool box talks, PtW Having fun! The Business of Sustainability A

16 Safety performance Performance improvement only if people on the frontline behave differently => THINKING differently so they ACT differently. Safety processes and programs a massive investment for organisations which are yielding little value. Delivering sustained shift in performance requires a different sort of engagement with the processes FLLs and their bosses up the line have a crucial role in breathing life into the processes 21 The Business of Sustainability

17 Safety performance Extracting much greater value from your investment in safety: safeguarding lives assets and reputation 22 The Business of Sustainability

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19 The Next Evolution in EHS Presented by Kristen J. Bell, Founding Partner Krause Bell Group 2018 Krause Bell Group All rights reserved.

20 We are seeing Increasing willingness to make safety an integral part of a business improvement strategy Krause Bell Group All rights reserved.

21 This opportunity won t last forever Krause Bell Group All rights reserved.

22 Safe Decision Making as a Strategy for Accelerating Safety Performance Improvement A Safety Innovation Group Organized by Krause Bell Group and ORCHSE

23 Objectives of the Study To Discover: 1. What is the role of decision making in SIFs? 2. Who makes critical safety decisions? 3. What does safe decision making look like? 4. What role does bias play? 2018 Krause Bell Group All rights reserved.

24 The Approach 16 total organizations, 60 total incidents, 600+ safety-related decisions Investigation reports Interview transcripts Live interviews 2018 Krause Bell Group All rights reserved.

25 SIF Event: Worker falls from a scaffold at 15 feet and suffers head trauma Krause Bell Group All rights reserved.

26 Finding: Managerial decisions matter 92% of pivotal decisions leading to SIFs were made above the front line. 18% corporate. 74% site-level management. 7% front line supervisor. 1% front line employee Krause Bell Group All rights reserved.

27 Pivotal Decisions by Site-Level Managers Managing Change Purchasing Designing Facilities & Work Managing Projects Problem-Solving / Trouble-shooting Selecting & Assigning People 2018 Krause Bell Group All rights reserved.

28 Pivotal Decisions by Corporate Managers Managing Change Purchasing Designing Facilities & Work Managing Projects Understanding & Responding to Risk Selecting & Assigning People 2018 Krause Bell Group All rights reserved.

29 Pivotal Decisions by EHS Function SMS Implement n Purchasing Training Design SMS Design Risk ID Advice Risk Mitigation Advice Selecting & Assigning People 2018 Krause Bell Group All rights reserved.

30 What we can do 1. Educate organizations about the importance of decision-making to safety, starting at the top. 2. Help them develop a strategy to improve: Which are the pivotal decisions? Who is making them? When are they occurring? What tends to go wrong? 3. Practice excellent decision hygiene 2018 Krause Bell Group All rights reserved.

31 Finding: Safe decisions are undermined by error traps and biases. At least 85% of decisions were affected by cognitive bias Availability Bias Overconfidence Bias Confirmation Bias Status Quo Bias Categorical Thinking Anchoring Inattention Blindness Sunk Cost Bias Underestimation of Risk Normalization of Deviance Cognitive Illusions 2018 Krause Bell Group All rights reserved.

32 Tips for better decision hygiene Get the best information you can. Always be curious Ask great questions. Seek contradictory, not confirming evidence. Keep your cortex engaged. Train your brain to spot bias, recognize changing risk, and anticipate error traps. Practice decision-making! 2018 Krause Bell Group All rights reserved.

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34 Safety 4.0 in the Industry 4.0 World Where Humans and Technology Meet at the Intersection of Exposure Donald K. Martin MPH CSP Senior Vice-President Campbell Institute Symposium Charlotte NC February 21, 2018 A safe world Slide DEKRA North America, Inc. or its subsidiaries. All rights reserved.

35 Slide DEKRA North America, Inc. or its subsidiaries. All rights reserved.

36 Industry 4.0 Slide DEKRA North America, Inc. or its subsidiaries. All rights reserved.

37 Safety Has Also Evolved Insurance Risk Loss Control OSHA Regulatory Compliance S&H Management Systems Leadership Culture Human/Technology Convergence s 1990s 2000s Today & Tomorrow Slide DEKRA North America, Inc. or its subsidiaries. All rights reserved.

38 Behavioral Science Applied BBS technologies work decrease accidents, improve culture Core group of active observers, frequent & specialized observations Real-time use of data Humans are still highly relevant!! Slide DEKRA North America, Inc. or its subsidiaries. All rights reserved.

39 Neuroscience Applied Fast-Brain/Slow-Brain Decisions Brain-Centered Hazards Operational Risk Alignment Individual Risk Processing Brain-Friendly Concepts Inoculate The Work Environment Slide DEKRA North America, Inc. or its subsidiaries. All rights reserved.

40 Technology in the Service of Controlling Exposure Data Science Make Work Safer Safety 4.0 Slide DEKRA North America, Inc. or its subsidiaries. All rights reserved.

41 Technology Is Our Friend Data Science Make Work Safer Voice to text Real-time actionable data Automatic data analysis Auto-updated dashboards Heat maps Geo-tagging hazards SOP on phone via barcodes Scatter plot charts SIF exposure imminent Slide DEKRA North America, Inc. or its subsidiaries. All rights reserved. Sensor technology for human-machine interface Wearable sensors Augmented reality training and scenarios Autonomous driving vehicles In-and-On vehicle technologies Drones and Robots Remote diagnostics, maintenance, repairs E-learning New Technology = New Exposures Anticipate & Control

42 SIF Exposure Control Is What Really Matters Non-Fatal Injury Rate Fatality Rate TRIR (per 200,000 hours) Fatality Rate (per 100,000 workers) Source: US BLS 2018 DEKRA North America, Inc. or its subsidiaries. All rights reserved.

43 What does this mean for us? Humans are still highly relevant!!! BBS still works, and we have lots to learn and apply in neuroscience Data and technology enable us to work the right problems, and focus on the exposure rather than the person This is our breakthrough for solving the SIF dilemma Our next big frontier in safety Slide DEKRA North America, Inc. or its subsidiaries. All rights reserved.

44 Thank you! DEKRA North America, Inc. or its subsidiaries. All rights reserved.

45 2018 DEKRA North America, Inc. or its subsidiaries. All rights reserved.

46 What Can Leaders DO? Moving from knowledge to empowerment to enabling Rob Fisher President, Fisher IT, Inc Copyright Fisher IT, Inc. All Rights Reserved

47 Copyright Fisher IT, Inc. All Rights Reserved

48 Copyright Fisher IT, Inc. All Rights Reserved

49 Get Those Leader Knowledge Workforce Language & Behaviors Gears Turning! Leader Language & Behaviors Better Outcomes Culture Values Norms Copyright Fisher IT, Inc. All Rights Reserved

50 Using a Systemic Approach People People do what Equipment Programs they do, at the time that they do it, for reasons that Organization Processes make sense to Work Environment them at the time* * Sidney Dekker The Field Guide to Understanding Human Error Copyright Fisher IT, Inc. All Rights Reserved

51 Using a Systemic Approach People The Hierarchy of Equipment Programs Inputs different people with Organization Processes different personalities see and manage risk Work Environment differently* * Equilibria Personality Tendency Impact Research, 2004-Present Copyright Fisher IT, Inc. All Rights Reserved

52 Leaders tend to rate peoples bad decisions on two things: 1) I wouldn't have made that decision and 2) They knew better Copyright Fisher IT, Inc. All Rights Reserved

53 The Essential Leadership Cycle Learning & Continuous Improvement Equipment Self & Team Awareness People Programs Shared Vision & Values How an organization controls and manages the task based system Accountability Clarity of Roles & Processes Organization Processes Commitment Work Environment Trust Diversity & Inclusion Copyright Fisher IT, Inc. All Rights Reserved

54 Essential Leadership Cycle Learning & Continuous Improvement The Reality of it All Self & Team Awareness Shared Vision & Values Accountability Clarity of Roles & Processes Commitment Trust Diversity & Inclusion * ORCHSE / Bell Group Serious Incident Assessment Copyright Fisher IT, Inc. All Rights Reserved

55 Using the Essential Leadership Cycle to control outcomes Learning & Continuous Improvement Self & Team Awareness Shared Vision & Values DRIVING ELEMENTS Accountability Clarity of Roles & Processes RESULTANT CONDITIONS Commitment Trust Diversity & Inclusion Copyright Fisher IT, Inc. All Rights Reserved

56 Get Those Gears Turning! Knowledge Self & Team Awareness Workforce Language & Behaviors Leader Language & Behaviors Shared Vision & Values Better Outcomes! Trust Diversity & Inclusion Commitment Accountability Learning & Continuous Improvement Culture Values Norms Copyright Fisher IT, Inc. All Rights Reserved

57 3 Things To THINK About If Deming, ORCHSE / Bell Group and the other speakers are right Leader decisions & behaviors have more impact on SIF than worker behaviors Personality tendencies have a lot to do with risk perception and management There is a difference between empowering and enabling To CHANGE Base leader behaviors and decisions on science, data and research Be aware of your team and engage to determine values matches rather than just observing for rule deviations Follow cycles and processes when leaders follow processes, workers follow processes Copyright Fisher IT, Inc. All Rights Reserved