From great to greater getting it right with corporate safety governance. Vincent Ho, PhD June 2016

Transcription

1 From great to greater getting it right with corporate safety governance Vincent Ho, PhD June /22/2016 Page 1

2 Contents Overview of MTR Corporate Safety Governance Our Challenges Our Roadmap Looking ahead 6/22/2016 Page 2

3 Where is Hong Kong? 6/22/2016 Page 3

4 Hong Kong or not? 6/22/2016 Page 4

5 Rush Hours in Hong Kong Hong Kong Hong Kong 6/22/2016 Page 5

6 Overview of MTR 港鐵公司 2016/6/22 Page 6

7 MTR s Hong Kong Transport Operations Heavy Rail Airport Express Intercity Light Rail Bus Disneyland Resort Line NP360 Cable Car 6/22/2016 Page 7

8 MTR in Hong Kong We carry more than 5.5 million passengers every weekday in Hong Kong 6/22/2016 Page 8

9 Our Vision We aim to be a leading multi-national company that connects and grows communities with caring service Beijing Metro Line 4, 14, DXL MTR Crossrail Shenzhen Metro Longhua Line LOROL Hangzhou Metro Line 1 MTR Express MTR Stockholm Metro Trains Melbourne 6/22/2016 Page 9

10 MTR Presence Outside of Hong Kong 137k Crossrail 118km Stage 0 (32.5km) 31 May 2015 London Overground 462 k 167 km West Anglia Transfer 31 May 2015 To commence in Dec 2016 Stockholms Pendeltåg 241km 1.19mil 2k Stockholm Metro 110km MTR Express 455 km Hong Kong s Metro System 5.56 mil 221 km Beijing Metro Line 4 Daxing Line, Line 14 & Line 16 Ginza Mall & Paseo Mall PPP 1.44 mil km 260 k sqm Tianjin Property Beiyunhe Station Hangzhou Metro Line 1 472k 53.7 km PPP PPP Shenzhen Metro Line 4 Longhua Depot Lot k sqm 527k 20.5 km 206 k sqm End of 2015 Employees Railway Patronage per Weekday Route Length Currently Under Development Property Investment Property Hong Kong ~17,000 >5.56 mil 221 km 1,631k sqm 267 k sqm China & Int l ~19, mil 867.5km * 485 k sqm 30 k sqm Sydney Metro Northwest 36 km PPP Melbourne Metro 801 k 390km Operational in 2019 * If the future opening lines are also included, the total route length will reach 1,283.5km. MTR Express 455-km route length is based on an open-access track, with this included the total route length served by MTR C&IB will be 1,738.5km in total. 6/22/2016 Page 10

11 Performance of MTR s Business Segments 6/22/2016 Page 11

12 35+ Years of Serving Hong Kong Established in 1975, listed in 2000, government maintains ~76% shares Commercially prudent Weekday patronage: 5.5million Share of Franchised Public Transport: 48.5% Currently building 4 new lines expanding the current network Best-in-class rail performance per international benchmark Strong non-fare revenues Contactless smart card - Octopus Property Development and Property Management Consultancy services Training MTR Academy Unlike most metro operators, MTR also build railways, develop and manage property projects, operate non-fare services, and expand globally 6/22/2016 Page 12

13 Corporate Safety Governance 港鐵公司 2016/6/22 Page 13

14 What Safety Governance is about? CEO of a multinational company Am I confident that my operations around the world are all safe? A train driver in city X Governance is the system by which organisations are directed and controlled by their directors Texting while driving 6/22/2016 Page 14

15 Characteristics of Top Management Exercising Sound Corporate Safety Governance (CSG) Set safety objectives, safety strategic direction, and safety key performance indices Maintain oversight on internal controls Review safety performance against defined accountabilities Ensure availability of resources, define boundaries & respective authorities Ensure communication channels in place are effective Ensures obligations to stakeholders / shareholders are met Actively Lead by example 6/22/2016 Page 15

16 Styles of Governance Helicopter/Watchdog mode Caretaker/Trustee mode Driver/Pilot mode Source: Arthur D Little There is no absolute best style, some companies adopt multiple styles Each style has its pros and cons, and different levels of involvements Good safety performance can result from any style A company usually displays a style that reflects the mind-set of the Board but may not be aligning to its particular needs 6/22/2016 Page 16

17 Simply Speaking, Corporate Safety Governance (CSG) is The checks and balances that a company puts in place to ensure that Safety is properly managed at all levels in the interests of all stakeholders Safety systems are in place at business units meeting corporate requirements and allowing effective oversight The company is ahead of competitors through continuous improvement in safety Safety governance is distinct from safety management 6/22/2016 Page 17

18 Corporate Intervention A Simple Two Dimensional Model to Compare CSG Effectiveness Review and approval of safety plans Audit, incident reporting, review Investigation by a corporate team Provisions of safety training Appointment of management rep Source: Arthur D Little Corporate safety policy Reporting of performance Specification for structure of a SMS Detailed standards set by corporation Corporate Requirements Req. to comply with external standards Goals developed in line with corproate model Most companies tend to think they have a balanced CSG approach 6/22/2016 Page 18

19 Corporate Intervention If you run MTR, where will you want to be on this chart? Corporate Requirements 6/22/2016 Page 19

20 Corporate Intervention How does MTR position itself in CSG? Sector New Rail Lines 4 Transport 2 Rail Property Source: Arthur D Little Energy Construction Food Corporate Requirements We tend to have more intervention (review, audit, board meetings) than average, and apply fit-for-purpose CSG style to businesses 6/22/2016 Page 20

21 LTI per million hours worked Benchmarking on Customer/Public and Workforce Safety Performance amongst international railways Staff Safety in terms of lost time injuries per million hours worked MTR safety performance is amongst the very best in the world 6/22/2016 Page 21

22 We have been doing Great (I think) How did we do it? 港鐵公司 2016/6/22 Page 22

23 MTR Corporate Safety Governance Framework 6/22/2016 Page 23

24 bsolute Pre-requisite AKeeping safety-first in our hearts and minds and in everything we do. L Learning E a MTR Safety Values earning and Sharing Sharing lessons learned and knowledge across our businesses. from other railways and industries to seek continuous improvement. xcellent Performance Always being committed to improving safety performance and not being complacent. Setting high safety standards and, as minimum, meeting or exceeding statutory requirements. esponsible Citizen Being a responsible corporate citizen caring for the safety of stakeholders. RListening and responding to the safety needs of communities and stakeholders. otal Commitment and Ownership Safety is everyone s responsibility and must be ingrained in our DNA. Safety Tmanagement is the responsibility of each director, manager and supervisor. 6/22/2016 Page 24

25 MTR Safety Aspirations 6/22/2016 Page 25

26 Strategic Approaches to Achieve our Safety Aspirations Corporate Safety Management Model 6/22/2016 Page 26

27 We do have our own challenges 港鐵公司 2016/6/22 Page 27

28 MTR Expansion to Overseas LOROL BJL4 MTRS MTM ELL-P1 DXL SZL4-P1 ELL-P1A SZL4-P2 MPD MPS ELL-P2 HZL1 BJL14-P1 CTGT MTS BJL14-P2 MTR- Express CrossRail BJL16-P1 MTRP CFM W. Angelia To date, MTR has transport and property operations in nine cities, four countries, three continent 6/22/2016 Page 28

29 Safety Challenges Each business unit has its own local culture, while under one umbrella of safety governance Complex nature and diverse locations of business China Beijing, Shenzhen, Hangzhou Europe London, Stockholm Australia Melbourne, Sydney Pressure and focus in business, timeline and resources Internal/ external safety standards and requirements Maturity level and social settings Levels of expectation Contractors safety awareness Universal response when addressing CSG req t: This is not HK, we do things differently We don t have the time, money or resources This duplicates our local processes Workers are uncooperative Don t bother me with these safety stuff, I need to meet business targets 6/22/2016 Page 29

30 Hierarchy of Subsidiaries Response to CSG Requirements Fight it Ignore it Hide it Delay it Too chaotic to enforce it Other people s problem Resent it come up with its own solution Team up with local Do it Love it (??) 6/22/2016 Page 30

31 Our roadmap to make them Love it Fostering a Pan-Corporate Learning and Sharing Culture 港鐵公司 2016/6/22 Page 31

32 Simplifying CSG Framework for Project Life Cycle Yr-1 Yr-2 Yr-3 Yr-4 Yr-5 Yr-6 Preparation Phase Operational Phase Day-1 Cycle repeats Cycle repeats Pre-operations Safety Assessments Integrated Safety/ Operations Review CSG Audit Integrated Safety/ Operations Review Pre-Operations Safety Assessment on major system changes Routine Safety Reporting and Notification on Signification Safety/Operational Incidents 2-2 Framework: Intervention on a fit-for-propose basis 6/22/2016 Page 32

33 Integrated Safety/Operations Review (ISOR) A structured, scalable framework for Peer Review, which first took place in 2012 Objectives of ISOR Identify good practices to be shared between Businesses Identify areas to further improve operations Safety Management of operational and system safety Asset Management Efficient and effective management of railway assets Operating Management of performance against operational objectives Participants of ISOR Heads of discipline in Safety, Operating, and Asset Management from each MTR Business Unit Local regulators and business partners are welcome Skeptical at the beginning but everyone loves it now 6/22/2016 Page 33

34 Safety Performance of Subsidiaries/Affiliates 2.7% vs % vs 2012 First Peer Review 6/22/2016 Page 34

35 Sophistication in SMS and Culture Safety Management Maturity Model that Allows Business Unit to Chart its Own Pace Best in Class Ultimate positions 6 BU A BU B BU- C Average 4 Point-Scale Startup Service Year It takes time to build castles, Rome was not built in one day So does SMS 6/22/2016 Page 35

36 Plan and Gauge SMS Maturity Rate We apply a 6-point scale to give flexibility to businesses, and encourage business units to learn from each other 6/22/2016 Page 36

37 Sharing of Good Practices The Journey of MTRisation We aim to be influential, not dictating 6/22/2016 Page 37

38 Corporate Portals for Safety Learning 6/22/2016 Page 38

39 Regular Benchmarking on Safety Topics and Sharing of Good Practices Benchmarking Topic 2009 CGI Compliance 2010 CGI Compliance C&IB Safety Performance Benchmarking 2012 CGI Compliance 2012 Benchmarking of Safety Performance 2012 Injury Reporting Criteria 2012 Audit Finding Categories 2012 Train Cab Door Interlocking Practice 2012 Safety Initiatives for Top Passenger Incident Categories 2012 External Certification Status 2012 Escalator Maintenance Management 2012 SWOT Analysis 2013 Passenger Accident Reporting Mechanism 2013 CGI Compliance 2013 Benchmarking of Safety Performance 2013 Falling Objects 2013 Unauthorised Train Movement Under Manual Mode 2013 Handling of Intoxicated or Disorderly Person 2013 Practice in Preventing the SNCF Accident ( ) 2013 Control And Prevention of Avian Flu in China BU 2013 Injury Reporting Criteria 2013 Suicide Prevention and Unauthorised Track Access 2013 External Certification Status 2013 Protection against Train Derailment due to Overspeed 2013 Change Management 2013 Safe Use of Mobile Phone while on Duty 2014 Crisis Management 2014 Safety critical operations under which the staff / contractor should be prohibited from using mobile phone during such operation 2014 Injury Reporting Criteria 2014 Benchmarking of Safety Performance 2014 CGI Compliance 2014 Train Door/PSD Gap 2014 Safety Training Requirements 2014 Adverse Weather related arrangement and control measures 2014 Risk management of interfacing works on operating railway and C&R works / new railway and extension project 2015 Tunnel Fire Emergency 2015 Driver fit for duty 2015 Crowd management (Public panic or disorder) 2015 Assault 2015 Escalator - safety feature 6/22/2016 Page 39

40 Share Lessons Learnt from Worldwide Incidents and Accidents Published at MTR Connects website 6/22/2016 Page 40

41 Sharing of Pan-Corporate Safety Promotion Initiatives 6/22/2016 Page 41

42 Looking ahead 港鐵公司 2016/6/22 Page 42

43 Food for Thought and Takeaway Effective Safety Governance depends on the company s growth and development, the nature of the industry, local legal requirements/standards, culture, and preference Companies can put in place different levels of controls and requirements across different business units, aligning to its particular needs Effective CSG can be fun and enjoyable by businesses There is no magic bullet. A fit-for-purpose CSG model can help your company to excel 6/22/2016 Page 43

44 Food for Thought and Takeaway Enhance Risk Awareness, Foster Learning, Prevention Culture 6/22/2016 Page 44

45 港鐵 MTR 心繫生活每一程 Caring for Life s Journeys Thank you! MTR Page 45 Corporation Limited 港鐵公司 6/22/ /6/22 Page 45