Utilizing the VPP Process to Achieve Operational Excellence through Leadership and Employee Ownership

Transcription

1 Utilizing the VPP Process to Achieve Operational Excellence through Leadership and Employee Ownership

2 Background Rob Hill NuStar Energy General Manager West Region 30+ years in leadership and technical roles Refining Director of Maintenance, Maintenance Manager, Inspection Supervisor Mechanical Integrity, Maintenance, Projects, Turnarounds, Reliability Technical and cultural leadership Two VPP Star Sites Liquid Terminal Storage General Manager of Operations, Area Manager HSE, Operations, Financial, HR, Engineering, Maintenance/Projects Leadership, cultural improvement, employee engagement and ownership Six VPP Star Sites

3 Audience Makeup How many first time attendees to a VPP Conference? How many have at least one VPP Star Site? How many have multiple VPP Star Sites? How many in a leadership or supervisory role?

4 The Journey to Excellence Operational Excellence SSRPO Bradley Curve Modified Approach Initial VPP Pre VPP

5 Pre VPP Production goals were often valued equal to if not greater than safety goals Safety and environmental incidents normalized as a part of doing business Safety performance was viewed as the responsibility of the Safety Department Little ownership at employee level and supervision more concerned with production Incentives and rewards to work safely were utilized to influence safety performance Often drove reporting underground to maintain record (Gift Cards, Rewards Programs) Emphasis on lagging indicator safety metrics Reactive and not much learning for near missses

6 Pre VPP Often the way we have always done it model Normalization of deviation Lack of critical thinking and risk analysis Reactive approach to hazard recognition Typically utilized following significant incidents 4 Limited preventive or proactive programs Punitive approach to unsafe behaviors Limited recognition for positive behaviors Drove reporting underground Management Systems developed by management and implemented by employees Expectations and accountability without ownership and authority Generally reactive culture

7 Initial VPP Efforts Early programs often initiated as a management systems that were expected to be implemented by employees Utilized a check the box approach to comply Often quickly implemented and lacked sustainability Primarily focused on occupational safety Lacked behavioral focus Created a positive shift in way of thinking Shift from reactive and unpredictable to more proactive and predictable Early supervisor and employee buy-in was difficult CAVE People Lacked complete buy-in at all levels

8 Initial VPP Efforts Susceptible to post certification let down Winning the Super Bowl effect Lack of sustainability led to resumption of many former practices False sense of arrival False assurance of safe workplace (Guaranteed incident free belief) Little incentive to continue to seek ways to improve further Process produced a positive change Increased employee empowerment and ownership Migrated the culture towards a more proactive approach Often remained a management system that was expected to be implemented by employees

9 A Model for Interdependent Culture Although the early VPP Process proved to provide a foundation for employee engagement, it did not feel like the employees had fully adopted the process Needed a strategy that would result in a culture of true employee empowerment, ownership and accountability Early VPP Process highlighted positive change with programs that engaged employees how do we continue to foster that across all levels of the organization and develop interdependent culture? The DuPont Bradley Curve provided a model to modify the culture from dependent to interdependent Sustainability required an overarching strategy that employees had a strong ownership stake in Employees would have to trust leadership and the process to achieve true ownership Leadership would have to be fully committed and trust employees to drive engagement, empowerment and ownership

10 The DuPont Bradley Curve as a Model As the curve suggests, culture moves from Reactive to Interdependent as employee ownership and accountability increase and outcomes become more predictable Reactive Lack of Mgmt support, Few established processes or programs (Instinct Driven) Safety Performance Injury Rate Weaker Culture Dependent Some Mgmt ownership, Rules and fear of reprisal (Supervisor Driven) Safety Culture Independent Employee ownership, Practices, Internalized value (Self Driven) Stronger Culture Interdependent Mutual ownership and accountability, High expectations where variances are not tolerated by team members (Team Driven)

11 Modifying the approach for NuStar s West Region Creating an overarching Strategy of Interdependent Culture and Operational Excellence Needed a strategy all employees could align around and bring a sense of ownership, empowerment, responsibility, accountability and authority Needed to modify the model to an an employee owned process that was supported by management vs a management process implemented by employees Sustainability required that employees and leadership jointly develop the process to foster trust and ownership Needed to be more than just safety environmental, reliability, customer service, community support through employee knowledge, empowerment and ownership Leadership Commitment Management at all levels needed to be visible, approachable and fully supportive Management required to empower employees turn over the keys so to speak to truly achieve an interdependent culture Foster a culture of teamwork absent of fear build trust and credibility Set clear expectations around what success looks like communicate often Recognize and celebrate positive behaviors and successes to support ownership

12 Modifying the approach to achieve Operational Excellence and Interdependent Culture Employee Engagement, Empowerment and Ownership Employees needed to be given authority and responsibility of processes Focus on the need for critical thinking and ability to analyze risk not just identify hazards Processes needed to be employee developed and owned Employees needed a voice to be accountable for results Employees must be given the tools, training and resources necessary to be successful

13 Solution: Safe, Stable, Reliable Operations that Result in Predictable Outcomes (SSRPO) Strategy Safe, Stable, Reliable Operations that Result in Predictable Outcomes (SSRPO) Leadership and employee alignment through joint definition and development of SSRPO Each job, task or decision should start with the end in mind 1 Ensure that we have the proper tools, parts, PPE, information, communication, resources and understand the risk and mitigation steps before we start Employees are empowered to make decisions and stop work if necessary All employees are equally accountable for success as well as failure (One Team) Leadership Commitment Senior leadership field visibility and support established as expectation (MBWA) Senior leadership expectation to be open and transparent with employees Employee feedback and ideas are valued and follow up is expectation Culture driven by core values of honesty, integrity, accountability, respect

14 Solution: Safe, Stable, Reliable Operations that Result in Predictable Outcomes (SSRPO) Employee Engagement, Empowerment and Ownership Employees involved in the development of vision fostered alignment and ownership creating environment of trust Ownership of processes transferred to employees See it Own it Solve it Employees have an ownership stake Created culture absent of fear employees free to bring forward concerns/incidents/ideas Employee led committees and work groups established Employee led Root Cause Analysis Ask what and how verses who fosters critical thinking Employees develop, train and are educated on processes Employees are accountable for predictable outcomes Utilized the Car and Driver analogy to ensure that behaviors were incorporated into the strategy striving for interdependent ownership

15 Results of SSRPO Accountability and ownership are intertwined through Interdependent Culture Leadership and employees jointly own SSRPO it is who we are our culture Employees hold each other and leadership accountable Transparency and trust between management and employees All employees are empowered with the responsibility, authority and resources they need to pursue VPP and Operational Excellence Stop work authority is ingrained in each employee Pull the Chain/Stop the Train Employee owned near miss reporting and root cause failure analysis results in shared lessons learned, reduced incidents and increased ownership

16 Results of SSRPO Improved critical thinking and risk analysis Employees lead and take ownership in various committees and projects Culture absent of fear of reprisal employees have freedom to bring concerns and ideas forward Employee driven recognition programs (Great Catch, Bravo Award, Star Performer) Operational and mechanical reliability improvements due to ownership and accountability Improved performance in areas of safety and environmental, reliability, financial, community support, employee morale, empowerment and ownership

17 Actual DuPont Bradley Curve

18 VPP Process Provides a Proven Platform for Success VPP Culture drives NuStar safety performance Employees are engaged, empowered and own the processes Utilizing the VPP Platform with the Bradley Curve and SSRPO to apply to all areas of business to focus on Operational Excellence

19 Key Takeaways VPP Process provides a foundation of ownership and empowerment Utilize the Bradley Curve as a model for cultural change Success relies on the process being employee owned and management supported Employees must be empowered to effectively manage the business Employees must be provided the tools, training and resources necessary to be successful Leaders must be visible, approachable, lead by example and fully supportive words and actions must be consistent to develop trust Focus on behaviors, ownership and accountability What else can I do? Critical thinking is a requirement the way we have always done it model is no longer effective Develop culture around ownership and accountability of core values Celebrate and recognize individual and team successes

20 Questions? Rob Hill West Region General Manager 9280 West Stockton Blvd, Suite 220 Elk Grove, California