Speak up, Step up Alyeska Pipeline Service Company Presented by Mel Jessee Open Work Environment (OWE) and Employee Concerns Program (ECP) Lead SCCE Anchorage Conference - June 25, 2015 1 Speak up and Step up Take a System View We act and make decisions that take into account the risk to and the success of the total pipeline system. Make Sound Decisions We bring the right focus, involve the right people, use the right data, and follow the right processes to achieve sound and timely decisions. Learn, Improve and Innovate We learn from our experiences, innovate to overcome challenges and seek to constantly improve our business. Act with Discipline We consistently work to the highest standards; we don't cut corners. Speak up, Step up We take responsibility. We speak up about concerns, opportunities and ideas. We take action to resolve issues. (step up) 2 1
Compliance and Ethics The Ethisphere Institute has recognized Alyeska Pipeline Service Company as one of the World s Most Ethical (WME) Companies for the fourth year in a row. Alyeska employees and contractors earned this recognition by a commitment to ethics and integrity that extends beyond formal policy it is an integral part of the TAPS culture, said Tom Barrett, Alyeska Pipeline Service Company President. The World s Most Ethical (WME) Companies designation recognizes companies that go beyond making statements about doing business ethically, and translates those words into action. 3 A Message from our President (The following note was issued 04/07/2015 from Alyeska President Tom Barrett) The recent sharp drop in crude oil prices is having dramatic impacts on Alyeska Pipeline Service Company, all those in oil and gas related industries, and the entire State of Alaska. The challenge is one we face as a company and collectively as a State. APSC has been working hard to identify savings and efficiencies that will help all of us weather current economic conditions. Work has been, and will continue to be guided by the following principles: We will sustain our unrelenting commitment to operating safety, reliability and environmental protection. We will continue uninterrupted delivery of key sustainability projects. All of our decisions will be risk informed decisions and made in a timely manner. To the extent we can, we will minimize impacts on personnel. 4 2
Why is a Speak up, Step up Culture Important? Here are the results of a few poor Speak up, Step up Cultures 5 Major Historical Events 6 3
Major Historical Events Challenger - 1986 Normalization of Deviance and Group Think led to the acceptance of serious flight risks 7 Major Historical Events Shareholders lost nearly $11 billion when Enron's stock price, which hit a high of $90 per share in mid-2000, plummeted to less than $1 by the end of November 2001. 8 4
What does this Culture Look Like? We must build and reinforce a culture in which everyone feels empowered, emboldened, and encouraged to ask questions, the difficult questions, and not simply accept what is presented to them. NRC Commissioner Gregory B. Jaczko 9 Build Trust Employee Concerns Program Observation Most organizational issues and concerns arise in work groups with little or no trust. Leadership must: Communicate Stay engaged Be supportive Be trustworthy Walk the Talk Focus on the team 10 5
The Five Dysfunctions of a Team Inattention to Avoidance of Lack of Fear of Absence of Focus on Collective Outcomes Confront Difficult Issues Force Clarity and Closure Mine for Conflict Go First! Foundation for a Speak up, Step up Culture The Table Group. All Rights Reserved. 11 The Table Group. All Rights Reserved. Foundation for a Speak up, Step up Culture 12 6
Speed of Trust Self Trust Organizations tend to focus on Competence rather than Character. But, it takes both! Competence alone may deliver results, but at what cost to compliance and the culture? Alyeska s Code of Conduct: It is important to note that at Alyeska, technical competence is only one of the necessary components to doing a job well. 13 The Importance of Integrity Somebody once said that in looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if you don t have the first, the other two will kill you. Warren Buffett CEO Berkshire Hathaway You think about it; it s true. If you hire somebody without integrity, you really want them to be dumb and lazy. 14 14 7
Table Top Discussion In your table groups, take three minutes to discuss the following: Discuss examples you may have of Low Character individuals (no names), and their impact on the organization (any organization). Select one of the examples from the table and prepare to share with the larger group. After three minutes, we ll select a few tables to share their best example 15 Conducting Crucial Conversation A discussion between two or more people where: Stakes are high Opinions vary Emotions run strong Copyright 2012 by Kerry Patterson, Joseph Grenny, Ron McMillan, and Al Switzler. 16 8
Overview of Crucial Conversations Copyright 2012 by Kerry Patterson, Joseph Grenny, Ron McMillan, and Al Switzler. 17 Table Top Discussion In your table groups, take three minutes to discuss the following: Discuss examples you may have of a Crucial Conversation that you either didn t hold (when you should have), or didn t hold well (and it went poorly). What were the consequences? What did you learn? Select one of the examples from the table and prepare to share with the larger group. After three minutes, we ll select a few tables to share their best example 18 9
How high performance teams behave in a Speak up, Step up Culture Results Accountability Commitment 1. They trust one another 2. They engage in unfiltered conflict around ideas 3. They commit to decisions and plans of action Conflict Trust The Table Group. All Rights Reserved. 4. They hold one another accountable for delivering against those plans 5. They focus on achievement of collective results 19 Other Barriers to Speak up, Step up Apathy things get reported, but don t get fixed Boomerang if I report it, I ve got to fix it Lack of Ownership it s not MY problem! Cumbersome Process takes too long, is confusing Unapproachable my Boss is too busy or doesn t care The Hero I can work around this and make it work Nervous/Lack of Confidence what if I m wrong? Peer Pressure we don t rat on fellow workers Fear - I m going to get fired if I report this 20 10
Examples of Retaliation Getting fired, demoted, laid-off or transferred Not being promoted Not getting to go to special training Being given the less-desired projects and assignments Being assigned the bad shifts Being ridiculed, humiliated or yelled at Being shunned or left out Subjected to a hostile work environment Being treated differently than everyone else 21 Chilling Effect? Fear of retaliation makes individuals reluctant to, or refuse, to identify or raise safety issues or concerns 22 11
Preventing Retaliation by Raising the Bar Best Practices ---- Code of Conduct- Law----------------- Prevent Perception of Retaliation Prevent Retaliation for Any Reason Prevent Retaliation for Protected Activities 23 Final Thoughts Look for employees with strong Character and Integrity Enforce your Code of Conduct with consequences for employees who violate them. Implement consistent tools that build Trust and lead to real Dialog with a robust exchange of ideas and better solutions to business and compliance challenges. Quotes from The Speed of Trust, by Stephen M. R. Covey: When the trust goes up in an organization, the speed will go up and costs will come down. When you move the needle on trust, you move all kinds of other needles with it. Move the needle on Compliance, by building a proactive compliance Culture that encourages employees to Speak up and Step up, without the fear of reprisal. 24 12