Headquarters U.S. Air Force Air Force ESOH Management Best Practices Assessment LtCol Weisman SAF/IEE 703-693-9544 Wade.weisman@pentagon.af.mil JSEM Presentation 2007
ESOH MS Benchmarking Results Project Background Drivers Purpose Desired Results Project Introduction ESOH Benchmarking Results Benchmarking Next Steps and Roadmap 2
Benchmarking Project Benchmarking was undertaken to supplement Existing Policy Efforts Evaluate industry leaders with relevant operations and business processes Target organizations that have established an integrated ESOHMS with an operations focus Determine best practices in system institutionalization, integration and performance monitoring Results will be used to guide and facilitate ESOHMS implementation. 3
Goal: Use Benchmarking Results to Improve Existing ESOH Programs Identify best practices for promoting ESOHMS implementation and integration Provide inputs for ESOH performance monitoring and EESOH-MIS application Implement identified solutions, methods, and tools 4
The Future Shifting Paradigms Call for Transformation Threats to National Security and Global Political and Social Dynamics have driven the need for Air Force Transformation National Military Strategy Capacities Transformation Driver Mission Capability Transformation Driver President s Management Agenda Conformance Part of Doing Business Compliance with Legal Requirements Compliance 5
Benchmark Project Vision Key Project Objectives Identify industry leaders best in class ESOH programs Evaluate industry leaders with relevant operations and business processes Target organizations that have established an integrated ESOHMS with an operations focus Industry leaders with large, multi-national manufacturing, complex and dangerous, or hazardous processes. Determine best practices in system institutionalization, integration and performance monitoring 6
ESOHMS Maturity Continuum ESOH program value progresses when ESOH considerations are viewed as mission integrated instead of a cost center Threat Focused Compliance (Reactive) Focuses on stopping the bleeding Negative value to business from fines and brand damage Compliance (Proactive) Focus on meeting compliance requirements Reduce fines from noncompliance and stabilize brand image Management Systems Focus Compliance is Inherent Focus on creating formal risk-based approach to environmental management Assess potential business impact from management of safety and health risks Increasing Maturity and Value to the Organization ESOH Business Focus Demand-side driven, focused on customer needs Focuses on creating value to business units at a competitive price ESOH Business Integration Fullyintegrated with overall corporate business strategy Focused on adding value to the business as a differentiator ESH moves from a cost to a profit center Opportunity Focused 7
But Compared To Best in Class Case Rates.. We are headed in the right direction, however opportunities exist to decrease illnesses and injuries to best in class. Recordable Injury/Illness Rate 5.00 Recordable Rate 4.00 3.00 2.00 1.00 0.00 U.S. Air Force 2000 2001 2002 2003 2004 2005 Move from AF Current to Best in Class means: 600 fewer injuries (Recordable) and lost time cases drops from 2456 to 872. Also recouped are other efficiencies: ripple effect beyond the injured Airman investigation, substitute work, mission does not get accomplished 8
Environmental Compliance Performance Current Situation Air Force environmental programs and policies have improved performance but have leveled off. 250 Number of Open Environmental Enforcement Actions U.S. and Territories 200 207 Good 150 126 100 70 As of 30 Jun 04 50 46 14 10 10 10 20 22 17 17 0 93 94 95 96 97 98 99 2000 01 02 03 04 9
The Air Force ESOHMS Benchmarking Follows an Accepted Standard Process 10
Data Collection Occurred at Corporate and Site Levels Telephone Screening Purpose of the benchmarking initiative Preliminary information/distribute data collection tools Logistics and preparation Corporate Level Visit Review management systems with Corporate ESOH staff Evaluate quantitative and qualitative performance indicators Review ESOH tools and MIS Site Level Visit Observe site-level ESOH MS implementation and performance Interview site manager and staff regarding ESOH success factors 11
Key Messages Best in class industries have figured ESOH out: Injuries/Illnesses and Env. Non Compliance is not a cost of doing business Injuries, quality, compliance and productivity are mutually dependent Zero is a reasonable expectation Air Force can learn from industry This is a tough sell We are not like them We presume we are at the margins of safety and environmental improvement Is There a Silver bullet? Creativity at all levels, solutions oriented Continuous improvement 12
Benchmarking Results Problem Statement Workplace injuries and illnesses impact mission execution ESOH performance and mission impact are highly correlated but ROI is not visible ESOH performance will not improve without a change in business process Key Benchmarking Issues Air Force lost time/recordable rates are 2 to 3 times higher than best in class Air Force health care costs continue to escalate despite budgetary constraints Environmental performance has Objectives flat-lined 10%+ reduction in force mandates driving out waste of resources from injuries Drivers SECDEF Initiative to reduce DoD Safety incidents by 75% PBD720 and AFSO21 requirements; Executive Orders and OMB Scorecards Create and reinforce ESOH value to the Air Force mission and war fighting capability through strategy, policy, operational measures, and training Review adequacy of current senior management forums and tools for promoting, supporting, and engaging in ESOH management Air Force Needs & Opportunities Establish an integrated ESOH management structure that includes clear delineation of responsibilities, authorities, and accountabilities Sponsor a formal campaign to instill a culture of ESOH Excellence throughout the organization that is constantly invigorated current culture is fragmented Review existing auditing functions, metrics, and knowledge management systems to enhance ESOH performance management and foster strong accountability Formalize ESOH communications strategy and plan (internally and externally) to promote ESOH awareness, advocacy, and ownership ESOH is an integral part of business performance and enhances mission Active and ongoing senior management commitment and involvement supported by enthusiastic employee led ESOH teams World Class ESOH Keys to Success Formal, clearly defined, integrated ESOH management structure Significant emphasis on performance management and personal accountability Robust communications facilitated and supported by advanced, continuously accessible knowledge management systems and technology 1. Brief Senior Executive, Operational, and ESOH Communities on benchmarking results (conferences, forums, road shows). Make the case we cannot afford not to implement process changes 2. Incorporate themes and lessons learned into AFI 90-80X, ESOH Management (currently under development) Critical Next Steps 3. Develop outreach and communication plan to inculcate ESOH performance excellence 4. Formalize ESOH Best Practices Implementation Plan to establish specific near-term, mid-term, and long-term actions for ESOH Transformation (action teams, OPRs, milestones) 5. VPP is the driving force for change 13
Key Benchmarking Objectives Problem Statement Workplace injuries and illnesses impact mission execution ESOH performance and mission impact are correlated; ROI not visible ESOH performance will not improve without business process change Issues Air Air Force lost time/recordable rates are 2 to 3 times higher than n best in class Air Force health care costs continue to escalate despite budgetary constraints Environmental performance has flat-lined 10%+ force reduction mandates driving out waste of resources from m injuries Drivers SECDEF Initiative to reduce DoD Safety incidents by 75% PBD720 and AFSO21 requirements; Executive Orders and OMB Scorecards 14
World Class ESOH Keys to Success ESOH is integral to business performance and enhances mission Active and ongoing senior management commitment and involvement supported by enthusiastic employee led ESOH teams Formal, clearly defined, integrated ESOH management structure Emphasis on performance management and personal accountability Robust communications supported by advanced, continuously accessible knowledge management systems 15
Committed Active & Ongoing Senior Management Involvement Direct interaction with company VP s Employee -led safety councils with active VP and plant manager ownership Leaders decided: link ESOH performance to appraisals, bonuses; include ESOH performance in shareholder reports; evaluate sites on ESOH performance ESOH goals set at corporate level and pushed down Corporate ESOH functions have direct accountability, visibility, accessibility to the VP and CEO Site managers held personally accountability: displayed in ESOH performance metrics and base to command briefings 16
Clearly Defined Management Structure Delineation of responsibility, authority, and accountability Environmental Professionals Actively Engaged on Shop Floor Roles and responsibilities defined: line management and employees; Unit Employee Safety Team chairperson Safety and Environmental Communication/Information Flow utilized same structure As an example.. Tiered safety organizations: employees, managers, EHS professionals, EHS Committees, and the EHS Council Every employee is a safety person Employee led safety councils (representing 100 people) - critical Hazard recognition reporting and corrective action, accident investigation, root cause analysis 17
IT systems that. Solid ESOH Communications and IT Systems Provide near-real-time access to ESOH information- incident reports, waste reduction trends, near misses, performance measures Track performance against Objectives and Targets as well as Corporate Goals; completely transparent to HQ Permits recalibration of ESOH goals against targets Allow plant manager access to the safety data they are held accountable for. Same data is reported to Sr Leadership Deliver accessible, focused safety training and reference materials which are continuously maintained and refreshed Communicate corporate goals, safety trends, and patterns 18
Performance management Performance measures and continual audits are critical for improvement Nested internal & external audits conducted regularly Smaller footprint; more flexible External/certification audits verify performance Performance measure analysis leads to targeted facility and program ESOH audit/improvement ESOH scorecard measure a predetermined set of criteria and highly visible 19
Culture of ESOH Excellence A passion for constant improvement ESOH champion: Identified/allowed to infect the culture Peer led training Employees understand cost of an incident: we just cant afford to get hurt Near miss reporting rewarded - no fear of repercussion Employee ownership of the ESOH program promotes/sustains ethic 20
Air Force Needs & Opportunities Create and reinforce ESOH value to the Air Force mission and war fighting capability Sponsor a formal campaign to instill a culture of SOH Excellence throughout the organization that is constantly invigorated Review existing auditing functions, metrics, and knowledge management systems to enhance ESOH performance management and foster strong accountability Formalize ESOH communications strategy and plan (internally and externally) to promote ESOH awareness, advocacy, and ownership at all organizational levels 21
Benchmarked Partners Application There is no silver bullet Implementation had 3 common themes: Creativity: Solutions require management and staff to mine creative juices of all employees Solutions oriented: LEAN out injuries by prevention, performance increases Solutions can be simple Continuous improvement based on outcome metrics; when being the best is not good enough 22
Critical Next Steps Incorporate themes and lessons learned into policies Develop outreach and communication plan to inculcate ESOH performance excellence Formalize best practice action plan Embrace Air Force Smart Operations 21 as the driving force for change 23
Summary of ESOHMS Best Practices Representative Representative ESOH ESOH Leaders Leaders Industry ESOH leaders consistently adopt six common themes for achieving high performance ESOH management 1. Committed active & ongoing senior management involvement. 2. Solid ESOH communications plan facilitated by an IT and knowledge management system. Key Imperatives For ESOH Performance 3. Formal clearly defined ESOH management structure with clear delineation of responsibilities, authorities, and accountabilities. 4. Culture of ESOH Excellence constantly improving creating a "brother's keeper/wingman" mentality. 5. Performance management and personal accountability. 6. ESOH integral part of business success and mission execution. 24
QUESTIONS???? LtCol Weisman SAF/IEE 703-693-9544 wade.weisman@pentagon.af.mil 25