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Beyond  compliance  :  Safety  leadership  in  the  boardroom  Dr  Kirs'n  Ferguson  

www.orbitasgroup.com  

   @kirs'nferguson    |    #SIAMelb15  

“The  board  did  not  provide  effec've  health  and  safety  leadership  and  protect  the  workforce  from  harm.  It  was  distracted  by  the  

financial  and  produc'on  pressures  that  confronted  the  company.”  

Royal  Commission  on  the    Pike  River  Coal  Mine  Tragedy,  

2012;  p.  18  

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Corporate  Governance  

Leadership  Workplace  Safety  

Safety  leadership  and  safety  governance  

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Safety  leadership  in  the  boardroom  

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Safety  leadership  for  senior  leaders  

Vision  

Personal    commitment  

Decision  making  

Transparency  

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Vision  

Vision  is  the  ability  of  a  senior  leader  to  publicly  ar'culate  shared  safety  goals  that  resonate  across  all  levels  of  an  organisa'on.  Senior  leaders  demonstra'ng  vision  will  inspire  others,  set  high  standards  for  safety  behaviours,  establish  safety  expecta'ons  and  solicit  commitments  to  safety  from  others.  

Examples  • Ensure   the   CEO   primarily,   and   Chair   where  appropriate,  reinforce  the  company  safety  vision  

• Demonstrate   safety   leadership   when   on   site  visits   or   in   the   office   through   authen'c  engagement  with  employees  on  safety  issues  

• As  a  board,  acknowledge  and  accept  the  role  of  the   board   in   safety   and   support   the   CEO   and  senior  execu'ves  in  their  safety  leadership  

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Personal  commitment  

Personal  commitment  is  a  sincere,  visible  and  genuine  dedica'on  to  workplace  safety  that  demonstrates  care  for  the  safety  and  welfare  of  others.  Senior  leaders  with  a  personal  commitment  to  safety  exemplify  a  posi've  aZtude  towards  safety,  role  model  safe  behaviours  and  help  solve  safety  issues  on  behalf  of  employees.  

Examples  • Include  commitment  to  safety  in  board  charter  

• Ensure  safety  vision  exists  and  is  communicated  regularly  and  widely  

• Ensure  safety  vision  aligns  with,  and  supports,  company  values  

• Ensure  board  and  senior  execu'ves  accepts,  promotes  and  communicates  concept  of  ‘safe  produc'on’  and  that  all  decisions  from  the  board  are  consistent  with  that  message  

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Decision  making  

Decision  making  promotes  sound  assessment  of  safety  issues  while  also  providing  an  opportunity  for  open  communica'on  between  all  levels  of  an  organisa'on.  Senior  leaders  promo'ng  decision  making  ensure  safety  concerns  are  heard  and  employees  are  included  in  safety  planning  processes.  

Examples  • Establish  board  sub-­‐commi^ee  focused  on  safety  ma^ers.  

• Ensure  regular,  robust  and  meaningful  safety  repor'ng  of  company  safety  performance.    

• Encourage  senior  execu'ves  to  think  strategically  about  safety  and  not  just  as  a  source  of  sta's'cal  analysis.  

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Transparency  Transparency  refers  to  senior  leaders  being  open  to  scru'ny  of  safety  performance  through  monitoring  and  communica'ng  the  effec'veness  of  safety  ini'a'ves.  Leaders  demonstrate  transparency  through  formal  and  informal  communica'ons,  which  celebrate  safety  successes,  as  well  as  openly  communicate  safety  challenges  as  they  emerge.  

Examples  • Ensure  a  range  of  lag  and  lean  indicators  are  reported  and  disclosed  to  stakeholders  

• Develop  open  communica'on  with  other  companies  to  enhance  best  prac'ces  in  safety  

•  Introduce  safety  focused  KPIs  for  all  senior  execu'ves  

•  Include  team  safety  performance  within  the  execu've  remunera'on  system  

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Safety  governance  frameworks  

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Safety  governance  

Safety  governance  is  the  rela'onship  between  board  members  and  senior  execu'ves  in  the  safety  leadership  of  an  organisa'on.    

It  provides:  

• the  structure  through  which  the  vision  and  commitment  to  safety  is  set;    

• agreement  on  how  safety  objec'ves  are  to  be  a^ained;    

• a  framework  for  how  monitoring  performance  is  to  be  established;    

• and  processes  in  which  to  comply  with  relevant  legisla'on.  

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Stage  1  

Transac'onal  

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Stage  2  

Transac'onal   Compliant  

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Stage  3  

Transac'onal   Compliant   Focused  

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Stage  4  

Transac'onal   Compliant   Focused   Proac've  

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Stage  5  

Transac'onal   Compliant   Focused   Proac've   Integrated  

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QuesGons?  Dr  KirsGn  Ferguson  M:    +61  418  727  952  

E:        kirs'n.ferguson@orbitasgroup.com  

W:    www.orbitasgroup.com  

             @kirs'nferguson