Driving PSM Transformation to Sustain Risk Reduction ... · PROCESS SAFETY MANAGEMENT MIQA...

Copyright © 2019 DSS Sustainable Solutions. All Rights Reserved. Confidential

October 14 2019, Jubail, Kingdom of Saudi Arabia

Presentation by Ehsan Akhavan

Director DuPont Sustainable Solutions

Driving PSM Transformation to Sustain Risk Reduction & Performance Improvement

in leading O&G and Petrochemicals companies

PROTECTING PEOPLE. IMPROVING OPERATIONS.

JOURNEY TO PROCESS SAFETY & OPERATIONAL EXCELLENCE

What have industry incidents taught us? One incident is too much, too late.

Getting process safety right, starts at the top, strong governance and culture required to reduce risks

Common Themes Root Causes

Leadership

• Tone at the top of the organization failed to establish direction for

Process Safety.

• Ineffective oversight of major accident prevention programs by corporate.

• Company boards (BP and Transocean) adopted governance

approaches that emphasized personal safety without assuring process

safety and major accident prevention.

Performance

Management

• Deficiencies with PSM indicators and mechanical integrity program.

• “Check the box” mentality prevalent.

• Lack of reporting and learning culture.

• Gap between the information reported to the BP board of directors and

the reality in the field.

• Lack of consistent and reliable risk management process.

Organization• Cost-cutting.

• Decentralizing the HSE function.• Lack of attention to human factors (fatigue, long shifts, safety culture).

PSM System

Effectiveness

• Ineffective management of changes (people, policies, organization) that

could impact process safety

• Lack of effective and timely communication on process safety risks and

performance, particularly leading indicators.

BP TEXAS CITY 2005 MACONDO 2010

Background

In March 2005, explosions at BP Texas City refinery – 15 fatalities, 180

injuries, over $3 bn in repairs & claims.

Background

In April 2010, blowout and explosion at offshore rig – 11 fatalities, 17

injuries, largest marine oil spill, bill tops $65 bn.

LEARNINGS FROM THE INDUSTRY

3

© 2019 DSS Sustainable Solutions. All rights reserved. Confidential


Operational excellence and performance improvement are only possible with sustainable risk reduction

JOURNEY TO SUSTAINABLE RISK REDUCTION & OPERATIONAL EXCELLENCE

“I follow the rules because I want to”“I follow the rules because I have to”

External Motivation

COMPLIANCE

Rules, Procedures, Protocols

DuPont Culture Maturity Curve

REDUCE

RISKS

IMPROVE

PERFORMANCE

Internal Motivation: COMMITMENT

Visible Felt Leadership,

Role Modeling, Engagement

External Motivation: COMPLIANCE

Rules, Procedures,

Protocols, Supervision

▪ Management commitment

▪ Fear/discipline,

▪ Rules/instructions

▪ Supervision from management

▪ Training

▪ Instinctive safety

▪ Goal – to observe SHE norms

▪ Responsibility delegated to HSE

▪ Limited involvement of management

▪ Personal knowledge, and commitment

▪ Personal core values

▪ Self-regard, practice, habits

▪ Individual acknowledgment

▪ Empowerment

▪ Support of the others in compliance with safety requirements

▪ Concern for fellowmen

▪ Contribution to team work

▪ Concern for others

▪ Pride for your company

DuPont Culture Maturity Curve

4


DuPont’s approach to sustainable change focused on developing and empowering Front

Line Supervisors (FLS) to drive operational discipline

Link between management

& shopfloor, vision & reality“Juggles” several balls &

priorities at the same time

If empowered, can set the

right culture & unlock value

Critical to standardize the

“way of doing things”

FLS Influence 70-80% of the entire organization

STRUCTURED APPROACH TO SUSTAINABLE

SAFE & RELIABLE OPERATIONS

Safe and reliable production and sustainable performance culture

Accelerate competency development to mitigate our risks and drive

operational performance improvement

Focus on operational discipline to sustain risk reduction and value release

Embed continuous improvement in operating rhythm

WHY FOCUS ON FRONT LINE SUPERVISORS?


5


SOURCE: DSS ORM GLOBAL SURVEY 2017

Key challenges organisations face hindering effective Front Line Leadership

Ineffective

Front Line

Leadership

affecting

sustained

risk reduction

& continuous

improvement

Focus on training (often technical)

rather than capability development

i.e. preparing FLS to lead teams

Misalignment with leadership (in

terms of expectations and

understanding of needs and issues)

Lack of empowerment and

inadequate motivation

Ineffective time allocation, focus

on systems compliance, initiatives

No/ limited time spent by managers to

coaching direct reports

UNBALANCED FOCUS ON TECHNICAL VS. LEADERSHIP SKILLS

LIMITED FRONT LINE ENGAGEMENT & EMPOWERMENT CAUSING MISALIGNMENT

COMMON CHALLENGES

DRIVING PSM TRANSFORMATION THROUGH THE FRONTLINE

6


DRIVING PSM TRANSFORMATION THROUGH THE FRONTLINE

For sustainable change, the frontline needs to understand: the need for change, be given

the key skills, and supported by coaching, and reinforced by role modeling

Coaching of leadership and cascading down,

aligned expectations, etc.

Understanding what the gaps are and WHY

things need to change – selling the vision

Set of aligned Leader Standard Work, improved visual

management with aligned KPIs, etc.

“I will change my behaviour IF…”

SY

ST

EM

SC

UL

TU

RE

ROLE MODELING

DEVELOPING KEY SKILLSUNDERSTANDING THE NEED FOR CHANGE

REINFORCING WITH FORMAL MECHANISMS

Developing critical leadership skills in front-line

required to drive and sustain the change

7


A TOP-DOWN & BOTTOM-UP APPROACH TO DRIVING PSM TRANSFORMATION

Our experience suggests that a top-down and bottom-up approach is required to drive

sustainable risk reduction and improve culture change

Top-Down & Bottom Approach Objectives: Reduce risk and strengthen safety culture across organisation in a sustainable way

• Mitigate and reduce PSM risks, and prevent loss of containment

• Mitigate and reduce mechanical integrity and quality assurance risks, and prevent loss of containment

• Strengthen competency across key roles and competencies

• Embed a sustainable performance and safety culture

• Enhance operating rhythm and embed sustainable mindsets and behaviors at the front line

TOP DOWN – SITE WIDE

BOTTOM UP – AREA TRANSFORMATION

OPERATING RHYTHM

PROCESS SAFETY

MANAGEMENTMIQA

CAPABILITY

DEVELOPMENT

LEADERSHIP, CULTURE

& GOVERANCE,

COMMUNICATION,

CHANGE MANAGEMENT

RISK CONTAINMENTMINDSETS AND

BEHAVIORS

AREA

TRANSFORMATION

8


The Ten Attributes of Visible Felt Leadership:

1. Be visible to the organization.

2. Be relentless about time with your people.

3. Recognize your role as a teacher/coach.

4. Develop your own safety skills to be able to pass along to organization.

5. Behave and lead as you desire others to do.

6. Maintain a self-safety focus.

7. Confirm and reconfirm EHS as the Number 1 value.

8. Continuous emphasis and clarity around EHS expectations.

9. Show a passion for ZERO injuries, illnesses, incidents.

10. Celebrate and recognize “ZERO” successes.

A TOP-DOWN APPROACH TO DRIVING PSM TRANSFORMATION: VISIBLE FELT LEADERSHIP

Top-Down: To lead and influence others a shift in leadership style is required –

Visible Felt Leadership (VFL) is simply about “Leading Safety by Example”

DOINGDoing the right thing and making the choice for safety every time - Leaders “Walk the talk” and change own behaviours

DOING + BEING SEENPeople see you make the safety choice every day and every time, and see you work to help influence and motivate everyone else to also make the safety choice

DOING + BEING SEEN + BEING BELIEVEDPeople see your safety choices, see your motivation, and believe that you really have value for always making the safety choice

TO: LEADER AS A

“COACH” & “ROLE

MODEL”

From: Leader as a “Boss”

9


A TOP-DOWN APPROACH TO DRIVING PSM TRANSFORMATION: VISIBLE FELT LEADERSHIP

Top-Down: Visible Felt Leadership building blocks

VISIBLE FELTLEADERSHIP

• Field Engagement / MBWA• Reacting to bad news, welcome the reds• Time Management• Leader Standard Work• Operational Discipline• Upholding meeting ground rules

• Overconfidence, challenge the greens, verify

• Reduce risk tolerance• Focused initiatives versus

initiative fatigue• Communicating EHSS

expectations

• Personal Recognition• Celebrating “Zero”• Safety topic at beginning of meeting• Periodic safety messages• Sharing site learnings• Front Line engagement• Communicating strategic projects regularly site

wide

• Difficult conversations• Participation in reviews• Field engagement (don’t lose an

opportunity)

• Delegation• Spot checks• Weekly walkthrough /

interaction• Scheduled times with

direct reports

Motivation & Inspiration

Coaching & Team Building

Role Modeling & Behavior Influencer

Setting Expectations & Accountability

Ongoing Feedback & Performance

Dialogues

PASSION, INSTILL DRIVEADJUSTMENT TO COURSE

CLEAR DIRECTION FOR INDIVIDUALS

LEAD BY EXAMPLE

OVERALL TEAM BUILDING

10


A TOP-DOWN APPROACH TO DRIVING PSM TRANSFORMATION: EMPOWERING THE FRONTLINE

Bottom-up: Establishing the right mindsets, habits, and rituals, at shop-floor makes

system “come-to-life” and sustains the change reinforced by aligned way of working

Build Risk Awareness and Understanding through on-the-job training and coaching

▪ Visual Boards integrated with tools and dashboards to ensure consistent performance management at

different organizational levels to drive rapid change

▪ Effective cascading of information and priorities across the organization to drive greater accountability

▪ Meeting structured and held to facilitate cross functional communication, collaboration

▪ Consistent, KPI and metric drive discussions at all layers of the organization

Ops KPIs

Company

/ Site

Facility

/ Plant

Area &

Shift

Frontline Input from Shop Floor

LINE WALKS/ BEHAVIORAL INTERACTIONS PERFORMANCE DIALOGUES

DIFFICULT CONVERSATIONS FEEDBACK/ COACHING

PROBLEM SOLVING

DELEGATION/ PRIORITIZATION

VISUAL MANAGEMENT

11


CASE STUDY #1: LEADING PETROCHEMICAL COMPANY

Case Study #1 – Leading Petrochemical Company

Sustaining risk reduction through Area Transformation at Front Line (1/2)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

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Overall OLF-II Safety Area Transformation

Actual (Over) Actual (Under) Target

SITUATION

• Leading petrochemicals company in GCC

• ~3,000 employees

• Experienced high potential incidents in ‘16-’17

• Struggling to sustain improvement

(variable performance over time)

NEED

• Sustain risk reduction and performance

• Improve risk discovery at front line

• Drive operational discipline

• Empower and equip frontline to own and drive the change (i.e.

new behaviors, focus on risks and performance, etc.)

FR

ON

TL

INE

AR

EA

TR

AN

SF

OR

MA

TIO

N

KEY ACHIEVEMENTS

• Meeting efficiency

• Meeting effectiveness

• Department interfaces

• Integration of EHSS

OPERATING RHYTHM

• Top risks reduction

• Action closure and discipline

• New risks discovery improvement

• Increased risk recognition

RISK CONTAINMENT

• Compliance to LSW

• Competency development

• Behaviors improvement

• Coaching and feedback

MINDSET & BEHAVIORS

Overall Target based

on defined measures

of success

12





“There is an improvement in the teamwork

between Operations and Maintenance. In

the past there would be a fight if

maintenance did not just do the work. Now

I am proud to say that Maintenance

refuses to do unsafe work, they align with

Operations and go into the field together,

problem solve until operations mitigates

the risk or makes the area safe and the

work then gets done.”

– Area Manager

• Conversations focused on priority issues.

• Each team owns and reviews their priority KPI.

• Red/Green charts supports review “by exception”

and quick identification of trends.

• Focus on actions vs. problems.

KEY LEVERS FOR CHANGE & SUCCESS FACTORS

• LSW boards help compliance to new behaviors

• Coaching focus on effectiveness

• OWNERSHIP FRONTLINE1 • KEY LEADERSHIP SKILLS FRONTLINE2

• Cross-Department Teamwork3

“All employees are much more interested

/ engaged in reporting safety risks”

– Fronline Supervsivor

“Positive reactions by leadership /

management for everything raised

related to safety. There are no

shortcuts anymore when it comes to

following safety steps / procedures”

– Maintenance Technician

“Better safety awareness and

enhanced skills in anticipating

risks which reflected positively

through feedbacks, and enhanced

effectiveness of shift meetings”

– Operator

VOICE OF THE FRONT LINE

“Before the new tool box

talks only the Senior

technician knew what was

going on, now we are all

aware of everything”

– Contractor

13





RISK REDUCTION & IMPACT

different departments

14



Wave 1

(Burning Platform)

Wave 2

(Urgent)

Wave 3

(Important)

▪ Area Transformation across plants

▪ Risk Containment

▪ Mindsets & Behaviours

▪ Operating Rhythm

▪ Safe Work Practices

▪ Incident Investigation

▪ Mechanical Integrity & Quality

Assurance

▪ Area Transformation across

plants


▪ Mindsets & Behaviours

▪ Operating Rhythm

▪ Observations & Audits

▪ Standard Operations

Procedures

▪ Management of Change (Facility

Change Request)

▪ Visible Felt Leadership

▪ Safety Governance & Performance

Management


▪ Process Safety Information &

Process Hazards Analysis

▪ Mechanical Integrity & Quality

Assurance

▪ Emergency Response Preparedness

▪ Contractor Control

▪ Training & Development

▪ Management of Change – Personnel

2017-2018 2018-2019 2019-2020

Rsk-based diagnostic to identify top risks and improvement opportunities

Designed a three year Safety Transformation Journey

Bottom up – Implementation Support focused on frontline risk containment and culture change in mindsets and behaviours


The Journey

15


Beliefs & Principles are the foundational

elements from which Visible Felt Leadership

& Life Saving Rules are built


Top-down bottom-up approach to create a catalyst for change – we made the transformation real at shop floor, set up

strong governance, clear and consistent communication, and the right KPIs to drive safety and operational excellence

Central Sustainable

Safety Committee

BUn Monthly

Performance

Review

Element

Subcommittees

Daily BUn Meeting

Governance Structure

Central Sustainable Safety Committee

Impact & KPIs Dashboards

Leading & Lagging KPIs

Utilized in relevant meetings

TOP-DOWN & BOTTOM-UP APPROACH

Communication & Change Management

Safety Beliefs & Principles

Learning From Incidents Film

Shopfloor: Making the system come to life

16


▪ One major process safety incident is too much

▪ Getting process safety right starts at the top with leadership, and an effective governance of process safety to reduce risks

▪ Sustainable risk reduction and operational performance improvement are two sides of the same coin

▪ Driving transformations and culture change – is a “marathon”… not a “sprint” – and needs to be resilient to organisational changes

▪ Transformation approach and pace of change need to take into account risks, maturity of the organisation, capabilities, and constraints

▪ A structured top-down and bottom-up approach is effective to risk reduce risks and improve performance in a sustainable way

▪ Visible Felt Leadership is about role modeling and leading as a coach to develop capabilities and drive new mindsets and behaviors

▪ Focus on Front Line is critical to translate vision and expectations into day-to-day actions and behaviors across the organization

▪ This requires building critical organizational capabilities and operational discipline at frontline

▪ Empowerment of front line to address everyday risks enables development of problem solving skills

▪ Management Operating System routines and aligned individual Leader Standard Work discipline embed habits into operating rhythm

▪ Visual management and performance dialogues at front line support effective day-to-day risk based decision-making and focus on risk

▪ Developing tangible indicators to measures impact and success are key to ensuring sustainability of improvement efforts

Concluding remarks

Driving PSM Transformation to Sustain Risk Reduction ... · PROCESS SAFETY MANAGEMENT MIQA...

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