Occupational Health & Safety Council of Ontario Roles Review and Realignment

Occupational Health & Safety Council of OntarioRoles Review and Realignment

Executive Summary

September 05, 2008

2RPO MANAGEMENT CONSULTANTS

CONFIDENTIALNot for Distribution

This report summarizes findings and recommendations from the

OHSCO Roles Review and Realignment project conducted by

RPO Management Consultants from April – July 2008



Study Objectives

To enable system partners to:

− leverage scarce resources to advance the system on an ambitious new prevention strategy, within each of the four primary thrusts:

1. Creating a national habit of safety by driving transformation in values & behaviours

2. Providing leadership to align prevention partner efforts and achieve improved outcomes

3. Instilling an evidence-based, priority-focused and outcome measurement mindset

4. Developing prevention partner capabilities, information management tools, and communications technology

− build effective alliances and partnerships, strong leadership and improved capacity and capabilities

The project was undertaken with the objective of aligning Ontario’s prevention system to the new Prevention strategy through a reassessment of current structure, roles and responsibilities

Objectives:



Engagement Process

The engagement followed a comprehensive and inclusive approach to ensure an unbiased and objective outlook

• Interviews with each system leader (CEO/General Manager/ADM) ensured that all perspectives were incorporated

• Focus groups included frontline managers and staff from each organization

• Interviews and focus groups involved over 50 representatives from across the system

Information gathering

Fact-based analysis • Required data was collected using: strategy documents, annual reports, product catalogues, financial reports and performance reports

• The baseline analysis was validated across each system partner to ensure we had a solid fact-base

Objective evaluation • Consultative workshops were conducted with participation from all system leaders to evaluate change opportunities

• Objective evaluation criteria were determined through broad-based participation

Comprehensive and inclusive approach:

Customer centric approach

• The reassessment was grounded by a customer centric point of view

• Redesign criteria incorporated considerations for improved customer focus



Background

System Background

The prevention system has undergone significant change since inception – the current state is the result of both reactive and proactive change

The system originated in the early 20th century:

The Workmen’s Compensation Act, passed in 1914, led to the creation of the Workmen’s Compensation Board

The first group of Safety Associations was created in 1915 – to serve Electrical and Utilities, Forest Products, and Pulp and Paper sectors

The Department of Labour was established in 1919 with the responsibility of safety-related legislation

Over subsequent years, the system underwent considerable change in response to emerging workplace needs, with the creation of new safety associations, mergers of existing organizations, and changes in organizational mandate

Individual organizations have been largely independent and have optimized locally, at the cost of system-wide collaboration

In response to a cost imperative from WSIB (then WCB), back office consolidation was considered in 1997 – this led to the creation of CHSI and the successful co-location of 4 HSAs

OHSCO was established in 2000 as a forum for increased collaboration and sharing – recent successes in working together (e.g. High Risk – Last Chance, MSD guidelines, etc) have lead to significant improvements in the level of trust between partners

In 2008, the WSIB adopted the “Road to Zero”, a prevention strategy that aggressively targets zero fatalities, injuries and illnesses for workplaces in Ontario



Successes

Major successes achieved

Success Description

The system has achieved considerable successes in the promotion of health and safety in Ontario’s workplaces

We have achieved major successes over the last 10 years

Ontario’s LTI rate is well below the Canadian average – we are ranked 3rd among all jurisdictions in Canada

The LTI rate has been declining at an average annual rate of 5.1% since 1997, and the total number of LTIs decreased considerably in 2006

However, the number of nLTIs have increased considerably over the last decade, while the nLTI rate has declined at an average annual rate of 2.1% since 1997

LTI rate reductions

1

The system has demonstrated successful collaborative efforts, such as:

The High Risk-Last Chance targeting initiative lead by the Ministry of Labour

Collaborative product development – MSD guidelines, heat stress, confined spaces, violence in the workplace, etc

Shared service delivery in northern Ontario – FSA leveraging MHSA/OFSWA staff

Collaborative efforts

2

Faced with multiple constraints (e.g. changing workplaces, flat-line funding), system partners have resorted to innovative ideas, such as:

Leveraging volunteer networks for grassroots influence

Utilizing contract/third party trainers for fluctuating/unmet demand

Structured, proven, best practice programs such as ZeroQuest

Training blitzes through hiring halls targeted at transitory workforces

Innovation

3

We have successfully lowered our LTI rates over

the past decade

We have achieved successes through collaboration

System partners have demonstrated the ability to

innovate



Challenges

Major challenges currently faced

Challenge Description

The study identified three major challenges that present a significant barrier on the Road to Zero, which cannot be effectively addressed by the current structure

The current system structure does not adequately leverage the breadth and depth of the prevention partners’ skills, capabilities, experience and knowledge

The world of work is changing – economic changes, new technology, demographic changes, etc

The system does not cover all workplaces in Ontario

Vulnerable groups and small businesses need specific focus

Insufficient attention for Occupational Diseases

Insufficient Coverage

1

There is unrealized potential through information sharing across system partners

Multiple points of contact with workplaces

Overlaps in responsibilities, areas of focus, services, training and products

Lack of Coordination

2

Differences in approach for service delivery models and revenue generation

Independent development of products and services

Lack of measurement standards for leading action or H&S impact

Need for increased accountability and controllership

Lack of Standardization

3

We do not reach out to everyone, or address all

issues

We are not working together as efficiently or effectively as we could

We are doing things differently and lack consistent measures



Themes

There is consensus on the need for change

− System leaders recognize the need for change in light of the challenges facing the system, the increasing difficulty in achieving further LTI rate reductions, and the unacceptable social cost of the status quo

− Potential change involves all three system pillars: the MOL, WSIB and HSAs

We must recognize sector uniqueness and cross-sector commonalities

− Unique needs for clients in some sectors demand industry-specific knowledge and experience

− A need for a labour focused organization

− Notwithstanding unique needs, there are many common system challenges, such as small business, vulnerable workers, and non-commercial drivers

A redesigned system must increase responsiveness to client needs and be adaptive to continuous change

− Substantial benefits can be achieved by transitioning to a system with fewer distinct organizations and a consolidated back office to provide efficiency increases for reinvestment in the front-line

− Increased collaboration, integrated planning and standardization are key to improve system effectiveness

− A less distributed system can be more flexible and adaptive to continuing change, while maintaining sector-specificity in the front-line

Change will be difficult, but we can build on past successes

− There may be a varying appetite for change among Boards and senior executives of some organizations

− As we move towards standardization, initial steps may be seen negatively from a local perspective, but downstream successes can justify change

− Trust is key to a successful transition – though we have experienced significant improvement in recent years, building trust remains an important issue

− Realizing the benefits of a more integrated system requires fact-based decision making, strong leadership, sound planning and thoughtful execution

Themes

The following themes emerged from the discussions and workshops with system leaders

Significant progress has been made, however, building on current momentum will be key to success



Future State Vision

Future State Vision

Through the workshop, the OHSCO members collectively developed a clear vision for the future

“One system that responds in a flexible, active way to all emerging problems”

Smaller, more integrated, focused system

Consolidated back-office

Integrated planning

Maintain sector-specificity in the front lines

A plan for the north, schedule 2 and federally-regulated firms

One door in and out for the employer, unions, and vulnerable workers



Model for discussion

MOL WSIB – Prevention

Prevention Services

OperationsDisability

PreventionSystem

Collaboration

Primary Support - Back Office Services to the Ontario Health & Safety System

WHSCPrevention Services A

Prevention Services - Public & Broader Public Sectors

Illustrative Future State Model

The Road to Zero demands a customer-centric, cost-efficient model that is adaptable to our changing economy and fully aligned with prevention goals

Integrated planning, centralized standard setting, reporting and accountability

Policy, program development & dispute

resolution

Standards & Incentives

Intelligence & Innovation

Note: this chart does not represent hierarchical relationships* Revised body of 10 individuals representing all three pillars

• Education • Municipalities &

Water Utilities• Healthcare• Transportation• Telecomm.• All Gov’t levels:

- Municipal- Provincial ministries

& ABCs- Federally regulated

industries

• First Nations

• Construction• Electrical• Natural Gas• Landscaping• Farming• Pulp & Paper• Mines, Metals,

Minerals• Aggregates• Forestry

Prevention Services B

• Industrial / Manufacturing, e.g.–Metal / Print Trades–Food & Beverage– Agri Businesses– Chemicals / Plastics

• Retail / Wholesale• Tourism / Hospitality• Restaurant / Food

Services• Vehicle Sales /

Services• Small & Micro

Business Sector

Prevention Services**

Prevention Services - North***

• Multi-sector scope with specialized focus on:

- Pulp & Paper- Mines, metals,

minerals- Aggregates

- Forestry

Field inspectors

Disability Prevention Specialists

AuditorsMining

Healthcare

Industrial

Construction

OHSCO*

Leveraging work-to-date, we have provided an illustrative future state model to orient discussion

DRAFT – for discussion

** Each entity of Prevention Services will have a Board of 10 people including representation from the CEO & WSIB*** All employers & workers geographically located in north-western Ontario

780k FTE22k Firms

29 Fatalities32k LTI; 44k NTLI$585M premiums

375k FTE66k Firms

37 Fatalities7k LTI; 21k NTLI$780M premiums

2,820k FTE124k Firms35 Fatalities

42k LTI; 102k NTLI$1,600M premiums

65k FTE2k Firms

11 Fatalities1K LTI; 4k NTLI

$160M premiums

- High level estimates- FTE counts Sched. 1 only

430 FTE 87 FTE 350 FTE

OHCOW

Field Staff

Labour Designated

Entities

Trainers

Diagnostic Specialists



Model for discussion

Key Design Features of the Illustrative Future State Model

Integrated planning, standardization and increased collaboration1

A consolidated back office function, providing support services to four entities of Prevention Services

2

A less distributed system with increased adaptability to changing needs, serving underserviced groups, small businesses and vulnerable workers

3

Sector specificity in front-line roles4

5 Recognition of the need for a labour focused organization

6 Increased alignment with customers and across system partners

7 A more streamlined and transparent governance structure across the entire system

The revised OHSCO model proposes to include IWH and involvement from the employer community



Alignment

The illustrative model achieves alignment in each of the four thrusts within the Prevention Strategy

Future State – Alignment with the Prevention Strategy

Creating a national habit of safety by driving a transformation in values and behaviours

• A central marketing effort, leading to consistent messaging to a broader audience, providing the capacity to launch effective social marketing campaigns

• Standardization of incentives and rewards for workplaces across the system

1

Providing leadership to align prevention partner effort to achieve improved outcomes

2• Integrated planning and increased collaboration across partners, aligning effort

towards system priorities and increasing efficiency

• A new structure aligning MOL and HSA field staff

• Increased clarity on organizational roles and responsibilities

• Increased accountability through performance management and enhanced governance structures

• A less distributed system capable of focusing on system priorities, and adapting to changing workplace needs

Instilling an evidence-based, priority focused and outcome measurement mindset in the system

3• Integrated planning to enable prioritization on a system-wide basis and the

sharing of best practices

• A consolidated back office for HSAs enabling the standardization of activity tracking and information collection

• Increased accountability, transparency, enhanced performance management and competence based boards

Developing capabilities, information management tools & communications technology

4• A consolidated back office enabling efficient capture and storage of information,

standardization of IT systems and technology, and supporting system performance management

• Sector specificity in the front-line and the delivery of specialized services

• A joint effort in marketing, research and product development improving effectiveness and providing system-wide access to expertise

Strategic Thrusts Model attributes supporting the thrust*

*Not intended to be a comprehensive list



Considerations

System Integration & Alignment

− Fewer individual organizations as we move to a less distributed system

− Role transitions incorporating new reporting structures, modified responsibilities and accountabilities

− Reliance on standardized central delivery of support services while maintaining front-line sector specificity

− Cultural challenges and potential resistance to change associated with organizational realignment

Leadership

− Realignment of system leadership to future state organizational structures

− Clear direction and leadership to ensure a successful transition

Accountability

− Transition to a system-centric accountability structure, with a focus on integrated planning and enhanced performance management

Stakeholder Impact

− Significant organizational change has the potential to disrupt service continuity during transition

The future state vision will require fundamental changes across the system and will have implications for all partners

This raises a need for:

• Opportunistic Restructuring (e.g. expiring office leases, vacant support positions, retirements, etc)

• Strong leadership and a willingness to set the right incentives for change

• Sound planning and thoughtful execution to ensure a smooth transition

Key implications & considerations for the transition

mitigation



Next Steps

Next Steps

To move towards the envisioned future state, the following next steps are recommended

Explore future-state structure & processes

Explore new model details, including considerations for the structure, associated roles & responsibilities, process changes, enhanced performance management and system-centric accountability frameworks

Four working groups are currently underway, each focusing on a specific part of the new model

1

Conduct stakeholder consultation

Consult major stakeholder groups and incorporate feedback/input into design considerations for the new model, to ensure a comprehensive and balanced outlook in creating a future state driven by the goal of improved outcomes (rather than being inward focused)

2

Evaluate options for implementation

Develop options for consideration based on findings from 1 & 2 (above), conduct detailed cost-benefit-risk analyses and finalize the new model

Develop a sound business case for change

Create a high-level implementation plan

3



High level timeline

Proposed Timeline:

Explore future-state structure & processes

Conduct stakeholder consultation

Evaluate options for implementation

Aug

Explore back office consolidation options

2008

Sep Oct Nov Dec Jan

2009

Create a plan for northern Ontario

Explore opportunities for integrated planning across system partners

Create a strategy for Schedule 2 & Federally regulated firms

Develop framework

Explore additional opportunities

Synthesize findings

Set and communicate opportunistic restructuring requirements

1

2

3

Develop high level implementation plan

Develop business case for change

Jul

Execute implementation

Prepare for implementation

Conduct detailed cost-benefit-risk analyses for options

Conduct focus groups

Chamber of commerce survey

Consultations also include an Ipsos-Reid survey in November

We have put forward a timeline that ensures appropriate momentum – it requires focused effort by all participants

Four working groups are currently underway

Evaluate options and design recommended model

RPO MANAGEMENT CONSULTANTS

Appendix – Model details

Functional description



Model for discussion – functional view

The illustrative model provided allows for increased collaboration between system partners

Governance Minister of Labour WSIB Board of Directors Boards of Directors

Strategic PlanningIntegrated Planning (e.g. targeting, marketing strategy, etc)

Individual plans Individual plans Individual plans

Research and Product Development

Generic products, best practices, etc

Customized R&D Customized R&D Customized R&D

Set H&S Standards MOL policy branch WSIB & HSAs provide input to standards

Information provisionCentralized website for information

All client interactions All client interactions All client interactions

Enforcement Field inspectors WSIB & Prevention services orgs provide input for targeting workplaces

IncentivesPrevention – Standards and Incentives; Auditors

Guidance and education

Shared delivery of basic services; collaboration and hand-offs between WSIB and individual Prevention Services organizations

Disability Prevention Specialists Field staff – consulting, training & specialized services

MarketingCentralized marketing effort and cohesive branding

Individual marketing initiatives

Support services (Finance, IT, HR, Admin support, etc)

MOL back office WSIB back office Consolidated back office

*not intended to be a comprehensive list

Functional Area* MOL WSIB Prevention Services

Individual delivery Shared delivery Function not delivered

Legend

DRAFT – for discussion

Future State – Illustrative Model for discussion

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Occupational Health & Safety Council of Ontario Roles Review and Realignment

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