Key Models and Methodologies to Achieve Safety Excellence

WHAT LEADERS DO TO ACHIEVE SAFETY EXCELLENCE

• Kevin EllisonSenior Safety Consultant

Caterpillar Inc.

MBA, Six Sigma Black Belt Certified

• Kevin Ellison’s Career Journey

Getting to Know Each Other

– Expose participants to a number of models of excellence for leadership and accountability.

– Provide tools for leaders to create and sustain a culture of safety excellence

– Understand the “Six Criteria” required to achieve safety excellence.

– Understand why “Accountability” at every level is critical to achieve safety excellence.

– Identify the characteristics of a world-class safety culture– Share examples of culture change success– Equip participants to walk away with specific actions they

can take to help their organizations achieve safety excellence.

Objectives

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Doug Oberhelman | Chairman & CEO | Caterpillar Inc.

INTRODUCTION VIDEO

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Caterpillar Safety Journey

6.22

5.01

3.94

3.07

2.20

1.66

1.17 1.181.03 1.02

0.78 0.710.59 0.6

0

1

2

3

4

5

6

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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020

Safety SIP

37%

Vision Zero

44%

Ergo SIP & CPS

54%

Cultural Transformation

42%

Target

Recordable Injury Frequency

Caterpillar Safety Journey

2003-2015

128,000 Workforce Employees65,612 Prevented Injuries

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Lao-Tzu — Great Chinese Philosopher

“As for the best leaders, the people do not notice their existence.

The next best, the people honor and praise. The next, the people

fear. And the next, the people hate. When the best leader‟s work is

done, the people say, „We did it ourselves.‟”

LEADERSHIP

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LEADERSHIP

• How would you complete this sentence?

• “Leadership is a

____________”

•

relationship

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1. Character2. Charisma3. Commitment4. Communication5. Competence6. Courage7. Discernment8. Focus9. Generosity10.Initiative11.Listening

12.Passion13.Positive Attitude14.Problem Solving15.Relationships16.Responsibility17.Security18.Self-Discipline19.Servant hood20.Teach ability21.Vision

“The 21 Indispensable Qualities Of A Leader” by John C. Maxwell

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LEADERSHIP & CULTURE

WHAT IS A SAFETY CULTURE?

– How we do things here

– What we do without thinking

– What we do when the boss isn’t around

– Result of our backgrounds, experience, industry

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Exploring leadership and how it impacts the safety culture.

What did you hear?

HOW WE LEAD — VIDEO

1. Safety goals are clear and shared.2. Culture manages safety behavior without over-

reliance on safety policies.3. People are trusted to make decisions according to

the information they know rather than their role in the hierarchy.

4. Rewards are balanced between production, safety and quality.

5. Mistakes are seen as an opportunity to learn.6. Important information is communicated face-to-

face.7. Everyone in the organization has the right to refuse

or stop an unsafe job.8. Safety is seen as a strategic business objective by

all.

Characteristics of World Class Safety Culture

– We all cast a shadow – the key is the choice to cast the best shadow we can

– We are accountable for the effect we have on others

– Set the scene for the culture

– Provide direction

– Inspire and motivate people to follow

– Know that leadership comes from all levels of the organization

The Leader’s Role

– What we pay attention to

– How we react to critical incidents

– Setting the example, role modeling and teaching

– Setting criteria for rewards, status, promotion, recruitment

– Making the case for change and communicating

– Visible commitment, involvement and participation

How Leaders Shape Culture

– Making the Case for Change – Communicating the consequences of success or failure in terms of safety, human and business costs

– Shared Vision – Developing and translating a plan for the desired culture

– Building Trust – Practicing respect and re-examining negative assumptions

– Developing Capability – Acquiring the skills and means to solve problems

– Recognition – Focus on positive recognition (specific, timely, frequent, sincere and confirmed).

Key Leadership Practices

• There are certain leadership attributes that, when present in an individual, will enable that person to effectively lead and sustain a culture of safety excellence.

• For an organization to achieve world class safety performance, its leaders need to live-out these attributes so there is alignment throughout the organization from senior leaders to front-line supervisors.

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Foundational Premise

CATERPILLAR: CONFIDENTIAL YELLOW

Why Incidents Occur:Conditions or Behaviors?

Risky Behaviors

90%

What percentage of incidents occur based on conditions vs. behaviors?

AT-RISKBEHAVIOR

INCIDENT

Leadership Shapes the Culture

CULTURE

NORMSATTITUDES

BELIEFSIDEAS

AT-RISKBEHAVIOR

INCIDENT

Root Causes

Leadership shapes culture!

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• Leadership (lēd΄ər ship΄), n. the ability to lead others; to lead means to show the way or direct the course of by going before or along with.

• “A leader is anyone who has a follower.”

Leadership – The Core Ingredient

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Three skills that enable Emergent Leadership

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The Leader-Ship:Which Ship Are You On?

Hardship

Friendship

Battleship

Relationship

Peo

ple

Ori

enta

tio

n

Task Orientation

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BUILD TRUST

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Safety As A Value — Trust Video

TRUST

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Stephen M.R. Covey — “The Speed of Trust”

“It‟s the one thing that changes everything!”

BUILD TRUST

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The Five Dysfunctions of a Team

by Patrick Lencioni© 2002 The Table Group

Avoidance of Accountability

Lack of Commitment

Fear of Conflict

Inattention to Results

Absence of Trust

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TRUST REFLECTION

• Think of someone you highly trust

– Why do you trust them?

– What behaviors do they demonstrate that build your trust?

– What behaviors can you demonstrate that will build trust with others?

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– Keep commitments

– Talk straight

– Do what they say

– Dependable

– Behave with integrity

– Live your values

– Open & honest

– Get results

– Listen

– Communicate well

– Extend trust to others

– Passion for the cause

– Transparent

– Competent

– Respect others

– Real & genuine

– Make things right

– Show loyalty

– Value improvement

– Confront reality

– Practice accountability

Behaviors that build high trust

BUILD TRUST

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CREATE ACCOUNTABILITY

ACCOUNTABILITY

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• What is accountability?

– Accepting responsibility for and providing satisfactory explanations of one’s own actions and deeds

– Opposite of blaming

Basic Beliefs

Keys to Effective Safety Culture

Accountability

InvolvementCommitment

Four Steps of Accountability

Accountability:World Class vs. Traditional

ACCOUNTABILITY DEFINE TRAIN MEASURE RECOGNIZE

•Compliance•Rules•Technical only•Supervisor’s don’t

need training.

•No. of accidents•Negative•Failures•What is not

intended

•Maybe; long term•Perceived as unfair•De-motivating•Not within one’s

control

•Actions taken to prevent incidents

•Quantity/quality of effort is positively perceived.

•Frequent•Sincere•Motivating – want

to do it again

•Results• Lagging indicators• Invalid

•Actions to take proactively

•By individual or workgroup

•Enables success•Soft skills• Leadership•Problem solving

W O R L D C L A S S

T R A D I T I O N A L

– An effective safety culture has accountability interwoventhroughout the organization

– Everyone engages in the system, helps build it

– Define each person’s role• Safety Actions: In my

position, what can I do to ensure your and my safety?

– Train: Each person

Accountability across all Levels

Implementing Change:Focus Expectations on Activities

ACCOUNTABILITY IN PRACTICE

– Everyone on the team knows what is expected and how it is measured.

– High quality training is provided to ensure competence.

– Appropriate feedback is provided to ensure accuracy of execution.

– All employees have the resources they need to do their work.

• How would you rate the leadership group in your organization on its current ability to drive accountability among all levels in your organization?

Very strong

Strong

Average

Weak

vote

Which take you from Good to Great

ADDITIONAL MODELS & METHODOLOGIES

— Jim Stuart

“To achieve a goal you have never achieved before, you must

start doing things you have never done before.”

– 45 years ago: Eliminate fatalities

– 25 years ago: Eliminate Lost Time Injuries

– 10 years ago: Globally excellent companies try to zero out all medical injuries

– A relentless pursuit of ZERO

• Each Month

• Each Week

• Each Day

• Forever

Is zero really possible?

– Top management is visibly committed

– Middle management is actively involved

– Front-line supervision is performance-focused

– Employees are actively participating

– System is flexible to accommodate the culture

– Safety system is positively perceived by the workforce

Six Criteria for Safety Excellence

— Dan Petersen Ed.D.

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Speak Up – Listen Up – CEO Carlson Intro Video

VISIBLE LEADERSHIP

• How would you rate the top management group in your organization on its visible commitment to safety excellence?

Very strong

Strong

Average

Weak

vote

Safety excellence > Comprehensive approach

Excellence

• A process to achieve safety culture excellence.

– ENGAGE – Leadership

– ASSESS – Current State

– BUILD – A Strategic Plan

– DEVELOP – Tactical gains using CI Teams

– IMPLEMENT – Error Proof Processes

– CHECK – Progress

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ZIP™: Zero-IncidentPerformance Process

Where are you?

• How would you rate the engagement level in your organization, specifically the use of effective data-driven safety teams ?

Very strong

Strong

Average

Weak

vote

SCE Safety Culture Journey Roadmap

MGE Overview

• Generates and distributes

electricity to 143,000

customers in Dane County.

• Purchases & distributes

natural gas to 149,000

customers in seven south-

central & western Wisconsin

counties.

• MGE's roots in the Madison

area date back more than

150 years.

• 700+ employees

Madison Gas & Electric (MGE) Safety Journey

2009 – Safety Executive Team (SET) and Safety Management Team (SMT) created

2009 – Requested Outside safety review

2009-2012 – Compliance Focus (Rewrite of MGE Safety Manual)

2012-2013 – Corporate Safety Initiative, evaluate options to move from good to great – CAT Safety Services chosen

2014 – SET/SMT management training

Safety Perception Survey (SPS) and Focus Group Interviews (June/July) 86% participation rate

SPS Management Report out/ Employee Report out (Sept/Oct)

Safety Steering Team Formed and Trained (Nov)

Continuous Improvement Team #1 Rapid Improvement Workshop (Dec) “Quality Safety Meetings (QSM)”

MGE Safety Journey

2015 – Pilot QSM’s and mini SCEW’s (Jan)

All Supervisory staff SCEW’s (Mar)

Operations SCEW and QSM Rollout - All Operations employee’s (June/July)

Action Items Database Created (Oct)

CI Team #1 Report out to SST/SET (Dec)

2016 – Safe Start Team (CI Team #2) Job Briefings (Jan)

Pilot (Mar)

Second SPS in fall 2016

Training/Education focus at all levels

Summary

Basic Beliefs

Accountability

Involvement

Commitment

We’re all accountable for safety

We’re ‘Better Together’

Set a personal example

Facilitate meaningful safety conversations

Encourage active involvement

Define safety actions

Train Measure (check)

Recognize

S.T.A.R.T.

Module 3: How to Engage and Involve Employees

© 2016 Caterpillar All Rights Reserved

CAT, CATERPILLAR, ZIP, S.T.A.R.T., their respective logos, ―Caterpillar Yellow‖ and the POWER EDGE trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

Email us at SafetyServices@cat.comor Kevin Ellison at ellison_kevin@cat.com

QUESTIONS &ADDITIONAL INFORMATION

• Tools available to foster increased leadership engagement and safety culture influencing conversations at all levels of your organization . . .– Safety Perception Survey

– Leadership Roundtable

– S.T.A.R.T.™ – Supervisor Training in Accountability and Recognition Techniques

– Speak Up! / Listen Up!

– Recognize It

CAT Safety Services Tools