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The business of sustainability
Contractor Safety Performance -Maximizing Your Influence
The business of sustainability
© Copyright 2018 by ERM Worldwide
Group Limited and/or its affiliates
(‘ERM’). All Rights Reserved. No part
of this work may be reproduced or
transmitted in any form or by any
means, without prior written
permission of ERM.
The business of sustainability
Contents
Getting Organized
■ Understanding the business need for contractors and where you want to go
■ Managing contractors and performance challenges
■ Setting expectations and goals
Leadership
■ Importance of leadership
■ Making work practices sustainable
■ Maximizing your influence
■ Looking at success
Building the Basics
■ Embedding safety into all stages
■ Influencing safety performance
■ Building competencies and capabilities
What does success look like?
The business of sustainability
More Relevant Than Ever in NorCal
3
• Businesses are growing and the economy is on a tear
• Construction is booming
• Companies are growing
• Increased outsourcing
• Different models for outsourcing (consolidation)
“The global REFM outsourcing market remains healthy and
continues to grow. A high number of end-user organizations
today, especially larger firms in western markets, have already
undertaken some level of REFM outsourcing, even if it has been
to outsource a few services (e.g., janitorial, cafeteria, and
amenities services). Leading organizations continue to move
more and more to an Integrated Facilities Management model.”
* Source: 2018 Global REFM Outsourcing Pulse Survey, KPMG
The business of sustainability
Pre-FEED
• Feasibility of selected concept
• Defining HSE Philosophies for FEED (ESD, Relief/Blowdown, Fire Protection, etc.)
FEED
• Facility siting
• Segregation of process units
• Other layouts (e.g. safety equipment, escape routes)
• Initial design
• Initial consideration of design operability (HAZOP)
• Understanding HSE Critical Equipment and Systems (HSECES)
• Initial performance requirements for HSECES
• Update HSE Philosophies for DD
Detailed Design
• Detailed design
• Adequacy of detection, shutdown, blowdown systems
• Passive / active fire protection systems
• Sufficiency of layers of protection
• Material selection
• Detailed specifications for HSECES
• Constructability
• Operability
• Maintainability
• Management of Change
Construction
• HSECES integrity assurance (QA/QC) from vendor selection through to equipment installation
• Management of Change
• Simultaneous Operations (in terms of Occ. Safety)
• Emergency Response (in terms of Occ. Safety)
Commissioning
• Pre-commissioning HSECES integrity assurance QA/QC
• Management of Change
• Simultaneous Operations (not just Occ. safety)
• Emergency Response (not just Occ. safety)
Operations and Maintenance
• Asset integrity
• Management of Change
• Simultaneous/ Concurrent Operations
• Emergency Response
Operations and Maintenance
• Asset integrity
• Management of Change
• Simultaneous/ Concurrent Operations
• Emergency Response
How to achieve Sustainable Safety in
such a complex system?
FEED contractor
to several EPC
contractors
Large change in
EPC contractor
teams – significant
ramp up in
construction staff
numbers
Change in EPC
contractor teams
- progressive
reduction in
construction
resources
Transition to
smaller O&M team
Company focus
changing from
mega-construction
to major hazard
operations
Unclear Process
Safety direction/
plan
A typical major project – and its HSE challenges
4
Company (many parts with a common goal, but usually competing objectives, rewards, etc.)
Contractor Contractor Several EPC Contractors
PMC Potentially Several PMCs
Contractor
The business of sustainability
Getting OrganizedWhat is the baseline and where do you want to go?
The business of sustainability
What is your baseline?
6
■ How are you using 3rd party contractors?
■ What business processes do you have in place?
■ How do you manage these contractors?
■ What are your expectations for contractors?
■ How does contractor performance impact your core business?
The business of sustainability
Contractor safety performance affects your business
Operational efficiency
Asset integrity
Morale
Reputation / license to operate
The business of sustainability
Typical measures to manage contractor safety
Contract Terms
Monitoring,Inspection,
Enforcement & Discipline
SafetyQualification& Selection
Criteria
Safety Rules &
ProceduresInduction /
Onboarding
Click to continue
Are you able to get the maximum value from
your investments in contractor safety?
The business of sustainability
Why is contractor safety management challenging?
Contract Terms
Monitoring,Inspection,
Enforcement & Discipline
SafetyQualification& Selection
Criteria
Safety Rules &
ProceduresInduction /
Onboarding
Language
Barriers
Expectations
(Unclear or Misaligned)
Delivery
Pressure /
Long hours
Culture
Differences
Skill /
Experience
Gaps
No Direct
Oversight or
Control
Turnover
Lowest
Cost
Contracts
Remote
Locations
High
Risk
Jobs
Disconnects
(Procurement
& Ops)
Click to continue
The business of sustainability
What are your short and long term goals?
11
Based on your understanding of business drivers and current
performance:
■ What are your risk and opportunity Paretos telling you?
■ What is the tolerance/ appetite for risk by your stakeholders, by your
decision makers
■ Workshops driven by data to achieve consensus and ownership
■ Set achievable short and long term goals
The business of sustainability
LeadershipThe importance of leadership and how to maximize your influence
The business of sustainability
LEADERSHIP
Behaviour and performance are driven by culture
Leadership directly influences the systems AND culture (via
visible commitment and actions of leaders at all levels)
drives PerformanceBehaviour drives
CULTURE
Achieving performance in a complex system
13
PROCESS
PLANTPEOPLE A safe organisation or project
occurs at the intersection and self
sustaining overlap between people,
process and plant
LP
The business of sustainability
Sustainable Safety performance by
creating a positive culture
based on engaged leaders and robust
technical systems and studies. We:
■ Understand the process safety and personal
safety risks that need to be managed
■ Develop a compelling vision for a safe project
and operations
■ Establish risk-based focus areas using our
technical expertise
■ Define leadership focus, skills and strategies to
drive the journey of change in terms of meeting
the overall vision and coaching in focus areas
■ Support technical assessments with discipline
specialists
Processes &
Procedures
Management
of Change
Human
Machine
Interfaces
Manpower
Planning
Communication
LEADERSHIPSPOKEN & VISIBLE
Risk
AssessmentSafety Critical
Tasks
Processes &
Procedures
Management
of Change
Human
Machine
Interfaces
Job Roles &
Leadership
Manpower
Planning
Competence
Assurance
Communication
Learning &
Improvement
LEADERSHIPSPOKEN & VISIBLE
Moving towards Sustainable Safety with ERM
15
The business of sustainability
Safer organisation or project
■ Decrease project variances
■ Decrease cycle time and budget risk
■ Decrease shutdowns and retrofits
■ Fewer process safety incidents
■ Fewer injuries and fatalities
More engaged and integrated workforce
Processes &
Procedures
Management of
Change
Human Machine
Interfaces
Manpower
Planning
Communication
LEADERSHIPSPOKEN & VISIBLE
Benefits of adopting Sustainable Safety
16
The business of sustainability
Example Sustainable Safety activities
17
TECHNICAL
Development of HSE Competence Assurance Framework for all levels
& stakeholders
Development of management systems including policies, philosophies, standards,
procedures & Manpower needs analysis
Formal & informal safety assessments & interactions
including HAZID, HAZOP, QRA, SIL, Construction, Behavioural
Quality etc.
Human factors engineering & critical task analysis / measurement
Information Solutions & Analytics of Critical Risks (Human & Process
based)
LEADERSHIP
Leadership Competence Assessment for Project Managers
Stakeholder Leadership Strategy Planning (defining leadership vision
,expectations, behaviours and SOPs)
Train-the-Leader on Safety Leadership Skills (Safety
Leadership Training) & Coaching for Leadership Impact and Focus in
key technical focus areas
Define leadership safety performance leading KPIs
The business of sustainability
Maximizing influence
✓ Positive and impactful interactions and engagement by all
✓ All interactions and engagements driving towards same safety
expectations
The business of sustainability
CURRENTSafety Outcomes
DESIREDSafety Outcomes
19
Maximizing influence
CURRENTSafety Outcomes
DESIREDSafety Outcomes
Click to continue
✓ Every interaction you have with a contractor is like a vector:
it has magnitude and direction.
✓ How many interactions are you having?
✓ How are those interactions impacting your contractors?
The business of sustainability
20
Maximizing your influence: (non) engagements
• You are probably not really interestedYou don’t go in the field to observe
your contractors’ work
• You accept the risks and set the standard
You go in the field, see the hazards, but don’t recognise the risks
You recognise the risks, but don’t interact
• You don’t learn anything about the causeYou interact by telling what is wrong
• You will understand and can coach the team to find solutions
You are asking questions and try to understand causes
If Then
The business of sustainability
21
Maximizing influence
Click to continue
CURRENTSafety Outcomes
DESIREDSafety Outcomes
Become the DESIREDSafety Outcomes
✓ Increase the number of engagements on safety
✓ Amplify the magnitude = more impact from your engagements
✓ Vectors all pointing in the right direction: being much more
conscious of the impacts you do have
The business of sustainability
22
Safety interactions with impact
▪ Take time to observe and use the
power of teamwork
▪ Recognize good practices
▪ Coach your leaders to identify risks and
potential consequences
▪ Coach them to engage to understand
and to set the standard
▪ Set the expectation that people will
watch out for each other
Contractors
YOU
Field
Supervisor Contractor
Build a culture of confidence, trust and a safer work
environment for and with contractors
The business of sustainability
Tailoring Your Audits
▪ Balance records review and documentation, time in the
field observing, and discussions with stakeholders to gain
a deeper understanding
▪ Targeted audits with deep dives into select programs,
processes, organizations
▪ Participative audits with non-EHS stakeholders
▪ Increase level of engagement
▪ Increase sense of ownership
▪ Increase safety awareness and competencies
The business of sustainability
Building on the BasicsUnderstandings, and Competencies
The business of sustainability
Induct / Onboard – Communicate vision,
values, expectations and standards to plan,
setup and execute work safely.
Execute – Engage in the field, identify and
mitigate hazards, and monitor safety
performance.
Contract & Plan – Embed safety
expectations into contract terms. Develop
project safety planning tools for accountability.
Close-out – Conduct post-job safety
evaluation, provide feedback. Incorporate
learnings into future plans & contractual tools.
Select – Assess competency, culture and
risk management: capabilities to perform work
in accordance with standards.
Qualify – Establish minimum safety
requirements for contract companies.
Embed Safety into Each Stage of Contractor Management
The business of sustainability
Understanding Your Leverage
Qualification Selection Contract
& Plan
Induct /
Onboard
Execute Close out
LOST SAFETY INFLUENCE POTENTIAL
Safety performance influence:
Use it or lose it
The business of sustainability
#1
Ensure contractor
management
processes
holistically
address safety
Key factors influencing contractor safety performance
The business of sustainability
#2
Enable co-ordination and
alignment between
• Procurement teams
• Contract holders
• Operational and executive leaders
• Contractors.
Key factors influencing contractor safety performance
The business of sustainability
#3
Transform interactions
and engagements to
maximize your influence
at every stage
Key factors influencing contractor safety performance
The business of sustainability
Building Competencies
• Do you and your contractors know what “safe” looks like?
• Do you and your contractors know what to do to mitigate
the identified hazards?
• Am I engaging learning in a positive and encouraging
way?
30
Remember:
There is no substitute for competence
The business of sustainability
31
Build capability: Critical hazard field guides
The business of sustainability
32
Reinforce Learning: Field Cards
The business of sustainability
Situation: A client was undergoing a campus expansion. Contractor pull and their internal project teams
rapidly grew to meet the demands. Despite having good programs in place, the rapid growth contributed to a
rise in safety incidents.
Approach: ERM completed a gap assessment of the company’s leadership, culture, management, and
programs. Results pointed towards improvement in the company’s contractor management culture. ERM
worked closely with their facilities team and their general contractor’s field management. (Supervisors, field
engineers, and foremen) to bridge gaps and reduce safety incidents.
Key Focus Areas:
1. Evaluate compliance, asses risk, and correct construction safety concerns
2. Coach the company’s facilities team in hazard identification and how to better identify and track specific
high-risk activities during construction work
3. Evaluate current processes, identify gaps, and assist in refining their contractor safety programs
4. Combine training and in-field coaching to induce behavioral change
Benefits:
Training and field coaching increased awareness of safety measures and earlier identification of high risk
activities through their “Work Authorization” program.
Created a shift towards a more open relationship between the client and contractors. This has lead to more
reporting and shared learning as evidenced by the increased use of their “work authorization” program and
their reduction of incidents/injuries.
Case Study
The business of sustainability
What does success look like?
34
• Key processes and plans are in place:
• Usable and fit for purpose
• From “stop-work” to “don’t start” work authority
• They do not sit on a shelf
• Key stakeholders understand their roles through effective
training, and reinforced with meaningful interactions
• Leaders foster a dynamic team culture which supports safe
values
• Meaningful engagements and coaching in the field by leaders
• Discussions – not just telling them when something goes wrong
• Building a team that truly cares about their teammates safety
• Recognize great results!
The business of sustainability
What does success look like?
35
■ Procurement operates in service of the project safety vision; e.g.
partnership in tendering, procurement and performance management
■ Establish and preserve an effective culture through phase transitions (e.g.
from Client to FEED Contractor, back to the Client, then EPC Contractor(s)
etc.)
■ Effectively on-board a rapidly growing and evolving design and
construction team from different backgrounds, speaking different
languages working with new management and supervisory teams
■ Use information management support to enable ‘big data’ analysis and
focused dashboard analytics for each project phase
The business of sustainability
Thank You!Questions and Answers
Mike Lewman, Partner, [email protected]
Heather Davis, Principal Consultant, [email protected]
ERM
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