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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
JOURNEY TO PROCESS SAFETY & OPERATIONAL EXCELLENCE
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
© 2019 DSS Sustainable Solutions. All rights reserved. Confidential
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?
JOURNEY TO PROCESS SAFETY & OPERATIONAL EXCELLENCE
5
© 2019 DSS Sustainable Solutions. All rights reserved. Confidential
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
© 2019 DSS Sustainable Solutions. All rights reserved. Confidential
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
© 2019 DSS Sustainable Solutions. All rights reserved. Confidential
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
© 2019 DSS Sustainable Solutions. All rights reserved. Confidential
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
© 2019 DSS Sustainable Solutions. All rights reserved. Confidential
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
© 2019 DSS Sustainable Solutions. All rights reserved. Confidential
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
© 2019 DSS Sustainable Solutions. All rights reserved. Confidential
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%
21-O
ct
28-O
ct
04-N
ov
11-N
ov
18-N
ov
25-N
ov
02-D
ec
09-D
ec
16-D
ec
23-D
ec
30-D
ec
06-J
an
13-J
an
20-J
an
27-J
an
03-F
eb
10-F
eb
17-F
eb
24-F
eb
03-M
ar
10-M
ar
17-M
ar
24-M
ar
31-M
ar
07-A
pr
14-A
pr
21-A
pr
28-A
pr
05-M
ay
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
© 2019 DSS Sustainable Solutions. All rights reserved. Confidential
CASE STUDY #1: LEADING PETROCHEMICAL COMPANY
Case Study #1 – Leading Petrochemical Company
Sustaining risk reduction through Area Transformation at Front Line (1/2)
“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
© 2019 DSS Sustainable Solutions. All rights reserved. Confidential
CASE STUDY #1: LEADING PETROCHEMICAL COMPANY
Case Study #1 – Leading Petrochemical Company
Sustaining risk reduction through Area Transformation at Front Line (2/2)
RISK REDUCTION & IMPACT
different departments
14
© 2019 DSS Sustainable Solutions. All rights reserved. Confidential
CASE STUDY #2: LEADING PETROCHEMICAL COMPANY
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
▪ Risk Containment
▪ Mindsets & Behaviours
▪ Operating Rhythm
▪ Observations & Audits
▪ Standard Operations
Procedures
▪ Management of Change (Facility
Change Request)
▪ Visible Felt Leadership
▪ Safety Governance & Performance
Management
▪ Risk Containment
▪ 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
Case Study #2 – Leading Petrochemical Company
The Journey
15
© 2019 DSS Sustainable Solutions. All rights reserved. Confidential
Beliefs & Principles are the foundational
elements from which Visible Felt Leadership
& Life Saving Rules are built
CASE STUDY #2: LEADING PETROCHEMICAL COMPANY
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
© 2019 DSS Sustainable Solutions. All rights reserved. Confidential
▪ 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
PROTECTING PEOPLE. IMPROVING OPERATIONS.
© 2019 DSS Sustainable Solutions. All rights reserved.
The DuPont Oval Logo is a registered trademark of DuPont de Nemours, Inc.