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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
3RPO MANAGEMENT CONSULTANTS
CONFIDENTIALNot for Distribution
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:
4RPO MANAGEMENT CONSULTANTS
CONFIDENTIALNot for Distribution
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
5RPO MANAGEMENT CONSULTANTS
CONFIDENTIALNot for Distribution
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
6RPO MANAGEMENT CONSULTANTS
CONFIDENTIALNot for Distribution
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
7RPO MANAGEMENT CONSULTANTS
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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
8RPO MANAGEMENT CONSULTANTS
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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
9RPO MANAGEMENT CONSULTANTS
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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
10RPO MANAGEMENT CONSULTANTS
CONFIDENTIALNot for Distribution
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
11RPO MANAGEMENT CONSULTANTS
CONFIDENTIALNot for Distribution
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
12RPO MANAGEMENT CONSULTANTS
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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
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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
14RPO MANAGEMENT CONSULTANTS
CONFIDENTIALNot for Distribution
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
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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
17RPO MANAGEMENT CONSULTANTS
CONFIDENTIALNot for Distribution
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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