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A paradigm shift Leveraging Competitive Advantage Through Transforming an OH&SMS Presented by Rakesh Maharaj ARMSA Consulting ARMSA CONSULTING

A Paradigm Shift - Overcoming a siloed HSMS

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Using interactive planning to integrate operational risk control with business decision making

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Page 1: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shiftLeveraging Competitive Advantage Through Transforming an OH&SMSPresented by Rakesh Maharaj ARMSA Consulting

ARMSACONSULTING

Page 2: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

Exploring...… historical perspectives of EPS and the evolution of Health,

Safety and Environmental Management.

… the reasons for adopting an Applied Systems Thinking approach.

… the use of Applied Systems Methodology to diagnose, reframe and restructure its HSE Management Systems.

… the organisational effects of bottom-up change management.

… operational and organisational performance improvements.

Page 3: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

The historical perspective

Under CEGB operation:

• The main focus of the CEGB was to meet their ‘duty to supply’ electricity via the best Engineering methods available

• To ensure the safe operation and maintenance of plant and equipment

• In the most efficient way available.

Page 4: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

The historical perspective (cont.)

Newly Privatised – National Power

• Under privatisation the duty was now to the Shareholders.• The H&S focus of National Power was Policy, Principles

and Procedures.

• To meet the operating parameters of the new market.

Page 5: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

Present times

British Energy - Eggborough Power LimitedAims to achieve World Class Health and Safety performance that comprises:

• A Health and Safety Management System that leads business process.

• Sustainable behaviours to support its implementation both strategically and operationally.

Page 6: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

EPS goalsMake a step-change improvement in SHE performance to enable:

• Significant improvement in operational SHE performance metrics.

• Alignment of SHE metrics with business goals and objectives.

• Creation of partnerships between SHE Professionals and Dept Managers.

• Transformation of SHE from a ‘cost-of-doing-business unit’ into a value adding profit centre.

• Promoting inclusive thinking.

• Integrating health and safety with management decision thinking.• Instilling personal responsibility.

Page 7: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

Diagnostics – systems approach Diagnostics – systems approach

Competence ??

Reward/Recognition +

Clear Direction - -

Consultation +++

Accountability -

Co-operation - -

Personal ownership/Departmental

Investment - -

Leadership +/-

Management Control - -

Management System (+ve)

Safe attitudes(+ve)

Page 8: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

Approaching Intervention

Reactive Planning Tactically orientated

Dealt with by: ID deficiencies Project specific + individual solutions

Deficiencies Eliminating problem does not Guarantee desirable solution

Solutions are exclusive and do not deal with interactions

Preactive Planning Strategically orientated

Dealt with by: Prediction and preparation

Deficiencies Good for forecasting future

uncertainties

Solutions designed are almost never implemented because

plans are always for the future itself

Interactive Planning Strategically, tactically and operationally orientated

Dealt with by: Accepting that what is done now will affect the future

Process Designing desirable event(s) to control the future and selecting ways of approximating it as closely as possible

It deals with EPS as a system

Page 9: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

The attributes of IP• Treats EPS as a complete system and not a sum of

parts (departments).

• Aims at delivering solutions for consumers.

• Resolves management and operational conflicts.

• Outputs are perception (attitude) changing.

• Bottom – up effect of change management promotes transparency.

• Consumers get what they ask for.

• Reduces resistance to change – staff, contractors and Depts.

Page 10: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

Bottom-up change management The advantages

• Focuses on targets of change.

• Involves operational staff and departments in the first instance.

• End product is moulded according to need and expectation.

• Product is sensitive to business, operational and PEOPLE needs

• Implementation phase is pre-championed.

Page 11: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

The detailed processThe detailed process

Systems Analysis- Completed

Obstruction

Analysis

Select and coachConsumer Group

T1

T2 T4

T3 T5

Q1 Q2 Q3

Select and coachDesigner Group

T6

Workgroups - modification towards idealised state

Personnel

Facilitiesand

Equipment

Financial

BBS

HumanFactors Technology, Work and

Human Factors

Materials,Supplies and

Services

OrganisationalFactors

MessFormulation

ENDSPlanning

MEANSPlanning

RESOURCEPlanning

Implementation

Page 12: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

The process simplifiedThe process simplified

2 weeks 6 weeks 4 - 5 weeks ongoing

ConsumerProduct

Specification

ProductDesign

RemovingObstacles

ImplementProduct

Page 13: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

Mapping – an exampleMapping – an example

Maintenance Dept

Workshop

Assistant 1

Onsite Repairs Rapid Troubleshooting

Engineer 1 Equip. Maintenance Engineer 2 Fitter 2 Boiler Engineer Gas FitterElectrician

Assistant

Departmental Map

Function/Role Map

Activity MapOperations

Suppliers

Contractors

Operatives

Page 14: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

• Risk control

• Regulatory/Operational mapping and interpretation

• SHE training

• Personal skill and competence

• Front end project loading

• Work planning interface

• Service provider partnerships

• Knowledge management

• Staff selection

• Performance monitoring and auditing

Consumer group specification - Directives

Page 15: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

• To design an idealised system that will meet with Consumer Group specification to replace the SHE system that was recently destroyed;

• Use ALL SHE specifications and dissolve all consumer group issues – remember the consumers are now consultants; and

• Always consider role of stakeholders of the SHE system and therefore the impacts of its deliverables.

Designer group – the broad brief

Page 16: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

• The system designed must be technologically feasible and not incorporate any technology that is not currently available.

• The system must be compliant with the regulatory framework.

• The system must be operationally viable – fit for purpose. Not to be confused with immediate implementation.

• The system designed must accommodate future improvements.

Designer group – limitations

Page 17: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

To develop a management system that has the following characteristics:

• A mission statement.

• Comprise directives that are:

• Operationally focused i.e. cross departments;

Efficient to use and produce quality results; and –

Consistent with the needs of the end user. –

• Whose continuous improvement is driven by the appropriate stakeholders.

Designer group – outputs

Page 18: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

At EPS Safety, Health and Environmental consideration is central to our business of generating electricity. It is an objective shared and owned by everyone…

The Mission Statement - an example

The Mission Statement - an example

At EPS Safety, Health and Environmental consideration is central to our business of generating electricity. It is an objective shared and owned by everyone…

Business/SHE ideals Aspirational Stakeholders Exciting/ challenging/ inspiring

Page 19: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

Mission• Stakeholder driven• Proactive / prevention• Fully integrated with business• Revenue Enhancer / Value

Adder• Any other?

Function• Provides business,

operations, corporate and customer support.

• Precise regulatory interpretation for operations.

• Contributes to knowledge management, personal skill and competence.

• Compatible with other relevant directives.

Testing the ideal directive

Page 20: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

Process• Integrated with operations• Clear, concise and simple• Consistent with business,

operational and regulatory needs

• Automated?• Cross departmental

• Encourages action learning

Structure• Leveraged and distributed• Cross departmental• “Lowerarchical”• Synonymous with

competence development directives

• Business and line accountability

• SHE reports to SD

Testing the ideal directive

Page 21: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

• Significant improvement in operational performance. 42 tasks redesigned –

• Alignment of SHE metrics with business goals and objectives.business focussed mission statement, individual KPI’s - self set –

holistic views• Transformation of SHE from a ‘cost-of-doing-business unit’ into a value

adding profit centre.– re-organisation of planning and outage functions – integration of maintenance and operations depts

• Enhanced investment, organisational learning and informed decision-making amongst line employees in SHE related matters.

all ‘own’ the new business directives –• Identification of a wider range of creative and less expensive solutions to

SHE challenges.

The contributions

Page 22: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

Organisational contributionsOrganisational contributions

H&S Ownership Departmental interdependency and work integration Consultation and participation

Cont

ribut

ions

Widespread self-realisation that H&S is not a support function.

IP helped overcome an isolationist view of departmental operations.

Staff felt more engaged in the bottom-up transformation process and IP allowed them to contribute freely and constructively without fear of reprisals.

H&S is a function of the task and staff are empowered to make decisions holistically.

Departments realised that better interaction will allow for effective planning and risk control.

Knowing that the consumer idealised design process in IP would allow them to be creative, many participants began to realise that their jobs affected tasks around them

All departments are accountable for controlling risk created by their operations and providing detailed information on risks transferred to other departments.

Improved interaction between outage and work planning functions will enable adequate resourcing of long term or high hazard projects.

Many staff previously worked in isolation and had very little knowledge of where information pockets existed around the power station. IP broke down those barriers and staff now know who the subject matter specialists are and will call upon them in time of need.

Skills (including health and safety) needs analysis and apprenticeships will be a partnership function between each department and the training department.

Page 23: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

• It Health and safety problems are plural and complex.

• Resolving them outside organisational and operational context can lead to ineffective solutions.

• Selecting an appropriate intervention and change management methodology is fundamental.

• Remember the internal and external customer(s).

• Operationally focused systems interventions will yield business benefits and commercial gains.

Conclusion

Page 24: A Paradigm Shift - Overcoming a siloed HSMS

A paradigm shift Leveraging Competitive Advantage

ARMSACONSULTING

Rakesh Maharaj

Managing Director

ARMSA Consulting

Chadwick House

Birchwood Park

Warrington

WA3 6AZ

Cheshire, UK

email: [email protected]

Questions