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The Human Element of the

Sustainable Maritime Transportation System

IMO World Maritime Day Symposium

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Agenda

Ship Owner/Operator Perspective

» Sustainability

- Sustainable Business Model

» Human Element

- Sustainable Organisation Performance

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Sustainability

» Sustainability …..

….. to create enduring value for our companies, organisations,

shareholders, all stakeholders, NGO’s, and employees

» Sustainability is ensuring the long-term health and success of our

people, our business, and the environment that we work and live in

» Sustainability is the focus on our People, our Planet, and our Profits

» …..“a triple bottom line for business”

» Need for a new strategy

…..at its heart…Sustainability

» Long-term operational and commercial success

is inextricably linked to Sustainability

» Risks, Challenges, and Opportunities

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People – Operational Leadership

» Frame of reference is Operational Leadership

» Not just another campaign

» Strengthens our Safety Culture

» Clarifies Leadership Expectations

» Make it Personal…

» Planning of Work

» Risk Management Tools

» Ownership & Accountability

» Communication Platform

» Engage our People

» Alignment & Understanding

» Make a Personal Commitment

» Must be an Operational Leader

» …..It’s a Journey!

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Planet - Environmental Leadership

» Environmental Leadership Programme

Frame of Reference: Our Environment – Our Responsibility

Vision, Initiatives, Goals, and Measures – 5-Year Strategy

» Safety Roadmap aim to achieve a safety culture driven by

successful team units, operational behaviours

Supports Operational Leadership – ‘line of sight

Human Element – commitment / effective management

» New Standards in Ship Design - Eco-Efficiency

Innovative design of next generation Tankers

Aerodynamic hull, de-rated engine, slower propeller

Next generation LNG Carriers

MEGI (Main Engine Gas Injection) 30t /pd < DFDE

» Continuous Improvement & Verification

Annual Ship Audits – all vessels

Quality Assurance Training Officers (QATO)

NAMEPA 2013 Award Our Environment – Our Responsibility

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Profits – Financial Sustainability

» Teekay Corporation is a leading provider of international oil and gas marine

transportation services as well as offshore oil production, storage and

offloading services, primarily under long-term, fixed-rate contracts

3 Strategic Drivers:

• Allocate capital to

maximize

Teekay’s return on

investment

• Manage balance

sheet for financial

flexibility

• Source, secure and

execute on organic

growth projects

• Source and

integrate third party

acquisitions

• Raise capital to

finance projects

• Deliver strong

operations and

safety

performance

• Continuous focus

on operating

costs and

profitability

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Human Element

Strategic Focus – Globalised World

» ‘Transnational’

Key Success Factor

» Understand the Global Market

Trends & Main Drivers

Validate What You Know Intuitively!

Use Demographics as a Strategic Tool

» Multinational Crewing Strategy

Making sense of it all

Quality Criteria

Setting Standards – SCOPE

» Marine HR Best Practice

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TEEKAY SHIPPING

» Seafarer Competence for Operational Excellence

» Competency Standards based Teekay best practice

» 3 Levels: All ranks incl. Master and Chief Engineer:

Core Competencies: Safety; Environment

Teekay Specific: Operations; Ship; Equipment

Management/Leadership: Values; Teamwork

» Continuing Professional Development (CPD)

-Seafarer drives career development

-Practical Assessment, Mentoring, Training (ROI)

» One Benchmark for performance - all nationalities

» Provides a platform to drive business strategy

- goal-setting and performance review

- new business and new technology

» Industry Recognition

» Developing Human Resources as differentiator !

Strategic Focus – Setting Standards

Competence = Knowledge, Skill, Aptitude, and Attitude

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Strategic Focus

New Vessel /

New Technology

Competencies to

manage a Modern Fleet

Customer (C/P) defined

Competencies/Requirements

Ship Team and CMC

- Identify knowledge and skills gaps

- Defines competencies to cover gaps

Manpower Strategy

- Implementation Plan (training)

- Training Pipeline

- Cross - Training

Embed Competencies

in SCOPE

Manpower Plan

- Training completion

- Schedule for joining

- Performance Management

– Sustainability in Training & Education

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Marine HR Best Practice

» Competency Stringent Recruitment Process/Quality Criteria

SCOPE – Competency Management System

Maintain Professional Standards

Management/Leadership

» Talent Management Identify and develop potential – Future Leaders

Training Pipeline for Growth

SCOPE - Ship to Shore Programme

Career Progression/Succession Planning

» Engagement Efficiency in Operations/Service to Employees

Quality of Life - Work/Life Balance (1:1)

Provide Support – Welfare/Compassionate

Company Culture – ‘hearts and minds’ - Belonging

Employment Package/Terms & Conditions

Employee Surveys – internet

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TEEKAY SHIPPING

Human Capital

» The contribution of people, their skills and knowledge

in production/delivery of goods and services

» Financial capital is not the only critical resource

that needs to be managed

» Recognizing that the company’s scarcest resource

is knowledgeable people

shift in the concept of value management

» People are the Key Strategic Resource

Focus on knowledge creation and learning processes

Unlike Capital, Knowledge increases when shared

» “People are their most important asset!”

Systems, Processes, and Culture to support

Attract and Energize – talented capable People

Leverage of Human/Intellectual Capital

» Human Capital is the differentiator for organisations …..

…..and the basis for competitive advantage!

accrual

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Human Element

» Downloaded more than 150K times – and DVD

» Perceptions of Risk

» ‘Resilience Engineering’

» ‘Mindset Analysis’

not hindsight analysis – standard incident review

» Links to Operational Leadership

Insights feature in training and performance reviews

Skills to be Operational Leaders – Tangible Outcome

» Corporate announcement to personal ownership

Board to front-line operations – ‘line of sight’

» 4 Key Leadership Characteristics:

Responsibility - Recognition - Reporting - Accountability

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Sustainable Organisation Performance

• The maintenance of high performance levels with respect to

Financial Indicators; People Management; Environmental &

Societal Contributions

• We focus on three main Drivers and Enablers:

Leadership Engagement Organisation

Development

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Sustainable Organisation Performance

Leadership Engagement Organisation

Development • Senior Leadership

empowering others

• Line Managers who

support and help

employees

• Vision and Values

that are perceived

as valid by all

• Organizational

purpose with which

employees are

engaged

• Line managers with a

motivating and

engaging

management style

• Aligned to the needs

of the organisation, as

well as their team

• Sharing knowledge and

learning across functions

and departments

• Organisational design that

breaks down barriers with

flexibility and agility to meet

short and long-term needs

• People management that

aligns individual and

organization goals, with

structured career planning

and opportunities

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Operational Leadership

»Sustainability

»Human Element

…..It’s a Journey