1

Safety Leadership: Many Returns

TEAM 6:

Tom, D J, John, Mary, & Vint

2

Project Development

Evaluated EHS IssuesPrioritized against Corp. ValuesSafety Leadership and Management

Involvement identified as the greatest opportunity for success

3

Objectives

Reduced Injury Rates by 80% over the next three years.

Realize significant reductions in associated Work Comp costs over the next three years.

Improved Morale, Retention and Reduced Employee Complaints

4

EHS Strategy MapKey EHS

Opportunities

StakeholderInvolvement

Learning &Growth

EffectiveProcesses

Increase Safety Leadership and Management Involvement to EHS as measured by 80% reduction in Injury rates and Work Comp costs over three years.

MGR – develop policy & budget by 1/1/05; include ES&H in all Performance Reviews 4/1/05; 100% participation in team, investigation, & training by 4/1/05

By 4/1/05: Start Safety Committee, Initiate Incident Investigation Program, Start Employee feedback team, revise Perf Review to include ESH,

Attend Safety Leadership training by 1/1/05 and all ESH training for supervisors & employees by 7/1/05

5

EHS Strategy MapKey EHS

Opportunities

StakeholderInvolvement

Learning &Growth

EffectiveProcesses

Increase Safety Leadership and Management Involvement to EHS as measured by 80% reduction in Injury rates and Work Comp costs over three years.

SUPERVISORS -- include ES&H in all Performance Reviews by 8/1/05; 100% participation in team, investigation, & training; 100% on monthly walkthroughs/inspections by 8/1/05

Monthly Inspection/Walk through process by 8/1/05; Quarterly Permit Review process by 9/1/05

Attend all ESH training for supervisors & employees -- Incident Investigation, JSA/JHA, Safety SOPs, Inspections by 7/1/05

6

EHS Strategy MapKey EHS

Opportunities

StakeholderInvolvement

Learning &Growth

EffectiveProcesses

Increase Safety Leadership and Management Involvement to EHS as measured by 80% reduction in Injury rates and Work Comp costs over three years.

EMPLOYEE – 100% participation in teams, investigation, & training by 8/1/05

Start Feedback Team & Suggestion program by 7/1/04

Attend all ESH training for supervisors & employees by 7/1/05

7

EHS Strategy MapKey EHS

Opportunities

StakeholderInvolvement

Learning &Growth

EffectiveProcesses

Increase Safety Leadership and Management Involvement to EHS as measured by 80% reduction in Injury rates and Work Comp costs over three years.

ESH

Implement Performance Monitoring System; Initiate Tracking system for all ESH meetings, inspections, reviews, & suggestions by 8/1/05, Implement training by 1/1/05

Attend Safety Leadership training and all ESH training for supervisors & employees by 4/1/05

8

Project Benefits

TANGIBLEDecreased Workers

Compensation CostsInjury Rates

Reduced

INTANGIBLEImproved CultureValues AlignmentMoraleProductivityReduced Labor costs

9

Estimated Project Costs

Year ConsultingTraining Total Costs1 20,000$ 25,000$ 45,000$ 2 5,000$ 10,000$ 15,000$ 3 5,000$ 10,000$ 15,000$ 4 -$

Total Costs = 75,000$

Costs to Implement

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Estimated SavingsSavings to be Realized

Year WC costs Total Savings1 43,000$ 43,000$ 2 85,000$ 85,000$ 3 128,000$ 128,000$ 4 -$

Total Saving = 256,000$

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Financial Analysis

Present Value of Savings: PV(Savings)

$228,621

Net Present Value of Savings: NPV(Savings)

$159,201

Payback Period: 10 months

ROI (3 Years): 229 % net

Internal Rate of Return

(3 Years):3555 %

12

Conclusions and Recommendations

Management Leadership and Involvement is an excellent investment

It really only requires participation and engagement by the Management Team

The Intangible and Tangible Returns are hard to match.

NEXT STEP: Approve the request and we’ll start the training!