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The business of sustainability

Contractor Safety Performance -Maximizing Your Influence


© Copyright 2018 by ERM Worldwide

Group Limited and/or its affiliates

(‘ERM’). All Rights Reserved. No part

of this work may be reproduced or

transmitted in any form or by any

means, without prior written

permission of ERM.


Contents

Getting Organized

■ Understanding the business need for contractors and where you want to go

■ Managing contractors and performance challenges

■ Setting expectations and goals

Leadership

■ Importance of leadership

■ Making work practices sustainable

■ Maximizing your influence

■ Looking at success

Building the Basics

■ Embedding safety into all stages

■ Influencing safety performance

■ Building competencies and capabilities

What does success look like?


More Relevant Than Ever in NorCal

3

• Businesses are growing and the economy is on a tear

• Construction is booming

• Companies are growing

• Increased outsourcing

• Different models for outsourcing (consolidation)

“The global REFM outsourcing market remains healthy and

continues to grow. A high number of end-user organizations

today, especially larger firms in western markets, have already

undertaken some level of REFM outsourcing, even if it has been

to outsource a few services (e.g., janitorial, cafeteria, and

amenities services). Leading organizations continue to move

more and more to an Integrated Facilities Management model.”

* Source: 2018 Global REFM Outsourcing Pulse Survey, KPMG


Pre-FEED

• Feasibility of selected concept

• Defining HSE Philosophies for FEED (ESD, Relief/Blowdown, Fire Protection, etc.)

FEED

• Facility siting

• Segregation of process units

• Other layouts (e.g. safety equipment, escape routes)

• Initial design

• Initial consideration of design operability (HAZOP)

• Understanding HSE Critical Equipment and Systems (HSECES)

• Initial performance requirements for HSECES

• Update HSE Philosophies for DD

Detailed Design

• Detailed design

• Adequacy of detection, shutdown, blowdown systems

• Passive / active fire protection systems

• Sufficiency of layers of protection

• Material selection

• Detailed specifications for HSECES

• Constructability

• Operability

• Maintainability

• Management of Change

Construction

• HSECES integrity assurance (QA/QC) from vendor selection through to equipment installation


• Simultaneous Operations (in terms of Occ. Safety)

• Emergency Response (in terms of Occ. Safety)

Commissioning

• Pre-commissioning HSECES integrity assurance QA/QC


• Simultaneous Operations (not just Occ. safety)

• Emergency Response (not just Occ. safety)

Operations and Maintenance

• Asset integrity


• Simultaneous/ Concurrent Operations

• Emergency Response

Operations and Maintenance

• Asset integrity


• Simultaneous/ Concurrent Operations

• Emergency Response

How to achieve Sustainable Safety in

such a complex system?

FEED contractor

to several EPC

contractors

Large change in

EPC contractor

teams – significant

ramp up in

construction staff

numbers

Change in EPC

contractor teams

- progressive

reduction in

construction

resources

Transition to

smaller O&M team

Company focus

changing from

mega-construction

to major hazard

operations

Unclear Process

Safety direction/

plan

A typical major project – and its HSE challenges

4

Company (many parts with a common goal, but usually competing objectives, rewards, etc.)

Contractor Contractor Several EPC Contractors

PMC Potentially Several PMCs

Contractor


Getting OrganizedWhat is the baseline and where do you want to go?


What is your baseline?

6

■ How are you using 3rd party contractors?

■ What business processes do you have in place?

■ How do you manage these contractors?

■ What are your expectations for contractors?

■ How does contractor performance impact your core business?


Contractor safety performance affects your business

Operational efficiency

Asset integrity

Morale

Reputation / license to operate


Typical measures to manage contractor safety

Contract Terms

Monitoring,Inspection,

Enforcement & Discipline

SafetyQualification& Selection

Criteria

Safety Rules &

ProceduresInduction /

Onboarding

Click to continue

Are you able to get the maximum value from

your investments in contractor safety?


Why is contractor safety management challenging?

Contract Terms

Monitoring,Inspection,

Enforcement & Discipline

SafetyQualification& Selection

Criteria

Safety Rules &

ProceduresInduction /

Onboarding

Language

Barriers

Expectations

(Unclear or Misaligned)

Delivery

Pressure /

Long hours

Culture

Differences

Skill /

Experience

Gaps

No Direct

Oversight or

Control

Turnover

Lowest

Cost

Contracts

Remote

Locations

High

Risk

Jobs

Disconnects

(Procurement

& Ops)

Click to continue


What are your short and long term goals?

11

Based on your understanding of business drivers and current

performance:

■ What are your risk and opportunity Paretos telling you?

■ What is the tolerance/ appetite for risk by your stakeholders, by your

decision makers

■ Workshops driven by data to achieve consensus and ownership

■ Set achievable short and long term goals


LeadershipThe importance of leadership and how to maximize your influence


LEADERSHIP

Behaviour and performance are driven by culture

Leadership directly influences the systems AND culture (via

visible commitment and actions of leaders at all levels)

drives PerformanceBehaviour drives

CULTURE

Achieving performance in a complex system

13

PROCESS

PLANTPEOPLE A safe organisation or project

occurs at the intersection and self

sustaining overlap between people,

process and plant

LP


Sustainable Safety performance by

creating a positive culture

based on engaged leaders and robust

technical systems and studies. We:

■ Understand the process safety and personal

safety risks that need to be managed

■ Develop a compelling vision for a safe project

and operations

■ Establish risk-based focus areas using our

technical expertise

■ Define leadership focus, skills and strategies to

drive the journey of change in terms of meeting

the overall vision and coaching in focus areas

■ Support technical assessments with discipline

specialists

Processes &

Procedures

Management

of Change

Human

Machine

Interfaces

Manpower

Planning

Communication

LEADERSHIPSPOKEN & VISIBLE

Risk

AssessmentSafety Critical

Tasks

Processes &

Procedures

Management

of Change

Human

Machine

Interfaces

Job Roles &

Leadership

Manpower

Planning

Competence

Assurance

Communication

Learning &

Improvement


Moving towards Sustainable Safety with ERM

15


Safer organisation or project

■ Decrease project variances

■ Decrease cycle time and budget risk

■ Decrease shutdowns and retrofits

■ Fewer process safety incidents

■ Fewer injuries and fatalities

More engaged and integrated workforce

Processes &

Procedures

Management of

Change

Human Machine

Interfaces

Manpower

Planning

Communication


Benefits of adopting Sustainable Safety

16


Example Sustainable Safety activities

17

TECHNICAL

Development of HSE Competence Assurance Framework for all levels

& stakeholders

Development of management systems including policies, philosophies, standards,

procedures & Manpower needs analysis

Formal & informal safety assessments & interactions

including HAZID, HAZOP, QRA, SIL, Construction, Behavioural

Quality etc.

Human factors engineering & critical task analysis / measurement

Information Solutions & Analytics of Critical Risks (Human & Process

based)

LEADERSHIP

Leadership Competence Assessment for Project Managers

Stakeholder Leadership Strategy Planning (defining leadership vision

,expectations, behaviours and SOPs)

Train-the-Leader on Safety Leadership Skills (Safety

Leadership Training) & Coaching for Leadership Impact and Focus in

key technical focus areas

Define leadership safety performance leading KPIs


Maximizing influence

✓ Positive and impactful interactions and engagement by all

✓ All interactions and engagements driving towards same safety

expectations


CURRENTSafety Outcomes

DESIREDSafety Outcomes

19




Click to continue

✓ Every interaction you have with a contractor is like a vector:

it has magnitude and direction.

✓ How many interactions are you having?

✓ How are those interactions impacting your contractors?


20

Maximizing your influence: (non) engagements

• You are probably not really interestedYou don’t go in the field to observe

your contractors’ work

• You accept the risks and set the standard

You go in the field, see the hazards, but don’t recognise the risks

You recognise the risks, but don’t interact

• You don’t learn anything about the causeYou interact by telling what is wrong

• You will understand and can coach the team to find solutions

You are asking questions and try to understand causes

If Then


21


Click to continue



Become the DESIREDSafety Outcomes

✓ Increase the number of engagements on safety

✓ Amplify the magnitude = more impact from your engagements

✓ Vectors all pointing in the right direction: being much more

conscious of the impacts you do have


22

Safety interactions with impact

▪ Take time to observe and use the

power of teamwork

▪ Recognize good practices

▪ Coach your leaders to identify risks and

potential consequences

▪ Coach them to engage to understand

and to set the standard

▪ Set the expectation that people will

watch out for each other

Contractors

YOU

Field

Supervisor Contractor

Build a culture of confidence, trust and a safer work

environment for and with contractors


Tailoring Your Audits

▪ Balance records review and documentation, time in the

field observing, and discussions with stakeholders to gain

a deeper understanding

▪ Targeted audits with deep dives into select programs,

processes, organizations

▪ Participative audits with non-EHS stakeholders

▪ Increase level of engagement

▪ Increase sense of ownership

▪ Increase safety awareness and competencies


Building on the BasicsUnderstandings, and Competencies


Induct / Onboard – Communicate vision,

values, expectations and standards to plan,

setup and execute work safely.

Execute – Engage in the field, identify and

mitigate hazards, and monitor safety

performance.

Contract & Plan – Embed safety

expectations into contract terms. Develop

project safety planning tools for accountability.

Close-out – Conduct post-job safety

evaluation, provide feedback. Incorporate

learnings into future plans & contractual tools.

Select – Assess competency, culture and

risk management: capabilities to perform work

in accordance with standards.

Qualify – Establish minimum safety

requirements for contract companies.

Embed Safety into Each Stage of Contractor Management


Understanding Your Leverage

Qualification Selection Contract

& Plan

Induct /

Onboard

Execute Close out

LOST SAFETY INFLUENCE POTENTIAL

Safety performance influence:

Use it or lose it


#1

Ensure contractor

management

processes

holistically

address safety

Key factors influencing contractor safety performance


#2

Enable co-ordination and

alignment between

• Procurement teams

• Contract holders

• Operational and executive leaders

• Contractors.



#3

Transform interactions

and engagements to

maximize your influence

at every stage



Building Competencies

• Do you and your contractors know what “safe” looks like?

• Do you and your contractors know what to do to mitigate

the identified hazards?

• Am I engaging learning in a positive and encouraging

way?

30

Remember:

There is no substitute for competence


31

Build capability: Critical hazard field guides


32

Reinforce Learning: Field Cards


Situation: A client was undergoing a campus expansion. Contractor pull and their internal project teams

rapidly grew to meet the demands. Despite having good programs in place, the rapid growth contributed to a

rise in safety incidents.

Approach: ERM completed a gap assessment of the company’s leadership, culture, management, and

programs. Results pointed towards improvement in the company’s contractor management culture. ERM

worked closely with their facilities team and their general contractor’s field management. (Supervisors, field

engineers, and foremen) to bridge gaps and reduce safety incidents.

Key Focus Areas:

1. Evaluate compliance, asses risk, and correct construction safety concerns

2. Coach the company’s facilities team in hazard identification and how to better identify and track specific

high-risk activities during construction work

3. Evaluate current processes, identify gaps, and assist in refining their contractor safety programs

4. Combine training and in-field coaching to induce behavioral change

Benefits:

Training and field coaching increased awareness of safety measures and earlier identification of high risk

activities through their “Work Authorization” program.

Created a shift towards a more open relationship between the client and contractors. This has lead to more

reporting and shared learning as evidenced by the increased use of their “work authorization” program and

their reduction of incidents/injuries.

Case Study



34

• Key processes and plans are in place:

• Usable and fit for purpose

• From “stop-work” to “don’t start” work authority

• They do not sit on a shelf

• Key stakeholders understand their roles through effective

training, and reinforced with meaningful interactions

• Leaders foster a dynamic team culture which supports safe

values

• Meaningful engagements and coaching in the field by leaders

• Discussions – not just telling them when something goes wrong

• Building a team that truly cares about their teammates safety

• Recognize great results!



35

■ Procurement operates in service of the project safety vision; e.g.

partnership in tendering, procurement and performance management

■ Establish and preserve an effective culture through phase transitions (e.g.

from Client to FEED Contractor, back to the Client, then EPC Contractor(s)

etc.)

■ Effectively on-board a rapidly growing and evolving design and

construction team from different backgrounds, speaking different

languages working with new management and supervisory teams

■ Use information management support to enable ‘big data’ analysis and

focused dashboard analytics for each project phase


Thank You!Questions and Answers

Mike Lewman, Partner, [email protected]

Heather Davis, Principal Consultant, [email protected]

ERM

mailto:[email protected]

mailto:[email protected]

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