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A Paradigm Shift - Overcoming a siloed HSMS
The document discusses transforming an organization's occupational health and safety management system (OH&SMS) using an applied systems thinking approach. It explores the historical perspectives of health, safety and environmental management at the organization. It then discusses diagnosing the current system using systems analysis and redesigning it using an interactive planning process that involves stakeholders to better align the OH&SMS with business goals and improve performance. The transformation led to improved department integration, risk control, and staff engagement in the OH&SMS.
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A Paradigm Shift - Overcoming a siloed HSMS
- 1. ARMSA CONSULTING A paradigm shift Leveraging Competitive Advantage Through Transforming an OH&SMS Presented by Rakesh Maharaj ARMSA Consulting
- 2. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING 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.
- 3. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING 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.
- 4. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING 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.
- 5. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING Present times British Energy - Eggborough Power Limited Aims 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.
- 6. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING EPS goals Make 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.
- 7. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING Diagnostics – systems approach Diagnostics – systems approach Personal ownership/ Accountability - Departmental Competence ?? Investment - - Reward/ Recognition + Consultation +++ Clear Direction - - Management Control - - Leadership +/- Management System (+ve) Co-operation - - Safe attitudes (+ve)
- 8. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING Approaching Intervention Reactive Planning Interactive Planning Tactically orientated Strategically, tactically and operationally orientated Dealt with by: ID deficiencies Dealt with by: Project specific + individual solutions Accepting that what is done now will affect the future Deficiencies Eliminating problem does not Guarantee Preactive Planning desirable solution Strategically orientated Solutions are exclusive and do not Dealt with by: deal with interactions Prediction and preparation Deficiencies Process Good for forecasting future Designing desirable event(s) to uncertainties control the future and selecting Solutions designed are almost ways of approximating it as never implemented because closely as possible plans are always for the It deals with EPS as a system future itself
- 9. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING 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.
- 10. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING 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.
- 11. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING The detailed process The detailed process Q1 Q2 Q3 Systems Analysis Obstruction - Completed Analysis Mess Formulation Select and coach Consumer Group ENDS Planning Select and coach Designer Group Workgroups - modification towards idealised state T1 T3 T5 MEANS Planning T2 T4 T6 Facilities and Personnel Equipment RESOURCE Planning Financial Materials, Supplies and Services Human Factors Technology, Work and BBS Human Factors Implementation Organisational Factors
- 12. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING The process simplified The process simplified Consumer Product Removing Implement Product Design Obstacles Product Specification 2 weeks 6 weeks 4 - 5 weeks ongoing
- 13. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING Mapping – an example Mapping – an example Departmental Map Maintenance Dept Workshop Onsite Repairs Rapid Troubleshooting Function/Role Map Engineer 1 Equip. Maintenance Electrician Engineer 2 Fitter 2 Boiler Engineer Gas Fitter Assistant Assistant 1 Activity Map Operations Operatives Suppliers Contractors
- 14. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING Consumer group specification - Directives • Risk control • Work planning interface • Regulatory/Operational • Service provider partnerships mapping and interpretation • Knowledge management • SHE training • Staff selection • Personal skill and • Performance monitoring and competence auditing • Front end project loading
- 15. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING Designer group – the broad brief • 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.
- 16. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING Designer group – limitations • 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.
- 17. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING Designer group – outputs 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.
- 18. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING The Mission Statement - an example Statement - The Mission an example At EPS Safety, Health and Environmental consideration is central to our business of generating electricity. It is an objective shared and Atowned by everyone… Environmental consideration is EPS Safety, Health and central to our business of generating electricity. It is an objective shared and owned by everyone… Business/SHE ideals Aspirational Stakeholders Exciting/ challenging/ inspiring
- 19. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING Testing the ideal directive Mission Function • Stakeholder driven • Provides business, • Proactive / prevention operations, corporate and customer support. • Fully integrated with business • Precise regulatory • Revenue Enhancer / Value interpretation for operations. Adder • Contributes to knowledge • Any other? management, personal skill and competence. • Compatible with other relevant directives.
- 20. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING Testing the ideal directive Process Structure • Integrated with operations • Leveraged and distributed • Clear, concise and simple • Cross departmental • Consistent with business, • “Lowerarchical” operational and regulatory • Synonymous with needs competence development • Automated? directives • Cross departmental • Business and line • Encourages action learning accountability • SHE reports to SD
- 21. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING The contributions • 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.
- 22. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING Organisational contributions Organisational contributions Departmental interdependency and H&S Ownership Consultation and participation work integration Widespread self-realisation that H&S is not a IP helped overcome an isolationist view of Staff felt more engaged in the bottom- support function. departmental operations. 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 Departments realised that better interaction Knowing that the consumer idealised empowered to make decisions holistically. will allow for effective planning and risk design process in IP would allow them control. to be creative, many participants began to realise that their jobs affected tasks around them Contributions All departments are accountable for Improved interaction between outage and Many staff previously worked in isolation controlling risk created by their operations work planning functions will enable adequate and had very little knowledge of where and providing detailed information on risks resourcing of long term or high hazard information pockets existed around the transferred to other departments. projects. 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.
- 23. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING Conclusion • 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.
- 24. A paradigm shift Leveraging Competitive Advantage ARMSA CONSULTING Questions Rakesh Maharaj Managing Director ARMSA Consulting Chadwick House Birchwood Park Warrington WA3 6AZ Cheshire, UK email: rakesh.maharaj@armsa.co.uk