HSE Leadership 2014

HSE Leadership
ASSE Workshop
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DNV GL © 2013
SAFER, SMARTER, GREENER
Learning Objectives
Upon completion, participants will:
 Have a basic understanding of the need for both management and leadership in
the HSE (Health, Safety, Environment) and Human Resources Space
 Understand the essential attributes of Leadership and their importance to HSE
and personnel performance
 Be able to describe the five critical goals of proactive leadership
 Understand the role management systems play in loss causation and control
 Be able to describe how effective management supports an organization’s
sustainability initiative
 Interactive Session….learn from the experience in the room
 DNV-GL’s area of expertise is HSE, but the leadership lessons crossover into all
areas of our daily work
 No Death By PowerPoint
 Have a little fun around Great Leaders
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Agenda
 What is leadership? How is it different from management? Why does it matter,
especially when it comes to HSE?
 How does an organization move from an essentially reactive HSE process to one
that identifies potential HSE issues and installs controls to prevent them?
 What role does organizational leadership play in loss causation and control?
 How does HSE fit with your organization’s sustainability initiative?
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DNV GL © 2013
Great Leaders: Theodore Roosevelt
“At the time of decision, the best thing
you can do is make the right decision.
The next best thing you can do is make
the wrong decision. The worst thing
you can do is to make no decision.”
– Theodore Roosevelt
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DNV GL © 2013
Management or Leadership?
Are there differences between
management (or managing) and
leadership (or leading)? If so, what are
they? Why do they matter, especially
when it comes to HSE?
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Goals of Proactive HSE Leadership
Identify all
loss
exposures
Monitor the
plan
Implement
the plan
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Evaluate the
risk in each
exposure
Develop a
control plan
Great Leaders: Bear Bryant
 “Take the praise, take the blame, but
don’t make excuses”
 “If something great happens, you did
it. If something good happens, we did
it. If something bad happens, I did it.”
 “People who are in it for their own
good are individualists. They don’t
share the same heartbeat that makes a
team so great. A great unit, whether it
be football or any organization, shares
the same heartbeat.”
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Loss Causation Model
Threshold Limit
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LACK OF
CONTROL
BASIC
CAUSES
IMMEDIATE
CAUSES
Inadequate
• System
• Standards
• Compliance
Personal
Factors
Job or
System
Factors
Substandard
Acts or
Practices
Substandard
Conditions
DNV GL © 2013
INCIDENT
LOSS
Event
or
Contact
Unintended
Harm
or
Damage
Leadership: Peter Drucker
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HSE and Sustainability
Environmental
Responsibility
•
•
•
•
•
•
•
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Innovation
Shareholder Return
Risk Management
Job Creation
Profit
Growth
Capital Efficiency
DNV GL © 2013
Economic
Growth
•
•
•
•
•
•
•
Resource Management
Waste Management
Regulatory Compliance
Stewardship
Life-Cycle Management
Biodiversity
Environmental Justice
Social
Responsibility
•
•
•
•
•
•
Human Rights
Community Involvement
Equal Opportunity
Crisis Management
Business Ethics
Fair Trade
Great Leaders: Ronald Reagan
 “There is no limit to the amount of
good you can do if you don't care who
gets the credit.”
 “The most dangerous words in the
world are, ‘I’m from the government
and I’m here to help.’”
― Ronald Reagan
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Great Leaders: Harry Truman
 “A pessimist is one who makes
difficulties of his opportunities and an
optimist is one who makes
opportunities of his difficulties”
 “It’s amazing what you can accomplish
if no one cares who gets the credit.”
– Harry Truman
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DNV GL © 2013
Key Point Summary
 Effective HSE performance requires both management and leadership. Management is about making sure
the system works as designed. Leadership is developing a vision for the future, articulating that vision in
both words and actions, and motivating change.
 An organization’s risk competence; that is, the maturity of its systems to identify, assess, control, and
monitor risk, determines how proactively the organization manages HSE exposures.
 The vast majority of incident causes have their roots in latent organizational weaknesses. The more and
better work an organization does to manage its HSE processes, the better its HSE performance.
 HSE management is a vital part of any organization’s sustainability or sustainable business development
initiative. HSE leaders should be able to demonstrate how HSE concerns affect the long-term success of the
business.
Whose job is HSE?
HSE is everybody’s job. However, the optimal organizational culture is one in
which each and every stakeholder can state, with absolute honesty, “HSE is
my job.”
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DNV GL © 2013
HSE Leadership
HSE management or HSE leadership? In the past, we have focused on managing HSE;
however, gradually we have moved to almost exclusive use of the term HSE leadership.
Why? Are there significant differences between the two terms? If so, what are they?
Identify two or three such differences and discuss why they may be important. Be
prepared to present your results briefly to the group at large.
Fundamentals of HSE
Leadership
Table of Contents
Proactive vs. Reactive HSE Leadership ................................................................. 1
The Role of Leadership in Loss Causation and Control ................................. 2
HSE and Sustainability ................................................................................................. 4
DNV GL Contact Information ..................................................................................... 5
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Proactive vs. Reactive HSE
Leadership
Effective HSE leadership shares goals and objectives that have been traditionally
used to describe effective risk management. They are outlined below.
“The essential difference between proactive HSE and reactive
HSE is the maturity level of organizational risk competence;
that is, the ability of the organization to identify, assess,
control, and monitor risk.”
Identify all
loss
exposures
Monitor the
plan
Implement
the plan
Group Discussion
What are the elements of your HSE system that
drive the systematic, comprehensive identification
of loss exposures?
What criteria would you use to evaluate the risk in
each exposure? Why?
What is the hierarchy of controls for HSE
exposures? What is the rationale for this
hierarchy?
Evaluate the
risk in each
exposure
Develop a
control plan
What are the monitoring/measuring methods that
allow for adequate monitoring of both the plan and
the exposures?
Why are these goals and objectives pictured as a
repeating process?
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The Role of Leadership in
Loss Causation and Control
Loss Causation Model
LACK OF
CONTROL
Inadequate
• System
• Standards
• Compliance
Threshold Limit
BASIC
CAUSES
IMMEDIATE
CAUSES
Personal
Factors
Job or System
Factors
Substandard Acts
or Practices
Substandard
Conditions
INCIDENT
LOSS
Event
or
Contact
Unintended
Harm
or
Damage
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Group Discussion
Examples of Immediate Causes (Symptoms) of Loss
• Failure to Follow Procedures
• Failure to Secure Equipment
• Horseplay
• Poor Housekeeping
• Inadequate Guarding
• Excessive Noise
Examples of Basic Causes of Loss
• Lack of Knowledge or Skill
• Inadequate Capability
• Stress
• Inadequate Leadership
• Inadequate Engineering
• Inadequate Maintenance
What are the elements of an effective HSE management system that should prevent development of the basic causes and, subsequently,
the immediate causes?
JUST FOR PERSONAL REFLECTION
How well is your organization implementing and managing these elements? How effectively does organizational leadership demonstrate
support for these elements?
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HSE and Sustainability
Sustainability or sustainable business development has become a major focus for all organizations. Sustainability is commonly perceived
to involve three distinct arenas of business concern which are so inextricably connected they cannot be managed as separate concerns.
The figure below illustrates these three dimensions and their relationship. In which arena would you place safety and health? Why would
a well-managed safety and health process be vital to a sustainable organization?
Environmental
Responsibility
Economic
Growth
•
•
•
•
•
•
•
Innovation
Shareholder Return
Risk Management
Job Creation
Profit
Growth
Capital Efficiency
•
•
•
•
•
•
•
Social
Responsibility
Resource Management
Waste Management
Regulatory Compliance
Stewardship
Life-Cycle Management
Biodiversity
Environmental Justice
•
•
•
•
•
•
Human Rights
Community Involvement
Equal Opportunity
Crisis Management
Business Ethics
Fair Trade
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Mike Chaudron
Director of Sales, North America
DNV-GL Business Assurance
1400 Ravello Drive
Katy, TX 77449
[email protected]
Cell: 713-855-1306
Gary Ostrow
Southeastern District Sales Manager
DNV-GL Business Assurance
1400 Ravello Drive
Katy, TX 77449
[email protected]
Cell: 561-413-4381

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