Esbjerg HSE Conference

1. Esbjerg HSE Conference Yngve Tvedt Offshore Installation Manager. Project Manager Compliance and Leadership Program EPN Statoil

2. Background Snøhvit budget overrun Mongstad Cat.cracker Statfjord A shaft 2008: Gain insight and see the truth!! Conclusion: Our level of precision varies too much Ronny Larsen, VP CHSE Statoil

3. Challenge: Our level of precision varies too much Mongstad cracker Kollsnes Condensate leak Industry lead Horton SFA gasleak Snøhvit The purpose of the Management System is to: Handle risk, increase learning ability and strengthen leadership skills. The purpose of the Compliance and Ledership Program is to:Handle risk, increase learning ability and strengthen leadership skills. Ronny Larsen, VP CHSE Statoil

4. Compliance in practice 4 Day-to-day Leadership Work processes Activity Identify risks Communicator Requirements To be accomplished Method How Performance Planning Role model Control line Enable line Team Assessment Add Learn & improve Evaluation Coach Execute Continuously risk evaluation Execution Interaction COURAGEOUS • OPEN • HANDS-ON • CARING

5. Our management system Our Management System outlines how we manage and improve our business based on a performance- and value-driven culture. • Our management system has three main objectives • To incorporate our values, and people and leadership principles in everything we do • To ensure we comply with formal external and internal requirements • To drive business performance through high quality decision making, fast and precise execution, and continuous learning Leadership Control Learning Commitment and compliance to our management system is a requirement.

6. Compliance in practice Day-to-day leadership Work processes Control + Learning Leadership Performance Interaction COURAGEOUS • OPEN • HANDS-ON • CARING

7. Compliance in practice 8 Day-to-day Leadership Work processes Activity Identify risks Communicator Requirements To be accomplished Method How Performance Planning Role model Control line Enable line Team Assessment Add Learn & improve Evaluation Coach Execute Continuously risk evaluation Execution Interaction COURAGEOUS • OPEN • HANDS-ON • CARING

8. Compliance in practice 9 Day-to-day Leadership Work processes Activity Identify risks Communicator To identify and understand the risks are the input to control the activity Requirements To be accomplished Method How Performance Role model Control line Enable line Team Assessment Add Learn & improve Coach Execute Continuously risk evaluation Interaction COURAGEOUS • OPEN • HANDS-ON • CARING

9. Compliance in practice 10 Day-to-day Leadership Work processes Activity Identify risks Requirements and Method are the company’s collective knowledge Communicator Requirements To be accomplished Method How Performance Role model Control line Enable line Team Assessment Add Learn & improve Coach Execute Continuously risk evaluation Interaction COURAGEOUS • OPEN • HANDS-ON • CARING

10. Compliance in practice 11 Day-to-day Leadership Work processes Activity Identify risks Team assessment is the individual’s and the team’s knowledge Communicator Requirements To be accomplished Method How Performance Role model Control line Enable line Team Assessment Add Learn & improve Coach Execute Continuously risk evaluation Interaction COURAGEOUS • OPEN • HANDS-ON • CARING

11. Compliance in practice 12 Day-to-day Leadership Work processes Activity Identify risks To stop and think when small changes occur is critical to avoid losses Communicator Requirements To be accomplished Method How Performance Role model Control line Enable line Team Assessment Add Learn & improve Coach Execute Continuously risk evaluation Interaction COURAGEOUS • OPEN • HANDS-ON • CARING

12. Compliance in practice 13 Day-to-day Leadership Work processes Activity Identify risks A Learning Organization is looking for improvements by evaluating any activity Communicator Requirements To be accomplished Method How Performance Role model Control line Enable line Team Assessment Add Learn & improve Coach Execute Continuously risk evaluation Interaction COURAGEOUS • OPEN • HANDS-ON • CARING

13. A- standard for our performances Activity • We create a common understanding of the task • We define the desired outcome and end result • We identify and understand the risks • We find the requirements in the Governing system – DocMap and APOS • We show an understanding of the requirements and the intentions behind • We find the method in the Governing system • We show an understanding of Statoil’s best method • We ensure that the method is satisfactory to control all the risks • We check out if other elements should be considered to control the risks • We execute as planned and continuously evaluate the risks involved • When small changes occur – we stop, think and check the method again • When the task is done – we evaluate and transfer learning and experience Requirements Method Team Assessment Execute Learn & Improve

14. ”The left side” of the model: • An action pattern which describes how we plan, execute and evaluate an activity or job when we are at our best • The action pattern describes a whole where already known methods and concepts, as compliance, risk assessment, FJS, ÅSS (Open Safety Conversation), ”Ta To”, “kameratsjekk”, risk evaluation, EJS, transfer of experience etc. are incorporated • The action pattern is called an A- standard because it describes how we perform when we are at our best (and get the ”A” grade)

15. What drives high performance? Maximum impact on employee Performance Performanceweaknesses Personalityweaknesses 0.0 Emphasize performancestrengths Focus: Up-front loading Specificskills andbehaviorsneeded inthe future Specificoutcomes offormal review Change in Performance Personalitystrengths Specificsuggestionsfor doingthe job better Long-termcareer prospects Focu: What went wrong? Ken Blanchard: Helping People Win at Work http://www.youtube.com/watch?v=Y0oKtQ29gvc Source: Corporate Leadership Council Ronny Larsen CHSE

16. Leadership… • …is how anyone enables others to plan, execute and evaluate a task in the best possible way • ”Enabling leadership” is the following: ”Communicate what an A- standard is through words and acts, and then coach and guide the individual so he or she can accomplish an A. A leader should never give up before every subordinate have accomplished an A”

17. Compliance in practice 18 Day-to-day Leadership Work processes Activity Identify risks Communicator Requirements To be accomplished What I say Method How Performance Role model Control line Enable line What I do Team Assessment Add Learn & improve Coach How I follow up Execute Continuously risk evaluation Interaction COURAGEOUS • OPEN • HANDS-ON • CARING

18. Compliance in practice 19 Day-to-day Leadership Work processes Activity Identify risks Communicate the A- standard to the team and the effects of acting it Communicator Requirements To be accomplished Method How Performance Role model Control line Enable line Team Assessment Add Learn & improve Coach Execute Continuously risk evaluation Interaction COURAGEOUS • OPEN • HANDS-ON • CARING

19. Compliance in practice 20 Day-to-day Leadership Work processes Activity Identify risks Act the A- standard on own tasks and show this to the team Communicator Requirements To be accomplished Method How Performance Role model Control line Enable line Team Assessment Add Learn & improve Coach Execute Continuously risk evaluation Interaction COURAGEOUS • OPEN • HANDS-ON • CARING

20. A- standard for our leadership • We communicate the A- standard for our performances to all employees • We are clear on purpose and goals for the work we do • We highlight the effects when we deliver according to our standards • For the individual, team, company and society • We motivate for focused efforts to reach the desired outcome • We ensure overview of critical tasks and communicate requirements • We communicate and execute consequences of not performing up to A- standard • We communicate on all arenas that we live as we speak when we do our work • We live up to the standard of an ”enabling leadership” of helping others to perform • We coach and guide our subordinated to make them reflect on their level of performance in relation to the A- standard of performance • We adjust our coaching to the personal mastery of the individual • We encourage the individual through positive feedback on the work performed Communicator Role Model Coach

21. Program steps 6 Debrief leader ship 5 Coach team and Individuals 4 Observe team in action (identify variations) Inital procedure, : Day 1: Observe team, one spesific activity, note devations against defined A-standard Day 2: Coach team, one spesific activity, meeting with leader team and fasilitator Day 3: Coach team, one spesific activity, meeting with leader team and fasilitator Day 4: Coach team, one spesific activity, meeting with leader team and fasilitator Planned activity training: Based on risk evaluation, select activities to train all relevant people at OperationalTraining Centre Establish plans for work process training in the period 2010 – 2013 Follow-up through Operationg model: Ambition to Action + People@Statoil Ronny Larsen CHSE