Journey to Safety Excellence

1. Journey to Safety Excellence Chapter Meeting May 17, 2012

2. JSE Chapter Agenda • Introduction • Journey to Safety Excellence – a primer • What is it and why is it important? • How can it be used to create, enhance and maintain strong customer partnerships? • How does it align with our services? • Campbell Institute • Questions and discussion

3. Things to keep in mind • Companies budget for safety spending • Budget may go up or down but it never goes away • Budget is used for outside services • Companies do repeat business with trusted partners and people they like • NSC has a “mission” advantage • Goal: get year over year spending committed to NSC as part of a strategic plan • Means: JSE – frame the discussion, stay current with your customers progress and position, adapt to their changing needs

4. Listen & your customer will open the door… • Culture, climate • Safety Management Systems • Risk (acceptable, residual, tolerance) • Standards (ANSI, OHSAS, ISO) • Plateau • Behavior, behavioral observations • Continuous improvement • Leadership • Engagement • Regulation • Best practices • Recognition • Measurement, leading, lagging • Benchmarking • Improvement over baseline • Serious and fatal injuries • Contractor safety • Correlation, prediction, prescription What do you mean by…? How do you currently…? How do you manage…? How do you develop…? How do you measure…? What do you do when…? How do you respond to…? How do you compare to…? What is your vision…? Where do you see yourself in…? What do you see as your biggest challenges, obstacles, issues…?

5. Evolution of the Journey • Campbell Award • World Class Team • ANSI Z10 Safety Management System Standard • OSHA, NACOSH • NIOSH, NORA • Divisions, Delegates, Membership • Education, Training, Surveys, Assessments

6. Journey to Safety Excellence • Based on world class organization’s best practices • Developed by thought leaders • Tested in real world situations

8. Survey Results of Co. Safety Performance Scatter plot of Frequency of Overall Average Response Scores NSC Survey Database (-2 to 2 scale) 80 70 60 50 40 30 20 10 0 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1 1.2

9. JSE – “Moving the Curve” • Gap between reality & vision? • Plan for gap closure? • Means to measure progress? Advocacy Objective No. Companies Translate Best Practice Capture Best Practices Influence Influence C-level Influence MBA/Eng. Curriculum Free / Member / Product/Service OSHA Aim Campbell Institute Enforce Voluntary Participation Safety Performance

11. Journey to Safety Excellence® The Journey to Safety Excellence is a cycle of improvement that aims for a continual reduction of risk and has as its goal zero injuries. We call it a Journey because even though safety excellence is attainable, there is always opportunity for further progress and improvement. The Journey to Safety Excellence is a data-centric risk mitigation process which empowers organizations to fully integrate the safety improvement process in the business to help achieve operational excellence

12. Premise for Operational Excellence Continuous Improvement Sustaining Excellence Safety Management Business Management

13. JSE – the Four Pillars • Leadership and Engagement (Culture) • Safety Management Systems • Risk Reduction • Performance Measurement

14. Leadership & employee engagement • Strong, consistent, commitment to safety by leadership • Partnership between managers and employees working together to establish culture of safety • Employee engagement is a strong indicator of financial performance • Employee Perception Surveys provide insight into future safety performance

15. Safety management systems • Framework to ensure an organization can fulfill all safety tasks required to achieve its objectives • Must have means to accurately assess the effectiveness of the SMS and discovers the root causes of deficiencies • Multiple points of measurement • Qualitative and quantitative • NSC SMS Assessment is a best practice based on Campbell Award • Membership, Publications, Conventions, and Training build individual and organizational compatance

16. ManagementWhat we do Engages the mind Gets the right things done Based on “transactions” Produces activity Need accountability Measure through SMS Assessments LeadershipHow we do it Engages the heart Gets things done the right way Based on commitment to values Produces change Need responsibility Measure through Employee Perception Surveys Management and Leadership

17. SMS: a smart investment • Goldman Sachs looked at linkage of workplace safety to investment results • Safety Management Systems had the strongest link to investment performance, more than: • Board/ Executive oversight • Safety policies • Remuneration of senior managers • Safety performance as measured by lost time injury frequency rates • According to Liberty Mutual, $1 invested in safety has a $3-$6 return on investment

18. Risk reduction • Risk = the likelihood of an event occurring and the severity of the injury that may result • Probability x Severity = Risk • Probability is = Frequency x Likelihood • Risk always is present in the workplace • Organizations that strive to continue reducing risk to the lowest possible levels will outperform organizations that do not • Prompt reporting of hazards and near miss incidents with timely corrective measures is a form of risk reduction • NSC Navigator

19. Performance measurement • Requires data on activities and outcomes to continuously improve • Leading and lagging indicators • Enables companies to: • Establish baselines • Measure improvement over baselines • Understand the relationship (correlation) between safety activities and the outcomes of injury and disability • Use leading indicators as well as lagging indicators • Impossible to do well without smart use of emerging technology • NSC Navigator

20. Using Data for Predictive Analysis Prescribe & Improve Organizations with the Best Safety/Risk-Reduction Effort (Leading Indicator) X Have the Fewest Workplace Injuries (Lagging Indicator) Y Learn & Evolve Testing hypothesis  sufficient correlation between X and Y

21. BST Finds Correlation with Systems and Culture 100 74 80 60 Culture 38 40 Percentile Score 29 20 0 <33 33 to 66 >66 Safety Best Practices Percentile Score

22. 8.2 4.5 (per 100 employees per year) Occupational Injury Rate 2.0 High Low Medium n = 179 Overall OCDI Average Score BST Finds Culture Predicts Injury Rates

23. JSE – Continuous Improvement Process • Step 1 – where are you now and where do you want to be? • Step 2 – how do you move forward? • Step 3 – how do you manage your improvement and measure your progress?

24. Step 1 • Where are you now? • Use Surveys and Assessments to measure current performance • Set baselines and measure performance improvement over baseline • Where do you want to be? • Setting the aspirational vision of a best in class state • Encouraging the organization to strive for continued, sustainable improvement

25. Step 2 • How do you move forward? • Identify performance gaps • Results of Surveys and Assessments • Develop and execute improvement plans to close gaps • Safety Management Solutions Consulting • Educate and train to build organizational competence and capability • Membership, Publications, Training, Conventions • Apply “best practices”, aka “successful practices”, aka “lessons learned, … • Campbell Institute • Continue improvement in leadership, engagement and safety management system

26. Step 3 • How do you manage your improvement and measure your progress? • Improve reporting of hazards, near miss and injury incidents • Conduct thorough root cause analysis, improve systems, manage corrective actions • Share real time actionable information across multiple levels within the organization • Create dynamic data sets for predictive analysis • Keep track of activities and key performance indicators • Access data from any location at any time. • Use NSC Navigator

27. Journey to Safety Excellence Strategic Objectives Determining where you are and where you need to go Developing capabilities to support the improvement process Managing the improvement process Knowledge, Value, Relationship, Membership

28. Achieving Excellence • Organizations who have integrated the “Journey to Safety Excellence” concepts outperform those who have not • Managing safety data and information with progressive technology solutions is increasingly recognized as a best practice • Use of mobile solutions and acting in real time is highly effective at reducing risk and preventing injuries and fatalities

29. The Results • Continued declines in residual risk • Injuries prevented, lives saved • Healthy and high performing workforces, optimal workplace design • Operational excellence • Recognition • NSC Awards Program • NSC Green Cross for Safety Award • Robert W. Campbell Award • Campbell Institute Participation

30. The Campbell Institute Belief EHS is at the core of business vitality and sustainability, intrinsic to business operational excellence Mission To help organizations achieve and sustain excellence in EHS while proactively identifying successful practices Vision A healthy and high-performing workforce led by individuals who understand and believe in EHS as a fundamental factor of organization success

31. Campbell Institute Participation • Founders • Recognition in perpetuity as significant leaders who were instrumental in the initial formation and initiation of the Campbell Institute. • Special opportunity to participate in the Institute as Charter Members through gift-in-kind and/or financial contribution. • Charter members • Prominent recognition as a Campbell Institute financial contributor with the foresight recognize the value of building and sustaining successful organizations that save lives, reduce injuries, and protect the environment worldwide. • Prestige associated with participation on the Advisory Committee and being part of a select group of c-suite executives and safety leaders who will steer the Campbell Institute and set the tone for organizations around the globe. • Pride in sharing best practices that will be used across organizations of all backgrounds and sizes. • Ability to continue to sharpen your organization’s edge by sharing with and learning from your world-class peers.

32. Campbell Institute Participation • Sponsors • Recognition as a sponsor of a Campbell Institute event or initiative designed to build and sustain successful organizations as well as save lives, reduce injuries, and protect the environment worldwide. • Ability to continue to sharpen your organization’s edge by sharing with and learning from your world-class peers. • Partners • Recognition as significant leaders with the foresight to build and sustain successful organizations but also save lives, reduce injuries, and protect the environment worldwide. • Pride in sharing best practices that will be used across organizations of all backgrounds and sizes. • Ability to continue to sharpen your organization’s edge by sharing with and learning from your world-class peers. • Participants • Ability to gain understanding of how to build and sustain successful organizations but also save lives, reduce injuries, and protect the environment worldwide. • Ability to learn from the best and sharpen your organization’s edge by sharing with and learning from your peers.

33. Discussion