Managing Health and Safety Performance

1. Managing Health and Safety Performance Carl Dunckley Risk Control Consultant Alarm South East 4th November 2004

2. What’s the Problem ? • Fatal injuriesThere were 235 fatal injuries to workers in 2003/04, • Other reported injuriesIn 2002/03, employers reported 154,430 other injuries, • Ill healthIn 2001/02 an estimated 2.3 million people in Great Britain were suffering from an illness which they believed was caused or made worse by their current or past work, • Working days lostIn 2000-02 an estimated 40 million working days were lost overall, 33 million due to work-related ill health and 7 million due to workplace injury. Source: HSE

3. What’s the Problem ? Latest HSE figures for 2001/02, health and safety failures cost: • employers between £3.9 - £7.8 billion, • individuals between £10.1- £14.7 billion, • the economy between £13.1 - £22.2 billion, • society as a whole between £20 - £31.8 billion. Source: HSE

4. Penalties Most of HSE’s successful prosecutions result in a fine: In 2003: • The average fine per ‘offence prosecuted’ was £6,040 • 13,263 enforcement notices were issued • 933 cases prosecuted, involving 1,688 separate alleged offences (86% conviction rate) • 22 Managers and Directors prosecuted. 11 of these were convicted. • The largest fine was £240,000 for a major scaffold collapse in a city centre. Source: HSE

5. Corporate Manslaughter Fatal Accident • Where there is gross negligence, a company may be prosecuted for corporate manslaughter • To convict a company of manslaughter a senior individual identified as it’s embodiment or ‘directing mind’ must first be convicted of manslaughter*. * Need to identify someone who is ‘the embodiment’ (directing mind) Culpable – Have the mental state (mens rea) to be guilty of manslaughter

6. Forum 28 – Barrow-in-Furness UK’s biggest ever Legionella outbreak traced to 30 year old air conditioning system Council run arts centre. 170 confirmed cases -7 deaths linked to outbreak. Morecambe Bay Hospitals Trust cancelled around 700 operations to concentrate on the outbreak. More than £60, 000 was spent on testing kits (2500 people). The Pharmacy Department spent as much on a particular antibiotic in one week as it did in the whole of previous year. Intensive Care Unit stretched beyond limits – patients relocated around North East

7. Forum 28 – Barrow-in-Furness Police and HSE conducted joint investigation Source traced to 30 year old air conditioning system managed ‘in-house’, formerly managed by specialist external contractors Police charged senior Council official with seven counts of manslaughter Summonses served on Council for same seven counts of manslaughter, plus health and safety breaches

8. HSC Enforcement Policy Statement The revised HSC Enforcement Policy Statement says that enforcing authorities should: • consider the management chain and the role played by individual directors and managers. • take action against them where the inspection or investigation reveals that the offence was committed with their consent or connivance or to have been attributable to neglect on their part.

9. The Consultation Document • Proposals for wide scale reform of law on involuntary manslaughter • Involuntary manslaughter to be replaced by 3 new offences: • ‘Reckless killing’ • ‘Killing by gross carelessness’ • ‘Corporate killing’ Individuals

10. Corporate Killing • A company’s conduct causes death i.e. the way in which activities are managed fails to ensure health and safety. And • A company’s conduct falls far below what would be expected in the circumstances.

11. Far Below Expectations… What Would You Expect? • Health and Safety Policy & Arrangements • Compliance with Legislation • Risk Assessments • Training and Information (Competence) • Supervision • Learning from Past Mistakes

12. Corporate Killing • The management failure would be regarded as the cause of death even if the immediate cause is an individual’s act or omission • A conviction would require neither that the risk be obvious nor that the organisation be capable of appreciating the risk • Conviction of a company would not preclude individuals being charged with reckless killing or killing by gross negligence

13. Statements of Internal Control The Accounts & Audit Regulations 2003 • Ensure financial management is adequate and effective and that body has a sound system of internal control……which includes arrangements for management of risk • Conduct a review at least once a year in the effectiveness of its systems of internal control • Publish a statement on internal control with financial statements

14. Which Management Model? ‘British Standard BS8800 (1995) : Guide to Occupational health and safety management systems’ details: • HS(G)65: Successful Health and Safety Management • BS EN ISO 14001: Environmental Management Systems • BS EN ISO 9001: Quality Management Systems

15. HS(G)65 ‘Successful Health and Safety Management’ HS(G)65 sets out a safety management system in which the key elements of the control cycle are: POLICY ORGANISING AUDITING PLANNING & IMPLEMENTING MEASURING PERFORMANCE REVIEWING PERFORMANCE

16. Principle Components • Health & Safety Objectives* • Policy Formulation* • Policy Review* POLICY ORGANISING PLANNING & IMPLEMENTING MEASURING PERFORMANCE REVIEWING PERFORMANCE *Specific *Measurable *Achievable *Relevant *Time-based “Effective health and safety policies set a clear direction for the organisation to follow”

17. Principle Components • Structure & Responsibility* • Competence* • Consultation & Communication* • Information Management* • Operational Control* • Emergency Preparedness* POLICY ORGANISING PLANNING & IMPLEMENTING MEASURING PERFORMANCE REVIEWING PERFORMANCE *Specific *Measurable *Achievable *Relevant *Time-based “An effective management structure and arrangements are in place for delivering the policy”

18. Principle Components • Risk Assessment* • Employee Training* • General Planning* • Management Plan* POLICY ORGANISING PLANNING & IMPLEMENTING MEASURING PERFORMANCE REVIEWING PERFORMANCE *Specific *Measurable *Achievable *Relevant *Time-based “There is a planned and systemic approach to implementing the health and safety policy through an effective health and safety management system”

19. Principle Components • Measurement & Monitoring* • Adverse Incidents* • Benchmarking* POLICY ORGANISING PLANNING & IMPLEMENTING MEASURING PERFORMANCE REVIEWING PERFORMANCE *Specific *Measurable *Achievable *Relevant *Time-based “Performance is measured against agreed standards to reveal when and where improvement is needed”

20. Principle Components • Record Management* • Auditing* POLICY ORGANISING PLANNING & IMPLEMENTING MEASURING PERFORMANCE REVIEWING PERFORMANCE *Specific *Measurable *Achievable *Relevant *Time-based “The organisation learns from all relevant experience and applies the lessons”

21. HS(G)65 ‘Successful Health and Safety Management’ HS(G)65 identifies auditing as a key component within the control cycle POLICY ORGANISING AUDITING PLANNING & IMPLEMENTING MEASURING PERFORMANCE REVIEWING PERFORMANCE

22. Why Audit? “The evidence therefore showed the sincerity of the concern for safety. Sadly, however, it also showed the reality of the failure to carry that concern through into action” Anthony Hidden QC to summarise the evidence presented by British Rail Senior Managers, during enquiry into the Clapham Railway crash in 1988 • Piper Alpha • Kings Cross • Herald of Free Enterprise ‘You cant manage what you don’t measure…” Drucker

23. Why Audit? • The avoidance of complacency • The understanding that all systems will tend to deteriorate over time, or become obsolete as people and working practises change • Satisfaction of legal requirement Put very simply, audits answer the question: ‘Are we doing what we said we would do?’

24. Why Audit? The Management of Health and Safety at Work Regulations 1999 requires the establishment of a formal Safety Management System. Regulation 4 (1) states: “Every employer shall give effect to such arrangements as are appropriate, having regard to the nature of his activities and the size of his undertakings, for the effective planning, organisation, control, monitoring and review of the preventive and protective measures.” Auditing is seen as the method by which the requirement can be fulfilled.

25. HSG(65) Audits • In addition to routine reactive and proactive monitoring, periodic audits enable a deeper and more critical appraisal of all the elements of the OH&S management system. • Audits should be conducted by persons who are competent and as independent as possible from the activity being audited. • Audits should be tailored to the size and nature of the organisation, and its risks.

26. HSG(65) Audits Audits will need to cover the following questions: i) is the organization’s overall H&S management system capable of achieving the required standards of H&S performance? ii) is the organization fulfilling all its obligations with regard to H&S? iii) what are the strengths and weaknesses of the H&S management system? iv) is the organization actually doing and achieving what it claims to do?

27. Audit Methodology Audit methodology invariably includes three key techniques: • Interviewing key personnel • Examination of Documentation • Inspection

28. Selection of Auditors Competent and Independent • Health and Safety professionals, • Line managers or other employees with additional training in health and safety and auditing techniques, • Internal/External consultants?

29. Corporate H&S Performance Index - CHaSPI • Designed to assist external stakeholders assess H&S management of an organisation • Increase incentives for senior managers to manage H&S well • Raise profile of H&S as key aspect of CSR agenda • Research indicated significant interest amongst investors and other stakeholders in a H&S index

30. Quantitative Indicators 1 to 5 • H&S Management Rating • Injury rate – Employees & Contractors • Employee Sickness Absence rate • Occupational Health Rating • Major Incident Rating Indicators are weighted to reflect relative importance. Indicator 1 has highest weighting (50%, other 4 are 12.5%)

31. Qualitative Indicators 6 to 9 • ‘Under Watch’ Flag • Highly Regulated Activity • Directors’ Declaration • CHaSPI verification

32. Users of the Index • Investors seeking stocks in companies who have good risk management and take CSR seriously • Insurers evaluating standards of risk management to help establish terms • Employers as a means of demonstrating commitment to CSR • Regulators considering performance of an organisation • Potential employees wanting to assess a company’s performance http://www.chaspi.info-exchange.com

33. Additional Information A Guide to Measuring Health and Safety Performance HSE Aiming to Improve: The principles of Performance Measurement Audit Commission Getting Better all the Time: Making Benchmarking Work Audit Commission

34. Additional Information Managers Guide to Performance Management IDEA How to Measure Performance: A Handbook of Techniques and Tools Department of Energy (United States of America) Achieving Best Practice in your Business: Quality Management Department of Trade and Industry