Lead to Succeed 28th January 2014 Gerry Moy

1. Lead to Succeed28th January 2014 Gerry Moy

2. Agenda Background Lessons from Safety Incident What are we doing strategically that’s different Questions

3. Agenda Background Lessons from Safety Incident What are we doing strategically that’s different Discussion

4. Babcock International Group: In Brief Headquartered in London Annual Revenue over £3.2 billion The UK’sleading engineering support services organisation Employing a workforce of c.26,000 skilled personnel Delivering circa 600 servicesacross six continents Order book circa £12 billion FTSE 100 company listed on London Stock Exchange Managing customer assets currently worth over£40 billion Established in1891

5. A strong history of revenue growth £M * VT Group acquisition

6. Strategy and Objectives

7. What does Babcock do?

8. Customers of our Group include: Teach Vital Skills (Education& Training) Manage Critical Assets (Infrastructure& Equipment) Deliver Complex Programmes(Programmes & Projects) Cavendish Nuclear

9. Our long-term relationships with customers deliver value for both parties Ongoing relationships 1993 1997 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Today

10. Case Studies: Rail • Network Rails’ largest conventional track renewals contractor, with circa 50% of the market • Renewing the country’s vital railway network across Scotland, the North West and East of England • Finished top of Network Rail’s National Contractor League Table for the last two years • An award-winning collaborative electrification project which has set the standard for rail project delivery in Scotland • Five miles of track successfully delivered in just 20 weeks – three weeks ahead of the original programme • Delivered increased train capacity and improved passenger experience at a cost 60% less than originally budgeted Paisley Canal Electrification (PaCE) project

11. Network Rail http://www.safety.networkrail.co.uk/

12. Agenda Background Lessons from Safety Incident What are we doing strategically that’s different Questions

13. Start of shift - machines under control?

14. 2-3 M lifting of CWR rail using sleeper grab banned 2005

15. Supervisor? RCI Disabled

16. Exclusion zone?

17. Are we learning…………….? “Familiarity with procedures to point of complacency” “Demand, perceived or real, to prioritise production over other matters including safety” “Ineffective inspection regime” “Vulnerability to human error”

18. Piper Alpha – 25 years ago The sobering reality is to recognise that the failings identified in the Cullen Report which investigated the disaster, have the potential to cross all industry and geographical boundaries. Irrespective of the views held, the reality is that we should not close our eyes to the potentially detrimental effects of complacency, overfamiliarity, failure to heed warnings from the workforce and ineffective inspection regimes. Such issues are valid in all industries and work locations.

19. Lessons from Hope Incident Key Performance Indicators Cultures & Behaviours Risk Identification Fatigue Management Safety Responsibilities

20. Accident RatioYear end position 12/13 Fatality Major Injury (RIDDOR) Over 7 day Injury (RIDDOR) Minor Accidents Close Call Statistics show performance is consistent with last year’s level (Contractors’ injuries in brackets)

21. 1. Key Performance Indicators Ensure that you have appropriate KPI’s to measure performance Test these, objectively and regularly Understand and act on trends and findings Review the effectiveness of existing tours and inspections process and investigate the proposal to set up a team of dedicated site inspectors/auditors who do nothing but visit sites, comment on safety and draw the site leader’s and management’s attention to poor behaviour / bad practices / unsafe issues

22. 2. Culture & Behaviours • Current training programmes, and competency assessments, are not enough in themselves • More thought and effort is required to measure and change culture • Complacency led to erosion of standards and good practice • On wider investigation there were areas where good practices and adherence to rules were shown – inconsistency across company • Zero tolerance applied to knowingly breaking rules. Especially life saving rules – A “Just Culture” can/must also have consequences! • In conjunction with Network Rail undertake a formal industry wide investigation into the behavioural and cultural issues that impact on delivery activities and are underpinned by the perception that “production is king” and “challenging unsafe acts is career limiting”

23. 3. Risk Identification & Management • Risk management is not a cut and paste exercise • Risks awareness and assessment should be done progressively through project life cycle with a focus on the planning stage • If point of work assessments are allowed during work, then the application and checking of this process needs to be rigorous • Engineering trains were usually late on site. Contingency plans were not clear what actions to take. On the night trains were 1 hour late.

24. 4. Fatigue Management

25. 4. Fatigue Management • The management of fatigue needs to be more effective (In Babcock) • Current tools may not be user friendly • Review roster programme against bar chart deliverables using the HSE Fatigue Risk Management Tool to develop management arrangements to control staff fatigue

26. 5. Safety Responsibilities • Clear definition of safety responsibilities are required • Although important on site, needs to be understood right through organisation

27. Post Incident - Trends

28. AFR Performance

29. Agenda Background Lessons from Safety Incident What are we doing strategically that’s different Questions

30. “Lead to Succeed” - Aim To analyse and make recommendations to improve leadership and management behaviours and practices to ensure they deliver the level of business operational performance required within a successful and high achieving private sector rail company. In partnership with

31. What We Asked The Depot To Do • Help to establish Leadership Excellence throughout the business • Determine the culture of shared values and norms within Preston Depot and its impact on its systems and approach to leadership, identify shortfalls and initiate interventions and solutions. • Determine the necessary leadership competence in cooperation with supervisory and management personnel responsible for work-site planning and delivery, identify shortfalls and initiate interventions and solutions. • Identify and analyse the management systems (policies, processes, procedures and practices) and resources needed for the successful delivery of operational work-sites and their application throughout the depot, identify shortfalls and initiate interventions and solutions. In partnership with

32. The basic Model Operational Performance (Safety & Production) Leadership Skills & Behaviour Culture Shared values & accepted norms Management Policy, Process, Procedure, Practice John Kotter’s Model In partnership with

33. What We Did In partnership with

34. Quick Win Culture Findings & Aggregated Solutions Readily Won Develop to Win Suggestions & Awards Management Support Plan Sponsors’ Mtgs Tactics Commercial Inclusion The Babcock Way Safety Behaviours Job Status Reviews Safety Built into Plans COSS Action Plan Babcock Way Roadshow Collaborative Working Development Workshop with Commercial Senior DM Leader Programme First Line Leader Training Behaviour Safety Sessions Evolution Safety Cooperation COSS Re-Training NWR Partner Workshop Finance Statistics: 9 findings 18 recommendations In partnership with

35. PD & NWR Partnering Workshop • BR Track Senior Team; PD SRM; PD RMs • Perfect Process; Commercial; Sponsor Mtgs; Workbank; NDS; Plant; Change Control; Alignment; Design Recommended External Requirements Critical Impact • Behavioural Safety Sessions • All PD Staff • Internal PSI training; Safety Day sessions; On-Track coaching of leaders • Re-Training of COSSs • Current BR COSS trained personnel & consider sponsoring Agency COSSs • Briefing; Challenging; Assessment • Revised First Line Leader Course • Supervisors, Gangers & SIT • Active Safety Leadership • Snr Depot Management Leadership Programme • Ops Managers; SRM, RMs • Setting Objectives; Performance Management; Active Leadership; Track & Monitor • Mid-Management ILM Training Course • Mid-Management ILM Training Course • SMs • ILM Accredited Role Base Capability Training • SMs • ILM Accredited Role Base Capability Training In partnership with

36. Quick Win Leadership Findings & Aggregated Solutions Readily Won Develop to Win Gaps & Duplication NWR Client Criticism Briefings & Handovers Whiteboard Mtgs BR versus Agency Men Low SM Morale Mid-Term Vacuum PD Vision & Floor Chats Leadership Time Workbank Turbulence On-Site Teamwork Safety Comms & EC End-to-End Process Re-Launch Behaviours Competency Matrix First Line Leader Training Senior Leader Programme Mid-Management ILM Training Comms Reaction Motivation Aide-Memoire Workshop Safety Comms TTT NWR Partner Workshop Delegation Statistics: 13 findings 21 recommendations In partnership with

37. Safety Lens

38. Critical Next Steps • A detailed development action plan within Preston Depot • The design & delivery of specific development activities with Preston Depot • The transplant of the flagship L2S initiative to the next Babcock Rail Depot In partnership with

39. Discussion