Establishing safety as a core value-Leadership’s changing roles and responsibilities November 16, 2017 Wayne Punch President & CEO WPUNCH LLC Director Emeritus Milliken Safety/Health Security (CLICK) 1 1

Cultural Change that must occur? What is the Cultural Change that must occur? CURRENT V I S I ON

The Power of Employee Engagement Culture Change

Organizationally This is Culture Change What Has to Change: To Achieve an injury-free workplace one must change the practices… Organizationally and Individually This is Culture Change

Culture Change: Organizational: Commitment at all Levels (Vision, Modeling, Time, Structure) Measure and Review (Inputs & Outputs) Communications (Recognition/Accountability) Education (Leading Change, Subject Matter) Activities (Meetings, Projects) Audits & Analysis (Standardizing, Improvement) - How do you organizationally structure to enable the changing of the individual…

Safety Operational Excellence Elements How to Sustain and Continuously Improve

Leadership Expectations and Communication Number 1 Leadership Expectations and Communication $afety

ROLE in the Safety Process RESPONSIBILITY of each Role Establish Safety as a Value, Demonstrate commitment to the Journey Leadership Management Provide the ‘Tools to Improve’, Sustain the Gains Employees Empowered and Engaged

ROLE in the Safety Process Leadership The safety transformation required disciplined changes in all areas of the company Management Employees

A New Way to Approach Safety ROLE in the Safety Process Leadership Awareness Desire Knowledge Ability Reinforcement Change Management Approach A New Way to Approach Safety Management Employees Reference: ADKAR by: Hiatt

Summary of Safety Principles ROLE in the Safety Process Summary of Safety Principles Safety must be the Organization's First and Uncompromised Value. Leadership ZERO is the only acceptable goal. 100% Engagement of all Associates is an Absolute Requirement Management Safety is about People. Not Numbers or Money. Roles and Responsibilities must change. An Investment of Time and Resources is required to create “A Culture of Safety” Employees

Measurements and Review Number 2 Measurements and Review Identify Lagging and Leading Indicators to be Measured Input Metrics (Employee involvement) Output Metrics (TIIR) Financial Measures Review Schedules Proof of Concept (Scorecards)

Metrics / Measure Tree Consequences Cause Control Behavior Lagging Indicators: TIIR, DART, First Aids, Near Misses Cause Leading Indicators: Paretos, Why-Why, Incident investigation and profiling Control Leading: Compliance, LOTO, ERGO Behavior Leading: Actual positions of people doing work

Organizational Structure Number 3 Organizational Structure Subject Matter Expertise, Code/Compliance/Auditing Capability Who ‘owns’ Safety? ?

Corporate Oversight Committee Steering Committee (cross-functional) Safety Journey Structure Corporate Oversight Committee Location Leadership Steering Committee (cross-functional) Steering Committee Sponsor/Coach Location Champion/Owner Milliken Practitioners Rules & Procedures Safety Activities Process Hazards PPE Off-the-Job Awareness Environmental Fire & Emergency Associate Practices Material Handling/Ergo Safety Subcommittees (categories based on analysis) Subcommittee Sponsors/Coaches

Drive and Own the Process Company’s Operational Definition for: Involvement Empowerment Committee Member Audits Projects Risk Assessments Education Part of Process Tools Provided Engaged Employees Drive and Own the Process

Engage the Individual Expansion Questioning Engagement Identification Focus Measurement Success Awareness Discovery Education Activities Learning You have to identify what you want them engaged in – what if I said, “I want you engaged you with me today!” I need you to engage with me today in solving world hunger At least we have narrowed this down Provide focus In our process comes from Continuous Improvement methodologies How about we work on feeding one person in our neighborhood who is unemployed These are LEADERSHIP components We have to establish measurement Why do you measure? Education / Activities / Learning How do I train you to deliver food to someone in our neighborhood without destroying their self confidence? 3 components to learning – eyes, ears, touching – remember these three thing! Whenever you do education, it has to immediately be tied to a hands-on activity and then you can LEARN Once there’s learning, you can have discovery – the a’ha moment Seatbelt – like this story It’s the discovery moment that changes the awareness level…and it’s this increased awareness level that allows INDIVIDUALS to make decisions about their safety and the safety of others The right side is the PUSH component – this is the organization’s role The left side is the PULL component – this is the individual’s role 17

Reporting Safety on the Corporate Calendar Number 4 Reporting Safety on the Corporate Calendar Agenda I. Sales II. EBIT III. Productivity Agenda I. Safety II. Sales III. EBIT IV. Productivity

Standardization Common Language, Common Process Number 5 Standardization Common Language, Common Process Prescriptive Autonomy

Time and $ Commitment Where Do You Spend the Most Time and Money Number 6 Time and $ Commitment Where Do You Spend the Most Time and Money Before the Incident After the Incident When an incident occurs and someone is injured…what happens?

Education Training Modules (Topic specific) Number 7 Education Training Modules (Topic specific) Code and Compliance Guidelines Etc.

Requirements for Total Engagement for Safety Associate Driven Safety Performance Challenge & Metrics Problem Solving Skills Technical Skills Enhanced Peer Accountability Building Trust Team Dynamics Accepting Responsibility Structured & Disciplined Standard Work & Audits Leadership Changing Roles Communications Recognition Earning Trust Responsibilities Requirements for Total Engagement for Safety Hard Skills Soft Skills Safety Metrics JSA HRA Site engagement plan Site Charter Y Chart Behavior Based Safety Index System Awareness Programs Incident Investigation FMEA SSC Organization Sub-Committee Organization Site Safety Audit The Leader - Manager Listening to learn Communicating to my peers Working in teams Managing Conflict- 1,2,3 Motivating - 1,2,3 Injury Reporting Respect Your New Role Handling a Crisis Delegating Receiving Feedback Giving Feedback Coaching

Care Management From the moment that an injury occurs… Number 8 Care Management From the moment that an injury occurs… What is the average time to manage the case? All Industry average is 13 months.

Awareness Activities Number 9 Everyone is expected to be involved in some type of safety activity It is not optional It is a condition of employment

Oldcastle Opportunities Safety leadership teams – problem solving teams Employee audit teams Behavior observations Risk assessments Safety committees Near miss reporting “Safety is caring”

Must be delivered Consistently and Repeatedly Summary 1. Leadership Expectations and Communication 2. Measurements/Review 3. Organizational Structure 4. Reporting 5. Standardization 6. Time and $ Commitment 7. Education 8. Case Management 9. Awareness Activities Must be delivered Consistently and Repeatedly The Infrastructure that allows the Production Associates to take ‘Ownership’ of the Safety Process

Organizational and Individual CHANGE Culture Change: It IS about a CONTINUOUS IMPROVEMENT SYSTEM that concurrently achieves Organizational and Individual CHANGE in the uncompromising pursuit of zero.