Integrating Safety Management Systems – Opportunities for Improvement Prue Hardiman Managing Consultant, Noel Arnold and Associates prue.hardiman@noel-arnold.com.au

The Key Message Strong leadership Managing Health & Safety is …. An organisational priority A senior and line management responsibility Requires infrastructure, systems, active safety culture and Strong leadership Key Messages Yes, safety is everybody’s responsibility, but it is the fundamental responsibility of operational managers to provide a safe working environment and safe ways of working. In plain english, this means that the OH&S team can provide information, advice and assistance, but the principal responsibility lies with line manager. Health & safety is an integral element of effective organisational management. No more, no less. As with other aspects of management, this responsibility starts at the top. This is why the CEO of the National Bank had to resign. This is why the CEO of the Cantebury Bulldogs had to resign – because they recognised that they personally had to accept responsibility. So how should senior managers fulfil their responsibilities? Managing health & safety has changed significantly in the last twenty years. Then, we simply provided workers with hats, gloves, glasses, etc told them to be careful and ignored the cause of the risk. In other words, management adopted a reactive approach. In the nineties, systems were promoted as the key to improving performance with many organisations adopting safety, quality and environmental management systems. Adoption of this more systematic and preventative approach brought substantial improvements but is not the total answer. Investigations into the Longford and Waterfall disasters quickly identified a huge gap between the daily work practices and the system, ie between what was supposed to happen and ehat actually happened each day. In addition, a number of organisations that have introduced safety management systems have now ‘plateauxed’ in terms of performance improvements and recognise the need for new approaches. What are the missing ingredients? It is not rocket science, nor is it exclusive to health & safety. To make the systems work in practice, the two vital ingredients are an active safety culture – working safely is how we work around here and leadership by senior management, because you set the pattern. Let’s look at what the Optus OH&S policy commitment ….. Handout Optus OH&S Policy

Traditional Approach Often reactive to OHS issues/risks Ad-hoc processes & systems Focus on measuring negative outcomes Management largely unengaged in OHS Limited consultation

Waterfall Report (NSW State Rail) “An underdeveloped safety culture …. resulted in failure in the application of the safety system by line management” Safety critical equipment used despite management knowledge it was not safe Procedures & processes not followed Lack of training Day-day culture focused on efficiency at the expense of safety Key Messages The findings of the report into the NSW Rail disaster at Waterfall are similar to Longford. Again, let’s look at Optus. How would an investigator describe the prevailing culture among the line managers in relation to OH&S management at Optus? Would they find a diligent, conscientious application of safety policies and procedures with all employees and team leaders trained to meet their responsibilities? Would they find managers confidently demonstrating that all equipment used by employees and contractors is appropriate to the task, properly maintained etc or as in the case of NSW Rail, would they discover that safety critical equipment was still being used, more than 10 years after being advised it was not safe. Would the investigator find that managers are very committed to OH&S and able to demonstrate they value safety as well as profitability – or in reality, committed to achieving profit targets and prepared to sacrifice safety to achieve those targets?

Contemporary Approaches OHS management linked to strategic & operational objectives. OHS management systems must relate to an organisation’s activities, risk profile, structures & culture Adoption of a systems based approach OHS integrated into operational processes Focus on consultation & problem solving Senior management leadership & accountability

The ‘Strategic’ Approach OHS Integration: at what level? Strategic Operational Organisational change New equipment and processes Business process Planning cycles and requirements

Framework for Improvement 1.Safe equipment and facilities 2. Systematic Approach Improved OHS Performance 4. Leadership 3. Active OHS culture

Safe Equipment & Facilities Design reflects OHS requirements Safe products purchased Regular inspection & maintenance Operational & training requirements established

Systematic Approach Active (not passive) risk management Focus on building organisational competency Planning processes reflect systematic thinking Accountability for performance culturally embedded at all levels Systems promote learning from errors Credible – close the loop where issues identified

Active Safety Culture Consultation and participation Effective communication- formal informal, open, frequent Recognition & reward for OHS Learning culture

Leadership Leading by example Clear accountability & responsibility Plans & programs incorporate OHS Communicating importance of OHS

Leadership is the key Leading by example Participation Demonstrate knowledge Model behaviours Clear accountability & responsibility OHS responsibilities in duty statements Each individual accountable for safety KPI’s developed & articulated

Leadership is the key Plans & programs incorporate OHS Objectives & targets for OHS performance at all levels OHS issues in work planning activities Plan for work output/OHS needs conflicts Communicating importance of OHS OHS part of meeting agenda Feedback from employees on OHS initiatives Recognise & reward performance

Case study – Rocla SAFE – Take Care Always

Objectives of Rocla SAFE Identify and analyse factors contributing to poor safety performance Review progress of implementation of the plan and assess improvement of safety performance by LTI’s and MTI’s and reassess attitude of employees using same tool Document an agreed OHS Improvement plan based on consultation with stakeholders and implement

Approach – peel back the layers Focus group methodology using safety culture diagnostic tool Targeting three key groups, managers, team managers and operational employees Used same questions and measured the responses Defined individual site issues

Safety Culture Assessment

Moving Forward Strategy was established into 2 streams: Corporate Safety improvement plan 2. Site Safety Improvement plan - systems, equipment, culture, leadership

Corporate Safety Improvement Plan Commitment by Senior Management to the Rocla SAFE process Clear understanding of behaviours and actions required by leaders Identification of actions required of Senior Management to assist in implementation of Rocla SAFE initiative

Site Safety Improvement Plan SSIP developed for each of the 12 sites Crucial to success of the project Demonstrated leadership commitment to employees Implementation tools provided and outcomes of individual reports Resulted in continuous improvement process

Site Safety Improvement Plan Site Based Leadership Training Aimed at Team Leaders, Coordinators, Safety Representatives Covers roles and responsibilities, behaviours and actions required Participation of Site Managers important Incorporate Safety Leadership Action Guides

Communication Initiatives Committees and H&S Reps Tool box talks Integration of safety into production meetings Feedback to employees on safety improvement Recognition processes

Leadership Initiatives Integration of safety and productivity Management participation Discussion of safety and focus on safety day to day Addressing of safety concerns Closely linked to communication

SSIP – Immediate actions Allocated implementation actions utilising the OHS committee Progress reviewed against site safety improvement plan at least monthly Progress communicated by management to employees regularly, face to face where possible

SSIP - Longer Term Closely monitor site performance Record leadership and communication actions taken Regularly update employees on status Enable safety coordinators to participate in risk management project Provide for participation in on-going safety training initiatives

Outcomes 50% reduction in LTI’s and MTI’s over last 12 months High level of manager and employee engagement Ownership of improvement initiatives by all employees Future savings through reduction in Workers Compensation claims and reduced disruption to production

Summary Integration – identify opportunities at strategic/operational levels Historically emphasis placed on OHS systems & equipment Recognition that leadership & culture are important drivers for improvement

Summary Upstream performance measures drive improvement in downstream outcomes Understanding cultural issues and behaviours through involvement of employees generates more effective and sustainable outcomes.