Charles Cowley Shell International Petroleum Company Advisor - Health, Safety, Security & Environment: Competence, Learning and ‘Hearts & Minds’ - Downstream

Safety Statistics Shell Group 1990-2004 PXE 10/05/04

2004 target missed mainly due to major construction projects

Shell’s HSE Performance Technology and standards HSE Management Systems Incident rate Time

Shell’s HSE Performance Technology and standards HSE Management Systems Incident rate Improved culture Time

Culture Ladder Safety Culture Ladder The best way to understand our culture is in terms of an evolutionary ladder. Each level has distinct characteristics and is a progression on the one before. Looking at it like this provides a route map, where every team, or company has a certain level of cultural maturity and can see which rung of the ladder they are on, where they have been and what the next step looks like. The range runs from the Pathological, through the Reactive to the Calculative and then on to Proactive and the final stage, that we call the Generative. Pathological, is where people don’t really care about Safety let alone Health and the Environment, and are only driven by regulatory compliance and or not getting caught. We probably all recognise this from the past but is something we have hopefully move beyond. People say things like “it’s a dangerous business”, Reactive, is where safety is taken seriously, but only when gets sufficient attention after things have already gone wrong. People say things like “you have to understand it is different here”, “you have to look out for yourself”, or “those who have the accidents are those who cause them”. At the reactive level managers take safety seriously, but feel frustrated about how the workforce won’t do what they are told. ‘If only they would do what they are supposed to’, ‘we need to force compliance’. The next level, Calculative, is where an organization is comfortable with systems and numbers. The HSE-MS has been implemented successfully and because HSE is taken very seriously, there is a major concentration upon the statistics – bonuses are tied to them, contractors are rated in terms of their safety record, not just because they are the cheapest. Lots of data is collected and analysed, we are comfortable making process and system changes. There is a plethora of audits and people begin to feel they have cracked it. Nevertheless businesses at this level still have fatalities and are surprised when these occur. Proactive is where Shell is aiming for. It is moving away from from managing HSE based on what has happened in the past to really looking forward. Not just working to prevent last week’s accident, it is starting to consider what might go wrong in the future and take steps before being forced to. Proactive organisations are those where the workforce start to be involved in practice, as well as in management statements of intent. Unlike the Calculative, where the HSE department still shoulders a lot of the responsibility, in Proactive organisations the Line begins to take over the HSE function, while HSE personnel reduce in numbers and provide advice rather than execution. Indicators become increasingly process-oriented o       Are we doing the right things, - rather than just focused on incidents o       Have we had any accidents? It is quite simply about creating an environment that encourages the behaviours and beliefs that will deliver lasting improvements in our performance both HSE and beyond.   - As an organisation climbs up the ladder there the level of informedness and trust increases with people offering to accept accountabilities (‘you can count on me’) rather than just being told they will be held accountable for some outcome. Informedness is about mangers knowing what is happening in their organisation and where all the problems are, and the workforce knowing exactly what managers expect – no mixed messages. Because managers and workers are aligned, this builds two-way trust. Because people know what is expected and are trusted to do it, there is less need for bureaucracy, audits and supervision, so workload decreases from after the Calculative stage Generative organizations set very high standards and attempt to exceed them rather than being satisfied with minimum compliance. They are brutally honest about failure, but use it to improve, not to blame. They don’t expect to get it right, they just expect to get better. Management knows what is really going on, because the workforce is willing to tell them and trusts them not to over-react on hearing bad news. People live in a state of chronic unease, trying to be as informed as possible, because it prepares them for whatever will be thrown at them next.

Culture Ladder Chronic unease (Mindfulness) GENERATIVE Chronic unease (Mindfulness) Safety seen as a profit centre New ideas are welcomed PROACTIVE Resources are available to fix things before an accident Management is open but still obsessed with statistics Procedures are “owned” by the workforce CALCULATIVE We have our HSE-Management System – we’ve cracked it! Lots and lots of audits We collect lots of statistics REACTIVE We are serious, but why don’t they do what they’re told? Lots of discussions to re-classify accidents You have to consider the condition under which we are working PATHOLOGICAL The lawyers/regulator said it was OK I’ve done my bit for HSE this year Of course we have accidents, it’s a dangerous business Sack the idiot who had the accident

Characteristics of a “Proactive” Culture Focus on correcting Latent Conditions Focus on Leading Indicators Accountabilities are clear and well understood Individual Consequences are ‘fair and just’ and well understood Interventions are normal and welcomed Increasingly Informed Increasing Trust and Accountability

Overall Objectives of the Hearts & Minds program: People doing the right things naturally rather than forcing them Lasting change

Hearts and Minds tools - design premises Established theories (e.g. Change Processes, Tripod, BBSM, etc) Pleasant, well designed and printed, Fun, Short Fit for local work environment and national/work culture Not another major management initiative Build on methods that people are used to and that work well No need for outside facilitation; accessible science For small groups, finding ways to solve their problems Creating change, not just diagnosis Particular highlight for this audience: Fit for national culture Building on what is already in place

“Understanding Your Culture”

Change Management Process

Introducing Hearts and Minds A Balanced Approach Introducing Hearts and Minds TOP-DOWN Show an interest, ask questions Ask about successes Set clear expectations Speak enthusiastically about it Praise people Use some tools yourself Support pull from the bottom BOTTOM-UP Involve the workforce Create enthusiasm and ownership “Breed believers” not train the trainer Make it fun, pleasant “Fishing” and “pull”

Conclusion The idea is simple A project will succeed if people want to achieve it and feel personally involved Tools are constructed to support the development of a ‘Culture of Safety’ Don’t rush Results will take time