Engage Management

Project Success Stories

Safety Value Assurance

by Scott Ratchinsky

We are not a safety company. Through a dedicated team effort with significant time, organizational resources our ultimate goal is to improve the leadership culture by creating a working environment with the following observable value elements.  While not easily measured at a given time, they are nevertheless observable and as such provide a leading indicator of engagement, learning and safety performance.

The Observable Value Elements, Attitudes and Programs of a Leading Culture

V-Elements Attitudes Typical Programs
Engaged employees "People taking accountability for their groups' safety" Leadership Seminar / Training
Before / After Action Reviews
Video message
Pro-activity "People fixing potential problems before they become real problems" Stop the Job
Idea capture and management
JHA consistency
Continuous Improvement "How can we do this better while still being safe" Drilling Best Practices Manual
De-bottle neck systems
Support of contractor innovations
Sustainability "Its our way" using programs for the Contractor and COP that meets highest standard Consistency Team
Established Recognition
Positive FIT communications
Establish people first attitudes

Engage Management is a performance improvement consulting firm that focuses on cultural and behavioral change.  Engage Management's most fundamental belief is that people are the essence of any business.  The solutions for many company challenges can be found within and through their own people.  Engage Management's approach is to work within an organization to help them change the way their solutions are developed.

One of Engage Management's key principles is that our front line coaches should spend a significant amount of their time on four activities:

This is particularly difficult to achieve in industries with remote work sites and employees. In the Energy industry this is exacerbated because of the constant movement of work locations, the 24/7 nature of many of the operations, turnover and the widespread use of contractors. However, the fact that it is difficult does not diminish its importance. It only instills the need for creativity in providing the time and place to coach success.

RETURN ON INVESTMENT - SAFETY LEADERSHIP

What you already know concerning Value Assurance:

Facts you should know:

In 2001, the Workplace Safety and Insurance Board (WSIB) identified the cost of one lost-time injury to cost an employer an average of $35,000 in direct costs alone. H.W. Heinrich was the first to try and distinguish direct and indirect costs of an incident, and he estimated the ratio of the indirect costs of injuries to the direct costs to be approximately 4:1.

Estimate 1 lost time incident = $35,000 + 140,000 = $175,000

In a study conducted by R. Sheriff, he showed that the ratio of indirect and direct costs may be as high as 10 compared to Heinrich's 4.

Simple Calculation without understanding severity: Current Spending

15 incidents associated costs 2009 = $2,625,000 (conservative)
Contractor / Operator Indirect Return

EG. Company A -Data

Workman's Comp. %


Turnover

 

2004 17.17  
2005 10.28  
2006 11.74  
2007 9.55 Zero TRIR
2008 8.14 Zero TRIR
2009 6.45 Zero TRIR
2010 5.12  

 

Other value recovery KPI's that we have helped mature:

 

Return on Safety Investment

www.OSHA.GOV : One study estimated that a safety and health program saves $4 to $6 for every $1 invested. Charles Jeffress speech, 10/30/1999