The capital project and maintenance industry have become very good at protecting people, but we cannot stop at good. We cannot settle for anything other than zero injuries and illnesses. Over the years, the safety and health of our employees have gone from an afterthought to a priority to an absolute value. In 1995, just a few years after OSHA’s Process Safety Management standard was issued, the American Fuel & Petrochemical Manufacturers (AFPM) reported total recordable incident rates of 2.9 and 2.2 for U.S. refineries and petrochemical plants, respectively. Just 10 years later, those rates had dropped to 1.1 and .9. Now, with the most recent data available in 2015, those rates have fallen to .48 and .49. Fatality, lost time, restricted and work transfer cases all follow a similar trend, albeit at a lesser frequency.
This trend extends beyond safety. In all facets of operational excellence, the low hanging fruit is gone. Years of focus on quality and lean principles have driven the industry to expect top quality provided as efficiently as possible and zero harm to people or the environment. Impressive incident rates, first-pass quality, and lean work practices are no longer differentiators; they are expectations.
The industry is now in the bottom of a decades-old improvement curve, where every incremental improvement is a hard-fought battle. It is easy for complacency to set in here. Merriam-Webster defines complacency as “self-satisfaction, especially when accompanied by unawareness of actual dangers or deficiencies.” Considering this definition, it is easy to see how organizations can fall prey to complacency in the bottom of the curve, but we have to remember that this improvement curve represents people, and people are still getting hurt. In 2015, AFPM reported approximately 27,045 days lost, restricted or transferred. Those 27,045 days affected people and their families, and we owe it to them to continue to improve. Improvement in the bottom of the curve, though difficult, requires a shared vision of operational excellence that uses SMART goals, strategic planning and accountability to become better every day.
Shared vision for operational excellence
Everyone must understand that safety excellence cannot happen without operational excellence. Organizations rarely achieve safety excellence without also producing quality- efficient work products. Organizational cultures are generally disciplined in all operational aspects, or they are not. A culture of caring and respect that places a value on the safety and health of people should be the cornerstone of operational excellence, but an integrated vision of operational excellence that includes values such as quality and lean principles should be communicated to the entire organization.
Individuals fail; teams succeed. Once a shared vision for operational excellence is communicated, it must be constantly reinforced. Cross-functional roles need to appreciate the benefits of excellence in all aspects of operations so they can work as a team to accomplish shared goals with a shared plan and ultimately share in their accountability.
- SMART goals: Having Specific, Measurable, Accepted, Realistic and Time-based goals is not a groundbreaking concept; however, having the discipline to consistently set these goals, plan accordingly and hold the organization accountable requires dedication. Even properly setting these goals can be a challenge. Avoid using lagging indicators as metrics for goals, since they can adversely affect reporting and your ability to learn from incidents. There are many leading indicators that can be used to drive operational excellence and allow you to reduce injury and illness rates. Indicators such as behavioral observations and audits are frequently used, but less obvious metrics such as turnover and interventions can also be valuable.
Identifying the right goals once you have made steep improvements may require changing your mindset. Most organizations have likely been tracking the same metrics for years. Have they evolved as the organization improved? Things like individual risk tolerance, site cultural assessments, recognition, and management involvement are just a few examples of next-level ideas that can be identified and tracked for goal setting. These are all items that can indicate where attention is needed before an injury occurs.
- Strategic planning: Once SMART goals are established, a strategic plan needs to be in place to accomplish those goals. A good strategy will take into account obstacles and resources. It will also be driven by the overall vision and goals, not just good ideas. The strategic plan will ideally be a collaborative effort, so there will likely be plenty of good ideas for initiatives and action. All the ideas circulated during planning should be tested against the overall goals. If they don’t further the goals, they should not be incorporated in the plan. The strategic plan should give direction, allocate resources, account for barriers and advance the goals.
Creating a strategic plan is likely something that you do regularly. Most people attend at least one annual strategy meeting where strategic plans are discussed. Again, as an industry, we have to ask ourselves how these strategic plans have evolved as the industry has evolved. As we continue this evolution toward zero, we have to collaborate more than ever. We will not reach zero unless every stakeholder is involved and understands his or her responsibilities in the strategic plan. Leaders must engage all stakeholders, owner facilities should involve their key contractors, and contractors should get buy-in for their strategy from their customers.
- Accountability: In many cases, accountability is viewed in a negative light, but it should not be. Proper accountability is a good thing. It will generally boost morale, increase self-expectations and eliminate poor performers. Before any accountability takes place, expectations must be clearly set. It is difficult to hold someone to an expectation that has not been properly communicated and understood. These expectations should be based on individual goals and responsibilities as part of the overall organizational goals and strategic plan.
Accountability in the bottom of the curve means more than simply holding someone accountable for failing to meet a goal. Accountability is for the organization. If someone fails to meet a goal, the organization needs to ask how they might have failed that person. Did they provide them with the necessary training and information they need to succeed, or did they set them up for failure? By “doubling down” on our people with training and investment, we will continue to improve and ultimately reach zero injuries and illnesses.
These are all well-known and simple steps to improve, but the hard work is displayed in the execution. Truly questioning the status quo in a collaborative environment that encourages dissention at times can be uncomfortable for some, but is necessary to avoid being stuck in the bottom of the curve.
Remember the ‘why’
This pursuit of operational excellence will ultimately lead us to flawless execution with zero injuries and illnesses, but only if we remember the “why.” Every day, people all over the globe go to work to earn a better life for themselves and their families. They are the “why.” The motivation behind all the visions, goals, plans and accountability has to be to take care of people. This must be incorporated in the pursuit of excellence. Setting goals with leading indicators that show our collective culture values the safety and health of their co-workers above anything is an absolute necessity to managing improvement in the bottom of the curve.
To strive for zero injuries, illnesses, quality defects and productivity losses, industry members need to be engaged and bought in. This can be achieved when we appreciate why we set goals, follow a strategic plan and hold each other accountable. Tragically, we still lose colleagues every year to fatal injuries and illnesses. As an industry, our resolve to protect people has to be unwavering. Achieving zero injuries will require unprecedented collaboration, planning and execution. Most importantly, though, achieving zero will require a deep, lasting respect and care for each other. When that happens, we will overcome the bottom of the curve.
For more information, visit www.Brockgroup.com or call (281) 807-8200. •
