Changing a Culture & Measuring its Impact

John Holland Group

In 2003 the John Holland Group Safety Culture was an entrenched culture of compliance and

accreditation focus.

“If we’re legally compliant and accredited (AS4801) then we must be doing well. Our stats support this”

Construction Industry Safety

• Most medium to large companies have robust and third party accredited OHS management systems in place

• Yet incidents often occur because the system was not:• Followed;• Implemented, and/or• Didn’t address the situation which resulted in

the incident

Compliance to legislation is only a licence to operate. It will not prevent all

injuries.

The effectiveness of an OHSMS is determined by company leaders, their

personal commitment, and the workplace culture they create.

The three critical management levels in establishing and building an effective safety culture:

1. The Board, Managing Directors, CEOs & GMs determine the overall company culture

2. Project/Workplace Line Management - determine the workplace culture

3. Supervision – directly influence individual behaviours & team culture

Building a Safety Culture

If all three are consistent in their approach, message and commitment then a positive sustainable & effective

safety culture will prevail

• Focus areas were broken into 4 key elements and were seen to all directly influence our safety culture

• OHS Systems Simplification

• Leadership Skills and Knowledge

• Leadership Commitment and Accountability

• Industry Influence and Improvement

JHG Improvement Strategy

System Simplification

Feedback from Management & Projects

Tell me

When I have to do it

What Standard to have to do it to

How often do I have to do it

What I have to do

System Simplification

Activity N

umber

Activity DescriptionLEGENDP = Direct responsibility for leading or performing the task.S = Provides assistance and support to the person directly performing the task.

Occupational Health and Safety Accountability and Responsibility Matrix

Leading Hand

HR

Coordinator

Com

mercial M

anager

Safety Advisor

Safety Manager

Supervisor

Superintendent

Estimator

Project Adm

in

Engineer

Project Manager

Operations M

anager

General M

anager

MD

/ Deputy M

D Minimum Task Timing Applicable Procedure

23 Monitor subcontractor activities

    S S S P P S   P P S    

Daily JHG-2-008 Managing Subcontractor SafetyJHG-2-005-3 Performance Rating of Subcontractors

24 Identify & include suitable OH&S requirements into Subcontractor packages

    P S P     S P P S S  

For every subcontractor package

JHG-2-008 Managing Subcontractor SafetyJHG-2-005-3 Performance Rating of SubcontractorsJHG-2-004-1 Letting of subcontracts / supply packages

25 Carry out a formal OH&S related review of Tender documents

    P S P     S S P S S  

For every tender received /submitted

JHG-2-004-1 Letting of subcontracts / supply packagesJHG-2-008 Managing Subcontractor SafetyJHG-2-005-3 Performance Rating of Subcontractors

26 Monitor & evaluate OH&S performance of subcontractors

      P S S P   S P S  

Monthly JHG-2-008 Managing Subcontractor SafetyJHG-2-005-3 Performance Rating of SubcontractorsJHG-2-030-1 Inspection, Testing & Surveillance

Ensure people understand:

• How?

• Why?

• When?

• The expected outcomes?

• Provide skill and behavioural competencies

Ownership of Safety Through Skills & Knowledge

Certificate IV Safety Leadership - Construction

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Course Attendance - Duration in days 3 1 1 1 1 1 1 1 .5 .5 1 1 1 1 1 Managing Director ? ? 4 ? General Manager ? ? ? ? 6 ? Operations Manager ? ? ? ? ? ? 8 ? Project/Workplace Managers ? ? ? ? ? ? ? ? ? ? 11.5 ? Safety Manager ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 16 ? Safety Advisor/Coordinator ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 16 ? Precontracts / Commercial Mgr ? ? ?

?

?

7 ? HR Coordinator ? ? ? 4.5 ? Estimator ? ? ? ? 6 ? Superintendent / Site Mgr ? ? ? ? ? ? ? ? ? ? ? 12.5 ? Engineers ? ? ? ? ? ? ? ? ? ? 12 ? Supervisor ? ? ? ? ? ? ? ? ? 10.5 ? Leading hand ? ? ? ? ? ? ? ? 10 ? Project Administrator ? ? ? ? 5.5 ?

Program structure, attendance, and module durations matrix

Three day module with a heavy focus on leadership,

communication & influencing skills and techniques for

answering the John Holland Group six powerful

questions:

What am I accountable for? What are the key risks areas in my business? How do I go about maintaining a clear picture of the risks? What are the critical controls that are used to manage

these risks? How do I know that these controls are actually in place? How do I know that these controls are effective in

managing risks?

Safety and Risk Leadership - The Foundation Module of PSEP

Is It Working?Workers Compensation Claims > 1 week off work

per 1000 employees

0

5

10

15

20

25

30

35

2003-04 2004-05 2005-06 2006-07 2007-08*

Financial Year* figures to 31 Dec 07

Inci

denc

e R

ate

JH Construction Industry Australia

Is It Working? TRIFR

2003 – 30.82004 – 28.32005 – 25.62006 – 21.52007 – 22.0

LTIFR2003 – 4.52004 – 5.52005 – 3.92006 – 3.02007 – 2.2

• Survey findings & PSEP feedback getting more positive and being integrated into audit & awareness programs

• Workers Comp Avg Claims costs have dropped by over two thirds

• Claims numbers have dropped by 60%

Some Observations on Culture

• the commitment to safety has to come from the top, and it must be a visible commitment

• rewards and consequences• leadership behaviours matter more than

words, policies or procedures

Consequences

During the Silesian Campaign, Frederick the Great was going the rounds of his camp after ‘lights out’. Observing the glimmer of a taper coming from a tent, he found Captain Zietern engaged in sealing a letter. The culprit fell on his knees and begged for forgiveness. “Take a seat”, said Frederick, “and add a few words to what you have already written”. Captain Zietern obeyed, and wrote at the dictation of the hero of Prussian history, “Tomorrow I die on the scaffold”.’

Quoted in Sir Ian Hamilton The Soul and Body of an Army 1921

Consequences

• if you’re serious about safety, then it’s not negotiable

• some managers won’t; some managers can’t

• if you tolerate either, you won’t get to ‘No Harm’

• execution vs training

Organisation Man

• evolved over last 300 years• enhanced sensory capability

– detects differences between espoused values and genuine values

– generally unspoken• survival is more likely if actions are in

accordance with leadership’s real priorities

Conditions for Success

• a robust system– risk identification and mitigation

• firm, uncompromising leadership– set the expectations

• ‘consequences’– can’t vs won’t

• actions must follow espoused values– homo corporatus