she strategic planning is good risk management
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Its thattime of
year
again!!!
Where
do Ibegin?
So manyissues to
dealwith!!
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SH&E Strategic Planning: Maturity-Criticality Approach to Continuous
Improvement
David Steinbacher, MPH,
CSP
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Goals & benefits of systematic risk-basedplanning
Elements of SH&E strategic planning
Evaluating program maturity & criticality toprioritize initiatives Maturity-Criticality Rating Scheme design,
evaluation and risk ranking
Planning for continuous improvement
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Building a Rationale forSelecting Your Initiatives
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Use a shotgun approach spray & pray Focus on injury & illness rates Rely on intuition to determine areas of
improvement Work on things you like to work onJump on the hot fad Firefight current areas of weakness or concern
Just implement goals provided by a higherorganizational level
Systematic Risk-Based
PrioritizationSystematic Risk-BasedPrioritization
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Builds a logical rationale for initiatives in a waythat makes sense to management!
Aligns initiatives to the needs of the business Provides basis for setting priorities with limited
resources Makes functional & individual goal-setting much
easier!
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Can be as simple or complex as you want it to be
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A High Level View
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How do we reach our idealized design (Vision) now?
Example: Interactive Planning (Russell Ackoff) A novel planning approach that can be applied to
any type of planning Design a desired present and implement the
means to approximate it as closely as possible Formulate the Mess (Situation Now)
System analysis Ends Planning - Idealized design (Your Vision)
Means Planning - Identify gaps & ways to bridge them
Resource Planning
Implementation & Control
Applied to SH&E management at DuPont by JamesLeemann
Risk-BasedAnalysis& Prioritization
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What are your SH&E aspirations foryour organization? Is it aligned with your overall business
direction and goals? Is it realistic or pie in the sky? Is it unique to your organization? Does it address all stakeholders? Does it inspire people?
Is it vague (world class) or is it welldefined with specific attributes thatpaint a picture of where you want tobe?
Verbalized in a Mission Statement
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;
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Existing EHS
Management SystemElements
(what maturity
improvement is
needed?)
What new EHSprogram elements orconcepts are
necessary to achieve
visualized EHS
design?
EHS initiatives
needed to address
specific business
needs / response to
environmental
drivers
Integrate EHS Strategic Planning EHSVision
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Effective EHSplanning cannotoccur in a vacuum
Understanding thekey drivers thatimpact yourbusiness, thecompany culture
& the EHS systemare essential!
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Gather all the data you can to understand the state ofyour EHS systems Perception surveys (employee attitudes & safety culture) Hazard & vulnerability assessments Needs surveys and analyses Key performance indicators Audits and reviews Behavioral observations Incident exposure ($$$) Feedback from the community Interaction with regulatory agencies Benchmarking
How effective are your systems? What are the weaknesses and opportunities? Is your system aligned with stakeholder expectations?
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Identify
ProcessElements
Create
MaturityRating
Scheme
Create
CriticalityRating
Scheme
ConductReview
Identify
ImprovementOpportunities
Prioritize EHSElements
PROCESSFLOW
OUTPUTS List of keyEHS
elements
Maturity
definitions
& scoring
system
Criticality
definitions
& scoring
system
CalcuatedMC Scores
List of
ideas for
each
element
Elements
ranked by
MC score
& maturity
Integrate with Strategic Direction & Goal-Setting
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Break down to level of detail andspecialization appropriate for your situation: Less mature systems more general
Greater maturity more detailed to fine tune
Consider management systems (e.g. OHSAS18001, OSHA VPP) that use prescribedelements or categories
Breakdown by specific programs or sub-elements Consider company culture aspects
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Assessing maturity helps to clarify the currentstate of your programs and processes Useful to use a quantifiable measuring stick:
Design a rating system that makes sense for yourorganization
Use definitions that are unique/useful for your industry Be honest in your assessment Program maturity can improve or deteriorate Look for gaps between the current state of your
programs and your vision Gaps can also be obstructions to achieving your
vision (organizational, cultural, process) that must betaken into account
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Maturity
Score
Maturity
Level
Definition
1 Introduction System element does not exist or is in earlystage of development. Major gaps existbetween vision/idealized design and currentstate.
2 Informal Early stages of a formal system. Moderategaps still exist between vision/ idealizeddesign and present state.
3 Functional Formal system established. Functions in well-managed and controlled fashion. Minor or nogaps exist between vision/idealized designand present state
4 Model Model process that is a benchmark for others.
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Rating a programs maturityreveals areas that need to befurther developed andimproved; however: What do we do if we have manyprograms at a low maturity level?
What do we work on first?
Which ones pose the most risk tothe organization if notadequately developed andcontrolled?
Which ones will give us the mostimpact for our efforts?
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Aids in prioritization by introducing risk into theplanning process What is the impact to the organization if this
program/process is not effectively implemented?
What are the unintended consequences?
Helps us focus on those program elements thatshould be addressed first to bridge the mostcritical gaps
Design a criticality rating system appropriate foryour organization
All organizations have limited resources!
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CriticalityScore
CriticalityLevel
Definition
1 BusinessCritical
Required for sustained business operation. Iflacking, potential for significant regulatorynon-compliance, fatality or serious injury,penalties and fines, major adverse event,
adverse public relations.
5 Core Key element or required process essential forproper management of EHS functional aspects
7 Improvement
Oriented
Element part of ongoing process improvement
to enhance the EHS management system.
Greater weight given to criticality moredifferentiation
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Prioritization can be aided by consideringboth maturity and criticality.
MC Score Maturity X Criticality = MC
The lower the number, the higher the priority
Similar concepts used in hazard analysis(e.g. FMECA)
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Element M C MC Improvement Opportunities
Fleet Safety 1 1 1 Vehicle selection & safe drivingprogram for sales
Blood Program 3 1 3 LEAN initiative eliminate waste
& reduce costCAPA System forEHS
1 5 5 Create cost effective system
LeadingIndicators
2 7 14 KPI tracking system
Ergonomics 3 5 15 Discomfort survey to identify at-risk employees
Economic driver: need lower program cost
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Highly criticalprogramsmust alwaysbe closelyassessedregardless ofmaturity
Programs candeteriorate!
Figure 4 MC Decision Matrix
Model (4) 4 20 28
Functional (3) 3 15 21
Informal (2) 2 10 14
Introduction
(1)1 5 7
Business Critical
(1)
Core
(5)
Improvement-
Oriented
(7)
High Priority Medium Priority Low Priority
IncreasingMaturity
Increasing Criticality
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Training Aspect Maturity Rating
Training Needs Analysis M2 (Informal)
Quality of training content M3 (Functional)
Training participation/attendance M3 (Functional)
Use of computer-based modules M1 (Introduction)
Training documentation system M4 (Model)
Evaluation of training effectiveness M2 (Informal)
Have you considered all program/processaspects?
Drill down to assess at more detailed level Example: SH&E Training Program (M3/C5)
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Depends on the companys goal-setting andbudget process
Give yourself enough lead time to gatherinformation and evaluate Prior to budget cycle is preferred
Aligned with performance process
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Use Visual Indicators toMonitor Improvement
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0
10
20
30
EHSElements
Maturity Baseline
M1
M2
M3
M4
0
10
20
30
EHSElements
Year 1 Maturity Distribution Goal
M1
M2
M3
M40
10
20
30
EHSElements
Year-2 Projected MaturityDistribution
M1
M2
M3
M4
0
10
20
30
EHSElements
Year-3 Projected MaturityDistribution
M1
M2
M3
M4
Focus onmovingprocessesout of M1and M2categories
Driven bypriority
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0.00
1.00
2.00
3.00
4.00
Baseline Year-1
Goal
Year-2
Goal
Year-3
Goal
AverageMaturityScore
Projected Maturity Transition
Projected and actual improvement in scores: Average cumulative maturity score (all programs or
categories)
Also used for average MC score
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Consider risk aspects in your planning process Be objective and critical when evaluating your
programs and processes Obtain perspectives from other people in the
organizationTake time to identify the needs of the business and
stakeholders Adjustments may be needed based on business
needs and environmental factors
Mature processes can deteriorate and all processescan be improved
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Anthony Smith (Co-Author) Shinko Campos (ZymoGenetics Retired) Russell Ackoff & James Leemann (Interactive
Planning)
Suggested Reading: Re-Creating the Corporation: Design of Organizations
for the 21st Century by Russell Ackoff
Contact Info: Dave Steinbacherdast@zgi.com|206-442-6791
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