culture change is it eating your strategy?. copyright © 2011, e. i. du pont de nemours and company....

Culture ChangeIs It Eating Your Strategy?

Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont.

Culture ChangeIs it Eating Your Strategy?

November 1, 2011

Rosanne Danner North America Regional President,DuPont Sustainable Solutions

Carol A. Palmiotto Global SHE, Sustainability and Product Stewardship

Manager, DuPont

3November 1, 2011Is Your Culture Eating your Strategy


Safety Contact

Source: Richard Perry, New York Times, January 17,2010

Phones aren't just distracting drivers; they make pedestrians inattentive too.



Agenda

Overview

• Why is Culture Important

• Culture – What you do when no one is looking

• How to Begin to Change your Culture and what it can mean

Open Sharing Time



Agenda

Overview




Open Sharing Time



Why is culture important?

Just Ask NASA:

What causes management to “not listen” to 8 specific requests for pictures?

What causes management to disregard launch temperatures?




Just Ask Oil & Gas Offshore:

Why do fires continue to occur on offshore platforms?

Why do major losses of containment occur?

What causes management to forget the “lessons of the past?”




Just Ask the White Star Line:

Why did so many lose their lives on the Titanic?

Why did the Titanic not have enough life boats?

What causes management to not pay attention and to not invest in safety?



Knowing your Organizational Culture is critical when implementing your solutions whether business or safety!

What is YOUR safety culture?

From Dilbert, March 26, 2006, © Scott Adams



Definition of Culture

Useem, J., & Useem, R. (1963). Human Organizations, 22(3).

Culture has been defined in a number of ways, but most simply, as the learned and shared behavior of a community of interacting human beings" (p. 169).

Culture is the assembly of characteristics and attitudes, in organizations and individuals which drives the behaviors of the team during the different environment and circumstances it encounters… Shared values and beliefs

The positive behaviors as definedby the culture are often rewarded.



So what is a strong Safety Culture?

The USA Nuclear Regulatory Commission defined a good safety culture as:

“A good safety culture in a nuclear installation is a reflection of the values, which are shared throughout all levels of the organization and which are based on the belief that safety is important and is everyone's responsibility.”



DuPont’s Model of a Journey to a Strong Safety Culture



As a leader for Safety it is critical to understand the culture of your organization!

Is the team aligned on the organizational values, mission and goals?

Execution opposite those values are key!



Overview




Open Sharing Time

Agenda



Cultural Reality in the Workplace today

What is called out as Core to your operations?• Core competency or core value to live by?

What is accepted by site and business leadership?• Housekeeping

• Short-cuts

What is the message delivered by site and business leadership? Tone at the top

What are the behaviors that site and local business leadership exhibit?

What is rewarded? Is operating discipline important?• What is considered extra time and resources?



How else can we measure the Operating culture?

Does the organization set lofty aspiring goals … like “The Goal is Zero,” or does it set attainable targets and is therefore willing to accept some injuries or incidents?

• So which injury or incident is acceptable and how do you control that?

Does the organization measure and discuss near misses?• So as to learn from them and correct potential hazards and

unsafe acts or conditions

Is the organization open and communicating?• Not punitive for sharing

• However recognizing that malicious intent will not be permitted



Leadership is Responsible and Accountable

Leadership sets the tone and the environment• Setting high standards for what is acceptable

Leadership encourages and engages all employees in dialogue

• In reviews, audits and walk-abouts

• Provides employees with the option to stop unsafe work or conditions.

Leadership supports immediate correction of situations that are dangerous or likely to cause harm to employees.

Leadership supports training and awareness for all



What about Acquisitions, Mergers, Joint Ventures and other alliances?

Understand and respect their culture• Conduct an analysis / assessment• Develop an actionable integration plan with them .

Engagement is essential!

Set expectations early• Develop contracts or MOU’s that spell out the “what”s• Discuss the “how”s in getting support or resources

Ensure their leadership understands, embraces and engages in the new expectations

Provide training and awareness

Mentor /Buddy system – Plant or unit manager and SHE manager

Make sure it is understood that this is a TOGETHER Journey!



Acquisition Experience

Understanding during Due Diligence what their culture is Pre-Day 1

Understand their capacity to make the changes?

• Willingness versus capability

• Can they learn

• Do they historically resist change

Find the change agents in their organization early!



Overview




Open Sharing Time

Agenda



So let’s look at how we get and sustain the needed culture in your organization



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Relative Culture StrengthAverage of Survey Respondents in Industry

Reactive

Dependent

IndependentInterdependent

Benchmark Best

NAICS IndustryAvg

TRR*AvgRCS

481 Air Transportation 8.7 29311 Food Manufacturing 6.2 35336 Transportation Equipment Manufacturing 6.0 44327 Nonmetallic Mineral Product Manufacturing 5.9 55

48-49 Transportation and Warehousing 5.7 42424 Merchant Wholesalers, Nondurable Goods 4.7 55322 Paper Manufacturing 3.7 40212 Mining (except Oil and Gas) 3.5 61221 Utilities 3.5 52325 Chemical Manufacturing 2.7 64

4862 Natural Gas Pipelines 2.3 57324 Petroleum and Coal Products Manufacturing 1.9 47211 Oil and Gas Extraction 1.4 54

* TRR based on 200,000 hours

Understanding where you are is critical



A culture develops one individual at a time



And organizational culture looks at both individual and the collective – taking into account all aspects of both



Organizational transformation must include changes in process, actions and procedures AND individual competencies



If done correctly it can move an organization’s culture

External MotivationCOMPLIANCE

Internal MotivationCOMMITMENT

“I follow the rules because I want to”“I follow the rules because I have to”

Felt Leadership, Role Modeling, Influencing ►► Engagement

Rules, Procedures, Protocols



And result in: The 4 Cs

Confidencein self & the safety

system

Competenceown skills,

knowledge & attitudes

Careown values, beliefs, mindset of Concern

Sustained Culture

where the goal is zero



You also have an integrated system in place – whether applied to safety or business strategy

Process

People

Structure

Leadership



And you have aligned the individuals

“Align what I think with whatI do and with what others around me think and do”



In our experience, clients who have improved culture receive significant benefits

Significant shift in safety culture within 2-3 years

Significant reduction in injuries in less than 3 years, sustainable continuous improvement going forward

Lower costs

Faster transition to new systems and assistance to alleviate and balance workload concerns

Improved overall safety performance (safety pyramid)

Improvement in other Business parameters, such as reliability

Examples – Six companies (Industries) below:

Year 1 Year 2 Year 3WC Claims Rate Improvement Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12

Transportation 14% 16% 16% 32% 39% 37% 41% 37% 61% 48% 56% 46%

Retail 24% 31% 33% 29% 51% 60% 46% 56% 56% 60% 48% 54%

Bottling 9% -6% 27% 22% 0% 27% 33% 29% 45% 35% 47% 42%

Manufacturing 1% 4% 10% 17% 26% 30% 34% 37% 37% 37% 37% 37%

Service 0% 16% 13% 23% 20% 27% 47% 50% 36% 35% 37% 37%

Service 15% 15% 21% 3% 15% 3% 23% 7% 41% 36% 36% 48%

Average Improvement 11% 13% 20% 21% 25% 31% 37% 36% 46% 42% 43% 44%



Conclusion

Understanding the culture of your organization is critical before designing any strategy for change.

Having leadership aligned with your strategy is critical.

Culture develops one individual at a time.

To move or improve culture you must work on both the organization and the individual.

Improving the culture results in business performance.



Questions?

culture change is it eating your strategy?. copyright © 2011, e. i. du pont de nemours and company....

Documents

dupont logo

culture importantculture

miracles of science

sharing time

safety contact source

national safety council

offshore platforms

richard perry