the roadmap to a best-in-class safety strategy
DESCRIPTION
Are you frustrated by not being able to make use of all the data you’ve collected? Do you run for cover every time you hear complaints about taking the time to do incident reports and hazard analysis? Do you struggle to use Job Hazard data to improve incident rates? This presentation shows the visuals from a discussion about Best-in-Class safety strategy.TRANSCRIPT
THE ROADMAP TO A BEST-IN-
CLASS SAFETY STRATEGY
October 2014
Sponsored By:
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KEVIN
PROUTY
Senior VP
Research
ABERDEEN
GROUP
MODERATOR
30 years experience in manufacturing, supply chain, and
engineering.
Industry Experience:
• VP of Research, Enterprise Applications, Aberdeen
• Sr Director, Manufacturing and Product Design, Aberdeen
• Director of Manufacturing Solutions, Infor
• Director of Manufacturing Solutions, Motorola
• Sr Director, Automotive Research, Gartner
• Sr Director, Manufacturing Research, AMR Research
• General Supervisor/Plant Manager, Saint Gobain/Norton,
Superabrasives
• Various engineering positions at Norton and Morgan
Construction/Siemens
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BEN
ARCHIBALD
CTO
Remedy
Interactive
FEATURED SPEAKERS
KEN COLONNA
Director, Safety
Services, West
Leading Family
Entertainment
and Media
Enterprise
As the CTO and Co-Founder at Remedy Interactive, a leading
provider of health and safety management software, Ben Archibald is
responsible for product leadership and innovation. A thought leader in
health & safety technology, Ben leverages 20 years of experience in
the software industry to create unique products that focus on
measurably improving the efficiency and impact of safety efforts, while
fostering a culture of safety, across global organizations.
As the Director of Safety Services, West, for a leading family
entertainment and media enterprise, Ken leads a team of safety and
health professionals that designs, implements and manages an
integrated safety management system. With more than 30 years of
safety-related experience and a diverse background in risk
management, loss prevention and environmental sustainability, he has
held leadership roles at several notable companies including The
Quaker Oats Company, Coca-Cola Refreshments and Terminix
International. Ken is affiliated with the American Society of Safety
Engineers, the American Industrial Hygiene Association, and the
National Safety Council, and serves on various boards and
committees supporting Environmental Health & Safety.
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What we will discuss
What it’s all
about…
How we
collect our
research
How we
analyze our
research
Setting the
environment
What
companies
are doing…
Recommendations
…
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PACE: How we collect our research
!
PRESSURES ACTIONS CAPABILITIES ENABLERS
External and internal
forces that impact an
organization’s market
position,
competitiveness, or
business operations.
The strategic
approaches that an
organization takes in
response to industry
pressures.
The business
competencies
(organization,
process, etc…)
required to execute
corporate strategy.
The key technology
solutions required to
support the
organization’s
business practices.
What are Best-in-Class
companies doing
differently?
What pitfalls are they
avoiding?
Why are they achieving
greater success?
What technologies and
services are enabling
them to succeed?
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ABERDEEN MATURITY CLASS FRAMEWORKDEFINING THE BEST-IN-CLASS
Selected Performance
Criteria (KPI)
Recordable Injury Frequency Rate
Overall Equipment Effectiveness
Un-Scheduled Asset Downtime
Respondents
- Top 20%
- Middle 50%
- Bottom 30%
Respondents are scored
individually across KPI
Best-in-Class
Industry
Average
Laggard
TCO to manage safety systems
BIC: How we analyze our research
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SAFETY MANAGEMENT PROCESS OVERVIEW
• Companies that automate safety processes have better safety
and operational performance…adding analytics makes them
even better
• The analytics aligns with companies having solid continuous
improvement capabilities
• All companies are concerned with compliance, but leading
companies tend to be focused on operational efficiency
• Change management and risk management capabilities tend to
be indicators of safety culture maturity
• The most mature companies tend to perform better, automate
safety processes, and use analytics as a continuous feedback
loop
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TOP PRESSURES DRIVING
MANUFACTURERS
35%
38%
42%
68%
0% 20% 40% 60% 80%
The need to ensure quality of finishedproducts and reduce lead times
The need to maximize productivity
The need to increase customersatisfaction
The need to reduce costs
Percentage of RespondentsAll Respondents
Source: Aberdeen Group, October 2014
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PRESSURES DRIVING FOCUS ON
SAFETY MANAGEMENT
16%
26%
44%
65%
0% 20% 40% 60% 80%
Corporate sustainability mandates
Reduce the risk of non-compliance (threatof brand damage if found to be non-
compliant)
Concern over the risk of an adverse event
Ensure compliance with EH&S regulations
Percentage of Respondents, n = 187All Respondents
Source: Aberdeen Group, October 2014
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BUT WHEN WE TAKE A CLOSER
LOOK…LEADING COMPANIES ALSO WORRY
MORE ABOUT OPERATIONAL EFFICIENCY
6%
9%
48%
67%
15%
8%
41%
62%
17%
21%
42%
54%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Improve manufacturing efficiency
Reduce manufacturing cost
Concern over the risk of an adverse event
Ensure compliance with EH&S regulations
Percentage of Respondents
Best-in-Class
Industry Average
Laggards
Source: Aberdeen Group, October 2014
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65%59%
50%50%
29% 30%
70%62%
57%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Established cross-functionalteams
Business processes arestandardized, auditable and
transparent across allfunctional groups
Standardized processestablished to share
compliance informationamong employees, suppliers,
customers and regulators
Perc
enta
ge o
f R
esp
on
den
ts
SMS No SMS SMS with Analytics
Business Capabilities: It’s about the
business process as much as the system
Source: Aberdeen Group, October 2014
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78% 75% 75% 71%
53% 49%44%
49%
90%
76%71%
86%
0%10%20%30%40%50%60%70%80%90%
100%
Established aproactive riskassessment to
mitigate adverseevents in operations
Standardizedpolicies establishedto prevent businessinterruption due toan adverse event
Adverse events aremonitored and
escalated in realtime to decision-
makers
Established short-term and long-termgoals for individual
plants / facilities
Perc
enta
ge o
f R
esp
on
den
ts
SMS No SMS SMS with Analytics
EH&S Capabilities: Some specific things
companies do in safety management
Source: Aberdeen Group, October 2014
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84%80% 81%
58%49%
55% 53%
30%
84% 84%76%
55%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Standardizedprocess to formallyrequest a change to
operations
Formal process toreview and approve
changes inoperations
Formal process tomanage and
communicatechanges inoperations
Closed loopprocesses for
change related tasks
Perc
enta
ge o
f R
esp
on
den
ts
SMS No SMS SMS with Analytics
CHANGE MANAGEMENT: A KEY COMPONENT FOR
LOOKING AT MATURITY OF ANY ORGANIZATION
Source: Aberdeen Group, October 2014
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RISK MANAGEMENT: AGAIN, A VIEW
INTO MATURITY
48%
48%
23%
27%
42%
45%
0% 20% 40% 60%
Risk Management processes are integratedin all key organizational processes
Risk Management is culturally driven
Percentage of Respondents
SMS No SMS SMS with Analytics
Source: Aberdeen Group, October 2014
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ENABLERS : SOME SPECIFIC
FUNCTIONS WHERE TECHNOLOGY
PLAYS A ROLE
68%62%
55%
44%
26%21% 19%
11%
70%65%
59%54%
0%
10%
20%
30%
40%
50%
60%
70%
80%
DocumentManagement
Reporting Tools Dashboards AdvancedAnalytics
Perc
enta
ge o
f R
esp
on
den
ts
SMS No SMS SMS with Analytics
Source: Aberdeen Group, October 2014
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WHY DO THEY USE ANALYTICS
41%
30% 29%
5%
39%34%
22%16%
50%46%
41%
13%
0%
10%
20%
30%
40%
50%
60%
Simplify complexdecision making
across operations
Transforming allkinds of data(content) into
knowledge and newvalue
Identify new trendsthrough behavioral
analysis
Reuse data alreadycollected
Perc
enta
ge o
f R
esp
on
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ts
SMS No SMS SMS with Analytics
Source: Aberdeen Group, October 2014
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RECOMMENDATIONS…
• Establish a solid continuous improvement program for
safety management
• Automate your JHA and incident management
processes and collect the data
• Use analytic techniques and tools to connect the JHA
data with the incident data. Makes this a continuous
improvement loop
• Use these steps to get to a safety culture that is
continuously improving like any other process in your
operations
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Please submit your questions using
the Q&A field on the top left of your screen.
Q&Awith Kevin, Ben, and Ken
THANKS FOR JOINING!
For more information on this and other
topics, please visit aberdeen.com