zero injury culture: more than a mantra 2013 asse heart of america regional pdc keynote calvin (cal)...
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Zero Injury Culture: More Than a Mantra2013 ASSE Heart of America Regional PDC Keynote
Calvin (Cal) BeyerApril 19, 2013
Hindsight is a wonderful thing but
foresight is better, especially when it
comes to saving life, or some pain!
-- William Blake
Productivity
Quality
Risk
Safety
Integrated Risk Management Model: PQRS Levers for Profitability
Injury Prevention
Claim Management
Cost Containment• PPO enrollment • Utilization
review• Modified duty
Return to Work
Integrating Safety &Claim Management
Business Case & Sustainable Advantage
Workers Compensation: A Call to Action
Safety Culture Building Blocks & Zero Injury Culture Lifecycle Development
Risk Performance Metrics
Discussion Topics
Foundational Questions
• Is Workers’ Compensation a source of competitive advantage for your company?
• How does your company measure safety performance?
• Does your company consider safety as the absence of injuries or the reduction of risk?
• How do you know if safety is ingrained in the hearts and minds of your employees and embedded in the culture of your company?
A (Wake-Up) Call to Action
• Downward trend in WC payroll due to recession is reversing• Hiring uptick and increased frequency of new hire injuries• Musculoskeletal disorders comprise ~ 1/3 of occupational injuries• Aging workforce claims increasing• Workers Compensation is distressed and carriers increasing rates • NCCI WC experience modification formula change• Medical cost inflation and other indirect cost multipliers increasing• NCIB reports of escalating WC claimant fraud (37% increase in
2012)
Crisis = Challenges or Opportunities?
$ 10000$ 10000Largest Premium 1
$ 30000$ 30000Loss Leader2
$ 50000$ 50000Frequency of Severity3
Workers’ Compensation: Lead Line of Insurance
Up to 45-50% of insurance buy
Sprains/strains can be >50% of claim costs with highest development costs
Most frequency & severity of claims
Workers’ Compensation: Competitive (Dis-)Advantage?
Game on! There are Winners and Losers in Workers’ Compensation
1.18 M cases with lost workdays
Rate = 117/10k full-time workers
~ 3 M occupational injuries & illnesses
Rate = 3.5/100 full-time workers
4,609 in 2011
Rate = 3.5/100k full-time workersFatalities
Injuries/Illnesses
Lost Work Days
2011 Occupational Injury Statistics
Source: www.bls.gov/news.release/cfoi.nr0.htm
17
14
13
10
Transportation & Transportation & Warehousing Warehousing
ConstructionConstruction
UtilitiesUtilities
ManufacturingManufacturing
Median # of Lost Work Days By Industry(Overall median = 8)
Source: http://www.bls.gov/news.release/osh2.t01.htm
28
27
25
10
Carpal Tunnel (tendonitis = 14)Carpal Tunnel (tendonitis = 14)
FracturesFractures
AmputationsAmputations
Sprains/Strains/TearsSprains/Strains/Tears
Median # of Lost Work Days By Injury(Overall median = 8)
Source: http://www.bls.gov/news.release/osh2.t05.htm
Falls
Caught Between
Electrocution
Struck By
OSHA’s Big 4 Construction Hazards
Focus attention on Hazard Recognition & Employee Orientation/Training
Manufacturing Workers’ Compensation Claims
Top 5 claims types= 84% of frequency and 88% of severity (major insurance carrier report)
1. Sprains/strains (35% of claims; 45% of costs)2. Caught between3. Struck by/against4. Lacerations5. Foreign object in eye
Institute Behavioral Safety Observations
Stop Relying Solely on Traditional Measures
Examples of traditional measures• Incident rates• Severity rates (DART)• WC Experience Modification Ratings• Average claim costs• OSHA inspections, citations and fines
Limitations of Traditional Measures
Breakthrough Solutions Require New Approach & Measures
• “More of the same” does not yield a different result
• Typically yield incremental improvements
• Do not drive or reinforce cultural development
The Risk of Driving Forward While
Looking in the Rear-view Mirror
Copyright © 2012 Rockwell Automation, Inc. Used with permission.
18
Hierarchy of Measurement
Information with or without
context
Data
Statistics highlighting
past performance
Measures
Perspectives of past and
current results to forecast
future performance
Metrics/KPIs
Insights driving
business decisions and performance
Analytics
Key Challenge for Safety Profession: Leverage Analytics into Insights
Copyright © 2012 Rockwell Automation, Inc. Used with permission.
Lagging vs. Leading Indicators
Lagging Indicators“Downstream” measures or trailing indicatorsFeedback on data collected and analyzed “after-the-fact”
Passive metrics of prior results
Don’t provide insight into the prevention-based activities that influenced these results
Leading Indicators
“Upstream” measures
Prospective and “before-the-fact”Designed to influence real-time outcomes & current activitiesFocused on behaviors and outcomes
Provide almost immediate feedback on present activities
Copyright © 2012 Rockwell Automation, Inc. Used with permission.
Risk Performance Metrics Safety Example
Lagging (past results)
Current(present
snapshot)
Leading (prevention activities)
• Workers’ Comp Experience Modification Rating
• OSHA recordable incident rate (TRIR) or Days Away from Work Restricted or Transferred (DART)
• Total lost workdays• Average cost per
claim
• % participation in pre-shift “stretch-n-flex”
• Daily record of inspections
• End-of-shift record of injuries or incidents
• Daily job safety observations
• % of machinery in compliance with standards
• # of pre-placement assessments completed
• # of safety orientations conducted
• % of safety inspections completed
• # of safety briefings held
Copyright © 2012 Rockwell Automation, Inc. Used with permission.
What is Culture?
• Complex system of shared beliefs, values and behaviors
• Set of prevailing and enduring characteristics:– Woven into the organizational fabric– Organizational DNA that is transmitted to new employees
Every company and work group has a prevailing culture and may have one or more subcultures
Culture = Workplace Norms
• Defines the norms of the “workplace”• Norms = accepted precursors and performance– Spirit and attitude– Rules of conduct– Motivating factors – Determinants of success vs. failure
Requires conscious and deliberate effort to change culture
Overview of Corporate Safety Culture
• Elements of safety culture
Copyright © 2012 Rockwell Automation, Inc. Used with permission.
Beliefs Values
Assumptions Norms
Attitudes
Safety Performance Gap
The difference between what is expected
vs. what is accepted by the company’s
leadership, supervisors & employees
Accountability
Responsibility
Reinforcement
Recognition & Rewards
Buy-In
Awareness
Education
Compliance
Enforcement
Commitment
Investment
Continual Learning
Process Improvement
Safety Culture: The ABC’s
Expanding the Vision and Reach
Incident & Injury-Free® CEO Forum
Incepted 2010-11
Partnering with insurance industry
Incident & Injury-Free (IIF®)
JMJ Associates
Circa 2003
Celebrating 25th year in 2013
Making Zero Injuries a Reality
Construction Industry Institute
2003
9 high impact techniques
Zero Injury Techniques
Construction Industry Institute
1993
Listed 170 techniquesZero Zero
Injury Injury CultureCulture
History of Zero Injury Culture
Notes: 1. Construction Industry Institute (CII) at the University of Texas (Austin) 2. JMJ Associates (JMJ.com) serves mining, energy and construction industries is celebrating 25th anniversary in 2013 3. As of March 2013 there are 17 construction companies participating in IIF® CEO Forum.
9 High Impact Zero Injury Techniques
1. Demonstrated management commitment
2. Staffing for safety3. Planning (pre-project
& pre-task)4. Safety education
(Orientation & specialized training)
5. Worker involvement6. Evaluation and
recognition/reward7. Subcontractor
management8. Accident/incident
investigations9. Drug/alcohol testing
Focus on Injury Prevention
• Establish top-down management accountability culture• Employ hiring standards and practices• Institute new employee orientation • Embrace engineering controls and factory automation• Foster proactive safety supervision• Institute behavior-based safety process
– Recognize safe work practices– Correct “at-risk” attitudes and behaviors
Expect and Only Accept Safe Work Attitudes, Behaviors & Conditions
OSHA
Recordkeeping
Behavioral Safety
Loss Analyses
Safety Committee
Injury Prevention Enablers
Management
Accountability
System
Critical Incident
Response
Workplace Stretching Program
Wellness Program
Injury Prevention Force Multipliers
Challenging Status Quo
Overcoming Resistance to Change
Renewing Focus
Convincing Stakeholders
Raising Up Leaders (“Torch Bearers”)
Zero Injury Safety Culture Life Cycle Process
Zero Injury Safety Culture Development Life Cycle
Source: Building Profits (Jan/Feb 2013; Construction Financial Management Association. Used with permission.
Life Cycle Elements
Assess Current Situation1
Safety Culture Health Check2
Present Business Case3
Execute Plan & Monitor Results4
Summary Action Steps
Instituting Zero Injury Culture
Obstacles to Overcome
• Creative, innovative problem solving abilities fosters shortcuts• Rationalization of inherent hazards• Changing field jobsite conditions• Resistance to change (status quo)• Production/schedule pressures• Traditional work methods: “Old guard” mentality • Organizational silos• Industry norms
Employ change management techniques to institute cultural change
Change Management Cycle
Attitudes
Time
Unaware
AwareConcerned
Involved
Ownership
ChangeChange
Reducing Cycle Time of Change
• Seek assistance and resources from insurance partners• Identify desired end-state (vision & expectations)• Benchmark “best of class” companies• Solicit supervisory & employee participation in setting and
measuring performance objectives• Conduct baseline safety culture assessment• Consider outside facilitator/consultant to help as change
agent and process master
• Celebrate successes!
Business Case for Change
• Align safety focus with productivity and profitability results• Dual focus: loss minimization and profit maximization • Shift to leading indicators to focus on prevention-based activities • Add indirect cost multiplier to calculate total cost of accidents • Apportion premium and charge-back loss costs to operating units
(departments/divisions)• Fund for preventive and corrective actions from corporate budget
(costly to have accidents, not to prevent them)• Promote and incent through bonus managers & supervisors based
upon both safety & production performance
Creating Sustainable Advantage
• Becoming or remaining an employer of choice • Experiencing less voluntary employee attrition• Retaining existing customer base• Attracting new customers• Expanding market share • Enhancing the ability to forge strategic partnerships and alliances• Differentiating from competitors
Make Safety Your Brand!
Risk Leadership
“The ability to learn faster than
your competitors may be the only
true competitive advantage.”
-- Arie DeGeus
Cal BeyerMurray Securus
39 N. Duke StreetLancaster, PA 17608
Phone: 717.397.9600www.murrayins.com
www.linkedin.com/in/calvinbeyer/
@Riskleadership and @ContractorRisk
Contact Information