Defining World Class Safety

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Defining World Class Safety

• Thomas F. Cecich, CSP, CIH
• President
• TFC Associates
• Achieving World-Class Safety Symposium
• American Society of Safety Engineers
• March 25, 2004

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Presentation Outline

• Basis for World Class Safety discussion
• What is World Class (Safety)?
• The Journey to World Class Safety
• How to know when you have arrived?
• The costs and the benefits of WC Safety
• What you do next? - Conclusions

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Basis for World Class Safety Discussion

• ASSE World Class Roundtable at 2003 Denver PDC
• Organizational Resource Counselors (ORC) Feb 2003
  Forum
• TFC Work Experiences
• Literature and Web Reviews

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Presentation Outline

• Basis for World Class Safety discussion
• What is World Class (Safety)?
• The Journey to World Class Safety
• How to know when you have arrived?
• The costs and the benefits of WC Safety
• What you do next? - Conclusions

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What is World Class?
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Senior Company Business Executive

• World Class is like beauty it is in the eye of
  the beholder.

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Senior Company Business Executive

• World Class is like beauty it is in the eye of
  the beholder.
• Most companies and organizations are more
  interested in being Best In Class which gives a
  clearer view of value in terms of competitive
  advantage.

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The Desire for World Class is Not Unique to Safety

• Google Search on World Class
• 1/23/04 4,480,000 hits
• 3/22/04 4,120,000 hits
• Top 10 Web sites
• World Class Web Hosting
• www.world-class.com Russian Women Looking for
  Love
• World Class Great Pumpkins
• World Class Coaching
• World Class Race Walking

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The Desire for World Class is Not Unique to Safety

• Top 10 Web Sites (Continued)
• www.worldclass.ru
• World Class Models
• World Class Soaring
• World Class Catamaran
• World Class Rock Listeners
• My favorites
• World Class Beer
• World Class Fireworks
• World Class Paintballs

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• It seems everyone wants to be associated with a
  world class organization but,
• Is World Class becoming an overused, and as a
  result, devalued statement?

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Example World Class Manufacturing

• Site Mission Statement
• ABC site continues to strive for its vision of
  redefining world class performance by executing
  the companys mission and exceeding our KPI
  targets. We have reached high levels of
  performance with respect to customer service,
  quality, and safety. Our biggest challenge in the
  coming years is to continue to lower our cost of
  goods sold (COGS) from the site in an atmosphere
  of diminishing volumes and increased fixed costs.

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Components of World Class(Manufacturing Site
Example)

• Vision to be World Class
• Driven to be the best you can be
• Achievement of Results
• Establishment of Targets and Accountability
• Consistent Processes/Process Driven
• Senior Management Leadership
• Aligned to Broad Business Goals
• Commitment to core values customers, quality and
  safety
• Sustainable ability to adapt to change

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World Class Manufacturing Example

• If the site achieves all these goals how should
  they describe their achievement?
• World Class
• Best in Class
• Manufacturing Excellence
• Remember Beauty is in the eye of the beholder!!

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• What is World Class Safety?
• and how (and if) it differs from other world
  class initiatives

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World Class Safety Organizations

• World Class Safety Organizations do the
  following
• Vision to be World Class
• Driven to be the best they can be
• Achieve Results
• Establish Targets and Accountability
• Utilize consistent processes/are process driven
• Have Senior Management Leadership
• Align to Broad Business Goals
• Demonstrate commitment to core values customers,
  quality and safety
• Are Sustainable ability to adapt to change

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World Class Safety Aspects

• Innovative Performance Metrics and Measurement
• Adoption of Best Practices
• Safety Performance Excellence
• Transforming the Safety Culture
• Safety Return on Investment
• Safety Leadership
• Organizational Commitment
• Benchmarking
• External Verification

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Presentation Outline

• Basis for World Class Safety discussion
• What is World Class (Safety)?
• The Journey to World Class Safety
• How to know when you have arrived?
• The costs and the benefits of WC Safety
• What you do next? - Conclusions

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• Broad Question Can every organization achieve
  world class in safety?
• Better Question Is excellence in safety the
  same as being world class in safety?

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The Journey To World Class SafetyReference Tom
Harvey, Taking the Safety Improvement Journey,
Occupational Hazards, November 2002

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The Journey To World Class SafetyReference Tom
Harvey, Taking the Safety Improvement Journey,
Occupational Hazards, November 2002

• Marginal Compliance

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The Journey To World Class SafetyReference Tom
Harvey, Taking the Safety Improvement Journey,
Occupational Hazards, November 2002

• Compliance
• Marginal Compliance

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The Journey To World Class SafetyReference Tom
Harvey, Taking the Safety Improvement Journey,
Occupational Hazards, November 2002

• Exceeding Compliance
• Compliance
• Marginal Compliance

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The Journey To World Class SafetyReference Tom
Harvey, Taking the Safety Improvement Journey,
Occupational Hazards, November 2002

• Safety Excellence
• Exceeding Compliance
• Compliance
• Marginal Compliance

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The Journey To World Class SafetyReference Tom
Harvey, Taking the Safety Improvement Journey,
Occupational Hazards, November 2002

• World Class
• Safety Excellence
• Exceeding Compliance
• Compliance
• Marginal Compliance

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• Broad Question Can every organization achieve
  world class in safety?
• Better Question Is excellence in safety the
  same as being world class in safety?
• Answer Every organization can and should
  continually strive for safety excellence (whether
  or not they ever achieve world class status)

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The Journey to World Class SafetyDrivers That
Start the Journey

• CEO Initiated
• Board of Directors Initiated
• Senior Executive Initiated
• Assumes role of champion
• Shareholder Initiated
• Safety and Health Initiated
• Employee Initiated

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Presentation Outline

• Basis for World Class Safety discussion
• What is World Class (Safety)?
• The Journey to World Class Safety
• How to know if and when you have arrived at World
  Class?
• The costs and the benefits of WC Safety
• What you do next? - Conclusions

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How to Know if World Class Safety is Achieved

• Injuries, illness and losses are eliminated
  (reallyminimized)
• Safety becomes a competitive advantage
• Consistent global safety processes
• Safety processes can be externally verified
• External benchmarking confirms your leadership
• Other organizations seek you out
• NGOs rank your accomplishments
• Socially responsible investment fund acquire your
  stock
• Your achievements are sustainable across multiple
  business cycles.

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Presentation Outline

• Basis for World Class Safety discussion
• What is World Class (Safety)?
• The Journey to World Class Safety
• How to know when you have arrived?
• The costs and the benefits of WC Safety
• What you do next? - Conclusions

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The Benefits and Costs of World Class Safety

• Benefits
• Use to your competitive advantage
• Control costs
• Market safety capabilities
• Employee Recognition
• Shareholder/Owner Value
• Socially responsible investment funds
• Business Continuity/Risk Minimization

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The Benefits and Costs of World Class Safety

• Costs
• Leadership Time Investment
• Organizational Energy
• Initial Financial Investment

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Presentation Outline

• Basis for World Class Safety discussion
• What is World Class (Safety)?
• The Journey to World Class Safety
• How to know when you have arrived?
• The costs and the benefits of WC Safety
• What you do next? - Conclusions

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So What to Do About Achieving World Class Safety

• TFC Conclusions
• Dont become obsessed with becoming world class
• Do Strive for Safety Excellence and be the best
  in your industry class and the best you can be
• Develop, implement and continuously improve
  safety processes
• Keep focusing on better ways to achieve injury,
  illness and loss reductions
• Show some humility no matter how good you think
  you are you can always learn from others.

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Final Thought

• Whether your final destination is Safety
  Excellence, Best in Class, or World Class there
  will always be some bumps on the way.
• Remember the lessons taught by the book In Search
  of Excellence by Tom Peters and Robert Waterman

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In Search of Excellence

• In 1982 Peters and Waterman profiled 43 of the
  best run companies in the US and provided 8 basic
  principles of management to explain their success
• In the following 20 years
• Some continued to excel
• Some have suffered through periods of mediocrity
• Some have ceased to exist

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Peters Updated Conclusions

• The only thing permanent is change and it has
  been rapid and unforgiving
• Excellent companies focus consciously and
  consistently on rigorous practices. Failure to
  focus has led to setbacks.
• An outstanding athlete cannot be expected to win
  gold at all the Olympics in their lifetime.
  Athletes age and so do companies.

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Concluding Thought

• The only thing constant is change. It will
  happen so you may as well embrace it
• Drive your organization toward safety excellence
  and enjoy the satisfaction of aspiring toward and
  achieving a worthy goal. Enjoy the view along the
  way
• Good luck with your journey! Hopefully World
  Class is at the end.
• ?

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Contact Information

• Tom Cecich
• TFC Associates
• 919-303-6802
• tom_at_tfc-assoc.com