Benchmarking SurveyChoosing HSE Priorities in a Time of .ppt

1、GEMI March 2002 Benchmarking Survey Choosing HSE Priorities in a Time of Economic Difficulties,George Nagle Bristol-Myers Squibb Company March 14, 2002,1. Which of the following best describes the overall change to your companys employee population over the last 2 years?,2. If it has decreased, by h

2、ow much?,3. Which of the following best describes the overall change to your companys HSE staff over the last 2 years?,4. If it has decreased, by how much?,5. Compared with 2 years ago, has your current companywide HSE operating (non-capital) budget?,Overall average change in operating budget: -2% A

3、verage operating budget increase: 20% Range of responses: 5% - 70% Average operating budget decrease: 20% Range of responses: 5% - 50%,6. Compared with 2 years ago, has your current companywide HSE capital budget?,Overall average change in capital budget: -7% Average capital budget increase: 34% Ran

4、ge of responses: 5% - 100% Average capital budget decrease: 21% Range of responses: 10% - 50%,7. If there have been decreases in HSE staff, in which of the following areas have they occurred?,8. If downsizing has occurred, how has the HSE staff been impacted as opposed to other groups?,9. Have you d

5、iscontinued certain HSE activities over the past 2 years due to decreased resources?,10. If the answer to Q-9 was Yes, in which areas were activities decreased?,Participation in industry trade associations (10) Participation in professional associations (9) External Affairs (8) Regulator/Legislative

6、 Affairs (7) Internal Communications (5) External HSE Reporting (4),Safety (4) Environmental (4) Training (4) Medical (3) Industrial Hygiene (2) HSE-related Engineering (2) Analytical Testing (1) Process Safety (0),11. If the answer to Q-9 was Yes, in which areas were activities outsourced?,Medical

7、(4) Analytical Testing (4) Training (4) HSE-related Engineering (4) Environmental (3) Industrial Hygiene (3) Regulatory/Legislative Affairs (3),External HSE Reporting (3) Safety (2) External Affairs (1) Internal Communication (1) Participation in industry trade associations (0) Participation in prof

8、essional associations (0) Process Safety (0),12. Are there any areas in which activities has increased?,12. Areas in which activities has increased (continued),Environmental (2) Training (2) External/Internal Relations (2) Participation in Industry/ Professional Organizations (2) Environmental air i

9、ssues (2), environmental due diligence Ext. Environmental Reporting (2) Increased focus on Product Stewardship and Product Safety (2) ISO Certification/Verification Process Corporate Citizenship activities,Staff at facility and business group level has been increased to address program enhancements

10、Internal governance programs Supply chain environmental management OSHA Star Program Technical support to sites compliance efforts Title 5 and MACT requirements (US only) Regulatory Monitoring Stakeholder relations Six Sigma,13. How would you rate the breakdown of your HSE activities at this time?,A

11、verage % of current proactive HSE activities: 45% Range of responses: 5% - 90%,14. How would you rate the breakdown of your HSE activities 2 years ago?,Average % of proactive HSE activities 2 years ago: 44% Range of responses: 5% - 90%,15. Which of the following actions have you undertaken in respon

12、se to changes in resources?,Reorganized HSE functions (18) Changing auditing frequency (13) Delegated more responsibilities to line management (13) Implemented new HSE information management systems (12) Installed more management systems (9) Rewriting standards (7) Hired more consultants (7) Outsour

13、ced activities (6) Changing subject matters areas audited (5),15. Continued.,Others: Undertaken Worldwide EMS Review Instituted Corporate & OpCo Compliance Functions Priorities setting, managing Time management Reduce redundancy Better pair skills, synergies, staff development,16. In decision-making

14、 on changing priorities, which of the following have you utilized?,Multi-disciplinary team (18) Survey of customers (16) Benchmarking peer companies (16) HSE staff decision (14) Other: Review & assessment of internal needs,17. What issues are you expecting to take increasing amounts of your resource

15、s in the next year?,Public reporting/ transparency (16) Product stewardship (15) Air (12) Sustainability (11) Water (11) Corporate Citizenship or Social Responsibility (10) Safety (8),Pollution Prevention (7) Regulatory reporting (7) Complying with voluntary standards (4) Health (3) Stormwater (3) O

16、thers: Supply Chain EHS Management Investor Relations,18. What is your current HSE strategic planning time horizon?,19. Do you believe that a companys HSE performance can “coast” for a period of time after resources are cut until performance begins to noticeably deteriorate?,1-2 years (11) 9-18 mont

17、hs (2) Variable, but no more than 2-3 years Very dependent upon how advanced the current performance is Depends on condition of the EHS management system when cut took place,20. Based on your experience, what are the first signs or symptoms that a companys HSE program may be suffering from lack of r

18、esources?,Responses were grouped into the following categories: Compliance Issues (14) Internal Audit Performance (6) Increased Accident Rates (5) Poorer Employee Opinion Surveys (3) Lack of Progress on Company Goals (3),(Specific comments are listed on the following 3 pages.),20. Based on your expe

19、rience, what are the first signs or symptoms that a companys HSE program may be suffering from lack of resources?,Increase in accident rates and increase in compliance issues Compliance problems, increases in emissions, unhappy colleagues leaving the company Performance metrics on EH&S, employee opi

20、nion survey, customer survey decrease Poorer audit performance NOVs, bad audits Beyond compliance program accomplishments diminish Surprise issues appear, regulatory recordkeeping and compliance issues appear for routine type items. Regulatory deadlines are missed. Organization is constantly in a re

21、active mode. Ignoring issues until they blow up in your face.,20. Continued.,Increase in accident rates. Relative increase in Notices of Violations from government regulatory inspections. Decrease in employees perception of companys EHS performance in periodic employee opinion surveys. Increased inc

22、ident rates. Basic compliance performance start to suffer (e.g. recordkeeping) Program execution problems (training, recordkeeping, audit frequency slippage, etc.) Short term decrease in effort directed to proactive activities. More outside contracting/consulting of required activities and less outs

23、ide contracting/consulting on proactive activities. Noncompliance - fines Near miss and recordables increase,20. Continued.,Increased audit findings, more frequent permit exceedances. Poor results on company E compliance problems. Lack of timeliness, no progress on strategic plan.,21. Do you conside

24、r your company an HSE leader?,22. Do you feel that your company is currently adequately covering all HSE compliance issues?,23. What are your major concerns for the future related to HSE staffing and resources?,Lack of specialized HSE knowledge, loss of institutional knowledge, no depth on the “HSE

25、bench,” lack of career development opportunities in HSE We are less concerned than we were since senior management is clearly focusing on the whole area of Social Responsibility far more than ever before Development of colleagues across the organization to anticipate EHS opportunity as a regular par

26、t of their overall decision making. Integrating EHS into the regular mindset of all colleagues. Developing EHS professional to be the facilitators, expert advisors, and communications specialists. They are not necessarily prepared for these new roles. That we take a SMART approach to compliance and

27、continuous improvement and dont fall into the trap that simply “throwing more people” at the issues will fix them.,23. Continued.,Expectations of flat budget will continually pressure means to reduce costs including staff. We are trying to focus on transitioning the perspective of the group from a n

28、ecessary overhead to one of value added to businesses where they desire stronger support with more resources. You have to try. Potential continued reductions unless economics improve soon. Inadequate attention to detail will result in releases, fines/penalties, reorganization. Concerned that managem

29、ent may decide to outsource the function. Employee motivation and the resources will continue to decline while the EHS issues will increase in complexity. We have not seen the bottom. Need to continue to invest in EHS teams professional training and development. Delegation of EHS functions to line m

30、anagement is easier said than done, especially when line managements resources are also being reduced. Maintaining a proactive/leadership position.,23. Continued.,Competition for resources in a rapidly expanding organization. Changing regulations, changing regulatory enforcement emphasis. An aging d

31、emographic with no new hires. International technical support. Meeting the sustainable issues. Change in basic company structure. Inability to comply with exponentially increasing air requirements (especially MACT standards). We would like to eventually be considered an HSE leader and are now trying

32、 to “sell” and implement sustainability. Will we have the staff to do this? Unintended consequences. Having enough qualified professionals to meet challenges and inability due to many HR laws about replacing inadequate personnel. Transferring knowledge base to new, younger employees as the workforce

33、 transitions; having enough resources to deal with new regulations.,24. If you could anonymously deliver one message to the CEOs of the Fortune 500 on this topic, what would it be?,HSE protects the reputation of a company in many ways and a good reputation built over a long time can be lost in a ver

34、y short time. Investors will judge companies on how they manage their Social and Environmental performance in both good and bad times, but, you will be sanctioned more heavily over a longer period if you let up in these areas because of “temporary” economic difficulties. EHS must remain a key priori

35、ty of the business. Effective EH&S program management is not just a compliance requirement, but is a competitive advantage if managed correctly. Dont through the baby out with the bathwater. Strong EHS programs help achieve business objectives. Dont be short-sighted. Look to long-term sustainability

36、 and how HSE contributes to that.,24. Continued.,Evaluation and validation of resources is good for the organization, but make sure you clearly understand the difference between leadership, compliance, and inadequacy and the resource levels needed for each. Take the long view in terms of corporate r

37、eputation. Would you put a family member on a plane where the preventative maintenance and flight crew training just barely meet minimum government requirements? Wouldnt you want them on an airline with programs that were reasonable and necessary? Then why not strive for the same in the level of EHS

38、 performance within your own company? Dont sacrifice HSE for the short term. Make sustainability a priority: if you do it right, it will pay for itself. Ask questions within your organization concerning the HSE governance capabilities and look closely at the results. Cut HSE budgets as an extreme la

39、st resort. Be flexible and allow HSE professionals to adjust priorities with changing business challenges.,24. Continued.,Pay for people or pay fines! Todays improvement efforts will bring about next years rewards or punishments. Be a leader in Sustainable Development. If resources are cut to an ext

40、ent that our ability to perform our job effectively is seriously curtailed, the ultimate cost to the corporation in increased fines and loss of corporate image will be several times the money “saved.” E&S (if done correctly) is value added, not something that is required to be done and that detracts

41、 from the main business. It must be implemented and viewed as adding value to the companys core business. Do not allow a perception in y our senior managers that you are less committed to EHS while you expect improved efficiencies and productivity in the company. The assurance process should be emph

42、asized, top-line opportunity processes vigorously managed, staff developed, and maintain appropriate proactive programming that you not fail to meet your underlying core values or future business opportunities.,24. Continued.,The CEOs personal leadership is vital to maintaining good HSE performance.

43、 The public and non-governmental organizations (NGOs) are better educated and focused and are putting more pressure on companies. The competition is funded by the charitable trusts and they have an extensive amount of funding. We need resources to address these issues. HSE requirements do not change

44、 with the economy.,25. If you could anonymously deliver one message to HSE government regulators on this topic, what would it be?,Consider offering incentives for those companies that go beyond compliance EHS must remain a key priority of the business. EH&S can focus on the correct solutions without

45、 all the burdensome regulatory requirements if they would accept transparent performance reporting. Allow for more innovative approaches but expect good performance from companies. Allow more flexibility to meet targets/objectives. Focus government resources on the important stuff. Continue to use m

46、arket (emissions trading) to drive improvements. The lack of enforcement for the last 10 years encourages companies to take risks and under-fund the resources. Government requirements and enforcement assist in bringing visibility to the issues at hand.,25. Continued.,Eliminate the paperwork nightmar

47、e. Support research which demonstrates the business benefits of good EHS performance. Use more voluntary programs with incentives. Focus regulations on performance/outcome, not nitty-gritty how-to details. Understand the real costs of regulation and make sure these requirements result in improvement

48、s to human health. Consider long term effect to business, economy, and environment when evaluating regulatory modifications. Everyone must win for anyone to win. Regulations need to support all legs of Sustainable Development. The same message that should be delivered at any time: Concentrate on reg

49、ulations that have an impact on the environment - dont burden us with excessive recordkeeping and reporting that do nothing except increase our costs.,25. Continued.,Regulators must have enough resources to review and act upon permit applications and remediations proposals. Re: otherwise business ac

50、tivities are unnecessarily slowed down. Add real incentives to encourage improvements versus following shallow comments by NGOs. Also, regulatory agencies are employing many non-qualified individuals that should not be in the job. Believe they would do better if they outsourced entire function to pr

51、ivate industry with certain checks and balances in place. Take a long vacation - you deserve it. We need to make our processes work to deliver sound public policy by balancing the environmental, energy, and economic policies. This would help us focus on risk and good science. Focus on regulations that have a real impact on HSE improvement.,