“Institutionalizing” Safety Risk M t A lManagement across Anglo

John LandmarkAusIMM, Brisbane

October 2009

Discussion points

1. Context - a single approach to Safety Risk Management.

2. How are we rolling out the SRMP across Anglo?

3. What is it? A brief introduction and basic vocabulary.

4. Anglo Journey Model - concepts for safety maturity continuums. g y p y y

5. Lessons learned from rolling out a global programme.

1. Context: The need for transformation

Lost-time injury and Fatal injury frequency ratesLTIFR FIFR

2.00

2.50

0.08

0.10

1.50 0.06

0 50

1.00

0 02

0.04

0.00

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00 01 02 03 04 05 06 H1

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0.02

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2001

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2004

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2. Safety Risk Management Programme t t

To establish and embed a world class ‘One Anglo’ safety

structurePURPOSE

To establish and embed a world class One Anglo safety risk management process that delivers radical improvement

in safety for all our people

All our people make the right decisions affecting safetyVISION

All our people make the right decisions affecting safety.

Design & C Strategy & Capacity VerificationDesign &Development

Jim Joy

Comms & Buy In

Linda

Strategy & Planning

Moses

Capacity Building

Michelle

Verification

Phil Tannery Linda MacLeod

BrownMonnapula Cilliers

5

University Partnership: A Global Presence7 active university partners in 5 countries

Camborne School of

Laurentian University

Mines

Beijing University

University of British

ColumbiaUniversity of

Utah

Catholic University of the North

University of São Paulo

Wits University

University of Pretoria University of Queensland

University of Cape Town

Current Partner

Prospective future partner

A4 - ExecutivesA3 - ManagersA2 - SupervisorsA1 All l

6

A1- All employees

SRMP Education - Geographical Focus

4%1%1%

7%

South Africa

Europe

South America

Australia

Rest of Africa

Rest of world

North America

87%

7

A4 Attendance

A4 Attendance 2007 - June 2009

500

550

600

350

400

450Planned

200

250

300

Num

bers

Actual

100

150

200

0

50

Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09

Month

A3 Attendance

A3 Course attendance - June 09 (YTD)

3500

4000

2500

3000

ces

Planned

1500

2000

Atte

ndan

c

500

1000

Actual

0Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09

Month

Line AccountabilityConcepts & Communication3

Hazard

Energies

Risk

Risk Analysis and Assessment

Controls/Barriers

Risk Management

Leadership & CommitmentIntegrated Risk Management Journey Appreciation

p

10

Concepts and Terminology

• Risks and Decisions : Strategic, Tactical & Operational

P i R i D i i• Proactive vs Reactive Decisions• Energies : Way to look for hazards

• Hazard : Potential for harm

• Unwanted Event/Incident : Specific description

• Risk : Measure of Likelihood and Consequence

• Controls/Barriers/Defences : Attempts to reduce riskControls/Barriers/Defences : Attempts to reduce risk

• Risk Management : The total process

• Risk Assessment tools : HAZOP SWIFT WRAC JSA etc• Risk Assessment tools : HAZOP, SWIFT, WRAC, JSA etc.

• Risk Analysis techniques : 5 by 5 matrices and others

11

Minerals Industry Risk Management Process•(modified version of AS4360:2004)

Risk Assessment

12

‘Layered’ Risk Assessment (RA)

RISK ASSESSMENT TOOLS

WRAC, FTA, BTA etcBTA, etc.

FMEA, HAZOP, FTA, BTA, etc.

WRAC, JSAWRAC, JSA

Take 5, SLAM, T k TiTake Time

Take Charge

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‘Layered’ Risk Assessment (RA)

MOSTLYDESIGN &

ENGINEERING

MOSTLYBEHAVIOURAL

14

4. Anglo’s Journey Model

• Describes the different phases that businesses must go through to achieve world class safety performance and become a safety leaderand become a safety leader

• Helps managers assess safety maturity

• Education provides tools & techniques to define operational action plans tooperational action plans to progress on the journey

• Four layer approach to risk for different levels of decision-making

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“Hudson Model”GENERATIVE

HSE is how we do businessround here

PROACTIVEW k bl th t

round here

We work on problems that we still find

CALCULATIVEWe have systems in place to

manage all hazards

REACTIVESafety is important, we do a lot

ti h id t

PATHOLOGICAL

every time we have an accident

Who cares as long aswe don’t get caught

Anglo Safety Risk Management Journey Guidance

P1 Personal Risk Attitude

PEOPLE SYSTEMSP1. Personal Risk AttitudeP2. Caring & RecognitionP3. Management Leadership

and CommitmentP4. Safety Accountability

S1. Risk Management AdoptionS2. Strategic Planning

S3. Project & Process Design ManagementS4. Major Hazard/Priority Risk

Identification and ManagementP5. Employee Involvement

and ConsultationP6. Coaching and Mentoring

gS5. Change Management

S6. Job and Task PlanningS7. Hazard Identification and Reporting

S8. Training and CompetencyS9 CommunicationsS9. Communications

S10.Knowledge ManagementS11.MaintenanceS12.Procurement

S13.Contractor ManagementS14 I id t I ti ti d A l iS14 .Incident Investigation and Analysis

S15. Emergency ResponseS16. Safety Performance Measurement

S17. Auditing and Monitoring

THE ROAD TO ‘ZERO HARM’ CREATING A CARING CULTURE IN ANGLOTHE ROAD TO ‘ZERO HARM’ CREATING A CARING CULTURE IN ANGLOTHE ROAD TO ‘ZERO HARM’ - CREATING A CARING CULTURE IN ANGLO THE ROAD TO ‘ZERO HARM’ - CREATING A CARING CULTURE IN ANGLO

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The Anglo SRMP – Self Assessment Tool

Little formal interest, exposed, regressive,

Responsive, awareness

Preventative, compliance, understanding

Competent Generative, creative, excellence

vulnerable, starters,

P1. Personal Risk The safety risks in the Risks and the need to The person will follow The person doesn’t The person will not carry Attitude“caring for myself”

ymining industry are accepted as a necessary consequence and the person has a fatalistic outlook. This is often expressed as “mining is

control them are recognised, but the person doesn’t perceive themselves to be exposed. They tend to state “It won’t happen to

pspecified procedures except when production is at stake. There is an acceptance of shortcuts, as long as nothing happens “I follow the

pwilfully put themselves in danger, and follows procedure at all times. Shortcuts are not seen as an option. “I follow the procedures because I

p yout a task if unsafe, even if procedure allows it. Safety is a value; it is no longer seen as a competing priority. All people express this as expressed as mining is

tough, people get killed”.state It won t happen to me”.

happens. I follow the procedures and rules when I know someone is watching me”.

procedures because I want to”.

people express this as “This is just the way I do things”.

* - ‘employees’ refers to Anglo American and contractor personnel

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The Anglo SRMP – Self Assessment Tool

Little formal interest, exposed, regressive,

Responsive, awareness

Preventative, compliance, understanding

Competent Generative, creative, excellence

vulnerable, starters,

P1. Personal Risk The safety risks in the Risks and the need to The person will follow The person doesn’t The person will not carry INCREASINGAttitude

“caring for myself”

ymining industry are accepted as a necessary consequence and the person has a fatalistic outlook. This is often expressed as “mining is

control them are recognised, but the person doesn’t perceive themselves to be exposed. They tend to state “It won’t happen to

pspecified procedures except when production is at stake. There is an acceptance of shortcuts, as long as nothing happens “I follow the

pwilfully put themselves in danger, and follows procedure at all times. Shortcuts are not seen as an option. “I follow the procedures because I

p yout a task if unsafe, even if procedure allows it. Safety is a value; it is no longer seen as a competing priority. All people express this as

PEO

• Care and respect

INCREASING

expressed as mining is tough, people get killed”.

state It won t happen to me”.

happens. I follow the procedures and rules when I know someone is watching me”.

procedures because I want to”.

people express this as “This is just the way I do things”.

OPL

p• Involvement• Communication• Openness

* - “employees” ������ �� A���� A������� ��� ���������� ���������

LE

• Development• Empowerment

20

The Anglo SRMP – Self Assessment Tool

Little formal interest, exposed, regressive,

Responsive, awareness

Preventative, compliance, understanding

Competent Generative, creative, excellence

vulnerable, starters,

P1. Personal Risk The safety risks in the Risks and the need to The person will follow The person doesn’t The person will not carry S INCREASINGAttitude“caring for myself”

ymining industry are accepted as a necessary consequence and the person has a fatalistic outlook. This is often expressed as “mining is

control them are recognised, but the person doesn’t perceive themselves to be exposed. They tend to state “It won’t happen to

pspecified procedures except when production is at stake. There is an acceptance of shortcuts, as long as nothing happens “I follow the

pwilfully put themselves in danger, and follows procedure at all times. Shortcuts are not seen as an option. “I follow the procedures because I

p yout a task if unsafe, even if procedure allows it. Safety is a value; it is no longer seen as a competing priority. All people express this as

SYS • Safety system definition

INCREASING

expressed as mining is tough, people get killed”.

state It won t happen to me”.

happens. I follow the procedures and rules when I know someone is watching me”.

procedures because I want to”.

people express this as “This is just the way I do things”.

STE

• Integration of risk assessment• Line management ownership• Focusing of RA, AI and auditing

* - “employees” ������ �� A���� A������� ��� ���������� ���������

MS

g g

21

The Road to ‘Zero Harm’

SELF

HE

RS

RIN

G F

OR

MYS

RIN

G F

OR

OTH

CAR CAR

THE ROAD TO ‘ZERO HARM’ - CREATING A CARING CULTURE IN ANGLOTHE ROAD TO ‘ZERO HARM’ - CREATING A CARING CULTURE IN ANGLO

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5. Learning points for similar complex, cross cutting initiativesinitiatives• Leadership – inclusive, adaptive, opportunistic, passionate; avoid

top‐down or ‘decree‐like’ approaches; encourage co‐design, co‐planning d i l t tiand co‐implementation.

• Teams - invest time in ‘forming, storming and norming’; develop a clear exit strategy to disband once project is fully embedded.

• Project Planning -spend quality time on the upfront scoping of projects; articulate the desired outcomes; don’t re‐invent the wheel each time; pilot new processes before roll out.

• Governance – form group of senior executives and opinion makers from across Anglo as a sounding board to reaffirm the project team’s approach and progress and to clear the path ahead of the team to ensure progress; f l d t b th Chi f E ti k ti t dformal endorsement by the Chief Executive serves as a key motivator and enabler!

• Sustainability - ensure absolute clarity of roles between service providers d A l d th t d d k land Anglo; reduce the strong dependency on key people.

• Dealing with diversity - recognise the challenge of simultaneously developing common approaches and catering for diversity across Anglo.

Summary - Anglo Safety Risk Management ProgrammeProgramme

PURPOSE

To establish and embed a world class ‘One Anglo’ safety i k t th t d li di l i trisk management process that delivers radical improvement

in safety for all our people.

VISION

All our people make the right decisions affecting safety.

24

Rates improved in 2008 and 2009

Lost-time injury and Fatal injury frequency ratesLTIFR FIFR

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2.50LTIFR

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1.50

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0.06

0.08

0 00

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1.00

0 00

0.02

0.04

0.00

200020012002200320042005200620072008

0.00

20 20 20 20 20 20 20 20 20

LTIFR FIFR

External interest, recognition and adoption

More information?More information?

Michelle Cilliers mcilliers@angloamerican.co.za

Mob +27 (83) 272 4592