Process Safety Management Marketing Plan Updated: August 17, 2011.

Process Safety Management Marketing Plan

Updated: August 17, 2011

Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.

2

PSM Marketing Plan Overview

1. Recap of PSM Strategy Statement (and Key Messages)

2. Situation Analysis (Market Drivers and Competitive Dynamics)

3. Offering Description and Positioning

4. Customer Segment Overview and Strategies Review

5. Key Issues

6. Marketing Objectives and Tactics


3






5. Key Issues



4

Safety Resources Strategic Sweet Spot

Behavior-based

management & system

consulting

Operations Risk Consulting

(PSM)

Compliance, Audit

Providers,Basic skill-based tools

Unique DuPont position:

• Solutions combine PSM expertise with behavior-based, “culture-oriented” approaches and basic skill development

• Further differentiated by our real-world, “owner-operator” experience


5

Safety Resources Strategy SummaryTo grow our safety business by 2016 (to $250mm), by offering service solutions to business clients to create outstanding value in reducing risk and saving lives and livelihoods. We will achieve this by aligning with emerging market and industry needs, leveraging the power of the DuPont brand in safety, building upon our owner-operator experience and through leading edge safety research.

How to CompeteWhere to Compete

Capabilities To WinGoals and Aspirations

Grow from $138mm in

2010 to $250mm in

2016

Thought and Innovation leader

DuPont Safety Brand

Fully Integrated L&D support program

Thought Leadership at leading edge of safety development

Leader in integrated PSM Management

World class methodologies

Develop value propositions for specific market segments:- Mature high performers

- Growing mid market players in emerging markets

Develop “sustain” phase offering

Develop offerings to support changing workforce

Develop validated field assessment techniques

Merge training production capability into strategic workforce capability development program

Develop in-house capability inTalent acquisition

Learning & Development of client-facing teams Workforce collaboration through knowledge management

Acquire deeper knowledge and content skills sets in PSM disciplines

Develop change management capabilities and model

Integrate modern instructional design into consulting methods: coaching & facilitation

Acquire project management and contractor management experience and skills

Employee, Process, and Contractor

Safety

Accelerate Growth in Emerging Regions

Energy, Construction, Mass Trans,

Metal / Chemical Processing


6

PSM Strategy

Strategy Statement:

To more than double the size of the PSM/ORM practice by 2014 (to $75mm), by offering service solutions to business clients to assist them in managing their operational risk to prevent process related injuries and incidents.

We will achieve this by leveraging the power of the DuPont brand in safety, building upon our owner-operator experience in implementing PSM and applying our proven management system and set of tools, technologies, training, and practices.


7

PSM will drive 70% of DSR growth between 2011 and 2016

17

67

13

153

170

237250 250

2011 Employee Safety Process Safety Contractor Safety 2016

DSR 2011-2016 Revenue Objective ($MM)

16%25%3%’11-’16 CAGR


8






5. Key Issues



9

High-risk process industries will continue to drive PSM growth

Oil and Gas, Chemicals

• Support existing customers (RIL, Suncor, PRSI, CCRL, CNPC, Husky, GALP, Pemex, etc.)

• Increase emphasis on Upstream O&G

• Focus on national oil companies, growth companies with proven reserves, and JV’s

• Serve market created by US OSHA’s Chemicals National Emphasis Program

Non-traditional, high risk process industries

• Mining and Metals Processing

• Power Generation

Regions with plentiful resources and where there is new process industry investment

• In A/P: India, China, Indonesia, Malaysia and Vietnam

• In EMEA: Central Europe (Caspian Basin, Poland, etc.), Russia and CIS, Middle East (Abu-Dhabi, Kuwait, Saudi Arabia and Qatar), Pakistan and Sub-Saharan Africa

• In LA: Mexico and Brazil

• In USC: Canada

Trends

• Increasing corporate focus on risk mitigation

• Continued tightening of regulations/enforcement eg. OSHA NEP program

• Greater societal implications for major incidents – e.g. Texas City, Deepwater Horizon

• Developing world is further behind in regulation, but mitigation of catastrophic failures and asset losses are often of primary concern (over employee safety)

Key Industries & Regions

Oil and Gas, Chemicals

• Support existing customers (RIL, Suncor, PRSI, CCRL, CNPC, Husky, GALP, Pemex, etc.)

• Increase emphasis on Upstream O&G

• Focus on national oil companies, growth companies with proven reserves, and JV’s

• Serve market created by US OSHA’s Chemicals National Emphasis Program

Non-traditional, high risk process industries

• Mining and Metals Processing

• Power Generation

Regions with plentiful resources and where there is new process industry investment

• In A/P: India, China, Indonesia, Malaysia and Vietnam

• In EMEA: Central Europe (Caspian Basin, Poland, etc.), Russia and CIS, Middle East (Abu-Dhabi, Kuwait, Saudi Arabia and Qatar), Pakistan and Sub-Saharan Africa

• In LA: Mexico and Brazil

• In USC: Canada

Trends

• Increasing corporate focus on risk mitigation

• Continued tightening of regulations/enforcement eg. OSHA NEP program

• Greater societal implications for major incidents – e.g. Texas City, Deepwater Horizon

• Developing world is further behind in regulation, but mitigation of catastrophic failures and asset losses are often of primary concern (over employee safety)

Key Industries & Regions


10

The addressable competitive market for Safety Consulting is $3.2B with PSM representing about $1.9B

DSR Addressable Market($3.2B)

Source: Kennedy Information Advisors

$1.93bn

$1.23bn

Employee &Contractor

PSM

• Detailed Market Research by KIA in Q1 2011 has identified substantially greater revenue opportunity in the PSM space

• Total safety consulting ‘addressable’ market remains even larger as many potential clients “do-it-themselves”

• Addressable competitive market now estimated at $3.2bn – with PSM representing nearly 2/3


11

Detailed Analysis by KIA of the PSM Addressable Market has identified new players in both PSM and overall Safety Consulting

Emphasis on Contractor/Construction Safety & embedded within project work

Source: Kennedy Information Advisors

Comprehensive List of Firms PSM Revenue Employee & Contractor Safety Total

DNV $ 105.0 $ 56.0 $ 161.0

DuPont $ 24.0 $ 114.0 $ 138.0

ERM (Environmental Resources Management) $ 61.0 $ 74.0 $ 135.0

Bechtel $ 42.0 $ 82.0 $ 124.0

ABS Consulting $ 90.0 $ 33.0 $ 123.0

Shell Global Solutions $ 85.3 $ 23.5 $ 108.8

Bureau Veritas $ 85.0 $ 20.3 $ 105.3

Deloitte $ 51.0 $ 47.4 $ 98.4

Jacobs Engineering $ 50.0 $ 45.0 $ 95.0

ABB $ 87.0 $ - $ 87.0

Aon Consulting $ 30.0 $ 55.0 $ 85.0

Fluor $ 19.0 $ 60.0 $ 79.0

Siemens $ 35.0 $ 40.0 $ 75.0

Hima Paul Hildebrandt GmbH $ 45.0 $ 25.0 $ 70.0

Allianz $ 60.0 $ 60.0


12

Competitive Insights

1. Of Top 15 overall safety consulting players, DuPont is 2nd largest, but 14th largest in PSM revenues

2. None of the specialist behavioral safety competitors – BST, JMJ etc – make the top 15

3. Significant number of EPC players – revenues estimated for services performed within larger major projects. Aligns with our CSM/Cap Effectiveness practice

4. In PSM, insurers are significant players, one, Aon has made a specific strategic move to provide consulting support for PSM improvement. Others, Allianz, Marsh, Liberty Mutual etc appear more opportunistic

5. DuPont, together with Shell, remain as one of the few owner operators, but the acquisition of CoreMedia by Caterpillar – although small – validates the attractiveness of the service offer


13






5. Key Issues



14

PSM Services Continuum

Process Innovation / Renovation

Best Practices Workshops

Assessments / Benchmarks

Corporate PSM Strategy Development

Asset PSM Improvement Plan Development

Plan / Design / Development

OperationsSupport &

Implementation

Continuous Improvement

Governance and Organizational Design

PSM Design Facilitate PSM

Standards/Procedures/Processes

Organizational Development

Expert Skills Augmentation

Delivery Execution Partnering

What To DoWhat To Do Help BuildHelp Build Help RunHelp Run Help SustainHelp Sustain

Focus Areas

1.Integrated PSM Mgt Systems

2.Operational Discipline

3.PSM Performance Management

Decision Makers

VP Level: Ops, Plant Mgr, COO

Influencers

Technology Mgr

Engineering Mgr

Dir of Safety or Op Risk Mgt

Services Business

Competency

“Assisting clients manage

their operational risk to prevent process related

injuries and incidents.”

Services Business

Competency

“Assisting clients manage

their operational risk to prevent process related

injuries and incidents.”

PSM Audits Operating

Discipline Assessments

Learning and Development curriculum


15

PSM Offering Statement

The Process Safety Management (PSM) offering from DuPont Sustainable Solutions is a proven, multifaceted and comprehensive process that helps organizations manage their operational risk to:

Prevent process-related injuries and incidents

Sustain right-to-operate status and positive reputation among all stakeholders

Achieve sustainable improvements in business continuity, asset productivity


16

PSM Value Proposition

Promise: A proven managing system to enable sustainable improvements in process safety and to avoid loss of life, property, business and environmental image

Target Audience:

• Decision Makers-COO & VP level in Ops, Plant Management

• Decision Influencers: Dir of Safety or ORM, Technical and Engineering Management

Differentiation:

• Owners and operators of high hazard processes all over the world with 200+ years of experience

• A complete, integrated management system for PSM at corporate and site levels

• Technical knowledge and content, linking behavioral elements of employee safety as a foundation for effective PSM


17

PSM Value Proposition – cont.

Reasons to Believe:

• Extensive internal PSM expertise recognized by Industry recognition

• Proven results in delivering improved PSM performance with external clients

• Routine interactions and applied experience with senior leadership on PSM systems, performance and continuous improvement


18

Strengths and Unique Attributes

• A manufacturing company and brand recognized as a leader in Safety with specific PSM responsibilities, operating systems and leadership practices

• Extensive internal PSM technical expertise, experience, and systems in developing, maintaining and improving PSM

• Extensive PSM management and technical consulting experience and capabilities with external clients

• Routine interactions and applied experience with senior leadership on PSM systems, performance and continuous improvement – translational capability to engage leaders and connect to PSM

• Ability to engage with and influence PSM within other manufacturing companies across the supply chain (raw materials , products, distribution)

• Actual experience in PSM training and mentoring for executive leaders (internal and external clients)


19

Capabilities to win

• DuPont Brand and Safety Leadership directly transfers to PSM

• Knowledge and ability to apply tools of PSM; essential for interpretation of PSM Studies results and configuration of Software Solutions

• Ability to articulate the simplified, de-mystified value proposition

• Gifted, capable, experienced, practical people (delivery) MI, PHA,

• Knowledge sharing and collaboration; key to introduction of new PSM Training Offering

• Solutions Design; essential to move client from assessment phase to envision, plan and implementation phases which brings a ~20X revenue multiplier

• Regional capabilities: ME (Weak), CIS (Weak), Brazil and Mexico (Med), India and China (Strong), Canada, US, (Strong) W. Europe (Med)


20






5. Key Issues



21

Segmentation

Market Segment Selection Criteria

• High risk industries with focus on Major Incident prevention

• Significant operations: equipment, people sensitive and capital intensive

• Growing areas with money to spend

• PSM applicability

• Ability for DuPont to capture more share due to our combination of content, approach and owner-operator experience


22

PSM/ORM Industry Potential & Development

Rel

ativ

eM

kt A

ttra

ctiv

enes

s

Relative Business Strength

Hi

Lo

Lo Hi

O&G

Utilities

Metals Processing

ChemicalsFood

Rail/Mass Trans

Mining (sub-s)

Mining (open)

Healthcare

Hospitality

Phase I Development

Phase II


23

4 Target Industries with significant operational risk from PSM-type incidents

Applicability of Potential Offerings by Industry

Leadership and Management

Systems TrainingPSM Software

ServicesPSM Studies /

Analytics

Oil and Gas H H H H

Chemicals H H H H

Metals & Mining H H M M

Power Generation

M H M L


24

Target Market Segments

Target segment

Description Needs Rationale

Chemicals Core segment, High hazardous, small & med-size players,

Understand concepts but need support on “how to do it” and establish procedures to protect from loss of expertise due to aging workforce

Core business, recognized leader, can leverage existing relationships, brand strength, previous work in WPS to extend to PSM

Oil and Gas-Upstream and Downstream

Core segment, small & Med independents, NOCs, in developing regions where reserves exist and investment occurring (India, China, Russia, ME)

Understand concepts but need support on “how to do it”, need to establish operating discipline

Extensive client experience to be leveraged, strong DuPont brand credibility, no established PSM management system, less regulated but wanting to play in global economy so PSM is critical to growth

Power Generation

New growth area – power generation from traditional sources – primary coal fired thermal power plants

Understand concepts but need support on “how to do it”, need to establish operating discipline, need help to adapt PSM principles to specific Industry dynamics

PSM applicability and meets other selection criteria as noted, can leverage existing relationships, brand strength, previous work in WPS to extend to PSM

Metals Processing

New Growth Area Understand concepts but need support on “how to do it”, need to establish operating discipline, need help to adapt PSM principles to specific Industry dynamics

PSM applicability and meets other selection criteria as noted, can leverage existing relationships, brand strength, previous work in WPS to extend to PSM


25

Segment Strategic Intent and Goals

Segment Where we are Strategic Intent Where we want to be Value Proposition

Chemicals Recognized PSM SME, growing awareness of commercial offering (“I didn’t know DuPont did this!”)

Build off our client successes, leverage the brand and our existing relationships in Safety, establish position as Thought Leader

Established as a player in PSM consulting

Tried and true, operating discipline to sustain improvements

Oil and Gas Recognized PSM SME, growing awareness of commercial offering (“I didn’t know DuPont did this!”)

Build off our client successes, leverage the brand and our existing relationships in Safety, establish position as Thought Leader

Established as a player in PSM consulting

Tried and true, operating discipline to sustain improvements

Power Generation

Not recognized as PSM/ORM expert for Power Generation.

Demonstrate ability to apply PSM principles to Power Generation specific Ops Risk management needs, leverage Thought Leader position in Chem and O&G

Codified, adapted approach, ready to scale. Recognized as credible player in Power Generation

Tried and true principles adapted to clients’ specific industry dynamic and issues

Metals Processing

Recognized PSM expert, opportunistic engagements, handful of “first of kinds”

Demonstrate ability to apply PSM principles to needs of Metals Processing Ops Risk management, leverage Thought Leader position in Chem and O&G

Codified, adapted approach, ready to scale. Recognized as credible player in Rail

Tried and true principles adapted to clients’ specific industry dynamic and issues


26






5. Key Issues



27

Key Market Issues

1. Lack of awareness that we have an offering in this area

2. DuPont's comprehensive approach is viewed as a lack of understanding of the client’s unique situation • Need to adapt our approach to the industry and client strategy (where the client is

in the journey)• Most Customers lack the resources to integrate a “DuPont approach” • Need to start with most urgent needs

3. Perceived to have missed an opportunity after the BP Texas City incident • ...many companies came forward with their capabilities to help prevent incidents in

future, DuPont was noticeably absent

4. Different business challenge in process- (Chemicals, O&G) vs. non-process (Transit) industries• In regulated industries, PSM is an established discipline, so our goal is to establish

awareness of DSS as a player• In non-regulated industries, there is no established discipline, so our goal is to first

create awareness about “low frequency, high impact” incidents and at the same time, position DSS as a player


28






5. Key Issues



29

PSM Objectives/Marketing Strategies & Tactics

• Attain $73 mn in annual revenue by 2014

• Establish DSS as a Thought Leader in PSM/ORM

Objectives

Create awareness of PSM/ORM Offering

Develop market through client involvement and education

Position offering as flexible and adaptable to specific segment and client needs

Strategies Tactics

1. Print advertisements & articles in Trade Publications

2. Online content (DSS Website)3. Search Engine Optimization4. Presence at events

1. Speaking Engagements2. White papers3. Workshops4. Case Studies

1. Create global message platform2. Develop collateral3. Develop high interest offerings4. Create sales tools

Support growth in new industry segments and regions

1. Develop Industry specific messaging 2. Apply needs based segmentation 3. Support regional execution4. Gather regional insights

Process Safety Management Marketing Plan Updated: August 17, 2011.

Documents

Transcript of Process Safety Management Marketing Plan Updated: August 17, 2011.