The Roadmap to a Best-In-Class Safety Strategy

THE ROADMAP TO A BEST-IN-

CLASS SAFETY STRATEGY

October 2014

Sponsored By:

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KEVIN

PROUTY

Senior VP

Research

ABERDEEN

GROUP

MODERATOR

30 years experience in manufacturing, supply chain, and

engineering.

Industry Experience:

• VP of Research, Enterprise Applications, Aberdeen

• Sr Director, Manufacturing and Product Design, Aberdeen

• Director of Manufacturing Solutions, Infor

• Director of Manufacturing Solutions, Motorola

• Sr Director, Automotive Research, Gartner

• Sr Director, Manufacturing Research, AMR Research

• General Supervisor/Plant Manager, Saint Gobain/Norton,

Superabrasives

• Various engineering positions at Norton and Morgan

Construction/Siemens

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BEN

ARCHIBALD

CTO

Remedy

Interactive

FEATURED SPEAKERS

KEN COLONNA

Director, Safety

Services, West

Leading Family

Entertainment

and Media

Enterprise

As the CTO and Co-Founder at Remedy Interactive, a leading

provider of health and safety management software, Ben Archibald is

responsible for product leadership and innovation. A thought leader in

health & safety technology, Ben leverages 20 years of experience in

the software industry to create unique products that focus on

measurably improving the efficiency and impact of safety efforts, while

fostering a culture of safety, across global organizations.

As the Director of Safety Services, West, for a leading family

entertainment and media enterprise, Ken leads a team of safety and

health professionals that designs, implements and manages an

integrated safety management system. With more than 30 years of

safety-related experience and a diverse background in risk

management, loss prevention and environmental sustainability, he has

held leadership roles at several notable companies including The

Quaker Oats Company, Coca-Cola Refreshments and Terminix

International. Ken is affiliated with the American Society of Safety

Engineers, the American Industrial Hygiene Association, and the

National Safety Council, and serves on various boards and

committees supporting Environmental Health & Safety.

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What we will discuss

What it’s all

about…

How we

collect our

research

How we

analyze our

research

Setting the

environment

What

companies

are doing…

Recommendations

…

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PACE: How we collect our research

!

PRESSURES ACTIONS CAPABILITIES ENABLERS

External and internal

forces that impact an

organization’s market

position,

competitiveness, or

business operations.

The strategic

approaches that an

organization takes in

response to industry

pressures.

The business

competencies

(organization,

process, etc…)

required to execute

corporate strategy.

The key technology

solutions required to

support the

organization’s

business practices.

What are Best-in-Class

companies doing

differently?

What pitfalls are they

avoiding?

Why are they achieving

greater success?

What technologies and

services are enabling

them to succeed?

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ABERDEEN MATURITY CLASS FRAMEWORKDEFINING THE BEST-IN-CLASS

Selected Performance

Criteria (KPI)

Recordable Injury Frequency Rate

Overall Equipment Effectiveness

Un-Scheduled Asset Downtime

Respondents

- Top 20%

- Middle 50%

- Bottom 30%

Respondents are scored

individually across KPI

Best-in-Class

Industry

Average

Laggard

TCO to manage safety systems

BIC: How we analyze our research

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SAFETY MANAGEMENT PROCESS OVERVIEW

• Companies that automate safety processes have better safety

and operational performance…adding analytics makes them

even better

• The analytics aligns with companies having solid continuous

improvement capabilities

• All companies are concerned with compliance, but leading

companies tend to be focused on operational efficiency

• Change management and risk management capabilities tend to

be indicators of safety culture maturity

• The most mature companies tend to perform better, automate

safety processes, and use analytics as a continuous feedback

loop

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TOP PRESSURES DRIVING

MANUFACTURERS

35%

38%

42%

68%

0% 20% 40% 60% 80%

The need to ensure quality of finishedproducts and reduce lead times

The need to maximize productivity

The need to increase customersatisfaction

The need to reduce costs

Percentage of RespondentsAll Respondents

Source: Aberdeen Group, October 2014

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PRESSURES DRIVING FOCUS ON

SAFETY MANAGEMENT

16%

26%

44%

65%

0% 20% 40% 60% 80%

Corporate sustainability mandates

Reduce the risk of non-compliance (threatof brand damage if found to be non-

compliant)

Concern over the risk of an adverse event

Ensure compliance with EH&S regulations

Percentage of Respondents, n = 187All Respondents


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BUT WHEN WE TAKE A CLOSER

LOOK…LEADING COMPANIES ALSO WORRY

MORE ABOUT OPERATIONAL EFFICIENCY

6%

9%

48%

67%

15%

8%

41%

62%

17%

21%

42%

54%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Improve manufacturing efficiency

Reduce manufacturing cost

Concern over the risk of an adverse event

Ensure compliance with EH&S regulations

Percentage of Respondents

Best-in-Class

Industry Average

Laggards


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65%59%

50%50%

29% 30%

70%62%

57%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Established cross-functionalteams

Business processes arestandardized, auditable and

transparent across allfunctional groups

Standardized processestablished to share

compliance informationamong employees, suppliers,

customers and regulators

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enta

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esp

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SMS No SMS SMS with Analytics

Business Capabilities: It’s about the

business process as much as the system


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78% 75% 75% 71%

53% 49%44%

49%

90%

76%71%

86%

0%10%20%30%40%50%60%70%80%90%

100%

Established aproactive riskassessment to

mitigate adverseevents in operations

Standardizedpolicies establishedto prevent businessinterruption due toan adverse event

Adverse events aremonitored and

escalated in realtime to decision-

makers

Established short-term and long-termgoals for individual

plants / facilities

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EH&S Capabilities: Some specific things

companies do in safety management


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84%80% 81%

58%49%

55% 53%

30%

84% 84%76%

55%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Standardizedprocess to formallyrequest a change to

operations

Formal process toreview and approve

changes inoperations

Formal process tomanage and

communicatechanges inoperations

Closed loopprocesses for

change related tasks

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CHANGE MANAGEMENT: A KEY COMPONENT FOR

LOOKING AT MATURITY OF ANY ORGANIZATION


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RISK MANAGEMENT: AGAIN, A VIEW

INTO MATURITY

48%

48%

23%

27%

42%

45%

0% 20% 40% 60%

Risk Management processes are integratedin all key organizational processes

Risk Management is culturally driven

Percentage of Respondents



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ENABLERS : SOME SPECIFIC

FUNCTIONS WHERE TECHNOLOGY

PLAYS A ROLE

68%62%

55%

44%

26%21% 19%

11%

70%65%

59%54%

0%

10%

20%

30%

40%

50%

60%

70%

80%

DocumentManagement

Reporting Tools Dashboards AdvancedAnalytics

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WHY DO THEY USE ANALYTICS

41%

30% 29%

5%

39%34%

22%16%

50%46%

41%

13%

0%

10%

20%

30%

40%

50%

60%

Simplify complexdecision making

across operations

Transforming allkinds of data(content) into

knowledge and newvalue

Identify new trendsthrough behavioral

analysis

Reuse data alreadycollected

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RECOMMENDATIONS…

• Establish a solid continuous improvement program for

safety management

• Automate your JHA and incident management

processes and collect the data

• Use analytic techniques and tools to connect the JHA

data with the incident data. Makes this a continuous

improvement loop

• Use these steps to get to a safety culture that is

continuously improving like any other process in your

operations

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Please submit your questions using

the Q&A field on the top left of your screen.

Q&Awith Kevin, Ben, and Ken

THANKS FOR JOINING!

For more information on this and other

topics, please visit aberdeen.com

http://www.aberdeen.com/

The Roadmap to a Best-In-Class Safety Strategy

Presentations & Public Speaking

Transcript of The Roadmap to a Best-In-Class Safety Strategy