1. ARMSA
CONSULTING
A paradigm shift
Leveraging Competitive Advantage Through
Transforming an OH&SMS
Presented by Rakesh Maharaj
ARMSA Consulting
2. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
Exploring...
… historical perspectives of EPS and the evolution of Health,
Safety and Environmental Management.
… the reasons for adopting an Applied Systems Thinking
approach.
… the use of Applied Systems Methodology to diagnose,
reframe and restructure its HSE Management Systems.
… the organisational effects of bottom-up change
management.
… operational and organisational performance
improvements.
3. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
The historical perspective
Under CEGB operation:
• The main focus of the CEGB was to meet their ‘duty to
supply’ electricity via the best Engineering methods
available
• To ensure the safe operation and maintenance of plant
and equipment
• In the most efficient way available.
4. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
The historical perspective (cont.)
Newly Privatised – National Power
• Under privatisation the duty was now to the Shareholders.
• The H&S focus of National Power was Policy, Principles
and Procedures.
• To meet the operating parameters of the new market.
5. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
Present times
British Energy - Eggborough Power Limited
Aims to achieve World Class Health and Safety performance
that comprises:
• A Health and Safety Management System that leads
business process.
• Sustainable behaviours to support its implementation both
strategically and operationally.
6. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
EPS goals
Make a step-change improvement in SHE performance to enable:
• Significant improvement in operational SHE performance metrics.
• Alignment of SHE metrics with business goals and objectives.
• Creation of partnerships between SHE Professionals and
Dept Managers.
• Transformation of SHE from a ‘cost-of-doing-business unit’ into a
value adding profit centre.
• Promoting inclusive thinking.
• Integrating health and safety with management decision thinking.
• Instilling personal responsibility.
7. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
Diagnostics – systems approach
Diagnostics – systems approach
Personal ownership/
Accountability - Departmental
Competence ?? Investment - -
Reward/
Recognition +
Consultation +++
Clear
Direction - -
Management
Control - -
Leadership +/-
Management
System (+ve) Co-operation - -
Safe attitudes
(+ve)
8. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
Approaching Intervention
Reactive Planning Interactive Planning
Tactically orientated Strategically, tactically and
operationally orientated
Dealt with by:
ID deficiencies Dealt with by:
Project specific + individual solutions Accepting that what is done now
will affect the future
Deficiencies
Eliminating problem does not Guarantee Preactive Planning
desirable solution Strategically orientated
Solutions are exclusive and do not Dealt with by:
deal with interactions Prediction and preparation
Deficiencies
Process Good for forecasting future
Designing desirable event(s) to uncertainties
control the future and selecting
Solutions designed are almost
ways of approximating it as
never implemented because
closely as possible
plans are always for the
It deals with EPS as a system future itself
9. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
The attributes of IP
• Treats EPS as a complete system and not a sum of
parts (departments).
• Aims at delivering solutions for consumers.
• Resolves management and operational conflicts.
• Outputs are perception (attitude) changing.
• Bottom – up effect of change management promotes
transparency.
• Consumers get what they ask for.
• Reduces resistance to change – staff, contractors and Depts.
10. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
Bottom-up change management
The advantages
• Focuses on targets of change.
• Involves operational staff and departments in the first instance.
• End product is moulded according to need and expectation.
• Product is sensitive to business, operational and PEOPLE needs
• Implementation phase is pre-championed.
11. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
The detailed process
The detailed process
Q1 Q2 Q3
Systems Analysis Obstruction
- Completed Analysis
Mess
Formulation
Select and coach
Consumer Group
ENDS
Planning Select and coach
Designer Group
Workgroups - modification towards idealised state
T1 T3 T5
MEANS
Planning
T2 T4 T6
Facilities
and
Personnel Equipment
RESOURCE
Planning
Financial Materials,
Supplies and
Services
Human
Factors Technology, Work and
BBS Human Factors
Implementation
Organisational
Factors
12. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
The process simplified
The process simplified
Consumer
Product Removing Implement
Product
Design Obstacles Product
Specification
2 weeks 6 weeks 4 - 5 weeks ongoing
13. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
Mapping – an example
Mapping – an example
Departmental Map
Maintenance Dept
Workshop Onsite Repairs Rapid Troubleshooting
Function/Role Map
Engineer 1 Equip. Maintenance Electrician Engineer 2 Fitter 2 Boiler Engineer Gas Fitter
Assistant Assistant 1
Activity Map
Operations
Operatives Suppliers
Contractors
14. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
Consumer group specification -
Directives
• Risk control • Work planning interface
• Regulatory/Operational • Service provider partnerships
mapping and interpretation • Knowledge management
• SHE training
• Staff selection
• Personal skill and
• Performance monitoring and
competence
auditing
• Front end project loading
15. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
Designer group – the broad brief
• To design an idealised system that will meet with Consumer
Group specification to replace the SHE system that was
recently destroyed;
• Use ALL SHE specifications and dissolve all consumer group
issues – remember the consumers are now consultants; and
• Always consider role of stakeholders of the SHE system and
therefore the impacts of its deliverables.
16. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
Designer group – limitations
• The system designed must be technologically feasible and not
incorporate any technology that is not currently available.
• The system must be compliant with the regulatory framework.
• The system must be operationally viable – fit for purpose. Not to
be confused with immediate implementation.
• The system designed must accommodate future improvements.
17. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
Designer group – outputs
To develop a management system that has the following
characteristics:
• A mission statement.
• Comprise directives that are:
• Operationally focused i.e. cross departments;
– Efficient to use and produce quality results; and
– Consistent with the needs of the end user.
• Whose continuous improvement is driven by the
appropriate stakeholders.
18. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
The Mission Statement -
an example Statement -
The Mission
an example
At EPS Safety, Health and Environmental consideration is central to
our business of generating electricity. It is an objective shared and
Atowned by everyone… Environmental consideration is
EPS Safety, Health and
central to our business of generating electricity. It is an
objective shared and owned by everyone…
Business/SHE ideals Aspirational Stakeholders Exciting/ challenging/
inspiring
19. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
Testing the ideal directive
Mission Function
• Stakeholder driven • Provides business,
• Proactive / prevention operations, corporate and
customer support.
• Fully integrated with business
• Precise regulatory
• Revenue Enhancer / Value
interpretation for operations.
Adder
• Contributes to knowledge
• Any other?
management, personal skill
and competence.
• Compatible with other
relevant directives.
20. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
Testing the ideal directive
Process Structure
• Integrated with operations • Leveraged and distributed
• Clear, concise and simple • Cross departmental
• Consistent with business, • “Lowerarchical”
operational and regulatory • Synonymous with
needs competence development
• Automated? directives
• Cross departmental • Business and line
• Encourages action learning accountability
• SHE reports to SD
21. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
The contributions
• Significant improvement in operational performance.
– 42 tasks redesigned
• Alignment of SHE metrics with business goals and objectives.
– business focussed mission statement, individual KPI’s - self set
holistic views
• Transformation of SHE from a ‘cost-of-doing-business unit’ into a value
adding profit centre.
– re-organisation of planning and outage functions
– integration of maintenance and operations depts
• Enhanced investment, organisational learning and informed decision-making
amongst line employees in SHE related matters.
– all ‘own’ the new business directives
• Identification of a wider range of creative and less expensive solutions to
SHE challenges.
22. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
Organisational contributions
Organisational contributions
Departmental interdependency and
H&S Ownership Consultation and participation
work integration
Widespread self-realisation that H&S is not a IP helped overcome an isolationist view of Staff felt more engaged in the bottom-
support function. departmental operations. up transformation process and IP
allowed them to contribute freely and
constructively without fear of reprisals.
H&S is a function of the task and staff are Departments realised that better interaction Knowing that the consumer idealised
empowered to make decisions holistically. will allow for effective planning and risk design process in IP would allow them
control. to be creative, many participants began
to realise that their jobs affected tasks
around them
Contributions
All departments are accountable for Improved interaction between outage and Many staff previously worked in isolation
controlling risk created by their operations work planning functions will enable adequate and had very little knowledge of where
and providing detailed information on risks resourcing of long term or high hazard information pockets existed around the
transferred to other departments. projects. power station. IP broke down those
barriers and staff now know who the
subject matter specialists are and will call
upon them in time of need.
Skills (including health and safety) needs
analysis and apprenticeships will be
a partnership function between each
department and the training department.
23. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
Conclusion
• It Health and safety problems are plural and complex.
• Resolving them outside organisational and operational
context can lead to ineffective solutions.
• Selecting an appropriate intervention and change
management methodology is fundamental.
• Remember the internal and external customer(s).
• Operationally focused systems interventions will yield
business benefits and commercial gains.
24. A paradigm shift
Leveraging Competitive Advantage
ARMSA
CONSULTING
Questions
Rakesh Maharaj
Managing Director
ARMSA Consulting
Chadwick House
Birchwood Park
Warrington
WA3 6AZ
Cheshire, UK
email: rakesh.maharaj@armsa.co.uk