EHS Accountability and Responsibility Maintaining Focus on Delivering Results Amidst Organizational Change
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Christian Johnson presented on GE's transition to a new EHS organizational model called OneEHS. The goals of OneEHS were to leverage expertise across GE, expand EHS services regionally, and drive EHS excellence while simplifying processes. Johnson discussed four case studies: 1) implementing RASCI to define roles and responsibilities, 2) developing a communications strategy, 3) establishing operating rhythms for accountability, and 4) implementing risk-based governance processes. Lessons learned included the importance of communication, moving quickly while maintaining design quality, and clearly defining roles early in the transition.
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EHS Accountability and Responsibility Maintaining Focus on Delivering Results Amidst Organizational Change
- 1. #aihce EHS Accountability and Responsibility Maintaining Focus on Delivering Results Amidst Organizational Change Christian Johnson, CIH, CSP EHS Executive GE Energy Management Abbreviated slide deck for online post
- 2. #aihce Agenda GE’s new EHS Organizational Model: OneEHS 4 Case Studies ‘The Way We Work’ Communications Operating rhythms Governance processes Lessons learned Focus on maintenance and transfer of accountability & responsibility 2
- 3. #aihce • Leverage scale • Flex to meet business needs • Expand expertise • Build great careers • Drive EHS excellence OneEHS GE has a strong EHS reputation Redeploy regionally to shared service model And … • GE is changing … simplification, growth markets, new products… • The world is changing … increasing volatility, more regulation, customer/shareholder expectations, different risk… The best organizations evolve to meet new challenges 3 Corp P&L P&L
- 4. #aihce Governance, analytics Legal Remediation Regional experts Businesses: Focus on sector & customer alignment, NPI, unique business risks. OneEHS – A New Delivery Model Support business growth with better coverage & reduced cost • Leverage expertise • Regional deployment, support growth markets • Build capacity, risk management • Better professional development Shared Service: enterprise standards subject matter experts streamlined process Regionally deployed experts to support sites & service operations. Function-wide processes & tools run centrally, eliminating duplication. 4
- 5. #aihce Business Leader P&L EHS Leader P&L EHS Leader Services Leader Growth & Integration Leader P&L EHS Leader New Org Structure – GE Energy Management EHS ‘Core’ Team OneEHS Shared Services TeamsFront Line EHS Team Global Operations (Regions) Legal and Transactions Remedial External Engagement Services Enterprise Standards Functional Partners HR Leader Legal Leader Finance Leader Health Svcs. Leader ‘Business and Shared Service partnership to serve the front line team’ 5
- 6. #aihce Transformation Timeline 2013 – Announce 2014 - Build • Staff 2nd wave roles • Transfer of Work • Finalize organization • Launch Global Ops EHS • Staff Europe region • Planning for 2015 • Staff Leadership team • Accelerated Latin America launch • Post 2nd wave positions • Finalize metrics • Transformation work-out • Post 1st wave positions Q2 Q3 Q4Q1 2015 - Execute Deliver • World-class support • 100% Say/Do • Operational imperatives • Programmatic needs Simplify • Internal review processes • Programs rollout • GenSuite • Training Eliminate/Reduce • Duplication • Programs, procedures • Meetings • Cost • EHS Shared Service Organization Announced Q4 6
- 7. #aihce Case Studies 1. RASCI and ‘The Way We Work’ 2. Communications strategy 3. Operating rhythms 4. Risk based Governance processes 7
- 8. #aihce Responsible The organization who is ultimately responsible for delivering the project and/or task successfully. Accountable The organization to whom the "R" is accountable. Supporting The organization who support the work being completed. Consulted The organization whose input adds value, or whose buy-in is essential for ultimate implementation. Informed The organization who needs to be notified or informed of the process, results, or action taken. Scenario: Supplier reputational DESCRIPTION OF ROLE & RESPONSIBILITY Business core EHS Team Business functions - non-EHS Site COE - Global Ops/ Regions COE – Ent. Stds. COE - Remedial COE - Legal Other (e.g. security, medical) Supplier concern raised R I Contact sourcing to analyze agreement and scope R A Notify COE regional teams for help R S Investigate I I I R C C S Report back I 1: RASCI and ‘The Way We Work’ Before Launch – Detailed work streams analysis 8
- 9. #aihce 1: RASCI and ‘The Way We Work’ After Launch – ‘Running Rules’ 9
- 10. #aihce 2: Communications Strategy 19 Town Hall sessions ~ 10,000 attended 24 Q&A sessions ~100’s of Answers 22 Videos 9000+ views 197 Blog posts 2000+ members GE-WideBusiness - Specific 10
- 11. #aihce 3: Operating Rhythms Drive Accountability Mechanism Audience Frequency Metrics Covered Business Ops reviews Senior Executive Leadership – business only Monthly EHS covered with monthly business financials Focus program, event based reviews Scaled based on severity As needed Risk specific Supply chain Ops Review Senior Supply Chain Executive leaders – business only Monthly Safety – I&I rates Strategic EHS Review Senior Executive Leadership – OneEHS and business Annual Risk heat maps, overall business EHS performance, shared service execution Shared Service Performance Reviews OneEHS regional leaders + business EHS team Quarterly Full suite lagging and leading, shared service execution EHS&S ‘Pulse’ reviews Site leaders, front line EHS leaders Monthly Full suite lagging and leading 11
- 12. #aihce 4: Risk-Based Governance 12 AfterBefore Op Reviews Session E Business Level Audits Self Assessments and Routine Inspections Site/ Business Risk Govern. Audits Strategic EHS Review Op Reviews Self Assess- ments Corporate Driven Business Driven Site Driven Heat Maps Regulatory Risk & Complexity Bulk of process run individually by businesses Core processes run centrally by governance team
- 13. #aihce Lessons learned – Company Level Retention strategy critical Posting vs. moving people into roles Competency models/pathways Foster trust People Provide roadmap & vision Be transparent Create mechanisms/rhythms to keep stakeholders engaged Engage supply chain, service leaders, HRMs earlier in process Launch pilot and adapt quickly Process Communicate, communicate, communicate Move fast – balance deliberate design and need for certainty Clearly define roles & responsibilities early 13
- 14. #aihce Lessons learned – Christian’s view Can-do attitude from start Up-front communication – reduces need for rework Balanced op rhythm – not too little, not too much Let go of some control - trust the new team Treat every early interaction as coaching opportunity Foster open communications – ask for and give feedback 14
- 15. #aihce vs. + Local decision making + Standardization + Business/product specific needs focus + Diverse career paths + One working function + Joint responsibility ? Diluted responsibility and accountability ? Heavy early travel demands ? Wide diversity of needs and expectations ? Lean structure reduces ‘bench’ talent for adaptation ? Jointly owned talent pipeline ? New silos created 15 RisksBenefits Operating rhythm ensures risks are addressed quickly
- 16. #aihce 16