Proactive Safety Mangement
Incidents/NearMiss/SafetyObservations/UnsafeBehaviour
How to motivate? How to drive? Experiences? Quick wins? Traps?
Bernd Freibott – SAP – Global Sustainability Services Hub
Solutions for Sustainability and Environment Health & Safety
April, 2nd 2014
New
middle class
Need to
innovate
Price volatility, Growing public
margin risk
awareness
NEW RISKS AND
OPPORTUNITIES
Climate instability,
pollution
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Brand
at risk
Supply at risk
Cost and risk
of compliance
Employability
Aware
consumers
Bernd Freibott,
Germany
AG & AG
Co&KG
BerndSAP
Freibott,
SAP Germany,
Co. KG
2
Renewed Focus on Incident Management
as Lever to Reduce Operational Risks
Executive
Management
Reduce operational
risks: Improve
productivity, ensure
business continuity
Customers
Business won or lost on
safety performance
Regulators
Increased costs;
possible fines, criminal
prosecution
Investors and
Community
Demand proof of effective
risk management
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Bernd Freibott, SAP Germany AG & Co KG
3
Why Corporate Sustainability?
Drivers for change
SUSTAINABLE
BUSINESS MODEL
Secure business
success
ADVANTAGE IN
COMPETITION
Foster branding
RESOURCE
PRODUCTIVITY
Decrease dependance
from energy and
natural resources
COST & RISK OF
COMPLIANCE
Automation of compliance
Enhance product portfolio
by sustainable products
© 2013 SAP AG. All rights reserved.
Bernd Freibott, SAP Germany AG & Co KG
4
New Focus on Incident Management? Why?
-> Incidents are still a major risk for many operations!
Accidents happen,
270 million accidents/year
Regulations violated
up to $1 billion loss/incident
Safe
Workplace
April 14, 2009
Invista Settles With EPA,
Violation Fixes Will
Cost $500 million
Protect
Environment
Safe
Products
Product Safety impact
$800 billion
losses/year
© 2013 SAP AG. All rights reserved.
Bernd Freibott, SAP Germany AG & Co KG
5
Incidents Have High Hidden Costs and Risks
Indirect Costs Exceed Direct 5-10X
Risks
Non-compliance
Costs
$1
Brand damage
Lost shareholder
value
$5-50
Direct costs of injuries,
illnesses
Indirect: Uninsured
costs of property
damage, process
interruptions, etc.
Lost business
Production and
quality problems
Lost wages, lost
productivity, retraining, admin, etc.
Criminal sanctions
What’s possible? For a 10,000 employee company with “average”
safety performance: 20% reduction in TRIR = $4M savings
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Bernd Freibott, SAP Germany AG & Co KG
6
Incident Management within EHS
- a complex reality!
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Bernd Freibott, SAP Germany AG & Co KG
7
Stakeholders – Incident Management
Legal
Aspects
Governance,
Risk and
Compliance
CIO / COO
Fleet
Management
Environmental
Compliance
Asset
Management
Industrial
Accident
Environmental
Incident
Regulatory
Authorities
Maintenance
Financial Cost
Accounting
Occupational
Health
Industrial Hygiene
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HR and
Contractor
Management
Hazardous
Substances
Bernd Freibott, SAP Germany AG & Co KG
8
Swiss Cheese Model
– Various minor failures as causes for incidents
Source: Advances in Health Care Management, Grant T. Savage, John D. Blair, Myron D. Fottler (2002); Download July 26, 2011
http://www.emeraldinsight.com/fig/1723_10_1016_S1474-8231_08_07003-1.png
© 2013 SAP AG. All rights reserved.
Bernd Freibott, SAP Germany AG & Co KG
9
Root causes of accident – the hidden reality
1
1
Major
Fatal
Fatality
Injury
accident
30
1%
99%
10
29 Cases
Lost Workday
Serious
300
Minor
Accidents
Recordable
InjuryInjuries
30
3,000
300
Accidents
Near Misses (estimated)
What we see, what we notice,
what we report, what we
investigate.
What we do not see,
what we do not notice,
This
room
whatis
wethe
have
no clue
about, for
what we have no figures
IMPROVEMENT
about.
600
Incidents
300,000
Incidents
(near
miss)
At-Risk Behaviors
(estimated)
© 2013 SAP AG. All rights reserved.
Bernd Freibott, SAP Germany AG & Co KG
10
The idea
1%
99%
Chipping of the tip does not
remove the iceberg.
I need to know more about
what’s “under water”.
I need to get everyone involved.
I need to get “good quality”
data on what goes on “under
water”.
I need to get a “picture” on the
current situation but also on its
development.
I need to “attack” the iceberg
from below.
© 2013 SAP AG. All rights reserved.
Bernd Freibott, SAP Germany AG & Co KG
11
Safety Performance
Evolution of Safety and Incident Management
Proactive
Managed
Reactive
Responsive Activity Systematic Approach
Strive for zero accidents
Learn from failure
Try to avoid accidents
Reasoning and
natural instincts
Safety Management and Behavioral base safety
Safety Regulations
culture
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Proactive Safety Management
Bernd Freibott, SAP Germany AG & Co KG
12
Evolution of Safety Culture
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Bernd Freibott, SAP Germany AG & Co KG
13
Incident Management Process and Integration
Best Practice - Seamless Information Flow and Visibility
SAP Business Suite: HCM, EAM, Business Partner, Material Management
Data and Business Process Integration
Incident Prevention
Initial
Reporting
Capture all incidents types
Record near misses and
safety observations
Simple initial reporting by
anyone, online or offline
Incident
Processing
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Reporting
and
Analysis
Incident
Investigation
Gather all relevant information
File regulatory reports
Investigate, determine cause
Assess risks
Trigger corrective actions
Manage actions and closeout
Prevent incidents
Set targets
Monitor performance
Manage exceptions
Monitor process flow
Identify, mitigate risks
Deploy lessons learned
and best practices
Bernd Freibott, SAP Germany AG & Co KG
14
Challenges for EHS and Operations Leaders
One Safety Culture Concept globally?
Culture of responsibility versus total observation and
maybe even denunciation?
How to motivate? How to drive?
How or whether to incentivize?
Complete Data versus Too much Data?
Visibility versus Responsibility and Liability?
Whom to involve? Total involvement?
Are we not already having enough info to improve?
© 2013 SAP AG. All rights reserved.
© SAP AG 2009. All rights reserved. / Page 15
Bernd Freibott, SAP Germany AG & Co KG
15
SAP EHSM Incident Management
Reducing Risks and Costs
Lower your
costs
• Improve productivity
• Standardize and improve efficiency
• Reduce IT support costs
• Guarantee compliance
Reduce your
risks
• Strengthen standard processes
• Identify and prevent risks
• Reduce operational risks proactively
Secure business
benefits for your
company
Protect your
brand and your
revenue
• Safeguard your operating license
• Protect your brand and image
• Expand your markets and fields of
business
Ensure an effective and safe working environment worldwide
© 2013 SAP AG. All rights reserved.
Bernd Freibott, SAP Germany AG & Co KG
17
Questions
Contact data:
Bernd Freibott
Senior Business Manager and Head of
Global Sustainability Services Hub
SAP Deutschland AG & Co.KG
Dornierstr. 3
88677 Markdorf, Germany
Mobile: +49 175 294 35 85
E-mail: Bernd.Freibott@sap.com
