THE LLOYD’S REGISTER
GROUP
Continuous improvement
– the future role of classification
Richard Sadler
Chief Executive Officer
THE LLOYD’S REGISTER GROUP
INTERTANKO Tanker Event 2009
Life cycle
STAGE 3 Construction &
STAGE 4
Commissioning
Operations
Maintenance
Management
Human Element/
Training
STAGE 2
Design
Supporting all
the stages of a
vessel’s lifecycle
- Planned Maintenance
- Maintenance Strategy
- Condition Monitoring
INTEGRITY
Risk
Management
STAGE 1
Strategic
Planning
SAFETY
PERFORMANCE
Life-extension/ship
re-cycling/scrapping
Project Management
THE LLOYD’S REGISTER GROUP
INTERTANKO Tanker Event 2009
Environmental
Management
Safety
Management
STAGE 5
De-commissioning
- Risk Management Services
- Lloyd’s Register Integrator
- EP / Green Passport
- CO2 Index
- Energy Efficiency Services
- ISM / ISPS – ILO
- Integrated Management Systems
Our stakeholders
Owners
Charterers
Owners,
Builders
ME&C and
Regulators
Bankers
Society
Insurers
Regulators
NGOs
NGOs
Media
THE LLOYD’S REGISTER GROUP
INTERTANKO Tanker Event 2009
The elements of sustainability
• Safety / Asset integrity improvement
• Environmental improvement
• Social improvement
THE LLOYD’S REGISTER GROUP
INTERTANKO Tanker Event 2009
Social conditions
THE LLOYD’S REGISTER GROUP
INTERTANKO Tanker Event 2009
“I joined the navy…”
THE LLOYD’S REGISTER GROUP
INTERTANKO Tanker Event 2009
Continuous improvement
• Better regulation, inspection, research and
knowledge management.
• Improved goals
on safety and sustainability.
• Balanced stakeholder
requirements of safety, reliability and cost.
THE LLOYD’S REGISTER GROUP
INTERTANKO Tanker Event 2009
Our Group at a glance
•
Anticipated annual turnover $1.0bn
•
7174 employees
•
101 companies
•
278 offices in 78 countries
•
Delivering services in 228 countries
•
7 months from our 250th anniversary
THE LLOYD’S REGISTER GROUP
INTERTANKO Tanker Event 2009
STAGE
1
2
DEVELOP THE STRATEGY
Define mission, vision and
values
Conduct strategic analysis
Formulate strategy
TRANSLATE
THE STRATEGY
Strategic Plan
Define strategic objectives
and themes
Select measures and targets
Select strategic initiatives
Strategy map
Balanced
Scorecard
StratEx
STAGE
STAGE
A model for our new business assurance system
5
performance
metrics
TEST AND ADAPT
THE STRATEGY
Conduct profitability analysis
Conduct strategy correlation
analysis
Examine emerging strategies
3
STAGE
STAGE
results
4
PLAN
OPERATIONS
Operating Plan
Develop sales plan
Plan resource capability
Prepare budgets
Improve key processes
Dashboards
Budgets
Pro forma P&Ls performance
metrics
results
Execute processes
and initiatives
THE LLOYD’S REGISTER GROUP
INTERTANKO Tanker Event 2009
MONITIOR
AND LEARN
Hold strategy reviews
Hold operational reviews
Adapted from
Harvard Business Review Mastering the Management
System
By Robert S. Kaplan and
David P. Norton
Our stakeholders
Owners
Charterers
Owners,
Builders
ME&C and
Regulators
Bankers
Society
Insurers
Regulators
NGOs
NGOs
Media
THE LLOYD’S REGISTER GROUP
INTERTANKO Tanker Event 2009
Beyond the model of straight-forward compliance
Necessary components
• Suitable management and management systems.
• The right attitude and corporate culture.
• The appropriate training and leadership models.
THE LLOYD’S REGISTER GROUP
INTERTANKO Tanker Event 2009
Incident trends
THE LLOYD’S REGISTER GROUP
INTERTANKO Tanker Event 2009
Human decisions…
THE LLOYD’S REGISTER GROUP
INTERTANKO Tanker Event 2009
Analysing the Human Element
THE LLOYD’S REGISTER GROUP
INTERTANKO Tanker Event 2009
Areas of best practice in addressing the human element
THE LLOYD’S REGISTER GROUP
INTERTANKO Tanker Event 2009
So, our role has changed…
Improved regulatory
framework
Greater human element
understanding
“I am opposed to the laying
down of regulation lest the
improvement of progress
tomorrow is shackled by the
mistakes of today”
“Excellent firms don’t believe in
excellence, only in constant improvement
and constant change”
THE LLOYD’S REGISTER GROUP
INTERTANKO Tanker Event 2009