Lead to Succeed 28th January 2014 Gerry Moy Agenda • Background • Lessons from Safety Incident • What are we doing strategically that’s different • Questions Main presentation title can sit on two lines With a further description underneath Agenda • Background • Lessons from Safety Incident • What are we doing strategically that’s different • Discussion Main presentation title can sit on two lines With a further description underneath Babcock International Group: In Brief The UK’s leading engineering support services organisation Headquartered in London Employing a workforce of Delivering circa c.26,000 skilled personnel 600 services across six continents Managing customer assets currently worth over £40 billion Annual Revenue over £3.2 billion Order book circa £12 billion FTSE 100 Established in1891 company listed on London Stock Exchange www.babcockinternational.com A strong history of revenue growth Revenue 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 3243.5 3070.4 2703.2 * 1923.4 1915.2 1560.8 993.4 838.3 732.1 438 377.9 £M * VT Group acquisition www.babcockinternational.com Strategy and Objectives Group Strategy • We are the UK’s leading engineering support services company. Our objective is to develop from this position and grow in both the UK and overseas, so delivering superior and sustainable returns for our shareholders. Group Strategic Objectives In order to achieve this, we will focus on the following strategy: • Leading market positions • Preferred customer characteristics • Customer focused, long-term relationships • Integrated engineering and technical expertise • Balancing risk and reward • Excellent health and safety record www.babcockinternational.com What does Babcock do? www.babcockinternational.com Customers of our Group include: Teach Vital Skills (Education & Training) Manage Critical Assets (Infrastructure & Equipment) Deliver Complex Programmes Cavendish Nuclear (Programmes & Projects) www.babcockinternational.com Ongoing relationships Our long-term relationships with customers deliver value for both parties 1993 1997 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Today www.babcockinternational.com Case Studies: Rail • • • Network Rails’ largest conventional track renewals contractor, with circa 50% of the market Renewing the country’s vital railway network across Scotland, the North West and East of England Finished top of Network Rail’s National Contractor League Table for the last two years Paisley Canal Electrification (PaCE ) project • • • An award-winning collaborative electrification project which has set the standard for rail project delivery in Scotland Five miles of track successfully delivered in just 20 weeks – three weeks ahead of the original programme Delivered increased train capacity and improved passenger experience at a cost 60% less than originally budgeted Main presentation title can sit on two lines With a further description underneath Network Rail http://www.safety.networkrail.co.uk/ Main presentation title can sit on two lines With a further description underneath Agenda • Background • Lessons from Safety Incident • What are we doing strategically that’s different • Questions Main presentation title can sit on two lines With a further description underneath Start of shift machines under control? Main presentation title can sit on two lines With a further description underneath 2-3 M lifting of CWR rail using sleeper grab banned 2005 Main presentation title can sit on two lines With a further description underneath Supervisor? Main presentation title RCI Disabled can sit on two lines With a further description underneath Exclusion zone? Main presentation title can sit on two lines With a further description underneath Are we learning…………….? “Familiarity with procedures to point of complacency” “Ineffective inspection regime” “Demand, perceived or real, to prioritise production over other matters including safety” “Vulnerability to human error” Main presentation title can sit on two lines With a further description underneath Piper Alpha – 25 years ago The sobering reality is to recognise that the failings identified in the Cullen Report which investigated the disaster, have the potential to cross all industry and geographical boundaries. Irrespective of the views held, the reality is that we should not close our eyes to the potentially detrimental effects of complacency, overfamiliarity, failure to heed warnings from the workforce and ineffective inspection regimes. Such issues are valid in all industries and work locations. Main presentation title can sit on two lines With a further description underneath Lessons from Hope Incident • Key Performance Indicators • Cultures & Behaviours • Risk Identification • Fatigue Management • Safety Responsibilities Main presentation title can sit on two lines With a further description underneath Accident Ratio Year end position 12/13 ? 4(1) 7(3) 63(30) 829 Fatality Major Injury (RIDDOR) Over 7 day Injury (RIDDOR) Minor Accidents Close Call Statistics show performance is consistent with Main presentation title last year’s level can sit on two lines With a further description underneath (Contractors’ injuries in brackets) 1. Key Performance Indicators • Ensure that you have appropriate KPI’s to measure performance • Test these, objectively and regularly • Understand and act on trends and findings • Review the effectiveness of existing tours and inspections process and investigate the proposal to set up a team of dedicated site inspectors/auditors who do nothing but visit sites, comment on safety and draw the site leader’s and management’s attention to poor behaviour / bad practices / unsafe issues Main presentation title can sit on two lines With a further description underneath 2. Culture & Behaviours • • • • • • • Current training programmes, and competency assessments, are not enough in themselves More thought and effort is required to measure and change culture Complacency led to erosion of standards and good practice On wider investigation there were areas where good practices and adherence to rules were shown – inconsistency across company Zero tolerance applied to knowingly breaking rules. Especially life saving rules – A “Just Culture” can/must also have consequences! In conjunction with Network Rail undertake a formal industry wide investigation into the behavioural and cultural issues that impact on delivery activities and are underpinned by the perception that “production is king” and “challenging unsafe acts is career limiting” Main presentation title can sit on two lines With a further description underneath 3. Risk Identification & Management • • • • Risk management is not a cut and paste exercise Risks awareness and assessment should be done progressively through project life cycle with a focus on the planning stage If point of work assessments are allowed during work, then the application and checking of this process needs to be rigorous Engineering trains were usually late on site. Contingency plans were not clear what actions to take. On the night trains were 1 hour late. Main presentation title can sit on two lines With a further description underneath 4. Fatigue Management Position Employer Risk Score on 07.03.13 % Increase in likelihood of having an accident Signalling Technician Babcock 2.34 134 % MC Morsons 2.10 110 % RRV Operator Quattro 2.70 127 % Signalling Technician Babcock 1.07 7% Main presentation title can sit on two lines With a further description underneath Signalling COSS Babcock 1.30 3% 4. Fatigue Management • The management of fatigue needs to be more effective (In Babcock) • Current tools may not be user friendly • Review roster programme against bar chart deliverables using the HSE Fatigue Risk Management Tool to develop management arrangements to control staff fatigue Main presentation title can sit on two lines With a further description underneath 5. Safety Responsibilities • • Clear definition of safety responsibilities are required Although important on site, needs to be understood right through organisation Main presentation title can sit on two lines With a further description underneath Post Incident - Trends 25 21 20 20 15 10 Close Calls 9 8 5 0 8 11 9 Incidents 4 Main presentation title can sit on two lines With a further description underneath March April May June AFR Performance Main presentation title can sit on two lines With a further description underneath Agenda • Background • Lessons from Safety Incident • What are we doing strategically that’s different • Questions Main presentation title can sit on two lines With a further description underneath “Lead to Succeed” - Aim To analyse and make recommendations to improve leadership and management behaviours and practices to ensure they deliver the level of business operational performance required within a successful and high achieving private sector rail company. Main presentation title can sit on two lines With a further description underneath In partnership with What We Asked The Depot To Do • • • • Help to establish Leadership Excellence throughout the business Determine the culture of shared values and norms within Preston Depot and its impact on its systems and approach to leadership, identify shortfalls and initiate interventions and solutions. Determine the necessary leadership competence in cooperation with supervisory and management personnel responsible for work-site planning and delivery, identify shortfalls and initiate interventions and solutions. Identify and analyse the management systems (policies, processes, procedures and practices) and resources needed for the successful delivery of operational work-sites and their application throughout the depot, identify shortfalls and initiate interventions and solutions. Main presentation title can sit on two lines With a further description underneath In partnership with The basic Model Policy, Process, Procedure, Practice Management Shared values & accepted norms Culture Skills & Behaviour Leadership Operational Performance (Safety & Production) Main presentation title John Kotter’s Model can sit on two lines With a further description underneath In partnership with What We Did Main presentation title can sit on two lines With a further description underneath In partnership with Culture Quick Win Readily Won Develop to Win Findings & Aggregated Solutions Safety Finance Cooperation Evolution Safety Built into Plans Commercial Inclusion Job Status Reviews Management Support Plan Sponsors’ Mtgs Tactics Suggestions & Awards The Babcock Way Safety Behaviours COSS Action Plan Statistics: 9 findings 18 recommendations Main presentation title can sit on two lines With a further description underneath In partnership with Recommended External Requirements Critical Impact PD & NWR Partnering Workshop Behavioural Safety Sessions Re-Training of COSSs Revised First Line Leader Course Snr Depot Management Leadership Programme Mid-Management ILM Training Course Mid-Management ILM Training Course • BR Track Senior Team; PD SRM; PD RMs • Perfect Process; Commercial; Sponsor Mtgs; Workbank; NDS; Plant; Change Control; Alignment; Design • All PD Staff • Internal PSI training; Safety Day sessions; On-Track coaching of leaders • Current BR COSS trained personnel & consider sponsoring Agency COSSs • Briefing; Challenging; Assessment • Supervisors, Gangers & SIT • Active Safety Leadership • Ops Managers; SRM, RMs • Setting Objectives; Performance Management; Active Leadership; Track & Monitor • SMs • ILM Accredited Role Base Capability Training Main presentation title can sit on two lines With a further description underneath • SMs • ILM Accredited Role Base Capability Training In partnership with Leadership Quick Win Readily Won Develop to Win Findings & Aggregated Solutions Reaction Delegation Motivation Comms Workbank Turbulence Mid-Term Vacuum Leadership Time Whiteboard Mtgs On-Site Teamwork Gaps & Duplication BR versus Agency Men Briefings & Handovers Low SM Morale NWR Client Criticism Statistics: 13 findings 21 recommendations PD Vision & Floor Chats Main presentation title can sit on two lines With a further description underneath Safety Comms & EC In partnership with Safety Lens Main presentation title can sit on two lines With a further description underneath Critical Next Steps 1. A detailed development action plan within Preston Depot 2. The design & delivery of specific development activities with Preston Depot 3. The transplant of the flagship L2S initiative to the next Babcock Rail Depot Main presentation title can sit on two lines With a further description underneath In partnership with Discussion Main presentation title can sit on two lines With a further description underneath