Leading from the top in BP Steve Flynn Vice President, HSSE BP Group Safety and Operations What I’m going to cover • Our track record • Leading from the very top • Our Strategic approach • The way forward • BP’s leadership model • Summary 2 BP days away from work frequency rate – last 20 years 1.8 North sea disaster; Grangemouth incident 1.56 1.6 1.44 Safety in performance contracts 1.4 1.22 1.2 1.18 1.2 1 0.84 0.8 0.6 0.6 0.44 0.43 0.43 Advanced safety auditing BP Amoco merger 0.39 0.4 Texas City incident 0.27 0.25 0.19 Clear vision introduced ‘getting health, safety & environment right’ 0.2 0.13 0.10 0.09 0.08 0.11 0.08 0.07 Golden rules of safety 0 87 88 89 90 91 92 93 94 95 96 97 Measures Days Away From Work Case Frequency (DAFWCF) per 200,000 hrs 98 99 2000 2001 2002 2003 2004 2005 2006 2007 3 BP’s HSSE performance Workforce Fatalities non road related 30 Oil Spills greater 1 bbl road related 1200 25 1000 20 800 15 600 10 400 5 200 0 0 1999 1999 2000 2001 2002 2003 2004 2005 2006 2007 Recordable Injury Frequency 2000 2001 2002 2003 2004 2005 2006 2007 Integrity Management Incidents Reported High Potentials 80 Major Incidents 1.5 60 1 40 0.5 20 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 0 2004 2005 2006 2007 4 March 23, 2005 5 Leading from the very top The BP Group Operations Risk Committee The Group Operations Risk Committee (GORC) is chaired by Tony Hayward and meets monthly. It brings together our segment CEOs with senior functional expertise to oversee and build a foundation for consistent, safe, reliable operations. This includes: • • • • Incident analysis, learning and response Monitoring performance indicators Reviewing delivery of the Six-Point Plan Oversight of development and implementation of BP’s Operating Management System (OMS) • Oversight of HSE and Operations capability development • Independent Panel response and its integration into plans and OMS The GORC also model the expected leadership behaviours and sets the tone at the top of the organization for others to follow 6 Strategic model Performance & risk – through layers of protection to reduce the potential for major incidents and losses: The ‘Swiss Cheese’ Model − plant – engineering hardware, control systems, physical layouts Hazard − processes – management systems to identify, control and mitigate risks, and drive continuous operational improvement − people – capability in terms of Plant leadership skills, relevant knowledge and experience, and Processes the organizational culture People ‘Hard barriers’ are more reliable than deliver ‘soft barriers’, but all ultimately rely on Performance people Protective ‘Barriers’ Weaknesses or ‘Holes’ Accident 7 Strategic approach Sustainable Competitive Advantage Business specific Excellence Efficiency Neutral Business Value Destruction Basics & BP Requirements Legal Compliance Catastrophic Loss Significant Risk Mitigation Essentials 8 Strategic milestones – sustainable Immediate action Six-Point Plan Deep Embedding Aspiration Plant Temporary Accommodation Blow-down Stacks Major Accident Risk Operating procedures Integrity Management & Control of Work Processes Compliance Audit Actions ‘Getting HSE Right’ Management System Operations Competence Operating Management System (OMS) … sustained by the right organisational capability & culture World Class Operating Company People 2005 2011+ 9 The BP leadership model - Items related to imperatives identified in CEO 6-point plan 10 In summary… For BP, our journey is about: • getting the basics right, consistently • not just occupational safety but also process safety • developing and maintaining integrated and consistently delivered systems and processes which underpin learning and sharing • ensuring risks are owned and managed locally, in a sustainable way • developing well-trained, competent people and teams who have pride in what they do • creating and sustaining a world class operating culture, supported by a few clear and wellunderstood values and behaviours and an environment of continuous performance improvement… And most of all, it’s about leadership 11