Leading Safety Indicators
of Construction Incidents
MASHA 2K10 Safety & Health Conference
April 29, 2010
Cranberry Township, PA
Presented by Andrew Peters, Vice President, Corporate Safety
1
Agenda
 Parsons Risk Profile
 Leading Versus Lagging Indicators
 Parsons Incident Prevention Model
 Questions
MASHA 2K10.pptx
2
Design • Innovate • Build • Deliver
Andrew D. Peters
Vice President, Corporate SH&E
Who We Are
 Founded in 1944
 100% employee-owned
 ESOP, S-Corp
 Revenues exceeding
$3 billion
 In essence debt free
 Strong balance sheet and cash position
 10 continuous years of record earnings
 Deliver landmark projects across the globe
 Provide facility and infrastructure solutions
 10,000 employee owners
MASHA 2K10.pptx
4
Organization
Andrew D. Peters, Vice President
MASHA 2K10.pptx
5
Our Business Services
 Consulting
 Planning
 Environmental
 Project Services






Design
Engineering
Project Management
Program Management
Construction
Construction Management
 Operations & Maintenance
 Vehicle Inspection
 Wireless Communications Systems
 Parking
MASHA 2K10.pptx
6
Our Markets
 Large Public Institutions and Fortune 500
Companies and their International Equivalents
 Organized by Markets




Transportation
Federal Government
Water
Commercial/Industrial
MASHA 2K10.pptx
7
Transportation
 Aviation
 Bridges & Tunnels
 Rail & Transit
 Roads & Highways
We deliver specialized airside and landside enhancements—
on time and within budget—with no disruption to operations.
MASHA 2K10.pptx
8
Federal Government
 Energy
 Systems & Security
 Installation
Management
 Environmental
 Chemical
Demilitarization
 Applied Systems
MASHA 2K10.pptx
9
Water & Infrastructure
 Water Systems
 Wastewater Systems
 Ports & Harbors
Our program and construction management services
for the Southern Nevada Water Authority doubled the
water available to the people of the Las Vegas Valley.
MASHA 2K10.pptx
10
Commercial / Industrial
 Communications
 Education
 Environmental
 Healthcare
 Industrial
 Life Sciences
 Vehicle Inspection
Parsons successfully manages large, complex
programs such as expanding Alkermes’ production
capability in Chelsea, Massachusetts.
MASHA 2K10.pptx
11
Parsons 2008 – 2012
OUR VALUES:
 Safety
 Quality
 Integrity
 Diversity
 Innovation
 Sustainability
OUR BUSINESS:
 Provide high-value technical and management
solutions in our core competencies:
o Engineering and construction
o Systems and resource integration
o Project and program management
o Environmental service
OUR GOALS:
 Lead our industry in safety
 Continuously enhance the value of Parsons
Corporation
 Maintain sustainable growth consistent with the
demand in each market
 Grow consolidated net operating income and
sales at least 10% annually
 Maintain a strong balance sheet
OUR STRATEGIES:
 Provide responsive, high quality service to our customers
 Develop long-term relationships with customers who share our values
 Promote best-value solutions to our customers
 Pursue higher margin markets; divest businesses and markets inconsistent with
our goals
 Invest in employee training, redeployment, and leadership development
 Provide an ethical, challenging, diverse, rewarding, fun workplace
 Invest in processes and technologies that provide a strategic advantage
 Secure specialized skills and capabilities through acquisitions
 Pursue alternative delivery opportunities, including P3 and design-build
 Promote contracts with performance-based compensation to our customers
 Focus on larger and joint global business unit projects
 Geographically diversify our international presence
 Invest in business development and technology resources
 Continually enhance our work processes
OUR PERFORMANCE MEASURES:
 Safety record
 Quality audit results
 Customer satisfaction
 Annual sales, backlog, and earnings growth
 Cash flow and working capital
 Backlog conversion
 Share price
 Employee engagement
MASHA 2K10.pptx
12
“Our goal is injury-free project
execution. To achieve this vision, we
need for each and every Parsons
employee to become part of a safety
culture that we believe in, live, use,
and contribute to each and every day.”
— Chuck Harrington, CEO
MASHA 2K10.pptx
13
Zero Incident Techniques and
SHARP Management
 Demonstrated Management Commitment
 Staffing for Safety
 Safety Planning – Pre-project/Pre-task
 Safety Training and Education
 Worker Involvement and Participation
 Recognition and Rewards
 Subcontractor Management
 Accident/Incident Reporting and Investigation
 Drug and Alcohol Testing
MASHA 2K10.pptx
14
Project Safety Performance
Results of implementing best practices
Recordable Incident Rate
4.00
38 workers
per 1,000
3.50
3.84
3.00
2.50
2.00
1.50
2 workers
per 1,000
2.00
1.00
0.50
0.17
0.00
Jobs that
Implement
Most
Sample Mean
Jobs that
Implement a
Few
MASHA 2K10.pptx
15
Leading Versus Lagging Indicators
16
MASHA 2K10.pptx
17
Rearview Mirror
MASHA 2K10.pptx
18
Number of Fatal Work Injuries,
1992–2008*
MASHA 2K10.pptx
19
Number of Fatal Work Injuries, by State,
2008*
MASHA 2K10.pptx
20
Manner in Which Workplace Facilities
Occurred, 2008*
MASHA 2K10.pptx
21
Number and Rate of Fatal Occupational
Injuries, by Industry Sector, 2008*
MASHA 2K10.pptx
22
Parsons Incident Prevention Model
23
Parsons Incident Prevention Model
Factors for incident prevention (root causes)
Culture,
Perceptions,
Beliefs
Systems
Outcomes
Leading Metrics
Lagging Metrics
Behavior
(Action)
Incident
Physical
Conditions
Metrics
• Perception
Surveys
Metric: Relative
Culture Scores
• SH&E
• SHARP – 6
phases
1. Bus. Dev.
2. Startup
3. Admin/Design
4. Const./Field
5. TCO&D
6. Closeout
Metric: Self
Assessments
Metrics Categories
• Regulatory
compliance
• Audits/Inspections
Metric: Audit
Scores
• Observations &
Feedback loops:
People-based
safety program
Metric: Number
of Observations
vs. Goal
•
•
•
•
•
•
Field RIR
Office RIR
Field LWCR
WC Incurred Cost
TNOL
Auto Incidents
• Near Misses
Metric: 1 Near
Miss per 20,000
Manhours
Trailing Indicators
MASHA 2K10.pptx
24
2009 DuPont Survey Results
MASHA 2K10.pptx
25
2009 DuPont Survey Results (Contd)
MASHA 2K10.pptx
26
2009 DuPont Survey Results (Contd)
MASHA 2K10.pptx
27
Survey Results by Job Category
Parsons 2009
Q4
Q5
Q8
Q13a
Q13b
Q21
Q22
Q23
Q24
Q10
Q11
Q12a
Q12b
Q12c
Q15
Q16a
Q16b
Q17
Q18
Q18
Q20
Q20
Parsons Safety Perception Survey Results, December 2009
Copyright © 2008 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or
trademarks of DuPont or its affiliates.
Q1
Q2
Q3
Q6
Q7a
Q7b
Q9a
Q14
Q19
Parsons 2008
A: Management B:C:Middle
Management/Supervisors
Non-Exempt/Hourly Workers D: Professionals
A: Management B: Middle Management/Supervisors
Non-Exempt/Hourly
Workers D: C:
Professionals
A
B
C
D
Leadership
A
B
C
D
Leadership
Q1Priority individuals give to safety
Priority individuals give to safety
to safety
Q2Priority respondents think others give
Priority
respondents think others give to safety
Belief
that
injuries
can
be
prevented
Q3
Belief that injuries can be prevented
Q6
Extent that safety is built in
Extent that safety is built in
Q7a
Presence of safety values
Presence of safety values
Q7b
Influence of safety values
Influence of safety values
Q9a
Involvement in safety activities
Involvement in safety activities
Q14
Extent safety rules are enforced
Extent safety rules are enforced
Q19
Recognition for safety achievementsRecognition for safety achievements
A
B
C
D
Structure
A
B
C
D
Structure
Q4
Effect
of a drive for safety on business performance
Effect of a drive for safety on business
performance
Q5
Level
of safetyoccurs
where the cost-benefit break-point occurs
Level of safety where the cost-benefit
break-point
Q8
Extent lineformanagement
is held accountable for safety
Extent line management is held accountable
safety
Quality of safety rules
Q13a
Quality of safety rules
Extent that safety rules are obeyed Extent that safety rules are obeyed
Q13b
Knowledge of safety performance Knowledge of safety performance
Q21
Rating of the safety organization Rating of the safety organization
Q22
Rating of the safety department
Q23
Rating of the safety department
Satisfaction with the safety performance
of the organization
Q24
Satisfaction
with the safety performance of the organization
A andBActions
C
D
Processes and Actions
A
B
C
D
Processes
Q10
individuals
feel empowered to take action in safety
Extent individuals feel empowered toExtent
take action
in safety
Q11
Extent of safety training
Extent of safety training
Q12a
Frequency of safety meetings
Frequency of safety meetings
Q12b
Safety meeting attendance
Safety meeting attendance
Q12c
Quality and effectiveness of safety meetings
Quality and effectiveness of safety meetings
Q15
Thoroughness
in investigation of injuries and incidents
Thoroughness in investigation of injuries
and incidents
Q16a
Extent of involvement in safety audits
Extent of involvement in safety audits
Quality of safety audits
Q16b
Quality of safety audits
Rating of modified duty and return-to-work
systems
Q17
Rating of
modified duty and return-to-work systems
The
presence
of
off-the-job
safety
programs
Q18
The
presence
of off-the-job safety programs
The presence of off-the-job safety programs
Rating of
of the
the safety
safety of
of facilities
facilities and
and equipment
equipment
Q20
Rating
of the safety of facilities and equipment
Rating
MASHA 2K10.pptx
28
PIT consistently had the highest RCS scores followed closely by
PWI. Almost all Divisions have shown improvement in all factors.
Relative Culture Strength
Parsons
Corporate
GSS
Parsons International
Parsons International Middle East
Overall
2008
2009
66
74
54
67
68
63
73
63
73
0.16
0.16
57
47
55
63
0.17
0.25
0.25
72
76
75
70
0.08
0.09
0.09
64
63
59
67
79
67
84
82
76
0.11
-0.09
0.08
0.12
0.15
60
57
70
64
54
72
53
78
78
68
0.19
-0.07
0.11
0.23
0.26
82
90
87
84
78
88
81
95
88
87
0.07
-0.10
0.09
0.05
0.11
71
75
76
72
67
76
67
81
79
73
0.07
-0.11
0.07
0.09
0.09
Parsons
Parsons
Parsons
Parsons
Parsons
60
77
59
58
57
70
80
68
69
69
0.16
0.04
0.15
0.20
0.20
46
65
42
43
44
61
73
59
60
60
0.33
0.12
0.41
0.38
0.38
74
91
75
74
69
82
91
81
80
79
0.10
0.00
0.08
0.09
0.14
61
75
61
56
59
68
78
66
67
68
0.12
0.03
0.09
0.20
0.15
66
63
68
77
76
77
0.17
0.21
0.14
52
49
53
70
69
71
0.34
0.40
0.33
81
76
84
88
86
89
0.09
0.13
0.06
64
63
65
72
72
72
0.12
0.14
0.10
75
88
68
68
68
0.16
71
74
78
73
66
69
72
78
83
82
0.13
0.13
0.07
0.09
Parsons PIT
Parsons PIT Applied Systems Division
Parsons PIT Chemical Demilitarization Div
Parsons PIT Energy, Systems & Security Div
Parsons PIT Installations & Environment
71
77
67
58
68
0.20
0.21
0.08
0.26
Processes
2008
2009
66
71
55
60
66
62
72
62
62
65
62
63
66
Parsons PWI
Parsons PWI East
Parsons PWI West
0.10
0.13
0.16
0.19
0.33
Structure
2008
2009
77
83
69
87
81
70
79
70
79
Parsons Parcomm
Parsons Parcomm Buildings Division
Parsons Parcomm Life Sciences Division
Parsons Parcomm Technology Division
- Parcomm - Environmental and VIC Division
- Parcomm - Energy Division
PTG
PTG Aviation
PTG Bridge & Tunnel
PTG Rail & Transit Systems
PTG Road & Highways
71
70
73
0.11
0.24
Leadership
2008
2009
56
67
40
53
57
57
68
56
68
0.05
0.08
0.15
69
72
Parsons Safety Perception Survey Results, December 2009
Copyright © 2008 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
MASHA 2K10.pptx
29
Parsons Incident Prevention Model
Factors for incident prevention (root causes)
Culture,
Perceptions,
Beliefs
Systems
Outcomes
Leading Metrics
Lagging Metrics
Behavior
(Action)
Incident
Physical
Conditions
Metrics
• Perception
Surveys
Metric: Relative
Culture Scores
• SH&E
• SHARP – 6
phases
1. Bus. Dev.
2. Startup
3. Admin/Design
4. Const./Field
5. TCO&D
6. Closeout
Metric: Self
Assessments
Metrics Categories
• Regulatory
compliance
• Audits/Inspections
Metric: Audit
Scores
• Observations &
Feedback loops:
People-based
safety program
Metric: Number
of Observations
vs. Goal
•
•
•
•
•
•
Field RIR
Office RIR
Field LWCR
WC Incurred Cost
TNOL
Auto Incidents
• Near Misses
Metric: 1 Near
Miss per 20,000
Manhours
Trailing Indicators
MASHA 2K10.pptx
30
SHARP Management Roadmap
MASHA 2K10.pptx
31
SHARP Management Responsibility Matrix
MASHA 2K10.pptx
32
Project Managers Workflow Matrix
Design and Administrative Offices
* if needed
MASHA 2K10.pptx
33
Parsons Incident Prevention Model
Factors for incident prevention (root causes)
Culture,
Perceptions,
Beliefs
Systems
Outcomes
Leading Metrics
Lagging Metrics
Behavior
(Action)
Incident
Physical
Conditions
Metrics
• Perception
Surveys
Metric: Relative
Culture Scores
• SH&E
• SHARP – 6
phases
1. Bus. Dev.
2. Startup
3. Admin/Design
4. Const./Field
5. TCO&D
6. Closeout
Metric: Self
Assessments
Metrics Categories
• Regulatory
compliance
• Audits/Inspections
Metric: Audit
Scores
• Observations &
Feedback loops:
People-based
safety program
Metric: Number
of Observations
vs. Goal
•
•
•
•
•
•
Field RIR
Office RIR
Field LWCR
WC Incurred Cost
TNOL
Auto Incidents
• Near Misses
Metric: 1 Near
Miss per 20,000
Manhours
Trailing Indicators
MASHA 2K10.pptx
34
Office Safety Audit
MASHA 2K10.pptx
35
Parsons Incident Prevention Model
Factors for incident prevention (root causes)
Culture,
Perceptions,
Beliefs
Systems
Outcomes
Leading Metrics
Lagging Metrics
Behavior
(Action)
Incident
Physical
Conditions
Metrics
• Perception
Surveys
Metric: Relative
Culture Scores
• SH&E
• SHARP – 6
phases
1. Bus. Dev.
2. Startup
3. Admin/Design
4. Const./Field
5. TCO&D
6. Closeout
Metric: Self
Assessments
Metrics Categories
• Regulatory
compliance
• Audits/Inspections
Metric: Audit
Scores
• Observations &
Feedback loops:
People-based
safety program
Metric: Number
of Observations
vs. Goal
•
•
•
•
•
•
Field RIR
Office RIR
Field LWCR
WC Incurred Cost
TNOL
Auto Incidents
• Near Misses
Metric: 1 Near
Miss per 20,000
Manhours
Trailing Indicators
MASHA 2K10.pptx
36
Parsons EHS Dashboard
MASHA 2K10.pptx
37
2009 DuPont Survey Results (Contd)
MASHA 2K10.pptx
38
Near Misses Reported by Year Through Period 2
Number of Near Misses
600
506
500
PAR - 105
400
300
INT - 262
PIT - 82
200
126
100
PTG 40
35
43
2007
2008
0
2005
COR - 1
64
34
2006
PWI - 16
Field vs Office 2010
2009
2010
Near Misses Reported
Root Cause
Type of Incident
4%
Office - 42
Procedures
Compliance
29%
6%
Equipment
15%
22%
28%
Training
29%
Site
Conditions
27%
Field - 464
26%
14%
Not Aware of Surroundings
Improper Use of Equipment
Third Party Liability
Improper Porcedures
Poor Equipment
Other
MASHA 2K10.pptx
39
Parsons Incident Prevention Model
Factors for incident prevention (root causes)
Culture,
Perceptions,
Beliefs
Systems
Outcomes
Leading Metrics
Lagging Metrics
Behavior
(Action)
Incident
Physical
Conditions
Metrics
• Perception
Surveys
Metric: Relative
Culture Scores
• SH&E
• SHARP – 6
phases
1. Bus. Dev.
2. Startup
3. Admin/Design
4. Const./Field
5. TCO&D
6. Closeout
Metric: Self
Assessments
Metrics Categories
• Regulatory
compliance
• Audits/Inspections
Metric: Audit
Scores
• Observations &
Feedback loops:
People-based
safety program
Metric: Number
of Observations
vs. Goal
•
•
•
•
•
•
Field RIR
Office RIR
Field LWCR
WC Incurred Cost
TNOL
Auto Incidents
• Near Misses
Metric: 1 Near
Miss per 20,000
Manhours
Trailing Indicators
MASHA 2K10.pptx
40
Worldwide Total recordable rate slide
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
'98-99 '99-00 '00-01 '01-02 '02-03 '03-04 '04-05 '05-06 '06-07 '07-08 '08-09 '09-10
Premiums
MASHA 2K10.pptx
41
Worldwide Lost Workday slide
1.6
Worldwide Total Recordable Incident Rate
Lagging
Metrics
1.52
1.38
1.4
Worldwide
RIR
DuPont
World Class = 1.00 or less
______________________
_
1.2
0.95
1.0
Worldwide
Office RIR
2010 Target = 0.29
Worldwide
LWCR
0.8
Domestic
Workers’
Comp. Incurred
0.64
0.6
0.50
0.45
0.4
0.40
0.31
Worldwide RIR
0.2
0.0
2002
2003
2004
2005
2006
2007
2008
2009
MASHA 2K10.pptx
42
Change in Workers’ Compensation
Coverage slide
MASHA 2K10.pptx
43
Parsons competitors EMR slide
Lagging
Metrics
Worldwide Lost Workday Case Rate
0.8
0.7
Worldwide RIR
0.70
0.6
DuPont
World Class = 0.25 or less
______________________
_
0.52
0.5
Worldwide
Office RIR
Worldwide
LWCR
2010 Target = 0.07
Domestic
Workers’
Comp. Incurred
0.4
0.3
0.23
0.2
Worldwide RIR
0.17
0.10
0.1
0.06
0.09
0.05
0.0
2002
2003
2004
2005
2006
2007
2008
2009
MASHA 2K10.pptx
44
SH&E Core value Metric slide
Black and Veatch
Parsons
Bechtel
Heery International
Washington Group International
HNTB
Fluor
AECOM
Earth Tech
Jacobs Engineering
Flatiron Constructors
Parsons Brinckerhoff
Odebrecht
Tetra Tech
Kellogg Brown and Root
CH2M Hill
0.0
0.2
0.4
0.6
0.8
1.0
MASHA 2K10.pptx
45
2009 SH&E Achievements
5
New VPP Projects and Renewal of Pasco
120
National Safety Council Awards
25%
Reduction in RIR (worldwide)
45%
Reduction in LWCR (worldwide)
45%
Reduction in WC Total Incurred Costs
12%
Reduction in WC Claims
40%
Reduction in Auto Incidents
74%
Reduction in AL Total Incurred Costs
MASHA 2K10.pptx
46
Questions
MASHA 2K10.pptx
47