Category: business

Vision statements = hypocrisy (mostly)

 I have experienced two situations recently which made me question the value of corporate mission statements.

Recently the CEO of an Australian company spoke about how safety was a core value and how committed to safety she was.   She is a recognised leader in safety and directly involves herself in safety management and meetings. However, her employees in the audience were shaking their heads because the safety culture she espoused was not as widespread through the company structure as she believed.

The other situation was a staff meeting I attended with a regional CEO and International CEO where they were unaware that employees in regional offices and undertaking shiftwork had not been integrated into the corporation. In fact the shiftworkers had not been informed of the CEO visits until the last minute.  The company has “integration” as a corporate value.

Leadership (a most dubiously-applied concept in my mind) and vision statements may “come from the top” but they do not flow by themselves to the four corners of a company. They must be worked on, almost as a full time mission.

Vision statements have been promoted in so many corporations that have fallen over through mismanagement that statements have become a bit of a joke, in most circumstances.   Nothing kills motivation quicker than hypocrisy.

(This also occurs in organisations that begin a program of corporate restructure and positioning, and the first item on the agenda is a “sexy new logo.)

It is important to remember that Enron’s motto was “Respect, Integrity, Communication and Excellence.”  If one thinks that Enron is an unfair corporate example, look at one’s own company statement and seriously ask yourself whether all elements of the company are operating to those standards.  Perhaps, someone needs to provide corporate morality audits.

Lastly, any vision statement must accept and mention that the principal aim of any company is to make money (a fact I learnt from Peter Sandman).  To omit this reality immediately shows that the statement is not grounded and is simply management spin.

Kevin Jones

The value of brevity in government submissions and business reports

In Australia, at the moment, there are several governmental inquiries that could involve safety management issues.  Submissions to inquiries can often be bloated with information that a review panel already knows or can be off topic.  Frequently, relevant but not essential information is included in the body of the submission where it could be just as easily included in an appendix.

Past experience in handling Cabinet submissions has indicated that a brief listing of the recommendations or requests is best, as this makes it much easier for the review panels to digest.  People tend to forget that their submission is going to be one of, perhaps, hundreds, and that brevity is highly valued in the public service (except perhaps in their own publications and reports?). 

This position on brevity is one that should also be applied to client reports concerning workplace safety.  Many consultants forget that their clients are already very familiar with their own workplace and don’t need to be shown “how to suck eggs”.

Kevin Jones

Engagement is Consultation re-badged

Recently an international business established an intranet discussion forum concerning “employee engagement”.  By and large, this is another example of business management twaddle.

Essentially, when one engages with another, there is discussion, a conversation and the sharing of ideas in a cooperative, positive manner.  In OHS circles this is called “consultation”.  By discussing issues, people learn the basics, they refine their understandings and, often, come to a consensus or a resolution.

“Engagement” is another word for what happens on a daily basis in workplaces everywhere.  What is bothersome is when a new management term is generated in order to, primarily, sell a new management book, and in a much lower priority, to provide a new perspective.

In the current edition of Australia’s business magazine, BRW, there is a discussion on engagement, (not available online).  Through an OHS perspective, interpret the following quotes about “employee engagement scores):

“About 40 per cent of employees were failing at the most basic level, saying they either didn’t know what was expected of them or didn’t have the tools to do it.”

OHS = consultation, job description, induction, supervision.

“Those in a leadership position now are taking advantage and redoubling their efforts around employee engagement.”

OHS =  leadership, safety culture

The article makes a useful distinction that an “engaged employee” does not equal a “happy employee”.

The BRW article does not, however, discuss the possible downsides of engagement.  There is a risk that benchmarking of engagement may applied inappropriately and, according to the CIPD:

“Research confirms however that there is a significant gap between levels of engagement found among UK employees and those that would produce optimum performance.  HR professionals need to recognise that engagement is a strategic issue that cannot simply be left to manage itself.”

Engagement is another tool for management but just how many tools are needed?

In short, a management system needs to talk with employees, listen to employees, and support employees.  Wow, how radical.  It can be that simple.

Kevin Jones

Cost of occupational injuries and illnesses rise

According to a report in the Australian Financial Review (page 5, not available online) on 14 April 2009, the costs of work-related injury and disease has increased to $A57.5 billion.  This represents 5.9% of the country’s gross domestic product, up from 5% in 2000-01.

Of perhaps more concern is the sectors of society which are estiimated to bear these increasing costs.  49% of costs are borne by workers, 47% by the community and 3% by the employers.  Even if the insurance costs were allocated to employers, this would only amount to 18% of the injury and diseases costs.

The figures from the report conducted by the Australian Safety & Compensation Council could justify the push by some in the OHS profession to move workplace safety into the area of public health.  Regardless, the spread of the cost should be borne in mind when OHS organisations lobby government for more support and attention.

Kevin Jones

BHP Billiton deaths – government intervention

The West Australian government has taken the extraordinary step of talking directly to the senior management of Australian mining corporation BHP Billiton about the recent spate of fatalities at BHP’s worksites.  The cynic would say that we now know the number of workplace fatalities that it takes to gain a Minister’s attention however, the fact that this high-level meeting is occurring is a clear indication of the severity of the issue.  It may also indicate just how effective a union safety campaign can be.  It is just regrettable the campaign is generated from multiple fatalities rather than preventive issues.

According to the Minister, Nick Moore 

“Mines inspectors will now issue prohibition notices to BHP under the Mines Safety and Inspection Act 1994 – basically a stop work notice – for any breach of work practices or work place conditions that may constitute a hazard to workers.”

Mr Moore went on to say, according to one media article, “…the policy would remain in force until he had seen the report of a Section 45 review currently under way into safety management systems at all of BHP Billiton’s Pilbara iron ore mine sites.” 

The article noted that

“The review, requiring independent engineering studies of BHP worksites to be carried out, is expected to be completed by April 30.”

BHP, meanwhile, has given guarantees of the following safety improvements:

  •          Reduce site access;
  •          Improve contractor management;
  •          Enhance existing strategies to prevent excess working hours;
  •          Move rail operations from the Mine Safety and Inspection Act to the Rail Safety Act;
  •          Enhance traffic management standards, and;
  •          Suspend all non-essential work outside daylight hours

Kevin Jones

Many workplace deaths for BHP Billiton

The Australian Workers Union are justifiably angry at the latest workplace death associated with BHP Billiton.   According to the company’s media statement on 19 march 2009

“We regret to inform that we have been advised by Mines and Port Development (a Joint Venture of Fluor and SKM), who manage our major construction activities, that there has been a fatal accident involving a John Holland employee at the construction site in Newman.”

The company’s own website provides the background to the union’s concern.

25 February 2009

It is with regret that BHP Billiton Iron Ore advises that an employee, Bob Blake, a track machine operator, aged 56, was fatally injured in a rail accident approximately 74km south of Port Hedland at 3.30am on Tuesday 24 February.

25 February 2009

It is with sadness that BHP Billiton Mitsubishi Alliance (BMA) advises that John Barker, an employee of Nixon Communications working at Blackwater Mine, was fatally injured in a motor vehicle accident at the mine late this morning.   

4 September 2008

We regret to advise that a fatality has occurred at BHP Billiton’s Yandi mining operations involving a HWE Mining employee.

26 August 2008

BHP Billiton Iron Ore regrets to advise that an incident occurred during the night at its Yandi mine site, which resulted in the death of an HWE Mining employee.

29 July 2008

BHP Billiton Iron Ore regrets to advise that an incident occurred at approximately 11.00am today at its Nelson Point operations in Port Hedland, which has resulted in the death of an employee.

17 January 2008

It is with deep regret that BHP Billiton reports that a fatality has occurred today at the Cannington silver, lead and zinc operation in north-west Queensland.

In the “Chairman’s Review” for 2008,  Don Argus wrote about the growth in demand for its products from the Asian region:

Our response has been to streamline our business to enable us to produce as much product as fast as possible within the non-negotiable framework of the highest safety and environmental standards.

The CEO, Marius Kloppers, states that even though the company has achieved its seventh consecutive year of “record attributable profit”

While we can report financial success, I regret to report we have not performed well on safety. In FY2008, 11 of our employees died at work. Many more lives will have been impacted, some forever, by these tragic and avoidable events. We have reflected deeply on what more we must do to reach our goal of Zero Harm. In FY2009, we are making even greater efforts to improve our safety performance.

As shown above, the FY2009 performance statistics are not looking too good.

In the 2008 Corporate Governance Summary, the Directors are lauded.

The non-executive Directors contribute international and operational experience; understanding of the sectors in which we operate; knowledge of world capital markets; and an understanding of the health, safety, environmental and community challenges that we face.

In its 2008 Annual Report under Risk Factors, safety is listed within assets.  It reads like an acceptance that contractors are not living up to their OHS obligations or BHP Billiton standards.  This rings hollow as contractor management should be an area that a company of such size, resources, longevity and experience, manages in an exemplary fashion.

Some of our assets are controlled and managed by joint venture partners or by other companies. Some joint venture partners may have divergent business objectives which may impact business and financial results. Management of our non-controlled assets may not comply with our management and operating standards, controls and procedures (including health, safety, environment). Failure to adopt equivalent standards, controls and procedures at these assets could lead to higher costs and reduced production and adversely impact our results and reputation.

Later in the Risk Factor chapter:

Despite our best efforts and best intentions, there remains a risk that health, safety and/or environmental incidents or accidents may occur that may negatively impact our reputation or licence to operate.

The company is active though.  It has a Code of Conduct that applies to everyone, including contractors.  In it there is a quick test:

If you are in doubt about what to do or whether to speak up, it may help to do the Business Conduct Quick Test by asking yourself some simple questions:

  • The values test: Does it fit with the values in our Charter?
  • The safety test: Could it directly or indirectly endanger someone or cause them injury?
  • The law test: Is it legal and in line with our policies and standards?
  • The conscience test: Does it fit with my personal values?
  • The newspaper test: If the story appeared in the paper, would I feel comfortable with the decision?
  • The family test: What would I tell my partner, parent or child to do?
  • The ‘feel test’: What’s my intuition or ‘gut feel’? If it ‘feels’ bad, then it probably is bad!

Failing any of the above ‘tests’ indicates that you need to talk with someone about the concern you have.

It’s not that BHP Billiton seems to have fallen into a heap in the last couple of years.  Following a major explosion in 2004 at its remote Boodarie Hot Briquette Iron (HBI) plant in Western Australia, it was fined $200,000 plus costs for “failing to provide and maintain a working environment in which employees were not exposed to hazards.”   The explosion killed one worker and injured several others.

The court case revolved around the May 2004 explosion at the Port Hedland Boodarie HBI plant where one man died, and others received severe burns.

The prosecution case was that BHP Billiton undertook two activities, with the potential to cause an explosion, together without a proper risk assessment. This was considered to be a serious and substantial breach of the obligation to provide and maintain a safe working environment.

There is much more OHS performance information available at the BHP Billiton website but it is worth ending this post with the OHS statement included in the Code of Conduct:

BHP Billiton is committed to achieving leading industry practice in health and safety.

In all cases, we will aim to meet or exceed applicable legal and other requirements, as we believe that all accidents and occupational illnesses and injuries are preventable.

Our priority is to ensure that all our people – regardless of where they work or what they do – return home safely.

Kevin Jones

OHS and Corporate Responsibility in Asia

In 2000, Melody Kemp was interviewed for Safety At Work magazine about her experience monitoring Western corporations’ workplace safety in Asia. Below is an extract of that interview.

In 2000, Melody Kemp was interviewed for Safety At Work magazine about her experience monitoring Western corporations’ workplace safety in Asia.  Below is an extract of that interview.

The full interview is available by clicking the HERE.pages-from-2i5-melody-kemp-interview

Recently you were part of an international OHS inspection team in Indonesia. Can you tell us about that?

I guess the reason I became part of the team was that I was known to the social research group that we were working with.  First, Reebok, who we were working for, put the job out for tender, which was actually quite unusual.  Normally the other shoe companies tend to elect an international consulting accounting firm like Price Waterhouse or Ernst Young.  

The woman who took over the human rights job used to work for the Asian Foundation and she had a totally different set of beliefs.  She had a background in social activism and human rights, so she was interested in a different approach.  Being as independent as they could be they decided to take this opportunity. They subcontracted to a prominent social research group who have worked for World Bank and have a lot of status.

Also, they were all Indonesians while I was the only foreigner on the team but I also speak Indonesian.  A major factor was that we were all familiar with the language and culture.  They needed an OHS person, they preferred to work with a woman, and I was the only woman they could find in Indonesia with that mix of skills. 

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