Does corporate leadership equate to political leadership?

Can a country be run in a similar way to running a business?  Does corporate leadership equate to political leadership?  It would be possible to find examples in support of both these questions and as much evidence to counter them but the contextual difference is important to note when considering leadership in general.

A crucial difference in the two sectors is that the corporate executive or CEO must operate to the satisfaction of the shareholders, regardless of the humanistic and social veneer applied.  A politician or a Prime Minister must serve for the benefit of the people, regardless of the political views held as this social obligation originates with the public office.  Politicians have wriggle room not afforded to CEOs because not all the citizens subscribe to the same values.  In the corporate world there is a clearly visible commitment to capitalism, a clarity not possible in the political world.

At the moment in England, it seems that the newly elected coalition government is starting to prepare for a social capitalism – capitalism with a human edge.  The path to economic restabilisation will be difficult and, according to the newspapers on 8 June 2010, the government is set to call on the services of the former CEO of BP, Lord John Browne.

Browne has graced the pages of the SafetyAtWorkBlog twice previously and not in flattering terms.  One writer said Browne:

“…. was admired by his peers but not as much as he was by himself….” [who] “…As CEO … surrounded himself with sycophants and yes-men enshrouded in a cloud of corporate hubris.”

Continue reading “Does corporate leadership equate to political leadership?”

A wicked OHS problem in more ways than one

A new survey on CEO attitudes to safety has been released by Peter Wagner & Associates entitled “Safety – A Wicked Problem, Leading CEOs discuss their views on OHS transformation“.

There is some interesting information in report but Wagner is being generous in the report’s title.  There are some CEOs who seem knowledgeable on safety management who may be “leading”, but there is at least one participant who would not know safety from clay. Continue reading “A wicked OHS problem in more ways than one”

“We will trust but we will verify” – upcoming lessons from the Gulf of Mexico

The mass media is full of reports on legal action being taken on behalf of shareholders in BP over the continuing oil spill from the former Deepwater oil rig in the Gulf of Mexico.

An Australian video report was broadcast on 25 May 2010 and a composite article has appeared in The Australian on 26 May 2010 as well as elsewhere. Many outlets are mentioning the law suit (Southeastern Pennsylvania Transportation Authority and Robert Freedman v Anthony B Hayward et al, Court of Chancery for the state of Delaware, No. 5511) but no details of the suit are publicly available at the moment.

Although safety is mentioned as one of the bases for the suit, it is likely that environmental impact will get prominence over occupational safety and that impact on stock value will be of the most concern.   The shareholder outrage mentioned in some of the articles seems to focus mostly on the financial impact on BP share value rather than any moral outrage on environmental impact or dead and injured workers.

BP CEO Anthony Hayward has acknowledged the substantial  “reputational risk” but his comments are almost always reported surrounded by financial bad news.   Continue reading ““We will trust but we will verify” – upcoming lessons from the Gulf of Mexico”

Integrating safety in Lean/Six Sigma

At the recent Safety In Action Conference in Melbourne, Sia Evans was scheduled to speak about integrating safety into Lean/Six Sigma.   The management processes were known to me but I had not associated them with OHS management so her blending of the two was intriguing.

I arranged an interview with Sia a couple of weeks prior to her presentation having met her briefly some time before.  As we were having coffee on a balcony in sunny Melbourne we discussed a broad range of issues including the cultural impacts that Sia’s approach had achieved for her employer, Computershare.

She also showed how occupational health and safety can be improved in a workplace by not talking about occupational health and safety.  Sia’s training programs instilled the importance of safety in employees without some of the baggage that OHS training feels obliged to include.

The interview has been edited into a podcast that can be accessed below.

Audio Player

Please let us know of any issues or thoughts the interview may have raised and I will ask Sia to respond.

Kevin Jones

Looking for the causes of workplace harm can change one’s world view

The New York Times reported on 17 May 2010 that psychologists have started considering the causes of workplace stress.  About time!

The report says that

“Employees are unhappy about the design of their jobs, the health of their organizations and the quality of their managers..”

and that unhappy workers have a high risk of heart attacks and depression.

The article is principally an interview with the author of a new personnel management book that identifies that performance reviews are a generator of unhappiness and stress.  This concept has been circulating for some time and goes part way to making workplaces safer.

Job design, mentioned above, can be broadened to include how people are managed.  Personnel management and human resources (HR) are a crucial element of any business but the NYT article indicates a growing realisation that the foundations of this management, how jobs are designed, have generated some of the hazards that HR is now tasked to control. Continue reading “Looking for the causes of workplace harm can change one’s world view”

Leadership starts with the truth

Guest contributor Jim Ward writes:

Interested observers of past OHS failures would do well to pay close attention to the insights of former BP employee Ross Macfarlane in the SafetyAtWorkBlog –  A personal insight into BP and the corporate approach to safety.

His erudite observations of some of the underlying issues surrounding BP’s succession of calamities during the noughties and the company’s subsequent struggle to come to grips with the implications for its brand, culture, ethics and self perception are rare.

They are the sort of insights not usually captured during a formal root cause analysis of an OHS disaster.  Irrespective of who is found to be right and who is wrong some things just don’t help when it comes to trying to achieve a safe workplace.  But, Macfarlane’s insights do.

Macfarlane’s apt description of the “Cult of Lord Browne” is given further weight by the erstwhile CEO’s own account of his life and times as the head of the oil giant in his memoir Beyond Business.

In my view Browne is a narcissist.  In his book he portrays himself as

“a visionary leader who transformed a lacklustre organisation into one of the world’s biggest, most successful and admired companies”.

My take on it is that he was admired by his peers but not as much as he was by himself. Continue reading “Leadership starts with the truth”

Mining safety conference is shadowed by taxation debate

As there was in the marriage of Prince Charles and Lady Diana, there is a third member in the relationship at the New South Wales Mining Council (NSWMC) conference that is being held in the Hunter Valley this week – the Government’s response to the Henry review into Australia’s taxation scheme.

The CEO of NSWMC, Dr Nikki Williams has been interviewed repeatedly at the conference with workplace safety being the opening line from reporters before asking about Henry.  Only 24 hours after the release of the Government’s response very little detail can be expected from an interview.  By lunchtime Williams’ responses were polished as she outlined the potentials – mine closures, economic damage to regional towns……  The reality of the taxation changes to the mining sector is not really going to be understood for several more days.  Any direct impact on safety is highly unlikely.

Sadly safety is not getting much consideration in the media discussions however there are potentials in this conference that could extend well beyond the mining industry. Continue reading “Mining safety conference is shadowed by taxation debate”

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