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BP, safety culture and integrity management

Tom von Aschwege has provided SafetyAtWorkBlog with a long article that was intended as a comment on recent articles concerning the safety culture of BP. The comment deserved to be an article in order to provide more prominence to von Aschwege’s views. Links, where appropriate, have been added and format has been tweaked.

“I came by Ross Macfarlane’s article totally by accident. I regret to say that I completely agree with him, because I have made some of the same, or very similar observations. I too am an ex-BP employee, and I too have a strong sense of dismay at what is occurring in the Gulf of Mexico.

Prior to retiring from BP in 2009, I worked in Integrity Management roles for 6 years in the BP deepwater Gulf of Mexico (GoM) organization. In those 6 years we put massive amounts of time and effort into improving Integrity Management (IM) processes and practices for GoM operations – even more so after the 2005 Texas City accident, Thunder Horse listing incident, and Alaska pipeline failure. I am thoroughly convinced that BP has done more and accomplished more in this area overall than any other GoM operator. Yet somehow these things still happen in BP operations, and I wonder how that can be. How can BP be so unlucky, and other GoM operators, with far fewer technical resources and knowledge, not have this happen to them? Continue reading “BP, safety culture and integrity management”

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”

Safety leadership and change through informal networks

Australia is behind in many things and in front of the rest of world in others. A recent visit by Jon Katzenbach, senior partner with Booz & Company, to Australia indicates that we are lagging on the issue of organisational change.

According to an article in the Australian Financial Review (AFR) on 11 May 2010, Katzenbach talks about changing people’s behaviours in companies by using informal networks and identifying “pride builders”. The article is not available freely online but the core elements of the article reflect Katzenbach’s thoughts in a 2007 article in Fortune magazine.

Katzenbach discusses the frustration of the CEO Of Bell Canada. Michael Sabia had tried to change the behaviour of his customer relations staff with top-down leadership techniques but they weren’t working. Bell Canada needed to look at leadership in a different way and found that there were people in the organisation who staff admired, who instilled a sense of pride in other employees. As a result behaviours changed, sales and profits increased. Continue reading “Safety leadership and change through informal networks”

A personal insight into BP and the corporate approach to safety

Ross Macfarlane is a regular reader of SafetyAtWorkBlog and an active safety professional in Australia. Below he provides his perspective on BP’s approach to safety as an ex-employee [links added]:

As an ex-BP employee I am again feeling a strong sense of dismay at what is occurring in the Gulf of Mexico. The fact that BP appears to be deliberately distancing itself from Deepwater is a further shift from the radical openness policy that prevailed up until the Texas City disaster in 2005.

Prior to Texas City, BP was in the thrall of its charismatic CEO (then Sir John, now Lord Browne,) but since then, it seems to me, it struggles with its identity and its corporate culture. In 2000, when I became a part of BP with Castrol, I was struck by what I saw as a “Cult of Lord Browne” – Continue reading “A personal insight into BP and the corporate approach to safety”

Where’s the Sarbanes-Oxley for workplace safety?

In 2002, after several corporate collapses, the United States government signed in the Sarbanes-Oxley Act which was intended to establish business practices on accounting and auditing among other aims. The Western world watched the introduction of this legislation and echoed many of the requirements in their own legislation and corporate oversight agencies.

It is likely in the wake of the global financial crisis that the United States (and Europe to a lesser extent) is entering another wave of corporate regulation or interference, depending on one’s politics.

These laws introduced substantial change to the management of businesses, the disclosure of information and the role of corporate executives. When will this type of change include occupational safety and health?

Firstly, the United States’ safety professionals and regulators need to accept that their system of OHS legislation and enforcement is not “world’s best practice”. There are major deficiencies in high-risk organisations and a misunderstanding of safety obligations at the shopfloor level. These problems exist partly because of the structure and population of the country itself and also because there is so much baggage in its legal system that new perspectives in law are difficult to imagine.

A significant change in OHS law outside the United States is the issue of personal accountability for safety-related decisions. There are few who complain about the jailing of CEOs and executives for the loss of money (their own and that of others) but there is a real barrier to jailing those same people when their management decisions led to a loss of life. Continue reading “Where’s the Sarbanes-Oxley for workplace safety?”

Post-Disaster PR/Risk Management – Upper Big Branch

A regular SafetyAtWorkBlog reader emailed in a comment this morning that we believe is justified as including it as a post itself. The Upper Big Branch Mine disaster is out of the news outside of the United States but as the Australian reader shows below, there are important lessons from how this disaster occurred and its aftermath as there is in most disasters. What needs to occur is for the issues to continue to be discussed and lessons applied. Some links in the post below have been added.

“I’ve been following the Upper Big Branch Mine disaster West Virginia, in which 29 miners died from an explosion that occurred on 5 April 2010. It appears that the explosion occurred due to a build up of methane and coal dust in the mine. Records show that, in the weeks leading up to the explosion, some miners had expressed fears for their lives to their families. One left a note for his family. To my thinking it reads like a suicide note. Continue reading “Post-Disaster PR/Risk Management – Upper Big Branch”

Harmonisation strategy will fail and legal costs for OHS will increase

The Australian Government’s plans to harmonise the country’s OHS legislation will fail. In the Australian newspaper on 6 May 2010 the president of the Safety, Rehabilitation & Compensation Licensees Association, Dean Stone, said

“Harmonisation was aimed at having the same law in force across the country but it is simply not going to be able to do that… Each of the companies moving back to the harmonised schemes will need more staff merely to comply with the different approaches.” Continue reading “Harmonisation strategy will fail and legal costs for OHS will increase”

Category: executives

BP, safety culture and integrity management

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Leadership starts with the truth

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Safety leadership and change through informal networks

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A personal insight into BP and the corporate approach to safety

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Where’s the Sarbanes-Oxley for workplace safety?

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Post-Disaster PR/Risk Management – Upper Big Branch

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Harmonisation strategy will fail and legal costs for OHS will increase

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