“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”

Gods and Leaders – the fantasy distraction of the safety profession

For years, safety professionals have whinged about their profession and their skills not receiving the attention of Chief Executive Officers and board members.  They take some solace in the occasional missive that executives understand leadership and, by extension, safety leadership but the reality is that OHS professionals do not understand CEOs.

CEOs are Olympian Gods and OHS professionals live amongst the crowd of citizens in the valleys.  Occasionally a God will go slumming and have sex with one of us but it does not mean that they respect us or, even that they will remember our name.  If we are lucky, they may remember that we were welcoming.

CEO attitudes were discussed in the Australian Financial Review on 21 May 2010, in an article about corporate governance Continue reading “Gods and Leaders – the fantasy distraction of the safety profession”

The Astonished Manager: Not in my wildest dreams

Dr Yossi Berger of the Australian Workers Union has been reading some of the debate in SafetyAtWorkBlog and offered the article below for publication.  He said to SafetyAtWorkBlog

“…in relation to BP’s OHS catastrophes and comments about their management style, their managers and this aspirational, easily-bandied-about notion of workplace culture.  Two things stimulated me to put together this comment below: first, on the back of some 2000 workplace inspections across Australia and some internationally I have not detected this thing called ‘workplace culture’ other than as a cheap metaphor and ploy to manipulate; even if you chose to think of this phenomenon as ‘shared values and how we do things here’.   Secondly, there’s terrible and dangerous bullshit going on in relation to ‘personality cult’, ‘disconnect’ (‘no one told me’), and ‘it couldn’t happen here because we care’.”

Yossi Berger in Beaconsfield Mine

Continue reading “The Astonished Manager: Not in my wildest dreams”

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?”

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