CEO – Page 9 – SafetyAtWorkBlog

BP releases internal Gulf disaster report

BP has released its internal inquiry report into the Deep Horizon oil rig disaster. The company has released an executive summary, the full report, a video and a press release. Not surprising there are multiple factors that combined to create the disaster but it is significant that BP stresses that ““multiple companies and work teams” contributed to the accident”. Clearly a major purpose of the media statements is to indicate that BP should carry the entire responsibility for the incident, a position it has consistently voiced.

The report requires a fair amount of analysis to identify the lessons and any lessons will need to be compared with any of the findings from the other investigations being undertaken. Also, BP has settled into its PR damage control process and careful analysis of the report and the media statements over the next few days in particular will provide much information on process safety, business continuity and media management.

Kevin Jones

Another Australia emergency organisation faces bullying claims

Emergency service organisations, like the military, are susceptible to accusations of bullying due to the hierarchical command structure on which they are based.

For decades this type of structure has been seen as a requirement for efficient emergency response or other activities under tight timelines and high expectations. It would not take much to perceive one’s supervisor saying “move it, move it, move it” or similar, over time as a repeated insult and, being repeated, an instance of bullying.

The Australian Broadcasting Corporation (ABC) is reporting on claims by the former president of the Metropolitan Fire Brigade Board (MFB), Adrian Nye, who was stood down in April 2010. The ABC says Nye has accused the MFB of having a culture of bullying.

CEO Graeme Fountain has called in KPMG to investigate Nye’s claims.

There is sufficient evidence to suggest that the hierarchical command structure is no longer compatible with contemporary expectations of respect, health, safety or wellbeing. Continue reading “Another Australia emergency organisation faces bullying claims”

An executive decision leads to over six deaths

“Don’t put all your eggs in the one basket”. The first time we hear such a saying is likely to be from our parents or our grandparents but it could equally apply to all the applications of risk management. Clearly someone at Sundance Resources forgot this wisdom when its board members boarded a plane in Africa to visit a mining site. The plane crashed and all on board died.

The remaining Sundance executives quickly acknowledged the error in media conferences shortly after the incident even though the decision was understandable. In safety and workplace parlance, the board took a “shortcut” in safety, an act that would have been soundly disciplined for most workers.

Everybody takes shortcuts at work and sometimes these shortcuts lead to injury or death. It is easy to say that the cause of an incident is a specific decision, the shortcut but it was not only the Sundance executive’s decision that contributed to the death. In this instance the board entered a plane that later fell from the sky. If they had made the same shortcut but on a different plane the outcome would have been very different.

Deaths always have a context to them and present a variety of “what-ifs” when we investigate. A specific combination of events/decisions/actions/shortcuts lead to a death. The Sundance shortcut was clearly the wrong decision, at the wrong time, in the wrong place and with the wrong mode of transport but there are more contributory factors that will become evident when the wreckage is fully recovered. Continue reading “An executive decision leads to over six deaths”

The Bhopal disaster should be remembered when considering what comes after the BP oil spill

As the BP/Gulf of Mexico oil spill dominates the American media, the rest of world has been noting a closure, of sorts, on the Bhopal disaster of 1984. Seven former Union Carbide executives have been sentenced to 2 years jail each over the disaster. The CEO, Warren Anderson, showed an appalling lack corporate leadership by leaving India and not facing the charges laid against him in India.

The disaster exposed half a million people to methyl isocyanate, killed almost 4,000 people, and changed the lives of millions. These changes continue today with birth defects, health problems and contaminated land.

Some media have noted a similarity in corporate responses to initial investigations and inquiries but there are more important lessons involving safety, corporate responsibility and social policy from the Bhopal legacy that should resonate with those American communities affected by the Gulf of Mexico spill. The mishandling of the aftermath of the Bhopal disaster has exacerbated the horror of that day which can accurately but heartlessly be described as a “process safety failure”.

These issues are tellingly described and reported in a highly-recommended series of radio programs produced by Radio Netherlands and broadcast on 19 June 2010.

Kevin Jones

Montara oil spill report will provide clues for handling BP inquiry

The Montara oil spill in the Timor Sea that lasted for three months in late 2009 was large but affected no countries directly and is certainly a long way from the Gulf of Mexico and BP. However there are enough similarities for considerable media attention to be focused on the investigative report into the incident that was handed to the Australian Government on 17 June 2010.

The Australian Resources Minister, Martin Ferguson, acknowledged the receipt of the commission of inquiry’s final report but will not be releasing it yet.

Greens Senator Rachel Seiwert has said:

“The release of all information available to date is essential for the development of new regulatory and environmental procedures…. We need to be better prepared to respond to future disasters in our precious marine environment.”

Seiwert has at least acknowledged the global context of the report:

“Halliburton is reported to have carried out cementing work on both the Montara well and the US Deepwater Horizon well in the Gulf of Mexico. The failure of this cementing has been linked in the media to both spills.”

Speculation is that the report will recommend a “single national regulator for off-shore drilling” according to the Australian Financial Review (AFR) on 19 June 2010 (p5. not available online). Continue reading “Montara oil spill report will provide clues for handling BP inquiry”

Off shore drilling safety will change forever

The ramifications for corporate America and particularly, the oil industry, from the Gulf of Mexico oil spill are becoming clearer. In his 15 June 2010, address to the nation, President Obama stated his financial and operational expectations of BP prior to his meeting the company’s CEO, Tony Hayward on 16 June.

In essence, BP will be required to fund compensation for the families of dead and injured workers and those who are suffering economic hardship as a result of action which the President described as “reckless”. The distrust of BP was evident by the compensation fund, which is likely to be billions of dollars, being administered by a third party.

But the BP spill has changed the way that oil exploration and extraction will occur in American waters. Continue reading “Off shore drilling safety will change forever”

A glimpse behind the CEO veneer

The Australian Financial Review published a brief profile of the 53-year-old CEO of the ANZ Banking Group, Mike Smith, on 22 April 2010 (page 23, not available online). The article ostensibly reported on an ambush and shooting that Smith experienced in South America in 2007 but it also revealed some of his attitudes to leadership and OHS.

Mike Smith stated that as a CEO of a large organisation

“…you really can’t have work-life balance”.

This is not to say that his staff cannot have such a benefit but it sends a message to all those would-be CEOs that personal safety, health and one’s family will be sacrificed if you reach the top. The implication is that work-life balance needs to be sacrificed on the way to the top although Smith may be describing his own pathway. Continue reading “A glimpse behind the CEO veneer”

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BP releases internal Gulf disaster report

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Another Australia emergency organisation faces bullying claims

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An executive decision leads to over six deaths

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The Bhopal disaster should be remembered when considering what comes after the BP oil spill

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Montara oil spill report will provide clues for handling BP inquiry

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Off shore drilling safety will change forever

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A glimpse behind the CEO veneer

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