Selling Safety to Management!

1005
OR-OSHA 107 Selling Safety to Management

Trainer Intro Page

OR-OSHA 107 Selling Safety to Management

Goals

Gain a greater awareness of the tools and methods to sell safety to management. Understand and apply the seven steps of an effective recommendation process.

OR-OSHA 107 Selling Safety to Management

Form Teams
Introductions Elect a team leader Select a team spokesperson Everyone is a recorder

OR-OSHA 107 Selling Safety to Management

The Safety Communications Process

The primary communication goal of a recommendation is to Persuade ________________ because it asks someone to do something.

OR-OSHA 107 Selling Safety to Management

Factors that influence the success of a recommendation

Steak
Content

Style
Presentation

Sizzle
Motivation

OR-OSHA 107 Selling Safety to Management

What kind of change does a recommendation promote?

Recommendation Thoughts Attitudes Beliefs Feelings

What the decision-maker decides to do: Approve Revise Revisit Disapprove

OR-OSHA 107 Selling Safety to Management

Pushing the Right Buttons

Correcting hazards is generally viewed Immediate by employees as an ___________ need.

Correcting hazards is generally viewed planned by management as a _________ event.

OR-OSHA 107 Selling Safety to Management

What motivates the employer to act?

Knowing what motivates lets you target and appeal to needs.

OR-OSHA 107 Selling Safety to Management

The Legal Imperative

Fulfill obligation to government to comply with the law.

Whats the message?

What benefits would you emphasize?

OR-OSHA 107 Selling Safety to Management

10

The Financial Imperative

Fulfill obligation to stakeholders to operate business in a fiscally prudent manner - at a profit. Whats the message?

What benefits would you emphasize?

OR-OSHA 107 Selling Safety to Management

11

The Social Imperative

Fulfill obligation to be socially responsible as a corporate citizen. Whats the message?

What benefits would you emphasize?

OR-OSHA 107 Selling Safety to Management

12

The challenge is to transform the perceived planned activity into an immediate need!

OR-OSHA 107 Selling Safety to Management

13

Safety Costs at XYZ INC.

OR-OSHA 107 Selling Safety to Management

14

Scenario #1: Worried in the warehouse

Scenario #2: Faint in fabrication Scenario #3: Help in the Hole

OR-OSHA 107 Selling Safety to Management

15

Steps in Preparing the Recommendation

Today we'll take a look at nine important steps of an effective safety recommendation process. Step 1: Identify the Problem Step 2: Write a Descriptive Problem Statement Step 3: Gather Information About the Problem Step 4: Determine the Cause Step 5: Recommend Solutions Step 6: Determine the Costs Step 7: Determine the Risk Step 8: Determine the Benefits Step 9: Write a Recommendation That Sizzles!
OR-OSHA 107 Selling Safety to Management

16

Step 1. Identify the Problem

Hazardous condition - tools, equipment, machinery, workstation, employee
Unsafe behavior - can occur at any level of the organization Inadequate system design - lack of well-written plans, procedures, policies, procedures, etc. Inadequate system performance - programs, plans, policies, etc. not effectively performed

OR-OSHA 107 Selling Safety to Management

17

Step 2: Write a descriptive problem statement

Condition. Several ladders in the supply area are cracked or warped. Behavior. An authorized employee did not complete the chipper lockout/tagout procedure.

System Performance. Lockout/tagout training is not being provided to new maintenance personnel.
System Design. he lockout/tagout program does not include a training plan.

OR-OSHA 107 Selling Safety to Management

18

Develop a statement of the problem from your group's assigned scenario. Write a problem statement for one hazardous condition or unsafe behavior.

OR-OSHA 107 Selling Safety to Management

19

Step 3. Gather information about the problem

develop the findings that justify your problem statement ensure the best solutions are proposed effectively sell your suggestions by identifying the benefits.

OR-OSHA 107 Selling Safety to Management

20

Use the following documents to help you gather background information:

1. Injury/Illness records 2. OSHA 300 logs 3. Employee hazard reports 4. Observation program reports 5. Safety inspection reports 6. Incident/Accident reports 7. Safety committee minutes 8. Job hazard analyses 9. Employee safety surveys

10. Maintenance requests 11. First aid logs 12. Safety policies and procedures 13. Safety rules 14. Manufacturer manuals 15. Material Safety Data Sheets (MSDS) 16. Observation reports 17. Safety suggestions 18. Insurance carrier loss reports
21

OR-OSHA 107 Selling Safety to Management

Common Measurements of Results

OR-OSHA 107 Selling Safety to Management

22

Step 4: Determine the Cause

Conduct an analysis just as you would when conducting an incident/accident analysis. The great advantage, here, is that the employer hasn't suffered an accident. Its a FREEBIE!

OR-OSHA 107 Selling Safety to Management

23

Cause-Effect Analysis
Every hazard we identify in the JHA represents the effect of a cause.
Characteristics of Surface Causes Characteristics of Root Causes

OR-OSHA 107 Selling Safety to Management

24

Effect The Observed Hazard or Unsafe Practice Hazardous condition and unsafe/Inappropriate behavior identified in the analysis Why?
Analyze Evaluate Effect Cause

Because!

Contributing Surface Causes Hazardous conditions and unsafe/Inappropriate behaviors contributing to the problem 1. Material 2. Equipment 3. Environment 4. Employees Why?
Analyze Evaluate Effect Cause

Because!

System Performance Root Causes General failure to carry out management and supervisory responsibilities 1. Leadership 1. Resources 2. Enforcement 3. Supervision 5. Training Why?
Analyze Evaluate Effect Cause

Because!

System Design Root Causes Inadequate/missing programs, policies, plans, processes, procedures, practices 1. Commitment 2. Accountability 3. Involvement 4. Hazard Identification/Control 5. Accident Analysis 6. Training 7. Evaluation
OR-OSHA 107 Selling Safety to Management

25

Exercise: Cause of Effect

Read the examples below.

Place a O before each statement that describes an observable condition or behavior the effect.
Place a P before each statement that describes a performance root cause. Place a D before each statement that describes a design root cause.

OR-OSHA 107 Selling Safety to Management

26

Exercise: Determining the Causes

OR-OSHA 107 Selling Safety to Management

27

Contributing Surface Causes

Describe possible contributing surface causes.
Example - A maintenance person failed to replace the guard after completing corrective maintenance.

OR-OSHA 107 Selling Safety to Management

28

System Performance root causes

Describe possible performance root causes.

For example - Lockout/Tagout training plan does not include training of "affected employees."

OR-OSHA 107 Selling Safety to Management

29

System Design Root Causes

Describe possible design root causes.

Example - Supervisor accountability is not addressed in the safety accountability plan.

OR-OSHA 107 Selling Safety to Management

30

Step 5. Recommended Solutions

Provide options - Ideal state, nice state, quick fix

Corrective actions include: engineering controls, management controls, personal protective equipment, interim measures System improvements include: revised policies, programs, plans, processes, procedures, and practices

OR-OSHA 107 Selling Safety to Management

31

1. Engineering Controls

Engineering controls are based on the following broad principles: 1. design the facility, equipment, or process 2. enclose the hazard 3. establish barriers or local ventilation

OR-OSHA 107 Selling Safety to Management

32

2. Management Controls

Controlling specific work procedures

Controlling specific work practices

Controlling work schedules Interim measures

OR-OSHA 107 Selling Safety to Management

33

3. Personal Protective Equipment (PPE)

When exposure to hazards cannot be engineered completely out of normal operations or maintenance work, and when other management controls cannot provide sufficient additional protection from exposure, personal protective clothing and/or equipment may be required.

4. Interim measures.
Temporary use of the other controls to reduce or eliminate exposure.

OR-OSHA 107 Selling Safety to Management

34

Group Exercise: Develop Solutions Immediate Corrective Actions System Improvements

OR-OSHA 107 Selling Safety to Management

35

Step 6. Determine the Costs

Insured (Direct) Costs
Oregon average to close a claim = $12,611

Unseen costs can sink the ship!

Uninsured (Indirect) Costs

Oregon estimated average = $18,000

Unknown Costs
OR-OSHA 107 Selling Safety to Management

36

Workers' Compensation Made Simple

How are rates determined?

Manual Rating - Also called the Pure Premium Rate, this rate is applied to all industries of the same type or standard industrial classification (SIC). Expressed as: Dollars per $100 dollars of payroll
Example: $3.15 per $100 dollars of payroll.

Experience Rating - used to vary the companys own rates, depending on its experience by comparing actual losses with expected losses.
OR-OSHA 107 Selling Safety to Management

37

3.75 3.50

Manual Rate

3.15 2.75 2.50 2.00 1.75 1.50

Average Accident Rate

Above Average Accident Rate

Below Average Accident Rate

1.30 1.20 1.10 1.00 .90 .80 .70 .60

MOD Rate

OR-OSHA 107 Selling Safety to Management

38

XYZ Contractors MOD Rate in 2003 = 1.3

Classification Description Concrete - Floor/Driveway Carpentry - Multiple Family Dwel. Code 5221 5651 Payroll $500,000 $500,000 Base Rate/Premium $1.26/$63,000 $3.97/$198,500 $261,500 Adjusted Rate/Premium $1.64/$$82,000 $5.16/$258,000 $340,000

Adjusted Premium = $261,500 + $78,500 = $340,000

If the company has a profit margin of 5%, additional business volume to replace $78,500 would be $1, 570,000!

OR-OSHA 107 Selling Safety to Management

39

XYZ Contractors MOD Rate in 2004 = .7

Classification Description Concrete - Floor/Driveway Carpentry - Multiple Family Dwel. Code 5221 5651 Payroll $500,000 $500,000 Base Rate/Premium $1.26/$63,000 $3.97/$198,500 $261,500 Adjusted Rate/Prem $.88/ $44,000 $2.78/$139,000 $183,000

Adjusted Premium = $261,500 - $78,500 = $183,000

Wow! If you reduce your MOD Rate from 1.3 to .7, total savings will be $157,000. Thats $3.14 million in business volume saved!

OR-OSHA 107 Selling Safety to Management

40

Average Cost For Disabling Claims By Event or Exposure

What injuries are causing the most claims in Oregon?

OR-OSHA 107 Selling Safety to Management

41

Where's the "average"?

Total Claims: 22,569 Average Cost: $13,107

OR-OSHA 107 Selling Safety to Management

42

$ A F E T Y P A Y S ! OSHA Advisor OSHA Hazard Awareness Advisor

OR-OSHA 107 Selling Safety to Management

43

Determine the costs

What are the total estimated direct costs? What are the total estimated uninsured costs? What is the ratio of uninsured to insured costs in your scenario?

What are the total accident costs?

OR-OSHA 107 Selling Safety to Management

44

Step 7. Determine the Risk

Determine the risk to the employer if the problem is not solved.

OR-OSHA 107 Selling Safety to Management

45

Risk is a function of Probability, and Severity

R=PxS
What is the probability of an accident occurring when exposed? How severe will the injury or illness be when exposed?

OR-OSHA 107 Selling Safety to Management

46

Factors that increase risk

The number of employees exposed The frequency and duration of exposure

The proximity of employees to the point of danger

Potential severity of the injury or illness Factors that require work under stress Factors that increase severity Lack of proper training and supervision Improper workplace design Other factors

What factors might increase stress?

OR-OSHA 107 Selling Safety to Management

47

Group Exercise: Determine the risk

OR-OSHA 107 Selling Safety to Management

48

Probability
The likelihood of injury or illness. Is the most likely and expected result if employee enters danger zone. Is quite possible, would not be unusual, has an even 50/50 chance. Would be unusual sequence or coincidence Would be remotely possible coincidence. It has been known to have happened Extremely remote but possible. Has never happened after many years of exposure. Practically impossible sequence or coincidence. Has never happened when exposed. Rating 10 6 3 1 .5 .1

Rating _____

OR-OSHA 107 Selling Safety to Management

49

Severity
The most likely result - degree of Severity of Consequences Major Catastrophe: Numerous fatalities. Extensive Damage >$1M Several fatalities; damage $500K to $1M Fatality; damage $100K to $500K Extremely serious injury; (amputation, permanent disability); damage $1K to $100K Disabling injuries; damage up to $1,000 Minor cuts, bruises, bumps; minor damage Rating 100 50 30 20 10 1

Rating ______

OR-OSHA 107 Selling Safety to Management

50

Using the information from the three charts above and the risk score equation, determine the risk associated with your scenario.
Risk Score = P _______ x S _______ = ________

Risk Scores for scenarios Scenario #1 = __________________ Scenario #2 = __________________ Scenario #3 = __________________

So, what do these scores mean?

OR-OSHA 107 Selling Safety to Management

51

The Risk Assessment Matrix

OR-OSHA 107 Selling Safety to Management

52

Step 8. Determine the benefits

You're going to have to ask the questions, "What are the benefits that result from fulfilling social obligations - higher morale, reputation, long-term success

fulfilling fiscal obligations - lower premiums, higher productivity, profits, efficiency, quality
fulfilling legal obligations - no/low OR-OSHA penalties, no litigation.

OR-OSHA 107 Selling Safety to Management

53

Group Exercise: Determine the benefits

Total Investment $__________________________

OR-OSHA 107 Selling Safety to Management

54

Return on Investment
Whats XYZs return on our investment going to be?
ROI = Total Estimated Accident Costs Total Investment

OR-OSHA 107 Selling Safety to Management

55

Payback Period
How long will it take to get our money back from the investment?

Payback Period = Total Investment Total Estimated Accident Costs

OR-OSHA 107 Selling Safety to Management

56

Business Volume
How much product or service will XYZ have to sell to pay for the accident costs?
BV = Total Estimated Direct/Indirect Accident Costs Profit Margin

OR-OSHA 107 Selling Safety to Management

57

Step 9. Write a recommendation That Sizzles!

I. Description of Problem
II. History of the Problem III. Cause Analysis

IV. Recommendations and estimated investment

V. Costs associated with failure to implement recommendation(s)

VI. Summary of Benefits

VII. Action Items:

OR-OSHA 107 Selling Safety to Management

58

Let's review!

OR-OSHA 107 Selling Safety to Management

59

That's it! Thanks for Coming

See you in another workshop!

Drive carefully!

OR-OSHA 107 Selling Safety to Management

60