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Managing Health and Safety Performance

Carl Dunckley
Risk Control Consultant
Gallagher Bassett

Alarm South East


4th November 2004
Whats the Problem ?

Fatal injuries
There were 235 fatal injuries to workers in 2003/04,
Other reported injuries
In 2002/03, employers reported 154,430 other injuries,
Ill health
In 2001/02 an estimated 2.3 million people in Great Britain
were suffering from an illness which they believed was caused
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or made worse by their current or past work,


Working days lost
In 2000-02 an estimated 40 million working days were lost
overall, 33 million due to work-related ill health and 7 million
due to workplace injury.

Source: HSE
Whats the Problem ?

Latest HSE figures for 2001/02, health and


safety failures cost:
employers between 3.9 - 7.8 billion,
individuals between 10.1- 14.7 billion,
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the economy between 13.1 - 22.2 billion,


society as a whole between 20 - 31.8 billion.

Source: HSE
Penalties

Most of HSEs successful prosecutions result in a fine:


In 2003:

The average fine per offence prosecuted was 6,040


13,263 enforcement notices were issued
933 cases prosecuted, involving 1,688 separate alleged
offences (86% conviction rate)
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22 Managers and Directors prosecuted. 11 of these were


convicted.
The largest fine was 240,000 for a major scaffold
collapse in a city centre.
Source: HSE
Corporate Manslaughter

Fatal Accident
Where there is gross negligence, a company may be
prosecuted for corporate manslaughter
To convict a company of manslaughter a senior
individual identified as its embodiment or directing
mind must first be convicted of manslaughter*.
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* Need to identify someone who is the embodiment


(directing mind)
Culpable Have the mental state (mens rea) to be
guilty of manslaughter
Forum 28 Barrow-in-Furness

UKs biggest ever Legionella outbreak traced to 30 year old


air conditioning system Council run arts centre.
170 confirmed cases -7 deaths linked to outbreak.
Morecambe Bay Hospitals Trust cancelled around 700
operations to concentrate on the outbreak.
More than 60, 000 was spent on testing kits (2500 people).
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The Pharmacy Department spent as much on a particular


antibiotic in one week as it did in the whole of previous year.
Intensive Care Unit stretched
beyond limits patients relocated
around North East
Forum 28 Barrow-in-Furness

Police and HSE conducted joint investigation


Source traced to 30 year old air conditioning
system managed in-house, formerly managed by
specialist external contractors
Police charged senior Council official with seven
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counts of manslaughter
Summonses served on Council for same seven
counts of manslaughter,
plus health and safety
breaches
HSC Enforcement Policy Statement

The revised HSC Enforcement Policy Statement says


that enforcing authorities should:
consider the management chain and the role
played by individual directors and managers.
take action against them where the inspection or
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investigation reveals that the offence was


committed with their consent or connivance or to
have been attributable to neglect on their part.
The Consultation Document

Proposals for wide scale reform of law on


involuntary manslaughter
Involuntary manslaughter to be replaced by
3 new offences:
Reckless killing
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Individuals
Killing by gross carelessness
Corporate killing
Corporate Killing

A companys conduct causes death i.e. the way


in which activities are managed fails to ensure
health and safety.
And

A companys conduct falls far below what


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would be expected in the circumstances.


Far Below Expectations

What Would You Expect?


Health and Safety Policy & Arrangements
Compliance with Legislation
Risk Assessments
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Training and Information (Competence)


Supervision
Learning from Past Mistakes
Corporate Killing

The management failure would be regarded as


the cause of death even if the immediate cause
is an individuals act or omission
A conviction would require neither that the risk
be obvious nor that the organisation be capable
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of appreciating the risk


Conviction of a company would not preclude
individuals being charged with reckless killing
or killing by gross negligence
Statements of Internal Control

The Accounts & Audit Regulations 2003


Ensure financial management is adequate and
effective and that body has a sound system of
internal controlwhich includes
arrangements for management of risk
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Conduct a review at least once a year in the


effectiveness of its systems of internal control
Publish a statement on internal control with
financial statements
Which Management Model?

British Standard BS8800 (1995) : Guide to


Occupational health and safety management
systems
details:
HS(G)65: Successful Health and Safety
Management
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BS EN ISO 14001: Environmental Management


Systems
BS EN ISO 9001: Quality Management
Systems
HS(G)65
Successful Health and Safety Management HS(G)65 sets out
a safety management system in which the key elements of the
control cycle are:
POLICY

ORGANISING

AUDITING PLANNING & IMPLEMENTING


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MEASURING PERFORMANCE

REVIEWING PERFORMANCE
Principle Components

POLICY Health & Safety Objectives*


ORGANISING Policy Formulation*
PLANNING & IMPLEMENTING Policy Review*

MEASURING PERFORMANCE

REVIEWING PERFORMANCE
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*Specific
*Measurable
Effective health and safety policies set a clear direction
for the organisation to follow *Achievable
*Relevant
*Time-based
Principle Components

POLICY Structure & Responsibility*


ORGANISING Competence*
PLANNING & IMPLEMENTING Consultation &
Communication*
MEASURING PERFORMANCE
Information Management*
REVIEWING PERFORMANCE
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Operational Control*
Emergency Preparedness*
*Specific
*Measurable
An effective management structure and arrangements
are in place for delivering the policy *Achievable
*Relevant
*Time-based
Principle Components

POLICY Risk Assessment*


ORGANISING Employee Training*
PLANNING & IMPLEMENTING General Planning*

MEASURING PERFORMANCE Management Plan*

REVIEWING PERFORMANCE
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*Specific
*Measurable
There is a planned and systemic approach to
implementing the health and safety policy through an *Achievable
effective health and safety management system *Relevant
*Time-based
Principle Components

POLICY Measurement &


Monitoring*
ORGANISING
Adverse Incidents*
PLANNING & IMPLEMENTING
Benchmarking*
MEASURING PERFORMANCE

REVIEWING PERFORMANCE
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*Specific
*Measurable
Performance is measured against agreed standards to
reveal when and where improvement is needed *Achievable
*Relevant
*Time-based
Principle Components

POLICY Record Management*


ORGANISING Auditing*
PLANNING & IMPLEMENTING

MEASURING PERFORMANCE

REVIEWING PERFORMANCE
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*Specific
*Measurable
The organisation learns from all relevant
experience and applies the lessons *Achievable
*Relevant
*Time-based
HS(G)65
Successful Health and Safety Management HS(G)65
identifies auditing as a key component within the control cycle

POLICY

ORGANISING

AUDITING PLANNING & IMPLEMENTING


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MEASURING PERFORMANCE

REVIEWING PERFORMANCE
Why Audit?

The evidence therefore showed the sincerity of the concern


for safety. Sadly, however, it also showed the reality of the
failure to carry that concern through into action
Anthony Hidden QC to summarise the evidence presented by British Rail Senior Managers, during enquiry
into the Clapham Railway crash in 1988

Piper Alpha
Kings Cross
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Herald of Free Enterprise

You cant manage what you dont measure


Drucker
Why Audit?

The avoidance of complacency


The understanding that all systems will tend to
deteriorate over time, or become obsolete as
people and working practises change
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Satisfaction of legal requirement


Put very simply, audits answer the question:
Are we doing what we said we would do?
Why Audit?

The Management of Health and Safety at Work


Regulations 1999 requires the establishment of a formal
Safety Management System. Regulation 4 (1) states:
Every employer shall give effect to such arrangements as
are appropriate, having regard to the nature of his
activities and the size of his undertakings, for the effective
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planning, organisation, control, monitoring and review of


the preventive and protective measures.
Auditing is seen as the method by which the requirement
can be fulfilled.
HSG(65) Audits

In addition to routine reactive and proactive


monitoring, periodic audits enable a deeper and more
critical appraisal of all the elements of the OH&S
management system.

Audits should be conducted by persons who are


competent and as independent as possible from the
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activity being audited.

Audits should be tailored to the size and nature of the


organisation, and its risks.
HSG(65) Audits

Audits will need to cover the following questions:


i) is the organizations overall H&S
management system capable of achieving the
required standards of H&S performance?
ii) is the organization fulfilling all its obligations
with regard to H&S?
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iii) what are the strengths and weaknesses of the


H&S management system?
iv) is the organization actually doing and achieving
what it claims to do?
Audit Methodology

Audit methodology invariably includes


three key techniques:

Interviewing key personnel


Examination of Documentation
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Inspection
Selection of Auditors

Competent and Independent


Health and Safety professionals,
Line managers or other employees with
additional training in health and safety and
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auditing techniques,
Internal/External consultants?
Corporate H&S Performance Index - CHaSPI

Designed to assist external stakeholders assess


H&S management of an organisation
Increase incentives for senior managers to
manage H&S well
Raise profile of H&S as key aspect of CSR
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agenda
Research indicated significant interest amongst
investors and other stakeholders in a H&S
index
Quantitative Indicators 1 to 5

1. H&S Management Rating


2. Injury rate Employees & Contractors
3. Employee Sickness Absence rate
4. Occupational Health Rating
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5. Major Incident Rating


Indicators are weighted to reflect relative
importance. Indicator 1 has highest weighting
(50%, other 4 are 12.5%)
Qualitative Indicators 6 to 9

6. Under Watch Flag

7. Highly Regulated Activity

8. Directors Declaration
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9. CHaSPI verification
Users of the Index

Investors seeking stocks in companies who have good


risk management and take CSR seriously
Insurers evaluating standards of risk management to
help establish terms
Employers as a means of demonstrating commitment
to CSR
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Regulators considering performance of an


organisation
Potential employees wanting to assess a companys
performance
http://www.chaspi.info-exchange.com
Additional Information
A Guide to Measuring Health and Safety Performance
HSE

Aiming to Improve: The principles of Performance


Measurement
Audit Commission
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Getting Better all the Time: Making Benchmarking Work


Audit Commission
Additional Information
Managers Guide to Performance Management
IDEA

How to Measure Performance: A Handbook of Techniques


and Tools
Department of Energy (United States of America)
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Achieving Best Practice in your Business: Quality


Management
Department of Trade and Industry