Building a Business Case &

Selecting an EHS MIS Platform

January 16, 2014

Introductions

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Moderator Oneil Williams Manager Strategic Accounts ProcessMAP Corporation

Guest Speaker Dean Rossi President Safety Culture Partners, LLC

Housekeeping Items

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Attendee microphones will be muted to prevent distractions

Ensure you enter your audio pin if dialing in by telephone

Submit questions at any time using the “Questions” tool

Q&A session

Anonymous polls

Post-webinar survey

Contact info

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ProcessMAP

Company

Overview

Company Overview

EXPERIENCE

13+Years of Innovation. Continued Growth &

Long-Term Partnership with Customers.

GLOBAL FOOTPRINT

World’s Leading Companies Rely on ProcessMAP in 90+

Countries.

INDUSTRY LEADER

World’s Leading Software

Platform for EHS, Sustainability & Carbon

Management, and Compliance & Learning.

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ProcessMAP Purpose

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We empower customers with information to help them preserve the environment, create a safe workplace and ensure the well-being of their employees.

“We help remove the non-value added

administrative burden on EHS professionals.”

Platform Overview

Cloud/SaaS Model Integrated Platform Multiple Access Global Platform

• Comprehensive Suite of Modules

• Built from ground-up with customer input

• Embedded Analytics and Reports

• Connectors to Internal & External Systems

• No CAPEX Cost with ‘Pay-per-Use’ benefits

• Predictable Annual Cost

• Safe Harbor Certified

• Supports Multiple Browsers

• Safe and encrypted access over Internet

• Mobile capabilities

• Designed for Global Companies

• 18+ languages and 100+ currencies

• Currently used in over 90+ countries

• Conversions from Metric to English units and vice-versa

ERP Scale Platform for EHS and Sustainability

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Broad Industry Experience

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Automotive Agribusiness Electric Utilities

Oil & Gas

Metals Mining

Retail/Distribution

Manufacturing

Pharma Transportation

Healthcare

Media

A Sample of Our Customer Base

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Objectives of the Webinar

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“Building a Business Case & Selecting an EHS MIS Platform”

Agenda

• 7 Steps in Building a Software Platform Business Case 1

• Key Building Blocks of an EHS MIS Business Case 2

• Know Your Stakeholders 3

• Mapping the Value Matrix 4

• Calculating a Realistic ROI 5

Building a Business Case

Objectives of the Webinar

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• 5 Key Stages in EHS MIS Selection 1

• 12 Key Steps in EHS MIS Selection 2

• The Financial Investment 3

• Conclusion 4

• Q&A 5

Selecting an EHS MIS Platform

Dean Rossi’s

Bio

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Featured Speaker

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Dean Rossi President and Owner, Safety Culture Partners LLC

25 years of EHS experience at site, division, and corporate level

Held multiple EHS positions at GE Plastics

Past global EHS manager at Stanley Black & Decker

Past global director of EHS for a division at Ingersoll-Rand

Most recently, served as the VP, Global EHS at Exide Technologies

BS in Industrial Hygiene from Purdue University

MBA, Organizational Leadership & Mgmt Emphasis

Six Sigma Black Belt

Building a

Business Case

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Polling Question

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What is your familiarity with building an EHS business case for funding approval? Very familiar Somewhat familiar Used it a couple of times Heard of it, but never used it Never heard of it

Why Build a Business Case?

Justifying the Financial

Investment

Reducing the Risk of Failure

for the Project

Increasing the Likelihood of

Approval

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6 Reasons Business Cases in EHS MIS Fail

• Not Aligned With Current Business Goals

Ex: EHS Goals not aligned with Company Vision & Mission

• Not Incorporating Future needs and Key Business Initiatives

Ex: Focus only on meeting just the immediate needs

• Lack of Details and Limited Options for Implementation

Ex: Lack of understanding on implementation

• Missing Value Propositions to Other Functions

Ex: Missing the big picture

• Financials poorly understood and presented

Ex: Lacking financials details

• Poor presentation and Story Telling

Presentation style is critical.

1 2 3

4 5 6

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7 Key Steps in Building an EHS MIS Business Case

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“A business case tied to your company’s

strategy has the best chance for success.”

Find Catalysts

Know your

Stake-holders

Current State

Vs. Future State

Develop solutions

Conso-lidate Value Matrix

Estimate Financials

Present Business

Case

1 2 3 4 5 6 7

Recent catastrophic

event

Lack of system to manage EHS and

Sustainability KPIs

Emerging Customer

Requirements

Inefficiencies from paper-based

systems

Potential negative legal, brand and company image

Lack of data to make informed business

decisions

Escalating workers comp

costs

Growing complex global

regulations

Step 1: Find Catalysts that are the Cornerstone of the Initiative

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Step 2: Know your Stakeholders

EVP HR COO/VP of Ops.

CSO CEO Div.

Pres. CFO Legal VP EHS

VP/Dir. EHS

Dir. Env.

Risk Mgmt.

Dir. Safety

EHS Mgr.

Occ. Health

Profits & Balance

$$$ / Risk

EHS People Env. Eff. /

Comp. Comp. /

Risk Profits

Tech

nic

al F

un

ctio

n

C-Suite Function

Focus Areas

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Step 3: Current State Problems/Failures vs. Future State

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“Current State Analysis is a Must Have.”

• What is it? • Why does it exist? • Who are affected? • What is the extent of the

problem? • What is the damage if the

problem is not fixed? • Where do you rank amongst

your peers? • What are your

customer/community expectations?

Step 4: Develop Future State/Solutions

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“Ensure EHS MIS can play a role

in the transformation.”

• Develop Options/Solutions to Existing Challenges

• Document Future State • Document How the EHS MIS will

Support/Enable the Transformation

Step 5: Consolidate the EHS MIS Value Matrix

“An EHS Value Matrix communicates and estimates

financial and non-financial values.”

Reducing /Avoiding Cost

Workers Comp Cost

Ensuring Compliance

Reduced Headcount

Out of Compliance

Energy Reduction

Risk

Identify & manage Hazards

Procurement Consolidation

Waste Minimization

Improving Efficiency

Identification of Hazards

EHS Audits

EHS Tasks

Permits Compliance

Regulatory Reporting

Accident/Incident Tracking

Streamline Chemicals Mgmt

Reduce Manual Audit Tracking

Easier DMR Reporting

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Step 6: Navigating through Financials

• Collaborate with Other

Functions

• Understand CapEx Vs. OpEx • Estimate Budget Items

Software Implementation (Vendor) Implementation (Internal)

“Your Three Amigos: IT, Purchasing & Finance!”

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Step 7: Presenting the Business Case

Presentation

Focus on Strategic Benefits

Cite Relevant Examples

• Internal & External Examples of Failure • Examples of Improving Specific EHS Processes

• Cost Avoidance and Cost Savings • Improved Efficiency • Data Integrity and Accuracy • Standardized Processes • Compliance Assurance • Employee Health & Safety

“A business case is not only about financials.”

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Selecting an

EHS MIS

Platform

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5 Key Stages in EHS MIS Selection

Developing a Business Case

Team Selection

Wants/Needs Analysis

Vendor Vetting

Vendor Selection

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2

3

4

5

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12 Key Steps in EHS MIS Selection

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Team Selection

Needs Analysis

Categorizing Your Needs

Force Ranking Your Needs

Separating “Wants” from “Needs”

Developing a Request for Information (RFI)

Narrow Down The Vendors

Request Scenario-Based Vendor Demos

Sandbox Time

Reference Check

Internal IT Due Diligence

Request for Proposal

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2

3

4

5

6

7

8

9

10

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Step 1: Team Selection

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“More is better than less.”

EHS Managers/Leaders IT Sourcing/Purchasing HR Risk Management Legal Others

Polling Question

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What is your familiarity with group brainstorming sessions? Very familiar Somewhat familiar Used it a couple of times Heard of it, but never used it Never heard of it

Step 2: Needs Analysis

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“No idea is a bad idea.”

• Gather your team in one room • Dial in remote members • Start with a blank computer screen/whiteboard • Think of all your possible “wants” • Transfer these “wants” to an Excel spreadsheet

Step 2: Needs Analysis

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Step 3: Categorizing Your Needs

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“Adding structure to the process helps you.”

Separate the wants into various categories: Safety Environmental Risk Management Health/Industrial Hygiene Compliance General Etc.

Step 3: Categorizing Your Needs

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EHS Data Management System - Force Ranking of Requirements Exercise

Section #1: General Requirements:

Number Requirement:

1). System must be "easy" and "intuitive" to use with little to no instructions or training needed to use the system out of the box.

2). Must have multiple language capabilities for the simplest of data input i.e. nature of the injury, body parts, accident types, etc.

3). Must have “localizations” or ability to turn on or off metrics or modules that do not apply to a site, State, region, or country.

4). Ability to give different people in the organization different “permissions” so critical data can not be viewed by those not authorized. Ability for “authorized” users to see but not change other site’s data. Ability to restrict the viewing of confidential data such as individual IH Exposure data, social security numbers, etc.

5). “Mobile accessibility” from handheld devices (Blackberry’s, tablets, Droid, and Apple capable, etc.).

6). Library capabilities in which specific policies and procedures can be maintained as well as world-wide and country specific regulations. Ability to input and share common standard work procedures, JSA’s, LOTO procedure, etc.

7). Ability to tie into (communicate) with other established business databases such as but not limited to HR Information Management Systems (HR IMS), Kronos, ERP system, production system, etc. to determine production quantities, raw material usage, chemical inventories, etc.

8). Must be able to meet our Information Technology’s team data back up requirements.

9). Ability to be accessed through our intranet, have our logo’s, our specific EHS DMS name, and be seamless to users on how to access the system.

10). Ability to integrate with our active directory user id’s.

11). Ability to feed an EHS Executive Dashboard located on our intranet. 12). Ability to track PPE usage, inventory levels, and resultant cost.

13). Ability to have remote access to vital emergency response documentation in the event of a site emergency.

14). System must be “real time” in that the database must be updated (refreshed) daily; reports must return the most recent data uploaded.

Polling Question

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Q. What is your familiarity with force ranking? Very familiar Somewhat familiar Used it a couple of times Heard of it, but never used it Never heard of it

Step 4: Force Ranking Your Needs

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“Group consensus ensures complete buy-in.”

Send the spreadsheet with your “wants” to everyone involved in the evaluation process. Allow them to rank the “wants” from most important to least important.

Step 5: Separating “Wants” from “Needs”

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“Force ranking separates your “wants” from your

“needs.”

Needs Wants

Must-have functionalities Nice-to-have functionalities

• __________________ • __________________ • __________________ • __________________

• __________________ • __________________ • __________________ • __________________

Step 6: Developing a Request for Information (RFI)

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“Pricing should not be a part of the

equation at this juncture.”

• Remove any reference to the “ranking” of your requirements • Identify the EHS MIS vendors you’d like to work with • Send the list of requirements to each vendor • Have vendors rate their off-the- shelf platform capabilities with a pre-defined rating scale

Functional and Technical Requirements

Vendor 1

Vendor 2 Vendor N

Vendor 3

Vendor 4

Vendor 5

Vendor 6

Vendor 7

Polling Question

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Q. What is your familiarity with multi-voting? Very familiar Somewhat familiar Used it a couple of times Heard of it, but never used it Never heard of it

Step 7: Narrow Down The Vendors

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“Separating the vital few from the trivial many.”

• From the RFI

– Discuss vendor replies as a team

– Multi-vote to get down to 3 vendors

How to “multi-vote”

1. Each team member gets 5 votes

2. Each team member gives his/her first choice a “5”, second choice a “4”, third choice a “3”, forth choice a “2”, and fifth choice a “1”

3. Add up all the individual team member’s votes for each vendor

4. The 3 vendors with the highest average score move on to the next round

Step 8: Request Scenario-Based Vendor Demos

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• As a team, develop a list of scenarios that you want each vendor to show you

• Some examples

Show me how to enter a lost time incident

Show me how your platform calculates GHGs

• Send the scenario list to the final 3 vendors

• Ask each vendor to come on-site for the demo

• What to look for…

Step 8: Request Scenario-Based Vendor Demos

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…

User friendliness

Completeness of the system

Flexibility of the system

Ease to pull reports

Workflow

• Make sure team members take notes

• Make sure each team member ranks the scenarios from each vendor

• After the demos, discuss pros and cons as a team

• Have the team multi-vote to narrow down to the last 2 vendors

“Real-life scenarios are key to this step.”

Results from Multi-Voting

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Evaluator Vendor #1 Vendor #2 Vendor #3

VP EHS 1 2 3

Plant EHS #1 2 3 1

Plant EHS #2 3 1 2

Plant EHS #3 1 2 3

Legal 1 2 3

Dir. Risk Mgmt 3 1 2

HR 1 2 3

Sourcing 2 1 3

IT 1 3 2

Totals: 15 17 22

Average: 1.67 1.89 2.44

Final Rank: #1 #2 #3

Step 9: Sandbox Time

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“Remember the 3 “F’s”:

Friendly, Functional & Flexible!”

• For the final two vendors:

– Ask for a live version for the team members to “play in”

– Allow 4-6 weeks of “play time”

– Have team member enter

scenarios from your “needs” list

• Can any of your “wants”

be accommodated?

– Have each vendor track

the members’ “play time”

• Review the “play time”

with the members weekly

Step 10: Reference Check

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“References provide valuable insight.”

• Seek approval to talk to each of the final two vendors’ current customers

• Ask for contact names and information

• Talk to vendors’ customers

– Inquire about the “3 F’s”

– Implementation process

– Post implementation services

• Potential “on-site” visit?

Step 11: Internal IT Due Diligence

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“IT holds the key!”

• Work with your internal IT department

• Make sure the last two vendors meet all of your IT department’s requirements

• After “sandbox” time and reference checks, ask the final two vendors for pricing proposal

• Work with your IT and Sourcing/Purchasing team members on this process

• Things to inquire about:

– Software Costs

License fees

Maintenance fees

Upgrade costs

– Implementation

Configuration costs

Data migration into the new system

Data feeds

Training costs

Step 12: Request for Proposal

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“Bringing the process to a close.”

The Financial Investment

Requirements Scenario A Scenario B Scenario C

# of Locations 10 US locations 50 global 100 global

# of Employees

500-1000 5000-10K >10K

Modules Needed Incident, Compliance Calendar, Audits

Incident, Risk, Sustainability, Compliance Calendar, IH, Audits

Incident, Risk, Sustainability, Compliance Calendar, Audits, Industrial Hygiene, BBS, Chemicals & MSDS

Data Migration Last 3 Years Last 5 Years Last 5 Years

Integrations TPA TPA, 5 Labs 2 TPAs, 10 Labs, HRMS

Implementation Investment

~$15,000-$25,000 ~$50,000-$100,000 ~$250,000-$500,000

Yearly Subscription Investment

~$25,000-$50,000 ~$150,000-$250,000 ~$300,000-$500,000

HRMS/Finance ~$500,000/~$200,000 ~$5,000,000/~$750,000 ~$10,000,000/$2,000,000

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“Investment depends on individual needs.”

Conclusion

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1

2

3

Know your audience and build your business case

Select your team

Wants/Needs Analysis

5 Vendor Selection

Vendor Vetting 4

“Focus on functionality, NOT cost.”

Q&A

50

Thank You!

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For questions about ProcessMAP’s platform solution, please direct inquiries to:

owilliams@processmap.com

To contact Dean Rossi, please forward all inquiries to:

drossi@safetyculturepartners.com

1301 International Pkwy, Ste 160 Sunrise, FL 33323

Office: 954-515-5040 Email: info@processmap.com

Visit us at www.processmap.com