Practical actions for safety leadership : Safety governance frameworks for boards

  • View
    39

  • Download
    2

Embed Size (px)

Transcript

  1. 1. OrbitasGroupPtyLtd,2015 Page1of6 Practicalactionsfor safetyleadership: Safetygovernance frameworksfor boards www.orbitasgroup.com DrKirstinFerguson
  2. 2. OrbitasGroupPtyLtd,2015 Page2of6 Safetygovernance Anyconsiderationofsafetygovernanceforboardmembersandseniorexecutivesmustconsiderthe corporategovernanceframeworkinwhichtheyoperate.Theconceptofsafetygovernanceisdesigned toensurethatboardsandseniorexecutiveteamshavethetools,knowledgeandstructuresinplaceto maximisethesafetyperformanceoftheorganisationstheyleadandgovernbeyondmerelyensuring compliancewithsafetylegislation.Recentresearch1 hasdefinedsafetygovernanceinthiscontext. Safety governance may be reflected in the charters and policies, communication channels, and reporting and measurement tools established by board members and senior executives to maintain attention and oversight on workplacesafetyperformancebeyondsimplyensuringcompliancewithlegislation. Safetygovernancepathway Every organisation moves along a continuum as they develop a safety governance framework and it is essential to recognise where your organisation may sit in terms of safety governance maturity in order to influence change progressively and effectively. To help identify the maturity of a safety governance framework, a five-stage safety governancepathwayhasbeendeveloped. Safetygovernancepathway 1 Ferguson,K.(2015).Astudyofsafetyleadershipandsafetygovernanceforboardmembersandseniorexecutives.PhDthesis.QUT. Safety governance is the relationship between board members and senior executivesinthesafetyleadershipofanorganisationandprovides: thestructurethroughwhichthevisionandcommitmenttosafetyisset; agreementonhowsafetyobjectivesaretobeattained; theframeworkforhowmonitoringperformanceistobeestablished;and ameansforensuringcompliancewithrelevantsafetylegislation.
  3. 3. OrbitasGroupPtyLtd,2015 Page3of6 Transactionalstage Theleasteffectiveboardswithrespecttosafetyoutcomesappeartotakeatransactionalapproach with a minimal emphasis on workplace safety in the organisation. These boards and senior executiveteamsmayviewsafetyasamanagementresponsibility,withtheboardgenerallyonly engagedafteranincidenthasoccurred.Theseorganisationsdonottendtomakeanydisclosures aboutsafetyperformanceintheirannualreports. Compliantstage New safety legislation in many countries has seen a large number of boards become compliance focusedwherebytheboardisawareoftheirresponsibilitiesinalegalsenseandwillseektoensure basicsafetyreportingisinplace,oftenfocusedonlagindicators.Abriefreferencetosafetymaybe madeinanannualreportsuchasreportingtheexistenceofasafetypolicy.Overall,compliancewith legislation is the main driver rather than seeking to go beyond compliance to understand the importance of safety leadershipbytheexecutiveteamandtheresultingimpactonsafetyculture. Focusedstage Onceacomplianceframeworkforsafetyhasbeenachieved,boardsoftenbecomemorefocused onsafetybeyondmerecompliancewithlegislation.Safetymaybeincludedintheboardcharterat thispoint,avisionforsafetyandsafetytargetsmaybeset,andleadindicatorsintroduced.Often safetysystemsandprocessesarenowdisclosedinannualreports. Pro-activestage Duringthisstageboardsmightbecomemorepro-activeinsafetyandarecomfortablewiththeir roleinsafetyleadership.Boardsmayseekevengreatersafetyperformancefromtheirexecutive teamandestablishasub-committeeoftheboardtoensuresafetyreceivesthefocusitrequires. OfteninthisstagetheChairmanmakesapersonalcommitmenttosafetyintheirannualreportand publicdisclosuresmayalsoincludebothlagandleadindicators. Integratedstage The most effective safety governance frameworks are those boards which ensure that safety is completely integrated with the operations of the organisation. The link between high safety performanceandbusinessexcellence(orsafeproduction)isunderstoodandacceptedbytheboard andseniorexecutiveteam.Clearstatementsabouttheroleoftheboardinsafetyaredisclosedin annualreportsandsafety-relateddisclosuresarehonestandtransparentsharingboththegoodnewsandthebad.
  4. 4. OrbitasGroupPtyLtd,2015 Page4of6 Bestpracticesafetygovernanceframeworks Afteridentifyingwhereyourorganisationmaybeplacedinmovingtowardsanintegratedapproachtosafety,it is valuable to consider some of the measures which may be taken to further progress through the various stages. Somepracticalmeasuresmightinclude: EnsuringtheCEOprimarily,andChairwhereappropriate,reinforcethecompanysafetyvisionoftenand consistently Demonstratingsafetyleadershipwhenonsitevisitsorintheofficethroughauthenticengagementwith employeesonsafetyissues As a board, acknowledging and accepting the role of the board in safety (beyond compliance) and supportingtheCEOandseniorexecutivesintheirday-to-daysafetyleadershipefforts Includingacommitmenttosafetyinboardcharter Ensuringasafetyvisionexistsandiscommunicatedregularlyandwidely Ensuringasafetyvisionalignswith,andsupports,companyvalues Ensuring board and senior executives accept, promote and communicate the concept of safe productionandthatalldecisionsfromtheboardareconsistentwiththatmessage Establishingaboardsub-committeefocusedonsafetymatters Ensuringregular,robustandmeaningfulsafetyreportingofcompanysafetyperformance Encouragingseniorexecutivestothinkstrategicallyaboutsafetyandnotjustasasourceofstatistical analysis Ensuringarangeoflagandleanindicatorsarereportedanddisclosedtostakeholders Developingopencommunicationwithothercompaniestoenhancebestpracticesinsafety Includingteamsafetyperformancewithintheexecutiveremunerationsystem
  5. 5. OrbitasGroupPtyLtd,2015 Page5of6 Furtherreading Ferguson,K.(2015).Astudyofsafetyleadershipandsafetygovernanceforboardmembersandseniorexecutives.PhD thesis.QUT.Acopycanbeaccessedonlinehere. AdditionalOrbitasGroupwhitepaperscanbedownloadedfromwww.orbitasgroup.com: Safetygovernanceandsafetyleadershipforboardmembersandseniorexecutives Goingbeyondcompliance:Safetyleadershipintheboardroom Goingpubliconsafetyleadership:Bestpracticesafetydisclosuresforannualreports&CSRreports Abouttheauthor-DrKirstinFerguson DrKirstinFergusonisaprofessionalcompanydirectorsittingonASXpubliclylisted, privatecompanyandgovernmentboards.KirstinwaspreviouslytheglobalCEOofa safety consulting organisation operating in the mining and resources industry. In 2014,theAustralianFinancialReviewnamedKirstinasoneofAustralias100Women ofInfluence. KirstinhasaPhDinBusinessfocusedonsafetyleadershipandsafetygovernancefor board members and senior executives, and was awarded the QUT Colin Brain CorporateGovernanceFellowshipforherresearchcontributions.Kirstinsitsonthe EditorialBoardofOHSProfessional,thejournaloftheSafetyInstituteofAustralia, and was previously an independent expert member of the Queensland Workplace HealthandSafetyBoard.KirstinisanAdjunctProfessorattheQUTBusinessSchool. ContactDetails E:info@orbitasgroup.com W:www.orbitasgroup.com
  6. 6. OrbitasGroupPtyLtd,2015 Page2of6