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Stork Technical Services

Organisational integrity
Module 3: AM People, the human factor
Chemical

Power

Oil & Gas

Jos Van der Aelst


Principal Consultant Asset Management
Jos.vanderaelst@stork.com
1 Organisational integrity 0032 499 98 61 00
Module 1 Asset Management (AM)
Module 2

Introduction AM &
Risk Management
Organisational integrity

Module 4
Organisational capabilities

AM Policy & AM
AM Processes AM People AM Means
Strategy Organisation

Module 5
Module 3
Asset Activity Cycle

Design,
Concept & Operate &
purchase & Delivery Dismantling
Business case Maintain
construction

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Why organisational integrity ?

TESTIMONIAL OIL & GAS OPERATORS

The key success factor in a companys ability to operate safely and


efficiently is ensuring that every individual with a stake in asset integrity
truly understands the core concepts involved in effective integrity
management and how their actions and decisions can have a decisive
impact.

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The human factor in
organisational Integrity
Organisational integrity can be described as knowing what are the
right things to do and doing the right things.

Organisational integrity is intrinsically linked to company


culture, human factors and processes and practices.

Build an
integrity
culture

4 Organisational integrity
Module 3: AM People the human factor
The human factor and human integrity
From values to leadership
Integrity in leadership as fundamental
Required leadership styles

Communication and participation


Competencies and skills

5 Organisational integrity
No organisational integrity without human
integrity

Organisational integrity
culture
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First some considerations
Organisational integrity principles are expressed in value statements and codes
(narrow approach) organisational integrity is embedded in all systems and
embodied by all employees (broad)
Human integrity is externalised in concrete situations in relationship with others
and within organisations
Human integrity can be under pressure by organisational culture (integrity) it
effects the way people act in their day-to-day work
Not every employee will act accordingly the values
Leadership needs to create and maintain an organisational ethos in relation to the
collective values
Risk: are the values congruent with the companys needs, goals & resources
What if managers are confronted with competing and ambiguous demands?

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From values to organisational integrity
Follow values Promote the values &
be example drive behaviour Define a set of
values

Values
Execute with
integrity

Communi- Integrity Integrity in


Leadership cation Management decisions and
participation System actions

Organisational
integrity
Risk Management
culture

Support, Define & implement


evaluate & the integrity
improve management system
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Source;
Thomas J. Peters

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Organisation ?

DIRECTION

PRODUCTION TECHN. Dep

UNIT 1 UNIT 2 UNIT 3 ENG Maint

Maint Maint Maint

Source; Ceci nest pas une organisation


Thomas J. Peters

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(Organisational integrity) Culture

Is something of a group of people

Has to do with collective behaviour

Is realised through communication and co-operation between people

What standard
Is and will be learned
collective
behaviour does
the
Becomes standard behaviour at the end
organisation
wants?

11 Organisational integrity
Module 3: AM People the human factor
The human factor and human integrity
From values to leadership
Integrity in leadership as fundamental
Required leadership styles

Communication and participation


Competencies and skills

12 Organisational integrity
Values
Which values are appropriate for your organisation? (e.g. in order
to install safety culture in oil & gas)
Values are the fundamentals for the desired culture
- Integrity - We are open, honest and
- Leadership trustworthy
= Ethical compass - Ownership - We work safely, protect
- Passion for winning health and the environment
- Safety - Trust - We support our customers
- Respect success
- Excellence - We pursue excellence
- Courage - Think clearly - We embrace change and
- One team - Act dynamically new ideas
- Behave with integrity - We respect the individual

REMARK; the expected behaviour of people and how they relate with the values and business

goals/principles can be made explicit in a code of conduct

13 Organisational integrity
Module 3: AM People the human factor
The human factor and human integrity
From values to leadership
Integrity in leadership as fundamental
Required leadership styles

Communication and participation


Competencies and skills

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Integrity & leadership

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Integrity in leadership
Leadership the most critical aspect of
creating and maintaining integrity
is the behaviour of the leaders (1)
Set the example

If the organisation is prepared to


sweep things under the carpet then
Encourage others to follow these values maladjusted behaviour will continue.
staff must see that the organisation
is doing something about it (2)

Continuously reward those who act with integrity and correct those
who dont

(1) Adapted text from ICAC


(2) Adapted text ICAC Tips from the Top
16 Organisational integrity
Module 3: AM People the human factor
The human factor and human integrity
From values to leadership
Integrity in leadership as fundamental
Required leadership styles

Communication and participation


Competencies and skills

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Values Leadership
Set the example
Encourage others to follow these values
Continuously reward those who act with integrity and correct
those who dont

Basic Values
Understand the business
Know how you impact business integrity
Decide based on facts, derived from thorough
analysis
Be the example
Structure your work effectively and efficiently related to values
Work together cohesively across the group
and the expected
Go for excellence
Put always safety and health first
behaviour (e.g.
Get results and profitable growth safety first)
Apply the companies best standards
Take initiative / Come up with ideas and proposals
Learn all the time
Be responsible and accountable
Do what you say
Show respect and tolerance
Speak your mind and listen to others
Demonstrate loyalty once decisions are made

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Leadership Leadership
Set the example

= mirror function
Encourage others to follow these values
Continuously reward those who act with integrity and correct
those who dont

Basic Values Leadership principles


Understand the business Clarify the business
Know how you impact business integrity Spread understanding over the business and
Decide based on facts, derived from thorough everything that impacts its integrity
analysis Define and prioritise strategies and goals
Demonstrate
Structure your work effectively and efficiently Implement and support responsibilities and
commitment
Work andthe group
together cohesively across authorities

personal
Go for excellence Base analysis and decisions on facts
Put always safety and health first Be brutally honest
accountability
Get results and profitable growth Encourage performance
Apply the companies best standards Drive commitment and accountability for SHE
Take initiative / Come up with ideas and proposals Require excellence
Learn all the time Build change capability
Be responsible and accountable Be persistent
Do what you say Drive passion for people
Show respect and tolerance Build trust and enthusiasm
Speak your mind and listen to others Develop competence
Demonstrate loyalty once decisions are made Be open
Have fun

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Leadership
Set the example

Leadership style
Encourage others to follow these values
Continuously reward those who act with integrity and correct
those who dont

The HerseyBlanchard Situational Leadership Model


20 Organisational integrity
Module 3: AM People the human factor
The human factor and human integrity
From values to leadership
Integrity in leadership as fundamental
Required leadership styles

Communication and participation


Competencies and skills

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Take care of a culture gap

Management

Middle
management

Co-workers Edgar Schein model of organisational


culture
Definition: Attitude
Introducing and What a person believes or thinks about something
e.g. Safety is important

maintaining values Definition: Behaviour


How a person reacts or what they do in a given situation.
e.g. Always using personal protective equipment

Past

Values and norms Behaviour


Interventions
(attitude level) (behaviour level)

Today

Behaviour Values and norms


Interventions
(behaviour level) (attitude level)

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Introducing and maintaining values
Interventions, interventions, interventions,
Programs
Awareness programs, change management programs, training programs
Communications
Communication plans Leadership
Tell and retell stories, show results, report,
requirements?
Integrate desired values in
Meetings (e.g. always start with safety), presentations,
Systems, processes, procedures and instructions
Good behaviour (example)
Controlling, Prevention, Repressive

Interventions, interventions,
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Interventions & continuous
improvements

Check

Check

Check

Check

Check

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4 stages of behavioural change
Unconscious
Competence

Instinctive no
Conscious thought required
Competence

Know that you


Conscious know how
Incompetence

Know that you


Unconscious dont know how
Incompetence

Dont know that


you dont know
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The desired participation?

From conformity with (externally) imposed standards

To self-governance according to (chosen) culture/standards

27 Organisational integrity
Module 3: AM People the human factor
The human factor and human integrity
From values to leadership
Integrity in leadership as fundamental
Required leadership styles

Communication and participation


Competencies and skills

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Definition: Knowledge
The comprehension of how to do something
e.g. Understanding safety concepts
Competence Management Definition: Competency
The ability and skills to act.
e.g. Ability to use the procedures

Role
description

Actual
Target GAP
competence level
profile
evaluation
Training,
hiring,

Competence management = total of knowledge, experience, insights


and attitudes of a person
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Competences in relations with integrity in oil &
gas
Competences of people - in all interactions with the assets and
with the management systems used in their working environment
Product, process, asset, operation safety, health and environmental
knowledge and risks
Process control
Alarm and contingency plans
Work practices (e.g. Standard operating procedures, management of
change procedure)
Work clearance management
Job content / work scope
Authorisations and responsibilities

Check
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Become, be, stay a world class
integrity based company

Best practices
Knowledge and skills

Changing Culture
Working together, leader ship
principles, behaviour

Sharing goals
Common vision, mission, goals
World Class

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