Stork Technical Services

Organisational integrity
Module 6: Questions & Answers

Chemical

Power

Oil & Gas

Jos Van der Aelst

Principal Consultant Asset Management
Jos.vanderaelst@stork.com
1 Organisational integrity 0032 499 98 61 00
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 .

Plant Processes /
Systems
(asset
integrity

People
(culture &
behavior)

2 Organisational integrity
Human / organisational context
Narrow Broad
Scope & focus of
organisational
Human Acting according to a The alignment integrity
personal set of values, between what one
integrity beliefs and principals does and one says in oil & gas

Integrated, consistent
No corruption approaches and
Organisational Code of conduct
behaviours driven Business context
knowing what are
integrity Compliance the right things to do
management and doing the right Narrow Broad
things

Risk related to the

operation and All business risks (e.g.
Risk management of oil & financial, commercial,
context gas ASSETS and competitors, )
facilities
The scope & focus

Asset delivery
AM goals Safety, health,
output
environmental Expenditures / costs
Innovations
3 Organisational integrity
Module 6: Q & A
Is organisational integrity something new?

What is the added value of organisational integrity?

Is achieving organisational integrity difficult? And why?

What steps should companies take to overcome these challenges?

Is it advisable to hire external specialists to achieve organisational

integrity?

4 Organisational integrity
Module 6: Q & A
Is organisational integrity something new?

What is the added value of organisational integrity?

Is achieving organisational integrity difficult? And why?

What steps should companies take to overcome these challenges?

Is it advisable to hire external specialists to achieve organisational

integrity?

5 Organisational integrity
Is organisational integrity something new?
No

Organisational culture was/is always oriented on doing the right thing

and doing the things right
Battle against corruption was / is always present, but more and more
legal requirements (code of conducts, compliance management) -
narrow
Preventing incidents was / is always important

6 Organisational integrity
Is organisational integrity something new?
But

The pressure on getting results is increased

The speed of delivering results is increased
The complexity and uncertainty of the business is increased
The public opinion is omnipresent the image of a company
The loyality of companys and manager is decreased (short ambition)

7 Organisational integrity
Is organisational integrity something new?
Yes
We need to show explicit how we manage integrity to:
Regulators and government
Internal to the staff, to the management, to the direction, to the unions
Public the public wants to know how you will prevent incidents or how you
will protect the future (sustainability)
All existing types of integrity aligned over all levels of the organization

Becomes part of the company culture

8 Organisational integrity
Is organizational integrity something new?
What evolutions in organisational integrity?
Best practices in organizational integrity will be implemented in
the global companies and so spread over the world
e.g. Global companies already implement same code of conducts,
company ethics, over the world
Because staff turnover is increasing best practices are also
implemented to other (smaller and local) companies
Contractors will be forced by global companies to have an excellent
level of integrity (compared with VCA-certificate for safety)
So in the long term organizational integrity can grow to
global integrity or an ISO norm

9 Organisational integrity
Module 6: Q & A
Is organisational integrity something new?

What is the added value of organisational integrity?

Is achieving organisational integrity difficult? And why?

What steps should companies take to overcome these challenges?

Is it advisable to hire external specialists to achieve organisational

integrity?

10 Organisational integrity
What is the added value of organisational
integrity?

Doing the right things Doing the things right

Everybody works in the Everybody does his work

same direction good (first time right)

Added value: Effectivity Added value: Efficiency

increase increase

Organisational integrity can be described as

knowing what are the right things to do and
doing the right things

11 Organisational integrity
 Overall Asset Management Goals
Drivers for business values Regulations requirements
License to operate
Meet the challenges of Image,
potential new energy
sources

Reliable oil & gas

transport
The oil & gas long time
Reliable oil drilling,
engagement

Total Cost of Ownership

Production cost/barrel
EBIT,
Energy consumption
Optimal operating
processes,

12 Organisational integrity
Define your integrity added value
How to guarantee Safety, Health, Security and
environmental performance?
Plant Processes /
Systems
(asset
integrity

People
(culture &
behavior)

How to guarantee quality performance?

How to guarantee reliability ?

How to guarantee operational excellence?

13 Organisational integrity
 So increasing integrity increases all
business values !!! Regulations requirements
License to operate
Meet the challenges of Image,
potential new energy
sources

Reliable oil & gas

transport
The oil & gas long time
Reliable oil drilling,
engagement

Total Cost of Ownership

Production cost/barrel
EBIT,
Energy consumption
Optimal operating
processes,

14 Organisational integrity
Module 6: Q & A
Is organisational integrity something new?

What is the added value of organisational integrity?

Is achieving organisational integrity difficult? And why?

What steps should companies take to overcome these challenges?

Is it advisable to hire external specialists to achieve organisational

integrity?

15 Organisational integrity
Is achieving organisational integrity difficult?
And why?
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)

The easy part:

Organisational integrity embedded in processes, systems,
The difficult part:
Human integrity
Leadership: be the example, encourage and reward
Be persistent (whole organisation)
Long term consistent approach
It is about creating change !!!

16 Organisational integrity
Is achieving organisational integrity difficult?
And why?
Challenge: not being persistent or deriving from the long term
consistent approach:
Instant urgency acting is required (e.g. economical crisis)
Staff / management is changing and has other ideas / ambition
Staff / management is acting different under pressure (e.g. after incidents)
Consistency in people, leadership, systems,

Challenge: it is about change !!

17 Organisational integrity
 Is achieving organisational integrity difficult?
And why?
Challenge: it is about change !!!
Resistance towards change is expressed in different forms

Fight Denial Flee Wait

React disapproving Deny problem Dispute procedure Point upwards
Form coalitions Doubt solution Rumours/Cynicism Listen passively
Mock Back to the past Withdrawal Little reaction
Openly resist Point towards others Find support Admitting behaviour
Work stoppage Straying Call in sick Idle acting

You never get credits for things that never happen

18 Organisational integrity
Is achieving organisational integrity difficult?
And why?
There is no end of the journey,
but the aim is

From conformity with (externally) imposed standards

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

19 Organisational integrity
Module 6: Q & A
Is organisational integrity something new?

What is the added value of organisational integrity?

Is achieving organisational integrity difficult? And why?

What steps should companies take to overcome these challenges?

Is it advisable to hire external specialists to achieve organisational

integrity?

20 Organisational integrity
What steps should companies take to overcome
these challenges?
challenge: not being persistent or deriving from the long term
consistent approach:
Instant urgency acting is required (e.g. economical crisis)
Staff / management is changing and has other ideas / ambition
Staff / management is acting different under pressure (e.g. after incidents)
Consistency in people, leadership, systems,

Challenge: it is about change !!

21 Organisational integrity
 What steps should companies take to
overcome these challenges?

Focused and continuous interventions

A P P A

C D D C

Focused Continuous
Integrity

Focused
improvement

continuous improvement

22 Organisational integrity Time

 What steps should companies take to
overcome these challenges?
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
23 Organisational integrity
What steps should companies take
to overcome these challenges?

Kotter model for change management

24 Organisational integrity
What steps should companies take
to overcome these challenges?

25 Organisational integrity
What steps should companies take
to overcome these challenges?
Interventions, interventions, interventions,
Programs
Awareness programs, change management programs, training programs
Communications
Communication plans
Tell and retell stories, show results, report,
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,
26 Organisational integrity
What steps should companies take
to overcome these challenges?

Resistance to chance

Recognising the level of openness towards change helps in choosing

the right influence strategy leadership style

27 Organisational integrity
What steps should companies take to
overcome these challenges?
Knowledge management
- Processes / Systems
Best practices
-
Knowledge and skills

Change management

Changing Culture - Awareness programs,

Working together, leader ship - Culture,

principles, behaviour
Project management
- Communication
Sharing goals
- Participation, .
Common vision, mission, goals

28 Organisational integrity
Module 6: Q & A
Is organisational integrity something new?

What is the added value of organisational integrity?

Is achieving organisational integrity difficult? And why?

What steps should companies take to overcome these challenges?

Is it advisable to hire external specialists to achieve organisational

integrity?

29 Organisational integrity
Is it advisable to hire external specialists to
achieve organisational integrity?
No
Values are from a company
Leadership has to come from the company
The system has to be
Embedded in the company
The culture has to be
Embodied by its people

30 Organisational integrity
Is it advisable to hire external specialists to
achieve organisational integrity?
Yes
Why didnt happen the change, why should happen the change?
Same people,
External look/advice
Independency
Expertise
Support

Speed of change

31 Organisational integrity
Organisational integrity in oil & gas

Oil & gas operators are facing a complex portfolio of risks related to
the operations and management of their assets and facilities.

They are committed to deliver excellent safety, health &

environmental performance, while being profitable.

The key performance success factor is:

Realising outstanding
asset & organisational integrity

32 Organisational integrity