Post written by Peter T., a Management
Consultant at Ideaca. Read more on his blog: Visibility.
You might ask
yourself, why the focus on Environment, Health & Safety (EHS)? Well,
besides the fact that there is a lot of attention on this specific operational
area, I feel the industry as a whole has created such a buzz about the benefits
of an effective EHS Management System (EHSMS), that organizations are looking
at implementing an EHSMS without clearly thinking about the overall value
drivers for doing this.
While
operationally most organizations have varying EHS needs, the following
requirements are often the same: ensuring that they minimize operational risks,
sustain and improve the safety record of the workplace, maintain and advance
environmental management efficiency, and comply with regulatory mandates.
Meeting these requirements however involves designing cohesive EHS processes, a
systems integration approach, cooperation across the enterprise, the ability to
consolidate information, and a supportive management team that will ensure
roadblocks are eliminated or minimized. In essence, a true EHS Management
System is beneficial.
However, there
are significant challenges that exist when it comes to designing an effective
and complete EHS solution. These core challenges are related to data and the
specific industry sector. The way data is being managed, collected and utilized
is an important component. A common complaint is that there is too much data
and not enough information. Individuals seem to be spending more time
organizing and finding data than analyzing it. In most cases data management
techniques within organizations are not integrated, coming in various forms
such as paper files, countless reports, and spreadsheets.
By the time
data comes into the operation it is already out of date and not current. It
often takes more time to reinterpret and merge current data into existing
reports than to redo all the reports over again. Also, tedious ways of doing
things and the lack of resources needed to truly re-engineer business processes
leaves an operational gap with no big picture of organizational conditions.
Departments often work in silos, data and knowledge is not shared across the
organization, which leads to inconsistent EHS event handling. These business
process, technology and data-specific challenges are further magnified by additional
industry related conditions that usually prevent already resource drained
organizations from engaging in optimization and improvement initiatives.
So with all
these challenges, how do you setup an effective EHS Management System? The key
is to identify the core business value drivers of the organization, and ensure
that all your EHS initiatives drive to meet these values. These tangible
business values can include: increase revenue, decrease costs, operational
efficiencies, increase capacity, etc. Intangible value drivers however are
significantly harder to prove and require a larger effort to gauge their
business value. These include:
expertise, company reputation, employee morale, compliance risk, etc. It is not
hard to address a tangible profitability business value. The value gained from the purchase of a new
piece of equipment that will improve operations can easily be determined.
Reputation or compliance risks, however, are important non-tangible value
drivers. A non-compliance incident can easily push profitability value
initiatives to the bottom of the list.
By
implementing an effective EHSMS, we can easily monitor and measure all
intangible value drivers identified.