How to Improve Business Value and EHS Performance: Part 2

How to Improve Business Value and EHSQ Performance: Part 2

6.    Involve Employees in a Bottom-Up Program

Almost all process improvement programs are operated in a top-down mode. This is a result of the emphasis placed on a management technique known as "management by objectives."
It is also important to have a "bottom-up" component in the program. It is not effective just to tell employees what to do and judge them on how well they follow the directions. Since they are working with the process all the time, they might have some valuable knowledge that they can share with management—something known as process knowledge and intellectual property or knowledge assets. Employee involvement is now a major component in most true performance evaluation methods.

7.    Thoroughly Integrate EHS into All Business Programs

All management initiatives seek to improve business value. Each of these programs has projects to realize these important gains in business value. Often there are parallel process improvement programs in place with little integration between them.
Hierarchical process mapping helps to identify the opportunities to improve the process. When selecting which opportunities to include in the program, it might make sense to select opportunities that are being considered separately in multiple programs. An example would be:

• Significant aspect in ISO 14001 or other environmental management system;
  
• Significant hazard in OHSAS 18001 or other occupational health and safety management system;
  
• Kaizen target in a Lean Manufacturing effort;
  
• Variability reduction target in a Six Sigma program; or
  
• Quality system problem in ISO 9000 or other quality management system.

8.    Translate All Process Improvements to Financial Terms

You can earn the respect of your management team by aligning EHS activities with what's important to them. More often than not, what's important is financial performance.
Once you show the financial links through easy-to-understand metrics, you'll have senior management asking for information. They will become much more interested in the EHS function and its contributions to the organization. You must make the connection to the bottom-line financial results. If you cannot figure out what the process improvement is worth, don't bother proposing it to management.

9.    Score the True Performance of Process Improvement

Most EHS professionals confuse "results" and performance. The term "performance results" often appears in the EHS literature. Results are actually a measurement of the outcomes of performance. It is also possible to measure performance itself without measuring its outcomes (results).
This can be accomplished using a methodology known as the Baldrige model. This model actually scores performance and results separate from each other. Within a 1,000-point system, the true performance comprises approximately 600 points, while the results comprise approximately 400 points.

10.  Seek Continuous Improvement with Lessons Learned

Many quality management programs fail because organizations have not properly dealt with the fact that continuous improvement requires continuous learning. Without learning, companies repeat old practices and meaningful change cannot occur.
Dr. Peter Senge coined the term "learning organization." He defines a learning organization as follows:
A learning organization is an organization skilled at creating, acquiring and transferring knowledge, and at modifying its behavior to reflect the new knowledge.
The hierarchical process maps create the mental model that everyone should be focused on. Getting the product or service to market with a competitive price and with the quality that the customer demands is the reason that the company exists and the basis for it to grow in the future. The focus on the process provides a common goal and shared vision for all employees. It is not about improving EHS compliance! This shared vision must be important and visible enough in order to gain acceptance of everyone in the organization.
EHS has to take advantage of lessons learned even outside team activities. No safety meeting should ever be held without asking for lessons learned by the participants. Even EHS compliance activities are the source of lessons learned. This is the best way to become a learning organization.