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Lead to Succeed 28th January 2014 Gerry Moy

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Page 1: Lead to Succeed 28th January 2014 Gerry Moy. Main presentation title can sit on two lines With a further description underneath Agenda Background Lessons

Lead to Succeed28th January 2014 Gerry Moy

Page 2: Lead to Succeed 28th January 2014 Gerry Moy. Main presentation title can sit on two lines With a further description underneath Agenda Background Lessons

Main presentation titlecan sit on two linesWith a further description underneath

Agenda• Background

• Lessons from Safety Incident

• What are we doing strategically that’s different

• Questions

Page 3: Lead to Succeed 28th January 2014 Gerry Moy. Main presentation title can sit on two lines With a further description underneath Agenda Background Lessons

Main presentation titlecan sit on two linesWith a further description underneath

Agenda• Background

• Lessons from Safety Incident

• What are we doing strategically that’s different

• Discussion

Page 4: Lead to Succeed 28th January 2014 Gerry Moy. Main presentation title can sit on two lines With a further description underneath Agenda Background Lessons

www.babcockinternational.com

Babcock International Group: In Brief

Annual Revenue over

£3.2 billion

Headquartered in

London

Delivering circa

600 services across

six continents

Employing a workforce of

c.26,000 skilled

personnel

The UK’s

leading engineering

support services

organisation

Order book circa

£12 billion

Managing customer assets currently worth over

£40 billion Established

in1891

FTSE 100 company listed on

London Stock Exchange

Page 5: Lead to Succeed 28th January 2014 Gerry Moy. Main presentation title can sit on two lines With a further description underneath Agenda Background Lessons

www.babcockinternational.com

20032004200520062007200820092010201120122013

377.9

438

732.1

838.3

993.4

1560.8

1915.2

1923.4

2703.2 *

3070.4

3243.5

Revenue

A strong history of revenue growth

£M * VT Group acquisition

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www.babcockinternational.com

Group Strategy

• We are the UK’s leading engineering support services company.

Our objective is to develop from this position and grow in both the UK and overseas, so delivering superior and sustainable returns for our shareholders.

Group Strategic ObjectivesIn order to achieve this, we will focus on the following strategy: • Leading market positions• Preferred customer characteristics• Customer focused, long-term relationships • Integrated engineering and technical expertise• Balancing risk and reward• Excellent health and safety record

Strategy and Objectives

Page 7: Lead to Succeed 28th January 2014 Gerry Moy. Main presentation title can sit on two lines With a further description underneath Agenda Background Lessons

www.babcockinternational.com

What does Babcock do?

Page 8: Lead to Succeed 28th January 2014 Gerry Moy. Main presentation title can sit on two lines With a further description underneath Agenda Background Lessons

www.babcockinternational.com

Teach Vital Skills

(Education& Training)

Manage Critical Assets

(Infrastructure& Equipment)

Deliver Complex

Programmes (Programmes

& Projects)

Customers of our Group include:

Cavendish Nuclear

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www.babcockinternational.com

2004 2005 2006 2007 2008 2009 2010 20111997 20032002200120001993

Today

Ong

oing

rel

atio

nshi

ps

2012 2013

Our long-term relationships with customers deliver value for both parties

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• Network Rails’ largest conventional track renewals contractor, with circa 50% of the market

• Renewing the country’s vital railway network across Scotland, the North West and East of England

• Finished top of Network Rail’s National Contractor League Table for the last two years

• An award-winning collaborative electrification project which has

set the standard for rail project delivery in Scotland• Five miles of track successfully delivered in just 20 weeks

– three weeks ahead of the original programme• Delivered increased train capacity and improved passenger

experience at a cost 60% less than originally budgeted

Case Studies: Rail

Paisley Canal Electrification (PaCE ) project

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http://www.safety.networkrail.co.uk/

Network Rail

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Agenda• Background

• Lessons from Safety Incident

• What are we doing strategically that’s different

• Questions

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Start of shift - machines under

control?

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2-3 M lifting of CWR rail using sleeper grab

banned 2005

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RCI Disabled

Supervisor?

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Exclusion zone?

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Are we learning…………….?

“Vulnerability to human

error”

“Familiarity with procedures to point

of complacency”

“Demand, perceived or real,

to prioritise production over other matters

including safety”

“Ineffective inspection regime”

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Piper Alpha – 25 years ago

The sobering reality is to recognise that the failings identified in the Cullen Report which

investigated the disaster, have the potential to cross all industry and geographical

boundaries.

Irrespective of the views held, the reality is that we should not close our eyes to the potentially

detrimental effects of complacency, overfamiliarity, failure to heed warnings from the

workforce and ineffective inspection regimes. Such issues are valid in all industries and work

locations.

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Lessons from Hope Incident• Key Performance Indicators

• Cultures & Behaviours

• Risk Identification

• Fatigue Management

• Safety Responsibilities

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?

4(1)

7(3)

63(30)

829

Major Injury (RIDDOR)

Minor Accidents

Close Call

Fatality

Over 7 day Injury (RIDDOR)

Statistics show performance is consistent with last year’s level(Contractors’ injuries in brackets)

Accident RatioYear end position 12/13

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1. Key Performance Indicators• Ensure that you have appropriate KPI’s to measure

performance

• Test these, objectively and regularly

• Understand and act on trends and findings

• Review the effectiveness of existing tours and inspections process and investigate the proposal to set up a team of dedicated site inspectors/auditors who do nothing but visit sites, comment on safety and draw the site leader’s and management’s attention to poor behaviour / bad practices / unsafe issues

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2. Culture & Behaviours• Current training programmes, and competency assessments, are not

enough in themselves• More thought and effort is required to measure and change culture• Complacency led to erosion of standards and good practice• On wider investigation there were areas where good practices and

adherence to rules were shown – inconsistency across company• Zero tolerance applied to knowingly breaking rules. Especially life saving

rules – A “Just Culture” can/must also have consequences! • In conjunction with Network Rail undertake a formal industry wide

investigation into the behavioural and cultural issues that impact on delivery activities and are underpinned by the perception that “production is king” and “challenging unsafe acts is career limiting”

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3. Risk Identification & Management• Risk management is not a cut and paste exercise• Risks awareness and assessment should be done progressively through

project life cycle with a focus on the planning stage• If point of work assessments are allowed during work, then the application

and checking of this process needs to be rigorous• Engineering trains were usually late on site. Contingency plans were not

clear what actions to take. On the night trains were 1 hour late.

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Position EmployerRisk Score on 07.03.13

% Increase in likelihood of having an accident

Signalling Technician

Babcock 2.34 134 %

MC Morsons 2.10 110 %

RRV Operator Quattro 2.70 127 %

Signalling Technician

Babcock 1.07 7 %

Signalling COSS

Babcock 1.30 3 %

4. Fatigue Management

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4. Fatigue Management• The management of fatigue needs to be more effective (In

Babcock)• Current tools may not be user friendly• Review roster programme against bar chart deliverables using the

HSE Fatigue Risk Management Tool to develop management arrangements to control staff fatigue

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5. Safety Responsibilities• Clear definition of safety responsibilities are required• Although important on site, needs to be understood right through

organisation

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Post Incident - Trends

March April May June0

5

10

15

20

25

8

2120

119

4

89

Close CallsIncidentsSeries3

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AFR Performance

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Agenda• Background

• Lessons from Safety Incident

• What are we doing strategically that’s different

• Questions

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To analyse and make recommendations to improve leadership and management behaviours and practices to

ensure they deliver the level of business operational performance required within a successful and high

achieving private sector rail company.

In partnership with

“Lead to Succeed” - Aim

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What We Asked The Depot To Do

• Help to establish Leadership Excellence throughout the business• Determine the culture of shared values and norms within Preston Depot and its impact

on its systems and approach to leadership, identify shortfalls and initiate interventions and solutions.

• Determine the necessary leadership competence in cooperation with supervisory and management personnel responsible for work-site planning and delivery, identify shortfalls and initiate interventions and solutions.

• Identify and analyse the management systems (policies, processes, procedures and practices) and resources needed for the successful delivery of operational work-sites and their application throughout the depot, identify shortfalls and initiate interventions and solutions.

In partnership with

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The basic Model

Lea

der

ship

Sk

ills

&

Be

hav

iou

r

Cu

ltu

reS

har

ed v

alu

es &

acc

ep

ted

no

rms

Man

agem

ent

Po

licy

, P

roce

ss,

Pro

ced

ure

, P

ract

ice

Operational Performance (Safety & Production)

John Kotter’s Model

In partnership with

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What We Did

• WHAT GOOD LOOKS LIKE• 29 & 31 July 2013Step1• OBSERVATION• Between 13 & 28 Aug 2013Step2• FOCUS GROUPS• Between 2 & 25 Sept 2013Step 3• REPORT TO BOARD• 08 Oct 2013Step 4

In partnership with

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Safety Finance Cooperation Evolution

Safety Built into Plans

Job Status Reviews

Safety Behaviours

COSS Action Plan

Commercial Inclusion

Quick WinReadily WonDevelop to Win

Culture Findings & Aggregated Solutions

The Babcock Way

Sponsors’ Mtgs Tactics

Management Support Plan

Suggestions & Awards

Statistics:9 findings18 recommendations

Babcock Way Roadshow

Behaviour Safety

Sessions

Workshop with

Commercial

Collaborative Working

Development

In partnership with

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Recommended External Requirements Critical Impact

In partnership with

•BR Track Senior Team; PD SRM; PD RMs•Perfect Process; Commercial; Sponsor Mtgs; Workbank; NDS; Plant; Change Control; Alignment; Design

PD & NWR Partnering Workshop

•All PD Staff• Internal PSI training; Safety Day sessions; On-Track coaching of leadersBehavioural Safety Sessions

•Current BR COSS trained personnel & consider sponsoring Agency COSSs•Briefing; Challenging; AssessmentRe-Training of COSSs

•Supervisors, Gangers & SIT•Active Safety Leadership

Revised First Line Leader Course

•Ops Managers; SRM, RMs•Setting Objectives; Performance Management; Active Leadership; Track & Monitor

Snr Depot Management Leadership Programme

•SMs• ILM Accredited Role Base Capability Training

Mid-Management ILM Training Course

•SMs• ILM Accredited Role Base Capability Training

Mid-Management ILM Training Course

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Reaction Delegation Motivation Comms

Workbank Turbulence

Leadership Time

PD Vision & Floor Chats

Mid-Term Vacuum

On-Site Teamwork

BR versus Agency Men

Whiteboard Mtgs

Briefings & Handovers

Statistics:13 findings21 recommendations

NWR Partner Workshop

End-to-End Process

Re-Launch

Mid-Management ILM Training

Aide-Memoire Workshop

Gaps & Duplication

Low SM Morale

NWR Client Criticism

Safety Comms & EC

Safety Comms TTT

Behaviours Competency

Matrix

In partnership with

Quick WinReadily WonDevelop to Win

Leadership Findings & Aggregated Solutions

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Safety Lens

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1. A detailed development action plan within Preston Depot

2. The design & delivery of specific development activities with Preston Depot

3. The transplant of the flagship L2S initiative to the next Babcock Rail Depot

Critical Next Steps

In partnership with

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Discussion