Safety Power: Management Strategies for Cutting Losses

Companies are spending increasing amounts on safety, according to recent Journal reports. My experience bears this out in many sectors throughout the country.

Why this emphasis? In these times of fierce competition and swirling change, controlling losses is ever more critical. Johnson and Johnson, under the concerted safety leadership of then-President, David Clare, decreased lost time days by 90% between 1981-1989 worldwide. Besides reducing direct payouts associated with rising medical costs, J&J saved incalculable "softer" costs of lost production, replacement, recruiting and training. This is especially crucial where good labor is scarce.

A strong safety program reduces corporate and executive exposure. Companies are being held increasingly responsible for risk exposure to their communities; executives have been arrested on criminal charges for accidents to their employees. Many companies find a strong safety record gives them a competitive edge. Petroleum Services industry leader Schlumberger Ltd. has a 5-year plan to cut injuries 50% by 1993; market research fuels their belief that recognition as "the safety company" in their field will be an advantage in winning contracts and in recruiting.

Besides, employees want it. A November 1989 Chicago Tribune survey listed "workplace safety" as the primary goal American workers wanted their bosses to aim towards ("good pay" was number 11).

Perhaps most important, safety is a leverage point--it means much more than preventing accidents. A well-designed corporate program affords a strategic opportunity to simultaneously boost morale and productivity while reducing rising costs. In some instances, safety can be a common goal where management and labor align.

But for many, safety is out of control. Many organizations have a "compliance" approach to safety ("Do what you have to, but keep OSHA off our backs"). Companies with this external focus attempt to "follow the letter of the law." They see safety as a necessary obligation and extraneous to their business. Other organizations are "safety reactive." Those with this "lock the barn door after the horse escapes" approach focus only on avoiding burdensome costs. Their programs jump on the bandwagon ("Safety program of the month"), focusing overmuch on past problems. Ironically, this responding mode leaves them vulnerable to unforeseen events and future safety changes looming just ahead.

Not surprisingly, managers are being held increasingly responsible for their organization's safety record, come performance appraisal time. True, most managers verbally support safety. But a meager endorsement isn't enough. And merely throwing money at safety rarely generates the desired returns.

But real improvement is possible. As Dr. Tom Malone, President of Milliken & Company (lauded in Tom Peters' "Thriving on Chaos") emphasized to his managers, "In those plants where the leader makes a real commitment to safety, their people make extraordinary breakthroughs."

How can you profit from high-leverage safety leadership strategies?

Plan for safety excellence

You can utilize safety as a positive organizational force. Start by setting and regularly monitoring safety objectives. Go beyond merely measuring accident frequency; evaluate your safety efforts on three levels:

1. Attitudinal (what do people say about your safety commitment and programs?)
2. Behavioral observation (do they act safer?)
3. Statistical (do accident frequency and costs wane?)

Build safety into organizational management

Be sure managers understand that safety is significant to the bottom line and is their responsibility--not just the safety director's domain. Educate them to the hidden costs of accidents; train them how to lead safety.

Make safety a criteria in promotion and hiring, in new equipment design and purchase, and in selecting contractors. Above all, steadfastly develop a work environment where people aren't looking to bail out with a workers compensation claim. Good management is good safety.

Communicate your safety expectations

Set the tone by creating a company safety statement; refer to it in memos, reports and meetings. Proclaim your safety commitment to clients.

Go on the road with your commitment. At a recent Johnson & Johnson corporate safety conference, Robert Wilson, Vice-Chairman of the Board, stated in no uncertain terms that J&J was dedicated to safety and to the protection of company's home communities--as well as to profitability. Mr. Wilson's statements were videotaped to be distributed throughout J&J's international companies for viewing by all managers and staff.

Act consistently & Reduce mixed messages

Well-constructed reinforcement systems can drive behavioral change; be sure your incentive system doesn't in fact feel like bribery, or worse, promote hiding accident reports (this prevents your seeing trends and eliminating prevalent hazards). And telling employees that "Safety is number 1" can result in animosity when production pressures mount and safety standards fall. Superior organizations maintain an ethic valuing safety, morale and production as equally important to long-term strength.

Employees and managers will read your priorities in your actions. So give strategic time and attention to safety. When you can, attend safety meetings. Talk about safety with individuals and groups. Provide resources for safety programming.

Help people who otherwise focus on their own specific tasks--human resources, industrial engineering, medical, purchasing, etc.--work together towards safety ends.

Whenever there is a serious lost-workday injury (from fracture to burn or worse) at one of Johnson & Johnson's 175 worldwide companies, that company's CEO is called to corporate headquarters in New Brunswick, NJ--on his own budget. There he and his Sector's operating committee analyze the accident, and, on the good side, discuss the methods he's employing to effectively manage organizational safety.

Enlist people's help in reaching safety goals

James River Corporation actively involves supervisors and line staff in designing safety programs and incentive systems. Their people are highly trained in observational and accident prevention skills. If you want a problem-solving safety climate, it's critical supervisors not punish or ridicule people who get hurt. Train them instead how to support injured people, promote personal responsibility and safety self-management, uncover all contributing causes of the accident (not just the obvious ones), and, most important, take action to reduce reoccurrence.

Have high expectations of safety

Make safety motivation positive and enticing, not negative and scolding. Recognize all those who contribute to safety improvements. Recognize positive safety actions, not just accidents. Encourage all staff, supervisors and managers to have high expectations also.

Real change is possible and it's being done. More and more organizations in all sectors are actively pursuing safety excellence. Managers can lead the way to reduce losses, protect their people, promote organizational creativity, and boost morale and overall strength.

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