4 - Stig Stellberg

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Date: 2006-09-18 • Page: 1 •

Annual Offshore Safety Conference Esbjerg

10 April 2014

Stig Stellberg, Statoil


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Our job is to manage risk

How can we managerisk everyday in

everything we do?

Statoil is the largest

offshore operator in the

world

Statoil operates 80% of

the fields on theNorwegian Continental

Shelf


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Potential gain

Why do we take risk?

«Where there is no risk, there is no gain.

The purpose of risk management is not to eliminate the risk itself,

but to understand the risk so you may increase the possibility to obtain a gain,and simultaneously minimise the possibility for a potential loss.»

Potential loss

The industry we operate in is associated with high risk.

However, we perceive the possibility for a gain as bigger than the possibility of losses.


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Structure

Managing an operational business is about….

Compliance is about our ability as organisation to deliver according to requirements and

expectations in order to sustain control over the businesss

Culture


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Systems that do not work as intended, could be

counterproductive and may defeat its own end.

Structure has no intrinsic value in itself - structure hasonly value when it is culture

It is important to acknowledge that..


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Structure

From structure to cu l ture?

Compl iance in pract ice?

Culture


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Leadership and interaction

The second dimension

Leadership has no intrinsic value in itself - leadership has value when it is exercised in such a way that structure becomes culture

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8 -

It is peoplethat do the job

Classification: Internal 2013-10-06


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Coorporate investigation report

• Criticise the way the operations were risk-assessed, planned and executed

• 10 barrier violations in average per Event

• 70 - 80% “of the barrier violations is onshore”

• Organizational barrier fails- «do not manage to stop on red lights»



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4/14/201411


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Where do we have to go

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Important experience from major accidents

There may be a significant gap between what theManagement believes is under control

and the facts.

How the organisation

is supposed to actHow the organisation

actually act

What k ind o f information the Management re l ies o n to

obta in a pic ture of the company 's "h eal th" is impor tant .

PSA-N



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Important experience from major accidents

There was clear information that showed

that something was wrong

The problem was:

Information that got the most attention

was limited relevant - this was overrated

Relevant information was

underestimated or not

perceived as relevant

No one challenged the relevance of

information / range


PSA-N


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16

Powerpoint driven exercises

rather than a people, process

and cultural matter

Statistics


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Not a single “lost -time incident” in seven years of drilling.

“The best performing rig that we had in our fleet and in the Gulf of Mexico.

“Everyone involved with the job . . . was completely satisfied. . .”

Complacency


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The challenge – can we not longer believe in the Iceberg theory


Did they misunderstand the iceberg theory

and believed that they had control of major accident

when they had control of personal safety?

XXX

Iceberg theory (Heinrich 1931).

Is the number of personal injuries a bad

indicator of major accidents because the

mechanisms behind minor accidents are

significantly different of them leading to a major

accident?

Do we have to challenge ourselves,asking:

1. What is it we think we know

2. What is it we think we can

http://en.wikipedia.org/wiki/File:Deepwater_Horizon_offshore_drilling_unit_on_fire_2010.jpghttp://en.wikipedia.org/wiki/File:Deepwater_Horizon_offshore_drilling_unit_on_fire_2010.jpg


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It is about closing the gap

How the organisation

is supposed to actHow the organisation

actually act

We need to have more true info rmat ion

How do we get it?



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Closing the gap


Proactive indicators say somethingabout the ability of future performance

Reactive indicators say something

on historical performance

We must know where we are

constant ly - and tomorrow


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It is people that do the job - enable them to comply……

Understand

what to do

Expressed

behaviour

(requirements)

Skills

Observation

Indicators

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How do we go to it – closing the gap - skills and observation

Define a generic, risk based pattern of behavior

On the job training

Leader to train own teams

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Operationalise our management system to ensure compliance in practice

The Statoil management system

1. Handle risk

2. Ensure quality in planning,

execution and learning

3. Develop leadership and

culture

We have a management system which defines how we work and describeshow we lead and perform our activities. Bedside?

Objectives:



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Plan Execute Evaluate

The A standard generic action pattern

... a step by step work process, focusing systematically

on managing risks and learning …

… not only perform by compliance of

requirements alone ...…barriers are measures that are planned to break a

specified undesired event

2013-11-1124 Classification: Internal

Identify and

understand

requirements

Manage

riskExecute task

Evaluate

result

Extract

learning

Understand

task and risk

TaskDesired

result

E i t t t b l t


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Ensur ing structu re to become cu l ture

25 Classification: Internal 2013-10-06

Structure

Culture


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Will it work?


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Relationship operational safety and operational readiness

Reduce probability Reduce consequence

A- standard action pattern Proaktiv emergency action

pattern

2

Incident


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Identify and understand requirements


Identify and

understand

requirements

Manage

riskExecute task

Evaluate

result

Extract

learning

Understand

task and risk

TaskDesired

result

Communicate how we work when execute task

Be a role model in your interaction with others

Train, observe, follow up and guide your group when using model

to ensure effective interaction

A-standard:How we

execute tasks

Leadership

• Requirements: Statoil’s knowledge

• Metod: How / Best practice


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Manage risk


Identify and

understand

requirements

Manage

riskExecute task

Evaluate

result

Extract

learning

Understand

task and risk

TaskDesired

result





A-standard:How we

execute tasks

Leadership

• Team assessment

• Add team knowledge in order to manage the total risk


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Execute task


Identify and

understand

requirements

Manage

riskExecute task

Evaluate

result

Extract

learning

Understand

task and risk

TaskDesired

result





A-standard:How we

execute tasks

Leadership

• Continuously risk evaluation

• Proactive time out - to stop as a part of woorking

• Compensate for changes

Right first time

Learning


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Steer – Stop - Check



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Evaluate result - Extract learning


Identify and

understand

requirements

Manage

riskExecute task

Evaluate

result

Extract

learning

Understand

task and risk

TaskDesired

result





A-standard:How we

execute tasks

Leadership

• Learn

• Evaluate gaps

• Suggest improvements


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34 Classification: Internal 2013-10-06

Stable highperformance

with less variation

ObservationLearning


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4/14/2014Classification: Internal 2011-08-26Classification: Internal 2011-08-1635 - Classification: Internal 2011-08-16

Leadership is the key

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It is peoplethat do the job

Training in management teams onshore

Delivery model


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Delivery model

DPN MC

Level 2

Level 3

Level 4

Level 5

Level 6

“350 leaders train their own teams 3 times supported by a facilitator

1200 training sessions + pre meetings and evaluating meetings


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What C&L training is about – Culture building

ActivityPattern of

behaviour Group’s and leader`s focus

Initially

Facilitator`s focus

Leader’s role

After some training


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Create a common Statoil Culture

DPN MC

Level 2

Level 3

Level 4

Level 5

Level 6


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Training offshore DPN

2013-05-28


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Basic training leaders

• 2 days onshore training

− Basic training in

understanding and use of

the Compliance and

leadership model

− First line leaders, OIM’s,

Main safety delegates,

Production manager

2013-05-2843


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Training offshore: Pre-work dialogue as a

barrier

• Firstline leaders train their team-membersin how to make the pre-work dialogue

between the responsible area tehcnician and

the workers (executor) a real barrier.

− Take part in planning the dialogue

− Observe and guide through the

dialogue

− Evaluate the dialogue after the training

have been conducted

• Main effect: The dialogue becomes a barrier

• Side effects: First line leaders are helped toobserve and train/guide their teams

− Insufficient planning are observed by

leaders

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Pre-work dialogue



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Guideline

2013-05-2846

Link to manual

Pre-work dialogueas a barrier

P d ti

https://partners3.statoil.com/sites/57a644a2-0668-4cb5-8b5a-4fcfbe4fc3f7/omraadeansvar/Document%20library/Forms/DispForm.aspx?ID=24&RootFolder=/sites/57a644a2-0668-4cb5-8b5a-4fcfbe4fc3f7/omraadeansvar/Document%20libraryhttps://partners3.statoil.com/sites/57a644a2-0668-4cb5-8b5a-4fcfbe4fc3f7/omraadeansvar/Document%20library/Forms/DispForm.aspx?ID=24&RootFolder=/sites/57a644a2-0668-4cb5-8b5a-4fcfbe4fc3f7/omraadeansvar/Document%20library


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OIM

First line

leader First lineleader

Area

responsibleExecutorPre job dialogue

Train the area

responsible in A

standard and thepre job dialogue

Train the executor

in planning

according to A

standard and the

pre job dialogue

The dialogue ensure:

Managing risk in the

sharp end.

A standard quality in

execution

Train Train

Production

manager

Process to close gaps


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Continuous improvement

SERIOUS INCIDENT FREQUENCY (SIF)Number of serious incidents in Statoil per million hours worked

2,9

2,31,9 1,9 1,9

1,7

1,20,9 0,9

0

1

2

3

4

2004 2005 2006 2007 2008 2009 2010 2011 2012

YTD

2013 2014 2015



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The Compliance & Leadership mod el is the most impo rtant strategic tool for improved safety performance


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Forstå

oppgave og

risiko

Identifisere

krav

Utførendes

kunnskap

Utføre

oppgave

Evaluere

resultat

Lederskap i hverdagen

(Kommunikator – rollemodell – trene/veilede)

LeveranseOppgave

Utførende

Leder

Samhandling

Forbedre

4/14/2014

The Norwegian Oil and Gas Association guideline – industry standard

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Make common cause – close the rutine job gap - contractors

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52 - Classification: Internal 2011-09-16

UlykkeSTOP

4/14/201452


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Thank you for listening

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4 - Stig Stellberg