Prsentation du 16 dc 2005

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effective
effective
organization
safety
safety
organization
delivering
delivering
results
results
Health Safety roadmap
Jon Swierenga Director of Safety Lafarge
Aggregates and Concrete
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World leader in building materials

• Leadership positions in all our Businesses
• World leader in Cement
• No. 1 in Aggregates No. 3 in Concrete
• No. 3 worldwide in Gypsum
• Operates in 76 countries
• Employs 90,000 people
• 2,000 industrial sites worldwide
• 17.6 billion euros in Sales1.9 billion euros in
  Net Income Group share (2007)
• Listed on Euronext Paris stock exchange

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A well balanced geographical portfolio,a
worldwide presence in 76 countries on every
continent
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Western Europe Workforce 24,600 Sales 6,280 M
Central and Eastern EuropeWorkforce
9,800 Sales 905 M
North America Workforce 17,100 Sales 4,516 M
Asia Pacific Workforce 13,300 Sales 1,476 M
MediterraneanBasin Workforce 3,450 Sales 671 M
South America Workforce 4,450 Sales 707 M
Africa Workforce 7,400 Sales 1,414 M
Lafarge 2005 figures
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A balanced worldwide presence
Sales by business line
Sales bygeographic area
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Cultural diversity
Split of employees by region

• Making diversity an asset
• For a common performance culture
• For sharing knowledge and know-how
• For targeting excellence everywhere
• For applying our values

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Safety The No. 1 Priority to achieve excellence

• The best organizations in terms of Health
  Safety the best performers in their sector
• Operational discipline
• Motivated work force
• Excellent overall communication
• Strong corporate image
• Full integration of safety in business processes
• Accountability for safety performance
• Visible leadership
• Safety is at the heart of our values and our
  performance culture
• Safety is Lafarges number 1 priority

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Our long term goal World class level

• Near zero fatality rates (from 1.3? to 0.2)
• Virtual elimination of LTIs (from 1.66? to 0.5)
• Low total injury frequency rate (from 15? to 4)
• Long term sustainability over time and over all
  units (5-10 years)
• Contractors work to the same standards as our
  employees
• Low off the job injury rates
• Low level of occupational health incidents
• Recognized by our stakeholders, our labor unions,
  NGOs and the business community to be world
  leader

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Our Efforts Deliver Results
Lost Time Injury Frequency Rate (LTIFR)
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8.35
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6.56
7
6
4.68
5
4
3.22
2.51
3
1.8
1.55
2
1
0
2002
2003
2004
2005
2006
2007
T-2008
2009
Number of accidents with an injury leading to
loss of time by million of hours worked.
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Fatalities by victim classification
Four (4) of the 2006 fatalities were in the
Roofing Division
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Fatalities by Geography
2
4
0
6
10
6
3
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Lafarge Health Safety Challenges

• Our size and geographical diversification
• Number of sites (27 languages)
• Local HS culture
• Major growth in emerging markets
• The nature of our business
• Many activities take place outside our sites
• Contractor management
• Logistics Transport

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Safety Contact

• 80.000 Employees at work
• 2.500.000 Unsafe acts everyday
• Dice rolls
• Results from rolling the dice (in 2005)
• Everyday, 2 serious accidents (LTI)
• Every 9 days, 1 fatality
• Luck is the only difference between an unsafe act
  and a fatality
• -gt Attack the 2.500.000 unsafe acts

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Exposures

• RMX Trucks
• Vehicle accidents are 1 cause of employee
  fatality
• Haul Trucks
• Number one cause of injury in Aggregates
• Material Handling
• Conveyors, forklifts
• Road Construction and Paving
• Repair and Maintenance Cement and AC

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Methodological background

• 91 locations have been assessed
• 64 plants representing gt 10,000 employees
• 12 AC, 22 Cement, 12 Gypsum, 18 Roofing
• 21 business units
• 6 technical centres
• 233 interviews were conducted
• 165 Managers (Comex, VPs, BU leaders)
• 68 Safety Professionals
• 1 846 surveys have been collected
• 1617 general safety surveys
• 229 logistics questionnaires, sites HR managers
  questionnaires, plant managers questionnaires,
  contractors safety questionnaires, high risk
  operations questionnaires
• 6 Focus panels composed of Lafarge managers
  working on Safety and contractors, leadership
  HR, high risks operations, business processes,
  organization, logistics.

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Lafarge Safety culture is between Control and
Acceptance stage
Distribution of Lafarge sample sites according to
DuPont 12 essential elements of world-class
safety management
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To achieve world class excellence, our Safety
Culture must evolve significantly

• Based on the key findings of the Group Safety
  Initiative assessment since January 2006, the
  roadmap challenges the Group and its stakeholders
  in actions aimed at creating a step change in our
  Safety performance

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The key findings supporting the roadmap

• Substantial progress has been made in injury rate
  and safety awareness
• There are many good programs in the organisation
  to build on
• The safety problem is not perceived as critical
• There are not enough applied rules and
  standards
• The accountability line from top to bottom of the
  organisationis not visible
• Current safety and organisational capabilities
  are insufficient to reach goals
• A structured approach to learning from best
  practices is weak

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Substantial progress has been made in reporting
lost time injury rate and safety awareness

• The CEO has clearly stated the increased priority
  of safety
• Safety is widely stated as the first priority at
  all levels of the organisation
• All operational managers (middle and above) have
  somewhat included Safety activities in their
  agenda
• Acquired sites predominantly express a positive
  safety impact from their integration into
  Lafarge
• Reported Lost Time Injury rate has been cut by
  50 between 2002 and 2005

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There are many good programs in the organisation
to build on

• Some noticeable strengths at group level
• All division Safety function leaders are
  knowledgeable, visible active
• A group HSMS document exists, as a reference
  document
• There are a few examples of good strategic
  practice, narrowly applied, such as
• Post-acquisition safety planning
• Use of safety as an integration facilitator
• Several Initiatives offer opportunities for
  leveraging at Group level
• LNA structured and cross-divisional approach
• Felt leadership development in UK AC
• System for identifying good and best practices in
  Gypsum Division
• There are many examples of good operational
  practices such as
• Training guidelines, Safety DVD (Trip/Fall, ) in
  Roofing Division
• Driver training in ACA

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The safety problem is not perceived as critical

• The Group safety performance is not communicated
  efficiently down the line
• There are significant examples of inconsistent
  safety leadership
• The smaller the site, the longer it takes to
  establish statistically significant trend results

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There are not enough applied rules and
 standards 

• There is no shared and common understanding of
  what is meant by  rule 
• People believe rules are open to interpretation
  and compromise
• A large majority of people admit not fully
  complying with safety rules
• The reaction to breaking rules is not consistent
  and in some cases too weak
• There are no global Standards in Lafarge
• Safety professionals have a lot of value for
  Standards
• There is a fear that corporation will set too
  (many) prescriptive requirements
• There are still cases of law breaking practices

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The accountability line from top to bottom of the
organisation is not visible

• There is no common understanding of what is meant
  by accountability
• Safety professionals are still widely considered
  as being accountable for safety management
• Failure or success in managing safety has little
  consequence
• Common view is that not performing on safety is
  less serious than not performing on
  financial/production
• Main consequence is linked to personal objective,
  i.e. 2-5 financial impact on total compensation
• Integration of safety in managers selection and
  promotion is embryonic

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Current safety and organisational capabilities
are insufficient to reach goals

• Safety personnel are often part-timers
• There is inconsistency in safety professionals
  job description and profile
• Safety organisation capabilities have not been
  enhanced to support goals
• Criteria for allocation of safety personnel are
  not formalised (mainly legal requirement)
• The organisation lacks skills to manage
  behavioural aspect of safety
• Many people recognize not being comfortable in
  engaging others on safety talk
• Behaviour is recognized as a key lever to
  progress further, but with little clue on how to
  manage it
• Some fundamental safety skills are not
  consistently developed
• Auditing, Observations and Incident investigation
  
• Front line supervision lacks safety management
  skills

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A structured corporate approach to learning from
Best Practices is weak

• Communication processes
• Sharing across Divisions is limited
• Group sharing is focused on fatal accidents
• The divisional safety leaders meet bimonthly and
  this meeting is the only corporate level safety
  best practice exchange forum
• Limited cross divisional transfers of SH staff
• There are generic activities repeated regularly
  that do not use a common approach incorporating
  learning e.g. project management, acquisition
  safety screening, high risk operations
• There is no Group agreed incident classification
  system

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The Health Safety roadmap engages actions in
five dimensions
Living Safety
Building World Class Foundations

• Revised HS Policy
• HS Safety Principles
• Mandatory Group Standards in updated HSMS
• Governance Standards
• Operations Standards
• HS in Management Cycle Investment
• HS in HR progressive discipline policy
• HS Competency Centre

• Effective Communication
• Incident Investigation process
• Job Hazard Assessment
• HS Steering Committees
• Safety Dialog Tours
• Auditing process
• Team-based safety

Leadership Accountability

• Sponsorship from the Top
• Visible Felt leadership
• Clear Line Accountability for Implementation,
  Communication and Compliance

• Multi-year HS Plan per unit
• Drive roadmap implementation at unit level
• Annually revised in Management Cycle
• Consistent deadline and progress
• Safety Measurement System, including auditing and
  leading indicators
• Focused group Initiative on Logistics
• Focused group Initiative on Contractors

• Adequate Safety and Change Mgt Skills
• 1.1) Leaders managers training
• 1.2) Supervisors training
• 1.3) Operators training
• Capable Recognized HS Staff
• Best Practices extraction process

Learning and Sharing
Sustaining Local Improvement
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Focus of some of the key actions

• Reaffirm the Safety sponsorship
• Edit and share a revised Health Safety Policy
  and Safety Principles
• Set up mandatory Group standards
• Set up leadership skills training for BU managers
  and above
• Set up and clarify the HS organization
• Set up a Group Incident Investigation and Report
  system
• Pursue focused initiatives on critical issues
  logistics and contractors

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Sponsorship from the top

• The Group CEO is the Sponsor of Safety at Group
  level
• The BU manager is the Sponsor of Safety at BU
  level

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Edit and share a revised Health Safety Policy
and Safety Rules

• The revised Health Safety Group policy will be
  published in the coming weeks
• To be signed by Bruno Lafont and each site
  manager
• To be shared formally with all Employees
• Together with the Safety Rules
• Each BU must comply with these Rules within an
  agreed deadline

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Health Safety Rules

• RESPONSIBILITY Line management is responsible
  for Health Safety implementation, communication
  and compliance
• TRAINING Employees, managers and contractors
  must be trained to work safely and manage Health
  Safety in their area
• EVERYONE Everyone working for Lafarge, including
  contractors, must respect Health Safety rules
• IMPROVEMENT All units1 must have an annualised
  Health Safety improvement plan as part of the
  Performance Plan
• ORGANIZATION All units1 must have a Health
  Safety committee, composed of managers and
  relevant experts and partners
• COMPLIANCE All units1 must comply with the Group
  Health Safety standards

1 Units BU and below (site, area, sector,
cluster..) 2 Incidents as defined in the Group
Incident Classification
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Health Safety Rules

• REPORTING All incidents2 and accidents must be
  reported at the appropriate level, investigated
  and learnings shared
• TRANSPARENCY Safety results must be visibly
  communicated to everyone
• MEASUREMENT All operations must be regularly
  audited against the Group policy, Health Safety
  Management Systems and Standards
• SUPPORT Health Safety Organisation must be
  resourced and trained to provide support to the
  line management
• CONDITION OF EMPLOYMENT Compliance with these
  Rules is a condition of employment and a criteria
  for career development

1 Units BU and below (site, area, sector,
cluster..) 2 Incidents as defined in the Group
Incident Classification
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Mandatory Group Standards

• To reduce risks while driving efficient
  convergence towards world class results
• To define what must be done, the Business Units
  defining the how
• Part of the Group HS management system
• Two categories
• Governance standards related to core safety
  management processes
• Operation standards related to specific risks

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The HS Competency Centre, supported by HS
community, facilitates convergence to the goal
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Health Safety is integrated across business and
regions through committees and networks

• Steering Committee
• Serious Accident Review
• Roadmap progress
• KPI
• 1h every month as part of Comex meeting
• Advisory Group
• Integrate Operational Leadership, Functions and
  HS into one working team
• Propose Strategic Orientation and ambition
• Oversee Safety Initiatives of the Group
• Drive Convergence between divisions
• Ensure Alignment with business priorities
• 2h every month
• Safety Networks
• Focus on one specific topic
• Drive learning and sharing across borders
• Provide technical solution to problem
• Meet as required and include experts (HS or
  related to topic, e.g. Electrical expert)

Steering Committee COMEX HS VP
Safety Advisory Group Ops Mgrs from Div HS VP
Directors HR Comm (other as needed)
Lock-Out Network
Occupational Health Network
Incident Investigation Network
Project Safety Network
Acquisition Safety Network
Illustrative
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Logistics and Contractors are critical issues
requiring specific focused initiatives

• Logistics and contractors are
• the areas where most fatalities occur
• affecting operations in all countries
• strongly linked to external stakeholders that
  require specific approach
• more dependent of local environment (authorities,
  market, infrastructure, local safety culture)
  than other activities
• involving multiple responsibilities in the
  organisation purchasing, logistics, maintenance,
  engineering, sales, legal
• addressed through a large number of local
  initiatives
• requiring in some aspect a serious challenge of
  operating model

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Expectations for Division

• Endorse revised HS policy and promote it Evian
• Agree on full-time HS director reporting to
  EVP completed
• Dedicate 1h for monthly HS update underway
• Serious Incident Review
• Roadmap Progress
• KPI
• Take active part to HS Roadmap
  communication underway
• Require all BU to submit HS Improvement Plan by
  end of November
• Align Division HS programs with Group roadmap
  by end of December
• Participate in HS leadership training/coaching by
  end of June 07
• Personally lead incident investigation as soon as
  trained

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Expectations for BU
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TodaysHS Culture Are we really anywhere close
to our goal when

• An employee nearly loses an eye in a BU 11 months
  after the launch of the PPE standard.and he was
  not wearing safety glasses
• A project suffers a fatality last November, is
  audited 3 months later where massive deviations
  are noted and is revisited again 2 months later
  and nothing has improved
• A contractor enters a plant unannounced in
  January and dies after deciding to clean a
  running conveyor
• An experienced employee dies while climbing a
  live surge pile
• A employee enters a clogged silo without permit
  nor PPE despite having been trained and with
  clear warnings on site not to do so
• In one single day last week, we suffer at least
  one fatality with the potential for 30 more in 2
  separate incidents that would have been near
  replicas of 2007 fatalities

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HS Culture Are we really anywhere close to our
goal when
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HS Culture Are we really anywhere close to our
goal when
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Today Where are we?

• Engagement level much higher across company
• Employees see difference and are motivated by
  what they see
• Operations has more ownership of safety
  procedures
• Executives have keener awareness of risks and
  root causes due to Serious Event Review Process
• Safety capex is easier to get
• Safety is part of the personal objectives (30)
  focusing operational behaviours
• All operational meetings allocate time to safety
• Injury frequency rates are seeing double digit
  improvements across NA

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Lafarge Safety culture is between Control and
Acceptance stage
Distribution of Lafarge sample sites according to
DuPont 12 essential elements of world-class
safety management
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effective
effective
organization
safety
safety
organization
delivering
delivering
results
results