From Strategy to Result

From strategy to result: how to build an effective HSE management system

Developing a Health, Safety, and Environment (HSE) management system is not just a set of isolated measures, but a comprehensive process that requires a clear understanding of the company's goals and principles. During the session dedicated to strategy and tactics in developing an HSE management system, Dmitry Kostenko, HSE Director at Uralchem, shares his experience in developing and implementing a strategy, and also analyzes typical mistakes and problems that companies face on this path.

What is an HSE strategy and why is it needed?

The speaker defines strategy as an action plan to achieve a long-term and ambitious goal. In the context of HSE, a strategy allows synchronizing the efforts of the safety function with the overall business goals of the company. It provides a common understanding of what management decisions have been made and where the company is heading, and also unites the decisions of managers at different levels.

• Communicating meaning: The strategy helps convey to every employee, from top managers to workers on the site, what the company is striving for and how it plans to achieve it.
• Proactive performance indicator: The implementation of measures embedded in the strategy can serve as a proactive indicator of management performance.
• Resource prioritization: In conditions of limited resources, a strategy helps determine priority areas of action and avoid wasting funds.

Strategy goals: risk management as the foundation

According to Dmitry Kostenko, the main goal of an HSE strategy should be the elimination of critical business risks. The occupational safety function is, first and foremost, risk management. The strategy should focus on three key points:

• Eliminating fatalities and, as a result, business suspension.
• Eliminating fires resulting in asset loss.
• Eliminating accidents that can lead to partial or complete destruction of facilities.

Production workers, management, and supporting functions easily unite around these goals, which contributes to the successful integration of the strategy into the overall business model.

Key directions and strategy cascading

The presentation details the process of cascading the strategy to the enterprise level. The speaker highlights three main blocks of activities:

• Maintenance: Measures necessary to comply with legislation and maintain the current level of safety.
• Development: Programs and measures arising from the strategy and aimed at achieving long-term goals (e.g., modernizing fire extinguishing systems, developing a safety culture).
• Verification: Control measures, including training exercises, to assess the effectiveness of implemented solutions.

An important element is feedback, which allows adjusting action plans depending on changing conditions and results.

Typical problems when implementing a strategy

Dmitry Kostenko speaks openly about the problems that can be encountered when implementing a strategy:

• Lack of management support: Without top management involvement, the strategy is doomed to fail.
• Lack of funding: The strategy must be supported by real budgets. It is important to align ambitions with the company's financial capabilities.
• Changes in business scale: External factors may require a revision of the strategy.
• Local resistance: Disagreement from enterprise directors can slow down the implementation of changes.
• Staff shortages: A lack of qualified specialists in the HSE function complicates the implementation of plans.

What you will learn from this webinar:

• How to formulate HSE strategy goals so that they are understood and supported by the business?
• How to link the achievement of strategic goals with the necessary costs and justify the budget?
• How to properly cascade the strategy to the level of specific enterprises and workplaces?
• Why an increase in injury rates at the initial stage of strategy implementation can be a positive signal?
• How to diagnose the current state of the safety management system before developing a strategy?