Guidelines for Managing Process Safety Risks During Organizational Change

By CCPS (Center for Chemical Process Safety)

An understanding of organizational change management (OCM) — an often overlooked subject — is essential for successful corporate decision making with little adverse effect on the health and safety of employees or the surrounding community. Addressing the myriad of issues involved, this book helps companies bring their OCM systems to the same degree of maturity as other process safety management systems. Topics include corporate standard for organizational change management, modification of working conditions, personnel turnover, task allocation changes, organizational hierarchy changes, and organizational policy changes.

• Language: English
• Publisher: Wiley
• Release date: Dec 13, 2013
• ISBN: 9781118530511

Book preview

Contents

Cover

Half Title page

Title page

Copyright page

List of Tables

List of Figures

Files on the Web Accompanying This Book

Acronyms and Abbreviations

Glossary

Acknowledgements

Preface

Chapter 1: Introduction and Scope

1.1 Case Study: Hickson and Welsh Ltd.—England (1994)

1.2 Introduction

1.3 The Need for Management of Organizational Change

1.4 Organization of this Book

1.5 A History of Organizational Change Management

1.6 Definitions Related to Management of Organizational Change

References

Chapter 2: Corporate Standard for Organizational Change Management

2.1 Case Study: BP—Grangemouth, Scotland (2000)

2.2 OCM Background

2.3 Management Commitment

2.4 OCM Policy

2.5 OCM Workflow

2.6 OCM Procedure

2.7 Definition of Organizational Change

2.8 Roles and Responsibilities

2.9 Initiate an Organizational Change

2.10 Review the Change

2.11 OCM Risk Assessment

2.12 Action and Implementation/Transition Plans

2.13 Postimplementation Monitoring

2.14 Closeout

2.15 Conclusion

References

Chapter 3: Modification of Working Conditions

3.1 Case Study: Esso—Longford, Victoria, Australia (1998)

3.2 Modifying Location, Communications, or Time Allocation for People

3.3 Case Study: Changes in Shift Schedules and Staffing During Turnarounds

3.4 Changes to Terms and Conditions of Employment (e.g., Hours, Shifts, Allowable Overtime)

3.5 Staffing During Turnarounds, Facility-Wide Emergencies, or Extreme Weather Events

3.6 Impacts AND Associated Risks

3.7 Special Training Requirements

3.8 Conclusion

References

Chapter 4: Personnel Changes

4.1 Case Study: Union Carbide—Bhopal, India (1984)

4.2 Case Study: Bayer Cropscience, LLC—Institute, West Virginia, USA (2008)

4.3 Changes in Plant Management (e.g., Plant Manager or EHS Manager)

4.4 Replacement of a Subject Matter Expert

4.5 Replacing the Incumbent in a Position That Directly Affects Process Safety

4.6 Strikes, Work Stoppages, Slowdowns, and Other Workforce Actions

4.7 Emergency Response Team Staffing

4.8 Impacts/Associated Risks

4.9 Organizational Change Procedures versus OCM for New Hires, Promotions, etc.

4.10 Conclusion

References

Chapter 5: Task Allocation Changes

5.1 Downsizing Examples

5.2 Task Allocation Changes

5.3 Job Competency Change

5.4 Case Study: Bayer Cropsscience LLC—Institute, West Virginia, USA (2008)

5.5 Assigning New Responsibilities

5.6 Temporary Backfilling

5.7 Vanishing Task Allocations

5.8 Case Study: BP—Whiting, Indiana, USA (1998–2006)

5.9 Impacts/Associated Risks

5.10 Conclusions

References

Chapter 6: Organizational Hierarchy Changes

6.1 Centralization or Decentralization of Job Functions

6.2 Case Study: Esso—Longford, Victoria, Australia (1998)

6.3 Reorganizations and Delayering the Hierarchy

6.4 Impacts/Associated Risks

6.5 Changes to Span of Control

6.6 Impacts/Associated Risks

6.7 Linear vs. Matrix Organization

6.8 Case Study: BP—Texas City, Texas, USA (2005)

6.9 Impacts/Associated Risks

6.10 Acquisitions, Mergers, Divestitures, and Joint Ventures

6.11 Case Study: Anonymous, USA (1998)

6.12 Associated Risks

6.13 Case Study: Union Carbide—Bhopal, India (1984)

6.14 Changing Service Providers

6.15 Impacts/Associated Risks

6.16 Conclusion

References

Chapter 7: Organizational Policy Changes

7.1 Case Study: Dupont—Delaware, USA (1818)

7.2 Changes to Mission and Vision Statements

7.3 New and Revised Corporate Process Safety Related Policies/Procedures

7.4 Major Changes to Policy or Budgets for Maintenance or Operations

7.5 Impacts/Associated Risks

7.6 In/Outsourcing of Key Departmental Functions (e.g., Engineering Design or Maintenance)

7.7 Staffing-Level Policy Changes (Shutdowns, Turnarounds, Startups)

7.8 Special Training Requirements

7.9 Conclusion

References

Appendix A: Example Tools for Evaluating Organizational Changes

A.1 What-If Analysis

A.2 Checklists

A.3 Other Risk Assessment Tools

A.4 Special Competency Assessment for Control Room Staff

References

Appendix B: Example Procedures for Managing Organizational Changes

References

Index

GUIDELINES FOR

MANAGING PROCESS

SAFETY RISKS DURING

ORGANIZATIONAL CHANGE

This book is one in a series of process safety guideline and concept books published by the Center for Chemical Process Safety (CCPS). Please go to www.wiley.com/go/ccps for a full list of titles in this series.

Title Page

Copyright © 2013 by American Institute of Chemical Engineers, Inc.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey. All rights reserved.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, [phone], fax [phone], or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department. John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, [phone], fax [phone], or online at http://www.wiley.com/go/permission.

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Library of Congress Cataloging-in-Publication Data:

Guidelines for managing process safety risks during organizational change / Center for Chemical Process Safety, New York, NY.

     pages cm.

  Includes bibliographical references and index.

  ISBN 978-1-118-37909-7 (hardback)

  1. Chemical industry—Safety measures. 2. Chemical industry—Management. 3. Organizational change—Health aspects. 4. Industrial safety. I. American Institute of Chemical Engineers. Center for Chemical Process Safety.

  TP150.S24G857 2013

  363.11—dc23

20112035829

It is sincerely hoped that the information presented in this document will lead to an even more impressive safety record for the entire industry. However, the American Institute of Chemical Engineers, its consultants, the CCPS Technical Steering Committee and Subcommittee members, their employers, their employers’ officers and directors, and ioMosaic Corporation and its employees do not warrant or represent, expressly or by implication, the correctness or accuracy of the content of the information presented in this document. As between (1) American Institute of Chemical Engineers, its consultants, CCPS Technical Steering Committee and Subcommittee members, their employers, their employers’ officers and directors, and ioMosaic Corporation and its employees and (2) the user of this document, the user accepts any legal liability or responsibility whatsoever for the consequences of its use or misuse.

CCPS dedicates this first edition of Guidelines for Managing Process Safety Risk During Organizational Change to Bob G. Perry. CCPS’ longest serving staff member, Bob served as the second Executive Director of CCPS from 1993–1997, and since then continues to provide support and direction as a staff consultant. Bob’s leadership and operational skills honed during a long career with Union Carbide Corporation helped CCPS in its efforts to build from its early base, and resulted in the development and deployment of many new supporting tools and guidelines as well as the mentoring and development of both members and staff. Bob, along with his wife Gayle, became the historians of the organization, serving as the official CCPS archivist and photographer for many years. We thank Bob for his contributions to CCPS throughout the years and for his continued support and commitment to Process Safety, and remember Gayle fondly.

LIST OF TABLES

Table 1.1. A Selection of OCM-Related Incidents

Table 1.2. 7S Model – Organizational Aspects

Table 2.1. Comparison of MOC and OCM Workflow Tasks

Table 2.2. OCM RA Methods and Tools Comparison

Table 2.3. Activity Mapping Form 1 Old Role

Table 2.4. Activity Mapping Form 2 New Role

Table 3.1. A Potential Atypical Scenario and Mitigation Options

Table 4.1. Potential Risks Associated with Personnel Turnover

Table 5.1. Examples of Disturbances, Accidents, and Major Costs Where Downsizing Has Played a Major Role (Sweden)

Table 5.2. Task Allocation Change Impact What-Ifs

Table 5.3. Examples of HAZOP Parameters for Organizational Change Review

Table A.1. Management Leadership, Commitment, and Accountability

Table A.2. Risk Assessment and Management

Table A.3. Facilities Design and Construction

Table A.4. Operations and Maintenance

Table A.5. Management of Change

Table A.6. Information/Documentation

Table A.7. Personnel and Training

Table A.8. Third-Party Services

Table A.9. Incident Investigation and Analysis

Table A.10. Community Awareness and Emergency Preparedness

Table A.11. Operations Integrity Assessment and Improvement

Table A.12. Process Safety

Table A.13. Generic What-If

Table A.14. Example Checklist for Organizational Management of Change

Table A.15. Example MOC Organizational Change Checklist

Table A.16. Example Task List

Table A.17. Ladder for Management Procedures

Table B.1. Operations and Safety Effectiveness Checklist

Table B.2. Safety and Health Management Checklist

Table B.3. Safe Work Practices Checklist

Table B.4. Process Safety Management/Risk Management Program (PSM/RMP) Checklist

Table B.5. Contractor Safety Checklist

Table B.6. Emergency Response Checklist

Table B.7. EH&S Regulatory Compliance Checklist for Selected Regulations

Table B.8. Occupational Health Checklist

Table B.9. Process Unit Operability and Safety Effectiveness Checklist

Table B.10. Management of Personnel Change (MOPC) Checklist

LIST OF FIGURES

Figure 2.1. Example Work Flow for OCM Procedure

Figure 3.1. A Simplified Schematic of the Demethanizer Column and Associated Equipment

Figure A.1. Flow Chart of the Assessment Method for Documenting Work Arrangement

FILES ON THE WEB ACCOMPANYING THIS BOOK

Access Managing Process Safety Risks During Organizational Change tools and documents using the Microsoft Explorer web browser at:

http://www.aiche.org/ccps/publications/OrgChangeMaterial.aspx

Password: ORGCHANGE2012

ACRONYMS AND ABBREVIATIONS

GLOSSARY

Activity mapping

A process by which activities required to accomplish a particular objective are evaluated and assigned to individuals or roles within the organization.

Bow tie

A method used to graphically represent a hazard and the possible causes and outcomes related to that hazard.

Management of change (MOC)

A system to identify, review, and approve all modifications to equipment, procedures, raw materials, and processing conditions—other than replacement in kind, prior to implementation.

Organizational change

Any change in position or responsibility within an organization or any change to an organizational policy or procedure that affects process safety.

Organizational change management

A method of examining proposed changes in the structure or organization of a company (or unit thereof) to determine whether the changes introduce new hazards or increase the risk to employee health and safety, the environment, or the surrounding community.

Process safety management (PSM)

A program or activity involving the application of management principles and analytical techniques to ensure the safety of process facilities. Sometimes this is also called process hazard management, safety engineering, or technical safety. Each principle is often termed an element or component of process safety.

Risk assessment

The assessment of risk presented by a change. Considers all possible outcomes and their significance, as well as the likelihood of realizing those outcomes.

Task mapping

A process by which work tasks are evaluated and assigned to certain individuals or roles within the organization.

ACKNOWLEDGEMENTS

The American Institute of Chemical Engineers (AIChE) and the Center for Chemical Process Safety (CCPS) express their appreciation and gratitude to all members of the Organizational Change Management Project and their CCPS member companies for their generous support and technical contributions in the preparation of these Guidelines. The AIChE and CCPS also express their gratitude to the team of writers from ioMosaic Corporation.

SUBCOMMITTEE MEMBERS: