Guidelines for Managing Process Safety Risks During Organizational Change

253 Pages·2013·16.275 MB·English

by  CCPS

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.
GUIDELINES FOR
MANAGING PROCESS
SAFETY RISKS DURING
ORGANIZATIONAL CHANGE
Center for Chemical Process Safety
New York, NY
«^Γ^^^^e An AplChE Technoslogy Allianc e
Center for Chemical Process Safety
WILEY
A JOHN WILEY & SONS, INC., PUBLICATION
Copyright © 2013 by American Institute of Chemical Engineers, Inc.
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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
Printed in the United States of America.
10 9 8 7 6 5 4 3 21
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 Com-
mittee 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 infor-
mation 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.
v
CCPS dedicates this first edition of Guidelines for Managing Process Safety Risk
During Organizational Change to Bob G. Perry. CCPS' longest serving staff mem-
ber, 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 contribu-
tions to CCPS throughout the years and for his continued support and commitment
to Process Safety, and remember Gayle fondly.
VII
CONTENTS
List of Tables xiii
List of Figures xv
Files on the Web Accompanying This Book xvii
Acronyms and Abbreviations xix
Glossary xxiii
Acknowledgements xxv
Preface xxvii
1. INTRODUCTION AND SCOPE 1
1.1 Case Study: Hickson and Welsh Ltd.—England (1994) 1
1.1.1 Lesson Learned 2
1.2 Introduction 3
1.3 The Need for Management of Organizational Change 5
1.4 Organization of this Book 6
1.5 A History of Organizational Change Management 11
1.6 Definitions Related to Management of Organizational Change 16
References 18
2. CORPORATE STANDARD FOR ORGANIZATIONAL CHANGE 21
MANAGEMENT
2.1 Case Study: BP—Grangemouth, Scotland (2000) 21
2.2 OCM Background 24
2.3 Management Commitment 25
2.4 OCM Policy 26
2.5 OCM Workflow 27
2.6 OCM Procedure 28
2.7 Definition of Organizational Change 29
2.8 Roles and Responsibilities 32
2.9 Initiate an Organizational Change 32
2.9.1 Example OCM Case 33
2.10 Review the Change 34
2.11 OCM Risk Assessment 35
2.11.1 Preparation—Selecting the OCM RA Team 36
2.11.2 Preparation—Gathering Relevant Data 37
ix
x Guidelines For Managing Process Safety Risks During Organizational Change
2.11.3 Preparation—Selecting the OCM RA Method(s) and 39
Tool(s)
2.11.4 Facilitation of the Risk Assessment 52
2.11.5 Documenting the Risk Assessment 54
2.12 Action and Implementation/Transition Plans 55
2.12.1 Example OCM Case 58
2.13 Postimplementation Monitoring 59
2.13.1 Example OCM Case 60
2.14 Closeout 61
2.15 Conclusion 61
References 62
3. MODIFICATION OF WORKING CONDITIONS 65
3.1 Case Study: Esso—Longford, Victoria, Australia (1998) 65
3.1.1 Lessons Learned 61
3.2 Modifying Location, Communications, or Time Allocation for 68
People
3.3 Case Study: Changes in Shift Schedules and Staffing During 69
Turnarounds
3.3.1 Lessons Learned 71
3.4 Changes to Terms and Conditions of Employment 72
(e.g., Hours, Shifts, Allowable Overtime)
3.5 Staffing During Turnarounds, Facility-Wide Emergencies, or 74
Extreme Weather Events
3.6 Impacts and Associated Risks 76
3.7 Special Training Requirements 79
3.8 Conclusion 80
References 81
4. PERSONNEL CHANGES 83
4.1 Case Study: Union Carbide—Bhopal, India (1984) 83
4.1.1 Lessons Learned 85
4.2 Case Study: Bayer CropScience, LLC—Institute, West Virginia, 87
USA (2008)
4.2.1 Lessons Learned 88
4.3 Changes in Plant Management (e.g., Plant Manager or EHS 91
Manager)
4.4 Replacement of a Subject Matter Expert 92
4.5 Replacing the Incumbent in a Position that Directly Affects 93
Process Safety
4.6 Strikes, Work Stoppages, Slowdowns, and Other Workforce 93
Actions
4.7 Emergency Response Team Staffing 95
4.8 Impacts/Associated Risks 95
Contents XI
4.9 Organizational Change Procedures versus OCM for New Hires, 97
Promotions, etc.
4.10 Conclusion 98
References 98
5. TASK ALLOCATION CHANGES 99
5.1 Downsizing Examples 99
5.2 Task Allocation Changes 101
5.3 Job Competency Change 102
5.4 Case Study: Bayer CropScience LLC—Institute, West Virginia, 103
USA (2008)
5.4.1 Lessons Learned 104
5.5 Assigning New Responsibilities 105
5.6 Temporary Backfilling 106
5.7 Vanishing Task Allocations 106
5.8 Case Study: BP—Whiting, Indiana, USA (1998-2006) 107
5.8.1 Lessons Learned 108
5.9 Impacts/Associated Risks 109
5.10 Conclusions 111
References 112
6. ORGANIZATIONAL HIERARCHY CHANGES 113
6.1 Centralization or Decentralization of Job Functions 114
6.2 Case Study: Esso—Longford, Victoria, Australia (1998) 115
6.2.1 Lessons Learned 115
6.3 Reorganizations and Delayering the Hierarchy 117
6.4 Impacts/Associated Risks 119
6.5 Changes to Span of Control 121
6.6 Impacts/Associated Risks 122
6.7 Linear vs. Matrix Organization 122
6.8 Case Study: BP—Texas City, Texas, USA (2005) 124
6.8.1 Lessons Learned 125
6.9 Impacts/Associated Risks 126
6.10 Acquisitions, Mergers, Divestitures, and Joint Ventures 127
6.11 Case Study: Anonymous, USA (1998) 127
6.11.1 Lessons Learned 128
6.12 Associated Risks 128
6.13 Case Study: Union Carbide—Bhopal, India (1984) 129
6.13.1 Lessons Learned 129
6.14 Changing Service Providers 132
6.15 Impacts/Associated Risks 132
6.16 Conclusion 133
References 134
xii Guidelines For Managing Process Safety Risks During Organizational Change
7. ORGANIZATIONAL POLICY CHANGES 135
7.1 Case Study: Dupont—Delaware, USA (1818) 135
7.1.1 Lessons Learned 13 6
7.2 Changes to Mission and Vision Statements 136
7.3 New and Revised Corporate Process Safety Related 138
Policies/Procedures
7.4 Major Changes to Policy or Budgets for Maintenance or Operations 139
7.5 Impacts/Associated Risks 140
7.6 In/Outsourcing of Key Departmental Functions 142
(e.g.., Engineering Design or Maintenance)
7.7 Staffing-Level Policy Changes (Shutdowns, Turnarounds, Startups) 144
7.8 Special Training Requirements 146
7.9 Conclusion 146
References 147
APPENDIX A: EXAMPLE TOOLS FOR EVALUATING 149
ORGANIZATIONAL CHANGES
A.l What-If Analysis 149
A.2 Checklists 150
A.3 Other Risk Assessment Tools 188
A.4 Special Competency Assessment for Control Room Staff 188
References 198
APPENDIX B: EXAMPLE PROCEDURES FOR MANAGING 199
ORGANIZATIONAL CHANGES
INDEX 237