“Budget, ROI to company, staff and overall value”

David Pais

Bay Area Safety Symposium – March 5, 2014

Building the Capacity of Your EHS Department

Building the Capacity of your EHS

DepartmentObjectives include:

Discuss budgetary constraints, tasks and methodology

Demonstrate ROI process and steps

List and brainstorm tools to improve staff efficiency, productivity and retention

Bay Area Safety Symposium – March 5, 2014 Building the Capacity of Your EHS Department

• What are the budgetary goals of the

enterprise?

• Variance expectations?

• Budget cycle and review schedule

• Budget reporting

• Capital budget triggers

• Sarbanes Oxley violations

• Accruals

• DOA – Delegation of authority

• Various forms of transactions - PO’s, credit

cards, purchasing cards, etc.

Understanding the fundamentals your budget

will improve your financial forecasting

• Placing spending ownership on users – PPE,

ergonomic accessories

• Fee for service – ergonomic evaluations,

chemical approvals, etc.

• Operational department cost ownership of ERT

programs, training, hazardous waste

• Executive program sponsorship

Leveraging your budget, to the max….

Bay Area Safety Symposium – March 5, 2014 Building the Capacity of Your EHS Department

• Connect the dots between your enterprise and department/

individual goals

• Use your finance department to calculate financial ratios

such as net present value, payback period, return on

investment and the internal rate of return

Calculating your Return on Investment (ROI)

will attract more “investors”

Direct Costs

Indirect Costs

INCIDENT COSTS1. Perform an initial EHS assessment to determine

risks.

2. Calculate EHS risk costs.

3. Determine program needed to reduce the EHS risk.

4. Forecast investment costs and timing associated

with the EHS program.

5. Estimate the magnitude of savings and timing

associated with the EHS program.

6. Compute financial ratios to determine the feasibility

of the program.

7. Track the progress and success of the program.

• Staff retention will save money and time

– it can cost an organization 2x an employee’s salary to

replace them

• Listen to your staff’s needs, desires and interests

• Support them with resources, coaching, and your

authority when they need backup

• Hold 1:1 meetings for program status and new

assignments but don’t micromanage

• Hold department meetings to communicate

company business, collaborate and provide

feedback on various stakeholders and programs

• Expand staff resources by outsourcing frequent or

administratively heavy tasks such as ergonomic

evaluations, training, and emergency response

Preserve your headcount by running a lean,

efficient & productive department

Bay Area Safety Symposium – March 5, 2014 Building the Capacity of Your EHS Department

• Provide leadership opportunities among staff

members

• Cross train on program areas to deepen your

bench strength

• Have staff provide program or site assessments

• Encourage staff to advance their academic skills,

credentials, and networking

• All staff members should have an annual

professional development plan

• Sharpen your staff’s public speaking skills at

conferences and toastmaster clubs

Encourage staff with professional development

opportunities

• Hold employees accountable to their

commitments

• Foster mutual respect

• Address inappropriate

performance/behavior appropriately,

remove sour apples

• Push for employee advancement, spot

bonuses or other recognition

• Make work fun, hold team building

events or department lunches

• Leverage temporary workers and

interns to augment staff

Aggressively manage your department through

the good, the bad and the ugly

Bay Area Safety Symposium – March 5, 2014 Building the Capacity of Your EHS Department

• Use RASCI charts to define ownership

and roles with each program area

• Solicit management support, provide

program feedback to each key

department

• Develop performance metric scorecard

• Audit programs for company and

regulatory compliance

• Leverage operational departments to

support ERT and inspection programs

• Demand cross functional support for

safety committees and new program

initiatives

Craft EHS programs with an integrated

management system

Environmental Metrics Safety Metrics

Water Usage - Rolling 12 Month

50000

60000

70000

80000

90000

100000

110000

120000

130000

Au

g-0

0

Oct-

00

Dec-0

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-01

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1

City Water Wastewater

Injury/Illness

- Rolling12 Month

0

1

2

3

4

5

6

7

8

Oct-

00

Nov-0

0

Dec-0

0

Jan-0

1

Feb-0

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OSHA Rec Lost/Restr

Hazardous Waste Generation

- Rolling 12 Month

0

5

10

15

20

Au

g-0

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Sep

-00

Oct-

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No

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Month

To

ns

Generation Recycle

ERT Responses - Rolling 12 Month

0

1

2

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4

5

6

7

8

Oct-

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Nov-0

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Jan-0

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ERT Responses

• Go paperless with programs and

record retention

• Ensure all staff are utilizing pdf

writers and scanners

• Utilize closed loop IT applications for

chemical approval, inspection

programs, ergonomics, IH, etc.

• Leverage mobility with your

applications (inspections,

ergonomics, tool installations)

• Host elearning courses from a

learning management system

Embrace technology to improve efficiency

Bay Area Safety Symposium – March 5, 2014 Building the Capacity of Your EHS Department

• Limit the amount of email you have

to read or send – don’t over copy

• Use instant message/chat in lieu of

email

• Use telephone or webcam video

conferencing

• Inform your staff what critical

information requirements you have

• Determine how your manager

prefers their information

• Other ideas ____?

Find ways to improve your communication

efficiency

• Obtain a business card scanner or

app

• Utilize EHS and other applications for

smart phones when appropriate

• Schedule personal work time blocks

• Collaborate on projects via Google

Drive, Chatter and other social media

applications

• Remember to run meetings efficiently

• Decentralize decision making without

loosing control

• Other ideas _____?

Improve your own efficiency with technology

Bay Area Safety Symposium – March 5, 2014 Building the Capacity of Your EHS Department

• Discuss budgetary constraints, tasks and

methodology

• Demonstrate ROI process and steps

• List and brainstorm tools to improve staff

efficiency, productivity and retention

• Questions/Discussion

• Thank you

What we covered this hour…..

Bay Area Safety Symposium – March 5, 2014 Building the Capacity of Your EHS Department