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Author
Judy Mellott
| Financing Safety
SELLING SAFETY Cost Control & Risk of Liability
June 18, 2008
As a CEO myself, it's my responsibility to make sure the company is getting adequate return on investment (ROI) on the money it spends. That includes safety. Although companies would have to invest some money in safety just to say they've done it, if ROI is too low they'll seek to minimize their investment.
The Impact of Cost Reduction
Controlling costs is generally thought to be the key to ROI. But saving a few thousand dollars here and there isn't enough to justify a significant investment in safety. When I don my CEO cap and review the annual safety training budget, the first thing I look for is the cost, paid wages, loss of production, etc. and that would determine what kind of safety programs I'll approve.
As an experienced CEO, I now look at these projects with a much changed interpretation. Rather that look at what it will cost the company, I want to know: "How will this program reduce all related costs?"
The Impact of Liability
I also have to consider whether the program will reduce our liability risks in the event of an accident or injury. After all, as a responsible employer, I'm under a legal obligation to take reasonable steps to ensure a safe workplace.
The best way to get management's attention is to say: "I'm relieving myself of the responsibility and now it's your liability!" This statement gets management moving faster than telling them that a tornado is coming. It's common for the operator to inform the supervisor of a problem with a piece of equipment and have the supervisor ignore or gloss over the problem. "It's all right," the supervisor will say. We teach the operator to inform the supervisor of the problem and finish up with the above statement. It really works.
Conclusion
When implementing a Quality Management System, Heath & Safety Program and Safety Training Programs ensure that all key executive management/management supervisory personnel are properly trained in all aspects of these programs.
There are no shorts cuts. Buying canned programs, hiring a company to do it or relying too heavily on video programs will usually end up resulting in failure due to the lack of involvement from management/supervisory personnel. What management is essentially saying by failing to get personally involved is: "I'm too busy and already have too much to do." |