By Mark D. Hansen, CPE, CSP, PE, CPEA

Does your CEO have a realistic view of safety? Or does the CEO expect safety to solve all of the company's problems? This advice can help you align your CEO's expectations with reality.

Safety & Business

We sometimes forget that until fairly recently, many considered safety to be an arcane subject, outside the mainstream business mission, and of interest only to the lowest levels of an organization.

Much has changed in a short time. Safety has gained a greater degree of acceptance in the business world. Today, very few people still have to be convinced of the power and importance of safety. Images and issues from the world of safety have become part of mainstream corporate American business culture. New processes and programs are now touted as "revolutionizing" everything with which they come into contact.

High Hopes. . .

But the pendulum might have swung too far. Where once safety was ignored, now it has bred unrealistic perceptions and inflated expectations--at least within some organizations. If you're a safety director or other senior executive at such an organization, this poses some real challenges.

The problem of managing expectations is most acute when dealing with the CEO. After all, not only is the chief executive bombarded with messages about the wonders of technology, but so are the shareholders, analysts, board directors and others to whom the CEO must answer.

This is a recipe for out-of-control expectations, and it forces safety directors and other executives to walk a fine line. As technology advocates, they must persuade the CEO that safety is worth a hefty investment. At the same time, they must guard against promising miracles that they can't deliver.

. . . And 4 Ways to Manage Them

Having worked with CEOs, I have observed how expectations between CEOs and other executives ebb and flow. Here are four techniques that I have found to be effective in managing CEO expectations and keeping them in line with reality:

1. Keep Your CEO Informed

Schedule regular briefings to keep your CEO up-to-date with developments, both within your company and in the larger world. Categorize developments according to their business impact--such as regulatory requirements that your company must meet now, or investments that may provide a competitive advantage.

If you propose a change, give a realistic forecast of the costs, training time and work disruptions involved. If you unduly overestimate costs expecting a cut, you may lose your credibility. If they cut the costs you have provided them real costs, not inflated ones. It is best to forecast costs as closely as possible to real costs. Your CEO will begin to understand that you have a knack for providing true costs and have respect for you.

2. Speak in Business, Not Technical Safety Language

Whenever possible, translate technical details into business benefits. Similarly, the best way to justify a large expense is to delineate its contribution to future revenue. Try to quantify benefits with hard numbers. Example: "A 20 percent decrease in incident rates means a corresponding increase in the productivity and profit and minimizes operating costs."

Keep the technical jargon to a minimum. For example, don't give the OSHA definition of a LTA, or EPA's definition of a spill, but rather phrase it in terms the CEO can understand. Your CEO is probably more interested in profits and losses than LTAs.

3. Remember the Human Impact of Change

Change may be good, but it's not always easy. The biggest challenge of implementing a safety management system, for instance, is not the implementation per se, but changing the way people do their job. Make sure your CEO understands and prepares for possible employee resistance to any new system. Be sure the benefits of the change outweigh the costs, and explain those benefits to all employees early on to get them on board.

4. Don't Make Promises that You Can't Keep

Over-promising is probably the leading cause of unreasonable expectations. It's also something you can prevent. For example, a massive new behavior-based safety program may very well reduce incident rates. But it won't necessarily bolster profits. So don't tell your CEO that it will.

Conclusion

There's a lesson to be learned from media-savvy sports coaches who publicly praise their upcoming opponents, even if the team is terrible. The idea is to show some respect, to not anger the opponents and to manage the expectations of fans so they don't take victory for granted.

These same tactics can pay off for safety executives like you. If you oversell benefits and undersell challenges, you're feeding unrealistic expectations and setting yourself up for a fall. On the other hand, if you make conservative predictions (under-promise) and deliver business solutions that exceed expectations (over-deliver), your CEO will see you consistently as a winner--and rightly so.

DEADLY HURRICANES

Galveston, 1900: Aftermath of the deadliest hurricane in American history.

Right now, the death toll from Katrina stands at 68. That number is sure to rise in the coming days. If you're looking for a sliver of consolation in this tragedy, consider this: Hundreds if not thousands of lives were saved because people knew the hurricane was coming and had time to get out--or at least prepare.

This wasn't the case a few decades ago. Before the advent of radio, TV and weather satellites, hurricanes struck without warning. Consequently, the deadliest hurricanes in American history (on record, at least) took place in the early part of the 20 th century. Here's the grim Top 10 list:

1. GALVESTON, TEXAS
Date: Sept. 8, 1900
Death Toll: 8,000 to 12,000
The great Galveston hurricane of 1900 remains the deadliest natural disaster in American history.

2. LAKE OKEECHOBEE, FLORIDA
Date: Sept. 1928
Death Toll: 1,836
Most of the victims drowned when the levee around the Lake broke.

3. FLORIDA KEYS & CORPUS CHRISTI, TEXAS
Date: Sept. 1919
Death Toll: 600 to 900
Many of the victims perished aboard ships at sea.

4. NEW ENGLAND
Date: Sept. 1938
Death Toll: At least 600
Hurricanes can also strike north of the Mason-Dixon Line. In this one, a storm surge of 16 feet at high tide resulted in flooding across New York, Massachusetts and Connecticut, destroying more than 8,000 homes.

5. FLORIDA KEYS
Date: Sept. 1935
Death Toll: 423
The "Great Labor Day" storm, the most intense Category 5 hurricane ever to make landfall in the U.S., packed winds strong enough to derail a freight train packed with people.

6. HURRICANE AUDREY--SW LOUISIANA, NE TEXAS
Date: June 1957
Death Toll: 390
In 1957, people had radios and TVs and they knew Audrey was coming. But they were told they had a day to prepare. Unfortunately, the storm picked up speed and caught the folks of Louisiana and Texas off guard.

7. GREAT ATLANTIC HURRICANE--VIRGINIA, NORTH CAROLINA
Date: Sept. 1944
Death Toll: 394
Most of the deaths were people lost at sea.

8. THE GRAND ISLE HURRICANE--LOUISIANA
Date: Sept. 20, 1909
Death Toll: At least 350
The hurricane's 15-foot storm surge flooded much of southern Louisiana.

9. NEW ORLEANS
Date: Sept. 1915
Death Toll: 275
Like Katrina, this storm caused Lake Pontchartrain to overflow its banks.

10. GALVESTON, TEXAS
Date: 1915
Death Toll: 275
After the 1900 hurricane, the people of Galveston had built a seawall to prevent future disasters. Otherwise, the 1915 disaster would have been much worse.

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