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Topic: COMPANY FINANCES

What’s the Proper Role of the Safety Professional?

September 23, 2008

Sometimes, the member responses we get to articles are just as if not more valuable than the original story. Such is the case with Mark Hansen's Sept. 10 article explaining basic accounting principles for safety professionals. A member named David Bogart responded to the story by suggesting that safety professionals stick to their own budgets and not meddle in company matters like inventory and receivables. So we put the question to you folks: Should safety professionals be involved in company finances outside their department? Here's what you had to say:

Note: Responses are printed in the order we received them. As per our usual policy, we printed names and companies only where the member provided express permission.

Questioning Finances Is Part of Company Culture

Interesting subject, I work for [a door and windows company] here in [California] and we are encouraged to challenge, ask questions, learn about other departments' methods, issues and metrics-to challenge or ask why if we see something that doesn't look right. . . . We have a system of performance commitments that tie us to areas outside of our immediate area. For example, I have a commitment to customer service measured by the amount of orders that we do not get to the customer on time. On time delivery to the customer has little to do with safety (directly); but because I'm a part of that goal and it affects my bonus at the end of the year, I'm encouraged to ask production: "Why are you doing this?"

In the same light anyone can ask me about any of my safety metrics and challenge me on the method of my madness. It's in our culture.

Name and company withheld

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Awareness of Company Finances Improves Safety

I believe that having knowledge of the financial status of the company is important. Being present in meetings that discuss finances of other departments is also something that should be done. This gives the safety professional a look at what the company is spending on and makes it easier to request financial support, when necessary. Also, being aware of the bottom line is critical to any safety professional. Our line of work requires and demands that we know this. Any incident that occurs impacts the bottom line. Any incident that didn't happen benefits the bottom line.

Thank you for the opportunity to comment.

Name and company withheld

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Stick to Safety

I agree completely with Mr. Bogart's contention. Just running my own program is challenge enough. If I were to get involved in the finances of other operations, company officials would not like it one little bit.

Name and company withheld

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Don't Let Financial Scrutiny Create Enemies

I think that an employee that knows as much as possible about all aspects of the company is a better employee. Where I might differ a little is in terms of what you do with information. Be careful how you ask questions outside your area of responsibility. The safety person needs to build relationships, not create enemies. If you ask the controller to help you understand whatever, you have a better chance of building a friendship than if you go questioning her about what you think you know.

The safety person can become an asset to almost areas of a company because we see things they will never see. Please don't use my name.

* * * * * * * * * *

Challenging the Budgets of Other Departments Is Counterproductive

I have to agree with Mr. Bogart's comments. My Safety Director is very diligent about his budget and has tried on numerous occasions to assist other department managers with controlling costs. The normal response he gets is: "Mind your own business!", or "If you want my job then take it!" The safety budget appears to be the only one that is monitored or questioned. So, as Mr. Bogart said, most people in safety are fighting to keep their job along with fighting to get the time and resources to do their job effectively.

Best regards and to all of you out there, "Fight the good fight"

Name and company withheld

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Experience Shows Why Safety Directors Must Speak Up

While I understand and have felt, Mr. Bogart's frustrations, I have also seen what happens if the company safety professional does not become involved with the profitability of the enterprise. They and safety become irrelevant.

We started transforming our manufacturing processes into Lean Manufacturing, as many companies are now doing, about 9 years ago. In an effort to see the benefits and efficiencies of Lean as soon as possible, all resources and money were put into this business critical transformation process.
The entire emphasis was on the major change in culture and moving from a Linear process to a Lean process. All attention became focused on manufacturing improvements and efficiencies. All projects were being measured on how much value they brought to the company and the customer. It was a necessary transition to save our national business.

While safety is an integral part of Lean, a number one characteristic, it was being thought of as irrelevant as we were already pretty safe. The culture was being changed and we needed to cost justify safety by bringing up the absolute importance of having a healthy work force that would be able to serve our customers and ensure our profitability. The ways this can be done are many and various such as through the psychosocial effects of Lean employee involvement, engagement, and training.
There is a whole story within this transformation and as safety professionals interested in saving employees health and lives, we need to also be able to force our way into the changing culture and processes and realize that if the enterprise does not make a profit, it ceases to exist and employee safety and health is no longer an issue.

Please do not use my company name.

* * * * * * * * * *

Getting Involved Is Integral to Safety

What part of an organization's equipment, tools, vehicles, computers, business travel requirements, etc. does not have a tie to safety? I clearly understand how busy we are with paperwork and many have to justify their reason for existence. . . . Where does a "safety professional" say I do not have time to review the processes which may save your life or prevent you from having an injury? Why?  Because of all the paperwork?  Having the time to take care of the paperwork means more to me than your safety. Go out and buy what you want and do not bother me with the details of helping assess that all safety concerns have been met, and that the employees are properly trained in the safe operation of the new equipment.

Am I being too sarcastic? Maybe. Trust me, I fully understand the paperwork, etc. which my colleague writes about.  I also have several layers of those t-shirts. However, I do not care what I have to do and our over 500 nationally dispersed employees and contractors know that I travel all over the country just to be there with them so I can learn how to do my job better in serving them.  I am not saying this to brag at all, but they know that their safety comes first. No matter what.

Yes, you can use the following.  Please leave out my personal contact information.

* * * * * * * * * *

We Must Pay Attention to Company's Bottom Line

I understand Mr. Bogart's opinion. He is absolutely correct in stating that safety professionals need to be able to control their budgets and to be able to understand that every minute of training, incident investigation, workplace inspection and emergency response drilling costs the company money. Everyone gets paid every minute they work. Every respirator, training film, pair of gloves or pair of safety glasses takes away from the bottom line. In addition to those items, the safety professionals should also be aware of the company's bottom line because the bottom line greatly affects safety and safety greatly affects the bottom line. We don't have to go into great detail in those areas that are not in our swim lane but we have to be aware of how the financial managing of those areas affect our world of safety.

I work with a "world class" Construction and Engineering company that places safety above every area of the company including the bottom line. The belief is if you don't take care of your front line (the employees) you won't have a bottom line. Safety is involved in every aspect of the company including budgeting. I do understand that most companies may find it difficult to achieve this type of culture; however, it is possible to achieve if we take one step at a time.

You are more than welcome to use my name.

Gunny Evans
Safety Assurance

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