PT UNCONVENTIONALS AMERICAS HSSE Engagement PT Unconventionals Americas

P&T UNCONVENTIONALS AMERICAS HSSE Engagement P&T Unconventionals Americas

Agenda Item Timeframe 1. Introduction 5 minutes 2. Chronic Unease 60 minutes 3. Q&As 10 minutes February 2013 2

CHRONIC UNEASE Lite 2013 P&T Unconventionals Americas HSSE Systems Improvement Team 3

Agenda Item Details Timeframe 1. Introduction § What we know about Chronic Unease 7 minutes § Understanding Chronic Unease 10 minutes 2. Animation § Video presentation 15 minutes 3. Discussion § 3 Elements of Chronic Unease & discussion points 15 minutes 4. Review § Putting knowledge into action § Objectives and commitments 13 minutes February 2013 4

1. Understanding Chronic Unease – What Do We Know n What do we know about Chronic Unease? n What words come to mind when we talk about it? n Have you seen, read or heard about any Chronic Unease information? n Where to get exposed to Chronic Unease materials? What? Where? Who? How? February 2013 5

1. Understanding Chronic Unease is about preventing complacency. It isn’t a program but it is an important step changing our mindset from: “We haven’t had an incident, we are doing so well. ” To: “We haven’t had an incident - what are we overlooking and what else do we need to do? ” February 2013 6

1. Understanding Chronic Unease – Background & Context The BP Deepwater Horizon incident in April 2010 was the largest ever deepwater blowout. The loss of life was tragic and the environmental damage was significant. This led to unprecedented loss in shareholder value, increasing regulation across the industry, and heightened public scrutiny of offshore drilling safety. February 2013 7

1. Understanding Chronic Unease – Background & Context In early 2011 we built on and supported our ongoing efforts to improve Process Safety awareness across Shell, and we embarked on the next step in our Goal Zero journey, by: n. Strengthening our culture of no complacency n Images of Deepening a sense ofglobal industrial incidents – we don’t own these “Chronic Unease” February 2013 8

1. Understanding Chronic Unease – Background & Context There are many incidents and they all share the same theme. n. There warning signs and the warning signs were not acted on sufficiently to prevent the incident. n. Chronic Unease is about understanding the types of signs and how we process them as individuals. Images of global industrial incidents – we don’t own these February 2013 9

1. Understanding Chronic Unease – Developing Reliability We learned that: ¢ ¢ ¢ As humans we tend to pay attention to loud signals. Sensitivity to weak signals is one of the building blocks of developing a chronic unease mindset That being alert to “weak signals” is a characteristic of high reliability. February 2013 10

ership 1. Characteristics of a Goal Zero or Highly Reliable Culture HSSE and SP leadership Road Safety Contractor HSSE Worksite Hazard Management 2. Chronic unease 3. Justice 4. Learning 5. Informed 6. Intervention 7. Empowerme nt 8. Wa the t Life-Saving Rules Process Safety Focus February 2013 11

2. Animation Presentation February 2013 12

3. Discussion – Weak Signals Weak signals are our CUE to take action. They are subtle signs which may indicate that some of the barriers intended to prevent an incident are failing or missing. Weak signals can be observed in equipment, plant operations, human factors … We all need to be able to identify weak signals and respond strongly. February 2013 13

3. Discussion – Weak Signals Some examples of weak signals: We see corrosion where we didn't expect it. . . We might find a pump vibrating in an unusual way. . . There's a new employee looking puzzled hunched over a vital piece of equipment. . . A meter is giving an unexpected reading. . . Discussion Points: 1. What are weak signals that may go unchecked? 2. How can we ensure we act strongly to weak signals (even if it is a false alarm)? February 2013 14

3. Discussion – Cognitive Biases Cognitive biases are a natural tendency where our thinking is influenced by existing mental models, emotion or a lack of rationality. These biases can affect our perception and interpretation of information, including our: ¢ senses ¢ judgment and ¢ decision making February 2013 15

Ambiguous Clear “D prime” – d’ (clarity of the signal) 3. Discussion – Cognitive Bias & Signals Inclined to intervene even if in doubt Not inclined to intervene assume there is no problem Very likely to intervene Not inclined to intervene assume there is another explanation Low High “Beta” - (subjective bias against assuming information is actually a signal) Increasingly uneasy February 2013 16

3. Discussion – Cognitive Biases Cognitive bias can then lead to: ¢ Poor risk assessments ¢ Poor operational decisions Discussion Points: How do we ensure we make the right challenges at the right time to ensure that: 1. Risk assessments are not degraded by cognitive biases? 2. HSE critical operational decisions are not degraded by cognitive biases? February 2013 17

3. Discussion – Thinking Fast and Slow Nobel Prize winning psychologist Daniel Kahneman 1 uses a model where human thinking is divided into fast/instinctive and slow/ rational processes. ¢ ¢ Most often we are fast thinking, and it works well most of the time. We have to recognise that when we are thinking like this we are subject to cognitive bias and jump to conclusions – then look for the facts. When making HSSE Critical decisions, perhaps we need to engage our slow thinking rational brain more. February 2013 18

3. Discussion – Thinking Fast and Slow System 1 - Fast System 2 - Slow Intuitive Deliberate Effortless Effortful Emotional Rational Irrational –subject to bias Evidence based Jumps to conclusion Controls and monitors System 1 Suppresses ambiguity and doubt Automatic – always on “What you see is all there is” See ambiguity, experiences doubt Off unless switched on February 2013 19

3. Discussion – Thinking Fast and Slow Understanding and recognizing how we think is an important step in enabling ourselves to thinking correctly at the right time. Discussion Points: 1. What are some situations where we naturally make fast thinking decisions and should slow down? 2. How can we recognize these situations and enable the slow thinking process? February 2013 20

3. Discussion – Group Exercise When we are brought face to face with a situation we immediately begin to form thoughts, opinions, and make decisions. In this exercise we will read a scenario and share what our first “FAST” thoughts are. Then we’ll work together to think slow, discover what the biases are and what some weak signals could be. February 2013 21

3. Discussion – Group Exercise A child suffered moderate burns when his pajamas caught fire as he was playing with matches. The firm that produced the pajamas had not made them adequately fire resistant. February 2013 22

4. Review - What We Now Understand Chronic Unease is about recognizing weak signals, taking action when they are observed and always watching for other signals. This session should have given you the opportunity to deepen your understanding of Chronic Unease and the key aspects: Cognitive bias Thinking fast and slow Weak signals Chronic Unease February 2013 23

4. Review – Putting Knowledge Into Action Each of us is a leader and has the ability to affect the culture of our workplace. We can have a positive effect by: ¢ ¢ Creating a culture where we are made aware of weak signals Making effective, timely challenges and interventions on risk assessments and decision making February 2013 24

4. Review – The Next Steps Embedding the mindset How we think – not a program! Leadership communications, tours, etc. Use LFI to provide learning opportunities Support for Businesses Website http: //sww. shell. com/hse/goal_zero/chronic_unease. html Share good practices and celebrate successes Ongoing discussion – at Safety Day & in the field! February 2013 25

What is ONE behaviour you will personally change as a result of this engagement session?

Questions & Answers