Integration: the next frontier for EHSS and operational risk
08 March 2017
By Paul Taylor, Marcos Gallego and Matt Haddon
How big is the disconnect between the business leaders and EHSS function in your company? How many millions are left on the table for the lack of collaboration, integration and alignment between operations and EHSS?
Senior clients are working ever harder to help their organizations unlock that value by moving from managing functional ‘outputs’ (e.g. regulatory reporting) to working across the enterprise to deliver business ‘outcomes’ (such as business continuity). Increasingly they are turning to new leadership solutions to get the job done.
When one global mining service company’s environment, health, safety and sustainability (EHSS) team first came across new chemical registration regulations they thought they were facing another set of ho-hum regulatory requirements that their bosses would rather ignore. But its leader, Simon Wade, who had recently moved from a hands-on operational role, quickly realized that it was really a $100M business continuity problem in disguise.
What Wade recognized was that the company’s latest business venture was predicated on its ability to sell chemicals as an integrated part of its service, wherever and whenever its sales teams wanted. Not meeting the new registration requirements would keep a lot of chemicals stuck at customs docks around the world, and potentially leave their customers stranded (or worse, easy prey for the competition).
Wade is one of a new breed of leader that is going to the next frontier: tackling a multi-billion dollar disconnect between business leaders and EHSS functions. In ERM’s experience, a huge amount of value is being left on the table because the execs haven’t seen it - or been helped to see it.
Learn more in ERM's paper Integration: the next frontier for EHSS and operational risk
Paul Taylor and Matt Haddon are Partners at ERM in the US and Marcos Gallego is a Partner at ERM in Spain.