For business mergers to succeed, handling culture differences has become an important factor. Merger of the American oil majors Chevron and Phillips’ chemical operations into the CPChem Company (Chevron Phillips Chemical Company) had to take these concerns into consideration when implementing a new Environment, Health and Safety (EHS) management system.
Harmonised practices
We have established a Best Practice Network for all facilities. We share best practices from both cultures, try new approaches and, where it makes sense, harmonise procedures. In this way we are establishing a management system that is creative in that it keeps our minds continuously open. It is flexible as it is not a frozen system, but opens up new approaches to our ways of thinking. By building a structure like this we will achieve consistency, as changes will be continuously implemented in the organisation as best practice. We believe this approach will contribute to improve the efficiency of the whole organisation.
During the revision of the new management system, CPChem found that even though practices from both companies had been thoroughly examined and harmonised, small culture differences could lead to misunderstandings. In one of the facilities local staff investigated incidents, while in another the tradition was to use someone outside the organisation to investigate. The difference was not appreciated as all involved assumed the others knew what they were doing.
This is why it is so important to always keep an open mind on what we are doing, says Hunt. It does not necessarily have to be wrong the way we do things, but it is important to find out why practices differ and what we can do about it.
To make sure our staff feels an ownership of the new system, we have established focus groups of field users that are involved in deciding, implementing and revising the system. In this way we give our people in the field a voice, empower them to modify and change practices in their daily work. Involvement by those affected is a good way of providing ownership of new management systems when two cultures are merged.
Integrated system
When CPChem decided to design a new EHS management system for the whole organisation, DNV was asked to create a corporate compliance auditing programme. The purpose is to provide assurance to company management that strategic business units and their operating sites are effectively implementing and supporting the elements of CPChems EHS management system. Best practices from both companies have been combined during the design, reflecting commitment to regulatory compliance and the American standard for the chemical industry Responsible Care. A training system has been established and a client needs analysis performed.
DNV has finalised pilot audits at one former Chevron and one Phillips facility. The results are being evaluated and will be included in the new management system. Corporate staff from the CPChem organisation will start implementing the new system worldwide from January 2002.
Within the overall design of the auditing programme, the CPChem corporate staff will be utilising DNV Summit Software to maintain its protocols, question sets, and historical data. Summit allows CPChem to design and query every individual review, based on decisions made during the pre-assessment scoping activity.
Hunt believes that as implementation takes place worldwide there will be a need for continuous adjustments. CPChem has not created a set of laws and rules, but a way of thinking that should enable the company to protect people and the environment. The review processes included in the programme will give each unit a check on the pulse of their own organisation. It is a good starting point to demonstrate the essence of the standard Responsible Care to be good neighbours: a major criterion for the chemical industries of the future.