You Get What You Reward, Boeing’s Rewarding Safety and Quality Performance

We’ve all heard the phrase “what gets measured gets done” but I also believe “what gets rewarded gets done even quicker.”

Understanding how employee rewards and recognition impacts productivity, performance, and employee engagement has been the subject of many studies and experiments, ergo, the salient connection between human behavior and appreciation needs no introduction. We are wired to crave connection, support, and acceptance from those around us, due to which the need for effective employee recognition has been diligently emphasized by thought leadership.

Behavior reinforced is behavior repeated. Behavior reward is repeated. This simple yet profound concept is at the root of more poor productivity, broken relationships, negative personnel issues and high costs of doing business than any other management principle.

Boeing has been in the news recently for a number of troubling safety and quality issues. Among the safety and quality issues of recent years have been two fatal crashes of the 737 Max jet due to a design flaw in the plane, numerous halts in deliveries due to quality control issues and, most recently, a door plug that blew off of a new 737 Max operated by Alaska Airlines in January of this year, leaving a gaping hole in the side of the plane.

The National Transportation Safety Board has determined that aircraft left a Boeing factory without the four bolts need to keep the door plug in place. It has yet to assess blame for the accident, but CEO Dave Calhoun has accepted responsibility for the incident.

The theme is a corporate culture that was once reflective of an engineering and product quality driven leadership to that of a financial and investment community culture of driving up share price and investor returns regardless of process control, pandemic or building supply network challenges.

In a Bloomberg, The Big Take in Business column titled: Boeing’s Legacy Vanished Into Thin Air. Saving It Will Take Years. (Paid subscription), the following was noted:

“Together, these point to a common problem: the company’s once-vaunted system for building its prized 737s has been badly damaged by worker turnover, supplier distress and the shortcomings lingering from the breakneck production last decade before the Max tragedies and the Covid freeze.”

This Bloomberg editorial further observes:

“At the same time that Boeing was reworking its supplier network, executives put greater focus on propping up the share price with the help of dividends and buybacks. Since 2011, the year the 737 Max was officially announced, Boeing has handed some $68 billion to shareholders in the form of dividends and stock buybacks, according to data compiled by Bloomberg, though it suspended the measures as its financial crisis deepened. Airbus, by comparison, has been much more conservative with its balance sheet, giving it greater resources to respond to the pandemic.”

After being rocked by years of quality and safety issues, Boeing is changing the bonus formula it uses to pay more than 100,000 nonunion employees. Instead of basing most of white-collar employees’ bonuses on financial results, bonuses will now be based mostly on safety and quality metrics.

The company has faced harsh criticism for a series of quality and safety issues in recent years, with many of those critics saying the company has shifted its focus in the last few decades to financial results at the cost of safety and quality in its aircraft. But those safety and quality problems have resulted in five years of operating losses topping $31.5 billion.

“It’s very, very important to drive the outcomes that we’re all committed to, and that’s to deliver a safe and quality product to our customer,” said Chief Operating Officer Stephanie Pope on Thursday in comments to employees announcing the new bonus formulas.

The troubled aircraft maker said 60% of the annual incentive score used to determine bonuses for employees of its commercial airplane unit will now be based on safety and quality metrics. It previously had 75% of that score based on financial results, with the other 25% based on operational metrics that included data beyond safety and quality readings.

Boeing said all employees will be required to complete training courses on product safety and quality management as a pre-condition to receiving any annual incentives.

A core principle of TPS is a system and process that depicts audio and visual systems that indicate a production process has been stopped because of a worker observing and flagging a quality control issue whenever they occur. To quote a Toyota descriptor: “Operators are equipped with the means of stopping production flow whenever they note anything suspicious. Jidoka prevents waste that would result from producing a series of defective items.”

The notion of Genchi Genbutsu (Go and see for yourself) compels production managers to dispatch themselves to where the problem was flagged and to produce timely resolution. It implies not penalizing the worker for calling attention to the problem, or risking a production shortfall, but rather triggering a collective effort toward resolving the problem as quickly as possible. That includes whatever engineering and technical resources that may be required.

The ongoing crisis has Boeing’s most senior management now compelling production workers to flag known production and quality problems. With the systemic changes to reward safety and quality it’s corporate culture can focus on producing each aircraft with the utmost quality and efficiency, and reward production and supply chain workers for their ingenuity and follow through. Such a culture rewards operational workers for significant quality and operational milestone achievements.

From my experience, this will take time and extraordinary efforts. The question remains, what is the willingness of Boeing’s senior leadership? It would be tragic if the commercial aircraft industry faces a singular dominant global provider. Industries require vibrant competitors, especially those with upwards of ten years in order backlogs for new aircraft.

The Dos and Don'ts of Maintaining a Safe Workplace

Workplace safety is vital. From medical workers to construction sites, manufacturing jobs to retail, anywhere workers are moving, lifting, walking, or even sitting requires certain safety measures. While organizations like OSHA have specific recommendations for health and safety practices you should be aware of, here are additional ways to help increase workplace safety.

 Dos

 Do Have Extensive Training

To increase workplace safety, don’t just hand your employees a manual or require they take a one-hour class at the start of their employment. Create a training program with real-world, hands-on examples of the types of situations they’re likely to encounter.

Some general topics to include are eye, respiratory, and face protection, as well as the required personal protective equipment (PPE); safe waste disposal; the proper operation of machinery and equipment; and identifying potential safety risks. Make your training specific to your industry, and make it thorough.

In addition to preventive training, include emergency training. Your employees need to know how to effectively handle crises when they arise. Drill these emergency situations frequently so, when something happens, employees immediately know what to do and are less likely to panic.

Do Make Documentation Available

A handbook is a good start. Collect all safety protocols and requirements in a handbook and ensure your employees know exactly where it is. Also make sure it’s easy to read and organized.

If you’re able, it’s even more convenient to have this information in an online portal or database. That way, employees can access it wherever they are and search for the pertinent information with specific keywords. Having the documentation easily accessible demonstrates to your employees that you value a culture of safety.

Do Reward Safe Behavior

Provide your employees with small incentives when they follow safety procedures. Regularly change the rewards so employees don’t get bored, and make sure the reward process is fair. When employees see their coworkers getting special attention for following the rules, or even going above and beyond them, they’re motivated to join in the practice.

Do Lead by Example

Part of increasing workplace safety is cultivating a culture that values it. It’s not enough to train and reward; you have to lead by example.

As a leader, be confident in your abilities and consistent in following safety procedures. Your employees will see your efforts and mirror you. Regularly challenge the status quo and innovate new ideas to increase safety and to ensure procedures are followed.

Don’ts

Don’t Wait for an Inspection

Don’t wait for an inspection from OSHA to implement required safety protocols. Not only will you be putting your workers in unnecessary danger, but your business may even receive citations or penalties that probably come with fines or other punishments.

Instead, conduct mock inspections throughout the year to ensure your safety practices don’t get flagged. This will help catch small potential problems or habits before they become big ones, saving you time, money, and hassle.

Don’t Punish Feedback

Workers on your front lines are often the first to spot safety issues. However, if they fear retaliation from their coworkers or managers, they may not speak up. Foster an environment where feedback is appreciated and, if necessary, implemented.

Take this a step further by asking employees for their opinions on possible solutions. They feel their feedback is heard and appreciated, and they’ll feel like their input is valued. This increases employee engagement and the likelihood that the behavior will continue.

Don’t Let Mess Accumulate

A messy work environment is a dangerous one. Make sure aisles, especially emergency exits, are clear from all storage and debris. Clean spills immediately, and if chemicals are involved, use the proper waste disposal process. Watch out for tangled cords or other electrical hazards.

Additionally, don’t let clutter cover required safety signage. Whether that’s the OSHA posters, emergency lighting, hazard signs, or exit signs, don’t allow boxes or shelves to block these essential notifications and reminders.

Don’t Ignore Equipment

If your business requires your employees to wear PPE, don’t let glasses, hard hats, gloves, masks, or clothing get worn out or broken. Regularly inspect equipment and replace it at the required intervals, or if it stops functioning correctly.

Also ensure you have enough gear in the correct sizes for your employees. What will fit a five-foot-four-inch tall person isn’t going to work for someone over six feet. Don’t forget to take body sizes and shapes into account as well.

Keep a plentiful supply of your necessary equipment. If your employees work without their PPE, they risk injury, which also puts the business at risk for lost profits or a complaint or lawsuit.

The Cliché is True

Safety first—it’s a cliché but it’s true. When you make safety a priority in your workplace, your employees are happier, more productive, and, of course, safer. You, in turn, have less stress and a better business. 

 

Author Bio: Jordan McDowell is a writer and content strategist with a passion for business and leadership. He specializes in technically-oriented content for a number of industrial manufacturing companies. 

Guest Post: 3 Common Safety Mistakes in the Workplace

Safety is not as complicated as it truly seems. Many mistakes in the workplace are easily avoidable. Do you manage or run a business that finds itself overwhelmed by accidents and incidents and do not know where to begin? There is good news. Three common mistakes in the workplace that jeopardize safety are often very avoidable and easy to contain. Ignoring minor injuries, not employing a safety-first mindset and fatigued/dehydrated personnel are three common influences that can be easily remedied. Here is how:

1.       Ignoring Minor Injuries – No injury is minor. Whether it is a sprain, strain or simple cut, all injuries must be evaluated and assessed appropriately. It begins with proper antiseptic and antibiotic treatments of cuts to avoid infection as these can result in catastrophic consequences if unabated. Furthermore, working with a sprain or strain can only intensify the injury if it is not given the appropriate rest, isolation, compression and attention. It is imperative to utilize the appropriate first aid practices if you find any employee hurt or injured no matter how small.

2.       Not Employing A Safety-First Mentality – This may seem like a repetitive principle but nonetheless it holds truth. Safety-first is more than a mentality, it is a way of life. It is an attitude that implores personnel to think of safety before anything else in the workplace. This often transforms and transcends leading to best practices that result in a transformative culture. A safety-first mentality means assuring protocols are observed, standards are met and behaviors are fostered. Failing to do so often leads to complacency which leads ultimately to an increase in avoidable accidents, incidents and injuries as a result of a lax attitude towards overall safety. Don’t slip up and don’t let up on being safety champions.

3.       Fatigued and Dehydrated Employees – This is a matter that is often overlooked and in many cases understated so we will once again reiterate the fact that it is a serious issue that can yield potentially deadly outcomes. The greatest obstacle most workers face is fatigue and dehydration. The sad truth is this can be easily avoided. A tired or dehydrated forklift operator or general laborer is far more likely to get injured, endure heat stroke or even improperly handle any material hazardous or otherwise. This can ultimately place all other workers at risk.  It is essential that management and leadership implore and champion the appropriate frequency of breaks to ensure all workers are hydrated and ready to perform. This is especially true on hot summer days where it is imperative to take frequent breaks and drink enough water over the course of the day. In addition, it is also prudent for all employees to attempt to sleep eight hours per night to assure adequate energy for the next work day. While this cannot be enforced it should be promoted. Assuring workers also get adequate time to recover and replenish through food is also another safeguard that should be taken seriously.

About the Author: Tom Reddon is a forklift specialist and blog manager for the National Forklift Exchange. He also sits on the Material Handling Equipment Distributors Association (MHEDA) Executive Dialogue team. Follow him on Twitter at @TomReddon.

Guest Post: 5 Safety Construction Measures Every True Leader Must Take

Introduction:

Vince West, a recent graduate at Mass Bay Engineering that I've gotten to know in my area, and I have been discussing worker safety. He's authored this article based on his experience in the construction industry. I think these safety measures are applicable in all industries.

Workers’ safety is a key priority for any team leader in the construction industry, mainly because accidents in a construction site can be severe and life-threatening.

The global population is on the rise, making the demand for new and modern buildings also go up. To optimally benefit from this market growth, a construction leader must make sure that his or her employees are safe from any safety hazard and that they have all their concentration on the job. Here are five ways construction company leaders can safeguard their staff members: 

1. Be Proactive and Where Called Upon to Act, Do It Swiftly

A good leader does not wait until a safety hazard occurs in order to act. Instead, she or he proactively anticipates future hazards and solves them beforehand. If you visit the construction site regularly, you will be able to tell which working areas need to be improved upon as a precautionary measure. Better still, workers will share with you on their safety concerns, and yours will just be to make the necessary amends.

In some rare cases, however, neither you, nor your workers will be able to get their assessments right and end up ignoring a potentially high-risk area. The danger of that is that an accident may just occur out of the blue and injure some of the employees.

When such a disastrous thing happens, it is your duty as a leader to move swiftly and take the necessary steps. Having a rescue vehicle and a first aid kit at the ready will help you respond promptly to emergency safety concerns.

2. Have Proper Machinery and Equipment in Place

Some security concerns can be addressed by having the right equipment for the right job at the construction site. Well-maintained machinery reduces the probability of workers injuring themselves on duty to almost zero and improves efficiency in a big way.

As a true leader, making sure you provide non-construction resources such as water is a sure way of showing how much you care about your workers’ safety and comfort. In this particular case, water reduces dehydration amongst the workers thus improving their efficacy. 

3. Prioritize Employees’ Concerns about Their Safety

Incidents in a construction site cause injuries that can at times cost a fortune to treat. Now forget about that and think about what you stand to gain by maintaining high levels of safety standards for your workers. Consider these three benefits:

• Having basic safety regulations in place gives employees peace of mind and minimizes their turnover rate.

• Whenever employees complain about their safety, they are passing a message to you as their leader that you do not appreciate them enough. Granting their wish improves their perceptions towards the job.

• Employees become more engaged when they have no safety concerns to worry about. Statistics show that engaged employees are more innovative and productive.

4. Regular Inspections and Safety Training

Even when it’s a sure thing that a building has a strong foundation, a good leader will have experts inspect it on a regular basis and get a report on the same. While sharing the contents of the report with your staff members, have a trainer with you to shed light on the various safety concerns the report could have and most importantly, give solutions to some of them. Retraining is also necessary just to be sure that everybody is conversant with the safety situation at the site.

5. Get the Right Equipment For Your Employees

While working on the site, always ensure that your employees wear the right personal protective equipment (PPE) from top to bottom. You must ensure that whenever the workers do some grinding, cutting, or welding works, they all have face shields and safety glasses.

For foot protection, ensure that the workers wear slip-resistant, puncture-resistant, and safety-toed boots. When working with concrete or electricity, ensure that all workers put on protective gloves. Most importantly, ensure that all workers including yourself have hard hats at all times for head protection.

Conclusion

Many people consider construction sites as the riskiest place to work in. Potential workers are most often than not taken aback by cases of environmental and human-made disasters that claim lives and cause permanent injuries. Construction company leaders have the responsibility of looking into the matter and changing this general public perception.

Author Bio: Vincent West, a fresh Engineering Design graduate with a keen interest in all things practical, ergonomic and balanced, Vince is the brains behind WorkBootCritic.com. He has been researching construction safety gear on his own for a while now.

He's eager to spread the word on what he has learned and continues to learn through practice and thorough research.

Guest Post: Simplify Safety by Thinking Lean

Unfortunately, safety measures and procedures can often turn into more of a burden rather than an efficient system for safety for many different organizations. Often the cost of the safety precautions and measures taken is much higher than expected and can hinder the business as well as the safety at the workplace.

The good news is - it is possible to reduce the cost for safety measure without decreasing the quality and safety level. In fact, it can make safety even more efficient.

The first thing you should do is measure the time which your personnel - from workers to supervisors and safety professionals spend for safety related activities per day. If it turns out that they are spending more than half of the work day or shift on safety specific activities, you can do the math and see how much time is actually left for work itself. If you are a production company and your employees all spend more than 50% of their time doing something other than actually producing things, neither the owners, nor the management or your customers will be happy with the results.

The fact is, that most of the safety related activities and procedures which you have implemented in your organization could be too time consuming. For example, do you have complicated safety forms which need to be completed? Or do your supervisors spend too much time investigating incidents and monitoring the safety conditions? Do you have everyday safety training which takes a lot of time?

These are some of the questions you need to ask yourself before considering making improvements and simplifying your safety system, without affecting its efficiency.

Here are some ideas how thinking lean can help you improve the efficiency and effectivity of your safety system and procedures:

1.    Integrate the safety actions and procedures in your work and support procedures. In other words, add a safety process into the operational procedure itself. This way, the person responsible for the job will be responsible for the specific safety procedure for it. For example, add the lockout process for energy control in the work procedure. This will make the entire workflow more efficient and actually safer.

2.    Integrate the procedures for safety analysis and job hazard risk analysis into your work procedures as well.

3.    Integrate as much of the safety training into the work training as possible, and also do specific safety training for the people who are actually in risk of the specific hazards, rather than wasting the time of all employees for all the various risks. This will save time, and is actually a more efficient training method.

4.    Visualize the safe conditions.  This means making unsafe or hazardous things and processes more apparent for safety professionals or supervisors. Examples include: defining the correct and safe body position, or position/condition of potentially hazardous equipment, tools, and others. Use simple diagrams including “right” and “wrong” conditions, allowing anybody passing by to see that something is wrong.

5.    Watch out for employees who are taking shortcuts and are skipping important safety procedures or using the wrong instruments in order to make their work easier or faster. Try to improve employee engagement, because such shortcuts can be dangerous and can lead to serious injuries, damage and other problems. It is important that you inspect the work process procedures, as well as any indications that shortcuts are being taken, carefully conduct research and analysis for the reasons for this nonconformity and take corrective actions. This can mean redesigning your work procedure, so that the process becomes the shortcut. It is recommended that you include the employees who used the shortcut to take part in the re-designing of the work procedure. In many cases, this will lead to a more efficient and yet safe operational procedure, and thus better productivity and improved safety in your organization.

About the Author: Mike Pierce is an outdoorsman, lean thinker, and footwear fanatic who manages the team at Mybootprint.com. He also works on another site ShoeMatters.com that helps people find high quality footwear for their needs.

Guest Post: Lean, Mean Safety Machine

Company safety policies generally have two important objectives. First, safety policies aim to ensure a company's compliance with federal, state, and local laws and, therefore, to avoid fines and other forms of punishment for violations. Second, and more importantly, these policies strive to prevent accidents and injuries in the workplace so that employees remain healthy.

Since lean business philosophy gained traction, some critics have charged that a strict focus on lean initiatives compromises a company's ability to deliver on these goals of complying with the law and keeping workers safe. Lean detractors reason that a focus on efficiency, productivity, and avoiding waste could diminish concern for employee safety, thus putting workers at risk.

Extensive research and the experience of many lean proponents around the globe have cast serious doubt on those unfounded theories. In fact, companies that adopt lean strategies generally report enhanced workplace safety and reduced on-the-job accidents and injuries. The information below reinforces the idea that a keen emphasis on preventive safety measures is, in fact, compatible with lean business philosophy.

The Bottom Line: Workplace Injuries are the Epitome of Waste
One of the lean movement's primary goals is to eliminate waste (whether it be wasted time, wasted resources, or wasted money). An unsafe workplace is a breeding ground for waste. Indeed, an employee injury leads into a waste explosion!

First, production must stop so management can survey the scene and take action to care for the worker's injuries. A halt in production is wasted time. Let's assume the employee has a great deal of experience, and his absence from work means a less skilled replacement must take over. That worker's diminished skill level will likely lead to less productivity. Then, if OSHA investigates, the facility inspection will likely create a further disruption to the normal orderly operation of the company's business.

If this cycle continues, where employees suffer injuries routinely, insurance rates will rise. In addition, chances are that employees who observe the accidents and their supervisors will become witnesses in workers' compensation litigation, creating a further drain on progress. In short, lean leaders have a vested interest in promoting safety in the workplace.

Preventive Safety Measures are Compatible with Lean Philosophy
In many ways, the interests of safety gurus and champions of all things lean are consistent. Take ergonomics, for example. Studies show movements that incorporate poor ergonomics typically take longer than motions with good ergonomics. And, as we all know, poor ergonomics can lead to a wide range of physical ailments. Therefore, managers should instruct workers on the safest (and, in many cases, the fastest) movements to employ when carrying out their duties. These movements and methods will then become standard practice, thus reducing unnecessary repetitive motion injuries and increasing productivity.

Pay Attention to Details
Lean principles can provide innovative solutions to what might appear to be insignificant, though wasteful and harmful, business practices. Consider an employee whose daily routine involves lugging heavy boxes from one place to another. Even if supervisors have instructed him on the safest way to lift heavy items, the constant strain could eventually lead to injury. The brilliant solution? A hand truck or dolly. No, it's not rocket science, but minor adjustments like that can make the difference between a healthy worker and a former employee on disability. In addition, now the worker can push several boxes at one time and complete his tasks much more efficiently.

Apply Safety Principles to Get Lean Results
The preferred order of dealing with recognized hazards is:

1. Use engineering controls to eliminate the hazard.
2. Institute administrative controls to deal with the hazard.
3. Use protective equipment.

Look at the previous example of carrying heavy boxes as a recognized hazard of repeated back strain. The least effective control is to provide a back brace, because that requires the worker to wear it every time. An administrative control would be to teach proper lifting technique. Eliminating the hazard by providing a hand truck is safer and more efficient. But what would happen to efficiency if you took the engineering control one step further and designed the process so the boxes were stored right where they are most needed?

Don't Underestimate the Importance of Staff Morale
If employees suspect that management is not concerned with their safety, animus will ensue. Dissatisfied workers become uncooperative workers. Uncooperative workers are often vocal, and their attitudes can impact the environment of the entire facility. Productivity will undoubtedly suffer. In contrast, employees who have a sense that their supervisors respect them and have a vested interest in their wellbeing will often return the favor. Satisfied workers become cooperative workers. Cooperative workers are typically efficient, productive, and don't cause problems.

Although lean proponents and safety experts may initially come to the table with different goals in mind, their objectives are not inconsistent. By implementing preventive safety measures in the workplace, companies often recognize unintended results that reflect the values of the lean movement. While going too lean could conceivably compromise workplace safety, smart decisions and careful planning can easily ensure a healthy balance.

About the Author:
Jay Acker is the leader of a Safety Services production team. Jay leads a team who supply businesses with regularly updated OSHA compliance related materials and a range of services for workplace safety. At www.safetyservicescompany.com, Jay Acker's editorial group makes materials for conducting weekly safety meetings, safety training programs, posters and other items.