Academic literature on the topic 'Customer relations – Management – Ethiopia'

This article deals with marketing trends in the 21st century is shifting from a transactional approach to the relational approach with focus on the fulfillment of needs, satisfaction, and pleasure affect business banking customers are very dependent on the customer. Map business services banking services fickle demands creativity public relations in providing the best service to its customers get a good image. Service concept using the service paradigm leading to cultivate the power of the customer based on the customer satisfaction-oriented, widely used by business banking services at this time. Paradigms that focus on how to provide services to the customer so that the customer was satisfied, beyond what can be given to something that is important and not to be underestimated. Skills to understand and fulfill customer expectations should be every company’s business philosophy of banking services and customer relationship management is a strategy

Purpose – The purpose of this paper is to provide insights into commonalities and differences of service innovation across industries. The compared sectors are logistics service providers and IT service providers (SPs). Design/methodology/approach – Data were collected from 778 SPs via an online survey. Structural equation modelling was used to analyse the empirical data. Findings – Both types of SPs benefit from close customer relations in terms of innovativeness and customer satisfaction. However, ITSPs rely more on a large number of customers to be innovative than logistics service providers (LSPs), further, LSPs can evoke a higher level of customer satisfaction when being innovative. Research limitations/implications – Empirical data were collected in a single country (Germany) and at one point in time. A confirmation of the results in different service settings is therefore encouraged. Practical implications – The results help managers with regard to their strategic decisions. The differentiating effects influencing innovativeness and customer satisfaction have been revealed. Originality/value – The research is extended by developing a model based on the knowledge of service innovation, social exchange theory and industry characteristics and by empirically testing this model.

The main objective of the study is to find out how queue management affects the level of customer satisfaction in the case of Commercial Bank of Ethiopia. The study tried to discover the impact of queue management in the Bank on the behavior of consumers the article is carried out in the following logical sequence: the nature and impact of queue management on customer satisfaction, evaluation of queue management mechanisms used, the key problems that face commercial Bank of Ethiopia in the implementation and administering of queue management. The methodological tools of the work include: the method of questioning (to collect primary information from both the client base and operational managers), descriptive statistics and STATA (for data analysis based on analytical statistical tools – frequency distribution tables, cross-tabulation), regression model (to determine the influence of independent variables on the dependent value). Independent factors are presented by the author in the form of waiting environment, perception of waiting time, the information provided to the client from the commercial Bank and queue discipline, dependent indicator – the level of customer satisfaction. As a result of the study, the author concludes that the majority of clients of the commercial Bank of Ethiopia are not satisfied with the current mechanisms of the queue management. The paper states that the key factor influencing customer satisfaction is the waiting time. The study empirically confirms that the Bank’s customers are not satisfied with the information that comes into the waiting room, and the conditions of waiting in banks. The author states the following reasons for dissatisfaction with the mechanisms of queue management on the part of customers: the use of a physical bank, manual queue measurement systems, poor-quality Internet banking, and mobile banking. The paper substantiates recommendations for Ethiopian commercial banks to increase their additional investment in queue management mechanisms, which will contribute to increasing customer satisfaction through the introduction of warning and alarm systems, the use of interactive communication, and advertising on television screens. Keywords: Commercial Bank, Customer satisfaction, Queue management mechanisms.

Ethiopia, India and Bangladesh are raising economic power, but have not yet integrated very much with the global economy and still have not achieved their potential in context of technology, globalization, and international competitiveness like developed countries. These countries have much strength, but at the same time , are facing many challenges in the increasingly competitive and fast changing global economy. The main key strengths of these courtiers are their large domestic market, young and growing population, a strong private sector with experience in market institutions, and a well developed legal and financial system. In today’s environment of global competition, technological development and innovation; companies, especially manufacturing, are forced to reconfigure their manufacturing and management processes. Industry 4.0 and intelligent manufacturing are part of a transformation, in which manufacturing and information technologies have been integrated to create innovative systems of manufacturing, management and ways of doing business. This system allows optimizing manufacturing, to achieve greater flexibility, efficient production processes and generate a value added proposal for their customers, as well as to provide a timely response to their market needs. The objective of this work is to explore the Industry 4.0, smart manufacturing, environment requirement and relation of innovation in perspective of developing countries.

The Best PhD Thesis in the Faculties of Architexture, Arts, Business & Economics, Education, Law and Social Sciences (University of Hong Kong), Li Ka Shing Prize, 2007-2008.
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Business
Doctoral
Doctor of Philosophy

The research study was conducted to cover the Buffalo City Municipality (BCM) retail industry with direct emphasis on the supermarket industry. The research problem is as a result of the retail businesses in the BCM that continue to consider that if they have large data warehouses with masses of customer information, they have all what it takes to run a profitable business. Their failure to understand the organizational implications of moving towards a customer-centric approach often results in high costs from bad customer service and handling of customer complaints. The main problem was stated and sub-problems introduced from the main problem to address them by way of qualitative and quantitative research. Related literature was reviewed on Redefining the Customer, Customer Satisfaction and Customer Relationship Management and a Customer Management Model was proposed. During empirical survey, a questionnaire based on literature reviewed was designed for the survey. A pilot study was conducted to identify and rectify problems and shortcomings relating to the questionnaire. The pilot study indicated that the data likely to be collected will address the main and sub-problems of the research. A total of thirty five questionnaires which contained closed-ended and open-ended questions were distributed to the population sample as selected. Results of the study were critically analysed and interpreted quantitatively and qualitatively by means of tables and discussion for the development of an Integrated Model for managing customers. The analysis of the study which was based on the literature reviewed and the findings from the empirical survey were concluded to present a solution to the problem. In view of the shortcomings identified by the literature review and integration thereof with the results of the empirical study, an Integrated Customer Management Model was developed.

Customer relationship management (CRM) presents a new paradigm shift to the old traditional marketing strategies that are known and practiced by many organisations in South Africa and across the globe. Competition is not an excuse for failure anymore. Organisations that do not have any concrete strategies in dealing with the customer will not survive in the market. The ultimate goal of CRM is to enable organisations to forge closer ties with the customer so that a solid bond can be created to enhance loyalty and satisfaction. The goal for this research was to identify the CRM strategies used by a single organisation and thereafter suggest improvements to enhance customer loyalty. The results of the study could assist the management of the organisation to improve the CRM strategies which will hopefully enhance retention and prevent customer attrition. A literature review was conducted to unveil various elements of CRM, and strategies that can attract and retain customers. It helped in identifying themes for the empirical study. An in-depth interview was conducted with the general manager of the organisation to gauge his perception, and CRM practices in the organisation. An interview guide was used during the interview process. Four main topics namely: implementation of CRM, customer loyalty, customer complaints and conflict, and employees training and motivation were utilised for the interview guide and followed by further probing. Based on the responses obtained, analyses were made by comparing the responses to what literature revealed so that shortcomings could easily be identified.The study revealed that there were several inconsistencies with what was practised by the organisation and what the literature study revealed. Bearing in mind the shortcomings identified in the empirical study, the researcher made the following recommendations. The CRM implementation approach needs to be carefully planned with a clear defined vision and mission statement that focus on customer centredness. The organisation needs to invest in modern and innovative channels of communication and strategic partnership to reach the right customer. The organisation has to develop effective market segmentation and targeting to know the customer well. Consistent and highly relevant customer experiences should be drawn-on to fulfill the organisation’s promise of trust and reliability. The organisation should adopt competitive pricing strategy to limit customer sensitivity on price. The organisation should invest in employees’ development and welfare. Further research can be conducted to investigate the perception of other food retailers on the CRM strategies practiced. Further research can also be conducted in the organisation to investigate the perception of employees and customers on the CRM strategies practised.

Thesis (MBA)--Stellenbosch University, 2002.
ENGLISH ABSTRACT: "Globally, businesses invested about $8 billion in hardware, software and external services in 1999 to design and implement eCRM solutions. And these investments will grow to over $38 billion by 2003. We also see that it is happening everywhere from New York City to Sydney and Frankfurt to Seoul and Rio de Janeiro." Stanley A. Brown (2000:xiii). The ever-changing global environment brings new challenges and opportunities to the business environment. These rapid changes in the marketplace force companies to reconsider the ways in which they do business. Companies will not be able to avoid macro-environmental scanning and scenario planning. Companies that will survive in this unpredictable arena must develop skills to become faster and more efficient. The most significant changes and challenges will be in new competition faced by companies (for example, from previously unexpected sectors) and in changes in customer demands. Recent rapid technological developments have created new methods of doing business, resulting in new markets and new business practices. The world-wide market place now allows customers to obtain price and quality information readily and reliably - 24 hours a day, 7 days a week. Companies will not be able to gain and retain competitive advantage by developing skills in only one area. 'Customers are increasingly difficult to satisfy and require quality, promptness and realistic prices for products and services. Customers prefer to be treated as individuals with individual needs and requirements, and not as part of the mass-market. Segmentation alone will not assist companles per se - implementation of the segmentation supported by specific business processes and technologies will result in the required shift from a product-orientated approach to a market-orientated approach. A business objective for companies in the New Economy must be to increase customer retention, leveraged by a customer-driven focus. An increase in customer retention will benefit the company - it is more expensive to acquire new customers than retain an existing customer base. This study argues that a customer-driven focus supported by the latest ecommerce processes and technology will assist companies in gaining and retaining a competitive advantage. The study will focus on the successes, and factors contributing to these successes, of Customer Relationship Management (CRM) software implementation. In addition to the above, the study will focus on the reasons why ROl (Return on Investment) on CRM implementation projects is inadequate in many cases. A further objective of this study will be to describe the main reasons why up to 60% of CRM implementations fail at first pass, and examine how to reduce this percentage significantly. The study will finally demonstrate that the critical question for managers is not whether a CRM system is necessary, but which products to implement and which factors to take into account before implementing the project.
AFRIKAANSE OPSOMMING: "Globally, businesses invested about $8 bill/ion in hardware, software and external services in 1999 to design and implement eCRM solutions. And these investments wil/ grow to over $38 billion by 2003. We also see that it is happening everywhere from New York City to Sydney and Frankfurt to Seoul and Rio de Janeiro." Stanley A. Brown (2000:xiii) Die deurlopend veranderende wêreld veroorsaak dat daar gedurig nuwe uitdagings en geleenthede in die besigheidswêreld ontstaan. Hierdie skielike veranderinge dwing besighede om in diepte te kyk na die manier waarop hulle besigheid doen. Dit sal onwys wees vir besighede om makro-ekonomiese vooruitskatting en scenario-beplanning te vermy. Besighede wat in hierdie onvoorspelbare omgewing wil oorleef, sal vaardighede moet ontwikkel om ratser en meer effektief te wees. Die ingrypendste veranderinge en uitdagings sal wees in die vorm van nuwe kompetisie waardeur besighede bedreig sal word - byvoorbeeld uit voorheen onverwagte sektore - asook veranderinge in verbruikersbehoeftes. Snelle tegnologiese ontwikkeling het nuwe besigheidsmetodes tot stand gebring, met gevolglike nuwe markte en nuwe besigheidspraktyke. Die wêreldmark maak dit nou vir verbruikers moontlik om inligting vinnig en betroubaar in die hande te kry - 24 uur per dag, 7 dae per week. Besighede sal nie 'n kompeterende voorsprong kan realiseer deur vaardighede in slegs een area te ontwikkel nie. Verbruikers is toenemend moeiliker om tevrede te stel, en dring aan op kwaliteit, flinkheid en realistiese pryse vir produkte en dienste. Verbruikers wil behandel word as individue met individuele behoeftes en nie as deel van 'n gesiglose massa nie. Segmentasie alleen kan besighede nie in hierdie verband help nie - die noodsaaklike skuif van 'n produkgeorienteerde benadering na 'n markgeorienteerde benadering sal teweeggebring moet word deur segmentasie wat ondersteun word deur spesifieke besigheidsprosesse en tegnologieë. Besighede in die Nuwe Ekonomie sal hulle ten doel moet stel om verbruikers te behou. Hierdie doelwit moet onderlê word deur 'n verbruikergedrewe fokus. 'n Toename in die behoud van verbruikers is voordelig vir die besigheid, aangesien dit duurder is om nuwe kliënte te werf as om 'n bestaande kliëntebasis te behou. Hierdie studie maak die aanspraak dat 'n verbruikergedrewe fokus, ondersteun deur die mees moderne e-handel prosesse en tegnologieë, besighede sal ondersteun in die verkryging en behoud van 'n kompeterende voorsprong. Die studie sal fokus op die suksesse, en die bydraende faktore tot sukses, wat kan volg op die implementering van spesifiek sagteware vir Kliënteverhoudinge Bestuur (Customer Relationship Management of CRM). Die studie sal verder fokus op die redes waarom die Opbrengs op Belegging (Return on investment of ROl) vir CRM implementasie projekte dikwels ontoereikend is. Die studie sal ook die hoofredes aangee waarom soveel as 60% van alle CRM implementasies met die eerste poging misluk, en ondersoek sal gedoen word na stappe om hierdie persentasie aansienlik te verminder. Die studie sal uiteindelik aan die hand doen dat die kritiese vraag vir bestuurders nie is óf 'n CRM stelsel noodsaaklik is nie, maar watter produkte geïmplementeer moet word, en watter faktore in ag geneem moet word voor implementasie.

Thesis (MBA)--Stellenbosch University, 2002.
ENGLISH ABSTRACT: The aim of this report was the evaluation of the current theoretical knowledge base and to use that to create and evaluate a technique or method to optimise the decision making processes at play in customer relationship management. The report contains much theory and discussions where attempts are made to address the primary problems that often come in the way of successful transformations. Rather than present empirical evidence in an attempt to prove one thing or the other, the focus is more conceptual in nature, but at the same time it is hoped that conceptual arguments put forth, stimulate lateral thought in this field. Initially the report supplies research on the global practises in use on the different dimensions that are relevant to customer relationship management. These dimensions, and the elements therein, are discussed in some transformation plans, which are then evaluated. By means of a survey under South African companies, the alignment between the national, and the international approaches to customer relationship management are discussed. Finally, an attempt is made to supply the reader with the valuable lessons that have already been learned, accompanied by a proposal on how a successful transformation can be managed.
AFRIKAANSE OPSOMMING: Die doelstelling van hierdie verslag was om die teoretiese kennisbasis wat tot dusver ontwikkel is in oënskou te neem en dan 'n tegniek of metode te ontwikkel en te evalueer om die besluitnemingsproses met betrekking tot die kliëntverhoudingsbestuur transformasie te optimaliseer. Die verslag bevat deurgaans 'n aansienlike hoeveelheid teorie en bespreking waar gepoog word om die primêre probleme wat op die weg van 'n suksesvolle transformasie lê, aan te spreek. Eerder as 'n suiwer empiriese studie wat poog om die een of ander teorie te bewys, is die fokus ietwat meer konseptueel van aard, maar daar word terselftertyd vertrou dat die konseptuele argumente wat aangevoer word, laterale denke sal stimuleer in hierdie veld. Die verslag doen aanvanklike navorsing oor die globale uitkyk op die verskillende dimensies wat op die kliëntverhoudingsbestuur veld van toepassing is. Hierdie dimensies, en die elemente daarin vervat, word dan in 'n paar transformasie planne geplaas en ge-evalueer. Deur middel van 'n ondersoek onder Suid-Afrikaanse maatskappye, word die belyning tussen die nasionale en die internasionale beskouings van kliëntverhoudingsbestuur bespreek. Daar word ten slotte gepoog om die waardevolle lesse wat reeds geleer is aan die leser beskikbaar te stel, tesame met 'n voorstel van hoe 'n suksesvolle transformasie bestuur kan word.

Thesis (M. Phil.)--City University of Hong Kong, 2005.
"Submitted to Department of Manufacturing Engineering and Engineering Management in partial fulfillment of the requirements for the degree of Master of Philosophy." Includes bibliographical references.

AbstractThe Scaled Agile Framework (SAFe) is a framework for scaling agile methods in large organizations. We have found several experience reports and white papers describing SAFe adoptions in different banks, which indicates that SAFe is being used in the banking industry. However, there is a lack of academic publications on the topic, the banking industry is missing in the scientific reports analyzing SAFe transformations. To fill this gap, we present a study on the main challenges with a SAFe transformation at a large full-service bank. We identify the challenges in the bank under study and compare the findings with experience reports from other banks, as well as with research on SAFe transformations in other domains. Many of the challenges reported in this paper overlap with the generic SAFe challenges, including management and organization, education and training, culture and mindset, requirements engineering, quality assurance, and systems architecture. However, we also report some novel challenges specific to the banking domain, e.g., the risk of jeopardizing customer relations, stability, and trust of external stakeholders. This study validates several SAFe-related challenges reported in previous work in the banking context. It also brings up some novel challenges specific to the banking industry. Therefore, we believe our results are particularly useful to practitioners responsible for SAFe transformations at other banks.

Everywhere customer satisfaction is crucial to business success. As a result, cross-cultural marketing has extensively studied the specific cultural expectations of customers regarding products and services. It has also investigated the influence of cultures on negotiation processes, especially in business-to-business transactions. However, the literature has overshadowed that what customer relations mean and how they are maintained vary across cultures. Three examples from China, France, and Côte d’Ivoire respectively illustrate different conceptions of customer relations. In each country, relations to customers make sense according to the prevailing forms of social relations. Providing, as well as obtaining, good customer service in each context requires an understanding of that specific cultural background.

Abstract Trinidad and Tobago has the oldest petroleum industry in the world. The activities of this industry have historically impacted the environment and newly drafted environmental rules and regulations of Trinidad and Tobago will require sound environmental management systems by all operating companies in the industry. In order to meet the challenges of these new regulations, the Petroleum Company of Trinidad and Tobago Limited (Petrotrin) is currently pursuing the development and implementation of an Environmental Management System within its Exploration and Production operations in accordance with the ISO 14001 Standard. This project was initiated in October 1999, and is expected to terminate in December 2001 with international certification. Petrotrin, realizing the competitive advantages that can result from the integration of an Environmental Management System into its operating systems, has placed the implementation of the EMS as a company strategic goal. The project was categorized into three main stages: Development, Implementation and Audit/Certification. To date, the Development Stage has been completed and the implementation stage initiated, with the following successes: • Allocation of manpower resources in the formation of the Steering and Executive Management Committees, and an EMS Project Team; • Training of project personnel in ISO 14001/10/11/12 Standards; • Revision of the company Environmental Policy statement; • Conducting the Gap Analysis Study; • Development of the Implementation Plan based on the results of the Gap Analysis; • Initiated the development of the EMS manual and drafted initial procedures as outlined in the Implementation Plan; • Collection and analysis of data for identification of Significant Environmental Aspects and impacts for Exploration and Production activities. The Development and Implementation of an Environmental Management System in accordance with the world renowned ISO 14001 is expected to derive many benefits to Petrotrin such as reduced operating costs, improved financial performance, increased access to markets, improved environmental performance, improved community relations, improved customer relations and employee involvement and education.

E-commerce in trade companies during the course of the pandemic crisis has become more than a technology; it includes a whole range of activities such as business processes, business organization, communication, customer relationship management, the E-sales orientation and business progress through the Information and Communication technologies. The consequences of the pandemic COVID-19 are reflected on the various spheres of social life, including the businesses of the companies. New strategies and techniques in business have positively contributed to the survival of trading companies on the market in the new situation. Therefore, trading companies were forced to adjust their way of working, doing business and maintaining contacts with the customers and suppliers in the new situation. E-commerce in trading companies has become much more than the E-sales. Digitalising business leads to the implementation of E-commerce of the supply chain management that leads to speeding up and maintaining of the business processes. Due to rapid technological changes, E-commerce needs to follow new trends on the Information and Communication technologies market in order to remain effective. E-commerce can also help to organize communication processes. Online sales in the situation of the pandemic crisis have proven to be an effective sales method with which trading companies can maintain their sales in contactless customer relations. With the E-commerce can be improved all the company's business relations by the introduction of opportunities that it provides in business, by building architecture of E-commerce and by implementation of applications for business enterprises taking into account the potential costs and benefits of introducing this kind of business. However, with the introduction of E-commerce, both of the marketing strategies and the market expansions can be improved. In the paper are listed and analysed changes in the trade operations of the two companies due to the pandemic crisis; one deals with the sale of agricultural machinery and the other with the sale of food products: at this point we examine and compares the differences in the business processes management with the customers and suppliers in the normal way of doing business also in the new occasions, that is the consequential business adjustment in the course of pandemic.

SSPA Sweden AB has developed a decision support tool for Arctic offshore operations in close cooperation with the ship owner Transatlantic. With their icebreaking offshore supply vessels, Transatlantic has experience in both offshore operations and ice breaking for the Swedish Maritime Administration, which gives them a unique competence for Arctic offshore tasks. Founded on these experiences SSPA has created a toolbox based on Bayesian networks to provide the decision maker with the required competence to plan, dimension and organise offshore operations. The demands on the model given by Transatlantic for this tool were to include an accurate planning possibility, it should be handy and flexible, successively extendable, based scientifically and it should reflect the operators experience and even experience transfer. The developed tool is based on so called Bayesian Networks. With the help of the graphical directed arrows it is possible to describe complex links and relations between: - specific customer demands and service needs, - supply tasks, icebreaking management, anchor handling, towing, etc., - local external environmental conditions, ice, weather, - surrounding infrastructure, base harbours, transports, - external requirements, national rules, permissions, classification requirements, - possible abnormalities, undesired events, danger of accident, - emergency preparedness, redundant resources, - resources, vessels in use, land-based resources, helicopters, etc. By combining risk analysis methodology, statistics and expert judgements the tool belays and incorporates high safety, cost-benefit, well-reasoned strategies, alternative plans of action and purposive solutions.

Attention to safety and health are of ever-increasing priority to industrial organizations. Good Safety is demanded by stockholders, employees, and the community while increasing injury costs provide additional motivation for safety and health excellence. Safety has always been a strong corporate value of DuPont and a vital part of its culture. As a result, DuPont has become a benchmark in safety and health performance. Since 1990, DuPont has re-engineered itself to meet global competition and address future vision. In the new re-engineered organizational structures, DuPont has also had to re-engineer its safety management systems. A special Discovery Team was chartered by DuPont senior management to determine the “best practices’ for safety and health being used in DuPont best-performing sites. A summary of the findings is presented, and five of the practices are discussed. Excellence in safety and health management is more important today than ever. Public awareness, federal and state regulations, and enlightened management have resulted in a widespread conviction that all employees have the right to work in an environment that will not adversely affect their safety and health. In DuPont, we believe that excellence in safety and health is necessary to achieve global competitiveness, maintain employee loyalty, and be an accepted member of the communities in which we make, handle, use, and transport products. Safety can also be the “catalyst” to achieving excellence in other important business parameters. The organizational and communication skills developed by management, individuals, and teams in safety can be directly applied to other company initiatives. As we look into the 21st Century, we must also recognize that new organizational structures (flatter with empowered teams) will require new safety management techniques and systems in order to maintain continuous improvement in safety performance. Injury costs, which have risen dramatically in the past twenty years, provide another incentive for safety and health excellence. Shown in the Figure 1, injury costs have increased even after correcting for inflation. Many companies have found these costs to be an “invisible drain” on earnings and profitability. In some organizations, significant initiatives have been launched to better manage the workers’ compensation systems. We have found that the ultimate solution is to prevent injuries and incidents before they occur. A globally-respected company, DuPont is regarded as a well-managed, extremely ethical firm that is the benchmark in industrial safety performance. Like many other companies, DuPont has re-engineered itself and downsized its operations since 1985. Through these changes, we have maintained dedication to our principles and developed new techniques to manage in these organizational environments. As a diversified company, our operations involve chemical process facilities, production line operations, field activities, and sales and distribution of materials. Our customer base is almost entirely industrial and yet we still maintain a high level of consumer awareness and positive perception. The DuPont concern for safety dates back to the early 1800s and the first days of the company. In 1802 E.I. DuPont, a Frenchman, began manufacturing quality grade explosives to fill America’s growing need to build roads, clear fields, increase mining output, and protect its recently won independence. Because explosives production is such a hazardous industry, DuPont recognized and accepted the need for an effective safety effort. The building walls of the first powder mill near Wilmington, Delaware, were built three stones thick on three sides. The back remained open to the Brandywine River to direct any explosive forces away from other buildings and employees. To set the safety example, DuPont also built his home and the homes of his managers next to the powder yard. An effective safety program was a necessity. It represented the first defense against instant corporate liquidation. Safety needs more than a well-designed plant, however. In 1811, work rules were posted in the mill to guide employee work habits. Though not nearly as sophisticated as the safety standards of today, they did introduce an important basic concept — that safety must be a line management responsibility. Later, DuPont introduced an employee health program and hired a company doctor. An early step taken in 1912 was the keeping of safety statistics, approximately 60 years before the federal requirement to do so. We had a visible measure of our safety performance and were determined that we were going to improve it. When the nation entered World War I, the DuPont Company supplied 40 percent of the explosives used by the Allied Forces, more than 1.5 billion pounds. To accomplish this task, over 30,000 new employees were hired and trained to build and operate many plants. Among these facilities was the largest smokeless powder plant the world had ever seen. The new plant was producing granulated powder in a record 116 days after ground breaking. The trends on the safety performance chart reflect the problems that a large new work force can pose until the employees fully accept the company’s safety philosophy. The first arrow reflects the World War I scale-up, and the second arrow represents rapid diversification into new businesses during the 1920s. These instances of significant deterioration in safety performance reinforced DuPont’s commitment to reduce the unsafe acts that were causing 96 percent of our injuries. Only 4 percent of injuries result from unsafe conditions or equipment — the remainder result from the unsafe acts of people. This is an important concept if we are to focus our attention on reducing injuries and incidents within the work environment. World War II brought on a similar set of demands. The story was similar to World War I but the numbers were even more astonishing: one billion dollars in capital expenditures, 54 new plants, 75,000 additional employees, and 4.5 billion pounds of explosives produced — 20 percent of the volume used by the Allied Forces. Yet, the performance during the war years showed no significant deviation from the pre-war years. In 1941, the DuPont Company was 10 times safer than all industry and 9 times safer than the Chemical Industry. Management and the line organization were finally working as they should to control the real causes of injuries. Today, DuPont is about 50 times safer than US industrial safety performance averages. Comparing performance to other industries, it is interesting to note that seemingly “hazard-free” industries seem to have extraordinarily high injury rates. This is because, as DuPont has found out, performance is a function of injury prevention and safety management systems, not hazard exposure. Our success in safety results from a sound safety management philosophy. Each of the 125 DuPont facilities is responsible for its own safety program, progress, and performance. However, management at each of these facilities approaches safety from the same fundamental and sound philosophy. This philosophy can be expressed in eleven straightforward principles. The first principle is that all injuries can be prevented. That statement may seem a bit optimistic. In fact, we believe that this is a realistic goal and not just a theoretical objective. Our safety performance proves that the objective is achievable. We have plants with over 2,000 employees that have operated for over 10 years without a lost time injury. As injuries and incidents are investigated, we can always identify actions that could have prevented that incident. If we manage safety in a proactive — rather than reactive — manner, we will eliminate injuries by reducing the acts and conditions that cause them. The second principle is that management, which includes all levels through first-line supervisors, is responsible and accountable for preventing injuries. Only when senior management exerts sustained and consistent leadership in establishing safety goals, demanding accountability for safety performance and providing the necessary resources, can a safety program be effective in an industrial environment. The third principle states that, while recognizing management responsibility, it takes the combined energy of the entire organization to reach sustained, continuous improvement in safety and health performance. Creating an environment in which employees feel ownership for the safety effort and make significant contributions is an essential task for management, and one that needs deliberate and ongoing attention. The fourth principle is a corollary to the first principle that all injuries are preventable. It holds that all operating exposures that may result in injuries or illnesses can be controlled. No matter what the exposure, an effective safeguard can be provided. It is preferable, of course, to eliminate sources of danger, but when this is not reasonable or practical, supervision must specify measures such as special training, safety devices, and protective clothing. Our fifth safety principle states that safety is a condition of employment. Conscientious assumption of safety responsibility is required from all employees from their first day on the job. Each employee must be convinced that he or she has a responsibility for working safely. The sixth safety principle: Employees must be trained to work safely. We have found that an awareness for safety does not come naturally and that people have to be trained to work safely. With effective training programs to teach, motivate, and sustain safety knowledge, all injuries and illnesses can be eliminated. Our seventh principle holds that management must audit performance on the workplace to assess safety program success. Comprehensive inspections of both facilities and programs not only confirm their effectiveness in achieving the desired performance, but also detect specific problems and help to identify weaknesses in the safety effort. The Company’s eighth principle states that all deficiencies must be corrected promptly. Without prompt action, risk of injuries will increase and, even more important, the credibility of management’s safety efforts will suffer. Our ninth principle is a statement that off-the-job safety is an important part of the overall safety effort. We do not expect nor want employees to “turn safety on” as they come to work and “turn it off” when they go home. The company safety culture truly becomes of the individual employee’s way of thinking. The tenth principle recognizes that it’s good business to prevent injuries. Injuries cost money. However, hidden or indirect costs usually exceed the direct cost. Our last principle is the most important. Safety must be integrated as core business and personal value. There are two reasons for this. First, we’ve learned from almost 200 years of experience that 96 percent of safety incidents are directly caused by the action of people, not by faulty equipment or inadequate safety standards. But conversely, it is our people who provide the solutions to our safety problems. They are the one essential ingredient in the recipe for a safe workplace. Intelligent, trained, and motivated employees are any company’s greatest resource. Our success in safety depends upon the men and women in our plants following procedures, participating actively in training, and identifying and alerting each other and management to potential hazards. By demonstrating a real concern for each employee, management helps establish a mutual respect, and the foundation is laid for a solid safety program. This, of course, is also the foundation for good employee relations. An important lesson learned in DuPont is that the majority of injuries are caused by unsafe acts and at-risk behaviors rather than unsafe equipment or conditions. In fact, in several DuPont studies it was estimated that 96 percent of injuries are caused by unsafe acts. This was particularly revealing when considering safety audits — if audits were only focused on conditions, at best we could only prevent four percent of our injuries. By establishing management systems for safety auditing that focus on people, including audit training, techniques, and plans, all incidents are preventable. Of course, employee contribution and involvement in auditing leads to sustainability through stakeholdership in the system. Management safety audits help to make manage the “behavioral balance.” Every job and task performed at a site can do be done at-risk or safely. The essence of a good safety system ensures that safe behavior is the accepted norm amongst employees, and that it is the expected and respected way of doing things. Shifting employees norms contributes mightily to changing culture. The management safety audit provides a way to quantify these norms. DuPont safety performance has continued to improve since we began keeping records in 1911 until about 1990. In the 1990–1994 time frame, performance deteriorated as shown in the chart that follows: This increase in injuries caused great concern to senior DuPont management as well as employees. It occurred while the corporation was undergoing changes in organization. In order to sustain our technological, competitive, and business leadership positions, DuPont began re-engineering itself beginning in about 1990. New streamlined organizational structures and collaborative work processes eliminated many positions and levels of management and supervision. The total employment of the company was reduced about 25 percent during these four years. In our traditional hierarchical organization structures, every level of supervision and management knew exactly what they were expected to do with safety, and all had important roles. As many of these levels were eliminated, new systems needed to be identified for these new organizations. In early 1995, Edgar S. Woolard, DuPont Chairman, chartered a Corporate Discovery Team to look for processes that will put DuPont on a consistent path toward a goal of zero injuries and occupational illnesses. The cross-functional team used a mode of “discovery through learning” from as many DuPont employees and sites around the world. The Discovery Team fostered the rapid sharing and leveraging of “best practices” and innovative approaches being pursued at DuPont’s plants, field sites, laboratories, and office locations. In short, the team examined the company’s current state, described the future state, identified barriers between the two, and recommended key ways to overcome these barriers. After reporting back to executive management in April, 1995, the Discovery Team was realigned to help organizations implement their recommendations. The Discovery Team reconfirmed key values in DuPont — in short, that all injuries, incidents, and occupational illnesses are preventable and that safety is a source of competitive advantage. As such, the steps taken to improve safety performance also improve overall competitiveness. Senior management made this belief clear: “We will strengthen our business by making safety excellence an integral part of all business activities.” One of the key findings of the Discovery Team was the identification of the best practices used within the company, which are listed below: ▪ Felt Leadership – Management Commitment ▪ Business Integration ▪ Responsibility and Accountability ▪ Individual/Team Involvement and Influence ▪ Contractor Safety ▪ Metrics and Measurements ▪ Communications ▪ Rewards and Recognition ▪ Caring Interdependent Culture; Team-Based Work Process and Systems ▪ Performance Standards and Operating Discipline ▪ Training/Capability ▪ Technology ▪ Safety and Health Resources ▪ Management and Team Audits ▪ Deviation Investigation ▪ Risk Management and Emergency Response ▪ Process Safety ▪ Off-the-Job Safety and Health Education Attention to each of these best practices is essential to achieve sustained improvements in safety and health. The Discovery Implementation in conjunction with DuPont Safety and Environmental Management Services has developed a Safety Self-Assessment around these systems. In this presentation, we will discuss a few of these practices and learn what they mean. Paper published with permission.