Organisational Integrity Module 3 Summary

The Fundamentals of Asset Integrity Management
Online Training Series Course Summary
COURSE A: THE FUNDAMENTALS OF ORGANISATIONAL

INTEGRITY
Module 3: Managing the Human Factors in Organisational

Integrity
Why Organisational Integrity?
This testimonial describes the importance of the involvement of the individuals in the
company's ability to operate safely and efficiently:
Every individual must understand the concepts and systems involved in Integrity
Management. There has to be a system and the people involved needs to understand this
system and know it. They need to understand that their action, decisions, attitudes and
behavior will have a decisive impact on the integrity and safety of the company. Behavior
and knowledge are 2 main components of human impact on integrity.
The Human Factor in Organisational Integrity

In an organisation, the integrity can be best described as knowing the right things to do
and doing the right things".
This has to be embedded in systems and learned to individuals. The right things need to be
done and expressed in actions and behaviors - and therefore, an organisation needs to
implement and maintain an integrity culture.
This modules covers Leadership as playing an important part in realizing the integrity
culture and what are the required leadership styles and how to promote integrity and to
realize participation
The Narrow aspect of Human Integrity is acting according to a personal set of values,
beliefs and principles.
The Broad aspect of Human Integrity is the alignment between what "one does and one
says".
The Narrow aspect of Organisational Integrity is encouraging absolutely no corruption,
a code of conduct and encouraging compliance management.
The Broad aspect of Organisational Integrity is where integrated, consistent
approaches and behaviors lead to knowing what are the right things to do and doing
them".
Firstly some considerations:

Organisational integrity principles are expressed in value statements and codes (narrow
approach) organisational integrity is embedded in all systems and embodied by all
employees (broad) - there are already some requirements mentioned such as value
statements, codes, make explicit what we want but also the broader view where every
element in the system has to deal with integrity and has to be embodied by all employees
so that an organisational integrity culture will be in place.
Human integrity is externalized in concrete situations in relationship with others and within
organisations - this is clear and it helps make integrity more tangible for values are
expressed in behavior
Course summary developed by Michelle McIntyre on behalf of Oil and Gas Fundamentals Oil and Gas Fundamentals 2012
THIS IS A CONFIDENTIAL SUMMARY OF THE CONTENTS OF AN ONLINE TRAINING COURSE FOUND AT WWW.OILANDGASFUNDAMENTALS.COM.
IT IS FOR THE REVIEW OF COURSE PARTICIPANTS ONLY AND IS NOT FOR DISSEMINATION COPYRIGHT RESTRICTIONS APPLY
Human integrity can be under pressure by organisational culture (integrity) it affects the
way people act in their day-to-day work. Examples of people working under pressure are
where they are working with groups and are exposed to a group behavior. Where
sometimes in a group it is common practice to deceive customers and ask for payment to
services that have not been delivered. Here now it is challenging for a person to act in line
with their personal values/integrity.
Not every employee will act accordingly the values - not every employee will act according
to values for one can be under pressure to act without integrity and this can be vice versa.
Leadership needs to assure that the way an organisational ethos in relation to the
collective values, for instance:
Are the values congruent with the companys needs, goals and resources?
What if managers are confronted with competing and ambiguous demands?
What is an organisation?
A structure is not an organisation. There are more requirements from an organisation than
just a structure. How the organisation will work is strongly related to the culture of the
organisation.
What is Culture (Organisational Integrity)?

The culture of a company is concerned with the attitudes and behaviours of a group of
people. It relates to collective behaviour and is realized through communication and co-
operation between people. Culture can be learned.
So what is the standard collective behavior we want at the end of the day from and
organisation? And therefore, what culture we want starts with what values we want!
Values
You can say values are the sacred core convictions employees have about how they must
behave in the fulfillment of the organisation's mission. Which values are appropriate for
an organisation?
The values are really the fundamentals for the desired behavior - it is our ethical compass
You will find values in different forms - more or less detailed. The importance however is
that people will know what the organisation's intent is and what they expect from their
employees.
A lot of firms/companies have described and transformed the values to expected
behavior: e.g. code of conduct or in their management system.
Some examples of values are safety, respect, excellence, courage, one team for instance
Leadership and Integrity

If a company has made clear what values they want and have made it more explicit in
codes of conduct they need to be introduced and maintained crucial in it are the managers
and leaders within the company.
Leaders need to behave with integrity. Integrity is required for Leadership and Leadership
is required for Integrity!
Leadership is a process in which one person affects another with influence to reach a
certain target.
Leadership style is getting things done through our people its a kind of level or crowbar.
Leadership statement the most critical aspect of creating and maintaining integrity is
the behavior of the leaders
They have to set the example and if they dont, you will never succeed in implementing
organisational integrity. for the supreme power of leadership is integrity
Leaders have to encourage others to follow the values they need to spread the message.
The leverage effect in introducing and maintaining integrity is crucial. If the organisation
is prepared to sweep things under the carpet then maladjusted behavior will continue.
Staff must see that the organisation is doing something about it
It is clear that leaders need to reward those who act with integrity and correct those who
dont. If this is not done, we will never end up with the organisational integrity required.
Leadership styles
The first requirement of leadership is that they need to be the example,
Secondly, they need to stick to the values as everyone else of the company. Everyone
including management and leaders need to follow values. The following are some of the
elements and examples of these basic values:
Understand the business
o Know how you impact business integrity, decide based on facts, derived from
thorough analysis, structure your work effectively and efficiently, work
together cohesively across the group
Go for excellence
o Put always safety and health first, get results and profitable growth, apply the
companies best standards, take initiative / Come up with ideas and proposals
and learn all the time
Be responsible and accountable
o Do what you say, show respect and tolerance, speak your mind and listen to
others and demonstrate loyalty once decisions are made
How leaders need to encourage others to follow these values

Leaders need to encourage others to follow these values. Leadership principles are the
mirror function of the values. This approach makes it clear what are the requirements for
leaders - not only following and being the example for the values - but by doing something
extra. They need to apply the leadership principles as follows:
o Clarify the business
o Spread understanding over the business and everything that impacts its
integrity, define and prioritize strategies and goals, implement and
support responsibilities and authorities, base analysis and decisions on
facts and be brutally honest
o Encourage performance
o Drive commitment and accountability for Safety Health and Environment,
require excellence, build change capability and be persistent
o Drive passion for people
o Build trust and enthusiasm, develop competence, be open and have fun!
So these leaders need to demonstrate commitment and personal accountability which

relates to the basic values and their leadership principles.
Leaders need to reward those who act with integrity and correct those who dont!
They need to find a leadership style that supports and nurtures people in implementing and
monitoring the integrity behavior and on the other hand, correct/direct people who are not
willing/able to behave with integrity.
There is no one best leadership style for successful leaders adapt their leadership style to
the needs of the situation.
The HerseyBlanchard Situational Leadership Model

This model shows 4 distinct leadership styles - S1 to S4. The styles are linked to the
different combinations of directive and supportive leadership behavior. In each
intervention, it is necessary to apply a style in relation to the maturity level of the staff
member. The leadership style should be applied to which is the most effective.
Direct behavior is expressed by control and supervision - one way behavior.
Supportive behavior is praise, listen and facilitating 2 way communication and direction.
S1 - a combination of highly directive and low supportive leadership behavior. Its
referred to as Directing. Leaders direct how, what where and when to do various tasks.
S2 - this is the Coaching style - high directive and high supportive leadership behavior -
the leader tends to give high directions but tends to listen to the feelings of the
employee and listen to the decisions as well as their ideas and suggestions.
S3 - Supporting system - high support and low directive - leader's role is to provide
recognition and to actively listen and facilitate problem solving and decision making by
the employee.
S4 - Delegating - low support and low directive - in this case employees are allowed
great autonomy because they have the confidence to accomplish the task(s) on their
own.
The amount of direction or support a leader should supply will depend on the development
level of the employee performing the task. There are 4 development levels and they are as
follows:
D1 - low competence, high commitment
D2 - low-normal competence, low commitment
D3 - moderate-high competence, variable commitment
D4 - high competence, high commitment
For LOW task maturity the Telling way leadership style applies to direct the way for high task
maturity where leaders can delegate the task.
This leadership model can also be used for introducing and maintaining values and organisation
integrity.
o If people dont know what organisation integrity requirements are but they are
committed, we can be quite directive and tell them to follow.
o If they are less committed, we need to encourage them and sell them organisation
integrity.
o If their competence increase, we can support them, and
o If they have high competence level and high commitment, we can delegate and
observe how they apply integrity in their daily business.
So choosing a Leadership Style in order to ensure that people follow the integrity principles so
that we can reward those who act with integrity and correct those who dont is really
important for leaders.
Managing/taking care of the culture gap

We need to communicate and make sure participation of the entire organisation will be
realized.
But firstly we must be aware of one major risk - the senior management, middle
management and the rest of employees can think that they have the desired integrity
culture - but do they really have it?
The culture is made up explicit by the behavior and the physical after effects - e.g. how we
dress
Exposed values are the values exposed by the leading figures of the culture. E.g. the value
of integrity. However the values sought by leaders should be supported by some general
and shared assumptions. For example - how we feel about safety, how a company should
be run or how a company should be managed.
Therefore, if exposed values by leaders are not in-line with the general assumptions of the
culture, it will create great problems.
The difference between exposed and actual values may create frustrations, lack or moral
and inefficiency. So its very important to align the culture between management/leaders
and the rest of the staff. There can be no gaps/difference in interpretation. We have to
work towards communication and participation to realize this.
Introducing and Maintaining Values - How can we change the Values of People?
Attitude: What a person believes or thinks about something. E.g. is safety important
Behavior: How a person reacts or what they do in a given situation. E.g. always using
personal protective equipment
In the past, it was always thought that interventions were influencing the attitude level
(the values and norms) and these should influence behavior.
Now, studies have shown interventions influenced first the behavior, and then later on it
becomes the attitude level. We will change the behavior and then the attitude.
Now, a company that you may work for executes continuously, actions on safety
interventions. So if you're continuously faced with safety issues and everyone in your
environment adjusts or made adjustments, it really influences your behavior and later on
it tends to change you r attitude towards safety.
So to introduce integrity behavior culture - we need to do continuous interventions. If you
want to introduce safety behavior, then you need to take interventions and influence
actions which support safety. If you want the people to go for excellence, you need to take
actions that are supporting these values. For example, you need to implement trainings
that they can learn. The importance is that the people really feel that safety is not only an
expressed value statement but that its really translated into action - like its just only a
poster stuck up at the entrance or just words.
What type of intervention can we do?

Programs
o Specific programs can be set up supporting the introduction or maintenance of the values.
o Awareness programs where people are made aware of the added values of behavior.
o Structured change management programs supported by an implementation team - used only when there's a
case for action or the sense of urgency is really high e.g. change safety behavior after we had an accident.
o Training programs - valid to support the introduction or refresher of values.
Communications
o We need to communicate around values, set up communication plans which make sure that the right
message is delivered to the right people at the right time.
o We have to tell and retell stories, show results, positive results and results that need to be improved. We
need to report so that everyone in the company knows that everyone knows - from senior management
down to the floor level for everyone needs to be involved
We need to introduce integrate desired values in our daily business:
o Integrated values starting every meeting, presentation, report and every communication e.g.. always
starting with safety
o And of course the desired values or behavior needs to be reflected further on in all Management Systems -
not only in the Integrity Management System and the Quality Management Systems, but all others. They
need to further be reflected in processes, procedures and instructions. E.g. environmental care needs to be
integrated with maintenance in the way they handle disassembled equipment.
o Simple but crucial Good behavior of the management - from Leadership to their colleagues. People will
easier tackle someone on misconduct of the majority is having the desired behavior.
o We need to Control what values are followed as well as management needs to Prevent undesired behaviors
but also will need to be if necessary Repressive.
It will always require leadership, but it never ends.there are always interventions, interventions, interventions.
Intervention and Continuous Improvement Cycle

We can perform improvement actions such as change programs, awareness programs and so on. But maintaining
values is about continuous improvement. We have to execute the, we check whether or not we got results and
based on that we adjust or act. This has to lead to a new plan/cycle of Plan Do Check Act. This is really a major
challenge for we need to be persistent in continuous improvement.
So if you're doing a lot of interventions - we hope that the behavior will change and that the values are introduced
and that you end up with an integrity culture.
There are 4 stages of Behavioral Change:

Unconscious Incompetence - where you dont know that you dont know the culture or you're not aware that you're
supposed to know it. I am not aware that a company has specific rules for the treatment of products/assets. So as a
company, you have to make it clear what is the desired behavior - you have to make them aware
Conscious Incompetence - this is the second stage where I am getting aware that I do not know of these
requirements - my conscious/incompetence is there - probably one would be interested to become competent...
Conscious Competence - Know that you know how - I am aware and I become competent. I follow expertise
trainings on it
Unconscious Competence - Instinctive no thought required - people are no longer actively aware that they're
competent their behavior is so obvious it is more or less instinctive. For example you may always take a decision
based on facts and figures and you may never present something without proper analysis safety behavior is so
obvious that you always put safety first.
This last stage is what you want to become if you want to introduce values. In this stage, will the behavior lead to a good
attitude level and it becomes an intrinsic value to the people.
Competence Management
What is Knowledge: The comprehension of how to do something e.g. Understanding safety concepts
What is Competency: The ability and skills to act. E.g. Ability to use the procedures
We need to be very clear what are the responsibilities and authority's requirements related to the job's content, but
also what are the specific desired behavior requirements additional to the company values.
It starts with role descriptions and derives from it the target profile. We do an assessment of the actual competence
level and describe the gap. Then we need to undertake actions to close the gap. We take decisions in training and
coaching etc... But we can also hire them is we dont have the capabilities.
So competence management is about closing the gaps and implementing the appropriate actions and to casting. The
job context must fit with the person's capabilities and vice versa.
Competences in relations with integrity in oil and gas

Competences of people - in all interactions with the assets and with the management systems used in their working
environment, they have to know:
Product, process, asset, operation safety, health and environmental knowledge and risks
Process control
Alarm and contingency plans
Work practices (e.g. Standard operating procedures, management of change procedure)
Work clearance management
Job content / work scope
Authorizations and responsibilities

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The Fundamentals of Asset Integrity Management

Online Training Series Course Summary

COURSE A: THE FUNDAMENTALS OF ORGANISATIONAL

Module 3: Managing the Human Factors in Organisational

The Human Factor in Organisational Integrity

Firstly some considerations:

What is Culture (Organisational Integrity)?

Leadership and Integrity

How leaders need to encourage others to follow these values

So these leaders need to demonstrate commitment and personal accountability which

The HerseyBlanchard Situational Leadership Model

Managing/taking care of the culture gap

What type of intervention can we do?

Intervention and Continuous Improvement Cycle

There are 4 stages of Behavioral Change:

Competences in relations with integrity in oil and gas

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