The Baker Panel Report - ABSA

RECOMMENDATION #5—CLEARLY DEFINED EXPECTATIONS AND ACCOUNTABILITY FOR PROCESSSAFETYBP should clearly define expectations and strengthen accountability for process safety performance at all levels in executivemanagement and in the refining managerial and supervisory reporting line.Commentary(1) “clearly define expectations and strengthen accountability”—Ultimate accountability and responsibility cannot be delegated and rests atthe top of the organization. BP must strengthen accountability and responsibility for process safety performance in executive management andin the U.S. refining managerial and supervisory reporting line. Delegations of authority and related accountabilities must be made withoperational clarity and specificity about process safety expectations and performance criteria. Accountability should include ensuring that process safety performance goals, objectives, and expectations are included in performance contracts, employeesgoals and objectives, and discretionary compensation arrangements for line managers, supervisors, and workers in BP’sU.S. refineries, making a significant portion of total compensation of refining line managers and supervisors contingent on satisfactorily meetingprocess safety performance indicators and goals in the U.S. refineries, making a significant portion of the variable pay plan for non-managerial workers in BP’s U.S. refineries contingent on satisfactorilymeeting process safety performance objectives, and making process safety performance and leadership significant considerations in career advancement and succession planning.(2) “for process safety performance”—Because major process safety incidents occur relatively infrequently, process safety performancecannot be measured effectively by the occurrence of such incidents alone. Accordingly, BP should establish performance expectations that(a) eliminate on a prescribed schedule gaps in process safety practices at the U.S. refineries as compared with applicable internal and externalstandards and practices, including best practices and other recommended external practices and standards, and (b) include identified processsafety performance indicators as described in Recommendation #7 (and the related commentary).(3) “at all levels in executive management and in the refining managerial and supervisory reporting line”—All levels of management andsupervision play an important role in process safety performance, from the Group Chief Executive to refinery level supervisors and first levelleaders. At each of these levels, process safety accountabilities should be defined in operational terms that are understood—and thenenforced. Managers and supervisors must know that a failure to perform according to operationally defined process safety expectations willhave consequences.BP should also ensure that each U.S. refinery plant manager is primarily responsible for the safe operation of the refinery. The first priority forthe top line manager at each U.S. refinery must be to operate the refinery safely. Commercial responsibilities should not take priority over safetyfor this key line manager.Panel’s Recommendations C 251