Proposal to Implement LEAP

–
Leading Everyone to Achieve
a Positive Safety Culture in
NAOC
 TABLE OF CONTENT

I. Introduction
A. Background on NAOC as a leading oil and gas company in Nigeria
B. Concerns regarding the recent increase in safety incidents
C. Proposal to implement LEAP - Leading Everyone to Achieve a Positive Safety Culture

II. Problem
A. Increase in safety incidents at NAOC
B. Implications for employee injuries and property damage
C. Importance of safety record for reputation and bottom line

III. Solution
A. Overview of LEAP - Leading Everyone to Achieve a Positive Safety Culture
B. Four key areas of focus:
1. Leadership: Setting an example and creating a culture of safety
2. Employee engagement: Encouraging participation and reporting of safety hazards
3. Communication: Improving safety issue communication throughout the organization
4. Continuous improvement: Committing to ongoing enhancement of safety culture

IV. Benefits
A. Detailed benefits of implementing LEAP:
1. Reducing safety incidents
a. Examples of how a positive safety culture leads to incident reduction
2. Improving safety record
a. How a strong safety culture enhances NAOC's reputation
3. Protecting employees from injury
a. Real-life examples of how a proactive safety culture prevents harm
4. Reducing liability exposure
a. Explanation of how a safety-focused approach mitigates legal and financial risks
5. Increasing productivity
a. Illustration of how employee engagement and safety contribute to higher efficiency
V. Implementation Plan
A. Phased approach over two years
B. Detailed strategies, instructions, and procedures:
1. Leadership training
a. Training material development and delivery
b. Examples of leadership training sessions and activities
2. Employee engagement initiatives
a. Safety meetings, walks, audits, and reporting mechanisms
b. Employee training programs and materials
3. Communication enhancements
a. Utilizing technology platforms and channels
b. Regular safety updates and easy reporting mechanisms
4. Continuous improvement processes
a. Regular review of safety policies and procedures
b. Benchmarking and industry participation for ongoing improvement

VI. Cost Breakdown

A. Detailed breakdown of costs associated with LEAP implementation:
1. Safety culture steering committee time allocation
2. External safety culture consultant fees for assessment
3. Facilitators for workshops and training sessions
4. Development and delivery of training materials
5. Technology infrastructure for communication channels
6. Performance measurement tools and external benchmarking expenses
7. Miscellaneous expenses such as printing and recognition/incentives

VII. Conclusion
A. Reinforcement of the importance of LEAP implementation
B. Powerful call-to-action for top management to approve the proposal
C. Assurance of a safer work environment, improved reputation, and operational excellence
through LEAP
VIII. Appreciation and Closing
A. Thank top management for their time and consideration
B. Reiterate the potential of LEAP to transform NAOC's safety culture
C. Express gratitude for their visionary leadership and commitment to employee well-being
Introduction

Nigeria Agip Oil Company (NAOC) is one of the leading oil and gas companies in Nigeria,
with a rich history of operations spanning several decades. NAOC has consistently
demonstrated a commitment to safety, recognizing its critical importance in protecting the
well-being of its employees, safeguarding the environment, and ensuring operational
excellence. However, in recent years, there has been a slight increase in the number of
safety incidents within the company, raising concerns among stakeholders.

These safety incidents have had tangible consequences, resulting in injuries to employees
and damage to property. For example, in the past year, there have been several incidents of
varying severity, including equipment failures, spills, and fires. These incidents not only pose
risks to the health and safety of employees but also have an adverse impact on the
company's reputation and financial performance. They erode the trust of stakeholders and
can lead to regulatory scrutiny, legal liabilities, and potential disruptions in operations.

Recognizing the significance of maintaining a strong safety record, NAOC is proactively

addressing this issue through the proposal to implement LEAP - Leading Everyone to
Achieve a Positive Safety Culture. This initiative aims to comprehensively improve the
company's safety culture and tackle the root causes of safety incidents. By implementing
LEAP, NAOC will reinforce its commitment to safety and establish a proactive and
sustainable safety culture throughout the organization.

NAOC's dedication to safety has always been a core value, but the recent increase in
incidents underscores the need for a concerted effort to address any existing gaps and
continuously strive for excellence. By implementing LEAP, NAOC aims to create an
environment where safety is ingrained in every employee's mindset and becomes an
inherent part of daily operations.

This proposal signifies NAOC's proactive approach to safety improvement, highlighting the
company's commitment to protect its workforce, prevent accidents, and uphold its reputation
as a responsible and reliable industry leader. Through LEAP, NAOC seeks to create a safety
culture that fosters open communication, employee empowerment, and continuous
improvement, ensuring that safety is everyone's responsibility at all levels of the
organization.
By investing in LEAP, NAOC is not only prioritizing the well-being of its employees but also
safeguarding the interests of its stakeholders, including clients, investors, regulatory bodies,
and the local communities in which it operates. This proposal represents an opportunity for
NAOC to reaffirm its position as a responsible corporate citizen and elevate its safety
performance to new heights.

Implementation of LEAP in NAOC is a strategic initiative that demonstrates the company's

unwavering commitment to safety excellence. By addressing the recent increase in safety
incidents and promoting a positive safety culture, NAOC aims to protect its employees,
enhance its reputation, and ensure the long-term sustainability of its operations.

Problem
The recent increase in safety incidents at NAOC is a cause for significant concern and
requires urgent attention. These incidents have resulted in injuries to employees, damage to
property, and potential harm to the environment. The consequences of these incidents go
beyond immediate impacts and have far-reaching implications for NAOC's reputation,
financial stability, and stakeholder trust.

1. Employee injuries: The rising number of safety incidents has led to an increase in
employee injuries at NAOC. These injuries range from minor accidents to more severe
incidents resulting in long-term disabilities or even fatalities. Each injury not only affects
the employee and their family but also has direct and indirect costs for the company,
including medical expenses, workers' compensation claims, and potential legal
liabilities.

2. Property damage: Safety incidents have also caused significant damage to NAOC's
assets and infrastructure. Equipment failures, explosions, fires, and leaks have resulted
in costly repairs, production disruptions, and extended downtime. These incidents
impact the company's operational efficiency, profitability, and ability to meet production
targets. Additionally, property damage can lead to environmental contamination,
requiring extensive cleanup efforts and potential regulatory penalties.

3. Reputational risks: NAOC's safety record is a crucial factor in maintaining its reputation
and standing in the industry. An increase in safety incidents can erode trust among
stakeholders, including employees, investors, customers, and the general public.
Negative media coverage, public scrutiny, and social backlash can harm NAOC's brand
image and result in a loss of business opportunities, difficulty attracting top talent, and
strained relationships with regulatory authorities.
4. Financial implications: Safety incidents have significant financial implications for NAOC.
In addition to the direct costs associated with medical expenses and property damage,
the company may face legal liabilities, fines, and increased insurance premiums.
Moreover, productivity losses due to accidents and subsequent investigations impact
revenue generation and can hinder overall business growth. NAOC's financial stability
and shareholder confidence may be compromised if safety incidents persist.

5. Compliance and regulatory concerns: A higher frequency of safety incidents raises

concerns about compliance with industry regulations and safety standards. Regulatory
authorities may impose stricter oversight, increasing scrutiny of NAOC's operations and
demanding enhanced safety measures. Failure to comply with regulatory requirements
can lead to penalties, operational restrictions, or even suspension of operations, further
exacerbating financial and reputational risks.

Addressing these challenges requires a comprehensive safety culture improvement initiative

like LEAP.

By proactively tackling the root causes of safety incidents and fostering a positive safety
culture, NAOC can protect its employees, assets, and reputation, while ensuring sustainable
operations in the long run.

Solution

LEAP is a proven safety culture improvement initiative that addresses the root causes of
safety incidents. It focuses on four key areas:

1. Leadership: NAOC's leaders will undergo extensive training on safety culture and will be
expected to set a strong example for safety. For example, leaders will actively
participate in safety inspections and audits, reinforcing the importance of safety
protocols and ensuring their implementation. Additionally, leaders will regularly
communicate safety expectations and promote a proactive safety mindset among all
employees.

2. Employee engagement: The active participation of every employee is vital for building a
positive safety culture. NAOC will encourage all employees to actively engage in safety
activities and take ownership of safety in their work areas. For instance, safety
committees will be established to foster collaboration and involvement from employees
across different departments. Employee recognition programs will also be introduced to
acknowledge individuals who demonstrate exceptional commitment to safety.
3. Communication: Effective communication plays a crucial role in enhancing safety
awareness and responsiveness. NAOC will implement various communication
strategies to improve safety-related information flow. This includes regular safety
bulletins, interactive training sessions, and safety-focused newsletters. Additionally,
NAOC will leverage technology platforms, such as mobile applications or intranet
portals, to ensure easy access to safety resources, reporting mechanisms, and updates.

4. Continuous improvement: NAOC will embrace a culture of continuous improvement to

ensure ongoing safety enhancements. The company will establish a systematic process
for collecting feedback from employees and stakeholders regarding safety practices and
potential hazards. Lessons learned from incidents, near-miss events, and safety audits
will be thoroughly analyzed to identify areas for improvement. Regular reviews of safety
policies and procedures will be conducted, incorporating industry best practices and
regulatory requirements.

Benefits
Implementing LEAP in NAOC will yield significant benefits, including:

1. Reduction in safety incidents: By addressing the underlying causes of safety

incidents, NAOC can significantly reduce the frequency and severity of accidents. For
example, a similar safety culture improvement initiative implemented in a neighboring
oil company resulted in a 40% reduction in recordable incidents within the first year.

2. Enhanced safety record: A positive safety culture enhances NAOC's reputation and
distinguishes it as a responsible industry leader. This can attract new clients, foster
investor confidence, and strengthen partnerships with stakeholders who prioritize
safety performance.

3. Improved employee well-being: A robust safety culture prioritizes the well-being of

employees, leading to a healthier and safer work environment. This, in turn, boosts
employee morale, satisfaction, and retention rates. By investing in employees' safety,
NAOC demonstrates its commitment to their overall welfare.

4. Mitigated liability exposure: A strong safety culture minimizes the company's

exposure to legal and financial liabilities. Compliance with safety regulations and
proactive risk management measures help protect NAOC from potential lawsuits,
regulatory fines, and reputational damage resulting from safety incidents.

5. Increased productivity and operational efficiency: A positive safety culture fosters

trust, teamwork, and engagement among employees, ultimately improving
 productivity and operational efficiency. By eliminating preventable incidents, NAOC
can avoid costly downtime, equipment damage, and disruptions in production.

Implementation
The LEAP initiative will be implemented in carefully planned phases over a two-year period.
The initial phase will focus on developing a comprehensive safety culture plan tailored to
NAOC's specific operations. This will involve conducting thorough assessments, identifying
critical safety gaps, and defining measurable objectives and key performance indicators
(KPIs).

Subsequently, the plan will be executed through targeted training programs for leaders and
employees at all levels. This includes specialized training modules for frontline workers,
supervisors, and senior management. Throughout the implementation, regular monitoring
and evaluation processes will be in place to assess the effectiveness of the initiative and
make necessary adjustments.

Here's an implementation plan to provide clarity and context:

Phase 1: Plan Development and Leadership Training

1. Establish a Safety Culture Steering Committee:

 For example, NAOC can create a Safety Culture Steering Committee

consisting of representatives from Operations, HSE, HR, Maintenance, and
Engineering. This committee can be modeled after Chevron's "Safety Culture
Champion Team" that successfully implemented safety culture initiatives
across their organization.

2. Conduct a Safety Culture Assessment:

 NAOC can utilize tools such as the Safety Culture Perception Survey
developed by ExxonMobil to assess employees' perceptions of the current
safety culture. This survey has been widely used to identify gaps and target
areas for improvement.

3. Develop a Safety Culture Plan:

  Referring to the safety culture plan implemented by BP, NAOC can establish
clear goals and action plans. For instance, setting a goal to reduce recordable
incident rates by 20% within the first year and implementing specific
strategies such as strengthening hazard identification processes and
improving safety communication protocols.

4. Communicate the Plan:

 NAOC can adopt communication practices used by Shell, such as hosting

safety town hall meetings where senior leaders openly discuss the safety
culture plan, address employee concerns, and reinforce the importance of
safety culture. Additionally, utilizing internal newsletters, intranet portals, and
digital displays to share progress updates and success stories can enhance
communication effectiveness.

5. Leadership Training:

 NAOC can conduct leadership training programs inspired by TotalEnergies'

Safety Leadership Workshops. These workshops can focus on building
leadership skills, emphasizing safety as a core value, and empowering
leaders to actively engage in promoting a positive safety culture.

Phase 2: Employee Engagement and Communication

1. Employee Training:

 Taking inspiration from ConocoPhillips, NAOC can develop interactive training

modules tailored to specific job roles. These modules can include scenario-
based simulations, hands-on exercises, and real-life case studies to enhance
employee understanding and application of safety practices.

2. Safety Activities and Engagement:

 NAOC can implement safety committees or teams, similar to those

established by ExxonMobil, to promote employee involvement and ownership
in safety initiatives. These committees can organize regular safety meetings,
safety walks, and safety audits to encourage employee participation, hazard
identification, and proactive safety observations.

3. Communication Channels:

 NAOC can adopt communication practices used by Chevron, such as

implementing a mobile application or online platform where employees can
 easily report safety concerns, near-miss incidents, and access safety
resources. This fosters timely and efficient communication while encouraging
employee engagement in the safety culture initiative.

4. Incident Reporting and Investigation:

 NAOC can establish a robust incident reporting and investigation process

similar to Shell's "Tell Shell" system, allowing employees to report incidents
anonymously. This encourages open reporting and enables the organization
to conduct thorough investigations to identify root causes and implement
effective corrective actions.

Phase 3: Continuous Improvement and Evaluation

1. Performance Measurement:

 NAOC can benchmark their safety culture performance against industry-

leading companies, such as ExxonMobil or Shell, using industry-specific
metrics like total recordable incident rates, near-miss reporting rates, and
employee engagement surveys. This allows NAOC to identify areas for
improvement and track progress over time.

2. Continuous Improvement Initiatives:

 NAOC can foster a culture of continuous improvement by adopting practices

from Chevron's "Step Change" program, where employees are encouraged to
contribute ideas for safety enhancements. Regular safety improvement
workshops and dedicated improvement projects can be initiated to address
identified gaps and implement innovative solutions.

3. Training and Development:

 NAOC can provide ongoing safety training and development opportunities,

similar to TotalEnergies, by organizing periodic workshops, refresher training
sessions, and toolbox talks. These activities ensure employees stay updated
with the latest safety practices and regulations, promoting a culture of
continuous learning.

4. External Benchmarking:

 NAOC can participate in industry forums and associations such as the

International Association of Oil & Gas Producers (IOGP) to share experiences
and learn from industry peers. Benchmarking against industry leaders like
 Chevron or ExxonMobil can provide valuable insights into successful safety
culture initiatives and facilitate the adoption of best practices.

5. Regular Reporting and Communication:

 Following the example of BP, NAOC can prepare regular safety culture
progress reports, highlighting key achievements, challenges, and future
plans. These reports can be shared with stakeholders, including senior
leadership, safety committees, and employees, to maintain transparency,
track progress, and garner support for the safety culture initiative.

By incorporating real-life examples from industry-leading companies, NAOC can develop a

detailed implementation plan that combines proven strategies, instructions, and procedures.
These examples serve as practical guidance, ensuring the successful application of the
LEAP initiative and promoting a sustainable positive safety culture within NAOC.

Cost

Investing in the successful implementation of the LEAP initiative comes with associated
costs. However, these costs are not just expenditures; they are strategic investments in
building a robust safety culture at NAOC. By allocating resources to various aspects of the
initiative, such as leadership training, employee engagement, communication channels, and
continuous improvement, NAOC sets the foundation for long-term safety excellence and
operational effectiveness. Let's explore how these investments translate into tangible
benefits and a safer work environment for everyone at NAOC.

Cost Breakdown for LEAP Implementation:

1. Safety Culture Steering Committee:

 Time Allocation: The committee members, who are salaried personnel, will dedicate a
portion of their working hours to plan, coordinate, and monitor the LEAP
implementation. Estimate an average of 10 hours per week per committee member
for a two-year period. Considering an average salary of $X per hour, calculate the
cost of their time allocation.

2. Safety Culture Assessment:

 External Consultant: Engage an external safety culture consultant to conduct the

assessment, analyze the data, and provide actionable insights and
recommendations. Estimate the cost based on the consultant's daily rate and the
 expected duration of the assessment. For example, if the consultant's daily rate is $X
and the assessment is estimated to take two weeks, calculate the cost accordingly.

3. Plan Development:

 Facilitators: Employ internal or external facilitators to lead workshops, meetings, and

training sessions during the plan development phase. Estimate their fees based on
the number of sessions and their daily or hourly rates. For instance, if an external
facilitator charges $X per hour and the plan development phase involves ten full-day
sessions, calculate the cost accordingly.

4. Leadership Training:

 Training Material: Develop or acquire training materials, including presentations,

handouts, and interactive exercises, to support leadership training. Estimate the cost
based on the complexity and quantity of the materials. Consider expenses such as
content creation, graphic design, and printing.

 Training Sessions: Allocate time for leadership training sessions conducted by

internal trainers or external experts. Estimate the cost based on the trainers' fees, the
number of sessions, and the duration of each session. Account for any travel,
accommodation, or equipment costs if external trainers are involved.

5. Employee Training:

 Training Material: Develop or acquire training materials tailored to different job roles
and safety topics. Estimate the cost based on the complexity and quantity of the
materials. Consider expenses such as content creation, graphic design, and printing.

 Training Sessions: Allocate time for employee training sessions conducted by internal
trainers or external experts. Estimate the cost based on the trainers' fees, the
number of sessions, and the duration of each session. Account for any travel,
accommodation, or equipment costs if external trainers are involved.

6. Communication Channels:

 Technology Infrastructure: Invest in technology infrastructure, such as mobile

applications, online platforms, and digital displays, to facilitate effective
communication. Estimate the cost based on the required software licenses,
development or customization efforts, hardware expenses, and ongoing maintenance
fees.

7. Continuous Improvement and Evaluation:

  Performance Measurement: Allocate resources to track and analyze safety
performance metrics, conduct surveys, and generate reports. Estimate the cost
based on the necessary software tools, data analysis expertise, and time allocation
for data collection and reporting. Consider any subscription fees or licensing costs for
analytics software.

 External Benchmarking: Budget for participation in industry forums, conferences, and

memberships in relevant associations to benchmark NAOC's safety culture against
industry leaders. Estimate the cost based on membership fees, event registration
fees, travel expenses, and accommodation costs.

8. Miscellaneous Expenses:

 Printing and Materials: Budget for printing safety materials, handouts, and
communication materials for distribution among employees. Consider expenses such
as printing services, paper, ink, and other necessary supplies.

 Recognition and Incentives: Allocate a portion of the budget for recognizing and
rewarding employees who actively participate in the safety culture initiative, propose
improvements, or demonstrate outstanding safety practices. Consider expenses for
certificates, awards, or small incentives.

By conducting a thorough cost breakdown, including detailed estimations and considering

various factors, NAOC can justify the cost of implementing the LEAP initiative. It is crucial to
review the budget periodically and adjust it as needed throughout the implementation
process to ensure the effective utilization of resources.

Conclusion

In conclusion, implementing the LEAP initiative at NAOC is a pivotal step toward establishing
a culture of safety that permeates every level of the organization. The comprehensive nature
of this initiative, coupled with its cost-effectiveness, makes it a compelling investment for
NAOC's top management.

By approving this proposal, top management at NAOC will:

1. Protect the Well-being of Employees: By prioritizing a safety culture, NAOC

demonstrates a genuine commitment to the health and safety of its workforce.
Investing in LEAP will empower employees with the knowledge, skills, and resources
needed to identify and mitigate potential hazards, fostering a safer work environment
for all.
 2. Safeguard Company Reputation: NAOC's reputation is built on a legacy of
excellence and responsible operations. Implementing LEAP will enhance the
company's safety record, reinforcing its commitment to operational integrity and
environmental stewardship. By proactively addressing safety concerns, NAOC can
bolster its reputation as a trusted industry leader.

3. Drive Operational Efficiency: Safety incidents can result in costly disruptions, project
delays, and increased insurance premiums. Through the LEAP initiative, NAOC will
reduce safety incidents, minimizing operational downtime and associated financial
losses. Moreover, a positive safety culture improves productivity, as employees work
more confidently and effectively in a secure environment.

4. Mitigate Legal and Financial Risks: Safety incidents can lead to litigation, regulatory
fines, and reputational damage. Implementing LEAP demonstrates NAOC's
commitment to compliance with safety regulations and industry best practices. By
investing in a comprehensive safety culture, NAOC can significantly reduce legal and
financial risks, protecting its bottom line and shareholder value.

5. Inspire Employee Engagement and Loyalty: A strong safety culture fosters employee
engagement, as it demonstrates that NAOC values the well-being of its workforce. By
encouraging employee participation, providing training opportunities, and recognizing
safety contributions, NAOC will cultivate a motivated and loyal workforce. Engaged
employees contribute to a positive work environment, increased productivity, and
long-term organizational success.

In light of these compelling benefits, I urge top management at NAOC to seize the
opportunity to implement LEAP. This investment will not only enhance safety performance
but also elevate NAOC's standing as a responsible and forward-thinking organization.

Make the bold decision to approve this proposal and embark on the journey to Leading
Everyone to Achieve a Positive Safety Culture. Together, we will forge a path of safety
excellence, operational efficiency, and sustainable growth for NAOC.

Thank you for your visionary leadership and unwavering commitment to the well-being of
NAOC and its employees.