Setting Up EHS&S Management Systems for Success

Strategies for Design, Implementation and Continuous Improvement

Environment, Health, Safety and Sustainability (EHS&S) Management Systems provide numerous benefits for an organization when done well.¹ Risk reduction, sustained regulatory compliance, a safe and healthy workplace, preservation of the planet, fostering a culture of excellence, enhanced reputation, continual improvement and improved competitiveness in the marketplace are some of the many potential benefits.   

This article provides real world insights on setting up EHS&S Management Systems for success based on our firsthand experience partnering with many clients as they seek to design, implement, assess and/or improve their systems. It focuses on strategic leadership and management approaches that contribute to successful EHS&S Management Systems. 

¹For purposes of this article, Environment, Health, Safety, and Sustainability (EHS&S) Management Systems is a general term that includes Environmental Management Systems, Occupational Health and Safety Management Systems, Sustainability Management Systems, or an integrated management system that combines two or three of these types of management systems.  

1. Define Success Early  

During the early stages of management system design and implementation, businesses and organizations may overlook the importance of and may fail to recognize the appropriate investment that is sufficient to conceptualize what successful EHS&S performance looks like. When the primary reason for a formal management system becomes “because our customer requires it” or any of the numerous other reasons that don’t recognize the material benefits that can be achieved, the opportunities for deep and meaningful improvements are often missed. Worse yet, EHS&S Management Systems can become an onerous burden to the business or organization instead of a useful tool; eliminating or minimizing the return on the initial investment.  

EHS&S Management Systems must be designed and implemented with the future outcomes they want to create in mind. They are essential tools for navigating a journey that begins with an honest assessment of the current state and a vision for the future state. This vision is frequently reshaped by internal and external changes and revised by expectations for improved performance based on multiple and sometimes contradictory priorities. 

Businesses and organizations do not achieve the perfect definition of success at the beginning of their EHS&S journey, as future risk assessments, setting goals and objectives, management reviews and other processes commonly built into effective management systems will lead to improved understanding of the definitions associated with success. However, spending time upfront to understand and create a vision of what and how EHS&S Management Systems can be used in relation to risk, compliance, continual improvement, competitiveness and current challenges nearly always pays dividends over time.  

2. Fully Understand the Organization’s Context 

We have seen businesses and organizations implement EHS&S Management Systems that have proven successful on the surface for another business or organization, without fully considering the unique differences and specific context of their own operations. This one-size-fits-all approach frequently results in suboptimal outcomes as demonstrated by the following examples:  

• A business or organization that did not recognize the need for intensive communication and coaching to improve an entrenched culture that resisted change and did not support the need for engagement and improvement.  
• Another business or organization adopted a complex management system designed for a heavily regulated, hazardous industry with high energy and pollution intensity. However, their own operations were in a less regulated, less hazardous and lower-pollution industry. As a result, the processes and procedures implemented were overly complex, inefficient and ultimately ineffective. 

These examples, as well as many others, underscore the importance of tailoring EHS&S Management Systems to align with the specific needs and operational context unique to each business or organization. Fortunately, tools commonly used in the business world—such as Political, Economic, Social, Technological, Legal and Environmental (PESTLE) analysis; Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis; and stakeholder mapping—can provide valuable insights into how unique context influences design, implementation and maintenance of the EHS&S Management Systems. These types of insights must be used to tailor EHS&S Management Systems to specific needs and challenges to ensure it is both effective and relevant. 

3. Both Leadership and Engagement Matter a Great Deal 

Leadership sets the tone for EHS&S success. Senior leaders that send the message through words and actions that “EHS&S improvement and excellence is what we do and not just how we comply” are critical to establishing a culture of employee empowerment and enablement, and considered a critical component for high levels of engagement when designing, implementing and maintaining the EHS&S Management System.  

Effective employee engagement requires a foundation of two-way communication and meaningful interaction between leadership and employees. However, some businesses or organizations fall short, relying primarily on one-way communication with minimal employee involvement or feedback. A few examples of how businesses or organizations tend to discourage meaningful engagement of its employees and contractors include: 

• Hazard identification, risk assessments and mitigation strategies that are developed with little to no input from frontline employees and engaged contractors, undermining their participation and ownership in the process. 
• Training programs that focus solely on informing employees and contractors of mandatory requirements often delivered in the shortest time possible, lack interactive elements, use the same presentations year over year and/or have outdated content. These shortcomings can limit employee engagement and reduce the overall impact of the training. 
• Accident and incident investigations that are poorly conducted by undervaluing or excluding employee and/or contractor input. This approach can lead to low motivation, apathy and detachment from EHS&S goals and objectives. 

Leaders and managers are often the experts at how work should be done, but frontline employees are experts at how work actually gets done. For this reason, building hazard identification, risk assessment, training, accident/incident investigations, and other key EHS&S processes that establish effective, two-way communication between these two groups is essential for success.     

Employee engagement is at the heart of any successful EHS&S system. While not the only contributors to building effective employee engagement, visible commitment to EHS&S by senior leadership in both words and actions, and effective two-way communication and interaction between leadership and frontline employees are the cornerstones for an effective EHS&S management system. 

4. Commit by Making the Required Investments

Success requires thoughtful investment in several key areas: 

Resource Allocation  

Adequate resources are essential for implementing EHS&S Management Systems. However, businesses and organizations often operate with limited resources and rarely secure additional personnel, consultants, technology investments, capital funding, or other resources without recognizing the potential outcomes of an ineffective EHS&S management system.  

When there is a need to secure EHS&S resources for the design, development and implementation of the EHS&S Management System, consider the following key suggestions: 

• The business case should be informed by comprehensive risk management processes that include risk identification, realistic assessment of operational and financial risks and mitigation strategies tailored to unique EHS&S aspects and hazards.  
• Any financial analysis should include both direct costs and/or benefits (e.g., workers’ compensation, property damage, operational efficiency, waste disposal and pollution control devices) and indirect costs and/or benefits (e.g., employee replacement costs, business interruptions, production downtime, supervisory efforts, equipment repair or replacement, future cleanup costs and external environmental costs) over both short- and long-term timelines.  
• Where feasible, the business case should be data-driven, leveraging historical data, industry benchmarks, and case studies to quantify financial costs and benefits, as well as non-financial disadvantages and benefits.  
• In terms of labor resources, the business case should seek to achieve an optimal mix of internal personnel, external resources and the use of digital tools to maximize efficiency and effectiveness during the design, development and implementation of the EHS&S Management System. 
• The business case should clearly demonstrate how the proposed EHS&S management system investment aligns with broader objectives, such as ensuring a safe workplace, enhancing profitability, achieving and maintaining compliance, and/or advancing sustainability goals.   

Subject Matter Expertise

The involvement of qualified subject matter experts (SMEs) is vital to driving informed and efficient decision-making outcomes, advocating for EHS&S initiatives and fostering a robust organizational culture that supports EH&S performance towards the established goals and objectives. 

Businesses or organizations must identify required areas of expertise needed for the design, development and implementation of the EHS&S Management System. In addition, it is necessary to assess the internal capabilities to support this work and identify any gaps between these two resources. Technical and regulatory complexity, risk severity and likelihood, and areas requiring cross-functional collaboration should inform this assessment. Based on the findings, businesses or organizations can determine whether to source the needed SMEs internally, externally, or through a combination of both — either on a long-term basis or temporarily as needed while investing in the development of internal skills. 

EHS&S Policy 

Well-crafted EHS&S policies clearly communicate a commitment to EHS&S performance by setting clear direction and establishing expectations and enabling individuals to act in accordance with the established EHS&S goals and objectives. Moreover, they should be developed based upon the unique context and stakeholder expectations and need to be updated when impactful changes to either of these key considerations occur. Lastly, the business or organization must validate its policy(ies) through its use that inform decisions and guide actions related to EHS&S performance. Examples of such use should be widely communicated to inform employees and stakeholders of the commitments according to the tenants contained in the policy.   

Goals and Objectives Based on SMART Targets 

Establishing goals and objectives is a fundamental component of how a business or organization defines and measures its EHS&S performance. EHS&S goals should be informed by the needs and expectations of internal and external stakeholders, health and safety risk assessments, significant environmental aspects, compliance obligations, workplace inspections and incident investigations. Key strategies for setting EHS&S goals and objectives include: 

• Clearly defining each goal or objective and confirming they align with the mission, values, EHS&S policy(ies), and relevant needs and expectations of interested parties.  
• Establishing SMART Targets (Specific, Measurable, Achievable, Relevant, and Time-bound). 
• Implementing the processes needed to collect accurate and timely data for measuring progress toward SMART Targets. 
• Periodic review of the progress made to achieve the EHS&S goals and objectives and implementing corrective actions where necessary to get back on track.  

Training

Adequate investment in training is vital for effective EHS&S Management Systems. We’ve built an extensive list of training suggestions and offer a few initial recommendations as follows: 

• Training should include interactive activities such as group discussions, practical simulations, role-playing, gamification techniques, relatable stories, use of virtual reality, and/or guest speakers. These activities and on-the-job training sessions should focus on connecting theory to practice; helping employees and management to visualize the EHS&S Management System.  
• Visual aids should be designed to enhance comprehension. 
• Training should be periodically updated to keep content current, relative and interesting.  
• Consistent, repeated messaging outside the formal training program should be used to reinforce learning objectives and promote familiarity; various ways can be employed to achieve this outcome. 
• When inspections or audits identify a corrective action that includes re-training, ask why the original training was not effective and make improvements based upon the answer.  

Digital Tools

Digital tools can enhance efficiency by streamlining data collection, reporting and analysis. They can provide real-time monitoring, centralized data management, and insights into EHS&S risks, helping businesses and organizations make informed decisions and improve performance. Evaluate how digital tools and technologies can be deployed to enhance the effectiveness of the EHS&S Management System.

5. Hold the Organization Accountable 

Implementing EHS&S Management Systems often involves significant change, which can lead to anxiety, discouragement, or frustration with employees and contractors as the gap between the goal and current reality becomes more fully understood. This is especially true during the « valley of despair » phase described by Dunning-Krueger,² and where the business or organization, or at least certain individuals, initially underestimated the challenges associated with design, implementation and/or maintenance of the EHS&S Management System, or were perhaps where they were overconfident regarding their abilities to affect the required changes. Effective leadership is needed at times like these to find effective solution to resolve the frustration and tension without compromising the stated goals and objectives. Here are some strategies to help navigate this phase: 

• Avoid Rationalization: Resist rationalizing poor results, adopting self-limiting beliefs, or rejecting expert advice in favor of personal opinions and expediency. Be mindful that each of us has our biases and seek to understand how those biases are impacting opinions and decisions.   
• Engage Stakeholders: Involve stakeholders at all levels to conduct honest, objective, and timely assessments of current challenges and identify solutions. Stay focused to identify how challenges are best addressed as a means to relieve the negative emotional tension that may exist. Identify root causes of the problems encountered without assigning blame to an individual(s). 
• Communicate Importance: Emphasize the value of EHS&S to the business or organization, its employees, and other stakeholders. Remind everyone why EHS&S matters to them personally and collectively to achieve the stated goals and objectives.  
• Adopt a Learning Mindset: Treat challenges as “opportunities” to learn and grow on the EHS&S Management System journey. Seek honest feedback; truth and reality are necessary for effectiveness. Remember that progress rarely follows a linear path. 
• Promote Ethical Behavior: Encourage ethical actions and decision-making throughout the process. 
• Reflect Regularly: Remember the EHS&S journey concept introduced earlier in the article? Regularly set aside time—daily, weekly, or monthly—to review progress, identify and understand the setbacks, and the impact of recent changes on achieving the EHS&S goals and objectives. 
• Build Confidence Gradually: Include achievable action items early in the process and celebrate successes to build momentum and motivation. With consistent learning and practice, the business or organization can move from a state of anxiety or overwhelming stress to a realistic understanding of its capabilities and accomplishments.  

²The Dunning–Kruger effect is a cognitive bias that describes the systematic tendency of people with low ability in a specific area to give overly positive assessments of this ability. It was first described by the psychologists David Dunning and Justin Kruger in 1999.