1. Culture Change Is It Eating Your Strategy?

2. Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. Culture Change Is it Eating Your Strategy? November 1, 2011 Rosanne Danner North America Regional President, DuPont Sustainable Solutions Carol A. Palmiotto Global SHE, Sustainability and Product Stewardship Manager, DuPont

3. 3 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. Safety Contact Source: Richard Perry, New York Times, January 17,2010 Phones aren't just distracting drivers; they make pedestrians inattentive too.

4. 4 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. Agenda Overview Why is Culture Important Culture – What you do when no one is looking How to Begin to Change your Culture and what it can mean Open Sharing Time

5. 5 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. Agenda Overview Why is Culture Important Culture – What you do when no one is looking How to Begin to Change your Culture and what it can mean Open Sharing Time

6. 6 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. Why is culture important? Just Ask NASA: What causes management to “not listen” to 8 specific requests for pictures? What causes management to disregard launch temperatures?

7. 7 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. Why is culture important? Just Ask Oil & Gas Offshore: Why do fires continue to occur on offshore platforms? Why do major losses of containment occur? What causes management to forget the “lessons of the past?”

8. 8 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. Why is culture important? Just Ask the White Star Line: Why did so many lose their lives on the Titanic? Why did the Titanic not have enough life boats? What causes management to not pay attention and to not invest in safety?

9. 9 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. Knowing your Organizational Culture is critical when implementing your solutions whether business or safety! What is YOUR safety culture? From Dilbert, March 26, 2006, © Scott Adams

10. 10 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. Definition of Culture Useem, J., & Useem, R. (1963). Human Organizations, 22(3). Culture has been defined in a number of ways, but most simply, as the learned and shared behavior of a community of interacting human beings" (p. 169). Culture is the assembly of characteristics and attitudes, in organizations and individuals which drives the behaviors of the team during the different environment and circumstances it encounters… Shared values and beliefs The positive behaviors as defined by the culture are often rewarded.

11. 11 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. So what is a strong Safety Culture? The USA Nuclear Regulatory Commission defined a good safety culture as: “A good safety culture in a nuclear installation is a reflection of the values, which are shared throughout all levels of the organization and which are based on the belief that safety is important and is everyone's responsibility.”

12. 12 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. DuPont’s Model of a Journey to a Strong Safety Culture

13. 13 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. As a leader for Safety it is critical to understand the culture of your organization! Is the team aligned on the organizational values, mission and goals? Execution opposite those values are key!

14. 14 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. Overview Why is Culture Important Culture – What you do when no one is looking How to Begin to Change your Culture and what it can mean Open Sharing Time Agenda

15. 15 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. Cultural Reality in the Workplace today What is called out as Core to your operations? Core competency or core value to live by? What is accepted by site and business leadership? Housekeeping Short-cuts What is the message delivered by site and business leadership? Tone at the top What are the behaviors that site and local business leadership exhibit? What is rewarded? Is operating discipline important? What is considered extra time and resources?

16. 16 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. How else can we measure the Operating culture? Does the organization set lofty aspiring goals … like “The Goal is Zero,” or does it set attainable targets and is therefore willing to accept some injuries or incidents? So which injury or incident is acceptable and how do you control that? Does the organization measure and discuss near misses? So as to learn from them and correct potential hazards and unsafe acts or conditions Is the organization open and communicating? Not punitive for sharing However recognizing that malicious intent will not be permitted

17. 17 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. Leadership is Responsible and Accountable Leadership sets the tone and the environment Setting high standards for what is acceptable Leadership encourages and engages all employees in dialogue In reviews, audits and walk-abouts Provides employees with the option to stop unsafe work or conditions. Leadership supports immediate correction of situations that are dangerous or likely to cause harm to employees. Leadership supports training and awareness for all

18. 18 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. What about Acquisitions, Mergers, Joint Ventures and other alliances? Understand and respect their culture Conduct an analysis / assessment Develop an actionable integration plan with them. Engagement is essential! Set expectations early Develop contracts or MOU’s that spell out the “what”s Discuss the “how”s in getting support or resources Ensure their leadership understands, embraces and engages in the new expectations Provide training and awareness Mentor /Buddy system – Plant or unit manager and SHE manager Make sure it is understood that this is a TOGETHER Journey!

19. 19 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. Acquisition Experience Understanding during Due Diligence what their culture is Pre-Day 1 Understand their capacity to make the changes? Willingness versus capability Can they learn Do they historically resist change Find the change agents in their organization early!

20. 20 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. Overview Why is Culture Important Culture – What you do when no one is looking How to Begin to Change your Culture and what it can mean Open Sharing Time Agenda

21. 21 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. So let’s look at how we get and sustain the needed culture in your organization

22. 22 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. 2 4 6 8 4060 80 100 0 Total Recordable Rate* 2010 BLS Industry Average Relative Culture Strength Average of Survey Respondents in Industry Reactive Dependent Independent Interdependent Benchmark Best Understanding where you are is critical

23. 23 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. A culture develops one individual at a time

24. 24 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. And organizational culture looks at both individual and the collective – taking into account all aspects of both

25. 25 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. Organizational transformation must include changes in process, actions and procedures AND individual competencies

26. 26 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. If done correctly it can move an organization’s culture External Motivation COMPLIANCE Internal Motivation COMMITMENT “I follow the rules because I want to”“I follow the rules because I have to” Felt Leadership, Role Modeling, Influencing ►► Engagement Rules, Procedures, Protocols

27. 27 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. And result in: The 4 Cs Confidence in self & the safety system Competence own skills, knowledge & attitudes Care own values, beliefs, mindset of Concern Sustained Culture where the goal is zero

28. 28 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. You also have an integrated system in place – whether applied to safety or business strategy Process People Structure Leadership

29. 29 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. And you have aligned the individuals “Align what I think with what I do and with what others around me think and do”

30. 30 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. In our experience, clients who have improved culture receive significant benefits Significant shift in safety culture within 2-3 years Significant reduction in injuries in less than 3 years, sustainable continuous improvement going forward Lower costs Faster transition to new systems and assistance to alleviate and balance workload concerns Improved overall safety performance (safety pyramid) Improvement in other Business parameters, such as reliability Examples – Six companies (Industries) below:

31. 31 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. Conclusion Understanding the culture of your organization is critical before designing any strategy for change. Having leadership aligned with your strategy is critical. Culture develops one individual at a time. To move or improve culture you must work on both the organization and the individual. Improving the culture results in business performance.

32. 32 November 1, 2011 Is Your Culture Eating your Strategy Copyright © 2011, E. I. du Pont de Nemours and Company. All rights reserved. The DuPont logo, DuPont™ and The miracles of science™ are registered trademarks of DuPont. Questions?