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What About HSSE? – Why Early Inclusion of HSSE Into Enterprise Resource Planning Efforts Makes Sense

Recorded On: 03/31/2015

Ideally, enterprise resource planning (ERP) efforts would include health, safety, security and environment (HSSE) in scope. So why don't they?

There are several, interrelated reasons which stem from a wider lack of integration between corporate finance and HSSE teams. It is easy for finance, often the champions of an ERP effort, to see ERP as only an accounting and finance effort. Braver finance teams may extend this to supply chain and human resources. Braver yet are the finance teams that include operational maintenance. However, even the bravest of finance teams may look at HSSE and conclude, “Yes, we know it is important, but we will get to that later." Unfortunately, this approach leaves shareholder value on the table in several ways. First, it prevents quick process improvements that enable the company to function faster while remaining safe, compliant and reliable. Second, it drives rework as teams modify newly created ERP accounts and hierarchies to accommodate the management and reporting of HSSE information. Third, it fails to capture opportunities to develop improved collaboration between operations, supply chain, accounting and human resources. Forth, it fails to leverage ERP to increase compliance and reduce operational risks. Finally, it misses the opportunity to further integrate HSSE into the basic inner workings of the enterprise, reinforcing that good HSSE practices are an integral part of good business processes. This value loss is not individual, but is a cumulative result from not including HSSE from Day One. The solution is to ensure that HSSE is part of the ERP planning effort, shape the business case for its inclusion, and identify ways to best integrate HSSE into the effort.

The presentation will show why HSSE should be included in ERP efforts, discuss the value consequences of not including HSSE, and suggestions on how to make the business case for why HSSE should be included in scope from Day One.

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Jeff Morgheim

Founder/Principal, Edge Consulting

Jeff enables clients to harness uncertainty to identify and grow sources of strategic value. He is an experienced financial executive with nearly 25 years of execution and implementation in the oil and gas industry at both BP and Chesapeake. While much of his career has focused on strategic and planning roles at BP across the globe, he has served twice as BP's climate change director. He also served the BP executive team during the Macondo oil spill in 2010 and supported the restoration efforts and regulatory strategy from 2010-2012. While at Chesapeake, Jeff led several transformation efforts in strategic and business planning, as well as performance management. His last role involved the formation and launching of a multi-year, SAP-based enterprise resource planning program involving 400 employees, consultants and contractors. He is a graduate of The Johns Hopkins University with degrees in both Economics and Russian Language.

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Web Event
03/31/2015 at 9:30 AM (EDT)   |  90 minutes
03/31/2015 at 9:30 AM (EDT)   |  90 minutes Scheduled for 90 minutes.