While studying Lean principles in engineering, I learned there are two instances in which most process improvements are implemented. The first is when things are not going well, and there is a need for improvement to avoid negative consequences. The second is when things are going well, but there is a desire to do better.
As a pioneer of innovation, it's crucial to determine which scenario will yield the greatest return on investment. Many people think that improving a poorly performing situation is the best choice. But is that always true?
A mentor of mine put it in helpful terms: “Would you rather be the manager of a successful sports team, where you only need to improve one or two things each season to make it even better, or take over a struggling team and have to change everything about its culture and performance?”
Often, organizations can overlook the power of enhancing what is already performing well, assuming that focusing solely on improvements during times of struggle will bring faster results. However, innovation and efficiency gains in well-performing teams can lead to exponential growth and sustainable improvement, benefiting the organization and its employees.
Most organizations maintain a satisfactory safety record and solid paper-based pre-work planning and assessment process. They typically complete their projects on time, and most employees return home safely. However, the critical question is: Is this the best your company can achieve? While you have mastered the basics, how can you embrace innovation to elevate your company's performance to the next level?
Organizations often sideline innovation when they perform well enough to meet basic expectations. However, the true opportunity for growth lies in leveraging new technologies and methods that will move companies from a place of good performance to exceptional performance.
In an age where every company prominently features workplace safety on its website and marketing materials, many organizations proudly showcase their impressive safety records. However, these records often come at a substantial cost. I challenge Operations and Safety leaders with this thought: the best time to innovate safety measures is not during times of failure but when you are performing at your peak.
The risk of becoming complacent with existing safety records is that it can lead to missed opportunities for improvement. By fostering a mindset of continuous improvement, leaders can maintain and also elevate their safety standards, reducing hidden costs that come with outdated practices.
This article looks at the hidden costs of keeping safety records. It shows how smart solutions like FYLD can reduce these costs. At the same time, they can improve safety and make operations more efficient.
Maintaining an excellent safety record is undoubtedly advantageous but comes with challenges. One of the significant burdens for a business is the administrative overhead. Safety professionals often dedicate significant time to non-value-adding tasks, such as collecting completed forms from the site, following up on permits, and deciphering poorly written or illegible paperwork.
While one could argue that a safety professional’s job is to complete the above tasks, the time spent gathering and organizing the information is often wasted and does not play to their strengths. This inefficiency is exacerbated by the lack of insights provided by disorganized paper systems or digital forms, which hampers efforts to improve.
What is less contentious is the waste baked into the workday of operations staff, from field workers to supervisors. These staff members spend time completing administrative tasks ranging from incorrectly filled H&S assessments to waiting for permits to be approved or for a supervisor to travel to the site to make decisions that could be resolved remotely. McKinsey reports that operations workers waste 40% of their day. This shows that even in safe organizations, there is much room for improvement.
The reliance on paper-based systems consumes valuable time and creates inefficiencies that impact the accuracy and timeliness of safety reporting. Digital solutions can bridge these gaps by providing real-time updates, ensuring that all parties have access to the most up-to-date information.
Furthermore, while many companies take pride in their safety records, they often overlook that sustaining these records over time requires constant management, oversight, and adjustments to ensure compliance and the safety of all personnel. This ongoing management consumes resources better allocated to implementing proactive safety measures or innovation.
Innovations in digital technology offer new opportunities to improve business processes, increase compliance, and lower costs. FYLD is an AI-powered platform that enhances traditional work processes through real-time data analysis, predictive analytics, and streamlined communication channels. These tools not only reduce the time spent on administrative tasks but also minimize downtime by:
Automating routine forms and compliance documentation reduces manual hours and errors.
Using AI and machine learning to predict potential hazard zones and dynamically update safety protocols, thereby minimizing the risk of accidents and ensuring more precise allocation of resources.
These innovations streamline operations and foster a culture of proactive safety management, reducing the risk of accidents before they happen. With FYLD’s real-time capabilities, safety teams are empowered to take immediate action based on predictive data, addressing potential hazards before they escalate into costly incidents.
In addition to operational efficiency, integrating AI-driven tools can optimize resource allocation. By automating repetitive tasks and providing actionable insights, companies can better deploy their personnel, ensuring they are focused on high-priority tasks rather than spending valuable time on administrative functions.
Consider Ferrovial as an example. In the U.S., Ferrovial implemented FYLD in their operations. After activating FYLD’s platform, the company noted a 75% reduction in time spent on safety protocol compliance and a 73% improvement compared to the construction industry incident rate within the first year. This case study emphasizes the effectiveness of FYLD and showcases how proactive innovation can lead to significant cost savings and enhanced safety improvements.
By embracing FYLD’s AI-powered platform, Ferrovial was able to unlock efficiencies that had previously been out of reach. With the automation of safety protocols and improved hazard predictions, the company not only reduced its operational costs but also saw a significant improvement in its safety record, setting a new standard in the industry.
Maintaining high safety standards is crucial but often comes with significant costs. However, as Ferrovial demonstrated, thoughtful innovation can greatly reduce these costs. By leveraging advanced technologies like FYLD, companies can streamline operations, lower overhead, and continue to improve safety protocols. Now is the ideal time for industry leaders to embrace smarter technologies that elevate safety standards while managing costs more effectively.
The key takeaway is that innovation should not be reserved for times of failure but rather seen as an ongoing strategy for maintaining and elevating performance. By proactively adopting advanced technologies, businesses can prevent stagnation and continue pushing the safety and operational efficiency envelope.
I invite my peers to share their experiences with innovation in operations. What strategies have you found effective in balancing cost and safety? How are you leveraging technology to foster safer work environments? Let’s collaborate and lead our industries toward more innovative, safer, cost-effective operational practices.
If you're interested in learning more about how FYLD can transform your operations and improve safety, book a demo today.