Integrated Management Systems
meet policy and regulation demands
By Brad Kamph, President, Interliance Consulting, Inc.
ECONOMICS, technology, and gov- ernment policy are transforming the energy feld and challenging
the business-as-usual approach to company governance. The rise of “can’t
fail” functions—safety, environmental
management, regulatory compliance,
system integrity, and others—are now
forcing pipeline, gas, and power utility
companies to consistently deliver high-level performance in all aspects of their
The stakes are high, and the umpires—energy regulators, legislators,
watchdog groups, and the general public—are watching. The umpires are
looking for guidelines that show a company runs its everyday operations with
the best interests of employees, the public and the environment in mind.
It’s a must-win match.
How are companies playing to win?
Companies can efficiently comply
with policies and regulations through
implementing an integrated management system (IMS)—a method for assuring that everyone works together in
the most effective manner possible. An
IMS is accomplished by re-engineering
business functions and processes so every employee—from CEO to feld technician—understands and executes the
The bottom line: Companies using
A beginning with the end in mind
an IMS can more easily adhere to regu-
lations, perform well in audits and save
money by implementing operational
Implementing an IMS begins with the
evaluation of a single area or an entire
company. Either way, the frst assessment is of the current management system’s effectiveness.
Starting at the highest level of the
company, a well-designed management
system incorporates the priorities and
objectives of the organization into everyday activities in a manner that is logical, measurable, and self-reinforcing.
Authority is aligned with responsibility,
so each employee knows what to do and
has the tools to do it. Targets are established that are tied to measurable outcomes. An objective process is put in
place to determine progress and identify gaps. There is also a built-in mechanism to correct problems and improve
performance over time.
Interliance client Wild Well Control,
million per year in underwriting costs
the world’s No. 1 oil and gas well emer-
gency response company, implement-
ed a safety management system that
lowered its underwriting costs and re-
duced its equipment and personnel loss-
es to zero. Casey Davis, Wild Well Con-
trol’s vice president of Health, Safety and
Environment, says, “It’s very unusual to
have a safety management system that
is compliant to multiple regulatory re-
gimes and is also an effective manage-
ment tool. That’s how thorough our
management system is. We save over $2
and operating expenses.”
A results-oriented management system
Along with energy-sector companies,
Interliance has also helped utility com-
panies to create an IMS. One in particu-
lar also included implementing custom-
ized training and knowledge transfer.
With 17,000 employees, First-
Energy is one of the nation’s largest