Safety Executives of New York 60 th Annual Professional Development Conference Dennis P. Falvey

1. Safety Executives of New York 60th Annual Professional Development Conference Dennis P. Falvey Vice President Safety & Loss Control Turner Construction Company

2. What Ever Can Go Wrong, Will

3. Never Make Predictions Especially About the Future “The wireless music box has no imaginable commercial value. Who would pay for a message sent to nobody in particular?” David Sarnoff’s associates in response to his pushing for investment in radio in the 1920’s

4. Never Make Predictions Especially About the Future “This ‘telephone’ has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us.” Western Union Internal Memo 1878

5. Never Make Predictions Especially About the Future “There is no reason anyone would want a computer in their home.” Ken Olson founder and chairman Digital Equipment 1977

6. Never Make Predictions Especially About the Future “Everything that can be invented has been invented.” Charles H. Duell U.S. Commissioner of Patents 1899

7. Industry Leaders Don’t Wait for the Future to Define Them They Set the Standards That Define the Future

8. Turner Is a Construction Company

9. You’re Not in the Business You Think You Are We are all Risk Managers

10. Core Values Highest Ethical Standards INTEGRITY People Oriented TEAMWORK Client Focused COMMITMENT “We are awarded most of our work based on reputation. This is the foundation of our company.”

11. Success? • Where do You want to Be? • Does Everyone Understand it? • What does Success Look Like? Organizational Alignment is Critical to Success at Turner

12. Turner’s Alignment • A Common Safety Vision Statement Developed and Communicated • A Four-Year Strategic Plan • Annual Milestones • Construction Industry Institute (CII) “Best in Class” Metrics Must Define Your Own Path to Success

13. Path to Success A Clear Vision and Purpose • Guiding Principles • Elevate the Topic • Simplify the Work • Build Capability at Every Level of the Organization • Execute Everywhere, Everyday • Keep Score Publicly to Win Develop a Culture within Turner that Promotes an Injury-Free Environment and Provides the Safest Workplace Possible for Our Employees, Contractors, Clients and the Communities in Which We Work

14. Path to Success Turner Performance vs. The Construction Industry Lost Workday Incident Rate Recordable Incident Rate 6.8 Construction Industry Average 2.6 Construction Industry Average 1.0 CII Average 0.2 CII Average 2003 2004 2003 2004 Is Your Senior Management Committed?

15. Path to Success Senior Management Commitment • CEO & President Driving the Vision of an Injury Free Environment • Start Every Meeting with Safety • Management Incentive Pay Linked to Safety Performance • 30% Of Local Units’ Bonus Pool • Business Units Develop Specific Annual Plans • Business Unit Specific Metric Goals • Integrated Loss Control and Safety Organization Commitment Letter Senior Team’s Commitment Elevates the Topic

16. Path to Success Integrated Approach to Success with Operations and Claims • National CSO Meets Monthly and Expectation for Implementation of BU CSOs Incorporated Into 2005 Annual Plans • CSO Alert System to Communicate Serious Incidents and Lessons Learned • Fall Protection Action Plan Rolled-Out Jointly With Operations • 24 Hour Senior Management Conference Calls for Any Fall • Project Staff Fall Prevention System Inspections • Formal Submission of Fall Prevention Engineered Plans Success Requires Organizations To Differentiate Themselves

17. Path to Success Differentiators – Safety Resources • Corporate Safety Function Expanded to Include 5 Regional Directors • Over 130 Years of Safety & Loss Control Experience • Have Led Safety Programs at Major Construction Companies • Turner Safety Staff 160 Strong • 40% Bi-Lingual in Hispanic Dominant States • Global Staffing Strategy Prepared for 2005

18. Path to Success Differentiators – Project Safety Standards • Uniform 6 Foot Fall Protection • Zero Tolerance Policy Enforced Everywhere, Everyday • Training Available for Turner and Subcontractors • Subcontractor Pre-Qualification • EMR Must Be = or < 1.0 • Remedial Plans Developed to Support Subcontractor

19. Path to Success Differentiators – Project Safety Standards • Drug and Alcohol Program In-Place for Turner and Subcontractors • Includes Pre-employment, Random, Reasonable Cause and Post-Incident • Over 42,000 Tests Completed YTD with 1,200 Positives • On-Site Medical Support • Currently Medical Trailers On-Site at 18 Projects • Great Moral Booster with Subcontractors and Unions

20. Path to Success Differentiators – Project Safety Standards • Aggressive Pre-Planning Approach to Managing Risk • Job Hazard Analysis • Pre-Task Meeting Held For All Critical Tasks • Disciplinary Program in Place for Subcontractor Non-Compliance to Turner Policies • Mandatory Fines for Safety Violations • Money Re-Invested in Safety Program

21. Path to Success Differentiators – Building Capability At All Levels • Turner Knowledge Network Leveraged to House Training • OSHA 30 Hour for Turner & Subcontractors • Just-In-Time Training Developed in Response to Top Six Frequency Drivers • A New Incident Investigation Program Delivered • Corporate Safety Orientation • Trade Specific Training Modules Under Development Procedures and Policies are NOT the Final Step in Safety Excellence

22. Final Step • 80% of Injuries have been Eliminated with Current Safety Practices • (e.g. Safety Audits, Existing Safety Programs, Safety Equipment, Mandatory Training, etc.) • This has involved a Low Percentage of the Workforce to Accomplish • The Elimination of the Remaining 20% CANNOT be Achieved by Enhancing Existing Safety Programs, Tools, etc.

23. Changing Behaviors • In Order to Eliminate the Remaining 20% of Injuries, It will take a Personal Commitment to Change Your Behavior with Respect to Safety • This requires the Involvement and Commitment of 100% of the Organization • This also requires Employing New Methods of Preventing Injuries

24. How Do We Get There? • We Must Choose to be Safe for Ourselves, Our Families and Our Fellow Workers, because We Believe it is the Right Thing To Do, not because Someone Told Us to do it! SAFETY MUST BE A VALUE! NOT a PRIORITY!

25. How Do We Get There? • Continue to Drive Leadership Alignment Throughout the Organization • Empowering the Workforce to Make Safety Decisions • Move Beyond Compliance and CHOOSE to Work Safely Drive “Building L.I.F.E.” (Living Injury Free Everyday) Culture Throughout Turner

26. Ultimate Success…. • Bring the Vision to Life at Turner • Develop a Culture Within Turner That Promotes an Injury-Free Environment and Provides the Safest Workplace Possible for Our Employees, Contractors, Clients and the Communities in Which We Work • Send Everyone Home at the End of the Day, Everywhere, Everyday