In a cost constrained world, the efficiency and effectiveness of the HSE function is increasingly being challenged by executives who are looking for better HSE and operational performance and risk management at reduced cost typically by means of reduced headcount, fewer and simpler integrated processes and greater ownership within operations.

This paper presents a risk-informed methodology for HSE rationalization developed during companywide cost cutting programs undertaken in multinational oil & gas and extractive companies between 2012 and 2016.

A three stage methodology is described comprising a discovery phase to determine the ‘as-is’ organisational arrangements, followed by a co-design stage to generate a fit for purpose operating model and culminating in an implementation phase which as well as reducing headcount incorporates a ‘Stop-Prioritize-Simplify’ approach to the rationalization of HSE processes and services. The methodology comprises a combination of organisational and change management methodologies with commercial and technical analysis.

This approach to HSE rationalisation delivered a wide range of benefits as well as lessons learned both during the process and subsequently. These are described and discussed.

Whilst we are able to present the methodology due to the highly confidential nature of this work we can only provide selected examples of the models used and the outputs generated.

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