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1/27/2013

It is the Process; international permits


I just had the obvious articulated to me on why the developed and undeveloped countries have such a hard time working together.  Why we who have been indoctrinated in the step by step written process world of the developed countries are so frustrated when we go to the undeveloped countries. It is simply the "Process".

The developed world is based on a system of processes for everything.  That is why when we leave our job the world does not come to an end.  The next person is able to take over where we left off, so that no matter how important we think we are the company keeps moving forward without skipping a beat.  A lot of people will not accept this reality, but it is true.  In one sense it makes us simple clogs in the system, moving along as part of the process.







Our developed world process gives us a sense of security.  We know that the bus will be at a certain point at a certain time everyday, the price of water is equal for me and my neighbor, the purchase of a home is based on regulations (no matter how loose the regulations maybe at the time), that our agreed to paycheck will be paid on x day of every month, and the rules apply to everyone equally.  In the USA we pride ourselves on being a country of laws.  The laws that generate processes to protect the individual, while being good for the group.




In general a small business can compete against a large corporation.  Lower overhead, streamlined processes, etc makes doing business with the small company much more enjoyable than the large cumbersome corporation with all their processes.  But in the end the process of the competition itself is what makes the playing field more or less equal.  We (USA) are more angry with 'set aside quotas,' 'special interests', 'special circumstances', than with the actual competition for the project or job.  Why, because these special items with their added bonus points is not process driven--favoritism

How does this translate to doing business in a undeveloped (under-developed country)?

These countries rely on individual judgement to manage their day to day lives within government.  Even in the democratically elected governments.  The individual manager makes a decision based on the person standing in front of him at the time, which takes into account relationship, and how risky the decision maybe for his career.

These managers build the process for the operation of their offices from scratch, and like most small businesses the process revolves around the one person.  It should make for quicker decision making not be tied up with the normal red tape found in government, but in actuality it makes it more difficult.  Why?

A process requires that decisions be made at each step of the process.  It is either yes or no, based on meeting specific criteria that is documented (most ofter).  There is little subjective decision making in the process.  You either have the spill plan or you don't.  The Spill plan is certified or it is not.  Simple as that.

But when the process requires a manager to make the decision that manager's career is based on making the right decision.  Without a approved process to protect him he can't just say a certified spill plan is acceptable.  He has to have a strong comfort level that the person who is presenting it is credible, and does this plan really meet a level of requirements which he has no clue about.

Now for a manager to get to the point of making decision assumes that the gate keepers in front of him allowed the issue to get to him in the first place.  This is a whole other set of decision makers, which more often than not resemble typical government employees that rather have no decisions to be made all day long.  But if the person standing in from of the first worker is a friend, or family member this person gets taken up the chain.  The decisions are easier to make, which doesn't seem fair in our world, but it is no different than a woman owned, veteran owed, whatever getting in front of the line.  This is a broken process.

We as environmental professionals base our work on process.  Cleanup process, environmental management system, ISO14001, procurement, environmental assessment, on and on.  Each is a process that have multiple processes within the big process.

Recently I obtained the first ever Used Oil Authorization/Permit from a government agency in one of these undeveloped countries.  The agency had never issued this permit before, yet used oil is transported, stored, and shipped all the time.  In fact the US government in that country uses the services of companies that have no government authorization.






In order to obtain the authorization I, being from a developed country and trained in process, completed all the typically necessary plans and procedures used to obtain a Used Oil transport/handling/storage/processing permit.  I expected to be asked for this documentation.  It took nearly two months to be obtained, and had to be signed by the Minister.  The documents were not reviewed, only asked if we had them.  It was more a matter of coordinating with another high level government official who is working with us.

Could we have operated without this authorization?  Yes, sure of course--no one else has taken the time to get one.  But with the authorization we have set the precedent.  Now the next time the US government wants to ship used oil they HAVE to make sure the company they use have a permit to do it.

I have now deviated from my topic, so back on track.

A lot of international companies operate their businesses without permits that we are familiar with in our normal world.  There are a lot of projects never get past the discussion phase.  It is assumed that it is because of issues of 'bribery', or what I have seen many times 'inability to communicate'.

Bribery is what a lot of companies assume is needed to move a process a long, not knowing that the slow system is not meant to extract a bribe, it is just the way things are done.  

The 'inability to communicate' issue raises its head when nothing seems to be getting done fast enough.  In these worlds the pace is slow and generally non-confrontational.  So when we ask for something it appears to be 'demanding' and aggressive so the response to us is "yes, you are right."  This translates to "impatient man is hiding something, I better slow it down".  

There is a method to doing the right thing, and getting through the system.  If you haven't figured it out yet from what I have written, contact me.  I am happy to help out.

1/23/2013

Environmental Compliance_International: Captialism, Energy, and Sustainability

Environmental Compliance_International: Captialism, Energy, and Sustainability: It is not a new concept to make money from sustainable projects.  Long term project returns and properly planned and managed projects can re...

Environmental Compliance_International: Use of Foreign Workers

For some reason this blog seems to be getting hijacked.  Not sure if it is technical or intentional.  I will assume the later, because who really would do such a thing?

In this blog we discuss the ethical issues related to the use of foreign workers in order to avoid environmental compliance, but actually it applies to all compliance.

In the USA there are companies that are USA owned and generally managed, but are operated with foreign labor.  This labor is obtain from contracting through a foreign staff firm.  The advantages this provides to the company is that all normal Environmental, Safety, and Health  reporting is circumvented.  And this contracted labor is not protected by whistle blowing laws.

For example one temporary power company I worked for utilizes foreign labor for its oversea operations.  This staff, including most of the management are trained overseas.  They do not adhere to OSHA or EPA standards, because they don't have to in their country of origin.  Because any injury or death is not a reportable incident for the power company, there is no real concern about EHS.  The company's senior leadership reports to its Board of Directors that there are no EHS incidents.  2 people have been killed, and several injured during operations, and yet the company's history is clean.  Looks good to the wine totting investors.

These foreign workers have no concern regarding environmental impacts of their operation.  Why, because they weren't train to care in their home country.

One would think the company with a Corporate Image, and a Board of Directors who speak of environmental conscious, would be conscious of how they operate.  But they don't, because operationally they have no clue.

But this is just one example.  Because it is more normal than not.  Safety workers in the oil & gas industry overseas are office workers.  They are expected to stay in the office and file their reports.  No walking around.

Sometimes no EHS positions are even included in the facility staff.  The plant manager will assume the role, which of course serves nobody.  The plant managers normally get salary plus bonus which means that any injuries or environmental issues could impact their bonus.

The foreign labor are well skilled.  They typically demand far less $ than their USA expat brothers/sisters.  They will not complain in fear of being sent back to their country where they will be unemployed for the remaining part of their life (loose lips sink ships).  So the company's bottom line is significantly improved, and there are no human resource issues to address.  And less likely hood of any environmental consequences; I see no evil, I hear no evil, I speak no evil.

So think of this as the Business Model of the Future.  Even for operations in the USA.  Why hire people who have rights and know their rights, when you can hire a similarly skilled person who doesn't want insurance or other benefits, and is scared to say anything?

Funny thing, this business model is not the sole property of USA operations.  Most countries utilize it in some manner or form.  This is the loop hole in compliance with any regulation.  Think about it.

Now is it ethical?  Nope, not in the least bit.  Especially when the company claims no deaths or injuries related to its operation.

But as long as the owners can drive their expensive sports cars, their kids can do was they want, and the Board is happy, who cares?

Environmental Compliance_International: Strange Happenings in the Horn of Africa

Environmental Compliance_International: Strange Happenings in the Horn of Africa: 26 August 2012--currently I am working on a electric energy project in the Republic of Djibouti.  This project sort of just happened.  That ...

Environmental Compliance_International: Environmental and Profits can be written in the sa...

Environmental Compliance_International: Environmental and Profits can be written in the sa...: Jaime Lopez To remain competitive in the world market the USA manufacturing sector must deal with its environmental responsibilities....

Environmental and Profits can be written in the same Sentence


To remain competitive in the world market the USA manufacturing sector must deal with its environmental responsibilities. So how to merge business with environmental requires the following three drivers:

1) Doing the Right Thing 
2) Profitability
3) Regulations


These three drivers apply to the domestic as well as international business sectors. There has been a lot written, and discussed on ISO 14001, and its sister Health and Safety OHSAS 18001, being able to bridge the gap and link these three facets. For the common CEO, or even COO, dealing with the here and now of how to generate a profit this week, versus the long term increased profits that can be generated by making modifications to business practices based on the ISO 14001 do not seem practical. In fact they seem more like left wing (progressive) enviro wacko bable, than real business solutions. Believe me I was a big non-believer when I was first introduced to ISO 14001 by one of my professors from the University of Findlay. I argued heavily against it during many classes, it is a wonder I passed the class.

Let me stop here a moment and step back to give some background on myself. I spent several years as a state regulator from field investor to the enforcement guy that closed down the first gasoline station in Texas for failure to properly upgrade the gasoline tanks. During this time I learned a little bit about regulations, the application, and those who enforce them. Following 8 years of doing that I moved into the private sector as a private consultant for 14 years that included both the domestic and international worlds. So I’ve seen several sides of the fence.
Generally speaking domestic regulations are not as ‘bad’ as most business want everyone to believe. Egad that definitely marks me as a wacko. Please don’t turn me off yet, give me a chance. The regulations are not that bad when one looks at the intent. The intent of environmental regulations is to protect human health and the environment—both. If the environment is polluted we who live in that environment are harmed. Doesn’t matter if it is some out of sight groundwater, or a plot of land in the center of the city.


Now what has gotten out of control are the people who enforce those regulations, as their intent has taken good regulations and twisted them to be something that does no good for anyone thus making them ‘bad’.

So instead of trying to change the regulations, it is better to change the ‘culture’ of the people who enforce. I can not say for certain, but it seems that most of the ‘bad’ enforcement people I have come across whether it was EPA or state level have come from a purely educational background with no experience in the real world, and on the flip side the good ones have had that experience. Who knows if I am right, but it sure does seem that way to me.
Now back on topic.

The first two drivers are actually all connected to the business operations, its profitability, and amazingly as it may seem have nothing to do with regulations! What in the world am I talking about now? Well, once a business sets itself up to be profitable using the best processes, capitalizes on the profits associated with elimination of wastes in those processes, and establishes a market for the remaining wastes, the issue regarding regulations quiet naturally goes away---poof like magic.

I have spoken to CEO/COOs who have said that this sounds all well and good, but doing this takes time and their businesses needed to increase profits today. And the Chinese do not have to worry about their environment, so this makes for an uneven playing field.



True, the Chinese are destroying their environment. They are also killing their people in mining and manufacturing, and in the contaminated foods they are feeding their people. So does that mean that our businesses should be allowed to do the same? The Chinese issue is another problem all on its own, that we each must consider the next time we shop; consider the implications from our economy to the Chinese military we are building every time we buy something made in China.


China will burn itself out given enough time, already Peking is a place most anyone with lung issues would best avoid; don’t drink the water.



We can make our business more competitive simply by investing in ourselves with modern equipment, establishing processes that are not wasteful, and focus on the various avenues to generate a profit. All of which in fact require a good well rounded environmental person (or even a health/safety) person who not only knows their job, but also understands business.
What the heck does Doing the Right Thing mean? It means that by evaluating the current business methods with the focus on how to do them better with less inputs while maintaining quality and reducing waste will result in a process that meets the definition of Doing the Right Thing.

In the USA we have been fortunate to have had access to abundant natural resources along with the governance to establish us at one time as a manufacturing leaders. Germany has had little resources during this same time, but has remained a manufacturing leader. Why? They do more with less, and do it right. So it can be done.

My advice to the business world, and to environmental professionals is:
  1. 1)  Work together
  2. 2)  Don’t focus on the avoidance of regulations
  3. 3)  Invest in new machinery
  4. 4)  Invest in establishing processes that eliminate waste
  5. 5)  Identify ways to increase profits through these processes
Environmental and Profits can be written in the same sentence