Page 63 - Petrosphere - Loss Control Management (LCM) Training Manual V 1.0

62 Module 6: Economics in Loss Control Loss Control Management (LCM)

Module 6: Economics in Loss Control

How to Sell Safety Management

1. Provide personal satisfaction
2. Improve labour relations

3. Enhance public relations
4. Increase production rate
5. Give legislative compliance
6. Improve product quality
7. Reduce injury rate
8. Improve operating costs
9. Reduce liability potential

10. Improve customer relations

Principles of Economic of Association

“A manager will usually pay more attention to statistical
or general information when expressed or associated with cost
terminology”.

Example:
• A plant’s immediate past injury loss history is translated to a cost per man-hour figure using
national average cost.

• For many years the St. Regis Corporation has expressed the accident statistics given to its
management group in terms of an “injury cost rate” rather than a disabling injury rate.

• Many companies relate their accident losses to the sale of products necessary to offset each
accident with profits.

Principles of Reciprocated Interest

“People tend to be motivated to accomplish results you
want, to the extent you show interest in the results they want to
achieve”.

“The principle tells us that if we want to sell
management or any safety or loss control idea, we must

present in such a way that the receiver will organize the value
that he will gain toward those things he is interested in.”
PETROSPHERE INC.
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