Valuable Conversations at the WorkBoat Show

The International WorkBoat Show is a great event every year, not only for generating business leads, but for what you can learn from the conversations you have. I had a very interesting conversation with one member of the Coast Guard which is definitely worth sharing and learning from. First, some background: a few months ago we held a public forum on Subchapter M. In preparation for the forum, I met with Coast Guard investigators and inspectors. The plan for the forum, in addition to presenting what was in the proposed regulations, was that I was going to do a presentation on developing and implementing a safety management system (SMS) including all the difficulties and repercussions of not doing so correctly. The intent was to educate the industry on making the best possible decision. One inspector did not like this idea because he thought the SMS option was best and he didn't want to deter companies from that option. The investigator I met with, however, was more in line with my train of thought, which is that a company should know what they are getting into. The investigator explained that it is part of the curriculum to teach Coast Guard investigators to look into the company's SMS following an accident and see if the procedures were adequate to prevent the situation and if those procedures had been fully implemented. Of course, to drive the point home, the investigator added that a captain who does not follow regulations or policies and procedures could be charged with misconduct and be subject to suspension and revocation. I shared this important information with those who attended our forum back in September.   At the WorkBoat Show a senior Coast Guard investigator came to our booth and saw our draft of a Towing Safety Management System (TSMS). He said he had wanted to discuss an issue with companies that develop SMSs. He explained that as a Coast Guard investigator he was currently working a case involving a serious personal injury and that he was in the process of going through the company's SMS to see if the written policies and procedures were adequate and if they had been followed. He suggested that should be kept in mind when developing and implementing an SMS. When I told him I agreed and had the exact same conversation with a Coast Guard investigator a couple of months ago, he quickly realized that I was a former Coastie and on the same page. We were both relieved to know there were other like minded individuals dedicated to ensuring the industry understands the intent and prepares for the worst. It seems in this industry there are three levels a company can prepare for when it comes to compliance and conformance. The lowest level is to prepare for an audit by an auditor who the audited is paying to conduct. The mid-level is to prepare for a government inspection where the inspector may or may not look at everything with a critical eye, and even if discrepancies are found, 30 days are typically given to prove compliance. The highest level however, is to prepare for the worst case scenario, such as following a serious accident where Coast Guard investigators, insurance people, expert witnesses and attorneys are paid to look at what went wrong and compare it to the company's policies and procedures. Accordingly, the only prudent action for an excellent company to take is to prepare for the worst and hope for the best by having the best possible policies and procedures and ensure they are properly implemented 100% of the time.