New Operating Concepts-Management of Change (MOC) In Ship-

ping Industry. Are You Change Ready?

Author Name(s): Stavros Hatzigrigoris, Despina Moustaka
Greece, mail@kristennav.gr

Abstract One of the important principles in shipping is that we

have to take decisions quickly. But now TMSA asks for
To cope with a changing world, organisations must a more formalized and calibrated strategic decisions.
develop the capacity of shifting , of developing new
skills and attitudes; in short, the capability of learning The objective of this paper is to describe the practical
and managing change. Today with the heavy demands experience of Kristen Navigation on application of
made on the shipping industry, it is imperative we keep Management of Changes process in our daily routines ,
abreast with the constant changes in rules, commercial demonstrating the results of our accumulated experi-
changes and that we continually strive to improve our ence.
operations. With this in mind, Kristen Navigation has
created a “new management model” that meets or ex- 2. Management of Change Process
ceeds safety, environmental and customer requirements,
thus has established procedures, which ensure that Change is defined as “any new condition which might
proposed changes as well as future needs are evaluated affect Company’s activities” which justifies a structured
for technical and business exposure and managed to analysis in order to determine any further actions
ensure that risks arising from these changes, remain at needed.
an acceptable level. Change management is the process of identifying a
In this paper we are presenting briefly the program future desired state in the organisation, understanding
designed to handle the adverse effects of a change. the current state and constructing a transition plan to
attain the goal. (Fig.1)
Keywords
Policies/Procedures
Management of Change ; MOC; TMSA; Risk Assess- Methods
ment. Mechanisms Legislation
Training
1. Introduction Current State Future State
Change Identification Deliverable
The Management and Operation of vessels within a Change
Input Output
culture of safety and environmental excellence were
formalized with the introduction of the ISM Code.
People
OCIMF found necessary to supplement the ISM Code Infrastructure
and bring one more safeguard on all tankers they are Resources
Working Environment
vetting and chartering. TMSA was the answer. Time
Ever since all tanker companies started implementing Figure 1: Change Process
TMSA and oil majors used it as their key tool for as- Changes in shipping industry can result from new pro-
sessing the management of a company. cedures or personnel, changes to operating conditions,
But which on was of the lowest scoring TMSA element installation of new equipment, the consequences of new
in the begging of TMSA implementation ? This was regulations, etc. Change that is temporary in nature also
Element number 7 : Management of Change, which requires systematic review.
states: ” A change management process is in place The methodology designed by Kristen Navigation in
throughout the office/fleet and operates effectively to order to manage the change includes the following steps
reduce operational risks” . (Fig.2 and Fig.4):
• Identify the Change /projecting future needs

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 • Receive approval to continue with the change
• Conduct Risk assessment (that includes con-
formity with regulations, effect on environ-
ment, effect on safety management system,
competency of people, equipment specifica-
tions etc)
• Developing Actions plan
• Approve/verify the change
Verify Identify
Risk Assessment
Evaluate the
Effectiveness
- ensure that all changes comply with regulations,
industry standards and original equipment design
specifications;
- identify and document any training needs arising
from any changes and ensure that all appropriate
personnel receives the required training within a
specified period;
- ensure that appropriate drawing, procedures and
other technical documents are updated following
any change or modification;
- ensure that care shall be taken for issuance of work
permits before making changes to or working on
equipment etc;
- ensure that all changes are developed in consulta-
tion with those who will have to implement them,
in order to be better suited to their purpose, and
more readily accepted.

4.1 Approval of Change

Deploy Plan Approved changes shall be completed within a defined
time limit. If the change is not completed within the set
time frame, then re-authorisation of the approval to
make the change is to be sought and the initial hazard
observation/risk assessment shall be revisited.

Figure 2: Change Management Cycle 4.2 Levels of Authority for approving a change
Responsibility for supervision and follow-up of each
3. Identification of changes approved change is assigned.
The levels of authority presented in the Table 1, define
How we identify Changes ? Identifying changes in the the minimum required for a change to be approved. The
shipping industry means to look ahead taking always detailed functions, responsibilities and authorities of all
into considerations the lessons leaned from the past. employees related with the approval of a change (e.g.
We cannot predict the future but we can get a handle on Financial Authority)are defined in the relevant job de-
trends, which is a way to take advantage of change and scriptions.
convert risks into opportunities. The experience and Table 1: Managers levels of authority for approving a
understanding of the Company staff is the main criterion change.
for identifying which changes will be handled. Such
Position Authority
changes could be:
The Technical Director: Changes new system or
- regulatory changes; equipment which may be
- commercial changes; installed on vessels , critical
- technical changes; equipment shutdown.
- operational changes; Operations Director: Operational and Commercial
Changes
- changes in the human resource profile;
- changes necessitated from gathered/new experi- Personnel Manager : Recruitment of Staff
ence, (e.g accidents). Quality Manager : Changes in the safety man-
agement system.
4. Evaluate the Change IT Manager: Changes to computer hard-
ware and software.
After a change need has been identified, the primary
objective is to evaluate the change and manage to help Master /Chief Engineer Changes on their Depart-
ensure that risks arising from this change remain at an ments, with the consultation
acceptable level.(See also the paragraph 5. Risk Identi- of the relevant Dept Man-
fication and assessment). ager.
During the evaluation of change we : The General Manager: Approval of any permanent
- review the safety, quality, health, and environ- change..
mental implications of change; As a general rule, persons directly involved in the
change shall not be involved in its approval.

2
This process is recorded in the Management of Change This process is recorded in the Risk Assessment
Form. forms/records.

5.Risk identification and Risk Assessment (RA)
Every Change identified is analysed in order to deter-
mine any hazards/aspects and risks which may contain a
danger to life, safety, quality, health, the environment or
property or may adversely affect Company’s Custom-
ers. The relevant Managers/Masters ensure that the
potential consequences of the change are identified,
together with any required risk-reduction measures.
(Fig.3)
This process helps the Company to identify and priori-
tise the most effective risk-reduction measures. It will
also identify residual risks that require management
attention.
6. Development, implementation and monitor-
ing
It is a known fact that well organised planning, design-
ing and implementation will produce the most effective
changes, therefore standard procedures have been de-
veloped to ensure critical elements of change are always
addressed in a structured , timely and consistent manner.
Outputs of the risk assessments and correc-
tive/preventive actions aiming to bring the risks associ-
ated with the change to acceptable level are the tools
used to develop an action plan.
Identify the
Change

No
Approval to
Proceed?
Notify originator

Yes
Risk
Assessment

Develop Action
plan

Verify No
Approve the
Change

If time frame Yes

being
exceeded
Monitor
Implementation

No
Figure3: Risk identification and Risk Assessment (RA) Implemented
Change
effective?

- If aspects of the Change containing risk are identi-

fied (e.g. non routine tasks), a RA is carried out for
Yes
each of the identified risk aspect and the need for
further action is evaluated.
Change
- If no risk is identified no further actions are re- Closeout

quired.
The risk assessment may result to: Figure 4: Development , Implementation, Monitoring
- identification of resource needs; Flowchart

- identification of training needs;

The following elements should always be taken into
- revision of procedures; consideration during the developments of the change
- updating of PMS/spares requirements/drawings action plan:
and/or technical documents. ¾ what time is available to plan, design and imple-
ment the change?

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¾ will the change require the purchase of equipment
or external services? (placing purchase or service
orders with suppliers in a timely manner )
¾ will the change involve the need for additional or
re-shuffling of personnel/procedures?
¾ what costs will be involved?
¾ who is most suitable to gather together all neces-
sary information and to design the change?
¾ when a follow-up review should take place, always
allowing enough time to get a clear picture of the
effectiveness of the change
The person who is overall responsible for the correc-
tive/preventive actions shall actively monitor their
timely implementation. If the proposed actions are not
completed within the set time frame the change must be
reviewed and a new Risk Assessment / Action Plan may
need to be conducted.
Important role on the monitoring of a change has the
Management Review Committee. The Committee moni-
tors the effectiveness of this process to ensure that all
the changes have met expectations and plans, via inter-
nal audits and ship inspections/visits.
7. Examples of changes
7.1 Changes to personnel
Changes in the human resource profile of the Company
and fleet are identified primarily by the department
Heads (with respect to shore staff) and the Ships Per-
sonnel Manager (with respect to the fleet). Such
changes may be:
- major changes to shore organisation (i.e. replace-
ment of a department Manager or change of posi-
tion within the organisation);
- new Manning agent;
- new crew nationality;
- new requirements related to crew composition and
competence, etc.
Necessary levels of individual and collective experience
and knowledge should be carefully considered when
personnel changes are made. The number, experience
and skills of personnel should be sufficient under differ-
ent operational conditions.
For major changes to the shore Organisation such as
changes in reporting relationships, elimination of posi-
tions, restructuring, etc. the system shall be reviewed for
the impact to both the Organisation and the SMS. Man-
agers responsible for supervising or managing the func-
tions undergoing change shall convene a Management
Review Committee meeting in order to clearly reassign
the responsibilities, as well as to review the impact of
all changes to the Company’s roles and responsibilities.
Example Changes to Personnel: New Fleet Technical
Manager
Due to Fleet expansion the need to hire additional Fleet
Technical Manager was identified by the Technical
Director.
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As a standard policy all newly joined personnel, or
personnel transferred to new assignments shall be famil-
iarised to the SMS and their duties. In the case of the
new Fleet Manager a full review of the impact of this
change was carried out in order to manage the associ-
ated risks.
The following were approved/decided
• Review of Candidates Experience in the field
of assignment -Technical Experience- on the
same type of vessel. Moreover the following
were checked:
o personality / attitude / courtesy - so-
ciability - maturity
o age (physical condition)
o communication skills
o safety awareness and commitment to
implement the Company’s policies
o training requirements
o salary requirements
o fitness for duty
• A verification of the qualifications of new re-
cruit that are genuine. (Authenticity of Certifi-
cates from the issuing authorities as well as by
contacting former employers for references
verifying the stated qualifications)
• Familiarisation related with all pertinent infor-
mation on the duties, responsibilities (Job De-
scription), condition of the vessels that he will
assume, with particular emphasis on the safety
and environmental aspects, emergency proce-
dures and arrangements and watch keeping du-
ties, as well as with the policies and business
ethics of the Company was made.
• A probationary period for 3 months was set, in
order to ensure that his is settling-in as well as
to identify any additional training needs. The
Technical Director was responsible to monitor
and appraise his performance during this pe-
riod.
• A document Review in order to update the Or-
ganisation chart, Emergency Plans, SMS Ref-
erences and Contact Lists.
7. 2 Commercial Changes
Changes in the commercial environment may be identi-
fied by the General Manager, the other Managers, etc.
Such changes may be:
- change in the market conditions which may neces-
sitate a change in policy or change in the vessel
type operated;
- change in the contractual agreements with custom-
ers e.g. a fundamentally different Charter Party;
- a change in the political environment (e.g. war or
recession) that affects Company’s business plans
and the security of assets, etc.
7.3 Technical Changes
Such changes are identified primarily by the Technical
Director, the Fleet Manager, the senior seagoing per-
sonnel, etc. Such changes may be:
- non routine maintenance tasks;
- new system or equipment which may be installed
on vessels (e.g. a new incinerator);
- a new vessel entering fleet;
- new classification regulations affecting the techni-
cal condition of vessels;
- new technological solutions available in the market
(e.g. a new corrosion protection system), etc.
The Technical Director ensures that all applicable draw-
ings, procedures and other technical documents are
updated following any change or modification.
7.4 Regulatory Changes
All department heads are responsible for tracking, iden-
tifying and accessing applicable, forthcoming and po-
tential safety, quality, health, and environmental re-
quirements, rules and regulations, guidelines and stan-
dards recommended by the IMO, Flag Administrations,
Classification Societies and industry organizations,
pertaining to their area of interest, applicable to both
ship and shore based operations and evaluating their
potential impact on the Company’s operations. In this
respect several techniques are employed, which include
commercial databases, information from the vessels’
Classification Societies and industry associations and
direct communication with National and Flag State
regulatory agencies.
The tracking of applicable and forthcoming regulations
is an ongoing process however, prior to each Manage-
ment Review Committee, the department Heads, utilises
all sources of regulatory information and revises the list
of applicable and forthcoming regulations if necessary.
7.4.1 Example of a Commercial and Technical and
Regulatory Change:
Conversion of a VLCC from single to double hull
The need for change was initiated due to environ-
mental reasons, compliance with international legisla-
tion/requirements which will be implemented in the
future (Marpol Annex I Regulations 13 F), in order to
extend Vessel’s trading line for commercial reasons.
Following thorough discussion between the General
Manager, Technical Manager, Operations Manage, and
the DPA on the operational and technical aspects of the
imminent change the following were approved/decided:
1. Selection of the most convenient designers to
perform the conversion.
2. Determination of applicable rules and regulations
apply for the subject change.
3. Investigation of conversion feasibility (technical
aspect of the change) to be carried out by the se-
lected designers including preliminary midship
section, development of inner hull geometry, cal-
5
culation of midship section scantlings according to
Class requirements, estimation of required steel
weight, preliminary calculation of new light ship
weight and centres, preliminary calculation of new
cargo / ballast capacities, check of intact stability
and longitudinal strength, check of damage stabil-
ity.
4. Review of vessel’s cargo capabilities (operational
aspects of the change) deriving from the prelimi-
nary plans.
5. Message to all third parties concerned (majors,
charterers, flag administration, etc.) for the ves-
sel’s intended conversion and any other informa-
tion required.
6. Appointment of an approved yard to carry out the
conversion (in accordance with Company’s SMS
relevant procedures described in Maintenance Pro-
cedures).
7. Consideration of all safety and environmental
parameters to be followed during the conversion.
8. Appointment of Company’s’ representatives to
attend the vessel’s conversion and ensure that all
procedures are complied with.
9. Preparation of the vessel prior to arrival in the
repair yard (cargo tanks/ ballast tanks/pipe tun-
nels/cofferdams/empty fuel tanks in gas free con-
dition, cargo tanks cleaned and free of residues,
cargo/vent/inert gas/COW lines together with
cargo heating coils and lines flushed and/or venti-
lated, etc.
10. Preparation of conversion drawings and manuals:
a. Detailed construction drawings (parallel body
constructions and details, forward part con-
struction and details, aft part constructions and
details).
b. Amendment of applicable plans and manuals
(GA, Capacity, diagrammatic plans for
cargo/ballast piping, diagrammatic plans for
tank sounding/venting piping, COW manual,
ODME manual).
c. Preparation of new ullage tables for affected
cargo and ballast tanks.
d. Preparation of preliminary and final Trim &
Stability booklet.
11. Submission to Class of all above plans, manuals
and drawings for review and approval. Follow up
of relevant procedure to be carried out by the de-
signers.
12. Coordination with the yard for fabrication and
erection drawings.
13. Follow up of progress of repairs by Company’s
representative and daily communication and coor-
dination with the Company’s Technical depart-
ment. (Project Plan was carried out)
14. On completion of conversion, coordination with
the vessel’s Class for the performance of the in-
 clining experiment to determine new vessel’s
lightship, VCG and LCG.
15. Issue or amendment of all appropriate certificates
(tonnage, load line, etc.) by the Class.
16. Update of vessel’s loading program following the
update of loading manual.
17. Notification to charterers / majors on the readiness
of the vessel and its recent cargo capabilities / fea-
tures.
18. Training of vessel’s Master, Officers and crew
involved in cargo operations on vessel’s new opera-
tional capabilities, features, loading/discharging
procedures, cargo lines, cargo ventilation, IGS,
COW, cargo valves and other related equipment.
The change was well designed and the project was final-
ized earlier than it was expected successfully.
7.5 Operational Changes
New types of Operations which may not be fully cov-
ered by the SMS may be identified by the Operations
Department, the senior seagoing personnel, etc. Such
operations may be:
• navigating in areas with special conditions (e.g.
in rivers or in ice);
• committing to carry a cargo with extra-
ordinary characteristics;
• planning an un-usual cargo operation (e.g. to
un-load in barges), etc.
7.6 New Experience
Experience gathered from the day-to-day operation,
which indicates the existence of risk should be identi-
fied and handled in accordance with this procedure.
Such new experience may be:
• incidents, near misses, non conformities, de-
fects, etc.;
• outputs from the Management Review Com-
mittee meetings, etc.
7.7 Other Changes
7.7.1 Introduction of newly acquired vessel into the
Fleet
The introduction of a new vessel in the existing com-
pany fleet is thoroughly reviewed, more specifically the
following a activities are followed/checked every time:
• the type of vessel is included in the DOC is-
sued for the Company;
• Company Superintendents /Senior Officers
have become familiar with the vessel, its sys-
tems and equipment well in advance by visiting
the vessel or the new building yard;
• training is provided, especially for new vessel’s
type;
6
• Officers and ratings fulfil the crewing require-
ments;
• all the required Company manuals, technical
books, drawings, etc. as indicated in the
SMSM, are available on board and ashore in
advance;
• the SMS Familiarization/ Manual distribution
to shipboard personnel;
• instructions, which have been identified as es-
sential to be provided prior to sailing, have
been given to the crew;(e.g. Drills)
• an internal audit of the shipboard SMS has
been planned to be carried out within the first
three months after the acquisition of the ship.
When the above conditions have been complied, the
DPA shall notify the certifying Authority to proceed in
the issuance of the interim SMC.
From the initial construction, or acquisition of a vessel,
a historical record shall be maintained which indicates
any structural or technical changes made, the current
status of equipment, and how that status evolved from
the original design.
7.7.2 Vessels leaving management
Procedures have been established to Manage the
Change when a ship leaves Company management.
The Company and the new managers / owners shall
agree arrangements for hand over of the vessel, includ-
ing familiarisation period for joining crew, location and
timetable for hand over and any specific requirements at
hand over.
In the event of a change in ownership, a copy of the
MOA shall be obtained and the Master given specific
instructions regarding inspections by the new owner’s
staff.
Where possible the vessel’s Technical Superintendent
shall attend the vessel at the time of hand over to co-
ordinate transfer of management. If his attendance is
not practical, then the Master will receive instruction
regarding the hand over procedure.
Prior to hand over, the vessel’s Technical Superinten-
dent instruct the Master to prepare for landing Com-
pany documentation and rental equipment.
The Master shall ensure that all controlled documenta-
tion and records relevant to application of the SMS on
board the ship is returned to the DPA. This documenta-
tion shall be kept in the Company's file for a minimum
of 2 years from the date the ship leaves the Company's
management. The certifying Authority must to be im-
mediately informed.
7.7.3 Change of vessel’s name
In the event of the vessel's name changing, all certifi-
cates, documents, and manuals must be appropriately
endorsed by Class or Flag State.
7.7.4 Change of vessel’s flag
In the event of the vessel's flag change, relevant certifi-
cates (i.e. Certificate of Registry, Continuous Synopsis
Records) should be issued by the new flag administra-
tion. Any new Flag State requirements must be satisfied
and relevant certificates and documents must be appro-
priately endorsed directly by the Flag administration or
through appointed Classification Society, duly author-
ised by the administration to act on its behalf.
7.7.5 Changes which do not impact on Operations
Integrity
Changes that will not adversely affect Operations Integ-
rity do not require a Change Request Form and may be
approved without the need for review by the Manage-
ment Review Committee. Examples of such changes
would include but not be limited to the following:
1. Telephone number, name and address changes in
manuals.
2. Typing errors and spelling mistakes in manuals and
documents, etc.
8. The worst and the best practice in Managing
Change
In order the change to be effective we have to analyze
why changes often fail and why people and organisation
resist changing.
People reactions to change depend on how well they
perceive the change affecting them and their level of
uncertainty. In the Management of Change process we
have to consider the area of uncertainty and factors
affecting it in order to reduce the affect and to encour-
age a move from negative to appositive reaction.
In the Figure 5: we present some of the areas where an
individual likely to feel to impacted on by a change
8.1 Reactions to a change
Typically reactions to change may fall anywhere within
the range of:
Enthusiastic Acceptance
This is the ideal we should be aiming for when we plan
a change. This reaction will only occur when people
perceive the change as substantially meeting their own
needs or desires.
Conditional Co-Operation
People may well have reservations about the effects of a
change and be reluctant to commit themselves fully.
However, the will often be prepared to “go along with”
the change as long as none of their fears are realized.
Indifference
This reaction occurs when people do not see that the
change affects them in any way; or when they believe
that the change will be short-lived. They may entirely
ignore the change; or may become involved in appar-
ently associated matters that are, in fact, irrelevant.
Non Co-Operation
If people see a change as being to their disadvantage,
they may well decide not to co-operate in any way with
the implementation of the change. Examples of such
behaviour are deliberate slowness in learning a new
procedure, or failure to draw attention to a potential
problem they have foreseen. Such behaviour is really
designed to sabotage a change with which they do not
agree.
Active Resistance
This is the extreme end of the spectrum of reactions
against a change. Such behaviour is normally obvious
and includes deliberate acts designed to sabotage the
change and prove it will not work.
Changes are resisted because people:
• Perceive the change treating their basic secu-
rity in some way.
• When communication about the change--
timetables, personnel, monies, etc.--has not
been sufficient
• When the proposed users have not been con-
sulted about the change, and it is offered to
them as an accomplished fact. People like to
know what's going on, especially if their jobs
may be affected. Informed employees tend to
have higher levels of job satisfaction than unin-
formed employees .
• When the change threatens to modify estab-
lished patterns of working relationships be-
tween people.
• When the benefits and rewards for making the
change are not seen as adequate for the trouble
involved.
.
Behavior Security
Relationships
Status
Employee
impact of
Change
Stress Values
Recognition Motivation
Figure 5: Impact of Change
8.2 The worst practice in Managing Change
Some of the biggest mistakes that can be made by the
Senior Management when introducing changes are as
follows:
• Not being directly involved with the project
• Dictating change without communicating the
benefits

7
 • Failing to be kept informed of the project’s As Charles Darwin stated “ it is not the strongest species
progress and losing track of it that survive, nor the most intelligent, but the ones who
are most responsive to change”.
• Delegating their responsibilities to others and
not intervening soon enough when problems
arise
• Thinking they can pass the buck to a “cham-
pion” to fix it
• Losing interest once the project is started
• Forgetting the reason for the change
• Ignoring the impact of the change on employ-
ees and focusing on business issues only
• Changing priorities midstream in the project
(Diverting their attention to other areas before
the project is implemented)
• Not foreseeing and being prepared for resis-
tance during implementation period
• Not providing sufficient resources (people,
time, money) and failing to engage all man-
agement levels in the change
• Underestimating time and effort required
8.3 The Best practice in Managing Change
By eliminating the above mentioned worst practices
errors, we will empower the Management of Change
Process.
Summarizing, the key factors for success when imple-
menting change within an organisation are to:
• Demonstrate Senior management commitment
• Set realistic goals/targets
• Power for change – we need to provide the re-
sources: time and finance
• Establish a communication/education plan,
share vision. One of the best way to overcome
resistance is to educate people about the
change effort beforehand.
• Monitor the Changes Implementation and re-
align performance when necessary.

9. Conclusions

In today’s competitive world and with the heavy de-

mands made on the shipping industry we are going to
withstand relentless and constantly growing global
competition, if we wish to lead in the industry we need
to be different and we must learn to look on change as a
friend - one who presents us with an opportunity for
growth and improvement.
In this paper we described a new management model
that has been created, documented and tested, in order
to manage change, build trust among our employees,
drive out fear of failure and create productive environ-
ment in which everyone can offer their unique knowl-
edge and talents.