Developing a Safety Scoreboard Using the Right Metrics.

Developing a Safety Developing a Safety ScoreboardScoreboardUsing the Right MetricsUsing the Right Metrics

Safety Scoreboard Safety Scoreboard GoalsGoals 1) Stop hoping your safety 1) Stop hoping your safety

program will work, start measuring program will work, start measuring achievement achievement

2) Convince your CEO he / she is 2) Convince your CEO he / she is measuring the wrong information measuring the wrong information

3) Define a process with clear 3) Define a process with clear expectations expectations

4) Establish a process of 4) Establish a process of accountabilityaccountability

Achilles Heel of SafetyAchilles Heel of Safety

Measuring effectiveness is very Measuring effectiveness is very difficult to quantifydifficult to quantify– The only indicator of effectiveness is The only indicator of effectiveness is

the lack of an unplanned event…the lack of an unplanned event…(what?)(what?)

CEO wants to know-CEO wants to know-– How many accidents did you prevent?How many accidents did you prevent?– How much money did you save?How much money did you save?

Why do we keep Why do we keep score? score?

Determine if “what we do” is good Determine if “what we do” is good enough.enough.– Did we get the RESULTS we wanted?Did we get the RESULTS we wanted?– Did we our plan work?Did we our plan work?

We have all been trained since We have all been trained since childhood…childhood…– Our youthOur youth

Star Charts Star Charts SportsSports Did we win or loseDid we win or lose

If we don’t keep scoreIf we don’t keep score

Can you tell the difference Can you tell the difference between a game and “play”between a game and “play”

Changes the level of commitmentChanges the level of commitment Changes attitudeChanges attitude Changes intensityChanges intensity People perform with purpose People perform with purpose

Scientific Context Scientific Context

The Hawthorne Effect The Hawthorne Effect – Studies of employee motivation Studies of employee motivation

1927-19321927-1932– Summary: Employee productivity Summary: Employee productivity

increased because employees were increased because employees were “singled out, involved, and made to “singled out, involved, and made to feel important.”. feel important.”.

– The act of measurement itself The act of measurement itself impacts the resultsimpacts the results

Hawthorne StudiesHawthorne Studies

Hence – Hence – – What receives attention is deemed What receives attention is deemed

importantimportant– What receives time is deemed What receives time is deemed

importantimportant– What is recognized by the What is recognized by the

organization is deemed importantorganization is deemed important– ANDAND– What is MEASURED---GETS DONEWhat is MEASURED---GETS DONE

Safety Score?Safety Score?

Measures usually based on Measures usually based on accidents, which are unplanned.accidents, which are unplanned.

Usually include hindsight, Usually include hindsight, reviewing and comparing year reviewing and comparing year long comparisonslong comparisons

Lacks antecedents that lead to Lacks antecedents that lead to changes. What drives results?changes. What drives results?

Risk Management- Risk Management- What do we measure? What do we measure? Incident ratesIncident rates Lost daysLost days DART ratesDART rates Industry comparisonsIndustry comparisons Experience ModifierExperience Modifier Cost comparisonsCost comparisons

Managing RiskManaging Risk

If the goal is to manage risk and If the goal is to manage risk and ultimately decrease injuries and ultimately decrease injuries and reduce cost then it must be reduce cost then it must be managed. managed.

You cannot manage what you do You cannot manage what you do not measure.not measure.

What you measure must directly What you measure must directly influence results. influence results.

Managing RiskManaging Risk

Safety needs to be intentional Safety needs to be intentional Achievement orientedAchievement oriented Measureable (but what do you Measureable (but what do you

measure?)measure?) Identified management Identified management

accountabilityaccountability Included on performance reviewsIncluded on performance reviews Recognized by management as part Recognized by management as part

of the process of the process

The ProblemThe Problem

CEOs expect resultsCEOs expect results But…results are lag measures. But…results are lag measures. Safety is in the middle, Safety is in the middle,

experimenting.experimenting.– Training and re-trainingTraining and re-training– Safety committees that are not effectiveSafety committees that are not effective– Feel unable to change the cultureFeel unable to change the culture– Feel it is “unfair” to judge them on Feel it is “unfair” to judge them on

subordinates performancesubordinates performance

Results vs. ActivitiesResults vs. Activities

0102030405060708090

100

CEO Mangers Employees

ResultsActivities

Results

Activities By: Dan Peterson

Lead IndicatorsLead Indicators

Lead indicators are: Lead indicators are: – Actionable today—did you do it or Actionable today—did you do it or

not?not?– MeasurableMeasurable– ObservableObservable

Lead indicators INFLUENCE the lag Lead indicators INFLUENCE the lag measures.measures.

Leads are a bet that if we do “x” Leads are a bet that if we do “x” then “y” will improvethen “y” will improve

ProgressProgress

W. Edwards Deming: W. Edwards Deming: – 96% of our issues are from “How 96% of our issues are from “How

operations are run”operations are run”– 4% of issues are from people4% of issues are from people

Operations are often left out of Operations are often left out of the formula because we focus on the formula because we focus on people. people.

Accountability ItemsAccountability Items

ItemItem Pt. Pt. ValueValue

MgrMgr. 1. 1

Mgr. Mgr. 22

MgrMgr. 3. 3

Clean 2 times / Clean 2 times / shift shift

1010 55 1010 1010

100% PPE Use100% PPE Use 1010 00 1010 1010

Weekly equip. Weekly equip. insp.insp.

1010 55 1010 1010

5 safety 1 on 1s 5 safety 1 on 1s /wk/wk

1010 55 55 1010

Total Total 4040 1515 3535 4040

Safety Score by Manager

40

15

3540

0

10

20

30

40

50

Goal Mgr 1 Mgr 2 Mgr 2

Manager

Poi

nt V

alue

Series1

Complaints…Complaints…

I don’t have timeI don’t have time Too busyToo busy Not important todayNot important today

If it is deemed important by the If it is deemed important by the CEO it will get done.CEO it will get done.

This is a change, expect resistance This is a change, expect resistance

A note about A note about scoreboardsscoreboards Keep it SIMPLE…did you win or Keep it SIMPLE…did you win or

not?not? Post it in a noticeable areaPost it in a noticeable area Be creativeBe creative

Make it clear…Make it clear…

Loss Prevention Risk Loss Prevention Risk Alert Actions:Alert Actions: Risk Alerts Risk Alerts Contacted within 7 daysContacted within 7 days

Goal= 100%

As of 4/15/09

Risk Alert Completion

11

19

13

17 17 17

10

8

17

12

1415 15

1073%

89% 92%82%

88% 88%

100%

0

2

4

6

8

10

12

14

16

18

20

Oct Nov Dec Jan Feb Mar April

Month

Num

ber

o fA

lert

s

0%

20%

40%

60%

80%

100%

120%

# Risk Alerts # Contacted w/in 7 Days % Contacted w/in 7 Days

Claims: Yellow Flag Claims: Yellow Flag ActionAction 100% Acted Upon 100% Acted Upon within 14 dayswithin 14 days

As of 5/8/09

Yellow Flags

67

2520

51

28 30

41

62

25 26

51

2630

41

93%100%

77%

100%93%

100% 100%

0

10

20

30

40

50

60

70

80

Oct Nov Dec Jan Feb Mar April

Month

Nu

mb

er o

f F

lag

s

0%

20%

40%

60%

80%

100%

120%

# Yellow Flags # w/in 14 Days % Contacted w/in 14 Days

Incidents AND Incidents AND ObservationsObservations

Safety Observations and Incidents

0

1

2

3

4

5

6

7

8

9

10

2008 Ja

n Feb M

arApr

ilM

ayJu

ne July

AugSep

tOct Nov

DecJa

n Feb M

arApr

ilM

ayJu

ne July

AugSep

t

Month

Inci

den

ts

0

10

20

30

40

50

60

70

Ob

serv

atio

ns

# of Incidents Safety Observations

Safety Observations Safety Observations by Departmentby Department

Incidents and Observations by Dept

0

1

2

3

4

5

6

Shipping Receiving Assembly Maintenance Transportation

Department

Incid

en

ts

0

5

10

15

20

25

30

35

40

45

Observations

# of Incidents Observations

ScoreboardsScoreboards

Decide the key activities that will Decide the key activities that will influence the lag measuresinfluence the lag measures

Measure activities and Measure activities and effectivenesseffectiveness

Tie rewards / recognition to Tie rewards / recognition to completion of activitiescompletion of activities

Use scoreboards to improve Use scoreboards to improve accountabilityaccountability

Thank you!Thank you!