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Measuring Safety PerformanceWhat are you doing to measure yourWhat are you doing to measure your
organizations safety performance?organizations safety performance?
Todays objective: Understand the concept of
leading performance indicatorsVersus
lagging performance indicators
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Measuring Safety Performance
What doesnt getWhat doesnt get
measured justmeasured just
doesnt get donedoesnt get done
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Measuring Safety PerformanceLagging indicatorsLagging indicators
(the traditional approach to managing safety)(the traditional approach to managing safety)
Injury/ ill statisticsInjury/ ill statistics
Workers compensation dataWorkers compensation data
illogical to count things you dont
intend to happen
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Measuring Safety PerformanceLeading performance indicatorsLeading performance indicators--
What do we intend to happen?What do we intend to happen?
Measure the presence rather thanMeasure the presence rather than
absence of safetyabsence of safety
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Measuring Safety PerformanceSample leading safety indicatorsSample leading safety indicators
% of scheduled safety inspections completed% of scheduled safety inspections completed
% of scheduled Job Observations completed% of scheduled Job Observations completed
% of new employee workstations evaluated% of new employee workstations evaluated
% of safety related work orders completed% of safety related work orders completed
% of safety trainings completed% of safety trainings completedIn every monthIn every month
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Leading & Lagging Leading indicatorsLeading indicators
positive indicatorspositive indicators
ComplianceCompliance
Risk reduction, Injury reductionRisk reduction, Injury reduction
what was made to happenwhat was made to happen
Lagging indicatorsLagging indicators
Negative indicatorsNegative indicators NonNon--compliancecompliance
Number of accidents, manNumber of accidents, man--hours lost etchours lost etc
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Leading Indicator
Due Diligence to Show That:Due Diligence to Show That:
Safety management system is workingSafety management system is working PreventativePreventative Make it Happen safetyMake it Happen safety
objectives are being takenobjectives are being taken
Improve assurance that lagging indicatorsImprove assurance that lagging indicatorswill remain lowwill remain low
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Leading Indicator
Set a standard of performanceSet a standard of performance
Measure that performanceMeasure that performance
pp
Leading indicators are a measure ofLeading indicators are a measure ofperformanceperformance
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Measuring What Matters MostWhat matters most?What matters most?
RiskRisk
CommitmentCommitment
SustenanceSustenance
What should we measure?What should we measure?
1.1. RiskRisk2.2. CommitmentCommitment
3.3. SustenanceSustenance
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Principles of Setting and
Measuring Leading Indicators Measure against standards (programs & procedures)Measure against standards (programs & procedures)
Objective & verifiable by auditorsObjective & verifiable by auditors
Place on corporate agendaPlace on corporate agenda
Corporate goals to include leading indicatorsCorporate goals to include leading indicators
Report to CEO & BODReport to CEO & BOD
Review with CEO & BODReview with CEO & BOD Tied to pay for performance processTied to pay for performance process
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Checks and Balances
To ensure the system works honestlyTo ensure the system works honestly
Joint safety committeeJoint safety committee
Internal auditorsInternal auditors union/ managementunion/ management
External auditorsExternal auditors
Safe workplace associationSafe workplace association
Regulatory agency auditsRegulatory agency audits
SMSSMS -- knits it all togetherknits it all together
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Safety Management System
Policy stating commitmentPolicy stating commitment Demonstrate commitment by putting leadingDemonstrate commitment by putting leading
indicators in corporate strategic planindicators in corporate strategic plan
Assessment of risksAssessment of risks
Setting safety standards viaSetting safety standards via
Programs & proceduresPrograms & procedures
Provide training on standardsProvide training on standards
ClearClear -- two way communicationtwo way communication Evaluating performance of:Evaluating performance of:
Individuals, programs & safety systemIndividuals, programs & safety system
Annual performance report on strategic goalsAnnual performance report on strategic goals
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Measuring Safety At Horizon
Make it happen safety objectives:Make it happen safety objectives:
Scoring system:Scoring system:
LeadershipLeadership 20%20%
Program ComplianceProgram Compliance 30%30%
Training + application of skillsTraining + application of skills 20%20%
Program improvementProgram improvement 20%20%
Lagging indicatorsLagging indicators 10%10%
Total scoreTotal score 100%100%
ScoreScore pp Determines management bonusDetermines management bonus
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Measuring Safety
Measuring leadership:Measuring leadership:
Safety programs reviewed bySafety programs reviewed by BOD (BOD (----%)%)
VPs (VPs (----%)%)
Departmental Managers (Departmental Managers (----%)%) Shopfloor (Shopfloor (----%)%)
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Measuring Safety
Program Compliance:Program Compliance:
Measure actual over expected #Measure actual over expected # Work observations (Work observations (----%)%)
Risk assessed & reduced (Risk assessed & reduced (----%)%)
Accident investigations (Accident investigations (----%)%) Increase in preventative incidentIncrease in preventative incident
reporting (reporting (----%)%)
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Year Over Year Results
What gets measured gets doneWhat gets measured gets done
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Work Observations
% Score actual / expected
28
40
55
7162
94
131
66
146
0
20
40
60
80
100
120
140
160
1
%S
1996 1997 1998 1999 2000 2001 2002 2003 2004
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Annual checks
Two Internal AuditsTwo Internal Audits
One external auditOne external audit
Workplace risk assessment of newlyWorkplace risk assessment of newly
introduced machines / activities / jobsintroduced machines / activities / jobs
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Bottom Line
Safety Performance score ofSafety Performance score of
----%%
A single meaningful number that provides aA single meaningful number that provides a
focus on making safety a high priorityfocus on making safety a high priority
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Strengthen & Sustain
Safety CultureBuilding on Success EventBuilding on Success Event
Celebrate leading indicator resultsCelebrate leading indicator results
Invite all executives & directorsInvite all executives & directors Team member presentationsTeam member presentations
Appreciation : certificates / giftAppreciation : certificates / gift
Publicize companywidePublicize companywide
Train & reTrain & re--traintrain
Yesterdays trainee, todays trainerYesterdays trainee, todays trainer