EEI Leading Indicator Study

Presented to the Fall 2013 Safety

Committee Meeting

A task team was formed to ascertain if there were any notable

Leading Indicator “best practices” in the utility industry

Measuring Safety performance

Historical focus has been on lagging metrics (e.g., OSHA Recordable

Incident Rate (RIR), Days Away Restricted Transfer (DART) rate)

Proactive metrics, that correlate to “improved safety

performance”, have been elusive

Industry is transitioning its original focus by:

Proactively identifying and measure activities that reduce injuries

Blending the use of leading indicators with lagging indicators as a

component of safety performance measurement

Goal: EEI Executive Committee requested a case for

change

Work with the industry to determine best practices

The LI task team was formed and chartered following

the Spring 2013 Safety Committee meeting

Chuck Kelly, EEI

Blakely Smith, SCE

Gary Hatcher, AEP

Keith Williams, Intec

Larry Pena, SCE

Paul Mackintire, Northeast Utilities

Ray Kelly, DTE Energy Co.

A survey was developed and sent to 65 companies

across the utility industry; 47% responded

Methodology:

Examine the practices of EEI member utilities

Develop a standard survey and launch through EEI’s Safety Mailing List

Performed a qualitative analysis of the top decile and top quartile respondents

Identify how “industry leaders” utilize leading indicators

Validate the relationship between leading indicators and improved safety performance ( e.g. RIR, DART, Loss Time (LT), and Severity)

Survey Response Rate

30 EEI members (<50 % of the membership)

Companies responding to the survey were from

across the performance spectrum

Surv

ey P

art

icip

ants

DA

RT

rate

s

Black = Industry Rates

Red = EEI Leading Indicator Study Participant Rates

Top

Decile

.22

Top

Quartile

.41

3rd

Quartile

1.13

2nd

Quartile

.78

Overall, 90% of the responding companies are using

Leading Indicators to mitigate risk exposure

Leading Indicator facts

Of those who responded to the survey: 90% are tracking leading Indicators

50% who use leading indicators report reduced DART rates

29% have less than 3 years of experience tracking

25% have more than 8 years experience tracking

A majority of companies who use leading indicators as a metric are just reporting quantity

Reporting leading indicator results to employees is important to those who are tracking them 79% report at the individual organizational level

64% metrics are communicated to all management

Statistical analysis demonstrates a strong correlation

between leading indicators and improved DART rate

Top five leading indicators tracked:

1. Safety Observations

2. Safety Training

3. Near Misses/Close Calls

4. Safety Awards and Recognition

5. Area Audits/Safety Walkthroughs

Noteworthy fact - Safety Work Orders (SWO) are not in the top five, but show positive correlation with safety performance

Factor Analysis indicates that several groupings of Leading

Indicator activities are driving top DART performance

These five factors which account for 71 % of the

variance in DART

1. Engagement in Safety Activities (Tailboards, Safety

Observations and Audits)

2. Proactive Health ( Preventative Health, Work Readiness)

3. Follow through on safety issues (Hazard resolutions, CAPs,

Behavior Based Safety, and Training)

4. Leader Engagement ( Leader Engagement & Safety Teams)

5. Trust and Follow through(Near Misses, Safety Work Orders,

Safety Culture Perception, Recognition, and Grassroots

Safety)

Adapting Heinrich’s Pyramid: Leading Indicators

provide valuable clues to reduce injuries

Lagging

Indicators

Leading Indicators

Fatalities

Recordable Injuries

Near Misses

Precursors

Fatalities

Recordable Injuries

Near Misses

Precursors

From survey responses, 100% of the Top Decile performing

companies reported positive impact from using L. I.

Range of Safety Performance: DART -- .36 - .41

RIR -- .69 - .82

Top three most frequently used leading indicators: Observations

Training

CAPs

Range of Maturity: 1- 8 years

100% reported that leading indicators have reduced their OSHA and DART rates and improved their safety culture

Top Decile companies leverage safety Observations,

Training and CAPs to improve their performance

Safety Observations Used in their safety metrics

Measure both quantity and quality

Have a software solution for safety observations

100% reported safety observations as their number one leading indicator for injury prevention

Training Have software solutions

Training, just for compliance is not as good at preventing injuries as a more balanced job/safety curriculum

67% reported training as one of the top three for injury prevention

CAPs 33% reported CAPs as one of the top three for injury prevention

Similar to the Top Decile companies, the entire Top Quartile

grouping leverage Safety Observations and Training

Range of Safety Performance:

DART -- .42 - .66

RIR -- .94 - 1.77

Top five most frequently used leading indicators:

Observations

Training

Awards and Recognition

Leader Engagement

Safety Culture

Range of Maturity:

1-10 years

50% reported that leading indicators reduced their DART and shift their safety culture

80% are tracking the following:

Safety Observations

Training

Awards and Recognition

Leadership Engagement

Safety Culture Perception

40% considered training and safety culture perception

to be one of their top three indicators for injury

prevention

From survey responses, 80% of the Top Quartile performing

companies have a specific focus on improving safety culture

Although Leading Indicators drive both lagging indicator

metrics, some correlate differently

Metric Most

Frequent

Leading

Indicators

Communication Report

Level

Leading

Indicators

associated

with better

performance

RIR Observations,

Training, Near

Misses

All management OU level TBD

DART Observations,

Training,

CAPs

All employees OU and

Site level

BBS, Safety

Team

Effectiveness,

Near Misses,

Audits, SWOs

*Red Font indicates key differences in companies with

the top RIR performance versus top DART performance

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Common facts for the Top Decile companies

(Recordable Incident Rate (RIR) .54 - .82)

Top three most frequently used leading indicators:

Safety Observations

Training

Near Misses

Range of Maturity: 1-8 years

66% reported that leading indicators have reduced their DART, OSHA, and improved their culture

100% report leading indicators at the organizational level and communicate the metrics to all management

Safety Observations Used in the safety metrics

Have a software solution for safety observations

Include Behavior-Based Safety in Observation Program

Training Have software solutions

67% reported training as one of the top three for injury prevention

Near Misses 67% report near miss as one of the top three for injury

prevention

A deeper dive into the most used leading

indicators for the Top Decile (RIR)

Safety Observations

Eliminate incidents and injuries by observing people as they work, communicating with them to correct any at risk behaviors

Provide a strong management commitment to safety expressed through demonstrated concern for worker well being.

Provide an effective employee communication, feedback, and involvement process designed to motivate management and employees to interact with one another in a safe “humanistic” way.

Establish consistency of safety standards and policies.

Observation Performance Summary

0

20

40

60

80

100

Improper Tool

Hand Safety

ErgonomicsTrenching

% S

afe

SYSTEMS AND

METRICS

OBSERVE WITH

FEEDBACK

Behavior Base Safety Observations

WAYT?

What Are You Thinking?

ABC’s

Antecedents

Behaviors

Consequences

Why Invest in Training?

Compliance with a skilled, qualified and trained workforce is the law

Our Employees are our most valuable assets

We have the best experts, knowledge and understanding of our

business to develop the future workforce

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“What’s worse than training your workers and losing them? Not

training them and keeping them.”

Zig Ziglar

The Value of Training

Training improves employee safety & performance …in quality, quantity, speed, problem solving, attitude, ethics, motivation, leadership, and communication

Performance problems occur because employees

Don’t know what they’re supposed to do,

Don’t know how to do it, and/or

Don’t know why they should do it.

Targeted training should be identified during engagements with customers

This Helps!!

OSHA RULING December 12, 2008

Failure to provide training to each covered employee will be a separate

violation. In this rulemaking, OSHA amended its standards to add language

clarifying that the Personal Protective Equipment (PPE) and training

requirements impose a Compliance Duty to each and every employee

covered by the standards and that noncompliance may expose the

employer to liability on a per-employee basis

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Near Miss Program

1. Define the term: Example of a Definition from OSHA

NEAR MISS - Near misses describe incidents where no property was damaged and no personal injury sustained, but where, given a slight shift in time or position, damage and/or injury easily could have occurred.

II. Communicate a “responsibility of discovery as part of the program Example of “Find it fix it”

Report it anyway

III. Track all near misses (System)

IV. Resolve opportunities to improve through Corrective Action Plans (CAPs)

V. Communicate…………No….Over communicate

P.S. OSHA is ok with an incentive program around this

What facts are common for the remaining Top Quartile

(RIR - .94 to 1.77)

Top three most frequently used leading indicators:

Safety Observations

Training

Near Misses

Range of Maturity:

1-10 years

80% report leading indicator metrics to all employees

75% are collecting leading indicator data at the organizational and local/site levels

A deeper dive into the most used leading indicators for

the remaining Top Quartile (RIR)

100% of the remaining top quartile are tracking the

following:

Training & Near Misses

80% of the remaining top quartile are tracking the

following:

Safety Observations & Audits

60% of the remaining top quartile are tracking the

following:

Behavior Based Safety, Corrective Action Plans (CAP), Recognition and

Awards, Preventative Health Account, Tailboards, Safety Culture

Perception

For the utilities in this analysis, it’s clear that Leading

Indicators contribute toward a reduction in DART and RIR

Safety Observations are the most frequently used and also the most effective in injury prevention

Success of safety observation programs is enhanced by a behavior-based approach

Training curriculums based solely on compliance does not have the same impact on safety performance as a well rounded safety/technical approach

Top performing companies track and measure quantity and quality aspects of their leading indicators

Given the analysis, its recommended the EEI Safety

Subcommittee should communicate the findings more broadly

Develop a set of industry “best practices” with emphasis on the

top five “most effective” leading indicators as identified in the

survey

Deploy an electronic system solution; they are improving and

show they enable Leading Indicator use

Create a uniform reporting solution, from organization head level

to employee level

Maturity supports DART rate improvement; be patient!

Enhance training curriculums to go beyond compliance; include

critical skill refresher and enhancements

Special Thanks…

Southern California Edison

William Messner

Larry Pena

Blakely Smith

Intec

Keith Williams

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