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John Leyland BA, DOHS, DipAdEd, CUSA, CRSP
CSSE BurlingtonOct 1, 2009
Measuring Safety Performance With Leading Indicators
Presentation
Business case
Examples you can use
Generate some discussion
Why this is important
Financial Business CaseLeading indicators measure effort to:
Reduce
Risk
Reduce
Injury
Reduce
Cost
Increase
Profit
Financial Business CaseCost in dollarsDirect costs $10,000Indirect costs $40,000Total costs $50,000Cost in Lost OpportunitySales to offset costs $625,000(cost ÷ profit margin (8%) = gross sales required to offset costs)
http://www.wsib.on.ca/wsib/wsibsite.nsf/Public/BusinessResultsHealthSafety
Reporting costs doesn’t change the future Managing safety performance does
Due Diligence Business CaseManaging safety performance shows that
Company actively manages safety through:LeadershipProgram assessment and improvementTraining
Safety management system is working through:External / internal auditing
There is an active internal responsibility system
Performance Business CaseAll well managed programs:
Set expectations for performanceEstablish goals to achieve performanceMeasure performanceEvaluate resultsAssess ongoing needsBuild new goals to continually improvement
Safety performance indicators accomplish the above
Leading Indicator PrinciplesMeasure against standards - program /
procedureObjective measurement verifiable by auditorsSurveys backed up by external auditCorporate plan includes safety performance
goalsPerformance Reported to:
Management, JHSC and staffBoard of Directors
Part of performance paySafety Management System nits it all together
Checks and BalancesExternal audits
Interviews reinforce internal performance data
Document review corroborate evidenceInternal auditsJHSC
Labour / management teamTransparency of performance activities e.g.
inspections
Building Blocks for ExcellenceActive Commitment from
Board of DirectorsCEO / executivesAll levels of management and workersUnion
Build capacity for continuous improvementH&S resourcesSafety management systemTeam approach
Celebrate performance achievementsMeasuring what matters most
Measure What Matters MostWhat matters most ?Preventing injuries by reducing risks
What should we measure ?Risk reduction activities
Leading indicators - Safety performance
Advantages of Team ApproachTeams include people beyond JHSCDevelopmental opportunity for team members
Assessment & Auditing skillsDevelop policy / procedurePlanning skillsCommunication and presentation skillsTeam building skills
Breaks down workplace barriers Builds sense of community within volunteersBuilds commitment to safety and pride of placeStrengthens IRS (internal responsibility system)
Safety Management SystemPolicy - commitmentAct on commitment with safety performance
goalsSafety performance in strategic planIdentify and rank risks
Programs, procedures & forms to manage riskTraining to develop knowledge, skill and abilityClear communicationsEvaluation of performanceReport outcomes & re-evaluate needsCelebrate successReset goals
Formalized SMS18001 / CSA Z1000Plan, Do, Check and ActIntegrated system pulling together variety
of impacts on safety and healthOverlays policies, procedures and forms
onto leading indicator strategyReinforces measuring safety performance.
Building Performance ExcellenceBenchmark your starting point
Determine performance to be measuredEstablish time frame for measurementMeasure progress
Broad based benchmarksSafety management system auditSafety cultureLegal Compliance
Establish a plan based on needsActive leadershipTeam based programs
SMS Audit as Safety PerformanceBenchmark safety management system (SMS)Improvement plan based on resultsBenchmark key audit elements
Incident investigationDepartment meetingsInspections / work observations
Established key policies and procedures for above
Involved JHSC and management in policy development – co-operative approach
Measured safety performance on programs
External Audit Outcomes
Audit Progression Highlights1995 – 1998
Department meetingsWorkplace inspectionsIncident reporting
Causes providedRecommendations made Actions taken
Benchmarks establishedTraining providedPerformance reports
provided
Basic programs and performance measures established
Team ApproachMulti departmentalUnion - managementWorked on program;
forms; policy; trainingWellness teamJob planning teamEquipment team
Audit Progression Highlights1998 – 2001 Team Approach Added
Internal Audit TeamLeading indicators on
corporate agendaPart of performance pay
Celebrating success of teams and performanceCulture being
developed
Audit Progression Highlights2001 – 2004 Move to New Plateau
Safety Performance ScoringBalanced Safety Performance Scoring System
Active Leadership 20%Performance Expectations 30%Training & Application of Skills 20%Program Improvement 20%Lagging Indicators 10%
Total Score 100%
Build into performance pay(from E&USA)
Active LeadershipInspections Expectation 4 Executives 16 6 Directors 24
Department Safety MeetingsExpectation
4 Executives 16 6 Directors 35
Total expected 91
% Score based on actual / expected e.g. 89/91 = 98%
with weighting of 10% for overall score = 9.8%
Performance ExpectationsWork observations by management staff
Entered into softwareReported by supervisor, manager and department
Departmental safety meetings (manager responsibility)
Incident investigationsCauses and Recommendations providedFollow-up corrections made
Inspection and safety meeting follow-up actions % completed vs. expected (from software reports)
Wellness activitiesstaff involved in activities; health fair participation
Incident Includes
lost time, medical aid, first aid, motor vehicle, property damage, near misscontractors
Scoring Example for 10 IncidentsOpportunity to provide and complete:
10 causes (+)+ 10 recommendations to improve (+)+ 10 follow-up actions completed (+)= 30 information items expected
If there are 25 information items –Score 25/30 = 83%Weighting of 10% = 8.3%
Program Improvement
External AuditInternal AuditWellness surveySafety culture / climate surveyPolicy / procedure developed
Approved & signedImplementation plans with specific goals
Approved & signed
Score Program ImprovementsDone vs. Not Done = % scoreAudits / Assessments completed on timePolicy and procedure completed and signed% improvement score
Pitfall – changes in audit criteria, scoring system & auditor are out of your control
Audit implementation plan% of specific items completed as per
approved plan
Training and Application of SkillsTraining assessment (score done vs. not
done)Evaluate impact of training (% of target)
KSA’s used on the job? e.g. appropriate eye safety understood after
training(compliance needs management of work)
Specific training needs (target % completed)Driver trainingPPEErgonomic
Lagging IndicatorsFrequency Rate
# LT × 200,000 ÷ hours worked = frequency rate
Severity Rate# days lost × 200,000 ÷ hours worked = severity rate
Vehicle Incident Rate# of MV incidents × 1,000,000 ÷ km driven = MV
rate
Safety Performance ScoringBalanced Safety Performance Scoring System
Actual PossibleActive Leadership 18 20%Performance Expectations 30 30%Training & Application of Skill 17 20%Program Improvement 18 20%Lagging Indicators 5 10%
88% 100%
Single balanced safety performance score = 88%
Value of Leading IndicatorsA number of successes built into score
Audit team resultsTraining team activitiesSpecial project teamsWellness team
Celebrate team efforts – build pride into safetyBuilds culture around safety improvementTeam members build skills and knowledgeRecognition for safety performance &
improvementBuild community of staff involved in safetyTrack performance over time - valuable lessonsLower emphasis on zero injuries
Leading - Lagging Data1995 - 2008
Sustaining PerformanceEmphasis on tangible performance measuresCelebrating team and organizational
performanceBuild on successes
Build a healthy workplaceSustain efforts over long term
Historical improvement shows return on investment in safety
Recognition for teams and individual members
Real rewards for real safety advances
Why Do this ?
Deaths in Ontario (average 308 / year)
Safety Performance Excellence
Adequate resourcesMeasure safety performance with
leading indicatorsActive & visible commitment of
managementTeam approach to building safety
Multi-departmentalUnion / worker involvement
Celebrate success of teamsGrass root leaders
