Measure Safety

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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