Measuring Safety Performance

With Leading Indicators

A N Nachar
Measuring Safety Performance
What are you doing to measure your
organization’s safety performance?

Today’s objective: Understand the concept of –

leading performance indicators

Versus
lagging performance indicators
Measuring Safety Performance

“What doesn’t get

measured just
doesn’t get done”
Measuring Safety Performance
Lagging indicators
(the traditional approach to managing safety)

 Injury/ ill statistics

 Workers’ compensation data

“illogical to count things you don’t

intend to happen”
Measuring Safety Performance
Leading performance indicators-
 What do we intend to happen?

 Measure the presence rather than

absence of safety
Measuring Safety Performance
Sample leading safety indicators
 % of scheduled safety inspections completed
 % of scheduled Job Observations completed

 % of new employee workstations evaluated

 % of safety related work orders completed

 % of safety trainings completed

In every month
Leading & Lagging
 Leading indicators
 positive indicators

 Compliance

 Risk reduction, Injury reduction

 “what was made to happen”

 Lagging indicators
 Negative indicators

 Non-compliance

 Number of accidents, man-hours lost etc

Leading Indicator

Due Diligence to Show That:

 Safety management system is working
 Preventative “Make it Happen” safety
objectives are being taken
 Improve assurance that lagging indicators
will remain low
Leading Indicator

 Set a standard of performance

 Measure that performance

 Leading indicators are a measure of

performance
Measuring What Matters Most
What matters most?
 Risk
 Commitment
 Sustenance
What should we measure?
1. Risk
2. Commitment
3. Sustenance
Principles of Setting and
Measuring Leading Indicators
 Measure against standards (programs & procedures)
 Objective & verifiable by auditors

Place on corporate agenda

 Corporate goals to include leading indicators
 Report to CEO & BOD
 Review with CEO & BOD
 Tied to pay for performance process
Checks and Balances
To ensure the system works “honestly”
 Joint safety committee
 Internal auditors – union/ management
 External auditors
 Safe workplace association
 Regulatory agency audits
 SMS - knits it all together
Safety Management System
 Policy stating commitment
 Demonstrate commitment by putting leading
indicators in corporate strategic plan
 Assessment of risks
 Setting safety standards via
 Programs & procedures

 Provide training on standards

 Clear - two way communication
 Evaluating performance of:
 Individuals, programs & safety system

 Annual performance report on strategic goals

Measuring Safety At Horizon
“Make it happen” safety objectives:
Scoring system:
 Leadership 20%
 Program Compliance 30%
 Training + application of skills 20%
 Program improvement 20%
 Lagging indicators 10%
Total score 100%
Score  Determines management bonus
Measuring Safety
Measuring leadership:
 Safety programs reviewed by –
 BOD (--%)

 VPs (--%)

 Departmental Managers (--%)

 Shopfloor (--%)
Measuring Safety
Program Compliance:
Measure actual over expected #
 Work observations (--%)
 Risk assessed & reduced (--%)
 Accident investigations (--%)
 Increase in preventative incident
reporting (--%)
Year Over Year Results

What gets measured gets done

Work Observations
% Score actual / expected
160 146
140 131

120
94
100
% Score

71 66
80 62
55
60
40
40 28
20
0
1996 1997 1998 1999 2000
1 2001 2002 2003 2004
Annual checks
 Two Internal Audits
 One external audit
 Workplace risk assessment of newly
introduced machines / activities / jobs
 Bottom Line

Safety Performance score of

--%

A single meaningful number that provides a

focus on making safety a high priority
Strengthen & Sustain
Safety Culture
Building on Success Event
 Celebrate leading indicator results
 Invite all executives & directors
 Team member presentations
 Appreciation : certificates / gift
 Publicize companywide
 Train & re-train
 Yesterday’s trainee, today’s trainer