Performance Based Safety

Q5 Systems 2005

Q5 is Registered to ISO 9001:2000 CA-1035439

Performance-Based Safety™Practical OH&S Measurement Solutions for the 21st Century

Safety And Health Metrics, including Framework, Tools, Applications,

And Opportunities

Performance-Based Safety Wayne Pardy, Q5 Systems Ltd.

Q5 AIMS performance-based safety measurement software is used by industry-leading companies worldwide, such as. . .


•Q5's core business is the development of audit and assessment software (Q5AIMS) for security, health & safety, ergonomics, quality and environmental management.

•We support our QEH&S software with professional QEH&S management services, training, consulting and management systems services

•Q5 Systems (Q5) has been developing and marketing software globally since 1999.

•More than 400 clients worldwide

Q5 Systems Limited - What we dohttp://www.q5systems.com


Measurement rationale of the layman:

“If You Don’t Know Where You Are Going, Chances Are You

Will End Up Somewhere Else.”

Yogi Berra

Source: Stephen A. NewellSource: Stephen A. NewellORCORC

October 2, 2001October 2, 2001


Criteria for A Balanced Approach

“….measures…should consist of a linkedseries of objectives and metrics that are both consistent and mutually reinforcing.”Robert S. Kaplan and David P. Norton, The Balanced Scorecard

Leading IndicatorsTrailing Indicators Financials




Establishing Performance Measures

Each organization must create and communicate performance measures that

reflect its unique strategy. Dr. Robert S. Kaplin, Harvard

Business School

There is no one right way to do it. Each organization must determine its own "right

way. Dan Petersen:Techniques of Safety Management, 3rd

Edition, ASSE,


Why Measure? Helps define Vision And Mission Statements In

Operational Terms Supports Improvement (continuous or otherwise)

Helps Demonstrate The Value of EH&S Programs and Services In Business Terms

Axiom =“What Gets Measured Gets Done/Managed, What Gets Celebrated Gets Done Well”, etc.

Motivates. . . Provide information, people will react to that information.

Allows performance to be changed/managed


Why measure (continued) Accurately measure effectiveness of risk

reducing objectives achieved. Used to assist in business planning and

performance improvement exercises. Provides opportunity to “re-calibrate”

prevention initiatives. Provides opportunity for feedback. Can be pre-emptive or predictive. ACCOUNTABILITY Are you making an impact, and how do you

know?


Pardy & Associates Survey - 1996

“Rate the Effectiveness of Your Safety System”

Safety Audits Behavior-Based Safety Observations Injury Frequency and Severity Rates Accident and Property/Equipment damage costs Perception Surveys Bench Marking with other companies % Safety Goals Achieved (Strategic Planning) Total Workers’ Compensation Costs Inter-Industry/Competitive Industry Rankings Medical Aid or Disabling Injuries

The survey found a split between trailing (failure) and leading (performance-based ™) indicators. . . But little evidence on “how” this was achieved.


What do we want to achieve?

Assess the current system of workplace measurement

Identifying key areas of measurement Measure workplace “perceptions” toward

safety Determining the appropriate performance

indicators for the safety/risk management system

Effectively and efficiently gathering the data needed to drive continuous improvement


Making The “Business Case”Fear

S&H often isn’t a real money maker Companies will shift focus from human life/well being to dollars and cents

RealityS&H professionals can still keep companies focused on the high moral groundS&H is a good business investment (if implemented correctly!)Quantifying investment/return (or loss) strengthens the moral case




AttitudesAttitudes

(set up conditions, (set up conditions, behavior)behavior)

Leading metrics Trailing metricsLeading metrics Trailing metrics

- Observations- Observations

- Feedback - Feedback loopsloops

- Inspections- Inspections

- Audits- Audits

- Risk - Risk assessmentsassessments

- Prevention - Prevention and controland control

BehaviorBehavior

(action)(action)

PhysicalPhysical

ConditionsConditions

Incident, Incident, InjuryInjury

oror

Near MissNear Miss

- - Perception Perception SurveysSurveys

MetricsMetrics

ProgramProgram

ElementsElements

- Training- Training

- Accountability- Accountability

- Communications- Communications

- Planning and- Planning and

EvaluationEvaluation

- Rules and - Rules and ProceduresProcedures

- Incident- Incident InvestigationsInvestigations

Continuous Continuous ImprovementImprovement




Positive Performance Indicators for OHSNational Occupational Health & Safety CommissionCommonwealth of Australia

Typical Measures

Traditional: Lost time injury, Frequency rate, & % budget to remedy hazard

Transitional: Trend analysis and savings achieved through prevention

Modern: Performance to standards or benchmarks, positive measures of health and safety (ie: number of audits conducted and scores of audits conducted/positive behavioral observations)


The Safety ScorecardUsing Multiple Measures to Judge Safety System Effectiveness

Occupational Hazards - 05/01/2001

1. The effectiveness of safety programs cannot be measured the more traditional factors in successful programs.

2. A better measure of safety program effectiveness is the response from the entire organization to questions about the quality of the management systems, which have an effect on human behavior relating to safety.

"I cannot stress enough the importance of having a clearly identified IH&S program against which goals can be established at all levels of the organization and people held accountable for before-the-fact measures of injury and illness prevention.” (Gene Earnest, former safety director for Proctor&Gamble USA)


LeadingLeading Indicators Indicators (Upstream)(Upstream)

Leading indicators are the performance Leading indicators are the performance drivers drivers that communicate that communicate howhow outcome outcome measures are measures are to be achieved.to be achieved.

Robert S. Kaplan and Robert S. Kaplan and David P. Norton, David P. Norton, The Balanced ScorecardThe Balanced Scorecard




Examples of Positive Outcomes

Improved employee perceptions, morale, etc.

Improved productivity Improved product quality Better employee retention,

recruiting Improved customer

perception/satisfaction


Trailing/Downstream (failure) Metrics/Indicators

Definition: S&H outcomes that result from injury or illness-related events or

exposures in the work environment. These outcomes may be positive or negative, depending upon the level of safety

and health performance (perception). Trailing measures not only gage performance,but are critical for focusing S&H

management system improvement efforts.


Examples of Negative/Failure Outcomes Fatalities OSHA Injury/Illness Data (freq./severity, etc.) Workers’ Compensation Data Production Downtime Litigation Expenses Labor/staff Replacement Property Loss Fines and Penalties Absenteeism


Leading and trailing S&H metrics assess functioning of people, programs, and processes

Financial metrics answer:

What contribution does S&H make to the “bottom line”?

What is the financial impact of S&H decisions?

Goal of Financial Metrics




Consider - BHP Minerals Benchmarking Study- 1995

“Best In Class Characteristics”

A strong management commitment, reflected by a clear corporate policy statement, and the application of a consistent safety system. The use of select experts at the managerial level to strategically target safety improvement initiatives

A close relationship between staff safety professionals and senior management

Requirement of ‘quality’ safety performance as a condition of employment for managers, supervisors and employees

Including safety in performance evaluations for managers, supervisors and employees

Clearly defining lines of responsibility with respect to safety Establishing safety goals and targets Conducting safety audits


Consider: Variables that consistently relate to lower injury rates

Health & safety training of OH&S Committee members

A participatory management style and culture that includes:

1. Empowerment of workers in key decision areas2. Autonomy and control over work3. Encouraging the long term commitment of the workforce4. Good working relationship between management and workers An organizational philosophy on OH&S which

includes1. Delegation of safety activities to workers2. Active participation of top management3. Regular safety audits

Institute for Work & Health, Toronto


Monitoring at risk behavior and worker/work practices Having continuous and regular safety training Employee health screening Regular evaluation of occupational hazards Good housekeeping, safety maintenance and controls

on machinery

Does your safety management system characterize these variables?

Better still, how do you measure them?And even better still, if you measure, how do you evaluate their

effectiveness?


What is a Safety Management System?A comprehensive, integrated system for managing safety that sets out:

Specific safety/performance objectives. Systems and procedures by which these

objectives are to be achieved. Performance standards that are to be

met. The means by which adherence to these

standards is to be maintained. An assessment of the success of the

implementation of your SMS.


Some structured management systems - examples

*ISO 9001 (INT)

*ISO14001(INT)

*OHSAS 18001(INT)

*ANSI Z10 (US)

*OSHA VPP (US)

*CSA Z1000 (CAN)

*ILO Guidelines for OH&S management systems (INT)

*Safety MAP (AUS)

*Home grown/in-house developed SMS


Typical safety management system approach

Program development Auditing Measuring performance Evaluating outcomes Managing based on outcomes


Typical safety management system requirements

Management structure Accountability Data collection and analysis

system Follow up


Benefits Flexible and allows for different

management styles Feedback can be swift/immediate Measure presence rather than

absence of safety


Regular monitoring/measurement activities can include

Obtaining information on relevant aspects of safety performance to check that objectives and performance criteria are being met

Monitoring the use of procedures and checking of safety systems and equipment

Identifying non compliance with the requirements of the safety management system, investigating them and taking appropriate corrective action

Maintaining a system of records which demonstrates compliance with the safety management system


How did we get here?Who do we have to convince to get where we want to go?

Measurement of the performance of the OH&S management system consequently requires assessment of the process involved in the management system, rather than measurement of outcomes (such as incident and accident rates)

“Management of outcome instead of improvement of the system is destructive and is considered tampering” (Motzko, 1989)

Process safety management approaches to OH&S performance measurement rely on continual monitoring of indicators of performance of the relevant processes, and continuous improvements in these processes


Basic Safety Performance Improvement Steps

1. Undertake a strategic planning session(s) to determine what you want to measure, why, and how that information will be used

2. Structure and develop your performance measurement plan. . . what will you track and how will you track it?

3. Establish measures, targets or other performance benchmarks or standards

4. Measure, evaluate, react, feedback Determine improvements or recognition

opportunities


The Top 8 Challenges of Performance

Management/Measurement Linking pay to performance Measuring organizational and employee results Using competencies in a performance management

system Performance management tools to improve

organizational effectiveness Supporting your culture with performance

management Linking reward systems to performance management Developing and implementing a performance

management system Aligning people with goals and corporate strategy

Survey by Linkage, inc., 1999


People get paid to accomplish results

Measure results, not “activities” (quality)

Measurement must be visible (Q5:Liberty example – cleanup of World Trade

center)

Measurement must be kept current Measurement provides feedback


How do you measure safety? Don’t just count injuries and illnesses

Kyle B. Dotson ISHN 04/30/2001

Focus on the effectiveness of the upstream processes put in place to control risk

There’s power in measuring the process rather than just the results (defects, injuries)

This means measuring the effectiveness of management systems put in place to identify, assess, control, and continuously improve the risk profile of an organization


Measuring “Culture”

Kyle B. Dotson ISHN 04/30/2001 Use an annual safety climate

survey to measure the perceptions of your workforce

Measure the number of near-miss, unsafe condition, and unsafe behavior reports completely addressed in a positive manner

Measure the quality and quantity aspects of your management system.

Percent implementation of a comprehensive safety and health system is an excellent leading indicator.

Put safety goals into the executive compensation system for your company.

Be sure that safety is a factor in all supervisor performance evaluations. Make sure that injury rates and proactive indicators are included


Association of American Railroads study

Bailey, C., Using Behavioral Techniques to Improve Safety Program Effectiveness, Association of American Railroads, Washington, 1988.

The effectiveness of safety efforts cannot be measured by traditional audit criteria.

The effectiveness of safety efforts can be measured with surveys of employee (hourly to executive) perceptions.

A perception survey can effectively identify strengths and weaknesses of elements of a safety system.

A perception survey can effectively identify major discrepancies in perception of program elements between hourly rated employees and level of management.

A perception survey can effectively identify improvements in, and deterioration of, safety system elements if administered periodically.


The Scorecard Approach The trend today is toward multiple measures to assess

safety system effectiveness

These usually include at least a balance of 4 measures:

1. The accident record 2. The audit 3. Perception survey

results 4. Behavioral findings

(safe vs unsafe work related behaviors


Navistar International Corporation http://www.navistar.com

incident frequency rate, lost-time case rate disability costs percent improvement in safety

performance actual health care costs absenteeism short-term disability long-term disability.


Kodak http://www.kodak.com

Kodak sets goals and measures in seven areas: lost time, plant operations matrix (percent to goal) employee surveys assessment findings integration matrix vendor selection "best in class" (a benchmark metric).


The National Safety Council http://www.nsc.org

suggested "performance indexing,"

number of team audits

process safety observations

employee attitude ratings

required safety training

safe acts index management audits


Establishing your SPMS

Leadership Accountability Collaboration Define Organizational Processes Measurement Resources/Documentation Data Collection


Management CommitmentISHN – June 2005

# of safety presentations to senior mgmt.

% of safety goals/objectives that incorporate safety

% of purchasing contracts that include safety stipulations

Measurement Alternatives


Employee Participation # of behavior-based observations # of safety suggestions # of safety committee

projects/successes


Training & Education # of training sessions % of training conducted on time % of employees trained in

CPR/First Aid (or whatever topic you desire)


Compliance Incidence rate # of OSHA citations Audit findings of non-compliance


Hazard Prevention/Control Incidence rate Workers’ comp claims # of inspections performed


Culture # of safety suggestions # of safety suggestions

implemented Average time to act on safety

suggestions # of behavior-based observations # of PPE reminders


Practical SPM options

Reference the following safety performance measurement options for performance measurement opportunities for your performance-based safety initiatives.


1. Safety Objective Setting:

Safety objectives in place Safety objectives reviewed

periodically Safety objectives are being met Safety objectives shared with

employees Safety objective are both statistical

(target) and performance (activity) based


Incident Investigation MeasuresIncident Investigation Measures

Question. Are incidents being investigated in a timely Question. Are incidents being investigated in a timely fashion? fashion?

MeasureMeasure::

– Average time from incident notification to Average time from incident notification to investigationinvestigation

Question. Are the results being acted upon in a timely Question. Are the results being acted upon in a timely fashion? fashion?

MeasuresMeasures::

– Average time from incident investigation to hazard Average time from incident investigation to hazard abatement abatement

– Completion rate of recommendations Completion rate of recommendations

– Average age of outstanding recommendationsAverage age of outstanding recommendations


2. Accident Investigation:

Investigation completed on time Investigation identified the cause(s)

of the accident Prevention strategies to prevent

recurrence identified Prevention strategies implemented,

or in the process of being implemented


3. Joint Health and Safety Committees

Committee(s) meet as required Minutes are posted in the

workplace as required Equal representation of worker and

management representatives Follow up arising from the meeting Follow up been completed, or in

the process of being completed


4. Inspection and Maintenance

Inspection/maintenance schedule in place Schedule being followed Inspection/maintenance procedures

identify deficiencies or compliance Inspection/maintenance deficiencies being

followed up, or compliance recognized Follow up completed, or in the process of

being completed


5. Safety Meetings

The agenda been posted prior to the safety meetings

Adequate topics have been prepared/available for the safety meeting

Current safety performance been communicated/updated to staff at safety meeting

Follow up from the safety meeting has been completed, or in the process of being completed

Schedule has been developed for safety meetings


6. Safety Meetings

The agenda been posted prior to the safety meetings

Adequate topics have been prepared/available for the safety meeting

Current safety performance been communicated/updated to staff at safety meeting

Follow up from the safety meeting has been completed, or in the process of being completed


7. Personal Protective Equipment

Personal protective equipment needs been identified

Appropriate personal protective equipment available for the job task

Appropriate personal protective equipment is used as required for the job task

Personal protective equipment is maintained appropriately

Personal protective equipment is stored properly when not in use


8. Hazard & Risk Analysis

Jobs are assessed and evaluated for risks and hazards

Standards are developed for risk management

Risk management is used in job training Risk management is used in job

planning Employees assist in the identification of

job risks


9. Fall Protection

Falling risks have been evaluated, using hazard and risk analysis

Fall protection standards are in place Fall protection equipment is available Fall protection equipment is being

used as required Fall protection equipment is properly

stored and maintained


10. Performance Standards - Managerial

Standards for managerial safety activities have been defined

Standards define frequency of safety activities

Standards define responsibilities and accountability

Standards define how managerial safety performance is to be measured

Performance standards are evaluated with each managerial employee


11. Emergency Response

Emergency response plans in place Emergency response plans address

risks identified in hazard & risk analysis

First aid and CPR training needs identified

First aid and CPR training conducted as required


12. Regulatory Compliance System

Regular assessment of regulatory compliance is conducted

Regulatory compliance issues are discussed at all management meetings

Managerial staff get regular updates on regulatory compliance

Managerial staff receive instruction on due diligence issues


13. Pre-Work Planning (“tool box” talks)

Pre-work plans are completed as required

Key risk factors are identified and minimized through the pre-work plan

Job was completed as per the pre-work plan

Pre-work plan was approved by supervisor on-site


14. Safe Behavior Observation System

Behavior observation conducted as per company standard

Employees understand the logic and rationale of the behavior based approach

Safe behaviors noted and recognized for positive reinforcement

At risk behaviors noted and addressed Behavior based system evaluated for

effectiveness on a regular basis


11. Emergency Response

Emergency response plans in place Emergency response plans address

risks identified in hazard & risk analysis

First aid and CPR training needs identified

First aid and CPR training conducted as required


12. Regulatory Compliance System

Regular assessment of regulatory compliance is conducted

Regulatory compliance issues are discussed at all management meetings

Managerial staff get regular updates on regulatory compliance

Managerial staff receive instruction on due diligence issues


13. Pre-Work Planning (“tool box” talks)

Pre-work plans are completed as required

Key risk factors are identified and minimized through the pre-work plan

Job was completed as per the pre-work plan

Pre-work plan was approved by supervisor on-site


14. Safe Behavior Observation System

Behavioral observation conducted as per company standard

Employees understand the logic and rationale of the behavior based approach

Safe behaviors noted and recognized for positive reinforcement

At risk behaviors noted and addressed Behavior based system evaluated for

effectiveness on a regular basis


16. Contractor Safety Plan and Compliance

Contractor safety plan defined for project

Safety expectations of contractors defined and shared with contractor

Contractor performing project in compliance with contractor safety plan

Good compliance recognized Deviations corrected


15. Contractor Safety Plan and Compliance

Contractor safety plan defined for project

Safety expectations of contractors defined and shared with contractor

Contractor performing project in compliance with contractor safety plan


The Challenge

“If you always do what you’ve always done, you’ll always get what you’ve always got”