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AMERICAN SOCIETY OF SAFETY ENGINEERS – ENERGY CORRIDOR

LEVERAGING LEADING INDICATOR DATA TO TRANSFORM EH&S

PERFORMANCE

SEPTEMBER 10, 2015

Quincey JonesSenior Vice PresidentOptimum Performance Solutions

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AGENDA

• Challenges and Key Questions • Client Patterns • Review Client’s Corporate and Site Dashboards • Role of the Safety Management System• Developing & Implementing a Behavioral Culture Audit

Protocol • Our Leading Indicator Model • Summary • Question & Answer

CHALLENGES TO LEADING INDICATOR IMPLEMENTATION

Basic definition across industries remain inconsistent with some using leading, but also process, activities, upstream, heading, positive and predictive.

Lack of agreement on the definitional

issues creates uncertainty and confusion for users interested in translating some of this conceptual knowledge into practice (Near miss – leading or lagging).

Raising the level of awareness about leading indicators among senior management.

Company executives most commonly ask, “How are leading indicators connected to actual EH&S performance on lagging indicators?” Is it based on statistical evidence?

LEADING/LAGGING INDICATORS

Leading Indicators

Lagging Indicators

Cause

Effect

KEY QUESTIONS

Leveraging Leading Indicator Data

1. What does your leading indicator data reflect?

2. Are we safe or lucky?3. How does your organization develop and

implement leading indicators?4. How is the implementation of leading

indicators integrated into your continuous improvement process?

5. When are the leading indicators reexamined?6. Are you utilizing statistical analysis?7. Are you trending results? 8. Does your leading indicators contain a

qualitative component?

CLIENT PATTERNS

1. Most corporate EH&S dashboards focus on lagging indicators.

OPTIMUM PERFORMANCE SOLUTIONS

Client Dashboards

ROOT CAUSE ANALYSIS – NEAR MISS REPORTING

SITE EH&S LEADING INDICATORS

Key Leading Indicators Compliance

• Training• Audits

Engagement• Leadership Support• Participation rate• Job Assessments (Ergonomics, Risk Assessments)

Communication• Shift reviews• Safety concern status reviews• Safety alerts/near miss communications

Recognition and Celebration• Individual• Group

SITE EH&S LEADING INDICATORS COMPLIANCE

• Training %• PL’s provided TTR monthly on safety topics• Sign in sheets turned into nurse• Metric based on % employees trained

• Audits• Hoist – daily check %• Forklift – weekly• Weekly Safety walks• Machine guarding - monthly

CLIENT PATTERNS

2. By examining the corporate or site EH&S leading indicator dashboards, then talking methodology with the teams, we could not determine whether they were safe or lucky.

PREDICTOR OF SAFETY OUTCOMES

Leadership’s Impact

PREDICTOR OF SAFETY OUTCOMES

AT ALL LEVELS (EID,J., MEARNS, K,

LARSSON,G., LABERS, J. & JOHNSON, B. 2012)

Positively Correlated With the

Degree of commitment to safety

Quality of Leader’s

Relationship To Other’s

Perception of Leadership’s

Commitment to Safety

Leader’s Extent of Self Awareness

SAFETY EXCELLENCE REQUIRES

Daily proactive intervention by:

• Line managers

• Supervisors

This proactive intervention is usually a missing link that can only be corrected when the system holds managers, supervisors and executives accountable (Petersen 2000, 19).

LEADERSHIP CHANGE MODEL

Vision

Leadership

CULTURE

Safety

Human Factors

Productivity Quality Customer

Satisfaction

CLIENT PATTERNS

3. Most corporate dashboards did not contain any leadership indicators. The site dashboards contained some leadership indicators, however they were linked to a continuous improvement process.

EXAMPLE OF PERSONAL METRICS LINKAGE

How Jody Trantham Visibly Makes A Difference:• Attend and

contribute to all safety meetings

• Witnesses JSA’s• Performs safety

walkthroughs• Evaluate safety

processes• Encourage safety at

all levels by leading through example

Se-ries1

0

100

200

300

Cumulative Safety Meetings

Attended

Mar ’02 Jan ‘03

Series1

01020304050

Cumulative JSA’s Witnessed

Series1

0

300

Cumulative Safety Walk-throughs Per-

formed

Series1

0

2

4

Safety Processes Evaluated

Mar ’02 Jan ‘03

Mar ’02 Jan ‘03

Mar ’02 Jan ‘03

CORPORATE LEVEL LEADING METRICS

At the corporate level, we worked with some organizations that did track one or two leading metrics and they were:

1. Site visit protocol 2. Near Misses (e.g. with potential for serious

injury or fatality) 3. Audits (e.g., trend audit scores, tracking

overdue audit items, monitoring the speed of closing action items)

4. Noncompliance5. Training (e.g., EHS training for workers,

managers, executives)

Found corporate involvement with annual safety plan review and incident investigations to be successful

LINKING LEADING INDICATORS TO

Cultural Maturity

CULTURAL MATURITY AND LEADING INDICATORS MODEL

2

4

6

8

40 60 80 1000

Tota

l Rec

orda

ble

Rate

Relative Culture Strength

Reactive

Dependent

IndependentInterdependent

Benchmark Best

Interdependent/Generative• Help Others Conform• Others’ Keeper• Networking Contributor• Care for Others• Organizational Pride

Independent/Proactive• Personal Knowledge, Commitment, &

Standards• Internalization• Personal Value• Care for Self• Practice, Habits• Individual Recognition

Reactive• Safety by Natural Instinct• Compliance is the Goal• Delegated to Safety Manager• Lack of Management Involvement

Dependent• Supervisor Control, Emphasis, and Goals• Management Commitment• Condition of Employment• Fear/Discipline• Rules/Procedures• Value All People• Training

DATA SHOWS THAT A STRONG SAFETY CULTURE IS REQUIRED TO ACHIEVE AND SUSTAIN THE BEST PERFORMANCE - ASHLAND

2

4

6

8

40 60 80 1000

Tota

l Rec

orda

ble

Rate

Relative Culture Strength

Reactive

Dependent

IndependentInterdependent

Benchmark BestAshland Inc.

Industry

Interdependent• Help Others Conform• Others’ Keeper• Networking Contributor• Care for Others• Organizational Pride

Independent• Personal Knowledge, Commitment, &

Standards• Internalization• Personal Value• Care for Self• Practice, Habits• Individual Recognition

Reactive• Safety by Natural Instinct• Compliance is the Goal• Delegated to Safety Manager• Lack of Management Involvement

Dependent• Supervisor Control, Emphasis, and Goals• Management Commitment• Condition of Employment• Fear/Discipline• Rules/Procedures• Value All People• Training

PROGRAMS, PROCEDURES AND PRACTICES

Near Miss Reporting

Safety Committee

Training

Behavioral Observations

Job Safety Analysis

Hazard Awareness & Recognition Inspections

Safety Communication

Reward & Recognition

Compensation

Policies & Procedures

Audits

Safety Accountability

Incident Investigation

Contractor Safety Management

Emergency Response Program

Programs, procedures and practices form the safety management system.

Process Safety

Onboarding

Leading Indicators

Human Error

Life Criticals

Safe Work Permits

Safety Work Orders

Information Technology

CLIENT PATTERNS

4. Inconsistent link between cultural maturity, safety management system and leading indicators.

THE DEVELOPMENT AND IMPLEMENTATION OF EH&S LEADING INDICATORS

1. Establish/review multidisciplinary team

15. Reporting and feedback

2. Set/revise EH&S goals & objectives

3. Determine business unit characteristics

9. Define leading indicators

8. Identify leading indicators

7. Precursor analysis

4. Identify all areas of EHS performance

5. Identify & prioritize critical EHS issues

6. Identify & assess current indicator use

14. Act on findings

12. Analyze data

11. Collect data

10. Determine target performance levels

13. Compare actual results with desired outcomes

CLIENT PATTERNS

5. No robust methodology for developing, implementing and integrating leading indicators into a continuous improvement process.

CLIENT PATTERNS

6. Lack of statistical analysis and a qualitative leading indicator component.

LINKING LEADING INDICATORS TO

Safety Management System -

Is the starting point for leveraging leading indicator data

PROGRAMS, PROCEDURES AND PRACTICES

Near Miss Reporting

Safety Committee

Training

Behavioral Observations

Job Safety Analysis

Hazard Awareness & Recognition Inspections

Safety Communication

Reward & Recognition

Compensation

Policies & Procedures

Audits

Safety Accountability

Incident Investigation

Contractor Safety Management

Emergency Response Program

Programs, procedures and practices form the safety management system.

Process Safety

Onboarding

Leading Indicators

Human Error

Life Criticals

Safe Work Permits

Safety Work Orders

Information Technology

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COMPANY LEADERS

EMPLOYEES SAFETY CULTURE

SAFETY DURING A DOWNTURN:

UNCERTAINTY

DISTRACTION

STRESSTASKS

SUMMARY

• Conduct a leading indicator assessment

• Make sure leading indicators are an integral part of the continuous improvement process

• Contact our firm for any research studies or questions

QUESTIONS & ANSWERING SESSION

ANY QUESTIONS?