METRIC DRIVEN INCENTIVES - AGC...METRIC DRIVEN INCENTIVES One Member’s Approach to Safety Excellence James M Decker, CSP, CESSWI ... Deming’s . Optimizing the System ... Criteria

METRIC DRIVEN INCENTIVES

One Member’s Approach to Safety Excellence

James M Decker, CSP, CESSWI Director Environmental Health &

Safety

Defining the Obvious

Reward and Incentive Programs are Ineffective –

Even Harmfull

“To many this will come as a shock. Reward, incentive, motivational and merit programs are

sincere, well-intentioned efforts to recognize the good that people do. How could they be the

wrong thing to do? How could they be ineffective and even harmful!” (Alfie Kohn)

http://curiouscat.com/management/alfie.cfm

Safety Programs vs. Safety Systems

• What’s the difference?

• What are the components of a successful safety program?

• What are the components of a successful safety system?

• Which works best for an effective incentive program?

The Most Important Definition

A WELL

“ESTABLISHED”

SAFETY PROGRAM

IS JUST THE BEGINNING

FOR AN INNOVATIVE PROGRAM

TO BE SUCCESSFUL

Important Definitions

• “Incentive” – noun - something that incites or tends to incite to

action or greater effort, as a reward offered for increased productivity.

– adjective - inciting, as to action; stimulating; provocative.

• “Program” – noun - a plan of action to accomplish a specified end:

a school lunch program.

– verb - to cause to absorb or incorporate automatic responses, attitudes, or the like; condition.


• “Lagging indicator” – Lagging indicators confirm long-term trends,

but they do not predict them.

• “Leading indicator” – A measurable economic factor that changes

before the economy starts to follow a particular pattern or trend.


• “Metric” – noun - standard of measurement

• “Drive[n]” – verb - to set or keep in motion or operation

Effective Safety Incentive Program

• What is effective?

• How is effectiveness measured?

• How do employees feel about the program?

• Where does management fit in the program?

• Why does the program bring value?

Incentive Paradox?

• Reading for pizza’s program

• Welfare

• Stimulus

• Paycheck

• Other examples?

Blach Construction Case Study

• Superintendant Safety Incentive Program (SSIP)

• Raffles Audit

• Spot Awards

• Project Safety Award

• Supervisor Safety Award (quarterly)

Deming’s

Optimizing the System

• Hoshin Planning

• Continuous improvement process

• Volunteer Protection Program

Measuring?

• Why Measure?

– Subjective

– Objective

• Historical outcomes

• Desired outcomes

Safety Excellence

• Consultants

• Safety Management – No safety process

– Compliance driven

– Stellar performance driven

• Operational inclusion – Safety

– Quality

– Production

Why Safety?

TO PROTECT YOU;

FROM YOU;

INSPITE OF YOU!

Balancing Safety Excellence

• The scales must be off

WORKER

MANAGEMENT

Comply/Conform Work/Don’t Work

IIPP/Safety Program Funding Policies Inspections/audits Regulatory Compliance Procedures Incident investigation Performance review Training PPE Work Comp Incentives RCA

Safety Management

• The basic safety program – No established process

– Poor safety performance

• Compliance safety program – Minimum standards

– Cop mentality

• Innovative safety program – Leadership

– Organizational culture basic compliance innovative

Safety Excellence

Motivation or Inspiration?

• Motivate – The greatest management conceit is that we can

"motivate" people. We can't. Motivation is there,

inside people. (Peter R. Scholtes)

– Pay raise or pay deduction

• Inspire

– Remove de-motivators

– Focus on improving the process

– Focus on customers

Blach’s Plan

• Plan

– Eliminate the SSIP

– Establish a Safety Development Team

– Identify the safety drivers within Blach

– Prioritize desired outcomes

– Develop game plan for implementation

– Set a target date for implementation

Blach’s Implementation

• Do

– 3 Phase program

• Phase 1

– Spot Award

• Phase 2

– Project Safety Award

• Phase 3

– Individual Safety Award

Blach’s Study

• Study

– Scorecard

– Metrics

– Lessons learned

../incentive updates/incentive program survey master template.xls

Blach’s Action

• Act

– Go/No-Go

– Continuous improvement

Blach’s Success

• Team environment

• Safety as an operational function

• Cross training (STS, 30/10-hour OSHA)

• Online reporting

• Less adversarial

The Take Away

This takes hard work and true leadership.

Don't waste any more time or energy on perpetuating myths and pretense.

Get on with it!

Element Measures (sub-elements) % max Score

Total Score All Elements 100% #REF!

Project Planning/Implementation 15% #REF!

1. Kick-off meeting 6% 0%

a. Scheduled and conducted 3% 0%

0-3

b. Project Team present (PX, PM, PS, PE, PC, GS, DS, COO) 3% 0%

0-3

2. Pre-Construction Meeting (w/Subs) 6% 0%

a. Scheduled 3% 0%

0-3

b. Project Team present (PX, PM, PS, PE, PC, GS, DS, Foreman) 3% 0%

0-3

3. Documents submitted (MPS checklist, Scope of work/JHA's, Chemical Inventory) 3% 0%

a. Prior to start of work 3% 0%

0

1

2

3

BCC Project Incentive Program

Notes:

Notes:

(0) - Not Scheduled, not conducted

(1) - Scheduled less than 2 weeks from start of project

(2) - Scheduled within 3 weeks of project start and conducted

(3) - Scheduled and conducted more than 3 weeks from start of project and

(0) - No participation

(1) - PX, PM, PE only

(2) - PX, PM, PS, PE, PC, GS only

(3) - PX, PM, PS, PE, PC, GS, DS, COO, Foreman

(0) None submitted

(1) Some submitted

(0) - Not Scheduled, not conducted

(1) - Scheduled less than 2 weeks from start of project

(2) - Scheduled within 4 weeks of project start and conducted

(3) - Scheduled and conducted more than 4 weeks from start of project and

conducted

(0) - No participation

(1) - PX, PM, PE only

(2) - PX, PM, PS, PE, PC, GS only

(3) - PX, PM, PS, PE, PC, GS, DS, COO

Notes:

(2) most submitted

(3) All submitted

Element Measures (sub-elements) % max Score

Inspection Reporting 25% 2%

1. Inspections completed timely (turned in weekly) 3% 2%

a. Conducted: 3% 2%

0

1

2

3

2. Hazards Corrected (documented on inspection report) 10% 0%

a. Timely: 5% 0%

0

1

2

3

b. Follow-up and/or implementation with corrective action: 5% 0%

0

1

2

3

3. Training focuses on hazards identified 12% 0%

a. Incorporated into weekly toolbox talks 6% 0%

0

1

2

3

b. Supervisor (superintendent or Foreman) conducted meeting: 6% 0%

0

1

2

3

(3) immediately and recorded

Notes:

(0) Never or turned in late


(1) At least once weekly

(2) 2 - 3 times weekly


Notes:

(0) Not corrected

(1) 5 + days or none recorded

(2) 2-5 days and recorded

(3) always, recorded

(0) none or not done

(1) some times, not recorded

(2) most times, recorded





Notes:





Notes:

Incident Reporting 25% 0%

1. Initial Incident reporting 3% 0%

a. Within 24 hours of incident (online report): 3% 0%

0

1

2

3

2. Near Hit Reporting 10% 0%

a. Within 24 hours of near hit (online report): 5% 0%

0

1

2

3

b. Follow-up and/or implementation with corrective action: 5% 0%

0

1

2

3

3. Supervisor investigation/completed paperwork 12% 0%

a. Complete Online report: 6% 0%

0

1

2

3

b. Supervisors Investigation complete and hazard correction implemented: 6% 0%

0

1

2

3

Notes:


(0) Never or more than 2 days

(1) Within 24 hours (next day) or no incidents reported

(2) Day of incident

(3) within 4 hours of incident

Notes:

Notes:

(0) Never or more than 2 days, incomplete or no report

(1) Within 24 hours (next day), incomplete report

(2) Day of near hit, report complete

(3) within 4 hours of near hit, report complete

(2) most times, some documentation

(3) always, complete documentation

(0) not conducted or documented

(1) some times and not documented

(1) some times, not reported

(2) Day of near hit (partially documented)

(3) within 4 hours of near hit (documented)

(2) most times, reported

(3) always, reported

(0) Never or more than 2 days (not documented)

(1) Within 24 hours (next day) (not documented)

Notes:

Notes:

(0) none, not reported

Training (Online, workshops, BCC, conferences) 15%

1. Online training courses (Project Team) 3%

a. Complete Online training: 3% 0%

0

1

2

3

2. Blach University (Project Team) 3%

a. Attend Blach University sessions: 3% 0%

0

1

2

3

3. Weekly Safety Meetings (includes daily briefings) 6% 0%

a. Conducted: 3% 0%

0

1

2

3

b. Documentation: 3% 0%

0

1

2

3

4. Workshops and conferences (external) 3%

a. attended: 3% 0%

0

1

2

3

(1) partially filled in

(2) Majority filled in

(2) Most courses completed(>50%)

Notes:

(0) Never


Notes:


(1) Some courses completed (<50%)

(0) No courses completed in project cycle

(0) No courses taken in project cycle

(1) Some courses taken

(2) Most courses taken

(3) Attended all available training within project cycle

(3) Completed all courses within project cycle

Notes:

(2) More than one attended

(3) more than one attended and provided feedback to peer group

(1) At least one during year of project

(0) Never

Notes:

Notes:



(0) Not turned in or blank

(3) Completed filled in and detail information included

Supervisory Commitment/Participation 20%

1. Employee Recognition 10%

a. Employees Recognized : 5% 0%

0

1

2

3

b. Documentation: (Justification Form) 5% 0%

0

1

2

3

2. Supervisory participation in Stretch & Flex and Weekly Safety mtg 5%

a. Conducted: 3% 0%

0

1

2

3

3. Project Team Recognition 5%

a. Employees Recognized : 5% 0%

0

1

2

3

(1) Informal recognition given sometimes

(2) Formal recognition given frequently

(3) Formal recognition and awards given frequently

Notes:

(0) Not turned in or blank

(1) some criteria for award met

(2) most criteria for award met

(3) Criteria for award exceeds expectations

Notes:

(0) Never




Notes:

Notes:

(0) Never

(1) Informal recognition given sometimes

(2) Formal recognition given frequently

(3) Formal recognition and awards given frequently

Notes:

(0) Never
