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National Safety Council1
Developing Key Performance Indicators
Developing Key Performance Indicators
Tony SmithTony SmithExecutive Director, International DepartmentExecutive Director, International DepartmentNational Safety Council (USA)National Safety Council (USA)
National Safety Council2
Measurement Drives Measurement Drives PerformancePerformance If you don’t measure performance you If you don’t measure performance you
will not maximize efficiency & will not maximize efficiency & productivityproductivity
People perform well when they know People perform well when they know their performance is being measuredtheir performance is being measured
You cannot effectively manage You cannot effectively manage anything unless you measure resultsanything unless you measure results
- Peter Drucker- Peter Drucker
National Safety Council3
Dynamic Changes in the Dynamic Changes in the New MillenniumNew Millennium Global competitionGlobal competition New technologiesNew technologies Downsizing / re-engineeringDownsizing / re-engineering Mergers / acquisitionsMergers / acquisitions More comprehensive legislationMore comprehensive legislation More stringent enforcementMore stringent enforcement More severe penalties More severe penalties Major Challenges to Competitiveness & ProfitabilityMajor Challenges to Competitiveness & Profitability
National Safety Council4
Management in the Modern WorldManagement in the Modern World
Dealing with competitive pressuresDealing with competitive pressures Changes in business practices & methodsChanges in business practices & methods Change in Boss / Worker relationshipsChange in Boss / Worker relationships Workers facing new stresses in their livesWorkers facing new stresses in their lives More work (and in some cases less pay)More work (and in some cases less pay) Business going through evolutionary Business going through evolutionary
processesprocesses Workers have increased focus on S&H Workers have increased focus on S&H
National Safety Council5
Performance MeasurementPerformance Measurement Multiple points of measurementMultiple points of measurement
Leading indicatorsLeading indicators Lagging indicatorsLagging indicators
Qualitative & quantitative measurementsQualitative & quantitative measurements Systematic processes to identify root causesSystematic processes to identify root causes Covers all organizational levelsCovers all organizational levels Focus on the management system - not the Focus on the management system - not the
outcomeoutcome
How did we let this happen?How did we let this happen?
National Safety Council6
Reactive Measurement Reactive Measurement SystemsSystems Failure-based measurementsFailure-based measurements Number of injuries / deathsNumber of injuries / deaths Number of cases of workplace-related Number of cases of workplace-related
illnessillness Number of spillsNumber of spills Number of lost work days Number of lost work days Cost of accidentsCost of accidents
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Proactive Measurement Proactive Measurement SystemsSystems Proactive measures which indicate the Proactive measures which indicate the
well-being or otherwise of our SH&E well-being or otherwise of our SH&E Management ProgramsManagement Programs
ExamplesExamples Numbers of inspections, audits, Numbers of inspections, audits,
assessments carried outassessments carried out
How much SH&E training has been How much SH&E training has been donedone
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Key Measurement AreasKey Measurement Areas Management Management
commitment & commitment & involvementinvolvement
Employee involvementEmployee involvement Integration of SH&E into Integration of SH&E into
businessbusiness Health performance Health performance
indicatorsindicators Safety performance Safety performance
indicatorsindicators
Environmental Environmental performance indicators performance indicators
Psycho-social indicatorsPsycho-social indicators Workplace condition Workplace condition
indicatorsindicators Business performance Business performance
indicatorsindicators Management system Management system
indicatorsindicators
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Management Commitment & Management Commitment & InvolvementInvolvement PolicyPolicy
Existence & adequacyExistence & adequacy
Roles & responsibilities definedRoles & responsibilities defined AccountabilityAccountability ResourcesResources
Financial, physical, humanFinancial, physical, human
Champion / role modelChampion / role model Conducting assessments to support Conducting assessments to support
improvements & changeimprovements & change
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Employee InvolvementEmployee Involvement Empowerment & ownership of SH&E Empowerment & ownership of SH&E
programsprograms Joint safety & health committeesJoint safety & health committees Labor relationsLabor relations Employee attitudes & perceptionsEmployee attitudes & perceptions Regular meetings & toolbox talksRegular meetings & toolbox talks
National Safety Council11
Who Owns the Safety Program?Who Owns the Safety Program?
BELONGING“I’m an important
team member”
BELONGING“I’m an important
team member”
OPTIMISM“I expect the best”
OPTIMISM“I expect the best”
SELF-BELIEF“I can do it”
SELF-BELIEF“I can do it”
SELF-ESTEEM“I’m a valuable
person”
SELF-ESTEEM“I’m a valuable
person”
PERSONAL CONTROL
“I’m in control”
PERSONAL CONTROL
“I’m in control”
EMPOWERMENT“I can make a difference”
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Integration of SH&E Integration of SH&E into the Businessinto the Business SH&E considered in all business SH&E considered in all business
decisionsdecisions SH&E included on the agenda of SH&E included on the agenda of
management meetingsmanagement meetings Common documentation & systemsCommon documentation & systems Included in company Annual ReportsIncluded in company Annual Reports
National Safety Council13
Production
Common Goals & Integrated StrategiesCommon Goals & Integrated StrategiesCommon Goals & Integrated StrategiesCommon Goals & Integrated Strategies
Integrated Business SystemIntegrated Business System
Distribution SH&E Quality
OtherAccounting Human Resources
National Safety Council14
Premises(Place of work)
People
Procedures
Plant & Substances
Organization
Control
Co-op -eration
Comm
u-
nication
Competence
Performance Standard SettingPerformance Standard Setting1st STAGE CONTROLS1st STAGE CONTROLSControl of InputsControl of Inputs Minimize hazards Minimize hazards
entering orgentering org
Physical Resources
Human Resources
Information
Products &Services
By-products
Information
2nd STAGE CONTROLS2nd STAGE CONTROLSControl of Work ActivitiesControl of Work ActivitiesMinimize/eliminate risks inside orgMinimize/eliminate risks inside orgCreate supportive cultureCreate supportive culture
3rd STAGE CONTROLS3rd STAGE CONTROLSControl of OutputsControl of Outputs Minimize hazards Minimize hazards
outside org, arising outside org, arising from work activities, from work activities, products & servicesproducts & services
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Health Performance Health Performance IndicatorsIndicators Medical surveillanceMedical surveillance Industrial hygiene surveysIndustrial hygiene surveys Access to medical facilitiesAccess to medical facilities First aid and CPR First aid and CPR ErgonomicsErgonomics Sanitation & food hygieneSanitation & food hygiene Back-to-work programsBack-to-work programs Off-the job and wellness programsOff-the job and wellness programs
National Safety Council16
Safety Performance Safety Performance IndicatorsIndicators Regular safety inspectionsRegular safety inspections Job/task analysisJob/task analysis Hazard identification & risk Hazard identification & risk
assessmentsassessments Emergency plansEmergency plans Accident investigationAccident investigation Contractor managementContractor management External/ 3rd party auditsExternal/ 3rd party audits
National Safety Council17
Environmental Performance Environmental Performance IndicatorsIndicators Emissions to air, water & groundEmissions to air, water & ground Energy usageEnergy usage Water usageWater usage Waste management, disposal & reductionWaste management, disposal & reduction Recycling of wastesRecycling of wastes Sustainable businessSustainable business Handling spillage & emergency planning Handling spillage & emergency planning
National Safety Council18
Psycho-Social IssuesPsycho-Social Issues StressStress Unhealthy Unhealthy
lifestyleslifestyles Alcohol & drugsAlcohol & drugs ObesityObesity TobaccoTobacco
HIV /AIDSHIV /AIDS
Violence in the Violence in the workplace workplace
Mental illnessMental illness Suicide Suicide Aging populationsAging populations Employee supportEmployee support
National Safety Council19
Workplace ConditionsWorkplace Conditions Clean & hygienic Clean & hygienic Tidy & orderly Tidy & orderly Safe & healthy Safe & healthy Well maintained Well maintained Comfortable Comfortable Ergonomically friendlyErgonomically friendly
National Safety Council20
Business Performance Business Performance IndicatorsIndicators ProductivityProductivity QualityQuality Loss controlLoss control Labor relationsLabor relations Bottomline profitsBottomline profits Workers’ comp & insurance premiumsWorkers’ comp & insurance premiums Company reputationCompany reputation Absenteeism Absenteeism
National Safety Council21
Effective Safety ManagementEffective Safety Management
Appropriate Safety Management Appropriate Safety Management SystemSystem
Fits into the other functions of your Fits into the other functions of your businessbusiness
Improves productivityImproves productivity Reduces costsReduces costs
Look for Continuous ImprovementLook for Continuous Improvement
National Safety Council22
NSC: 9 Elements of a Successful NSC: 9 Elements of a Successful SH&E Management SystemSH&E Management System
Employee empowerment and involvementEmployee empowerment and involvement Motivation, behavior, and attitudeMotivation, behavior, and attitude Employee competency-building Employee competency-building
(t(training and orientation)raining and orientation)
Cultural and Cultural and Behavioral Behavioral
Hazard recognition, evaluation, and controlHazard recognition, evaluation, and control Workplace design and engineeringWorkplace design and engineering Operational SH&E programsOperational SH&E programs
Operational and Operational and Technical Technical
Management leadership and commitmentManagement leadership and commitment Organizational communications and system Organizational communications and system
documentationdocumentation Assessments, audits, evaluations, and Assessments, audits, evaluations, and
continuous improvementcontinuous improvement
Administrative Administrative and Managementand Management
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EvaluationPlanning &
Implementation
Main Elements of the ILO OSH Main Elements of the ILO OSH Management SystemManagement System
OrganizingAction for
Improvement
Policy
Continuous Improvement
National Safety Council24
BS 8800 Management ModelBS 8800 Management Model
Initial StatusInitial StatusReviewReview
OHS PolicyOHS Policy
PlanningPlanning
ImplementationImplementation& Operation& Operation
Checking &Checking &CorrectiveCorrective
Action Action
ManagementManagementReviewReview
ContinuousContinuousImprovementImprovement
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Continuous Improvement Continuous Improvement Process ModelProcess Model
Phase 3Set Goals
“Should be”
Phase 3Set Goals
“Should be”
Phase 2Establish a
Baseline“As is”
Phase 2Establish a
Baseline“As is”
Phase 5Review and Adjust
“Could be”
Phase 5Review and Adjust
“Could be”
Phase 4Develop and
Implement Plans“Close the gap”
Phase 4Develop and
Implement Plans“Close the gap”
Phase 1 Management
Leadership and Commitment
Phase 1 Management
Leadership and Commitment
9 Elements
National Safety Council26
Improving the Safety ProcessImproving the Safety Process
Reduced injuriesReduced injuries Reduced costs from accidents & illnessReduced costs from accidents & illness Improved employee moraleImproved employee morale Improved public imageImproved public image Increased productionIncreased production Better qualityBetter quality
Increased Bottomline ProfitsIncreased Bottomline Profits
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Continuous ImprovementContinuous Improvement Process improvementProcess improvement Task methodology improvementsTask methodology improvements InnovationInnovation SustainabilitySustainability Reducing risksReducing risks Improving productivityImproving productivity Improving quality Improving quality
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SH&E ExcellenceSH&E Excellence
Key Elements:Key Elements: Management LeadershipManagement Leadership Employee InvolvementEmployee Involvement Performance MeasurementPerformance Measurement SH&E Improvement ProcessesSH&E Improvement Processes
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Safety Performance Safety Performance MeasurementsMeasurements
Mixture of Mixture of reactivereactive and and proactiveproactive measures measures Variety of different benchmarksVariety of different benchmarks
Compliance, industry benchmarks, Compliance, industry benchmarks, or best practiceor best practice
Cover all levels of the organizationCover all levels of the organization Management, supervisors, workersManagement, supervisors, workers
Cover different parts of the organizationCover different parts of the organization Plant, department, section, workgroup Plant, department, section, workgroup
National Safety Council30
