Setting Safety KPI’s that work

Key Performance Indicator

John McGerty (Grad IOSH Dip RSA)

Safety, Health & Environment Manager

Gilbert-Ash N.I. LTD

You can build on our reputation

TerminologyKey Performance Indicators (KPI) - “Measurable

indicators that will be used to report progress that is

chosen to reflect the critical success StrategicCritical Success Factors (CSF)-“A factor considered to

be most conducive to the achievement of a successfulStrategic Aims-” Are the tools we use to organise and

focus our diverse activities. Through the Corporate Plan,

we will define specific objectives and targets relating to

each Strategic Aim

Key Performance IndicatorGenerally there are two approaches

KPI based on Strategic themes

KPI Based on Critical success factors

They both drive from:

Objectives from strategic aims

Performance indicators flowing from objectives

Status and progress indicators

Year on year change indicators

Strategic Aims-Over the period Jan 2012 to Dec 2012 all employersare to demonstrate  Continuous Improvement in theirhealth and safety management performance whilstbeing benchmarked using a suitable benchmarkingtool.

What IS A KPIA KPI (Key Performance Indicator) is simply a metric

that is tied to a target. Most often, a KPI represents how far a metric is above

or below a pre-determined target. KPI’s usually are shown as a ratio of actual to target

and are designed to instantly let a business user know if they are on or off their plan without the end user having to consciously focus on the metrics being represented.

SMART is an abbreviation for the five conditions of good KPI’s:* Specific – It has to be clear what the KPI exactly measures.

There has to be one widely-accepted definition of the KPI to make sure the different users interpret it the same way and, as a result, come to the same and right conclusions which they can act on.

* Measurable – The KPI has to be measurable to define a standard, budget or norm, to make it possible to measure the actual value and to make the actual value comparable to the budgeted value.

* Achievable – Every KPI has to be measurable to define a standard value for it. It is really important for the acceptance of KPI’s and Performance Management in general within the organization that this norm is achievable. Nothing is more discouraging than striving for a goal that you will never obtain.

SMART is an abbreviation for the five conditions of good KPI’s:* Relevant – The KPI must give more insight in the

performance of the organization in obtaining its strategy. If a KPI is not measuring a part of the strategy, acting on it doesn’t affect the organizations’ performance. Therefore an irrelevant KPI is useless.

* Time phased – It is important to express the value of the KPI in time. Every KPI only has a meaning if one knows the time dimension in which it is realized. The realization and standardization of the KPI therefore has to be time phased.

Critical Success FactorsCritical success factors – key issues requiring

management attention• Represent real issues faced “here and now”

Performance indicators relate to critical success factors not strategic aims – offers greater flexibility

• Critical success factors can be mapped to strategic aims

How To Achieve Success• Identify areas of activity that require greater

attention

• Performance indicators that are grounded (SMART)

• Striking a balance between a comprehensive set of KPIs and information overload

Selecting Project Specific KPI “What you measure is what you get.” (Kaplan and

Norton, 1992).

KPI help define the achievement of the CSF

Number depends on their comprehensiveness and importance of the CSF to overall project success.

Sources of potential KPI• Do the KPIs provide YOU with a clear indication of

progress to date and areas requiring greater attention?

• Strategic aims do not always lend themselves to measurement and require associated objectives

• No difficulty with objectives extracted from the Corporate Strategy but derived objectives may have no real ownership

Introduction of KPI’s• Introduction of KPIs represents a major step

forwards

• Enables YOU to understand where progress is being made towards achieving strategic aims and those areas which need to be addressed

• The management review in BS EN ISO and OHSAS standards also help focus performance

Development of

KPIs that work

John Thompson

H&J Martin Facilities Management

February 2012

Is your H&S management good?How do you know?

Current Position?

“We don’t have many accidents”

“We haven’t had many RIDDORs”

“Operatives get loads of training”

“There’s PPE if they need it”

“We do regular H&S inspections”

Establish Current Position....

No. of accidents

No. H&S inspections

Frequency of inspections

Average inspection score

Meaningful...StrategyAims/ObjectivesPolicyRegulatory requirementsIndustry standardsMoralHealthSocial

Meaningful....AccidentsInspections

What has been asked of us?

What are we doing?

Lets introduce our KPIs.....

Our benchmark or baseline...

What is our target?

Lets measure how we actually did..

Revisit the KPIs......Success?

Points of noteQuantity does not equal qualityMeasure what’s most importantDon’t let the cost of measuring exceed the value of

the results

A MENU OF WHAT WORKSJ. LEITCH

HR DIRECTORNORTHSTONE (NI) Limited

20 February 2012

KEY RESULT AREA

PERFORMANCE INDICATOR

TARGET

PROFILING HEALTH AND SAFETY FOR KPI’S‘The Yard Sticks’

(1) Accidents and Incidents

(2) Involvement and Communication

(3) Monitoring of Operational Performance

(4) Occupational Health Best Practice

(5) Promotion of Health and Safety

(6) System Effectiveness

(1) ACCIDENTS AND INCIDENTS Accident Frequency

Accident Severity

Near Misses

(2) INVOLVEMENT AND COMMUNICATION Safety Observations Training Hours Delivered Employee Involvement Health and Safety Initiatives Delivery of Visible Felt Leadership Employee Suggestions Implemented Tool Box Talk Delivery Health and Safety Alerts Issued

(3) MONITORING OF OPERATIONAL PERFORMANCE

Delivery of Health and Safety Inspections/Audits

Category I and Category II Conditions

External System Audit Outcomes

Disciplinary Offences

Supply Chain Compliance

Tenders Scores from Clients

(4) OCCUPATIONAL HEALTH

Safety Critical Work

Health Surveillance

Days Lost to Work Related Ill Health

Rehabilitation of Ill Employee

Locations with Health Management Plan in

Place

(5) PROMOTION OF HEALTH AND SAFETY

Safety Award Success

Meetings with CEO/Directors

Delivery of Agreed Safety Improvement Plan

(6) SYSTEM EFECTIVENESS Time spent by operational staff completing

safety documentation

Questions