Measuring Safety Performance

With Leading Indicators

John Leyland

BA, DOHS, DipAdEd, CUSA,

CRSP

CSSE Burlington
Oct 1, 2009

Presentation
Business case
Examples you can use
Generate some discussion
Why this is important

Financial Business Case

Leading indicators measure effort to:

Reduc
e
Risk

Reduc
e
Injury

Reduc
e
Cost

Increas
e
Profit

Financial Business Case

Cost in dollars
Direct costs
$10,000
Indirect costs $40,000
Total costs
$50,000
Cost in Lost Opportunity
Sales to offset costs
$625,000
(cost profit margin (8%) = gross sales required to offset costs)
http://www.wsib.on.ca/wsib/wsibsite.nsf/Public/BusinessResultsHealthSafety

Reporting costs doesnt change the future

Managing safety performance does

Due Diligence Business Case

Managing safety performance shows that
Company actively manages safety through:
Leadership
Program assessment and improvement
Training

Safety management system is working

through:
External / internal auditing

There is an active internal responsibility

system

Performance Business Case

All well managed programs:
Set expectations for performance
Establish goals to achieve performance
Measure performance
Evaluate results
Assess ongoing needs
Build new goals to continually improvement

Safety performance indicators accomplish the

above

Leading Indicator Principles

Measure against standards - program /

procedure
Objective measurement verifiable by auditors
Surveys backed up by external audit
Corporate plan includes safety performance
goals
Performance Reported to:
Management, JHSC and staff
Board of Directors

Part of performance pay

Safety Management System nits it all together

Checks and Balances

External audits
Interviews reinforce internal performance

data
Document review corroborate evidence
Internal audits
JHSC
Labour / management team
Transparency of performance activities e.g.

inspections

Building Blocks for Excellence

Active Commitment from
Board of Directors
CEO / executives
All levels of management and workers
Union

Build capacity for continuous improvement

H&S resources
Safety management system
Team approach

Celebrate performance achievements

Measuring what matters most

Measure What Matters Most

What matters most ?
Preventing injuries by reducing risks
What should we measure ?
Risk reduction activities
Leading indicators Safety performance

Advantages of Team
Approach

Teams include people beyond JHSC

Developmental opportunity for team members
Assessment & Auditing skills
Develop policy / procedure
Planning skills
Communication and presentation skills
Team building skills

Breaks down workplace barriers

Builds sense of community within volunteers
Builds commitment to safety and pride of place
Strengthens IRS (internal responsibility system)

Safety Management System

Policy - commitment
Act on commitment with safety performance

goals
Safety performance in strategic plan
Identify and rank risks
Programs, procedures & forms to manage risk

Training to develop knowledge, skill and ability

Clear communications
Evaluation of performance
Report outcomes & re-evaluate needs
Celebrate success
Reset goals

Formalized SMS
18001 / CSA Z1000
Plan, Do, Check and Act
Integrated system pulling together variety
of impacts on safety and health
Overlays policies, procedures and forms
onto leading indicator strategy
Reinforces measuring safety performance.

Building Performance
Excellence
Benchmark your starting point

Determine performance to be measured

Establish time frame for measurement
Measure progress

Broad based benchmarks

Safety management system audit
Safety culture
Legal Compliance

Establish a plan based on needs

Active leadership
Team based programs

SMS Audit as Safety

Performance
Benchmark safety management system (SMS)
Improvement plan based on results
Benchmark key audit elements
Incident investigation
Department meetings
Inspections / work observations

Established key policies and procedures for

above
Involved JHSC and management in policy
development co-operative approach
Measured safety performance on programs

External Audit Outcomes

Audit Progression Highlights

1995 1998
Basic programs and performance measures
established

Department meetings
Workplace inspections
Incident reporting
Causes provided
Recommendations made
Actions taken
Benchmarks established
Training provided
Performance reports provided

Audit Progression Highlights

1998 2001

Team Approach Added

Team Approach
Multi departmental
Union - management
Worked on program;
forms; policy; training
Wellness team
Job planning team
Equipment team

Audit Progression Highlights

2001 2004

Move to New Plateau

Internal Audit Team

Leading indicators on

corporate agenda
Part of performance pay

Celebrating success of

teams and performance

Culture being

developed

Safety Performance Scoring

Balanced Safety Performance Scoring System
Active Leadership
Performance Expectations

20%
30%

Training & Application of Skills

Program Improvement
Lagging Indicators

Total Score
Build into performance pay
(from E&USA)

20%
20%
10%
100%

Active Leadership
Inspections
4 Executives
6 Directors

Expectation
16
24

Department Safety Meetings

4 Executives
16
6 Directors
35
Total expected
91

Expectation

% Score based on actual / expected e.g. 89/91 =

98%
with weighting of 10% for overall score = 9.8%

Performance Expectations
Work observations by management staff
Entered into software
Reported by supervisor, manager and department

Departmental safety meetings (manager

responsibility)
Incident investigations
Causes and Recommendations provided
Follow-up corrections made

Inspection and safety meeting follow-up actions

% completed vs. expected (from software reports)

Wellness activities
staff involved in activities; health fair participation

Incident Includes
lost time,
medical aid,
first aid,
motor vehicle,
property damage,
near miss
contractors

Scoring Example for 10

Incidents

Opportunity to provide and complete:

10 causes (+)
+ 10 recommendations to improve (+)
+ 10 follow-up actions completed (+)
= 30 information items expected
If there are 25 information items
Score 25/30 = 83%
Weighting of 10% = 8.3%

Program Improvement
External Audit
Internal Audit
Wellness survey
Safety culture / climate survey
Policy / procedure developed
Approved & signed

Implementation plans with specific goals

Approved & signed

Score Program Improvements

Done vs. Not Done = % score
Audits / Assessments completed on time
Policy and procedure completed and signed
% improvement score
Pitfall changes in audit criteria, scoring

system & auditor are out of your control

Audit implementation plan

% of specific items completed as per
approved plan

Training and Application of

Skills

Training assessment (score done vs. not done)

Evaluate impact of training (% of target)
KSAs used on the job?
e.g. appropriate eye safety understood after

training
(compliance needs management of work)

Specific training needs (target % completed)

Driver training
PPE
Ergonomic

Lagging Indicators
Frequency Rate
# LT 200,000 hours worked = frequency rate

Severity Rate
# days lost 200,000 hours worked = severity rate

Vehicle Incident Rate

# of MV incidents 1,000,000 km driven = MV

rate

Safety Performance Scoring

Balanced Safety Performance Scoring System
Actual
Possible
Active Leadership
18
20%
Performance Expectations 30
30%
Training & Application of Skill
17
20%
Program Improvement
18
20%
Lagging Indicators
5
10%
88%
100%

Single balanced safety performance score =

88%

Value of Leading Indicators

A number of successes built into score
Audit team results
Training team activities
Special project teams
Wellness team

Celebrate team efforts build pride into safety

Builds culture around safety improvement
Team members build skills and knowledge
Recognition for safety performance & improvement

Build community of staff involved in safety

Track performance over time - valuable lessons
Lower emphasis on zero injuries

Leading - Lagging Data

1995 - 2008

Sustaining Performance
Emphasis on tangible performance measures
Celebrating team and organizational

performance
Build on successes

Build a healthy workplace

Sustain efforts over long term

Historical improvement shows return on

investment in safety
Recognition for teams and individual members
Real rewards for real safety advances

Why Do this ?
Deaths in Ontario

(average 308 / year)

Safety Performance
Excellence
Adequate resources
Measure safety performance with leading

indicators
Active & visible commitment of
management
Team approach to building safety
Multi-departmental
Union / worker involvement

Celebrate success of teams

Grass root leaders

Contact Information

jleyland@cogeco.ca