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Ebook MP

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(tole \Vg Measuring Performance: A Guide to Health & Safety Leading Indicators PRON Sc Om ONO a Table of Contents Introduction Rethinking how we measure safety success ‘Types of Leading Indicators Key factors to consider when selecting and implementing leading indicators, Final Thoughts References: 03 05 08 20 24 cority Introduction Every day, business leaders need to make decisions on where to prize their resources and focus thei efforts ta minimize operational risk and protect employees, while optimizing productivity and maximizing shareholder value. “To make these decisions, executives need access the most robust data availabe to help them assess eurent conditions, datect ‘trends, and then determine what actions to take next. That's because even a single injury or fatality can have a devastating impact on employees and their fomiies, as well as the business brand reputation and financial security ‘et, the overteliance on traditional agoing metres may be giving business and Environmental, Health and Safety (EHS) leaders ake a false sense of security, especially they equate safety success With low incident rates. But the absence of something doesn'timmediately imply the presence of something else More and more, organizations are beginning to.understand the limitations of relying solely lonbackyard-looking metrcste inform their safety strategy, Fortunately, business leaders are starting to explore how leading indicators ccanhelp them more accurately asses thee safety performance in real-time, and better wihbdddéss Ly, Li inform their decision-making, s that risks are addressed before they can translate into harm, Inthis eBook, we'll explore how leading indicators can help transform the way your organization measures and manages. safety performance. By examining how to select, design, and implement the right leading indicators, your organization can setitself on adata-driven path toward sustainable safety results and stronger safety culture, Rethinking how we measure safety success (On Apri 10, 2010, employees aboard the Deepwater Horizon offshore oil platform celebrated a significant safety milestone: thay hag operated for soven years without incurring alost-time injury, Less than 12 hours later, an explosion rocked the rg, claiming the ives of LL. workers and triggering the largest marine oilspilin history The event exemplifies the inherent fawn measuring safety success through lagging matics, For years, the orig beleved that theirnjury rate was an accurate gauge of how well they ing operational But heres the problem: retrospective metrics nly tellus whether the things we're doing, or not doing ae having a desirable effect after the event occurs, That's nota very effective prevention strategy. Andjust because an event hasrit happened doesn't mean we are actively ‘managing the potetil for itt happen, hat's why organizations need tothink diecerty about safety success, and where t comes from, Safety success can (and should) nolongerbe defined as simply the absence offal. t instead should be defined asthe Presence of capacity o detect and manage riskthat can lead to failure, And that means we need new measures to evaluate that, capacity Lagging indicators aro outcome-oriented metrics. They measure the result ofa proces ‘oraction, As such, they cannot inform the organization onthe current state ofits systems, conto or ations te manage Fisk, nor indicate the presence ofincident precursors. ‘Onthecther hand, leading indicators are performance-based matics, They provide proactive insights into the stability of safety systems, and often act a8 an early worning sign of weaknesses in critical controls that ‘could lead toa future fallure Since leading indicators are en predictive of future states, they are directly infuenceable and actionable, \which makes thom hugely benefcalto safety practitioners, enabling effective decision making on health & safety matters “While lagging indicators rely on measuring past conditions, they do not indicate why a specific level of performance was achieved, and thus cannot identify deficiencies that can prevent future accidents."* eed Types of Leading Indicators Wes! Backward Looking Indicator Measures Performance es Forward Looking In 2015 study, the Campbell Institute proposed that health & safety leading indicators could be divided into three categories: Operations-based, Systems: based, and Behavior-based, Operations-based Indicators: Operatons-based leading indicators are designed to monitor the condition ‘ofthe organization's operations and key infrastructure, By maintaining operational assets and safeguards within defined parameters, the business limits the potential for risk to emerge and compromise safety Leading incicatrs inthis category may include: >the timetiness of preventive maintenance on-time completion of compliance inspections > number of days to close corrective actions ‘Since operations-based matics are closely ‘elated to legal compliance, they represent the largest category of moasures managed by health & safety professionals, and are critical indicators used to assees the current stata of the organization's safety performance, ‘Systems-based Indicators: ‘Systems-based leading indicators are metrics that measure the effectiveness of health & safety management systems and processes, They are most frequently usedto evaluate the strength and applcabilty ofthe systems implemented to detec, assess, and manage risk that could lead to failure andior harm. As analysis ofthese incicators often results inthe identicaton ofkey problem areas ‘and apportuntiesferimprovement, they ate heavy relied upon to support strategic decision-making, including allocation of budgets resources, setting objectives and prostizing actions Leading inicatorsin this category may include > #oftraining hours completed versus planned > #and frequency of audits performed > and fequency of safety meetings conducted Behavior-based Indicate Behavior-based indicators are metrics that ‘monitor the actions andr behaviors of individuals o groups within the workplace. Indicators in this category not only measure the presence of safe versus atsk behavior but are also used to gauge the level of ‘employes engagement and management ‘commitment to safety, Commonly used behevioralindicstos inch: > number of site walkthroughs conducted by leadership » employee participation rates in inspections orrisk assessments » the ratio of high-risk to low-risk behaviors observed » Leading Indicators Cheat Sheet Average days to close comectve actions » Parcentof corrective setons laced on time (by due cate) > Number of processes / equipment changes wth a management of change Number of eompiancs inspections completed > Percent tation sree regulatory inspections )Numberof maintenance inspections competedon tie > Numberof defects found in equipment > Barcent of maintenance time planned ve unplanned Number oftrining hours completed vs planned Dols budgeted vs spent on safety ‘einng ‘Average suit sce vs theshold erage deficiencies found par auct/ inspection Nurlbr ef recognitions forse behavior Number anal faqueney of perception surveys Numbarofroct causes identified by Incidentmvesigation Number ofaysto complete incident ‘rvetigations Number of supervisor manager walktrough competed Number of employee suggestions implemented by management Number of managers prtcpatingin criial design reviews umber of task observations reported by employers Percentage of safety mestngstolbox talsled by omployecs Number ofrik assessments completed for required work Number of employee coaching interactions completed u Key factors to i consider when z || eo olate kU ! So an L, oe implementing ri f i ot it Maa leading indicators Inte researeh’ the Campbell Institute identified several factors considered essential toencure leading incicatrs are successfully integrated into an organizations performance ‘management system: Executive sponsorship & support ‘One ofthe key factors that can quickly

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