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Measuring Performance:
A Guide to Health & Safety
Leading Indicators PRON Sc Om ONO aTable 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
corityIntroduction
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,
Liinform 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 absenceoffal. 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
IndicatorsWes!
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 criticalindicators 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
uKey factors to i
consider when z ||
eo olate kU ! So an L, oe
implementing ri f i ot it Maa
leading indicatorsInte 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