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Developing Key Performance Indicators

Developing Key Performance Indicators. Tony Smith Executive Director, International Department National Safety Council (USA). Measurement Drives Performance. If you don’t measure performance you will not maximize efficiency & productivity

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Developing Key Performance Indicators

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  1. Developing Key Performance Indicators Tony Smith Executive Director, International Department National Safety Council (USA)

  2. Measurement Drives Performance • If you don’t measure performance you will not maximize efficiency & productivity • People perform well when they know their performance is being measured • You cannot effectively manage anything unless you measure results - Peter Drucker

  3. Dynamic Changes in the New Millennium • Global competition • New technologies • Downsizing / re-engineering • Mergers / acquisitions • More comprehensive legislation • More stringent enforcement • More severe penalties Major Challenges to Competitiveness & Profitability

  4. Management in the Modern World • Dealing with competitive pressures • Changes in business practices & methods • Change in Boss / Worker relationships • Workers facing new stresses in their lives • More work (and in some cases less pay) • Business going through evolutionary processes • Workers have increased focus on S&H

  5. Performance Measurement • Multiple points of measurement • Leading indicators • Lagging indicators • Qualitative & quantitative measurements • Systematic processes to identify root causes • Covers all organizational levels • Focus on the management system - not the outcome How did we let this happen?

  6. Reactive Measurement Systems • Failure-based measurements • Number of injuries / deaths • Number of cases of workplace-related illness • Number of spills • Number of lost work days • Cost of accidents

  7. Proactive Measurement Systems • Proactive measures which indicate the well-being or otherwise of our SH&E Management Programs • Examples • Numbers of inspections, audits, assessments carried out • How much SH&E training has been done

  8. Management commitment & involvement Employee involvement Integration of SH&E into business Health performance indicators Safety performance indicators Environmental performance indicators Psycho-social indicators Workplace condition indicators Business performance indicators Management system indicators Key Measurement Areas

  9. Management Commitment & Involvement • Policy • Existence & adequacy • Roles & responsibilities defined • Accountability • Resources • Financial, physical, human • Champion / role model • Conducting assessments to support improvements & change

  10. Employee Involvement • Empowerment & ownership of SH&E programs • Joint safety & health committees • Labor relations • Employee attitudes & perceptions • Regular meetings & toolbox talks

  11. Who Owns the Safety Program? PERSONAL CONTROL “I’m in control” SELF-BELIEF “I can do it” OPTIMISM “I expect the best” EMPOWERMENT “I can make a difference” SELF-ESTEEM “I’m a valuable person” BELONGING “I’m an important team member”

  12. Integration of SH&E into the Business • SH&E considered in all business decisions • SH&E included on the agenda of management meetings • Common documentation & systems • Included in company Annual Reports

  13. Integrated Business System Common Goals & Integrated Strategies Production Distribution SH&E Quality Accounting Human Resources Other

  14. Physical Resources Products & Services Human Resources By-products Information Information Performance Standard Setting • 3rd STAGE CONTROLS • Control of Outputs • Minimize hazards outside org, arising from work activities, products & services • 1st STAGE CONTROLS • Control of Inputs • Minimize hazards entering org Organization People Co-op -eration Control Commu-nication Competence Procedures THE JOB Plant & Substances Premises (Place of work) • 2nd STAGE CONTROLS • Control of Work Activities • Minimize/eliminate risks inside org • Create supportive culture

  15. Health Performance Indicators • Medical surveillance • Industrial hygiene surveys • Access to medical facilities • First aid and CPR • Ergonomics • Sanitation & food hygiene • Back-to-work programs • Off-the job and wellness programs

  16. Safety Performance Indicators • Regular safety inspections • Job/task analysis • Hazard identification & risk assessments • Emergency plans • Accident investigation • Contractor management • External/ 3rd party audits

  17. Environmental Performance Indicators • Emissions to air, water & ground • Energy usage • Water usage • Waste management, disposal & reduction • Recycling of wastes • Sustainable business • Handling spillage & emergency planning

  18. Stress Unhealthy lifestyles Alcohol & drugs Obesity Tobacco HIV /AIDS Violence in the workplace Mental illness Suicide Aging populations Employee support Psycho-Social Issues

  19. Workplace Conditions • Clean & hygienic • Tidy & orderly • Safe & healthy • Well maintained • Comfortable • Ergonomically friendly

  20. Business Performance Indicators • Productivity • Quality • Loss control • Labor relations • Bottomline profits • Workers’ comp & insurance premiums • Company reputation • Absenteeism

  21. Effective Safety Management • Appropriate Safety Management System • Fits into the other functions of your business • Improves productivity • Reduces costs Look for Continuous Improvement

  22. NSC: 9 Elements of a Successful SH&E Management System • Administrative and Management • Management leadership and commitment • Organizational communications and system documentation • Assessments, audits, evaluations, and continuous improvement • Operational and Technical • Hazard recognition, evaluation, and control • Workplace design and engineering • Operational SH&E programs • Cultural and Behavioral • Employee empowerment and involvement • Motivation, behavior, and attitude • Employee competency-building (training and orientation)

  23. Main Elements of the ILO OSH Management System Policy Continuous Improvement Action for Improvement Organizing Evaluation Planning & Implementation

  24. BS 8800 Management Model Continuous Improvement Initial Status Review OHS Policy Management Review Planning Checking & Corrective Action Implementation & Operation

  25. Continuous Improvement Process Model Phase 1 Management Leadership and Commitment Phase 5 Review and Adjust “Could be” Phase 2 Establish a Baseline “As is” 9 Elements Phase 4 Develop and Implement Plans “Close the gap” Phase 3 Set Goals “Should be”

  26. Improving the Safety Process • Reduced injuries • Reduced costs from accidents & illness • Improved employee morale • Improved public image • Increased production • Better quality Increased Bottomline Profits

  27. Continuous Improvement • Process improvement • Task methodology improvements • Innovation • Sustainability • Reducing risks • Improving productivity • Improving quality

  28. SH&E Excellence Key Elements: • Management Leadership • Employee Involvement • Performance Measurement • SH&E Improvement Processes

  29. Safety Performance Measurements • Mixture of reactive and proactive measures • Variety of different benchmarks • Compliance, industry benchmarks, or best practice • Cover all levels of the organization • Management, supervisors, workers • Cover different parts of the organization • Plant, department, section, workgroup

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