Using Scorecards to Measure Safety Performance

1. Using Scorecards to Measure Safety Performance What’s this talk about scorecards? Author : Theodore S. Ingalls Professional Safety, Dec 1999

2. Why Measure Performance • To Know who wins. • What gets measured gets done • Enables reasoned decisions and assessments • Allows comparison with previous performance • Compares actual performance to planned performance

3. Downstream Measures • Statistical data, # of accidents, days lost, rates & costs. • Statistics usually are weak when it comes to the • Represent a reactive measure method • Causes go undetected and uncorrected • Only reflect poor performance why!

4. Perception surveys, structured interviews Check lists & audits Observation, inverse performance assessment Training completed Effectiveness measured

5. Key objectives achieved by integrating these areas • Key performance parameters will be spotted • The measures enable the company to actively improve performance in each area • By developing a systematic, forward-looking approach, strategic organizational change can occur

6. Using scorecards • Introduced by Kaplan & Norton • “scorecards puts strategy & vision, not control at the center” • To succeed focus should be on attaining high levels of organizational performance. • Helps link performance to organization safety vision by: • Links to the company safety vision • Enhances overall communication and understanding • Encourages strategic planning • Provides feedback on progress and success

8. The scorecard process • Secure top management support • Define the vision • Build the organization’s scorecards • Link unit scorecards to the organization’s scorecards • Measure & reward performance

12. Conclusion • Real power of this approach & use of scorecards • Clarify & update strategy • Communicate strategy throughout the company • Align unit goals with the strategy • Link strategic initiatives • Conduct periodic reviews