Measuring Safety Performance With Leading Indicators

1. Measuring Safety Performance With Leading Indicators John Leyland BA, DOHS, DipAdEd, CUSA, CRSP CSSE Burlington Oct 1, 2009

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

3. Financial Business Case Leading indicators measure effort to: Increase Profit Reduce Risk Reduce Injury Reduce Cost

4. 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 doesn’t change the future Managing safety performance does

5. 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

6. 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

7. 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

8. 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

9. 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

10. Measure What Matters Most What matters most ? • Preventing injuries by reducing risks What should we measure ? • Risk reduction activities Leading indicators - Safety performance

11. 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)

12. 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

13. 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.

14. 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

15. 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

16. External Audit Outcomes

17. Audit Progression Highlights1995 – 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

18. Audit Progression Highlights1998 – 2001 Team Approach Added Team Approach • Multi departmental • Union - management • Worked on program; forms; policy; training • Wellness team • Job planning team • Equipment team

19. Audit Progression Highlights2001 – 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

20. Safety Performance Scoring Balanced Safety Performance Scoring System • Active Leadership 20% • Performance Expectations 30% • Training & Application of Skills 20% • Program Improvement 20% • Lagging Indicators 10% Total Score 100% Build into performance pay (from E&USA)

21. Active Leadership Inspections Expectation 4 Executives 16 6 Directors 24 Department Safety Meetings Expectation 4 Executives 16 6 Directors 35 Total expected 91 % Score based on actual / expected e.g. 89/91 = 98% with weighting of 10% for overall score= 9.8%

22. 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

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

24. 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%

25. Program Improvement • External Audit • Internal Audit • Wellness survey • Safety culture / climate survey • Policy / procedure developed • Approved & signed • Implementation plans with specific goals • Approved & signed

26. 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

27. Training and Application of Skills • Training assessment (score done vs. not done) • Evaluate impact of training (% of target) • KSA’s 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

28. 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

29. 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%

30. 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

31. Leading - Lagging Data1995 - 2008

32. 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

33. Why Do this ? Deaths in Ontario (average 308 / year)

34. 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

35. Contact Information jleyland@cogeco.ca