Honda Safety Symposium

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

• If you dont 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

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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
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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 SH

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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?
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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

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Proactive Measurement Systems

• Proactive measures which indicate the well-being
  or otherwise of our SHE Management Programs
• Examples
• Numbers of inspections, audits, assessments
  carried out
• How much SHE training has been done

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Key Measurement Areas

• Management commitment involvement
• Employee involvement
• Integration of SHE into business
• Health performance indicators
• Safety performance indicators

• Environmental performance indicators
• Psycho-social indicators
• Workplace condition indicators
• Business performance indicators
• Management system indicators

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Management Commitment Involvement

• Policy
• Existence adequacy
• Roles responsibilities defined
• Accountability
• Resources
• Financial, physical, human
• Champion / role model
• Conducting assessments to support improvements
  change

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Employee Involvement

• Empowerment ownership of SHE programs
• Joint safety health committees
• Labor relations
• Employee attitudes perceptions
• Regular meetings toolbox talks

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Who Owns the Safety Program?
PERSONAL CONTROL Im in control
OPTIMISM I expect the best
SELF-BELIEF I can do it
EMPOWERMENT I can make a difference
BELONGING Im an important team member
SELF-ESTEEM Im a valuable person
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Integration of SHE into the Business

• SHE considered in all business decisions
• SHE included on the agenda of management
  meetings
• Common documentation systems
• Included in company Annual Reports

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Integrated Business System
Common Goals Integrated Strategies
Production
Distribution
SHE
Quality
Other
Accounting
Human Resources
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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

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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

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Safety Performance Indicators

• Regular safety inspections
• Job/task analysis
• Hazard identification risk assessments
• Emergency plans
• Accident investigation
• Contractor management
• External/ 3rd party audits

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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

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Psycho-Social Issues

• Stress
• Unhealthy lifestyles
• Alcohol drugs
• Obesity
• Tobacco
• HIV /AIDS

• Violence in the workplace
• Mental illness
• Suicide
• Aging populations
• Employee support

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Workplace Conditions

• Clean hygienic
• Tidy orderly
• Safe healthy
• Well maintained
• Comfortable
• Ergonomically friendly

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Business Performance Indicators

• Productivity
• Quality
• Loss control
• Labor relations
• Bottomline profits
• Workers comp insurance premiums
• Company reputation
• Absenteeism

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Effective Safety Management

• Appropriate Safety Management System
• Fits into the other functions of your business
• Improves productivity
• Reduces costs

Look for Continuous Improvement
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NSC 9 Elements of a Successful SHE Management
System

• Management leadership and commitment
• Organizational communications and system
  documentation
• Assessments, audits, evaluations, and continuous
  improvement

• Administrative and Management

• Hazard recognition, evaluation, and control
• Workplace design and engineering
• Operational SHE programs

• Operational and Technical

• Employee empowerment and involvement
• Motivation, behavior, and attitude
• Employee competency-building (training and
  orientation)

• Cultural and Behavioral

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Main Elements of the ILO OSH Management System
Policy
Continuous Improvement
Organizing
Action for Improvement
Evaluation
Planning Implementation
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BS 8800 Management Model
Continuous Improvement
Initial Status Review
OHS Policy
Management Review
Planning
Implementation Operation
Checking Corrective Action
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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
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Improving the Safety Process

• Reduced injuries
• Reduced costs from accidents illness
• Improved employee morale
• Improved public image
• Increased production
• Better quality

Increased Bottomline Profits
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Continuous Improvement

• Process improvement
• Task methodology improvements
• Innovation
• Sustainability
• Reducing risks
• Improving productivity
• Improving quality

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SHE Excellence

• Key Elements
• Management Leadership
• Employee Involvement
• Performance Measurement
• SHE Improvement Processes

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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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