Building On Success With Leading Indicators Measuring What Matters Most

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Building On SuccessWith Leading
IndicatorsMeasuring What Matters Most

• John Leyland BA, DOHS, DipAdEd, CUSA, CRSP
• Hamilton Utilities Corporation
• CSSE - Saskatoon. November 4, 2003

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Hamilton Utilities Corporation

• A multi utility company operating
• Hamilton Hydro Inc.
• FibreWired Inc.
• Hamilton Community Energy Inc.

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Presentation Discussion

• Review of leading indicators as a measure of
  safety
• Specific efforts at HUC
• Discussion idea sharing at end
• Ask questions as we go along

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Lagging Indicators

• measure past events
• and rate of lost time cases
• times 200,00 / hours worked frequency rate
• and rate of severity (days lost)
• times 200,000 / hours worked severity rate
• All injury frequency rate etc.
• Motor vehicle incident rate

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Lagging Indicators

• Problems
• Unable to measure what has not happened ? the
  risks that have not lead to a loss event.
• Doesnt tell us if we are doing the right things
  to prevent injuries / manage safety
• Too many ways to impact reporting of lost times
  or days.
• Can drive reporting underground.

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Leading indicators

• Measure impact on future events
• Measure risk reduction
• Measure things that can predict future outcomes
• Possibly past event that can provide evidence of
  future greater harm (a close call where no worker
  was hurt or no damage was done) could be thought
  of as a predictor of future injury

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Why Build on Success?

• Success ? breeds more success
• Demonstrates weve improved we can do even
  more
• Taking time to look back and recognizing
  successes of the recent past, encourages ongoing
  effort
• Provides an opportunity to reward proactive
  safety efforts of individuals and teams
• ? Real rewards for real safety advances

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Building Blocks For Success

• Commitment
• Board of directors
• All levels of management and workers
• Build capacity to continuously improve
• Safety resources
• Safety management system
• Team approach
• Measure what matters most

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Safety Management System

• Policy that shows commitment
• Setting safety standards via
• Programs procedures
• Provide training on standards
• Clear - two way communication
• Measure what matters most
• Evaluate individuals
• Evaluate program effectiveness
• Evaluate safety system itself
• Annual performance targets tagged to bonus

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Measuring What Matters Most

• What matters most?
• Preventing injuries reducing risk of injury
• What should we measure?
• ?Efforts that reduce the risk of injury
• Risk reduction activities
• Leading indicators

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Leading Indicator Measurements

• Manager/supervisor performance reviews
• How did individual perform?
• Audit specific programs and procedures
• Are the standards effective?
• Did the program have the desired result?
• Continuous monitoring of programs
• Quarterly reports on objectives
• Audit of the safety system
• Is the system working how can we improve?

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Principles of Setting and Measuring Leading
Indicators

• Measure against standards
• Objective verifiable by auditors
• Departmental / individual goals
• Tied to performance review process
• Tied to performance - bonus pay
• Placed on corporate agenda
• Corporate goals include leading indicators
• Reports to execs BOD (monthly quarterly)
• Provides high level accountability

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Checks and Balances

• To ensure the system works honestly
• Joint health safety committee
• Internal auditors union/management
• External auditors
• Safe workplace association
• Government regulatory agencies

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Measuring Safety At HUC

• Make it happen safety objectives
• Scoring system
• Leadership 20
• Program Compliance 30
• Training application of skills 20
• Program improvement 20
• Lagging indicators 10
• Total score 100
• Score ? Determines management bonus
• ? Based on 2001 EUSA proposal

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Measuring Safety At HUC

• Measuring leadership
• Safety discussed at BOD/management meetings (n
  18)
• CEO/VPs At departmental meetings work
  observations (n 59)
• VPs Directors on JHSC (n 4)
• Manager performance reviews include an evaluation
  of safety objectives

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Leadership Measures At HUC Score 2002
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Measuring Safety At HUC

• Program Compliance
• Measure actual over expected
• Work observations (n659)
• Departmental meetings (n59)
• Incident/injury reporting information
• Internal audit outcomes

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Program Compliance2002 Score
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Year Over Year Results
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Work Observations Score - Actual vs Expected
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Departmental Meetings Score Actual vs Expected
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Incident Reports IncludeCause Preventive
Measures Score Actual vs Expected
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Measuring Safety At HUC

• Improving program standards 2002
• Establish an internal audit team
• Development of audit protocols
• Follow-up on 2001 EUSA audit
• Complete audit of selected programs
• Work observation
• Managing contractor safety
• Rescue practice procedure

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Measuring Safety At HUC

• Training application of skills
• Traffic control
• Work observation
• Loss control leadership
• Internal auditor training

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Measuring Safety At HUC

• Lagging indicators
• Increase reporting of non-injury incidents by 15
• ? Opportunity to prevent injury
• Decrease motor vehicle incidents
• All injury frequency
• Lost time frequency
• Lost time severity

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5 Year Rolling AverageFrequency Rate
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5 Year Rolling AverageSeverity Rates
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Measuring Safety With Leading Indicators - 2002
Scores

• Scoring Possible Outstanding
  Actual
• Leadership 20 19 20
• Program Compliance 30 28 29
• OHS Training 20 20 20
• Program Improvement 20 19 20
• Lagging Indicators 10 10 6
• Total Score 100 96 95
  
• A single number now available as a measure of
  safety results

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Measuring Safety Challenges 20th Century Focus

• On lagging indicators early on
• Industry comparisons on frequency severity
• Development of safety management system audits

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Measuring Safety Challenges For The 21st Century

• More emphasis on leading indicators
• Leading indicators will be compared on make it
  happen safety objectives
• Work observations / inspections
• Safety meetings
• Demonstrated leadership objectives
• Program improvements
• System program auditing

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Why Do This Now?

• Boards of directors will demand more detailed
  information to assure themselves of pro-active
  approaches
• More and more organizations are finding effective
  leading indicators to report
• Ethical companies will want to demonstrate their
  good will to the public

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Advantages Of Measuring Leading Indicators

• Shifts focus to make it happen safety
• Opportunity to build on success
• Reports newsletters
• Give recognition awards to teams
• Celebrations
• Opportunity to trade on success
• More managers, workers, execs on board
• Advantages at budget time

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Moving Agenda Forward

• Public discussion on the value of using leading
  indicators
• Get make it happen objectives on corporate
  agendas
• Have Government use leading indicators as a
  measure of corporate commitment to safety
• Get safe workplace associations to place more
  emphasis on leading indicators

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Discussion Brainstorming

• Presentation only scratched the surface
• How many include leading indicators in corporate
  reports now?
• How many here are interested in using leading
  indicators as part of corporate reporting?
• Share info on what you are doing - would like to
  do at your company