Succesfull HSE Management Through Leading and Lagging Indicators

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SUCCESSFUL HSE MANAGEMENT THROUGH LEADING AND
LAGGING INDICATORS
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2021 De Moura Lawson Consulting
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OVERVIEW

• Managing Health and Safety in past years
• Evolving perspective on health and safety
  management
• What are leading and lagging indicators?
• Areas of leading indicator considerations
• Role of leading and lagging health and safety
  indicators in todays operations

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MANAGING HEALTH AND SAFETY IN OUR WORLD TODAY

• The focus must never be on the actual accidents
  alone, health and safety professional must
  consider all the elements and potential
  environments that could lead to them
• Human behaviors and systems for monitoring
  critical processes within a business play a key
  role in identifying potential areas that could
  lead to future incidents.

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THE TRADITIONAL SAFETY PERSPECTIVE IS LIKE
DRIVING BY LOOKING IN YOUR REAR-VIEW MIRROR ONLY

• The focus must never be on the actual accidents
  alone, health and safety professional must
  consider all the elements and potential
  environments that could lead to them
• Human behaviors and systems for monitoring
  critical processes within a business play a key
  role in identifying potential areas that could
  lead to future incidents.

Managing by looking at where you have been, not
at where you are going
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WHAT WE NEED TO LOOK AT MANAGING HEALTH AND
SAFETY IN OUR WORLD TODAY

• The focus must never be on the actual accidents
  alone, health and safety professional must
  consider all the elements and potential
  environments that could lead to them
• Human behaviors and systems for monitoring
  critical processes within a business play a key
  role in identifying potential areas that could
  lead to future incidents.

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SAFETY ACTIVITIES
Leading
FEWER EXPOSURES
Lagging
FEWER ACCIDENTS
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Leading
Lagging
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Leading
Lagging
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AREAS WHERE LEADING INDICATORS MUST BE CONSIDERED

• Leading indicators within an organization must
  consider three different areas. Personal
  behaviours, Workplace conditions as well as
  health and safety systems
• In addition the looking at the human element of
  incident, process indicators must never be
  forgotten as these can have catastrophic
  consequences

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CASE STUDY BP TEXAS CITY

• The incident at the BP Texas city plant in 2005
  provides a strong example of what a culture
  reliant on lagging indicators can cause,
• Lagging indicators provided data about process
  safety failures but allowed only for changes
  after something had gone wrong.
• At the time of the explosion that claimed many
  lives, many employees were out celebrating an
  incentive based on a lagging indicator.

BP Texas City Explosion - 2005
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THE FOLLOWING ARE EXAMPLES OF LEADING INDICATORS
WHERE SYSTEMS ARE CONCERNED
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BENEFITS OF MANAGING WITH LEADING INDICATORS IN
HEALTH AND SAFETY

• Understanding the causes of incidents and
  failures helps improves safety in processes
• Other aspects such as productivity, efficiency
  and profit is improved by preventing downtime and
  accidents
• Overall personnel safety Is improved
• Lagging indicators only provide historical
  information regarding overall process safety and
  performance

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WHERE AND HOW LAGGING INDICATORS SHOULD BE USED

• Lagging indicators should only be used as an
  indicator of past performance. This is important
  to identify parts of the business that have been
  historically problematic.
• Lagging indicators are also essential when it
  comes to contractor selection during the
  evaluation stages of tenders.
• Collective Lagging indicators such as Total
  Recordable Injury Rates (TRIR) or Lost Time
  Incident Rates (LTIR) should be periodically
  reported on.
• It is not advisable to use lagging indicators as
  part of any company incentive programs.

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ROLE OF LEADING AND LAGGING INDICATORS IN HEALTH
AND SAFETY INCENTIVES

• Many companies worldwide develop internal
  programs or award schemes to help promote health
  and safety cultures within their organisations,
  these can be in the form of
• Spot awards to employees with exceptional health
  and safety performances.
• Individual bonuses, recognition or awards related
  to health and safety performance.
• Section or departmental awards to departments for
  exceptional group health and safety performances.
• Organisational incentives for meeting certain
  health and safety objectives .

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QUESTIONS DISCUSSION
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