Setting Safety KPI’s that work

Key Performance Indicator John McGerty (Grad IOSH Dip RSA) Safety, Health & Environment Manager Gilbert-Ash N.I. LTD You can build on our reputation

Terminology Key Performance Indicators (KPI) - “Measurable indicators that will be used to report progress that is chosen to reflect the critical success Strategic Critical Success Factors (CSF)-“A factor considered to be most conducive to the achievement of a successful Strategic Aims-” Are the tools we use to organise and focus our diverse activities. Through the Corporate Plan, we will define specific objectives and targets relating to each Strategic Aim

Key Performance Indicator Generally there are two approaches KPI based on Strategic themes KPI Based on Critical success factors They both drive from: Objectives from strategic aims Performance indicators flowing from objectives Status and progress indicators Year on year change indicators

Strategic Aims- Over the period Jan 2012 to Dec 2012 all employers are to demonstrate  Continuous Improvement in their health and safety management performance whilst being benchmarked using a suitable benchmarking tool.

What IS A KPI A KPI (Key Performance Indicator) is simply a metric that is tied to a target. Most often, a KPI represents how far a metric is above or below a pre-determined target. KPI’s usually are shown as a ratio of actual to target and are designed to instantly let a business user know if they are on or off their plan without the end user having to consciously focus on the metrics being represented.

SMART is an abbreviation for the five conditions of good KPI’s: * Specific – It has to be clear what the KPI exactly measures. There has to be one widely-accepted definition of the KPI to make sure the different users interpret it the same way and, as a result, come to the same and right conclusions which they can act on. * Measurable – The KPI has to be measurable to define a standard, budget or norm, to make it possible to measure the actual value and to make the actual value comparable to the budgeted value. * Achievable – Every KPI has to be measurable to define a standard value for it. It is really important for the acceptance of KPI’s and Performance Management in general within the organization that this norm is achievable. Nothing is more discouraging than striving for a goal that you will never obtain.

SMART is an abbreviation for the five conditions of good KPI’s: * Relevant – The KPI must give more insight in the performance of the organization in obtaining its strategy. If a KPI is not measuring a part of the strategy, acting on it doesn’t affect the organizations’ performance. Therefore an irrelevant KPI is useless. * Time phased – It is important to express the value of the KPI in time. Every KPI only has a meaning if one knows the time dimension in which it is realized. The realization and standardization of the KPI therefore has to be time phased.

Critical Success Factors Critical success factors – key issues requiring management attention Represent real issues faced “here and now” Performance indicators relate to critical success factors not strategic aims – offers greater flexibility Critical success factors can be mapped to strategic aims

How To Achieve Success Identify areas of activity that require greater attention Performance indicators that are grounded (SMART) Striking a balance between a comprehensive set of KPIs and information overload

Selecting Project Specific KPI “What you measure is what you get.” (Kaplan and Norton, 1992). KPI help define the achievement of the CSF Number depends on their comprehensiveness and importance of the CSF to overall project success.

Sources of potential KPI Do the KPIs provide YOU with a clear indication of progress to date and areas requiring greater attention? Strategic aims do not always lend themselves to measurement and require associated objectives No difficulty with objectives extracted from the Corporate Strategy but derived objectives may have no real ownership

Introduction of KPI’s Introduction of KPIs represents a major step forwards Enables YOU to understand where progress is being made towards achieving strategic aims and those areas which need to be addressed The management review in BS EN ISO and OHSAS standards also help focus performance

Development of KPIs that work John Thompson H&J Martin Facilities Management February 2012

Is your H&S management good? How do you know?

Current Position? “We don’t have many accidents” “We haven’t had many RIDDORs” “Operatives get loads of training” “There’s PPE if they need it” “We do regular H&S inspections”

Establish Current Position.... No. of accidents No. H&S inspections Frequency of inspections Average inspection score

Meaningful... Strategy Aims/Objectives Policy Regulatory requirements Industry standards Moral Health Social

Meaningful.... Accidents Inspections

What has been asked of us? Strategic Aim Continuous improvement in health and safety management performance

What are we doing? Strategic Aim Initiatives Continuous improvement in health and safety management performance New inspection regime, introducing quarterly inspections. Destination Zero Poster, email and leaflet campaign aimed encouraging staff to think what if...not if only.

Lets introduce our KPIs..... Strategic Aim Initiatives KPI Continuous improvement in health and safety management performance New inspection regime, introducing quarterly inspections. Number of H&S Inspections Destination Zero Poster, email and leaflet campaign aimed encouraging staff to think what if...not if only. Number of Lost Time Accidents

Our benchmark or baseline... Strategic Aim Initiatives KPI Last year Continuous improvement in health and safety management performance New inspection regime, introducing quarterly inspections. Number of H&S Inspections 3 Destination Zero Poster, email and leaflet campaign aimed encouraging staff to think what if...not if only. Number of Lost Time Accidents 5

What is our target? Strategic Aim Initiatives KPI Last year Continuous improvement in health and safety management performance New inspection regime, introducing quarterly inspections. Number of H&S Inspections 3 4 Destination Zero Poster, email and leaflet campaign aimed encouraging staff to think what if...not if only. Number of Lost Time Accidents 5 2

Lets measure how we actually did.. Strategic Aim Initiatives KPI Last year 2012 Target Actual Continuous improvement in health and safety management performance New inspection regime, introducing quarterly inspections. Number of H&S Inspections 3 4 Destination Zero Poster, email and leaflet campaign aimed encouraging staff to think what if...not if only. Number of Lost Time Accidents 5 2

Revisit the KPIs......Success?

Points of note Quantity does not equal quality Measure what’s most important Don’t let the cost of measuring exceed the value of the results

HEALTH AND SAFETY KPI’S IN ACTION A MENU OF WHAT WORKS J. LEITCH HR DIRECTOR NORTHSTONE (NI) Limited 20 February 2012

KEY RESULT AREA PERFORMANCE INDICATOR TARGET

PROFILING HEALTH AND SAFETY FOR KPI’S ‘The Yard Sticks’ (1) Accidents and Incidents (2) Involvement and Communication (3) Monitoring of Operational Performance (4) Occupational Health Best Practice (5) Promotion of Health and Safety (6) System Effectiveness

(1) ACCIDENTS AND INCIDENTS Accident Frequency Accident Severity Near Misses

(2) INVOLVEMENT AND COMMUNICATION Safety Observations Training Hours Delivered Employee Involvement Health and Safety Initiatives Delivery of Visible Felt Leadership Employee Suggestions Implemented Tool Box Talk Delivery Health and Safety Alerts Issued

(3) MONITORING OF OPERATIONAL PERFORMANCE Delivery of Health and Safety Inspections/Audits Category I and Category II Conditions External System Audit Outcomes Disciplinary Offences Supply Chain Compliance Tenders Scores from Clients

(4) OCCUPATIONAL HEALTH Safety Critical Work Health Surveillance Days Lost to Work Related Ill Health Rehabilitation of Ill Employee Locations with Health Management Plan in Place

(5) PROMOTION OF HEALTH AND SAFETY Safety Award Success Meetings with CEO/Directors Delivery of Agreed Safety Improvement Plan

(6) SYSTEM EFECTIVENESS Time spent by operational staff completing safety documentation

Questions