1. National Safety Council 1 Developing Key Performance Indicators Tony Smith Executive Director, International Department National Safety Council (USA)

2. National Safety Council 2 Measurement Drives Performance If you don’t measure performance you will not maximize efficiency & productivity If you don’t measure performance you will not maximize efficiency & productivity People perform well when they know their performance is being measured People perform well when they know their performance is being measured You cannot effectively manage anything unless you measure results You cannot effectively manage anything unless you measure results - Peter Drucker

3. National Safety Council 3 Dynamic Changes in the New Millennium Global competition Global competition New technologies New technologies Downsizing / re-engineering Downsizing / re-engineering Mergers / acquisitions Mergers / acquisitions More comprehensive legislation More comprehensive legislation More stringent enforcement More stringent enforcement More severe penalties More severe penalties Major Challenges to Competitiveness & Profitability

4. National Safety Council 4 Management in the Modern World Dealing with competitive pressures Dealing with competitive pressures Changes in business practices & methods Changes in business practices & methods Change in Boss / Worker relationships Change in Boss / Worker relationships Workers facing new stresses in their lives Workers facing new stresses in their lives More work (and in some cases less pay) More work (and in some cases less pay) Business going through evolutionary processes Business going through evolutionary processes Workers have increased focus on S&H Workers have increased focus on S&H

5. National Safety Council 5 Performance Measurement Multiple points of measurement Multiple points of measurement  Leading indicators  Lagging indicators Qualitative & quantitative measurements Qualitative & quantitative measurements Systematic processes to identify root causes Systematic processes to identify root causes Covers all organizational levels Covers all organizational levels Focus on the management system - not the outcome Focus on the management system - not the outcome How did we let this happen?

6. National Safety Council 6 Reactive Measurement Systems Failure-based measurements Failure-based measurements Number of injuries / deaths Number of injuries / deaths Number of cases of workplace-related illness Number of cases of workplace-related illness Number of spills Number of spills Number of lost work days Number of lost work days Cost of accidents Cost of accidents

7. National Safety Council 7 Proactive Measurement Systems Proactive measures which indicate the well-being or otherwise of our SH&E Management Programs Proactive measures which indicate the well-being or otherwise of our SH&E Management Programs Examples Examples  Numbers of inspections, audits, assessments carried out How much SH&E training has been done How much SH&E training has been done

8. National Safety Council 8 Key Measurement Areas Management commitment & involvement Management commitment & involvement Employee involvement Employee involvement Integration of SH&E into business Integration of SH&E into business Health performance indicators Health performance indicators Safety performance indicators Safety performance indicators Environmental performance indicators Environmental performance indicators Psycho-social indicators Psycho-social indicators Workplace condition indicators Workplace condition indicators Business performance indicators Business performance indicators Management system indicators Management system indicators

9. National Safety Council 9 Management Commitment & Involvement Policy Policy  Existence & adequacy Roles & responsibilities defined Roles & responsibilities defined Accountability Accountability Resources Resources  Financial, physical, human Champion / role model Champion / role model Conducting assessments to support improvements & change Conducting assessments to support improvements & change

10. National Safety Council 10 Employee Involvement Empowerment & ownership of SH&E programs Empowerment & ownership of SH&E programs Joint safety & health committees Joint safety & health committees Labor relations Labor relations Employee attitudes & perceptions Employee attitudes & perceptions Regular meetings & toolbox talks Regular meetings & toolbox talks

11. National Safety Council 11 Who Owns the Safety Program? BELONGING “I’m an important team member” BELONGING “I’m an important team member” OPTIMISM “I expect the best” OPTIMISM “I expect the best” SELF-BELIEF “I can do it” SELF-BELIEF “I can do it” SELF-ESTEEM “I’m a valuable person” SELF-ESTEEM “I’m a valuable person” PERSONAL CONTROL “I’m in control” PERSONAL CONTROL “I’m in control” EMPOWERMENT “I can make a difference”

12. National Safety Council 12 Integration of SH&E into the Business SH&E considered in all business decisions SH&E considered in all business decisions SH&E included on the agenda of management meetings SH&E included on the agenda of management meetings Common documentation & systems Common documentation & systems Included in company Annual Reports Included in company Annual Reports

13. National Safety Council 13 Production Common Goals & Integrated Strategies Integrated Business System DistributionSH&EQuality OtherAccountingHuman Resources

14. National Safety Council 14 Premises (Place of work) People Procedures Plant & Substances Organization Control Co-op -eration Commu- nication Competence Performance Standard Setting 1st STAGE CONTROLS Control of Inputs  Minimize hazards entering org Physical Resources Human Resources Information Products & Services By-products Information 2nd STAGE CONTROLS Control of Work Activities  Minimize/eliminate risks inside org  Create supportive culture 3rd STAGE CONTROLS Control of Outputs  Minimize hazards outside org, arising from work activities, products & services

15. National Safety Council 15 Health Performance Indicators Medical surveillance Medical surveillance Industrial hygiene surveys Industrial hygiene surveys Access to medical facilities Access to medical facilities First aid and CPR First aid and CPR Ergonomics Ergonomics Sanitation & food hygiene Sanitation & food hygiene Back-to-work programs Back-to-work programs Off-the job and wellness programs Off-the job and wellness programs

16. National Safety Council 16 Safety Performance Indicators Regular safety inspections Regular safety inspections Job/task analysis Job/task analysis Hazard identification & risk assessments Hazard identification & risk assessments Emergency plans Emergency plans Accident investigation Accident investigation Contractor management Contractor management External/ 3rd party audits External/ 3rd party audits

17. National Safety Council 17 Environmental Performance Indicators Emissions to air, water & ground Emissions to air, water & ground Energy usage Energy usage Water usage Water usage Waste management, disposal & reduction Waste management, disposal & reduction Recycling of wastes Recycling of wastes Sustainable business Sustainable business Handling spillage & emergency planning Handling spillage & emergency planning

18. National Safety Council 18 Psycho-Social Issues Stress Stress Unhealthy lifestyles Unhealthy lifestyles  Alcohol & drugs  Obesity  Tobacco HIV /AIDS HIV /AIDS Violence in the workplace Violence in the workplace Mental illness Mental illness Suicide Suicide Aging populations Aging populations Employee support Employee support

19. National Safety Council 19 Workplace Conditions Clean & hygienic Clean & hygienic Tidy & orderly Tidy & orderly Safe & healthy Safe & healthy Well maintained Well maintained Comfortable Comfortable Ergonomically friendly Ergonomically friendly

20. National Safety Council 20 Business Performance Indicators Productivity Productivity Quality Quality Loss control Loss control Labor relations Labor relations Bottomline profits Bottomline profits Workers’ comp & insurance premiums Workers’ comp & insurance premiums Company reputation Company reputation Absenteeism Absenteeism

21. National Safety Council 21 Effective Safety Management Appropriate Safety Management System Appropriate Safety Management System Fits into the other functions of your business Fits into the other functions of your business Improves productivity Improves productivity Reduces costs Reduces costs Look for Continuous Improvement

22. National Safety Council 22 NSC: 9 Elements of a Successful SH&E Management System Employee empowerment and involvement Employee empowerment and involvement Motivation, behavior, and attitude Motivation, behavior, and attitude Employee competency-building (training and orientation) Employee competency-building (training and orientation) Cultural and Behavioral Cultural and Behavioral Hazard recognition, evaluation, and control Hazard recognition, evaluation, and control Workplace design and engineering Workplace design and engineering Operational SH&E programs Operational SH&E programs Operational and Technical Operational and Technical Management leadership and commitment Management leadership and commitment Organizational communications and system documentation Organizational communications and system documentation Assessments, audits, evaluations, and continuous improvement Assessments, audits, evaluations, and continuous improvement Administrative and Management Administrative and Management

23. National Safety Council 23 Evaluation Planning & Implementation Main Elements of the ILO OSH Management System Organizing Action for Improvement Policy Continuous Improvement

24. National Safety Council 24 BS 8800 Management Model Initial Status Review OHS Policy Planning Implementation & Operation Checking & Checking &CorrectiveAction ManagementReview ContinuousImprovement

25. National Safety Council 25 Continuous Improvement Process Model Phase 3 Set Goals “Should be” Phase 3 Set Goals “Should be” Phase 2 Establish a Baseline “As is” Phase 2 Establish a Baseline “As is” Phase 5 Review and Adjust “Could be” Phase 5 Review and Adjust “Could be” Phase 4 Develop and Implement Plans “Close the gap” Phase 4 Develop and Implement Plans “Close the gap” Phase 1 Management Leadership and Commitment Phase 1 Management Leadership and Commitment 9 Elements

26. National Safety Council 26 Improving the Safety Process Reduced injuries Reduced injuries Reduced costs from accidents & illness Reduced costs from accidents & illness Improved employee morale Improved employee morale Improved public image Improved public image Increased production Increased production Better quality Better quality Increased Bottomline Profits

27. National Safety Council 27 Continuous Improvement Process improvement Process improvement Task methodology improvements Task methodology improvements Innovation Innovation Sustainability Sustainability Reducing risks Reducing risks Improving productivity Improving productivity Improving quality Improving quality

28. National Safety Council 28 SH&E Excellence Key Elements: Management Leadership Management Leadership Employee Involvement Employee Involvement Performance Measurement Performance Measurement SH&E Improvement Processes SH&E Improvement Processes

29. National Safety Council 29 Safety Performance Measurements Mixture of reactive and proactive measures Mixture of reactive and proactive measures Variety of different benchmarks Variety of different benchmarks  Compliance, industry benchmarks, or best practice Cover all levels of the organization Cover all levels of the organization  Management, supervisors, workers Cover different parts of the organization Cover different parts of the organization  Plant, department, section, workgroup

30. National Safety Council 30