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Leading vs Lagging Safety Indicators

This document discusses leading and lagging performance indicators for measuring safety. It defines leading indicators as positive measures of compliance with safety standards and risk reduction efforts. Lagging indicators refer to negative outcomes like injuries and accidents. The document advocates measuring leading indicators like completed safety inspections, training, and risk assessments to show that safety management systems are working to prevent lagging indicators. It provides examples of how one company measures leading indicators for management bonuses and safety performance scoring. Overall it promotes using leading indicators to focus on proactive safety management rather than just reactive reporting of injuries.

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Nachar A N
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101 views23 pages

Leading vs Lagging Safety Indicators

This document discusses leading and lagging performance indicators for measuring safety. It defines leading indicators as positive measures of compliance with safety standards and risk reduction efforts. Lagging indicators refer to negative outcomes like injuries and accidents. The document advocates measuring leading indicators like completed safety inspections, training, and risk assessments to show that safety management systems are working to prevent lagging indicators. It provides examples of how one company measures leading indicators for management bonuses and safety performance scoring. Overall it promotes using leading indicators to focus on proactive safety management rather than just reactive reporting of injuries.

Uploaded by

Nachar A N
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Measuring Safety Performance

With Leading Indicators

A N Nachar
Measuring Safety Performance
What are you doing to measure your
organization’s safety performance?

Today’s objective: Understand the concept of –

leading performance indicators


Versus
lagging performance indicators
Measuring Safety Performance

“What doesn’t get


measured just
doesn’t get done”
Measuring Safety Performance
Lagging indicators
(the traditional approach to managing safety)

 Injury/ ill statistics


 Workers’ compensation data

“illogical to count things you don’t


intend to happen”
Measuring Safety Performance
Leading performance indicators-
 What do we intend to happen?

 Measure the presence rather than

absence of safety
Measuring Safety Performance
Sample leading safety indicators
 % of scheduled safety inspections completed
 % of scheduled Job Observations completed

 % of new employee workstations evaluated

 % of safety related work orders completed

 % of safety trainings completed

In every month
Leading & Lagging
 Leading indicators
 positive indicators

 Compliance

 Risk reduction, Injury reduction

 “what was made to happen”

 Lagging indicators
 Negative indicators

 Non-compliance

 Number of accidents, man-hours lost etc


Leading Indicator

Due Diligence to Show That:


 Safety management system is working
 Preventative “Make it Happen” safety
objectives are being taken
 Improve assurance that lagging indicators
will remain low
Leading Indicator

 Set a standard of performance


 Measure that performance

 Leading indicators are a measure of


performance
Measuring What Matters Most
What matters most?
 Risk
 Commitment
 Sustenance
What should we measure?
1. Risk
2. Commitment
3. Sustenance
Principles of Setting and
Measuring Leading Indicators
 Measure against standards (programs & procedures)
 Objective & verifiable by auditors

Place on corporate agenda


 Corporate goals to include leading indicators
 Report to CEO & BOD
 Review with CEO & BOD
 Tied to pay for performance process
Checks and Balances
To ensure the system works “honestly”
 Joint safety committee
 Internal auditors – union/ management
 External auditors
 Safe workplace association
 Regulatory agency audits
 SMS - knits it all together
Safety Management System
 Policy stating commitment
 Demonstrate commitment by putting leading
indicators in corporate strategic plan
 Assessment of risks
 Setting safety standards via
 Programs & procedures

 Provide training on standards


 Clear - two way communication
 Evaluating performance of:
 Individuals, programs & safety system

 Annual performance report on strategic goals


Measuring Safety At Horizon
“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
Measuring Safety
Measuring leadership:
 Safety programs reviewed by –
 BOD (--%)

 VPs (--%)

 Departmental Managers (--%)

 Shopfloor (--%)
Measuring Safety
Program Compliance:
Measure actual over expected #
 Work observations (--%)
 Risk assessed & reduced (--%)
 Accident investigations (--%)
 Increase in preventative incident
reporting (--%)
Year Over Year Results

What gets measured gets done


Work Observations
% Score actual / expected
160 146
140 131

120
94
100
% Score

71 66
80 62
55
60
40
40 28
20
0
1996 1997 1998 1999 2000
1 2001 2002 2003 2004
Annual checks
 Two Internal Audits
 One external audit
 Workplace risk assessment of newly
introduced machines / activities / jobs
Bottom Line

Safety Performance score of


--%

A single meaningful number that provides a


focus on making safety a high priority
Strengthen & Sustain
Safety Culture
Building on Success Event
 Celebrate leading indicator results
 Invite all executives & directors
 Team member presentations
 Appreciation : certificates / gift
 Publicize companywide
 Train & re-train
 Yesterday’s trainee, today’s trainer

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