Measuring performance Loading complete! Measuring performance Measuring performance Measuring performance Measuring performance What’s performance measurement about? Measuring performance Although we may not realise it, we measure performance in all aspects of our lives Measuring performance To measure performance in a useful way, indicators must be established to answer questions such as: Measuring performance To measure performance in a useful way, indicators must be established to answer questions such as: • What is going on around us? Measuring performance To measure performance in a useful way, indicators must be established to answer questions such as: • What has happened so far? Measuring performance To measure performance in a useful way, indicators must be established to answer questions such as: • What might we need to respond to? Measuring performance Measurements that give us information on the outcomes of our previous actions are called reactive indicators Measuring performance Measurements of how the current situation could impact on future performance are known as proactive indicators Measuring performance If you were the manager of a stationery supply company… …what reactive indicators would help you to evaluate your current sales performance? Measuring performance If you were the manager of a stationery supply company… …what proactive indicators could you measure in order to provide information on the future? Measuring performance How do you measure health and safety performance? Measuring performance Measuring performance Reactive measurement focuses on collecting information on the outputs of your health and safety management system Measuring performance Reactive measurement focuses on collecting information on the outputs of your health and safety management system Measuring performance Reactive measurement focuses on collecting information on the outputs of your health and safety management system Measuring performance Reactive measurement focuses on collecting information on the outputs of your health and safety management system Measuring performance Reactive measurement focuses on collecting information on the outputs of your health and safety management system Measuring performance You can use this reactive data to calculate your injury incidence rate (the number of reportable injuries per 100,000 employees): Number of reportable injuries in a given time period (one year) x 100,000 Average number of employees during that time period Measuring performance You can use this reactive data to calculate your injury incidence rate (the number of reportable injuries per 100,000 employees): 2 reportable injuries 50 employees Measuring performance You can use this reactive data to calculate your injury incidence rate (the number of reportable injuries per 100,000 employees): 2 reportable injuries x 100,000 50 employees Measuring performance You can use this reactive data to calculate your injury incidence rate (the number of reportable injuries per 100,000 employees): Your injury incidence rate: 4000 (per 100,000 employees) Measuring performance Once calculated, you’ll be able to compare your injury incidence rate with other rates in your industry to measure your performance Your injury incidence rate: 4000 Other branches/locations: 519 1105 7514 Measuring performance Once calculated, you’ll be able to compare your injury incidence rate with other rates in your industry to measure your performance Your company’s overall rate: 1036.6 National industry rate: 500.8 Measuring performance Fatal injury incidence rates of some industries: Agriculture, hunting, forestry and fishing: 6.0 Mining, water, gas and electricity: 3.9 Manufacturing: 1.2 Construction: 5.1 Service: 0.3 National incidence rate: 0.8 Measuring performance Non-fatal (major/3-day) injury incidence rates: Agriculture, hunting, forestry and fishing: 748.4 Mining, water, gas and electricity: 1306.9 Manufacturing: 1127.7 Construction: 1095.3 Service: National incidence rate: 500.8 622.1 Measuring performance What are the limitations of only measuring accident, incident and ill health reports? Measuring performance Proactive measurement provides information on how health and safety is being managed before undesired events occur Measuring performance You’ll need to look at the inputs that contribute to health and safety management: • quality of the work environment and equipment Measuring performance You’ll need to look at the inputs that contribute to health and safety management: • quality of the work environment and equipment • effectiveness of systems and procedures Measuring performance You’ll need to look at the inputs that contribute to health and safety management: • quality of the work environment and equipment • effectiveness of systems and procedures • behaviour and ability of people Measuring performance For example, if you intend to carry out an inspection once a week, you can proactively measure how many you actually perform Measuring performance A good proactive indicator should be: • objective • easy to measure • cost effective to gather • relevant to the group whose performance you’re measuring Measuring performance What are some indicators that could be used to proactively measure health and safety? Measuring performance Remember: there’s no ‘one size fits all’ when it comes to proactive indicators – find out what works best for your organisation Measuring performance A range of people will be interested in this information, both internally and externally: • • • • senior management line managers employees safety/employee representatives • shareholders Measuring performance A range of people will be interested in this information, both internally and externally: • • • • enforcement bodies insurance company clients the public Measuring performance What is auditing? Measuring performance Auditing aims to find evidence of whether the current management system complies with the organisation’s policies and objectives Measuring performance An internal audit is performed by staff within the organisation in order to evaluate the effectiveness of the current system Measuring performance An external audit is undertaken by a third party to provide an independent view, usually for interests of other stakeholders Measuring performance Audits typically use three types of evidence: • documentation Measuring performance Audits typically use three types of evidence: • documentation • interviews Measuring performance Audits typically use three types of evidence: • documentation • interviews • observation Measuring performance As a manager, you (along with senior management) may be involved in producing an action plan to deal with audit findings Measuring performance Getting it right: • Reactive indicators measure your outputs; easily gathered, but have limitations • Proactive indicators measure your inputs; powerful, as they can provide warnings • Audits provide a check on whether your systems are effective Measuring performance Key learning points: • What’s performance measurement about? • How do you measure health and safety performance? • What is auditing? Measuring performance Key learning points: • What’s performance measurement about? • How do you measure health and safety performance? • What is auditing? Measuring performance Returning to menu…