Setting Safety KPI’s that work
Key Performance Indicator
John McGerty (Grad IOSH Dip RSA)
Safety, Health & Environment Manager
Gilbert-Ash N.I. LTD
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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 AimsOver 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
Continuous
improvement
in health and
safety
management
performance
Initiatives
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
Continuous
improvement
in health and
safety
management
performance
Initiatives
New inspection regime,
introducing quarterly
inspections.
Destination Zero
Poster, email and
leaflet campaign aimed
encouraging staff to
think what if...not if
only.
KPI
Number of
H&S
Inspections
Number of
Lost Time
Accidents
Our benchmark or baseline...
Strategic
Aim
Continuous
improvement
in health and
safety
management
performance
Initiatives
New inspection regime,
introducing quarterly
inspections.
Destination Zero
Poster, email and
leaflet campaign aimed
encouraging staff to
think what if...not if
only.
KPI
Last
year
Number of
H&S
Inspections
3
Number of
Lost Time
Accidents
5
What is our target?
Strategic
Aim
Continuous
improvement
in health and
safety
management
performance
Initiatives
New inspection regime,
introducing quarterly
inspections.
Destination Zero
Poster, email and
leaflet campaign aimed
encouraging staff to
think what if...not if
only.
KPI
Last
year
2012
Target
Number of
H&S
Inspections
3
4
Number of
Lost Time
Accidents
5
2
Lets measure how we actually did..
Strategic
Aim
Continuous
improvement
in health and
safety
management
performance
Initiatives
New inspection regime,
introducing quarterly
inspections.
Destination Zero
Poster, email and
leaflet campaign aimed
encouraging staff to
think what if...not if
only.
KPI
Last
year
2012
Target
Actual
Number of
H&S
Inspections
3
4
4
Number of
Lost Time
Accidents
5
2
3
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
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