Using Leading Indicators to Drive EHS Performance
Brian WanzenriedGavilon
Leading Indicators
61%
28%
5%6%
Importance of Measuring EHS Performance Using Leading Indicators
Extremely Important Very Important Moderately Important Slightly Important
Survey of 18 HES practitioners in the Mining, Construction, Manufacturing, and Professional, Scientific, & Technical Services Industries published in Transforming EHS Performance Measurement Through Leading Indicators, Campbell Institute, National Safety Council, 2013
Leading Versus Lagging
• Lagging: Retrospective, incidents that have occurred• Leading: Predictive and forward looking• Near misses
and directly controllable
Leading Versus Lagging Indicators
16.7
11.1
44.4
27.8
The Use of Leading and Lagging Indicators to Measure EHS Performance - Corporate
Level
Only Lagging Indicators
Mostly Leading Indicators With Some Lagging Indicators
Mostly Lagging Indicators With Some Leading Indicators
Equal Balance Between Lagging and Leading Indicators
6.7
40
26.7
20
6.7
The Use of Leading and Lagging Indicators to Measure EHS Performance - Site Level
Only Lagging Indicators
Mostly Leading Indicators With Some Lagging Indicators
Mostly Lagging Indicators With Some Leading Indicators
Equal Balance Between Lagging and Leading Indicators
Only Leading Indicators
Survey of 18 HES practitioners in the Mining, Construction, Manufacturing, and Professional, Scientific, & Technical Services Industries published in Transforming EHS Performance Measurement Through Leading Indicators, Campbell Institute, National Safety Council, 2013
Lagging Indicators
• Total incident rate• Other accidents or incidents• Spills and releases• Violations
Lagging Indicator Issues
0
1
2
3
4
5
6
7
8
9
Total Incident Rate
Monthly TIR Rolling 12-Month TIR
• Insufficient data
Lagging Indicator Issues
• Don’t identify cause of issue
Lagging Indicator Issues
• Safety incentive programs
Leading Indicators Defined
Proactive, preventative, and predictive measures that monitor and provide current information about the effective performance, activities, and processes of an EHS management system that drive the identification and elimination or control of risks in the workplace that can cause incidents and injuries.
Source: Transforming EHS Performance Measurement Through Leading Indicators, Campbell Institute, National Safety Council, 2013
Proactive, preventative, and predictive measures that monitor and provide current information about the effective performance, activities, and processes of an EHS management system that drive the identification and elimination or control of risks in the workplace that can cause incidents and injuries.
Source: Transforming EHS Performance Measurement Through Leading Indicators, Campbell Institute, National Safety Council, 2013
What Leading Indicators Do
• Monitor and evaluate performance• Motivate behavior, commitment, and improvement, • Anticipate, prevent or eliminate risks and losses
Leading Indicators Examples
Task• Audits• Behavioral based safety observations• Corrective actions and recommendations• Employee involvement• Inspections• Investigations• Management engagement activities• Meetings• Perception surveys• Preventive maintenance• Training
Measurement• Frequency• Number of or percent of participants• Number or percent completed• Number or percent completed on-time• Time spent
Example Leading Indicators
Honeywell• Indicators:
• Unsafe behaviors and conditions
• Results:• 108 recordable injuries in 2010• 54 recordable injuries in 2013• 100% increase in observations
Fluor• Indicators:
• Management participation in worker orientation, site walkthroughs, etc.
• Results:• Initial low scores addressed by
senior leadership• Management participation now
highest score based on audits
Practical Guide to Leading Indicators: Metrics, Case Studies and Strategies, Campbell Institute, National Safety Council, 2017
Example Leading IndicatorsOSHA Inspection and Clearing of Walkways• Problem:
• Slip, trip and fall incidents• Cluttered floors
• Indicator:• Frequency of floor inspections
and cleaning
• Goal:• Daily
OSHA Hazard Prevention and Control• Problem:
• Past due action items
• Indicator:• Percentage of past due action
items
• Goal:• Less than 10% past due
Using Leading Indicators to Improve Safety and Health Outcomes , Occupational Safety and Health Administration, June 2019
Identifying Your Leading Indicators
• What indicators• Goals and objectives• Intended audience• Already measured
• How many
Identifying Your Leading Indicators
• Use SMART• Specific• Measurable• Accountable• Reasonable, and• Timely
Training and Communication
• Who gathers leading indicator data?• How often will you gather data?• What do metrics mean?• What will be done with results? • How will you disseminate information and how often?
Evaluating Leading Indicators
• Rethink metrics• Correlation with lagging indicators
Evaluating Leading Indicators
7.17.1
64.3
21.4
Importance of Linking Performance on Leading Indicators to Changes In Lagging Indicators
Slightly Important Moderately Important Very Important Extremely Important
Survey of 18 HES practitioners in the Mining, Construction, Manufacturing, and Professional, Scientific, & Technical Services Industries published in Transforming EHS Performance Measurement Through Leading Indicators, Campbell Institute, National Safety Council, 2013
Leading Versus Lagging Indicator Correlation
0
10
20
30
40
50
60
70
0 0.5 1 1.5 2 2.5 3 3.5 4
Safe
ty In
spec
tions
Con
duct
ed
Total Incident Rate
Total Incident Rate Versus Inspections
0
1
2
3
4
5
6
7
8
9
0 0.5 1 1.5 2 2.5 3 3.5 4
Trai
ning
Hou
rs P
er E
mpl
oyee
Total Incident Rate
Total Incident Rate Versus Training
Performance Management
• Drives results• Shows leadership commitment• Requires fairness and communication of expectations
Leading Indicator Compensation
40
13.3
26.7
13.3
6.7
Extent to Which Executive Compensation is Tied to Leading Indicators
Not at All Very Little Some Quite a Bit A Great Deal
Survey of 18 HES practitioners in the Mining, Construction, Manufacturing, and Professional, Scientific, & Technical Services Industries published in Transforming EHS Performance Measurement Through Leading Indicators, Campbell Institute, National Safety Council, 2013
Leading Indicator Compensation
13.3
13.3
2040
13.3
EHS Professional's Accountability for Performance of Leading Indicators
Not at All Very Little Some Quite a Bit A Great Deal 0 1 2 3 4 5 6 7
Leading metrics are part ofperformance reviews, compensation,
promotion
EHS managers must answer to theboard or external stakeholders for
performance lapses
EHS managers are monitored byexecutives
EHS managers are responsible forcoordinating EHS efforts
How EHS Managers Are Held Accountable for Leading Indicators
Survey of 18 HES practitioners in the Mining, Construction, Manufacturing, and Professional, Scientific, & Technical Services Industries published in Transforming EHS Performance Measurement Through Leading Indicators, Campbell Institute, National Safety Council, 2013
Additional Information
• Breaking Up with Lagging Indicators, EHS Today Magazine, Cory Worden, March 15, 2016
• Does Your Incentive Program Meet OSHA’s Draft Safety and Health Program Management Guidelines
• A GPS For Safety, Terry Mathis, EHS Today, November 1, 2019
• Elevating EHS Leading Indicators: From Defining to Designing, Campbell Institute, National Safety Council, 2015
• Guidelines for Process Safety Metrics, Center for Chemical Process Safety, Wiley, New York 2010
• Leading vs Lagging Indicators: What’s the Difference?
• Practical Guide to Leading Indicators: Metrics, Case Studies and Strategies, Campbell Institute, National Safety Council, 2017
• Transforming EHS Performance Measurement Through Leading Indicators, Campbell Institute, National Safety Council, 2013
• Using Leading Indicators to Improve Safety and Health Outcomes , Occupational Safety and Health Administration, June 2019
Questions?