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?