You Get What You Measure: Tips for Establishing Safety Metrics

Phil La Duke

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Introduction

• Housekeeping• Introductions

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As Easy as 1-2-3!

Determine the Goal

Define a metric

Measure and track your progress

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Determine the Goal

What’s Our Goal?To create an environment where employees face to lowest possible risk of injuryReduce the productivity impairment caused by injuriesSupport operating efficiencyOptimize human capital

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Determine the Goal

You may find the desired state of safety goes far beyond zero injuries…

Minimal riskZero fraudulent claimsComplete employee participation in safetyZero downtimeLowest possible Workers’ Compensation ReservesContinuous Improvement of safety

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What is Worker Safety?

Safety is the term we use to describe the degree to which a worker is in jeopardy of being injured in the workplace.– Does zero injuries mean a workplace is safe?– Does 100% compliance mean a workplace is safe?– Does zero hazards mean a workplace is safe?– What does our Workers’ Compensation costs tell us

about safety?– How do we know that a workplace is “safe”?

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Defining a Metric

What will we measure?Methodology (how will we measure it?)Indicators (What are the indicators that we are being successful)Criteria for success (How good is good enough?)Interpretation of the Metric (What is this metric telling us)

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Example

Goal: Reduce the productivity impairment caused by injuries

Metric: Number of Injuries that resulted in downtimeCost of InjuriesDowntime caused by injuries

Indicators: Workers’ Compensation ClaimsInjury response timeCost of Injury-related DowntimeLost Work Day WagesFines Legal settlements & judgments

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Measurement Methodology

Who?What?Where?When?How Much?How Many?

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Whatever is seen as a key to the companies success:• Costs• Risk and liability• Compliance• Response Time• Quality• Down-time• Turn over• Morale

What Should We Measure?

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Validate Your Metric

What do improvements to the following metrics tell you about your progress toward goal?

Injury numbersWorkers Compensation Complete employee participation in safetyZero downtimeLowest possible Workers’ Compensation ReservesContinuous Improvement of safety

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Pick Any Two?

cost

quality

timing

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For Example

Average cost of first aid treating injuries:

Medical supplies + Medical Wages + Injured WagesTotal Number of Injuries

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For Example

Monthly total September:

$1,000 + $5,000 + $ 4,00010 = $1,000

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For Example

Average cost of treating first aid injuries:

Medical supplies + Medical Wages + Injured WagesTotal Number of Injuries

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Criteria for Success

Distinguish between goals and targetsOperationally define successUnderstand what success looks like in lagging indicatorsUse leading indicators to check for unintended outcomes

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Interpretation of the Metric

Understand what your metrics are telling youDon’t make excuses when your metrics tell you that you are failing (or that you have failed)Look for statistical noise and continuously improve your metricsBroadcast your successes

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Example

LADUKECO has set cost reduction as one of it’s strategic goals and it’s up to you to establish measurements for safety that support this goal

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Measure & Track Your Progress

Data AnalysisTracking ProgressDesigning Interventions

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Leading Versus Lagging Indicators

• Which is more important?

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Trailing Indicators

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Leading Indicators

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Trend Analysis: Hazards Found

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Trend Analysis: Hazards & Injuries

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Tracking Progress

• Score Cards• Dashboards

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Sample Scorecard

Thank You!