You Get What You Measure: Tips for Establishing Safety Metrics

Phil La Duke

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Introduction

• Housekeeping• Introductions

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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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What should we measure?

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

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Determine the Desired State

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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Defining a Metric

Measurement MethodologyCriteria for successInterpretation of the Metric

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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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Define the Desired State

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Obvious Costs of Safety

• Workers’ Compensation Costs• Insurance Premiums• Lawsuits• Fines

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Hidden Costs of Safety

• Legal Fees• Public Relations Fallout• Disruption of Productivity• Work Stoppages• Turnover• Lower Quality• Property Damage• Scrap

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Leading Indicators

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Trend Analysis: Injuries

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Sample Scorecard

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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

Thank You!

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Run Safety Like a Business

• Use zero-sum budgeting to develop a budget.

• Calculate realistic Return on Investment (ROI) for all your initiatives.

• Distinguish discretionary spending from non-discretionary spending.

• Look for—and present―other, lower cost options.

• Apply for training grants or safety grants to offset the costs of regulatory training.

• Look for ways to improve your efficiency and lower your costs.

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Integrate Safety Into Operations’ Activities

• Understand the Operations business model and ensure your business model supports it.

• Train Supervisors to conduct regular Safety inspections.

• Train Supervisors to conduct incident investigations on workers hurt in their area.

• Expand Safety in QOS Reviews/Scorecarding to include trailing and leading indicators.

• Assist Operations’ leadership in developing a safety strategy.

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Demonstrate the Value of Safety

• Calculate the real costs of your injuries.

• Use hard numbers and avoid the soft/fuzzy costs.

• Tie Safety to other Operations’ measurables.

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Demonstrate the Urgency of Safety

• Calculate your risk of injuries.• Calculate the cost of those injuries.• Express that projected cost in terms

of profits lost or additional production necessary to replace the money spent on injuries.

• Avoid “blood on the floor” tactics.• Don’t lay a guilt trip on Operations.

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Avoid Fads or Complex Initiatives

• KISS.• Recognize that lasting cultural change can

come out of economic stress.• Make “simple, practical, fast” your mantra.• Choose your battles.• Implement organizational development

that will produce an ROI within a year or less.

• Avoid rigid, complex, or otherwise confusing Safety initiatives.

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Don’t Cop Out

Don’t blame the economy for:• The lack of Operations’ buy-in.• Your lack of a viable Safety business

model.• Operations lack of interest in cost

avoidance instead of cost reductions.

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Conclusion

• Selling Safety in hard economic times is not all that different than selling Safety in good economic times.

• The secret to getting Operations to value Safety is to make Safety valuable.

• You can never sell anything unless you understand your customers, speak their language, and demonstrate the value of your products and services in relationship to what’s truly important to them.

• Questions?

Thank You!This presentation is

available at www.safety-impact.com.