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How to Evaluate the Safety Performance of Contractors Using leading & lagging indicators
- 1. Thursday, August 9, 2018 12pm MT / 2pm ET
- 2. Dennis Robinson Business Development, BROWZ Pat Cunningham Director of Safety & Auditing Services, BROWZ Upcoming Webinars > www.browz.com/webinar
- 3. Why Evaluate? …we do it everywhere else
- 4. Why It’s important to evaluate the safety performance of contractors?
- 6. BROWZ contractors outperform industry averages for key safety metrics. Download the full report at nsc.org/contractormanagement
- 7. Download the full report at nsc.org/contractormanagement
- 8. Leading What are they doing today to sustain or improve performance for tomorrow. Lagging Looking backwards and scoring performance over time through metrics.
- 9. • You hire a company to perform a service. • You reviewed their OSHA logs • They appear to be a safe and qualified company
- 14. TRR LWR DART 4.8 0.0 0.0 Rates Before (incorrectly reported) TRR LWR DART 9.5 4.8 9.5 Rates After (correctly reported) TRR LWR DART 2.6 0.9 2.0 Industry Avg.
- 17. [Experience Modification Rate] Experience modifier or experience modification is a term used in the American insurance business and more specifically in workers' compensation insurance. It is the adjustment of annual premium based on previous loss experience.
- 19. Health & Safety AnnualAccident History Injury & Illness Rates Citations &Violations Safety Programs & Policies Safety Manual Audits Financial Stability Bankruptcy Liens Judgements Third Party Financial ratings Industry Risk Comparison Corporate Social Responsibility Sustainability Waste Management Child Labor Anti-Corruption Ethics Insurance & Risk Certificates PolicyTypes & Limits Endorsements AM Best Ratings Certificate Holders Supplier Demographics Industry Codes Licenses / Expirations Quality Programs Supplier Diversity Ownership
- 20. • How will you review and verify data? • How often should you track? • Trending data
- 21. Task Hours per year Explaining Requirements 1 Answering questions specific to compliance / holding accountable 2 Collecting documentation 1.5 Entering data 1.5 Validating data 2 Monitoring data for expiration / change 2 Coordinating data requests with other departments 2 Total Hours/Year Per Contractor 12
- 29. TRR – Total Recordable Rate DART – Days Away Restricted EMR– Experience Modification Rate LWR– Lost Workday Rate Regulatory Citations or Transferred
- 31. BROWZ “Big 6”, Written Safety Program Audits (Federal Level): 1. Hazard Communications, 1910.1200 2. Lock-out/Tag-out, 1910.147 3. Fall Protection, 1926.501 - .503 4. Confined Space/Permit Confined Space, 1926.1201 5. Personal Protective Equipment, 1910.132 6. Emergency Action Plan, 1910.38
- 32. Regulatory Compliance: • Injuries happen every day at compliant companies: • A supplier could have process, but demonstrate poor safety performance • Employer, employee & contractor relationships critical • Compliance-based assessment alone provides limited insight – current phrases: • “Moving the Curve“ • “Invited Participation” • “Joint Responsibility” • “Journey to Safety Excellence”
- 33. 1. Management Leadership 2. Worker Participation 3. Hazard Identification & Assessment 4. Hazard Prevention & Control 5. Education & Training 6. Program Evaluation & Improvement 7. Communication & Coordination for Host Employers, Contractors, Staffing Agencies.
- 34. Assessment objective: “Ability of a company to work safely for the client” • Depth of their safety program • Aid to help client on hiring decisions Scored best practice assessment – not a pass/fail Provides a gap analysis for the supplier Most suppliers want to improve their safety programs & seek mentoring from their clients Provides a common language and dialog for on-going discussion Repeat assessments allow for visibility of program trends
- 35. “We hope competitor companies are participating in the BROWZ assessment system, so their safety efforts are also measured.” “This review will help us be a better safety performing company.” “…glad to see industry is doing more to evaluate supplier’s safety programs, which is heading industry in a positive direction.”
- 36. Level 1 Level 2 Level 3 Contractor Assessment Safety Program Audit Specialty Audits Risk
- 37. Upcoming Webinars > www.browz.com/webinar Request a Demo www.BROWZ.com/demo Dennis Robinson Business Development, BROWZ Pat Cunningham Director of Safety & Auditing Services, BROWZ
Editor's Notes
- Good morning, good afternoon. Welcome to our final edition of DEMO WEEK. Today we’ll be discussing how to evaluate the safety performance of contractors using leading indicators. As a reminder, you are in listen only mode. We do want to hear from you though. If you have any comments or questions during this presentation, please send through the Q&A section of WebEx. We’ll leave time at the end to answer specific questions. As I mentioned, this is the final edition of a 4-part webinar series on Contractor Management. If you want to watch the other demos go to www.browz.com/webinar
- Let me introduce our speakers today. My name is David Askvig, and I will be your host today. I’m joined by… Dennis Robinson who has been with BROWZ for almost 12 years and is currently working in Business Development. Prior to his current role, Dennis worked with Operations managing the Assessment Specialist team responsible for the validation of all contractor documentation. I am also joined by Pat Cunningham who is the director of Safety and Auditing Services at BROWZ. Pat Cunningham has a Masters in Occupational Health & Safety Management and over 25 years of experience in the field of safety. In addition to his appointment to the VPPPA Education Committee, Pat is a Delegate to the National Safety Council. Prior to BROWZ, Pat worked for Xcel Energy as the Director of Corporate Safety.
- Purchasing a Mortgage Selecting a School Hiring an employee Buying a house Buying a Car (consumer and the bank)
- Dennis Robinson Lot of reasons Risk/Brand Equity Well-being of employees EMR Rates lower, fines by OSHA
- Dennis Robinson There are 3 potential scenarios when implementing a contractor management system. Do nothing. Do it in house. Outsource So what are the risks of doing nothing. There are lives at risk, on top of the injuries, there is a financial burden, and brand equity No organization is immune from accidents and it’s only a matter of time before a safety incident occurs at a worksite. A recent study by Conoco Phillips estimates that “for every single workplace fatality there are at least 300,000 at-risk behaviors” taking place. Pat: Speak to regulatory mandate… -There are OSHA Regulations that dictate the need to qualify -There isn’t one document… but it is embedded in various documents -clearly OSHA has issued the need for joint responsibility for contractors and host employers
- When you do it well, there can be some massive benefits… Pat can you talk about the recent NSC Study. Pat Cunningham We’re often asked, does prequalification make a difference. The NSC conducted a study with the BROWZ database of contractors. They compared the BLS industry averages for key safety metrics with the BROWZ contractors and found a 34% reduction in TRR, 65% reduction in LWR, and a 48% reduction in DART.
- Pat Cunningham In addition to lower rates across the board… they found that the longer a contractor remains registered with BROWZ, the greater the improvement in TRR, DART, and LWR. This means that BROWZ continues to help contractors improve and become safer over time. What does this mean? This means that when you hold your contractors accountable and hold them to a higher standard, you get better results You can download the full report at nsc.org/contractormanagement.
- Over the course of our time today, we’re going to cover both lagging and leading indicators. PAT: Lagging indicators are like looking in the rear view mirror Leading indicators drive business in the direction you want to go. Set up the conversation for the rest of the presentation Definition of each Lagging indicators are a foundation Say we’re going to cover lagging indicators first and how they are helpful And then look at practical applications or ways to look at leading indicators
- TRANSITION: So let’s start this off by talking about lagging indicators.
- First case… but when look at deeper. You have what was marked as job transfer restriction, should have been a days away from work… when you switch it. That’s what happens to their rates.
- Dennis Pat Add Comment: This is part of the BROWZ service. We do this for you…
- Dennis: ASK PAT Do you have any comments about being prepared when OSHA comes onsite?
- Pat Comment… More severe than industry average or less severe
- Dennis Pat – Is there anything else you should be doing here? (Should be sitting down each year with the contractor to see how they did ) Educated Estimate, Could me more or less Dennis - Advance Slide Conservatively plan for 1 FTE -300 contractors 1 hr a year explaining requirements 2 hrs a year answering questions specific to compliance / holding accountable 1.5 hrs a year collecting documentation 1.5 hrs a year entering data in spreadsheets/data 2 hrs a year validating data 2 Monitoring data for expiration 2 hrs a year coordinating with other departments unless able to share data 12 hrs spent each year per contractor = 173 contractors If you can get it down to 7 1/300
- Brett Armstrong Start with the end in mind. So why are we here? I think it is safe to say that everyone here, appreciates the need for prequalification and management program. The question that inevitably comes up is should we do this in house or work with a third party provider. We want to help you make a case for a supplier/vendor management at your company. There’s a lot of depth to thinking that goes into the creation of ROI. The most challenging aspect in this particular case is not the formula as much as the unknown resources necessary to create an effective contractor management solution. We wanted to build a calculator that accounted for all the nuances of a program. We’ll be showing you this towards the end of the presentation. This is important because we’re giving you foundational context and building blocks to do this. It’s not just a one-pager, by the end of this presentation you will have a tool to do this yourself and make adjustments based on the structure and culture of your own organization. We want to give you the tools and practical ways to communicate the ROI to other potential share holders
- Pat: Do you have any comments on the complexities of managing the data? Configurability.
- This is BROWZ OneView. What you can expect to see when logging in and viewing your suppliers as a BROWZ Client. This is your dashboard to get insight into your contractors and suppliers The old adage, you can’t manage what you can’t measure.
- Take the guess work out of it. You can weight the importance items Scorecards are done differently for each client
- You can look up a historical view of the safety stats for a company. Keep in mind, we collect and compile these all for you. Pat: Add a comment: Pat to reiterate the value of using more than one metric
- You can look up a historical view of the safety stats for a company. Keep in mind, we collect and compile these all for you. Pat: Add a comment; Pat to add comment about information easily accessible
- You can look up a historical view of the safety stats for a company. Keep in mind, we collect and compile these all for you.
- Dennis Robinson Pat, do you have any comments on Lagging indicators and how that’s been valuable
- Pat Cunningham Definition: Leading indicators are proactive or predictive measurements, as opposed to lagging indicators, which are measurements collected after the fact. Look at indicators that “drive” a business they want to go. How they can be used for evaluating contractor performance.
- Pat Rework What are safety program audits Why are they important How does BROWZ perform these Benefits? Etc.
- Pat Rework DENNIS ask Pat: Do you have an example where a compliance only assessment didn’t tell the full story
- Pat Rework
- Pat Rework
- Pat Cunningham Product Summary
- At this time, I want to invite the audience to ask questions. To send in a question, use the Q&A function at the top of your screen. This is how you can chat in a question. We’d be very happy to answer any of your questions. While you’re submitting your questions, I wanted to mention if you’re interested in how BROWZ can help you in the contractor prequalification and management process, please contact us through the website. There’s a link on the screen where you can request a demo. Put in your information and we’ll give you a call right away. Seeded Questions: Can I incorporate the EMR into the contractor scorecard, so that it accounts for part of the 100% score? - Dennis Can you provide examples of contractors and work types that you’d do safety program audits or safety management system assessments for? Or do you recommend sending all your contractors through that? - Pat I know you’re showing a fictitious example, do you really find companies that are misreporting data. - Dennis I’m intrigued by what I heard, what’s the next step for us? – Dennis In your experience, how many companies are truly using leading indicators as you mentioned? – Pat What does this cost? – Dennis (ROI)