Presented by Mark Wright, MD, FEFO Consulting What’s covered? Is your health & safety strategy effective? Do your metrics allow you to learn, adjust and improve? If either your strategy is wrong or metrics are in effective, there is a good chance there are lost opportunities for success. The Objective Results (OKR) approach to setting goals is a great way to effectively support a strategy and has been used at Google, LinkedIn Airbnb, and many more. OKR’s are often complimented by Key Performance Indicators (KPI)

1. OKR vs KPI
Measuring Health & Safety Performance
June 2022
Measure what matters!

2. TEAM CLIENTS REACH OUTCOMES
✓ Statistically reliable >0.9 benchmarks
✓ Credible Lead Indicators
✓ Integrated Health AND Safety
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Poll
How often does your organisation actively involve operations
to review health & safety strategic objectives?
• 4 times / year
• 2 times / year
• Annually
• Rarely / Never

4. A. Why
B. What
C. Myths
D. OKR’s vs KPI’s
E. Additional Resources
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Why

6. Proactive
Care
Reactive
Response
Reactive
Reporting
Proactive
Compliance
Reactive
Externally
Internally
External Compliance
• Notifiable work
• Mandatory licenses
• Shareholder disclosures
External Compliance
• Notifiable incidents
• Shareholder disclosures
• Claim costs
Proactive
Performance vs Compliance
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Performance
Focus
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Myths
Hendrich Pyramid Injury Frequency Rate Validity

8. OKR vs KPI
Key Performance Indicator (KPI)
• Did we meet our objective?
• What needs to change?
• Do we need to do more?
Objective & Key Results (OKR)
• What do we want?
• Where are we going?
• Where do we want to play?
OKR
KPI
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9. Objective and Key Result Key Performance Indicator
Focus on the Future Business as Usual (BAU)
Ambitious Goal Attainable Goals
Qualitative Nature Quantitative Nature
Growth Oriented Output Oriented
OKR KPI
OKR vs KPI
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What are our Strategic Choices?
Objective: Improve forklift warehouse critical controls
Key Results:
• 100% forklifts fitted with sensors by Q1 FY23
• Critical control effectiveness improved 25% by Q4 FY23
How are we tracking?
• Critical controls
• Enabling controls
• Reliable benchmarks

10. 01 Bold
Meaningful change, improvement or growth.
Typically, covers priorities for next 30-90 days
02 Objective Meaningful, audacious and inspiring.
03 Key Results
Specific, measurable, aggressive. realistic,
timebound and verifiable.
04 Aligned
Organisational OKR’s cascade to teams and
individuals.
Balanced
OKR’s
What makes a good OKR?
01 Bold 02 Objective
03 SMART
04 Aligned
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11. Level Cascading Owner Comments
1.Organisation O KR Sarah
2.Team O KR Bill
Cascading OKR’s?
1.Organisation Example Owner Comments
Objective Improve forklift warehouse critical controls Sarah Strategic choice
KR 1 *100% forklifts fitted with sensors by Q1 – FY23 Bill Metric to track performance
KR 2, 3 etc. xxx
2.Team Example Owner Comments
Objective *100% forklifts fitted with sensors by Q1 – FY23 Bill From objective above
KR 1 Trial and evaluate three sensors by Q4 – FY22 Tony
KR 2, 3 etc. xxx
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12. Level Cascading
1.Organisation O KR
2.Team O KR
3. Individual O KR
Cascading OKR’s?
Rating
0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0
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• Did we meet our objective?
• Why / why not?
• What can you do more or differently?
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July-Sept Oct-Dec Jan-March April-June Comments
0.4 0.2 0.6 0.9
0.7 0.7 0.6 0.7
0.4 0.4 0.2 0.5

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What makes a good KPI?
Opinion-based
Evidence-based
Balanced
KPI’s
01
Predictive
02
Valid
03
Reliable
04
Important
05
Functional
06
Clear
01 Predictive Accurately forecasts the future.
02 Valid
Measures what you intended, statistically
meaningful.
03 Reliable
Repeatable providing statistically consistent
results.
04 Important Directly reflects an outcome that matters.
05 Functional
Used to inform operational and strategic risk.
Balances compliance vs performance.
06 Clear Understood and easily communicated.

14. Valid
Objective
Important
Functional
Clear
Predictive
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Evaluating right KPI’s
0
1
2
3
4
5
Potential
Consequence
Major and catastrophic consequence
• Important
• Not always clear
Health &
Safety Climate
Validated Surveys
• Statistically reliable and valid
• Potential to predict future
Lead Indicators
Quality vs Quantity
• Critical control effectiveness
• Enabling controls
TRIFR
Total Recordable Frequency Rate
• Objective, but not valid
• Does not represent performance

15. Potential
Consequence
Lead
Indicators
Health &
Safety Climate
Example KPI’s
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Major and catastrophic
consequence events
• Reactive Tier 2 and Tier 1 events
• Unrelated to injury classification
Enabling controls
• Timely action closure
• Effective responses
• Adopting shared learning
Critical controls
• Plant & vehicle sensors
• System requirements
• Onsite observations
• Human sensors
Statistically reliable health
AND safety survey
• Leadership
• Engagement
• Systems
• Health & Wellbeing

16. High
Maturity
Low
Maturity Reactive Proactive
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Metrics vs Maturity
Injury Frequency
Rates
Quantity
enabling controls
Reliable Survey
Benchmarks
Critical Control
Effectiveness
Potential
Consequence Ratings
Quality
enabling controls
OKR Ratings
KPI’s
OKR’s

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Measure what matters summary
KPI’s
OKR’s
= Measure what matters!
+

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Additional Resources
Critical Control Mgt. Blog
High
Maturity
Low
Maturity
Reactive Proactive
Reliable Survey
Benchmarks
Critical Control
Effectiveness
Potential
Consequence Ratings OKR Ratings OKR Blog and Template
The American ANSI/API
Recommended Practice
754 Fact Sheet

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