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Safety Performance Outcomes

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Safety Performance Outcomes

  1. 1. Lloyd Hanson Driving Performance Outcomes September 30, 2009
  2. 3. <ul><li>Establish upstream factors to assess performance </li></ul><ul><ul><li>Near misses </li></ul></ul><ul><ul><li>Safety meetings </li></ul></ul><ul><ul><li>Process audits </li></ul></ul><ul><ul><li>Behavioral observations </li></ul></ul><ul><ul><li>Inspection of physical conditions “Safety Blitz” incorporating process safety </li></ul></ul><ul><li>Focus on activities that demonstrate employee involvement </li></ul>
  3. 5. <ul><li>Lost-time rate 54% improvement </li></ul><ul><li>Dart-rate 59% improvement </li></ul><ul><li>80% of mining operations worked without a lost-time injury </li></ul><ul><li>30% of mining operations worked without a recordable injury </li></ul><ul><li>Total incident rate 34% better than industry average </li></ul>
  4. 6. <ul><li>Commitment/Involvement Leadership Team </li></ul><ul><li>Standard Practices </li></ul><ul><li>Standardized Behavior-Based Process </li></ul><ul><li>Focused Communications </li></ul><ul><li>Measurement (leading indicators) </li></ul><ul><li>Ownership </li></ul>
  5. 7. <ul><li>Leading indicators measure effort to: </li></ul>Reduce Risk Reduce Injury Reduce Costs & Damage Increase Profit
  6. 8. <ul><li>Establish upstream factors to assess performance </li></ul><ul><ul><li>Near misses </li></ul></ul><ul><ul><li>Safety meetings </li></ul></ul><ul><ul><li>Process audits </li></ul></ul><ul><ul><li>Behavioral observations </li></ul></ul><ul><ul><li>Inspection of physical conditions “Safety Blitz” incorporating process safety </li></ul></ul><ul><li>Focus on activities that demonstrate employee involvement </li></ul>
  7. 9. <ul><li>Due Diligence to Show That: </li></ul><ul><li>Safety management system is working </li></ul><ul><li>Preventative “Make it Happen” </li></ul><ul><li>objectives are being taken </li></ul><ul><li>Improve assurance that lagging indicators will remain low </li></ul>
  8. 10. <ul><li>All well managed programs </li></ul><ul><li>Set a standard of performance activities </li></ul><ul><li>Measure/monitor that performance realtime </li></ul><ul><li> Leading indicators are a measure of performance </li></ul>
  9. 11. <ul><li>Celebrating Success </li></ul><ul><ul><li> breeds more success </li></ul></ul><ul><ul><li> “ we’ve improved – we can do even more” </li></ul></ul><ul><li>Sustainability over long term </li></ul><ul><ul><li> Stay on target </li></ul></ul><ul><ul><li> Encourage ongoing effort </li></ul></ul><ul><li>Reward proactive safety efforts </li></ul>
  10. 12. <ul><li>Commitment </li></ul><ul><ul><li>Board of directors </li></ul></ul><ul><ul><li>CEO </li></ul></ul><ul><ul><li>All levels of management and workers </li></ul></ul><ul><li>Build capacity to continuously improve </li></ul><ul><ul><li>Safety resources </li></ul></ul><ul><ul><li>Safety management system </li></ul></ul><ul><ul><li>Team approach </li></ul></ul><ul><li>Measure what matters most </li></ul>
  11. 13. <ul><li>What matters most? </li></ul><ul><li>Preventing injuries & reducing risk of injury </li></ul><ul><li>What should we measure? </li></ul><ul><li> Efforts that reduce the risk of injury </li></ul><ul><li>Risk reduction activities </li></ul><ul><li>Leading indicators </li></ul>
  12. 14. <ul><li>Measure against standards (programs & procedures) </li></ul><ul><li>Objective & verifiable by auditors </li></ul><ul><li>Survey process verifiable by academics </li></ul><ul><li>Placed on corporate agenda </li></ul><ul><li>Corporate strategic goals include leading indicators </li></ul><ul><ul><li>Departmental and individual goals follow corporate plan </li></ul></ul><ul><li>Report to CEO & BOD </li></ul><ul><ul><li>Provides high level accountability </li></ul></ul><ul><li>Tied to pay for performance process </li></ul>
  13. 15. <ul><li>To ensure the system works “honestly” </li></ul><ul><li>Joint health & safety committee </li></ul><ul><li>Internal auditors – union/management </li></ul><ul><li>External auditors </li></ul><ul><li>Safe workplace association </li></ul><ul><li>Government regulatory agencies </li></ul><ul><li>Safety Management System - fits it all together </li></ul>
  14. 16. <ul><li>Policy stating commitment </li></ul><ul><li>Demonstrate commitment by putting leading indicators in corporate strategic plan </li></ul><ul><li>Assessment of risks </li></ul><ul><li>Setting safety standards via </li></ul><ul><ul><li>Programs & procedures </li></ul></ul><ul><li>Provide training on standards </li></ul><ul><li>Clear - two way communication </li></ul><ul><li>Evaluating performance of: </li></ul><ul><ul><li>Individuals, programs & safety system </li></ul></ul><ul><li>Annual performance report on strategic goals </li></ul>
  15. 17. <ul><li>“ Make it happen” safety objectives: </li></ul><ul><li>Scoring system: </li></ul><ul><li>Leadership 20% </li></ul><ul><li>Program Compliance 30% </li></ul><ul><li>Training + application of skills 20% </li></ul><ul><li>Program improvement 20% </li></ul><ul><li>Lagging indicators 10% </li></ul><ul><li>Total score 100% </li></ul><ul><li>Score  Determines management bonus </li></ul>
  16. 18. <ul><li>Measuring leadership: </li></ul><ul><li>Safety discussed at BOD/management meetings </li></ul><ul><li>CEO/VP’s At departmental meetings & work observations </li></ul><ul><li>VP’s & Directors on routine leadership mtgs. </li></ul><ul><li>Manager performance reviews include an evaluation of safety objectives </li></ul>
  17. 19. <ul><li>Program Compliance: </li></ul><ul><li>Measure actual over expected # </li></ul><ul><li>Work observations </li></ul><ul><li>Departmental meetings </li></ul><ul><li>Incident/injury reporting information </li></ul><ul><li>Increase preventative incident reporting by a defined % </li></ul>
  18. 20. What gets measured gets done
  19. 22. <ul><li>Building on Success Event </li></ul><ul><li>Celebrate leading indicator results </li></ul><ul><li>All executives, directors and team members at the event </li></ul><ul><li>Team member presentations </li></ul><ul><li>Certificate of appreciation and gift to all team members </li></ul><ul><li>Sustainability of improvement based on celebrating your success </li></ul>
  20. 23. <ul><li>Shifts focus to “make it happen safely” </li></ul><ul><li>Opportunity to build on success </li></ul><ul><ul><li>Reports & newsletters </li></ul></ul><ul><ul><li>Recognition & rewards </li></ul></ul><ul><ul><li>Celebrations </li></ul></ul><ul><ul><li>More managers, workers, execs on board </li></ul></ul><ul><ul><li>Return on investment shown in reports </li></ul></ul><ul><li>Sustainability rests on </li></ul><ul><ul><li>Ability to Build on Success </li></ul></ul><ul><ul><li>Healthy workplace </li></ul></ul>
  21. 24. <ul><li>Boards of directors will demand more detailed information to assure themselves that reasonable measures have been taken </li></ul><ul><li>Corporate responsibility means providing a safe work place </li></ul><ul><li>Assurance that lagging indicators will remain low </li></ul><ul><li>More and more organizations are finding effective leading indicators to report </li></ul><ul><li>Ethical companies will want to demonstrate their good will to employees and the public </li></ul>
  22. 25. <ul><li>>Open discussion and Ideas </li></ul><ul><li>>Building organizational trust </li></ul><ul><li>>Team-building </li></ul><ul><li>>Strategic direction </li></ul>

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