Lag indicators don’t improve performance
Successful risk management relies on the seamless integration of EHSQ processes into core business operations and effective measurement of EHSQ performance.
Unfortunately many businesses are still setting targets and Key Performance Indicators (KPI’s) based on lag indicators such as TRIFR and LTIFR. The problem with these measures is that they can easily be manipulated (often unintentionally) to ensure targets are met and bonuses are awarded. KPI’s should reflect the behaviour you want to promote, not punish employees for incidents. This also allows for a more transparent analysis of the incident causes and therefore better preventative actions.
Implementing the S.M.A.R.T approach, businesses can structure their KPI’s to take into consideration business processes and productivity requirements whilst aligning with relevant standards. So what is S.M.A.R.T?
Specific - The key is to focus in on what you specifically want to achieve.
Measurable – Framing your KPI around something that is measurable helps you to track progress and identify when road blocks occur.
Action oriented – Break it down into steps.
Realistic – KPI’s should be a stretch but it is important to be realistic. Important considerations include resources (human, financial and equipment) available and benefit to the business.
Time bound – By setting time frames, KPI’s are given the correct level of priority and focus.
At EHSQ Management Solutions, we have free a template, to help you document your EHSQ KPI’s, available on our website www.ehsqsolutions.com
We also have a team of experienced consultants who can help you set your KPI’s and achieve meaningful EHSQ performance improvement and meet compliance obligations. Contact us today to find out how we can add value to your business.
