Why?

KPI’s are an essential management element for controlling an organization. But which KPIs are suitable for the HSE area and can be influenced in order to steer the organization in a desired direction? Is the importance of the respective metrics known to management? One of the most widely used metrics is the number of accidents at work. This measured variable is a so-called lagging indicator, since the associated event has already occurred. Are there other variables that include, for example, the cultural aspects, in order to steer the company? How are the associated data collected and processed? The selection of the KPIs and the continuous assessment of the information are of crucial importance for controlling the HSE change process.

The meaning of the four states

dependent – Established KPIs-scheme includes only lagging indicators such as Loss Time Accident frequency. Management bonus payments are based on such KPIs. The defined KPIs have no significant influence on the management of the company
independent – The company focuses on leading indicators, such as the number of observations or the execution of safety walks by management. Lagging indicators are recorded but are for reference information only. KPIs are discussed at least monthly in the management team and are easy to understand
interdependent – The company introduces additional leading indicators proposed by managers and employees. These relate to the implementation of behavior prevention programs and subcontractor management. The key figures are publicly accessible
reactive – There are no KPIs defined for HSE in the company

How?

To initiate a discussion on this subject area the following key questions might be helpful for support:

  1. Which KPIs are defined for HSE?
  2. Are so-called “lagging” indicators rewarded with bonus payments?
  3. Are so-called “leading” indicators defined for controlling the change process?
  4. Are the respective definitions of the KPIs known to the managers?
  5. Is the associated data for the respective KPIs systematically collected, evaluated and communicated in regular KPI reports in the company?
  6. Are the defined KPIs suitable for controlling the company?
  7. Do the KPIs only relate to your own organization, or also for the subcontractors?
  8. Is a central IT tool available for collecting and evaluating the data?

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