The purpose of this essay is to analyze how to incorporate the best way possible the Occupational Health and Safety Management System (OHSMS) in the strategic planning of an organization, to benefit all its stakeholders, and to measure its performance through safety key performance indicators (KPIs).
However, the list of KPIs available to an organization is not limited to the ones selected for this essay.
Moreover, this exercise underlines the difficulty and challenge to use some indicators or measure their performance.
Table of Contents
1. Introduction
2. Strategic planning
3. OHSMS performance measurements and calculations
3.1 Lag indicators
3.1.1 Total Recordable Injury (and illness) (TRI)
3.1.2 Days away / restricted / transfer rate (DART)
3.1.3 Lost Time Injury (LTI)
3.2 Leading indicators
4. Conclusion
Objectives and Topics
This essay explores the strategic integration of Occupational Health and Safety Management Systems (OHSMS) within organizational planning to improve stakeholder outcomes and performance measurement through Key Performance Indicators (KPIs).
- Strategic planning frameworks and the role of the Balanced Scorecard (BSC).
- Implementation of Enterprise Risk Management (ERM) in safety contexts.
- Distinction between Lagging and Leading safety performance indicators.
- Calculation methodologies for injury and illness rates (TRI, DART, LTI).
- The necessity of multidimensional data for comprehensive safety performance monitoring.
Excerpt from the Book
3.2 Leading indicators
The alternatives to outcome indicators are positive performance indicators (PPI) or OHS inputs (i.e., effort) and their measures reflect the implementation of OHS controls.
For example, PPI may include the number of safety audits conducted, the percentage of sub-standard conditions identified and corrected, the percentage of employees with adequate OHS training, peer to peer observation behaviour based safety (BBS), management safety walk (SWA), risk control effectiveness (RCE) or lessons learned.
Therefore, they are the action steps that a workplace can take to prevent future incidents and measuring them is a great predictor of incidents (Occupational Health and Safety Representatives (AU), 2015).
However, the challenge is measuring PPI reliably and consistently across different industries to create a benchmark.
So far, only the Institute of Work and Health in Canada has developed a tool with great potential for application.
Indeed, in ' figure 10' the Organisational Performance Metric (OPM) is an eight-item questionnaire to measure the perceptions of staff regarding the value of, and emphasis is given, to their organisation's OHSMS with the results being benchmarked against similar industries or multi-sectors.
Summary of Chapters
1. Introduction: Outlines the goal of integrating OHSMS into organizational strategic planning and the necessity of measuring safety through various KPIs.
2. Strategic planning: Discusses the definition of strategic planning, the application of the Balanced Scorecard, and the importance of Enterprise Risk Management (ERM) in aligning safety with corporate mission.
3. OHSMS performance measurements and calculations: Details the PDCA-based approach for results-driven OHSMS performance monitoring using SMART KPIs.
3.1 Lag indicators: Explains outcome-based performance measures including TRI, DART, and LTI, highlighting their utility and limitations in recording past events.
3.1.1 Total Recordable Injury (and illness) (TRI): Describes the calculation of TRI including fatalities, LTI, medical treatments, and restricted work injuries.
3.1.2 Days away / restricted / transfer rate (DART): Defines DART and its role as a broad, comparable measure to assess incidents causing lost time or restricted duties.
3.1.3 Lost Time Injury (LTI): Analyzes LTI frequency rates and the criteria for determining when an individual is deemed unfit for work.
3.2 Leading indicators: Examines positive performance indicators (PPI) or inputs as proactive measures that help predict and prevent future workplace incidents.
4. Conclusion: Summarizes that successful safety management requires a transition from one-dimensional lagging metrics to a multidimensional approach involving both lead and lag indicators.
Keywords
Strategic Planning, OHSMS, KPIs, Risk Management, Balanced Scorecard, Lagging Indicators, Leading Indicators, Safety Performance, Injury Frequency, Enterprise Risk Management, DART, LTI, TRI, Workplace Safety, Performance Measurement
Frequently Asked Questions
What is the core focus of this work?
The work focuses on how organizations can integrate Occupational Health and Safety Management Systems into their strategic planning to improve overall performance and effectively measure safety results.
What are the primary thematic areas covered?
Key themes include strategic planning frameworks, Enterprise Risk Management (ERM), and the categorization of safety performance measures into lagging indicators (outcomes) and leading indicators (inputs).
What is the central research objective?
The central objective is to analyze the most effective ways to incorporate OHSMS into an organization's strategic goals to benefit stakeholders through measurable, data-driven safety KPIs.
Which scientific principles or methodologies are utilized?
The essay utilizes the PDCA (Plan-Do-Check-Act) cycle framework and references established industry guidelines, such as AS/NZS ISO 31000:2018, for risk management and performance evaluation.
What is discussed in the main body of the text?
The main body examines the Balanced Scorecard as a management tool, details specific calculation methods for TRI, DART, and LTI, and discusses the importance of shifting toward proactive leading indicators.
What are the characterizing keywords of this document?
Typical keywords include Strategic Planning, OHSMS, KPIs, Risk Management, and Performance Measurement.
Why are lagging indicators considered to be "negative" performance indicators?
Lagging indicators do not measure the success of a safety system, but rather its failure, as they record past incidents and injuries rather than predicting or preventing them.
What is the significance of the Pike River Coal tragedy mentioned in the study?
The case serves as an example of an organization that implemented an integrated risk framework but failed to manage risks for its employees, prioritizing shareholder interests instead.
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- Damien Hiquet (Autor:in), 2022, Strategic planning & OHSMS performance measurements and calculations, München, GRIN Verlag, https://www.grin.com/document/1247254
