Elevating EHS Leading Indicators: From Defining to Designing John Dony Director, Campbell Institute National Safety Council

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1 Elevating EHS Leading Indicators: From Defining to Designing John Dony Director, Campbell Institute National Safety Council

2 Who is the National Safety Council?

3 The Crisis A preventable death occurs every F UR MINUTES

4 Our Vision IN OUR LIFETIME, WE ARE COMMITTED TO ELIMINATING PREVENTABLE DEATHS

5 Safety 24/7 OUR PRIORITIES CUT ACROSS ALL AREAS OF EVERYDAY LIFE AT WORK AT HOME & IN THE COMMUNITY ON THE ROAD

6 Our Priorities OUR PRIORITIES ARE BASED ON ACHIEVING THE GREATEST IMPACT EMPLOYER ENGAGEMENT REDUCE OPIOID OVERDOSE MOTOR VEHICLE SAFETY Employer engagement is the #1 channel to reach individuals on and off the clock Drug overdose is the leading cause of death; Opioid use leading contributor Crashes are #1 cause of death In the workplace and among young drivers

7 Workplace by the Numbers # of Companies Compliance Driven Risk Driven System Driven Values Driven EHS Performance

8 Values-Driven Organizations The Global EHS Center of Excellence

9 Participants As of 10/15/2016

10 Workplace by the Numbers Radioactive half-life? Absorption Rate? Chicago Cubs World Series prospects? Lagging EHS performance!

11 Leading Indicators Framework 1. Define - Characteristics - Taxonomy 2. Align - Enablers & Barriers - Current state 3. Refine - Categories - Metrics 4. Design - Implementation & improvement plans

12 Mixed-Method Approach Expert Panel Survey Workgroups Interviews

13 A Definition Leading indicator = proactive + preventive + predictive

14 The Critical Characteristics Robust Leading Indicators: Actionable Achievable Explainable Meaningful Timely Transparent Useful Valid

15 Enablers to Implementation Executive buy-in (not technical knowledge) Corporate-level roll-up and tracking Predictive value communicated & understood Targeted collection toward specific outcomes

16 Barriers to Implementation Inability to develop consistently actionable metrics Lack of reliable, consistent relationship Continued C-suite reliance on lagging indicators Sporadic, infrequent, non-standard benchmarking

17 What We Need is a Map!

18

19

20 Taxonomy Behavior based Operations based Systems based Activities Thoughts Perceptions Work processes Equipment Functions of system

21 Leading Indicator Matrix

22 Leading Indicator Program Design Choosing, tracking, & analyzing leading indicators What is already being tracked? The bottom up approach Start simply and small Does the indicator provide meaningful information?

23 Leading Indicator Program Design Gaining support; roles & responsibilities Obtain leadership buy-in Find the right pitch; hone the language Involve multiple departments & functions

24 Leading Indicator Program Design Connection to safety management system Integrate leading indicators into overall SMS Balance leading indicators with lagging metrics to measure success

25 Leading Indicator Program Implementation

26 Case Study: Cummins Research & benchmarking to develop plan Began with S&H assessments and preventive actions Added S&H training hours, hours worked, % new employees Evaluate leading indicators through correlation analyses

27 Case Study: Schneider Electric Started leading indicators at the site level Began tracking training hours Started tracking effectiveness of training Celebrates leading indicator milestones to gain support

28 Case Study: Owens Corning Started with system of yellow flags for soft risk Began correlating yellow flags with lagging metrics Yellow flag system basis for corporate leading indicators Involves several functional areas to build support

29 Key Takeaways

30 How can I use this research? 1. Lead with framework & taxonomy to start discussions 2. Pull real-life examples from Campbell Institute white papers 3. Find resources on the Campbell Library

31 Find the Institute s Research

32 Campbell

33 Finding 6: Leading Indicator Matrix

34 Finding 6: Leading Indicator Matrix

35 Finding 6: Leading Indicator Matrix

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