Measuring performance

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Measuring performance
Measuring performance
Measuring performance
Measuring performance

What’s performance
measurement about?
Measuring performance

Although we may not realise it, we measure

performance in all aspects of our lives
Measuring performance

To measure performance in a useful way,

indicators must be established to answer
questions such as:
Measuring performance

To measure performance in a useful way,

indicators must be established to answer
questions such as:
• What is going on around us?
Measuring performance

To measure performance in a useful way,

indicators must be established to answer
questions such as:
• What has happened so far?
Measuring performance

To measure performance in a useful way,

indicators must be established to answer
questions such as:
• What might we need to respond to?
Measuring performance

Measurements that give us information on

the outcomes of our previous actions are
called reactive indicators
Measuring performance

Measurements of how the current situation

could impact on future performance are
known as proactive indicators
Measuring performance

If you were the manager of a stationery

supply company…
…what reactive indicators would help you to
evaluate your current sales
performance?
Measuring performance

If you were the manager of a stationery

supply company…
…what proactive indicators could you
measure in order to provide
information on the future?
Measuring performance

How do you measure health

and safety performance?
Measuring performance
Measuring performance

Reactive measurement focuses on collecting

information on the outputs of your health and
safety management system
Measuring performance

Reactive measurement focuses on collecting

information on the outputs of your health and
safety management system
Measuring performance

Reactive measurement focuses on collecting

information on the outputs of your health and
safety management system
Measuring performance

Reactive measurement focuses on collecting

information on the outputs of your health and
safety management system
Measuring performance

Reactive measurement focuses on collecting

information on the outputs of your health and
safety management system
Measuring performance

You can use this reactive data to calculate

your injury incidence rate (the number of
reportable injuries per 100,000 employees):

Number of reportable injuries in

a given time period (one year)
x 100,000
Average number of employees
during that time period
Measuring performance

You can use this reactive data to calculate

your injury incidence rate (the number of
reportable injuries per 100,000 employees):

2 reportable injuries
500 employees
Measuring performance

You can use this reactive data to calculate

your injury incidence rate (the number of
reportable injuries per 100,000 employees):

2 reportable injuries
x 100,000
500 employees
Measuring performance

You can use this reactive data to calculate

your injury incidence rate (the number of
reportable injuries per 100,000 employees):

Your injury incidence rate:

400
(per 100,000 employees)
Measuring performance

Once calculated, you’ll be able to compare

your injury incidence rate with other rates in
your industry to measure your performance

Your injury incidence rate:

400
Other branches/locations:
668 171 235
Measuring performance

Once calculated, you’ll be able to compare

your injury incidence rate with other rates in
your industry to measure your performance

Your company’s overall rate:

368
National industry rate:
250
Measuring performance

Fatal injury incidence rates of employees for

some industries:
Agriculture, hunting, forestry and fishing: 8.8
Extractive and utility supply industries: 3.6
Manufacturing: 1.2
Construction: 3.2
Service: 0.3

National incidence rate: 0.7

Measuring performance

Non-fatal (major/3-day) injury incidence rates:

Agriculture, hunting, forestry and fishing: 369.3
Extractive and utility supply industries: 1014.7
Manufacturing: 873.2
Construction: 600.8
Service: 418.9

National incidence rate: 481.8

Measuring performance

What are the limitations of only measuring

accident, incident and ill health reports?
Measuring performance

Proactive measurement provides information

on how health and safety is being managed
before undesired events occur
Measuring performance

You’ll need to look at the inputs that

contribute to health and safety management:
• quality of the work environment and
equipment
Measuring performance

You’ll need to look at the inputs that

contribute to health and safety management:
• quality of the work environment and
equipment
• effectiveness of systems and procedures
Measuring performance

You’ll need to look at the inputs that

contribute to health and safety management:
• quality of the work environment and
equipment
• effectiveness of systems and procedures
• behaviour and ability of people
Measuring performance

For example, if you intend to carry out an

inspection once a week, you can proactively
measure how many you actually perform
Measuring performance

A good proactive indicator should be:

• objective
• easy to measure
• cost effective to gather
• relevant to the group whose
performance you’re
measuring
Measuring performance

What are some indicators that could be used

to proactively measure health and safety?
Measuring performance

Remember: there’s no ‘one size fits all’

when it comes to proactive indicators – find
out what works best for your organisation
Measuring performance

A range of people will be interested in this

information, both internally and externally:
• senior management
• line managers
• employees
• safety/employee
representatives

• shareholders
Measuring performance

A range of people will be interested in this

information, both internally and externally:
• enforcement bodies
• insurance company
• clients
• the public
• shareholders
Measuring performance

What is auditing?
Measuring performance

Auditing aims to find evidence of whether the

current management system complies with
the organisation’s policies and objectives
Measuring performance

An internal audit is performed by staff within

the organisation in order to evaluate the
effectiveness of the current system
Measuring performance

An external audit is undertaken by a third

party to provide an independent view,
usually for interests of other stakeholders
Measuring performance

Audits typically use three types of evidence:

• documentation
Measuring performance

Audits typically use three types of evidence:

• documentation
• interviews
Measuring performance

Audits typically use three types of evidence:

• documentation
• interviews
• observation
Measuring performance

As a manager, you (along with senior

management) may be involved in producing
an action plan to deal with audit findings
Measuring performance

Getting it right:
• Reactive indicators measure your outputs;
easily gathered, but have limitations
• Proactive indicators measure your inputs;
powerful, as they can provide warnings
• Audits provide a check on
whether your systems
are effective
Measuring performance

Key learning points:

• What’s performance measurement about?

• How do you measure health and safety
performance?
• What is auditing?
Measuring performance

Key learning points:

• What’s performance measurement about?

• How do you measure health and safety
performance?
• What is auditing?
Measuring performance

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