Insights from a Health and Safety KPI Failure: What Went Wrong

In 2023, a site within a large corporate group faced a unique challenge in defining their health and safety KPIs. With numerous high-potential hazards identified and a substantial number of person hours worked, the corporate team decided to set a KPI for high-potential hazard reporting for 2024. This target was based solely on the previous year’s data and the total person hours worked, without any consultation with the site managers or safety personnel.

The result? The site now has a rigid monthly target for reporting high-potential hazards. Failure to meet this target requires the General Manager to explain the shortfall to higher-ups. Once set, the KPI cannot be adjusted, leading to significant unintended consequences.

What’s the Impact?

1. Meeting the KPI: It’s likely the site meets its KPI by reporting more high-potential hazards. However, the focus on quantity over quality is problematic. The nature of the reported hazards may not align with actual critical risks or critical controls. As a result, the reported hazards might not be genuinely significant, reducing the overall effectiveness of the safety program.
2. Quality vs. Quantity: The safety manager, who is focused on improving the quality of hazard reporting, faces frustration. The rigid KPI structure prioritizes the number of reported hazards rather than their relevance or severity, creating a disconnect between reporting practices and real safety improvements.
3. Value and Effectiveness: While the increased reporting generates a lot of activity, it doesn’t necessarily add value. The approach lacks scientific validity in linking more reports to actual risk reduction. It raises the question of whether more reporting translates to better safety outcomes or if it’s merely busywork without substantial impact.

Evaluating the Approach

This scenario highlights a common pitfall in KPI setting: focusing on quantity rather than quality. A more effective approach would involve consulting with site safety managers and setting KPIs that reflect meaningful safety improvements rather than arbitrary numbers.

Have you encountered similar KPI setups? What adjustments or measures were implemented to make them successful? Sharing these experiences could provide valuable insights for improving health and safety practices.