Lloyd Hanson

Driving Performance Outcomes

September 30, 2009

Establish upstream factors to assess performance

Near misses

Safety meetings

Process audits

Behavioral observations

Inspection of physical conditions “Safety Blitz” incorporating process

safety

Focus on activities that demonstrate employee involvement

Lost-time rate 54% improvement

Dart-rate 59% improvement

80% of mining operations worked without a lost-time injury

30% of mining operations worked without a recordable injury

Total incident rate 34% better than industry average

Commitment/Involvement Leadership Team

Standard Practices

Standardized Behavior-Based Process

Focused Communications

Measurement (leading indicators)

Ownership

Leading indicators measure effort to:

ReduceRisk

ReduceInjury

ReduceCosts

&Damage

IncreaseProfit

Establish upstream factors to assess performance

Near misses

Safety meetings

Process audits

Behavioral observations

Inspection of physical conditions “Safety Blitz” incorporating process

safety

Focus on activities that demonstrate employee involvement

Due Diligence to Show That: Safety management system is

working Preventative “Make it Happen” objectives are being taken Improve assurance that lagging

indicators will remain low

All well managed programs Set a standard of performance activities Measure/monitor that performance

realtime

Leading indicators are a measure of performance

Celebrating Success breeds more success“we’ve improved – we can do even

more” Sustainability over long term

Stay on target Encourage ongoing effort

Reward proactive safety efforts

Commitment Board of directors CEO All levels of management and

workers Build capacity to continuously improve

Safety resources Safety management system Team approach

Measure what matters most

What matters most? Preventing injuries & reducing risk of

injuryWhat should we measure? Efforts that reduce the risk of injury Risk reduction activities Leading indicators

Measure against standards (programs & procedures)

Objective & verifiable by auditors Survey process verifiable by academicsPlaced on corporate agenda Corporate strategic goals include leading

indicators Departmental and individual goals follow

corporate plan Report to CEO & BOD

Provides high level accountability Tied to pay for performance process

To ensure the system works “honestly”

Joint health & safety committee Internal auditors – union/management External auditors Safe workplace association Government regulatory agencies Safety Management System - fits it all

together

Policy stating commitment Demonstrate commitment by putting

leading indicators in corporate strategic plan

Assessment of risks Setting safety standards via

Programs & procedures Provide training on standards Clear - two way communication Evaluating performance of:

Individuals, programs & safety system Annual performance report on strategic

goals

“Make it happen” safety objectives:

Scoring system: Leadership 20% Program Compliance 30% Training + application of skills 20% Program improvement 20% Lagging indicators 10%

Total score 100%Score Determines management bonus

Measuring leadership: Safety discussed at

BOD/management meetings CEO/VP’s At departmental meetings

& work observations VP’s & Directors on routine

leadership mtgs. Manager performance reviews

include an evaluation of safety objectives

Program Compliance:Measure actual over expected # Work observations Departmental meetings Incident/injury reporting

information Increase preventative incident

reporting by a defined %

What gets measured gets done

Building on Success Event Celebrate leading indicator results All executives, directors and team

members at the event Team member presentations Certificate of appreciation and gift

to all team membersSustainability of improvement

based on celebrating your success

Shifts focus to “make it happen safely” Opportunity to build on success

Reports & newsletters Recognition & rewards Celebrations More managers, workers, execs on board Return on investment shown in reports

Sustainability rests on Ability to Build on Success Healthy workplace

Boards of directors will demand more detailed information to assure themselves that reasonable measures have been taken

Corporate responsibility means providing a safe work place

Assurance that lagging indicators will remain low

More and more organizations are finding effective leading indicators to report

Ethical companies will want to demonstrate their good will to employees and the public

>Open discussion and Ideas>Building organizational trust

>Team-building>Strategic direction